By Danburg H.B. No. 2151
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 devices at certain
1-5 licensed racetracks; authorizing certain taxes; providing
1-6 penalties.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. The legislature finds and declares it to be the
1-9 public policy of this state that:
1-10 (1) The development of the historic riverboat industry
1-11 is important to the economy of the State of Texas in that it will
1-12 assist in the continuing growth of the tourism industry and, thus,
1-13 will benefit the general welfare of our citizens and create new
1-14 jobs. It is the intent of this Act to utilize Texas resources,
1-15 goods, and services in the operation and construction of riverboats
1-16 to the extent allowable by law.
1-17 (2) An integral part of riverboat operations and
1-18 profitability is the offering of regulated gaming, among other
1-19 activities.
1-20 (3) The nature of the riverboat industry is such that
1-21 the operation of riverboats on the waters of the State of Texas
1-22 while allowing certain gaming activities will result in many
1-23 benefits to this state with no significant detriment to the
2-1 citizens of this state.
2-2 (4) Riverboats that operate certain limited duration
2-3 excursions and conduct gaming activities shall be licensed and
2-4 supervised through the period of construction of the vessel
2-5 continuing through to the operation of the vessel, and
2-6 gaming-related employees of those riverboats, gaming operators, and
2-7 manufacturers, suppliers, and distributors of gaming equipment
2-8 shall be regulated, licensed, and controlled to accomplish and
2-9 promote the above public policies while protecting the public
2-10 health, safety, and morals, good order, and general welfare of our
2-11 citizens.
2-12 (5) It is the express intent, desire, and policy of
2-13 the legislature that a gaming operator or applicant for a license
2-14 or permit issued as a result of this Act does not have any right of
2-15 action to obtain any license, permit, or approval sought except as
2-16 provided for and authorized by this Act. Any license, permit, or
2-17 approval obtained or issued under this Act is expressly declared by
2-18 the legislature to be a pure and absolute revocable privilege, and
2-19 not a right, property or otherwise, under the Constitution of the
2-20 United States or this state. The legislature declares that a
2-21 holder of any license or permit does not acquire any vested
2-22 interest or right in or under the license or permit.
2-23 SECTION 2. (a) This Act may not be construed to
2-24 legalize any form of gambling that is prohibited under the Texas
2-25 Constitution or the laws of this state. Nothing in this Act may
3-1 be construed as encouraging the legalization of gambling in this
3-2 state.
3-3 (b) The legislature finds that lotteries and gaming both
3-4 consist of the material element of chance. The legislature is
3-5 directed by Article III, Section 47, of the Texas Constitution to
3-6 prohibit "lotteries and gift enterprises" other than those
3-7 authorized by Subsections (b), (d), and (e) of that section. The
3-8 legislature is permitted by virtue of its inherent powers to
3-9 legislate on gaming as the occasion arises. The legislature
3-10 derives its power to legislate on gaming from its inherent
3-11 authority over the morals and policy of the people and that power
3-12 may not be considered to conflict with the constitutional
3-13 obligation to prohibit lotteries and gift enterprises.
3-14 (c) The legislature finds it to be the public policy of this
3-15 state that:
3-16 (1) regulation of licensed gaming is important in
3-17 order that licensed gaming is conducted honestly and competitively,
3-18 that the rights of the creditors of license holders are protected,
3-19 and that gaming is free from criminal and corruptive elements;
3-20 (2) public confidence and trust can only be maintained
3-21 by strict regulation of all persons, locations, practices,
3-22 associations, and activities related to the operation of licensed
3-23 gaming establishments and the manufacture or distribution of gaming
3-24 equipment; and
3-25 (3) all establishments where gaming is conducted and
4-1 where gaming equipment is operated and manufacturers, sellers, and
4-2 distributors of certain gaming equipment must be licensed,
4-3 controlled, and assisted to protect the public health, safety, and
4-4 morals, good order, and general welfare of our citizens.
4-5 (d) The legislature intends that gaming license holders, to
4-6 the extent practicable, employ residents of Texas as gaming
4-7 employees and other employees in the operation of their gaming
4-8 establishments located in this state.
4-9 SECTION 3. Title 6, Revised Statutes, is amended by adding
4-10 Article 179h to read as follows:
4-11 Art. 179h. RIVERBOAT ECONOMIC DEVELOPMENT AND GAMING CONTROL
4-12 ACT
4-13 CHAPTER 1. GENERAL PROVISIONS
4-14 Sec. 1.01. DEFINITIONS. In this article:
4-15 (1) "Casino space" means that portion of a riverboat
4-16 in which gaming may be conducted.
4-17 (2) "Commission" means the Texas Riverboat Gaming
4-18 Commission.
4-19 (3) "Eligible political subdivision" means:
4-20 (A) a municipality located wholly or in part in
4-21 a county described by Section 4.10 of this article; or
4-22 (B) a county described by Section 4.10 of this
4-23 article.
4-24 (4) "Executive director" means the executive director
4-25 of the commission.
5-1 (5) "Game" means an amusement or competition involving
5-2 skill or chance, or both, played with cards, dice, equipment, or
5-3 any device for money, property, checks, credit, or any
5-4 representative of value, including the amusements or competitions
5-5 commonly known as faro, monte, roulette, keno, fan-tan, twenty-one,
5-6 blackjack, seven-and-a-half, big injun, klondike, craps, poker,
5-7 chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
5-8 chemin de fer, baccarat, pai gow, beat the banker, and panguingui.
5-9 The term includes a game played by operating a slot machine and any
5-10 banking or percentage game. The term does not include:
5-11 (A) pari-mutuel wagering on the outcome of
5-12 greyhound or horse racing or the operation of electronic or
5-13 electromechanical gaming devices at a racetrack, as authorized by
5-14 the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes);
5-15 (B) bingo, as authorized by the Bingo Enabling
5-16 Act (Article 179d, Vernon's Texas Civil Statutes);
5-17 (C) charitable raffles, as authorized by the
5-18 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
5-19 added by Chapter 957, Acts of the 71st Legislature, Regular
5-20 Session, 1989);
5-21 (D) the state lottery, as authorized by the
5-22 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes);
5-23 (E) a lottery or gift enterprise; or
5-24 (F) wagering on the outcome of a sports event or
5-25 activity.
6-1 (6) "Gaming" or "gaming activity" means the dealing,
6-2 operation, carrying on, conducting, or maintaining a game or the
6-3 exposing for play of a game.
6-4 (7) "Gaming employee" means any individual connected
6-5 directly with the operation of a gaming activity on a riverboat
6-6 casino. The term does not include a bartender, cocktail waitress,
6-7 or other individual engaged exclusively in preparing or serving
6-8 food or beverages on a riverboat casino or an individual engaged
6-9 exclusively in the operation or maintenance of the vessel. The
6-10 consideration; and
6-11 (D) the activity is conducted and participated
6-12 in without regard to geographical location, with the player or
6-13 players not being required to be present on any particular premises
6-14 or at any particular location in order to participate or to win.
6-15 (14) "Passenger" means an individual aboard a
6-16 riverboat who is not:
6-17 (A) an employee of the riverboat casino
6-18 operator; or
6-19 (B) a government officer or employee acting in
6-20 an official capacity.
6-21 (15) "Person" includes a corporation, organization,
6-22 business trust, estate, trust, partnership, association, and any
6-23 other legal entity.
6-24 (16) "Political subdivision" means a municipality or
6-25 county.
7-1 (17) "Riverboat casino operator" means a person who
7-2 operates or conducts gaming activities aboard a riverboat.
7-3 Sec. 1.02. GAMING AUTHORIZED. (a) Gaming and participation
7-4 in gaming on a riverboat for which a riverboat casino operator
7-5 license is issued under this article are permitted in:
7-6 (1) an eligible political subdivision in which a
7-7 successful legalization election has been held under Chapter 6 of
7-8 this article; and
7-9 (2) state waters contiguous to a political subdivision
7-10 described in Subdivision (1) of this subsection.
7-11 (b) A riverboat casino operator may not conduct a lottery or
7-12 gift enterprise.
7-13 Sec. 1.03. EXEMPTION FROM FEDERAL LAW. A political
7-14 subdivision holding a legalization election and approving gaming
7-15 under this article is exempt from the provisions of 15 U.S.C.
7-16 Section 1172 relating to gambling devices transported into the
7-17 political subdivision for use on a riverboat in the political
7-18 subdivision.
7-19 Sec. 1.04. APPLICATION OF SUNSET ACT. The commission is
7-20 subject to Chapter 325, Government Code (Texas Sunset Act). Unless
7-21 continued in existence as provided by that chapter, the commission
7-22 is abolished and this article expires September 1, 2005.
7-23 CHAPTER 2. TEXAS RIVERBOAT GAMING COMMISSION
7-24 Sec. 2.01. COMMISSION. (a) The Texas Riverboat Gaming
7-25 Commission is composed of seven members. Six members are appointed
8-1 by the governor with the advice and consent of the senate. The
8-2 public safety director of the Public Safety Commission is an ex
8-3 officio member and has the right to vote.
8-4 (b) In making appointments to the commission, the governor
8-5 shall attempt to achieve representation of all the population
8-6 groups of the state with regard to economic status, sex, race, or
8-7 ethnicity.
8-8 Sec. 2.02. ELIGIBILITY. To be eligible for appointment to
8-9 the commission, an individual:
8-10 (1) must be a citizen of the United States;
8-11 (2) must have resided in this state for the two years
8-12 preceding the date of the person's appointment;
8-13 (3) must submit a financial statement that contains
8-14 the information required by Section 4(c), Chapter 421, Acts of the
8-15 63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's
8-16 Texas Civil Statutes);
8-17 (4) may not own any financial interest in riverboat
8-18 gaming or its operation or be related within the second degree by
8-19 affinity or the third degree by consanguinity, as determined under
8-20 Article 5996h, Revised Statutes, to an individual who owns any
8-21 financial interest in riverboat gaming or its operation;
8-22 (5) may not be a license holder; and
8-23 (6) may not be a member of the governing body of an
8-24 eligible political subdivision.
8-25 Sec. 2.03. PROHIBITED ACTIVITY. (a) An appointed member of
9-1 the commission may not:
9-2 (1) use the member's official authority to affect the
9-3 result of an election or nomination for public office; or
9-4 (2) directly or indirectly coerce, attempt to coerce,
9-5 command, or advise a person to pay, lend, or contribute anything of
9-6 value to another person for political purposes.
9-7 (b) A commission member or former commission member or the
9-8 spouse of a commission member or former commission member may not
9-9 solicit or accept employment from a license holder or an applicant
9-10 for a license under this article before the second anniversary of
9-11 the date on which the commission member's service on the commission
9-12 ends.
9-13 Sec. 2.04. TERMS. Appointed members of the commission hold
9-14 office for staggered terms of six years. Two members' terms expire
9-15 February 1 of each odd-numbered year.
9-16 Sec. 2.05. BOND. (a) Before entering the duties of office,
9-17 an appointed member of the commission must execute a bond that is:
9-18 (1) payable to the state;
9-19 (2) in the amount of $25,000; and
9-20 (3) conditioned that the member will faithfully
9-21 perform the duties of office.
9-22 (b) The bond must be approved by the governor.
9-23 Sec. 2.06. PRESIDING OFFICER. The governor shall designate
9-24 one member to serve as presiding officer for a term of two years.
9-25 Sec. 2.07. REMOVAL OF APPOINTED COMMISSION MEMBERS. (a) It
10-1 is a ground for removal from the commission if an appointed member:
10-2 (1) does not have at the time of appointment the
10-3 qualifications required for appointment to the commission;
10-4 (2) does not maintain during service on the commission
10-5 the qualifications required for appointment to the commission;
10-6 (3) violates a prohibition established by Section 2.03
10-7 of this article;
10-8 (4) cannot discharge the member's duties for a
10-9 substantial part of the term for which the member is appointed
10-10 because of illness or disability; or
10-11 (5) is absent from more than half of the regularly
10-12 scheduled commission meetings that the member is eligible to attend
10-13 during a calendar year unless the absence is excused by majority
10-14 vote of the commission.
10-15 (b) The validity of an action of the commission is not
10-16 affected by the fact that it is taken when a ground for removal of
10-17 a commission member exists.
10-18 (c) If the presiding officer has knowledge that a potential
10-19 ground for removal exists, the presiding officer shall notify the
10-20 governor.
10-21 Sec. 2.08. COMPENSATION. (a) An appointed member of the
10-22 commission is entitled to receive compensation of $1,500 per month
10-23 for serving on the commission.
10-24 (b) An appointed member is entitled to reimbursement for
10-25 actual and necessary expenses incurred in performing functions as a
11-1 member of the commission, subject to any applicable limitation on
11-2 reimbursement provided by the General Appropriations Act.
11-3 (c) The public safety director of the Public Safety
11-4 Commission is entitled to reimbursement for actual and necessary
11-5 expenses incurred in performing functions as a member of the Texas
11-6 Riverboat Gaming Commission. Reimbursement shall be from the
11-7 Public Safety Commission as provided by law for expenses incurred
11-8 in the performance of other official duties.
11-9 Sec. 2.09. OFFICES. The commission shall maintain its
11-10 general office in the city of Austin. The commission may establish
11-11 branch offices within this state.
11-12 Sec. 2.10. MEETINGS. (a) The commission shall meet at
11-13 least six times in each calendar year.
11-14 (b) The commission may meet at other times at the call of
11-15 the presiding officer or as provided by commission rule.
11-16 Sec. 2.11. EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
11-17 commission shall employ an executive director and other employees
11-18 as necessary to administer this article.
11-19 (b) The executive director shall keep the records of the
11-20 commission and shall perform duties as assigned by the commission
11-21 or specified by law.
11-22 (c) An executive director, former executive director,
11-23 employee of the commission, or former employee of the commission
11-24 may not solicit or accept employment from a license holder or an
11-25 applicant for a license under this article before the first
12-1 anniversary of the date on which the individual's employment with
12-2 the commission ends.
12-3 Sec. 2.12. AUDIT. The transactions of the commission are
12-4 subject to audit by the state auditor in accordance with Chapter
12-5 321, Government Code.
12-6 Sec. 2.13. LEGAL REPRESENTATION. (a) The attorney general
12-7 shall designate at least one assistant attorney general to advise
12-8 the commission and represent the commission in legal proceedings.
12-9 (b) The attorney general shall make available to the
12-10 appropriate prosecuting attorney information obtained regarding a
12-11 possible violation of this article.
12-12 (c) The attorney general may apply for injunctive or
12-13 declaratory relief to enforce this article or a rule adopted by the
12-14 commission. Action by the attorney general under this subsection
12-15 does not limit the authority of the attorney general or a
12-16 prosecuting attorney to bring a criminal proceeding.
12-17 Sec. 2.14. CONFIDENTIAL INFORMATION. (a) The contents of
12-18 investigatory files of the commission are confidential except in a
12-19 criminal proceeding.
12-20 (b) The following information is confidential and exempt
12-21 from disclosure under the open records law, Chapter 424, Acts of
12-22 the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
12-23 Vernon's Texas Civil Statutes):
12-24 (1) information required by the commission to be
12-25 furnished or otherwise obtained by the commission that relates to
13-1 the finances, earnings, or revenue of an applicant or license
13-2 holder;
13-3 (2) information relating to the criminal record of an
13-4 applicant or license holder; and
13-5 (3) information provided to the commission or an
13-6 employee of the commission on the condition that the information
13-7 remain confidential.
13-8 (c) Information obtained from a gaming equipment
13-9 manufacturer, gaming equipment distributor, or riverboat casino
13-10 operator that relates to the manufacture of a gaming device is
13-11 confidential and may be released only:
13-12 (1) in the necessary administration of this article;
13-13 (2) on order of a court of competent jurisdiction; or
13-14 (3) to a governmental agency as provided by commission
13-15 rule.
13-16 CHAPTER 3. POWERS AND DUTIES OF COMMISSION
13-17 Sec. 3.01. CONTROL AND SUPERVISION. The commission shall
13-18 administer this article. The commission has broad authority and
13-19 shall exercise strict control and close supervision over all gaming
13-20 activity to ensure that games are conducted fairly and in
13-21 compliance with the law.
13-22 Sec. 3.02. POWER OF ENTRY. (a) An authorized agent of the
13-23 commission or a person designated by an authorized agent of the
13-24 commission, after providing proper identification, may:
13-25 (1) enter the office, vessel, or other place of
14-1 business of a license holder to enforce and administer this
14-2 article;
14-3 (2) inspect, examine, and photocopy or remove and
14-4 impound all papers, books, and records of a license holder that
14-5 relate to activities regulated by this article;
14-6 (3) require verification of income from activities
14-7 regulated by this article; and
14-8 (4) seize and remove from the premises and impound any
14-9 gaming equipment or supplies for inspection and examination.
14-10 (b) Any item impounded under Subsection (a) of this section
14-11 must be returned to the license holder in substantially the same
14-12 condition as when impounded. An impounded item shall be promptly
14-13 returned following the commission's inspection or examination.
14-14 Sec. 3.03. RULES. The commission shall adopt rules relating
14-15 to:
14-16 (1) the transaction of commission business;
14-17 (2) the conduct and operation of gaming;
14-18 (3) the investigation of alleged violations of this
14-19 article or a rule adopted under this article;
14-20 (4) the investigation of complaints from citizens
14-21 regarding riverboat gaming;
14-22 (5) the issuance, revocation, and suspension of
14-23 licenses under this article;
14-24 (6) the records a license holder is required to
14-25 maintain under Section 4.13 of this article;
15-1 (7) the inspection and examination without notice of
15-2 premises where gaming is conducted or where gaming equipment is
15-3 located, sold, distributed, or stored;
15-4 (8) the seizure and removal without notice or hearing
15-5 of any gaming equipment for examination and inspection;
15-6 (9) the reporting by a riverboat casino operator
15-7 license holder of the number and types of gaming activities
15-8 conducted or to be conducted on a riverboat;
15-9 (10) the maintenance of gaming equipment;
15-10 (11) the granting of a license with special conditions
15-11 or for a limited period;
15-12 (12) the establishment of other categories of licenses
15-13 not established under this article;
15-14 (13) the ejection or exclusion from a riverboat of an
15-15 individual:
15-16 (A) who has violated this article, a rule
15-17 adopted under this article, or a final order of the commission; or
15-18 (B) whose conduct or reputation is such that the
15-19 individual's presence on the riverboat, in the commission's
15-20 opinion, calls into question the honesty and integrity of the
15-21 gaming activities or interferes with the orderly conduct of gaming
15-22 activities;
15-23 (14) the manner in which an individual who has been
15-24 ejected or excluded from a riverboat may request and obtain a
15-25 hearing before the commission;
16-1 (15) the geographic boundaries and routes of operation
16-2 for riverboat gaming activities; and
16-3 (16) any other matter necessary for the administration
16-4 and enforcement of this article.
16-5 Sec. 3.04. APPROVAL OF RULES FOR CERTAIN GAMES. The
16-6 commission shall adopt specific rules for blackjack and poker. A
16-7 riverboat casino operator shall post the applicable rules within
16-8 plain view of any table at which blackjack or poker is played.
16-9 CHAPTER 4. LICENSES
16-10 Sec. 4.01. LICENSE REQUIRED. (a) A person may not act as a
16-11 gaming equipment manufacturer, gaming equipment distributor, or
16-12 riverboat casino operator unless the person holds an appropriate
16-13 license issued under this article.
16-14 (b) A person may not be employed as a gaming employee unless
16-15 the person holds an appropriate license issued under this article.
16-16 (c) A person may not conduct other gaming activities for
16-17 which the commission by rule requires a license unless the person
16-18 holds an appropriate license issued under this article.
16-19 (d) A riverboat casino operator must hold a separate license
16-20 for each location from which the riverboat casino operator operates
16-21 a riverboat.
16-22 Sec. 4.02. ISSUANCE; TERM; RENEWAL. (a) The commission
16-23 shall issue a license to a qualified person on application, payment
16-24 of the applicable fee, and execution of the applicable bond.
16-25 (b) Before issuing a riverboat casino operator license, the
17-1 commission, in accordance with its rules, shall consider the
17-2 applicant's location and economic commitment, the level of local
17-3 support for the proposed riverboat casino, and other factors
17-4 considered necessary to protect the public.
17-5 (c) The commission may not issue a riverboat casino operator
17-6 license unless the governing body of the political subdivision in
17-7 which the riverboat is to be operated certifies in writing to the
17-8 secretary of state that a successful legalization election was held
17-9 under Chapter 6 of this article.
17-10 (d) An original or renewal license expires on the first
17-11 anniversary of the date it is issued.
17-12 (e) A license holder may renew an unexpired license annually
17-13 by paying to the commission a fee not to exceed the lesser of:
17-14 (1) $50,000; or
17-15 (2) an amount equal to the amount of an original
17-16 license fee for the license for the period of the renewal.
17-17 Sec. 4.03. APPLICATION; FORM; CERTIFICATE. (a) An
17-18 applicant must pay the required application or renewal fee and
17-19 submit an application on a form prescribed by the commission.
17-20 (b) The application of an individual must include:
17-21 (1) the applicant's full name;
17-22 (2) the applicant's date of birth;
17-23 (3) a physical description of the applicant;
17-24 (4) the applicant's address and telephone number; and
17-25 (5) a statement by the applicant disclosing the
18-1 applicant's arrest or conviction for any felony or misdemeanor
18-2 offense other than a misdemeanor offense under the Uniform Act
18-3 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
18-4 Statutes) or a similar misdemeanor traffic offense.
18-5 (c) The application of a corporation must include:
18-6 (1) the name and address of the corporation's agent
18-7 for service of process in this state;
18-8 (2) the name, address, and telephone number of each
18-9 director and of each stockholder who owns or controls more than
18-10 five percent of the corporation's stock;
18-11 (3) the date of birth and a physical description of
18-12 each director and of each individual stockholder who owns or
18-13 controls more than five percent of the corporation's stock; and
18-14 (4) a statement by each director and by each
18-15 individual stockholder who owns or controls more than five percent
18-16 of the corporation's stock disclosing any arrest or conviction of
18-17 that director or stockholder for any felony or misdemeanor offense
18-18 other than a misdemeanor offense under the Uniform Act Regulating
18-19 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes)
18-20 or a similar misdemeanor traffic offense.
18-21 (d) The application of an unincorporated business
18-22 association or any legal entity other than an individual or
18-23 corporation must include:
18-24 (1) the name, address, telephone number, and
18-25 percentage of ownership of each of its owners or members;
19-1 (2) the date of birth and a physical description of
19-2 each individual owner or member; and
19-3 (3) a statement by each individual owner or member who
19-4 owns an interest in the entity that is greater than five percent
19-5 disclosing any arrest or conviction of that owner or member for any
19-6 felony or misdemeanor offense other than a misdemeanor offense
19-7 under the Uniform Act Regulating Traffic on Highways (Article
19-8 6701d, Vernon's Texas Civil Statutes) or a similar misdemeanor
19-9 traffic offense.
19-10 (e) An application for a license under this chapter must
19-11 contain information necessary to determine the applicant's
19-12 eligibility for a license under this chapter.
19-13 (f) An application for a riverboat casino operator license
19-14 must be accompanied by:
19-15 (1) a detailed statement of the assets and liabilities
19-16 of the applicant;
19-17 (2) evidence necessary to determine the compliance of
19-18 the riverboat on which gaming is to be conducted with the
19-19 requirements of Section 4.09 of this article;
19-20 (3) a plan for the riverboat showing the proposed
19-21 location of the casino space and all gaming equipment;
19-22 (4) a detailed floor plan of a land-based development,
19-23 redevelopment, or renovation of a permanent structure of not less
19-24 than 20,000 square feet for entertainment, ticketing, retail
19-25 outlets, amusements, and other related activities;
20-1 (5) a timetable showing that construction of the
20-2 facilities described in Subdivision (4) of this subsection will
20-3 begin not later than the first anniversary of the date the
20-4 commission issues a license to the applicant;
20-5 (6) a legal description of the land on which the
20-6 facilities described in Subdivision (4) of this subsection and the
20-7 dock from which the riverboat will operate will be located;
20-8 (7) evidence of ownership of or of the right to
20-9 control the land described in Subdivision (6) of this subsection;
20-10 (8) a traffic control and management plan detailing
20-11 improvements for the ingress, egress, and parking of motor
20-12 vehicles, sufficient for the proposed size and type of the
20-13 applicant's riverboat casino operations;
20-14 (9) an affirmative action plan, outlining minority
20-15 recruitment efforts for gaming employees; and
20-16 (10) a plan providing for the recruitment, training,
20-17 and hiring of unemployed residents of this state.
20-18 (g) The commission shall provide each applicant granted a
20-19 license with a license certificate or credentials.
20-20 Sec. 4.04. FINGERPRINTS. (a) An applicant for a license
20-21 under this article must submit to the commission a complete set of
20-22 fingerprints of the individual applying for the license or, if the
20-23 applicant is not an individual, of any individual required to be
20-24 named in the application.
20-25 (b) The commission, not later than the next day after
21-1 receiving the fingerprints, shall forward the prints by mail to the
21-2 Department of Public Safety. The department shall classify the
21-3 fingerprints and check them against its fingerprint files and shall
21-4 report to the commission its findings concerning the criminal
21-5 record of the applicant or the lack of such a record. A license
21-6 may not be issued until the report is made to the commission.
21-7 (c) A peace officer of this or any other state, or any
21-8 district office of the commission, shall take the fingerprints of
21-9 an applicant for a license on forms approved and furnished by the
21-10 Department of Public Safety and shall immediately deliver them to
21-11 the commission.
21-12 Sec. 4.05. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
21-13 commission may obtain any criminal history record information that
21-14 relates to an applicant for employment by the commission or to an
21-15 applicant for a license issued by the commission and that is
21-16 maintained by the Department of Public Safety, the Federal Bureau
21-17 of Investigation Identification division, or any other law
21-18 enforcement agency. The commission may refuse to employ or to
21-19 grant a license to an applicant who fails to provide a complete set
21-20 of fingerprints.
21-21 (b) Criminal history record information received by the
21-22 commission under this section is for the exclusive use of the
21-23 commission, is privileged and confidential, and may not be released
21-24 or otherwise disclosed to any person or agency except:
21-25 (1) in a criminal proceeding;
22-1 (2) in a hearing conducted by the commission;
22-2 (3) on court order; or
22-3 (4) with the consent of the applicant.
22-4 Sec. 4.06. RESIDENCY REQUIREMENT. To be eligible for a
22-5 license under this article:
22-6 (1) an individual must show that the individual is a
22-7 resident of this state; or
22-8 (2) a person other than an individual must show that
22-9 not less than one-third of the ownership interest in the person is
22-10 held by residents of this state.
22-11 Sec. 4.07. GROUNDS FOR DENIAL, REVOCATION, OR SUSPENSION OF
22-12 LICENSE. (a) The commission, after notice and hearing, may refuse
22-13 to issue an original or renewal license under this article or may
22-14 revoke or suspend a license if the commission finds that the
22-15 applicant or license holder is an individual who has been
22-16 convicted of a felony, criminal fraud, gambling or a
22-17 gambling-related offense, or a misdemeanor involving moral
22-18 turpitude, if less than 10 years has elapsed since the termination
22-19 of the sentence, parole, mandatory supervision, or probation served
22-20 for the offense.
22-21 (b) The commission, after notice and hearing, may:
22-22 (1) refuse to issue an original or renewal license
22-23 under this article if it finds the person is not eligible for the
22-24 license;
22-25 (2) refuse to issue an original or renewal riverboat
23-1 casino operator license under this article if the commission finds
23-2 that the proposed riverboat casino operation does not comply with
23-3 this article;
23-4 (3) refuse to issue a gaming employee license to a
23-5 person discharged for cause by any gaming business in any
23-6 jurisdiction; or
23-7 (4) revoke a license under this article if it finds
23-8 that the person was not eligible for the license at the time it was
23-9 issued or is no longer eligible for the license.
23-10 Sec. 4.08. MULTIPLE LICENSES PROHIBITED. A person licensed
23-11 under this article as a gaming equipment manufacturer, gaming
23-12 equipment distributor, or riverboat casino operator may not hold
23-13 another type of license issued under this article.
23-14 Sec. 4.09. RIVERBOAT REQUIREMENTS AND RESTRICTIONS. (a) A
23-15 person may not obtain a riverboat casino operator license unless
23-16 the riverboat on which gaming is to be conducted:
23-17 (1) carries a certificate of inspection issued by the
23-18 United States Coast Guard under Title 46, United States Code, and
23-19 46 CFR, Chapter I, Subchapter H, for the carriage of at least 600
23-20 passengers on navigable waterways in this state;
23-21 (2) is at least 150 feet long;
23-22 (3) is:
23-23 (A) of a design that replicates as nearly as
23-24 practical passenger steamboats of the 19th century; or
23-25 (B) otherwise of a design suitable for riverboat
24-1 gaming activities on specific waterways; and
24-2 (4) is powered by a fuel acceptable to the United
24-3 States Coast Guard under Title 46, United States Code, and 46 CFR,
24-4 Chapter I, Subchapter H.
24-5 (b) Casino space aboard a riverboat may not exceed 60
24-6 percent of the total space of the riverboat. The main entrance or
24-7 sole public access to a riverboat may not be through the casino
24-8 space.
24-9 (c) A riverboat operated under this article must have a crew
24-10 complement that meets all marine personnel requirements of the
24-11 United States Coast Guard. At least 50 percent of the employees
24-12 on a riverboat who are not gaming employees must be:
24-13 (1) certified in cardiopulmonary resuscitation by the
24-14 American Red Cross; and
24-15 (2) certified in lifeboat safety and marine fire
24-16 fighting by the United States Coast Guard.
24-17 Sec. 4.10. AREA OF OPERATION; MAXIMUM NUMBER OF RIVERBOAT
24-18 CASINO OPERATOR LICENSES. (a) The commission may issue up to 15
24-19 riverboat casino operator licenses. A license may be issued to an
24-20 applicant in any county or municipality with one or more navigable
24-21 waterways, in whole or in part, within its boundaries, including
24-22 channels and fairways, that are:
24-23 (1) regulated as to marine safety by the United States
24-24 Coast Guard; or
24-25 (2) determined by the commission to be safe for
25-1 riverboat operations.
25-2 (b) For purposes of this article, a riverboat is considered
25-3 to operate in the county in which passengers board the riverboat.
25-4 (c) The commission may not issue more than:
25-5 (1) five licenses for riverboat casinos operating in
25-6 Harris County;
25-7 (2) two licenses for riverboat casinos operating in
25-8 Cameron County;
25-9 (3) two licenses for riverboat casinos operating in
25-10 Galveston County;
25-11 (4) two licenses for riverboat casinos operating in
25-12 Jefferson County;
25-13 (5) one license for a riverboat casino operating in
25-14 Brazoria County;
25-15 (6) one license for a riverboat casino operating in
25-16 Nueces County;
25-17 (7) one license for a riverboat casino operating in
25-18 Montgomery County; and
25-19 (8) in addition to the licenses allocated by
25-20 Subdivisions (1) and (3) of this subsection, one license for a
25-21 riverboat casino operating in Harris or Galveston County as
25-22 determined by the commission.
25-23 (d) A person who holds a riverboat casino operator license
25-24 may operate two vessels if each vessel operates from the dock site
25-25 for which the person holds the license. A person may hold more
26-1 than one riverboat casino operator license.
26-2 (e) In a county in which the commission may award more than
26-3 one riverboat casino operator license, the commission shall give
26-4 preference to at least one applicant whose dock site is leased from
26-5 a port authority, if the port authority:
26-6 (1) existed on January 1, 1992; and
26-7 (2) consents to the license.
26-8 (f) In this section:
26-9 (1) "Dock site" means the land development and
26-10 associated dock facilities where an applicant or license holder
26-11 will normally berth a riverboat.
26-12 (2) "Port authority" means a port authority created or
26-13 operating under Article III, Section 52, or Article XVI, Section
26-14 59, of the Texas Constitution.
26-15 Sec. 4.11. GAMING OPERATIONS WHILE RIVERBOAT IS BERTHED.
26-16 (a) Except as provided by Subsections (b) and (c) of this section,
26-17 a riverboat casino operator may not conduct gaming activities or
26-18 permit passengers to enter the casino space unless the riverboat is
26-19 navigating or anchored.
26-20 (b) A riverboat casino operator may conduct gaming
26-21 activities for a period not to exceed one hour while the riverboat
26-22 is berthed for passenger loading or unloading.
26-23 (c) A riverboat casino operator may conduct gaming
26-24 activities while the riverboat is berthed during inclement weather
26-25 during which, in the determination of the captain of the riverboat,
27-1 the normal operation of the riverboat would pose a health or safety
27-2 risk to passengers. The riverboat casino operator shall report
27-3 each occurrence of gaming activities under this subsection to the
27-4 commission not later than 24 hours after the gaming takes place.
27-5 Sec. 4.12. BOND. (a) Before a riverboat casino operator
27-6 license, a gaming equipment manufacturer license, or a gaming
27-7 equipment distributor license may be issued, the applicant must
27-8 execute a bond that is:
27-9 (1) payable to the state;
27-10 (2) in the amount of $250,000; and
27-11 (3) conditioned that the applicant will comply with
27-12 this article and the rules adopted under this article.
27-13 (b) The bond and the surety must be approved by the
27-14 commission.
27-15 (c) The commission by rule may require a bond before issuing
27-16 a license in a license category established by the commission.
27-17 Subsections (a) and (b) of this section apply to a bond under this
27-18 subsection.
27-19 Sec. 4.13. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
27-20 STATEMENTS. The commission shall require license holders to:
27-21 (1) keep books and records relating to activities
27-22 regulated by this article; and
27-23 (2) submit audited financial statements to the
27-24 commission.
27-25 CHAPTER 5. FEES AND TAXES
28-1 Sec. 5.01. APPLICATION FEE. An applicant for a license
28-2 under this article must submit with the application a nonrefundable
28-3 fee in the amount determined by the commission. The amount must be
28-4 sufficient to cover the cost of administering the application
28-5 process.
28-6 Sec. 5.02. RIVERBOAT CASINO OPERATOR LICENSE FEE. (a)
28-7 Subject to Section 4.02(e) of this article, the annual fee for a
28-8 riverboat casino operator license is determined by the number of
28-9 games offered for play on each day by the riverboat casino operator
28-10 during the year for which the fee is charged, as provided by the
28-11 following table:
28-12 Number of games: Fee:
28-13 1-13 $600 per game per year
28-14 14-16 $1,000 per game per year
28-15 17 or more $16,000 plus $200 per game
28-16 per year for each game in
28-17 excess of 16
28-18 (b) For purposes of Subsection (a) of this section, the
28-19 number of games offered for play on a day is equal to the maximum
28-20 number of all games that may be conducted in the casino space of a
28-21 riverboat on that day, as reported by the riverboat casino operator
28-22 in an application for a license or a report to the commission. The
28-23 commission may audit a riverboat casino operator to determine
28-24 compliance with this subsection.
28-25 Sec. 5.03. OTHER LICENSE FEES. (a) The annual fee for a
29-1 license under this article other than a riverboat casino operator
29-2 license is:
29-3 (1) $1,000, for a gaming equipment manufacturer
29-4 license;
29-5 (2) $1,000, for a gaming equipment distributor
29-6 license;
29-7 (3) $25, for a gaming employee license; or
29-8 (4) the amount set by commission rule for a license
29-9 category established by the commission.
29-10 (b) The amount of a license fee under Subsection (a)(4) of
29-11 this section must be reasonably related to the cost of
29-12 administering this article in relation to the license category.
29-13 Sec. 5.04. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICE
29-14 STAMP FEE. (a) In addition to other fees under this article,
29-15 there is imposed an activity stamp fee on each electronic or
29-16 electromechanical gaming device located in a riverboat casino.
29-17 (b) The annual fee for an electronic or electromechanical
29-18 gaming device stamp is $250.
29-19 (c) An electronic or electromechanical gaming device stamp
29-20 fee must be paid according to commission rule. The electronic or
29-21 electromechanical gaming device stamp must be affixed to the gaming
29-22 device according to commission rule.
29-23 (d) In this section, "electronic or electromechanical gaming
29-24 device" means gaming equipment that, on insertion of a coin,
29-25 currency, credit card, token, or similar object or on the payment
30-1 of any valuable consideration, is available to operate, the
30-2 operation of which, whether by reason of skill of the operator or
30-3 application of the element of chance, may deliver or entitle the
30-4 person operating the equipment to receive cash, premiums,
30-5 merchandise, tokens, or anything of value, whether the payoff is
30-6 made automatically from the equipment or in any other manner.
30-7 Sec. 5.05. GAMING TAX. (a) There is imposed a tax on the
30-8 annual adjusted gross revenue of gaming conducted under this
30-9 article.
30-10 (b) The rate of the tax imposed by this section is eight
30-11 percent of the adjusted gross revenue.
30-12 (c) The tax imposed by this section is payable by the
30-13 riverboat casino operator to the commission.
30-14 Sec. 5.06. ADJUSTED GROSS REVENUE. (a) For purposes of
30-15 this article, adjusted gross revenue of gaming is:
30-16 (1) the sum of:
30-17 (A) cash received as winnings by a riverboat
30-18 casino operator;
30-19 (B) cash received in payment for credit extended
30-20 by a riverboat casino operator to a passenger for purposes of
30-21 gaming; and
30-22 (C) compensation received for conducting a game
30-23 in which the riverboat casino operator is not party to a bet;
30-24 (2) less the sum of:
30-25 (A) cash paid out as losses to passengers; and
31-1 (B) amounts paid to purchase annuities to fund
31-2 losses paid to passengers over several years by independent
31-3 financial institutions.
31-4 (b) For purposes of this section:
31-5 (1) cash or compensation received by a riverboat
31-6 casino operator does not include:
31-7 (A) counterfeit money or tokens;
31-8 (B) coins of other countries received in gaming
31-9 equipment;
31-10 (C) cash received from a fraudulent act
31-11 perpetrated against a riverboat casino operator for which the
31-12 riverboat casino operator is not reimbursed; or
31-13 (D) cash received as an entry fee for a contest
31-14 or tournament in which passengers compete for prizes; and
31-15 (2) cash or the value of a noncash prize awarded to a
31-16 passenger in a contest or tournament is not a loss.
31-17 Sec. 5.07. ALLOCATION TO COMPULSIVE GAMBLING PROGRAM.
31-18 One-tenth of one percent of the tax imposed by Section 5.05 of this
31-19 article is allocated to the Texas Commission on Alcohol and Drug
31-20 Abuse for the commission's compulsive gambling program under
31-21 Section 461.018, Health and Safety Code.
31-22 Sec. 5.08. ADMISSION FEE. (a) A riverboat casino operator
31-23 shall charge each passenger an admission fee for each excursion of
31-24 at least $4 if the riverboat operates in a municipality.
31-25 (b) A fee charged under Subsection (a) of this section is
32-1 allocated as follows:
32-2 (1) $1 is allocated to the municipality in which the
32-3 riverboat operates;
32-4 (2) 50 cents is allocated to the county in which the
32-5 riverboat operates;
32-6 (3) $1 is allocated to the Texas Department of
32-7 Commerce to promote tourism and economic development in this state;
32-8 (4) 50 cents is allocated to the state parks fund
32-9 established under Section 11.035, Parks and Wildlife Code, to be
32-10 used by the Parks and Wildlife Department for the purposes
32-11 prescribed by law;
32-12 (5) 50 cents is allocated to the local parks,
32-13 recreation, and open space fund established under Section 24.002,
32-14 Parks and Wildlife Code, to be used by the Parks and Wildlife
32-15 Department for the purposes prescribed by law;
32-16 (6) 50 cents is allocated to the Department of Public
32-17 Safety, to be used in enforcing this article; and
32-18 (7) the remainder, if any, is allocated to the
32-19 riverboat casino operator.
32-20 (c) A riverboat casino operator shall charge each passenger
32-21 an admission fee for each excursion of at least $3.50 if the
32-22 riverboat does not operate in a municipality.
32-23 (d) A fee charged under Subsection (c) of this section is
32-24 allocated as follows:
32-25 (1) $1 is allocated to the county in which the
33-1 riverboat operates;
33-2 (2) $1 is allocated to the Texas Department of
33-3 Commerce to promote tourism and economic development in this state;
33-4 (3) 50 cents is allocated to the state parks fund
33-5 established under Section 11.035, Parks and Wildlife Code, to be
33-6 used by the Parks and Wildlife Department for the purposes
33-7 prescribed by law;
33-8 (4) 50 cents is allocated to the local parks,
33-9 recreation, and open space fund established under Section 24.002,
33-10 Parks and Wildlife Code, to be used by the Parks and Wildlife
33-11 Department for the purposes prescribed by law;
33-12 (5) 50 cents is allocated to the Department of Public
33-13 Safety to be used in enforcing this article; and
33-14 (6) the remainder, if any, is allocated to the
33-15 riverboat casino operator.
33-16 Sec. 5.09. TAX ADMINISTRATION, COLLECTION, AND ENFORCEMENT.
33-17 (a) The commission shall perform all functions incident to the
33-18 administration, collection, enforcement, and operation of any fee
33-19 or tax imposed under this article. The commission may adopt
33-20 reasonable rules and prescribe forms that are consistent with this
33-21 article for the administration, collection, and enforcement of the
33-22 fees and taxes imposed under this article and for the reporting of
33-23 the fees and taxes imposed under this article.
33-24 (b) Subtitle B, Title 2, Tax Code, applies to the
33-25 administration, collection, and enforcement of the taxes authorized
34-1 or imposed under this article except as modified by this article.
34-2 For purposes of the application of that subtitle to the taxes
34-3 authorized or imposed under this article only, the powers and
34-4 duties assigned to the comptroller under that subtitle are assigned
34-5 to the commission.
34-6 Sec. 5.10. DEPOSIT OF TAX. One-fourth of the tax collected
34-7 under this article shall be deposited to the credit of the
34-8 foundation school fund. Three-fourths of the tax collected under
34-9 this article shall be deposited to the credit of the general
34-10 revenue fund.
34-11 Sec. 5.11. LIMITATION ON ADDITIONAL FEES OR TAXES. A state
34-12 agency or political subdivision may not impose a fee or tax on
34-13 riverboat casino gaming activity that is not authorized by:
34-14 (1) Section 5.05 or 5.08 of this article; or
34-15 (2) the Tax Code.
34-16 CHAPTER 6. LOCAL OPTION ELECTION
34-17 Sec. 6.01. ORDERING ELECTION. The governing body of an
34-18 eligible political subdivision at any time may order and hold an
34-19 election to legalize riverboat casino gaming under this article in
34-20 the political subdivision. The governing body of an eligible
34-21 political subdivision shall order and hold an election to legalize
34-22 riverboat casino gaming under this article in the political
34-23 subdivision if the governing body is presented with a petition that
34-24 meets the requirements of Section 6.02 of this article and is
34-25 certified as valid under Section 6.03 of this article.
35-1 Sec. 6.02. PETITION. (a) A petition for a legalization
35-2 election must have a statement substantially as follows preceding
35-3 the space reserved for signatures on each page: "This petition is
35-4 to require that an election be held in (name of political
35-5 subdivision) to legalize casino gaming on riverboats operating in
35-6 (name of political subdivision) under Article 179h, Revised
35-7 Statutes."
35-8 (b) A petition is valid only if it is signed by registered
35-9 voters of the political subdivision in a number equal to or greater
35-10 than the lesser of:
35-11 (1) three percent of the number of votes cast for
35-12 governor by qualified voters of the political subdivision in the
35-13 most recent gubernatorial general election; or
35-14 (2) the number specified in the municipality's
35-15 charter, in an election to be held in a municipality.
35-16 (c) Each voter must enter beside the voter's signature the
35-17 date the voter signs the petition. A signature may not be counted
35-18 if the date of signing is earlier than the 90th day before the date
35-19 the petition is submitted to the governing body.
35-20 (d) Each voter must provide the voter's current voter
35-21 registration number, printed name, and residence address including
35-22 zip code.
35-23 Sec. 6.03. VERIFICATION OF PETITION. (a) Not later than
35-24 the fifth day after the date a petition for an election under this
35-25 article is received in the office of the governing body, the
36-1 governing body shall submit the petition for verification to the
36-2 municipal secretary or county clerk, as applicable.
36-3 (b) The officer to whom the petition is submitted for
36-4 verification shall determine whether the petition is signed by the
36-5 required number of registered voters of the political subdivision.
36-6 Not later than the 30th day after the date the petition is
36-7 submitted to the officer for verification, the officer shall
36-8 certify in writing to the governing body of the political
36-9 subdivision whether the petition is valid or invalid. If the
36-10 officer determines that the petition is invalid, the officer shall
36-11 state all reasons for that determination.
36-12 Sec. 6.04. DATE OF ELECTION. If the municipal secretary or
36-13 county clerk, as applicable, certifies that a petition is valid,
36-14 not later than the 30th day after the date of certification, the
36-15 governing body shall order that an election be held in the
36-16 municipality or county on the next uniform election date under
36-17 Section 41.001, Election Code, that occurs after the 45th day after
36-18 the date on which the governing body orders the election. The
36-19 governing body shall state in the order the issue to be voted on.
36-20 The municipal secretary or county clerk shall notify the commission
36-21 by certified mail, return receipt requested, that an election has
36-22 been ordered.
36-23 Sec. 6.05. BALLOT PROPOSITION. The ballot in a legalization
36-24 election shall be printed to provide for voting for or against the
36-25 proposition: "Legalizing casino gaming on riverboats within (name
37-1 of political subdivision) under Article 179h, Revised Statutes."
37-2 Sec. 6.06. RESULTS OF ELECTION. (a) If the majority of the
37-3 votes cast in a legalization election are for the legalization of
37-4 gaming on riverboats, gaming as authorized under this article is
37-5 permitted within the political subdivision holding the election
37-6 effective the 10th day after the date the election is canvassed.
37-7 (b) The governing body of a political subdivision in which a
37-8 legalization election has been held shall give written notice of
37-9 the results of the election to the commission not later than the
37-10 third day after the date the election is canvassed.
37-11 CHAPTER 7. OFFENSES; PENALTIES
37-12 Sec. 7.01. GAMING BY INDIVIDUAL UNDER 21 YEARS OF AGE. (a)
37-13 A person commits an offense if the person knowingly permits an
37-14 individual that the person knows is younger than 21 years of age to
37-15 participate in gaming. An offense under this subsection is a Class
37-16 A misdemeanor.
37-17 (b) An individual commits an offense if the individual
37-18 participates in gaming and the individual is younger than 21 years
37-19 of age at the time of participation. An offense under this
37-20 subsection is a Class C misdemeanor.
37-21 Sec. 7.02. FRAUD. (a) A person commits an offense if the
37-22 person knowingly:
37-23 (1) uses bogus or counterfeit chips, tokens, devices,
37-24 or coins during a game;
37-25 (2) uses or is in possession of any cheating device
38-1 designed to facilitate cheating in a game operated by a riverboat
38-2 casino license holder; or
38-3 (3) uses any fraudulent scheme or technique in a game
38-4 operated by a riverboat casino license holder.
38-5 (b) An offense under this section is a felony of the third
38-6 degree.
38-7 Sec. 7.03. REPORTING AND RECORD VIOLATIONS; PENALTY. (a) A
38-8 person commits an offense if the person, in a license application,
38-9 in a book or record required to be maintained by this article or a
38-10 rule adopted under this article, or in a report required to be
38-11 submitted by this article or a rule adopted under this article:
38-12 (1) knowingly makes a statement or entry that the
38-13 person knows to be false or misleading; or
38-14 (2) fails to maintain or make an entry the person
38-15 knows is required to be maintained or made.
38-16 (b) A person commits an offense if the person knowingly
38-17 refuses to produce for inspection by the executive director a book,
38-18 record, or document required to be maintained or made by this
38-19 article or a rule adopted under this article.
38-20 (c) An offense under this section is a Class A misdemeanor.
38-21 SECTION 4. The Texas Racing Act (Article 179e, Vernon's
38-22 Texas Civil Statutes) is amended by adding Article 19 to read as
38-23 follows:
38-24 ARTICLE 19. ELECTRONIC OR ELECTROMECHANICAL
38-25 GAMING DEVICES
39-1 Sec. 19.01. DEFINITION. In this article, "electronic or
39-2 electromechanical gaming device" has the meaning assigned by
39-3 Section 5.04, Article 179h, Revised Statutes.
39-4 Sec. 19.02. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICES
39-5 PERMITTED AT CERTAIN RACETRACKS. An association that holds a class
39-6 1 horse racetrack license or a greyhound racetrack license may
39-7 install electronic or electromechanical gaming devices on the
39-8 premises of the racetrack in accordance with commission rules.
39-9 Sec. 19.03. RULES. The commission shall adopt rules
39-10 relating to electronic or electromechanical gaming devices. The
39-11 rules relating to the area in which the gaming devices may be
39-12 operated and the spacing of gaming devices must be consistent with
39-13 and may not be more stringent than rules adopted by the Texas
39-14 Riverboat Gaming Commission regarding electronic or
39-15 electromechanical gaming devices in riverboat casinos.
39-16 Sec. 19.04. FEES. (a) In addition to other fees under this
39-17 Act, there is imposed an activity stamp fee on each electronic or
39-18 electromechanical gaming device installed at a racetrack.
39-19 (b) The annual fee for an electronic or electromechanical
39-20 gaming device stamp is $250.
39-21 (c) An electronic or electromechanical gaming device stamp
39-22 fee must be paid according to commission rule. The electronic or
39-23 electromechanical gaming device stamp must be affixed to the gaming
39-24 device according to commission rule.
39-25 Sec. 19.05. TAX. (a) There is imposed a tax on the annual
40-1 adjusted gross revenue from electronic or electromechanical gaming
40-2 devices installed and operated at a racetrack under this article.
40-3 (b) The rate of the tax imposed by this section is eight
40-4 percent of the adjusted gross revenue.
40-5 (c) The tax is payable by the association to the
40-6 comptroller. For purposes of collecting the tax, the comptroller
40-7 has all powers granted by Article 4 and Section 6.10 of this Act
40-8 for collecting the state's share of a pari-mutuel pool.
40-9 (d) For purposes of the tax, adjusted gross revenue from
40-10 electronic or electromechanical gaming devices is the cash received
40-11 as winnings by an association, less the cash paid out as losses to
40-12 players. For purposes of this subsection, cash received by an
40-13 association does not include counterfeit money or tokens or coins
40-14 of other countries.
40-15 Sec. 19.06. DEPOSIT OF TAX. One-fourth of the tax collected
40-16 under this article shall be deposited to the credit of the
40-17 foundation school fund. Three-fourths of the tax collected under
40-18 this article shall be deposited to the credit of the general
40-19 revenue fund.
40-20 Sec. 19.07. MAXIMUM NUMBER OF GAMING DEVICES PER TRACK. An
40-21 association may not install more than 500 electronic or
40-22 electromechanical gaming devices.
40-23 Sec. 19.08. MANUFACTURE OR DISTRIBUTION WITHOUT LICENSE
40-24 PROHIBITED. (a) A person may not manufacture electronic or
40-25 electromechanical gaming devices unless the person holds a gaming
41-1 equipment manufacturer license under Article 179h, Revised
41-2 Statutes.
41-3 (b) A person may not distribute electronic or
41-4 electromechanical gaming devices unless the person holds a gaming
41-5 equipment distributor license under Article 179h, Revised Statutes.
41-6 Sec. 19.09. EXEMPTION FROM FEDERAL LAW. Electronic or
41-7 electromechanical gaming devices operated or to be operated under
41-8 this article are exempted from 15 U.S.C. Section 1172.
41-9 Sec. 19.10. OPERATION BY INDIVIDUAL UNDER 21 YEARS OF AGE.
41-10 (a) A person commits an offense if the person knowingly permits an
41-11 individual that the person knows is younger than 21 years of age to
41-12 operate an electronic or electromechanical gaming device. An
41-13 offense under this subsection is a Class A misdemeanor.
41-14 (b) An individual commits an offense if the individual
41-15 operates an electronic or electromechanical gaming device and the
41-16 individual is younger than 21 years of age at the time of
41-17 operation. An offense under this subsection is a Class C
41-18 misdemeanor.
41-19 Sec. 19.11. PROHIBITION ON LOTTERIES AND GIFT ENTERPRISES.
41-20 (a) A lottery or gift enterprise may not be conducted at a
41-21 racetrack.
41-22 (b) In this section, "lottery" and "gift enterprise" have
41-23 the meanings assigned by Section 1.01, Article 179h, Revised
41-24 Statutes.
41-25 SECTION 5. Section 47.02(c), Penal Code, is amended to read
42-1 as follows:
42-2 (c) It is a defense to prosecution under this section that
42-3 the actor reasonably believed that the conduct:
42-4 (1) was permitted under the Bingo Enabling Act
42-5 (Article 179d, Vernon's Texas Civil Statutes);
42-6 (2) was permitted under the Charitable Raffle Enabling
42-7 Act (Article 179f, Revised Statutes, as added by Chapter 957, Acts
42-8 of the 71st Legislature, Regular Session, 1989); <or>
42-9 (3) consisted entirely of participation in the state
42-10 lottery authorized by the State Lottery Act (Article 179g, Vernon's
42-11 Texas Civil Statutes); or
42-12 (4) was permitted under Article 179h, Revised
42-13 Statutes.
42-14 SECTION 6. Section 47.06, Penal Code, is amended by adding
42-15 Subsection (h) to read as follows:
42-16 (h) It is a defense to prosecution for an offense under this
42-17 section that the conduct was permitted under the Texas Racing Act
42-18 (Article 179e, Vernon's Texas Civil Statutes) or Article 179h,
42-19 Revised Statutes.
42-20 SECTION 7. Section 47.11, Penal Code, is amended to read as
42-21 follows:
42-22 Sec. 47.11. CONDUCT PERMITTED UNDER TEXAS RACING ACT
42-23 <PARI-MUTUEL WAGERING ON CERTAIN RACES>. It is a defense to
42-24 prosecution for an offense under this chapter that the conduct was
42-25 authorized under the Texas Racing Act (Article 179e, Vernon's Texas
43-1 Civil Statutes).
43-2 SECTION 8. Chapter 47, Penal Code, is amended by adding
43-3 Section 47.15 to read as follows:
43-4 Sec. 47.15. RIVERBOAT GAMING. It is a defense to
43-5 prosecution for an offense under this chapter that the conduct was
43-6 permitted under Article 179h, Revised Statutes.
43-7 SECTION 9. Subchapter H, Chapter 151, Tax Code, is amended
43-8 by adding Section 151.350 to read as follows:
43-9 Sec. 151.350. RIVERBOAT CASINO ADMISSION FEES. An admission
43-10 fee charged by a riverboat casino operator under Section 5.08,
43-11 Article 179h, Revised Statutes, is exempt from the taxes imposed by
43-12 this chapter.
43-13 SECTION 10. Article 8803, Revised Statutes, is amended to
43-14 read as follows:
43-15 Art. 8803. Exemptions from tax. (a) Gas meters, pay
43-16 telephones, pay toilets, food vending machines, confection vending
43-17 machines, beverage vending machines, merchandise vending machines,
43-18 and cigarette vending machines which are now subject to an
43-19 occupation or gross receipts tax, stamp vending machines, and
43-20 "service coin-operated machines," as that term is defined, are
43-21 expressly exempt from the tax levied herein, and the other
43-22 provisions of this Chapter.
43-23 (b) An electronic or electromechanical gaming device
43-24 permitted under Article 19, Texas Racing Act (Article 179e,
43-25 Vernon's Texas Civil Statutes), or Article 179h, Revised Statutes,
44-1 is exempt from the tax imposed by this Chapter and from the other
44-2 provisions of this Chapter.
44-3 SECTION 11. Section 2(5)(A), Chapter 421, Acts of the 63rd
44-4 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
44-5 Civil Statutes), is amended to read as follows:
44-6 (A) "Appointed officer of a major state agency"
44-7 means any of the following:
44-8 (i) a member of the Public Utility
44-9 Commission of Texas;
44-10 (ii) a member of the Texas Department of
44-11 Commerce;
44-12 (iii) a member of the Texas Board of
44-13 Aviation;
44-14 (iv) a member of the Texas Air Control
44-15 Board;
44-16 (v) a member of the Texas Alcoholic
44-17 Beverage Commission;
44-18 (vi) a member of the Finance Commission of
44-19 Texas;
44-20 (vii) a member of the <State Purchasing
44-21 and> General Services Commission;
44-22 (viii) a member of the Texas Board of
44-23 Criminal Justice;
44-24 (ix) a member of the Board of Trustees of
44-25 the Employees Retirement System of Texas;
45-1 (x) a member of the State Highway and
45-2 Public Transportation Commission;
45-3 (xi) a member of the Texas Workers'
45-4 Compensation Commission;
45-5 (xii) a member of the State Board of
45-6 Insurance;
45-7 (xiii) a member of the Parks and Wildlife
45-8 Commission;
45-9 (xiv) a member of the Public Safety
45-10 Commission;
45-11 (xv) the Secretary of State;
45-12 (xvi) a member of the State Securities
45-13 Board;
45-14 (xvii) a member of the Texas Amusement
45-15 Machine Commission;
45-16 (xviii) a member of the Texas Water
45-17 Development Board;
45-18 (xix) a member of the Texas Water
45-19 Commission;
45-20 (xx) a member of the governing board of a
45-21 state senior college or university as defined by Section 61.003,
45-22 Education Code, including The University of Texas at Arlington; The
45-23 University of Texas at Austin; The University of Texas at Dallas;
45-24 The University of Texas at El Paso; The University of Texas--Pan
45-25 American; The University of Texas--Pan American--Brownsville; The
46-1 University of Texas of the Permian Basin; The University of Texas
46-2 at San Antonio; The University of Texas at Tyler; The University of
46-3 Texas Southwestern Medical Center at Dallas; The University of
46-4 Texas Medical Branch at Galveston; The University of Texas Health
46-5 Science Center at Houston; The University of Texas Health Science
46-6 Center at San Antonio; The University of Texas System Cancer
46-7 Center; The University of Texas Health Science Center at Tyler;
46-8 Texas A&M University; Texas A&M University at Galveston; Prairie
46-9 View A&M University; Tarleton State University; Corpus Christi
46-10 State University; Texas A&I University; Laredo State University;
46-11 East Texas State University; East Texas State University at
46-12 Texarkana; University of Houston; University of Houston--Clear
46-13 Lake; University of Houston--Downtown; University of
46-14 Houston--Victoria; Lamar University at Beaumont; Lamar University
46-15 at Orange; Lamar University at Port Arthur; Midwestern State
46-16 University; University of North Texas; Texas College of Osteopathic
46-17 Medicine; Stephen F. Austin State University; Texas Southern
46-18 University; Texas Tech University; Texas Tech University Health
46-19 Sciences Center; Texas Woman's University; West Texas State
46-20 University; Angelo State University; Sam Houston State University;
46-21 Southwest Texas State University; Sul Ross State University; Sul
46-22 Ross State University--Uvalde Center; Texas State Technical
46-23 Institute--Amarillo; Texas State Technical Institute--Harlingen;
46-24 Texas State Technical Institute--Sweetwater; and Texas State
46-25 Technical Institute--Waco;
47-1 (xxi) a member of the Texas Higher
47-2 Education Coordinating Board;
47-3 (xxii) a member of the Texas Employment
47-4 Commission;
47-5 (xxiii) a member of the State Banking
47-6 Board;
47-7 (xxiv) a member of the board of trustees
47-8 of the Teachers Retirement System of Texas;
47-9 (xxv) a member of the Credit Union
47-10 Commission;
47-11 (xxvi) a member of the School Land Board;
47-12 (xxvii) a member of the board of the Texas
47-13 Department of Housing and Community Affairs;
47-14 (xxviii) a member of the Texas Racing
47-15 Commission;
47-16 (xxix) a member of the State Board of
47-17 Dental Examiners;
47-18 (xxx) a member of the Texas Board of
47-19 Licensure for Nursing Home Administrators;
47-20 (xxxi) a member of the Texas State Board
47-21 of Medical Examiners;
47-22 (xxxii) a member of the Board of Pardons
47-23 and Paroles;
47-24 (xxxiii) a member of the Texas State Board
47-25 of Pharmacy;
48-1 (xxxiv) the Banking Commissioner of the
48-2 Banking Department of Texas;
48-3 (xxxv) a member of the Department of
48-4 Information Resources Governing Board;
48-5 (xxxvi) the fire fighters' pension
48-6 commissioner;
48-7 (xxxvii) a member of the Texas Motor
48-8 Vehicle Commission;
48-9 (xxxviii) the director of the Office of
48-10 Court Administration of the Texas Judicial System;
48-11 (xxxix) the chief executive of the Office
48-12 of Public Utility Counsel;
48-13 (xl) a member of the Texas Real Estate
48-14 Commission;
48-15 (xli) a member of the board of directors
48-16 and the executive director of the State Bar of Texas;
48-17 (xlii) a member of the Bond Review Board;
48-18 (xliii) a member of the Texas Board of
48-19 Health;
48-20 (xliv) a member of the Texas Board of
48-21 Mental Health and Mental Retardation;
48-22 (xlv) a member of the Texas Board on
48-23 Aging;
48-24 (xlvi) a member of the Texas Board of
48-25 Human Services;
49-1 (xlvii) a member of the Texas Funeral
49-2 Service Commission;
49-3 (xlviii) a member of the board of
49-4 directors of a river authority created under the constitution or
49-5 laws of this state;
49-6 (xlix) the director of the lottery
49-7 division in the office of the comptroller; <or>
49-8 (l) the deputy in charge of the department
49-9 of security in the lottery division in the office of the
49-10 comptroller; or
49-11 (li) a member of the Texas Riverboat
49-12 Gaming Commission.
49-13 SECTION 12. In making the initial appointments to the Texas
49-14 Riverboat Gaming Commission, the governor shall designate two
49-15 members for terms expiring in 1995, two members for terms expiring
49-16 in 1997, and two members for terms expiring in 1999.
49-17 SECTION 13. Section 47.02(d), Penal Code, is amended to read
49-18 as follows:
49-19 (d) An offense under this section is a Class B <C>
49-20 Misdemeanor.
49-21 SECTION 14. This Act takes effect and the Texas Riverboat
49-22 Gaming Commission is created on September 1, 1993.
49-23 SECTION 15. The importance of this legislation and the
49-24 crowded condition of the calendars in both houses create an
49-25 emergency and an imperative public necessity that the
50-1 constitutional rule requiring bills to be read on three several
50-2 days in each house be suspended, and this rule is hereby suspended.