By: McCall H.B. No. 105
73R1028 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to casino gaming conducted by certain charitable
1-3 organizations; to certain gaming conducted on Indian lands;
1-4 providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Title 6, Revised Statutes, is amended by adding
1-7 Articles 179h and 179i to read as follows:
1-8 Art. 179h. CASINO GAMING BY CHARITABLE ORGANIZATIONS
1-9 Sec. 1. DEFINITIONS. In this article:
1-10 (1) "Casino gaming" means the dealing, operation,
1-11 carrying on, conducting, maintaining, or exposing for play of a
1-12 game.
1-13 (2) "Game" means an amusement or competition involving
1-14 skill or chance, or both, played with cards, dice, equipment, or
1-15 any device for money, property, checks, credit, or any
1-16 representative of value, including the amusements or competitions
1-17 commonly known as faro, monte, roulette, keno, fan-tan, twenty-one,
1-18 blackjack, seven-and-a-half, big injun, klondike, craps, poker,
1-19 chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
1-20 chemin de fer, baccarat, pai gow, beat the banker, and panguingui.
1-21 The term includes a game played by operating a slot machine and any
1-22 banking or percentage game. The term does not include:
1-23 (A) pari-mutuel wagering on the outcome of
1-24 greyhound or horse racing, as authorized by the Texas Racing Act
2-1 (Article 179e, Vernon's Texas Civil Statutes);
2-2 (B) bingo, as authorized by the Bingo Enabling
2-3 Act (Article 179d, Vernon's Texas Civil Statutes);
2-4 (C) charitable raffles, as authorized by the
2-5 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
2-6 added by Chapter 957, Acts of the 71st Legislature, Regular
2-7 Session, 1989);
2-8 (D) the state lottery, as authorized by the
2-9 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes); or
2-10 (E) a sports pool.
2-11 (3) "Governing body" means:
2-12 (A) the city council or other chief legislative
2-13 body with regard to a municipality; or
2-14 (B) the commissioners court with regard to a
2-15 county.
2-16 (4) "Person" includes a corporation, organization,
2-17 business trust, estate, trust, partnership, association, and any
2-18 other legal entity.
2-19 (5) "Political subdivision" means a municipality or
2-20 county.
2-21 (6) "Prosecuting attorney" means a district attorney,
2-22 criminal district attorney, or county attorney performing the
2-23 duties of a district attorney.
2-24 (7) "Qualified organization" means an organization
2-25 that may conduct a raffle under the Charitable Raffle Enabling Act
2-26 (Article 179f, Revised Statutes, as added by Chapter 957, Acts of
2-27 the 71st Legislature, Regular Session, 1989).
3-1 (8) "Sports pool" means accepting bets on sporting
3-2 events by any system or method of wagering other than by
3-3 pari-mutuel wagering.
3-4 Sec. 2. CASINO GAMING AUTHORIZED. A qualified organization
3-5 may conduct casino gaming subject to this article in a political
3-6 subdivision in which a successful legalization election is held
3-7 under Sections 3 through 5 of this article, unless the legalization
3-8 of that gaming has been rescinded by a successful rescission
3-9 election under those sections.
3-10 Sec. 3. LOCAL OPTION ELECTION; PETITION. (a) The governing
3-11 body of a political subdivision shall order and hold a legalization
3-12 or rescission election under this article in the political
3-13 subdivision if the governing body is presented with a petition that
3-14 meets the requirements of this section.
3-15 (b) A petition for a legalization election must have a
3-16 statement substantially as follows that precedes the space reserved
3-17 for signatures on each page: "This petition is to require that an
3-18 election be held in (name of political subdivision) to legalize
3-19 limited casino gambling conducted by charitable organizations in
3-20 (name of political subdivision) under Article 179h, Revised
3-21 Statutes."
3-22 (c) A petition for a rescission election must have a
3-23 statement substantially as follows that precedes the space reserved
3-24 for signatures on each page: "This petition is to require that an
3-25 election be held in (name of political subdivision) to rescind the
3-26 legalization of limited casino gambling conducted by charitable
3-27 organizations in (name of political subdivision) under Article
4-1 179h, Revised Statutes."
4-2 (d) A petition is valid only if it is signed by registered
4-3 voters of the political subdivision in a number equal to or greater
4-4 than three percent of the number of votes cast for governor by
4-5 qualified voters of the political subdivision in the most recent
4-6 gubernatorial general election.
4-7 (e) Each voter must enter beside the voter's signature the
4-8 date the voter signs the petition. A signature may not be counted
4-9 if the date of signing is earlier than the 90th day before the date
4-10 the petition is submitted to the governing body.
4-11 (f) Each voter must provide the voter's current voter
4-12 registration number, printed name, and residence address including
4-13 zip code.
4-14 Sec. 4. VERIFICATION OF PETITION; DATE OF ELECTION; BALLOT
4-15 PROPOSITION. (a) Not later than the fifth day after the date a
4-16 petition for an election under this article is received in the
4-17 office of the governing body, the governing body shall submit the
4-18 petition for verification to the municipal secretary or county
4-19 clerk, as applicable.
4-20 (b) The officer to whom the petition is submitted for
4-21 verification shall determine whether the petition is signed by the
4-22 required number of registered voters of the political subdivision.
4-23 Not later than the 30th day after the date the petition is
4-24 submitted to the officer for verification, the officer shall
4-25 certify in writing to the governing body of the political
4-26 subdivision whether the petition is valid or invalid. If the
4-27 officer determines that the petition is invalid, the officer shall
5-1 state all reasons for that determination.
5-2 (c) If the municipal secretary or county clerk, as
5-3 applicable, certifies that a petition is valid, not later than the
5-4 30th day after the date of certification the governing body shall
5-5 order that an election be held in the political subdivision on the
5-6 next uniform election date under Section 41.001, Election Code,
5-7 that occurs after the 45th day after the date on which the
5-8 governing body orders the election. The governing body shall state
5-9 in the order the issue to be voted on.
5-10 (d) The ballot in a legalization election shall be printed
5-11 to provide for voting for or against the proposition: "Legalizing
5-12 limited casino gambling conducted by charitable organizations
5-13 within (name of political subdivision) under Article 179h, Revised
5-14 Statutes."
5-15 (e) The ballot in a rescission election shall be printed to
5-16 provide for voting for or against the proposition: "Rescinding the
5-17 legalization of limited casino gambling conducted by charitable
5-18 organizations within (name of political subdivision) under Article
5-19 179h, Revised Statutes."
5-20 Sec. 5. RESULTS OF ELECTION. (a) If the majority of the
5-21 votes cast in a legalization election are for the legalization of
5-22 casino gaming conducted by charitable organizations, casino gaming
5-23 as authorized under this article is permitted within the political
5-24 subdivision holding the election effective the 10th day after the
5-25 date the election is canvassed. The legalization does not apply to
5-26 a municipality that disapproves the proposition in an election
5-27 ordered by the commissioners court of the county.
6-1 (b) If the majority of the votes in a rescission election
6-2 are for the rescission of the legalization of casino gaming
6-3 conducted by charitable organizations, casino gaming is prohibited
6-4 within the political subdivision holding the election effective the
6-5 30th day after the date the election is canvassed.
6-6 Sec. 6. RESTRICTIONS ON CASINO GAMING. (a) A qualified
6-7 organization may not conduct casino gaming on more than two
6-8 occasions in a calendar year. An occasion at which casino gaming
6-9 is conducted may not exceed six hours and must be continuous.
6-10 (b) A qualified organization may not conduct casino gaming
6-11 at more than one location in a calendar year.
6-12 (c) A qualified organization may not directly or indirectly
6-13 promote casino gaming through a paid advertisement in a medium of
6-14 mass communication, including television, radio, or newspapers.
6-15 (d) Each player must be given a written statement that
6-16 contains:
6-17 (1) the name of the qualified organization conducting
6-18 the casino gaming; and
6-19 (2) the address of the organization or of a named
6-20 officer of the organization.
6-21 (e) A qualified organization may not compensate an
6-22 individual for conducting a game. An individual who is not a
6-23 member of the qualified organization conducting the casino gaming
6-24 occasion may not conduct a game.
6-25 Sec. 7. RESTRICTIONS ON USE OF PROCEEDS; BOOKS AND RECORDS.
6-26 (a) A qualified organization shall spend all net proceeds of
6-27 casino gaming to:
7-1 (1) benefit needy or deserving individuals, indefinite
7-2 in number, by:
7-3 (A) enhancing their opportunity for religious or
7-4 educational advancement;
7-5 (B) relieving them from disease, suffering, or
7-6 distress;
7-7 (C) contributing to their physical well-being;
7-8 (D) assisting them in establishing themselves in
7-9 life as worthy and useful citizens; or
7-10 (E) increasing their comprehension of and
7-11 devotion to the principles on which this nation was founded and
7-12 enhancing their loyalty to their government;
7-13 (2) initiate, perform, or foster a worthy public work
7-14 in this state; or
7-15 (3) erect or maintain a public structure in this
7-16 state.
7-17 (b) A qualified organization shall:
7-18 (1) keep books and records that:
7-19 (A) show the amount wagered by players;
7-20 (B) show the amount paid to players as winnings;
7-21 (C) for each expense relating to casino gaming,
7-22 show:
7-23 (i) the complete name and address of the
7-24 person paid;
7-25 (ii) the amount of the expense; and
7-26 (iii) the purpose of the expense; and
7-27 (D) show the distribution of all net proceeds of
8-1 casino gaming; and
8-2 (2) permit the appropriate prosecuting attorney to
8-3 inspect the books and records at any reasonable time.
8-4 (c) In this section, "net proceeds of casino gaming" means
8-5 the amount wagered by players, less the sum of:
8-6 (1) amounts paid to players as winnings; and
8-7 (2) the qualified organization's reasonable expenses
8-8 for:
8-9 (A) rental for the premises on which the casino
8-10 gaming is conducted;
8-11 (B) the purchase or rental of any equipment
8-12 necessary to conduct casino gaming;
8-13 (C) advertising of a casino gaming occasion;
8-14 (D) security during a casino gaming occasion;
8-15 (E) bookkeeping, legal, or accounting services
8-16 related to casino gaming;
8-17 (F) insurance related to a casino gaming
8-18 occasion; and
8-19 (G) janitorial services related to a casino
8-20 gaming occasion.
8-21 Sec. 8. CERTAIN ACTS CONSIDERED ACTS OF ORGANIZATION. For
8-22 purposes of this article, an organization performs an act if a
8-23 member, officer, or agent of the organization performs the act with
8-24 the knowledge of the organization.
8-25 Sec. 9. OFFENSES; PENALTIES. (a) A person commits an
8-26 offense if the person knowingly permits an individual that the
8-27 person knows is younger than 21 years of age to participate in
9-1 casino gaming authorized under this article. An offense under this
9-2 subsection is a Class A misdemeanor.
9-3 (b) An individual commits an offense if the individual
9-4 participates in casino gaming authorized under this article and the
9-5 individual is younger than 21 years of age at the time of
9-6 participation. An offense under this subsection is a Class C
9-7 misdemeanor.
9-8 (c) A person commits an offense if the person knowingly:
9-9 (1) uses bogus or counterfeit chips, tokens, devices,
9-10 or coins during a game;
9-11 (2) uses or is in possession of any device designed to
9-12 facilitate cheating in a game; or
9-13 (3) uses any fraudulent scheme or technique in a game.
9-14 (d) An offense under Subsection (c) of this section is a
9-15 Class B misdemeanor.
9-16 (e) A person commits an offense if the person, in a book or
9-17 record required to be maintained by this article:
9-18 (1) knowingly makes a statement or entry that the
9-19 person knows to be false or misleading; or
9-20 (2) fails to maintain or make an entry the person
9-21 knows is required to be maintained or made.
9-22 (f) An offense under Subsection (e) of this section is a
9-23 Class B misdemeanor.
9-24 (g) A person commits an offense if the person knowingly
9-25 refuses to produce for inspection by the appropriate prosecuting
9-26 attorney a book, record, or document required to be maintained or
9-27 made by this article. An offense under this subsection is a Class
10-1 B misdemeanor.
10-2 (h) A person commits an offense if the person knowingly pays
10-3 any portion of the amount wagered by players to a person other
10-4 than:
10-5 (1) to a player as winnings;
10-6 (2) for a charitable purpose described in Section 7(a)
10-7 of this article; or
10-8 (3) for an expense described in Section 7(c)(2) of
10-9 this article.
10-10 (i) An offense under Subsection (h) of this section is a
10-11 Class B misdemeanor, unless it is shown at the trial of the offense
10-12 that the amount illegally paid is greater than $1,000 or the
10-13 defendant has previously been convicted of an offense under
10-14 Subsection (h) of this section, in which event the offense is a
10-15 Class A misdemeanor.
10-16 Sec. 10. INJUNCTION OF UNAUTHORIZED CASINO GAMING. (a) A
10-17 prosecuting attorney may bring an action in district court for a
10-18 temporary or permanent injunction or a temporary restraining order
10-19 prohibiting conduct involving casino gaming that:
10-20 (1) violates or threatens to violate this article or
10-21 Chapter 47, Penal Code; and
10-22 (2) is not authorized by this article or other law.
10-23 (b) Venue for an action under this section is in the county
10-24 in which:
10-25 (1) the conduct occurs;
10-26 (2) the proposed casino gaming occasion will occur; or
10-27 (3) any defendant resides.
11-1 Sec. 11. EXEMPTION FROM FEDERAL LAW. A political
11-2 subdivision holding a legalization election and approving casino
11-3 gaming under this article is exempt from the provisions of 15
11-4 U.S.C. Sec. 1172 relating to gambling devices transported into the
11-5 political subdivision for use by a qualified organization in the
11-6 political subdivision.
11-7 Art. 179i. GAMING ON INDIAN LANDS
11-8 Sec. 1. DEFINITIONS. In this article:
11-9 (1) "Class III gaming" has the meaning assigned by
11-10 Section 4, Indian Gaming Regulatory Act (25 U.S.C. Sec. 2703).
11-11 (2) "Indian lands" has the meaning assigned by Section
11-12 4, Indian Gaming Regulatory Act (25 U.S.C. Sec. 2703).
11-13 (3) "Indian tribe" means:
11-14 (A) the Alabama and Coushatta Indian tribes of
11-15 Texas;
11-16 (B) the Texas Band of Kickapoo Indians; or
11-17 (C) the Ysleta del Sur Pueblo.
11-18 Sec. 2. NEGOTIATION OF TRIBAL-STATE COMPACT. (a) The
11-19 governor may negotiate and enter into a tribal-state compact as
11-20 provided by Section 11(d)(3), Indian Gaming Regulatory Act (25
11-21 U.S.C. Sec. 2710(d)(3)), with an Indian tribe that has adopted an
11-22 ordinance or resolution authorizing Class III gaming activities on
11-23 Indian lands, if the ordinance or resolution has been approved by
11-24 the chairman of the National Indian Gaming Commission as provided
11-25 by Section 11(d)(2), Indian Gaming Regulatory Act (25 U.S.C.
11-26 Sec. 2710(d)(2)).
11-27 (b) In negotiating a tribal-state compact as provided by
12-1 Subsection (a) of this section, the governor shall attempt to
12-2 include provisions designed to ensure integrity, security, honesty,
12-3 and fairness in the operation of Class III gaming activities. A
12-4 tribal-state compact may include provisions relating to:
12-5 (1) the application of civil and criminal laws of this
12-6 state that are directly related to and necessary for the licensing
12-7 or regulation of Class III gaming activities;
12-8 (2) the allocation of civil and criminal jurisdiction
12-9 between the Indian tribe and this state for the enforcement of
12-10 applicable laws and regulations;
12-11 (3) the assessment by this state of fees necessary to
12-12 defray the cost of regulating the Class III gaming activities;
12-13 (4) taxation by the Indian tribe of the Class III
12-14 gaming activities at a rate comparable to taxation by this state of
12-15 comparable activity occurring in places other than on Indian lands;
12-16 (5) remedies for a breach of the compact;
12-17 (6) standards for the operation and maintenance of
12-18 Class III gaming facilities; and
12-19 (7) any other matter directly related to the operation
12-20 of Class III gaming activities.
12-21 SECTION 2. Section 47.02(c), Penal Code, is amended to read
12-22 as follows:
12-23 (c) It is a defense to prosecution under this section that
12-24 the actor reasonably believed that the conduct:
12-25 (1) was permitted under the Bingo Enabling Act
12-26 (Article 179d, Vernon's Texas Civil Statutes);
12-27 (2) was permitted under the Charitable Raffle Enabling
13-1 Act (Article 179f, Revised Statutes, as added by Chapter 957, Acts
13-2 of the 71st Legislature, Regular Session, 1989); <or>
13-3 (3) consisted entirely of participation in the state
13-4 lottery authorized by the State Lottery Act; or
13-5 (4) was permitted under Article 179h, Revised
13-6 Statutes.
13-7 SECTION 3. Section 47.06, Penal Code, is amended by adding
13-8 Subsection (h) to read as follows:
13-9 (h) It is a defense to prosecution for an offense under this
13-10 section that the conduct was permitted under Article 179h, Revised
13-11 Statutes.
13-12 SECTION 4. Chapter 47, Penal Code, is amended by adding
13-13 Sections 47.15 and 47.16 to read as follows:
13-14 Sec. 47.15. CASINO GAMING CONDUCTED BY CHARITABLE
13-15 ORGANIZATION. It is a defense to prosecution for an offense under
13-16 this chapter that the conduct was permitted under Article 179h,
13-17 Revised Statutes.
13-18 Sec. 47.16. GAMBLING ON INDIAN LANDS. (a) A person commits
13-19 an offense if the person intentionally or knowingly makes a bet on
13-20 any game or contest held on any Indian lands located in this state.
13-21 (b) It is an exception to the application of this section
13-22 that:
13-23 (1) the person is a member of an Indian tribe who
13-24 lives on Indian lands located in this state;
13-25 (2) the bet is made in connection with a game or
13-26 contest permitted under Section 11(a) or (b), Indian Gaming
13-27 Regulatory Act (25 U.S.C. Sec. 2710(a) or (b)); or
14-1 (3) the bet is made in connection with a game or
14-2 contest permitted under a tribal-state compact adopted as provided
14-3 by Article 179i, Revised Statutes.
14-4 (c) In this section:
14-5 (1) "Indian lands" has the meaning assigned by Section
14-6 4, Indian Gaming Regulatory Act (25 U.S.C. Sec. 2703).
14-7 (2) "Indian tribe" has the meaning assigned by Section
14-8 1, Article 179i, Revised Statutes.
14-9 (d) An offense under this section is a felony of the third
14-10 degree.
14-11 SECTION 5. This Act takes effect January 1, 1994, but only
14-12 if the constitutional amendment proposed by the 73rd Legislature,
14-13 Regular Session, 1993, authorizing casino gaming by charitable
14-14 organizations, is approved by the voters. If the proposed
14-15 constitutional amendment is not approved by the voters, this Act
14-16 has no effect.
14-17 SECTION 6. The importance of this legislation and the
14-18 crowded condition of the calendars in both houses create an
14-19 emergency and an imperative public necessity that the
14-20 constitutional rule requiring bills to be read on three several
14-21 days in each house be suspended, and this rule is hereby suspended.