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.