By: Ellis S.B. No. 1217
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of riverboat casino gaming; the
1-2 creation, powers, and duties of the Texas Riverboat Gaming
1-3 Commission; the installation of certain gaming devices at certain
1-4 licensed racetracks; authorizing certain taxes; providing
1-5 penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Title 6, Revised Statutes, is amended by adding
1-8 Article 179h to read as follows:
1-9 Art. 179h. RIVERBOAT GAMING
1-10 CHAPTER 1. SHORT TITLE, PUBLIC POLICY AND CONSTRUCTION OF ACT
1-11 Sec. 1.01. SHORT TITLE. This Article shall be known and may
1-12 be cited as the "Texas Riverboat Economic Development and Gaming
1-13 Control Act."
1-14 Sec. 1.02. PUBLIC POLICY
1-15 (1) The legislature hereby finds and declares to be
1-16 the public policy of this state that:
1-17 (a) The development of the historic riverboat industry is
1-18 important to the economy of the State of Texas in that it will
1-19 assist in the continuing growth of the tourism industry and, thus,
1-20 will benefit the general welfare of our citizens and create new
1-21 jobs. It is the intent of this Act to utilize Texas resources,
1-22 goods, and services in the operation and construction of riverboats
1-23 to the extent allowable by law.
2-1 (b) An integral part of riverboat operations and
2-2 profitability is the offering of regulated gaming, among other
2-3 activities.
2-4 (c) The nature of the riverboat industry is such that the
2-5 operation of riverboats on the waters of the State of Texas while
2-6 allowing certain gaming activities will result in many benefits to
2-7 this state with no significant detriment to the citizens of this
2-8 state.
2-9 (d) Riverboats that operate certain limited duration
2-10 excursions and conduct gaming activities thereon shall be licensed
2-11 and supervised through the period of construction of the vessel
2-12 continuing through to the operation of the vessel, and
2-13 gaming-related employees of those riverboats, gaming operators, and
2-14 manufacturers, suppliers, and distributors of gaming equipment
2-15 shall be regulated, licensed, and controlled to accomplish and
2-16 promote the above public policies while protecting the public
2-17 health, safety, and morals, good order, and general welfare of our
2-18 citizens.
2-19 (2) It is the express intent, desire, and policy of
2-20 the legislature that a gaming operator or applicant for a license
2-21 or permit issued as a result of this Act does not have any right of
2-22 action to obtain any license, permit, or approval sought except as
2-23 provided for and authorized by this Act. Any license, permit, or
2-24 approval obtained or issued under this Act is expressly declared by
2-25 the legislature to be a pure and absolute revocable privilege, and
3-1 not a right, property or otherwise, under the Constitutions of the
3-2 United States or this state. The legislature declares that a
3-3 holder of any license or permit does not acquire any vested
3-4 interest or right in or under the license or permit.
3-5 Sec. 1.03. CONSTRUCTION OF ACT AND LEGISLATIVE FINDINGS AND
3-6 DECLARATIONS. (a) This Act may not be construed to legalize any
3-7 form of gambling that is prohibited under the Texas Constitution or
3-8 the laws of this state. All legal gaming which is conducted in
3-9 this state and which is otherwise authorized by law shall be
3-10 regulated and licensed under the provisions of this Act unless the
3-11 legislature specifically provides otherwise. Nothing in this Act
3-12 may be construed as encouraging the legalization of gambling in
3-13 this state.
3-14 (b) The legislature finds that lotteries and gaming both
3-15 consist of the material element of chance. The legislature is
3-16 directed by Article III, Sec. 47 of the Texas Constitution to
3-17 prohibit "lotteries and gift enterprises" other than those
3-18 authorized by Subsections (b), (d), and (e) of that section. The
3-19 legislature is permitted by virtue of its inherent powers to
3-20 legislate on gaming as the occasion arises. The legislature
3-21 derives its power to legislate on gaming from its inherent
3-22 authority over the morals and policy of the people and that power
3-23 may not be considered to conflict with the constitutional
3-24 obligation to prohibit lotteries and gift enterprises.
3-25 (c) The legislature declares it to be the public policy of
4-1 this state that:
4-2 (1) regulation of licensed gaming is important in
4-3 order that licensed gaming is conducted honestly and competitively,
4-4 that the rights of the creditors of license holders are protected,
4-5 and that gaming is free from criminal and corruptive elements;
4-6 (2) public confidence and trust can only be maintained
4-7 by strict regulation of all persons, locations, practices,
4-8 associations, and activities related to the operation of licensed
4-9 gaming establishments and the manufacture or distribution of gaming
4-10 equipment; and
4-11 (3) all establishments where gaming is conducted and
4-12 where gaming equipment is operated, and manufacturers, sellers and
4-13 distributors of certain gaming equipment must be licensed,
4-14 controlled, and assisted to protect the public health, safety,
4-15 morals, good order, and general welfare of our citizens.
4-16 (d) The legislature intends that gaming license holders, to
4-17 the extent practicable, employ residents of Texas as gaming
4-18 employees and other employees in the operation of their gaming
4-19 establishments located in this state.
4-20 (e) The legislature recognizes that Article III, Sec. 47 of
4-21 the Texas Constitution directs the legislature to "pass laws
4-22 prohibiting lotteries and gift enterprises in this state other than
4-23 those authorized by Subsections (b), (d) and (e) of this section."
4-24 The legislature finds that although Article III, Sec. 47 does not
4-25 define the meaning of the term "lotteries and gift enterprises,"
5-1 that section clearly contemplates, as indicated by specific
5-2 language contained within its predecessor, that a lottery or gift
5-3 enterprise involves the sale of tickets and a drawing in order to
5-4 determine the winner. Therefore, in carrying out its duties under
5-5 the Constitution and effectuating the intent of Article III, Sec.
5-6 47, the legislature finds that a lottery or gift enterprise as
5-7 prohibited by the Constitution does not include all forms of
5-8 gambling, but means an activity defined in Section 2.01(13) of this
5-9 Act.
5-10 CHAPTER 2. GENERAL PROVISIONS
5-11 Sec. 2.01. DEFINITIONS. In this article:
5-12 (1) "Casino space" means that portion of a riverboat
5-13 in which gaming may be conducted.
5-14 (2) "Commission" means the Texas Riverboat Gaming
5-15 Commission.
5-16 (3) "Eligible political subdivision" means:
5-17 (A) a municipality located wholly or in part in
5-18 a county described by Section 5.10 of this article; or
5-19 (B) a county described by Section 5.10 of this
5-20 article.
5-21 (4) "Executive director" means the executive director
5-22 of the commission.
5-23 (5) "Game" means an amusement or competition involving
5-24 skill or chance, or both, played with cards, dice, equipment, or
5-25 any device for money, property, checks, credit, or any
6-1 representative of value, including the amusements or competitions
6-2 commonly known as faro, monte, roulette, keno, fan-tan, twenty-one,
6-3 blackjack, seven-and-a-half, big injun, klondike, craps, poker,
6-4 chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
6-5 chemin de fer, baccarat, pai gow, beat the banker, and panguingui.
6-6 The term includes a game played by operating a slot machine and any
6-7 banking or percentage game. The term does not include:
6-8 (A) pari-mutuel wagering on the outcome of
6-9 greyhound or horse racing or the operation of electronic or
6-10 electromechanical gaming devices at a racetrack, as authorized by
6-11 the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
6-12 and its subsequent amendments;
6-13 (B) bingo, as authorized by the Bingo Enabling
6-14 Act (Article 179d, Vernon's Texas Civil Statutes) and its
6-15 subsequent amendments;
6-16 (C) charitable raffles, as authorized by the
6-17 Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
6-18 added by Chapter 957, Acts of the 71st Legislature, Regular
6-19 Session, 1989) and its subsequent amendments;
6-20 (D) the state lottery, as authorized by the
6-21 State Lottery Act (Article 179g, Vernon's Texas Civil Statutes) and
6-22 its subsequent amendments;
6-23 (E) a lottery or gift enterprise; or
6-24 (F) wagering on the outcome of a sports event or
6-25 activity.
7-1 (6) "Gaming" or "gaming activity" means the dealing,
7-2 operation, carrying on, conducting, or maintaining a game or the
7-3 exposing for play of a game.
7-4 (7) "Gaming employee" means any individual connected
7-5 directly with the operation of a gaming activity on a riverboat
7-6 casino. The term does not include a bartender, cocktail waitress,
7-7 or other individual engaged exclusively in preparing or serving
7-8 food or beverages on a riverboat casino or an individual engaged
7-9 exclusively in the operation or maintenance of the vessel. The
7-10 terms includes:
7-11 (A) boxmen;
7-12 (B) cashiers;
7-13 (C) change personnel;
7-14 (D) counting room personnel;
7-15 (E) dealers;
7-16 (F) floormen;
7-17 (G) hosts empowered to extend credit or
7-18 complimentary services;
7-19 (H) keno runners;
7-20 (I) keno writers;
7-21 (J) machine mechanics;
7-22 (K) security personnel;
7-23 (L) shift or pit bosses;
7-24 (M) shills;
7-25 (N) supervisors or managers involved in gaming
8-1 activities;
8-2 (O) ticket writers;
8-3 (P) accounting or internal auditing personnel
8-4 directly involved in record keeping or the examination of records
8-5 generated from gaming activities; and
8-6 (Q) individuals who promote junkets.
8-7 (8) "Gaming equipment" means any object or mechanical,
8-8 electromechanical, or electronic contrivance or machine used in
8-9 connection with a gaming activity or a game.
8-10 (9) "Gaming equipment distributor" means a person who
8-11 sells or leases gaming equipment to a riverboat casino operator for
8-12 use in games authorized by this article.
8-13 (10) "Gaming equipment manufacturer" means a person
8-14 who designs, assembles, constructs, or otherwise prepares gaming
8-15 equipment or a component part of gaming equipment for sale to a
8-16 gaming equipment distributor.
8-17 (11) "Governing body" means:
8-18 (A) the city council or other chief legislative
8-19 body, with regard to a municipality; or
8-20 (B) the commissioners court, with regard to a
8-21 county.
8-22 (12) "License holder" means a person who holds a
8-23 license issued under this Article.
8-24 (13) "Lottery" or "gift enterprise" means any activity
8-25 in which:
9-1 (A) the player or players pay or agree to pay
9-2 something of value for chances, represented and differentiated by
9-3 tickets, slips of paper or other physical or tangible documentation
9-4 upon which appear numbers, symbols, characters or other distinctive
9-5 marks used to identify and designate the winner or winners; and
9-6 (B) the winning chance or chances are determined
9-7 by a drawing or similar selection method based predominantly upon
9-8 the element of chance or random selection rather than upon the
9-9 skill or judgment of the player or players; and
9-10 (C) the holder or holders of the winning chance
9-11 or chances are to receive a prize or something of valuable
9-12 consideration; and
9-13 (D) the activity is conducted and participated
9-14 in without regard to geographical location, with the player or
9-15 players not being required to be present upon any particular
9-16 premises or at any particular location in order to participate or
9-17 to win.
9-18 (14) "Passenger" means an individual aboard a
9-19 riverboat who is not:
9-20 (A) an employee of the riverboat casino
9-21 operator; or
9-22 (B) a government officer or employee acting in
9-23 an official capacity.
9-24 (15) "Person" includes a corporation, organization,
9-25 business trust, estate, trust, partnership, association, and any
10-1 other legal entity.
10-2 (16) "Political subdivision" means a municipality or
10-3 county.
10-4 (17) "Riverboat casino operator" means a person who
10-5 operates or conducts gaming activities aboard a riverboat.
10-6 Sec. 2.02. GAMING AUTHORIZED. (a) Gaming and participation
10-7 in gaming on a riverboat for which a riverboat casino operator
10-8 license is issued under this article are permitted in:
10-9 (1) an eligible political subdivision in which a
10-10 successful legalization election has been held under Chapter 7 of
10-11 this article; and
10-12 (2) state waters contiguous to a political subdivision
10-13 described in Subdivision (1) of this subsection.
10-14 (b) A riverboat casino operator may not conduct a lottery or
10-15 gift enterprise.
10-16 Sec. 2.03. EXEMPTION FROM FEDERAL LAW. A political
10-17 subdivision holding a legalization election and approving gaming
10-18 under this article is exempt from the provisions of 15 U.S.C.
10-19 Section 1172 relating to gambling devices transported into the
10-20 political subdivision for use on a riverboat in the political
10-21 subdivision.
10-22 Sec. 2.04. APPLICATION OF SUNSET ACT. The commission is
10-23 subject to Chapter 325, Government Code (Texas Sunset Act), and its
10-24 subsequent amendments. Unless continued in existence as provided
10-25 by that chapter, the commission is abolished and this article
11-1 expires September 1, 2005.
11-2 CHAPTER 3. TEXAS RIVERBOAT GAMING COMMISSION
11-3 Sec. 3.01. COMMISSION. (a) The Texas Riverboat Gaming
11-4 Commission is composed of seven members. Six members are appointed
11-5 by the governor with the advice and consent of the senate. The
11-6 public safety director of the Public Safety Commission is an ex
11-7 officio member and has the right to vote.
11-8 (b) In making appointments to the commission, the governor
11-9 shall attempt to achieve representation of all the population
11-10 groups of the state with regard to economic status, sex, race, or
11-11 ethnicity.
11-12 Sec. 3.02. ELIGIBILITY. To be eligible for appointment to
11-13 the commission, an individual:
11-14 (1) must be a citizen of the United States;
11-15 (2) must have resided in this state for the two years
11-16 preceding the date of the person's appointment;
11-17 (3) must submit a financial statement that contains
11-18 the information required by Section 4(c), Chapter 421, Acts of the
11-19 63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's
11-20 Texas Civil Statutes) and its subsequent amendments;
11-21 (4) may not own any financial interest in riverboat
11-22 gaming or its operation or be related within the second degree by
11-23 affinity or the third degree by consanguinity, as determined under
11-24 Article 5996h, Revised Statutes, and its subsequent amendments, to
11-25 an individual who owns any financial interest in riverboat gaming
12-1 or its operation;
12-2 (5) may not be a license holder; and
12-3 (6) may not be a member of the governing body of an
12-4 eligible political subdivision.
12-5 Sec. 3.03. PROHIBITED ACTIVITY. (a) An appointed member of
12-6 the commission may not:
12-7 (1) use the member's official authority to affect the
12-8 result of an election or nomination for public office; or
12-9 (2) directly or indirectly coerce, attempt to coerce,
12-10 command, or advise a person to pay, lend, or contribute anything of
12-11 value to another person for political purposes.
12-12 (b) A commission member or former commission member or the
12-13 spouse of a commission member or former commission member may not
12-14 solicit or accept employment from a license holder or an applicant
12-15 for a license under this Article before the second anniversary of
12-16 the date on which the commission member's service on the commission
12-17 ends.
12-18 Sec. 3.04. TERMS. Appointed members of the commission hold
12-19 office for staggered terms of six years. Two members' terms expire
12-20 February 1 of each odd-numbered year.
12-21 Sec. 3.05. BOND. (a) Before entering the duties of office,
12-22 an appointed member of the commission must execute a bond that is:
12-23 (1) payable to the state;
12-24 (2) in the amount of $25,000; and
12-25 (3) conditioned that the member will faithfully
13-1 perform the duties of office.
13-2 (b) The bond must be approved by the governor.
13-3 Sec. 3.06. PRESIDING OFFICER. The governor shall designate
13-4 one member to serve as presiding officer for a term of two years.
13-5 Sec. 3.07. REMOVAL OF APPOINTED COMMISSION MEMBERS. (a) It
13-6 is a ground for removal from the commission if an appointed member:
13-7 (1) does not have at the time of appointment the
13-8 qualifications required for appointment to the commission;
13-9 (2) does not maintain during service on the commission
13-10 the qualifications required for appointment to the commission;
13-11 (3) violates a prohibition established by Section 3.03
13-12 of this article;
13-13 (4) cannot discharge the member's duties for a
13-14 substantial part of the term for which the member is appointed
13-15 because of illness or disability; or
13-16 (5) is absent from more than half of the regularly
13-17 scheduled commission meetings that the member is eligible to attend
13-18 during a calendar year unless the absence is excused by majority
13-19 vote of the commission.
13-20 (b) The validity of an action of the commission is not
13-21 affected by the fact that it is taken when a ground for removal of
13-22 a commission member exists.
13-23 (c) If the presiding officer has knowledge that a potential
13-24 ground for removal exists, the presiding officer shall notify the
13-25 governor.
14-1 Sec. 3.08. COMPENSATION. (a) An appointed member of the
14-2 commission is entitled to receive compensation of $1,500 per month
14-3 for serving on the commission.
14-4 (b) An appointed member is entitled to reimbursement for
14-5 actual and necessary expenses incurred in performing functions as a
14-6 member of the commission, subject to any applicable limitation on
14-7 reimbursement provided by the General Appropriations Act.
14-8 (c) The public safety director of the Public Safety
14-9 Commission is entitled to reimbursement for actual and necessary
14-10 expenses incurred in performing functions as a member of the Texas
14-11 Riverboat Gaming Commission. Reimbursement shall be from the
14-12 Public Safety Commission as provided by law for expenses incurred
14-13 in the performance of other official duties.
14-14 Sec. 3.09. OFFICES. The commission shall maintain its
14-15 general office in the City of Austin. The commission may establish
14-16 branch offices within this state.
14-17 Sec. 3.10. MEETINGS. (a) The commission shall meet at
14-18 least six times in each calendar year.
14-19 (b) The commission may meet at other times at the call of
14-20 the presiding officer or as provided by commission rule.
14-21 Sec. 3.11. EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
14-22 commission shall employ an executive director and other employees
14-23 as necessary to administer this article.
14-24 (b) The executive director shall keep the records of the
14-25 commission and shall perform duties as assigned by the commission
15-1 or specified by law.
15-2 (c) An executive director, former executive director,
15-3 employee of the commission, or former employee of the commission
15-4 may not solicit or accept employment from a license holder or an
15-5 applicant for a license under this article before the first
15-6 anniversary of the date on which the individual's employment with
15-7 the commission ends.
15-8 Sec. 3.12. AUDIT. The transactions of the commission are
15-9 subject to audit by the state auditor in accordance with Chapter
15-10 321, Government Code and its subsequent amendments.
15-11 Sec. 3.13. LEGAL REPRESENTATION. (a) The attorney general
15-12 shall designate at least one assistant attorney general to advise
15-13 the commission and represent the commission in legal proceedings.
15-14 (b) The attorney general shall make available to the
15-15 appropriate prosecuting attorney information obtained regarding a
15-16 possible violation of this article.
15-17 (c) The attorney general may apply for injunctive or
15-18 declaratory relief to enforce this article or a rule adopted by the
15-19 commission. Action by the attorney general under this subsection
15-20 does not limit the authority of the attorney general or a
15-21 prosecuting attorney to bring a criminal proceeding.
15-22 Sec. 3.14. CONFIDENTIAL INFORMATION. (a) The contents of
15-23 investigatory files of the commission are confidential except in a
15-24 criminal proceeding.
15-25 (b) The following information is confidential and exempt
16-1 from disclosure under the open records law, Chapter 424, Acts of
16-2 the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
16-3 Vernon's Texas Civil Statutes), and its subsequent amendments:
16-4 (1) information required by the commission to be
16-5 furnished or otherwise obtained by the commission that relates to
16-6 the finances, earnings, or revenue of an applicant or license
16-7 holder;
16-8 (2) information relating to the criminal record of an
16-9 applicant or license holder; and
16-10 (3) information provided to the commission or an
16-11 employee of the commission on the condition that the information
16-12 remain confidential.
16-13 (c) Information obtained from a gaming equipment
16-14 manufacturer, gaming equipment distributor, or riverboat casino
16-15 operator that relates to the manufacture of a gaming device is
16-16 confidential and may be released only:
16-17 (1) in the necessary administration of this article;
16-18 (2) on order of a court of competent jurisdiction; or
16-19 (3) to a governmental agency as provided by commission
16-20 rule.
16-21 CHAPTER 4. POWERS AND DUTIES OF COMMISSION
16-22 Sec. 4.01. CONTROL AND SUPERVISION. The commission shall
16-23 administer this Article. The commission has broad authority and
16-24 shall exercise strict control and close supervision over all gaming
16-25 activity to ensure that games are conducted fairly and in
17-1 compliance with the law.
17-2 Sec. 4.02. POWER OF ENTRY. (a) An authorized agent of the
17-3 commission or a person designated by an authorized agent of the
17-4 commission, after providing proper identification, may:
17-5 (1) enter the office, vessel, or other place of
17-6 business of a license holder to enforce and administer this
17-7 article;
17-8 (2) inspect, examine, and photocopy or remove and
17-9 impound all papers, books, and records of a license holder that
17-10 relate to activities regulated by this article;
17-11 (3) require verification of income from activities
17-12 regulated by this article; and
17-13 (4) seize and remove from the premises and impound any
17-14 gaming equipment or supplies for inspection and examination.
17-15 (b) Any item impounded under Subsection (a) of this section
17-16 must be returned to the license holder in substantially the same
17-17 condition as when impounded. An impounded item shall be promptly
17-18 returned following the commission's inspection or examination.
17-19 Sec. 4.03. RULES. The commission shall adopt rules relating
17-20 to:
17-21 (1) the transaction of commission business;
17-22 (2) the conduct and operation of gaming;
17-23 (3) the investigation of alleged violations of this
17-24 article or a rule adopted under this article;
17-25 (4) the investigation of complaints from citizens
18-1 regarding riverboat gaming;
18-2 (5) the issuance, revocation, and suspension of
18-3 licenses under this article;
18-4 (6) the records a license holder is required to
18-5 maintain under Section 5.13 of this article;
18-6 (7) the inspection and examination without notice of
18-7 premises where gaming is conducted or where gaming equipment is
18-8 located, sold, distributed, or stored;
18-9 (8) the seizure and removal without notice or hearing
18-10 of any gaming equipment for examination and inspection;
18-11 (9) the reporting by a riverboat casino operator
18-12 license holder of the number and types of gaming activities
18-13 conducted or to be conducted on a riverboat;
18-14 (10) the maintenance of gaming equipment;
18-15 (11) the granting of a license with special conditions
18-16 or for a limited period;
18-17 (12) the establishment of other categories of licenses
18-18 not established under this article;
18-19 (13) the ejection or exclusion from a riverboat of an
18-20 individual:
18-21 (A) who has violated this article, a rule
18-22 adopted under this article, or a final order of the commission; or
18-23 (B) whose conduct or reputation is such that the
18-24 individual's presence on the riverboat, in the commission's
18-25 opinion, calls into question the honesty and integrity of the
19-1 gaming activities or interferes with the orderly conduct of gaming
19-2 activities;
19-3 (14) the manner in which an individual who has been
19-4 ejected or excluded from a riverboat may request and obtain a
19-5 hearing before the commission;
19-6 (15) the geographic boundaries and routes of operation
19-7 for riverboat gaming activities; and
19-8 (16) any other matter necessary for the administration
19-9 and enforcement of this article.
19-10 Sec. 4.04. APPROVAL OF RULES FOR CERTAIN GAMES. The
19-11 commission shall adopt specific rules for blackjack and poker. A
19-12 riverboat casino operator shall post the applicable rules within
19-13 plain view of any table at which blackjack or poker is played.
19-14 CHAPTER 5. LICENSES
19-15 Sec. 5.01. LICENSE REQUIRED. (a) A person may not act as a
19-16 gaming equipment manufacturer, gaming equipment distributor, or
19-17 riverboat casino operator unless the person holds an appropriate
19-18 license issued under this article.
19-19 (b) A person may not be employed as a gaming employee unless
19-20 the person holds an appropriate license issued under this article.
19-21 (c) A person may not conduct other gaming activities for
19-22 which the commission by rule requires a license unless the person
19-23 holds an appropriate license issued under this article.
19-24 (d) A riverboat casino operator must hold a separate license
19-25 for each location from which the riverboat casino operator operates
20-1 a riverboat.
20-2 Sec. 5.02. ISSUANCE; TERM; RENEWAL. (a) The commission
20-3 shall issue a license to a qualified person on application, payment
20-4 of the applicable fee, and execution of the applicable bond.
20-5 (b) Before issuing a riverboat casino operator license, the
20-6 commission, in accordance with its rules, shall consider the
20-7 applicant's location and economic commitment, the level of local
20-8 support for the proposed riverboat casino, and other factors
20-9 considered necessary to protect the public.
20-10 (c) The commission may not issue a riverboat casino operator
20-11 license unless the governing body of the political subdivision in
20-12 which the riverboat is to be operated certifies in writing to the
20-13 secretary of state that a successful legalization election was held
20-14 under Chapter 7 of this article.
20-15 (d) An original or renewal license expires on the first
20-16 anniversary of the date it is issued.
20-17 (e) A license holder may renew an unexpired license annually
20-18 by paying to the commission a fee not to exceed the lesser of:
20-19 (1) $50,000; or
20-20 (2) an amount equal to the amount of an original
20-21 license fee for the license for the period of the renewal.
20-22 Sec. 5.03. APPLICATION; FORM; CERTIFICATE. (a) An
20-23 applicant must pay the required application or renewal fee and
20-24 submit an application on a form prescribed by the commission.
20-25 (b) The application of an individual must include:
21-1 (1) the applicant's full name;
21-2 (2) the applicant's date of birth;
21-3 (3) a physical description of the applicant;
21-4 (4) the applicant's address and telephone number; and
21-5 (5) a statement by the applicant disclosing the
21-6 applicant's arrest or conviction for any felony or misdemeanor
21-7 offense other than a misdemeanor offense under the Uniform Act
21-8 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
21-9 Statutes) and its subsequent amendments or a similar misdemeanor
21-10 traffic offense.
21-11 (c) The application of a corporation must include:
21-12 (1) the name and address of the corporation's agent
21-13 for service of process in this state;
21-14 (2) the name, address, and telephone number of each
21-15 director and of each stockholder who owns or controls more than
21-16 five percent of the corporation's stock;
21-17 (3) the date of birth and a physical description of
21-18 each director and of each individual stockholder who owns or
21-19 controls more than five percent of the corporation's stock; and
21-20 (4) a statement by each director and by each
21-21 individual stockholder who owns or controls more than five percent
21-22 of the corporation's stock disclosing any arrest or conviction of
21-23 that director or stockholder for any felony or misdemeanor offense
21-24 other than a misdemeanor offense under the Uniform Act Regulating
21-25 Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes)
22-1 and its subsequent amendments or a similar misdemeanor traffic
22-2 offense.
22-3 (d) The application of an unincorporated business
22-4 association or any legal entity other than an individual or
22-5 corporation must include:
22-6 (1) the name, address, telephone number, and
22-7 percentage of ownership of each of its owners or members;
22-8 (2) the date of birth and a physical description of
22-9 each individual owner or member; and
22-10 (3) a statement by each individual owner or member who
22-11 owns an interest in the entity that is greater than five percent
22-12 disclosing any arrest or conviction of that owner or member for any
22-13 felony or misdemeanor offense other than a misdemeanor offense
22-14 under the Uniform Act Regulating Traffic on Highways (Article
22-15 6701d, Vernon's Texas Civil Statutes) and its subsequent amendments
22-16 or a similar misdemeanor traffic offense.
22-17 (e) An application for a license under this chapter must
22-18 contain information necessary to determine the applicant's
22-19 eligibility for a license under this chapter.
22-20 (f) An application for a riverboat casino operator license
22-21 must be accompanied by:
22-22 (1) a detailed statement of the assets and liabilities
22-23 of the applicant;
22-24 (2) evidence necessary to determine the compliance of
22-25 the riverboat on which gaming is to be conducted with the
23-1 requirements of Section 5.09 of this article;
23-2 (3) a plan for the riverboat showing the proposed
23-3 location of the casino space and all gaming equipment;
23-4 (4) a detailed floor plan of a land-based development,
23-5 redevelopment, or renovation of a permanent structure of not less
23-6 than 20,000 square feet for entertainment, ticketing, retail
23-7 outlets, amusements, and other related activities;
23-8 (5) a timetable showing that construction of the
23-9 facilities described in Subdivision (4) of this subsection will
23-10 begin not later than the first anniversary of the date the
23-11 commission issues a license to the applicant;
23-12 (6) a legal description of the land on which the
23-13 facilities described in Subdivision (4) of this subsection and the
23-14 dock from which the riverboat will operate will be located;
23-15 (7) evidence of ownership of or of the right to
23-16 control the land described in Subdivision (6) of this subsection;
23-17 (8) a traffic control and management plan detailing
23-18 improvements for the ingress, egress, and parking of motor
23-19 vehicles, sufficient for the proposed size and type of the
23-20 applicant's riverboat casino operations;
23-21 (9) an affirmative action plan, outlining minority
23-22 recruitment efforts for gaming employees; and
23-23 (10) a plan providing for the recruitment, training,
23-24 and hiring of unemployed residents of this state.
23-25 (g) The commission shall provide each applicant granted a
24-1 license with a license certificate or credentials.
24-2 Sec. 5.04. FINGERPRINTS. (a) An applicant for a license
24-3 under this article must submit to the commission a complete set of
24-4 fingerprints of the individual applying for the license or, if the
24-5 applicant is not an individual, of any individual required to be
24-6 named in the application.
24-7 (b) The commission, not later than the next day after
24-8 receiving the fingerprints, shall forward the prints by mail to the
24-9 Department of Public Safety. The department shall classify the
24-10 fingerprints and check them against its fingerprint files and shall
24-11 report to the commission its findings concerning the criminal
24-12 record of the applicant or the lack of such a record. A license
24-13 may not be issued until the report is made to the commission.
24-14 (c) A peace officer of this or any other state, or any
24-15 district office of the commission, shall take the fingerprints of
24-16 an applicant for a license on forms approved and furnished by the
24-17 Department of Public Safety and shall immediately deliver them to
24-18 the commission.
24-19 Sec. 5.05. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
24-20 commission may obtain any criminal history record information that
24-21 relates to an applicant for employment by the commission or to an
24-22 applicant for a license issued by the commission and that is
24-23 maintained by the Department of Public Safety, the Federal Bureau
24-24 of Investigation identification division, or any other law
24-25 enforcement agency. The commission may refuse to employ or to
25-1 grant a license to an applicant who fails to provide a complete set
25-2 of fingerprints.
25-3 (b) Criminal history record information received by the
25-4 commission under this section is for the exclusive use of the
25-5 commission, is privileged and confidential, and may not be released
25-6 or otherwise disclosed to any person or agency except:
25-7 (1) in a criminal proceeding;
25-8 (2) in a hearing conducted by the commission;
25-9 (3) on court order; or
25-10 (4) with the consent of the applicant.
25-11 Sec. 5.06. RESIDENCY REQUIREMENT. To be eligible for a
25-12 license under this article:
25-13 (1) an individual must show that the individual is a
25-14 resident of this state; or
25-15 (2) a person other than an individual must show that
25-16 not less than one-third of the ownership interest in the person is
25-17 held by residents of this state.
25-18 Sec. 5.07. GROUNDS FOR DENIAL, REVOCATION, OR SUSPENSION OF
25-19 LICENSE. (a) The commission, after notice and hearing, may refuse
25-20 to issue an original or renewal license under this article or may
25-21 revoke or suspend a license if the commission finds that the
25-22 applicant or license holder is an individual who has been convicted
25-23 of a felony, criminal fraud, gambling or a gambling-related
25-24 offense, or a misdemeanor involving moral turpitude, if less than
25-25 10 years has elapsed since the termination of the sentence, parole,
26-1 mandatory supervision, or probation served for the offense.
26-2 (b) The commission, after notice and hearing, may:
26-3 (1) refuse to issue an original or renewal license
26-4 under this article if it finds that a person is not eligible for
26-5 the license;
26-6 (2) refuse to issue an original or renewal riverboat
26-7 casino operator license under this article if the commission finds
26-8 that the proposed riverboat casino operation does not comply with
26-9 this article;
26-10 (3) refuse to issue a gaming employee license to a
26-11 person discharged for cause by any gaming business in any
26-12 jurisdiction; or
26-13 (4) revoke a license under this article if it finds
26-14 that the person was not eligible for the license at the time it was
26-15 issued or is no longer eligible for the license.
26-16 Sec. 5.08. MULTIPLE LICENSES PROHIBITED. A person licensed
26-17 under this article as a gaming equipment manufacturer, gaming
26-18 equipment distributor, or riverboat casino operator may not hold
26-19 another type of license issued under this article.
26-20 Sec. 5.09. RIVERBOAT REQUIREMENTS AND RESTRICTIONS. (a) A
26-21 person may not obtain a riverboat casino operator license unless
26-22 the riverboat on which gaming is to be conducted:
26-23 (1) carries a certificate of inspection issued by the
26-24 United States Coast Guard under Title 46, United States Code, and
26-25 46 CFR, Chapter I, Subchapter H, and their subsequent amendments,
27-1 for the carriage of at least 600 passengers on navigable waterways
27-2 in this state;
27-3 (2) is at least 150 feet long;
27-4 (3) is:
27-5 (A) of a design that replicates as nearly as
27-6 practical passenger steamboats of the 19th century; or
27-7 (B) otherwise of a design suitable for riverboat
27-8 gaming activities on specific waterways; and
27-9 (4) is powered by a fuel acceptable to the United
27-10 States Coast Guard under Title 46, United States Code, and 46 CFR,
27-11 Chapter I, Subchapter H and their subsequent amendments.
27-12 (b) Casino space aboard a riverboat may not exceed 60
27-13 percent of the total space of the riverboat. The main entrance or
27-14 sole public access to a riverboat may not be through the casino
27-15 space.
27-16 (c) A riverboat operated under this article must have a crew
27-17 complement that meets all marine personnel requirements of the
27-18 United States Coast Guard. At least 50 percent of the employees on
27-19 a riverboat who are not gaming employees must be:
27-20 (1) certified in cardiopulmonary resuscitation by the
27-21 American Red Cross; and
27-22 (2) certified in lifeboat and marine fire fighting by
27-23 the United State Coast Guard.
27-24 Sec. 5.10. AREA OF OPERATION; MAXIMUM NUMBER OF RIVERBOAT
27-25 CASINO OPERATOR LICENSES. (a) The commission may issue up to 15
28-1 riverboat casino operator licenses. A license may be issued to an
28-2 applicant in any county or municipality with one or more navigable
28-3 waterways, in whole or in part, within its boundaries, including
28-4 channels and fairways, that are:
28-5 (1) regulated as to marine safety by the United States
28-6 Coast Guard; or
28-7 (2) determined by the commission to be safe for
28-8 riverboat operations.
28-9 (b) For purposes of this article, a riverboat is considered
28-10 to operate in the county in which passengers board the riverboat.
28-11 (c) The commission may not issue more than:
28-12 (1) five licenses for riverboat casinos operating in
28-13 Harris County;
28-14 (2) two licenses for riverboat casinos operating in
28-15 Cameron County;
28-16 (3) two licenses for riverboat casinos operating in
28-17 Galveston County;
28-18 (4) two licenses for riverboat casinos operating in
28-19 Jefferson County;
28-20 (5) one license for a riverboat casino operating in
28-21 Brazoria County;
28-22 (6) one license for a riverboat casino operating in
28-23 Nueces County;
28-24 (7) one license for a riverboat casino operating in
28-25 Montgomery County; and
29-1 (8) in addition to the licenses allocated by
29-2 Subdivisions (1) and (3) of this subsection, one license for a
29-3 riverboat casino operating in Harris or Galveston County as
29-4 determined by the commission.
29-5 (d) A person who holds a riverboat casino operator license
29-6 may operate two vessels if each vessel operates from the dock site
29-7 for which the person holds the license. A person may hold more
29-8 than one riverboat casino operator license.
29-9 (e) In a county in which the commission may award more than
29-10 one riverboat casino operator license, the commission shall give
29-11 preference to at least one applicant whose dock site is leased from
29-12 a port authority, if the port authority:
29-13 (1) existed on January 1, 1992, and
29-14 (2) consents to the license.
29-15 (f) In this section:
29-16 (1) "Dock site" means the land development and
29-17 associated dock facilities where an applicant or license holder
29-18 will normally berth a riverboat.
29-19 (2) "Port authority" means a port authority created or
29-20 operating under Article III, Section 52, or Article XVI, Section
29-21 59, of the Texas Constitution.
29-22 Sec. 5.11. GAMING OPERATIONS WHILE RIVERBOAT IS BERTHED.
29-23 (a) Except as provided by Subsections (b) and (c) of this section,
29-24 a riverboat casino operator may not conduct gaming activities or
29-25 permit passengers to enter the casino space unless the riverboat is
30-1 navigating or anchored.
30-2 (b) A riverboat casino operator may conduct gaming
30-3 activities for a period not to exceed one hour while the riverboat
30-4 is berthed for passenger loading or unloading.
30-5 (c) A riverboat casino operator may conduct gaming
30-6 activities while the riverboat is berthed during inclement weather
30-7 during which, in the determination of the captain of the riverboat,
30-8 the normal operation of the riverboat would pose a health or safety
30-9 risk to passengers. The riverboat casino operator shall report
30-10 each occurrence of gaming activities under this subsection to the
30-11 commission not later than 24 hours after the gaming takes place.
30-12 Sec. 5.12. BOND. (a) Before a riverboat casino operator
30-13 license, a gaming equipment manufacturer license, or a gaming
30-14 equipment distributor license may be issued, the applicant must
30-15 execute a bond that is:
30-16 (1) payable to the state;
30-17 (2) in the amount of $250,000; and
30-18 (3) conditioned that the applicant will comply with
30-19 this article and the rules adopted under this article.
30-20 (b) The bond and the surety must be approved by the
30-21 commission.
30-22 (c) The commission by rule may require a bond before issuing
30-23 a license in a license category established by the commission.
30-24 Subsections (a) and (b) of this section apply to a bond under this
30-25 subsection.
31-1 Sec. 5.13. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
31-2 STATEMENTS. The commission shall require license holders to:
31-3 (1) keep books and records relating to activities
31-4 regulated by this article; and
31-5 (2) submit audited financial statements to the
31-6 commission.
31-7 CHAPTER 6. FEES AND TAXES
31-8 Sec. 6.01. APPLICATION FEE. An applicant for a license
31-9 under this article must submit with the application a nonrefundable
31-10 fee in the amount determined by the commission. The amount must be
31-11 sufficient to cover the cost of administering the application
31-12 process.
31-13 Sec. 6.02. RIVERBOAT CASINO OPERATOR LICENSE FEE.
31-14 (a) Subject to Section 5.02(e) of this article, the annual fee for
31-15 a riverboat casino operator license is determined by the number of
31-16 games offered for play on each day by the riverboat casino operator
31-17 during the year for which the fee is charged, as provided by the
31-18 following table:
31-19 Number of games: Fee:
31-20 1-13 $600 per game per year
31-21 14-16 $1,000 per game per year
31-22 17 or more $16,000 plus $200 per game
31-23 per year for each game in
31-24 excess of 16
31-25 (b) For purposes of Subsection (a) of this section, the
32-1 number of games offered for play on a day is equal to the maximum
32-2 number of all games that may be conducted in the casino space of a
32-3 riverboat on that day, as reported by the riverboat casino operator
32-4 in an application for a license or a report to the commission. The
32-5 commission may audit a riverboat casino operator to determine
32-6 compliance with this subsection.
32-7 Sec. 6.03. OTHER LICENSE FEES. (a) The annual fee for a
32-8 license under this article other than a riverboat casino operator
32-9 license is:
32-10 (1) $1,000, for a gaming equipment manufacturer
32-11 license;
32-12 (2) $1,000, for a gaming equipment distributor
32-13 license;
32-14 (3) $25, for a gaming employee license; or
32-15 (4) the amount set by commission rule for a license
32-16 category established by the commission.
32-17 (b) The amount of a license fee under Subsection (a)(4) of
32-18 this section must be reasonably related to the cost of
32-19 administering this article in relation to the license category.
32-20 Sec. 6.04. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICE
32-21 STAMP FEE. (a) In addition to other fees under this article,
32-22 there is imposed an activity stamp fee on each electronic or
32-23 electromechanical gaming device located in a riverboat casino.
32-24 (b) The annual fee for an electronic or electromechanical
32-25 gaming device stamp is $250.
33-1 (c) An electronic or electromechanical gaming device stamp
33-2 fee must be paid according to commission rule. The electronic or
33-3 electromechanical gaming device stamp must be affixed to the gaming
33-4 device according to commission rule.
33-5 (d) In this section, "electronic or electromechanical gaming
33-6 device" means gaming equipment that, on insertion of a coin,
33-7 currency, credit card, token, or similar object or on the payment
33-8 of any valuable consideration, is available to operate, the
33-9 operation of which, whether by reason of skill of the operator or
33-10 application of the element of chance, may deliver or entitle the
33-11 person operating the equipment to receive cash, premiums,
33-12 merchandise, tokens, or anything of value, whether the payoff is
33-13 made automatically from the equipment or in any other manner.
33-14 Sec. 6.05. GAMING TAX. (a) There is imposed a tax on the
33-15 annual adjusted gross revenue of gaming conducted under this
33-16 article.
33-17 (b) The rate of the tax imposed by this section is eight
33-18 percent of the adjusted gross revenue.
33-19 (c) The tax imposed by this section is payable by the
33-20 riverboat casino operator to the commission.
33-21 Sec. 6.06. ADJUSTED GROSS REVENUE. (a) For purposes of
33-22 this article, adjusted gross revenue of gaming is:
33-23 (1) the sum of:
33-24 (A) cash received as winnings by a riverboat
33-25 casino operator;
34-1 (B) cash received in payment for credit extended
34-2 by a riverboat casino operator to a passenger for purposes of
34-3 gaming; and
34-4 (C) compensation received for conducting a game
34-5 in which the riverboat casino operator is not party to a bet;
34-6 (2) less the sum of:
34-7 (A) cash paid out as losses to passengers; and
34-8 (B) amounts paid to purchase annuities to fund
34-9 losses paid to passengers over several years by independent
34-10 financial institutions.
34-11 (b) For purposes of this section:
34-12 (1) cash or compensation received by a riverboat
34-13 casino operator does not include:
34-14 (A) counterfeit money or tokens;
34-15 (B) coins of other countries received in gaming
34-16 equipment;
34-17 (C) cash received from a fraudulent act
34-18 perpetrated against a riverboat casino operator for which the
34-19 riverboat casino operator is not reimbursed; or
34-20 (D) cash received as an entry fee for a contest
34-21 or tournament in which passengers compete for prizes; and
34-22 (2) cash or the value of a noncash prize awarded to a
34-23 passenger in a contest or tournament is not a loss.
34-24 Sec. 6.07 ALLOCATION TO COMPULSIVE GAMBLING PROGRAM.
34-25 One-tenth of one percent of the tax imposed by Section 6.05 of this
35-1 article is allocated to the Texas Commission on Alcohol and Drug
35-2 Abuse for the commission's compulsive gambling program under
35-3 Section 461.018, Health and Safety Code and its subsequent
35-4 amendments.
35-5 Sec. 6.08 ADMISSION FEE. (a) A riverboat casino operator
35-6 shall charge each passenger an admission fee for each excursion of
35-7 at least $4 if the riverboat operates in a municipality.
35-8 (b) A fee charged under Subsection (a) of this section is
35-9 allocated as follows:
35-10 (1) $1 is allocated to the municipality in which the
35-11 riverboat operates;
35-12 (2) 50 cents is allocated to the county in which the
35-13 riverboat operates;
35-14 (3) $1 is allocated to the Texas Department of
35-15 Commerce to promote tourism and economic development in this state;
35-16 (4) 50 cents is allocated to the state parks fund
35-17 established under Section 11.035, Parks and Wildlife Code, to be
35-18 used by the Parks and Wildlife Department for the purposes
35-19 prescribed by law;
35-20 (5) 50 cents is allocated to the local parks,
35-21 recreation, and open space fund established under Section 24.002,
35-22 Parks and Wildlife Code, to be used by the Parks and Wildlife
35-23 Department for the purposes prescribed by law;
35-24 (6) 50 cents is allocated to the Department of Public
35-25 Safety, to be used in enforcing this article; and
36-1 (7) the remainder, if any, is allocated to the
36-2 riverboat casino operator.
36-3 (c) A riverboat casino operator shall charge each passenger
36-4 an admission fee for each excursion of at least $3.50 if the
36-5 riverboat does not operate in a municipality.
36-6 (d) A fee charged under Subsection (c) of this section is
36-7 allocated as follows:
36-8 (1) $1 is allocated to the county in which the
36-9 riverboat operates;
36-10 (2) $1 is allocated to the Texas Department of
36-11 Commerce to promote tourism and economic development in this state;
36-12 and
36-13 (3) 50 cents is allocated to the state parks fund
36-14 established under Section 11.035, Parks and Wildlife Code, to be
36-15 used by the Parks and Wildlife Department for the purposes
36-16 prescribed by law;
36-17 (4) 50 cents is allocated to the local parks,
36-18 recreation, and open space fund established under Section 24.002,
36-19 Parks and Wildlife Code, to be used by the Parks and Wildlife
36-20 Department for the purposes prescribed by law;
36-21 (5) 50 cents is allocated to the Department of Public
36-22 Safety, to be used in enforcing this article; and
36-23 (6) the remainder, if any, is allocated to the
36-24 riverboat casino operator.
36-25 Sec. 6.09. TAX ADMINISTRATION, COLLECTION, AND ENFORCEMENT.
37-1 (a) The commission shall perform all functions incident to the
37-2 administration, collection, enforcement, and operation of any fee
37-3 or tax imposed under this article. The commission may adopt
37-4 reasonable rules and prescribe forms that are consistent with this
37-5 article for the administration, collection, and enforcement of the
37-6 fees and taxes imposed under this article and for the reporting of
37-7 the fees and taxes imposed under this article.
37-8 (b) Subtitle B, Title 2, Tax Code, and its subsequent
37-9 amendments, applies to the administration, collection, and
37-10 enforcement of the taxes authorized or imposed under this article
37-11 except as modified by this article. For purposes of the
37-12 application of that subtitle to the taxes authorized or imposed
37-13 under this article only, the powers and duties assigned to the
37-14 comptroller under that subtitle are assigned to the commission.
37-15 Sec. 6.10. DEPOSIT OF TAX. One-fourth of the tax collected
37-16 under this article shall be deposited to the credit of the
37-17 foundation school fund. Three-fourths of the tax collected under
37-18 this article shall be deposited to the credit of the general
37-19 revenue fund.
37-20 Sec. 6.11. LIMITATION ON ADDITIONAL FEES OR TAXES. A state
37-21 agency or political subdivision may not impose a fee or tax on
37-22 riverboat casino gaming activity that is not authorized by:
37-23 (1) Section 6.05 or 6.08 of this article; or
37-24 (2) the Tax Code.
37-25 CHAPTER 7. LOCAL OPTION ELECTION
38-1 Sec. 7.01. ORDERING ELECTION. The governing body of an
38-2 eligible political subdivision at any time may order and hold an
38-3 election to legalize riverboat casino gaming under this article in
38-4 the political subdivision. The governing body of an eligible
38-5 political subdivision shall order and hold an election to legalize
38-6 riverboat casino gaming under this article in the political
38-7 subdivision if the governing body is presented with a petition that
38-8 meets the requirements of Section 7.02 of this article and is
38-9 certified as valid under Section 7.03 of this article.
38-10 Sec. 7.02. PETITION. (a) A petition for a legalization
38-11 election must have a statement substantially as follows preceding
38-12 the space reserved for signatures on each page: "This petition is
38-13 to require that an election be held in (name of political
38-14 subdivision) to legalize casino gaming on riverboats operating in
38-15 (name of political subdivision) under Article 179h, Revised
38-16 Statutes."
38-17 (b) A petition is valid only if it is signed by registered
38-18 voters of the political subdivision in a number equal to or greater
38-19 than the lesser of:
38-20 (1) three percent of the number of votes cast for
38-21 governor by qualified voters of the political subdivision in the
38-22 most recent gubernatorial general election; or
38-23 (2) the number specified in the municipality's
38-24 charter, in an election to be held in a municipality.
38-25 (c) Each voter must enter beside the voter's signature the
39-1 date the voter signs the petition. A signature may not be counted
39-2 if the date of signing is earlier than the 90th day before the date
39-3 the petition is submitted to the governing body.
39-4 (d) Each voter must provide the voter's current voter
39-5 registration number, printed name, and residence address including
39-6 zip code.
39-7 Sec. 7.03. VERIFICATION OF PETITION. (a) Not later than
39-8 the fifth day after the date a petition for an election under this
39-9 article is received in the office of the governing body, the
39-10 governing body shall submit the petition for verification to the
39-11 municipal secretary or county clerk, as applicable.
39-12 (b) The officer to whom the petition is submitted for
39-13 verification shall determine whether the petition is signed by the
39-14 required number of registered voters of the political subdivision.
39-15 Not later than the 30th day after the date the petition is
39-16 submitted to the officer for verification, the officer shall
39-17 certify in writing to the governing body of the political
39-18 subdivision whether the petition is valid or invalid. If the
39-19 officer determines that the petition is invalid, the officer shall
39-20 state all reasons for that determination.
39-21 Sec. 7.04. DATE OF ELECTION. If the municipal secretary or
39-22 county clerk, as applicable, certifies that a petition is valid,
39-23 not later than the 30th day after the date of certification, the
39-24 governing body shall order that an election be held in the
39-25 municipality or county on the next uniform election date under
40-1 Section 41.001, Election Code, and its subsequent amendments, that
40-2 occurs after the 45th day after the date on which the governing
40-3 body orders the election. The governing body shall state in the
40-4 order the issue to be voted on. The municipal secretary or county
40-5 clerk shall notify the commission by certified mail, return receipt
40-6 requested, that an election has been ordered.
40-7 Sec. 7.05. BALLOT PROPOSITION. The ballot in a legalization
40-8 election shall be printed to provide for voting for or against the
40-9 proposition: "Legalizing casino gaming on riverboats within (name
40-10 of political subdivision) under Article 179h, Revised Statutes."
40-11 Sec. 7.06. RESULTS OF ELECTION. (a) If the majority of the
40-12 votes cast in a legalization election are for the legalization of
40-13 gaming on riverboats, gaming as authorized under this article is
40-14 permitted within the political subdivision holding the election
40-15 effective the 10th day after the date the election is canvassed.
40-16 (b) The governing body of a political subdivision in which a
40-17 legalization election has been held shall give written notice of
40-18 the results of the election to the commission not later than the
40-19 third day after the date the election is canvassed.
40-20 CHAPTER 8. OFFENSES; PENALTIES
40-21 Sec. 8.01. GAMING BY INDIVIDUAL UNDER 21 YEARS OF AGE.
40-22 (a) A person commits an offense if the person knowingly permits an
40-23 individual that the person knows is younger than 21 years of age to
40-24 participate in gaming. An offense under this subsection is a Class
40-25 A misdemeanor.
41-1 (b) An individual commits an offense if the individual
41-2 participates in gaming and the individual is younger than 21 years
41-3 of age at the time of participation. An offense under this
41-4 subsection is a Class C misdemeanor.
41-5 Sec. 8.02. FRAUD. (a) A person commits an offense if the
41-6 person knowingly:
41-7 (1) uses bogus or counterfeit chips, tokens, devices,
41-8 or coins during a game;
41-9 (2) uses or is in possession of any cheating device
41-10 designed to facilitate cheating in a game operated by a riverboat
41-11 casino license holder; or
41-12 (3) uses any fraudulent scheme or technique in a game
41-13 operated by a riverboat casino license holder.
41-14 (b) An offense under this section is a Class A misdemeanor.
41-15 Sec. 8.03. REPORTING AND RECORD VIOLATIONS; PENALTY. (a) A
41-16 person commits an offense if the person, in a license application,
41-17 in a book or record required to be maintained by this article or a
41-18 rule adopted under this article, or in a report required to be
41-19 submitted by this article or a rule adopted under this article:
41-20 (1) knowingly makes a statement or entry that the
41-21 person knows to be false or misleading; or
41-22 (2) fails to maintain or make an entry the person
41-23 knows is required to be maintained or made.
41-24 (b) A person commits an offense if the person knowingly
41-25 refuses to produce for inspection by the executive director a book,
42-1 record, or document required to be maintaining or made by this
42-2 article or a rule adopted under this article.
42-3 (c) An offense under this section is a Class A misdemeanor.
42-4 CHAPTER 9.
42-5 APPROPRIATION, LOAN AND RIVERBOAT GAMING REVENUE FUND
42-6 Sec. 9.01 (1) In addition to any other appropriation, there
42-7 is hereby appropriated, out of any moneys in the general fund not
42-8 otherwise appropriated, to the Texas Riverboat Gaming Commission
42-9 the sum of One Million Dollars ($1,000,000.00), or so much thereof
42-10 as may be necessary for the purpose of providing the State
42-11 Treasurer with sufficient funds to cover organizational and
42-12 administrative expenses in connection with the implementation of
42-13 Texas riverboat gaming in accordance with the provisions of this
42-14 Act. The moneys appropriated by this section shall become
42-15 available upon passage of this Act and shall remain available
42-16 through December 31, 1993.
42-17 (2) In accordance with this Act, such appropriation
42-18 shall be deemed a loan which shall be repaid with interest to the
42-19 general fund from all moneys collected by the Texas Riverboat
42-20 Gaming Commission for any purpose whatsoever including, but not
42-21 limited to moneys from license fees, background investigations,
42-22 fines, taxes, fees, and any and all other sources. The loan shall
42-23 bear interest at the earnings rate calculated monthly by the State
42-24 Treasurer and shall be repaid by the Texas Riverboat Gaming
42-25 Commission from the Riverboat Gaming Revenue Fund before any other
43-1 distributions, except ongoing operating expenses and costs, are
43-2 made pursuant to Section 6.10 of this article and Section 19.06 of
43-3 Article 179e, Vernon's Texas Civil Statutes and its subsequent
43-4 amendments. In no event, however, shall the loan be required to be
43-5 repaid until after December 31, 1994, and the loan must be repaid
43-6 in full on or before December 31, 1995.
43-7 Sec. 9.02 Texas Riverboat Gaming Fund. (1) There is hereby
43-8 created in the office of the State Treasurer the Riverboat Gaming
43-9 Fund. The Fund shall be maintained and operated as follows:
43-10 (a) The initial appropriation to the Texas Riverboat Gaming
43-11 Commission and all subsequent revenues of the commission shall be
43-12 paid into the Texas Riverboat Gaming Fund. All expenses of the
43-13 commission, including the expenses of administration, investigation
43-14 and prosecution relating to Texas Riverboat Gaming, shall be paid
43-15 from the Fund.
43-16 (b) In addition to the initial appropriation to the
43-17 commission, all moneys paid into the Fund shall be available upon
43-18 appropriation for the purposes of said Fund. From the moneys in
43-19 the Fund, the State Treasurer is hereby authorized to pay all
43-20 ongoing expenses of the commission and any other state agency from
43-21 whom assistance related to the administration of this Act is
43-22 requested by the commission. Such payment shall be made upon
43-23 proper presentation of a voucher prepared by the commission in
43-24 accordance with other statutes governing payments of liabilities
43-25 incurred on behalf of the state.
44-1 (c) At the end of each state fiscal year, the State
44-2 Treasurer shall distribute the balance remaining in the Fund,
44-3 except for an amount equal to all expenses for the administration
44-4 of Texas riverboat gaming by the commission for the preceding
44-5 two-month period, which amount shall be held in reserve, first to
44-6 the repayment of the loan as set forth in Section 9.01 and then
44-7 pursuant to Section 6.10 of this article and Section 19.06 of
44-8 Article 179e, Vernon's Texas Civil Statutes and its subsequent
44-9 amendments.
44-10 (d) The State Treasurer shall invest the moneys in the Fund
44-11 so long as said moneys are readily available to pay the expenses of
44-12 the commission. Investments shall be those otherwise permitted by
44-13 state law, and interest or any other return on the investments
44-14 shall be paid into the Fund.
44-15 (2) The commission shall be operated so that, after
44-16 the initial state appropriation and repayment of the loan created
44-17 in Section 9.01, it shall be self-sustaining.
44-18 (3) No claim for the payment of any expense of the
44-19 commission or any other state agency related to riverboat gaming
44-20 shall be made unless it is against the Texas Riverboat Gaming Fund.
44-21 No other moneys of the State of Texas shall be used or obligated to
44-22 pay the expenses of the commission or other state agencies where
44-23 those expenses are related to Texas riverboat gaming.
44-24 SECTION 2. The Texas Racing Act (Article 179e, Vernon's
44-25 Texas Civil Statutes) is amended by adding Article 19 to read as
45-1 follows:
45-2 Article 19. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICES
45-3 Sec. 19.01. DEFINITION. In this article, "electronic or
45-4 electromechanical gaming device" has the meaning assigned by
45-5 Section 6.04, Article 179h, Revised Statutes and its subsequent
45-6 amendments.
45-7 Sec. 19.02. ELECTRONIC OR ELECTROMECHANICAL GAMING DEVICES
45-8 PERMITTED AT CERTAIN RACETRACKS. An association that holds a class
45-9 1 horse racetrack license or a greyhound racetrack license may
45-10 install electronic or electromechanical gaming devices on the
45-11 premises of the racetrack in accordance with commission rules.
45-12 Sec. 19.03. RULES. The commission shall adopt rules
45-13 relating to electronic or electromechanical gaming devices. The
45-14 rules relating to the area in which the gaming devices may be
45-15 operated and the spacing of gaming devices must be consistent with
45-16 and may not be more stringent than rules adopted by the Texas
45-17 Riverboat Gaming Commission regarding electronic or
45-18 electromechanical gaming devices in riverboat casinos.
45-19 Sec. 19.04. FEES. (a) In addition to other fees under this
45-20 Act, there is imposed an activity stamp fee on each electronic or
45-21 electromechanical gaming device installed at a racetrack.
45-22 (b) The annual fee for an electronic or electromechanical
45-23 gaming device stamp is $250.
45-24 (c) An electronic or electromechanical gaming device stamp
45-25 fee must be paid according to commission rule. The electronic or
46-1 electromechanical gaming device stamp must be affixed to the gaming
46-2 device according to commission rule.
46-3 Sec. 19.05. TAX. (a) There is imposed a tax on the annual
46-4 adjusted gross revenue from electronic or electromechanical gaming
46-5 devices installed and operated at a racetrack under this article.
46-6 (b) The rate of the tax imposed by this section is eight
46-7 percent of the adjusted gross revenue.
46-8 (c) The tax is payable by the association to the
46-9 comptroller. For purposes of collecting the tax, the comptroller
46-10 has all powers granted by Article 4 and Section 6.10 of this Act
46-11 for collecting the state's share of a pari-mutuel pool.
46-12 (d) For purposes of the tax, adjusted gross revenue from
46-13 electronic or electromechanical gaming devices is the cash received
46-14 as winnings by an association, less the cash paid out as losses to
46-15 players. For purposes of this subsection, cash received by an
46-16 association does not include counterfeit money or tokens or coins
46-17 of other countries.
46-18 Sec. 19.06. DEPOSIT OF TAX. One-fourth of the tax collected
46-19 under this article shall be deposited to the credit of the
46-20 foundation school fund. Three-fourths of the tax collected under
46-21 this article shall be deposited to the credit of the general
46-22 revenue fund.
46-23 Sec. 19.07. MAXIMUM NUMBER OF GAMING DEVICES PER TRACK. An
46-24 association may not install more than 500 electronic or
46-25 electromechanical gaming devices.
47-1 Sec. 19.08. MANUFACTURE OR DISTRIBUTION WITHOUT LICENSE
47-2 PROHIBITED. (a) A person may not manufacture electronic or
47-3 electromechanical gaming devices unless the person holds a gaming
47-4 equipment manufacturer license under Article 179h, Revised Statutes
47-5 and its subsequent amendments.
47-6 (b) A person may not distribute electronic or
47-7 electromechanical gaming devices unless the person holds a gaming
47-8 equipment distributor license under Article 179h, Revised Statutes
47-9 and its subsequent amendments.
47-10 Sec. 19.09. EXEMPTION FROM FEDERAL LAW. Electronic or
47-11 electromechanical gaming devices operated or to be operated under
47-12 this article are exempted from 15 U.S.C. Sec. 1172 and its
47-13 subsequent amendments.
47-14 Sec. 19.10. OPERATION BY INDIVIDUAL UNDER 21 YEARS OF AGE.
47-15 (a) A person commits an offense if the person knowingly permits an
47-16 individual that the person knows is younger than 21 years of age to
47-17 operate an electronic or electromechanical gaming device. An
47-18 offense under this subsection is a Class A misdemeanor.
47-19 (b) An individual commits an offense if the individual
47-20 operates an electronic or electromechanical gaming device and the
47-21 individual is younger than 21 years of age at the time of
47-22 operation. An offense under this subsection is a Class C
47-23 misdemeanor.
47-24 Sec. 19.11. PROHIBITION ON LOTTERIES AND GIFT ENTERPRISES.
47-25 (a) In this section "lottery" and "gift enterprise" have the
48-1 meaning assigned by Sec. 2.01(13), Article 179h, Revised Statutes,
48-2 and its subsequent amendments.
48-3 (b) A lottery or gift enterprise may not be conducted at a
48-4 racetrack.
48-5 SECTION 3. Section 47.02(c), Penal Code, is amended to read
48-6 as follows:
48-7 (c) It is a defense to prosecution under this section that
48-8 the actor reasonably believed that the conduct:
48-9 (1) was permitted under the Bingo Enabling Act
48-10 (Article 179d, Vernon's Texas Civil Statutes);
48-11 (2) was permitted under the Charitable Raffle Enabling
48-12 Act (Article 179f, Revised Statutes, as added by Chapter 957, Acts
48-13 of the 71st Legislature, Regular Session, 1989); <or>
48-14 (3) consisted entirely of participation in the state
48-15 lottery authorized by the State Lottery Act (Article 179g, Vernon's
48-16 Texas Civil Statutes); or
48-17 (4) was permitted under the Texas Riverboat Economic
48-18 Development and Gaming Control Act (Article 179h, Revised
48-19 Statutes).
48-20 SECTION 4. Section 47.02 (d), Penal Code, is amended to read
48-21 as follows:
48-22 (d) An offense under this section is a Class B <C>
48-23 Misdemeanor.
48-24 SECTION 5. Section 47.06, Penal Code, is amended by adding
48-25 Subsection (h) to read as follows:
49-1 (h) It is a defense to prosecution for an offense under this
49-2 section that the conduct was permitted under the Texas Racing Act
49-3 (Article 179e, Vernon's Texas Civil Statutes) or the Texas
49-4 Riverboat Economic Development and Gaming Control Act (Article
49-5 179h, Revised Statutes).
49-6 SECTION 6. Section 47.11, Penal Code, is amended to read as
49-7 follows:
49-8 Sec. 47.11. CONDUCT PERMITTED UNDER TEXAS RACING ACT
49-9 <PARI-MUTUEL WAGERING ON CERTAIN RACES>. It is a defense to
49-10 prosecution for an offense under this chapter that the conduct was
49-11 authorized under the Texas Racing Act (Article 179e, Vernon's Texas
49-12 Civil Statutes).
49-13 SECTION 7. Chapter 47, Penal Code, is amended by adding
49-14 Section 47.15 to read as follows:
49-15 Sec. 47.15. RIVERBOAT GAMING. It is a defense to
49-16 prosecution for an offense under this chapter that the conduct was
49-17 permitted under the Texas Riverboat Economic Development and Gaming
49-18 Control Act (Article 179h, Revised Statutes).
49-19 SECTION 8. Subchapter H, Chapter 151, Tax Code, is amended
49-20 by adding Section 151.350 to read as follows:
49-21 Sec. 151.350. RIVERBOAT CASINO ADMISSION FEES. An admission
49-22 fee charged by a riverboat casino operator under Section 6.08,
49-23 Article 179h, Revised Statutes, is exempt from the taxes imposed by
49-24 this chapter.
49-25 SECTION 9. Article 8803, Revised Statutes, is amended to
50-1 read as follows:
50-2 Art. 8803. Exemptions from tax. (a) Gas meters, pay
50-3 telephones, pay toilets, food vending machines, confection vending
50-4 machines, beverage vending machines, merchandise vending machines,
50-5 and cigarette vending machines which are now subject to an
50-6 occupation or gross receipts tax, stamp vending machines, and
50-7 "service coin-operated machines," as that term is defined, are
50-8 expressly exempt from the tax levied herein, and the other
50-9 provisions of this Chapter.
50-10 (b) An electronic or electromechanical gaming device
50-11 permitted under Article 19, Texas Racing Act (Article 179e,
50-12 Vernon's Texas Civil Statutes), or the Texas Riverboat Economic
50-13 Development and Gaming Control Act (Article 179h, Revised
50-14 Statutes), or any subsequent amendments, is exempt from the tax
50-15 imposed by this Chapter and from the other provisions of this
50-16 Chapter.
50-17 SECTION 10. Section 2(5)(A), Chapter 421, Acts of the 63rd
50-18 Legislature, Regular Session, 1973, (Article 6252-9b, Vernon's
50-19 Texas Civil Statutes), is amended to read as follows:
50-20 (5)(A) "Appointed officer of a major state agency"
50-21 means any of the following:
50-22 (i) a member of the Public Utility
50-23 Commission of Texas;
50-24 (ii) a member of the Texas Department of
50-25 Commerce;
51-1 (iii) a member of the Texas Board of
51-2 Aviation;
51-3 (iv) a member of the Texas Air Control
51-4 Board;
51-5 (v) a member of the Texas Alcoholic
51-6 Beverage Commission;
51-7 (vi) a member of the Finance Commission of
51-8 Texas;
51-9 (vii) a member of the <State Purchasing
51-10 and> General Services Commission;
51-11 (viii) a member of the Texas Board of
51-12 Criminal Justice;
51-13 (ix) a member of the Board of Trustees of
51-14 the Employees Retirement System of Texas;
51-15 (x) a member of the State Highway and
51-16 Public Transportation Commission;
51-17 (xi) a member of the Texas Workers'
51-18 Compensation Commission;
51-19 (xii) a member of the State Board of
51-20 Insurance;
51-21 (xiii) a member of the Parks and Wildlife
51-22 Commission;
51-23 (xiv) a member of the Public Safety
51-24 Commission;
51-25 (xv) the Secretary of State;
52-1 (xvi) a member of the State Securities
52-2 Board;
52-3 (xvii) a member of the Texas Amusement
52-4 Machine Commission;
52-5 (xviii) a member of the Texas Water
52-6 Development Board;
52-7 (xix) a member of the Texas Water
52-8 Commission;
52-9 (xx) a member of the governing board of a
52-10 state senior college or university as defined by Section 61.003,
52-11 Education Code, including The University of Texas at Arlington; The
52-12 University of Texas at Austin; The University of Texas at Dallas;
52-13 The University of Texas at El Paso; The University of Texas--Pan
52-14 American; The University of Texas--Pan American--Brownsville; The
52-15 University of Texas of the Permian Basin; The University of Texas
52-16 at San Antonio; The University of Texas at Tyler; The University of
52-17 Texas Southwestern Medical Center at Dallas; The University of
52-18 Texas Medical Branch at Galveston; The University of Texas Health
52-19 Science Center at Houston; The University of Texas Health Science
52-20 Center at San Antonio; The University of Texas System Cancer
52-21 Center; The University of Texas Health Science Center at Tyler;
52-22 Texas A&M University; Texas A&M University at Galveston; Prairie
52-23 View A&M University; Tarleton State University; Corpus Christi
52-24 State University; Texas A&I University; Laredo State University;
52-25 East Texas State University; East Texas State University at
53-1 Texarkana; University of Houston; University of Houston--Clear
53-2 Lake; University of Houston--Downtown; University of
53-3 Houston--Victoria; Lamar University at Beaumont; Lamar University
53-4 at Orange; Lamar University at Port Arthur; Midwestern State
53-5 University; University of North Texas; Texas College of Osteopathic
53-6 Medicine; Stephen F. Austin State University; Texas Southern
53-7 University; Texas Tech University; Texas Tech University Health
53-8 Sciences Center; Texas Woman's University; West Texas State
53-9 University; Angelo State University; Sam Houston State University;
53-10 Southwest Texas State University; Sul Ross State University; Sul
53-11 Ross State University--Uvalde Center; Texas State Technical
53-12 Institute--Amarillo; Texas State Technical Institute--Harlingen;
53-13 Texas State Technical Institute--Sweetwater; and Texas State
53-14 Technical Institute--Waco;
53-15 (xxi) a member of the Texas Higher
53-16 Education Coordinating Board;
53-17 (xxii) a member of the Texas Employment
53-18 Commission;
53-19 (xxiii) a member of the State Banking
53-20 Board;
53-21 (xxiv) a member of the board of trustees
53-22 of the Teachers Retirement System of Texas;
53-23 (xxv) a member of the Credit Union
53-24 Commission;
53-25 (xxvi) a member of the School Land Board;
54-1 (xxvii) a member of the board of the Texas
54-2 Department of Housing and Community Affairs;
54-3 (xxviii) a member of the Texas Racing
54-4 Commission;
54-5 (xxix) a member of the State Board of
54-6 Dental Examiners;
54-7 (xxx) a member of the Texas Board of
54-8 Licensure for Nursing Home Administrators;
54-9 (xxxi) a member of the Texas State Board
54-10 of Medical Examiners;
54-11 (xxxii) a member of the Board of Pardons
54-12 and Paroles;
54-13 (xxxiii) a member of the Texas State Board
54-14 of Pharmacy;
54-15 (xxxiv) the Banking Commissioner of the
54-16 Banking Department of Texas;
54-17 (xxxv) a member of the Department of
54-18 Information Resources Governing Board;
54-19 (xxxvi) the fire fighters' pension
54-20 commissioner;
54-21 (xxxvii) a member of the Texas Motor
54-22 Vehicle Commission;
54-23 (xxxviii) the director of the Office of
54-24 Court Administration of the Texas Judicial System;
54-25 (xxxix) the chief executive of the Office
55-1 of Public Utility Counsel;
55-2 (xl) a member of the Texas Real Estate
55-3 Commission;
55-4 (xli) a member of the board of directors
55-5 and the executive director of the State Bar of Texas;
55-6 (xlii) a member of the Bond Review Board;
55-7 (xliii) a member of the Texas Board of
55-8 Health;
55-9 (xliv) a member of the Texas Board of
55-10 Mental Health and Mental Retardation;
55-11 (xlv) a member of the Texas Board on
55-12 Aging;
55-13 (xlvi) a member of the Texas Board of
55-14 Human Services;
55-15 (xlvii) a member of the Texas Funeral
55-16 Service Commission;
55-17 (xlviii) a member of the board of
55-18 directors of a river authority created under the constitution or
55-19 laws of this state;
55-20 (xlix) the director of the lottery
55-21 division in the office of the comptroller; <or>
55-22 (l) the deputy in charge of the department
55-23 of security in the lottery division in the office of the
55-24 comptroller; or
55-25 (li) a member of the Texas Riverboat
56-1 Gaming Commission.
56-2 SECTION 11. In making the initial appointments to the Texas
56-3 Riverboat Gaming Commission, the governor shall designate two
56-4 members for terms expiring in 1995, two members for terms expiring
56-5 in 1997, and two members for terms expiring in 1999.
56-6 SECTION 12. This Act takes effect and the Texas Riverboat
56-7 Gaming commission is created on September 1, 1993.
56-8 SECTION 13. The importance of this legislation and the
56-9 crowded condition of the calendars in both houses create an
56-10 emergency and an imperative public necessity that the
56-11 constitutional rule requiring bills to be read on three several
56-12 days in each house be suspended, and this rule is hereby suspended.