1 | 1 | | 85R949 GCB-D |
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2 | 2 | | By: Kolkhorst S.B. No. 1970 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to fantasy sports contests. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Subtitle B, Title 13, Occupations Code, is |
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10 | 10 | | amended by adding Chapter 2053 to read as follows: |
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11 | 11 | | CHAPTER 2053. FANTASY SPORTS CONTESTS |
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12 | 12 | | Sec. 2053.001. DEFINITION. In this chapter, "fantasy |
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13 | 13 | | sports contest" means a competition in which: |
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14 | 14 | | (1) a participant pays money or other consideration |
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15 | 15 | | for the opportunity to assemble a fictional team composed of |
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16 | 16 | | professional or amateur sports athletes selected by the participant |
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17 | 17 | | to compete against other fictional teams assembled by other |
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18 | 18 | | competition participants; |
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19 | 19 | | (2) the outcome of the competition is based on the |
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20 | 20 | | actual statistical performance of the selected athletes in sports |
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21 | 21 | | competitions, or in a season or series of sports competitions; and |
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22 | 22 | | (3) a prize is awarded to the competition winner. |
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23 | 23 | | Sec. 2053.002. LEGISLATIVE FINDINGS. (a) The legislature |
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24 | 24 | | finds that a participant in a fantasy sports contest is an actual |
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25 | 25 | | contestant in a bona fide contest for the determination of the skill |
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26 | 26 | | of the participant in assembling a fictional team of sports |
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27 | 27 | | athletes. |
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28 | 28 | | (b) A person who pays an entrance fee to compete in a fantasy |
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29 | 29 | | sports contest is not placing a bet for purposes of the application |
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30 | 30 | | of an offense under Chapter 47, Penal Code. |
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31 | 31 | | Sec. 2053.003. PARTICIPATION IN FANTASY SPORTS CONTEST. A |
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32 | 32 | | person may pay an entrance fee to participate in a fantasy sports |
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33 | 33 | | contest. |
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34 | 34 | | Sec. 2053.004. OPERATION OF FANTASY SPORTS CONTEST. (a) A |
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35 | 35 | | person may operate fantasy sports contests in this state in |
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36 | 36 | | accordance with this chapter and any applicable federal law and may |
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37 | 37 | | participate in the earnings of a business that offers fantasy |
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38 | 38 | | sports contests. |
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39 | 39 | | (b) A fantasy sports contest operator may award prizes to |
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40 | 40 | | contest participants only based on the relative knowledge and skill |
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41 | 41 | | of the contest participants and based predominantly on accumulated |
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42 | 42 | | statistical results of the performance of the athletes |
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43 | 43 | | participating in multiple professional or amateur sports |
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44 | 44 | | competitions or in a season or series of sports competitions. |
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45 | 45 | | (c) Notwithstanding Subsection (b), a fantasy sports |
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46 | 46 | | contest operator may not award a prize based: |
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47 | 47 | | (1) on the score, the point spread, or any performance |
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48 | 48 | | of a single professional or amateur sports team or any combination |
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49 | 49 | | of professional or amateur sports teams; |
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50 | 50 | | (2) solely on any single performance of an individual |
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51 | 51 | | athlete in a single professional or amateur sports competition or |
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52 | 52 | | other event; or |
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53 | 53 | | (3) on live pari-mutuel racing under the Texas Racing |
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54 | 54 | | Act. |
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55 | 55 | | Sec. 2053.005. CONSUMER PROTECTION. A fantasy sports |
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56 | 56 | | contest operator shall implement procedures for fantasy sports |
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57 | 57 | | contests that: |
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58 | 58 | | (1) prevent an employee of the operator, and any |
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59 | 59 | | relative living in the same household as the employee, from |
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60 | 60 | | competing in a fantasy sports contest in which a cash prize is |
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61 | 61 | | awarded; |
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62 | 62 | | (2) prohibit the operator from being a participant in |
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63 | 63 | | a fantasy sports contest that the operator offers; |
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64 | 64 | | (3) prevent an employee or agent of the operator from |
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65 | 65 | | sharing with third parties confidential information that could |
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66 | 66 | | affect fantasy sports contest play until the information has been |
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67 | 67 | | made publicly available; |
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68 | 68 | | (4) verify that fantasy sports contest participants |
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69 | 69 | | are 18 years of age or older; and |
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70 | 70 | | (5) restrict an individual who is a player, a game |
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71 | 71 | | official, or another participant in a professional or amateur |
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72 | 72 | | sports competition from participating in a fantasy sports contest |
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73 | 73 | | that is determined, wholly or partly, on the performance of that |
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74 | 74 | | individual, the individual's professional or amateur team, or the |
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75 | 75 | | accumulated statistical results of the sport or competition in |
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76 | 76 | | which the individual is a player, game official, or other |
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77 | 77 | | participant. |
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78 | 78 | | Sec. 2053.006. INJUNCTIVE RELIEF. (a) The attorney |
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79 | 79 | | general may institute an action for injunctive relief to restrain a |
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80 | 80 | | violation by a person who appears to be in violation of or |
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81 | 81 | | threatening to violate this chapter. |
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82 | 82 | | (b) An action filed under this section by the attorney |
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83 | 83 | | general must be filed in a district court in Travis County or the |
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84 | 84 | | county in which the violation occurred. |
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85 | 85 | | (c) The attorney general may recover reasonable expenses |
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86 | 86 | | incurred in obtaining injunctive relief under this section, |
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87 | 87 | | including court costs, reasonable attorney's fees, investigative |
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88 | 88 | | costs, witness fees, and deposition expenses. |
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89 | 89 | | (d) In an injunction issued under this section, a court may |
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90 | 90 | | include reasonable requirements to prevent further violations of |
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91 | 91 | | this chapter. |
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92 | 92 | | SECTION 2. Section 47.02(c), Penal Code, is amended to read |
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93 | 93 | | as follows: |
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94 | 94 | | (c) It is a defense to prosecution under this section that |
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95 | 95 | | the actor reasonably believed that the conduct: |
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96 | 96 | | (1) was permitted under Chapter 2001, Occupations |
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97 | 97 | | Code; |
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98 | 98 | | (2) was permitted under Chapter 2002, Occupations |
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99 | 99 | | Code; |
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100 | 100 | | (3) was permitted under Chapter 2004, Occupations |
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101 | 101 | | Code; |
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102 | 102 | | (4) was permitted under Chapter 2053, Occupations |
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103 | 103 | | Code; |
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104 | 104 | | (5) consisted entirely of participation in the state |
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105 | 105 | | lottery authorized by the State Lottery Act (Chapter 466, |
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106 | 106 | | Government Code); |
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107 | 107 | | (6) [(5)] was permitted under the Texas Racing Act |
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108 | 108 | | (Article 179e, Vernon's Texas Civil Statutes); or |
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109 | 109 | | (7) [(6)] consisted entirely of participation in a |
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110 | 110 | | drawing for the opportunity to participate in a hunting, fishing, |
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111 | 111 | | or other recreational event conducted by the Parks and Wildlife |
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112 | 112 | | Department. |
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113 | 113 | | SECTION 3. Section 47.09(a), Penal Code, is amended to read |
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114 | 114 | | as follows: |
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115 | 115 | | (a) It is a defense to prosecution under this chapter that |
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116 | 116 | | the conduct: |
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117 | 117 | | (1) was authorized under: |
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118 | 118 | | (A) Chapter 2001, Occupations Code; |
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119 | 119 | | (B) Chapter 2002, Occupations Code; |
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120 | 120 | | (C) Chapter 2004, Occupations Code; [or] |
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121 | 121 | | (D) Chapter 2053, Occupations Code; or |
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122 | 122 | | (E) the Texas Racing Act (Article 179e, Vernon's |
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123 | 123 | | Texas Civil Statutes); |
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124 | 124 | | (2) consisted entirely of participation in the state |
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125 | 125 | | lottery authorized by Chapter 466, Government Code; or |
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126 | 126 | | (3) was a necessary incident to the operation of the |
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127 | 127 | | state lottery and was directly or indirectly authorized by: |
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128 | 128 | | (A) Chapter 466, Government Code; |
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129 | 129 | | (B) the lottery division of the Texas Lottery |
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130 | 130 | | Commission; |
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131 | 131 | | (C) the Texas Lottery Commission; or |
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132 | 132 | | (D) the director of the lottery division of the |
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133 | 133 | | Texas Lottery Commission. |
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134 | 134 | | SECTION 4. This Act takes effect immediately if it receives |
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135 | 135 | | a vote of two-thirds of all the members elected to each house, as |
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136 | 136 | | provided by Section 39, Article III, Texas Constitution. If this |
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137 | 137 | | Act does not receive the vote necessary for immediate effect, this |
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138 | 138 | | Act takes effect September 1, 2017. |
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