Texas 2023 - 88th Regular

Texas House Bill HB2843 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R21595 BEE-F
2	2	By: Kuempel H.B. No. 2843
3	3	Substitute the following for H.B. No. 2843:
4	4	By: Hernandez C.S.H.B. No. 2843
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authorization, licensing, and regulation of casino
10	10	gaming and sports wagering in this state, to the creation, powers,
11	11	and duties of the Texas Gaming Commission, to the support of the
12	12	horse racing industry and reform of horse racing and greyhound
13	13	racing, and to other provisions related to gambling; imposing and
14	14	authorizing administrative and civil penalties; imposing taxes;
15	15	imposing and authorizing fees; requiring occupational licenses;
16	16	creating criminal offenses.
17	17	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18	18	SECTION 1. Title 13, Occupations Code, is amended by adding
19	19	Subtitle E to read as follows:
20	20	SUBTITLE E. CASINO GAMING AND SPORTS WAGERING REGULATED BY TEXAS
21	21	GAMING COMMISSION
22	22	CHAPTER 2201. GENERAL PROVISIONS; TEXAS GAMING COMMISSION
23	23	SUBCHAPTER A. GENERAL PROVISIONS
24	24	Sec. 2201.001. DEFINITIONS. In this subtitle:
25	25	(1) "Active casino license" means a casino license
26	26	issued by the commission that has not:
27	27	(A) expired without being renewed;
28	28	(B) been revoked; or
29	29	(C) been permanently surrendered.
30	30	(2) "Affiliate" means a person who, directly or
31	31	indirectly through one or more intermediaries, controls, is
32	32	controlled by, or is under common control with another person. A
33	33	person is considered to control a company if the person
34	34	beneficially owns more than a five percent equity interest in the
35	35	company under the beneficial ownership rules adopted by the
36	36	commission.
37	37	(3) "Applicant" means a person who submits an
38	38	application for a casino license, an operator license, an
39	39	occupational license, a manufacturer license, a casino service
40	40	license, or a qualification to hold an equity interest in a casino
41	41	license holder.
42	42	(4) "Associated equipment" means any equipment used in
43	43	connection with casino gaming or sports wagering, including a
44	44	mechanical, electromechanical, or electronic contrivance,
45	45	component, or machine that would not otherwise be classified as a
46	46	gaming device. The term includes dice, playing cards, links
47	47	connecting progressive slot machines, equipment affecting the
48	48	proper reporting of gross casino gaming revenue or gross sports
49	49	wagering revenue, computerized systems of betting for sports
50	50	wagering, computerized systems or software for monitoring slot
51	51	machines, and devices for weighing or counting money.
52	52	(5) "Casino" means facilities within a destination
53	53	resort at which casino gaming or sports wagering is conducted for
54	54	profit, as authorized by Chapters 2202 and 2203.
55	55	(6) "Casino gaming," "casino game," or "gambling
56	56	game":
57	57	(A) means any game or similar activity that
58	58	involves placing a bet, as defined by Section 47.01, Penal Code, for
59	59	consideration;
60	60	(B) includes, when played for consideration
61	61	using money, property, checks, credit, or a representative of
62	62	value:
63	63	(i) a banking game, percentage game, or
64	64	game of chance played with cards, dice, or a mechanical,
65	65	electromechanical, electronic, or other device; and
66	66	(ii) a game or device approved by the
67	67	commission as a casino game; and
68	68	(C) does not include:
69	69	(i) placing, receiving, or otherwise
70	70	knowingly transmitting a bet by a means that requires the use of the
71	71	Internet, except for placing, receiving, or otherwise knowingly
72	72	transmitting a bet using the Internet in connection with the play of
73	73	games or devices that are offered by a casino license holder and
74	74	that are played on-site at a casino;
75	75	(ii) playing any mechanical,
76	76	electromechanical, electronic, or other device designed, made, and
77	77	adapted solely for bona fide amusement purposes if the device
78	78	rewards the player exclusively with noncash merchandise prizes,
79	79	toys, or novelties, or a representation of value redeemable for
80	80	those items, that have a wholesale value available from a single
81	81	play of the game or device of not more than 10 times the amount
82	82	charged to play the game or device once or $5, whichever is less;
83	83	(iii) bingo authorized under Chapter 2001;
84	84	(iv) charitable raffles authorized under
85	85	Chapter 2002;
86	86	(v) the state lottery conducted under
87	87	Chapter 466, Government Code;
88	88	(vi) sports wagering; or
89	89	(vii) the placing of a bet:
90	90	(a) that occurs in a private place, as
91	91	defined by Section 47.01, Penal Code;
92	92	(b) in connection with which no person
93	93	receives any economic benefit other than personal winnings; and
94	94	(c) that, except for the advantage of
95	95	skill or luck, involves risks of losing and chances of winning that
96	96	are the same for all participants.
97	97	(7) "Casino license" means a license issued under
98	98	Section 2202.051.
99	99	(8) "Casino service" means the provision of goods or
100	100	services, including security service and gaming schools, to a
101	101	person holding a casino license or operator license under this
102	102	subtitle, other than a service requiring a manufacturer license.
103	103	(9) "Casino service license" means a license issued
104	104	under Section 2202.152.
105	105	(10) "Commission" means the Texas Gaming Commission.
106	106	(11) "Company" means a corporation, partnership,
107	107	limited partnership, trust, association, joint stock company,
108	108	joint venture, limited liability company, or other form of business
109	109	organization. The term does not include a sole proprietorship or
110	110	natural person.
111	111	(12) "Credit instrument" means a writing that
112	112	evidences a casino gaming debt or sports wagering debt owed to a
113	113	casino license holder at the time the debt is created. The term
114	114	includes any writing accepted in consolidation, redemption, or
115	115	payment of a prior instrument.
116	116	(13) "Destination resort" means a mixed-use
117	117	development consisting of casino gaming facilities and a
118	118	combination of various tourism amenities and facilities, including
119	119	hotels, restaurants, meeting facilities, attractions,
120	120	entertainment facilities, and shopping centers.
121	121	(14) "Director" means a member of the board of
122	122	directors of a corporation or a person performing similar functions
123	123	for a company that is not a corporation.
124	124	(15) "Education" means:
125	125	(A) public education;
126	126	(B) higher education, including the creation of a
127	127	permanent fund for the benefit of higher education institutions not
128	128	included in the Permanent University Fund established by Section
129	129	11, Article VII, Texas Constitution; and
130	130	(C) adult education related to responsible
131	131	gaming.
132	132	(16) "Equity interest" means a proprietary interest,
133	133	right, or claim allowing the holder to vote on matters of
134	134	organizational governance or participate in the profits and
135	135	residual assets of a company, including common and preferred stock
136	136	in a corporation, a general or limited partnership interest in a
137	137	partnership, a similar interest in any other form of business
138	138	organization, and a warrant, right, or similar interest to
139	139	subscribe for a proprietary right or claim or that is convertible
140	140	into a proprietary right or claim, with or without the payment of
141	141	additional consideration.
142	142	(17) "Executive director" means the executive
143	143	director of the commission.
144	144	(18) "Gaming agreement" means an agreement authorized
145	145	under Chapter 2202 or 2203 between this state and a federally
146	146	recognized Indian tribe with Indian lands in this state under which
147	147	this state allows the tribe to conduct limited casino gaming
148	148	activities authorized under Chapter 2202 or 2203 or applicable
149	149	federal law.
150	150	(19) "Gaming device" means a mechanical,
151	151	electromechanical, or electronic contrivance, component, or
152	152	machine, including a slot machine, used in connection with casino
153	153	gaming or sports wagering that affects the result of a bet by
154	154	determining win or loss. The term includes a system for processing
155	155	information that can alter the normal criteria of random selection,
156	156	affect the operation of a game, or determine the outcome of a game.
157	157	(20) "Gaming employee":
158	158	(A) means an individual directly involved in the
159	159	operation or conduct of casino gaming or sports wagering in a casino
160	160	performing a service in a capacity that the commission finds
161	161	appropriate for occupational licensing under Section 2202.102 and
162	162	includes:
163	163	(i) a boxman, a cashier, change personnel,
164	164	counting room personnel, a dealer, a floor person, a host empowered
165	165	to extend credit or complimentary services, a keno runner, a keno
166	166	writer, a machine mechanic, or security personnel;
167	167	(ii) a shift or pit boss or a supervisor or
168	168	manager involved in casino gaming or sports wagering activities;
169	169	(iii) accounting or internal auditing
170	170	personnel directly involved in recordkeeping or the examination of
171	171	records generated from casino gaming or sports wagering activities;
172	172	and
173	173	(iv) a junketeer or other independent agent
174	174	whose compensation is based on the amount of money a patron wagers
175	175	or loses or who is paid per patron more than the price of admission;
176	176	and
177	177	(B) does not include bartenders, cocktail
178	178	waitresses, or other individuals engaged exclusively in preparing
179	179	or serving food or beverages or individuals providing nominal or
180	180	maintenance services.
181	181	(21) "Gaming-related business" means any business
182	182	engaged in the service or support of casino gaming or sports
183	183	wagering activities regulated under this subtitle or commission
184	184	rule.
185	185	(22) "Gross casino gaming revenue":
186	186	(A) means the total amount of the following, less
187	187	the sum of all money paid as losses to patrons playing a casino
188	188	game, the amounts paid to purchase from independent financial
189	189	institutions annuities to fund losses paid to patrons playing a
190	190	casino game, and the items deductible as losses under Section
191	191	2202.253:
192	192	(i) money received by a casino license
193	193	holder from players playing casino games;
194	194	(ii) money received by a casino license
195	195	holder in payment for credit extended by the casino license holder
196	196	to a patron for the purposes of casino gaming; and
197	197	(iii) compensation received by a casino
198	198	license holder for conducting any casino game in which the license
199	199	holder is not a party to a wager; and
200	200	(B) does not include:
201	201	(i) counterfeit money or tokens;
202	202	(ii) coins of other countries that are
203	203	received in slot machines or other gaming devices;
204	204	(iii) cash taken in fraudulent acts
205	205	perpetrated against a casino license holder for which the license
206	206	holder is not reimbursed; or
207	207	(iv) cash received as entry fees for
208	208	contests or tournaments in which the patrons compete for prizes.
209	209	(23) "Gross sports wagering revenue":
210	210	(A) means the total amount of the following, less
211	211	the sum of all money paid as losses to patrons engaged in sports
212	212	wagering and the amounts paid to purchase from independent
213	213	financial institutions annuities to fund losses paid to patrons
214	214	engaged in sports wagering:
215	215	(i) money received by a license holder from
216	216	patrons engaged in sports wagering;
217	217	(ii) money received by a license holder in
218	218	payment for credit extended by the license holder to a patron for
219	219	the purposes of sports wagering; and
220	220	(iii) compensation received by a license
221	221	holder for conducting any sports wagering in which the license
222	222	holder is not a party to a wager; and
223	223	(B) does not include:
224	224	(i) counterfeit money or tokens;
225	225	(ii) cash taken in fraudulent acts
226	226	perpetrated against a license holder for which the license holder
227	227	is not reimbursed; or
228	228	(iii) cash received as entry fees for
229	229	contests or tournaments in which the patrons compete for prizes.
230	230	(24) "Hearing examiner" means a person authorized by
231	231	the commission to conduct hearings.
232	232	(25) "Indian lands" means land:
233	233	(A) on which gaming is permitted under the Indian
234	234	Gaming Regulatory Act (Pub. L. No. 100-497); or
235	235	(B) that was held in trust by the United States on
236	236	January 1, 1998, for the benefit of the Indian tribe pursuant to the
237	237	Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
238	238	Texas Restoration Act (Pub. L. No. 100-89).
239	239	(26) "Institutional investor" means a person, other
240	240	than a state or federal government pension plan, that meets the
241	241	requirements of a qualified institutional buyer, as that term is
242	242	defined by 17 C.F.R. Section 230.144A and is:
243	243	(A) a bank as defined by Section 3(a)(6),
244	244	Securities Exchange Act of 1934 (15 U.S.C. Section 78c(a)(6));
245	245	(B) an insurance company as defined by Section
246	246	2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section
247	247	80a-2(a)(17));
248	248	(C) an investment company registered under
249	249	Section 8, Investment Company Act of 1940 (15 U.S.C. Section
250	250	80a-8);
251	251	(D) an investment adviser registered under
252	252	Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section
253	253	80b-3);
254	254	(E) a collective trust fund as described by
255	255	Section 3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section
256	256	80a-3(c)(11));
257	257	(F) an employee benefit plan or pension fund that
258	258	is subject to the Employee Retirement Income Security Act of 1974
259	259	(29 U.S.C. Section 1001 et seq.), excluding an employee benefit
260	260	plan or pension fund sponsored by a publicly traded corporation
261	261	registered with the commission;
262	262	(G) a state or federal government pension plan;
263	263	(H) a group composed entirely of persons
264	264	specified in Paragraphs (A)-(G); or
265	265	(I) any other person the commission determines
266	266	for reasons consistent with the policies expressed in Section
267	267	2202.001.
268	268	(27) "Internet" means the largest nonproprietary
269	269	nonprofit cooperative public computer network, popularly known as
270	270	the Internet.
271	271	(28) "Key executive" means a corporation's directors
272	272	and executive officers, a partnership's general partners, a trust's
273	273	trustee, a joint venture's managing venturers, and each person
274	274	possessing similar responsibilities and authorities in any other
275	275	form of business organization.
276	276	(29) "License holder" means a person who holds a
277	277	license issued by the commission.
278	278	(30) "Live sporting event" means:
279	279	(A) a football, basketball, baseball, hockey, or
280	280	similar game;
281	281	(B) a boxing or martial arts match; or
282	282	(C) any other event designated by the commission.
283	283	(31) "Manufacturer license" means a license issued
284	284	under Section 2202.151.
285	285	(32) "Metropolitan statistical area" means a
286	286	metropolitan statistical area designated by the United States
287	287	Office of Management and Budget.
288	288	(33) "Mixed-use development" means a developed area of
289	289	land.
290	290	(34) "Occupational license" means a license issued
291	291	under Section 2202.102.
292	292	(35) "Operator" means a person other than the casino
293	293	license holder who contractually agrees to provide operational and
294	294	managerial services on behalf of the casino license holder for the
295	295	operation of any activities occurring at the casino in return for a
296	296	payment based wholly or partly on profits or receipts from the
297	297	conduct of casino gaming or sports wagering.
298	298	(36) "Operator license" means a license issued under
299	299	Section 2202.101.
300	300	(37) "Pari-mutuel wagering" has the meaning assigned
301	301	by Section 2021.003.
302	302	(38) "Patron" or "player" means a person who
303	303	contributes any part of the consideration to play a casino game or
304	304	to engage in sports wagering. For purposes of this subdivision,
305	305	consideration does not include a separate fee payable in order to
306	306	wager.
307	307	(39) "Principal manager" means a person who, as
308	308	determined under commission rules, holds or exercises managerial,
309	309	supervisory, or policy-making authority over the management or
310	310	operation of a casino gaming or sports wagering activity or casino
311	311	service that in the commission's judgment warrants the occupational
312	312	licensing as a principal manager for the protection of the public
313	313	interest. The term includes a key executive of a company license
314	314	holder.
315	315	(40) "Public safety program" means a program for crime
316	316	prevention and law enforcement, including a program designed to
317	317	prevent and prosecute crimes involving human trafficking and money
318	318	laundering.
319	319	(41) "Slot machine" means a casino game in which a
320	320	player uses a mechanical, electromechanical, electronic, or other
321	321	device that, on insertion of a coin, token, or similar object or on
322	322	payment of consideration, is available to play or operate, the play
323	323	or operation of which, wholly or partly by chance, may entitle the
324	324	player operating the machine to receive or deliver to the player a
325	325	payment for winnings in the form of cash, premiums, merchandise,
326	326	tokens, or any other thing of value.
327	327	(42) "Sports wagering" means placing a wager on a live
328	328	sporting event as authorized by this subtitle.
329	329	(43) "Table game" means a casino game played in a
330	330	casino, including roulette, keno, twenty-one, blackjack, craps,
331	331	poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer,
332	332	baccarat, pai gow, and other similar casino games. The term does not
333	333	include a slot machine.
334	334	Sec. 2201.002. APPLICATION OF SUNSET ACT. (a) The Texas
335	335	Gaming Commission is subject to Chapter 325, Government Code (Texas
336	336	Sunset Act). Unless continued in existence as provided by that
337	337	chapter, the commission is abolished September 1, 2033.
338	338	(b) On the date the commission is abolished under Subsection
339	339	(a), this subtitle expires.
340	340	Sec. 2201.003. REFERENCES TO LICENSE INCLUDE CERTIFICATE OF
341	341	REGISTRATION, FINDING OF SUITABILITY, OR OTHER APPROVAL. A
342	342	reference in this subtitle to a license applies to a certificate of
343	343	registration, finding of suitability, or other affirmative
344	344	regulatory approval provided under this subtitle or commission
345	345	rule, unless otherwise expressly provided by this subtitle, another
346	346	state or federal law, or commission rule.
347	347	Sec. 2201.004. EXEMPTION FROM TAXATION. A political
348	348	subdivision of this state may not impose:
349	349	(1) a tax on the payment of a prize under Chapter 2202
350	350	or 2203;
351	351	(2) a tax, fee, or other assessment on consideration
352	352	paid to play a casino game or engage in sports wagering as
353	353	authorized by this subtitle;
354	354	(3) a tax on gross casino gaming revenue or gross
355	355	sports wagering revenue; or
356	356	(4) a tax or fee on attendance at or admission to a
357	357	casino authorized by this subtitle unless specifically authorized
358	358	by statute.
359	359	SUBCHAPTER B. TEXAS GAMING COMMISSION
360	360	Sec. 2201.051. COMMISSION; MEMBERSHIP. (a) The Texas
361	361	Gaming Commission is composed of five qualified members appointed
362	362	by the governor with the advice and consent of the senate.
363	363	(b) Appointments to the commission shall be made without
364	364	regard to race, color, disability, sex, religion, age, or national
365	365	origin.
366	366	Sec. 2201.052. QUALIFICATIONS OF COMMISSION MEMBERS. (a)
367	367	To be eligible for appointment to the commission, a person:
368	368	(1) must be a citizen of the United States;
369	369	(2) must submit a financial statement that contains
370	370	the information required by Chapter 572, Government Code;
371	371	(3) may not have a pecuniary interest in an entity
372	372	engaged in the conduct of casino gaming or sports wagering or the
373	373	provision of casino services that require a casino service license,
374	374	including having any security issued by that entity, or be related
375	375	within the second degree by affinity or the third degree by
376	376	consanguinity, as determined under Chapter 573, Government Code, to
377	377	an individual who has a pecuniary interest or holds a security as
378	378	described by this subdivision;
379	379	(4) may not be an applicant for or holder of a license
380	380	under a law administered by the commission or hold an equity
381	381	interest in a casino license holder requiring qualification under
382	382	Section 2202.060;
383	383	(5) may not be a member of the governing body of a
384	384	political subdivision of this state; and
385	385	(6) may not hold an elective office or be an officer or
386	386	official of a political party.
387	387	(b) Before assuming membership on the commission, a person
388	388	must affirm that the person meets the qualification of this
389	389	section, including that the person does not have a pecuniary
390	390	interest in any business or entity, and is not conducting business
391	391	with any business or entity, that holds a license for involvement in
392	392	casino gaming or sports wagering.
393	393	Sec. 2201.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)
394	394	In this section, "Texas trade association" means a cooperative and
395	395	voluntarily joined association of business or professional
396	396	competitors in this state designed to assist its members and its
397	397	industry or profession in dealing with mutual business or
398	398	professional problems and in promoting their common interest.
399	399	(b) A person may not be a commission member or an employee of
400	400	the commission employed in a "bona fide executive, administrative,
401	401	or professional capacity," as that phrase is used for purposes of
402	402	establishing an exemption to the overtime provisions of the federal
403	403	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
404	404	(1) the person is an officer, employee, manager, or
405	405	paid consultant of a Texas trade association in the field of gaming;
406	406	or
407	407	(2) the person's spouse is an officer, manager, or paid
408	408	consultant of a Texas trade association in the field of gaming.
409	409	(c) A person may not be a commission member or act as general
410	410	counsel to the commission if the person is required to register as a
411	411	lobbyist under Chapter 305, Government Code, because of the
412	412	person's activities for compensation on behalf of a profession
413	413	related to the operation of the commission.
414	414	Sec. 2201.054. TERMS; VACANCIES. (a) Commission members
415	415	serve staggered six-year terms, with the term or terms of one or two
416	416	members expiring February 1 of each odd-numbered year.
417	417	(b) The governor shall fill a vacancy in a position on the
418	418	commission for the remainder of the unexpired term.
419	419	Sec. 2201.055. PRESIDING OFFICER. The governor shall
420	420	designate a commission member as presiding officer of the
421	421	commission to serve in that capacity at the pleasure of the
422	422	governor.
423	423	Sec. 2201.056. MEETINGS; OFFICIAL RECORD. (a) The
424	424	commission shall meet not fewer than 12 times each year.
425	425	(b) The commission may meet at other times at the call of the
426	426	presiding officer or as provided by commission rule.
427	427	(c) The commission shall keep an official record of all
428	428	commission meetings and proceedings.
429	429	Sec. 2201.057. GROUNDS FOR REMOVAL. (a) It is a ground for
430	430	removal from the commission that a member:
431	431	(1) does not have at the time of taking office the
432	432	qualifications required by Section 2201.052;
433	433	(2) does not maintain during service on the commission
434	434	the qualifications required by Section 2201.052;
435	435	(3) is ineligible for membership under Section
436	436	2201.053;
437	437	(4) cannot, because of illness or disability,
438	438	discharge the member's duties for a substantial part of the member's
439	439	term; or
440	440	(5) is absent from more than half of the regularly
441	441	scheduled commission meetings that the member is eligible to attend
442	442	during a calendar year without an excuse approved by a majority vote
443	443	of the other commission members.
444	444	(b) The validity of an action of the commission is not
445	445	affected by the fact that it is taken when a ground for removal of a
446	446	commission member exists.
447	447	(c) If the executive director or a commission member has
448	448	knowledge that a potential ground for removal of a commission
449	449	member exists, the executive director or the commission member, as
450	450	applicable, shall notify the presiding officer of the commission of
451	451	the potential ground for removal. The presiding officer shall then
452	452	notify the governor and the attorney general that a potential
453	453	ground for removal exists. If the potential ground for removal
454	454	involves the presiding officer, the executive director or the
455	455	commission member, as applicable, shall notify the other commission
456	456	members, the governor, and the attorney general that a potential
457	457	ground for removal exists.
458	458	Sec. 2201.058. TRAINING. (a) A person who is appointed to
459	459	and qualifies for office as a commission member may not vote,
460	460	deliberate, or be counted as a member in attendance at a meeting of
461	461	the commission until the person completes a training program that
462	462	complies with this section.
463	463	(b) The training program must provide the person with
464	464	information regarding:
465	465	(1) this subtitle and other laws related to casino
466	466	gaming or sports wagering or gambling regulated by the commission;
467	467	(2) the commission's programs, functions, rules, and
468	468	budget;
469	469	(3) the results of the most recent formal audit of the
470	470	commission;
471	471	(4) the requirements of laws relating to open
472	472	meetings, public information, administrative procedure, and
473	473	conflict of interest; and
474	474	(5) any applicable ethics policies adopted by the
475	475	commission or the Texas Ethics Commission.
476	476	(c) A person appointed to the commission is entitled to
477	477	reimbursement, as provided by the General Appropriations Act, for
478	478	travel expenses incurred in attending the training program
479	479	regardless of whether the attendance at the program occurs before
480	480	or after the person qualifies for office.
481	481	Sec. 2201.059. QUALIFICATIONS AND STANDARDS OF CONDUCT
482	482	INFORMATION. The executive director or the executive director's
483	483	designee shall provide to commission members, as often as
484	484	necessary, information regarding their:
485	485	(1) qualifications for office under this chapter; and
486	486	(2) responsibilities under applicable laws relating
487	487	to standards of conduct for state officers.
488	488	Sec. 2201.060. BOND. (a) Before assuming the duties of
489	489	office, a commission member must execute a bond in the amount of
490	490	$25,000 payable to the state and conditioned on the member's
491	491	faithful performance of the member's duties of office.
492	492	(b) The bond must be approved by the governor.
493	493	(c) The cost of the bond shall be paid by the commission.
494	494	Sec. 2201.061. PROHIBITION OF CERTAIN ACTIVITIES. (a) A
495	495	commission member may not:
496	496	(1) use the member's official authority to affect the
497	497	result of an election or nomination for public office; or
498	498	(2) directly or indirectly coerce, attempt to coerce,
499	499	command, or advise a person to pay, lend, or contribute anything of
500	500	value to another person for political purposes.
501	501	(b) A commission member or the parent, spouse, or child of a
502	502	commission member may not solicit or accept employment or any
503	503	financial interest or benefit from a license holder under a law
504	504	administered by the commission or from an applicant for a license
505	505	before the second anniversary of the date the commission member's
506	506	service on the commission ends.
507	507	Sec. 2201.062. APPLICATION OF FINANCIAL DISCLOSURE LAW.
508	508	For purposes of Chapter 572, Government Code, a commission member
509	509	and the executive director are appointed officers of a major state
510	510	agency.
511	511	Sec. 2201.063. PER DIEM; EXPENSES; SALARY. (a) A
512	512	commission member is entitled to:
513	513	(1) a per diem in an amount prescribed by
514	514	appropriation for each day spent in performing the duties of the
515	515	member;
516	516	(2) reimbursement for actual and necessary expenses
517	517	incurred in performing those duties; and
518	518	(3) an annual salary in an amount prescribed by
519	519	appropriation.
520	520	(b) Reimbursement for expenses under this section is
521	521	subject to any applicable limitation in the General Appropriations
522	522	Act.
523	523	Sec. 2201.064. EXECUTIVE DIRECTOR. (a) The commission
524	524	shall appoint an executive director, who serves at the pleasure of
525	525	the commission.
526	526	(b) A person is not eligible for appointment as executive
527	527	director if the person:
528	528	(1) holds an elective office or is an officer or
529	529	official of a political party; or
530	530	(2) is required to register as a lobbyist under
531	531	Chapter 305, Government Code, because of the person's activities
532	532	for compensation on behalf of a profession related to the operation
533	533	of the commission.
534	534	(c) The executive director must have five or more years of
535	535	responsible administrative experience in public or business
536	536	administration or possess broad management skills.
537	537	(d) The executive director may not pursue any other business
538	538	or occupation or hold any other office for profit.
539	539	(e) The executive director must meet all eligibility
540	540	requirements relating to commission members.
541	541	(f) The executive director is entitled to an annual salary
542	542	and other compensation specified by the commission.
543	543	(g) The executive director or the parent, spouse, or child
544	544	of the executive director may not, before the second anniversary of
545	545	the date the executive director's service to the commission ends,
546	546	acquire a direct or indirect interest in or be employed by an entity
547	547	licensed or registered by the commission in connection with the
548	548	conduct of casino gaming or sports wagering or the provision of
549	549	casino services in this state.
550	550	Sec. 2201.065. OFFICES. The commission shall maintain its
551	551	primary office in Travis County and may maintain other offices the
552	552	commission determines are necessary.
553	553	Sec. 2201.066. AUTHORITY TO SUE OR BE SUED; VENUE FOR CIVIL
554	554	SUITS. (a) Subject to Section 2202.360, the commission may sue and
555	555	be sued.
556	556	(b) Service of process in a suit against the commission may
557	557	be secured by serving the executive director.
558	558	(c) A suit against the commission must be brought in Travis
559	559	County.
560	560	Sec. 2201.067. AUDIT. The transactions of the commission
561	561	are subject to audit by the state auditor under Chapter 321,
562	562	Government Code.
563	563	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION; GAMBLING
564	564	ADMINISTRATION
565	565	Sec. 2201.101. GENERAL POWERS AND DUTIES. (a) The
566	566	commission has broad authority and shall exercise strict control
567	567	and close supervision over all activities authorized and conducted
568	568	in this state under a law administered by the commission.
569	569	(b) The commission shall ensure that all casino games, other
570	570	casino gaming activities, sports wagering, and other gambling
571	571	subject to the oversight or regulatory authority of the commission
572	572	are conducted fairly and in compliance with the law.
573	573	(c) The commission also has the powers and duties granted
574	574	under Chapters 2202 and 2203.
575	575	(d) All aspects of this subtitle and other laws administered
576	576	by the commission, including those relating to licensing,
577	577	qualification, execution, and enforcement, shall be administered
578	578	by the executive director and the commission for the protection of
579	579	the public and in the public interest.
580	580	(e) The commission and the executive director have full
581	581	power and authority to hold hearings and, in connection with the
582	582	hearings, to issue subpoenas, to compel the attendance of witnesses
583	583	at any place in this state, to administer oaths, and to require
584	584	testimony under oath. Any process or notice relating to a hearing
585	585	may be served in the manner provided for service of process and
586	586	notices in civil actions. The commission and the executive
587	587	director may pay transportation and other expenses of witnesses as
588	588	they consider reasonable.
589	589	(f) The executive director and the executive director's
590	590	authorized employees may:
591	591	(1) inspect and examine a premises where casino
592	592	gaming, sports wagering, or other gambling regulated by the
593	593	commission is conducted or equipment or supplies, including an
594	594	electronic or other gaming device, or associated equipment is
595	595	manufactured, assembled, produced, programmed, sold, leased,
596	596	marketed, distributed, repaired, or modified for use in gaming;
597	597	(2) for good cause, seize and remove from a premises
598	598	and impound equipment or supplies for the purpose of examination
599	599	and inspection; and
600	600	(3) demand access to, inspect, examine, photocopy, or
601	601	audit papers, books, and records of applicants and license holders,
602	602	on their premises or elsewhere as practicable, in the presence of
603	603	the applicant or license holder or the applicant's or license
604	604	holder's agent, that report the gross income produced by a
605	605	gaming-related business, verify the gross income, or affect other
606	606	matters on the enforcement of this subtitle or other law
607	607	administered by the commission.
608	608	(g) For the purpose of conducting audits after the cessation
609	609	of the conduct of casino gaming or sports wagering by a license
610	610	holder, a former license holder shall furnish, on demand of the
611	611	executive director or the executive director's authorized
612	612	employees, books, papers, and records as necessary to conduct the
613	613	audits. The former license holder shall maintain all books,
614	614	papers, and records necessary for audits until at least the third
615	615	anniversary of the date the license is surrendered or revoked and
616	616	is responsible for the costs incurred by the commission in the
617	617	conduct of an audit under this section. If the former license
618	618	holder seeks judicial review of a deficiency determination or files
619	619	a petition for a redetermination, the former license holder must
620	620	maintain all books, papers, and records until a final order is
621	621	entered on the determination.
622	622	(h) The commission shall contract with at least one
623	623	independent testing laboratory to scientifically test and
624	624	technically evaluate casino games, gaming devices, and associated
625	625	equipment for compliance with this subtitle. The independent
626	626	testing laboratory must have a national or international reputation
627	627	of being demonstrably competent and must be qualified to
628	628	scientifically test and evaluate all components of casino games,
629	629	gaming devices, and associated equipment for compliance with this
630	630	subtitle and to perform the functions assigned to it under this
631	631	subtitle. An independent testing laboratory may not be owned or
632	632	controlled by a person licensed to conduct casino games or sports
633	633	wagering or to manufacture gaming devices or associated equipment.
634	634	The use of an independent testing laboratory for purposes related
635	635	to the conduct of casino gaming or sports wagering under this
636	636	subtitle must be made from a list of at least two laboratories
637	637	approved by the commission.
638	638	Sec. 2201.102. RULEMAKING AUTHORITY. (a) The commission
639	639	shall adopt rules the commission considers necessary or desirable
640	640	for the public interest in carrying out the policy and provisions of
641	641	this subtitle and the other laws administered by the commission.
642	642	(b) The rules must prescribe:
643	643	(1) the method and form of applying for a license under
644	644	this subtitle and for the commission's consideration of an
645	645	application;
646	646	(2) any notice required to apply for a license under
647	647	this subtitle;
648	648	(3) the information an applicant or license holder
649	649	must provide under Chapter 2202 concerning antecedents, habits,
650	650	character, associates, criminal history record information,
651	651	business activities, and financial affairs;
652	652	(4) the criteria the commission will use in awarding,
653	653	revoking, and suspending licenses under Chapter 2202;
654	654	(5) the information a license holder must provide
655	655	under Chapter 2202 relating to the holder's employees;
656	656	(6) the manner of and procedures for hearings
657	657	conducted by the commission or a hearing examiner of the
658	658	commission;
659	659	(7) the payment of fees or costs by an applicant or
660	660	license holder under Chapter 2202;
661	661	(8) the procedures for issuance of temporary licenses
662	662	and temporary qualifications to hold equity interests in a casino
663	663	license holder under Chapter 2202;
664	664	(9) the manner and method of collecting and paying
665	665	fees and of issuing licenses;
666	666	(10) the conditions under which the nonpayment of a
667	667	gambling debt by a license holder constitutes grounds for
668	668	disciplinary action;
669	669	(11) the manner of approval of casino games, slot
670	670	machines, gaming devices, and associated equipment;
671	671	(12) access to confidential information obtained
672	672	under this chapter, Chapter 2202, Chapter 2203, or other law and the
673	673	means to ensure that the confidentiality of the information is
674	674	maintained and protected;
675	675	(13) financial reporting and internal control
676	676	requirements for license holders;
677	677	(14) the manner of computing and reporting money
678	678	awarded to players, compensation from casino gaming and sports
679	679	wagering, and gross casino gaming revenue and gross sports wagering
680	680	revenue under Chapter 2202;
681	681	(15) the requirements for the annual audit of the
682	682	financial statements of a license holder;
683	683	(16) the requirements for periodic financial reports
684	684	from each license holder consistent with standards and intervals
685	685	prescribed by the commission;
686	686	(17) the procedures to be followed by a license holder
687	687	for excluding a person from a casino;
688	688	(18) the procedures and criteria for requiring a
689	689	finding of suitability under Section 2202.006; and
690	690	(19) the procedures and criteria for exempting a group
691	691	or class of persons from the registration or qualification
692	692	requirements of Chapter 2202.
693	693	Sec. 2201.103. AUTHORITY OF EXECUTIVE DIRECTOR. (a) With
694	694	commission approval, the executive director may create executive
695	695	positions as the executive director considers necessary to
696	696	implement this chapter, Chapter 2202, Chapter 2203, and any other
697	697	law administered by the commission.
698	698	(b) The executive director shall employ directors in the
699	699	areas of audit, investigation, and enforcement. The audit director
700	700	must be a certified public accountant, have five or more years of
701	701	progressively responsible experience in general accounting, and
702	702	have a comprehensive knowledge of the principles and practices of
703	703	corporate finance or must possess qualifications of an expert in
704	704	the field of corporate finance and auditing, general finance,
705	705	gaming, and economics. Other directors must possess five or more
706	706	years of training and experience in the fields of investigation,
707	707	law enforcement, law, or gaming.
708	708	(c) The executive director may investigate, for the purpose
709	709	of prosecution, a suspected criminal violation of this subtitle or
710	710	other laws related to casino gaming, sports wagering, or gambling
711	711	regulated by the commission. For the purpose of the administration
712	712	and enforcement of this subtitle or another related law, the
713	713	executive director and employees designated as enforcement
714	714	officers by the executive director may be commissioned as peace
715	715	officers.
716	716	(d) The executive director, to further the objectives and
717	717	purposes of this subtitle or other laws related to casino gaming,
718	718	sports wagering, or gambling regulated by the commission, may:
719	719	(1) direct and supervise all administrative actions of
720	720	the commission;
721	721	(2) bring legal action in the name and on behalf of the
722	722	commission;
723	723	(3) make, execute, and effect an agreement or contract
724	724	authorized by the commission;
725	725	(4) employ the services of persons considered
726	726	necessary for consultation or investigation and set the salaries of
727	727	or contract for the services of legal, professional, technical, and
728	728	operational personnel and consultants, except that outside legal
729	729	assistance may be retained only with the approval of the
730	730	commission;
731	731	(5) acquire furnishings, equipment, supplies,
732	732	stationery, books, and all other goods the executive director
733	733	considers necessary or desirable in carrying out the executive
734	734	director's functions; and
735	735	(6) perform other duties the executive director may
736	736	consider necessary to effect the purposes of this subtitle or other
737	737	laws related to casino gaming, sports wagering, or gambling
738	738	regulated by the commission.
739	739	(e) Except as otherwise provided in this subtitle, the costs
740	740	of administration incurred by the executive director shall be paid
741	741	in the same manner as other claims against the state are paid.
742	742	Sec. 2201.104. OFFICE OF HEARING EXAMINERS. (a) The
743	743	commission shall create an office of hearing examiners to assist
744	744	the commission in carrying out its powers and duties.
745	745	(b) The office of hearing examiners shall:
746	746	(1) hold hearings under the authority of the
747	747	commission on matters relating to the commission's administration
748	748	of this subtitle and other laws related to casino gaming, sports
749	749	wagering, or gambling regulated by the commission as the commission
750	750	orders; and
751	751	(2) report after a hearing in the manner prescribed by
752	752	the commission.
753	753	(c) The commission shall refer any contested case arising
754	754	under this subtitle or other laws related to casino gaming, sports
755	755	wagering, or gambling regulated by the commission to the office of
756	756	hearing examiners or the State Office of Administrative Hearings.
757	757	(d) The office of hearing examiners is independent of the
758	758	executive director and is under the exclusive control of the
759	759	commission.
760	760	(e) The office of hearing examiners is under the direction
761	761	of a chief hearing examiner appointed by the commission.
762	762	(f) The commission may authorize the chief hearing examiner
763	763	to delegate to one or more hearing examiners the authority to hold
764	764	any hearing called by the chief hearing examiner.
765	765	(g) The chief hearing examiner and each assistant hearing
766	766	examiner employed by the office of hearing examiners must be an
767	767	attorney licensed to practice law in this state.
768	768	(h) The chief hearing examiner and each assistant hearing
769	769	examiner may administer oaths, receive evidence, and issue
770	770	subpoenas to compel the attendance of witnesses and the production
771	771	of papers and documents in all matters delegated to the office of
772	772	hearing examiners by the commission.
773	773	(i) The chief hearing examiner and each assistant hearing
774	774	examiner is entitled to an annual salary and other compensation
775	775	specified by the commission.
776	776	(j) The office of hearing examiners may contract for
777	777	additional services it considers necessary to carry out its powers.
778	778	Sec. 2201.105. JUDICIAL REVIEW IN CONTESTED CASES. A final
779	779	decision of the commission in a contested case is subject to
780	780	judicial review under Chapter 2001, Government Code. Judicial
781	781	review is under the substantial evidence rule, as provided by that
782	782	chapter.
783	783	Sec. 2201.106. RECORDS; CONFIDENTIAL INFORMATION. (a) The
784	784	executive director shall maintain a file of all applications for
785	785	licenses under this subtitle, together with a record of all action
786	786	taken with respect to the applications.
787	787	(b) The commission and the executive director may maintain
788	788	other records considered desirable.
789	789	(c) The information made confidential by this section may be
790	790	disclosed, wholly or partly, only:
791	791	(1) in the course of the necessary administration of
792	792	this subtitle or in the enforcement of other laws related to casino
793	793	gaming, sports wagering, or other gambling regulated by the
794	794	commission;
795	795	(2) under Section 2202.353;
796	796	(3) on the order of a court; or
797	797	(4) as authorized under commission rule, to an
798	798	authorized agent of any agency of the United States, another state,
799	799	or a political subdivision of this state.
800	800	(d) Notice of the content of any information furnished or
801	801	released under Subsection (c) may be given to any affected
802	802	applicant or license holder as prescribed by commission rule.
803	803	(e) The following information is confidential and may not be
804	804	disclosed:
805	805	(1) information requested by the commission or the
806	806	executive director under this subtitle or another applicable law
807	807	that may otherwise be obtained relating to the finances, earnings,
808	808	or revenue of an applicant or license holder;
809	809	(2) information pertaining to an applicant's criminal
810	810	history record information, antecedents, and background that has
811	811	been furnished to or obtained by the commission or the executive
812	812	director from any source;
813	813	(3) information provided to the commission or the
814	814	executive director or a commission employee by a governmental
815	815	agency or an informer or on the assurance that the information will
816	816	be held in confidence and treated as confidential;
817	817	(4) information obtained by the executive director or
818	818	the commission from a license holder, including a casino service
819	819	license holder, relating to the manufacturing, modification, or
820	820	repair of gaming devices;
821	821	(5) security plans and procedures of the commission
822	822	designed to ensure the integrity and security of the regulation and
823	823	operation of casino gaming, sports wagering, or other gambling
824	824	regulated by the commission;
825	825	(6) the street address and telephone number of a
826	826	patron unless the patron has consented to the release of the
827	827	information;
828	828	(7) information relating to all system operations of
829	829	casino gaming and sports wagering, including security related to
830	830	casino gaming or sports wagering, and commission plans and
831	831	procedures intended to ensure the integrity and security of the
832	832	operation of casino gaming, sports wagering, and other gambling
833	833	regulated by the commission; and
834	834	(8) reports and related information filed under
835	835	Section 2202.010.
836	836	Sec. 2201.107. REPRESENTATION BY ATTORNEY GENERAL. (a)
837	837	The attorney general shall represent the commission and the
838	838	executive director in any proceeding to which the commission or the
839	839	executive director is a party under this subtitle or another law
840	840	administered by the commission or in any suit filed against the
841	841	commission or executive director.
842	842	(b) The office of the attorney general on request shall
843	843	advise the commission and the executive director in all other
844	844	matters, including representing the commission when the commission
845	845	acts in its official capacity.
846	846	Sec. 2201.108. RULES RESTRICTING ADVERTISING OR
847	847	COMPETITIVE BIDDING. (a) The commission may not adopt rules
848	848	restricting advertising or competitive bidding by a person
849	849	regulated by the commission except to prohibit false, misleading,
850	850	or deceptive practices by that person.
851	851	(b) The commission may not include in its rules to prohibit
852	852	false, misleading, or deceptive practices by a person regulated by
853	853	the commission a rule that:
854	854	(1) restricts the use of any advertising medium;
855	855	(2) restricts the person's personal appearance or the
856	856	use of the person's voice in an advertisement;
857	857	(3) relates to the size or duration of an
858	858	advertisement by the person; or
859	859	(4) restricts the use of a trade name in advertising by
860	860	the person.
861	861	Sec. 2201.109. RULES ON CONSEQUENCES OF CRIMINAL
862	862	CONVICTION. (a) The commission shall adopt rules necessary to
863	863	comply with Chapter 53.
864	864	(b) In adopting rules under this section, the commission
865	865	shall list the specific offenses for which a conviction would
866	866	constitute grounds for the commission to take action under Section
867	867	53.021.
868	868	Sec. 2201.110. SUBPOENA. (a) The commission may request
869	869	and, if necessary, compel by subpoena:
870	870	(1) the attendance of a witness for examination under
871	871	oath; and
872	872	(2) the production for inspection and copying of
873	873	records and other evidence relevant to the investigation of an
874	874	alleged violation of this subtitle or other laws related to casino
875	875	gaming, sports wagering, or other gambling regulated by the
876	876	commission.
877	877	(b) If a person fails to comply with a subpoena issued under
878	878	this section, the commission, acting through the attorney general,
879	879	may file suit to enforce the subpoena in a district court in Travis
880	880	County or in the county in which a hearing conducted by the
881	881	commission may be held.
882	882	(c) The court shall order a person to comply with the
883	883	subpoena if the court determines that good cause exists for issuing
884	884	the subpoena.
885	885	Sec. 2201.111. DIVISION OF RESPONSIBILITIES. The
886	886	commission shall develop and implement policies that clearly
887	887	separate the policy-making responsibilities of the commission and
888	888	the management responsibilities of the executive director and the
889	889	staff of the commission.
890	890	Sec. 2201.112. USE OF TECHNOLOGY. The commission shall
891	891	implement a policy requiring the commission to use appropriate
892	892	technological solutions to improve the commission's ability to
893	893	perform its functions. The policy must ensure that the public is
894	894	able to interact with the commission through the commission's
895	895	Internet website.
896	896	Sec. 2201.113. NEGOTIATED RULEMAKING AND ALTERNATIVE
897	897	DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
898	898	implement a policy to encourage the use of:
899	899	(1) negotiated rulemaking procedures under Chapter
900	900	2008, Government Code, for the adoption of commission rules; and
901	901	(2) appropriate alternative dispute resolution
902	902	procedures under Chapter 2009, Government Code, to assist in the
903	903	resolution of internal and external disputes under the commission's
904	904	jurisdiction.
905	905	(b) The commission's procedures relating to alternative
906	906	dispute resolution must conform, to the extent possible, to any
907	907	model guidelines issued by the State Office of Administrative
908	908	Hearings for the use of alternative dispute resolution by state
909	909	agencies.
910	910	(c) The commission shall designate an appropriately
911	911	qualified person to:
912	912	(1) coordinate the implementation of the policy
913	913	adopted under Subsection (a);
914	914	(2) serve as a resource for any training needed to
915	915	implement the procedures for negotiated rulemaking or alternative
916	916	dispute resolution; and
917	917	(3) collect data concerning the effectiveness of those
918	918	procedures, as implemented by the commission.
919	919	Sec. 2201.114. COMMITTEES. The commission may appoint
920	920	committees that it considers necessary to carry out its duties.
921	921	Sec. 2201.115. CONTRACT AUTHORITY. (a) The commission and
922	922	executive director have broad authority and shall exercise strict
923	923	control and close supervision over casino gaming and sports
924	924	wagering conducted in this state to promote and ensure integrity,
925	925	security, honesty, and fairness in the operation and administration
926	926	of casino gaming and sports wagering under this subtitle.
927	927	(b) The executive director may contract with a third party
928	928	to perform a function, activity, or service in connection with the
929	929	operation of casino gaming or sports wagering under this subtitle,
930	930	other than investigative services, as prescribed by the executive
931	931	director. A contract relating to the operation of casino gaming or
932	932	sports wagering must be consistent with this subtitle.
933	933	(c) The executive director may award a contract for
934	934	supplies, equipment, or services, including a contract under
935	935	Subsection (b), pending the completion of any investigation and
936	936	license required by this subtitle. A contract awarded under this
937	937	subsection must include a provision permitting the executive
938	938	director to terminate the contract without penalty if the
939	939	investigation reveals that the person to whom the contract is
940	940	awarded does not satisfy the applicable requirements for a license
941	941	under this subtitle.
942	942	(d) In the acquisition or provision of facilities,
943	943	supplies, equipment, materials, or services related to the
944	944	implementation of casino gaming or sports wagering under this
945	945	subtitle, the commission must comply with procurement procedures
946	946	prescribed under Subtitle D, Title 10, Government Code.
947	947	Sec. 2201.116. INVESTIGATIONS AND ENFORCEMENT. (a) A
948	948	violation or alleged violation of this subtitle or of the penal laws
949	949	of this state by the commission, its employees, or a person
950	950	regulated under this subtitle may be investigated by the attorney
951	951	general, the district attorney for Travis County, or a district
952	952	attorney, criminal district attorney, or county attorney for the
953	953	county in which the violation or alleged violation occurred.
954	954	(b) The commission may investigate violations of this
955	955	subtitle, rules adopted under this subtitle, or other laws related
956	956	to casino gaming, sports wagering, or other gambling regulated by
957	957	the commission and may file a complaint requesting that an
958	958	investigation be conducted in accordance with Subsection (a).
959	959	Sec. 2201.117. SECURITY. (a) The executive director shall
960	960	maintain a department of security in the commission. The executive
961	961	director shall appoint a deputy to administer the department. The
962	962	deputy must be qualified by training and experience in law
963	963	enforcement or security to supervise, direct, and administer the
964	964	activities of the department.
965	965	(b) The executive director may employ security officers or
966	966	investigators as the executive director considers necessary and may
967	967	commission investigators or security officers as peace officers.
968	968	The deputy and all investigators employed by the department of
969	969	security and commissioned as peace officers must meet the
970	970	requirements under Chapter 1701 for employment and commission as
971	971	peace officers.
972	972	(c) A security officer or investigator employed by the
973	973	department of security and commissioned as a peace officer or a
974	974	peace officer who is working in conjunction with the commission or
975	975	the Department of Public Safety in the enforcement of this subtitle
976	976	may:
977	977	(1) without a search warrant, search and seize a
978	978	gaming device or associated equipment that is located on premises
979	979	for which a person holds a license issued under this subtitle; or
980	980	(2) seize a gaming device or associated equipment that
981	981	is being used or is in the possession of any person in violation of
982	982	this subtitle or other laws related to casino gaming, sports
983	983	wagering, or other gambling regulated by the commission.
984	984	(d) The Department of Public Safety or any other state or
985	985	local law enforcement agency, at the commission's request and in
986	986	accordance with an interagency agreement, shall perform a full
987	987	criminal history record information and background investigation
988	988	of a prospective deputy or investigator of the department of
989	989	security of the commission. The commission shall reimburse the
990	990	agency for the actual costs of an investigation.
991	991	(e) At least once every two years, the executive director
992	992	shall employ an independent firm that is experienced in security,
993	993	including computer security and systems security, to conduct a
994	994	comprehensive study of all aspects of casino gaming and sports
995	995	wagering security.
996	996	Sec. 2201.118. PROHIBITED GAMBLING GAMES. (a) Except as
997	997	specifically provided by this subtitle or other law, the executive
998	998	director or any other person may not establish or operate a gambling
999	999	game in which the winner is chosen on the basis of the outcome of a
1000	1000	live sporting event.
1001	1001	(b) Except as provided by Chapter 2001 or this subtitle, the
1002	1002	operation of any game using a slot machine or other gaming device is
1003	1003	prohibited.
1004	1004	Sec. 2201.119. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a)
1005	1005	Except as otherwise provided by this subtitle, all files, records,
1006	1006	information, compilations, documents, photographs, reports,
1007	1007	summaries, and reviews of information and related matters
1008	1008	collected, retained, or compiled by the Department of Public Safety
1009	1009	in the discharge of its duties under this subtitle are confidential
1010	1010	and are not subject to public disclosure.
1011	1011	(b) An investigation report or other document submitted by
1012	1012	the Department of Public Safety to the commission becomes part of
1013	1013	the investigative files of the commission.
1014	1014	(c) Information that is made available to the public is not
1015	1015	privileged or confidential under this section and is subject to
1016	1016	public disclosure.
1017	1017	Sec. 2201.120. CRIMINAL BACKGROUND INVESTIGATION FOR
1018	1018	CASINO GAMING OR SPORTS WAGERING. (a) The commission is entitled
1019	1019	to conduct an investigation of and is entitled to obtain criminal
1020	1020	history record information maintained by the Department of Public
1021	1021	Safety, the Federal Bureau of Investigation Identification
1022	1022	Division, or another law enforcement agency to assist in the
1023	1023	criminal background investigation of any person directly involved
1024	1024	with casino gaming, sports wagering, or other gambling regulated
1025	1025	under this subtitle.
1026	1026	(b) Except as otherwise provided by this subtitle, a
1027	1027	criminal background investigation is governed by commission rules
1028	1028	adopted under this chapter.
1029	1029	(c) The Department of Public Safety or a state or local law
1030	1030	enforcement agency in this state, in accordance with an interagency
1031	1031	agreement with the commission, shall provide any assistance
1032	1032	requested by the commission in the administration and enforcement
1033	1033	of this subtitle, including conducting criminal background
1034	1034	investigations of a person seeking a license required under this
1035	1035	subtitle or of any person required to be named in an application for
1036	1036	a license under this subtitle.
1037	1037	(d) This section does not limit the commission's right to
1038	1038	obtain criminal history record information from any other local,
1039	1039	state, or federal agency. The commission may enter into a
1040	1040	confidentiality agreement with the agency as necessary and proper.
1041	1041	(e) Except as otherwise provided by this subtitle or other
1042	1042	law, criminal history record information obtained by the commission
1043	1043	under this section may be disclosed only:
1044	1044	(1) to another law enforcement agency to assist in or
1045	1045	further an investigation related to the commission's operation and
1046	1046	oversight of gaming; or
1047	1047	(2) under a court order.
1048	1048	Sec. 2201.121. PLAYER AGREEMENT TO ABIDE BY RULES AND
1049	1049	INSTRUCTIONS. By participating as a player, a player agrees to
1050	1050	abide by and be bound by the commission's and the license holder's
1051	1051	rules and instructions, including the rules or instructions
1052	1052	applicable to the particular casino game or sports wagering
1053	1053	involved. The player also agrees that the determination of whether
1054	1054	the player is a valid winner is subject to:
1055	1055	(1) the commission's and the license holder's rules,
1056	1056	instructions, and claims procedures, including those developed for
1057	1057	the particular casino game or sports wagering involved;
1058	1058	(2) any validation tests established by the commission
1059	1059	for the particular casino game or sports wagering involved; and
1060	1060	(3) the limitations and other provisions prescribed by
1061	1061	this subtitle.
1062	1062	Sec. 2201.122. VENUE FOR CRIMINAL PROCEEDING. Venue is
1063	1063	proper in Travis County or any county in which venue is proper under
1064	1064	Chapter 13, Code of Criminal Procedure, for:
1065	1065	(1) an offense under this subtitle;
1066	1066	(2) an offense under the Penal Code, if the accused:
1067	1067	(A) is regulated under this subtitle; and
1068	1068	(B) is alleged to have committed the offense
1069	1069	while engaged in casino gaming or sports wagering activities; or
1070	1070	(3) an offense under Title 7 or 11, Penal Code, that
1071	1071	involves property consisting of or including a gaming device or
1072	1072	casino game prize.
1073	1073	SUBCHAPTER D. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES
1074	1074	Sec. 2201.151. PUBLIC INTEREST INFORMATION. (a) The
1075	1075	commission shall prepare and disseminate consumer information that
1076	1076	describes the regulatory functions of the commission and the
1077	1077	procedures by which consumer complaints are filed with and resolved
1078	1078	by the commission.
1079	1079	(b) The commission shall make the information available to
1080	1080	the public and appropriate state agencies.
1081	1081	Sec. 2201.152. COMPLAINTS. (a) The commission by rule
1082	1082	shall establish methods by which consumers and service recipients
1083	1083	are notified of the name, mailing address, telephone number, and
1084	1084	other contact information of the commission for the purpose of
1085	1085	directing complaints to the commission. The commission may provide
1086	1086	for that notice:
1087	1087	(1) on each form, application, or written contract for
1088	1088	services of a person regulated under a law administered by the
1089	1089	commission;
1090	1090	(2) on a sign prominently displayed in the place of
1091	1091	business of each person regulated under a law administered by the
1092	1092	commission; or
1093	1093	(3) in a bill for service provided by a person
1094	1094	regulated under this subtitle.
1095	1095	(b) The commission shall list with its regular telephone
1096	1096	number any toll-free telephone number established under other state
1097	1097	law that may be called to present a complaint about a person
1098	1098	regulated under this subtitle.
1099	1099	Sec. 2201.153. RECORDS OF COMPLAINTS. (a) The commission
1100	1100	shall maintain a system to promptly and efficiently act on
1101	1101	complaints filed with the commission. The commission shall
1102	1102	maintain:
1103	1103	(1) information about the parties to the complaint and
1104	1104	the subject matter of the complaint;
1105	1105	(2) a summary of the results of the review or
1106	1106	investigation of the complaint; and
1107	1107	(3) information about the disposition of the
1108	1108	complaint.
1109	1109	(b) The commission shall make information available
1110	1110	describing its procedures for complaint investigation and
1111	1111	resolution.
1112	1112	(c) The commission shall periodically notify the parties of
1113	1113	the status of the complaint until final disposition of the
1114	1114	complaint.
1115	1115	Sec. 2201.154. GENERAL RULES REGARDING COMPLAINT
1116	1116	INVESTIGATION AND DISPOSITION. The commission shall adopt rules
1117	1117	concerning the investigation of a complaint filed with the
1118	1118	commission. The rules must:
1119	1119	(1) distinguish between categories of complaints;
1120	1120	(2) ensure that complaints are not dismissed without
1121	1121	appropriate consideration;
1122	1122	(3) require that the commission be advised of a
1123	1123	complaint that is dismissed and that a letter be sent to the person
1124	1124	who filed the complaint explaining the action taken on the
1125	1125	dismissed complaint;
1126	1126	(4) ensure that the person who files a complaint has an
1127	1127	opportunity to explain the allegations made in the complaint; and
1128	1128	(5) prescribe guidelines concerning the categories of
1129	1129	complaints that require the use of a private investigator and the
1130	1130	procedures for the commission to obtain the services of a private
1131	1131	investigator.
1132	1132	Sec. 2201.155. DISPOSITION OF COMPLAINT. (a) The
1133	1133	commission shall:
1134	1134	(1) dispose of each complaint in a timely manner; and
1135	1135	(2) establish a schedule for conducting each phase of
1136	1136	a complaint that is under the control of the commission not later
1137	1137	than the 30th day after the date the commission receives the
1138	1138	complaint.
1139	1139	(b) Each party shall be notified of the projected time
1140	1140	requirements for pursuing the complaint. The commission shall
1141	1141	notify each party to the complaint of any change in the schedule
1142	1142	established under Subsection (a)(2) not later than the seventh day
1143	1143	after the date the change is made.
1144	1144	(c) The executive director shall notify the commission of a
1145	1145	complaint that is not resolved within the time prescribed by the
1146	1146	commission for resolving the complaint.
1147	1147	Sec. 2201.156. PUBLIC PARTICIPATION. (a) The commission
1148	1148	shall develop and implement policies that provide the public with a
1149	1149	reasonable opportunity to appear before the commission and to speak
1150	1150	on any issue under the commission's jurisdiction.
1151	1151	(b) The commission shall prepare and maintain a written plan
1152	1152	that describes the manner in which a person who does not speak
1153	1153	English may be provided reasonable access to the commission's
1154	1154	programs.
1155	1155	Sec. 2201.157. INFORMAL SETTLEMENT CONFERENCE. The
1156	1156	commission by rule shall establish procedures for an informal
1157	1157	settlement conference related to a complaint filed with the
1158	1158	commission.
1159	1159	CHAPTER 2202. CASINO GAMING AND SPORTS WAGERING
1160	1160	SUBCHAPTER A. GENERAL PROVISIONS
1161	1161	Sec. 2202.001. REGULATION AND LICENSING OF CASINO GAMING
1162	1162	AND SPORTS WAGERING; PUBLIC POLICY. (a) All casino gaming and
1163	1163	sports wagering that is conducted in this state and that is
1164	1164	authorized by law shall be regulated and licensed under this
1165	1165	chapter, unless federal law or another state law specifically
1166	1166	provides otherwise.
1167	1167	(b) The legislature hereby finds, and declares it to be the
1168	1168	public policy of this state, that:
1169	1169	(1) the development of regulated casino gaming and
1170	1170	sports wagering at a limited number of destination resorts in this
1171	1171	state will benefit the general welfare of the people of this state
1172	1172	by enhancing investment, economic development, and tourism in this
1173	1173	state, resulting in thousands of new jobs and significant
1174	1174	additional revenue to this state for essential services;
1175	1175	(2) the conduct of regulated casino gaming or sports
1176	1176	wagering by adults at a limited number of destination resorts and on
1177	1177	Indian lands will not harm the welfare of this state;
1178	1178	(3) the regulation of casino gaming and sports
1179	1179	wagering in this state is important to ensure that casino gaming and
1180	1180	sports wagering is:
1181	1181	(A) conducted honestly and competitively; and
1182	1182	(B) free from criminal and corruptive elements;
1183	1183	(4) public confidence and trust can be maintained only
1184	1184	by strict regulation of all persons, locations, practices,
1185	1185	associations, and activities related to the conduct of casino
1186	1186	gaming, the casino service industry, and the conduct of sports
1187	1187	wagering;
1188	1188	(5) persons owning any direct or indirect material
1189	1189	interest in a casino should be licensed and controlled to protect
1190	1190	the public health, safety, morals, good order, and general welfare
1191	1191	of the people of this state;
1192	1192	(6) certain operators and employees of casinos should
1193	1193	be regulated, licensed, and controlled to accomplish and promote
1194	1194	these public policies while protecting the public health, safety,
1195	1195	morals, good order, and general welfare of the people of this state;
1196	1196	(7) certain persons engaging in the casino service
1197	1197	industry should be regulated, licensed, and controlled to
1198	1198	accomplish and promote these public policies while protecting the
1199	1199	public health, safety, morals, good order, and general welfare of
1200	1200	the people of this state; and
1201	1201	(8) it is the intent of the legislature that the
1202	1202	resources, goods, labor, and services of the people of this state be
1203	1203	used, where possible, in the operation and construction of
1204	1204	destination resorts, casinos, and related amenities to the extent
1205	1205	allowable by law.
1206	1206	Sec. 2202.002. EXEMPTION FROM FEDERAL STATUTE. (a) This
1207	1207	chapter provides an exemption to the application of 15 U.S.C.
1208	1208	Section 1172, in accordance with that section.
1209	1209	(b) All shipments of gaming devices into this state,
1210	1210	including slot machines, conducted in compliance with the
1211	1211	applicable provisions of 15 U.S.C. Sections 1173 and 1174 are legal
1212	1212	shipments of the devices into this state.
1213	1213	Sec. 2202.003. CONSTRUCTION; APPLICABILITY OF OTHER LAWS.
1214	1214	(a) Nothing in this chapter may be construed to implicitly repeal
1215	1215	or modify existing state laws with respect to gambling, except that
1216	1216	casino gaming and sports wagering are not prohibited by another law
1217	1217	if conducted as authorized under this chapter.
1218	1218	(b) To the extent of any conflict between Chapter 2003,
1219	1219	Government Code, and this chapter or a commission rule governing
1220	1220	casino gaming or sports wagering, this chapter or the commission
1221	1221	rule prevails in all matters related to casino gaming or sports
1222	1222	wagering, including in connection with hearings before the State
1223	1223	Office of Administrative Hearings.
1224	1224	(c) This chapter prevails to the extent of any conflict
1225	1225	between this chapter and a provision of Subtitle A-1 (Texas Racing
1226	1226	Act).
1227	1227	Sec. 2202.004. AUTHORITY TO IMPLEMENT CASINO GAMING AND
1228	1228	SPORTS WAGERING. (a) The commission may implement casino gaming
1229	1229	and sports wagering in accordance with this subtitle.
1230	1230	(b) The commission shall allow the operation of limited
1231	1231	casino gaming or sports wagering under this subtitle at locations
1232	1232	on Indian lands in accordance with an effective gaming agreement
1233	1233	and in compliance with applicable federal law.
1234	1234	Sec. 2202.005. IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR
1235	1235	INVESTIGATION. Any member or agent of the commission or any witness
1236	1236	testifying under oath has absolute privilege for any written or
1237	1237	oral statement made in the course of and relevant to the purpose of
1238	1238	an official commission proceeding or investigative activity
1239	1239	related to commission licensing under this chapter. A written or
1240	1240	oral statement described by this section does not impose liability
1241	1241	for defamation or constitute a ground for recovery in any civil
1242	1242	action.
1243	1243	Sec. 2202.006. FINDING OF SUITABILITY. To promote the
1244	1244	integrity and security of casino gaming and sports wagering under
1245	1245	this subtitle, the commission in its discretion may require a
1246	1246	finding of suitability for any person conducting business with or
1247	1247	in relation to the operation of casino gaming or sports wagering who
1248	1248	is not otherwise required to obtain a license from the commission
1249	1249	for the person's gaming-related operations.
1250	1250	Sec. 2202.007. CONSENT TO COMMISSION DETERMINATION. (a)
1251	1251	An application for a license under this chapter constitutes a
1252	1252	request to the commission for a decision on the applicant's general
1253	1253	suitability, character, integrity, and ability to participate or
1254	1254	engage in or be associated with casino gaming or sports wagering
1255	1255	under this chapter in the manner or position sought.
1256	1256	(b) By filing an application with the commission, the
1257	1257	applicant specifically consents to the commission's determination
1258	1258	if the application, after filing, becomes moot for any reason other
1259	1259	than death.
1260	1260	Sec. 2202.008. LICENSE AS REVOCABLE PERSONAL PRIVILEGE.
1261	1261	(a) An applicant for a license under this chapter does not have any
1262	1262	right to the license sought.
1263	1263	(b) Any license issued under this chapter is a revocable
1264	1264	privilege and not a right or property under the United States
1265	1265	Constitution or the Texas Constitution. An applicant or license
1266	1266	holder does not acquire any vested right in or under the privilege.
1267	1267	(c) The courts of this state have jurisdiction to review a
1268	1268	decision to deny, limit, or condition a casino license under
1269	1269	Section 2202.357 or if judicial review is sought on the ground that
1270	1270	the denial, limitation, or condition violates the Texas
1271	1271	Constitution or is based on a suspect classification, such as race,
1272	1272	color, religion, sex, or national origin, in violation of the Equal
1273	1273	Protection Clause of the Fourteenth Amendment to the United States
1274	1274	Constitution. The state court must affirm the commission's action
1275	1275	unless the violation is proven by clear and convincing evidence.
1276	1276	(d) A license issued or renewed under this chapter may not
1277	1277	be transferred or assigned to another person unless approved in
1278	1278	advance by the commission, and a license may not be pledged as
1279	1279	collateral. The purchaser or successor of a license holder must
1280	1280	independently qualify for a license required by this chapter.
1281	1281	(e) The following acts are void unless approved by the
1282	1282	commission before the act occurs or not later than the 60th day
1283	1283	after the date the act occurs:
1284	1284	(1) the transfer, sale, or other disposition of an
1285	1285	interest in the license holder that results in a change in the
1286	1286	identity of an equity interest holder requiring qualification under
1287	1287	Section 2202.060; or
1288	1288	(2) the sale of the assets of the license holder, other
1289	1289	than assets bought and sold in the ordinary course of business, or
1290	1290	any interest in the assets, to any person not already determined to
1291	1291	have met the applicable qualifications of this chapter.
1292	1292	Sec. 2202.009. PRIZE RULES, PAYMENT, AND REDEMPTION. (a)
1293	1293	The payment of prizes is the sole and exclusive responsibility of
1294	1294	the casino license holder or operator license holder. A prize may
1295	1295	not be paid by the commission or this state except as otherwise
1296	1296	authorized.
1297	1297	(b) Nothing in this chapter limits the ability of a casino
1298	1298	license holder or operator license holder to provide promotional
1299	1299	prizes, including wide area progressive networks, in addition to
1300	1300	prize payouts regulated by the commission.
1301	1301	(c) The commission shall enact rules consistent with this
1302	1302	section governing the use and redemption of prizes and credits
1303	1303	recorded on player account records, such as players' club cards and
1304	1304	smart cards.
1305	1305	Sec. 2202.010. REPORT ON LITIGATION. (a) A casino license
1306	1306	holder or operator license holder shall report to the commission
1307	1307	any litigation relating to casino gaming or sports wagering
1308	1308	operations, including a criminal proceeding, a proceeding
1309	1309	involving an issue related to pari-mutuel activities that impact
1310	1310	casino gaming or sports wagering operations, or a matter related to
1311	1311	character or reputation relevant to a person's suitability under
1312	1312	this chapter.
1313	1313	(b) The report required under Subsection (a) must be filed
1314	1314	not later than the 30th day after the date the license holder
1315	1315	acquires knowledge of the litigation.
1316	1316	Sec. 2202.011. COMMISSION APPROVAL REQUIRED FOR PROCEDURES
1317	1317	AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a) The commission's
1318	1318	or executive director's approval is required for all internal
1319	1319	procedures and administrative and accounting controls of a casino
1320	1320	license holder or operator license holder.
1321	1321	(b) The commission by rule shall establish general
1322	1322	accounting and auditing requirements and internal control
1323	1323	standards for the conduct of casino gaming and sports wagering at
1324	1324	casinos.
1325	1325	Sec. 2202.012. GAMING EMPLOYEE REPORTING. (a) In this
1326	1326	section, "employee" includes any person connected directly with or
1327	1327	compensated by an applicant or license holder as an agent, personal
1328	1328	representative, consultant, or independent contractor.
1329	1329	(b) On or before the 15th day of each month, a casino or
1330	1330	operator license holder shall submit to the commission a gaming
1331	1331	employee report for the casino operated by the owner or operator.
1332	1332	For each gaming employee, the report must provide the employee's
1333	1333	name, job title, date of birth, and social security number.
1334	1334	(c) The gaming employee report is confidential and may not
1335	1335	be disclosed except under commission order or in accordance with
1336	1336	this subtitle.
1337	1337	(d) The commission may conduct criminal history background
1338	1338	investigations of gaming employees.
1339	1339	(e) The commission may prohibit an employee from performing
1340	1340	any act relating to gaming if the commission finds that an employee
1341	1341	has:
1342	1342	(1) committed, attempted, or conspired to commit any
1343	1343	act prohibited by this chapter;
1344	1344	(2) concealed or refused to disclose any material fact
1345	1345	in any commission investigation;
1346	1346	(3) committed, attempted, or conspired to commit an
1347	1347	offense involving or related to larceny or embezzlement;
1348	1348	(4) been convicted in any jurisdiction of an offense
1349	1349	involving or relating to gambling;
1350	1350	(5) accepted employment and continued to be employed
1351	1351	in a position for which commission approval is required after
1352	1352	commission approval was denied for a reason involving personal
1353	1353	unsuitability or after failing to apply for approval on commission
1354	1354	request;
1355	1355	(6) been prohibited under color of governmental
1356	1356	authority from being present on the premises of any casino or any
1357	1357	establishment where casino gaming, sports wagering, or pari-mutuel
1358	1358	wagering is conducted for any reason relating to improper gambling
1359	1359	activity or other illegal acts;
1360	1360	(7) wilfully defied any legislative investigative
1361	1361	committee or other officially constituted body acting on behalf of
1362	1362	the United States or any state, county, or municipality that sought
1363	1363	to investigate alleged or potential crimes relating to gambling,
1364	1364	corruption of public officials, or any organized criminal
1365	1365	activities; or
1366	1366	(8) been convicted of any felony or any crime
1367	1367	involving moral turpitude.
1368	1368	(f) The commission may prohibit an employee from performing
1369	1369	any act relating to casino gaming or sports wagering based on a
1370	1370	revocation or suspension of any casino gaming, sports wagering, or
1371	1371	pari-mutuel wagering license or for any other reason the commission
1372	1372	finds appropriate, including a refusal by a regulatory authority to
1373	1373	issue a license for the employee to engage in or be involved with
1374	1374	casino gaming, sports wagering, or with other regulated gaming or
1375	1375	pari-mutuel wagering in any jurisdiction.
1376	1376	Sec. 2202.013. REPORT OF VIOLATIONS. A person who holds a
1377	1377	license under this chapter shall immediately report a violation or
1378	1378	suspected violation of this chapter or a rule adopted under this
1379	1379	chapter by any license holder, by an employee of a license holder,
1380	1380	or by any person on the premises of a casino, whether or not
1381	1381	associated with the license holder.
1382	1382	Sec. 2202.014. INDEMNIFICATION, INSURANCE, AND BONDING
1383	1383	REQUIREMENTS. (a) A license holder shall indemnify and hold
1384	1384	harmless this state, the commission, and all officers and employees
1385	1385	of this state and the commission from any and all claims which may
1386	1386	be asserted against a license holder, the commission, this state,
1387	1387	and the members, officers, employees, and authorized agents of this
1388	1388	state or the commission arising from the license holder's
1389	1389	participation in casino gaming or sports wagering authorized under
1390	1390	this subtitle.
1391	1391	(b) Surety and insurance required under this chapter may
1392	1392	only be issued by companies or financial institutions financially
1393	1393	rated "A-" or better as rated by AM Best Company or another rating
1394	1394	organization designated by the commission and duly licensed,
1395	1395	admitted, and authorized to conduct business in this state, or by
1396	1396	other surety approved by the commission.
1397	1397	(c) The commission shall be named as the obligee in each
1398	1398	required surety and as an additional insured in each required
1399	1399	insurance contract.
1400	1400	(d) A casino license holder or operator license holder may
1401	1401	not be self-insured with regard to gaming operations under this
1402	1402	section in excess of $50 million per occurrence.
1403	1403	(e) The commission by rule shall establish minimum
1404	1404	insurance coverage requirements for license holders under this
1405	1405	chapter, including:
1406	1406	(1) crime or fidelity insurance against losses caused
1407	1407	by fraudulent or dishonest acts by an officer or employee of the
1408	1408	license holder;
1409	1409	(2) commercial general liability insurance;
1410	1410	(3) property insurance; and
1411	1411	(4) business auto liability insurance.
1412	1412	Sec. 2202.015. LIABILITY FOR CREDIT AWARDED OR DENIED.
1413	1413	This state and the commission are not liable for any gaming device
1414	1414	malfunction or error occurring at a casino that causes credit to be
1415	1415	wrongfully awarded or denied to players.
1416	1416	SUBCHAPTER B. CASINO LICENSE
1417	1417	Sec. 2202.051. CASINO LICENSE; LIMITED NUMBER; LOCATIONS.
1418	1418	(a) Casino gaming and sports wagering may be lawfully conducted in
1419	1419	a casino operating under a casino license. The commission shall
1420	1420	issue casino licenses as required and limited by the Texas
1421	1421	Constitution.
1422	1422	(b) A person may not own an equity interest in a casino at
1423	1423	which casino gaming, sports wagering, or other gambling is
1424	1424	conducted in this state unless the casino is operating under a
1425	1425	casino license issued for the conduct of gambling at that casino.
1426	1426	(c) A separate casino license must be obtained for each
1427	1427	casino conducting casino gaming, sports wagering, or other gambling
1428	1428	regulated by the commission. The commission may not issue a casino
1429	1429	license if issuing the license would cause the number of active
1430	1430	casino licenses to exceed a limit on the number of active casino
1431	1431	licenses established by the Texas Constitution or this subtitle.
1432	1432	(d) The commission may not issue a casino license for a
1433	1433	casino located outside of an area authorized under the Texas
1434	1434	Constitution or this subtitle for a casino location.
1435	1435	(e) The commission may issue a temporary license
1436	1436	authorizing the casino license holder to temporarily conduct casino
1437	1437	gaming and sports wagering in accordance with commission rules at a
1438	1438	location within 20 miles of the location for which the casino
1439	1439	license was issued. A temporary license issued under this
1440	1440	subsection must expire not later than the first anniversary of the
1441	1441	date the temporary license is issued.
1442	1442	(f) For purposes of determining a casino's location, a
1443	1443	casino is considered to be located in the county in which is located
1444	1444	the main public entrance to the casino.
1445	1445	Sec. 2202.052. APPLICATION. (a) A person may apply for a
1446	1446	casino license by submitting in accordance with commission rules an
1447	1447	application containing information the commission finds necessary
1448	1448	to determine:
1449	1449	(1) the suitability and eligibility of the applicant;
1450	1450	(2) the eligibility of the proposed location; and
1451	1451	(3) the economic impact of the overall destination
1452	1452	resort or casino project.
1453	1453	(b) In addition to any other information the commission may
1454	1454	require, an application must include the following information
1455	1455	concerning the feasibility of the overall destination:
1456	1456	(1) evidence that the applicant possesses, or has the
1457	1457	right to acquire, sufficient real property on which the proposed
1458	1458	destination resort will be located that accommodates the
1459	1459	applicant's construction and operation of the destination resort
1460	1460	substantially as proposed;
1461	1461	(2) evidence that the applicant will meet, and a
1462	1462	specific schedule for meeting, all requirements established by the
1463	1463	Texas Constitution to conduct casino gaming and sports wagering,
1464	1464	including satisfaction of any minimum new investment commitment;
1465	1465	(3) evidence of the applicant's good character,
1466	1466	honesty, and integrity;
1467	1467	(4) evidence that issuance of the casino license will
1468	1468	not be detrimental to the public interest or the casino gaming and
1469	1469	sports wagering industry;
1470	1470	(5) a detailed estimate of the total new investment to
1471	1471	be made by the applicant for the destination resort and evidence of
1472	1472	the applicant's financial capacity to operate and complete
1473	1473	development of the destination resort;
1474	1474	(6) evidence that the applicant possesses, or
1475	1475	reasonably expects to obtain, all state, county, and municipal
1476	1476	permits and approvals necessary for the construction and operation
1477	1477	of the proposed destination resort within the time prescribed by
1478	1478	this chapter; and
1479	1479	(7) evidence that the applicant is prepared to begin
1480	1480	construction of its proposed destination resort not later than the
1481	1481	second anniversary of the date the casino license is issued and to
1482	1482	proceed with the construction of the destination resort without
1483	1483	unnecessary delay.
1484	1484	(c) An applicant may apply for not more than two casino
1485	1485	licenses but must submit a separate application for each
1486	1486	destination resort for which a casino license is sought.
1487	1487	Sec. 2202.053. CASINO LICENSE ISSUED TO INDIAN TRIBE;
1488	1488	AGREEMENT. (a) In addition to the casino licenses issued under
1489	1489	this subchapter, the commission may issue a casino license to a
1490	1490	federally recognized Indian tribe for which Indian lands in this
1491	1491	state were held in trust by the United States on January 1, 1998. A
1492	1492	license issued under this subsection authorizes the Indian tribe to
1493	1493	which the license is issued to operate not more than one casino on
1494	1494	Indian lands held in trust by the United States on January 1, 1998.
1495	1495	(b) A casino license issued by the commission under
1496	1496	Subsection (a) to an Indian tribe constitutes an agreement between
1497	1497	this state and the tribe for purposes of the Indian Gaming
1498	1498	Regulatory Act (Pub. L. No. 100-497).
1499	1499	(c) An Indian tribe to which Subsection (a) applies may, in
1500	1500	lieu of operating a casino under a casino license under that
1501	1501	subsection, operate a casino on Indian lands described by
1502	1502	Subsection (a) under an agreement with this state governed by this
1503	1503	chapter and Chapter 2203.
1504	1504	(d) The commission may not issue a casino license for a
1505	1505	location in which casino gaming or sports wagering is prohibited
1506	1506	under a gaming agreement between an Indian tribe and this state.
1507	1507	Sec. 2202.054. MANDATORY LICENSE REQUIREMENTS. (a) A
1508	1508	company is eligible to apply for and hold a casino license only if:
1509	1509	(1) the company is incorporated or organized and in
1510	1510	good standing in this state or organized under the laws of another
1511	1511	state of the United States and qualified to conduct business in this
1512	1512	state; and
1513	1513	(2) the company complies with all laws of this state.
1514	1514	(b) To be eligible to hold a casino license, an applicant
1515	1515	must submit an application to the commission by the date
1516	1516	established by the commission.
1517	1517	(c) An application may not be considered filed for purposes
1518	1518	of this chapter if the application does not include the information
1519	1519	prescribed by Section 2202.052(b) or is not accompanied by the
1520	1520	required application fee.
1521	1521	Sec. 2202.055. CONSIDERATIONS FOR INITIAL AND CONTINUING
1522	1522	SUITABILITY FOR CASINO LICENSE. (a) The commission shall
1523	1523	determine the initial and continuing suitability of each applicant
1524	1524	for or holder of a casino license based on suitability criteria
1525	1525	prescribed by commission rule to ensure that all casino license
1526	1526	holders are of good character, are honest, have integrity, and are
1527	1527	financially stable, that a casino license holder has sufficient
1528	1528	business probity and competence, and that a casino license holder
1529	1529	meets other applicable qualifications for the issuance of the
1530	1530	license.
1531	1531	(b) The commission shall give due consideration to the
1532	1532	protection of the public health, safety, morals, and general
1533	1533	welfare of the people of this state and for the reputation of the
1534	1534	state's casino gaming and sports wagering industry.
1535	1535	(c) In considering the initial and continuing suitability
1536	1536	of an applicant for or holder of a casino license, the commission
1537	1537	shall consider:
1538	1538	(1) whether the applicant or casino license holder is
1539	1539	a qualified applicant as described by the Texas Constitution;
1540	1540	(2) the applicant's or casino license holder's
1541	1541	experience in conducting licensed casino gaming and sports wagering
1542	1542	operations and the applicant's financial ability to promptly
1543	1543	construct and adequately maintain the proposed casino project; and
1544	1544	(3) the applicant's or casino license holder's
1545	1545	progress toward satisfying any minimum investment commitment
1546	1546	required by the Texas Constitution and the schedule specified in
1547	1547	the application.
1548	1548	(d) In determining whether an applicant meets any minimum
1549	1549	investment commitment required by the Texas Constitution, the
1550	1550	commission may not consider the expenditure of any public money or
1551	1551	facilities developed or built with public assistance or tax
1552	1552	incentives of any kind.
1553	1553	(e) The burden of proving suitability to receive or hold a
1554	1554	casino license is on the applicant or license holder.
1555	1555	(f) In considering the initial and continuing suitability
1556	1556	of an applicant for or holder of a casino license, the commission
1557	1557	may consider the suitability of:
1558	1558	(1) each person holding an equity interest in the
1559	1559	applicant or license holder requiring qualification under Section
1560	1560	2202.060;
1561	1561	(2) each person holding or proposed to receive an
1562	1562	operator license, occupational license, or manufacturer license
1563	1563	employed by or conducting business with the applicant or license
1564	1564	holder; and
1565	1565	(3) each affiliate of the applicant or license holder.
1566	1566	(g) An applicant for or holder of a casino license may not
1567	1567	receive or hold a casino license if the person or an officer or
1568	1568	director:
1569	1569	(1) has been convicted of a felony in the past 20 years
1570	1570	under the laws of this state, any other state, or the United States;
1571	1571	(2) has ever knowingly or intentionally submitted an
1572	1572	application for a license under this chapter that contained false
1573	1573	information;
1574	1574	(3) served as a principal manager for an applicant or
1575	1575	license holder described by Subdivision (1) or (2);
1576	1576	(4) retains or employs another person described by
1577	1577	Subdivision (2);
1578	1578	(5) holds a manufacturer license or casino service
1579	1579	license;
1580	1580	(6) is a commission member; or
1581	1581	(7) is a member of the judiciary or an elected official
1582	1582	of this state.
1583	1583	(h) The commission may adopt rules providing for a person's
1584	1584	reciprocal determination of suitability to hold a casino license
1585	1585	based partly on a determination of suitability to own and operate a
1586	1586	casino in any other jurisdiction the commission considers
1587	1587	reasonable for purposes of this chapter.
1588	1588	(i) In addition to all other applicable considerations and
1589	1589	suitability criteria, if the Texas Constitution requires a casino
1590	1590	license applicant to be selected through an open bid process, the
1591	1591	commission shall consider the following factors when selecting the
1592	1592	applicant:
1593	1593	(1) the relevant financial investment each competing
1594	1594	applicant will make for the applicant's proposed destination resort
1595	1595	project;
1596	1596	(2) the relative prospective revenue this state will
1597	1597	collect from casino gaming and proposed nongaming businesses
1598	1598	associated with the applicant's proposed destination resort
1599	1599	project;
1600	1600	(3) the relative number of state residents who would
1601	1601	be employed at the applicant's proposed destination resort project
1602	1602	and any proposed nongaming businesses and the extent of the
1603	1603	applicant's good faith plan to recruit, train, and promote a
1604	1604	workforce that reflects the diverse populations of this state in
1605	1605	all employment classifications;
1606	1606	(4) the relative extent to which the applicant's
1607	1607	proposed destination resort and any proposed associated hotel and
1608	1608	other nongaming businesses could be reasonably expected to
1609	1609	encourage interstate tourism to this state;
1610	1610	(5) the relative extent to which the scope, design,
1611	1611	location, and construction of the applicant's destination resort
1612	1612	and any proposed associated hotel and other nongaming businesses
1613	1613	could be reasonably expected to contribute to the local economy;
1614	1614	and
1615	1615	(6) the relative commitment of the applicant to
1616	1616	product procurement for the applicant's operations from vendors
1617	1617	based in this state.
1618	1618	Sec. 2202.056. REVIEW OF APPLICATION. (a) The commission
1619	1619	shall issue an order approving or denying an application for a
1620	1620	casino license not later than 180 days after the date the
1621	1621	application is filed.
1622	1622	(b) The commission may adopt rules for issuing any temporary
1623	1623	or interim license as the commission finds necessary to administer
1624	1624	this chapter.
1625	1625	Sec. 2202.057. TRANSFERABILITY; CASINO GAMING OR SPORTS
1626	1626	WAGERING SITE. A casino license is not transferable unless the
1627	1627	transfer is approved in advance by the commission. A casino license
1628	1628	authorizes casino gaming or sports wagering only at the specific
1629	1629	site identified in the license.
1630	1630	Sec. 2202.058. REPLACEMENT CASINO LICENSE. (a) Subject to
1631	1631	Subsection (b), the commission may issue a replacement casino
1632	1632	license to an applicant that proposes to conduct casino gaming or
1633	1633	sports wagering at:
1634	1634	(1) a destination resort location where casino gaming
1635	1635	or sports wagering was previously conducted under a casino license
1636	1636	that expired without being renewed or was revoked or permanently
1637	1637	surrendered; or
1638	1638	(2) a new destination resort located in the same
1639	1639	metropolitan statistical area as a destination resort location
1640	1640	where casino gaming or sports wagering was previously conducted
1641	1641	under a casino license that expired without being renewed or was
1642	1642	revoked or permanently surrendered, on the condition that the
1643	1643	license holder make minimum new investments for the development of
1644	1644	a destination resort in the amount required by the Texas
1645	1645	Constitution of an initial qualified applicant for the license.
1646	1646	(b) The commission may not issue a replacement casino
1647	1647	license under Subsection (a) if issuing the license would cause the
1648	1648	number of active casino licenses to exceed a limit on the number of
1649	1649	active casino licenses established by the Texas Constitution or
1650	1650	this subtitle.
1651	1651	(c) In determining whether to issue a replacement casino
1652	1652	license to an applicant under Subsection (a), the commission shall
1653	1653	determine the initial suitability of the applicant using the
1654	1654	requirements of Section 2202.054 and the considerations of Section
1655	1655	2202.055.
1656	1656	(d) The commission may adopt rules providing additional
1657	1657	considerations or requirements related to issuance of a replacement
1658	1658	casino license under Subsection (a).
1659	1659	Sec. 2202.059. DENIAL, SUSPENSION, AND REVOCATION. (a)
1660	1660	The commission may deny an application for a casino license or
1661	1661	suspend or revoke a casino license if the commission determines
1662	1662	that the applicant is unsuitable to be issued or the license holder
1663	1663	is unsuitable to continue to hold a casino license based on the
1664	1664	applicant's or license holder's:
1665	1665	(1) failure to meet or maintain the requirements of
1666	1666	Section 2202.054; or
1667	1667	(2) lack of suitability as determined by the
1668	1668	commission under Section 2202.055.
1669	1669	(b) If the commission has reasonable grounds to believe that
1670	1670	an applicant is unsuitable to hold or a license holder is unsuitable
1671	1671	to continue to hold a casino license as provided by Subsection (a),
1672	1672	the commission shall conduct an investigation under Section
1673	1673	2202.351 and a hearing under Section 2202.356 and may, based on the
1674	1674	commission's determination, deny issuance of the license or
1675	1675	suspend, limit, or revoke the license.
1676	1676	(c) On suspension or revocation of a casino license under
1677	1677	this section, the license holder must immediately cease all casino
1678	1678	gaming and sports wagering activities.
1679	1679	(d) If the holder of a casino license fails to begin
1680	1680	construction of a casino by the second anniversary of the date the
1681	1681	license was issued or fails to begin casino gaming or sports
1682	1682	wagering operations by the fifth anniversary of the date the
1683	1683	license was issued, the commission may require forfeiture of the
1684	1684	license, unless the commission for good cause previously granted an
1685	1685	appropriate extension of time. The commission shall adopt rules
1686	1686	regarding the criteria and procedure for granting an extension of
1687	1687	time under this subsection.
1688	1688	Sec. 2202.060. REGISTRATION OF INTEREST IN APPLICANT OR
1689	1689	LICENSE HOLDER. (a) Except as provided by Subsection (b), a person
1690	1690	who directly or indirectly owns an equity interest in an applicant
1691	1691	for or holder of a casino license shall register and qualify with
1692	1692	the commission under commission rules and shall provide information
1693	1693	the commission finds necessary to determine the suitability and
1694	1694	eligibility of the person to retain the interest.
1695	1695	(b) The following persons are not required to register or
1696	1696	qualify under this section:
1697	1697	(1) a key employee of the casino license holder that is
1698	1698	required to apply for an occupational license under Section
1699	1699	2202.102;
1700	1700	(2) an institutional investor that is a record owner
1701	1701	of 25 percent or less of the total equity of the casino license
1702	1702	holder;
1703	1703	(3) a person that beneficially owns five percent or
1704	1704	less of the total equity of the casino license holder; and
1705	1705	(4) any other group or class of persons that the
1706	1706	commission by rule exempts from registration or qualification.
1707	1707	(c) A casino license holder shall provide to the commission
1708	1708	the name, address, and interest in the casino license holder of each
1709	1709	person who is exempt from registration or qualification under
1710	1710	Subsection (b).
1711	1711	(d) A registration filed under this section must be
1712	1712	accompanied by the application fee required under Section 2202.202.
1713	1713	Sec. 2202.061. TRANSFERABILITY OF INTEREST; LIMITATION ON
1714	1714	OWNERSHIP. (a) Except as provided by this subsection, a casino
1715	1715	license holder may not issue an equity interest to a person without
1716	1716	the commission's determination of the qualification of the proposed
1717	1717	subscriber or purchaser to hold the interest. A casino license
1718	1718	holder that is a publicly held company or is wholly owned by one or
1719	1719	more publicly held companies may issue equity interests of five
1720	1720	percent or less of its equity interest to any person without the
1721	1721	consent of the commission.
1722	1722	(b) A person beneficially owning more than five percent of
1723	1723	the equity interest of a casino license holder may not:
1724	1724	(1) transfer an interest in the license holder
1725	1725	requiring qualification under Section 2202.060 to any person
1726	1726	without the commission's determination of the qualification of the
1727	1727	proposed transferee to hold the interest, except that a person may
1728	1728	transfer not more than five percent of the person's interest in the
1729	1729	license holder to an affiliate of the transferor or an individual
1730	1730	related to the transferor within the fourth degree by affinity or
1731	1731	consanguinity, as determined under Chapter 573, Government Code,
1732	1732	provided that notice is given to the commission at least 90 days
1733	1733	before the transfer; or
1734	1734	(2) simultaneously beneficially own more than five
1735	1735	percent of the equity interest of more than one other casino license
1736	1736	holder.
1737	1737	(c) A subscriber or proposed transferee of an interest by a
1738	1738	casino license holder shall provide to the commission the
1739	1739	information the commission considers necessary to determine the
1740	1740	qualification of the person. The commission, not later than the
1741	1741	60th day after the date of the application, shall determine the
1742	1742	qualification of a subscriber or proposed transferee and approve or
1743	1743	deny the issuance or transfer.
1744	1744	Sec. 2202.062. DETERMINATION OF QUALIFICATION. (a) The
1745	1745	commission shall determine the qualification of a person to acquire
1746	1746	or continue to hold an equity interest in an applicant for or holder
1747	1747	of a casino license based on the qualification requirements the
1748	1748	commission adopts for the protection of the public interest to
1749	1749	ensure that persons holding securities issued by license holders
1750	1750	are of good character, are honest, have integrity, are financially
1751	1751	stable, and are otherwise qualified to hold the interest.
1752	1752	(b) The burden of proving qualification to acquire or hold
1753	1753	an equity interest in a license holder is on the person acquiring or
1754	1754	holding the interest.
1755	1755	(c) A person is unsuitable to acquire or retain an equity
1756	1756	interest in an applicant for or holder of a casino license if the
1757	1757	person would be unsuitable to receive a casino license under
1758	1758	Section 2202.055(g).
1759	1759	(d) If the commission has reasonable grounds to believe that
1760	1760	a person holding an equity interest in an applicant for or holder of
1761	1761	a casino license may be unqualified to retain the person's
1762	1762	interest, the commission shall conduct an investigation under
1763	1763	Section 2202.351 and a hearing under Section 2202.356 and may,
1764	1764	based on the commission's determination, issue an unsuitability
1765	1765	finding and divestiture order to the holder of the interest and the
1766	1766	issuer of the interest. On receipt of a divestiture order, the
1767	1767	person holding the interest shall tender the person's entire
1768	1768	interest for purchase to the issuer or a third party on terms the
1769	1769	commission approves.
1770	1770	(e) If the commission issues an unsuitability finding and
1771	1771	divestiture order to a holder of an equity interest, the person
1772	1772	subject to the order may not:
1773	1773	(1) receive, directly or indirectly, a dividend,
1774	1774	interest, payment, or distribution of any kind relating to the
1775	1775	security that is the subject of the order; or
1776	1776	(2) exercise, directly or indirectly, any voting power
1777	1777	or other right with respect to the security to which the order
1778	1778	relates.
1779	1779	(f) A person subject to an order may receive payment for the
1780	1780	sale of the person's interest on terms the commission approves.
1781	1781	Sec. 2202.063. HORSE RACING; GREYHOUND RACING; SCOPE OF
1782	1782	COMMISSION AUTHORITY GOVERNING RACETRACK ASSOCIATIONS. (a) In this
1783	1783	section:
1784	1784	(1) "Greyhound racing," "horse race meeting," "horse
1785	1785	racing day," and "racetrack association" have the meanings assigned
1786	1786	to those terms by Section 2021.003.
1787	1787	(2) "Class 1 racetrack" means a class 1 racetrack
1788	1788	described by Section 2026.102.
1789	1789	(b) Except as provided by Subsection (c), the commission by
1790	1790	rule shall ensure that a casino license holder that is also a
1791	1791	racetrack association holding a license for a class 1 racetrack
1792	1792	continues to conduct horse race meetings consistent with a minimum
1793	1793	number of horse racing days that were conducted in 2022.
1794	1794	(c) If required by the Texas Constitution, a racetrack
1795	1795	association that holds a license to conduct horse race meetings at a
1796	1796	racetrack shall cease all horse racing operations at the racetrack
1797	1797	and surrender the license as a condition of receiving and holding a
1798	1798	casino license or designating a person to receive and hold a casino
1799	1799	license as provided by the Texas Constitution.
1800	1800	(d) A racetrack association that holds a license to conduct
1801	1801	greyhound racing shall cease all greyhound racing operations and
1802	1802	surrender the license as a condition of receiving and holding a
1803	1803	casino license or designating a person to receive and hold a casino
1804	1804	license as provided by the Texas Constitution.
1805	1805	(e) Except as otherwise authorized by the commission, a
1806	1806	casino license holder that is also a racetrack association shall
1807	1807	keep the license holder's casino operations and financial records
1808	1808	separate from the racetrack association's racing operations and
1809	1809	records.
1810	1810	(f) An activity regulated by the Texas Racing Commission
1811	1811	under Subtitle A-1 (Texas Racing Act) is not subject to regulation
1812	1812	by the commission.
1813	1813	Sec. 2202.064. TERM OF CASINO LICENSE. A casino license
1814	1814	issued under this subchapter expires on the 50th anniversary of the
1815	1815	date of issuance and may be renewed for one or more 50-year terms.
1816	1816	Sec. 2202.065. LOCAL ZONING LAWS. (a) Notwithstanding any
1817	1817	other law, a destination resort at which casino gaming is
1818	1818	authorized under this chapter is subject to any applicable local
1819	1819	government zoning and land use regulations in place on January 1,
1820	1820	2023.
1821	1821	(b) To the extent a destination resort could satisfy the
1822	1822	criteria for classification as more than one regulated entity or be
1823	1823	subject to more than one body of regulations, a local government
1824	1824	zoning and land use authority shall classify and regulate a
1825	1825	destination resort under the most permissive classification and
1826	1826	regulations to ensure the maximum economic benefit to this state in
1827	1827	the shortest possible time.
1828	1828	SUBCHAPTER C. OPERATOR LICENSE AND OCCUPATIONAL LICENSE
1829	1829	Sec. 2202.101. OPERATOR LICENSE. (a) A person may not
1830	1830	provide services as an operator unless the person holds an operator
1831	1831	license.
1832	1832	(b) An operator license holder must hold a separate operator
1833	1833	license for each casino that the license holder operates.
1834	1834	Sec. 2202.102. OCCUPATIONAL LICENSE. (a) Except as
1835	1835	provided by Subsection (b), a person may not be employed as a gaming
1836	1836	employee unless the person holds an occupational license.
1837	1837	(b) A casino license holder or operator license holder is
1838	1838	not required to obtain an occupational license to provide services
1839	1839	as a gaming employee in the casino to which the license relates.
1840	1840	(c) A casino license holder shall designate at least one
1841	1841	occupational license holder as a key employee with responsibility
1842	1842	over all gaming activities. The commission shall note on each key
1843	1843	employee's occupational license that the individual is designated
1844	1844	as a key employee. At least one key employee must be available at
1845	1845	the casino at all times when casino gaming or sports wagering is
1846	1846	conducted on the casino license holder's premises.
1847	1847	Sec. 2202.103. APPLICATION. (a) An application for an
1848	1848	operator license or occupational license shall be made in
1849	1849	compliance with commission rules and must contain information the
1850	1850	commission finds necessary to determine the suitability and
1851	1851	eligibility of the applicant to function as a casino operator or to
1852	1852	be employed or retained as a gaming employee.
1853	1853	(b) An application for an operator license or an
1854	1854	occupational license must be accompanied by the required
1855	1855	application fee.
1856	1856	(c) The commission may issue a temporary operator license
1857	1857	and a temporary occupational license. The commission shall adopt
1858	1858	rules regarding the terms of temporary operator licenses and
1859	1859	temporary occupational licenses.
1860	1860	Sec. 2202.104. RESIDENCY. A person is eligible to apply for
1861	1861	and hold an operator license or occupational license without regard
1862	1862	to the residency of the applicant.
1863	1863	Sec. 2202.105. DETERMINATION OF SUITABILITY. (a) The
1864	1864	commission shall determine the suitability of an applicant for or
1865	1865	holder of an operator license or occupational license based on
1866	1866	suitability criteria the commission adopts in order to ensure that
1867	1867	a license holder:
1868	1868	(1) is of good character, is honest, and has
1869	1869	integrity;
1870	1870	(2) has sufficient business probity, competence, and
1871	1871	training or experience in the gaming industry to perform the
1872	1872	function contemplated; and
1873	1873	(3) is otherwise qualified to be licensed.
1874	1874	(b) The burden of proving suitability to hold an operator
1875	1875	license or occupational license is on the applicant or license
1876	1876	holder.
1877	1877	(c) In considering the suitability of a company applying for
1878	1878	or holding an operator license or occupational license to hold the
1879	1879	license, the commission shall consider the suitability of each
1880	1880	principal manager and each holder of more than five percent of the
1881	1881	equity interest of the company to individually hold an occupational
1882	1882	license based on the suitability standards that apply to an
1883	1883	applicant for the license generally.
1884	1884	(d) A person may not be found suitable to hold an operator
1885	1885	license or occupational license if that person would be found
1886	1886	unsuitable to hold a casino license under Section 2202.055(g),
1887	1887	except that an applicant for an operator license or occupational
1888	1888	license who has been convicted of a felony may be found suitable if
1889	1889	the applicant is found to be adequately rehabilitated under
1890	1890	applicable rehabilitation requirements adopted by the commission
1891	1891	and is otherwise suitable for licensing.
1892	1892	Sec. 2202.106. DENIAL, SUSPENSION, LIMITATION, OR
1893	1893	REVOCATION OF LICENSE. (a) The commission may deny an application
1894	1894	for or suspend, limit, or revoke an operator license or
1895	1895	occupational license for any reasonable cause.
1896	1896	(b) If the commission has reasonable cause to believe that
1897	1897	an operator license holder or occupational license holder may be
1898	1898	unsuitable to hold the license, giving due consideration to the
1899	1899	protection of the health, safety, morals, and general welfare of
1900	1900	this state and to the reputation of the state's casino gaming
1901	1901	industry, the commission shall conduct an investigation under
1902	1902	Section 2202.351 and a hearing under Section 2202.356 and may,
1903	1903	based on the commission's determination, suspend, limit, or revoke
1904	1904	any license.
1905	1905	(c) On suspension or revocation of an operator license or
1906	1906	occupational license, the license holder shall cease providing all
1907	1907	services in any capacity requiring a license under Section 2202.101
1908	1908	or 2202.102.
1909	1909	(d) A holder of an operator license or occupational license
1910	1910	that has been suspended or revoked may not, while the license is
1911	1911	suspended or revoked:
1912	1912	(1) receive, directly or indirectly, any
1913	1913	compensation, consideration, or payment of any kind relating to the
1914	1914	conduct of casino gaming or sports wagering in any capacity
1915	1915	requiring a license under Section 2202.101 or 2202.102, other than
1916	1916	the payment for services rendered before the suspension or
1917	1917	revocation; or
1918	1918	(2) serve or function in a capacity that would require
1919	1919	a license under Section 2202.101 or 2202.102.
1920	1920	SUBCHAPTER D. MANUFACTURER LICENSE AND CASINO SERVICE LICENSE
1921	1921	Sec. 2202.151. MANUFACTURER LICENSE. (a) A person may not
1922	1922	engage in any segment of the slot machine manufacturing industry in
1923	1923	this state for which a manufacturer license is required under this
1924	1924	section unless the person holds a manufacturer license covering
1925	1925	that segment of the industry. This subsection applies only to slot
1926	1926	machines manufactured for use in this state.
1927	1927	(b) The commission shall adopt rules identifying segments
1928	1928	of the manufacturing industry directly involved in the design,
1929	1929	manufacture, assembly, production, programming, sale, lease,
1930	1930	marketing, distribution, repair, or modification of slot machines
1931	1931	or component parts of slot machines that the commission finds
1932	1932	appropriate for licensing under this section.
1933	1933	(c) A manufacturer license is personal to the license holder
1934	1934	and allows the license holder to conduct business with any casino.
1935	1935	Sec. 2202.152. CASINO SERVICE LICENSE. (a) A person may
1936	1936	not engage in any segment of the casino service industry that
1937	1937	requires a casino service license under a rule adopted under
1938	1938	Subsection (b) or under a provision of Subsection (c) unless the
1939	1939	person holds a casino service license.
1940	1940	(b) The commission shall adopt rules identifying segments
1941	1941	of the casino service industry directly involved with providing
1942	1942	gaming-related services, equipment, and supplies that the
1943	1943	commission finds appropriate for licensing under this section.
1944	1944	(c) A person is required to hold a casino service license if
1945	1945	the person:
1946	1946	(1) operates, conducts, or maintains a casino
1947	1947	gaming- or sports wagering-related business; or
1948	1948	(2) furnishes goods, property, or services to a casino
1949	1949	in exchange for:
1950	1950	(A) a payment based on a percentage of the
1951	1951	earnings, profits, or receipts from the casino; or
1952	1952	(B) a payment the commission finds to be grossly
1953	1953	disproportionate to the value of the goods, property, or service
1954	1954	provided.
1955	1955	(d) A utility company, a retail electric provider, a
1956	1956	municipality, or another political subdivision is not required to
1957	1957	obtain a casino service license under this section.
1958	1958	(e) A casino service license is personal to the license
1959	1959	holder and allows the license holder to conduct business with any
1960	1960	casino.
1961	1961	(f) A casino license holder or operator license holder, or
1962	1962	an employee, officer, or director of a casino license holder or
1963	1963	operator license holder, is not required to obtain a casino service
1964	1964	license to provide services for the casino to which the casino
1965	1965	license or operator license relates.
1966	1966	Sec. 2202.153. APPLICATION. (a) A person seeking a
1967	1967	manufacturer license or casino service license shall submit an
1968	1968	application in accordance with commission rules.
1969	1969	(b) The application must:
1970	1970	(1) contain information the commission finds
1971	1971	necessary to determine the suitability and eligibility of the
1972	1972	applicant; and
1973	1973	(2) be accompanied by the required application fee.
1974	1974	Sec. 2202.154. DETERMINATION OF SUITABILITY. (a) In
1975	1975	considering the suitability of a company applying for or holding a
1976	1976	manufacturer license or casino service license to receive and
1977	1977	continue to hold the license, the commission shall consider the
1978	1978	suitability of each principal manager and each holder of more than
1979	1979	five percent of the equity interest of the company to individually
1980	1980	receive and hold a manufacturer license or casino service license
1981	1981	based on the suitability standards that apply to the company.
1982	1982	(b) The commission may not find a person suitable to hold a
1983	1983	manufacturer license or casino service license if that person would
1984	1984	be found unsuitable to hold a casino license under Section
1985	1985	2202.055(g), except that an applicant for a manufacturer license or
1986	1986	casino service license who has been convicted of a felony may be
1987	1987	found suitable if the applicant is found to be adequately
1988	1988	rehabilitated under applicable rehabilitation requirements adopted
1989	1989	by the commission and the applicant or license holder is otherwise
1990	1990	suitable for licensing.
1991	1991	Sec. 2202.155. DENIAL, SUSPENSION, LIMITATION, OR
1992	1992	REVOCATION OF LICENSE. (a) The commission may deny an application
1993	1993	for or suspend, limit, or revoke a manufacturer license or casino
1994	1994	service license for any reasonable cause.
1995	1995	(b) If the commission has reasonable cause to believe that a
1996	1996	manufacturer license holder or casino service license holder may be
1997	1997	unsuitable to hold the license, giving due consideration to the
1998	1998	protection of the health, safety, morals, and general welfare of
1999	1999	this state and to the reputation of the state's casino gaming and
2000	2000	sports wagering industry, the commission shall conduct an
2001	2001	investigation under Section 2202.351 and a hearing under Section
2002	2002	2202.356 and may, based on the commission's determination, suspend,
2003	2003	limit, or revoke the license.
2004	2004	(c) On suspension or revocation of a license, the license
2005	2005	holder shall cease the performance of manufacturing activity or
2006	2006	casino service requiring a license under this chapter. After the
2007	2007	revocation or suspension of the license, the affected license
2008	2008	holder may not, while the license is revoked or suspended, receive,
2009	2009	directly or indirectly, compensation, consideration, or payment of
2010	2010	any kind relating to manufacturing activity or provision of casino
2011	2011	services in any capacity requiring a license under this chapter,
2012	2012	other than the payment for goods or services provided before the
2013	2013	suspension or revocation.
2014	2014	(d) A casino license holder or operator license holder who
2015	2015	has entered into a lease with a manufacturer license holder or
2016	2016	casino services license holder whose license has been revoked or
2017	2017	suspended may continue to make payments on the lease based on the
2018	2018	original terms and conditions of the lease without modification or
2019	2019	may accelerate the lease and pay the remainder of the lease, at the
2020	2020	sole option of the casino license holder or operator license
2021	2021	holder.
2022	2022	(e) The burden of proving suitability to receive and hold a
2023	2023	manufacturer license or casino service license is on the applicant
2024	2024	or license holder.
2025	2025	SUBCHAPTER E. LICENSE RENEWAL AND FEES
2026	2026	Sec. 2202.201. TERMS. Except as provided by Section
2027	2027	2202.064, an original or renewal license expires on the first
2028	2028	anniversary of the date it is issued.
2029	2029	Sec. 2202.202. APPLICATION AND RENEWAL FEES; LICENSE TERMS.
2030	2030	(a) An application fee received under this section must be:
2031	2031	(1) deposited in the Texas casino gaming fund; and
2032	2032	(2) used for the operation of the commission.
2033	2033	(b) An applicant for a casino license must pay an
2034	2034	application fee as follows, regardless of whether the destination
2035	2035	resort with the casino has been constructed:
2036	2036	(1) $2.5 million for a license for a casino located
2037	2037	within a destination resort that requires a minimum new investment
2038	2038	commitment of at least $2 billion;
2039	2039	(2) $1.25 million for a license for a casino located
2040	2040	within a destination resort that requires a minimum new investment
2041	2041	commitment of at least $1 billion; or
2042	2042	(3) $500,000 for a license for a casino located within
2043	2043	a destination resort that requires a minimum new investment
2044	2044	commitment of at least $250 million.
2045	2045	(c) An applicant for a manufacturer license must pay an
2046	2046	application fee of $1,000.
2047	2047	(d) An applicant for an operator license must pay an
2048	2048	application fee of $1,000.
2049	2049	(e) An applicant for a casino service license must pay an
2050	2050	application fee of $200.
2051	2051	(f) A person registering and applying to qualify to hold an
2052	2052	equity interest in a license holder must pay an application fee of
2053	2053	$200.
2054	2054	(g) An applicant for an occupational license must pay an
2055	2055	application fee of $100.
2056	2056	(h) All application fees must be in the form of a money order
2057	2057	or cashier's check and be payable to the Texas Gaming Commission,
2058	2058	except that the commission may provide for the payment of the fees
2059	2059	by electronic funds transfer or similar method. Application fees
2060	2060	are nonrefundable.
2061	2061	(i) Application fees shall be applied toward the cost of
2062	2062	investigating applicants' suitability for licensing or
2063	2063	qualification under this chapter. Any costs of investigation
2064	2064	incurred in excess of the application fee shall be paid by the
2065	2065	applicant, except that the commission by rule may provide for an
2066	2066	exception to this requirement for casino service licenses and
2067	2067	occupational licenses.
2068	2068	(j) A license described by Subsection (c), (d), (e), (f), or
2069	2069	(g) expires on the first anniversary of the date the license is
2070	2070	issued as provided by Section 2202.201.
2071	2071	(k) The fee for the renewal of a license described by
2072	2072	Subsection (c), (d), (e), (f), or (g) is the same amount as the
2073	2073	initial application fee.
2074	2074	SUBCHAPTER F. TEXAS CASINO GAMING FUND; TAXES
2075	2075	Sec. 2202.251. TEXAS CASINO GAMING FUND. (a) The Texas
2076	2076	casino gaming fund is a special fund in the state treasury.
2077	2077	(b) All application fees and investigation fees collected
2078	2078	by the commission or on the commission's behalf related to casino
2079	2079	gaming shall be deposited to the credit of the Texas casino gaming
2080	2080	fund.
2081	2081	(c) The Texas casino gaming fund may be used only for the
2082	2082	operation of the commission and the administration of this
2083	2083	subtitle. The amount of money in the fund that exceeds the amount
2084	2084	necessary for the operation of the commission and the
2085	2085	administration of this chapter may be transferred to the general
2086	2086	revenue fund as authorized by the legislature.
2087	2087	(d) The operation of the commission and the administration
2088	2088	of this chapter shall be supported by fees generated under this
2089	2089	chapter and by a portion of the taxes imposed by Section 2202.252.
2090	2090	Sec. 2202.252. CASINO GAMING TAX; SPORTS WAGERING TAX;
2091	2091	ALLOCATION OF TAXES. (a) A casino gaming tax is imposed on each
2092	2092	casino license holder in an amount equal to 15 percent of the gross
2093	2093	casino gaming revenue of the casino operated under the license.
2094	2094	(b) The taxes imposed by this section shall be computed and
2095	2095	paid monthly in accordance with the procedures established by
2096	2096	commission rule.
2097	2097	(c) Except as provided by Subsection (d), the revenue from
2098	2098	the taxes imposed by this section is allocated to the general
2099	2099	revenue fund.
2100	2100	(d) Of the revenue from the casino gaming tax imposed by
2101	2101	Subsection (a):
2102	2102	(1) the comptroller shall deposit two percent to the
2103	2103	credit of the escrow account administered by the Texas Racing
2104	2104	Commission and established under Section 2028.204(b) to be used as
2105	2105	horse racing purses in this state;
2106	2106	(2) three percent shall be allocated to the Texas
2107	2107	casino gaming fund to support the operation of the commission and
2108	2108	administration of this chapter;
2109	2109	(3) one-half of one percent shall be allocated to the
2110	2110	general revenue fund and may be appropriated only to fund a
2111	2111	compulsive gambling program established under Subchapter J;
2112	2112	(4) $1 million may be appropriated in each state
2113	2113	fiscal biennium to the Department of Public Safety to be used to
2114	2114	provide grants to prosecuting attorneys for the investigation and
2115	2115	prosecution of offenses related to the possession of gambling
2116	2116	devices;
2117	2117	(5) 10 percent may be appropriated only to fund public
2118	2118	safety programs; and
2119	2119	(6) 80 percent may be appropriated only to fund
2120	2120	education, provided that, if a constitutional amendment proposed by
2121	2121	the 88th Legislature, Regular Session, 2023, renaming the national
2122	2122	research university fund as the Texas University Fund is approved
2123	2123	by the voters and takes effect, an amount equal to the lesser of $1
2124	2124	billion each state fiscal year or 80 percent of the revenue
2125	2125	collected from the casino gaming tax imposed by Subsection (a) each
2126	2126	state fiscal year shall be allocated to the Texas University Fund.
2127	2127	(e) To promote the growth of live horse racing in this
2128	2128	state, the Texas Racing Commission shall allocate the amounts
2129	2129	deposited under Subsection (d)(1) to horse racetrack associations
2130	2130	based on the number of live race dates each licensed horse racetrack
2131	2131	association conducts. The Texas Racing Commission may adopt rules
2132	2132	to implement this subsection.
2133	2133	(f) A sports wagering tax is imposed on each license holder
2134	2134	in an amount equal to 10 percent of the gross sports wagering
2135	2135	revenue of the license holder.
2136	2136	(g) The taxes imposed by this section are due and payable on
2137	2137	or before the 20th day of the month following the month in which the
2138	2138	taxes are imposed.
2139	2139	(h) If the amount of taxes required to be reported and paid
2140	2140	under this section is later determined to be greater or less than
2141	2141	the amount actually reported and paid by the license holder, the
2142	2142	commission shall:
2143	2143	(1) assess and collect the additional taxes determined
2144	2144	to be due with interest until paid; or
2145	2145	(2) refund any overpayment, with interest, to the
2146	2146	license holder.
2147	2147	(i) Interest required to be collected or refunded under
2148	2148	Subsection (h) must be computed, until paid, at the rate of one
2149	2149	percent per month from the first day of the first month following
2150	2150	the due date of the additional taxes or the date of the overpayment
2151	2151	of taxes, as applicable.
2152	2152	Sec. 2202.253. DETERMINATION OF GROSS CASINO GAMING
2153	2153	REVENUE. (a) In calculating gross casino gaming revenue, a prize,
2154	2154	premium, drawing, benefit, or ticket that is redeemable for money,
2155	2155	merchandise, or other promotional allowance, except money, chips,
2156	2156	or tokens paid at face value directly to a patron as the result of a
2157	2157	specific wager and the amount of cash paid to purchase an annuity to
2158	2158	fund winnings, may not be deducted from gross casino gaming revenue
2159	2159	as a loss at any game except a slot machine or a table game with a
2160	2160	progressive jackpot.
2161	2161	(b) In calculating gross casino gaming revenue from slot
2162	2162	machines at a casino, the actual cost to the license holder of any
2163	2163	personal property distributed to a patron as the result of a
2164	2164	legitimate wager may be deducted as a loss, but travel expenses,
2165	2165	food, refreshments, lodging, or services at the license holder's
2166	2166	casino may not be deducted. For the purposes of this subsection,
2167	2167	personal property is distributed as the result of a legitimate
2168	2168	wager if a patron must make a wager before receiving the personal
2169	2169	property, regardless of whether the receipt of the personal
2170	2170	property is dependent on the outcome of the wager.
2171	2171	Sec. 2202.254. REFUND OF OVERPAYMENT. (a) Taxes imposed
2172	2172	under this subchapter that are erroneously collected may be
2173	2173	refunded, on approval of the commission, as other claims against
2174	2174	the state are paid.
2175	2175	(b) Not later than the 90th day after the date notice of the
2176	2176	commission's action on a claim for refund filed under this chapter
2177	2177	is sent by mail, the claimant may bring an action against the
2178	2178	commission on the grounds stated in the claim for the recovery of
2179	2179	any part of the amount of the claim that has been disallowed.
2180	2180	(c) Failure to bring an action within the time specified by
2181	2181	Subsection (b) constitutes a waiver of any demand against the state
2182	2182	on account of alleged overpayments.
2183	2183	(d) If the commission fails to mail its notice of action on a
2184	2184	claim within six months after the date the claim is filed, the
2185	2185	claimant may consider the claim disallowed and bring an action
2186	2186	against the commission on the grounds set forth in the claim for the
2187	2187	recovery of any part of the amount claimed as an overpayment.
2188	2188	(e) A claim for refund of taxes imposed under this
2189	2189	subchapter that are paid in excess of the amount required to be
2190	2190	reported and paid must be filed not later than two years after the
2191	2191	date of overpayment.
2192	2192	Sec. 2202.255. DETERMINATION OF DEFICIENCY. (a) If a
2193	2193	casino license holder fails to make a report of the taxes imposed
2194	2194	under this subchapter, or if the executive director is not
2195	2195	satisfied with the license holder's report of the taxes, the
2196	2196	executive director may compute and determine the amount due based
2197	2197	on:
2198	2198	(1) any facts contained in the report;
2199	2199	(2) an audit conducted by the executive director;
2200	2200	(3) an estimate of the amount due;
2201	2201	(4) any information in the commission's possession or
2202	2202	that may come into the executive director's possession; or
2203	2203	(5) any combination of the methods described by
2204	2204	Subdivisions (1)-(4).
2205	2205	(b) In making a determination, the commission may offset
2206	2206	overpayments and interest due against underpayments and interest or
2207	2207	penalties due for the period of the audit.
2208	2208	(c) The executive director shall give prompt written notice
2209	2209	of a determination of a deficiency under this section to the casino
2210	2210	license holder. Except in the case of fraud or intent to evade the
2211	2211	payment of the tax, a notice of a determination of a deficiency must
2212	2212	be mailed not later than the later of the second anniversary of the:
2213	2213	(1) last day of the calendar month following the
2214	2214	applicable reporting period in which the deficiency occurred; or
2215	2215	(2) date the report is filed by the license holder.
2216	2216	(d) If the reasons for the deficiency are not apparent, the
2217	2217	executive director shall include an explanation of those reasons in
2218	2218	the notice of a determination of a deficiency.
2219	2219	(e) If overpayments and interest exceed underpayments,
2220	2220	penalties, and interest, the excess amount shall be refunded to the
2221	2221	casino license holder.
2222	2222	Sec. 2202.256. PETITION FOR REDETERMINATION; PETITION FOR
2223	2223	JUDICIAL REVIEW. (a) A casino license holder against whom a
2224	2224	determination is made under Section 2202.255 may petition the
2225	2225	commission for a redetermination not later than the 30th day after
2226	2226	the date notice of the determination is served. If a petition for
2227	2227	redetermination satisfying the requirements of Subsection (c) is
2228	2228	not filed by the 30th day, the determination becomes final.
2229	2229	(b) If a petition for redetermination satisfying the
2230	2230	requirements of Subsection (c) is filed within the 30-day period,
2231	2231	the commission shall review the determination and, if the
2232	2232	petitioner requests, shall grant a hearing.
2233	2233	(c) A petition for redetermination must:
2234	2234	(1) specify the contested portions of the
2235	2235	determination of deficiency;
2236	2236	(2) specify the grounds for redetermination;
2237	2237	(3) state whether a hearing is requested; and
2238	2238	(4) be accompanied by payment in full of the
2239	2239	uncontested portion of the determination, including any interest
2240	2240	and penalties.
2241	2241	(d) An order or decision of the commission on a petition for
2242	2242	redetermination is final 10 days after the date the petitioner is
2243	2243	served.
2244	2244	(e) A petitioner against whom an order or decision of the
2245	2245	commission becomes final may, not later than the 60th day after the
2246	2246	date the decision is final, petition for judicial review in the
2247	2247	manner provided by Chapter 2001, Government Code. The executive
2248	2248	director may not petition for judicial review.
2249	2249	Sec. 2202.257. TAX ADMINISTRATION. (a) The commission
2250	2250	shall perform all functions incident to the administration,
2251	2251	collection, enforcement, and operation of a fee or tax imposed
2252	2252	under this chapter. The commission may adopt rules and prescribe
2253	2253	forms for the administration, collection, and enforcement of a fee
2254	2254	or tax and for the reporting of a fee or tax.
2255	2255	(b) Subtitle B, Title 2, Tax Code, applies to the
2256	2256	administration, collection, and enforcement of a tax imposed under
2257	2257	this subchapter, except that the powers and duties assigned to the
2258	2258	comptroller under that subtitle are assigned to the commission.
2259	2259	SUBCHAPTER G. REGULATION OF GAMBLING OPERATIONS
2260	2260	Sec. 2202.301. REGULATION OF CASINO OPERATIONS. (a) The
2261	2261	commission shall adopt rules applicable to the operation of casinos
2262	2262	as the commission finds necessary for the protection of the health,
2263	2263	safety, morals, and general welfare of this state and for the
2264	2264	reputation of the state's casino gaming and sports wagering
2265	2265	industry.
2266	2266	(b) Casinos may operate 24 hours a day, seven days a week. A
2267	2267	license holder may elect other hours of operation.
2268	2268	Sec. 2202.302. SPORTS WAGERING. Sports wagering is
2269	2269	authorized only under a license issued by the commission and is
2270	2270	subject to rules established by the commission.
2271	2271	Sec. 2202.303. USE OF CHIPS OR TOKENS. All casino gaming
2272	2272	and sports wagering must be conducted with legal tender of the
2273	2273	United States or with chips, tokens, or other instrumentality
2274	2274	approved by the commission for that purpose.
2275	2275	Sec. 2202.304. REPORTING REQUIREMENTS. (a) A casino
2276	2276	license holder shall keep the license holder's books and records in
2277	2277	a manner that clearly shows the total amount of gross casino gaming
2278	2278	revenue and gross sports wagering revenue, as applicable, and other
2279	2279	revenues received.
2280	2280	(b) The books and records kept by a casino license holder
2281	2281	relating to casino gaming or sports wagering operations are not
2282	2282	public records and the publication and dissemination of the
2283	2283	materials by the commission is prohibited.
2284	2284	(c) A casino license holder shall file a report of each
2285	2285	change of the corporate officers and directors with the commission.
2286	2286	(d) A casino license holder shall report to the executive
2287	2287	director in writing a change in company employees who have been
2288	2288	designated as key employees.
2289	2289	(e) The commission may require that a company furnish the
2290	2290	commission with a copy of the company's federal income tax return
2291	2291	not later than the 30th day after the date the return is filed with
2292	2292	the federal government.
2293	2293	Sec. 2202.305. EXCLUSION OF PERSONS. (a) The commission by
2294	2294	rule shall provide for the establishment of a list of persons who
2295	2295	must be excluded or ejected from a casino. The list may include a
2296	2296	person whose presence in the casino or establishment is determined
2297	2297	by the commission to pose a threat to the interests of this state,
2298	2298	to licensed casino gaming or sports wagering, or to both interests.
2299	2299	(b) In making a determination under this section, the
2300	2300	commission may consider any:
2301	2301	(1) prior conviction of a crime that is a felony in
2302	2302	this state or under the laws of the United States or a crime
2303	2303	involving moral turpitude or a violation of the gaming laws of a
2304	2304	state; or
2305	2305	(2) violation of or conspiracy to violate this
2306	2306	subtitle relating to:
2307	2307	(A) the failure to disclose an interest in a
2308	2308	casino for which the person must obtain a license;
2309	2309	(B) wilful evasion of a fee or a tax;
2310	2310	(C) a notorious or unsavory reputation that would
2311	2311	adversely affect public confidence and trust that the gaming
2312	2312	industry is free from criminal or corruptive elements; or
2313	2313	(D) a written order of a governmental agency that
2314	2314	authorizes the exclusion or ejection of the person from a casino
2315	2315	where casino gaming, sports wagering, or pari-mutuel wagering is
2316	2316	conducted.
2317	2317	Sec. 2202.306. INTERNAL AUDIT AND CONTROL SYSTEMS. (a) A
2318	2318	casino license holder shall adopt an internal control system that
2319	2319	provides for:
2320	2320	(1) the safeguarding of its assets and revenues,
2321	2321	especially the recording of cash and evidences of indebtedness; and
2322	2322	(2) the provision of reliable records, accounts, and
2323	2323	reports of transactions, operations, and events, including reports
2324	2324	to the executive director and the commission.
2325	2325	(b) The internal control system must be designed to
2326	2326	reasonably ensure that:
2327	2327	(1) assets are safeguarded;
2328	2328	(2) financial records are accurate and reliable;
2329	2329	(3) transactions are performed only in accordance with
2330	2330	management's general or specific authorization;
2331	2331	(4) transactions are recorded adequately to allow
2332	2332	proper reporting of gross casino gaming revenue, gross sports
2333	2333	wagering revenue, fees, and taxes and to maintain accountability
2334	2334	for assets;
2335	2335	(5) access to assets is allowed only in accordance
2336	2336	with management's specific authorization;
2337	2337	(6) recorded accountability for assets is compared
2338	2338	with actual assets at reasonable intervals and appropriate action
2339	2339	is taken with respect to any discrepancies; and
2340	2340	(7) functions, duties, and responsibilities are
2341	2341	appropriately segregated and performed in accordance with sound
2342	2342	practices by competent, qualified personnel.
2343	2343	(c) A casino license holder and an applicant for a casino
2344	2344	license shall describe, in a manner approved or required by the
2345	2345	executive director, the license holder's or applicant's
2346	2346	administrative and accounting procedures in detail in a written
2347	2347	system of internal control. A casino license holder and applicant
2348	2348	for a casino license shall submit a copy of the license holder's or
2349	2349	applicant's written system to the executive director. A written
2350	2350	system must include:
2351	2351	(1) an organizational chart depicting appropriate
2352	2352	segregation of functions and responsibilities;
2353	2353	(2) a description of the duties and responsibilities
2354	2354	of each position shown on the organizational chart;
2355	2355	(3) a detailed, narrative description of the
2356	2356	administrative and accounting procedures designed to satisfy the
2357	2357	requirements of Section 2202.304(a);
2358	2358	(4) a written statement signed by the license holder's
2359	2359	chief financial officer and either the license holder or the
2360	2360	license holder's chief executive officer attesting that the system
2361	2361	satisfies the requirements of this section;
2362	2362	(5) if the written system is submitted by an
2363	2363	applicant, a letter from an independent certified public accountant
2364	2364	stating that the applicant's written system has been reviewed by
2365	2365	the certified public accountant and complies with the requirements
2366	2366	of this section; and
2367	2367	(6) other items the executive director may require.
2368	2368	(d) The commission shall adopt minimum standards for
2369	2369	internal control procedures.
2370	2370	Sec. 2202.307. AGE REQUIREMENTS. A person under 21 years of
2371	2371	age may not:
2372	2372	(1) play, be allowed to play, place wagers on, or
2373	2373	collect winnings from, personally or through an agent, any casino
2374	2374	gaming or sports wagering authorized under this chapter; or
2375	2375	(2) be employed as a gaming employee.
2376	2376	Sec. 2202.308. ACCEPTANCE OF CREDIT INSTRUMENTS. (a) A
2377	2377	credit instrument evidencing a gaming transaction may be enforced
2378	2378	by legal process.
2379	2379	(b) A license holder may accept an incomplete credit
2380	2380	instrument that is signed by a patron and states the amount of the
2381	2381	debt. The license holder may complete the instrument as is
2382	2382	necessary for the instrument to be presented for payment.
2383	2383	(c) A license holder:
2384	2384	(1) may not accept a credit instrument that is
2385	2385	incomplete, except as authorized by Subsection (b); and
2386	2386	(2) may accept a credit instrument that is payable to
2387	2387	an affiliate or may complete a credit instrument in the name of an
2388	2388	affiliate as payee if the credit instrument otherwise complies with
2389	2389	this section and the records of the affiliate pertaining to the
2390	2390	credit instrument are made available to the executive director on
2391	2391	request.
2392	2392	(d) This section does not prohibit the establishment of an
2393	2393	account by a deposit of cash, recognized traveler's check, or any
2394	2394	other instrument that is equivalent to cash.
2395	2395	(e) Any person, license holder, or agent or employee of the
2396	2396	person or license holder who violates this section is subject only
2397	2397	to the penalties provided in this chapter relating to disciplinary
2398	2398	actions. The failure of a person to comply with this section or
2399	2399	commission rules does not invalidate a credit instrument or affect
2400	2400	the ability to enforce the credit instrument or the transaction
2401	2401	that the credit instrument represents.
2402	2402	Sec. 2202.309. GAMBLING DEBTS. (a) Except as otherwise
2403	2403	provided by this chapter, gambling debts not evidenced by a credit
2404	2404	instrument are void and unenforceable and do not give rise to any
2405	2405	administrative or civil cause of action.
2406	2406	(b) A claim by a patron of a license holder for payment of a
2407	2407	gambling debt not evidenced by a credit instrument may be resolved
2408	2408	by the executive director under commission rules.
2409	2409	(c) The executive director shall send a copy of the
2410	2410	executive director's ruling by first class mail to the attorneys of
2411	2411	record and shall keep an appropriate copy of the mailing. If a
2412	2412	party is not represented by an attorney of record, the executive
2413	2413	director shall send a copy of the ruling by first class mail to the
2414	2414	party and shall keep an appropriate record of the mailing.
2415	2415	(d) A party or attorney of record notified by mail under
2416	2416	this section is presumed to have been notified on the date on which
2417	2417	the notice is mailed.
2418	2418	(e) A party aggrieved by the executive director's ruling is
2419	2419	entitled to have the claim resolved by the commission in a contested
2420	2420	case under Chapter 2001, Government Code, if the party files a
2421	2421	written complaint with the commission challenging the executive
2422	2422	director's ruling not later than the 20th day after the date on
2423	2423	which the party or the party's attorney of record is notified by
2424	2424	mail.
2425	2425	Sec. 2202.310. QUESTIONING AND DETENTION OF PERSONS. (a) A
2426	2426	casino license holder or the license holder's officer, employee, or
2427	2427	agent may question on the premises of the license holder's casino
2428	2428	any person suspected of violating this chapter while on the casino
2429	2429	premises. The casino license holder or the license holder's
2430	2430	officer, employee, or agent is not criminally or civilly liable:
2431	2431	(1) as a result of the questioning; or
2432	2432	(2) for reporting the person suspected of the
2433	2433	violation to the executive director or law enforcement authorities.
2434	2434	(b) A casino license holder or the license holder's officer,
2435	2435	employee, or agent who has reasonable cause to believe that there
2436	2436	has been a violation of this chapter in the license holder's casino
2437	2437	by a person may take that person into custody and detain the person
2438	2438	in the casino in a reasonable manner and for a reasonable length of
2439	2439	time. The taking into custody and detention does not render a
2440	2440	license holder or the license holder's officer, employee, or agent
2441	2441	criminally or civilly liable unless it is established by clear and
2442	2442	convincing evidence that the taking into custody and detention are
2443	2443	unreasonable under all the circumstances.
2444	2444	(c) A casino license holder or the license holder's officer,
2445	2445	employee, or agent is not entitled to the immunity from liability
2446	2446	provided by Subsection (a) or (b) unless there is displayed in a
2447	2447	conspicuous place in the license holder's establishment a notice in
2448	2448	boldface type, clearly legible, and in substantially this form:
2449	2449	A CASINO LICENSE HOLDER OR THE HOLDER'S OFFICER,
2450	2450	EMPLOYEE, OR AGENT WHO HAS A REASONABLE CAUSE TO
2451	2451	BELIEVE THAT A PERSON HAS VIOLATED A PROVISION OF
2452	2452	CHAPTER 2202, OCCUPATIONS CODE, MAY QUESTION OR DETAIN
2453	2453	THAT PERSON IN THIS ESTABLISHMENT.
2454	2454	Sec. 2202.311. SLOT MACHINE DISABLED. (a) The commission
2455	2455	may disable a slot machine operated by a license holder under this
2456	2456	chapter at the time:
2457	2457	(1) a proceeding to suspend a casino license is
2458	2458	initiated;
2459	2459	(2) the commission discovers the license holder failed
2460	2460	to deposit money received from slot machine operations as required;
2461	2461	or
2462	2462	(3) an act or omission occurs that, under commission
2463	2463	rules, justifies the termination of slot machine operations to:
2464	2464	(A) protect the integrity of gaming or the public
2465	2465	health, welfare, or safety; or
2466	2466	(B) prevent financial loss to this state.
2467	2467	(b) The commission shall immediately disable a slot machine
2468	2468	if necessary to protect the public health, welfare, or safety.
2469	2469	Sec. 2202.312. SLOT MACHINE DISTRIBUTION AND COMMISSION
2470	2470	APPROVAL. (a) A person may not distribute a slot machine or other
2471	2471	gaming device or associated equipment for placement at a casino in
2472	2472	this state unless the machine or equipment has been approved by the
2473	2473	commission.
2474	2474	(b) Only a person that holds a casino license or
2475	2475	manufacturer license issued under this chapter may apply for
2476	2476	approval of a slot machine or other gaming device or associated
2477	2477	equipment.
2478	2478	Sec. 2202.313. TECHNICAL STANDARDS FOR GAMING EQUIPMENT.
2479	2479	The commission by rule shall establish minimum technical standards
2480	2480	for gaming devices and associated equipment that may be operated in
2481	2481	this state.
2482	2482	Sec. 2202.314. INCIDENT REPORTS. (a) A casino license
2483	2483	holder or operator license holder shall record all potential
2484	2484	criminal violations known to the license holder and related to
2485	2485	casino gaming or sports wagering activity in the casino.
2486	2486	(b) The casino license holder or operator license holder for
2487	2487	a casino shall assign each incident, without regard to materiality,
2488	2488	a sequential number and, at a minimum, provide the following
2489	2489	information in a permanent record prepared in accordance with
2490	2490	commission rules to ensure the integrity of the record:
2491	2491	(1) the number assigned to the incident;
2492	2492	(2) the date and time of the incident;
2493	2493	(3) the nature of the incident;
2494	2494	(4) each person involved in the incident; and
2495	2495	(5) the name of the employee or other agent of the
2496	2496	owner or operator who investigated the incident.
2497	2497	Sec. 2202.315. SLOT MACHINE EVENTS. A casino license
2498	2498	holder or operator license holder shall keep a database of slot
2499	2499	machine events. The commission by rule shall determine what
2500	2500	constitutes a slot machine event for purposes of this section.
2501	2501	Sec. 2202.316. SECURITY. (a) The casino license holder or
2502	2502	operator license holder of a casino shall:
2503	2503	(1) continuously monitor all slot machines through the
2504	2504	use of a closed-circuit television system that records activity for
2505	2505	a continuous 24-hour period, retain all videotapes or other media
2506	2506	used to store video images for not fewer than seven days, and make
2507	2507	the tapes or media available to the commission on request;
2508	2508	(2) submit for commission approval a security plan and
2509	2509	a floor plan of the area where slot machines are operated showing
2510	2510	slot machine locations and security camera mount locations; and
2511	2511	(3) employ at least the minimum number of private
2512	2512	security personnel the commission determines is necessary to
2513	2513	provide for the safe operation of the casino and the safety and
2514	2514	well-being of the players.
2515	2515	(b) Private security personnel must be present during all
2516	2516	hours of operation at each casino.
2517	2517	(c) An agent or employee of the commission or the Department
2518	2518	of Public Safety or other law enforcement personnel may be present
2519	2519	at a casino at any time.
2520	2520	(d) The commission may adopt rules to impose additional
2521	2521	surveillance and security requirements related to casinos and the
2522	2522	operation of slot machines.
2523	2523	Sec. 2202.317. COMMISSION RIGHT TO ENTER. The commission
2524	2524	or the commission's representative, after displaying appropriate
2525	2525	identification and credentials, has the free and unrestricted right
2526	2526	to:
2527	2527	(1) enter and inspect a premises in which casino
2528	2528	gaming or sports wagering is conducted and any premises where
2529	2529	gaming devices, table games, or associated equipment is
2530	2530	manufactured, sold, or distributed; and
2531	2531	(2) inspect and copy the records of a casino license
2532	2532	holder or operator license holder of a casino pertaining to the
2533	2533	casino gaming or sports wagering.
2534	2534	Sec. 2202.318. APPOINTMENT OF SUPERVISOR. (a) The
2535	2535	commission by rule may provide for the appointment of a supervisor
2536	2536	to manage and operate a casino at the direction of the commission
2537	2537	and perform any act that a casino license holder or operator license
2538	2538	holder is entitled to perform in the event that:
2539	2539	(1) the casino license, operator license, or other
2540	2540	license required for operation of the casino is revoked or
2541	2541	suspended, lapses, or is surrendered;
2542	2542	(2) a casino has been conveyed or transferred to a
2543	2543	secured party receiver or trustee who does not hold the necessary
2544	2544	licenses to operate the casino; or
2545	2545	(3) any other event occurs that causes the casino to
2546	2546	cease the operation of slot machines.
2547	2547	(b) The rules may allow the commission to:
2548	2548	(1) take any action or adopt any procedure necessary
2549	2549	to operate a casino pending the licensing of a casino license
2550	2550	applicant or operator license applicant that seeks to operate the
2551	2551	casino on the transfer or sale of the casino; and
2552	2552	(2) if necessary to continue the operation of the
2553	2553	casino, sell the casino to a person that holds or has applied for
2554	2554	the licenses required to operate the casino under this chapter and
2555	2555	make appropriate distributions of the proceeds of the sale.
2556	2556	Sec. 2202.319. OFFENSE: CONVEYANCE OF CASINO PROPERTY. (a)
2557	2557	A person commits an offense if during the pendency of any proceeding
2558	2558	before the commission that may result in the appointment of a
2559	2559	supervisor or during the period of supervision the person:
2560	2560	(1) sells, leases, or otherwise conveys for less than
2561	2561	full market value or pledges as security any property of a casino;
2562	2562	or
2563	2563	(2) removes from this state or secretes from the
2564	2564	commission or the supervisor any property, money, books, or records
2565	2565	of the casino, including evidences of debts owed to the casino.
2566	2566	(b) An offense under Subsection (a) is a felony of the third
2567	2567	degree.
2568	2568	SUBCHAPTER H. ENFORCEMENT; PRIVILEGED AND CONFIDENTIAL
2569	2569	INFORMATION
2570	2570	Sec. 2202.351. ENFORCEMENT. (a) The executive director
2571	2571	shall conduct an appropriate investigation to:
2572	2572	(1) determine whether there has been a violation of
2573	2573	this chapter or of a commission rule;
2574	2574	(2) determine facts, conditions, practices, or
2575	2575	matters that the executive director considers necessary or proper
2576	2576	to aid in the enforcement of a law or rule;
2577	2577	(3) aid in adopting rules;
2578	2578	(4) secure information as a basis for recommending
2579	2579	legislation relating to this chapter;
2580	2580	(5) determine facts regarding whether an applicant or
2581	2581	a license holder meets all requirements and suitability criteria to
2582	2582	be eligible to hold a license under this subtitle; and
2583	2583	(6) determine whether a license holder is able to meet
2584	2584	the license holder's financial obligations, including all
2585	2585	financial obligations imposed by this chapter, as they become due.
2586	2586	(b) If after an investigation the executive director is
2587	2587	satisfied that a license should be denied, limited, conditioned,
2588	2588	suspended, or revoked, or that a fine should be levied, the
2589	2589	executive director shall initiate a hearing under Section 2202.356.
2590	2590	Sec. 2202.352. ABSOLUTE PRIVILEGE FOR REQUIRED DOCUMENTS
2591	2591	AND COMMUNICATIONS; PRIVILEGED DOCUMENTS. (a) An applicant or
2592	2592	license holder has absolute privilege for the content of any
2593	2593	document or communication of the applicant or license holder that
2594	2594	is transmitted or made to the commission or a commission employee or
2595	2595	designee to comply with any law, including a commission rule, or a
2596	2596	subpoena issued by the commission or to assist the commission or a
2597	2597	commission employee or designee in the performance of the duties of
2598	2598	the commission or a commission employee or designee. Any document
2599	2599	or communication to which this subsection applies does not impose
2600	2600	liability for defamation and is not a ground for recovery in any
2601	2601	civil action by a person other than the commission.
2602	2602	(b) If a document or communication contains information
2603	2603	that is privileged under a law of this state or the law of any other
2604	2604	jurisdiction in which the document or communication is created or
2605	2605	stored, the privilege is not waived or lost because the document or
2606	2606	communication is disclosed to the commission or a commission
2607	2607	employee or designee.
2608	2608	(c) Notwithstanding the powers granted to the commission
2609	2609	and the executive director by this chapter:
2610	2610	(1) the commission or the commission's employee or
2611	2611	designee may not release or disclose privileged information,
2612	2612	documents, or communications provided by an applicant or license
2613	2613	holder and required by a lawful court order unless timely notice of
2614	2614	the potential release or disclosure has been given to the applicant
2615	2615	or license holder and the applicant or license holder has provided
2616	2616	prior written consent to the release or disclosure;
2617	2617	(2) the commission and the commission's employees and
2618	2618	designees shall maintain all privileged information, documents,
2619	2619	and communications in a secure place accessible only to members of
2620	2620	the commission and the commission's employees and designees; and
2621	2621	(3) the commission shall adopt procedures to protect
2622	2622	the privileged nature of information, documents, and
2623	2623	communications provided by an applicant or license holder.
2624	2624	Sec. 2202.353. RELEASE OF CONFIDENTIAL INFORMATION. An
2625	2625	application to a court for an order requiring the commission or the
2626	2626	executive director to release any information declared by law to be
2627	2627	confidential shall be made only on a motion in writing delivered not
2628	2628	later than the 10th day before the date of application to the
2629	2629	commission, the attorney general, and all persons who may be
2630	2630	affected by the entry of the order. Copies of the motion and all
2631	2631	papers filed in support of the motion shall be served with the
2632	2632	notice by delivering a copy in person or by certified mail to the
2633	2633	last known address of the person to be served.
2634	2634	Sec. 2202.354. EMERGENCY ORDERS. (a) The commission may
2635	2635	issue an emergency order for suspension, limitation, or
2636	2636	conditioning of a license or may issue an emergency order requiring
2637	2637	a casino to keep an individual license holder from the premises of
2638	2638	the licensed establishment or to not pay the license holder any
2639	2639	remuneration for services or any profits, income, or accruals on
2640	2640	the license holder's investment in the casino.
2641	2641	(b) An emergency order may be issued only if the commission
2642	2642	determines that:
2643	2643	(1) a license holder has wilfully failed to report,
2644	2644	pay, or truthfully account for a fee or tax imposed under this
2645	2645	chapter or wilfully attempted in any manner to evade or defeat a fee
2646	2646	or tax payment;
2647	2647	(2) a license holder or gaming employee has cheated at
2648	2648	a gambling game; or
2649	2649	(3) the action is necessary for the immediate
2650	2650	preservation of the public peace, health, safety, morals, good
2651	2651	order, or general welfare.
2652	2652	(c) The emergency order must state the grounds on which it
2653	2653	is issued, including a statement of facts constituting the alleged
2654	2654	emergency necessitating the action.
2655	2655	(d) An emergency order may be issued only with the approval
2656	2656	of and under the signature of four or more members of the
2657	2657	commission.
2658	2658	(e) An emergency order is effective immediately on issuance
2659	2659	and service on the license holder or resident agent of the license
2660	2660	holder, gaming employee, or, in cases involving registration, on
2661	2661	issuance and service on the person or entity involved or registered
2662	2662	agent of the entity involved. An emergency order may suspend,
2663	2663	limit, condition, or take other action in relation to the license of
2664	2664	one or more persons in an operation without affecting other
2665	2665	individual license holders or the casino. An emergency order
2666	2666	remains effective until further order of the commission or final
2667	2667	disposition of the case.
2668	2668	(f) Not later than the fifth day after the date of issuance
2669	2669	of an emergency order, the executive director shall file a
2670	2670	complaint and serve it on the person or entity involved. The person
2671	2671	or entity against whom the emergency order has been issued and
2672	2672	served is entitled to a hearing before the commission and to
2673	2673	judicial review of the decision and order of the commission under
2674	2674	Chapter 2001, Government Code. Judicial review is under the
2675	2675	substantial evidence rule, as provided by that chapter.
2676	2676	Sec. 2202.355. SUSPENSION OR REVOCATION OF LICENSE. (a)
2677	2677	The commission may suspend or revoke a license issued under this
2678	2678	chapter if the holder of the license at any time fails to meet the
2679	2679	eligibility requirements set forth in this chapter.
2680	2680	(b) Failure to timely remit gaming revenue generated by slot
2681	2681	machines to the commission or any tax or other fee owed to this
2682	2682	state as demonstrated by report from the applicable taxing
2683	2683	authority or to timely file any report or information required
2684	2684	under this chapter as a condition of any license issued under this
2685	2685	chapter may be grounds for suspension or revocation, or both, of a
2686	2686	license issued under this chapter.
2687	2687	Sec. 2202.356. LICENSE HEARING; DISCIPLINARY HEARING. (a)
2688	2688	Before the commission denies an application, suspends or revokes a
2689	2689	license, or imposes a fine for a violation of this chapter, the
2690	2690	commission shall provide written notice to the applicant or license
2691	2691	holder of the denial, the suspension and the period of suspension,
2692	2692	the revocation, or the amount of the fine. The notice shall
2693	2693	include:
2694	2694	(1) the effective date of the denial, suspension,
2695	2695	revocation, or the fine, as applicable;
2696	2696	(2) each reason for the denial, suspension,
2697	2697	revocation, or fine;
2698	2698	(3) an explanation of the evidence supporting the
2699	2699	reasons;
2700	2700	(4) a statement explaining that the applicant or
2701	2701	license holder is entitled to an opportunity to present the
2702	2702	applicant's or license holder's position in response to the notice,
2703	2703	on or before the 15th day after the date the notice is delivered
2704	2704	personally or mailed to the applicant or license holder; and
2705	2705	(5) a statement explaining the person's right to an
2706	2706	administrative hearing to determine whether the denial,
2707	2707	suspension, revocation, or fine is warranted.
2708	2708	(b) The notice required under Subsection (a) must be made by
2709	2709	personal delivery or by mail to the person's mailing address as it
2710	2710	appears in the commission's records.
2711	2711	(c) To obtain an administrative hearing on a denial,
2712	2712	suspension, revocation, or fine under this section, a person must
2713	2713	submit a written request for a hearing to the commission not later
2714	2714	than the 20th day after the date notice is delivered personally or
2715	2715	mailed to the person, as applicable.
2716	2716	(d) If the commission receives a timely request under
2717	2717	Subsection (c), the commission shall provide the person with an
2718	2718	opportunity for a hearing as soon as practicable. If the commission
2719	2719	does not receive a timely request under Subsection (c), the
2720	2720	commission may impose the fine, deny the application, or suspend or
2721	2721	revoke the license or sustain the denial, suspension, or revocation
2722	2722	without a hearing.
2723	2723	(e) Except as provided by Subsection (g) or otherwise
2724	2724	provided by this subsection, the hearing must be held not earlier
2725	2725	than the 11th day after the date the written request is submitted to
2726	2726	the commission. A hearing may be held before the 11th day after the
2727	2727	date the written request is submitted to the commission if the
2728	2728	hearing requestor and the commission agree to a hearing at an
2729	2729	earlier date.
2730	2730	(f) The commission may provide that a revocation or
2731	2731	suspension takes effect on receipt of notice under Subsection (a)
2732	2732	if the commission finds that the action is necessary to prevent or
2733	2733	remedy a threat to public health, safety, or welfare. The
2734	2734	commission by rule shall establish a nonexclusive list of
2735	2735	violations that present a threat to the public health, safety, or
2736	2736	welfare.
2737	2737	(g) A hearing on a suspension or revocation that takes
2738	2738	effect on receipt of notice must be held not earlier than the ninth
2739	2739	day after the date the written request is submitted to the
2740	2740	commission, unless the commission and the hearing requestor agree
2741	2741	to an earlier date, and not later than the 14th day after the date
2742	2742	the commission receives the request for a hearing under this
2743	2743	section, unless the commission and the hearing requestor agree to a
2744	2744	later date. Except as otherwise provided by this subsection, the
2745	2745	revocation or suspension continues in effect until the hearing is
2746	2746	completed. If the hearing is continued, the revocation or
2747	2747	suspension remains in effect during the continuance at the request
2748	2748	of the hearing requestor or on a finding of good cause by the
2749	2749	commission or administrative law judge.
2750	2750	(h) To prevail in an administrative hearing under this
2751	2751	section, the hearing requestor must demonstrate by clear and
2752	2752	convincing evidence that the denial, suspension, revocation, or
2753	2753	imposition of a fine was unwarranted or otherwise unlawful. The
2754	2754	post-deprivation hearing may be conducted by the commission or
2755	2755	referred to the State Office of Administrative Hearings.
2756	2756	(i) The administrative record created by the hearing
2757	2757	conducted by the State Office of Administrative Hearings shall be
2758	2758	provided to the commission for review and determination.
2759	2759	(j) If an administrative law judge of the State Office of
2760	2760	Administrative Hearings conducts a hearing under this section and
2761	2761	the proposal for decision supports the commission's position, the
2762	2762	administrative law judge shall include in the proposal a finding of
2763	2763	the costs, fees, expenses, and reasonable and necessary attorney's
2764	2764	fees this state incurred in bringing the proceeding.
2765	2765	(k) The commission may adopt the findings for costs, fees,
2766	2766	and expenses and make the finding a part of the final order entered
2767	2767	in the proceeding. Proceeds collected from a finding made under
2768	2768	this section shall be paid to the commission.
2769	2769	Sec. 2202.357. JUDICIAL REVIEW OF DENIAL, SUSPENSION,
2770	2770	REVOCATION, OR FINE IMPOSITION. (a) A person aggrieved by a final
2771	2771	decision of the commission to deny, suspend, or revoke a license or
2772	2772	to impose any fine may obtain judicial review before a district
2773	2773	court in Travis County. The sovereign immunity of the state from
2774	2774	suit and from liability is waived for the limited purpose of
2775	2775	allowing a person to obtain judicial review as provided in this
2776	2776	section.
2777	2777	(b) The judicial review must be instituted by serving on the
2778	2778	commission and filing a petition not later than the 20th day after
2779	2779	the effective date of the final decision and must identify the order
2780	2780	appealed from and the grounds or reason why the petitioner contends
2781	2781	the decision of the commission should be reversed or modified.
2782	2782	(c) The review must be conducted by the court sitting
2783	2783	without jury and must not be a trial de novo but is confined to the
2784	2784	record on review. The reviewing court may only affirm the decision,
2785	2785	remand the case for further proceedings, or reverse the decision if
2786	2786	the substantial rights of the petitioner have been violated.
2787	2787	(d) If any court of competent jurisdiction, on judicial
2788	2788	review limited to the administrative record before the commission
2789	2789	and subject to the substantial evidence standard, concludes that:
2790	2790	(1) the denial of the issuance of the license was
2791	2791	unwarranted or otherwise unlawful, the sole remedy available is
2792	2792	invalidation of the commission's final decision and remand to the
2793	2793	commission for reconsideration of the application; or
2794	2794	(2) the suspension, revocation, or fine was
2795	2795	unwarranted or otherwise unlawful, the sole remedy available is
2796	2796	reinstatement of the license or invalidation of the fine, as
2797	2797	applicable.
2798	2798	(e) The commission, this state, or the members, officers,
2799	2799	employees, and authorized agents of the commission or the state are
2800	2800	not subject to monetary damages, attorney's fees, or court costs
2801	2801	resulting from a fine imposed or from the denial, suspension, or
2802	2802	revocation of a license.
2803	2803	Sec. 2202.358. EFFECT OF DENIAL OF LICENSE. (a) If a
2804	2804	person denied a license has previously been issued a temporary
2805	2805	license, the temporary license expires immediately on the issuance
2806	2806	of the denial.
2807	2807	(b) Except as otherwise authorized by the commission, a
2808	2808	person denied a license may not reapply for any license before the
2809	2809	second anniversary of the date of the denial.
2810	2810	Sec. 2202.359. AGREEMENT TO WAIVE ENFORCEABILITY. A
2811	2811	license holder by virtue of accepting the license agrees that the
2812	2812	privilege of holding a license under this chapter is conditioned on
2813	2813	the license holder's agreement to Sections 2202.355, 2202.356, and
2814	2814	2202.357, and the license holder waives any right to challenge or
2815	2815	otherwise appeal the enforceability of those sections.
2816	2816	Sec. 2202.360. LIMITED WAIVER OF SOVEREIGN IMMUNITY; NO
2817	2817	LIABILITY OF STATE FOR ENFORCEMENT. (a) Except as expressly
2818	2818	provided by the Texas Constitution, this state does not waive its
2819	2819	sovereign immunity by negotiating gaming agreements with Indian
2820	2820	tribes or other persons for the operation of casino gaming, sports
2821	2821	wagering, or gambling games under this subtitle. An actor or agent
2822	2822	for this state may not waive this state's sovereign immunity absent
2823	2823	an express legislative grant of that authority. The only waiver of
2824	2824	sovereign immunity relative to gaming operations is provided by
2825	2825	this section.
2826	2826	(b) With regard to gaming operations on Indian lands, this
2827	2827	state consents to the jurisdiction of the District Court of the
2828	2828	United States with jurisdiction in the county where the Indian
2829	2829	lands are located, or if the federal court lacks jurisdiction, to
2830	2830	the jurisdiction of a district court in Travis County, solely for
2831	2831	the purpose of resolving disputes arising from a gaming agreement
2832	2832	authorized under this chapter or Chapter 2203 for declaratory or
2833	2833	injunctive relief or contract damages of $100,000 or more or from
2834	2834	the failure of the state to enter into a gaming agreement as
2835	2835	required by Section 2203.001. Any disputes relating to damages or
2836	2836	other awards valued at less than $100,000 shall be arbitrated under
2837	2837	the rules of the American Arbitration Association, provided,
2838	2838	however, that application of the rules may not be construed as a
2839	2839	waiver of sovereign immunity.
2840	2840	(c) All financial obligations of the commission are payable
2841	2841	solely out of the income, revenues, and receipts of the commission
2842	2842	and are subject to statutory restrictions and appropriations.
2843	2843	(d) This state and the commission are not liable if
2844	2844	performance by the commission is compromised or terminated by acts
2845	2845	or omissions of the legislature or the state or federal judiciary.
2846	2846	(e) This state and the commission are not liable for acts or
2847	2847	omissions related to the enforcement of this subtitle.
2848	2848	SUBCHAPTER I. PENALTIES AND OFFENSES
2849	2849	Sec. 2202.401. FAILURE TO PAY FEE OR TAX. (a) License fees
2850	2850	and other fees required by this chapter must be paid to the
2851	2851	commission on or before the dates provided by law for each fee.
2852	2852	(b) A person failing to timely pay a fee or tax when due
2853	2853	shall pay in addition a penalty of not less than $50 or 25 percent of
2854	2854	the amount due, whichever is greater. The penalty may not exceed
2855	2855	$1,000 if the fee or tax is less than 10 days late and may not exceed
2856	2856	$5,000 under any circumstances. The commission shall collect the
2857	2857	penalty in the same manner as other charges, license fees, and fines
2858	2858	are collected under this chapter.
2859	2859	Sec. 2202.402. WILFUL FAILURE TO REPORT, PAY, OR ACCOUNT
2860	2860	FOR FEE OR TAX. (a) A person commits an offense if the person
2861	2861	wilfully:
2862	2862	(1) fails to report, pay, or truthfully account for a
2863	2863	fee or tax imposed under this chapter; or
2864	2864	(2) attempts in any manner to evade or defeat a fee or
2865	2865	tax imposed under this chapter.
2866	2866	(b) An offense under this section is a Class A misdemeanor.
2867	2867	Sec. 2202.403. CASINO GAMING AND SPORTS WAGERING FRAUD.
2868	2868	(a) A person commits an offense if the person knowingly:
2869	2869	(1) in connection with casino gaming or sports
2870	2870	wagering:
2871	2871	(A) alters or misrepresents the outcome of a game
2872	2872	or other event on which wagers have been made after the outcome is
2873	2873	made sure but before it is revealed to the players;
2874	2874	(B) places, increases, or decreases a bet or
2875	2875	determines the course of play after acquiring knowledge, not
2876	2876	available to all players, of the outcome of the game or an event
2877	2877	that affects the outcome of the game or that is the subject of the
2878	2878	bet or aids anyone in acquiring such knowledge for the purpose of
2879	2879	placing, increasing, or decreasing a bet or determining the course
2880	2880	of play contingent on that event or outcome;
2881	2881	(C) places or increases a bet after acquiring
2882	2882	knowledge of the outcome of the game or other event that is the
2883	2883	subject of the bet, including past posting and pressing bets; or
2884	2884	(D) reduces the amount wagered or cancels the bet
2885	2885	after acquiring knowledge of the outcome of the game or other event
2886	2886	that is the subject of the bet, including pinching bets;
2887	2887	(2) claims, collects, or takes or attempts to claim,
2888	2888	collect, or take money or anything of value in or from a gambling
2889	2889	game, with the intent to defraud, without having made a wager
2890	2890	contingent on the gambling game;
2891	2891	(3) claims, collects, or takes an amount greater than
2892	2892	the amount won from a gambling game;
2893	2893	(4) entices or induces another to go to a place where a
2894	2894	gambling game is being conducted or operated in violation of this
2895	2895	subtitle, with the intent that the other person play or participate
2896	2896	in that gambling game; or
2897	2897	(5) manipulates, with the intent to cheat, a component
2898	2898	of a gaming device in a manner contrary to the designed and normal
2899	2899	operational purpose for the component, including varying the pull
2900	2900	of the handle of a slot machine, with knowledge that the
2901	2901	manipulation affects the outcome of the game or with knowledge of an
2902	2902	event that affects the outcome of the game.
2903	2903	(b) An offense under this section is a felony of the third
2904	2904	degree.
2905	2905	Sec. 2202.404. USE OF PROHIBITED DEVICES. (a) A person
2906	2906	commits an offense if the person, at a casino, uses or possesses
2907	2907	with the intent to use a device, other than those customarily used
2908	2908	in the conduct of gaming, to assist in:
2909	2909	(1) projecting the outcome of the game;
2910	2910	(2) keeping track of the cards played; or
2911	2911	(3) analyzing the probability of the occurrence of an
2912	2912	event relating to the game.
2913	2913	(b) An offense under this section is a felony of the third
2914	2914	degree.
2915	2915	Sec. 2202.405. USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN,
2916	2916	CHIP, OR COIN. (a) A person commits an offense if the person
2917	2917	knowingly uses counterfeit tokens, chips, or coins in a gambling
2918	2918	game.
2919	2919	(b) A person commits an offense if the person, in playing
2920	2920	any gambling game designed to receive, be played with, or be
2921	2921	operated by lawful tender of the United States, tokens or chips
2922	2922	approved by the executive director, or other instrumentality
2923	2923	approved by the commission for use in the gambling game knowingly
2924	2924	uses a token, chip, or coin or other instrumentality other than
2925	2925	tokens, chips, coins, or other instrumentality approved by the
2926	2926	commission and designed for the gambling game.
2927	2927	(c) A person, other than an authorized employee of a license
2928	2928	holder acting in furtherance of the person's employment within an
2929	2929	establishment, commits an offense if the person knowingly has on
2930	2930	the person's body or in the person's possession on or off the
2931	2931	premises of a casino a device intended to be used to violate the
2932	2932	provisions of this chapter.
2933	2933	(d) A person, other than an authorized employee of a license
2934	2934	holder acting in furtherance of the person's employment within a
2935	2935	casino, commits an offense if the person knowingly has on the
2936	2936	person's body or in the person's possession on or off the premises
2937	2937	of a casino a key or device known to have been designed for the
2938	2938	purpose of and suitable for opening, entering, or affecting the
2939	2939	operation of a gambling game, a drop box, or an electronic or
2940	2940	mechanical device connected to the game or box or for removing money
2941	2941	or other contents from the game or box.
2942	2942	(e) A person commits an offense if the person, with the
2943	2943	intent to manufacture slugs for unauthorized use in gaming devices
2944	2944	located at a casino, knowingly has on the person's body or in the
2945	2945	person's possession paraphernalia for manufacturing slugs. In this
2946	2946	subsection, "paraphernalia for manufacturing slugs" means the
2947	2947	equipment, products, and materials that are intended for use or
2948	2948	designed for use in manufacturing, producing, fabricating,
2949	2949	preparing, testing, analyzing, packaging, storing, or concealing a
2950	2950	counterfeit facsimile of the chips or tokens approved by the
2951	2951	executive director or a lawful coin of the United States, the use of
2952	2952	which is an offense under Subsection (b). The term includes:
2953	2953	(1) lead or lead alloys;
2954	2954	(2) molds, forms, or similar equipment capable of
2955	2955	producing a likeness of a gaming token or United States coin;
2956	2956	(3) melting pots or other receptacles;
2957	2957	(4) torches; and
2958	2958	(5) tongs, trimming tools, or other similar equipment.
2959	2959	(f) Possession of more than one of the devices, equipment,
2960	2960	products, or materials described in this section permits a
2961	2961	rebuttable inference that the possessor intended to use them to
2962	2962	cheat. In this subsection, "cheat" has the meaning assigned by
2963	2963	Section 2202.406.
2964	2964	(g) An offense under this section is a felony of the third
2965	2965	degree.
2966	2966	Sec. 2202.406. CHEATING. (a) In this section, "cheat"
2967	2967	means to alter the elements of chance, method of selection, or
2968	2968	criteria that determine the result of a game or the amount or
2969	2969	frequency of payment in a game.
2970	2970	(b) A person commits an offense if the person knowingly
2971	2971	cheats at any gambling game.
2972	2972	(c) An offense under this section is a state jail felony.
2973	2973	Sec. 2202.407. POSSESSION OF UNLAWFUL GAMING DEVICE. (a) A
2974	2974	person commits an offense if the person possesses any slot machine
2975	2975	or other gaming device that the person knows has been manufactured,
2976	2976	sold, or distributed in violation of this chapter.
2977	2977	(b) An offense under this section is a Class A misdemeanor.
2978	2978	Sec. 2202.408. UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION
2979	2979	OF GAMING EQUIPMENT. (a) In this section, "cheat" has the meaning
2980	2980	assigned by Section 2202.406.
2981	2981	(b) A person commits an offense if the person manufactures,
2982	2982	sells, or distributes a gaming device or associated equipment with
2983	2983	the intent that the device or equipment be used to violate this
2984	2984	chapter.
2985	2985	(c) A person commits an offense if the person marks, alters,
2986	2986	or otherwise modifies any associated equipment or gaming device in
2987	2987	a manner that:
2988	2988	(1) affects the result of a wager by determining a win
2989	2989	or loss; or
2990	2990	(2) alters the normal criteria of random selection
2991	2991	that affect the operation of a game or determine the outcome of a
2992	2992	game.
2993	2993	(d) A person commits an offense if the person instructs
2994	2994	another person in cheating or in the use of a device for cheating at
2995	2995	any gambling game authorized to be conducted at a casino, with the
2996	2996	knowledge or intent that the information or use may be employed to
2997	2997	violate this chapter.
2998	2998	(e) An offense under this section is a felony of the third
2999	2999	degree.
3000	3000	Sec. 2202.409. UNLAWFUL REPORTING. (a) A person commits an
3001	3001	offense if the person, in a license application, in a book or record
3002	3002	required to be maintained by this chapter or a rule adopted under
3003	3003	this chapter, or in a report required to be submitted by this
3004	3004	chapter or a rule adopted under this chapter:
3005	3005	(1) makes a statement or entry that the person knows to
3006	3006	be false or misleading; or
3007	3007	(2) knowingly fails to maintain or make an entry the
3008	3008	person knows is required to be maintained or made.
3009	3009	(b) A person commits an offense if the person knowingly
3010	3010	refuses to produce for inspection by the executive director a book,
3011	3011	record, or document required to be maintained or made by this
3012	3012	chapter or a rule adopted under this chapter.
3013	3013	(c) An offense under this section is a Class A misdemeanor.
3014	3014	Sec. 2202.410. OTHER UNLAWFUL VIOLATIONS. (a) A person
3015	3015	commits an offense if the person knowingly violates, attempts to
3016	3016	violate, or conspires to violate a provision of this chapter
3017	3017	specifying a prohibited act in a manner that is not otherwise
3018	3018	specified as an offense under this subchapter.
3019	3019	(b) An offense under this section is a Class A misdemeanor.
3020	3020	Sec. 2202.411. UNAUTHORIZED OPERATION, USE, OR POSSESSION
3021	3021	OF GAMING DEVICE. (a) A person commits an offense if the person
3022	3022	operates, uses, or possesses a gaming device. An offense under this
3023	3023	subsection is a felony of the third degree.
3024	3024	(b) It is an exception to the application of Subsection (a)
3025	3025	that:
3026	3026	(1) the operation, use, or possession of the gaming
3027	3027	device is expressly authorized by this chapter or other law,
3028	3028	including the transport of a gaming device to or from a casino as
3029	3029	provided by this chapter;
3030	3030	(2) a manufacturer license holder is storing a gaming
3031	3031	device as authorized by the commission for a period not to exceed
3032	3032	180 consecutive days or a longer period approved by the commission;
3033	3033	or
3034	3034	(3) the gaming devices are possessed by the commission
3035	3035	for study and evaluation.
3036	3036	(c) This section does not prohibit the operation, use, or
3037	3037	possession of equipment, machines, technological aids, or other
3038	3038	devices allowed in connection with the play of bingo under Chapter
3039	3039	2001.
3040	3040	Sec. 2202.412. SALE OF GAMBLING GAME TO OR PURCHASE OF
3041	3041	GAMBLING GAME BY PERSON YOUNGER THAN 21 YEARS OF AGE. (a) A person
3042	3042	licensed under this chapter or an employee of the person commits an
3043	3043	offense if the person intentionally or knowingly allows a person
3044	3044	younger than 21 years of age to play a gambling game or engage in
3045	3045	sports wagering.
3046	3046	(b) An individual who is younger than 21 years of age
3047	3047	commits an offense if the individual:
3048	3048	(1) plays a gambling game;
3049	3049	(2) engages in sports wagering; or
3050	3050	(3) falsely represents the individual to be 21 years
3051	3051	of age or older by displaying evidence of age that is false or
3052	3052	fraudulent or misrepresents in any way the individual's age in
3053	3053	order to play a gambling game or engage in sports wagering.
3054	3054	(c) An offense under Subsection (a) is a Class C
3055	3055	misdemeanor.
3056	3056	(d) An offense under Subsection (b) is a misdemeanor
3057	3057	punishable by a fine not to exceed $250.
3058	3058	(e) It is a defense to prosecution under Subsection (b) that
3059	3059	the individual younger than 21 years of age is participating in an
3060	3060	inspection or investigation on behalf of the commission or other
3061	3061	appropriate governmental entity regarding compliance with this
3062	3062	section.
3063	3063	Sec. 2202.413. PLAY OF GAMBLING GAME WITH PUBLIC ASSISTANCE
3064	3064	FUNDS. (a) A person commits an offense if the person intentionally
3065	3065	or knowingly plays a gambling game with public assistance funds
3066	3066	issued to the person under:
3067	3067	(1) Chapter 31, Human Resources Code; or
3068	3068	(2) Chapter 33, Human Resources Code, including funds
3069	3069	issued on electronic benefit transfer cards administered under that
3070	3070	chapter.
3071	3071	(b) An offense under this section is a Class C misdemeanor.
3072	3072	Sec. 2202.414. EFFECT ON OTHER LAWS. A person who is
3073	3073	subject to prosecution under an offense under this subchapter and
3074	3074	an offense under Chapter 47, Penal Code, may be prosecuted under
3075	3075	either or both laws.
3076	3076	SUBCHAPTER J. PROBLEM GAMBLING AND ADDICTION
3077	3077	Sec. 2202.451. PROBLEM GAMBLING AND ADDICTION GRANT FUND.
3078	3078	(a) The problem gambling and addiction grant fund is an account in
3079	3079	the general revenue fund.
3080	3080	(b) Money credited to the fund may be used only for awarding
3081	3081	grants under this subchapter. The fund shall be administered in
3082	3082	accordance with this subchapter.
3083	3083	(c) An expenditure from the problem gambling and addiction
3084	3084	grant fund shall be made in accordance with the General
3085	3085	Appropriations Act.
3086	3086	(d) Grants from money in the fund may be used only to:
3087	3087	(1) provide treatment for problem gambling, gambling
3088	3088	addiction, alcoholism, drug abuse, and other addictive behaviors;
3089	3089	and
3090	3090	(2) provide funding for research related to the impact
3091	3091	of gambling on state residents.
3092	3092	Sec. 2202.452. GRANT PROGRAM. (a) From funds appropriated
3093	3093	for the purpose, the commission shall administer a grant program to
3094	3094	provide assistance for the direct treatment of persons diagnosed as
3095	3095	suffering from pathological gambling and other addictive behaviors
3096	3096	and to provide funding for research regarding the impact of
3097	3097	gambling on residents of this state.
3098	3098	(b) Research grants awarded under this section may include
3099	3099	grants for determining the effectiveness of education and
3100	3100	prevention efforts on the prevalence of pathological gambling in
3101	3101	this state.
3102	3102	(c) A grant may be made only after open solicitation of
3103	3103	proposals and evaluation of proposals against criteria established
3104	3104	by commission rule.
3105	3105	(d) Public and private entities are eligible to apply for
3106	3106	and receive grants under this section.
3107	3107	(e) A grant made in accordance with this section shall be
3108	3108	made from funds appropriated to the commission from the problem
3109	3109	gambling and addiction grant fund and funds provided to the
3110	3110	commission in accordance with Section 2202.453.
3111	3111	Sec. 2202.453. GIFTS AND DONATIONS. The commission may
3112	3112	solicit and accept grants, gifts, contributions, or bequests made
3113	3113	for the purpose of funding grants under this subchapter and expend
3114	3114	the money for a purpose described by Section 2202.452 for which the
3115	3115	money was received.
3116	3116	Sec. 2202.454. RULES. (a) The commission shall administer
3117	3117	this subchapter and adopt rules establishing criteria for
3118	3118	qualification to receive grants and other matters considered
3119	3119	necessary by the commission for the administration of this
3120	3120	subchapter.
3121	3121	(b) The rules adopted by the commission must require that
3122	3122	each recipient of a grant report at least annually to the commission
3123	3123	the grantee's measurable achievement of specific outcome goals.
3124	3124	CHAPTER 2203. TRIBAL GAMING AGREEMENTS
3125	3125	Sec. 2203.001. DUTY OF GOVERNOR. The governor shall
3126	3126	execute, on behalf of this state, with a federally recognized
3127	3127	Indian tribe with Indian lands in this state a gaming agreement
3128	3128	consistent with the provisions of 25 U.S.C. Section 2710(d) and
3129	3129	containing the terms set forth in Section 2203.002 not later than
3130	3130	the 180th day after the date the governor receives a request from
3131	3131	the tribe, accompanied by or in the form of a duly enacted
3132	3132	resolution of the tribe's governing body, to enter into the gaming
3133	3133	agreement.
3134	3134	Sec. 2203.002. MODEL TRIBAL GAMING AGREEMENT. (a) A gaming
3135	3135	agreement executed under Section 2203.001 must be in the form and
3136	3136	contain the provisions as follows:
3137	3137	GAMING AGREEMENT GOVERNING GAMING OPERATIONS Between the
3138	3138	(Name of Tribe) and the STATE OF TEXAS
3139	3139	This agreement is made and entered into by and between the
3140	3140	(Name of Tribe), a federally recognized Indian Tribe ("Tribe"), and
3141	3141	the State of Texas ("State"), with respect to gaming on the Tribe's
3142	3142	Indian lands (as defined by Chapter 2201, Texas Occupations Code).
3143	3143	This agreement governs gambling on Indian lands held in trust
3144	3144	by the United States on January 1, 1998, for the Tribe.
3145	3145	Pursuant to express provisions of the Ysleta del Sur Pueblo
3146	3146	and Alabama and Coushatta Indian Tribes of Texas Restoration Act
3147	3147	(Pub. L. No. 100-89) addressing jurisdiction, the Tribe may engage
3148	3148	in any gaming activities on Indian lands that another person may be
3149	3149	authorized to engage in within Texas under Subtitle E, Title 13,
3150	3150	Texas Occupations Code.
3151	3151	The Tribe shall regulate the gaming activities authorized
3152	3152	under this agreement on the Tribe's Indian lands.
3153	3153	The Tribe shall adopt rules and procedures substantially
3154	3154	similar to the requirements of Subtitle E, Title 13, Texas
3155	3155	Occupations Code, except that any regulatory oversight established
3156	3156	under that subtitle for gaming conducted under a license shall be
3157	3157	exercised by the Tribe for gaming conducted under this agreement.
3158	3158	The Tribe may adopt the rules and procedures by reference to any
3159	3159	provisions of Subtitle E, Title 13, Texas Occupations Code.
3160	3160	(b) A gaming agreement under Subsection (a) between this
3161	3161	state and a federally recognized Indian tribe that is not subject to
3162	3162	the Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
3163	3163	Texas Restoration Act (Pub. L. No. 100-89) may not include the
3164	3164	provision related to that Act.
3165	3165	Sec. 2203.003. NEGOTIATION FOR DIFFERENT TRIBAL GAMING
3166	3166	AGREEMENT TERMS. (a) This chapter does not limit the ability of a
3167	3167	federally recognized Indian tribe to request that a gaming
3168	3168	agreement be negotiated with this state on terms that are different
3169	3169	from those set forth in the gaming agreement under Section
3170	3170	2203.002, or the ability of this state to engage in negotiations and
3171	3171	to reach agreement under any applicable federal law.
3172	3172	(b) In offering to enter into a gaming agreement with Indian
3173	3173	tribes in this state under Section 2203.002, and excluding
3174	3174	assessments, authorized under the Indian Gaming Regulatory Act
3175	3175	(Pub. L. No. 100-497), by this state of the amounts necessary to
3176	3176	defray state costs of regulating activities as provided under the
3177	3177	gaming agreement, nothing in this chapter may be construed to mean
3178	3178	that:
3179	3179	(1) this state is imposing any tax, fee, charge, or
3180	3180	other assessment on an Indian tribe or on any other person or entity
3181	3181	authorized by an Indian tribe as a condition to engaging in a Class
3182	3182	III activity as defined in the Indian Gaming Regulatory Act (Pub. L.
3183	3183	No. 100-497); or
3184	3184	(2) this state is refusing to enter into gaming
3185	3185	agreement negotiations based on the lack of authority of this state
3186	3186	or a political subdivision of this state to impose the tax, fee,
3187	3187	charge, or other assessment.
3188	3188	(c) If any federally recognized Indian tribe with
3189	3189	jurisdiction over Indian lands in this state requests that the
3190	3190	governor enter into negotiations for a gaming agreement under
3191	3191	federal law applicable to the Indian tribe, including the Indian
3192	3192	Gaming Regulatory Act (Pub. L. No. 100-497), on terms different
3193	3193	from those prescribed in the gaming agreement set forth in Section
3194	3194	2203.002, the governor shall enter into those negotiations under
3195	3195	the federal law applicable to the tribe and without preconditions
3196	3196	and is authorized to reach agreement and execute the agreement on
3197	3197	behalf of this state.
3198	3198	Sec. 2203.004. IMPLEMENTATION OF GAMING AGREEMENT. The
3199	3199	governor shall execute any documents necessary to implement a
3200	3200	gaming agreement authorized under this chapter.
3201	3201	Sec. 2203.005. INCORPORATION INTO STATE LAW. The model
3202	3202	gaming agreement set out in Section 2203.002 is state law, and the
3203	3203	operation of gaming authorized under the agreement is expressly
3204	3204	authorized as a matter of state law for any Indian tribe entering
3205	3205	into the gaming agreement in accordance with this chapter.
3206	3206	Sec. 2203.006. REGULATORY MONEY RECEIVED UNDER GAMING
3207	3207	AGREEMENT. All money received by the commission under a gaming
3208	3208	agreement for regulatory costs incurred relative to tribal gaming
3209	3209	operations may be used only to defray expenses of the commission
3210	3210	incurred in the oversight, compliance with, and enforcement of
3211	3211	gaming operations conducted pursuant to a gaming agreement.
3212	3212	Sec. 2203.007. INJUNCTION; CIVIL PENALTY. (a) If the
3213	3213	commission, the appropriate governing body for an Indian tribe, or
3214	3214	the attorney general has reason to believe that this chapter has
3215	3215	been or is about to be violated, the attorney general may petition a
3216	3216	court for appropriate injunctive relief to restrain the violation.
3217	3217	Filing of the petition does not waive applicable sovereign
3218	3218	immunity.
3219	3219	(b) Venue for an action by this state seeking injunctive
3220	3220	relief is in a district court in Travis County.
3221	3221	(c) If the court finds that this chapter has been knowingly
3222	3222	violated, the court shall order all proceeds from any illegal
3223	3223	casino gaming or sports wagering to be forfeited to the appropriate
3224	3224	governing body as a civil penalty.
3225	3225	(d) The remedies provided by this section are not exclusive.
3226	3226	The commission may suspend or revoke a license, impose an
3227	3227	administrative penalty, or seek injunctive or civil penalties or
3228	3228	both, depending on the severity of the violation.
3229	3229	SECTION 2. Article 2.12, Code of Criminal Procedure, is
3230	3230	amended to read as follows:
3231	3231	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
3232	3232	officers:
3233	3233	(1) sheriffs, their deputies, and those reserve
3234	3234	deputies who hold a permanent peace officer license issued under
3235	3235	Chapter 1701, Occupations Code;
3236	3236	(2) constables, deputy constables, and those reserve
3237	3237	deputy constables who hold a permanent peace officer license issued
3238	3238	under Chapter 1701, Occupations Code;
3239	3239	(3) marshals or police officers of an incorporated
3240	3240	city, town, or village, and those reserve municipal police officers
3241	3241	who hold a permanent peace officer license issued under Chapter
3242	3242	1701, Occupations Code;
3243	3243	(4) rangers, officers, and members of the reserve
3244	3244	officer corps commissioned by the Public Safety Commission and the
3245	3245	Director of the Department of Public Safety;
3246	3246	(5) investigators of the district attorneys', criminal
3247	3247	district attorneys', and county attorneys' offices;
3248	3248	(6) law enforcement agents of the Texas Alcoholic
3249	3249	Beverage Commission;
3250	3250	(7) each member of an arson investigating unit
3251	3251	commissioned by a city, a county, or the state;
3252	3252	(8) officers commissioned under Section 37.081,
3253	3253	Education Code, or Subchapter E, Chapter 51, Education Code;
3254	3254	(9) officers commissioned by the General Services
3255	3255	Commission;
3256	3256	(10) law enforcement officers commissioned by the
3257	3257	Parks and Wildlife Commission;
3258	3258	(11) officers commissioned under Chapter 23,
3259	3259	Transportation Code;
3260	3260	(12) municipal park and recreational patrolmen and
3261	3261	security officers;
3262	3262	(13) security officers and investigators commissioned
3263	3263	as peace officers by the comptroller;
3264	3264	(14) officers commissioned by a water control and
3265	3265	improvement district under Section 49.216, Water Code;
3266	3266	(15) officers commissioned by a board of trustees
3267	3267	under Chapter 54, Transportation Code;
3268	3268	(16) investigators commissioned by the Texas Medical
3269	3269	Board;
3270	3270	(17) officers commissioned by:
3271	3271	(A) the board of managers of the Dallas County
3272	3272	Hospital District, the Tarrant County Hospital District, the Bexar
3273	3273	County Hospital District, or the El Paso County Hospital District
3274	3274	under Section 281.057, Health and Safety Code;
3275	3275	(B) the board of directors of the Ector County
3276	3276	Hospital District under Section 1024.117, Special District Local
3277	3277	Laws Code;
3278	3278	(C) the board of directors of the Midland County
3279	3279	Hospital District of Midland County, Texas, under Section 1061.121,
3280	3280	Special District Local Laws Code; and
3281	3281	(D) the board of hospital managers of the Lubbock
3282	3282	County Hospital District of Lubbock County, Texas, under Section
3283	3283	1053.113, Special District Local Laws Code;
3284	3284	(18) county park rangers commissioned under
3285	3285	Subchapter E, Chapter 351, Local Government Code;
3286	3286	(19) investigators employed by the Texas Racing
3287	3287	Commission;
3288	3288	(20) officers commissioned under Chapter 554,
3289	3289	Occupations Code;
3290	3290	(21) officers commissioned by the governing body of a
3291	3291	metropolitan rapid transit authority under Section 451.108,
3292	3292	Transportation Code, or by a regional transportation authority
3293	3293	under Section 452.110, Transportation Code;
3294	3294	(22) investigators commissioned by the attorney
3295	3295	general under Section 402.009, Government Code;
3296	3296	(23) security officers and investigators commissioned
3297	3297	as peace officers under Chapter 466, Government Code;
3298	3298	(24) officers appointed by an appellate court under
3299	3299	Subchapter F, Chapter 53, Government Code;
3300	3300	(25) officers commissioned by the state fire marshal
3301	3301	under Chapter 417, Government Code;
3302	3302	(26) an investigator commissioned by the commissioner
3303	3303	of insurance under Section 701.104, Insurance Code;
3304	3304	(27) apprehension specialists and inspectors general
3305	3305	commissioned by the Texas Juvenile Justice Department as officers
3306	3306	under Sections 242.102 and 243.052, Human Resources Code;
3307	3307	(28) officers appointed by the inspector general of
3308	3308	the Texas Department of Criminal Justice under Section 493.019,
3309	3309	Government Code;
3310	3310	(29) investigators commissioned by the Texas
3311	3311	Commission on Law Enforcement under Section 1701.160, Occupations
3312	3312	Code;
3313	3313	(30) commission investigators commissioned by the
3314	3314	Texas Private Security Board under Section 1702.061, Occupations
3315	3315	Code;
3316	3316	(31) the fire marshal and any officers, inspectors, or
3317	3317	investigators commissioned by an emergency services district under
3318	3318	Chapter 775, Health and Safety Code;
3319	3319	(32) officers commissioned by the State Board of
3320	3320	Dental Examiners under Section 254.013, Occupations Code, subject
3321	3321	to the limitations imposed by that section;
3322	3322	(33) investigators commissioned by the Texas Juvenile
3323	3323	Justice Department as officers under Section 221.011, Human
3324	3324	Resources Code; [and]
3325	3325	(34) the fire marshal and any related officers,
3326	3326	inspectors, or investigators commissioned by a county under
3327	3327	Subchapter B, Chapter 352, Local Government Code; and
3328	3328	(35) investigators, security officers, and
3329	3329	enforcement officers commissioned by the Texas Gaming Commission
3330	3330	under Chapter 2201, Occupations Code.
3331	3331	SECTION 3. Subchapter F, Chapter 411, Government Code, is
3332	3332	amended by adding Section 411.1085 to read as follows:
3333	3333	Sec. 411.1085. ACCESS TO CRIMINAL HISTORY RECORD
3334	3334	INFORMATION: TEXAS GAMING COMMISSION. (a) The Texas Gaming
3335	3335	Commission is entitled to obtain from the department criminal
3336	3336	history record information maintained by the department that
3337	3337	relates to a person who, under Subtitle E, Title 13, Occupations
3338	3338	Code, is:
3339	3339	(1) a casino employee or an applicant for an
3340	3340	occupational license;
3341	3341	(2) a person required to hold a license or be named in
3342	3342	a license application under that subtitle;
3343	3343	(3) a person who manufactures or distributes casino
3344	3344	equipment or supplies or a representative of a person who
3345	3345	manufactures or distributes casino equipment or supplies offered to
3346	3346	the casino;
3347	3347	(4) a person who has submitted a written bid or
3348	3348	proposal to the commission in connection with the procurement of
3349	3349	goods or services by the commission, if the amount of the bid or
3350	3350	proposal exceeds $500;
3351	3351	(5) a person who proposes to enter into or who has a
3352	3352	contract with the commission to supply goods or services to the
3353	3353	commission;
3354	3354	(6) if a person described in Subdivisions (3) through
3355	3355	(5) is not an individual, each individual who:
3356	3356	(A) is an officer or director of the person;
3357	3357	(B) holds more than five percent of the stock in
3358	3358	the person;
3359	3359	(C) holds an equitable interest greater than five
3360	3360	percent in the person;
3361	3361	(D) shares or will share in the profits, other
3362	3362	than stock dividends, of the person;
3363	3363	(E) participates in managing the affairs of the
3364	3364	person; or
3365	3365	(F) is an employee of the person who:
3366	3366	(i) enters or will enter a casino in this
3367	3367	state to perform a business function; or
3368	3368	(ii) is or will be in close proximity to
3369	3369	money from casino gaming or sports wagering;
3370	3370	(7) an employee or prospective employee, including the
3371	3371	executive director or a prospective executive director, of the
3372	3372	commission; or
3373	3373	(8) a person described under Subdivisions (1)-(7)
3374	3374	whose license is renewed under that subtitle.
3375	3375	(b) Criminal history record information obtained by the
3376	3376	Texas Gaming Commission under Subsection (a) may not be released or
3377	3377	disclosed to any person except on court order or as provided by
3378	3378	Subsection (c).
3379	3379	(c) The Texas Gaming Commission is not prohibited from
3380	3380	disclosing to the person who is the subject of the criminal history
3381	3381	record information the dates and places of arrests, offenses, and
3382	3382	dispositions contained in the criminal history record information.
3383	3383	SECTION 4. Section 2028.2041, Occupations Code, is amended
3384	3384	to read as follows:
3385	3385	Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS. (a) In each
3386	3386	state fiscal biennium, the comptroller shall deposit the amounts
3387	3387	allocated under Section 151.801(c-3), Tax Code, into the escrow
3388	3388	account established under Section 2028.204(b), until the
3389	3389	comptroller determines the amount deposited into the account in
3390	3390	that fiscal biennium, excluding amounts deposited to the account
3391	3391	under Section 2202.252, equals the greater of:
3392	3392	(1) the amount appropriated to the commission for the
3393	3393	purposes of Section 2028.204 for that fiscal biennium; or
3394	3394	(2) $50 million.
3395	3395	(b) Once the comptroller determines the greater of the
3396	3396	amount described by Subsection (a)(1) or (2) has been deposited
3397	3397	during a state fiscal biennium into the escrow account established
3398	3398	under Section 2028.204(b), excluding amounts deposited to the
3399	3399	account under Section 2202.252, for the remainder of that fiscal
3400	3400	biennium the comptroller shall deposit the amounts allocated under
3401	3401	Section 151.801(c-3), Tax Code, into the general revenue fund.
3402	3402	(c) The balance of the escrow account established under
3403	3403	Section 2028.204(b) shall not exceed $50 million, excluding amounts
3404	3404	deposited to the account under Section 2202.252.
3405	3405	SECTION 5. Section 47.02(c), Penal Code, is amended to read
3406	3406	as follows:
3407	3407	(c) It is a defense to prosecution under this section that
3408	3408	the actor reasonably believed that the conduct:
3409	3409	(1) was permitted under Chapter 2001, Occupations
3410	3410	Code;
3411	3411	(2) was permitted under Chapter 2002, Occupations
3412	3412	Code;
3413	3413	(3) was permitted under Chapter 2004, Occupations
3414	3414	Code;
3415	3415	(4) consisted entirely of participation in the state
3416	3416	lottery authorized by the State Lottery Act (Chapter 466,
3417	3417	Government Code);
3418	3418	(5) was permitted under Subtitle A-1, Title 13,
3419	3419	Occupations Code (Texas Racing Act); [or]
3420	3420	(6) consisted entirely of participation in a drawing
3421	3421	for the opportunity to participate in a hunting, fishing, or other
3422	3422	recreational event conducted by the Parks and Wildlife Department;
3423	3423	or
3424	3424	(7) consisted entirely of participation in casino
3425	3425	gaming or sports wagering authorized under an appropriate license
3426	3426	issued under Subtitle E, Title 13, Occupations Code.
3427	3427	SECTION 6. Section 47.03, Penal Code, is amended by adding
3428	3428	Subsection (c) to read as follows:
3429	3429	(c) It is a defense to prosecution under this section that
3430	3430	the actor reasonably believed that the conduct was permitted under
3431	3431	Subtitle E, Title 13, Occupations Code.
3432	3432	SECTION 7. Section 47.04, Penal Code, is amended by adding
3433	3433	Subsection (d) to read as follows:
3434	3434	(d) It is a defense to prosecution under this section that
3435	3435	the actor reasonably believed that the conduct was permitted under
3436	3436	Subtitle E, Title 13, Occupations Code.
3437	3437	SECTION 8. Section 47.05(b), Penal Code, is amended to read
3438	3438	as follows:
3439	3439	(b) It is an exception to the application of Subsection (a)
3440	3440	that the information communicated is intended for use in placing a
3441	3441	lawful wager under Subtitle E, Title 13, Occupations Code, or
3442	3442	Chapter 2027, Occupations Code, and is not communicated in
3443	3443	violation of Section 2033.013, Occupations Code.
3444	3444	SECTION 9. Section 47.06(f), Penal Code, is amended to read
3445	3445	as follows:
3446	3446	(f) It is a defense to prosecution under Subsection (a) or
3447	3447	(c) that the person owned, manufactured, transferred, or possessed
3448	3448	the gambling device, equipment, or paraphernalia for the sole
3449	3449	purpose of shipping it:
3450	3450	(1) to a person authorized under an appropriate
3451	3451	license issued under Subtitle E, Title 13, Occupations Code; or
3452	3452	(2) to another jurisdiction where the possession or
3453	3453	use of the device, equipment, or paraphernalia was legal.
3454	3454	SECTION 10. Section 47.09(a), Penal Code, is amended to
3455	3455	read as follows:
3456	3456	(a) It is a defense to prosecution under this chapter that
3457	3457	the conduct:
3458	3458	(1) was authorized under:
3459	3459	(A) Chapter 2001, Occupations Code;
3460	3460	(B) Chapter 2002, Occupations Code;
3461	3461	(C) Chapter 2004, Occupations Code;
3462	3462	(D) Subtitle A-1, Title 13, Occupations Code
3463	3463	(Texas Racing Act); [or]
3464	3464	(E) Chapter 280, Finance Code; or
3465	3465	(F) Subtitle E, Title 13, Occupations Code;
3466	3466	(2) consisted entirely of participation in the state
3467	3467	lottery authorized by Chapter 466, Government Code; or
3468	3468	(3) was a necessary incident to the operation of the
3469	3469	state lottery and was directly or indirectly authorized by:
3470	3470	(A) Chapter 466, Government Code;
3471	3471	(B) the lottery division of the Texas Lottery
3472	3472	Commission;
3473	3473	(C) the Texas Lottery Commission; or
3474	3474	(D) the director of the lottery division of the
3475	3475	Texas Lottery Commission.
3476	3476	SECTION 11. (a) Funds in the Texas casino gaming fund may
3477	3477	be appropriated only to the Texas Gaming Commission for the
3478	3478	operation of the commission and the administration of Subtitle E,
3479	3479	Title 13, Occupations Code, as added by this Act, for the biennium
3480	3480	ending August 31, 2025.
3481	3481	(b) Not later than February 1, 2024, the initial members of
3482	3482	the Texas Gaming Commission shall be appointed in accordance with
3483	3483	Chapter 2201, Occupations Code, as added by this Act. In making the
3484	3484	initial appointments, the governor shall designate one member to a
3485	3485	term expiring February 1, 2025, two members to terms expiring
3486	3486	February 1, 2027, and two members to terms expiring February 1,
3487	3487	2029.
3488	3488	SECTION 12. (a) The Texas Gaming Commission Legislative
3489	3489	Oversight Committee is created to facilitate the creation of the
3490	3490	Texas Gaming Commission and the assignment of powers, duties,
3491	3491	functions, programs, and activities of the commission as provided
3492	3492	by this Act.
3493	3493	(b) The committee is composed of seven members as follows:
3494	3494	(1) two members of the senate, appointed by the
3495	3495	lieutenant governor not later than December 1, 2023;
3496	3496	(2) two members of the house of representatives,
3497	3497	appointed by the speaker of the house of representatives not later
3498	3498	than December 1, 2023; and
3499	3499	(3) three members of the public, appointed by the
3500	3500	governor not later than December 1, 2023.
3501	3501	(c) Once the members of the Texas Gaming Commission have
3502	3502	been appointed and have selected an executive director, the
3503	3503	executive director of the Texas Gaming Commission shall serve as an
3504	3504	ex officio member of the committee.
3505	3505	(d) A member of the committee serves at the pleasure of the
3506	3506	appointing official.
3507	3507	(e) The lieutenant governor and the speaker of the house of
3508	3508	representatives shall alternate designating a presiding officer
3509	3509	from among their respective appointments. The speaker of the house
3510	3510	of representatives shall make the first designation.
3511	3511	(f) A member of the committee may not receive compensation
3512	3512	for serving on the committee but is entitled to reimbursement for
3513	3513	travel expenses incurred by the member while conducting the
3514	3514	business of the committee as provided by the General Appropriations
3515	3515	Act.
3516	3516	(g) The committee shall:
3517	3517	(1) facilitate the assignment of powers, duties,
3518	3518	functions, programs, and activities of the Texas Gaming Commission
3519	3519	as provided by this Act;
3520	3520	(2) adopt an initial training program to meet the
3521	3521	requirements of Section 2201.058, Occupations Code, as added by
3522	3522	this Act, to train the initial appointees of the Texas Gaming
3523	3523	Commission;
3524	3524	(3) with assistance from the Texas Gaming Commission,
3525	3525	advise the executive director and members of the Texas Gaming
3526	3526	Commission concerning the powers, duties, functions, programs, and
3527	3527	activities established under this Act and the funds and obligations
3528	3528	that are related to the powers, duties, functions, programs, or
3529	3529	activities;
3530	3530	(4) meet at the call of the presiding officer;
3531	3531	(5) research, take public testimony, and issue reports
3532	3532	on other appropriate issues or specific issues requested by the
3533	3533	lieutenant governor, speaker of the house of representatives, or
3534	3534	governor; and
3535	3535	(6) review specific recommendations for legislation
3536	3536	proposed by the Texas Gaming Commission or the other agencies.
3537	3537	(h) The committee may request reports and other information
3538	3538	from the Texas Gaming Commission, other state agencies, and the
3539	3539	attorney general relating to casino gaming and sports wagering in
3540	3540	this state and other appropriate issues.
3541	3541	(i) The committee shall use existing staff of the senate,
3542	3542	the house of representatives, and the Texas Legislative Council to
3543	3543	assist the committee in performing its duties under this section.
3544	3544	(j) Chapter 551, Government Code, applies to the committee.
3545	3545	(k) The committee shall report to the governor, lieutenant
3546	3546	governor, and speaker of the house of representatives not later
3547	3547	than November 15 of each even-numbered year. The report must
3548	3548	include:
3549	3549	(1) identification of significant issues within
3550	3550	casino gaming and sports wagering regulation, with recommendations
3551	3551	for action;
3552	3552	(2) an analysis of the effectiveness and efficiency of
3553	3553	casino gaming and sports wagering regulation, with recommendations
3554	3554	for any necessary research; and
3555	3555	(3) recommendations for legislative action.
3556	3556	SECTION 13. (a) The assignment of powers, duties,
3557	3557	functions, programs, and activities of the Texas Gaming Commission
3558	3558	must be accomplished in accordance with a schedule included in a
3559	3559	work plan developed by the executive director and members of the
3560	3560	Texas Gaming Commission and submitted to the governor and the
3561	3561	Legislative Budget Board not later than September 1, 2024. The
3562	3562	executive director and commission members shall provide to the
3563	3563	governor and the Legislative Budget Board work plan status reports
3564	3564	and updates on at least a quarterly basis following submission of
3565	3565	the initial work plan. The work plan must be made available to the
3566	3566	public.
3567	3567	(b) Not later than June 1, 2024, the Texas Gaming Commission
3568	3568	shall hold a public hearing and accept public comment regarding the
3569	3569	work plan required to be developed by the executive director and
3570	3570	members of the Texas Gaming Commission under this section.
3571	3571	(c) In developing the work plan, the executive director and
3572	3572	members of the Texas Gaming Commission shall hold public hearings
3573	3573	in various geographic areas in this state before submitting the
3574	3574	plan to the governor and the Legislative Budget Board as required by
3575	3575	this section.
3576	3576	(d) The Texas Gaming Commission shall implement the powers,
3577	3577	duties, functions, programs, and activities assigned to the
3578	3578	commission under this Act in accordance with a work plan designed by
3579	3579	the commission to ensure that the implementation of gaming
3580	3580	regulation under this Act is accomplished in a careful and
3581	3581	deliberative manner.
3582	3582	(e) A work plan designed by the commission under this
3583	3583	section must include the following phases:
3584	3584	(1) a planning phase, during which the commission will
3585	3585	focus on and stabilize the organization of the agency's powers,
3586	3586	duties, functions, programs, and activities, and which must
3587	3587	include:
3588	3588	(A) initiation of recommendations made by the
3589	3589	Texas Gaming Commission Legislative Oversight Committee;
3590	3590	(B) creation of interagency and intra-agency
3591	3591	steering committees;
3592	3592	(C) development of global visions, goals, and
3593	3593	organizational strategies; and
3594	3594	(D) development of communications and risk
3595	3595	management plans;
3596	3596	(2) an integration phase, during which the commission
3597	3597	will identify opportunities and problems and design customized
3598	3598	solutions for those problems, and which must include:
3599	3599	(A) identification of key issues related to costs
3600	3600	or legal requirements for other commission activities;
3601	3601	(B) planning for daily operations; and
3602	3602	(C) validation of fiscal and program synergies;
3603	3603	(3) an optimization phase, during which the commission
3604	3604	will complete and expand on the initial transitions, and which must
3605	3605	include:
3606	3606	(A) optimization of initial implementation
3607	3607	initiatives;
3608	3608	(B) use of enterprise teaming operations;
3609	3609	(C) building infrastructures to support and
3610	3610	facilitate changes in gaming regulation and oversight; and
3611	3611	(D) identification and use of beneficial assets
3612	3612	management and facilities approaches; and
3613	3613	(4) a transformation phase, during which the
3614	3614	commission will continue implementing initial and additional
3615	3615	changes in gaming regulation and oversight, and which must include
3616	3616	implementation of changes in agency management activities.
3617	3617	SECTION 14. As soon as practicable after the effective date
3618	3618	of this Act, the Texas Gaming Commission shall adopt the rules
3619	3619	necessary to implement casino gaming and sports wagering in
3620	3620	accordance with Chapter 2202, Occupations Code, as added by this
3621	3621	Act, and in anticipation of receiving license applications not
3622	3622	later than September 1, 2025.
3623	3623	SECTION 15. This Act takes effect on the date on which the
3624	3624	constitutional amendment proposed by H.J.R. No. 155, 88th
3625	3625	Legislature, Regular Session, 2023, takes effect. If that
3626	3626	amendment is not approved by the voters, this Act has no effect.