Texas 2019 - 86th Regular

Texas House Bill HB494 Compare Versions

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11 86R1142 GCB-D
22 By: Deshotel H.B. No. 494
33
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation of casino gaming in certain coastal areas
88 of this state by licensed persons to provide additional money for
99 residual windstorm insurance coverage and catastrophic flooding
1010 assistance in the coastal areas; requiring occupational licenses or
1111 certifications; authorizing fees; imposing a tax; creating
1212 criminal offenses and providing other penalties.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Subtitle A, Title 13, Occupations Code, is
1515 amended by adding Chapter 2005 to read as follows:
1616 CHAPTER 2005. CASINO GAMING
1717 SUBCHAPTER A. GENERAL PROVISIONS
1818 Sec. 2005.001. DEFINITIONS. In this chapter:
1919 (1) "Casino game" means any game of chance, including
2020 a game of chance in which the outcome may be partially determined by
2121 skill or ability, that involves the making of a bet, as defined by
2222 Section 47.01, Penal Code.
2323 (2) "Casino gaming" means the conduct of casino games
2424 authorized under this chapter.
2525 (3) "Casino gaming manager" means a person certified
2626 under this chapter to manage casino gaming operations at a location
2727 authorized under this chapter to conduct casino gaming in this
2828 state.
2929 (4) "Commission" means the Texas Lottery Commission.
3030 (5) "Executive director" means the executive director
3131 of the commission.
3232 (6) "Gaming vendor" means a person licensed under this
3333 chapter to provide, maintain, manufacture, distribute, sell, or
3434 lease casino gaming equipment and services to a person authorized
3535 to operate casino gaming in this state.
3636 Sec. 2005.002. APPLICABILITY OF FEDERAL LAW. All shipments
3737 of casino gaming equipment and devices into, out of, or within this
3838 state in connection with casino gaming are legal shipments of the
3939 devices and are exempt from the provisions of 15 U.S.C. Sections
4040 1171-1178 prohibiting the transportation of gambling devices.
4141 SUBCHAPTER B. ADMINISTRATION
4242 Sec. 2005.051. POWERS AND DUTIES OF COMMISSION AND
4343 EXECUTIVE DIRECTOR. (a) The commission and executive director
4444 have broad authority and shall exercise strict control over and
4545 closely monitor casino gaming in this state to protect the public
4646 health, welfare, and safety and ensure integrity, security,
4747 honesty, and fairness in the conduct and administration of casino
4848 gaming.
4949 (b) The executive director may contract with or employ a
5050 person to perform a function, activity, or service in connection
5151 with casino gaming as prescribed by the executive director.
5252 (c) The commission shall as necessary to protect the public
5353 health, welfare, and safety:
5454 (1) monitor casino gaming operations on a continuing
5555 basis;
5656 (2) establish standards for:
5757 (A) the operation of casino gaming;
5858 (B) the provision of casino gaming equipment and
5959 services; and
6060 (C) the establishment and maintenance of casino
6161 gaming facilities; and
6262 (3) inspect and examine all gaming facilities,
6363 equipment, services, records, and operations to ensure compliance
6464 with the standards established by the commission.
6565 Sec. 2005.052. RULES AND PROCEDURES. (a) The commission
6666 shall adopt all rules necessary to supervise casino gaming in this
6767 state, administer this chapter, and ensure the security of casino
6868 gaming operations in this state.
6969 (b) The commission shall establish procedures for the
7070 approval, monitoring, and inspection of casino gaming operations as
7171 necessary to protect the public health, welfare, and safety and the
7272 integrity of this state and to prevent financial loss to this state.
7373 Sec. 2005.053. FEES. The commission shall establish the
7474 application, certification, and certification renewal fees for
7575 each type of certification issued under this chapter in amounts
7676 reasonable and necessary to cover this state's costs incurred in
7777 the administration of this chapter and the regulation of casino
7878 gaming.
7979 Sec. 2005.054. ANNUAL REPORT. The commission shall make an
8080 annual report to the governor, the comptroller, and the legislature
8181 that provides a summary of casino gaming revenues and expenses for
8282 the state fiscal year preceding the report. The report must be in
8383 the form and reported at the time provided by the General
8484 Appropriations Act.
8585 Sec. 2005.055. INVESTIGATIONS. The commission may
8686 investigate a violation or alleged violation of:
8787 (1) this chapter or rules adopted under this chapter
8888 by any person; or
8989 (2) the penal laws of this state in connection with the
9090 administration of this chapter, the regulation of casino gaming, or
9191 the conduct of casino gaming by a person authorized to operate
9292 casino gaming under this chapter.
9393 SUBCHAPTER C. CASINO GAMING
9494 Sec. 2005.101. CASINO GAMING OPERATOR LICENSE. A person
9595 may not conduct casino gaming in this state unless the person holds
9696 a casino gaming operator license issued under this chapter.
9797 Sec. 2005.102. ALLOCATION OF CASINO GAMING OPERATOR
9898 LICENSES. The commission shall award not more than nine casino
9999 gaming operator licenses to applicants as follows:
100100 (1) one license in each of the counties of Galveston,
101101 Jefferson, and Nueces, provided the license issued in Jefferson
102102 County is for a location approved by the commissioners court of the
103103 county that has interstate access and other appropriate
104104 infrastructure;
105105 (2) three licenses in Bexar and Harris Counties to
106106 persons who are licensed to conduct pari-mutuel wagering on horse
107107 and greyhound races in one of those counties, provided not more than
108108 two licenses are awarded in either county; and
109109 (3) one license in each of three first tier coastal or
110110 second tier coastal counties, as those terms are defined by Section
111111 2210.003, Insurance Code, to persons who are licensed to conduct
112112 pari-mutuel wagering on horse or greyhound races in one of those
113113 counties.
114114 Sec. 2005.103. CERTIFICATES REQUIRED. (a) A person may not
115115 provide, maintain, manufacture, distribute, sell, or lease casino
116116 games or casino gaming equipment or services for use in this state
117117 unless the person holds a gaming vendor certificate issued under
118118 this chapter.
119119 (b) A person may not act as a casino gaming manager for a
120120 gaming facility in this state unless the person holds a casino
121121 gaming manager certificate issued under this chapter.
122122 (c) Unless the person holds the required gaming employee
123123 certificate, a person may not act as a gaming employee in any gaming
124124 employee position for which the commission by rule requires a
125125 person to hold a certificate issued under this chapter.
126126 Sec. 2005.104. GAMING VENDOR CERTIFICATE. (a) The
127127 commission shall issue a gaming vendor certificate to an eligible
128128 person with the resources and experience required to provide casino
129129 games or casino gaming equipment and services for casino gaming
130130 operations authorized under this chapter.
131131 (b) The commission by rule shall establish the minimum
132132 qualifications for a gaming vendor certificate to ensure a
133133 competitive market for casino gaming equipment and services and the
134134 availability of reliable casino gaming equipment and services,
135135 consistent with the public health, welfare, and safety.
136136 Sec. 2005.105. CASINO GAMING MANAGER CERTIFICATE. (a) The
137137 commission shall issue a casino gaming manager certificate to an
138138 eligible person with the qualifications and experience required to
139139 manage casino gaming operations under this chapter.
140140 (b) The commission by rule shall establish the minimum
141141 qualifications for a casino gaming manager certificate necessary to
142142 protect the public health, welfare, and safety.
143143 Sec. 2005.106. GAMING EMPLOYEE CERTIFICATE. The commission
144144 by rule and as necessary to protect the public health, welfare, and
145145 safety may establish gaming employee positions that require a
146146 certificate issued under this chapter to act in those positions.
147147 Sec. 2005.107. BACKGROUND INVESTIGATIONS. Before issuing a
148148 certificate to a person under this chapter, the commission shall
149149 conduct a background investigation that includes obtaining
150150 criminal history record information of the person seeking the
151151 certificate to assist the commission in determining the person's
152152 eligibility or suitability for the certificate.
153153 SUBCHAPTER D. REVENUE
154154 Sec. 2005.151. STATE CASINO GAMING ACCOUNT. The state
155155 casino gaming account is a special account in the general revenue
156156 fund. The account consists of all revenue received by the
157157 commission from casino gaming, fees received under this chapter,
158158 and all money credited to the account from any other fund or source
159159 under law.
160160 Sec. 2005.152. CASINO GAMING TAX. (a) A casino gaming tax
161161 in an amount equal to 18 percent of a casino's gross gaming revenue
162162 is imposed on each holder of a casino gaming operator's license.
163163 (b) For each state fiscal year, the comptroller shall
164164 allocate the revenue from the tax imposed under this section and
165165 transfer to:
166166 (1) the catastrophe reserve trust fund established
167167 under Subchapter J, Chapter 2210, Insurance Code, the lesser of:
168168 (A) 50 percent of the tax revenue imposed under
169169 this section; or
170170 (B) the amount sufficient to ensure that the
171171 premium and other revenue of the Texas Windstorm Insurance
172172 Association together with the money allocated under this section
173173 equals the insured losses and operating expenses of the association
174174 for the state fiscal year; and
175175 (2) the catastrophic flooding assistance trust fund
176176 established under Section 2005.153 the remainder of the tax revenue
177177 after making a transfer as required by Subdivision (1).
178178 (c) The comptroller by rule shall adopt a schedule for the
179179 collection of the tax imposed under this section and the transfer of
180180 tax revenue under Subsection (b).
181181 (d) Title 2, Tax Code, applies to the tax imposed under this
182182 section.
183183 Sec. 2005.153. CATASTROPHIC FLOODING ASSISTANCE TRUST
184184 FUND. (a) The catastrophic flooding assistance trust fund is
185185 established outside the treasury and is administered by the office
186186 of the governor. Credits of money in the fund are not state funds or
187187 subject to legislative appropriation.
188188 (b) The trust fund consists of money deposited to the fund
189189 under Section 2005.152 and appropriations to the fund made by the
190190 legislature.
191191 (c) If the office of the governor under Section 418.014,
192192 Government Code, declares a state of disaster regarding
193193 catastrophic flooding in a coastal area of this state, the governor
194194 shall make money in the fund available to the Texas Division of
195195 Emergency Management for the purpose of providing emergency relief
196196 under the state emergency management plan for victims of loss
197197 caused by the catastrophic flooding.
198198 (d) Interest and income from the assets of the trust fund
199199 shall be credited to and deposited in the trust fund.
200200 SUBCHAPTER E. OFFENSES; DISCIPLINARY ACTIONS; PENALTIES
201201 Sec. 2005.201. MANIPULATION OR TAMPERING. (a) A person
202202 commits an offense if the person intentionally or knowingly
203203 manipulates the outcome of a casino game, the amount of a casino
204204 game prize, or the operation of a casino gaming device by physical,
205205 electronic, or other means, other than in accordance with
206206 commission rules.
207207 (b) An offense under this section is a felony of the third
208208 degree.
209209 Sec. 2005.202. SALE OF CASINO GAME TO INDIVIDUAL YOUNGER
210210 THAN 18 YEARS OF AGE. (a) A person who is a casino gaming manager
211211 or an employee or agent of a casino gaming manager commits an
212212 offense if the person intentionally or knowingly:
213213 (1) sells or offers to sell a play of a casino game to
214214 an individual the person knows is younger than 18 years of age or
215215 permits the individual to purchase a play of a casino game; or
216216 (2) pays money or issues a credit slip or other
217217 winnings for a play of a casino game to an individual the person
218218 knows is younger than 18 years of age.
219219 (b) An individual who is younger than 18 years of age
220220 commits an offense if the individual:
221221 (1) purchases a play of a casino game;
222222 (2) accepts money, a credit slip, or other payment of
223223 winnings for a play of a casino game; or
224224 (3) falsely represents the individual to be 18 years
225225 of age or older by displaying evidence of age that is false or
226226 fraudulent or misrepresents in any way the individual's age in
227227 order to purchase a play of a casino game.
228228 (c) An offense under Subsection (a) is a Class B
229229 misdemeanor.
230230 (d) An offense under Subsection (b) is a misdemeanor
231231 punishable by a fine not to exceed $250.
232232 Sec. 2005.203. DISCIPLINARY ACTIONS. (a) The commission
233233 may refuse to issue a license or certificate or may revoke, suspend,
234234 or refuse to renew a license or certificate or may reprimand a
235235 license or certificate holder for a violation of this chapter,
236236 other state law, or a rule of the commission.
237237 (b) If the commission proposes to take action against a
238238 license or certificate holder or applicant under Subsection (a),
239239 the license or certificate holder or applicant is entitled to
240240 notice and a hearing.
241241 (c) The commission may place on probation subject to
242242 reasonable conditions a person whose license or certificate is
243243 suspended under this section.
244244 (d) The commission may summarily suspend a license or
245245 certificate issued under this chapter in the same manner as the
246246 commission is authorized to suspend a license under Section
247247 466.160, Government Code, if the commission determines that the
248248 action is necessary to maintain the integrity, security, or
249249 fairness of casino gaming.
250250 (e) The commission by rule shall develop a system for
251251 monitoring a license or certificate holder's compliance with this
252252 chapter.
253253 Sec. 2005.204. ADMINISTRATIVE PENALTY. (a) The commission
254254 may impose an administrative penalty against a person who violates
255255 this chapter or a rule or order adopted by the commission under this
256256 chapter in the same manner as the commission is authorized to impose
257257 an administrative penalty under Subchapter M, Chapter 2001.
258258 (b) The amount of the administrative penalty may not exceed
259259 $1,000 for each violation. Each day a violation continues or occurs
260260 may be considered a separate violation for purposes of imposing a
261261 penalty.
262262 (c) In determining the amount of the penalty, the executive
263263 director shall consider:
264264 (1) the seriousness of the violation, including the
265265 nature, circumstances, extent, and gravity of the violation;
266266 (2) the history of previous violations;
267267 (3) the amount necessary to deter future violations;
268268 (4) efforts to correct the violation; and
269269 (5) any other matter that justice may require.
270270 (d) The notice, hearing, and appeal for an administrative
271271 penalty assessed under this section shall be provided or conducted
272272 in the same manner as notice, hearing, and appeals are provided or
273273 conducted under Subchapter M, Chapter 2001.
274274 Sec. 2005.205. CIVIL PENALTY. (a) A person who violates
275275 this chapter or a rule adopted by the commission under this chapter
276276 is liable to the state for a civil penalty not to exceed $5,000 for
277277 each day of violation.
278278 (b) At the request of the commission, the attorney general
279279 shall bring an action to recover a civil penalty authorized by this
280280 section. The attorney general may recover reasonable expenses,
281281 including attorney's fees, incurred in recovering the civil
282282 penalty.
283283 SECTION 2. Section 411.108(a-1), Government Code, is
284284 amended to read as follows:
285285 (a-1) The Texas Lottery Commission is entitled to obtain
286286 from the department criminal history record information maintained
287287 by the department that relates to:
288288 (1) a person licensed under Chapter 2001, Occupations
289289 Code, or described by Section 2001.3025, Occupations Code; or
290290 (2) a person holding or applying for a license or
291291 certificate under Chapter 2005, Occupations Code.
292292 SECTION 3. Section 466.024(b), Government Code, is amended
293293 to read as follows:
294294 (b) The commission shall adopt rules prohibiting the
295295 operation of any game using a video lottery machine or video gaming
296296 machine, except in accordance with Chapter 2005, Occupations Code.
297297 SECTION 4. Section 47.02(c), Penal Code, as effective April
298298 1, 2019, is amended to read as follows:
299299 (c) It is a defense to prosecution under this section that
300300 the actor reasonably believed that the conduct:
301301 (1) was permitted under Chapter 2001, Occupations
302302 Code;
303303 (2) was permitted under Chapter 2002, Occupations
304304 Code;
305305 (3) was permitted under Chapter 2004, Occupations
306306 Code;
307307 (4) was permitted under Chapter 2005, Occupations
308308 Code;
309309 (5) consisted entirely of participation in the state
310310 lottery authorized by the State Lottery Act (Chapter 466,
311311 Government Code);
312312 (6) [(5)] was permitted under Subtitle A-1, Title 13,
313313 Occupations Code (Texas Racing Act); or
314314 (7) [(6)] consisted entirely of participation in a
315315 drawing for the opportunity to participate in a hunting, fishing,
316316 or other recreational event conducted by the Parks and Wildlife
317317 Department.
318318 SECTION 5. Section 47.09, Penal Code, as effective April 1,
319319 2019, is amended by amending Subsection (a) and adding Subsection
320320 (c) to read as follows:
321321 (a) It is a defense to prosecution under this chapter that
322322 the conduct:
323323 (1) was authorized under:
324324 (A) Chapter 2001, Occupations Code;
325325 (B) Chapter 2002, Occupations Code;
326326 (C) Chapter 2004, Occupations Code;
327327 (D) Chapter 2005, Occupations Code;
328328 (E) Subtitle A-1, Title 13, Occupations Code
329329 (Texas Racing Act); or
330330 (F) [(E)] Chapter 280, Finance Code;
331331 (2) consisted entirely of participation in the state
332332 lottery authorized by Chapter 466, Government Code; or
333333 (3) was a necessary incident to the operation of the
334334 state lottery and was directly or indirectly authorized by:
335335 (A) Chapter 466, Government Code;
336336 (B) the lottery division of the Texas Lottery
337337 Commission;
338338 (C) the Texas Lottery Commission; or
339339 (D) the director of the lottery division of the
340340 Texas Lottery Commission.
341341 (c) Subsection (a)(1)(D) applies to a person manufacturing,
342342 possessing, or operating a gambling device under a license or
343343 certificate issued under Chapter 2005, Occupations Code.
344344 SECTION 6. Chapter 47, Penal Code, is amended by adding
345345 Section 47.095 to read as follows:
346346 Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
347347 a defense to prosecution under this chapter that a person sells,
348348 leases, transports, possesses, stores, or manufactures a gambling
349349 device with the authorization of the Texas Lottery Commission under
350350 Chapter 2005, Occupations Code, for transportation in interstate or
351351 foreign commerce.
352352 SECTION 7. (a) As soon as practicable after the effective
353353 date of this Act, the Texas Lottery Commission shall adopt the rules
354354 necessary to implement casino gaming in accordance with Chapter
355355 2005, Occupations Code, as added by this Act.
356356 (b) The Texas Lottery Commission may adopt initial rules for
357357 purposes of implementing casino gaming in accordance with Chapter
358358 2005, Occupations Code, as added by this Act, that expire not later
359359 than May 1, 2020. Chapter 2001, Government Code, does not apply to
360360 the adoption of those rules. This subsection expires June 1, 2020.
361361 SECTION 8. This Act takes effect December 1, 2019, but only
362362 if the constitutional amendment authorizing the legislature to
363363 authorize the operation of casino gaming in certain coastal areas
364364 of this state by licensed persons to provide additional money for
365365 residual windstorm insurance coverage and catastrophic flooding
366366 assistance in the coastal areas is approved by the voters. If that
367367 amendment is not approved by the voters, this Act has no effect.