| 1 | 1 | | 87R4955 ADM-D |
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| 2 | 2 | | By: Guerra H.B. No. 2257 |
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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 the operation of casino gaming in certain state coastal |
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| 8 | 8 | | areas to provide additional money for property tax relief; |
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| 9 | 9 | | requiring occupational licenses and certifications; authorizing |
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| 10 | 10 | | fees; imposing a tax; creating criminal offenses and providing |
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| 11 | 11 | | other penalties. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subtitle A, Title 13, Occupations Code, is |
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| 14 | 14 | | amended by adding Chapter 2005 to read as follows: |
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| 15 | 15 | | CHAPTER 2005. CASINO GAMING |
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| 16 | 16 | | SUBCHAPTER A. GENERAL PROVISIONS |
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| 17 | 17 | | Sec. 2005.001. DEFINITIONS. In this chapter: |
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| 18 | 18 | | (1) "Casino game" means any game of chance, including |
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| 19 | 19 | | a game of chance in which the outcome may be partially determined by |
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| 20 | 20 | | skill or ability, that involves the making of a bet, as defined by |
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| 21 | 21 | | Section 47.01, Penal Code. |
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| 22 | 22 | | (2) "Casino gaming" means the conduct of casino games |
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| 23 | 23 | | authorized under this chapter. |
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| 24 | 24 | | (3) "Casino gaming manager" means a person certified |
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| 25 | 25 | | under this chapter to manage casino gaming operations at a location |
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| 26 | 26 | | authorized under this chapter to conduct casino gaming in this |
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| 27 | 27 | | state. |
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| 28 | 28 | | (4) "Commission" means the Texas Lottery Commission. |
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| 29 | 29 | | (5) "Executive director" means the executive director |
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| 30 | 30 | | of the commission. |
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| 31 | 31 | | (6) "Gaming vendor" means a person licensed under this |
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| 32 | 32 | | chapter to provide, maintain, manufacture, distribute, sell, or |
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| 33 | 33 | | lease casino gaming equipment and services to a person authorized |
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| 34 | 34 | | to operate casino gaming in this state. |
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| 35 | 35 | | Sec. 2005.002. APPLICABILITY OF FEDERAL LAW. All shipments |
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| 36 | 36 | | of casino gaming equipment and devices into, out of, or within this |
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| 37 | 37 | | state in connection with casino gaming are legal shipments of the |
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| 38 | 38 | | devices and are exempt from the provisions of 15 U.S.C. Sections |
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| 39 | 39 | | 1171-1178 prohibiting the transportation of gambling devices. |
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| 40 | 40 | | SUBCHAPTER B. ADMINISTRATION |
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| 41 | 41 | | Sec. 2005.051. POWERS AND DUTIES OF COMMISSION AND |
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| 42 | 42 | | EXECUTIVE DIRECTOR. (a) The commission and executive director |
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| 43 | 43 | | have broad authority and shall exercise strict control over and |
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| 44 | 44 | | closely monitor casino gaming authorized under Section 47a, Article |
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| 45 | 45 | | III, Texas Constitution, to protect the public health, welfare, and |
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| 46 | 46 | | safety and ensure integrity, security, honesty, and fairness in the |
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| 47 | 47 | | conduct and administration of casino gaming. |
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| 48 | 48 | | (b) The executive director may contract with or employ a |
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| 49 | 49 | | person to perform a function, activity, or service in connection |
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| 50 | 50 | | with casino gaming as prescribed by the executive director. |
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| 51 | 51 | | (c) The commission shall as necessary to protect the public |
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| 52 | 52 | | health, welfare, and safety: |
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| 53 | 53 | | (1) monitor casino gaming operations on a continuing |
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| 54 | 54 | | basis; |
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| 55 | 55 | | (2) establish standards for: |
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| 56 | 56 | | (A) the operation of casino gaming; |
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| 57 | 57 | | (B) the provision of casino gaming equipment and |
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| 58 | 58 | | services; and |
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| 59 | 59 | | (C) the establishment and maintenance of casino |
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| 60 | 60 | | gaming facilities; and |
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| 61 | 61 | | (3) inspect and examine all gaming facilities, |
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| 62 | 62 | | equipment, services, records, and operations to ensure compliance |
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| 63 | 63 | | with the standards established by the commission. |
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| 64 | 64 | | Sec. 2005.052. RULES AND PROCEDURES. (a) The commission |
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| 65 | 65 | | shall adopt all rules necessary to supervise casino gaming in this |
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| 66 | 66 | | state, administer this chapter, and ensure the security of casino |
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| 67 | 67 | | gaming operations in this state. |
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| 68 | 68 | | (b) The commission shall establish procedures for the |
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| 69 | 69 | | approval, monitoring, and inspection of casino gaming operations as |
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| 70 | 70 | | necessary to protect the public health, welfare, and safety and the |
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| 71 | 71 | | integrity of this state and to prevent financial loss to this state. |
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| 72 | 72 | | Sec. 2005.053. FEES. The commission shall establish the |
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| 73 | 73 | | application, license, certification, and license and certification |
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| 74 | 74 | | renewal fees for each type of license and certification issued |
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| 75 | 75 | | under this chapter in amounts reasonable and necessary to cover |
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| 76 | 76 | | this state's costs incurred in the administration of this chapter |
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| 77 | 77 | | and the regulation of casino gaming. |
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| 78 | 78 | | Sec. 2005.054. ANNUAL REPORT. The commission shall make an |
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| 79 | 79 | | annual report to the governor, the comptroller, and the legislature |
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| 80 | 80 | | that provides a summary of casino gaming revenues and expenses for |
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| 81 | 81 | | the state fiscal year preceding the report. The report must be in |
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| 82 | 82 | | the form and reported at the time provided by the General |
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| 83 | 83 | | Appropriations Act. |
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| 84 | 84 | | Sec. 2005.055. INVESTIGATIONS. The commission may |
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| 85 | 85 | | investigate a violation or alleged violation of: |
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| 86 | 86 | | (1) this chapter or rules adopted under this chapter |
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| 87 | 87 | | by any person; or |
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| 88 | 88 | | (2) the penal laws of this state in connection with the |
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| 89 | 89 | | administration of this chapter, the regulation of casino gaming, or |
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| 90 | 90 | | the conduct of casino gaming by a person authorized to operate |
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| 91 | 91 | | casino gaming under this chapter. |
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| 92 | 92 | | SUBCHAPTER C. CASINO GAMING |
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| 93 | 93 | | Sec. 2005.101. CASINO GAMING OPERATOR LICENSE. A person |
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| 94 | 94 | | may not conduct casino gaming in this state unless the person holds |
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| 95 | 95 | | a casino gaming operator license issued under this chapter. |
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| 96 | 96 | | Sec. 2005.102. ALLOCATION OF CASINO GAMING OPERATOR |
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| 97 | 97 | | LICENSES. (a) The commission shall award a casino gaming operator |
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| 98 | 98 | | license to an applicant who: |
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| 99 | 99 | | (1) enters into a written agreement with the |
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| 100 | 100 | | commission to initially invest not less than $1 billion, or an |
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| 101 | 101 | | alternative amount prescribed by the commissioner as the |
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| 102 | 102 | | commissioner determines necessary to protect state finances, in the |
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| 103 | 103 | | applicant's casino location; and |
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| 104 | 104 | | (2) the commission determines possesses the resources |
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| 105 | 105 | | and experience necessary to successfully operate a casino in this |
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| 106 | 106 | | state. |
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| 107 | 107 | | (b) The commission may not award a license for a casino at a |
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| 108 | 108 | | site located more than 200 miles from the Gulf of Mexico. |
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| 109 | 109 | | Sec. 2005.103. CERTIFICATES REQUIRED. (a) A person may not |
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| 110 | 110 | | provide, maintain, manufacture, distribute, sell, or lease casino |
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| 111 | 111 | | games or casino gaming equipment or services for use in this state |
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| 112 | 112 | | unless the person holds a gaming vendor certificate issued under |
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| 113 | 113 | | this chapter. |
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| 114 | 114 | | (b) A person may not act as a casino gaming manager for a |
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| 115 | 115 | | gaming facility in this state unless the person holds a casino |
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| 116 | 116 | | gaming manager certificate issued under this chapter. |
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| 117 | 117 | | (c) Unless the person holds the required gaming employee |
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| 118 | 118 | | certificate, a person may not act as a gaming employee in any gaming |
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| 119 | 119 | | employee position for which the commission by rule requires a |
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| 120 | 120 | | person to hold a certificate issued under this chapter. |
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| 121 | 121 | | Sec. 2005.104. GAMING VENDOR CERTIFICATE. (a) The |
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| 122 | 122 | | commission shall issue a gaming vendor certificate to an eligible |
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| 123 | 123 | | person with the resources and experience required to provide casino |
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| 124 | 124 | | games or casino gaming equipment and services for casino gaming |
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| 125 | 125 | | operations authorized under this chapter. |
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| 126 | 126 | | (b) The commission by rule shall establish the minimum |
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| 127 | 127 | | qualifications for a gaming vendor certificate to ensure a |
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| 128 | 128 | | competitive market for casino gaming equipment and services and the |
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| 129 | 129 | | availability of reliable casino gaming equipment and services, |
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| 130 | 130 | | consistent with the public health, welfare, and safety. |
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| 131 | 131 | | Sec. 2005.105. CASINO GAMING MANAGER CERTIFICATE. (a) The |
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| 132 | 132 | | commission shall issue a casino gaming manager certificate to an |
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| 133 | 133 | | eligible person with the qualifications and experience required to |
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| 134 | 134 | | manage casino gaming operations under this chapter. |
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| 135 | 135 | | (b) The commission by rule shall establish the minimum |
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| 136 | 136 | | qualifications for a casino gaming manager certificate necessary to |
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| 137 | 137 | | protect the public health, welfare, and safety. |
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| 138 | 138 | | Sec. 2005.106. GAMING EMPLOYEE CERTIFICATE. The commission |
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| 139 | 139 | | by rule and as necessary to protect the public health, welfare, and |
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| 140 | 140 | | safety may establish gaming employee positions that require a |
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| 141 | 141 | | certificate issued under this chapter to act in those positions. |
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| 142 | 142 | | Sec. 2005.107. BACKGROUND INVESTIGATIONS; CRIMINAL HISTORY |
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| 143 | 143 | | RECORD INFORMATION. Before issuing a license or certificate to a |
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| 144 | 144 | | person under this chapter, the commission shall conduct any |
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| 145 | 145 | | necessary background investigation and obtain criminal history |
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| 146 | 146 | | record information of the person seeking the license or certificate |
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| 147 | 147 | | to assist the commission in determining the person's eligibility or |
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| 148 | 148 | | suitability for the license or certificate. |
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| 149 | 149 | | SUBCHAPTER D. REVENUE |
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| 150 | 150 | | Sec. 2005.151. STATE CASINO GAMING ACCOUNT. The state |
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| 151 | 151 | | casino gaming account is a special account in the general revenue |
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| 152 | 152 | | fund. The account consists of all revenue received by the |
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| 153 | 153 | | commission from casino gaming, fees received under this chapter, |
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| 154 | 154 | | and all money credited to the account from any other fund or source |
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| 155 | 155 | | under law. |
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| 156 | 156 | | Sec. 2005.152. CASINO GAMING TAX. (a) A casino gaming tax |
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| 157 | 157 | | in an amount equal to 18 percent of a casino's gross gaming revenue |
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| 158 | 158 | | is imposed on each holder of a casino gaming operator's license. |
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| 159 | 159 | | (b) For each state fiscal year, the comptroller shall |
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| 160 | 160 | | deposit the revenue from the tax imposed under this section to the |
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| 161 | 161 | | credit of the property tax relief fund established under Section |
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| 162 | 162 | | 403.109, Government Code. |
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| 163 | 163 | | (c) The comptroller by rule shall adopt a schedule for the |
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| 164 | 164 | | collection of the tax imposed under this section and the transfer of |
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| 165 | 165 | | tax revenue under Subsection (b). |
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| 166 | 166 | | (d) Title 2, Tax Code, applies to the tax imposed under this |
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| 167 | 167 | | section. |
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| 168 | 168 | | SUBCHAPTER E. CRIMINAL OFFENSES; DISCIPLINARY ACTIONS; |
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| 169 | 169 | | ADMINISTRATIVE AND CIVIL PENALTIES |
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| 170 | 170 | | Sec. 2005.201. MANIPULATION OR TAMPERING. (a) A person |
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| 171 | 171 | | commits an offense if the person intentionally or knowingly |
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| 172 | 172 | | manipulates the outcome of a casino game, the amount of a casino |
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| 173 | 173 | | game prize, or the operation of a casino gaming device by physical, |
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| 174 | 174 | | electronic, or other means, other than in accordance with |
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| 175 | 175 | | commission rules. |
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| 176 | 176 | | (b) An offense under this section is a felony of the third |
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| 177 | 177 | | degree. |
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| 178 | 178 | | Sec. 2005.202. SALE OF CASINO GAME TO INDIVIDUAL YOUNGER |
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| 179 | 179 | | THAN 18 YEARS OF AGE. (a) A person who is a casino gaming manager |
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| 180 | 180 | | or an employee or agent of a casino gaming manager commits an |
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| 181 | 181 | | offense if the person intentionally or knowingly: |
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| 182 | 182 | | (1) sells or offers to sell a play of a casino game to |
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| 183 | 183 | | an individual the person knows is younger than 18 years of age or |
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| 184 | 184 | | permits the individual to purchase a play of a casino game; or |
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| 185 | 185 | | (2) pays money or issues a credit slip or other |
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| 186 | 186 | | winnings for a play of a casino game to an individual the person |
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| 187 | 187 | | knows is younger than 18 years of age. |
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| 188 | 188 | | (b) An individual who is younger than 18 years of age |
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| 189 | 189 | | commits an offense if the individual: |
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| 190 | 190 | | (1) purchases a play of a casino game; |
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| 191 | 191 | | (2) accepts money, a credit slip, or other payment of |
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| 192 | 192 | | winnings for a play of a casino game; or |
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| 193 | 193 | | (3) falsely represents the individual to be 18 years |
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| 194 | 194 | | of age or older by displaying evidence of age that is false or |
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| 195 | 195 | | fraudulent or misrepresents in any way the individual's age in |
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| 196 | 196 | | order to purchase a play of a casino game. |
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| 197 | 197 | | (c) An offense under Subsection (a) is a Class B |
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| 198 | 198 | | misdemeanor. |
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| 199 | 199 | | (d) An offense under Subsection (b) is a misdemeanor |
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| 200 | 200 | | punishable by a fine not to exceed $250. |
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| 201 | 201 | | Sec. 2005.203. DISCIPLINARY ACTIONS. (a) The commission |
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| 202 | 202 | | may refuse to issue a license or certificate or may revoke, suspend, |
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| 203 | 203 | | or refuse to renew a license or certificate or may reprimand a |
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| 204 | 204 | | license or certificate holder for a violation of this chapter, |
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| 205 | 205 | | other state law, or a rule of the commission. |
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| 206 | 206 | | (b) If the commission proposes to take action against a |
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| 207 | 207 | | license or certificate holder or applicant under Subsection (a), |
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| 208 | 208 | | the license or certificate holder or applicant is entitled to |
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| 209 | 209 | | notice and a hearing. |
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| 210 | 210 | | (c) The commission may place on probation subject to |
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| 211 | 211 | | reasonable conditions a person whose license or certificate is |
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| 212 | 212 | | suspended under this section. |
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| 213 | 213 | | (d) The commission may summarily suspend a license or |
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| 214 | 214 | | certificate issued under this chapter in the same manner as the |
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| 215 | 215 | | commission is authorized to suspend a license under Section |
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| 216 | 216 | | 466.160, Government Code, if the commission determines that the |
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| 217 | 217 | | action is necessary to maintain the integrity, security, or |
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| 218 | 218 | | fairness of casino gaming. |
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| 219 | 219 | | (e) The commission by rule shall develop a system for |
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| 220 | 220 | | monitoring a license or certificate holder's compliance with this |
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| 221 | 221 | | chapter. |
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| 222 | 222 | | Sec. 2005.204. ADMINISTRATIVE PENALTY. (a) The commission |
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| 223 | 223 | | may impose an administrative penalty against a person who violates |
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| 224 | 224 | | this chapter or a rule or order adopted by the commission under this |
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| 225 | 225 | | chapter in the same manner as the commission is authorized to impose |
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| 226 | 226 | | an administrative penalty under Subchapter M, Chapter 2001. |
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| 227 | 227 | | (b) The amount of the administrative penalty may not exceed |
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| 228 | 228 | | $1,000 for each violation. Each day a violation continues or occurs |
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| 229 | 229 | | may be considered a separate violation for purposes of imposing a |
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| 230 | 230 | | penalty. |
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| 231 | 231 | | (c) In determining the amount of the penalty, the executive |
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| 232 | 232 | | director shall consider: |
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| 233 | 233 | | (1) the seriousness of the violation, including the |
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| 234 | 234 | | nature, circumstances, extent, and gravity of the violation; |
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| 235 | 235 | | (2) the history of previous violations; |
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| 236 | 236 | | (3) the amount necessary to deter future violations; |
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| 237 | 237 | | (4) efforts to correct the violation; and |
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| 238 | 238 | | (5) any other matter that justice may require. |
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| 239 | 239 | | (d) The notice, hearing, and appeal for an administrative |
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| 240 | 240 | | penalty assessed under this section shall be provided or conducted |
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| 241 | 241 | | in the same manner as notice, hearing, and appeals are provided or |
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| 242 | 242 | | conducted under Subchapter M, Chapter 2001. |
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| 243 | 243 | | Sec. 2005.205. CIVIL PENALTY. (a) A person who violates |
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| 244 | 244 | | this chapter or a rule adopted by the commission under this chapter |
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| 245 | 245 | | is liable to the state for a civil penalty not to exceed $5,000 for |
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| 246 | 246 | | each day of violation. |
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| 247 | 247 | | (b) At the request of the commission, the attorney general |
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| 248 | 248 | | shall bring an action to recover a civil penalty authorized by this |
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| 249 | 249 | | section. The attorney general may recover reasonable expenses, |
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| 250 | 250 | | including attorney's fees, incurred in recovering the civil |
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| 251 | 251 | | penalty. |
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| 252 | 252 | | SECTION 2. Section 411.108(a-1), Government Code, is |
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| 253 | 253 | | amended to read as follows: |
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| 254 | 254 | | (a-1) The Texas Lottery Commission is entitled to obtain |
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| 255 | 255 | | from the department criminal history record information maintained |
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| 256 | 256 | | by the department that relates to: |
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| 257 | 257 | | (1) a person licensed under Chapter 2001, Occupations |
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| 258 | 258 | | Code, or described by Section 2001.3025, Occupations Code; or |
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| 259 | 259 | | (2) a person holding or applying for a license or |
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| 260 | 260 | | certificate under Chapter 2005, Occupations Code. |
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| 261 | 261 | | SECTION 3. Section 466.024(b), Government Code, is amended |
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| 262 | 262 | | to read as follows: |
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| 263 | 263 | | (b) The commission shall adopt rules prohibiting the |
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| 264 | 264 | | operation of any game using a video lottery machine or video gaming |
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| 265 | 265 | | machine, except in accordance with Chapter 2005, Occupations Code. |
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| 266 | 266 | | SECTION 4. Section 47.02(c), Penal Code, is amended to read |
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| 267 | 267 | | as follows: |
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| 268 | 268 | | (c) It is a defense to prosecution under this section that |
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| 269 | 269 | | the actor reasonably believed that the conduct: |
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| 270 | 270 | | (1) was permitted under Chapter 2001, Occupations |
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| 271 | 271 | | Code; |
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| 272 | 272 | | (2) was permitted under Chapter 2002, Occupations |
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| 273 | 273 | | Code; |
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| 274 | 274 | | (3) was permitted under Chapter 2004, Occupations |
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| 275 | 275 | | Code; |
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| 276 | 276 | | (4) was permitted under Chapter 2005, Occupations |
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| 277 | 277 | | Code; |
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| 278 | 278 | | (5) consisted entirely of participation in the state |
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| 279 | 279 | | lottery authorized by the State Lottery Act (Chapter 466, |
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| 280 | 280 | | Government Code); |
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| 281 | 281 | | (6) [(5)] was permitted under Subtitle A-1, Title 13, |
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| 282 | 282 | | Occupations Code (Texas Racing Act); or |
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| 283 | 283 | | (7) [(6)] consisted entirely of participation in a |
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| 284 | 284 | | drawing for the opportunity to participate in a hunting, fishing, |
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| 285 | 285 | | or other recreational event conducted by the Parks and Wildlife |
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| 286 | 286 | | Department. |
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| 287 | 287 | | SECTION 5. Section 47.09, Penal Code, is amended by |
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| 288 | 288 | | amending Subsection (a) and adding Subsection (c) to read as |
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| 289 | 289 | | follows: |
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| 290 | 290 | | (a) It is a defense to prosecution under this chapter that |
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| 291 | 291 | | the conduct: |
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| 292 | 292 | | (1) was authorized under: |
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| 293 | 293 | | (A) Chapter 2001, Occupations Code; |
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| 294 | 294 | | (B) Chapter 2002, Occupations Code; |
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| 295 | 295 | | (C) Chapter 2004, Occupations Code; |
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| 296 | 296 | | (D) Chapter 2005, Occupations Code; |
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| 297 | 297 | | (E) Subtitle A-1, Title 13, Occupations Code |
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| 298 | 298 | | (Texas Racing Act); or |
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| 299 | 299 | | (F) [(E)] Chapter 280, Finance Code; |
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| 300 | 300 | | (2) consisted entirely of participation in the state |
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| 301 | 301 | | lottery authorized by Chapter 466, Government Code; or |
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| 302 | 302 | | (3) was a necessary incident to the operation of the |
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| 303 | 303 | | state lottery and was directly or indirectly authorized by: |
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| 304 | 304 | | (A) Chapter 466, Government Code; |
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| 305 | 305 | | (B) the lottery division of the Texas Lottery |
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| 306 | 306 | | Commission; |
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| 307 | 307 | | (C) the Texas Lottery Commission; or |
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| 308 | 308 | | (D) the director of the lottery division of the |
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| 309 | 309 | | Texas Lottery Commission. |
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| 310 | 310 | | (c) Subsection (a)(1)(D) applies to a person manufacturing, |
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| 311 | 311 | | possessing, or operating a gambling device under a license or |
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| 312 | 312 | | certificate issued under Chapter 2005, Occupations Code. |
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| 313 | 313 | | SECTION 6. Chapter 47, Penal Code, is amended by adding |
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| 314 | 314 | | Section 47.095 to read as follows: |
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| 315 | 315 | | Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is |
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| 316 | 316 | | a defense to prosecution under this chapter that a person sells, |
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| 317 | 317 | | leases, transports, possesses, stores, or manufactures a gambling |
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| 318 | 318 | | device with the authorization of the Texas Lottery Commission under |
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| 319 | 319 | | Chapter 2005, Occupations Code, for transportation in interstate or |
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| 320 | 320 | | foreign commerce. |
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| 321 | 321 | | SECTION 7. (a) As soon as practicable after the effective |
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| 322 | 322 | | date of this Act, the Texas Lottery Commission shall adopt the rules |
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| 323 | 323 | | necessary to implement casino gaming in accordance with Chapter |
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| 324 | 324 | | 2005, Occupations Code, as added by this Act. |
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| 325 | 325 | | (b) The Texas Lottery Commission may adopt initial rules for |
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| 326 | 326 | | purposes of implementing casino gaming in accordance with Chapter |
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| 327 | 327 | | 2005, Occupations Code, as added by this Act, that expire not later |
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| 328 | 328 | | than May 1, 2022. Chapter 2001, Government Code, does not apply to |
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| 329 | 329 | | the adoption of those rules. This subsection expires June 1, 2022. |
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| 330 | 330 | | SECTION 8. This Act takes effect December 1, 2021, but only |
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| 331 | 331 | | if the constitutional amendment authorizing the operation of casino |
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| 332 | 332 | | gaming in certain state coastal areas to provide additional money |
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| 333 | 333 | | for property tax relief is approved by the voters. If that |
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| 334 | 334 | | amendment is not approved by the voters, this Act has no effect. |
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