88R21595 BEE-F
By: Kuempel H.B. No. 2843
Substitute the following for H.B. No. 2843:
By: Hernandez C.S.H.B. No. 2843
A BILL TO BE ENTITLED
AN ACT
relating to the authorization, licensing, and regulation of casino
gaming and sports wagering in this state, to the creation, powers,
and duties of the Texas Gaming Commission, to the support of the
horse racing industry and reform of horse racing and greyhound
racing, and to other provisions related to gambling; imposing and
authorizing administrative and civil penalties; imposing taxes;
imposing and authorizing fees; requiring occupational licenses;
creating criminal offenses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 13, Occupations Code, is amended by adding
Subtitle E to read as follows:
SUBTITLE E. CASINO GAMING AND SPORTS WAGERING REGULATED BY TEXAS
GAMING COMMISSION
CHAPTER 2201. GENERAL PROVISIONS; TEXAS GAMING COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2201.001. DEFINITIONS. In this subtitle:
(1) "Active casino license" means a casino license
issued by the commission that has not:
(A) expired without being renewed;
(B) been revoked; or
(C) been permanently surrendered.
(2) "Affiliate" means a person who, directly or
indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with another person. A
person is considered to control a company if the person
beneficially owns more than a five percent equity interest in the
company under the beneficial ownership rules adopted by the
commission.
(3) "Applicant" means a person who submits an
application for a casino license, an operator license, an
occupational license, a manufacturer license, a casino service
license, or a qualification to hold an equity interest in a casino
license holder.
(4) "Associated equipment" means any equipment used in
connection with casino gaming or sports wagering, including a
mechanical, electromechanical, or electronic contrivance,
component, or machine that would not otherwise be classified as a
gaming device. The term includes dice, playing cards, links
connecting progressive slot machines, equipment affecting the
proper reporting of gross casino gaming revenue or gross sports
wagering revenue, computerized systems of betting for sports
wagering, computerized systems or software for monitoring slot
machines, and devices for weighing or counting money.
(5) "Casino" means facilities within a destination
resort at which casino gaming or sports wagering is conducted for
profit, as authorized by Chapters 2202 and 2203.
(6) "Casino gaming," "casino game," or "gambling
game":
(A) means any game or similar activity that
involves placing a bet, as defined by Section 47.01, Penal Code, for
consideration;
(B) includes, when played for consideration
using money, property, checks, credit, or a representative of
value:
(i) a banking game, percentage game, or
game of chance played with cards, dice, or a mechanical,
electromechanical, electronic, or other device; and
(ii) a game or device approved by the
commission as a casino game; and
(C) does not include:
(i) placing, receiving, or otherwise
knowingly transmitting a bet by a means that requires the use of the
Internet, except for placing, receiving, or otherwise knowingly
transmitting a bet using the Internet in connection with the play of
games or devices that are offered by a casino license holder and
that are played on-site at a casino;
(ii) playing any mechanical,
electromechanical, electronic, or other device designed, made, and
adapted solely for bona fide amusement purposes if the device
rewards the player exclusively with noncash merchandise prizes,
toys, or novelties, or a representation of value redeemable for
those items, that have a wholesale value available from a single
play of the game or device of not more than 10 times the amount
charged to play the game or device once or $5, whichever is less;
(iii) bingo authorized under Chapter 2001;
(iv) charitable raffles authorized under
Chapter 2002;
(v) the state lottery conducted under
Chapter 466, Government Code;
(vi) sports wagering; or
(vii) the placing of a bet:
(a) that occurs in a private place, as
defined by Section 47.01, Penal Code;
(b) in connection with which no person
receives any economic benefit other than personal winnings; and
(c) that, except for the advantage of
skill or luck, involves risks of losing and chances of winning that
are the same for all participants.
(7) "Casino license" means a license issued under
Section 2202.051.
(8) "Casino service" means the provision of goods or
services, including security service and gaming schools, to a
person holding a casino license or operator license under this
subtitle, other than a service requiring a manufacturer license.
(9) "Casino service license" means a license issued
under Section 2202.152.
(10) "Commission" means the Texas Gaming Commission.
(11) "Company" means a corporation, partnership,
limited partnership, trust, association, joint stock company,
joint venture, limited liability company, or other form of business
organization. The term does not include a sole proprietorship or
natural person.
(12) "Credit instrument" means a writing that
evidences a casino gaming debt or sports wagering debt owed to a
casino license holder at the time the debt is created. The term
includes any writing accepted in consolidation, redemption, or
payment of a prior instrument.
(13) "Destination resort" means a mixed-use
development consisting of casino gaming facilities and a
combination of various tourism amenities and facilities, including
hotels, restaurants, meeting facilities, attractions,
entertainment facilities, and shopping centers.
(14) "Director" means a member of the board of
directors of a corporation or a person performing similar functions
for a company that is not a corporation.
(15) "Education" means:
(A) public education;
(B) higher education, including the creation of a
permanent fund for the benefit of higher education institutions not
included in the Permanent University Fund established by Section
11, Article VII, Texas Constitution; and
(C) adult education related to responsible
gaming.
(16) "Equity interest" means a proprietary interest,
right, or claim allowing the holder to vote on matters of
organizational governance or participate in the profits and
residual assets of a company, including common and preferred stock
in a corporation, a general or limited partnership interest in a
partnership, a similar interest in any other form of business
organization, and a warrant, right, or similar interest to
subscribe for a proprietary right or claim or that is convertible
into a proprietary right or claim, with or without the payment of
additional consideration.
(17) "Executive director" means the executive
director of the commission.
(18) "Gaming agreement" means an agreement authorized
under Chapter 2202 or 2203 between this state and a federally
recognized Indian tribe with Indian lands in this state under which
this state allows the tribe to conduct limited casino gaming
activities authorized under Chapter 2202 or 2203 or applicable
federal law.
(19) "Gaming device" means a mechanical,
electromechanical, or electronic contrivance, component, or
machine, including a slot machine, used in connection with casino
gaming or sports wagering that affects the result of a bet by
determining win or loss. The term includes a system for processing
information that can alter the normal criteria of random selection,
affect the operation of a game, or determine the outcome of a game.
(20) "Gaming employee":
(A) means an individual directly involved in the
operation or conduct of casino gaming or sports wagering in a casino
performing a service in a capacity that the commission finds
appropriate for occupational licensing under Section 2202.102 and
includes:
(i) a boxman, a cashier, change personnel,
counting room personnel, a dealer, a floor person, a host empowered
to extend credit or complimentary services, a keno runner, a keno
writer, a machine mechanic, or security personnel;
(ii) a shift or pit boss or a supervisor or
manager involved in casino gaming or sports wagering activities;
(iii) accounting or internal auditing
personnel directly involved in recordkeeping or the examination of
records generated from casino gaming or sports wagering activities;
and
(iv) a junketeer or other independent agent
whose compensation is based on the amount of money a patron wagers
or loses or who is paid per patron more than the price of admission;
and
(B) does not include bartenders, cocktail
waitresses, or other individuals engaged exclusively in preparing
or serving food or beverages or individuals providing nominal or
maintenance services.
(21) "Gaming-related business" means any business
engaged in the service or support of casino gaming or sports
wagering activities regulated under this subtitle or commission
rule.
(22) "Gross casino gaming revenue":
(A) means the total amount of the following, less
the sum of all money paid as losses to patrons playing a casino
game, the amounts paid to purchase from independent financial
institutions annuities to fund losses paid to patrons playing a
casino game, and the items deductible as losses under Section
2202.253:
(i) money received by a casino license
holder from players playing casino games;
(ii) money received by a casino license
holder in payment for credit extended by the casino license holder
to a patron for the purposes of casino gaming; and
(iii) compensation received by a casino
license holder for conducting any casino game in which the license
holder is not a party to a wager; and
(B) does not include:
(i) counterfeit money or tokens;
(ii) coins of other countries that are
received in slot machines or other gaming devices;
(iii) cash taken in fraudulent acts
perpetrated against a casino license holder for which the license
holder is not reimbursed; or
(iv) cash received as entry fees for
contests or tournaments in which the patrons compete for prizes.
(23) "Gross sports wagering revenue":
(A) means the total amount of the following, less
the sum of all money paid as losses to patrons engaged in sports
wagering and the amounts paid to purchase from independent
financial institutions annuities to fund losses paid to patrons
engaged in sports wagering:
(i) money received by a license holder from
patrons engaged in sports wagering;
(ii) money received by a license holder in
payment for credit extended by the license holder to a patron for
the purposes of sports wagering; and
(iii) compensation received by a license
holder for conducting any sports wagering in which the license
holder is not a party to a wager; and
(B) does not include:
(i) counterfeit money or tokens;
(ii) cash taken in fraudulent acts
perpetrated against a license holder for which the license holder
is not reimbursed; or
(iii) cash received as entry fees for
contests or tournaments in which the patrons compete for prizes.
(24) "Hearing examiner" means a person authorized by
the commission to conduct hearings.
(25) "Indian lands" means land:
(A) on which gaming is permitted under the Indian
Gaming Regulatory Act (Pub. L. No. 100-497); or
(B) that was held in trust by the United States on
January 1, 1998, for the benefit of the Indian tribe pursuant to the
Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
Texas Restoration Act (Pub. L. No. 100-89).
(26) "Institutional investor" means a person, other
than a state or federal government pension plan, that meets the
requirements of a qualified institutional buyer, as that term is
defined by 17 C.F.R. Section 230.144A and is:
(A) a bank as defined by Section 3(a)(6),
Securities Exchange Act of 1934 (15 U.S.C. Section 78c(a)(6));
(B) an insurance company as defined by Section
2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section
80a-2(a)(17));
(C) an investment company registered under
Section 8, Investment Company Act of 1940 (15 U.S.C. Section
80a-8);
(D) an investment adviser registered under
Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section
80b-3);
(E) a collective trust fund as described by
Section 3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section
80a-3(c)(11));
(F) an employee benefit plan or pension fund that
is subject to the Employee Retirement Income Security Act of 1974
(29 U.S.C. Section 1001 et seq.), excluding an employee benefit
plan or pension fund sponsored by a publicly traded corporation
registered with the commission;
(G) a state or federal government pension plan;
(H) a group composed entirely of persons
specified in Paragraphs (A)-(G); or
(I) any other person the commission determines
for reasons consistent with the policies expressed in Section
2202.001.
(27) "Internet" means the largest nonproprietary
nonprofit cooperative public computer network, popularly known as
the Internet.
(28) "Key executive" means a corporation's directors
and executive officers, a partnership's general partners, a trust's
trustee, a joint venture's managing venturers, and each person
possessing similar responsibilities and authorities in any other
form of business organization.
(29) "License holder" means a person who holds a
license issued by the commission.
(30) "Live sporting event" means:
(A) a football, basketball, baseball, hockey, or
similar game;
(B) a boxing or martial arts match; or
(C) any other event designated by the commission.
(31) "Manufacturer license" means a license issued
under Section 2202.151.
(32) "Metropolitan statistical area" means a
metropolitan statistical area designated by the United States
Office of Management and Budget.
(33) "Mixed-use development" means a developed area of
land.
(34) "Occupational license" means a license issued
under Section 2202.102.
(35) "Operator" means a person other than the casino
license holder who contractually agrees to provide operational and
managerial services on behalf of the casino license holder for the
operation of any activities occurring at the casino in return for a
payment based wholly or partly on profits or receipts from the
conduct of casino gaming or sports wagering.
(36) "Operator license" means a license issued under
Section 2202.101.
(37) "Pari-mutuel wagering" has the meaning assigned
by Section 2021.003.
(38) "Patron" or "player" means a person who
contributes any part of the consideration to play a casino game or
to engage in sports wagering. For purposes of this subdivision,
consideration does not include a separate fee payable in order to
wager.
(39) "Principal manager" means a person who, as
determined under commission rules, holds or exercises managerial,
supervisory, or policy-making authority over the management or
operation of a casino gaming or sports wagering activity or casino
service that in the commission's judgment warrants the occupational
licensing as a principal manager for the protection of the public
interest. The term includes a key executive of a company license
holder.
(40) "Public safety program" means a program for crime
prevention and law enforcement, including a program designed to
prevent and prosecute crimes involving human trafficking and money
laundering.
(41) "Slot machine" means a casino game in which a
player uses a mechanical, electromechanical, electronic, or other
device that, on insertion of a coin, token, or similar object or on
payment of consideration, is available to play or operate, the play
or operation of which, wholly or partly by chance, may entitle the
player operating the machine to receive or deliver to the player a
payment for winnings in the form of cash, premiums, merchandise,
tokens, or any other thing of value.
(42) "Sports wagering" means placing a wager on a live
sporting event as authorized by this subtitle.
(43) "Table game" means a casino game played in a
casino, including roulette, keno, twenty-one, blackjack, craps,
poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer,
baccarat, pai gow, and other similar casino games. The term does not
include a slot machine.
Sec. 2201.002. APPLICATION OF SUNSET ACT. (a) The Texas
Gaming Commission is subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the commission is abolished September 1, 2033.
(b) On the date the commission is abolished under Subsection
(a), this subtitle expires.
Sec. 2201.003. REFERENCES TO LICENSE INCLUDE CERTIFICATE OF
REGISTRATION, FINDING OF SUITABILITY, OR OTHER APPROVAL. A
reference in this subtitle to a license applies to a certificate of
registration, finding of suitability, or other affirmative
regulatory approval provided under this subtitle or commission
rule, unless otherwise expressly provided by this subtitle, another
state or federal law, or commission rule.
Sec. 2201.004. EXEMPTION FROM TAXATION. A political
subdivision of this state may not impose:
(1) a tax on the payment of a prize under Chapter 2202
or 2203;
(2) a tax, fee, or other assessment on consideration
paid to play a casino game or engage in sports wagering as
authorized by this subtitle;
(3) a tax on gross casino gaming revenue or gross
sports wagering revenue; or
(4) a tax or fee on attendance at or admission to a
casino authorized by this subtitle unless specifically authorized
by statute.
SUBCHAPTER B. TEXAS GAMING COMMISSION
Sec. 2201.051. COMMISSION; MEMBERSHIP. (a) The Texas
Gaming Commission is composed of five qualified members appointed
by the governor with the advice and consent of the senate.
(b) Appointments to the commission shall be made without
regard to race, color, disability, sex, religion, age, or national
origin.
Sec. 2201.052. QUALIFICATIONS OF COMMISSION MEMBERS. (a)
To be eligible for appointment to the commission, a person:
(1) must be a citizen of the United States;
(2) must submit a financial statement that contains
the information required by Chapter 572, Government Code;
(3) may not have a pecuniary interest in an entity
engaged in the conduct of casino gaming or sports wagering or the
provision of casino services that require a casino service license,
including having any security issued by that entity, or be related
within the second degree by affinity or the third degree by
consanguinity, as determined under Chapter 573, Government Code, to
an individual who has a pecuniary interest or holds a security as
described by this subdivision;
(4) may not be an applicant for or holder of a license
under a law administered by the commission or hold an equity
interest in a casino license holder requiring qualification under
Section 2202.060;
(5) may not be a member of the governing body of a
political subdivision of this state; and
(6) may not hold an elective office or be an officer or
official of a political party.
(b) Before assuming membership on the commission, a person
must affirm that the person meets the qualification of this
section, including that the person does not have a pecuniary
interest in any business or entity, and is not conducting business
with any business or entity, that holds a license for involvement in
casino gaming or sports wagering.
Sec. 2201.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)
In this section, "Texas trade association" means a cooperative and
voluntarily joined association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be a commission member or an employee of
the commission employed in a "bona fide executive, administrative,
or professional capacity," as that phrase is used for purposes of
establishing an exemption to the overtime provisions of the federal
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
(1) the person is an officer, employee, manager, or
paid consultant of a Texas trade association in the field of gaming;
or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of gaming.
(c) A person may not be a commission member or act as general
counsel to the commission if the person is required to register as a
lobbyist under Chapter 305, Government Code, because of the
person's activities for compensation on behalf of a profession
related to the operation of the commission.
Sec. 2201.054. TERMS; VACANCIES. (a) Commission members
serve staggered six-year terms, with the term or terms of one or two
members expiring February 1 of each odd-numbered year.
(b) The governor shall fill a vacancy in a position on the
commission for the remainder of the unexpired term.
Sec. 2201.055. PRESIDING OFFICER. The governor shall
designate a commission member as presiding officer of the
commission to serve in that capacity at the pleasure of the
governor.
Sec. 2201.056. MEETINGS; OFFICIAL RECORD. (a) The
commission shall meet not fewer than 12 times each year.
(b) The commission may meet at other times at the call of the
presiding officer or as provided by commission rule.
(c) The commission shall keep an official record of all
commission meetings and proceedings.
Sec. 2201.057. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the commission that a member:
(1) does not have at the time of taking office the
qualifications required by Section 2201.052;
(2) does not maintain during service on the commission
the qualifications required by Section 2201.052;
(3) is ineligible for membership under Section
2201.053;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the other commission members.
(b) The validity of an action of the commission is not
affected by the fact that it is taken when a ground for removal of a
commission member exists.
(c) If the executive director or a commission member has
knowledge that a potential ground for removal of a commission
member exists, the executive director or the commission member, as
applicable, shall notify the presiding officer of the commission of
the potential ground for removal. The presiding officer shall then
notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the executive director or the
commission member, as applicable, shall notify the other commission
members, the governor, and the attorney general that a potential
ground for removal exists.
Sec. 2201.058. TRAINING. (a) A person who is appointed to
and qualifies for office as a commission member may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) this subtitle and other laws related to casino
gaming or sports wagering or gambling regulated by the commission;
(2) the commission's programs, functions, rules, and
budget;
(3) the results of the most recent formal audit of the
commission;
(4) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflict of interest; and
(5) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
Sec. 2201.059. QUALIFICATIONS AND STANDARDS OF CONDUCT
INFORMATION. The executive director or the executive director's
designee shall provide to commission members, as often as
necessary, information regarding their:
(1) qualifications for office under this chapter; and
(2) responsibilities under applicable laws relating
to standards of conduct for state officers.
Sec. 2201.060. BOND. (a) Before assuming the duties of
office, a commission member must execute a bond in the amount of
$25,000 payable to the state and conditioned on the member's
faithful performance of the member's duties of office.
(b) The bond must be approved by the governor.
(c) The cost of the bond shall be paid by the commission.
Sec. 2201.061. PROHIBITION OF CERTAIN ACTIVITIES. (a) A
commission member may not:
(1) use the member's official authority to affect the
result of an election or nomination for public office; or
(2) directly or indirectly coerce, attempt to coerce,
command, or advise a person to pay, lend, or contribute anything of
value to another person for political purposes.
(b) A commission member or the parent, spouse, or child of a
commission member may not solicit or accept employment or any
financial interest or benefit from a license holder under a law
administered by the commission or from an applicant for a license
before the second anniversary of the date the commission member's
service on the commission ends.
Sec. 2201.062. APPLICATION OF FINANCIAL DISCLOSURE LAW.
For purposes of Chapter 572, Government Code, a commission member
and the executive director are appointed officers of a major state
agency.
Sec. 2201.063. PER DIEM; EXPENSES; SALARY. (a) A
commission member is entitled to:
(1) a per diem in an amount prescribed by
appropriation for each day spent in performing the duties of the
member;
(2) reimbursement for actual and necessary expenses
incurred in performing those duties; and
(3) an annual salary in an amount prescribed by
appropriation.
(b) Reimbursement for expenses under this section is
subject to any applicable limitation in the General Appropriations
Act.
Sec. 2201.064. EXECUTIVE DIRECTOR. (a) The commission
shall appoint an executive director, who serves at the pleasure of
the commission.
(b) A person is not eligible for appointment as executive
director if the person:
(1) holds an elective office or is an officer or
official of a political party; or
(2) is required to register as a lobbyist under
Chapter 305, Government Code, because of the person's activities
for compensation on behalf of a profession related to the operation
of the commission.
(c) The executive director must have five or more years of
responsible administrative experience in public or business
administration or possess broad management skills.
(d) The executive director may not pursue any other business
or occupation or hold any other office for profit.
(e) The executive director must meet all eligibility
requirements relating to commission members.
(f) The executive director is entitled to an annual salary
and other compensation specified by the commission.
(g) The executive director or the parent, spouse, or child
of the executive director may not, before the second anniversary of
the date the executive director's service to the commission ends,
acquire a direct or indirect interest in or be employed by an entity
licensed or registered by the commission in connection with the
conduct of casino gaming or sports wagering or the provision of
casino services in this state.
Sec. 2201.065. OFFICES. The commission shall maintain its
primary office in Travis County and may maintain other offices the
commission determines are necessary.
Sec. 2201.066. AUTHORITY TO SUE OR BE SUED; VENUE FOR CIVIL
SUITS. (a) Subject to Section 2202.360, the commission may sue and
be sued.
(b) Service of process in a suit against the commission may
be secured by serving the executive director.
(c) A suit against the commission must be brought in Travis
County.
Sec. 2201.067. AUDIT. The transactions of the commission
are subject to audit by the state auditor under Chapter 321,
Government Code.
SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION; GAMBLING
ADMINISTRATION
Sec. 2201.101. GENERAL POWERS AND DUTIES. (a) The
commission has broad authority and shall exercise strict control
and close supervision over all activities authorized and conducted
in this state under a law administered by the commission.
(b) The commission shall ensure that all casino games, other
casino gaming activities, sports wagering, and other gambling
subject to the oversight or regulatory authority of the commission
are conducted fairly and in compliance with the law.
(c) The commission also has the powers and duties granted
under Chapters 2202 and 2203.
(d) All aspects of this subtitle and other laws administered
by the commission, including those relating to licensing,
qualification, execution, and enforcement, shall be administered
by the executive director and the commission for the protection of
the public and in the public interest.
(e) The commission and the executive director have full
power and authority to hold hearings and, in connection with the
hearings, to issue subpoenas, to compel the attendance of witnesses
at any place in this state, to administer oaths, and to require
testimony under oath. Any process or notice relating to a hearing
may be served in the manner provided for service of process and
notices in civil actions. The commission and the executive
director may pay transportation and other expenses of witnesses as
they consider reasonable.
(f) The executive director and the executive director's
authorized employees may:
(1) inspect and examine a premises where casino
gaming, sports wagering, or other gambling regulated by the
commission is conducted or equipment or supplies, including an
electronic or other gaming device, or associated equipment is
manufactured, assembled, produced, programmed, sold, leased,
marketed, distributed, repaired, or modified for use in gaming;
(2) for good cause, seize and remove from a premises
and impound equipment or supplies for the purpose of examination
and inspection; and
(3) demand access to, inspect, examine, photocopy, or
audit papers, books, and records of applicants and license holders,
on their premises or elsewhere as practicable, in the presence of
the applicant or license holder or the applicant's or license
holder's agent, that report the gross income produced by a
gaming-related business, verify the gross income, or affect other
matters on the enforcement of this subtitle or other law
administered by the commission.
(g) For the purpose of conducting audits after the cessation
of the conduct of casino gaming or sports wagering by a license
holder, a former license holder shall furnish, on demand of the
executive director or the executive director's authorized
employees, books, papers, and records as necessary to conduct the
audits. The former license holder shall maintain all books,
papers, and records necessary for audits until at least the third
anniversary of the date the license is surrendered or revoked and
is responsible for the costs incurred by the commission in the
conduct of an audit under this section. If the former license
holder seeks judicial review of a deficiency determination or files
a petition for a redetermination, the former license holder must
maintain all books, papers, and records until a final order is
entered on the determination.
(h) The commission shall contract with at least one
independent testing laboratory to scientifically test and
technically evaluate casino games, gaming devices, and associated
equipment for compliance with this subtitle. The independent
testing laboratory must have a national or international reputation
of being demonstrably competent and must be qualified to
scientifically test and evaluate all components of casino games,
gaming devices, and associated equipment for compliance with this
subtitle and to perform the functions assigned to it under this
subtitle. An independent testing laboratory may not be owned or
controlled by a person licensed to conduct casino games or sports
wagering or to manufacture gaming devices or associated equipment.
The use of an independent testing laboratory for purposes related
to the conduct of casino gaming or sports wagering under this
subtitle must be made from a list of at least two laboratories
approved by the commission.
Sec. 2201.102. RULEMAKING AUTHORITY. (a) The commission
shall adopt rules the commission considers necessary or desirable
for the public interest in carrying out the policy and provisions of
this subtitle and the other laws administered by the commission.
(b) The rules must prescribe:
(1) the method and form of applying for a license under
this subtitle and for the commission's consideration of an
application;
(2) any notice required to apply for a license under
this subtitle;
(3) the information an applicant or license holder
must provide under Chapter 2202 concerning antecedents, habits,
character, associates, criminal history record information,
business activities, and financial affairs;
(4) the criteria the commission will use in awarding,
revoking, and suspending licenses under Chapter 2202;
(5) the information a license holder must provide
under Chapter 2202 relating to the holder's employees;
(6) the manner of and procedures for hearings
conducted by the commission or a hearing examiner of the
commission;
(7) the payment of fees or costs by an applicant or
license holder under Chapter 2202;
(8) the procedures for issuance of temporary licenses
and temporary qualifications to hold equity interests in a casino
license holder under Chapter 2202;
(9) the manner and method of collecting and paying
fees and of issuing licenses;
(10) the conditions under which the nonpayment of a
gambling debt by a license holder constitutes grounds for
disciplinary action;
(11) the manner of approval of casino games, slot
machines, gaming devices, and associated equipment;
(12) access to confidential information obtained
under this chapter, Chapter 2202, Chapter 2203, or other law and the
means to ensure that the confidentiality of the information is
maintained and protected;
(13) financial reporting and internal control
requirements for license holders;
(14) the manner of computing and reporting money
awarded to players, compensation from casino gaming and sports
wagering, and gross casino gaming revenue and gross sports wagering
revenue under Chapter 2202;
(15) the requirements for the annual audit of the
financial statements of a license holder;
(16) the requirements for periodic financial reports
from each license holder consistent with standards and intervals
prescribed by the commission;
(17) the procedures to be followed by a license holder
for excluding a person from a casino;
(18) the procedures and criteria for requiring a
finding of suitability under Section 2202.006; and
(19) the procedures and criteria for exempting a group
or class of persons from the registration or qualification
requirements of Chapter 2202.
Sec. 2201.103. AUTHORITY OF EXECUTIVE DIRECTOR. (a) With
commission approval, the executive director may create executive
positions as the executive director considers necessary to
implement this chapter, Chapter 2202, Chapter 2203, and any other
law administered by the commission.
(b) The executive director shall employ directors in the
areas of audit, investigation, and enforcement. The audit director
must be a certified public accountant, have five or more years of
progressively responsible experience in general accounting, and
have a comprehensive knowledge of the principles and practices of
corporate finance or must possess qualifications of an expert in
the field of corporate finance and auditing, general finance,
gaming, and economics. Other directors must possess five or more
years of training and experience in the fields of investigation,
law enforcement, law, or gaming.
(c) The executive director may investigate, for the purpose
of prosecution, a suspected criminal violation of this subtitle or
other laws related to casino gaming, sports wagering, or gambling
regulated by the commission. For the purpose of the administration
and enforcement of this subtitle or another related law, the
executive director and employees designated as enforcement
officers by the executive director may be commissioned as peace
officers.
(d) The executive director, to further the objectives and
purposes of this subtitle or other laws related to casino gaming,
sports wagering, or gambling regulated by the commission, may:
(1) direct and supervise all administrative actions of
the commission;
(2) bring legal action in the name and on behalf of the
commission;
(3) make, execute, and effect an agreement or contract
authorized by the commission;
(4) employ the services of persons considered
necessary for consultation or investigation and set the salaries of
or contract for the services of legal, professional, technical, and
operational personnel and consultants, except that outside legal
assistance may be retained only with the approval of the
commission;
(5) acquire furnishings, equipment, supplies,
stationery, books, and all other goods the executive director
considers necessary or desirable in carrying out the executive
director's functions; and
(6) perform other duties the executive director may
consider necessary to effect the purposes of this subtitle or other
laws related to casino gaming, sports wagering, or gambling
regulated by the commission.
(e) Except as otherwise provided in this subtitle, the costs
of administration incurred by the executive director shall be paid
in the same manner as other claims against the state are paid.
Sec. 2201.104. OFFICE OF HEARING EXAMINERS. (a) The
commission shall create an office of hearing examiners to assist
the commission in carrying out its powers and duties.
(b) The office of hearing examiners shall:
(1) hold hearings under the authority of the
commission on matters relating to the commission's administration
of this subtitle and other laws related to casino gaming, sports
wagering, or gambling regulated by the commission as the commission
orders; and
(2) report after a hearing in the manner prescribed by
the commission.
(c) The commission shall refer any contested case arising
under this subtitle or other laws related to casino gaming, sports
wagering, or gambling regulated by the commission to the office of
hearing examiners or the State Office of Administrative Hearings.
(d) The office of hearing examiners is independent of the
executive director and is under the exclusive control of the
commission.
(e) The office of hearing examiners is under the direction
of a chief hearing examiner appointed by the commission.
(f) The commission may authorize the chief hearing examiner
to delegate to one or more hearing examiners the authority to hold
any hearing called by the chief hearing examiner.
(g) The chief hearing examiner and each assistant hearing
examiner employed by the office of hearing examiners must be an
attorney licensed to practice law in this state.
(h) The chief hearing examiner and each assistant hearing
examiner may administer oaths, receive evidence, and issue
subpoenas to compel the attendance of witnesses and the production
of papers and documents in all matters delegated to the office of
hearing examiners by the commission.
(i) The chief hearing examiner and each assistant hearing
examiner is entitled to an annual salary and other compensation
specified by the commission.
(j) The office of hearing examiners may contract for
additional services it considers necessary to carry out its powers.
Sec. 2201.105. JUDICIAL REVIEW IN CONTESTED CASES. A final
decision of the commission in a contested case is subject to
judicial review under Chapter 2001, Government Code. Judicial
review is under the substantial evidence rule, as provided by that
chapter.
Sec. 2201.106. RECORDS; CONFIDENTIAL INFORMATION. (a) The
executive director shall maintain a file of all applications for
licenses under this subtitle, together with a record of all action
taken with respect to the applications.
(b) The commission and the executive director may maintain
other records considered desirable.
(c) The information made confidential by this section may be
disclosed, wholly or partly, only:
(1) in the course of the necessary administration of
this subtitle or in the enforcement of other laws related to casino
gaming, sports wagering, or other gambling regulated by the
commission;
(2) under Section 2202.353;
(3) on the order of a court; or
(4) as authorized under commission rule, to an
authorized agent of any agency of the United States, another state,
or a political subdivision of this state.
(d) Notice of the content of any information furnished or
released under Subsection (c) may be given to any affected
applicant or license holder as prescribed by commission rule.
(e) The following information is confidential and may not be
disclosed:
(1) information requested by the commission or the
executive director under this subtitle or another applicable law
that may otherwise be obtained relating to the finances, earnings,
or revenue of an applicant or license holder;
(2) information pertaining to an applicant's criminal
history record information, antecedents, and background that has
been furnished to or obtained by the commission or the executive
director from any source;
(3) information provided to the commission or the
executive director or a commission employee by a governmental
agency or an informer or on the assurance that the information will
be held in confidence and treated as confidential;
(4) information obtained by the executive director or
the commission from a license holder, including a casino service
license holder, relating to the manufacturing, modification, or
repair of gaming devices;
(5) security plans and procedures of the commission
designed to ensure the integrity and security of the regulation and
operation of casino gaming, sports wagering, or other gambling
regulated by the commission;
(6) the street address and telephone number of a
patron unless the patron has consented to the release of the
information;
(7) information relating to all system operations of
casino gaming and sports wagering, including security related to
casino gaming or sports wagering, and commission plans and
procedures intended to ensure the integrity and security of the
operation of casino gaming, sports wagering, and other gambling
regulated by the commission; and
(8) reports and related information filed under
Section 2202.010.
Sec. 2201.107. REPRESENTATION BY ATTORNEY GENERAL. (a)
The attorney general shall represent the commission and the
executive director in any proceeding to which the commission or the
executive director is a party under this subtitle or another law
administered by the commission or in any suit filed against the
commission or executive director.
(b) The office of the attorney general on request shall
advise the commission and the executive director in all other
matters, including representing the commission when the commission
acts in its official capacity.
Sec. 2201.108. RULES RESTRICTING ADVERTISING OR
COMPETITIVE BIDDING. (a) The commission may not adopt rules
restricting advertising or competitive bidding by a person
regulated by the commission except to prohibit false, misleading,
or deceptive practices by that person.
(b) The commission may not include in its rules to prohibit
false, misleading, or deceptive practices by a person regulated by
the commission a rule that:
(1) restricts the use of any advertising medium;
(2) restricts the person's personal appearance or the
use of the person's voice in an advertisement;
(3) relates to the size or duration of an
advertisement by the person; or
(4) restricts the use of a trade name in advertising by
the person.
Sec. 2201.109. RULES ON CONSEQUENCES OF CRIMINAL
CONVICTION. (a) The commission shall adopt rules necessary to
comply with Chapter 53.
(b) In adopting rules under this section, the commission
shall list the specific offenses for which a conviction would
constitute grounds for the commission to take action under Section
53.021.
Sec. 2201.110. SUBPOENA. (a) The commission may request
and, if necessary, compel by subpoena:
(1) the attendance of a witness for examination under
oath; and
(2) the production for inspection and copying of
records and other evidence relevant to the investigation of an
alleged violation of this subtitle or other laws related to casino
gaming, sports wagering, or other gambling regulated by the
commission.
(b) If a person fails to comply with a subpoena issued under
this section, the commission, acting through the attorney general,
may file suit to enforce the subpoena in a district court in Travis
County or in the county in which a hearing conducted by the
commission may be held.
(c) The court shall order a person to comply with the
subpoena if the court determines that good cause exists for issuing
the subpoena.
Sec. 2201.111. DIVISION OF RESPONSIBILITIES. The
commission shall develop and implement policies that clearly
separate the policy-making responsibilities of the commission and
the management responsibilities of the executive director and the
staff of the commission.
Sec. 2201.112. USE OF TECHNOLOGY. The commission shall
implement a policy requiring the commission to use appropriate
technological solutions to improve the commission's ability to
perform its functions. The policy must ensure that the public is
able to interact with the commission through the commission's
Internet website.
Sec. 2201.113. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate an appropriately
qualified person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Sec. 2201.114. COMMITTEES. The commission may appoint
committees that it considers necessary to carry out its duties.
Sec. 2201.115. CONTRACT AUTHORITY. (a) The commission and
executive director have broad authority and shall exercise strict
control and close supervision over casino gaming and sports
wagering conducted in this state to promote and ensure integrity,
security, honesty, and fairness in the operation and administration
of casino gaming and sports wagering under this subtitle.
(b) The executive director may contract with a third party
to perform a function, activity, or service in connection with the
operation of casino gaming or sports wagering under this subtitle,
other than investigative services, as prescribed by the executive
director. A contract relating to the operation of casino gaming or
sports wagering must be consistent with this subtitle.
(c) The executive director may award a contract for
supplies, equipment, or services, including a contract under
Subsection (b), pending the completion of any investigation and
license required by this subtitle. A contract awarded under this
subsection must include a provision permitting the executive
director to terminate the contract without penalty if the
investigation reveals that the person to whom the contract is
awarded does not satisfy the applicable requirements for a license
under this subtitle.
(d) In the acquisition or provision of facilities,
supplies, equipment, materials, or services related to the
implementation of casino gaming or sports wagering under this
subtitle, the commission must comply with procurement procedures
prescribed under Subtitle D, Title 10, Government Code.
Sec. 2201.116. INVESTIGATIONS AND ENFORCEMENT. (a) A
violation or alleged violation of this subtitle or of the penal laws
of this state by the commission, its employees, or a person
regulated under this subtitle may be investigated by the attorney
general, the district attorney for Travis County, or a district
attorney, criminal district attorney, or county attorney for the
county in which the violation or alleged violation occurred.
(b) The commission may investigate violations of this
subtitle, rules adopted under this subtitle, or other laws related
to casino gaming, sports wagering, or other gambling regulated by
the commission and may file a complaint requesting that an
investigation be conducted in accordance with Subsection (a).
Sec. 2201.117. SECURITY. (a) The executive director shall
maintain a department of security in the commission. The executive
director shall appoint a deputy to administer the department. The
deputy must be qualified by training and experience in law
enforcement or security to supervise, direct, and administer the
activities of the department.
(b) The executive director may employ security officers or
investigators as the executive director considers necessary and may
commission investigators or security officers as peace officers.
The deputy and all investigators employed by the department of
security and commissioned as peace officers must meet the
requirements under Chapter 1701 for employment and commission as
peace officers.
(c) A security officer or investigator employed by the
department of security and commissioned as a peace officer or a
peace officer who is working in conjunction with the commission or
the Department of Public Safety in the enforcement of this subtitle
may:
(1) without a search warrant, search and seize a
gaming device or associated equipment that is located on premises
for which a person holds a license issued under this subtitle; or
(2) seize a gaming device or associated equipment that
is being used or is in the possession of any person in violation of
this subtitle or other laws related to casino gaming, sports
wagering, or other gambling regulated by the commission.
(d) The Department of Public Safety or any other state or
local law enforcement agency, at the commission's request and in
accordance with an interagency agreement, shall perform a full
criminal history record information and background investigation
of a prospective deputy or investigator of the department of
security of the commission. The commission shall reimburse the
agency for the actual costs of an investigation.
(e) At least once every two years, the executive director
shall employ an independent firm that is experienced in security,
including computer security and systems security, to conduct a
comprehensive study of all aspects of casino gaming and sports
wagering security.
Sec. 2201.118. PROHIBITED GAMBLING GAMES. (a) Except as
specifically provided by this subtitle or other law, the executive
director or any other person may not establish or operate a gambling
game in which the winner is chosen on the basis of the outcome of a
live sporting event.
(b) Except as provided by Chapter 2001 or this subtitle, the
operation of any game using a slot machine or other gaming device is
prohibited.
Sec. 2201.119. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a)
Except as otherwise provided by this subtitle, all files, records,
information, compilations, documents, photographs, reports,
summaries, and reviews of information and related matters
collected, retained, or compiled by the Department of Public Safety
in the discharge of its duties under this subtitle are confidential
and are not subject to public disclosure.
(b) An investigation report or other document submitted by
the Department of Public Safety to the commission becomes part of
the investigative files of the commission.
(c) Information that is made available to the public is not
privileged or confidential under this section and is subject to
public disclosure.
Sec. 2201.120. CRIMINAL BACKGROUND INVESTIGATION FOR
CASINO GAMING OR SPORTS WAGERING. (a) The commission is entitled
to conduct an investigation of and is entitled to obtain criminal
history record information maintained by the Department of Public
Safety, the Federal Bureau of Investigation Identification
Division, or another law enforcement agency to assist in the
criminal background investigation of any person directly involved
with casino gaming, sports wagering, or other gambling regulated
under this subtitle.
(b) Except as otherwise provided by this subtitle, a
criminal background investigation is governed by commission rules
adopted under this chapter.
(c) The Department of Public Safety or a state or local law
enforcement agency in this state, in accordance with an interagency
agreement with the commission, shall provide any assistance
requested by the commission in the administration and enforcement
of this subtitle, including conducting criminal background
investigations of a person seeking a license required under this
subtitle or of any person required to be named in an application for
a license under this subtitle.
(d) This section does not limit the commission's right to
obtain criminal history record information from any other local,
state, or federal agency. The commission may enter into a
confidentiality agreement with the agency as necessary and proper.
(e) Except as otherwise provided by this subtitle or other
law, criminal history record information obtained by the commission
under this section may be disclosed only:
(1) to another law enforcement agency to assist in or
further an investigation related to the commission's operation and
oversight of gaming; or
(2) under a court order.
Sec. 2201.121. PLAYER AGREEMENT TO ABIDE BY RULES AND
INSTRUCTIONS. By participating as a player, a player agrees to
abide by and be bound by the commission's and the license holder's
rules and instructions, including the rules or instructions
applicable to the particular casino game or sports wagering
involved. The player also agrees that the determination of whether
the player is a valid winner is subject to:
(1) the commission's and the license holder's rules,
instructions, and claims procedures, including those developed for
the particular casino game or sports wagering involved;
(2) any validation tests established by the commission
for the particular casino game or sports wagering involved; and
(3) the limitations and other provisions prescribed by
this subtitle.
Sec. 2201.122. VENUE FOR CRIMINAL PROCEEDING. Venue is
proper in Travis County or any county in which venue is proper under
Chapter 13, Code of Criminal Procedure, for:
(1) an offense under this subtitle;
(2) an offense under the Penal Code, if the accused:
(A) is regulated under this subtitle; and
(B) is alleged to have committed the offense
while engaged in casino gaming or sports wagering activities; or
(3) an offense under Title 7 or 11, Penal Code, that
involves property consisting of or including a gaming device or
casino game prize.
SUBCHAPTER D. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES
Sec. 2201.151. PUBLIC INTEREST INFORMATION. (a) The
commission shall prepare and disseminate consumer information that
describes the regulatory functions of the commission and the
procedures by which consumer complaints are filed with and resolved
by the commission.
(b) The commission shall make the information available to
the public and appropriate state agencies.
Sec. 2201.152. COMPLAINTS. (a) The commission by rule
shall establish methods by which consumers and service recipients
are notified of the name, mailing address, telephone number, and
other contact information of the commission for the purpose of
directing complaints to the commission. The commission may provide
for that notice:
(1) on each form, application, or written contract for
services of a person regulated under a law administered by the
commission;
(2) on a sign prominently displayed in the place of
business of each person regulated under a law administered by the
commission; or
(3) in a bill for service provided by a person
regulated under this subtitle.
(b) The commission shall list with its regular telephone
number any toll-free telephone number established under other state
law that may be called to present a complaint about a person
regulated under this subtitle.
Sec. 2201.153. RECORDS OF COMPLAINTS. (a) The commission
shall maintain a system to promptly and efficiently act on
complaints filed with the commission. The commission shall
maintain:
(1) information about the parties to the complaint and
the subject matter of the complaint;
(2) a summary of the results of the review or
investigation of the complaint; and
(3) information about the disposition of the
complaint.
(b) The commission shall make information available
describing its procedures for complaint investigation and
resolution.
(c) The commission shall periodically notify the parties of
the status of the complaint until final disposition of the
complaint.
Sec. 2201.154. GENERAL RULES REGARDING COMPLAINT
INVESTIGATION AND DISPOSITION. The commission shall adopt rules
concerning the investigation of a complaint filed with the
commission. The rules must:
(1) distinguish between categories of complaints;
(2) ensure that complaints are not dismissed without
appropriate consideration;
(3) require that the commission be advised of a
complaint that is dismissed and that a letter be sent to the person
who filed the complaint explaining the action taken on the
dismissed complaint;
(4) ensure that the person who files a complaint has an
opportunity to explain the allegations made in the complaint; and
(5) prescribe guidelines concerning the categories of
complaints that require the use of a private investigator and the
procedures for the commission to obtain the services of a private
investigator.
Sec. 2201.155. DISPOSITION OF COMPLAINT. (a) The
commission shall:
(1) dispose of each complaint in a timely manner; and
(2) establish a schedule for conducting each phase of
a complaint that is under the control of the commission not later
than the 30th day after the date the commission receives the
complaint.
(b) Each party shall be notified of the projected time
requirements for pursuing the complaint. The commission shall
notify each party to the complaint of any change in the schedule
established under Subsection (a)(2) not later than the seventh day
after the date the change is made.
(c) The executive director shall notify the commission of a
complaint that is not resolved within the time prescribed by the
commission for resolving the complaint.
Sec. 2201.156. PUBLIC PARTICIPATION. (a) The commission
shall develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the commission's jurisdiction.
(b) The commission shall prepare and maintain a written plan
that describes the manner in which a person who does not speak
English may be provided reasonable access to the commission's
programs.
Sec. 2201.157. INFORMAL SETTLEMENT CONFERENCE. The
commission by rule shall establish procedures for an informal
settlement conference related to a complaint filed with the
commission.
CHAPTER 2202. CASINO GAMING AND SPORTS WAGERING
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2202.001. REGULATION AND LICENSING OF CASINO GAMING
AND SPORTS WAGERING; PUBLIC POLICY. (a) All casino gaming and
sports wagering that is conducted in this state and that is
authorized by law shall be regulated and licensed under this
chapter, unless federal law or another state law specifically
provides otherwise.
(b) The legislature hereby finds, and declares it to be the
public policy of this state, that:
(1) the development of regulated casino gaming and
sports wagering at a limited number of destination resorts in this
state will benefit the general welfare of the people of this state
by enhancing investment, economic development, and tourism in this
state, resulting in thousands of new jobs and significant
additional revenue to this state for essential services;
(2) the conduct of regulated casino gaming or sports
wagering by adults at a limited number of destination resorts and on
Indian lands will not harm the welfare of this state;
(3) the regulation of casino gaming and sports
wagering in this state is important to ensure that casino gaming and
sports wagering is:
(A) conducted honestly and competitively; and
(B) free from criminal and corruptive elements;
(4) public confidence and trust can be maintained only
by strict regulation of all persons, locations, practices,
associations, and activities related to the conduct of casino
gaming, the casino service industry, and the conduct of sports
wagering;
(5) persons owning any direct or indirect material
interest in a casino should be licensed and controlled to protect
the public health, safety, morals, good order, and general welfare
of the people of this state;
(6) certain operators and employees of casinos should
be regulated, licensed, and controlled to accomplish and promote
these public policies while protecting the public health, safety,
morals, good order, and general welfare of the people of this state;
(7) certain persons engaging in the casino service
industry should be regulated, licensed, and controlled to
accomplish and promote these public policies while protecting the
public health, safety, morals, good order, and general welfare of
the people of this state; and
(8) it is the intent of the legislature that the
resources, goods, labor, and services of the people of this state be
used, where possible, in the operation and construction of
destination resorts, casinos, and related amenities to the extent
allowable by law.
Sec. 2202.002. EXEMPTION FROM FEDERAL STATUTE. (a) This
chapter provides an exemption to the application of 15 U.S.C.
Section 1172, in accordance with that section.
(b) All shipments of gaming devices into this state,
including slot machines, conducted in compliance with the
applicable provisions of 15 U.S.C. Sections 1173 and 1174 are legal
shipments of the devices into this state.
Sec. 2202.003. CONSTRUCTION; APPLICABILITY OF OTHER LAWS.
(a) Nothing in this chapter may be construed to implicitly repeal
or modify existing state laws with respect to gambling, except that
casino gaming and sports wagering are not prohibited by another law
if conducted as authorized under this chapter.
(b) To the extent of any conflict between Chapter 2003,
Government Code, and this chapter or a commission rule governing
casino gaming or sports wagering, this chapter or the commission
rule prevails in all matters related to casino gaming or sports
wagering, including in connection with hearings before the State
Office of Administrative Hearings.
(c) This chapter prevails to the extent of any conflict
between this chapter and a provision of Subtitle A-1 (Texas Racing
Act).
Sec. 2202.004. AUTHORITY TO IMPLEMENT CASINO GAMING AND
SPORTS WAGERING. (a) The commission may implement casino gaming
and sports wagering in accordance with this subtitle.
(b) The commission shall allow the operation of limited
casino gaming or sports wagering under this subtitle at locations
on Indian lands in accordance with an effective gaming agreement
and in compliance with applicable federal law.
Sec. 2202.005. IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR
INVESTIGATION. Any member or agent of the commission or any witness
testifying under oath has absolute privilege for any written or
oral statement made in the course of and relevant to the purpose of
an official commission proceeding or investigative activity
related to commission licensing under this chapter. A written or
oral statement described by this section does not impose liability
for defamation or constitute a ground for recovery in any civil
action.
Sec. 2202.006. FINDING OF SUITABILITY. To promote the
integrity and security of casino gaming and sports wagering under
this subtitle, the commission in its discretion may require a
finding of suitability for any person conducting business with or
in relation to the operation of casino gaming or sports wagering who
is not otherwise required to obtain a license from the commission
for the person's gaming-related operations.
Sec. 2202.007. CONSENT TO COMMISSION DETERMINATION. (a)
An application for a license under this chapter constitutes a
request to the commission for a decision on the applicant's general
suitability, character, integrity, and ability to participate or
engage in or be associated with casino gaming or sports wagering
under this chapter in the manner or position sought.
(b) By filing an application with the commission, the
applicant specifically consents to the commission's determination
if the application, after filing, becomes moot for any reason other
than death.
Sec. 2202.008. LICENSE AS REVOCABLE PERSONAL PRIVILEGE.
(a) An applicant for a license under this chapter does not have any
right to the license sought.
(b) Any license issued under this chapter is a revocable
privilege and not a right or property under the United States
Constitution or the Texas Constitution. An applicant or license
holder does not acquire any vested right in or under the privilege.
(c) The courts of this state have jurisdiction to review a
decision to deny, limit, or condition a casino license under
Section 2202.357 or if judicial review is sought on the ground that
the denial, limitation, or condition violates the Texas
Constitution or is based on a suspect classification, such as race,
color, religion, sex, or national origin, in violation of the Equal
Protection Clause of the Fourteenth Amendment to the United States
Constitution. The state court must affirm the commission's action
unless the violation is proven by clear and convincing evidence.
(d) A license issued or renewed under this chapter may not
be transferred or assigned to another person unless approved in
advance by the commission, and a license may not be pledged as
collateral. The purchaser or successor of a license holder must
independently qualify for a license required by this chapter.
(e) The following acts are void unless approved by the
commission before the act occurs or not later than the 60th day
after the date the act occurs:
(1) the transfer, sale, or other disposition of an
interest in the license holder that results in a change in the
identity of an equity interest holder requiring qualification under
Section 2202.060; or
(2) the sale of the assets of the license holder, other
than assets bought and sold in the ordinary course of business, or
any interest in the assets, to any person not already determined to
have met the applicable qualifications of this chapter.
Sec. 2202.009. PRIZE RULES, PAYMENT, AND REDEMPTION. (a)
The payment of prizes is the sole and exclusive responsibility of
the casino license holder or operator license holder. A prize may
not be paid by the commission or this state except as otherwise
authorized.
(b) Nothing in this chapter limits the ability of a casino
license holder or operator license holder to provide promotional
prizes, including wide area progressive networks, in addition to
prize payouts regulated by the commission.
(c) The commission shall enact rules consistent with this
section governing the use and redemption of prizes and credits
recorded on player account records, such as players' club cards and
smart cards.
Sec. 2202.010. REPORT ON LITIGATION. (a) A casino license
holder or operator license holder shall report to the commission
any litigation relating to casino gaming or sports wagering
operations, including a criminal proceeding, a proceeding
involving an issue related to pari-mutuel activities that impact
casino gaming or sports wagering operations, or a matter related to
character or reputation relevant to a person's suitability under
this chapter.
(b) The report required under Subsection (a) must be filed
not later than the 30th day after the date the license holder
acquires knowledge of the litigation.
Sec. 2202.011. COMMISSION APPROVAL REQUIRED FOR PROCEDURES
AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a) The commission's
or executive director's approval is required for all internal
procedures and administrative and accounting controls of a casino
license holder or operator license holder.
(b) The commission by rule shall establish general
accounting and auditing requirements and internal control
standards for the conduct of casino gaming and sports wagering at
casinos.
Sec. 2202.012. GAMING EMPLOYEE REPORTING. (a) In this
section, "employee" includes any person connected directly with or
compensated by an applicant or license holder as an agent, personal
representative, consultant, or independent contractor.
(b) On or before the 15th day of each month, a casino or
operator license holder shall submit to the commission a gaming
employee report for the casino operated by the owner or operator.
For each gaming employee, the report must provide the employee's
name, job title, date of birth, and social security number.
(c) The gaming employee report is confidential and may not
be disclosed except under commission order or in accordance with
this subtitle.
(d) The commission may conduct criminal history background
investigations of gaming employees.
(e) The commission may prohibit an employee from performing
any act relating to gaming if the commission finds that an employee
has:
(1) committed, attempted, or conspired to commit any
act prohibited by this chapter;
(2) concealed or refused to disclose any material fact
in any commission investigation;
(3) committed, attempted, or conspired to commit an
offense involving or related to larceny or embezzlement;
(4) been convicted in any jurisdiction of an offense
involving or relating to gambling;
(5) accepted employment and continued to be employed
in a position for which commission approval is required after
commission approval was denied for a reason involving personal
unsuitability or after failing to apply for approval on commission
request;
(6) been prohibited under color of governmental
authority from being present on the premises of any casino or any
establishment where casino gaming, sports wagering, or pari-mutuel
wagering is conducted for any reason relating to improper gambling
activity or other illegal acts;
(7) wilfully defied any legislative investigative
committee or other officially constituted body acting on behalf of
the United States or any state, county, or municipality that sought
to investigate alleged or potential crimes relating to gambling,
corruption of public officials, or any organized criminal
activities; or
(8) been convicted of any felony or any crime
involving moral turpitude.
(f) The commission may prohibit an employee from performing
any act relating to casino gaming or sports wagering based on a
revocation or suspension of any casino gaming, sports wagering, or
pari-mutuel wagering license or for any other reason the commission
finds appropriate, including a refusal by a regulatory authority to
issue a license for the employee to engage in or be involved with
casino gaming, sports wagering, or with other regulated gaming or
pari-mutuel wagering in any jurisdiction.
Sec. 2202.013. REPORT OF VIOLATIONS. A person who holds a
license under this chapter shall immediately report a violation or
suspected violation of this chapter or a rule adopted under this
chapter by any license holder, by an employee of a license holder,
or by any person on the premises of a casino, whether or not
associated with the license holder.
Sec. 2202.014. INDEMNIFICATION, INSURANCE, AND BONDING
REQUIREMENTS. (a) A license holder shall indemnify and hold
harmless this state, the commission, and all officers and employees
of this state and the commission from any and all claims which may
be asserted against a license holder, the commission, this state,
and the members, officers, employees, and authorized agents of this
state or the commission arising from the license holder's
participation in casino gaming or sports wagering authorized under
this subtitle.
(b) Surety and insurance required under this chapter may
only be issued by companies or financial institutions financially
rated "A-" or better as rated by AM Best Company or another rating
organization designated by the commission and duly licensed,
admitted, and authorized to conduct business in this state, or by
other surety approved by the commission.
(c) The commission shall be named as the obligee in each
required surety and as an additional insured in each required
insurance contract.
(d) A casino license holder or operator license holder may
not be self-insured with regard to gaming operations under this
section in excess of $50 million per occurrence.
(e) The commission by rule shall establish minimum
insurance coverage requirements for license holders under this
chapter, including:
(1) crime or fidelity insurance against losses caused
by fraudulent or dishonest acts by an officer or employee of the
license holder;
(2) commercial general liability insurance;
(3) property insurance; and
(4) business auto liability insurance.
Sec. 2202.015. LIABILITY FOR CREDIT AWARDED OR DENIED.
This state and the commission are not liable for any gaming device
malfunction or error occurring at a casino that causes credit to be
wrongfully awarded or denied to players.
SUBCHAPTER B. CASINO LICENSE
Sec. 2202.051. CASINO LICENSE; LIMITED NUMBER; LOCATIONS.
(a) Casino gaming and sports wagering may be lawfully conducted in
a casino operating under a casino license. The commission shall
issue casino licenses as required and limited by the Texas
Constitution.
(b) A person may not own an equity interest in a casino at
which casino gaming, sports wagering, or other gambling is
conducted in this state unless the casino is operating under a
casino license issued for the conduct of gambling at that casino.
(c) A separate casino license must be obtained for each
casino conducting casino gaming, sports wagering, or other gambling
regulated by the commission. The commission may not issue a casino
license if issuing the license would cause the number of active
casino licenses to exceed a limit on the number of active casino
licenses established by the Texas Constitution or this subtitle.
(d) The commission may not issue a casino license for a
casino located outside of an area authorized under the Texas
Constitution or this subtitle for a casino location.
(e) The commission may issue a temporary license
authorizing the casino license holder to temporarily conduct casino
gaming and sports wagering in accordance with commission rules at a
location within 20 miles of the location for which the casino
license was issued. A temporary license issued under this
subsection must expire not later than the first anniversary of the
date the temporary license is issued.
(f) For purposes of determining a casino's location, a
casino is considered to be located in the county in which is located
the main public entrance to the casino.
Sec. 2202.052. APPLICATION. (a) A person may apply for a
casino license by submitting in accordance with commission rules an
application containing information the commission finds necessary
to determine:
(1) the suitability and eligibility of the applicant;
(2) the eligibility of the proposed location; and
(3) the economic impact of the overall destination
resort or casino project.
(b) In addition to any other information the commission may
require, an application must include the following information
concerning the feasibility of the overall destination:
(1) evidence that the applicant possesses, or has the
right to acquire, sufficient real property on which the proposed
destination resort will be located that accommodates the
applicant's construction and operation of the destination resort
substantially as proposed;
(2) evidence that the applicant will meet, and a
specific schedule for meeting, all requirements established by the
Texas Constitution to conduct casino gaming and sports wagering,
including satisfaction of any minimum new investment commitment;
(3) evidence of the applicant's good character,
honesty, and integrity;
(4) evidence that issuance of the casino license will
not be detrimental to the public interest or the casino gaming and
sports wagering industry;
(5) a detailed estimate of the total new investment to
be made by the applicant for the destination resort and evidence of
the applicant's financial capacity to operate and complete
development of the destination resort;
(6) evidence that the applicant possesses, or
reasonably expects to obtain, all state, county, and municipal
permits and approvals necessary for the construction and operation
of the proposed destination resort within the time prescribed by
this chapter; and
(7) evidence that the applicant is prepared to begin
construction of its proposed destination resort not later than the
second anniversary of the date the casino license is issued and to
proceed with the construction of the destination resort without
unnecessary delay.
(c) An applicant may apply for not more than two casino
licenses but must submit a separate application for each
destination resort for which a casino license is sought.
Sec. 2202.053. CASINO LICENSE ISSUED TO INDIAN TRIBE;
AGREEMENT. (a) In addition to the casino licenses issued under
this subchapter, the commission may issue a casino license to a
federally recognized Indian tribe for which Indian lands in this
state were held in trust by the United States on January 1, 1998. A
license issued under this subsection authorizes the Indian tribe to
which the license is issued to operate not more than one casino on
Indian lands held in trust by the United States on January 1, 1998.
(b) A casino license issued by the commission under
Subsection (a) to an Indian tribe constitutes an agreement between
this state and the tribe for purposes of the Indian Gaming
Regulatory Act (Pub. L. No. 100-497).
(c) An Indian tribe to which Subsection (a) applies may, in
lieu of operating a casino under a casino license under that
subsection, operate a casino on Indian lands described by
Subsection (a) under an agreement with this state governed by this
chapter and Chapter 2203.
(d) The commission may not issue a casino license for a
location in which casino gaming or sports wagering is prohibited
under a gaming agreement between an Indian tribe and this state.
Sec. 2202.054. MANDATORY LICENSE REQUIREMENTS. (a) A
company is eligible to apply for and hold a casino license only if:
(1) the company is incorporated or organized and in
good standing in this state or organized under the laws of another
state of the United States and qualified to conduct business in this
state; and
(2) the company complies with all laws of this state.
(b) To be eligible to hold a casino license, an applicant
must submit an application to the commission by the date
established by the commission.
(c) An application may not be considered filed for purposes
of this chapter if the application does not include the information
prescribed by Section 2202.052(b) or is not accompanied by the
required application fee.
Sec. 2202.055. CONSIDERATIONS FOR INITIAL AND CONTINUING
SUITABILITY FOR CASINO LICENSE. (a) The commission shall
determine the initial and continuing suitability of each applicant
for or holder of a casino license based on suitability criteria
prescribed by commission rule to ensure that all casino license
holders are of good character, are honest, have integrity, and are
financially stable, that a casino license holder has sufficient
business probity and competence, and that a casino license holder
meets other applicable qualifications for the issuance of the
license.
(b) The commission shall give due consideration to the
protection of the public health, safety, morals, and general
welfare of the people of this state and for the reputation of the
state's casino gaming and sports wagering industry.
(c) In considering the initial and continuing suitability
of an applicant for or holder of a casino license, the commission
shall consider:
(1) whether the applicant or casino license holder is
a qualified applicant as described by the Texas Constitution;
(2) the applicant's or casino license holder's
experience in conducting licensed casino gaming and sports wagering
operations and the applicant's financial ability to promptly
construct and adequately maintain the proposed casino project; and
(3) the applicant's or casino license holder's
progress toward satisfying any minimum investment commitment
required by the Texas Constitution and the schedule specified in
the application.
(d) In determining whether an applicant meets any minimum
investment commitment required by the Texas Constitution, the
commission may not consider the expenditure of any public money or
facilities developed or built with public assistance or tax
incentives of any kind.
(e) The burden of proving suitability to receive or hold a
casino license is on the applicant or license holder.
(f) In considering the initial and continuing suitability
of an applicant for or holder of a casino license, the commission
may consider the suitability of:
(1) each person holding an equity interest in the
applicant or license holder requiring qualification under Section
2202.060;
(2) each person holding or proposed to receive an
operator license, occupational license, or manufacturer license
employed by or conducting business with the applicant or license
holder; and
(3) each affiliate of the applicant or license holder.
(g) An applicant for or holder of a casino license may not
receive or hold a casino license if the person or an officer or
director:
(1) has been convicted of a felony in the past 20 years
under the laws of this state, any other state, or the United States;
(2) has ever knowingly or intentionally submitted an
application for a license under this chapter that contained false
information;
(3) served as a principal manager for an applicant or
license holder described by Subdivision (1) or (2);
(4) retains or employs another person described by
Subdivision (2);
(5) holds a manufacturer license or casino service
license;
(6) is a commission member; or
(7) is a member of the judiciary or an elected official
of this state.
(h) The commission may adopt rules providing for a person's
reciprocal determination of suitability to hold a casino license
based partly on a determination of suitability to own and operate a
casino in any other jurisdiction the commission considers
reasonable for purposes of this chapter.
(i) In addition to all other applicable considerations and
suitability criteria, if the Texas Constitution requires a casino
license applicant to be selected through an open bid process, the
commission shall consider the following factors when selecting the
applicant:
(1) the relevant financial investment each competing
applicant will make for the applicant's proposed destination resort
project;
(2) the relative prospective revenue this state will
collect from casino gaming and proposed nongaming businesses
associated with the applicant's proposed destination resort
project;
(3) the relative number of state residents who would
be employed at the applicant's proposed destination resort project
and any proposed nongaming businesses and the extent of the
applicant's good faith plan to recruit, train, and promote a
workforce that reflects the diverse populations of this state in
all employment classifications;
(4) the relative extent to which the applicant's
proposed destination resort and any proposed associated hotel and
other nongaming businesses could be reasonably expected to
encourage interstate tourism to this state;
(5) the relative extent to which the scope, design,
location, and construction of the applicant's destination resort
and any proposed associated hotel and other nongaming businesses
could be reasonably expected to contribute to the local economy;
and
(6) the relative commitment of the applicant to
product procurement for the applicant's operations from vendors
based in this state.
Sec. 2202.056. REVIEW OF APPLICATION. (a) The commission
shall issue an order approving or denying an application for a
casino license not later than 180 days after the date the
application is filed.
(b) The commission may adopt rules for issuing any temporary
or interim license as the commission finds necessary to administer
this chapter.
Sec. 2202.057. TRANSFERABILITY; CASINO GAMING OR SPORTS
WAGERING SITE. A casino license is not transferable unless the
transfer is approved in advance by the commission. A casino license
authorizes casino gaming or sports wagering only at the specific
site identified in the license.
Sec. 2202.058. REPLACEMENT CASINO LICENSE. (a) Subject to
Subsection (b), the commission may issue a replacement casino
license to an applicant that proposes to conduct casino gaming or
sports wagering at:
(1) a destination resort location where casino gaming
or sports wagering was previously conducted under a casino license
that expired without being renewed or was revoked or permanently
surrendered; or
(2) a new destination resort located in the same
metropolitan statistical area as a destination resort location
where casino gaming or sports wagering was previously conducted
under a casino license that expired without being renewed or was
revoked or permanently surrendered, on the condition that the
license holder make minimum new investments for the development of
a destination resort in the amount required by the Texas
Constitution of an initial qualified applicant for the license.
(b) The commission may not issue a replacement casino
license under Subsection (a) if issuing the license would cause the
number of active casino licenses to exceed a limit on the number of
active casino licenses established by the Texas Constitution or
this subtitle.
(c) In determining whether to issue a replacement casino
license to an applicant under Subsection (a), the commission shall
determine the initial suitability of the applicant using the
requirements of Section 2202.054 and the considerations of Section
2202.055.
(d) The commission may adopt rules providing additional
considerations or requirements related to issuance of a replacement
casino license under Subsection (a).
Sec. 2202.059. DENIAL, SUSPENSION, AND REVOCATION. (a)
The commission may deny an application for a casino license or
suspend or revoke a casino license if the commission determines
that the applicant is unsuitable to be issued or the license holder
is unsuitable to continue to hold a casino license based on the
applicant's or license holder's:
(1) failure to meet or maintain the requirements of
Section 2202.054; or
(2) lack of suitability as determined by the
commission under Section 2202.055.
(b) If the commission has reasonable grounds to believe that
an applicant is unsuitable to hold or a license holder is unsuitable
to continue to hold a casino license as provided by Subsection (a),
the commission shall conduct an investigation under Section
2202.351 and a hearing under Section 2202.356 and may, based on the
commission's determination, deny issuance of the license or
suspend, limit, or revoke the license.
(c) On suspension or revocation of a casino license under
this section, the license holder must immediately cease all casino
gaming and sports wagering activities.
(d) If the holder of a casino license fails to begin
construction of a casino by the second anniversary of the date the
license was issued or fails to begin casino gaming or sports
wagering operations by the fifth anniversary of the date the
license was issued, the commission may require forfeiture of the
license, unless the commission for good cause previously granted an
appropriate extension of time. The commission shall adopt rules
regarding the criteria and procedure for granting an extension of
time under this subsection.
Sec. 2202.060. REGISTRATION OF INTEREST IN APPLICANT OR
LICENSE HOLDER. (a) Except as provided by Subsection (b), a person
who directly or indirectly owns an equity interest in an applicant
for or holder of a casino license shall register and qualify with
the commission under commission rules and shall provide information
the commission finds necessary to determine the suitability and
eligibility of the person to retain the interest.
(b) The following persons are not required to register or
qualify under this section:
(1) a key employee of the casino license holder that is
required to apply for an occupational license under Section
2202.102;
(2) an institutional investor that is a record owner
of 25 percent or less of the total equity of the casino license
holder;
(3) a person that beneficially owns five percent or
less of the total equity of the casino license holder; and
(4) any other group or class of persons that the
commission by rule exempts from registration or qualification.
(c) A casino license holder shall provide to the commission
the name, address, and interest in the casino license holder of each
person who is exempt from registration or qualification under
Subsection (b).
(d) A registration filed under this section must be
accompanied by the application fee required under Section 2202.202.
Sec. 2202.061. TRANSFERABILITY OF INTEREST; LIMITATION ON
OWNERSHIP. (a) Except as provided by this subsection, a casino
license holder may not issue an equity interest to a person without
the commission's determination of the qualification of the proposed
subscriber or purchaser to hold the interest. A casino license
holder that is a publicly held company or is wholly owned by one or
more publicly held companies may issue equity interests of five
percent or less of its equity interest to any person without the
consent of the commission.
(b) A person beneficially owning more than five percent of
the equity interest of a casino license holder may not:
(1) transfer an interest in the license holder
requiring qualification under Section 2202.060 to any person
without the commission's determination of the qualification of the
proposed transferee to hold the interest, except that a person may
transfer not more than five percent of the person's interest in the
license holder to an affiliate of the transferor or an individual
related to the transferor within the fourth degree by affinity or
consanguinity, as determined under Chapter 573, Government Code,
provided that notice is given to the commission at least 90 days
before the transfer; or
(2) simultaneously beneficially own more than five
percent of the equity interest of more than one other casino license
holder.
(c) A subscriber or proposed transferee of an interest by a
casino license holder shall provide to the commission the
information the commission considers necessary to determine the
qualification of the person. The commission, not later than the
60th day after the date of the application, shall determine the
qualification of a subscriber or proposed transferee and approve or
deny the issuance or transfer.
Sec. 2202.062. DETERMINATION OF QUALIFICATION. (a) The
commission shall determine the qualification of a person to acquire
or continue to hold an equity interest in an applicant for or holder
of a casino license based on the qualification requirements the
commission adopts for the protection of the public interest to
ensure that persons holding securities issued by license holders
are of good character, are honest, have integrity, are financially
stable, and are otherwise qualified to hold the interest.
(b) The burden of proving qualification to acquire or hold
an equity interest in a license holder is on the person acquiring or
holding the interest.
(c) A person is unsuitable to acquire or retain an equity
interest in an applicant for or holder of a casino license if the
person would be unsuitable to receive a casino license under
Section 2202.055(g).
(d) If the commission has reasonable grounds to believe that
a person holding an equity interest in an applicant for or holder of
a casino license may be unqualified to retain the person's
interest, the commission shall conduct an investigation under
Section 2202.351 and a hearing under Section 2202.356 and may,
based on the commission's determination, issue an unsuitability
finding and divestiture order to the holder of the interest and the
issuer of the interest. On receipt of a divestiture order, the
person holding the interest shall tender the person's entire
interest for purchase to the issuer or a third party on terms the
commission approves.
(e) If the commission issues an unsuitability finding and
divestiture order to a holder of an equity interest, the person
subject to the order may not:
(1) receive, directly or indirectly, a dividend,
interest, payment, or distribution of any kind relating to the
security that is the subject of the order; or
(2) exercise, directly or indirectly, any voting power
or other right with respect to the security to which the order
relates.
(f) A person subject to an order may receive payment for the
sale of the person's interest on terms the commission approves.
Sec. 2202.063. HORSE RACING; GREYHOUND RACING; SCOPE OF
COMMISSION AUTHORITY GOVERNING RACETRACK ASSOCIATIONS. (a) In this
section:
(1) "Greyhound racing," "horse race meeting," "horse
racing day," and "racetrack association" have the meanings assigned
to those terms by Section 2021.003.
(2) "Class 1 racetrack" means a class 1 racetrack
described by Section 2026.102.
(b) Except as provided by Subsection (c), the commission by
rule shall ensure that a casino license holder that is also a
racetrack association holding a license for a class 1 racetrack
continues to conduct horse race meetings consistent with a minimum
number of horse racing days that were conducted in 2022.
(c) If required by the Texas Constitution, a racetrack
association that holds a license to conduct horse race meetings at a
racetrack shall cease all horse racing operations at the racetrack
and surrender the license as a condition of receiving and holding a
casino license or designating a person to receive and hold a casino
license as provided by the Texas Constitution.
(d) A racetrack association that holds a license to conduct
greyhound racing shall cease all greyhound racing operations and
surrender the license as a condition of receiving and holding a
casino license or designating a person to receive and hold a casino
license as provided by the Texas Constitution.
(e) Except as otherwise authorized by the commission, a
casino license holder that is also a racetrack association shall
keep the license holder's casino operations and financial records
separate from the racetrack association's racing operations and
records.
(f) An activity regulated by the Texas Racing Commission
under Subtitle A-1 (Texas Racing Act) is not subject to regulation
by the commission.
Sec. 2202.064. TERM OF CASINO LICENSE. A casino license
issued under this subchapter expires on the 50th anniversary of the
date of issuance and may be renewed for one or more 50-year terms.
Sec. 2202.065. LOCAL ZONING LAWS. (a) Notwithstanding any
other law, a destination resort at which casino gaming is
authorized under this chapter is subject to any applicable local
government zoning and land use regulations in place on January 1,
2023.
(b) To the extent a destination resort could satisfy the
criteria for classification as more than one regulated entity or be
subject to more than one body of regulations, a local government
zoning and land use authority shall classify and regulate a
destination resort under the most permissive classification and
regulations to ensure the maximum economic benefit to this state in
the shortest possible time.
SUBCHAPTER C. OPERATOR LICENSE AND OCCUPATIONAL LICENSE
Sec. 2202.101. OPERATOR LICENSE. (a) A person may not
provide services as an operator unless the person holds an operator
license.
(b) An operator license holder must hold a separate operator
license for each casino that the license holder operates.
Sec. 2202.102. OCCUPATIONAL LICENSE. (a) Except as
provided by Subsection (b), a person may not be employed as a gaming
employee unless the person holds an occupational license.
(b) A casino license holder or operator license holder is
not required to obtain an occupational license to provide services
as a gaming employee in the casino to which the license relates.
(c) A casino license holder shall designate at least one
occupational license holder as a key employee with responsibility
over all gaming activities. The commission shall note on each key
employee's occupational license that the individual is designated
as a key employee. At least one key employee must be available at
the casino at all times when casino gaming or sports wagering is
conducted on the casino license holder's premises.
Sec. 2202.103. APPLICATION. (a) An application for an
operator license or occupational license shall be made in
compliance with commission rules and must contain information the
commission finds necessary to determine the suitability and
eligibility of the applicant to function as a casino operator or to
be employed or retained as a gaming employee.
(b) An application for an operator license or an
occupational license must be accompanied by the required
application fee.
(c) The commission may issue a temporary operator license
and a temporary occupational license. The commission shall adopt
rules regarding the terms of temporary operator licenses and
temporary occupational licenses.
Sec. 2202.104. RESIDENCY. A person is eligible to apply for
and hold an operator license or occupational license without regard
to the residency of the applicant.
Sec. 2202.105. DETERMINATION OF SUITABILITY. (a) The
commission shall determine the suitability of an applicant for or
holder of an operator license or occupational license based on
suitability criteria the commission adopts in order to ensure that
a license holder:
(1) is of good character, is honest, and has
integrity;
(2) has sufficient business probity, competence, and
training or experience in the gaming industry to perform the
function contemplated; and
(3) is otherwise qualified to be licensed.
(b) The burden of proving suitability to hold an operator
license or occupational license is on the applicant or license
holder.
(c) In considering the suitability of a company applying for
or holding an operator license or occupational license to hold the
license, the commission shall consider the suitability of each
principal manager and each holder of more than five percent of the
equity interest of the company to individually hold an occupational
license based on the suitability standards that apply to an
applicant for the license generally.
(d) A person may not be found suitable to hold an operator
license or occupational license if that person would be found
unsuitable to hold a casino license under Section 2202.055(g),
except that an applicant for an operator license or occupational
license who has been convicted of a felony may be found suitable if
the applicant is found to be adequately rehabilitated under
applicable rehabilitation requirements adopted by the commission
and is otherwise suitable for licensing.
Sec. 2202.106. DENIAL, SUSPENSION, LIMITATION, OR
REVOCATION OF LICENSE. (a) The commission may deny an application
for or suspend, limit, or revoke an operator license or
occupational license for any reasonable cause.
(b) If the commission has reasonable cause to believe that
an operator license holder or occupational license holder may be
unsuitable to hold the license, giving due consideration to the
protection of the health, safety, morals, and general welfare of
this state and to the reputation of the state's casino gaming
industry, the commission shall conduct an investigation under
Section 2202.351 and a hearing under Section 2202.356 and may,
based on the commission's determination, suspend, limit, or revoke
any license.
(c) On suspension or revocation of an operator license or
occupational license, the license holder shall cease providing all
services in any capacity requiring a license under Section 2202.101
or 2202.102.
(d) A holder of an operator license or occupational license
that has been suspended or revoked may not, while the license is
suspended or revoked:
(1) receive, directly or indirectly, any
compensation, consideration, or payment of any kind relating to the
conduct of casino gaming or sports wagering in any capacity
requiring a license under Section 2202.101 or 2202.102, other than
the payment for services rendered before the suspension or
revocation; or
(2) serve or function in a capacity that would require
a license under Section 2202.101 or 2202.102.
SUBCHAPTER D. MANUFACTURER LICENSE AND CASINO SERVICE LICENSE
Sec. 2202.151. MANUFACTURER LICENSE. (a) A person may not
engage in any segment of the slot machine manufacturing industry in
this state for which a manufacturer license is required under this
section unless the person holds a manufacturer license covering
that segment of the industry. This subsection applies only to slot
machines manufactured for use in this state.
(b) The commission shall adopt rules identifying segments
of the manufacturing industry directly involved in the design,
manufacture, assembly, production, programming, sale, lease,
marketing, distribution, repair, or modification of slot machines
or component parts of slot machines that the commission finds
appropriate for licensing under this section.
(c) A manufacturer license is personal to the license holder
and allows the license holder to conduct business with any casino.
Sec. 2202.152. CASINO SERVICE LICENSE. (a) A person may
not engage in any segment of the casino service industry that
requires a casino service license under a rule adopted under
Subsection (b) or under a provision of Subsection (c) unless the
person holds a casino service license.
(b) The commission shall adopt rules identifying segments
of the casino service industry directly involved with providing
gaming-related services, equipment, and supplies that the
commission finds appropriate for licensing under this section.
(c) A person is required to hold a casino service license if
the person:
(1) operates, conducts, or maintains a casino
gaming- or sports wagering-related business; or
(2) furnishes goods, property, or services to a casino
in exchange for:
(A) a payment based on a percentage of the
earnings, profits, or receipts from the casino; or
(B) a payment the commission finds to be grossly
disproportionate to the value of the goods, property, or service
provided.
(d) A utility company, a retail electric provider, a
municipality, or another political subdivision is not required to
obtain a casino service license under this section.
(e) A casino service license is personal to the license
holder and allows the license holder to conduct business with any
casino.
(f) A casino license holder or operator license holder, or
an employee, officer, or director of a casino license holder or
operator license holder, is not required to obtain a casino service
license to provide services for the casino to which the casino
license or operator license relates.
Sec. 2202.153. APPLICATION. (a) A person seeking a
manufacturer license or casino service license shall submit an
application in accordance with commission rules.
(b) The application must:
(1) contain information the commission finds
necessary to determine the suitability and eligibility of the
applicant; and
(2) be accompanied by the required application fee.
Sec. 2202.154. DETERMINATION OF SUITABILITY. (a) In
considering the suitability of a company applying for or holding a
manufacturer license or casino service license to receive and
continue to hold the license, the commission shall consider the
suitability of each principal manager and each holder of more than
five percent of the equity interest of the company to individually
receive and hold a manufacturer license or casino service license
based on the suitability standards that apply to the company.
(b) The commission may not find a person suitable to hold a
manufacturer license or casino service license if that person would
be found unsuitable to hold a casino license under Section
2202.055(g), except that an applicant for a manufacturer license or
casino service license who has been convicted of a felony may be
found suitable if the applicant is found to be adequately
rehabilitated under applicable rehabilitation requirements adopted
by the commission and the applicant or license holder is otherwise
suitable for licensing.
Sec. 2202.155. DENIAL, SUSPENSION, LIMITATION, OR
REVOCATION OF LICENSE. (a) The commission may deny an application
for or suspend, limit, or revoke a manufacturer license or casino
service license for any reasonable cause.
(b) If the commission has reasonable cause to believe that a
manufacturer license holder or casino service license holder may be
unsuitable to hold the license, giving due consideration to the
protection of the health, safety, morals, and general welfare of
this state and to the reputation of the state's casino gaming and
sports wagering industry, the commission shall conduct an
investigation under Section 2202.351 and a hearing under Section
2202.356 and may, based on the commission's determination, suspend,
limit, or revoke the license.
(c) On suspension or revocation of a license, the license
holder shall cease the performance of manufacturing activity or
casino service requiring a license under this chapter. After the
revocation or suspension of the license, the affected license
holder may not, while the license is revoked or suspended, receive,
directly or indirectly, compensation, consideration, or payment of
any kind relating to manufacturing activity or provision of casino
services in any capacity requiring a license under this chapter,
other than the payment for goods or services provided before the
suspension or revocation.
(d) A casino license holder or operator license holder who
has entered into a lease with a manufacturer license holder or
casino services license holder whose license has been revoked or
suspended may continue to make payments on the lease based on the
original terms and conditions of the lease without modification or
may accelerate the lease and pay the remainder of the lease, at the
sole option of the casino license holder or operator license
holder.
(e) The burden of proving suitability to receive and hold a
manufacturer license or casino service license is on the applicant
or license holder.
SUBCHAPTER E. LICENSE RENEWAL AND FEES
Sec. 2202.201. TERMS. Except as provided by Section
2202.064, an original or renewal license expires on the first
anniversary of the date it is issued.
Sec. 2202.202. APPLICATION AND RENEWAL FEES; LICENSE TERMS.
(a) An application fee received under this section must be:
(1) deposited in the Texas casino gaming fund; and
(2) used for the operation of the commission.
(b) An applicant for a casino license must pay an
application fee as follows, regardless of whether the destination
resort with the casino has been constructed:
(1) $2.5 million for a license for a casino located
within a destination resort that requires a minimum new investment
commitment of at least $2 billion;
(2) $1.25 million for a license for a casino located
within a destination resort that requires a minimum new investment
commitment of at least $1 billion; or
(3) $500,000 for a license for a casino located within
a destination resort that requires a minimum new investment
commitment of at least $250 million.
(c) An applicant for a manufacturer license must pay an
application fee of $1,000.
(d) An applicant for an operator license must pay an
application fee of $1,000.
(e) An applicant for a casino service license must pay an
application fee of $200.
(f) A person registering and applying to qualify to hold an
equity interest in a license holder must pay an application fee of
$200.
(g) An applicant for an occupational license must pay an
application fee of $100.
(h) All application fees must be in the form of a money order
or cashier's check and be payable to the Texas Gaming Commission,
except that the commission may provide for the payment of the fees
by electronic funds transfer or similar method. Application fees
are nonrefundable.
(i) Application fees shall be applied toward the cost of
investigating applicants' suitability for licensing or
qualification under this chapter. Any costs of investigation
incurred in excess of the application fee shall be paid by the
applicant, except that the commission by rule may provide for an
exception to this requirement for casino service licenses and
occupational licenses.
(j) A license described by Subsection (c), (d), (e), (f), or
(g) expires on the first anniversary of the date the license is
issued as provided by Section 2202.201.
(k) The fee for the renewal of a license described by
Subsection (c), (d), (e), (f), or (g) is the same amount as the
initial application fee.
SUBCHAPTER F. TEXAS CASINO GAMING FUND; TAXES
Sec. 2202.251. TEXAS CASINO GAMING FUND. (a) The Texas
casino gaming fund is a special fund in the state treasury.
(b) All application fees and investigation fees collected
by the commission or on the commission's behalf related to casino
gaming shall be deposited to the credit of the Texas casino gaming
fund.
(c) The Texas casino gaming fund may be used only for the
operation of the commission and the administration of this
subtitle. The amount of money in the fund that exceeds the amount
necessary for the operation of the commission and the
administration of this chapter may be transferred to the general
revenue fund as authorized by the legislature.
(d) The operation of the commission and the administration
of this chapter shall be supported by fees generated under this
chapter and by a portion of the taxes imposed by Section 2202.252.
Sec. 2202.252. CASINO GAMING TAX; SPORTS WAGERING TAX;
ALLOCATION OF TAXES. (a) A casino gaming tax is imposed on each
casino license holder in an amount equal to 15 percent of the gross
casino gaming revenue of the casino operated under the license.
(b) The taxes imposed by this section shall be computed and
paid monthly in accordance with the procedures established by
commission rule.
(c) Except as provided by Subsection (d), the revenue from
the taxes imposed by this section is allocated to the general
revenue fund.
(d) Of the revenue from the casino gaming tax imposed by
Subsection (a):
(1) the comptroller shall deposit two percent to the
credit of the escrow account administered by the Texas Racing
Commission and established under Section 2028.204(b) to be used as
horse racing purses in this state;
(2) three percent shall be allocated to the Texas
casino gaming fund to support the operation of the commission and
administration of this chapter;
(3) one-half of one percent shall be allocated to the
general revenue fund and may be appropriated only to fund a
compulsive gambling program established under Subchapter J;
(4) $1 million may be appropriated in each state
fiscal biennium to the Department of Public Safety to be used to
provide grants to prosecuting attorneys for the investigation and
prosecution of offenses related to the possession of gambling
devices;
(5) 10 percent may be appropriated only to fund public
safety programs; and
(6) 80 percent may be appropriated only to fund
education, provided that, if a constitutional amendment proposed by
the 88th Legislature, Regular Session, 2023, renaming the national
research university fund as the Texas University Fund is approved
by the voters and takes effect, an amount equal to the lesser of $1
billion each state fiscal year or 80 percent of the revenue
collected from the casino gaming tax imposed by Subsection (a) each
state fiscal year shall be allocated to the Texas University Fund.
(e) To promote the growth of live horse racing in this
state, the Texas Racing Commission shall allocate the amounts
deposited under Subsection (d)(1) to horse racetrack associations
based on the number of live race dates each licensed horse racetrack
association conducts. The Texas Racing Commission may adopt rules
to implement this subsection.
(f) A sports wagering tax is imposed on each license holder
in an amount equal to 10 percent of the gross sports wagering
revenue of the license holder.
(g) The taxes imposed by this section are due and payable on
or before the 20th day of the month following the month in which the
taxes are imposed.
(h) If the amount of taxes required to be reported and paid
under this section is later determined to be greater or less than
the amount actually reported and paid by the license holder, the
commission shall:
(1) assess and collect the additional taxes determined
to be due with interest until paid; or
(2) refund any overpayment, with interest, to the
license holder.
(i) Interest required to be collected or refunded under
Subsection (h) must be computed, until paid, at the rate of one
percent per month from the first day of the first month following
the due date of the additional taxes or the date of the overpayment
of taxes, as applicable.
Sec. 2202.253. DETERMINATION OF GROSS CASINO GAMING
REVENUE. (a) In calculating gross casino gaming revenue, a prize,
premium, drawing, benefit, or ticket that is redeemable for money,
merchandise, or other promotional allowance, except money, chips,
or tokens paid at face value directly to a patron as the result of a
specific wager and the amount of cash paid to purchase an annuity to
fund winnings, may not be deducted from gross casino gaming revenue
as a loss at any game except a slot machine or a table game with a
progressive jackpot.
(b) In calculating gross casino gaming revenue from slot
machines at a casino, the actual cost to the license holder of any
personal property distributed to a patron as the result of a
legitimate wager may be deducted as a loss, but travel expenses,
food, refreshments, lodging, or services at the license holder's
casino may not be deducted. For the purposes of this subsection,
personal property is distributed as the result of a legitimate
wager if a patron must make a wager before receiving the personal
property, regardless of whether the receipt of the personal
property is dependent on the outcome of the wager.
Sec. 2202.254. REFUND OF OVERPAYMENT. (a) Taxes imposed
under this subchapter that are erroneously collected may be
refunded, on approval of the commission, as other claims against
the state are paid.
(b) Not later than the 90th day after the date notice of the
commission's action on a claim for refund filed under this chapter
is sent by mail, the claimant may bring an action against the
commission on the grounds stated in the claim for the recovery of
any part of the amount of the claim that has been disallowed.
(c) Failure to bring an action within the time specified by
Subsection (b) constitutes a waiver of any demand against the state
on account of alleged overpayments.
(d) If the commission fails to mail its notice of action on a
claim within six months after the date the claim is filed, the
claimant may consider the claim disallowed and bring an action
against the commission on the grounds set forth in the claim for the
recovery of any part of the amount claimed as an overpayment.
(e) A claim for refund of taxes imposed under this
subchapter that are paid in excess of the amount required to be
reported and paid must be filed not later than two years after the
date of overpayment.
Sec. 2202.255. DETERMINATION OF DEFICIENCY. (a) If a
casino license holder fails to make a report of the taxes imposed
under this subchapter, or if the executive director is not
satisfied with the license holder's report of the taxes, the
executive director may compute and determine the amount due based
on:
(1) any facts contained in the report;
(2) an audit conducted by the executive director;
(3) an estimate of the amount due;
(4) any information in the commission's possession or
that may come into the executive director's possession; or
(5) any combination of the methods described by
Subdivisions (1)-(4).
(b) In making a determination, the commission may offset
overpayments and interest due against underpayments and interest or
penalties due for the period of the audit.
(c) The executive director shall give prompt written notice
of a determination of a deficiency under this section to the casino
license holder. Except in the case of fraud or intent to evade the
payment of the tax, a notice of a determination of a deficiency must
be mailed not later than the later of the second anniversary of the:
(1) last day of the calendar month following the
applicable reporting period in which the deficiency occurred; or
(2) date the report is filed by the license holder.
(d) If the reasons for the deficiency are not apparent, the
executive director shall include an explanation of those reasons in
the notice of a determination of a deficiency.
(e) If overpayments and interest exceed underpayments,
penalties, and interest, the excess amount shall be refunded to the
casino license holder.
Sec. 2202.256. PETITION FOR REDETERMINATION; PETITION FOR
JUDICIAL REVIEW. (a) A casino license holder against whom a
determination is made under Section 2202.255 may petition the
commission for a redetermination not later than the 30th day after
the date notice of the determination is served. If a petition for
redetermination satisfying the requirements of Subsection (c) is
not filed by the 30th day, the determination becomes final.
(b) If a petition for redetermination satisfying the
requirements of Subsection (c) is filed within the 30-day period,
the commission shall review the determination and, if the
petitioner requests, shall grant a hearing.
(c) A petition for redetermination must:
(1) specify the contested portions of the
determination of deficiency;
(2) specify the grounds for redetermination;
(3) state whether a hearing is requested; and
(4) be accompanied by payment in full of the
uncontested portion of the determination, including any interest
and penalties.
(d) An order or decision of the commission on a petition for
redetermination is final 10 days after the date the petitioner is
served.
(e) A petitioner against whom an order or decision of the
commission becomes final may, not later than the 60th day after the
date the decision is final, petition for judicial review in the
manner provided by Chapter 2001, Government Code. The executive
director may not petition for judicial review.
Sec. 2202.257. TAX ADMINISTRATION. (a) The commission
shall perform all functions incident to the administration,
collection, enforcement, and operation of a fee or tax imposed
under this chapter. The commission may adopt rules and prescribe
forms for the administration, collection, and enforcement of a fee
or tax and for the reporting of a fee or tax.
(b) Subtitle B, Title 2, Tax Code, applies to the
administration, collection, and enforcement of a tax imposed under
this subchapter, except that the powers and duties assigned to the
comptroller under that subtitle are assigned to the commission.
SUBCHAPTER G. REGULATION OF GAMBLING OPERATIONS
Sec. 2202.301. REGULATION OF CASINO OPERATIONS. (a) The
commission shall adopt rules applicable to the operation of casinos
as the commission finds necessary for the protection of the health,
safety, morals, and general welfare of this state and for the
reputation of the state's casino gaming and sports wagering
industry.
(b) Casinos may operate 24 hours a day, seven days a week. A
license holder may elect other hours of operation.
Sec. 2202.302. SPORTS WAGERING. Sports wagering is
authorized only under a license issued by the commission and is
subject to rules established by the commission.
Sec. 2202.303. USE OF CHIPS OR TOKENS. All casino gaming
and sports wagering must be conducted with legal tender of the
United States or with chips, tokens, or other instrumentality
approved by the commission for that purpose.
Sec. 2202.304. REPORTING REQUIREMENTS. (a) A casino
license holder shall keep the license holder's books and records in
a manner that clearly shows the total amount of gross casino gaming
revenue and gross sports wagering revenue, as applicable, and other
revenues received.
(b) The books and records kept by a casino license holder
relating to casino gaming or sports wagering operations are not
public records and the publication and dissemination of the
materials by the commission is prohibited.
(c) A casino license holder shall file a report of each
change of the corporate officers and directors with the commission.
(d) A casino license holder shall report to the executive
director in writing a change in company employees who have been
designated as key employees.
(e) The commission may require that a company furnish the
commission with a copy of the company's federal income tax return
not later than the 30th day after the date the return is filed with
the federal government.
Sec. 2202.305. EXCLUSION OF PERSONS. (a) The commission by
rule shall provide for the establishment of a list of persons who
must be excluded or ejected from a casino. The list may include a
person whose presence in the casino or establishment is determined
by the commission to pose a threat to the interests of this state,
to licensed casino gaming or sports wagering, or to both interests.
(b) In making a determination under this section, the
commission may consider any:
(1) prior conviction of a crime that is a felony in
this state or under the laws of the United States or a crime
involving moral turpitude or a violation of the gaming laws of a
state; or
(2) violation of or conspiracy to violate this
subtitle relating to:
(A) the failure to disclose an interest in a
casino for which the person must obtain a license;
(B) wilful evasion of a fee or a tax;
(C) a notorious or unsavory reputation that would
adversely affect public confidence and trust that the gaming
industry is free from criminal or corruptive elements; or
(D) a written order of a governmental agency that
authorizes the exclusion or ejection of the person from a casino
where casino gaming, sports wagering, or pari-mutuel wagering is
conducted.
Sec. 2202.306. INTERNAL AUDIT AND CONTROL SYSTEMS. (a) A
casino license holder shall adopt an internal control system that
provides for:
(1) the safeguarding of its assets and revenues,
especially the recording of cash and evidences of indebtedness; and
(2) the provision of reliable records, accounts, and
reports of transactions, operations, and events, including reports
to the executive director and the commission.
(b) The internal control system must be designed to
reasonably ensure that:
(1) assets are safeguarded;
(2) financial records are accurate and reliable;
(3) transactions are performed only in accordance with
management's general or specific authorization;
(4) transactions are recorded adequately to allow
proper reporting of gross casino gaming revenue, gross sports
wagering revenue, fees, and taxes and to maintain accountability
for assets;
(5) access to assets is allowed only in accordance
with management's specific authorization;
(6) recorded accountability for assets is compared
with actual assets at reasonable intervals and appropriate action
is taken with respect to any discrepancies; and
(7) functions, duties, and responsibilities are
appropriately segregated and performed in accordance with sound
practices by competent, qualified personnel.
(c) A casino license holder and an applicant for a casino
license shall describe, in a manner approved or required by the
executive director, the license holder's or applicant's
administrative and accounting procedures in detail in a written
system of internal control. A casino license holder and applicant
for a casino license shall submit a copy of the license holder's or
applicant's written system to the executive director. A written
system must include:
(1) an organizational chart depicting appropriate
segregation of functions and responsibilities;
(2) a description of the duties and responsibilities
of each position shown on the organizational chart;
(3) a detailed, narrative description of the
administrative and accounting procedures designed to satisfy the
requirements of Section 2202.304(a);
(4) a written statement signed by the license holder's
chief financial officer and either the license holder or the
license holder's chief executive officer attesting that the system
satisfies the requirements of this section;
(5) if the written system is submitted by an
applicant, a letter from an independent certified public accountant
stating that the applicant's written system has been reviewed by
the certified public accountant and complies with the requirements
of this section; and
(6) other items the executive director may require.
(d) The commission shall adopt minimum standards for
internal control procedures.
Sec. 2202.307. AGE REQUIREMENTS. A person under 21 years of
age may not:
(1) play, be allowed to play, place wagers on, or
collect winnings from, personally or through an agent, any casino
gaming or sports wagering authorized under this chapter; or
(2) be employed as a gaming employee.
Sec. 2202.308. ACCEPTANCE OF CREDIT INSTRUMENTS. (a) A
credit instrument evidencing a gaming transaction may be enforced
by legal process.
(b) A license holder may accept an incomplete credit
instrument that is signed by a patron and states the amount of the
debt. The license holder may complete the instrument as is
necessary for the instrument to be presented for payment.
(c) A license holder:
(1) may not accept a credit instrument that is
incomplete, except as authorized by Subsection (b); and
(2) may accept a credit instrument that is payable to
an affiliate or may complete a credit instrument in the name of an
affiliate as payee if the credit instrument otherwise complies with
this section and the records of the affiliate pertaining to the
credit instrument are made available to the executive director on
request.
(d) This section does not prohibit the establishment of an
account by a deposit of cash, recognized traveler's check, or any
other instrument that is equivalent to cash.
(e) Any person, license holder, or agent or employee of the
person or license holder who violates this section is subject only
to the penalties provided in this chapter relating to disciplinary
actions. The failure of a person to comply with this section or
commission rules does not invalidate a credit instrument or affect
the ability to enforce the credit instrument or the transaction
that the credit instrument represents.
Sec. 2202.309. GAMBLING DEBTS. (a) Except as otherwise
provided by this chapter, gambling debts not evidenced by a credit
instrument are void and unenforceable and do not give rise to any
administrative or civil cause of action.
(b) A claim by a patron of a license holder for payment of a
gambling debt not evidenced by a credit instrument may be resolved
by the executive director under commission rules.
(c) The executive director shall send a copy of the
executive director's ruling by first class mail to the attorneys of
record and shall keep an appropriate copy of the mailing. If a
party is not represented by an attorney of record, the executive
director shall send a copy of the ruling by first class mail to the
party and shall keep an appropriate record of the mailing.
(d) A party or attorney of record notified by mail under
this section is presumed to have been notified on the date on which
the notice is mailed.
(e) A party aggrieved by the executive director's ruling is
entitled to have the claim resolved by the commission in a contested
case under Chapter 2001, Government Code, if the party files a
written complaint with the commission challenging the executive
director's ruling not later than the 20th day after the date on
which the party or the party's attorney of record is notified by
mail.
Sec. 2202.310. QUESTIONING AND DETENTION OF PERSONS. (a) A
casino license holder or the license holder's officer, employee, or
agent may question on the premises of the license holder's casino
any person suspected of violating this chapter while on the casino
premises. The casino license holder or the license holder's
officer, employee, or agent is not criminally or civilly liable:
(1) as a result of the questioning; or
(2) for reporting the person suspected of the
violation to the executive director or law enforcement authorities.
(b) A casino license holder or the license holder's officer,
employee, or agent who has reasonable cause to believe that there
has been a violation of this chapter in the license holder's casino
by a person may take that person into custody and detain the person
in the casino in a reasonable manner and for a reasonable length of
time. The taking into custody and detention does not render a
license holder or the license holder's officer, employee, or agent
criminally or civilly liable unless it is established by clear and
convincing evidence that the taking into custody and detention are
unreasonable under all the circumstances.
(c) A casino license holder or the license holder's officer,
employee, or agent is not entitled to the immunity from liability
provided by Subsection (a) or (b) unless there is displayed in a
conspicuous place in the license holder's establishment a notice in
boldface type, clearly legible, and in substantially this form:
A CASINO LICENSE HOLDER OR THE HOLDER'S OFFICER,
EMPLOYEE, OR AGENT WHO HAS A REASONABLE CAUSE TO
BELIEVE THAT A PERSON HAS VIOLATED A PROVISION OF
CHAPTER 2202, OCCUPATIONS CODE, MAY QUESTION OR DETAIN
THAT PERSON IN THIS ESTABLISHMENT.
Sec. 2202.311. SLOT MACHINE DISABLED. (a) The commission
may disable a slot machine operated by a license holder under this
chapter at the time:
(1) a proceeding to suspend a casino license is
initiated;
(2) the commission discovers the license holder failed
to deposit money received from slot machine operations as required;
or
(3) an act or omission occurs that, under commission
rules, justifies the termination of slot machine operations to:
(A) protect the integrity of gaming or the public
health, welfare, or safety; or
(B) prevent financial loss to this state.
(b) The commission shall immediately disable a slot machine
if necessary to protect the public health, welfare, or safety.
Sec. 2202.312. SLOT MACHINE DISTRIBUTION AND COMMISSION
APPROVAL. (a) A person may not distribute a slot machine or other
gaming device or associated equipment for placement at a casino in
this state unless the machine or equipment has been approved by the
commission.
(b) Only a person that holds a casino license or
manufacturer license issued under this chapter may apply for
approval of a slot machine or other gaming device or associated
equipment.
Sec. 2202.313. TECHNICAL STANDARDS FOR GAMING EQUIPMENT.
The commission by rule shall establish minimum technical standards
for gaming devices and associated equipment that may be operated in
this state.
Sec. 2202.314. INCIDENT REPORTS. (a) A casino license
holder or operator license holder shall record all potential
criminal violations known to the license holder and related to
casino gaming or sports wagering activity in the casino.
(b) The casino license holder or operator license holder for
a casino shall assign each incident, without regard to materiality,
a sequential number and, at a minimum, provide the following
information in a permanent record prepared in accordance with
commission rules to ensure the integrity of the record:
(1) the number assigned to the incident;
(2) the date and time of the incident;
(3) the nature of the incident;
(4) each person involved in the incident; and
(5) the name of the employee or other agent of the
owner or operator who investigated the incident.
Sec. 2202.315. SLOT MACHINE EVENTS. A casino license
holder or operator license holder shall keep a database of slot
machine events. The commission by rule shall determine what
constitutes a slot machine event for purposes of this section.
Sec. 2202.316. SECURITY. (a) The casino license holder or
operator license holder of a casino shall:
(1) continuously monitor all slot machines through the
use of a closed-circuit television system that records activity for
a continuous 24-hour period, retain all videotapes or other media
used to store video images for not fewer than seven days, and make
the tapes or media available to the commission on request;
(2) submit for commission approval a security plan and
a floor plan of the area where slot machines are operated showing
slot machine locations and security camera mount locations; and
(3) employ at least the minimum number of private
security personnel the commission determines is necessary to
provide for the safe operation of the casino and the safety and
well-being of the players.
(b) Private security personnel must be present during all
hours of operation at each casino.
(c) An agent or employee of the commission or the Department
of Public Safety or other law enforcement personnel may be present
at a casino at any time.
(d) The commission may adopt rules to impose additional
surveillance and security requirements related to casinos and the
operation of slot machines.
Sec. 2202.317. COMMISSION RIGHT TO ENTER. The commission
or the commission's representative, after displaying appropriate
identification and credentials, has the free and unrestricted right
to:
(1) enter and inspect a premises in which casino
gaming or sports wagering is conducted and any premises where
gaming devices, table games, or associated equipment is
manufactured, sold, or distributed; and
(2) inspect and copy the records of a casino license
holder or operator license holder of a casino pertaining to the
casino gaming or sports wagering.
Sec. 2202.318. APPOINTMENT OF SUPERVISOR. (a) The
commission by rule may provide for the appointment of a supervisor
to manage and operate a casino at the direction of the commission
and perform any act that a casino license holder or operator license
holder is entitled to perform in the event that:
(1) the casino license, operator license, or other
license required for operation of the casino is revoked or
suspended, lapses, or is surrendered;
(2) a casino has been conveyed or transferred to a
secured party receiver or trustee who does not hold the necessary
licenses to operate the casino; or
(3) any other event occurs that causes the casino to
cease the operation of slot machines.
(b) The rules may allow the commission to:
(1) take any action or adopt any procedure necessary
to operate a casino pending the licensing of a casino license
applicant or operator license applicant that seeks to operate the
casino on the transfer or sale of the casino; and
(2) if necessary to continue the operation of the
casino, sell the casino to a person that holds or has applied for
the licenses required to operate the casino under this chapter and
make appropriate distributions of the proceeds of the sale.
Sec. 2202.319. OFFENSE: CONVEYANCE OF CASINO PROPERTY. (a)
A person commits an offense if during the pendency of any proceeding
before the commission that may result in the appointment of a
supervisor or during the period of supervision the person:
(1) sells, leases, or otherwise conveys for less than
full market value or pledges as security any property of a casino;
or
(2) removes from this state or secretes from the
commission or the supervisor any property, money, books, or records
of the casino, including evidences of debts owed to the casino.
(b) An offense under Subsection (a) is a felony of the third
degree.
SUBCHAPTER H. ENFORCEMENT; PRIVILEGED AND CONFIDENTIAL
INFORMATION
Sec. 2202.351. ENFORCEMENT. (a) The executive director
shall conduct an appropriate investigation to:
(1) determine whether there has been a violation of
this chapter or of a commission rule;
(2) determine facts, conditions, practices, or
matters that the executive director considers necessary or proper
to aid in the enforcement of a law or rule;
(3) aid in adopting rules;
(4) secure information as a basis for recommending
legislation relating to this chapter;
(5) determine facts regarding whether an applicant or
a license holder meets all requirements and suitability criteria to
be eligible to hold a license under this subtitle; and
(6) determine whether a license holder is able to meet
the license holder's financial obligations, including all
financial obligations imposed by this chapter, as they become due.
(b) If after an investigation the executive director is
satisfied that a license should be denied, limited, conditioned,
suspended, or revoked, or that a fine should be levied, the
executive director shall initiate a hearing under Section 2202.356.
Sec. 2202.352. ABSOLUTE PRIVILEGE FOR REQUIRED DOCUMENTS
AND COMMUNICATIONS; PRIVILEGED DOCUMENTS. (a) An applicant or
license holder has absolute privilege for the content of any
document or communication of the applicant or license holder that
is transmitted or made to the commission or a commission employee or
designee to comply with any law, including a commission rule, or a
subpoena issued by the commission or to assist the commission or a
commission employee or designee in the performance of the duties of
the commission or a commission employee or designee. Any document
or communication to which this subsection applies does not impose
liability for defamation and is not a ground for recovery in any
civil action by a person other than the commission.
(b) If a document or communication contains information
that is privileged under a law of this state or the law of any other
jurisdiction in which the document or communication is created or
stored, the privilege is not waived or lost because the document or
communication is disclosed to the commission or a commission
employee or designee.
(c) Notwithstanding the powers granted to the commission
and the executive director by this chapter:
(1) the commission or the commission's employee or
designee may not release or disclose privileged information,
documents, or communications provided by an applicant or license
holder and required by a lawful court order unless timely notice of
the potential release or disclosure has been given to the applicant
or license holder and the applicant or license holder has provided
prior written consent to the release or disclosure;
(2) the commission and the commission's employees and
designees shall maintain all privileged information, documents,
and communications in a secure place accessible only to members of
the commission and the commission's employees and designees; and
(3) the commission shall adopt procedures to protect
the privileged nature of information, documents, and
communications provided by an applicant or license holder.
Sec. 2202.353. RELEASE OF CONFIDENTIAL INFORMATION. An
application to a court for an order requiring the commission or the
executive director to release any information declared by law to be
confidential shall be made only on a motion in writing delivered not
later than the 10th day before the date of application to the
commission, the attorney general, and all persons who may be
affected by the entry of the order. Copies of the motion and all
papers filed in support of the motion shall be served with the
notice by delivering a copy in person or by certified mail to the
last known address of the person to be served.
Sec. 2202.354. EMERGENCY ORDERS. (a) The commission may
issue an emergency order for suspension, limitation, or
conditioning of a license or may issue an emergency order requiring
a casino to keep an individual license holder from the premises of
the licensed establishment or to not pay the license holder any
remuneration for services or any profits, income, or accruals on
the license holder's investment in the casino.
(b) An emergency order may be issued only if the commission
determines that:
(1) a license holder has wilfully failed to report,
pay, or truthfully account for a fee or tax imposed under this
chapter or wilfully attempted in any manner to evade or defeat a fee
or tax payment;
(2) a license holder or gaming employee has cheated at
a gambling game; or
(3) the action is necessary for the immediate
preservation of the public peace, health, safety, morals, good
order, or general welfare.
(c) The emergency order must state the grounds on which it
is issued, including a statement of facts constituting the alleged
emergency necessitating the action.
(d) An emergency order may be issued only with the approval
of and under the signature of four or more members of the
commission.
(e) An emergency order is effective immediately on issuance
and service on the license holder or resident agent of the license
holder, gaming employee, or, in cases involving registration, on
issuance and service on the person or entity involved or registered
agent of the entity involved. An emergency order may suspend,
limit, condition, or take other action in relation to the license of
one or more persons in an operation without affecting other
individual license holders or the casino. An emergency order
remains effective until further order of the commission or final
disposition of the case.
(f) Not later than the fifth day after the date of issuance
of an emergency order, the executive director shall file a
complaint and serve it on the person or entity involved. The person
or entity against whom the emergency order has been issued and
served is entitled to a hearing before the commission and to
judicial review of the decision and order of the commission under
Chapter 2001, Government Code. Judicial review is under the
substantial evidence rule, as provided by that chapter.
Sec. 2202.355. SUSPENSION OR REVOCATION OF LICENSE. (a)
The commission may suspend or revoke a license issued under this
chapter if the holder of the license at any time fails to meet the
eligibility requirements set forth in this chapter.
(b) Failure to timely remit gaming revenue generated by slot
machines to the commission or any tax or other fee owed to this
state as demonstrated by report from the applicable taxing
authority or to timely file any report or information required
under this chapter as a condition of any license issued under this
chapter may be grounds for suspension or revocation, or both, of a
license issued under this chapter.
Sec. 2202.356. LICENSE HEARING; DISCIPLINARY HEARING. (a)
Before the commission denies an application, suspends or revokes a
license, or imposes a fine for a violation of this chapter, the
commission shall provide written notice to the applicant or license
holder of the denial, the suspension and the period of suspension,
the revocation, or the amount of the fine. The notice shall
include:
(1) the effective date of the denial, suspension,
revocation, or the fine, as applicable;
(2) each reason for the denial, suspension,
revocation, or fine;
(3) an explanation of the evidence supporting the
reasons;
(4) a statement explaining that the applicant or
license holder is entitled to an opportunity to present the
applicant's or license holder's position in response to the notice,
on or before the 15th day after the date the notice is delivered
personally or mailed to the applicant or license holder; and
(5) a statement explaining the person's right to an
administrative hearing to determine whether the denial,
suspension, revocation, or fine is warranted.
(b) The notice required under Subsection (a) must be made by
personal delivery or by mail to the person's mailing address as it
appears in the commission's records.
(c) To obtain an administrative hearing on a denial,
suspension, revocation, or fine under this section, a person must
submit a written request for a hearing to the commission not later
than the 20th day after the date notice is delivered personally or
mailed to the person, as applicable.
(d) If the commission receives a timely request under
Subsection (c), the commission shall provide the person with an
opportunity for a hearing as soon as practicable. If the commission
does not receive a timely request under Subsection (c), the
commission may impose the fine, deny the application, or suspend or
revoke the license or sustain the denial, suspension, or revocation
without a hearing.
(e) Except as provided by Subsection (g) or otherwise
provided by this subsection, the hearing must be held not earlier
than the 11th day after the date the written request is submitted to
the commission. A hearing may be held before the 11th day after the
date the written request is submitted to the commission if the
hearing requestor and the commission agree to a hearing at an
earlier date.
(f) The commission may provide that a revocation or
suspension takes effect on receipt of notice under Subsection (a)
if the commission finds that the action is necessary to prevent or
remedy a threat to public health, safety, or welfare. The
commission by rule shall establish a nonexclusive list of
violations that present a threat to the public health, safety, or
welfare.
(g) A hearing on a suspension or revocation that takes
effect on receipt of notice must be held not earlier than the ninth
day after the date the written request is submitted to the
commission, unless the commission and the hearing requestor agree
to an earlier date, and not later than the 14th day after the date
the commission receives the request for a hearing under this
section, unless the commission and the hearing requestor agree to a
later date. Except as otherwise provided by this subsection, the
revocation or suspension continues in effect until the hearing is
completed. If the hearing is continued, the revocation or
suspension remains in effect during the continuance at the request
of the hearing requestor or on a finding of good cause by the
commission or administrative law judge.
(h) To prevail in an administrative hearing under this
section, the hearing requestor must demonstrate by clear and
convincing evidence that the denial, suspension, revocation, or
imposition of a fine was unwarranted or otherwise unlawful. The
post-deprivation hearing may be conducted by the commission or
referred to the State Office of Administrative Hearings.
(i) The administrative record created by the hearing
conducted by the State Office of Administrative Hearings shall be
provided to the commission for review and determination.
(j) If an administrative law judge of the State Office of
Administrative Hearings conducts a hearing under this section and
the proposal for decision supports the commission's position, the
administrative law judge shall include in the proposal a finding of
the costs, fees, expenses, and reasonable and necessary attorney's
fees this state incurred in bringing the proceeding.
(k) The commission may adopt the findings for costs, fees,
and expenses and make the finding a part of the final order entered
in the proceeding. Proceeds collected from a finding made under
this section shall be paid to the commission.
Sec. 2202.357. JUDICIAL REVIEW OF DENIAL, SUSPENSION,
REVOCATION, OR FINE IMPOSITION. (a) A person aggrieved by a final
decision of the commission to deny, suspend, or revoke a license or
to impose any fine may obtain judicial review before a district
court in Travis County. The sovereign immunity of the state from
suit and from liability is waived for the limited purpose of
allowing a person to obtain judicial review as provided in this
section.
(b) The judicial review must be instituted by serving on the
commission and filing a petition not later than the 20th day after
the effective date of the final decision and must identify the order
appealed from and the grounds or reason why the petitioner contends
the decision of the commission should be reversed or modified.
(c) The review must be conducted by the court sitting
without jury and must not be a trial de novo but is confined to the
record on review. The reviewing court may only affirm the decision,
remand the case for further proceedings, or reverse the decision if
the substantial rights of the petitioner have been violated.
(d) If any court of competent jurisdiction, on judicial
review limited to the administrative record before the commission
and subject to the substantial evidence standard, concludes that:
(1) the denial of the issuance of the license was
unwarranted or otherwise unlawful, the sole remedy available is
invalidation of the commission's final decision and remand to the
commission for reconsideration of the application; or
(2) the suspension, revocation, or fine was
unwarranted or otherwise unlawful, the sole remedy available is
reinstatement of the license or invalidation of the fine, as
applicable.
(e) The commission, this state, or the members, officers,
employees, and authorized agents of the commission or the state are
not subject to monetary damages, attorney's fees, or court costs
resulting from a fine imposed or from the denial, suspension, or
revocation of a license.
Sec. 2202.358. EFFECT OF DENIAL OF LICENSE. (a) If a
person denied a license has previously been issued a temporary
license, the temporary license expires immediately on the issuance
of the denial.
(b) Except as otherwise authorized by the commission, a
person denied a license may not reapply for any license before the
second anniversary of the date of the denial.
Sec. 2202.359. AGREEMENT TO WAIVE ENFORCEABILITY. A
license holder by virtue of accepting the license agrees that the
privilege of holding a license under this chapter is conditioned on
the license holder's agreement to Sections 2202.355, 2202.356, and
2202.357, and the license holder waives any right to challenge or
otherwise appeal the enforceability of those sections.
Sec. 2202.360. LIMITED WAIVER OF SOVEREIGN IMMUNITY; NO
LIABILITY OF STATE FOR ENFORCEMENT. (a) Except as expressly
provided by the Texas Constitution, this state does not waive its
sovereign immunity by negotiating gaming agreements with Indian
tribes or other persons for the operation of casino gaming, sports
wagering, or gambling games under this subtitle. An actor or agent
for this state may not waive this state's sovereign immunity absent
an express legislative grant of that authority. The only waiver of
sovereign immunity relative to gaming operations is provided by
this section.
(b) With regard to gaming operations on Indian lands, this
state consents to the jurisdiction of the District Court of the
United States with jurisdiction in the county where the Indian
lands are located, or if the federal court lacks jurisdiction, to
the jurisdiction of a district court in Travis County, solely for
the purpose of resolving disputes arising from a gaming agreement
authorized under this chapter or Chapter 2203 for declaratory or
injunctive relief or contract damages of $100,000 or more or from
the failure of the state to enter into a gaming agreement as
required by Section 2203.001. Any disputes relating to damages or
other awards valued at less than $100,000 shall be arbitrated under
the rules of the American Arbitration Association, provided,
however, that application of the rules may not be construed as a
waiver of sovereign immunity.
(c) All financial obligations of the commission are payable
solely out of the income, revenues, and receipts of the commission
and are subject to statutory restrictions and appropriations.
(d) This state and the commission are not liable if
performance by the commission is compromised or terminated by acts
or omissions of the legislature or the state or federal judiciary.
(e) This state and the commission are not liable for acts or
omissions related to the enforcement of this subtitle.
SUBCHAPTER I. PENALTIES AND OFFENSES
Sec. 2202.401. FAILURE TO PAY FEE OR TAX. (a) License fees
and other fees required by this chapter must be paid to the
commission on or before the dates provided by law for each fee.
(b) A person failing to timely pay a fee or tax when due
shall pay in addition a penalty of not less than $50 or 25 percent of
the amount due, whichever is greater. The penalty may not exceed
$1,000 if the fee or tax is less than 10 days late and may not exceed
$5,000 under any circumstances. The commission shall collect the
penalty in the same manner as other charges, license fees, and fines
are collected under this chapter.
Sec. 2202.402. WILFUL FAILURE TO REPORT, PAY, OR ACCOUNT
FOR FEE OR TAX. (a) A person commits an offense if the person
wilfully:
(1) fails to report, pay, or truthfully account for a
fee or tax imposed under this chapter; or
(2) attempts in any manner to evade or defeat a fee or
tax imposed under this chapter.
(b) An offense under this section is a Class A misdemeanor.
Sec. 2202.403. CASINO GAMING AND SPORTS WAGERING FRAUD.
(a) A person commits an offense if the person knowingly:
(1) in connection with casino gaming or sports
wagering:
(A) alters or misrepresents the outcome of a game
or other event on which wagers have been made after the outcome is
made sure but before it is revealed to the players;
(B) places, increases, or decreases a bet or
determines the course of play after acquiring knowledge, not
available to all players, of the outcome of the game or an event
that affects the outcome of the game or that is the subject of the
bet or aids anyone in acquiring such knowledge for the purpose of
placing, increasing, or decreasing a bet or determining the course
of play contingent on that event or outcome;
(C) places or increases a bet after acquiring
knowledge of the outcome of the game or other event that is the
subject of the bet, including past posting and pressing bets; or
(D) reduces the amount wagered or cancels the bet
after acquiring knowledge of the outcome of the game or other event
that is the subject of the bet, including pinching bets;
(2) claims, collects, or takes or attempts to claim,
collect, or take money or anything of value in or from a gambling
game, with the intent to defraud, without having made a wager
contingent on the gambling game;
(3) claims, collects, or takes an amount greater than
the amount won from a gambling game;
(4) entices or induces another to go to a place where a
gambling game is being conducted or operated in violation of this
subtitle, with the intent that the other person play or participate
in that gambling game; or
(5) manipulates, with the intent to cheat, a component
of a gaming device in a manner contrary to the designed and normal
operational purpose for the component, including varying the pull
of the handle of a slot machine, with knowledge that the
manipulation affects the outcome of the game or with knowledge of an
event that affects the outcome of the game.
(b) An offense under this section is a felony of the third
degree.
Sec. 2202.404. USE OF PROHIBITED DEVICES. (a) A person
commits an offense if the person, at a casino, uses or possesses
with the intent to use a device, other than those customarily used
in the conduct of gaming, to assist in:
(1) projecting the outcome of the game;
(2) keeping track of the cards played; or
(3) analyzing the probability of the occurrence of an
event relating to the game.
(b) An offense under this section is a felony of the third
degree.
Sec. 2202.405. USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN,
CHIP, OR COIN. (a) A person commits an offense if the person
knowingly uses counterfeit tokens, chips, or coins in a gambling
game.
(b) A person commits an offense if the person, in playing
any gambling game designed to receive, be played with, or be
operated by lawful tender of the United States, tokens or chips
approved by the executive director, or other instrumentality
approved by the commission for use in the gambling game knowingly
uses a token, chip, or coin or other instrumentality other than
tokens, chips, coins, or other instrumentality approved by the
commission and designed for the gambling game.
(c) A person, other than an authorized employee of a license
holder acting in furtherance of the person's employment within an
establishment, commits an offense if the person knowingly has on
the person's body or in the person's possession on or off the
premises of a casino a device intended to be used to violate the
provisions of this chapter.
(d) A person, other than an authorized employee of a license
holder acting in furtherance of the person's employment within a
casino, commits an offense if the person knowingly has on the
person's body or in the person's possession on or off the premises
of a casino a key or device known to have been designed for the
purpose of and suitable for opening, entering, or affecting the
operation of a gambling game, a drop box, or an electronic or
mechanical device connected to the game or box or for removing money
or other contents from the game or box.
(e) A person commits an offense if the person, with the
intent to manufacture slugs for unauthorized use in gaming devices
located at a casino, knowingly has on the person's body or in the
person's possession paraphernalia for manufacturing slugs. In this
subsection, "paraphernalia for manufacturing slugs" means the
equipment, products, and materials that are intended for use or
designed for use in manufacturing, producing, fabricating,
preparing, testing, analyzing, packaging, storing, or concealing a
counterfeit facsimile of the chips or tokens approved by the
executive director or a lawful coin of the United States, the use of
which is an offense under Subsection (b). The term includes:
(1) lead or lead alloys;
(2) molds, forms, or similar equipment capable of
producing a likeness of a gaming token or United States coin;
(3) melting pots or other receptacles;
(4) torches; and
(5) tongs, trimming tools, or other similar equipment.
(f) Possession of more than one of the devices, equipment,
products, or materials described in this section permits a
rebuttable inference that the possessor intended to use them to
cheat. In this subsection, "cheat" has the meaning assigned by
Section 2202.406.
(g) An offense under this section is a felony of the third
degree.
Sec. 2202.406. CHEATING. (a) In this section, "cheat"
means to alter the elements of chance, method of selection, or
criteria that determine the result of a game or the amount or
frequency of payment in a game.
(b) A person commits an offense if the person knowingly
cheats at any gambling game.
(c) An offense under this section is a state jail felony.
Sec. 2202.407. POSSESSION OF UNLAWFUL GAMING DEVICE. (a) A
person commits an offense if the person possesses any slot machine
or other gaming device that the person knows has been manufactured,
sold, or distributed in violation of this chapter.
(b) An offense under this section is a Class A misdemeanor.
Sec. 2202.408. UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION
OF GAMING EQUIPMENT. (a) In this section, "cheat" has the meaning
assigned by Section 2202.406.
(b) A person commits an offense if the person manufactures,
sells, or distributes a gaming device or associated equipment with
the intent that the device or equipment be used to violate this
chapter.
(c) A person commits an offense if the person marks, alters,
or otherwise modifies any associated equipment or gaming device in
a manner that:
(1) affects the result of a wager by determining a win
or loss; or
(2) alters the normal criteria of random selection
that affect the operation of a game or determine the outcome of a
game.
(d) A person commits an offense if the person instructs
another person in cheating or in the use of a device for cheating at
any gambling game authorized to be conducted at a casino, with the
knowledge or intent that the information or use may be employed to
violate this chapter.
(e) An offense under this section is a felony of the third
degree.
Sec. 2202.409. UNLAWFUL REPORTING. (a) A person commits an
offense if the person, in a license application, in a book or record
required to be maintained by this chapter or a rule adopted under
this chapter, or in a report required to be submitted by this
chapter or a rule adopted under this chapter:
(1) makes a statement or entry that the person knows to
be false or misleading; or
(2) knowingly fails to maintain or make an entry the
person knows is required to be maintained or made.
(b) A person commits an offense if the person knowingly
refuses to produce for inspection by the executive director a book,
record, or document required to be maintained or made by this
chapter or a rule adopted under this chapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 2202.410. OTHER UNLAWFUL VIOLATIONS. (a) A person
commits an offense if the person knowingly violates, attempts to
violate, or conspires to violate a provision of this chapter
specifying a prohibited act in a manner that is not otherwise
specified as an offense under this subchapter.
(b) An offense under this section is a Class A misdemeanor.
Sec. 2202.411. UNAUTHORIZED OPERATION, USE, OR POSSESSION
OF GAMING DEVICE. (a) A person commits an offense if the person
operates, uses, or possesses a gaming device. An offense under this
subsection is a felony of the third degree.
(b) It is an exception to the application of Subsection (a)
that:
(1) the operation, use, or possession of the gaming
device is expressly authorized by this chapter or other law,
including the transport of a gaming device to or from a casino as
provided by this chapter;
(2) a manufacturer license holder is storing a gaming
device as authorized by the commission for a period not to exceed
180 consecutive days or a longer period approved by the commission;
or
(3) the gaming devices are possessed by the commission
for study and evaluation.
(c) This section does not prohibit the operation, use, or
possession of equipment, machines, technological aids, or other
devices allowed in connection with the play of bingo under Chapter
2001.
Sec. 2202.412. SALE OF GAMBLING GAME TO OR PURCHASE OF
GAMBLING GAME BY PERSON YOUNGER THAN 21 YEARS OF AGE. (a) A person
licensed under this chapter or an employee of the person commits an
offense if the person intentionally or knowingly allows a person
younger than 21 years of age to play a gambling game or engage in
sports wagering.
(b) An individual who is younger than 21 years of age
commits an offense if the individual:
(1) plays a gambling game;
(2) engages in sports wagering; or
(3) falsely represents the individual to be 21 years
of age or older by displaying evidence of age that is false or
fraudulent or misrepresents in any way the individual's age in
order to play a gambling game or engage in sports wagering.
(c) An offense under Subsection (a) is a Class C
misdemeanor.
(d) An offense under Subsection (b) is a misdemeanor
punishable by a fine not to exceed $250.
(e) It is a defense to prosecution under Subsection (b) that
the individual younger than 21 years of age is participating in an
inspection or investigation on behalf of the commission or other
appropriate governmental entity regarding compliance with this
section.
Sec. 2202.413. PLAY OF GAMBLING GAME WITH PUBLIC ASSISTANCE
FUNDS. (a) A person commits an offense if the person intentionally
or knowingly plays a gambling game with public assistance funds
issued to the person under:
(1) Chapter 31, Human Resources Code; or
(2) Chapter 33, Human Resources Code, including funds
issued on electronic benefit transfer cards administered under that
chapter.
(b) An offense under this section is a Class C misdemeanor.
Sec. 2202.414. EFFECT ON OTHER LAWS. A person who is
subject to prosecution under an offense under this subchapter and
an offense under Chapter 47, Penal Code, may be prosecuted under
either or both laws.
SUBCHAPTER J. PROBLEM GAMBLING AND ADDICTION
Sec. 2202.451. PROBLEM GAMBLING AND ADDICTION GRANT FUND.
(a) The problem gambling and addiction grant fund is an account in
the general revenue fund.
(b) Money credited to the fund may be used only for awarding
grants under this subchapter. The fund shall be administered in
accordance with this subchapter.
(c) An expenditure from the problem gambling and addiction
grant fund shall be made in accordance with the General
Appropriations Act.
(d) Grants from money in the fund may be used only to:
(1) provide treatment for problem gambling, gambling
addiction, alcoholism, drug abuse, and other addictive behaviors;
and
(2) provide funding for research related to the impact
of gambling on state residents.
Sec. 2202.452. GRANT PROGRAM. (a) From funds appropriated
for the purpose, the commission shall administer a grant program to
provide assistance for the direct treatment of persons diagnosed as
suffering from pathological gambling and other addictive behaviors
and to provide funding for research regarding the impact of
gambling on residents of this state.
(b) Research grants awarded under this section may include
grants for determining the effectiveness of education and
prevention efforts on the prevalence of pathological gambling in
this state.
(c) A grant may be made only after open solicitation of
proposals and evaluation of proposals against criteria established
by commission rule.
(d) Public and private entities are eligible to apply for
and receive grants under this section.
(e) A grant made in accordance with this section shall be
made from funds appropriated to the commission from the problem
gambling and addiction grant fund and funds provided to the
commission in accordance with Section 2202.453.
Sec. 2202.453. GIFTS AND DONATIONS. The commission may
solicit and accept grants, gifts, contributions, or bequests made
for the purpose of funding grants under this subchapter and expend
the money for a purpose described by Section 2202.452 for which the
money was received.
Sec. 2202.454. RULES. (a) The commission shall administer
this subchapter and adopt rules establishing criteria for
qualification to receive grants and other matters considered
necessary by the commission for the administration of this
subchapter.
(b) The rules adopted by the commission must require that
each recipient of a grant report at least annually to the commission
the grantee's measurable achievement of specific outcome goals.
CHAPTER 2203. TRIBAL GAMING AGREEMENTS
Sec. 2203.001. DUTY OF GOVERNOR. The governor shall
execute, on behalf of this state, with a federally recognized
Indian tribe with Indian lands in this state a gaming agreement
consistent with the provisions of 25 U.S.C. Section 2710(d) and
containing the terms set forth in Section 2203.002 not later than
the 180th day after the date the governor receives a request from
the tribe, accompanied by or in the form of a duly enacted
resolution of the tribe's governing body, to enter into the gaming
agreement.
Sec. 2203.002. MODEL TRIBAL GAMING AGREEMENT. (a) A gaming
agreement executed under Section 2203.001 must be in the form and
contain the provisions as follows:
GAMING AGREEMENT GOVERNING GAMING OPERATIONS Between the
(Name of Tribe) and the STATE OF TEXAS
This agreement is made and entered into by and between the
(Name of Tribe), a federally recognized Indian Tribe ("Tribe"), and
the State of Texas ("State"), with respect to gaming on the Tribe's
Indian lands (as defined by Chapter 2201, Texas Occupations Code).
This agreement governs gambling on Indian lands held in trust
by the United States on January 1, 1998, for the Tribe.
Pursuant to express provisions of the Ysleta del Sur Pueblo
and Alabama and Coushatta Indian Tribes of Texas Restoration Act
(Pub. L. No. 100-89) addressing jurisdiction, the Tribe may engage
in any gaming activities on Indian lands that another person may be
authorized to engage in within Texas under Subtitle E, Title 13,
Texas Occupations Code.
The Tribe shall regulate the gaming activities authorized
under this agreement on the Tribe's Indian lands.
The Tribe shall adopt rules and procedures substantially
similar to the requirements of Subtitle E, Title 13, Texas
Occupations Code, except that any regulatory oversight established
under that subtitle for gaming conducted under a license shall be
exercised by the Tribe for gaming conducted under this agreement.
The Tribe may adopt the rules and procedures by reference to any
provisions of Subtitle E, Title 13, Texas Occupations Code.
(b) A gaming agreement under Subsection (a) between this
state and a federally recognized Indian tribe that is not subject to
the Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
Texas Restoration Act (Pub. L. No. 100-89) may not include the
provision related to that Act.
Sec. 2203.003. NEGOTIATION FOR DIFFERENT TRIBAL GAMING
AGREEMENT TERMS. (a) This chapter does not limit the ability of a
federally recognized Indian tribe to request that a gaming
agreement be negotiated with this state on terms that are different
from those set forth in the gaming agreement under Section
2203.002, or the ability of this state to engage in negotiations and
to reach agreement under any applicable federal law.
(b) In offering to enter into a gaming agreement with Indian
tribes in this state under Section 2203.002, and excluding
assessments, authorized under the Indian Gaming Regulatory Act
(Pub. L. No. 100-497), by this state of the amounts necessary to
defray state costs of regulating activities as provided under the
gaming agreement, nothing in this chapter may be construed to mean
that:
(1) this state is imposing any tax, fee, charge, or
other assessment on an Indian tribe or on any other person or entity
authorized by an Indian tribe as a condition to engaging in a Class
III activity as defined in the Indian Gaming Regulatory Act (Pub. L.
No. 100-497); or
(2) this state is refusing to enter into gaming
agreement negotiations based on the lack of authority of this state
or a political subdivision of this state to impose the tax, fee,
charge, or other assessment.
(c) If any federally recognized Indian tribe with
jurisdiction over Indian lands in this state requests that the
governor enter into negotiations for a gaming agreement under
federal law applicable to the Indian tribe, including the Indian
Gaming Regulatory Act (Pub. L. No. 100-497), on terms different
from those prescribed in the gaming agreement set forth in Section
2203.002, the governor shall enter into those negotiations under
the federal law applicable to the tribe and without preconditions
and is authorized to reach agreement and execute the agreement on
behalf of this state.
Sec. 2203.004. IMPLEMENTATION OF GAMING AGREEMENT. The
governor shall execute any documents necessary to implement a
gaming agreement authorized under this chapter.
Sec. 2203.005. INCORPORATION INTO STATE LAW. The model
gaming agreement set out in Section 2203.002 is state law, and the
operation of gaming authorized under the agreement is expressly
authorized as a matter of state law for any Indian tribe entering
into the gaming agreement in accordance with this chapter.
Sec. 2203.006. REGULATORY MONEY RECEIVED UNDER GAMING
AGREEMENT. All money received by the commission under a gaming
agreement for regulatory costs incurred relative to tribal gaming
operations may be used only to defray expenses of the commission
incurred in the oversight, compliance with, and enforcement of
gaming operations conducted pursuant to a gaming agreement.
Sec. 2203.007. INJUNCTION; CIVIL PENALTY. (a) If the
commission, the appropriate governing body for an Indian tribe, or
the attorney general has reason to believe that this chapter has
been or is about to be violated, the attorney general may petition a
court for appropriate injunctive relief to restrain the violation.
Filing of the petition does not waive applicable sovereign
immunity.
(b) Venue for an action by this state seeking injunctive
relief is in a district court in Travis County.
(c) If the court finds that this chapter has been knowingly
violated, the court shall order all proceeds from any illegal
casino gaming or sports wagering to be forfeited to the appropriate
governing body as a civil penalty.
(d) The remedies provided by this section are not exclusive.
The commission may suspend or revoke a license, impose an
administrative penalty, or seek injunctive or civil penalties or
both, depending on the severity of the violation.
SECTION 2. Article 2.12, Code of Criminal Procedure, is
amended to read as follows:
Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
officers:
(1) sheriffs, their deputies, and those reserve
deputies who hold a permanent peace officer license issued under
Chapter 1701, Occupations Code;
(2) constables, deputy constables, and those reserve
deputy constables who hold a permanent peace officer license issued
under Chapter 1701, Occupations Code;
(3) marshals or police officers of an incorporated
city, town, or village, and those reserve municipal police officers
who hold a permanent peace officer license issued under Chapter
1701, Occupations Code;
(4) rangers, officers, and members of the reserve
officer corps commissioned by the Public Safety Commission and the
Director of the Department of Public Safety;
(5) investigators of the district attorneys', criminal
district attorneys', and county attorneys' offices;
(6) law enforcement agents of the Texas Alcoholic
Beverage Commission;
(7) each member of an arson investigating unit
commissioned by a city, a county, or the state;
(8) officers commissioned under Section 37.081,
Education Code, or Subchapter E, Chapter 51, Education Code;
(9) officers commissioned by the General Services
Commission;
(10) law enforcement officers commissioned by the
Parks and Wildlife Commission;
(11) officers commissioned under Chapter 23,
Transportation Code;
(12) municipal park and recreational patrolmen and
security officers;
(13) security officers and investigators commissioned
as peace officers by the comptroller;
(14) officers commissioned by a water control and
improvement district under Section 49.216, Water Code;
(15) officers commissioned by a board of trustees
under Chapter 54, Transportation Code;
(16) investigators commissioned by the Texas Medical
Board;
(17) officers commissioned by:
(A) the board of managers of the Dallas County
Hospital District, the Tarrant County Hospital District, the Bexar
County Hospital District, or the El Paso County Hospital District
under Section 281.057, Health and Safety Code;
(B) the board of directors of the Ector County
Hospital District under Section 1024.117, Special District Local
Laws Code;
(C) the board of directors of the Midland County
Hospital District of Midland County, Texas, under Section 1061.121,
Special District Local Laws Code; and
(D) the board of hospital managers of the Lubbock
County Hospital District of Lubbock County, Texas, under Section
1053.113, Special District Local Laws Code;
(18) county park rangers commissioned under
Subchapter E, Chapter 351, Local Government Code;
(19) investigators employed by the Texas Racing
Commission;
(20) officers commissioned under Chapter 554,
Occupations Code;
(21) officers commissioned by the governing body of a
metropolitan rapid transit authority under Section 451.108,
Transportation Code, or by a regional transportation authority
under Section 452.110, Transportation Code;
(22) investigators commissioned by the attorney
general under Section 402.009, Government Code;
(23) security officers and investigators commissioned
as peace officers under Chapter 466, Government Code;
(24) officers appointed by an appellate court under
Subchapter F, Chapter 53, Government Code;
(25) officers commissioned by the state fire marshal
under Chapter 417, Government Code;
(26) an investigator commissioned by the commissioner
of insurance under Section 701.104, Insurance Code;
(27) apprehension specialists and inspectors general
commissioned by the Texas Juvenile Justice Department as officers
under Sections 242.102 and 243.052, Human Resources Code;
(28) officers appointed by the inspector general of
the Texas Department of Criminal Justice under Section 493.019,
Government Code;
(29) investigators commissioned by the Texas
Commission on Law Enforcement under Section 1701.160, Occupations
Code;
(30) commission investigators commissioned by the
Texas Private Security Board under Section 1702.061, Occupations
Code;
(31) the fire marshal and any officers, inspectors, or
investigators commissioned by an emergency services district under
Chapter 775, Health and Safety Code;
(32) officers commissioned by the State Board of
Dental Examiners under Section 254.013, Occupations Code, subject
to the limitations imposed by that section;
(33) investigators commissioned by the Texas Juvenile
Justice Department as officers under Section 221.011, Human
Resources Code; [and]
(34) the fire marshal and any related officers,
inspectors, or investigators commissioned by a county under
Subchapter B, Chapter 352, Local Government Code; and
(35) investigators, security officers, and
enforcement officers commissioned by the Texas Gaming Commission
under Chapter 2201, Occupations Code.
SECTION 3. Subchapter F, Chapter 411, Government Code, is
amended by adding Section 411.1085 to read as follows:
Sec. 411.1085. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION: TEXAS GAMING COMMISSION. (a) The Texas Gaming
Commission is entitled to obtain from the department criminal
history record information maintained by the department that
relates to a person who, under Subtitle E, Title 13, Occupations
Code, is:
(1) a casino employee or an applicant for an
occupational license;
(2) a person required to hold a license or be named in
a license application under that subtitle;
(3) a person who manufactures or distributes casino
equipment or supplies or a representative of a person who
manufactures or distributes casino equipment or supplies offered to
the casino;
(4) a person who has submitted a written bid or
proposal to the commission in connection with the procurement of
goods or services by the commission, if the amount of the bid or
proposal exceeds $500;
(5) a person who proposes to enter into or who has a
contract with the commission to supply goods or services to the
commission;
(6) if a person described in Subdivisions (3) through
(5) is not an individual, each individual who:
(A) is an officer or director of the person;
(B) holds more than five percent of the stock in
the person;
(C) holds an equitable interest greater than five
percent in the person;
(D) shares or will share in the profits, other
than stock dividends, of the person;
(E) participates in managing the affairs of the
person; or
(F) is an employee of the person who:
(i) enters or will enter a casino in this
state to perform a business function; or
(ii) is or will be in close proximity to
money from casino gaming or sports wagering;
(7) an employee or prospective employee, including the
executive director or a prospective executive director, of the
commission; or
(8) a person described under Subdivisions (1)-(7)
whose license is renewed under that subtitle.
(b) Criminal history record information obtained by the
Texas Gaming Commission under Subsection (a) may not be released or
disclosed to any person except on court order or as provided by
Subsection (c).
(c) The Texas Gaming Commission is not prohibited from
disclosing to the person who is the subject of the criminal history
record information the dates and places of arrests, offenses, and
dispositions contained in the criminal history record information.
SECTION 4. Section 2028.2041, Occupations Code, is amended
to read as follows:
Sec. 2028.2041. ALLOCATION OF CERTAIN FUNDS. (a) In each
state fiscal biennium, the comptroller shall deposit the amounts
allocated under Section 151.801(c-3), Tax Code, into the escrow
account established under Section 2028.204(b), until the
comptroller determines the amount deposited into the account in
that fiscal biennium, excluding amounts deposited to the account
under Section 2202.252, equals the greater of:
(1) the amount appropriated to the commission for the
purposes of Section 2028.204 for that fiscal biennium; or
(2) $50 million.
(b) Once the comptroller determines the greater of the
amount described by Subsection (a)(1) or (2) has been deposited
during a state fiscal biennium into the escrow account established
under Section 2028.204(b), excluding amounts deposited to the
account under Section 2202.252, for the remainder of that fiscal
biennium the comptroller shall deposit the amounts allocated under
Section 151.801(c-3), Tax Code, into the general revenue fund.
(c) The balance of the escrow account established under
Section 2028.204(b) shall not exceed $50 million, excluding amounts
deposited to the account under Section 2202.252.
SECTION 5. Section 47.02(c), Penal Code, is amended to read
as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1) was permitted under Chapter 2001, Occupations
Code;
(2) was permitted under Chapter 2002, Occupations
Code;
(3) was permitted under Chapter 2004, Occupations
Code;
(4) consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
Government Code);
(5) was permitted under Subtitle A-1, Title 13,
Occupations Code (Texas Racing Act); [or]
(6) consisted entirely of participation in a drawing
for the opportunity to participate in a hunting, fishing, or other
recreational event conducted by the Parks and Wildlife Department;
or
(7) consisted entirely of participation in casino
gaming or sports wagering authorized under an appropriate license
issued under Subtitle E, Title 13, Occupations Code.
SECTION 6. Section 47.03, Penal Code, is amended by adding
Subsection (c) to read as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct was permitted under
Subtitle E, Title 13, Occupations Code.
SECTION 7. Section 47.04, Penal Code, is amended by adding
Subsection (d) to read as follows:
(d) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct was permitted under
Subtitle E, Title 13, Occupations Code.
SECTION 8. Section 47.05(b), Penal Code, is amended to read
as follows:
(b) It is an exception to the application of Subsection (a)
that the information communicated is intended for use in placing a
lawful wager under Subtitle E, Title 13, Occupations Code, or
Chapter 2027, Occupations Code, and is not communicated in
violation of Section 2033.013, Occupations Code.
SECTION 9. Section 47.06(f), Penal Code, is amended to read
as follows:
(f) It is a defense to prosecution under Subsection (a) or
(c) that the person owned, manufactured, transferred, or possessed
the gambling device, equipment, or paraphernalia for the sole
purpose of shipping it:
(1) to a person authorized under an appropriate
license issued under Subtitle E, Title 13, Occupations Code; or
(2) to another jurisdiction where the possession or
use of the device, equipment, or paraphernalia was legal.
SECTION 10. Section 47.09(a), Penal Code, is amended to
read as follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code;
(C) Chapter 2004, Occupations Code;
(D) Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act); [or]
(E) Chapter 280, Finance Code; or
(F) Subtitle E, Title 13, Occupations Code;
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
SECTION 11. (a) Funds in the Texas casino gaming fund may
be appropriated only to the Texas Gaming Commission for the
operation of the commission and the administration of Subtitle E,
Title 13, Occupations Code, as added by this Act, for the biennium
ending August 31, 2025.
(b) Not later than February 1, 2024, the initial members of
the Texas Gaming Commission shall be appointed in accordance with
Chapter 2201, Occupations Code, as added by this Act. In making the
initial appointments, the governor shall designate one member to a
term expiring February 1, 2025, two members to terms expiring
February 1, 2027, and two members to terms expiring February 1,
2029.
SECTION 12. (a) The Texas Gaming Commission Legislative
Oversight Committee is created to facilitate the creation of the
Texas Gaming Commission and the assignment of powers, duties,
functions, programs, and activities of the commission as provided
by this Act.
(b) The committee is composed of seven members as follows:
(1) two members of the senate, appointed by the
lieutenant governor not later than December 1, 2023;
(2) two members of the house of representatives,
appointed by the speaker of the house of representatives not later
than December 1, 2023; and
(3) three members of the public, appointed by the
governor not later than December 1, 2023.
(c) Once the members of the Texas Gaming Commission have
been appointed and have selected an executive director, the
executive director of the Texas Gaming Commission shall serve as an
ex officio member of the committee.
(d) A member of the committee serves at the pleasure of the
appointing official.
(e) The lieutenant governor and the speaker of the house of
representatives shall alternate designating a presiding officer
from among their respective appointments. The speaker of the house
of representatives shall make the first designation.
(f) A member of the committee may not receive compensation
for serving on the committee but is entitled to reimbursement for
travel expenses incurred by the member while conducting the
business of the committee as provided by the General Appropriations
Act.
(g) The committee shall:
(1) facilitate the assignment of powers, duties,
functions, programs, and activities of the Texas Gaming Commission
as provided by this Act;
(2) adopt an initial training program to meet the
requirements of Section 2201.058, Occupations Code, as added by
this Act, to train the initial appointees of the Texas Gaming
Commission;
(3) with assistance from the Texas Gaming Commission,
advise the executive director and members of the Texas Gaming
Commission concerning the powers, duties, functions, programs, and
activities established under this Act and the funds and obligations
that are related to the powers, duties, functions, programs, or
activities;
(4) meet at the call of the presiding officer;
(5) research, take public testimony, and issue reports
on other appropriate issues or specific issues requested by the
lieutenant governor, speaker of the house of representatives, or
governor; and
(6) review specific recommendations for legislation
proposed by the Texas Gaming Commission or the other agencies.
(h) The committee may request reports and other information
from the Texas Gaming Commission, other state agencies, and the
attorney general relating to casino gaming and sports wagering in
this state and other appropriate issues.
(i) The committee shall use existing staff of the senate,
the house of representatives, and the Texas Legislative Council to
assist the committee in performing its duties under this section.
(j) Chapter 551, Government Code, applies to the committee.
(k) The committee shall report to the governor, lieutenant
governor, and speaker of the house of representatives not later
than November 15 of each even-numbered year. The report must
include:
(1) identification of significant issues within
casino gaming and sports wagering regulation, with recommendations
for action;
(2) an analysis of the effectiveness and efficiency of
casino gaming and sports wagering regulation, with recommendations
for any necessary research; and
(3) recommendations for legislative action.
SECTION 13. (a) The assignment of powers, duties,
functions, programs, and activities of the Texas Gaming Commission
must be accomplished in accordance with a schedule included in a
work plan developed by the executive director and members of the
Texas Gaming Commission and submitted to the governor and the
Legislative Budget Board not later than September 1, 2024. The
executive director and commission members shall provide to the
governor and the Legislative Budget Board work plan status reports
and updates on at least a quarterly basis following submission of
the initial work plan. The work plan must be made available to the
public.
(b) Not later than June 1, 2024, the Texas Gaming Commission
shall hold a public hearing and accept public comment regarding the
work plan required to be developed by the executive director and
members of the Texas Gaming Commission under this section.
(c) In developing the work plan, the executive director and
members of the Texas Gaming Commission shall hold public hearings
in various geographic areas in this state before submitting the
plan to the governor and the Legislative Budget Board as required by
this section.
(d) The Texas Gaming Commission shall implement the powers,
duties, functions, programs, and activities assigned to the
commission under this Act in accordance with a work plan designed by
the commission to ensure that the implementation of gaming
regulation under this Act is accomplished in a careful and
deliberative manner.
(e) A work plan designed by the commission under this
section must include the following phases:
(1) a planning phase, during which the commission will
focus on and stabilize the organization of the agency's powers,
duties, functions, programs, and activities, and which must
include:
(A) initiation of recommendations made by the
Texas Gaming Commission Legislative Oversight Committee;
(B) creation of interagency and intra-agency
steering committees;
(C) development of global visions, goals, and
organizational strategies; and
(D) development of communications and risk
management plans;
(2) an integration phase, during which the commission
will identify opportunities and problems and design customized
solutions for those problems, and which must include:
(A) identification of key issues related to costs
or legal requirements for other commission activities;
(B) planning for daily operations; and
(C) validation of fiscal and program synergies;
(3) an optimization phase, during which the commission
will complete and expand on the initial transitions, and which must
include:
(A) optimization of initial implementation
initiatives;
(B) use of enterprise teaming operations;
(C) building infrastructures to support and
facilitate changes in gaming regulation and oversight; and
(D) identification and use of beneficial assets
management and facilities approaches; and
(4) a transformation phase, during which the
commission will continue implementing initial and additional
changes in gaming regulation and oversight, and which must include
implementation of changes in agency management activities.
SECTION 14. As soon as practicable after the effective date
of this Act, the Texas Gaming Commission shall adopt the rules
necessary to implement casino gaming and sports wagering in
accordance with Chapter 2202, Occupations Code, as added by this
Act, and in anticipation of receiving license applications not
later than September 1, 2025.
SECTION 15. This Act takes effect on the date on which the
constitutional amendment proposed by H.J.R. No. 155, 88th
Legislature, Regular Session, 2023, takes effect. If that
amendment is not approved by the voters, this Act has no effect.