By Danburg, et al. H.B. No. 445
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of riverboat casino gaming; the
1-3 creation, powers, and duties of the Texas Riverboat Gaming
1-4 Commission; the installation of certain gaming at certain licensed
1-5 racetracks; authorizing certain taxes; providing penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Title 6, Revised Statutes, is amended by adding
1-8 Article 179h to read as follows:
1-9 Art. 179h. RIVERBOAT GAMING
1-10 CHAPTER 1. SHORT TITLE, PUBLIC POLICY AND CONSTRUCTION OF ACT
1-11 Sec. 1.01. SHORT TITLE. This Article shall be known and may
1-12 be cited as the "Texas Riverboat Economic Development and Gaming
1-13 Control Act."
1-14 Sec. 1.02. PUBLIC POLICY
1-15 (1) The Legislature hereby finds and declares to be
1-16 the public policy of this state that:
1-17 (a) The development of the historic riverboat industry
1-18 is important to the economy of the State of Texas in that it will
1-19 assist in the continuing growth of the tourism industry and, thus,
1-20 will benefit the general welfare of our citizens and create new
1-21 jobs. It is the intent of this Article to utilize Texas resources,
1-22 goods, and services in the operation and construction of riverboats
1-23 to the extent allowable by law, as defined in this Article.
2-1 (b) An integral part of riverboat operations and
2-2 profitability is the offering of regulated gaming, among other
2-3 activities.
2-4 (c) The nature of the riverboat industry is such that
2-5 the operation of riverboats on the waters of the State of Texas
2-6 while allowing certain gaming activities will result in many
2-7 benefits to the State with no significant detriment to the citizens
2-8 of the State.
2-9 (d) Riverboats which operate certain limited duration
2-10 excursions and conduct gaming activities thereon shall be licensed
2-11 and supervised through the period of construction of the vessel
2-12 continuing through to the operation of the vessel, and further
2-13 gaming-related employees of such riverboats, gaming operators,
2-14 manufacturers, suppliers, and distributors of gaming equipment
2-15 shall therefore be regulated, licensed and controlled in such a
2-16 manner as to accomplish and promote the above public policies so as
2-17 to protect the public health, safety, morals, good order and
2-18 general welfare of our citizens.
2-19 (2) It is the express intent, desire and policy of the
2-20 Legislature that no gaming operator, applicant for a license,
2-21 permit or other thing existing, issued or let as a result of this
2-22 Article shall have any right of action to obtain any license,
2-23 permit or the granting of the approval sought except as provided
2-24 for and authorized by this Article. Any license, permit, approval
2-25 or thing obtained or issued pursuant to the provisions of this
3-1 Article is expressly declared by the Legislature to be a pure and
3-2 absolute revocable privilege, and not a right, property or
3-3 otherwise, under the Constitutions of the United States or the
3-4 State of Texas. Further, the Legislature declares that no holder
3-5 of any license or permit acquires any vested interest or right
3-6 therein or thereunder.
3-7 Sec. 1.03. CONSTRUCTION OF ACT AND LEGISLATIVE FINDINGS AND
3-8 DECLARATIONS
3-9 (1) The provisions of this Article shall not be construed to
3-10 legalize any form of gambling which is prohibited under the Texas
3-11 Constitution or the laws of this State. All legal gaming which is
3-12 conducted in this State and which is otherwise authorized by law
3-13 shall be regulated and licensed pursuant to the provisions of this
3-14 Article unless the Legislature specifically provides otherwise.
3-15 Nothing in this Article shall be construed as encouraging the
3-16 legalization of gambling in this State.
3-17 (2) The Legislature hereby finds and declares that lotteries
3-18 and gaming both consist of the material element of chance. The
3-19 Legislature is directed by Article III, Sec. 47 of the Texas
3-20 Constitution to prohibit "lotteries and gift enterprises" other
3-21 than those authorized by subsections (b), (d) and (e) of that
3-22 section. The Legislature is permitted by virtue of its inherent
3-23 powers to legislate upon gaming as the occasion arises. The
3-24 Legislature derives its power to legislate upon gaming from its
3-25 inherent authority over the morals and policy of the people and
4-1 such power shall not be considered to conflict with the
4-2 constitutional obligation to prohibit lotteries and gift
4-3 enterprises.
4-4 (3) The Legislature hereby finds and declares it to be the
4-5 public policy of this State that:
4-6 (a) Regulation of licensed gaming is important in
4-7 order that licensed gaming is conducted honestly and competitively,
4-8 that the rights of the creditors of licensees are protected and
4-9 that gaming is free from criminal and corruptive elements.
4-10 (b) Public confidence and trust can only be maintained
4-11 by strict regulation of all persons, locations, practices,
4-12 associations and activities related to the operation of licensed
4-13 gaming establishments and the manufacture or distribution of gaming
4-14 equipment.
4-15 (c) All establishments where gaming is conducted and
4-16 where gaming equipment is operated, and manufacturers, sellers and
4-17 distributors of certain gaming equipment must therefore be
4-18 licensed, controlled and assisted to protect the public health,
4-19 safety, morals, good order and general welfare of the inhabitants
4-20 of the State.
4-21 (4) It is the intent of the Legislature that gaming
4-22 licensees, to the extent practicable, employ residents of Texas as
4-23 gaming employees and other employees in the operation of their
4-24 gaming establishments located in this state.
4-25 (5) The Legislature recognizes that Article III, Sec. 47 of
5-1 the Texas Constitution directs the legislature to "pass laws
5-2 prohibiting lotteries and gift enterprises in this State other than
5-3 those authorized by subsections (b), (d) and (e) of this section."
5-4 The Legislature finds that although Article III, Sec. 47 does not
5-5 define the meaning of the term "lotteries and gift enterprises,"
5-6 that section clearly contemplates, as indicated by specific
5-7 language contained within its predecessor, that a lottery or gift
5-8 enterprise involves the sale of tickets and a drawing in order to
5-9 determine the winner. Therefore, in carrying out its duties under
5-10 the Constitution and effectuating the intent of Article III,
5-11 Sec. 47, the Legislature hereby finds that a lottery or gift
5-12 enterprise as prohibited by the Constitution does not include all
5-13 forms of gambling, but means any activity in which:
5-14 (a) The player or players pay or agree to pay
5-15 something of value for chances, represented and differentiated by
5-16 tickets, slips of paper or other physical or tangible documentation
5-17 upon which appear numbers, symbols, characters or other distinctive
5-18 marks used to identify and designate the winner or winners; and
5-19 (b) The winning chance or chances are to be determined
5-20 by a drawing or similar selection method based predominantly upon
5-21 the element of chance or random selection rather than upon the
5-22 skill or judgment of the player or players; and
5-23 (c) The holder or holders of the winning chance or
5-24 chances are to receive a prize or something of valuable
5-25 consideration; and
6-1 (d) The activity is conducted and participated in
6-2 without regard to geographical location, with the player or players
6-3 not being required to be present upon any particular premises or at
6-4 any particular location in order to participate or to win.
6-5 CHAPTER 2. GENERAL PROVISIONS
6-6 Sec. 2.01. DEFINITIONS. In this Article:
6-7 (1) "Casino space" means that portion of a riverboat
6-8 in which gaming may be conducted.
6-9 (2) "Commission" means the Texas Riverboat Gaming
6-10 Commission.
6-11 (3) "Eligible political subdivision" means:
6-12 (A) a municipality located wholly or in part in
6-13 a county described by Section 5.10 of this Article; or
6-14 (B) a county described by Section 5.10 of this
6-15 Article.
6-16 (4) "Executive director" means the executive director
6-17 of the commission.
6-18 (5) "Game" means an amusement or competition involving
6-19 skill or chance, or both, played with cards, dice, equipment, or
6-20 any device for money, property, checks, credit, or any
6-21 representative of value, including the amusements or competitions
6-22 commonly known as faro, monte, roulette, keno, fan-tan, twenty-one,
6-23 blackjack, seven-and-a-half, big injun, klondike, craps, poker,
6-24 chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
6-25 chemin de fer, baccarat, pai gow, beat the banker, and panguingui.
7-1 The term includes a game played by operating a slot machine and any
7-2 banking or percentage game. The term does not include:
7-3 (B) pari-mutuel wagering on the outcome of
7-4 greyhound or horse racing or the operation of electronic or
7-5 electromechanical gaming devices at a racetrack, as authorized by
7-6 the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes);
7-7 (B) bingo, as authorized by the Bingo Enabling
7-8 Act (Article 179d, Vernon's Texas Civil Statutes);
7-9 (C) charitable raffles, as authorized by the
7-10 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
7-11 added by Chapter 957, Acts of the 71st Legislature, Regular
7-12 Session, 1989);
7-13 (D) the state lottery, as authorized by the
7-14 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes);
7-15 (E) a lottery or gift enterprise as defined in
7-16 Sec. 1.03(5) of this Article.
7-17 (F) wagering on the outcome of a sports event or
7-18 activity.
7-19 (6) "Gaming" or "gaming activity" means the dealing,
7-20 operation, carrying on, conducting, or maintaining a game or the
7-21 exposing for play of a game.
7-22 (7) "Gaming employee" means any individual connected
7-23 directly with the operation of a gaming activity on a riverboat
7-24 casino. The term does not include a bartender, cocktail waitress,
7-25 or other individual engaged exclusively in preparing or serving
8-1 food or beverages on a riverboat casino or an individual engaged
8-2 exclusively in the operation or maintenance of the vessel. The
8-3 term includes:
8-4 (A) boxmen;
8-5 (B) cashiers;
8-6 (C) change personnel;
8-7 (D) counting room personnel;
8-8 (E) dealers;
8-9 (F) floormen;
8-10 (G) hosts or other individuals empowered to
8-11 extend credit or complimentary services;
8-12 (H) keno runners;
8-13 (I) keno writers;
8-14 (J) machine mechanics;
8-15 (K) odds makers and line setters;
8-16 (L) security personnel;
8-17 (M) shift or pit bosses;
8-18 (N) shills;
8-19 (O) supervisors or managers involved in gaming
8-20 activities;
8-21 (P) ticket writers;
8-22 (Q) accounting or internal auditing personnel
8-23 directly involved in record keeping or the examination of records
8-24 generated from gaming activities; and
8-25 (R) individuals who promote junkets.
9-1 (8) "Gaming equipment" means any object or mechanical,
9-2 electromechanical, or electronic contrivance or machine used in
9-3 connection with a gaming activity or a game.
9-4 (9) "Gaming equipment distributor" means a person who
9-5 sells or leases gaming equipment to a riverboat casino operator for
9-6 use in games authorized by this Article.
9-7 (10) "Gaming equipment manufacturer" means a person
9-8 who designs, assembles, constructs, or otherwise prepares gaming
9-9 equipment or a component part of gaming equipment for sale to a
9-10 gaming equipment distributor.
9-11 (11) "Governing body" means:
9-12 (A) the city council or other chief legislative
9-13 body, with regard to a municipality; or
9-14 (B) the commissioners court, with regard to a
9-15 county.
9-16 (12) "License holder" means a person who holds a
9-17 license issued under this Article.
9-18 (13) "Passenger" means an individual aboard a
9-19 riverboat who does not participate in the operation of the vessel
9-20 or act as a gaming employee.
9-21 (14) "Person" includes a corporation, organization,
9-22 business trust, estate, trust, partnership, association, and any
9-23 other legal entity.
9-24 (15) "Political subdivision" means a municipality or
9-25 county.
10-1 (16) "Riverboat casino operator" means a person who
10-2 operates or conducts gaming activities aboard a riverboat.
10-3 Sec. 2.02. GAMING AUTHORIZED. (a) Gaming and participation
10-4 in gaming on a riverboat for which a riverboat casino operator
10-5 license is issued under this Article are permitted in an eligible
10-6 political subdivision in which a successful legalization election
10-7 has been held under Chapter 6 of this Article.
10-8 (b) Lotteries and gift enterprises may not be
10-9 conducted on a riverboat for which a riverboat casino operation
10-10 license is issued under this Article.
10-11 Sec. 2.03. EXEMPTION FROM FEDERAL LAW. A political
10-12 subdivision holding a legalization election and approving gaming
10-13 under this Article is exempt from the provisions of 15 U.S.C.
10-14 Sec. 1172 relating to gambling devices transported into the
10-15 political subdivision for use on a riverboat in the political
10-16 subdivision.
10-17 Sec. 2.04. APPLICATION OF SUNSET ACT. The commission is
10-18 subject to Chapter 325, Government Code (Texas Sunset Act). Unless
10-19 continued in existence as provided by that chapter, the commission
10-20 is abolished and this Article expires September 1, 2005.
10-21 CHAPTER 32. TEXAS RIVERBOAT GAMING COMMISSION
10-22 Sec. 3.01. COMMISSION. (a) The Texas Riverboat Gaming
10-23 Commission is composed of seven members. Six members are appointed
10-24 by the governor with the advice and consent of the senate. The
10-25 chairman of the Public Safety Commission is an ex officio member
11-1 and has the right to vote.
11-2 (b) In making appointments to the commission, the governor
11-3 shall attempt to achieve representation of all the population
11-4 groups of the state with regard to economic status, sex, race, or
11-5 ethnicity.
11-6 Sec. 3.02. ELIGIBILITY. To be eligible for appointment to
11-7 the commission, an individual:
11-8 (1) must be a citizen of the United States;
11-9 (2) must have resided in this state for the two years
11-10 preceding the date of the person's appointment;
11-11 (3) must submit a financial statement that contains
11-12 the information required by Section 4(c), Chapter 421, Acts of the
11-13 63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's
11-14 Texas Civil Statutes);
11-15 (4) may not own any financial interest in riverboat
11-16 gaming or its operation or be related within the second degree by
11-17 affinity or the third degree by consanguinity, as determined under
11-18 Article 5996h, Revised Statutes, to an individual who owns any
11-19 financial interest in riverboat gaming or its operation;
11-20 (5) may not be a license holder; and
11-21 (6) may not be a member of the governing body of an
11-22 eligible political subdivision.
11-23 Sec. 3.03. PROHIBITED ACTIVITY. (a) An appointed member of
11-24 the commission may not:
11-25 (1) use the member's official authority to affect the
12-1 result of an election or nomination for public office; or
12-2 (2) directly or indirectly coerce, attempt to coerce,
12-3 command, or advise a person to pay, lend, or contribute anything of
12-4 value to another person for political purposes.
12-5 (b) A commission member or former commission member or the
12-6 spouse of a commission member or former commission member may not
12-7 solicit or accept employment from a license holder or an applicant
12-8 for a license under this Article before the second anniversary of
12-9 the date on which the commission member's service on the commission
12-10 ends.
12-11 Sec. 3.04. TERMS. Appointed members of the commission hold
12-12 office for staggered terms of six years. Two members' terms expire
12-13 February 1 of each odd-numbered year.
12-14 Sec. 3.05. BOND. (a) Before entering the duties of office,
12-15 an appointed member of the commission must execute a bond that is:
12-16 (1) payable to the state;
12-17 (2) in the amount of $25,000; and
12-18 (3) conditioned that the member will faithfully
12-19 perform the duties of office.
12-20 (b) The bond must be approved by the governor.
12-21 Sec. 3.06. PRESIDING OFFICER. The governor shall designate
12-22 one member to serve as presiding officer for a term of two years.
12-23 Sec. 3.07. REMOVAL OF APPOINTED COMMISSION MEMBERS. (a) It
12-24 is a ground for removal from the commission if an appointed member:
12-25 (1) does not have at the time of appointment the
13-1 qualifications required for appointment to the commission;
13-2 (2) does not maintain during service on the commission
13-3 the qualifications required for appointment to the commission;
13-4 (3) violates a prohibition established by Section 3.03
13-5 of this Article;
13-6 (4) cannot discharge the member's duties for a
13-7 substantial part of the term for which the member is appointed
13-8 because of illness or disability; or
13-9 (5) is absent from more than half of the regularly
13-10 scheduled commission meetings that the member is eligible to attend
13-11 during a calendar year unless the absence is excused by majority
13-12 vote of the commission.
13-13 (b) The validity of an action of the commission is not
13-14 affected by the fact that it is taken when a ground for removal of
13-15 a commission member exists.
13-16 (c) If the presiding officer has knowledge that a potential
13-17 ground for removal exists, the presiding officer shall notify the
13-18 governor.
13-19 Sec. 3.08. COMPENSATION. (a) An appointed member of the
13-20 commission is entitled to receive compensation of $1,500 per month
13-21 for serving on the commission.
13-22 (b) An appointed member is entitled to reimbursement for
13-23 actual and necessary expenses incurred in performing functions as a
13-24 member of the commission, subject to any applicable limitation on
13-25 reimbursement provided by the General Appropriations Act.
14-1 (c) The chairman of the Public Safety Commission is entitled
14-2 to reimbursement for actual and necessary expenses incurred in
14-3 performing functions as a member of the Texas Riverboat Gaming
14-4 Commission. Reimbursement shall be from the Public Safety
14-5 Commission as provided by law for expenses incurred in the
14-6 performance of other official duties.
14-7 Sec. 3.09. OFFICES. The commission shall maintain its
14-8 general office in the City of Austin. The commission may establish
14-9 branch offices within this state.
14-10 Sec. 3.10. MEETINGS. (a) The commission shall meet at
14-11 least six times in each calendar year.
14-12 (b) The commission may meet at other times at the call of
14-13 the presiding officer or as provided by commission rule.
14-14 Sec. 3.11. EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
14-15 commission shall employ an executive director and other employees
14-16 as necessary to administer this Article.
14-17 (b) The executive director shall keep the records of the
14-18 commission and shall perform duties as assigned by the commission
14-19 or specified by law.
14-20 (c) An executive director, former executive director,
14-21 employee of the commission, or former employee of the commission
14-22 may not solicit or accept employment from a license holder or an
14-23 applicant for a license under this Article before the first
14-24 anniversary of the date on which the individual's employment with
14-25 the commission ends.
15-1 Sec. 3.12. AUDIT. The transactions of the commission are
15-2 subject to audit by the state auditor in accordance with Chapter
15-3 321, Government Code.
15-4 Sec. 3.13. LEGAL REPRESENTATION. (a) The attorney general
15-5 shall designate at least one assistant attorney general to advise
15-6 the commission and represent the commission in legal proceedings.
15-7 (b) The attorney general shall make available to the
15-8 appropriate prosecuting attorney information obtained regarding a
15-9 possible violation of this Article.
15-10 (c) The attorney general may apply for injunctive or
15-11 declaratory relief to enforce this Article or a rule adopted by the
15-12 commission. Action by the attorney general under this subsection
15-13 does not limit the authority of the attorney general or a
15-14 prosecuting attorney to bring a criminal proceeding.
15-15 Sec. 3.14. CONFIDENTIAL INFORMATION. The contents of
15-16 investigatory files of the commission are confidential except in a
15-17 criminal proceeding or a hearing conducted by the commission.
15-18 CHAPTER 4. POWERS AND DUTIES OF COMMISSION
15-19 Sec. 4.01. CONTROL AND SUPERVISION. The commission shall
15-20 administer this Article. The commission has broad authority and
15-21 shall exercise strict control and close supervision over all gaming
15-22 activity to ensure that games are conducted fairly and in
15-23 compliance with the law.
15-24 Sec. 4.02. POWER OF ENTRY. An authorized agent of the
15-25 commission or a person designated by an authorized agent of the
16-1 commission may:
16-2 (1) enter the office, vessel, or other place of
16-3 business of a license holder to enforce and administer this
16-4 Article;
16-5 (2) inspect, examine, and photocopy or remove and
16-6 impound all papers, books, and records of a license holder that
16-7 relate to activities regulated by this Article;
16-8 (3) require verification of income from activities
16-9 regulated by this Article; and
16-10 (4) seize and remove form the premises and impound any
16-11 gaming equipment or supplies for inspection and examination.
16-12 Sec. 4.03. RULES. The commission shall adopt rules
16-13 relating to:
16-14 (1) the transaction of commission business;
16-15 (2) the conduct and operation of gaming;
16-16 (3) the investigation of alleged violations of
16-17 this Article or a rule adopted under this Article;
16-18 (4) the investigation of complaints from
16-19 citizens regarding riverboat gaming;
16-20 (5) the issuance, revocation, and suspension of
16-21 licenses under this Article;
16-22 (6) the records a license holder is required to
16-23 maintain under Section 5.13 of this Article;
16-24 (7) the inspection and examination without
16-25 notice of premises where gaming is conducted or where gaming
17-1 equipment is located, sold, distributed, or stored;
17-2 (8) the seizure and removal without notice or
17-3 hearing of any gaming equipment for examination and inspection;
17-4 (9) the reporting by a riverboat casino operator
17-5 license holder of the number and types of gaming activities
17-6 conducted or to be conducted on a riverboat;
17-7 (10) the maintenance of gaming equipment;
17-8 (11) the granting of a license with special
17-9 conditions or for a limited period;
17-10 (12) the establishment of other categories of
17-11 licenses not established under this Article;
17-12 (13) the ejection or exclusion from a riverboat
17-13 of an individual;
17-14 (A) who has violated this Article, a rule
17-15 adopted under this Article, or a final order of the commission; or
17-16 (B) whose conduct or reputation is such
17-17 that the individual's presence on the riverboat, in the
17-18 commission's opinion, calls into question the honesty and integrity
17-19 of the gaming activities or interferes with the orderly conduct of
17-20 gaming activities;
17-21 (14) the manner in which an individual who has
17-22 been ejected or excluded from a riverboat may request and obtain a
17-23 hearing before the commission;
17-24 (15) the geographic boundaries and routes of
17-25 operation for riverboat gaming activities; and
18-1 (16) any other matter necessary for the
18-2 administration and enforcement of this Article.
18-3 Sec. 4.04. APPROVAL OF RULES FOR CERTAIN GAMES. The
18-4 commission shall adopt specific rules for blackjack and poker. A
18-5 riverboat casino operator shall post the applicable rules within
18-6 plain view of any table at which blackjack or poker is played.
18-7 CHAPTER 5. LICENSES
18-8 Sec. 5.01. LICENSE REQUIRED. (a) A person may not act as a
18-9 gaming equipment manufacturer, gaming equipment distributor, or
18-10 riverboat casino operator unless the person holds an appropriate
18-11 license issued under this Article.
18-12 (b) A person may not be employed as a gaming employee unless
18-13 the person holds an appropriate license issued under this Article.
18-14 (c) A person may not conduct other gaming activities for
18-15 which the commission by rule requires a license unless the person
18-16 holds an appropriate license issued under this Article.
18-17 (d) A riverboat casino operator must hold a separate license
18-18 for each location from which the riverboat casino operator operates
18-19 a riverboat.
18-20 Sec. 5.02. ISSUANCE; TERM; RENEWAL. (a) The commission
18-21 shall issue a license to a qualified person on application, payment
18-22 of the applicable fee, and execution of the applicable bond.
18-23 (b) The commission may not issue a riverboat casino operator
18-24 license unless the governing body of the political subdivision in
18-25 which the riverboat is to be operated certifies in writing to the
19-1 secretary of state that a successful legalization election was held
19-2 under Chapter 7 of this Article.
19-3 (c) A license expires on the first anniversary of the date
19-4 it is issued.
19-5 (d) A license holder may renew an unexpired license annually
19-6 by paying to the commission a fee not to exceed the lesser of:
19-7 (1) $50,000; or
19-8 (2) an amount equal to the amount of an original
19-9 license fee for the license for the period of the renewal.
19-10 Sec. 5.03. APPLICATION; FORM; CERTIFICATE. (a) An
19-11 applicant must pay the required application or renewal fee and
19-12 submit an application on a form prescribed by the commission.
19-13 (b) The application of an individual must include:
19-14 (1) the applicant's full name;
19-15 (2) the applicant's date of birth;
19-16 (3) a physical description of the applicant;
19-17 (4) the applicant's address and telephone number; and
19-18 (5) a statement by the applicant disclosing the
19-19 applicant's arrest or conviction for any felony or misdemeanor
19-20 offense other than a misdemeanor offense under the Uniform Act
19-21 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
19-22 Statutes) or a similar misdemeanor traffic offense.
19-23 (c) The application of a corporation must include:
19-24 (1) the name and address of the corporation's agent
19-25 for service of process in this state;
20-1 (2) the name, address, and telephone number of each
20-2 director and of each stockholder who owns or controls more than
20-3 five percent of the corporation's stock;
20-4 (3) the date of birth and a physical description of
20-5 each director and of each individual stockholder who owns or
20-6 controls more than five percent of the corporation's stock; and
20-7 (4) a statement by each director and by each
20-8 individual stockholder who owns or controls more than five percent
20-9 of the corporation's stock disclosing any arrest or conviction of
20-10 that director or stockholder for any felony or misdemeanor offense
20-11 other than a misdemeanor offense under the Uniform Act Regulating
20-12 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes)
20-13 or a similar misdemeanor traffic offense.
20-14 (d) The application of an unincorporated business
20-15 association or any legal entity other than an individual or
20-16 corporation must include:
20-17 (1) the name, address, telephone number, and
20-18 percentage of ownership of each of its owners or members;
20-19 (2) the date of birth and a physical description of
20-20 each individual owner or member; and
20-21 (3) a statement by each individual owner or member who
20-22 owns an interest in the entity that is greater than five percent
20-23 disclosing any arrest or conviction of that owner or member for any
20-24 felony or misdemeanor offense other than a misdemeanor offense
20-25 under the Uniform Act Regulating Traffic on Highways (Article
21-1 6701d, Vernon's Texas Civil Statutes) or a similar misdemeanor
21-2 traffic offense.
21-3 (e) An application for a license under this chapter must
21-4 contain information necessary to determine the applicant's
21-5 eligibility for a license under this Chapter.
21-6 (f) An application for a riverboat casino operator license
21-7 must be accompanied by:
21-8 (1) a detailed statement of the assets and liabilities
21-9 of the applicant;
21-10 (2) evidence necessary to determine the compliance of
21-11 the riverboat on which gaming is to be conducted with the
21-12 requirements of Section 5.09 of this Article;
21-13 (3) a plan for the riverboat showing the proposed
21-14 location of the casino space and all gaming equipment;
21-15 (4) a detailed floor plan of a land-based development,
21-16 redevelopment, or renovation of a permanent structure of not less
21-17 than 20,000 square feet for entertainment, ticketing, retail
21-18 outlets, amusements, and other related activities;
21-19 (5) a timetable showing that the facilities described
21-20 in Subdivision (4) of this subsection will be constructed not later
21-21 than the first anniversary of the date the commission issues a
21-22 license to the applicant;
21-23 (6) a traffic control and management plan detailing
21-24 improvements for the ingress, egress, and parking of motor
21-25 vehicles, sufficient for the proposed size and type of the
22-1 applicant's riverboat casino operations;
22-2 (7) an affirmative action plan, outlining minority
22-3 recruitment efforts for gaming employees; and
22-4 (8) a plan providing for the recruitment, retraining,
22-5 and hiring of unemployed residents of this state.
22-6 (g) The commission shall provide each applicant granted a
22-7 license with a license certificate or credentials.
22-8 Sec. 5.04. FINGERPRINTS. (a) An applicant for a license
22-9 under this Article must submit to the commission a complete set of
22-10 fingerprints of the individual applying for the license or, if the
22-11 applicant is not an individual, of any individual required to be
22-12 named in the application.
22-13 (b) The commission, not later than the next day after
22-14 receiving the fingerprints, shall forward the prints by mail to the
22-15 Department of Public Safety. The department shall classify the
22-16 fingerprints and check them against its fingerprint files and shall
22-17 report to the commission its findings concerning the criminal
22-18 record of the applicant or the lack of such a record. A license
22-19 may not be issued until the report is made to the commission.
22-20 (c) A peace officer of this or any other state, or any
22-21 district office of the commission, shall take the fingerprints of
22-22 an applicant for a license on forms approved and furnished by the
22-23 17-22 Department of Public Safety and shall immediately deliver
22-24 them to the commission.
22-25 Sec. 5.05. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
23-1 commission may obtain any criminal history record information that
23-2 relates to an applicant for employment by the commission or to an
23-3 applicant for a license issued by the commission and that is
23-4 maintained by the Department of Public Safety, the Federal Bureau
23-5 of Investigation Identification division, or any other law
23-6 enforcement agency. The commission may refuse to employ or to
23-7 grant a license to an applicant who fails to provide a complete set
23-8 of fingerprints.
23-9 (b) Criminal history record information received by the
23-10 commission under this section is for the exclusive use of the
23-11 commission, is privileged and confidential, and may not be released
23-12 or otherwise disclosed to any person or agency except:
23-13 (1) in a criminal proceeding;
23-14 (2) in a hearing conducted by the commission;
23-15 (3) on court order; or
23-16 (4) with the consent of the applicant.
23-17 Sec. 5.06. RESIDENCY REQUIREMENT. To be eligible for a
23-18 license under this Article:
23-19 (1) an individual must show that the individual is a
23-20 resident of this state; or
23-21 (2) a person other than an individual must show that
23-22 not less than one-third of the ownership interest in the person is
23-23 held by residents of this state.
23-24 Sec. 5.07. GROUNDS FOR DENIAL, REVOCATION, OR SUSPENSION OF
23-25 LICENSE. (a) The commission, after notice and hearing, may refuse
24-1 to issue an original or renewal license under this Article or may
24-2 revoke or suspend a license if the commission finds that the
24-3 applicant or license holder is an individual who has been
24-4 convicted of a felony, criminal fraud, gambling or a
24-5 gambling-related offense, or a misdemeanor involving moral
24-6 turpitude, if less than 10 years has elapsed since the termination
24-7 of the sentence, parole, mandatory supervision, or probation served
24-8 for the offense.
24-9 (b) The commission, after notice and hearing, may:
24-10 (1) refuse to issue an original or renewal license
24-11 under this Article if it finds the person is not eligible for the
24-12 license;
24-13 (2) refuse to issue an original or renewal riverboat
24-14 casino operator license under this Article if the commission finds
24-15 that the proposed riverboat casino operation does not comply with
24-16 this Article;
24-17 (3) refuse to issue a gaming employee license to a
24-18 person discharged for cause by any gaming business in any
24-19 jurisdiction; or
24-20 (4) revoke a license under this Article if it finds
24-21 that the person was not eligible for the license at the time it was
24-22 issued or is no longer eligible for the license.
24-23 Sec. 5.08. MULTIPLE LICENSES PROHIBITED. A person licensed
24-24 under this Article as a gaming equipment manufacturer, gaming
24-25 equipment distributor, or riverboat casino operator may not hold
25-1 another type of license issued under this Article.
25-2 Sec. 5.09. RIVERBOAT REQUIREMENTS AND RESTRICTIONS. (a) A
25-3 person may not obtain a riverboat casino operator license unless
25-4 the riverboat on which gaming is to be conducted:
25-5 (1) carries a certificate of inspection issued by the
25-6 United States Coast Guard under Title 46, United States Code, and
25-7 46 CFR, Chapter I, Subchapter H, for the carriage of at least 600
25-8 passengers on navigable waterways in this state;
25-9 (2) is at least 150 feet long;
25-10 (3) is:
25-11 (A) of a design that replicates as nearly as
25-12 practical passenger steamboats of the 19th century; or
25-13 (B) otherwise of a design suitable for riverboat
25-14 gaming activities on specific waterways; and
25-15 (4) is powered by a fuel acceptable to the United
25-16 States Coast Guard under Title 46, United States Code, and 46 CFR,
25-17 Chapter I, Subchapter H.
25-18 (b) Casino space aboard a riverboat may not exceed 60
25-19 percent of the total space of the riverboat. The main entrance or
25-20 sole public access to a riverboat may not be through the casino
25-21 space.
25-22 (c) A riverboat casino must include:
25-23 (1) a crew complement that meets all U.S. Coast Guard
25-24 marine personnel requirements; and
25-25 (2) U.S. Red Cross certification in CPR and U.S. Coast
26-1 Guard certification in lifeboat and marine fire fighting for at
26-2 least 50 percent of all employees performing non-gaming tasks,
26-3 including vessel operations and food service.
26-4 Sec. 5.10. AREA OF OPERATION; MAXIMUM NUMBER OF RIVERBOAT
26-5 CASINO OPERATOR LICENSES. (a) The commission may issue up to
26-6 fifteen riverboat casino operator licenses to applicants in any
26-7 county or municipality in Texas with navigable waterway(s), in
26-8 whole or in part, within its boundaries, including channels and
26-9 fairways, that are safety-regulated by the United States Coast
26-10 Guard.
26-11 (b) The Commission may not issue more than:
26-12 (1) five licenses for riverboat casinos
26-13 operating in Harris County;
26-14 (2) two licenses for riverboat casinos operating
26-15 in Cameron County;
26-16 (3) two licenses for riverboat casinos operating
26-17 in Galveston County;
26-18 (4) two licenses for riverboat casinos operating
26-19 in Jefferson County;
26-20 (5) one license for a riverboat casino operating
26-21 in Brazoria County;
26-22 (6) one license for a riverboat casino operating
26-23 in Nueces County; and
26-24 (7) one license for a riverboat casino operating
26-25 Montgomery County.
27-1 (c) A person who holds a riverboat casino operator license
27-2 may operate more than one vessel if each vessel operates from the
27-3 dock site for which the person holds the license.
27-4 (d) In a county in which the commission may award more than
27-5 one riverboat casino operator license, the commission shall give
27-6 preference to at least one applicant whose dock site is leased from
27-7 a port authority, if the port authority:
27-8 (1) existed on January 1, 1992, and
27-9 (2) consents to the license.
27-10 (e) In this section:
27-11 (1) "Dock site" means the land development and
27-12 associated dock facilities where an applicant or license holder
27-13 will normally berth a riverboat.
27-14 (2) "Port Authority" means a port authority created or
27-15 operating under Article III, Section 52, or Article XVI, Section
27-16 59, of the Texas Constitution.
27-17 Sec. 5.11. GAMING OPERATIONS WHILE RIVERBOAT IS BERTHED.
27-18 (a) Except as provided by Subsections (b) and (c) of this section,
27-19 a riverboat casino operator may not conduct gaming activities or
27-20 permit passengers to enter the casino space unless the riverboat is
27-21 navigating or anchored.
27-22 (b) A riverboat casino operator may conduct gaming
27-23 activities for a period not to exceed one hour while the riverboat
27-24 is berthed for passenger loading or unloading.
27-25 (c) A riverboat casino operator may conduct gaming
28-1 activities while the riverboat is berthed during inclement weather
28-2 during which, in the determination of the captain of the riverboat,
28-3 the normal operation of the riverboat would pose a health or safety
28-4 risk to passengers. The riverboat casino operator shall report
28-5 each occurrence of gaming activities under this subsection to the
28-6 commission not later than 24 hours after the gaming takes place.
28-7 Sec. 5.12. BOND. (a) Before a riverboat casino operator
28-8 license, a gaming equipment manufacturer license, or a gaming
28-9 equipment distributor license may be issued, the applicant must
28-10 execute a bond that is:
28-11 (1) payable to the state;
28-12 (2) in the amount of $20,000; and
28-13 (3) conditioned that the applicant will comply with
28-14 this Article and the rules adopted under this Article.
28-15 (b) The bond and the surety must be approved by the
28-16 commission.
28-17 (c) The commission by rule may require a bond before issuing
28-18 a license in a license category established by the commission.
28-19 Subsections (a) and (b) of this section apply to a bond under this
28-20 subsection.
28-21 Sec. 5.13. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
28-22 STATEMENTS. The commission shall require license holders to:
28-23 (1) keep books and records relating to activities
28-24 regulated by this Article; and
28-25 (2) submit financial statements to the commission.
29-1 CHAPTER 6. FEES AND TAXES
29-2 Sec. 6.01. APPLICATION FEE. An applicant for a license
29-3 under this Article must submit with the application a nonrefundable
29-4 fee in the amount determined by the commission. The amount must be
29-5 sufficient to cover the cost of administering the application
29-6 process.
29-7 Sec. 6.02. RIVERBOAT CASINO OPERATOR LICENSE FEE. (a)
29-8 Subject to Section 5.02(d) of this Article, the annual fee for a
29-9 riverboat casino operator license is determined by the number of
29-10 games offered for play on each day by the riverboat casino operator
29-11 during the year for which the fee is charged, as provided by the
29-12 following table:
29-13 Number of games: Fee:
29-14 1-13 $600 per game per year
29-15 14-16 $1,000 per game per year
29-16 17 or more $16,000 plus $200 per game
29-17 per year for each game in
29-18 excess of 16
29-19 (b) For purposes of Subsection (a) of this section, the
29-20 number of games offered for play on a day is equal to the maximum
29-21 number of all games that may be conducted in the casino space of a
29-22 riverboat on that day, as reported by the riverboat casino operator
29-23 in an application for a license or a report to the commission. The
29-24 commission may audit a riverboat casino operator to determine
29-25 compliance with this subsection.
30-1 Sec. 6.03 OTHER LICENSE FEES. (a) The annual fee for a
30-2 license under this Article other than a riverboat casino operator
30-3 license is:
30-4 (1) $1,000, for a gaming equipment manufacturer
30-5 license;
30-6 (2) $1,000, for a gaming equipment distributor
30-7 license;
30-8 (3) $25, for a gaming employee license; or
30-9 (4) the amount set by commission rule for a license
30-10 category established by the commission.
30-11 (b) The amount of a license fee under Subsection (a)(4) of
30-12 this section must be reasonably related to the cost of
30-13 administering this Article in relation to the license category.
30-14 Sec. 6.04. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICE
30-15 STAMP FEE. (a) In addition to other fees under this Article,
30-16 there is imposed an activity stamp fee on each electronic or
30-17 electromechanical gaming device located in a riverboat casino.
30-18 (b) The annual fee for an electronic or electromechanical
30-19 gaming device stamp is $250.
30-20 (c) An electronic or electromechanical gaming device stamp
30-21 fee must be paid according to commission rule. The electronic or
30-22 electromechanical gaming device stamp must be affixed to the gaming
30-23 device according to commission rule.
30-24 (d) In this section, "electronic or electromechanical gaming
30-25 device" means gaming equipment that, on insertion of a coin,
31-1 currency, credit card, token, or similar object or on the payment
31-2 of any valuable consideration, is available to operate, the
31-3 operation of which, whether by reason of skill of the operator or
31-4 application of the element of chance, may deliver or entitle the
31-5 person operating the equipment to receive cash, premiums,
31-6 merchandise, tokens, or anything of value, whether the payoff is
31-7 made automatically from the equipment or in any other manner.
31-8 Sec. 6.05. GAMING TAX. (a) There is imposed a tax on the
31-9 annual adjusted gross revenue of gaming conducted under this
31-10 Article.
31-11 (b) The rate of the tax imposed by this section is eight
31-12 percent of the adjusted gross revenue.
31-13 (c) The tax imposed by this section is payable by the
31-14 riverboat casino operator to the commission.
31-15 Sec. 6.06. ADJUSTED GROSS REVENUE. (a) For purposes of
31-16 this Article, adjusted gross revenue of gaming is:
31-17 (1) the sum of:
31-18 (A) cash received as winnings by a riverboat
31-19 casino operator;
31-20 (B) cash received in payment for credit extended
31-21 by a riverboat casino operator to a passenger for purposes of
31-22 gaming; and
31-23 (C) compensation received for conducting a game
31-24 in which the riverboat casino operator is not party to a bet;
31-25 (2) less the sum of:
32-1 (A) cash paid out as losses to passengers; and
32-2 (B) amounts paid to purchase annuities to fund
32-3 losses paid to passengers over several years by independent
32-4 financial institutions.
32-5 (b) For purposes of this section:
32-6 (1) cash or compensation received by a riverboat
32-7 casino operator does not include:
32-8 (A) counterfeit money or tokens;
32-9 (B) coins of other countries received in gaming
32-10 equipment;
32-11 (C) cash received from a fraudulent act
32-12 perpetrated against a riverboat casino operator for which the
32-13 riverboat casino operator is not reimbursed; or
32-14 (D) cash received as an entry fee for a contest
32-15 or tournament in which passengers compete for prizes; and
32-16 (2) cash or the value of a noncash prize awarded to a
32-17 passenger in a contest or tournament is not a loss.
32-18 Sec. 6.07 ALLOCATION TO COMPULSIVE GAMBLING PROGRAM.
32-19 One-tenth of one percent of the tax imposed by Section 6.05 of this
32-20 Article is allocated to the Texas Commission on Alcohol and Drug
32-21 Abuse for the commission's compulsive gambling program under
32-22 Section 461.018, Health and Safety Code.
32-23 Sec. 6.08 ADMISSION FEE. (a) A riverboat casino operator
32-24 shall charge each passenger an admission fee for each excursion of
32-25 at least $2.50 if the riverboat operates in a municipality.
33-1 (b) A fee charged under Subsection (a) of this section is
33-2 allocated as follows:
33-3 (1) $1 is allocated to the municipality in which the
33-4 riverboat operates;
33-5 (2) 50 cents is allocated to the county in which the
33-6 riverboat operates;
33-7 (3) $1 is allocated to the Texas Department of
33-8 Commerce to promote tourism and economic development in this state;
33-9 and
33-10 (4) the remainder, if any, is allocated to the
33-11 riverboat casino operator.
33-12 (c) A riverboat casino operator shall charge each passenger
33-13 an admission fee for each excursion of at least $2 if the riverboat
33-14 does not operate in a municipality.
33-15 (d) A fee charged under Subsection (c) of this section is
33-16 allocated as follows:
33-17 (1) $1 is allocated to the county in which the
33-18 riverboat operates;
33-19 (2) $1 is allocated to the Texas Department of
33-20 Commerce to promote tourism and economic development in this state;
33-21 and
33-22 (3) The remainder, if any, is allocated to the
33-23 riverboat casino operator.
33-24 Sec. 6.09. TAX ADMINISTRATION, COLLECTION, AND ENFORCEMENT.
33-25 (a) The commission shall perform all functions incident to the
34-1 administration, collection, enforcement, and operation of any fee
34-2 or tax imposed under this Article. The commission may adopt
34-3 reasonable rules and prescribe forms that are consistent with this
34-4 Article for the administration, collection, and enforcement of the
34-5 fees and taxes imposed under this Article and for the reporting of
34-6 the fees and taxes imposed under this Article.
34-7 (b) Subtitle B, Title 2, Tax Code, applies to the
34-8 administration, collection, and enforcement of the taxes authorized
34-9 or imposed under this Article except as modified by this Article.
34-10 For purposes of the application of that subtitle to the taxes
34-11 authorized or imposed under this Article only, the powers and
34-12 duties assigned to the comptroller under that subtitle are assigned
34-13 to the commission.
34-14 Sec. 6.10. DEPOSIT OF TAX. One-fourth of the tax collected
34-15 under this Article shall be deposited to the credit of the
34-16 foundation school fund. Three-fourths of the tax collected under
34-17 this Article shall be deposited to the credit of the general
34-18 revenue fund.
34-19 Sec. 6.11. LIMITATION ON ADDITIONAL FEES OR TAXES. A state
34-20 agency or political subdivision may not impose a fee or tax on
34-21 riverboat casino gaming activity that is not authorized by:
34-22 (1) Section 6.05 or 6.08 of this Article; or
34-23 (2) the Tax Code.
34-24 CHAPTER 7. LOCAL OPTION ELECTION
34-25 Sec. 7.01. ORDERING ELECTION. The governing body of an
35-1 eligible political subdivision at any time may order and hold an
35-2 election to legalize riverboat casino gaming under this Article in
35-3 the political subdivision. The governing body of an eligible
35-4 political subdivision shall order and hold an election to legalize
35-5 riverboat casino gaming under this Article in the political
35-6 subdivision if the governing body is presented with a petition that
35-7 meets the requirements of Section 7.02 of this Article and is
35-8 certified as valid under Section 7.03 of this Article.
35-9 Sec. 7.02 PETITION. (a) A petition for a legalization
35-10 election must have a statement substantially as follows preceding
35-11 the space reserved for signatures on each page: "This petition is
35-12 to require that an election be held in (name of political
35-13 subdivision) to legalize casino gaming on riverboats operating in
35-14 (name of political subdivision) under Article 179h, Revised
35-15 Statutes."
35-16 (b) A petition is valid only if it is signed by registered
35-17 voters of the political subdivision in a number equal to or greater
35-18 than the lesser of:
35-19 (1) three percent of the number of votes cast for
35-20 governor by qualified voters of the political subdivision in the
35-21 most recent gubernatorial general election; or
35-22 (2) the number specified in the municipality's
35-23 charter, in an election to be held in a municipality.
35-24 (c) Each voter must enter beside the voter's signature the
35-25 date the voter signs the petition. A signature may not be counted
36-1 if the date of signing is earlier than the 90th day before the date
36-2 the petition is submitted to the governing body.
36-3 (d) Each voter must provide the voter's current voter
36-4 registration number, printed name, and residence address including
36-5 zip code.
36-6 Sec. 7.03. VERIFICATION OF PETITION. (a) Not later than
36-7 the fifth day after the date a petition for an election under this
36-8 Article is received in the office of the governing body, the
36-9 governing body shall submit the petition for verification to the
36-10 municipal secretary or county clerk, as applicable.
36-11 (b) The officer to whom the petition is submitted for
36-12 verification shall determine whether the petition is signed by the
36-13 required number of registered voters of the political subdivision.
36-14 Not later than the 30th day after the date the petition is
36-15 submitted to the officer for verification, the officer shall
36-16 certify in writing to the governing body of the political
36-17 subdivision whether the petition is valid or invalid. If the
36-18 officer determines that the petition is invalid, the officer shall
36-19 state all reasons for that determination.
36-20 Sec. 7.04. DATE OF ELECTION. If the municipal secretary or
36-21 county clerk, as applicable, certifies that a petition is valid,
36-22 not later than the 30th day after the date of certification, the
36-23 governing body shall order that an election be held in the
36-24 municipality or county on the next uniform election date under
36-25 Section 41.001, Election Code, that occurs after the 45th day after
37-1 the date on which the governing body orders the election. The
37-2 governing body shall state in the order the issue to be voted on.
37-3 The municipal secretary or county clerk shall notify the commission
37-4 by certified mail, return receipt requested, that an election has
37-5 been ordered.
37-6 Sec. 7.05. BALLOT PROPOSITION. The ballot in a legalization
37-7 election shall be printed to provide for voting for or against the
37-8 proposition: "Legalizing casino gaming on riverboats within (name
37-9 of political subdivision) under Article 179h, Revised Statutes."
37-10 Sec. 7.06. RESULTS OF ELECTION. (a) If the majority of the
37-11 votes cast in a legalization election are for the legalization of
37-12 gaming on riverboats; gaming as authorized under this Article is
37-13 permitted within the political subdivision holding the election
37-14 effective the 10th day after the date the election is canvassed.
37-15 (b) The governing body of a political subdivision in which a
37-16 legalization election has been held shall give written notice of
37-17 the results of the election to the commission not later than the
37-18 third day after the date the election is canvassed.
37-19 CHAPTER 8. OFFENSES; PENALTIES
37-20 Sec. 8.01. GAMING BY INDIVIDUAL UNDER 21 YEARS OF AGE. (a)
37-21 A person commits an offense if the person knowingly permits an
37-22 individual that the person knows is younger than 21 years of age to
37-23 participate in gaming. An offense under this subsection is a Class
37-24 A misdemeanor.
37-25 (b) An individual commits an offense if the individual
38-1 participates in gaming and the individual is younger than 21 years
38-2 of age at the time of participation. An offense under this
38-3 subsection is a Class C misdemeanor.
38-4 Sec. 8.02. FRAUD. (a) A person commits an offense if the
38-5 person knowingly:
38-6 (1) uses bogus or counterfeit chips, tokens, devices,
38-7 or coins during a game;
38-8 (2) uses or is in possession of any cheating device
38-9 designed to facilitate cheating in a game operated by a riverboat
38-10 casino license holder; or
38-11 (3) uses any fraudulent scheme or technique in a game
38-12 operated by a riverboat casino license holder.
38-13 (b) An offense under this section is a Class A misdemeanor.
38-14 Sec. 8.03. REPORTING AND RECORD VIOLATIONS; PENALTY. (a) A
38-15 person commits an offense if the person, in a license application,
38-16 in a book or record required to be maintained by this Article or a
38-17 rule adopted under this Article, or in a report required to be
38-18 submitted by this Article or a rule adopted under this Article:
38-19 (1) knowingly makes a statement or entry that the
38-20 person knows to be false or misleading; or
38-21 (2) fails to maintain or make an entry the person
38-22 knows is required to be maintained or made.
38-23 (b) A person commits an offense if the person knowingly
38-24 refuses to produce for inspection by the executive director a book,
38-25 record, or document required to be maintained or made by this
39-1 Article or a rule adopted under this Article.
39-2 (c) An offense under this section is a Class A misdemeanor.
39-3 SECTION 2. The Texas Racing Act (Article 179e, Vernon's
39-4 Texas Civil Statutes) is amended by adding Article 19 to read as
39-5 follows:
39-6 Article 19. ELECTRONIC OR ELECTROMECHANICAL
39-7 GAMING DEVICES
39-8 Sec. 19.01. DEFINITION. In this Article, "electronic or
39-9 electromechanical gaming device" has the meaning assigned by
39-10 Section 6.04, Article 179h, Revised Statutes.
39-11 Sec. 19.02. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICES
39-12 PERMITTED AT CERTAIN RACETRACKS. An association that holds a class
39-13 1 horse racetrack license or a greyhound racetrack license may
39-14 install electronic or electromechanical gaming devices on the
39-15 premises of the racetrack in accordance with commission rules.
39-16 Sec. 19.03. RULES. The commission shall adopt rules
39-17 relating to electronic or electromechanical gaming devices. The
39-18 rules relating to the area in which the gaming devices may be
39-19 operated and the spacing of gaming devices must be consistent with
39-20 and may not be more stringent than rules adopted by the Texas
39-21 Riverboat Gaming Commission regarding electronic or
39-22 electromechanical gaming devices in riverboat casinos.
39-23 Sec. 19.04. FEES. (a) In addition to other fees under this
39-24 Act, there is imposed an activity stamp fee on each electronic or
39-25 electromechanical gaming device installed at a racetrack.
40-1 (b) The annual fee for an electronic or electromechanical
40-2 gaming device stamp is $250.
40-3 (c) An electronic or electromechanical gaming device stamp
40-4 fee must be paid according to commission rule. The electronic or
40-5 electromechanical gaming device stamp must be affixed to the gaming
40-6 device according to commission rule.
40-7 Sec. 19.05. TAX. (a) There is imposed a tax on the annual
40-8 adjusted gross revenue from electronic or electromechanical gaming
40-9 devices installed and operated at a racetrack under this Article.
40-10 (b) The rate of the tax imposed by this section is eight
40-11 percent of the adjusted gross revenue.
40-12 (c) The tax is payable by the association to the
40-13 comptroller. For purposes of collecting the tax, the comptroller
40-14 has all powers granted by Article 4 and Section 6.10 of this Act
40-15 for collecting the state's share of a pari-mutuel pool.
40-16 (d) For purposes of the tax, adjusted gross revenue from
40-17 electronic or electromechanical gaming devices is the cash received
40-18 as winnings by an association, less the cash paid out as losses to
40-19 players. For purposes of this subsection, cash received by an
40-20 association does not include counterfeit money or tokens or coins
40-21 of other countries.
40-22 Sec. 19.06. DEPOSIT OF TAX. One-fourth of the tax collected
40-23 under this Article shall be deposited to the credit of the
40-24 foundation school fund. Three-fourths of the tax collected under
40-25 this Article shall be deposited to the credit of the general
41-1 revenue fund.
41-2 Sec. 19.07. MAXIMUM NUMBER OF GAMING DEVICES PER TRACK. An
41-3 association may not install more than 500 electronic or
41-4 electromechanical gaming devices.
41-5 Sec. 19.08. MANUFACTURE OR DISTRIBUTION WITHOUT LICENSE
41-6 PROHIBITED. (a) A person may not manufacture electronic or
41-7 electromechanical gaming devices unless the person holds a gaming
41-8 equipment manufacturer license under Article 179h, Revised
41-9 Statutes.
41-10 (b) A person may not distribute electronic or
41-11 electromechanical gaming devices unless the person holds a gaming
41-12 equipment distributor license under Article 179h, Revised Statutes.
41-13 Sec. 19.09. EXEMPTION FROM FEDERAL LAW. Electronic or
41-14 electromechanical gaming devices operated or to be operated under
41-15 this Article are exempted from 15 U.S.C. Sec. 1172.
41-16 Sec. 19.10. OPERATION BY INDIVIDUAL UNDER 21 YEARS OF AGE.
41-17 (a) A person commits an offense if the person knowingly permits an
41-18 individual that the person knows is younger than 21 years of age to
41-19 operate an electronic or electromechanical gaming device. An
41-20 offense under this subsection is a Class A misdemeanor.
41-21 (b) An individual commits an offense if the individual
41-22 operates an electronic or electromechanical gaming device and the
41-23 individual is younger than 21 years of age at the time of
41-24 operation. An offense under this subsection is a Class C
41-25 misdemeanor.
42-1 Sec. 19.11. PROHIBITION ON LOTTERIES AND GIFT ENTERPRISES.
42-2 (a) In this section "lotteries and gift enterprises" has the
42-3 meaning assigned by Sec. 1.03(5), Article 179h, Revised Statues.
42-4 (b) Lotteries and gift enterprises may not be
42-5 conducted at a racetrack.
42-6 SECTION 3. Section 47.02(c), Penal Code, is amended to read
42-7 as follows:
42-8 (c) It is a defense to prosecution under this section that
42-9 the actor reasonably believed that the conduct:
42-10 (1) was permitted under the Bingo Enabling Act
42-11 (Article 179d, Vernon's Texas Civil Statutes):
42-12 (2) was permitted under the Charitable Raffle Enabling
42-13 Act (Article 179f, Revised Statutes, as added by Chapter 957, Acts
42-14 of the 71st Legislature, Regular Session, 1989); <or>
42-15 (3) consisted entirely of participation in the state
42-16 lottery authorized by the State Lottery Act (Article 179g, Vernon's
42-17 Texas Civil Statutes); or
42-18 (4) was permitted under The Texas Riverboat Economic
42-19 Development and Gaming Control Act (Article 179h, Revised
42-20 Statutes).
42-21 SECTION 4. Section 47.06, Penal Code, is amended by adding
42-22 Subsection (h) to read as follows:
42-23 (h) It is a defense to prosecution for an offense under this
42-24 section that the conduct was permitted under the Texas Racing Act
42-25 (Article 179e, Vernon's Texas Civil Statutes) or the Texas
43-1 Riverboat Economic Development and Gaming Control Act (Article
43-2 179h, Revised Statutes).
43-3 SECTION 5. Section 47.11, Penal Code, is amended to read as
43-4 follows:
43-5 Sec. 47.11. CONDUCT PERMITTED UNDER TEXAS RACING ACT
43-6 <PARI-MUTUEL WAGERING ON CERTAIN RACES>. It is a defense to
43-7 prosecution for an offense under this chapter that the conduct was
43-8 authorized under the Texas Racing Act (Article 179e, Vernon's Texas
43-9 Civil Statutes).
43-10 SECTION 6. Chapter 47, Penal Code, is amended by adding
43-11 Section 47.15 to read as follows:
43-12 Sec. 47.15. RIVERBOAT GAMING. It is a defense to
43-13 prosecution for an offense under this chapter that the conduct was
43-14 permitted under the Texas Riverboat Economic Development and Gaming
43-15 Control Act (Article 179h, Revised Statutes.
43-16 SECTION 7. Subchapter H, Chapter 151, Tax Code, is amended
43-17 by adding Section 151.350 to read as follows:
43-18 Sec. 151.350. RIVERBOAT CASINO ADMISSION FEES. An admission
43-19 fee charged by a riverboat casino operator under Section 6.08,
43-20 Article 179h, Revised Statutes, is exempt from the taxes imposed by
43-21 this chapter.
43-22 SECTION 8. Article 8803, Revised Statutes, is amended to
43-23 read as follows:
43-24 Art. 8803. Exemptions from tax. (a) Gas meters, pay
43-25 telephones, pay toilets, food vending machines, confection vending
44-1 machines, beverage vending machines, merchandise vending machines,
44-2 and cigarette vending machines which are now subject to an
44-3 occupation or gross receipts tax, stamp vending machines, and
44-4 "service coin-operated machines," as that term is defined, are
44-5 expressly exempt from the tax levied herein, and the other
44-6 provisions of this Chapter.
44-7 (b) An electronic or electromechanical gaming device
44-8 permitted under Article 19, Texas Racing Act (Article 179e,
44-9 Vernon's Texas Civil Statutes), or the Texas Riverboat Economic
44-10 Development and Gaming Control Act (Article 179h, Revised
44-11 Statutes), is exempt from the tax imposed by this Chapter and from
44-12 the other provisions of this Chapter.
44-13 SECTION 9. Section 2(5)(A), Chapter 421, Acts of the 63rd
44-14 Legislature, Regular Session, 1973, (Article 6252-9b, Vernon's
44-15 Texas Civil Statutes), is amended to read as follows:
44-16 (5)(A) "Appointed officer of a major state agency"
44-17 means any of the following:
44-18 (i) a member of the Public Utility
44-19 Commission of Texas;
44-20 (ii) a member of the Texas Department of
44-21 Commerce;
44-22 (iii) a member of the Texas Board of
44-23 Aviation;
44-24 (iv) a member of the Texas Air Control
44-25 Board;
45-1 (v) a member of the Texas Alcoholic
45-2 Beverage Commission;
45-3 (vi) a member of the Finance Commission of
45-4 Texas;
45-5 (vii) a member of the State Purchasing and
45-6 General Services Commission;
45-7 (viii) a member of the Texas Board of
45-8 Criminal Justice;
45-9 (ix) a member of the Board of Trustees of
45-10 the Employees Retirement System of Texas;
45-11 (x) a member of the State Highway and
45-12 Public Transportation Commission;
45-13 (xi) a member of the Texas Workers'
45-14 Compensation Commission;
45-15 (xii) a member of the State Board of
45-16 Insurance;
45-17 (xiii). a member of the Parks and Wildlife
45-18 Commission;
45-19 (xiv) a member of the Public Safety
45-20 Commission;
45-21 (xv) the Secretary of State;
45-22 (xvi) a member of the State Securities
45-23 Board;
45-24 (xvii) a member of the Texas Amusement
45-25 Machine Commission;
46-1 (xviii) a member of the Texas Water
46-2 Development Board;
46-3 (xix) a member of the Texas Water
46-4 Commission;
46-5 (xx) a member of the governing board of a
46-6 state senior college or university as defined by Section 61.003,
46-7 Education Code, including the University of Texas at Arlington; The
46-8 University of Texas at Austin; The University of Texas at Dallas;
46-9 The University of Texas at El Paso; The University of Texas--Pan
46-10 American; The University of Texas--Pan American--Brownsville; The
46-11 University of Texas of the Permian Basin; The University of Texas
46-12 at San Antonio; The University of Texas at Tyler; The University of
46-13 Texas Southwestern Medical Center at Dallas; The University of
46-14 Texas Medical Branch at Galveston; The University of Texas Health
46-15 Science Center at Houston; The University of Texas Health Science
46-16 Center at San Antonio; The University of Texas System Cancer
46-17 Center; The University of Texas Health Science Center at Tyler;
46-18 Texas A&M University; Texas A&M University at Galveston; Prairie
46-19 View A&M University; Tarleton State University; Corpus Christi
46-20 State University; Texas A&I University; Laredo State University;
46-21 East Texas State University; East Texas State University at
46-22 Texarkana; University of Houston; University of Houston--Clear
46-23 Lake; University of Houston--Downtown; University of
46-24 Houston--Victoria; Lamar University at Beaumont; Lamar University
46-25 at Orange; Lamar University at Port Arthur; Midwestern State
47-1 University; University of North Texas; Texas College of Osteopathic
47-2 Medicine; Stephen F. Austin State University; Texas Southern
47-3 University; Texas Tech University; Texas Tech University Health
47-4 Sciences Center; Texas Woman's University; West Texas State
47-5 University; Angelo State University; Sam Houston State University;
47-6 Southwest Texas State University; Sul Ross State University; Sul
47-7 Ross State University--Uvalde Center; Texas State Technical
47-8 Institute--Amarillo; Texas State Technical Institute--Harlingen;
47-9 Texas State Technical Institute--Sweetwater; and Texas State
47-10 Technical Institute--Waco;
47-11 (xxi) a member of the Texas Higher
47-12 Education Coordinating Board;
47-13 (xxii) a member of the Texas Employment
47-14 Commission;
47-15 (xxiii) a member of the State Banking
47-16 Board;
47-17 (xxiv) a member of the board of trustee of
47-18 the Teachers Retirement System of Texas;
47-19 (xxv) a member of the Credit Union
47-20 Commission;
47-21 (xxvi) a member of the School Land Board;
47-22 (xxvii) a member of the board of the Texas
47-23 Department of Housing and Community Affairs;
47-24 (xxviii) a member of the Texas Racing
47-25 Commission;
48-1 (xxix) a member of the State Board of
48-2 Dental Examiners;
48-3 (xxx) a member of the Texas Board of
48-4 Licensure for Nursing Home Administrators;
48-5 (xxxi) a member of the Texas State Board
48-6 of Medical Examiners;
48-7 (xxxii) a member of the Board of Pardons
48-8 and Paroles;
48-9 (xxxiii) a member of the Texas State Board
48-10 of Pharmacy;
48-11 (xxxiv) the Banking Commissioner of the
48-12 Banking Department of Texas;
48-13 (xxxv) a member of the Department of
48-14 Information Resources Governing Board;
48-15 (xxxvi) the fire fighters' pension
48-16 commissioner;
48-17 (xxxvii) a member of the Texas Motor
48-18 Vehicle Commission;
48-19 (xxxviii) the director of the Office of
48-20 Court Administration of the Texas Judicial System;
48-21 (xxxix) the chief executive of the Office
48-22 of Public Utility Counsel;
48-23 (xl) a member of the Texas Real Estate
48-24 Commission;
48-25 (xli) a member of the board of directors
49-1 and the executive director of the State Bar of Texas;
49-2 (xlii) a member of the Bond Review Board;
49-3 (xliii) a member of the Texas Board of
49-4 Health;
49-5 (xliv) a member of the Texas Board of
49-6 Mental Health and Mental Retardation;
49-7 (xlv) a member of the Texas Board on
49-8 Aging;
49-9 (xlvi) a member of the Texas Board of
49-10 Human Services;
49-11 (xlvii) a member of the Texas Funeral
49-12 Service Commission;
49-13 (xlviii) a member of the board of
49-14 directors of a river authority created under the constitution or
49-15 laws of this state;
49-16 (xlix) the director of the lottery
49-17 division in the office of the comptroller; <or>
49-18 (l) the deputy in charge of the department
49-19 of security in the lottery division in the office of the
49-20 comptroller; or
49-21 (li) a member of the Texas Riverboat
49-22 Gaming Commission.
49-23 SECTION 10. In making the initial appointments to the Texas
49-24 Riverboat Gaming Commission, the governor shall designate two
49-25 members for terms expiring in 1995, two members for terms expiring
50-1 in 1997, and two members for terms expiring in 1999.
50-2 SECTION 11. This Act takes effect and the Texas Riverboat
50-3 Gaming commission is created on September 1, 1993.
50-4 SECTION 12. The importance of this legislation and the
50-5 crowded condition of the calendars in both houses create an
50-6 emergency and an imperative public necessity that the
50-7 constitutional rule requiring bills to be read on three several
50-8 days in each house be suspended, and this rule is hereby suspended.