By: Ellis S.B. No. 597
73R5976 ESH-F
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
1-24 citizens of this state.
2-1 (4) Riverboats that operate certain limited duration
2-2 excursions and conduct gaming activities shall be licensed and
2-3 supervised through the period of construction of the vessel
2-4 continuing through to the operation of the vessel, and
2-5 gaming-related employees of those riverboats, gaming operators, and
2-6 manufacturers, suppliers, and distributors of gaming equipment
2-7 shall be regulated, licensed, and controlled to accomplish and
2-8 promote the above public policies while protecting the public
2-9 health, safety, and morals, good order, and general welfare of our
2-10 citizens.
2-11 (5) It is the express intent, desire, and policy of
2-12 the legislature that a gaming operator or applicant for a license
2-13 or permit issued as a result of this Act does not have any right of
2-14 action to obtain any license, permit, or approval sought except as
2-15 provided for and authorized by this Act. Any license, permit, or
2-16 approval obtained or issued under this Act is expressly declared by
2-17 the legislature to be a pure and absolute revocable privilege, and
2-18 not a right, property or otherwise, under the Constitution of the
2-19 United States or this state. The legislature declares that a
2-20 holder of any license or permit does not acquire any vested
2-21 interest or right in or under the license or permit.
2-22 SECTION 2. (a) This Act may not be construed to
2-23 legalize any form of gambling that is prohibited under the Texas
2-24 Constitution or the laws of this state. Nothing in this Act may
2-25 be construed as encouraging the legalization of gambling in this
2-26 state.
2-27 (b) The legislature finds that lotteries and gaming both
3-1 consist of the material element of chance. The legislature is
3-2 directed by Article III, Section 47, of the Texas Constitution to
3-3 prohibit "lotteries and gift enterprises" other than those
3-4 authorized by Subsections (b), (d), and (e) of that section. The
3-5 legislature is permitted by virtue of its inherent powers to
3-6 legislate on gaming as the occasion arises. The legislature
3-7 derives its power to legislate on gaming from its inherent
3-8 authority over the morals and policy of the people and that power
3-9 may not be considered to conflict with the constitutional
3-10 obligation to prohibit lotteries and gift enterprises.
3-11 (c) The legislature finds it to be the public policy of this
3-12 state that:
3-13 (1) regulation of licensed gaming is important in
3-14 order that licensed gaming is conducted honestly and competitively,
3-15 that the rights of the creditors of license holders are protected,
3-16 and that gaming is free from criminal and corruptive elements;
3-17 (2) public confidence and trust can only be maintained
3-18 by strict regulation of all persons, locations, practices,
3-19 associations, and activities related to the operation of licensed
3-20 gaming establishments and the manufacture or distribution of gaming
3-21 equipment; and
3-22 (3) all establishments where gaming is conducted and
3-23 where gaming equipment is operated and manufacturers, sellers, and
3-24 distributors of certain gaming equipment must be licensed,
3-25 controlled, and assisted to protect the public health, safety, and
3-26 morals, good order, and general welfare of our citizens.
3-27 (d) The legislature intends that gaming license holders, to
4-1 the extent practicable, employ residents of Texas as gaming
4-2 employees and other employees in the operation of their gaming
4-3 establishments located in this state.
4-4 SECTION 3. Title 6, Revised Statutes, is amended by adding
4-5 Article 179h to read as follows:
4-6 Art. 179h. RIVERBOAT ECONOMIC DEVELOPMENT AND GAMING CONTROL
4-7 ACT
4-8 CHAPTER 1. GENERAL PROVISIONS
4-9 Sec. 1.01. DEFINITIONS. In this article:
4-10 (1) "Casino space" means that portion of a riverboat
4-11 in which gaming may be conducted.
4-12 (2) "Commission" means the Texas Riverboat Gaming
4-13 Commission.
4-14 (3) "Eligible political subdivision" means:
4-15 (A) a municipality located wholly or in part in
4-16 a county described by Section 4.10 of this article; or
4-17 (B) a county described by Section 4.10 of this
4-18 article.
4-19 (4) "Executive director" means the executive director
4-20 of the commission.
4-21 (5) "Game" means an amusement or competition involving
4-22 skill or chance, or both, played with cards, dice, equipment, or
4-23 any device for money, property, checks, credit, or any
4-24 representative of value, including the amusements or competitions
4-25 commonly known as faro, monte, roulette, keno, fan-tan, twenty-one,
4-26 blackjack, seven-and-a-half, big injun, klondike, craps, poker,
4-27 chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
5-1 chemin de fer, baccarat, pai gow, beat the banker, and panguingui.
5-2 The term includes a game played by operating a slot machine and any
5-3 banking or percentage game. The term does not include:
5-4 (A) pari-mutuel wagering on the outcome of
5-5 greyhound or horse racing or the operation of electronic or
5-6 electromechanical gaming devices at a racetrack, as authorized by
5-7 the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
5-8 and its subsequent amendments;
5-9 (B) bingo, as authorized by the Bingo Enabling
5-10 Act (Article 179d, Vernon's Texas Civil Statutes) and its
5-11 subsequent amendments;
5-12 (C) charitable raffles, as authorized by the
5-13 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
5-14 added by Chapter 957, Acts of the 71st Legislature, Regular
5-15 Session, 1989) and its subsequent amendments;
5-16 (D) the state lottery, as authorized by the
5-17 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and
5-18 its subsequent amendments;
5-19 (E) a lottery or gift enterprise; or
5-20 (F) wagering on the outcome of a sports event or
5-21 activity.
5-22 (6) "Gaming" or "gaming activity" means the dealing,
5-23 operation, carrying on, conducting, or maintaining a game or the
5-24 exposing for play of a game.
5-25 (7) "Gaming employee" means any individual connected
5-26 directly with the operation of a gaming activity on a riverboat
5-27 casino. The term does not include a bartender, cocktail waitress,
6-1 or other individual engaged exclusively in preparing or serving
6-2 food or beverages on a riverboat casino or an individual engaged
6-3 exclusively in the operation or maintenance of the vessel. The
6-4 term includes:
6-5 (A) boxmen;
6-6 (B) cashiers;
6-7 (C) change personnel;
6-8 (D) counting room personnel;
6-9 (E) dealers;
6-10 (F) floormen;
6-11 (G) hosts empowered to extend credit or
6-12 complimentary services;
6-13 (H) keno runners;
6-14 (I) keno writers;
6-15 (J) machine mechanics;
6-16 (K) security personnel;
6-17 (L) shift or pit bosses;
6-18 (M) shills;
6-19 (N) supervisors or managers involved in gaming
6-20 activities;
6-21 (O) ticket writers;
6-22 (P) accounting or internal auditing personnel
6-23 directly involved in recordkeeping or the examination of records
6-24 generated from gaming activities; and
6-25 (Q) individuals who promote junkets.
6-26 (8) "Gaming equipment" means any object or mechanical,
6-27 electromechanical, or electronic contrivance or machine used in
7-1 connection with a gaming activity or a game.
7-2 (9) "Gaming equipment distributor" means a person who
7-3 sells or leases gaming equipment to a riverboat casino operator for
7-4 use in games authorized by this article.
7-5 (10) "Gaming equipment manufacturer" means a person
7-6 who designs, assembles, constructs, or otherwise prepares gaming
7-7 equipment, or a component part of gaming equipment that affects the
7-8 selection of criteria that determines the result of a game, for
7-9 sale to a gaming equipment distributor.
7-10 (11) "Governing body" means:
7-11 (A) the city council or other chief legislative
7-12 body, with regard to a municipality; or
7-13 (B) the commissioners court, with regard to a
7-14 county.
7-15 (12) "License holder" means a person who holds a
7-16 license issued under this article.
7-17 (13) "Lottery" or "gift enterprise" means any activity
7-18 in which:
7-19 (A) the player or players pay or agree to pay
7-20 something of value for chances, represented and differentiated by
7-21 tickets, slips of paper, or other physical or tangible
7-22 documentation upon which appear numbers, symbols, characters, or
7-23 other distinctive marks used to identify and designate the winner
7-24 or winners;
7-25 (B) the winning chance or chances are determined
7-26 by a drawing or similar selection method based predominantly on the
7-27 element of chance or random selection rather than on the skill or
8-1 judgment of the player or players;
8-2 (C) the holder or holders of the winning chance
8-3 or chances are to receive a prize or something of valuable
8-4 consideration; and
8-5 (D) the activity is conducted and participated
8-6 in without regard to geographical location, with the player or
8-7 players not being required to be present on any particular premises
8-8 or at any particular location in order to participate or to win.
8-9 (14) "Passenger" means an individual aboard a
8-10 riverboat who is not:
8-11 (A) an employee of the riverboat casino
8-12 operator; or
8-13 (B) a government officer or employee acting in
8-14 an official capacity.
8-15 (15) "Person" includes a corporation, organization,
8-16 business trust, estate, trust, partnership, association, and any
8-17 other legal entity.
8-18 (16) "Political subdivision" means a municipality or
8-19 county.
8-20 (17) "Riverboat casino operator" means a person who
8-21 operates or conducts gaming activities aboard a riverboat.
8-22 Sec. 1.02. GAMING AUTHORIZED. (a) Gaming and participation
8-23 in gaming on a riverboat for which a riverboat casino operator
8-24 license is issued under this article are permitted in:
8-25 (1) an eligible political subdivision in which a
8-26 successful legalization election has been held under Chapter 6 of
8-27 this article; and
9-1 (2) state waters contiguous to a political subdivision
9-2 described in Subdivision (1) of this subsection.
9-3 (b) A riverboat casino operator may not conduct a lottery or
9-4 gift enterprise.
9-5 Sec. 1.03. EXEMPTION FROM FEDERAL LAW. A political
9-6 subdivision holding a legalization election and approving gaming
9-7 under this article is exempt from the provisions of 15 U.S.C.
9-8 Section 1172 relating to gambling devices transported into the
9-9 political subdivision for use on a riverboat in the political
9-10 subdivision.
9-11 Sec. 1.04. APPLICATION OF SUNSET ACT. The commission is
9-12 subject to Chapter 325, Government Code (Texas Sunset Act), and its
9-13 subsequent amendments. Unless continued in existence as provided
9-14 by that chapter, the commission is abolished and this article
9-15 expires September 1, 2005.
9-16 CHAPTER 2. TEXAS RIVERBOAT GAMING COMMISSION
9-17 Sec. 2.01. COMMISSION. (a) The Texas Riverboat Gaming
9-18 Commission is composed of seven members. Six members are appointed
9-19 by the governor with the advice and consent of the senate. The
9-20 public safety director of the Public Safety Commission is an ex
9-21 officio member and has the right to vote.
9-22 (b) In making appointments to the commission, the governor
9-23 shall attempt to achieve representation of all the population
9-24 groups of the state with regard to economic status, sex, race, or
9-25 ethnicity.
9-26 Sec. 2.02. ELIGIBILITY. To be eligible for appointment to
9-27 the commission, an individual:
10-1 (1) must be a citizen of the United States;
10-2 (2) must have resided in this state for the two years
10-3 preceding the date of the person's appointment;
10-4 (3) must submit a financial statement that contains
10-5 the information required by Section 4(c), Chapter 421, Acts of the
10-6 63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's
10-7 Texas Civil Statutes), and its subsequent amendments;
10-8 (4) may not own any financial interest in riverboat
10-9 gaming or its operation or be related within the second degree by
10-10 affinity or the third degree by consanguinity, as determined under
10-11 Article 5996h, Revised Statutes, and its subsequent amendments, to
10-12 an individual who owns any financial interest in riverboat gaming
10-13 or its operation;
10-14 (5) may not be a license holder; and
10-15 (6) may not be a member of the governing body of an
10-16 eligible political subdivision.
10-17 Sec. 2.03. PROHIBITED ACTIVITY. (a) An appointed member of
10-18 the commission may not:
10-19 (1) use the member's official authority to affect the
10-20 result of an election or nomination for public office; or
10-21 (2) directly or indirectly coerce, attempt to coerce,
10-22 command, or advise a person to pay, lend, or contribute anything of
10-23 value to another person for political purposes.
10-24 (b) A commission member or former commission member or the
10-25 spouse of a commission member or former commission member may not
10-26 solicit or accept employment from a license holder or an applicant
10-27 for a license under this article before the second anniversary of
11-1 the date on which the commission member's service on the commission
11-2 ends.
11-3 Sec. 2.04. TERMS. Appointed members of the commission hold
11-4 office for staggered terms of six years. Two members' terms expire
11-5 February 1 of each odd-numbered year.
11-6 Sec. 2.05. BOND. (a) Before entering the duties of office,
11-7 an appointed member of the commission must execute a bond that is:
11-8 (1) payable to the state;
11-9 (2) in the amount of $25,000; and
11-10 (3) conditioned that the member will faithfully
11-11 perform the duties of office.
11-12 (b) The bond must be approved by the governor.
11-13 Sec. 2.06. PRESIDING OFFICER. The governor shall designate
11-14 one member to serve as presiding officer for a term of two years.
11-15 Sec. 2.07. REMOVAL OF APPOINTED COMMISSION MEMBERS. (a) It
11-16 is a ground for removal from the commission if an appointed member:
11-17 (1) does not have at the time of appointment the
11-18 qualifications required for appointment to the commission;
11-19 (2) does not maintain during service on the commission
11-20 the qualifications required for appointment to the commission;
11-21 (3) violates a prohibition established by Section 2.03
11-22 of this article;
11-23 (4) cannot discharge the member's duties for a
11-24 substantial part of the term for which the member is appointed
11-25 because of illness or disability; or
11-26 (5) is absent from more than half of the regularly
11-27 scheduled commission meetings that the member is eligible to attend
12-1 during a calendar year unless the absence is excused by majority
12-2 vote of the commission.
12-3 (b) The validity of an action of the commission is not
12-4 affected by the fact that it is taken when a ground for removal of
12-5 a commission member exists.
12-6 (c) If the presiding officer has knowledge that a potential
12-7 ground for removal exists, the presiding officer shall notify the
12-8 governor.
12-9 Sec. 2.08. COMPENSATION. (a) An appointed member of the
12-10 commission is entitled to receive compensation of $1,500 per month
12-11 for serving on the commission.
12-12 (b) An appointed member is entitled to reimbursement for
12-13 actual and necessary expenses incurred in performing functions as a
12-14 member of the commission, subject to any applicable limitation on
12-15 reimbursement provided by the General Appropriations Act.
12-16 (c) The public safety director of the Public Safety
12-17 Commission is entitled to reimbursement for actual and necessary
12-18 expenses incurred in performing functions as a member of the Texas
12-19 Riverboat Gaming Commission. Reimbursement shall be from the
12-20 Public Safety Commission as provided by law for expenses incurred
12-21 in the performance of other official duties.
12-22 Sec. 2.09. OFFICES. The commission shall maintain its
12-23 general office in the city of Austin. The commission may establish
12-24 branch offices within this state.
12-25 Sec. 2.10. MEETINGS. (a) The commission shall meet at
12-26 least six times in each calendar year.
12-27 (b) The commission may meet at other times at the call of
13-1 the presiding officer or as provided by commission rule.
13-2 Sec. 2.11. EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
13-3 commission shall employ an executive director and other employees
13-4 as necessary to administer this article.
13-5 (b) The executive director shall keep the records of the
13-6 commission and shall perform duties as assigned by the commission
13-7 or specified by law.
13-8 (c) An executive director, former executive director,
13-9 employee of the commission, or former employee of the commission
13-10 may not solicit or accept employment from a license holder or an
13-11 applicant for a license under this article before the first
13-12 anniversary of the date on which the individual's employment with
13-13 the commission ends.
13-14 Sec. 2.12. AUDIT. The transactions of the commission are
13-15 subject to audit by the state auditor in accordance with Chapter
13-16 321, Government Code, and its subsequent amendments.
13-17 Sec. 2.13. LEGAL REPRESENTATION. (a) The attorney general
13-18 shall designate at least one assistant attorney general to advise
13-19 the commission and represent the commission in legal proceedings.
13-20 (b) The attorney general shall make available to the
13-21 appropriate prosecuting attorney information obtained regarding a
13-22 possible violation of this article.
13-23 (c) The attorney general may apply for injunctive or
13-24 declaratory relief to enforce this article or a rule adopted by the
13-25 commission. Action by the attorney general under this subsection
13-26 does not limit the authority of the attorney general or a
13-27 prosecuting attorney to bring a criminal proceeding.
14-1 Sec. 2.14. CONFIDENTIAL INFORMATION. (a) The contents of
14-2 investigatory files of the commission are confidential except in a
14-3 criminal proceeding.
14-4 (b) The following information is confidential and exempt
14-5 from disclosure under the open records law, Chapter 424, Acts of
14-6 the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
14-7 Vernon's Texas Civil Statutes), and its subsequent amendments:
14-8 (1) information required by the commission to be
14-9 furnished or otherwise obtained by the commission that relates to
14-10 the finances, earnings, or revenue of an applicant or license
14-11 holder;
14-12 (2) information relating to the criminal record of an
14-13 applicant or license holder; and
14-14 (3) information provided to the commission or an
14-15 employee of the commission on the condition that the information
14-16 remain confidential.
14-17 (c) Information obtained from a gaming equipment
14-18 manufacturer, gaming equipment distributor, or riverboat casino
14-19 operator that relates to the manufacture of a gaming device is
14-20 confidential and may be released only:
14-21 (1) in the necessary administration of this article;
14-22 (2) on order of a court of competent jurisdiction; or
14-23 (3) to a governmental agency as provided by commission
14-24 rule.
14-25 CHAPTER 3. POWERS AND DUTIES OF COMMISSION
14-26 Sec. 3.01. CONTROL AND SUPERVISION. The commission shall
14-27 administer this article. The commission has broad authority and
15-1 shall exercise strict control and close supervision over all gaming
15-2 activity to ensure that games are conducted fairly and in
15-3 compliance with the law.
15-4 Sec. 3.02. POWER OF ENTRY. (a) An authorized agent of the
15-5 commission or a person designated by an authorized agent of the
15-6 commission, after providing proper identification, may:
15-7 (1) enter the office, vessel, or other place of
15-8 business of a license holder to enforce and administer this
15-9 article;
15-10 (2) inspect, examine, and photocopy or remove and
15-11 impound all papers, books, and records of a license holder that
15-12 relate to activities regulated by this article;
15-13 (3) require verification of income from activities
15-14 regulated by this article; and
15-15 (4) seize and remove from the premises and impound any
15-16 gaming equipment or supplies for inspection and examination.
15-17 (b) Any item impounded under Subsection (a) of this section
15-18 must be returned to the license holder in substantially the same
15-19 condition as when impounded. An impounded item shall be promptly
15-20 returned following the commission's inspection or examination.
15-21 Sec. 3.03. RULES. The commission shall adopt rules relating
15-22 to:
15-23 (1) the transaction of commission business;
15-24 (2) the conduct and operation of gaming;
15-25 (3) the investigation of alleged violations of this
15-26 article or a rule adopted under this article;
15-27 (4) the investigation of complaints from citizens
16-1 regarding riverboat gaming;
16-2 (5) the issuance, revocation, and suspension of
16-3 licenses under this article;
16-4 (6) the records a license holder is required to
16-5 maintain under Section 4.13 of this article;
16-6 (7) the inspection and examination without notice of
16-7 premises where gaming is conducted or where gaming equipment is
16-8 located, sold, distributed, or stored;
16-9 (8) the seizure and removal without notice or hearing
16-10 of any gaming equipment for examination and inspection;
16-11 (9) the reporting by a riverboat casino operator
16-12 license holder of the number and types of gaming activities
16-13 conducted or to be conducted on a riverboat;
16-14 (10) the maintenance of gaming equipment;
16-15 (11) the granting of a license with special conditions
16-16 or for a limited period;
16-17 (12) the establishment of other categories of licenses
16-18 not established under this article;
16-19 (13) the ejection or exclusion from a riverboat of an
16-20 individual:
16-21 (A) who has violated this article, a rule
16-22 adopted under this article, or a final order of the commission; or
16-23 (B) whose conduct or reputation is such that the
16-24 individual's presence on the riverboat, in the commission's
16-25 opinion, calls into question the honesty and integrity of the
16-26 gaming activities or interferes with the orderly conduct of gaming
16-27 activities;
17-1 (14) the manner in which an individual who has been
17-2 ejected or excluded from a riverboat may request and obtain a
17-3 hearing before the commission;
17-4 (15) the geographic boundaries and routes of operation
17-5 for riverboat gaming activities; and
17-6 (16) any other matter necessary for the administration
17-7 and enforcement of this article.
17-8 Sec. 3.04. APPROVAL OF RULES FOR CERTAIN GAMES. The
17-9 commission shall adopt specific rules for blackjack and poker. A
17-10 riverboat casino operator shall post the applicable rules within
17-11 plain view of any table at which blackjack or poker is played.
17-12 CHAPTER 4. LICENSES
17-13 Sec. 4.01. LICENSE REQUIRED. (a) A person may not act as a
17-14 gaming equipment manufacturer, gaming equipment distributor, or
17-15 riverboat casino operator unless the person holds an appropriate
17-16 license issued under this article.
17-17 (b) A person may not be employed as a gaming employee unless
17-18 the person holds an appropriate license issued under this article.
17-19 (c) A person may not conduct other gaming activities for
17-20 which the commission by rule requires a license unless the person
17-21 holds an appropriate license issued under this article.
17-22 (d) A riverboat casino operator must hold a separate license
17-23 for each location from which the riverboat casino operator operates
17-24 a riverboat.
17-25 Sec. 4.02. ISSUANCE; TERM; RENEWAL. (a) The commission
17-26 shall issue a license to a qualified person on application, payment
17-27 of the applicable fee, and execution of the applicable bond.
18-1 (b) Before issuing a riverboat casino operator license, the
18-2 commission, in accordance with its rules, shall consider the
18-3 applicant's location and economic commitment, the level of local
18-4 support for the proposed riverboat casino, and other factors
18-5 considered necessary to protect the public.
18-6 (c) The commission may not issue a riverboat casino operator
18-7 license unless the governing body of the political subdivision in
18-8 which the riverboat is to be operated certifies in writing to the
18-9 secretary of state that a successful legalization election was held
18-10 under Chapter 6 of this article.
18-11 (d) An original or renewal license expires on the first
18-12 anniversary of the date it is issued.
18-13 (e) A license holder may renew an unexpired license annually
18-14 by paying to the commission a fee not to exceed the lesser of:
18-15 (1) $50,000; or
18-16 (2) an amount equal to the amount of an original
18-17 license fee for the license for the period of the renewal.
18-18 Sec. 4.03. APPLICATION; FORM; CERTIFICATE. (a) An
18-19 applicant must pay the required application or renewal fee and
18-20 submit an application on a form prescribed by the commission.
18-21 (b) The application of an individual must include:
18-22 (1) the applicant's full name;
18-23 (2) the applicant's date of birth;
18-24 (3) a physical description of the applicant;
18-25 (4) the applicant's address and telephone number; and
18-26 (5) a statement by the applicant disclosing the
18-27 applicant's arrest or conviction for any felony or misdemeanor
19-1 offense other than a misdemeanor offense under the Uniform Act
19-2 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
19-3 Statutes) and its subsequent amendments or a similar misdemeanor
19-4 traffic offense.
19-5 (c) The application of a corporation must include:
19-6 (1) the name and address of the corporation's agent
19-7 for service of process in this state;
19-8 (2) the name, address, and telephone number of each
19-9 director and of each stockholder who owns or controls more than
19-10 five percent of the corporation's stock;
19-11 (3) the date of birth and a physical description of
19-12 each director and of each individual stockholder who owns or
19-13 controls more than five percent of the corporation's stock; and
19-14 (4) a statement by each director and by each
19-15 individual stockholder who owns or controls more than five percent
19-16 of the corporation's stock disclosing any arrest or conviction of
19-17 that director or stockholder for any felony or misdemeanor offense
19-18 other than a misdemeanor offense under the Uniform Act Regulating
19-19 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes)
19-20 and its subsequent amendments or a similar misdemeanor traffic
19-21 offense.
19-22 (d) The application of an unincorporated business
19-23 association or any legal entity other than an individual or
19-24 corporation must include:
19-25 (1) the name, address, telephone number, and
19-26 percentage of ownership of each of its owners or members;
19-27 (2) the date of birth and a physical description of
20-1 each individual owner or member; and
20-2 (3) a statement by each individual owner or member who
20-3 owns an interest in the entity that is greater than five percent
20-4 disclosing any arrest or conviction of that owner or member for any
20-5 felony or misdemeanor offense other than a misdemeanor offense
20-6 under the Uniform Act Regulating Traffic on Highways (Article
20-7 6701d, Vernon's Texas Civil Statutes) and its subsequent amendments
20-8 or a similar misdemeanor traffic offense.
20-9 (e) An application for a license under this chapter must
20-10 contain information necessary to determine the applicant's
20-11 eligibility for a license under this chapter.
20-12 (f) An application for a riverboat casino operator license
20-13 must be accompanied by:
20-14 (1) a detailed statement of the assets and liabilities
20-15 of the applicant;
20-16 (2) evidence necessary to determine the compliance of
20-17 the riverboat on which gaming is to be conducted with the
20-18 requirements of Section 4.09 of this article;
20-19 (3) a plan for the riverboat showing the proposed
20-20 location of the casino space and all gaming equipment;
20-21 (4) a detailed floor plan of a land-based development,
20-22 redevelopment, or renovation of a permanent structure of not less
20-23 than 20,000 square feet for entertainment, ticketing, retail
20-24 outlets, amusements, and other related activities;
20-25 (5) a timetable showing that construction of the
20-26 facilities described in Subdivision (4) of this subsection will
20-27 begin not later than the first anniversary of the date the
21-1 commission issues a license to the applicant;
21-2 (6) a legal description of the land on which the
21-3 facilities described in Subdivision (4) of this subsection and the
21-4 dock from which the riverboat will operate will be located;
21-5 (7) evidence of ownership of or of the right to
21-6 control the land described in Subdivision (6) of this subsection;
21-7 (8) a traffic control and management plan detailing
21-8 improvements for the ingress, egress, and parking of motor
21-9 vehicles, sufficient for the proposed size and type of the
21-10 applicant's riverboat casino operations;
21-11 (9) an affirmative action plan, outlining minority
21-12 recruitment efforts for gaming employees; and
21-13 (10) a plan providing for the recruitment, training,
21-14 and hiring of unemployed residents of this state.
21-15 (g) The commission shall provide each applicant granted a
21-16 license with a license certificate or credentials.
21-17 Sec. 4.04. FINGERPRINTS. (a) An applicant for a license
21-18 under this article must submit to the commission a complete set of
21-19 fingerprints of the individual applying for the license or, if the
21-20 applicant is not an individual, of any individual required to be
21-21 named in the application.
21-22 (b) The commission, not later than the next day after
21-23 receiving the fingerprints, shall forward the prints by mail to the
21-24 Department of Public Safety. The department shall classify the
21-25 fingerprints and check them against its fingerprint files and shall
21-26 report to the commission its findings concerning the criminal
21-27 record of the applicant or the lack of such a record. A license
22-1 may not be issued until the report is made to the commission.
22-2 (c) A peace officer of this or any other state, or any
22-3 district office of the commission, shall take the fingerprints of
22-4 an applicant for a license on forms approved and furnished by the
22-5 Department of Public Safety and shall immediately deliver them to
22-6 the commission.
22-7 Sec. 4.05. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
22-8 commission may obtain any criminal history record information that
22-9 relates to an applicant for employment by the commission or to an
22-10 applicant for a license issued by the commission and that is
22-11 maintained by the Department of Public Safety, the Federal Bureau
22-12 of Investigation identification division, or any other law
22-13 enforcement agency. The commission may refuse to employ or to
22-14 grant a license to an applicant who fails to provide a complete set
22-15 of fingerprints.
22-16 (b) Criminal history record information received by the
22-17 commission under this section is for the exclusive use of the
22-18 commission, is privileged and confidential, and may not be released
22-19 or otherwise disclosed to any person or agency except:
22-20 (1) in a criminal proceeding;
22-21 (2) in a hearing conducted by the commission;
22-22 (3) on court order; or
22-23 (4) with the consent of the applicant.
22-24 Sec. 4.06. RESIDENCY REQUIREMENT. To be eligible for a
22-25 license under this article:
22-26 (1) an individual must show that the individual is a
22-27 resident of this state; or
23-1 (2) a person other than an individual must show that
23-2 not less than one-third of the ownership interest in the person is
23-3 held by residents of this state.
23-4 Sec. 4.07. GROUNDS FOR DENIAL, REVOCATION, OR SUSPENSION OF
23-5 LICENSE. (a) The commission, after notice and hearing, may refuse
23-6 to issue an original or renewal license under this article or may
23-7 revoke or suspend a license if the commission finds that the
23-8 applicant or license holder is an individual who has been
23-9 convicted of a felony, criminal fraud, gambling or a
23-10 gambling-related offense, or a misdemeanor involving moral
23-11 turpitude, if less than 10 years has elapsed since the termination
23-12 of the sentence, parole, mandatory supervision, or probation served
23-13 for the offense.
23-14 (b) The commission, after notice and hearing, may:
23-15 (1) refuse to issue an original or renewal license
23-16 under this article if it finds the person is not eligible for the
23-17 license;
23-18 (2) refuse to issue an original or renewal riverboat
23-19 casino operator license under this article if the commission finds
23-20 that the proposed riverboat casino operation does not comply with
23-21 this article;
23-22 (3) refuse to issue a gaming employee license to a
23-23 person discharged for cause by any gaming business in any
23-24 jurisdiction; or
23-25 (4) revoke a license under this article if it finds
23-26 that the person was not eligible for the license at the time it was
23-27 issued or is no longer eligible for the license.
24-1 Sec. 4.08. MULTIPLE LICENSES PROHIBITED. A person licensed
24-2 under this article as a gaming equipment manufacturer, gaming
24-3 equipment distributor, or riverboat casino operator may not hold
24-4 another type of license issued under this article.
24-5 Sec. 4.09. RIVERBOAT REQUIREMENTS AND RESTRICTIONS. (a) A
24-6 person may not obtain a riverboat casino operator license unless
24-7 the riverboat on which gaming is to be conducted:
24-8 (1) carries a certificate of inspection issued by the
24-9 United States Coast Guard under Title 46, United States Code, and
24-10 46 CFR, Chapter I, Subchapter H, and their subsequent amendments,
24-11 for the carriage of at least 600 passengers on navigable waterways
24-12 in this state;
24-13 (2) is at least 150 feet long;
24-14 (3) is:
24-15 (A) of a design that replicates as nearly as
24-16 practical passenger steamboats of the 19th century; or
24-17 (B) otherwise of a design suitable for riverboat
24-18 gaming activities on specific waterways; and
24-19 (4) is powered by a fuel acceptable to the United
24-20 States Coast Guard under Title 46, United States Code, and 46 CFR,
24-21 Chapter I, Subchapter H, and their subsequent amendments.
24-22 (b) Casino space aboard a riverboat may not exceed 60
24-23 percent of the total space of the riverboat. The main entrance or
24-24 sole public access to a riverboat may not be through the casino
24-25 space.
24-26 (c) A riverboat operated under this article must have a crew
24-27 complement that meets all marine personnel requirements of the
25-1 United States Coast Guard. At least 50 percent of the employees
25-2 on a riverboat who are not gaming employees must be:
25-3 (1) certified in cardiopulmonary resuscitation by the
25-4 American Red Cross; and
25-5 (2) certified in lifeboat safety and marine fire
25-6 fighting by the United States Coast Guard.
25-7 Sec. 4.10. AREA OF OPERATION; MAXIMUM NUMBER OF RIVERBOAT
25-8 CASINO OPERATOR LICENSES. (a) The commission may issue up to 15
25-9 riverboat casino operator licenses. A license may be issued to an
25-10 applicant in any county or municipality with one or more navigable
25-11 waterways, in whole or in part, within its boundaries, including
25-12 channels and fairways, that are:
25-13 (1) regulated as to marine safety by the United States
25-14 Coast Guard; or
25-15 (2) determined by the commission to be safe for
25-16 riverboat operations.
25-17 (b) For purposes of this article, a riverboat is considered
25-18 to operate in the county in which passengers board the riverboat.
25-19 (c) The commission may not issue more than:
25-20 (1) five licenses for riverboat casinos operating in
25-21 Harris County;
25-22 (2) two licenses for riverboat casinos operating in
25-23 Cameron County;
25-24 (3) two licenses for riverboat casinos operating in
25-25 Galveston County;
25-26 (4) two licenses for riverboat casinos operating in
25-27 Jefferson County;
26-1 (5) one license for a riverboat casino operating in
26-2 Brazoria County;
26-3 (6) one license for a riverboat casino operating in
26-4 Nueces County;
26-5 (7) one license for a riverboat casino operating in
26-6 Montgomery County; and
26-7 (8) in addition to the licenses allocated by
26-8 Subdivisions (1) and (3) of this subsection, one license for a
26-9 riverboat casino operating in Harris or Galveston County as
26-10 determined by the commission.
26-11 (d) A person who holds a riverboat casino operator license
26-12 may operate two vessels if each vessel operates from the dock site
26-13 for which the person holds the license. A person may hold more
26-14 than one riverboat casino operator license.
26-15 (e) In a county in which the commission may award more than
26-16 one riverboat casino operator license, the commission shall give
26-17 preference to at least one applicant whose dock site is leased from
26-18 a port authority, if the port authority:
26-19 (1) existed on January 1, 1992; and
26-20 (2) consents to the license.
26-21 (f) In this section:
26-22 (1) "Dock site" means the land development and
26-23 associated dock facilities where an applicant or license holder
26-24 will normally berth a riverboat.
26-25 (2) "Port authority" means a port authority created or
26-26 operating under Article III, Section 52, or Article XVI, Section
26-27 59, of the Texas Constitution.
27-1 Sec. 4.11. GAMING OPERATIONS WHILE RIVERBOAT IS BERTHED.
27-2 (a) Except as provided by Subsections (b) and (c) of this section,
27-3 a riverboat casino operator may not conduct gaming activities or
27-4 permit passengers to enter the casino space unless the riverboat is
27-5 navigating or anchored.
27-6 (b) A riverboat casino operator may conduct gaming
27-7 activities for a period not to exceed one hour while the riverboat
27-8 is berthed for passenger loading or unloading.
27-9 (c) A riverboat casino operator may conduct gaming
27-10 activities while the riverboat is berthed during inclement weather
27-11 during which, in the determination of the captain of the riverboat,
27-12 the normal operation of the riverboat would pose a health or safety
27-13 risk to passengers. The riverboat casino operator shall report
27-14 each occurrence of gaming activities under this subsection to the
27-15 commission not later than 24 hours after the gaming takes place.
27-16 Sec. 4.12. BOND. (a) Before a riverboat casino operator
27-17 license, a gaming equipment manufacturer license, or a gaming
27-18 equipment distributor license may be issued, the applicant must
27-19 execute a bond that is:
27-20 (1) payable to the state;
27-21 (2) in the amount of $250,000; and
27-22 (3) conditioned that the applicant will comply with
27-23 this article and the rules adopted under this article.
27-24 (b) The bond and the surety must be approved by the
27-25 commission.
27-26 (c) The commission by rule may require a bond before issuing
27-27 a license in a license category established by the commission.
28-1 Subsections (a) and (b) of this section apply to a bond under this
28-2 subsection.
28-3 Sec. 4.13. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
28-4 STATEMENTS. The commission shall require license holders to:
28-5 (1) keep books and records relating to activities
28-6 regulated by this article; and
28-7 (2) submit audited financial statements to the
28-8 commission.
28-9 CHAPTER 5. FEES AND TAXES
28-10 Sec. 5.01. APPLICATION FEE. An applicant for a license
28-11 under this article must submit with the application a nonrefundable
28-12 fee in the amount determined by the commission. The amount must be
28-13 sufficient to cover the cost of administering the application
28-14 process.
28-15 Sec. 5.02. RIVERBOAT CASINO OPERATOR LICENSE FEE. (a)
28-16 Subject to Section 4.02(e) of this article, the annual fee for a
28-17 riverboat casino operator license is determined by the number of
28-18 games offered for play on each day by the riverboat casino operator
28-19 during the year for which the fee is charged, as provided by the
28-20 following table:
28-21 Number of games: Fee:
28-22 1-13 $600 per game per year
28-23 14-16 $1,000 per game per year
28-24 17 or more $16,000 plus $200 per game
28-25 per year for each game in
28-26 excess of 16
28-27 (b) For purposes of Subsection (a) of this section, the
29-1 number of games offered for play on a day is equal to the maximum
29-2 number of all games that may be conducted in the casino space of a
29-3 riverboat on that day, as reported by the riverboat casino operator
29-4 in an application for a license or a report to the commission. The
29-5 commission may audit a riverboat casino operator to determine
29-6 compliance with this subsection.
29-7 Sec. 5.03. OTHER LICENSE FEES. (a) The annual fee for a
29-8 license under this article other than a riverboat casino operator
29-9 license is:
29-10 (1) $1,000, for a gaming equipment manufacturer
29-11 license;
29-12 (2) $1,000, for a gaming equipment distributor
29-13 license;
29-14 (3) $25, for a gaming employee license; or
29-15 (4) the amount set by commission rule for a license
29-16 category established by the commission.
29-17 (b) The amount of a license fee under Subsection (a)(4) of
29-18 this section must be reasonably related to the cost of
29-19 administering this article in relation to the license category.
29-20 Sec. 5.04. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICE
29-21 STAMP FEE. (a) In addition to other fees under this article,
29-22 there is imposed an activity stamp fee on each electronic or
29-23 electromechanical gaming device located in a riverboat casino.
29-24 (b) The annual fee for an electronic or electromechanical
29-25 gaming device stamp is $250.
29-26 (c) An electronic or electromechanical gaming device stamp
29-27 fee must be paid according to commission rule. The electronic or
30-1 electromechanical gaming device stamp must be affixed to the gaming
30-2 device according to commission rule.
30-3 (d) In this section, "electronic or electromechanical gaming
30-4 device" means gaming equipment that, on insertion of a coin,
30-5 currency, credit card, token, or similar object or on the payment
30-6 of any valuable consideration, is available to operate, the
30-7 operation of which, whether by reason of skill of the operator or
30-8 application of the element of chance, may deliver or entitle the
30-9 person operating the equipment to receive cash, premiums,
30-10 merchandise, tokens, or anything of value, whether the payoff is
30-11 made automatically from the equipment or in any other manner.
30-12 Sec. 5.05. GAMING TAX. (a) There is imposed a tax on the
30-13 annual adjusted gross revenue of gaming conducted under this
30-14 article.
30-15 (b) The rate of the tax imposed by this section is eight
30-16 percent of the adjusted gross revenue.
30-17 (c) The tax imposed by this section is payable by the
30-18 riverboat casino operator to the commission.
30-19 Sec. 5.06. ADJUSTED GROSS REVENUE. (a) For purposes of
30-20 this article, adjusted gross revenue of gaming is:
30-21 (1) the sum of:
30-22 (A) cash received as winnings by a riverboat
30-23 casino operator;
30-24 (B) cash received in payment for credit extended
30-25 by a riverboat casino operator to a passenger for purposes of
30-26 gaming; and
30-27 (C) compensation received for conducting a game
31-1 in which the riverboat casino operator is not party to a bet;
31-2 (2) less the sum of:
31-3 (A) cash paid out as losses to passengers; and
31-4 (B) amounts paid to purchase annuities to fund
31-5 losses paid to passengers over several years by independent
31-6 financial institutions.
31-7 (b) For purposes of this section:
31-8 (1) cash or compensation received by a riverboat
31-9 casino operator does not include:
31-10 (A) counterfeit money or tokens;
31-11 (B) coins of other countries received in gaming
31-12 equipment;
31-13 (C) cash received from a fraudulent act
31-14 perpetrated against a riverboat casino operator for which the
31-15 riverboat casino operator is not reimbursed; or
31-16 (D) cash received as an entry fee for a contest
31-17 or tournament in which passengers compete for prizes; and
31-18 (2) cash or the value of a noncash prize awarded to a
31-19 passenger in a contest or tournament is not a loss.
31-20 Sec. 5.07. ALLOCATION TO COMPULSIVE GAMBLING PROGRAM.
31-21 One-tenth of one percent of the tax imposed by Section 5.05 of this
31-22 article is allocated to the Texas Commission on Alcohol and Drug
31-23 Abuse for the commission's compulsive gambling program under
31-24 Section 461.018, Health and Safety Code, and its subsequent
31-25 amendments.
31-26 Sec. 5.08. ADMISSION FEE. (a) A riverboat casino operator
31-27 shall charge each passenger an admission fee for each excursion of
32-1 at least $4 if the riverboat operates in a municipality.
32-2 (b) A fee charged under Subsection (a) of this section is
32-3 allocated as follows:
32-4 (1) $1 is allocated to the municipality in which the
32-5 riverboat operates;
32-6 (2) 50 cents is allocated to the county in which the
32-7 riverboat operates;
32-8 (3) $1 is allocated to the Texas Department of
32-9 Commerce to promote tourism and economic development in this state;
32-10 (4) 50 cents is allocated to the state parks fund
32-11 established under Section 11.035, Parks and Wildlife Code, to be
32-12 used by the Parks and Wildlife Department for the purposes
32-13 prescribed by law;
32-14 (5) 50 cents is allocated to the local parks,
32-15 recreation, and open space fund established under Section 24.002,
32-16 Parks and Wildlife Code, to be used by the Parks and Wildlife
32-17 Department for the purposes prescribed by law;
32-18 (6) 50 cents is allocated to the Department of Public
32-19 Safety, to be used in enforcing this article; and
32-20 (7) the remainder, if any, is allocated to the
32-21 riverboat casino operator.
32-22 (c) A riverboat casino operator shall charge each passenger
32-23 an admission fee for each excursion of at least $3.50 if the
32-24 riverboat does not operate in a municipality.
32-25 (d) A fee charged under Subsection (c) of this section is
32-26 allocated as follows:
32-27 (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, and its subsequent
33-25 amendments, applies to the administration, collection, and
33-26 enforcement of the taxes authorized or imposed under this article
33-27 except as modified by this article. For purposes of the
34-1 application of that subtitle to the taxes authorized or imposed
34-2 under this article only, the powers and duties assigned to the
34-3 comptroller under that subtitle are assigned to the commission.
34-4 Sec. 5.10. DEPOSIT OF TAX. One-fourth of the tax collected
34-5 under this article shall be deposited to the credit of the
34-6 foundation school fund. Three-fourths of the tax collected under
34-7 this article shall be deposited to the credit of the general
34-8 revenue fund.
34-9 Sec. 5.11. LIMITATION ON ADDITIONAL FEES OR TAXES. A state
34-10 agency or political subdivision may not impose a fee or tax on
34-11 riverboat casino gaming activity that is not authorized by:
34-12 (1) Section 5.05 or 5.08 of this article; or
34-13 (2) the Tax Code.
34-14 CHAPTER 6. LOCAL OPTION ELECTION
34-15 Sec. 6.01. ORDERING ELECTION. The governing body of an
34-16 eligible political subdivision at any time may order and hold an
34-17 election to legalize riverboat casino gaming under this article in
34-18 the political subdivision. The governing body of an eligible
34-19 political subdivision shall order and hold an election to legalize
34-20 riverboat casino gaming under this article in the political
34-21 subdivision if the governing body is presented with a petition that
34-22 meets the requirements of Section 6.02 of this article and is
34-23 certified as valid under Section 6.03 of this article.
34-24 Sec. 6.02. PETITION. (a) A petition for a legalization
34-25 election must have a statement substantially as follows preceding
34-26 the space reserved for signatures on each page: "This petition is
34-27 to require that an election be held in (name of political
35-1 subdivision) to legalize casino gaming on riverboats operating in
35-2 (name of political subdivision) under Article 179h, Revised
35-3 Statutes."
35-4 (b) A petition is valid only if it is signed by registered
35-5 voters of the political subdivision in a number equal to or greater
35-6 than the lesser of:
35-7 (1) three percent of the number of votes cast for
35-8 governor by qualified voters of the political subdivision in the
35-9 most recent gubernatorial general election; or
35-10 (2) the number specified in the municipality's
35-11 charter, in an election to be held in a municipality.
35-12 (c) Each voter must enter beside the voter's signature the
35-13 date the voter signs the petition. A signature may not be counted
35-14 if the date of signing is earlier than the 90th day before the date
35-15 the petition is submitted to the governing body.
35-16 (d) Each voter must provide the voter's current voter
35-17 registration number, printed name, and residence address including
35-18 zip code.
35-19 Sec. 6.03. VERIFICATION OF PETITION. (a) Not later than
35-20 the fifth day after the date a petition for an election under this
35-21 article is received in the office of the governing body, the
35-22 governing body shall submit the petition for verification to the
35-23 municipal secretary or county clerk, as applicable.
35-24 (b) The officer to whom the petition is submitted for
35-25 verification shall determine whether the petition is signed by the
35-26 required number of registered voters of the political subdivision.
35-27 Not later than the 30th day after the date the petition is
36-1 submitted to the officer for verification, the officer shall
36-2 certify in writing to the governing body of the political
36-3 subdivision whether the petition is valid or invalid. If the
36-4 officer determines that the petition is invalid, the officer shall
36-5 state all reasons for that determination.
36-6 Sec. 6.04. DATE OF ELECTION. If the municipal secretary or
36-7 county clerk, as applicable, certifies that a petition is valid,
36-8 not later than the 30th day after the date of certification, the
36-9 governing body shall order that an election be held in the
36-10 municipality or county on the next uniform election date under
36-11 Section 41.001, Election Code, and its subsequent amendments, that
36-12 occurs after the 45th day after the date on which the governing
36-13 body orders the election. The governing body shall state in the
36-14 order the issue to be voted on. The municipal secretary or county
36-15 clerk shall notify the commission by certified mail, return receipt
36-16 requested, that an election has been ordered.
36-17 Sec. 6.05. BALLOT PROPOSITION. The ballot in a legalization
36-18 election shall be printed to provide for voting for or against the
36-19 proposition: "Legalizing casino gaming on riverboats within (name
36-20 of political subdivision) under Article 179h, Revised Statutes."
36-21 Sec. 6.06. RESULTS OF ELECTION. (a) If the majority of the
36-22 votes cast in a legalization election are for the legalization of
36-23 gaming on riverboats, gaming as authorized under this article is
36-24 permitted within the political subdivision holding the election
36-25 effective the 10th day after the date the election is canvassed.
36-26 (b) The governing body of a political subdivision in which a
36-27 legalization election has been held shall give written notice of
37-1 the results of the election to the commission not later than the
37-2 third day after the date the election is canvassed.
37-3 CHAPTER 7. OFFENSES; PENALTIES
37-4 Sec. 7.01. GAMING BY INDIVIDUAL UNDER 21 YEARS OF AGE. (a)
37-5 A person commits an offense if the person knowingly permits an
37-6 individual that the person knows is younger than 21 years of age to
37-7 participate in gaming. An offense under this subsection is a Class
37-8 A misdemeanor.
37-9 (b) An individual commits an offense if the individual
37-10 participates in gaming and the individual is younger than 21 years
37-11 of age at the time of participation. An offense under this
37-12 subsection is a Class C misdemeanor.
37-13 Sec. 7.02. FRAUD. (a) A person commits an offense if the
37-14 person knowingly:
37-15 (1) uses bogus or counterfeit chips, tokens, devices,
37-16 or coins during a game;
37-17 (2) uses or is in possession of any cheating device
37-18 designed to facilitate cheating in a game operated by a riverboat
37-19 casino license holder; or
37-20 (3) uses any fraudulent scheme or technique in a game
37-21 operated by a riverboat casino license holder.
37-22 (b) An offense under this section is a felony of the third
37-23 degree.
37-24 Sec. 7.03. REPORTING AND RECORD VIOLATIONS; PENALTY. (a) A
37-25 person commits an offense if the person, in a license application,
37-26 in a book or record required to be maintained by this article or a
37-27 rule adopted under this article, or in a report required to be
38-1 submitted by this article or a rule adopted under this article:
38-2 (1) knowingly makes a statement or entry that the
38-3 person knows to be false or misleading; or
38-4 (2) fails to maintain or make an entry the person
38-5 knows is required to be maintained or made.
38-6 (b) A person commits an offense if the person knowingly
38-7 refuses to produce for inspection by the executive director a book,
38-8 record, or document required to be maintained or made by this
38-9 article or a rule adopted under this article.
38-10 (c) An offense under this section is a Class A misdemeanor.
38-11 SECTION 4. The Texas Racing Act (Article 179e, Vernon's
38-12 Texas Civil Statutes) is amended by adding Article 19 to read as
38-13 follows:
38-14 ARTICLE 19. ELECTRONIC OR ELECTROMECHANICAL
38-15 GAMING DEVICES
38-16 Sec. 19.01. DEFINITION. In this article, "electronic or
38-17 electromechanical gaming device" has the meaning assigned by
38-18 Section 5.04, Article 179h, Revised Statutes, and its subsequent
38-19 amendments.
38-20 Sec. 19.02. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICES
38-21 PERMITTED AT CERTAIN RACETRACKS. An association that holds a class
38-22 1 horse racetrack license or a greyhound racetrack license may
38-23 install electronic or electromechanical gaming devices on the
38-24 premises of the racetrack in accordance with commission rules.
38-25 Sec. 19.03. RULES. The commission shall adopt rules
38-26 relating to electronic or electromechanical gaming devices. The
38-27 rules relating to the area in which the gaming devices may be
39-1 operated and the spacing of gaming devices must be consistent with
39-2 and may not be more stringent than rules adopted by the Texas
39-3 Riverboat Gaming Commission regarding electronic or
39-4 electromechanical gaming devices in riverboat casinos.
39-5 Sec. 19.04. FEES. (a) In addition to other fees under this
39-6 Act, there is imposed an activity stamp fee on each electronic or
39-7 electromechanical gaming device installed at a racetrack.
39-8 (b) The annual fee for an electronic or electromechanical
39-9 gaming device stamp is $250.
39-10 (c) An electronic or electromechanical gaming device stamp
39-11 fee must be paid according to commission rule. The electronic or
39-12 electromechanical gaming device stamp must be affixed to the gaming
39-13 device according to commission rule.
39-14 Sec. 19.05. TAX. (a) There is imposed a tax on the annual
39-15 adjusted gross revenue from electronic or electromechanical gaming
39-16 devices installed and operated at a racetrack under this article.
39-17 (b) The rate of the tax imposed by this section is eight
39-18 percent of the adjusted gross revenue.
39-19 (c) The tax is payable by the association to the
39-20 comptroller. For purposes of collecting the tax, the comptroller
39-21 has all powers granted by Article 4 and Section 6.10 of this Act
39-22 for collecting the state's share of a pari-mutuel pool.
39-23 (d) For purposes of the tax, adjusted gross revenue from
39-24 electronic or electromechanical gaming devices is the cash received
39-25 as winnings by an association, less the cash paid out as losses to
39-26 players. For purposes of this subsection, cash received by an
39-27 association does not include counterfeit money or tokens or coins
40-1 of other countries.
40-2 Sec. 19.06. DEPOSIT OF TAX. One-fourth of the tax collected
40-3 under this article shall be deposited to the credit of the
40-4 foundation school fund. Three-fourths of the tax collected under
40-5 this article shall be deposited to the credit of the general
40-6 revenue fund.
40-7 Sec. 19.07. MAXIMUM NUMBER OF GAMING DEVICES PER TRACK. An
40-8 association may not install more than 500 electronic or
40-9 electromechanical gaming devices.
40-10 Sec. 19.08. MANUFACTURE OR DISTRIBUTION WITHOUT LICENSE
40-11 PROHIBITED. (a) A person may not manufacture electronic or
40-12 electromechanical gaming devices unless the person holds a gaming
40-13 equipment manufacturer license under Article 179h, Revised
40-14 Statutes, and its subsequent amendments.
40-15 (b) A person may not distribute electronic or
40-16 electromechanical gaming devices unless the person holds a gaming
40-17 equipment distributor license under Article 179h, Revised Statutes,
40-18 and its subsequent amendments.
40-19 Sec. 19.09. EXEMPTION FROM FEDERAL LAW. Electronic or
40-20 electromechanical gaming devices operated or to be operated under
40-21 this article are exempted from 15 U.S.C. Section 1172, and its
40-22 subsequent amendments.
40-23 Sec. 19.10. OPERATION BY INDIVIDUAL UNDER 21 YEARS OF AGE.
40-24 (a) A person commits an offense if the person knowingly permits an
40-25 individual that the person knows is younger than 21 years of age to
40-26 operate an electronic or electromechanical gaming device. An
40-27 offense under this subsection is a Class A misdemeanor.
41-1 (b) An individual commits an offense if the individual
41-2 operates an electronic or electromechanical gaming device and the
41-3 individual is younger than 21 years of age at the time of
41-4 operation. An offense under this subsection is a Class C
41-5 misdemeanor.
41-6 Sec. 19.11. PROHIBITION ON LOTTERIES AND GIFT ENTERPRISES.
41-7 (a) A lottery or gift enterprise may not be conducted at a
41-8 racetrack.
41-9 (b) In this section, "lottery" and "gift enterprise" have
41-10 the meanings assigned by Section 1.01, Article 179h, Revised
41-11 Statutes, and its subsequent amendments.
41-12 SECTION 5. Section 47.02(c), Penal Code, is amended to read
41-13 as follows:
41-14 (c) It is a defense to prosecution under this section that
41-15 the actor reasonably believed that the conduct:
41-16 (1) was permitted under the Bingo Enabling Act
41-17 (Article 179d, Vernon's Texas Civil Statutes);
41-18 (2) was permitted under the Charitable Raffle Enabling
41-19 Act (Article 179f, Revised Statutes, as added by Chapter 957, Acts
41-20 of the 71st Legislature, Regular Session, 1989); <or>
41-21 (3) consisted entirely of participation in the state
41-22 lottery authorized by the State Lottery Act (Article 179g, Vernon's
41-23 Texas Civil Statutes); or
41-24 (4) was permitted under Article 179h, Revised
41-25 Statutes.
41-26 SECTION 6. Section 47.06, Penal Code, is amended by adding
41-27 Subsection (h) to read as follows:
42-1 (h) It is a defense to prosecution for an offense under this
42-2 section that the conduct was permitted under the Texas Racing Act
42-3 (Article 179e, Vernon's Texas Civil Statutes) or Article 179h,
42-4 Revised Statutes.
42-5 SECTION 7. Section 47.11, Penal Code, is amended to read as
42-6 follows:
42-7 Sec. 47.11. CONDUCT PERMITTED UNDER TEXAS RACING ACT
42-8 <PARI-MUTUEL WAGERING ON CERTAIN RACES>. It is a defense to
42-9 prosecution for an offense under this chapter that the conduct was
42-10 authorized under the Texas Racing Act (Article 179e, Vernon's Texas
42-11 Civil Statutes).
42-12 SECTION 8. Chapter 47, Penal Code, is amended by adding
42-13 Section 47.15 to read as follows:
42-14 Sec. 47.15. RIVERBOAT GAMING. It is a defense to
42-15 prosecution for an offense under this chapter that the conduct was
42-16 permitted under Article 179h, Revised Statutes.
42-17 SECTION 9. Subchapter H, Chapter 151, Tax Code, is amended
42-18 by adding Section 151.350 to read as follows:
42-19 Sec. 151.350. RIVERBOAT CASINO ADMISSION FEES. An admission
42-20 fee charged by a riverboat casino operator under Section 5.08,
42-21 Article 179h, Revised Statutes, is exempt from the taxes imposed by
42-22 this chapter.
42-23 SECTION 10. Article 8803, Revised Statutes, is amended to
42-24 read as follows:
42-25 Art. 8803. Exemptions from tax. (a) Gas meters, pay
42-26 telephones, pay toilets, food vending machines, confection vending
42-27 machines, beverage vending machines, merchandise vending machines,
43-1 and cigarette vending machines which are now subject to an
43-2 occupation or gross receipts tax, stamp vending machines, and
43-3 "service coin-operated machines," as that term is defined, are
43-4 expressly exempt from the tax levied herein, and the other
43-5 provisions of this Chapter.
43-6 (b) An electronic or electromechanical gaming device
43-7 permitted under Article 19, Texas Racing Act (Article 179e,
43-8 Vernon's Texas Civil Statutes), or Article 179h, Revised Statutes,
43-9 or any subsequent amendments, is exempt from the tax imposed by
43-10 this Chapter and from the other provisions of this Chapter.
43-11 SECTION 11. Section 2(5)(A), Chapter 421, Acts of the 63rd
43-12 Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's Texas
43-13 Civil Statutes), is amended to read as follows:
43-14 (A) "Appointed officer of a major state agency"
43-15 means any of the following:
43-16 (i) a member of the Public Utility
43-17 Commission of Texas;
43-18 (ii) a member of the Texas Department of
43-19 Commerce;
43-20 (iii) a member of the Texas Board of
43-21 Aviation;
43-22 (iv) a member of the Texas Air Control
43-23 Board;
43-24 (v) a member of the Texas Alcoholic
43-25 Beverage Commission;
43-26 (vi) a member of the Finance Commission of
43-27 Texas;
44-1 (vii) a member of the <State Purchasing
44-2 and> General Services Commission;
44-3 (viii) a member of the Texas Board of
44-4 Criminal Justice;
44-5 (ix) a member of the Board of Trustees of
44-6 the Employees Retirement System of Texas;
44-7 (x) a member of the State Highway and
44-8 Public Transportation Commission;
44-9 (xi) a member of the Texas Workers'
44-10 Compensation Commission;
44-11 (xii) a member of the State Board of
44-12 Insurance;
44-13 (xiii) a member of the Parks and Wildlife
44-14 Commission;
44-15 (xiv) a member of the Public Safety
44-16 Commission;
44-17 (xv) the Secretary of State;
44-18 (xvi) a member of the State Securities
44-19 Board;
44-20 (xvii) a member of the Texas Amusement
44-21 Machine Commission;
44-22 (xviii) a member of the Texas Water
44-23 Development Board;
44-24 (xix) a member of the Texas Water
44-25 Commission;
44-26 (xx) a member of the governing board of a
44-27 state senior college or university as defined by Section 61.003,
45-1 Education Code, including The University of Texas at Arlington; The
45-2 University of Texas at Austin; The University of Texas at Dallas;
45-3 The University of Texas at El Paso; The University of Texas--Pan
45-4 American; The University of Texas--Pan American--Brownsville; The
45-5 University of Texas of the Permian Basin; The University of Texas
45-6 at San Antonio; The University of Texas at Tyler; The University of
45-7 Texas Southwestern Medical Center at Dallas; The University of
45-8 Texas Medical Branch at Galveston; The University of Texas Health
45-9 Science Center at Houston; The University of Texas Health Science
45-10 Center at San Antonio; The University of Texas System Cancer
45-11 Center; The University of Texas Health Science Center at Tyler;
45-12 Texas A&M University; Texas A&M University at Galveston; Prairie
45-13 View A&M University; Tarleton State University; Corpus Christi
45-14 State University; Texas A&I University; Laredo State University;
45-15 East Texas State University; East Texas State University at
45-16 Texarkana; University of Houston; University of Houston--Clear
45-17 Lake; University of Houston--Downtown; University of
45-18 Houston--Victoria; Lamar University at Beaumont; Lamar University
45-19 at Orange; Lamar University at Port Arthur; Midwestern State
45-20 University; University of North Texas; Texas College of Osteopathic
45-21 Medicine; Stephen F. Austin State University; Texas Southern
45-22 University; Texas Tech University; Texas Tech University Health
45-23 Sciences Center; Texas Woman's University; West Texas State
45-24 University; Angelo State University; Sam Houston State University;
45-25 Southwest Texas State University; Sul Ross State University; Sul
45-26 Ross State University--Uvalde Center; Texas State Technical
45-27 Institute--Amarillo; Texas State Technical Institute--Harlingen;
46-1 Texas State Technical Institute--Sweetwater; and Texas State
46-2 Technical Institute--Waco;
46-3 (xxi) a member of the Texas Higher
46-4 Education Coordinating Board;
46-5 (xxii) a member of the Texas Employment
46-6 Commission;
46-7 (xxiii) a member of the State Banking
46-8 Board;
46-9 (xxiv) a member of the board of trustees
46-10 of the Teachers Retirement System of Texas;
46-11 (xxv) a member of the Credit Union
46-12 Commission;
46-13 (xxvi) a member of the School Land Board;
46-14 (xxvii) a member of the board of the Texas
46-15 Department of Housing and Community Affairs;
46-16 (xxviii) a member of the Texas Racing
46-17 Commission;
46-18 (xxix) a member of the State Board of
46-19 Dental Examiners;
46-20 (xxx) a member of the Texas Board of
46-21 Licensure for Nursing Home Administrators;
46-22 (xxxi) a member of the Texas State Board
46-23 of Medical Examiners;
46-24 (xxxii) a member of the Board of Pardons
46-25 and Paroles;
46-26 (xxxiii) a member of the Texas State Board
46-27 of Pharmacy;
47-1 (xxxiv) the Banking Commissioner of the
47-2 Banking Department of Texas;
47-3 (xxxv) a member of the Department of
47-4 Information Resources Governing Board;
47-5 (xxxvi) the fire fighters' pension
47-6 commissioner;
47-7 (xxxvii) a member of the Texas Motor
47-8 Vehicle Commission;
47-9 (xxxviii) the director of the Office of
47-10 Court Administration of the Texas Judicial System;
47-11 (xxxix) the chief executive of the Office
47-12 of Public Utility Counsel;
47-13 (xl) a member of the Texas Real Estate
47-14 Commission;
47-15 (xli) a member of the board of directors
47-16 and the executive director of the State Bar of Texas;
47-17 (xlii) a member of the Bond Review Board;
47-18 (xliii) a member of the Texas Board of
47-19 Health;
47-20 (xliv) a member of the Texas Board of
47-21 Mental Health and Mental Retardation;
47-22 (xlv) a member of the Texas Board on
47-23 Aging;
47-24 (xlvi) a member of the Texas Board of
47-25 Human Services;
47-26 (xlvii) a member of the Texas Funeral
47-27 Service Commission;
48-1 (xlviii) a member of the board of
48-2 directors of a river authority created under the constitution or
48-3 laws of this state;
48-4 (xlix) the director of the lottery
48-5 division in the office of the comptroller; <or>
48-6 (l) the deputy in charge of the department
48-7 of security in the lottery division in the office of the
48-8 comptroller; or
48-9 (li) a member of the Texas Riverboat
48-10 Gaming Commission.
48-11 SECTION 12. In making the initial appointments to the Texas
48-12 Riverboat Gaming Commission, the governor shall designate two
48-13 members for terms expiring in 1995, two members for terms expiring
48-14 in 1997, and two members for terms expiring in 1999.
48-15 SECTION 13. This Act takes effect and the Texas Riverboat
48-16 Gaming Commission is created on September 1, 1993.
48-17 SECTION 14. The importance of this legislation and the
48-18 crowded condition of the calendars in both houses create an
48-19 emergency and an imperative public necessity that the
48-20 constitutional rule requiring bills to be read on three several
48-21 days in each house be suspended, and this rule is hereby suspended.