Texas 2021 - 87th Regular

Texas House Bill HB477 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 87R541 BEE-D
22 By: Deshotel H.B. No. 477
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation of casino gaming in certain state coastal
88 areas to provide additional money for residual windstorm insurance
99 coverage and catastrophic flooding assistance in the coastal areas;
1010 requiring occupational licenses and certifications; authorizing
1111 fees; imposing a tax; creating criminal offenses and providing
1212 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 authorized under Sections 47a and
4646 47b, Article III, Texas Constitution, to protect the public health,
4747 welfare, and safety and ensure integrity, security, honesty, and
4848 fairness in the conduct and administration of casino 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, license, certification, and license and certification
7575 renewal fees for each type of license and certification issued
7676 under this chapter in amounts reasonable and necessary to cover
7777 this state's costs incurred in the administration of this chapter
7878 and the regulation of casino 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 to applicants not more than
9999 nine casino gaming operator licenses at locations in this state
100100 within 200 miles of the Gulf of Mexico as follows:
101101 (1) one license in each of the counties of Galveston,
102102 Jefferson, and Nueces, provided the license issued in Jefferson
103103 County is for a location approved by the commissioners court of the
104104 county that has interstate access and other appropriate
105105 infrastructure;
106106 (2) three licenses in Bexar and Harris Counties to
107107 persons who are licensed to conduct pari-mutuel wagering on horse
108108 and greyhound races in one of those counties, provided not more than
109109 two licenses are awarded in either county; and
110110 (3) one license in each of three first tier coastal or
111111 second tier coastal counties, as those terms are defined by Section
112112 2210.003, Insurance Code, to persons who are licensed to conduct
113113 pari-mutuel wagering on horse or greyhound races in one of those
114114 counties.
115115 Sec. 2005.103. CERTIFICATES REQUIRED. (a) A person may not
116116 provide, maintain, manufacture, distribute, sell, or lease casino
117117 games or casino gaming equipment or services for use in this state
118118 unless the person holds a gaming vendor certificate issued under
119119 this chapter.
120120 (b) A person may not act as a casino gaming manager for a
121121 gaming facility in this state unless the person holds a casino
122122 gaming manager certificate issued under this chapter.
123123 (c) Unless the person holds the required gaming employee
124124 certificate, a person may not act as a gaming employee in any gaming
125125 employee position for which the commission by rule requires a
126126 person to hold a certificate issued under this chapter.
127127 Sec. 2005.104. GAMING VENDOR CERTIFICATE. (a) The
128128 commission shall issue a gaming vendor certificate to an eligible
129129 person with the resources and experience required to provide casino
130130 games or casino gaming equipment and services for casino gaming
131131 operations authorized under this chapter.
132132 (b) The commission by rule shall establish the minimum
133133 qualifications for a gaming vendor certificate to ensure a
134134 competitive market for casino gaming equipment and services and the
135135 availability of reliable casino gaming equipment and services,
136136 consistent with the public health, welfare, and safety.
137137 Sec. 2005.105. CASINO GAMING MANAGER CERTIFICATE. (a) The
138138 commission shall issue a casino gaming manager certificate to an
139139 eligible person with the qualifications and experience required to
140140 manage casino gaming operations under this chapter.
141141 (b) The commission by rule shall establish the minimum
142142 qualifications for a casino gaming manager certificate necessary to
143143 protect the public health, welfare, and safety.
144144 Sec. 2005.106. GAMING EMPLOYEE CERTIFICATE. The commission
145145 by rule and as necessary to protect the public health, welfare, and
146146 safety may establish gaming employee positions that require a
147147 certificate issued under this chapter to act in those positions.
148148 Sec. 2005.107. BACKGROUND INVESTIGATIONS. Before issuing a
149149 certificate to a person under this chapter, the commission shall
150150 conduct a background investigation that includes obtaining
151151 criminal history record information of the person seeking the
152152 certificate to assist the commission in determining the person's
153153 eligibility or suitability for the certificate.
154154 SUBCHAPTER D. REVENUE
155155 Sec. 2005.151. STATE CASINO GAMING ACCOUNT. The state
156156 casino gaming account is a special account in the general revenue
157157 fund. The account consists of all revenue received by the
158158 commission from casino gaming, fees received under this chapter,
159159 and all money credited to the account from any other fund or source
160160 under law.
161161 Sec. 2005.152. CASINO GAMING TAX. (a) A casino gaming tax
162162 in an amount equal to 18 percent of a casino's gross gaming revenue
163163 is imposed on each holder of a casino gaming operator's license.
164164 (b) For each state fiscal year, the comptroller shall
165165 allocate the revenue from the tax imposed under this section and
166166 transfer to:
167167 (1) the catastrophe reserve trust fund established
168168 under Subchapter J, Chapter 2210, Insurance Code, the lesser of:
169169 (A) 50 percent of the tax revenue imposed under
170170 this section; or
171171 (B) the amount sufficient to ensure that the
172172 premium and other revenue of the Texas Windstorm Insurance
173173 Association together with the money allocated under this section
174174 equals the insured losses and operating expenses of the association
175175 for the state fiscal year; and
176176 (2) the catastrophic flooding assistance trust fund
177177 established under Section 2005.153 the remainder of the tax revenue
178178 after making a transfer as required by Subdivision (1).
179179 (c) The comptroller by rule shall adopt a schedule for the
180180 collection of the tax imposed under this section and the transfer of
181181 tax revenue under Subsection (b).
182182 (d) Title 2, Tax Code, applies to the tax imposed under this
183183 section.
184184 Sec. 2005.153. CATASTROPHIC FLOODING ASSISTANCE TRUST
185185 FUND. (a) The catastrophic flooding assistance trust fund is
186186 established outside the treasury and is administered by the office
187187 of the governor. Credits of money in the fund are not state funds or
188188 subject to legislative appropriation.
189189 (b) The trust fund consists of money deposited to the fund
190190 under Section 2005.152 and appropriations to the fund made by the
191191 legislature.
192192 (c) If the office of the governor under Section 418.014,
193193 Government Code, declares a state of disaster regarding
194194 catastrophic flooding in a coastal area of this state, the governor
195195 shall make money in the fund available to the Texas Division of
196196 Emergency Management for the purpose of providing emergency relief
197197 under the state emergency management plan for victims of loss
198198 caused by the catastrophic flooding.
199199 (d) Interest and income from the assets of the trust fund
200200 shall be credited to and deposited in the trust fund.
201201 SUBCHAPTER E. CRIMINAL OFFENSES; DISCIPLINARY ACTIONS;
202202 ADMINISTRATIVE AND CIVIL PENALTIES
203203 Sec. 2005.201. MANIPULATION OR TAMPERING. (a) A person
204204 commits an offense if the person intentionally or knowingly
205205 manipulates the outcome of a casino game, the amount of a casino
206206 game prize, or the operation of a casino gaming device by physical,
207207 electronic, or other means, other than in accordance with
208208 commission rules.
209209 (b) An offense under this section is a felony of the third
210210 degree.
211211 Sec. 2005.202. SALE OF CASINO GAME TO INDIVIDUAL YOUNGER
212212 THAN 18 YEARS OF AGE. (a) A person who is a casino gaming manager
213213 or an employee or agent of a casino gaming manager commits an
214214 offense if the person intentionally or knowingly:
215215 (1) sells or offers to sell a play of a casino game to
216216 an individual the person knows is younger than 18 years of age or
217217 permits the individual to purchase a play of a casino game; or
218218 (2) pays money or issues a credit slip or other
219219 winnings for a play of a casino game to an individual the person
220220 knows is younger than 18 years of age.
221221 (b) An individual who is younger than 18 years of age
222222 commits an offense if the individual:
223223 (1) purchases a play of a casino game;
224224 (2) accepts money, a credit slip, or other payment of
225225 winnings for a play of a casino game; or
226226 (3) falsely represents the individual to be 18 years
227227 of age or older by displaying evidence of age that is false or
228228 fraudulent or misrepresents in any way the individual's age in
229229 order to purchase a play of a casino game.
230230 (c) An offense under Subsection (a) is a Class B
231231 misdemeanor.
232232 (d) An offense under Subsection (b) is a misdemeanor
233233 punishable by a fine not to exceed $250.
234234 Sec. 2005.203. DISCIPLINARY ACTIONS. (a) The commission
235235 may refuse to issue a license or certificate or may revoke, suspend,
236236 or refuse to renew a license or certificate or may reprimand a
237237 license or certificate holder for a violation of this chapter,
238238 other state law, or a rule of the commission.
239239 (b) If the commission proposes to take action against a
240240 license or certificate holder or applicant under Subsection (a),
241241 the license or certificate holder or applicant is entitled to
242242 notice and a hearing.
243243 (c) The commission may place on probation subject to
244244 reasonable conditions a person whose license or certificate is
245245 suspended under this section.
246246 (d) The commission may summarily suspend a license or
247247 certificate issued under this chapter in the same manner as the
248248 commission is authorized to suspend a license under Section
249249 466.160, Government Code, if the commission determines that the
250250 action is necessary to maintain the integrity, security, or
251251 fairness of casino gaming.
252252 (e) The commission by rule shall develop a system for
253253 monitoring a license or certificate holder's compliance with this
254254 chapter.
255255 Sec. 2005.204. ADMINISTRATIVE PENALTY. (a) The commission
256256 may impose an administrative penalty against a person who violates
257257 this chapter or a rule or order adopted by the commission under this
258258 chapter in the same manner as the commission is authorized to impose
259259 an administrative penalty under Subchapter M, Chapter 2001.
260260 (b) The amount of the administrative penalty may not exceed
261261 $1,000 for each violation. Each day a violation continues or occurs
262262 may be considered a separate violation for purposes of imposing a
263263 penalty.
264264 (c) In determining the amount of the penalty, the executive
265265 director shall consider:
266266 (1) the seriousness of the violation, including the
267267 nature, circumstances, extent, and gravity of the violation;
268268 (2) the history of previous violations;
269269 (3) the amount necessary to deter future violations;
270270 (4) efforts to correct the violation; and
271271 (5) any other matter that justice may require.
272272 (d) The notice, hearing, and appeal for an administrative
273273 penalty assessed under this section shall be provided or conducted
274274 in the same manner as notice, hearing, and appeals are provided or
275275 conducted under Subchapter M, Chapter 2001.
276276 Sec. 2005.205. CIVIL PENALTY. (a) A person who violates
277277 this chapter or a rule adopted by the commission under this chapter
278278 is liable to the state for a civil penalty not to exceed $5,000 for
279279 each day of violation.
280280 (b) At the request of the commission, the attorney general
281281 shall bring an action to recover a civil penalty authorized by this
282282 section. The attorney general may recover reasonable expenses,
283283 including attorney's fees, incurred in recovering the civil
284284 penalty.
285285 SECTION 2. Section 411.108(a-1), Government Code, is
286286 amended to read as follows:
287287 (a-1) The Texas Lottery Commission is entitled to obtain
288288 from the department criminal history record information maintained
289289 by the department that relates to:
290290 (1) a person licensed under Chapter 2001, Occupations
291291 Code, or described by Section 2001.3025, Occupations Code; or
292292 (2) a person holding or applying for a license or
293293 certificate under Chapter 2005, Occupations Code.
294294 SECTION 3. Section 466.024(b), Government Code, is amended
295295 to read as follows:
296296 (b) The commission shall adopt rules prohibiting the
297297 operation of any game using a video lottery machine or video gaming
298298 machine, except in accordance with Chapter 2005, Occupations Code.
299299 SECTION 4. Section 47.02(c), Penal Code, is amended to read
300300 as follows:
301301 (c) It is a defense to prosecution under this section that
302302 the actor reasonably believed that the conduct:
303303 (1) was permitted under Chapter 2001, Occupations
304304 Code;
305305 (2) was permitted under Chapter 2002, Occupations
306306 Code;
307307 (3) was permitted under Chapter 2004, Occupations
308308 Code;
309309 (4) was permitted under Chapter 2005, Occupations
310310 Code;
311311 (5) consisted entirely of participation in the state
312312 lottery authorized by the State Lottery Act (Chapter 466,
313313 Government Code);
314314 (6) [(5)] was permitted under Subtitle A-1, Title 13,
315315 Occupations Code (Texas Racing Act); or
316316 (7) [(6)] consisted entirely of participation in a
317317 drawing for the opportunity to participate in a hunting, fishing,
318318 or other recreational event conducted by the Parks and Wildlife
319319 Department.
320320 SECTION 5. Section 47.09, Penal Code, is amended by
321321 amending Subsection (a) and adding Subsection (c) to read as
322322 follows:
323323 (a) It is a defense to prosecution under this chapter that
324324 the conduct:
325325 (1) was authorized under:
326326 (A) Chapter 2001, Occupations Code;
327327 (B) Chapter 2002, Occupations Code;
328328 (C) Chapter 2004, Occupations Code;
329329 (D) Chapter 2005, Occupations Code;
330330 (E) Subtitle A-1, Title 13, Occupations Code
331331 (Texas Racing Act); or
332332 (F) [(E)] Chapter 280, Finance Code;
333333 (2) consisted entirely of participation in the state
334334 lottery authorized by Chapter 466, Government Code; or
335335 (3) was a necessary incident to the operation of the
336336 state lottery and was directly or indirectly authorized by:
337337 (A) Chapter 466, Government Code;
338338 (B) the lottery division of the Texas Lottery
339339 Commission;
340340 (C) the Texas Lottery Commission; or
341341 (D) the director of the lottery division of the
342342 Texas Lottery Commission.
343343 (c) Subsection (a)(1)(D) applies to a person manufacturing,
344344 possessing, or operating a gambling device under a license or
345345 certificate issued under Chapter 2005, Occupations Code.
346346 SECTION 6. Chapter 47, Penal Code, is amended by adding
347347 Section 47.095 to read as follows:
348348 Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
349349 a defense to prosecution under this chapter that a person sells,
350350 leases, transports, possesses, stores, or manufactures a gambling
351351 device with the authorization of the Texas Lottery Commission under
352352 Chapter 2005, Occupations Code, for transportation in interstate or
353353 foreign commerce.
354354 SECTION 7. (a) As soon as practicable after the effective
355355 date of this Act, the Texas Lottery Commission shall adopt the rules
356356 necessary to implement casino gaming in accordance with Chapter
357357 2005, Occupations Code, as added by this Act.
358358 (b) The Texas Lottery Commission may adopt initial rules for
359359 purposes of implementing casino gaming in accordance with Chapter
360360 2005, Occupations Code, as added by this Act, that expire not later
361361 than May 1, 2022. Chapter 2001, Government Code, does not apply to
362362 the adoption of those rules. This subsection expires June 1, 2022.
363363 SECTION 8. This Act takes effect December 1, 2021, but only
364364 if the constitutional amendment authorizing the operation of casino
365365 gaming in certain state coastal areas to provide additional money
366366 for residual windstorm insurance coverage and catastrophic
367367 flooding assistance in those areas and authorizing the Kickapoo
368368 Traditional Tribe of Texas to conduct casino gaming by executing a
369369 gaming compact with this state is approved by the voters. If that
370370 amendment is not approved by the voters, this Act has no effect.