By Ellis                                                S.B. No. 87
       74R1082 CAG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the authorization and regulation of limited casino
    1-3  gambling and to the creation, powers, and duties of the Texas
    1-4  Gaming Commission; authorizing taxes; providing civil and criminal
    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.  LIMITED GAMBLING
   1-10                    ARTICLE 1.  GENERAL PROVISIONS
   1-11        Sec. 1.001.  SHORT TITLE.  This article may be cited as the
   1-12  "Texas Economic Development and Gaming Control Act."
   1-13        Sec. 1.002.  PUBLIC POLICY.  (a)  All casino gaming that is
   1-14  conducted in this state and that is authorized by law shall be
   1-15  regulated and licensed under this Act, unless the legislature
   1-16  specifically provides otherwise.
   1-17        (b)  The legislature hereby finds, and declares it to be the
   1-18  public policy of this state, that:
   1-19              (1)  the development of regulated limited casino gaming
   1-20  in the state will benefit the general welfare of the people of this
   1-21  state by enhancing investment, development, and tourism in this
   1-22  state, resulting in new jobs and additional revenues to the state;
   1-23              (2)  the conduct of regulated casino gaming in a
   1-24  limited number of casinos will result in no detriment to the
    2-1  citizens of this state;
    2-2              (3)  the regulation of gaming in this state is
    2-3  important in order that gaming be conducted honestly and
    2-4  competitively and that gaming be free from criminal and corruptive
    2-5  elements;
    2-6              (4)  public confidence and trust can be maintained only
    2-7  by strict regulation of all persons, locations, practices,
    2-8  associations, and activities related to the conduct of gaming and
    2-9  the casino service industry;
   2-10              (5)  persons owning any direct or indirect material
   2-11  interest in a casino should be licensed and controlled to protect
   2-12  the public health, safety, morals, good order, and general welfare
   2-13  of the citizens of this state;
   2-14              (6)  certain operators and employees of casinos should
   2-15  be regulated, licensed, and controlled to accomplish and promote
   2-16  these public policies while protecting the public health, safety,
   2-17  morals, good order, and general welfare of the citizens of this
   2-18  state;
   2-19              (7)  certain persons engaging in the casino service
   2-20  industry should be regulated, licensed, and controlled to
   2-21  accomplish and promote the above public policies while protecting
   2-22  the public health, safety, morals, good order, and general welfare
   2-23  of the citizens of this state; and
   2-24              (8)  it is the intent of this Act, where possible, to
   2-25  use the resources, goods, labor, and services of the citizens of
   2-26  this state in the operation and construction of casinos and
   2-27  casino-related amenities to the extent allowable by law.
    3-1        Sec. 1.003.  DEFINITIONS.  In this Act:
    3-2              (1)  "Affiliate" means a person who, directly or
    3-3  indirectly through one or more intermediaries, controls, is
    3-4  controlled by, or is under common control with another person.  A
    3-5  person is considered to control a company if the person
    3-6  beneficially owns more than a five-percent equity interest in the
    3-7  company under the beneficial ownership regulations adopted by the
    3-8  commission.
    3-9              (2)  "Applicant" means a person who has applied for an
   3-10  owner's license, an operator's license, an occupational license, a
   3-11  manufacturer's license, a casino service license, or a
   3-12  qualification to hold an equity interest or creditor interest in an
   3-13  owner licensee or who has applied for the approval of any act or
   3-14  transaction for which approval is required or permitted under this
   3-15  Act.
   3-16              (3)  "Associated equipment" means any equipment or
   3-17  mechanical, electromechanical, or electronic contrivance,
   3-18  component, or machine used in connection with gaming or with any
   3-19  game that would not otherwise be classified as a gaming device,
   3-20  including dice, playing cards, links connecting progressive slot
   3-21  machines, equipment affecting the proper reporting of gross gaming
   3-22  revenue, computerized systems or software for monitoring slot
   3-23  machines, and devices for weighing or counting money.
   3-24              (4)  "Casino" means a facility for which an owner's
   3-25  license is in effect under this Act permitting the conduct of
   3-26  gaming.
   3-27              (5)  "Casino operator" means a person, other than the
    4-1  owner licensee, who contractually agrees to provide operational and
    4-2  managerial services for the operation of the casino on behalf of
    4-3  the owner licensee in return for receiving a payment based either
    4-4  on profits or on receipts from the casino.
    4-5              (6)  "Casino service" means the provision of goods or
    4-6  services to a person holding an owner's or operator's license under
    4-7  this Act, other than a service requiring a manufacturer's license,
    4-8  including security businesses and gaming schools.
    4-9              (7)  "Casino service license" means a license issued
   4-10  under Section 6.002 of this Act.
   4-11              (8)  "Casino service licensee" means the holder of a
   4-12  casino service license.
   4-13              (9)  "Chairman" means the chairman of the Texas Gaming
   4-14  Commission.
   4-15              (10)  "Commission" means the Texas Gaming Commission.
   4-16              (11)  "Commission member" means a member of the
   4-17  commission.
   4-18              (12)  "Company" means a corporation, partnership,
   4-19  limited partnership, trust, association, joint stock company, joint
   4-20  venture, limited liability company, or other form of business
   4-21  organization and does not include a sole proprietorship or natural
   4-22  person.
   4-23              (13)  "Creditor interest" means a right or claim, of
   4-24  whatever character, against a person for the payment of money
   4-25  borrowed, whether secured or unsecured, matured or unmatured,
   4-26  liquidated or absolute, fixed or contingent, and includes
   4-27  obligations based on the person's profits or receipts.
    5-1              (14)  "Director" means a member of the board of
    5-2  directors of a corporation and a person performing similar
    5-3  functions with respect to a company other than a corporation.
    5-4              (15)  "Equity interest" means a proprietary right or
    5-5  claim allowing the holder either to vote with respect to matters of
    5-6  organizational governance or to participate in the profits and
    5-7  residual assets of a company, including common and preferred stock
    5-8  in a corporation, general and limited partnership interests in a
    5-9  partnership, similar interests in any other form of business
   5-10  organization, and a warrant, right, or similar interest convertible
   5-11  into, or to subscribe for, a proprietary right or claim, with or
   5-12  without the payment of additional consideration.
   5-13              (16)  "Executive director" means the executive director
   5-14  of the commission.
   5-15              (17)  "Family" means, with respect to a natural person,
   5-16  any other natural person deemed to be related within the second
   5-17  degree by affinity or the third degree by consanguinity, as
   5-18  determined under Subchapter B, Chapter 573, Government Code.
   5-19              (18)  "Game" or "gambling game" means:
   5-20                    (A)  a banking or percentage game played with
   5-21  cards, dice, or a mechanical, electromechanical, or electronic
   5-22  device or machine for money, property, checks, credit, or a
   5-23  representative of value, including roulette, keno, twenty-one,
   5-24  blackjack, craps, poker, chuck-a-luck (dai shu), wheel of fortune,
   5-25  chemin de fer, baccarat, pai gow, slot machine, any other
   5-26  electronic game of chance, and any other game or device approved by
   5-27  the commission;
    6-1                    (B)  simulcast wagering on pari-mutuel greyhound
    6-2  or horse racing;
    6-3                    (C)  the maintenance of a race book; and
    6-4                    (D)  any other method of effecting a wager
    6-5  approved by the commission.
    6-6              The term does not include:
    6-7                          (i)  bingo, as authorized by the Bingo
    6-8  Enabling Act (Article 179d, Vernon's Texas Civil Statutes);
    6-9                          (ii)  charitable raffles, as authorized by
   6-10  the Charitable Raffle Enabling Act (Article 179f, Revised
   6-11  Statutes);
   6-12                          (iii)  the state lottery, as authorized by
   6-13  the State Lottery Act (Article 179g, Vernon's Texas Civil
   6-14  Statutes); or
   6-15                          (iv)  wagering made on the outcome of a
   6-16  sports event or activity other than greyhound or horse racing.
   6-17              (19)  "Gaming" or "gambling" means to deal, operate,
   6-18  carry on, conduct, maintain, or expose for play a game in a casino.
   6-19              (20)  "Gaming device" means a mechanical,
   6-20  electromechanical, or electronic contrivance, component, or machine
   6-21  used in connection with gaming or a game that affects the result of
   6-22  a wager by determining win or loss.  The term includes a system for
   6-23  processing information that can alter the normal criteria of random
   6-24  selection, affect the operation of a game, or determine the outcome
   6-25  of a game.
   6-26              (21)  "Gaming employee" means an individual directly
   6-27  involved in the operation or conduct of gaming in a casino
    7-1  performing a service in a capacity that the commission finds
    7-2  appropriate for occupational licensing under Section 5.002 of this
    7-3  Act and includes:
    7-4                    (A)  boxmen;
    7-5                    (B)  cashiers;
    7-6                    (C)  change personnel;
    7-7                    (D)  counting room personnel;
    7-8                    (E)  dealers;
    7-9                    (F)  floor men;
   7-10                    (G)  hosts empowered to extend credit or
   7-11  complimentary services;
   7-12                    (H)  keno runners;
   7-13                    (I)  keno writers;
   7-14                    (J)  machine mechanics;
   7-15                    (K)  security personnel;
   7-16                    (L)  shift or pit bosses;
   7-17                    (M)  supervisors or managers involved in gaming
   7-18  activities;
   7-19                    (N)  accounting or internal auditing personnel
   7-20  directly involved in recordkeeping or the examination of records
   7-21  generated from gaming activities; and
   7-22                    (O)  junketeers or other independent agents whose
   7-23  compensation is based on how much a patron wagers or loses or who
   7-24  are paid per patron more than the price of admission.
   7-25              The term does not include bartenders, cocktail
   7-26  waitresses, or other individuals engaged exclusively in preparing
   7-27  or serving food or beverages or individuals providing nominal,
    8-1  complimentary, or maintenance services.
    8-2              (22)  "Gross gaming revenue" means the total of the
    8-3  following, less the total of all cash paid out as losses to patrons
    8-4  and those amounts paid to purchase annuities to fund losses paid to
    8-5  patrons over several years by independent financial institutions
    8-6  and items made deductible as losses under Section 10.002 of this
    8-7  Act:
    8-8                    (A)  cash received by an owner licensee as
    8-9  winnings;
   8-10                    (B)  cash received by an owner licensee in
   8-11  payment for credit extended by the owner licensee to a patron for
   8-12  the purposes of gaming; and
   8-13                    (C)  compensation received by an owner licensee
   8-14  for conducting any game in which the owner licensee is not a party
   8-15  to a wager.
   8-16              Cash or the value of noncash prizes awarded to patrons
   8-17  in a contest or tournament are not losses.  "Gross gaming revenue"
   8-18  does not include:
   8-19                          (i)  counterfeit money or tokens;
   8-20                          (ii)  coins of other countries that are
   8-21  received in slot machines or gaming devices;
   8-22                          (iii)  cash taken in fraudulent acts
   8-23  perpetrated against an owner licensee for which the licensee is not
   8-24  reimbursed; or
   8-25                          (iv)  cash received as entry fees for
   8-26  contests or tournaments in which the patrons compete for prizes.
   8-27              (23)  "Hearing examiner" means a person authorized by
    9-1  the commission to conduct hearings.
    9-2              (24)  "Institutional investor" means a person, other
    9-3  than a state or federal pension plan, that meets the requirements
    9-4  of a "qualified institutional buyer" as defined in Rule 144A of the
    9-5  Securities Act of 1933, as amended, and is:
    9-6                    (A)  a bank as defined in 3(a)(6) of the Federal
    9-7  Securities Exchange Act of 1934, as amended;
    9-8                    (B)  an insurance company as defined in Section
    9-9  2(a)(17) of the Investment Company Act of 1940, as amended;
   9-10                    (C)  an investment company registered under
   9-11  Section 8 of the Investment Company Act of 1940, as amended;
   9-12                    (D)  an investment adviser registered under
   9-13  Section 203 of the Investment Advisers Act of 1940, as amended;
   9-14                    (E)  collective trust funds as defined in Section
   9-15  3(c)(11) of the Investment Company Act of 1940, as amended;
   9-16                    (F)  an employee benefit plan or pension fund
   9-17  that is subject to the Employee Retirement Income Security Act of
   9-18  1974, as amended, excluding an employee benefit plan or pension
   9-19  fund sponsored by a publicly traded corporation registered with the
   9-20  commission;
   9-21                    (G)  a state or federal government pension plan;
   9-22                    (H)  a group composed entirely of persons
   9-23  specified in Paragraphs (A)-(F); or
   9-24                    (I)  such other persons as the commission may
   9-25  determine for reasons consistent with the policies expressed in
   9-26  Section 1.002 of this Act.
   9-27              (25)  "Key executive" means a corporation's directors
   10-1  and executive officers, a partnership's general partners, a trust's
   10-2  trustee, a joint venture's managing venturers, and each person
   10-3  possessing similar responsibilities and authorities in any other
   10-4  form of business organization.
   10-5              (26)  "License" means an owner's license, an operator's
   10-6  license, an occupational license, a casino service license, a
   10-7  manufacturer's license, or a qualification to hold an equity
   10-8  interest or creditor interest in an owner licensee.
   10-9              (27)  "Licensee" means a person issued a license under
  10-10  this Act.
  10-11              (28)  "Manufacturer licensee" means the holder of a
  10-12  manufacturer's license.
  10-13              (29)  "Manufacturer's license" means a license issued
  10-14  under Section 6.001 of this Act.
  10-15              (30)  "Negotiable instrument" means a writing that
  10-16  evidences a transaction between a natural person and an owner
  10-17  licensee at the time of the transaction whose gaming chips, tokens,
  10-18  or currency are exchanged for the instrument and includes a writing
  10-19  taken in consolidation, redemption, or payment of a prior
  10-20  instrument.
  10-21              (31)  "Occupational license" means a license issued
  10-22  under Section 5.002 of this Act.
  10-23              (32)  "Occupational licensee" means the holder of an
  10-24  occupational license.
  10-25              (33)  "Operator's license" means a license issued under
  10-26  Section 5.001 of this Act.
  10-27              (34)  "Operator licensee" means the holder of an
   11-1  operator's license.
   11-2              (35)  "Owner's license" means a license issued under
   11-3  either Section 4.002 or Section 4.003 of this Act.
   11-4              (36)  "Owner licensee" means a person holding an
   11-5  owner's license.
   11-6              (37)  "Person" includes a natural person, corporation,
   11-7  organization, business trust, estate, trust, partnership,
   11-8  association, and any other legal entity.
   11-9              (38)  "Principal manager" means a person who, under the
  11-10  regulations of the commission, holds or exercises managerial,
  11-11  supervisory, or policy-making authority over the management or
  11-12  operation of a gaming activity or casino service that in the
  11-13  judgment of the commission warrants the occupational licensing as a
  11-14  principal manager under this Act for the protection of the public
  11-15  interest.  "Principal manager" includes the key executives of a
  11-16  licensee that is a company and each person controlling such a
  11-17  company.
  11-18              (39)  "Project commitment" means, with respect to an
  11-19  application for an owner's license for a proposed casino, the total
  11-20  cost of constructing and furnishing the casino and any related
  11-21  hotel and entertainment, retail, and parking facilities, including
  11-22  the cost of acquiring and preparing the underlying real estate, the
  11-23  cost of obtaining requisite permits and approvals, the cost of
  11-24  acquiring and installing slot machines, gaming devices, and
  11-25  associated equipment, and fees for professional services and
  11-26  financing.
  11-27              (40)  "Publicly traded company" means a company that:
   12-1                    (A)  has one or more classes of securities
   12-2  registered under Section 12 of the Securities Exchange Act of 1934,
   12-3  as amended (15 U.S.C. Section 781); or
   12-4                    (B)  is an issuer subject to Section 15(d) of the
   12-5  Securities Exchange Act of 1934, as amended (15 U.S.C. Section
   12-6  780).
   12-7              The term does not include a company or other legal
   12-8  entity that has securities registered or is deemed to be an issuer
   12-9  solely because it guaranteed a security issued by an affiliate
  12-10  under a public offering or is considered to be a co-issuer of a
  12-11  public offering of securities under 17 C.F.R. Section 230.140.
  12-12              (41)  "Race book" means wagers accepted on the outcome
  12-13  of an event held at a greyhound or horse racetrack that uses the
  12-14  pari-mutuel system of wagering.
  12-15              (42)  "Regulation" means a rule, standard, directive,
  12-16  or statement of general applicability that effects the law or
  12-17  policy or that describes the procedures of the commission.  The
  12-18  term does not include:
  12-19                    (A)  a statement concerning only the internal
  12-20  management of the commission and not affecting the rights or
  12-21  procedures available to a licensee or other person;
  12-22                    (B)  a declaratory ruling;
  12-23                    (C)  an interagency memorandum;
  12-24                    (D)  the commission's decision in a contested
  12-25  case or relating to an application for a license; or
  12-26                    (E)  a notice concerning the fees to be charged
  12-27  that are necessary for the administration of this Act.
   13-1              (43)  "Slot machine" means a mechanical, electrical, or
   13-2  other device, contrivance, or machine that, on insertion of a coin,
   13-3  token, or similar object or on payment of consideration, is
   13-4  available to play or operate, the play or operation of which,
   13-5  whether by reason of the skill of the operator or the application
   13-6  of the element of chance, or both, may deliver or entitle the
   13-7  person playing or operating the machine to receive cash, premiums,
   13-8  merchandise, tokens, or any thing of value, whether the payoff is
   13-9  made automatically from the machine or is made in another manner.
  13-10        Sec. 1.004.  EXEMPTION FROM FEDERAL STATUTES.  (a)  Under the
  13-11  authority of Section 2 of an act of the Congress of the United
  13-12  States entitled "An act to prohibit transportation of gambling
  13-13  devices in interstate and foreign commerce," approved January 2,
  13-14  1951, Chapter 1194, 64 Stat. 1134, and also designated as 15 U.S.C.
  13-15  Sections 1171-1177, this state declares that this state is exempt
  13-16  from Section 2 of that certain act of Congress of the United States
  13-17  entitled "An act to prohibit transportation of gambling devices in
  13-18  interstate and foreign commerce," approved January 2, 1951, Chapter
  13-19  1194, 64 Stat. 1134 (15 U.S.C. Sections 1171-1177).
  13-20        (b)  All shipments of gaming devices, including slot
  13-21  machines, into this state, the registering, recording, and labeling
  13-22  of which has been performed by the supplier under Sections 3 and 4
  13-23  of an act of the Congress of the United States entitled "An act to
  13-24  prohibit transportation of gambling devices in interstate and
  13-25  foreign commerce," approved January 2, 1951, Chapter 1194, 64 Stat.
  13-26  1134, and also designated as 15 U.S.C. Sections 1171-1177, are
  13-27  legal shipments of the devices into this state.
   14-1                  ARTICLE 2.  TEXAS GAMING COMMISSION
   14-2        Sec. 2.001.  TEXAS GAMING COMMISSION.  (a)  The Texas Gaming
   14-3  Commission is composed of seven members.  Six members shall be
   14-4  appointed by the governor.  The chairman of the Public Safety
   14-5  Commission is an ex officio member of the commission and has the
   14-6  right to vote.
   14-7        (b)  In making appointments to the commission, the governor
   14-8  shall attempt to achieve representation of all the population
   14-9  groups of this state.
  14-10        Sec. 2.002.  QUALIFICATIONS OF COMMISSION MEMBERS.  (a)  To
  14-11  be eligible for appointment to the commission, an individual:
  14-12              (1)  must be a citizen of the United States;
  14-13              (2)  must have resided in this state for the two years
  14-14  before the date of the person's appointment;
  14-15              (3)  must submit a financial statement that contains
  14-16  the information required by Chapter 572, Government Code;
  14-17              (4)  may not own a financial or other interest in a
  14-18  person engaged in the conduct of gaming or the provision of casino
  14-19  services, or in a security issued by that person, or be related
  14-20  within the second degree by affinity or the third degree by
  14-21  consanguinity, as determined under Chapter 573, Government Code, to
  14-22  an individual who owns a financial or other interest or security;
  14-23              (5)  may not be an applicant for or holder of a license
  14-24  under this Act or hold an equity interest or creditor interest in
  14-25  an owner licensee requiring qualification under Section 4.013 of
  14-26  this Act; and
  14-27              (6)  may not be a member of the governing body of a
   15-1  political subdivision within the state.
   15-2        (b)  A member of the legislature, a person holding an
   15-3  elective office, or an officer or official of a political party is
   15-4  not eligible for appointment to the commission.
   15-5        Sec. 2.003.  TERM.  Appointed members of the commission hold
   15-6  office for staggered terms of six years.  The terms of two members
   15-7  expire February 1 of each odd-numbered year.
   15-8        Sec. 2.004.  PRESIDING OFFICER.  The governor shall designate
   15-9  one member to serve as presiding officer of the commission for a
  15-10  term of two years.
  15-11        Sec. 2.005.  BOND.  (a)  Before assuming the duties of
  15-12  office, an appointed member of the commission must execute a bond
  15-13  that is:
  15-14              (1)  payable to the state;
  15-15              (2)  in the amount of $25,000; and
  15-16              (3)  conditioned on the member's faithful performance
  15-17  of the member's duties of office.
  15-18        (b)  The bond must be approved by the governor.
  15-19        (c)  The cost of the bond shall be paid by the commission.
  15-20        Sec. 2.006.  PROHIBITION OF CERTAIN ACTIVITIES.  (a)  An
  15-21  appointed member of the commission may not:
  15-22              (1)  use the member's official authority to affect the
  15-23  result of an election or nomination for public office; or
  15-24              (2)  directly or indirectly coerce, attempt to coerce,
  15-25  command, or advise a person to pay, lend, or contribute anything of
  15-26  value to another person for political purposes.
  15-27        (b)  A commission member or the spouse of a commission member
   16-1  may not solicit or accept employment from a licensee or an
   16-2  applicant for a license under this Act before the second
   16-3  anniversary of the date the commission member's service ends.
   16-4        Sec. 2.007.  REMOVAL.  (a)  It is a ground for removal from
   16-5  the commission if an appointed member:
   16-6              (1)  does not have at the time of appointment the
   16-7  qualifications required for appointment to the commission;
   16-8              (2)  does not maintain during service on the commission
   16-9  the qualifications required for the appointment to the commission;
  16-10              (3)  violates a prohibition established by Section
  16-11  2.006 of this Act;
  16-12              (4)  cannot discharge the member's duties for a
  16-13  substantial part of the term that the member is appointed for
  16-14  because of illness or disability; or
  16-15              (5)  is absent from more than one-half of the regularly
  16-16  scheduled commission meetings that the member is eligible to attend
  16-17  during a calendar year, unless the absence is excused by majority
  16-18  vote of the commission.
  16-19        (b)  The validity of an action of the commission is not
  16-20  affected by the fact that it is taken when a ground for removal of
  16-21  a commission member exists.
  16-22        (c)  If the presiding officer has knowledge that a potential
  16-23  ground for removal exists, the presiding officer shall notify the
  16-24  governor and the attorney general.
  16-25        Sec. 2.008.  PER DIEM; EXPENSES.  Each appointed member of
  16-26  the commission is entitled to a per diem in an amount prescribed by
  16-27  appropriation for each day spent in performing the duties of the
   17-1  member and is entitled to reimbursement for actual and necessary
   17-2  expenses incurred in performing those duties.  Reimbursement for
   17-3  expenses under this section is subject to any applicable limitation
   17-4  in the General Appropriations Act.  The ex officio member is
   17-5  entitled to reimbursement for expenses from that member's agency as
   17-6  provided by law for expenses incurred in the performance of that
   17-7  member's other official duties.
   17-8        Sec. 2.009.  EXECUTIVE DIRECTOR.  (a)  The commission shall
   17-9  appoint an executive director, who serves at the pleasure of the
  17-10  commission.
  17-11        (b)  A member of the legislature, a person holding any
  17-12  elective office, or an officer or official of any political party
  17-13  is not eligible for appointment as executive director.
  17-14        (c)  The executive director must have five or more years of
  17-15  responsible administrative experience in public or business
  17-16  administration or possess broad management skills.
  17-17        (d)  The executive director shall devote the director's
  17-18  entire time and attention to the duties imposed under this Act and
  17-19  the business of the commission and may not pursue any other
  17-20  business or occupation or hold any other office for profit.
  17-21        (e)  The executive director must meet all eligibility
  17-22  requirements relating to members of the commission, except that
  17-23  there is no requirement for prior residency in this state.
  17-24        (f)  The executive director is entitled to an annual salary
  17-25  and other compensation specified by the commission.
  17-26        (g)  The executive director may not, before the second
  17-27  anniversary of the date the director's service to the commission
   18-1  ends, acquire a direct or indirect interest in or be employed by a
   18-2  person licensed in the conduct of gaming or the provision of casino
   18-3  services in this state.
   18-4        Sec. 2.010.  OFFICE.  The commission shall maintain its
   18-5  general office in the city of Austin and may maintain other offices
   18-6  determined to be necessary by the commission.
   18-7        Sec. 2.011.  MEETINGS; QUORUM.  (a)  The commission shall
   18-8  meet not less than once per month during the first 24 months of its
   18-9  existence and not less than six times in each calendar year
  18-10  thereafter.
  18-11        (b)  The commission may meet at other times at the call of
  18-12  the presiding officer or as provided by commission rule.
  18-13        (c)  A majority of the active members is a quorum of the
  18-14  commission.
  18-15        Sec. 2.012.  APPLICATION OF OTHER LAWS.  (a)  The commission
  18-16  is subject to Chapter 325, Government Code (Texas Sunset Act).
  18-17  Unless continued in existence as provided by that chapter, the
  18-18  commission is abolished and this Act expires September 1, 2007.
  18-19        (b)  The commission is subject to the open meetings law,
  18-20  Chapter 551, Government Code.
  18-21        (c)  The commission is subject to the open records law,
  18-22  Chapter 552, Government Code.
  18-23        (d)  The commission is subject to Chapter 2001, Government
  18-24  Code (Administrative Procedure Act).
  18-25        Sec. 2.013.  AUTHORITY TO SUE OR BE SUED.  (a)  The
  18-26  commission may sue and be sued.
  18-27        (b)  Service of process in a suit against the commission may
   19-1  be secured by serving the executive director.
   19-2        (c)  A suit against the commission must be brought in Travis
   19-3  County.
   19-4        Sec. 2.014.  AUDIT.  The transactions of the commission are
   19-5  subject to audit by the state auditor under Chapter 321, Government
   19-6  Code.
   19-7       ARTICLE 3.  POWERS AND DUTIES OF COMMISSION AND EMPLOYEES
   19-8        Sec. 3.001.  GENERAL POWERS.  (a)  All aspects of this Act,
   19-9  including those relating to licensing, qualification, execution,
  19-10  and enforcement, shall be administered by the executive director
  19-11  and the commission for the protection of the public and in the
  19-12  public interest in accordance with Chapter 2001, Government Code,
  19-13  and other policies of this state.  A person who is aggrieved by a
  19-14  commission decision in a contested case and who has exhausted
  19-15  available administrative remedies is entitled to judicial review
  19-16  under Chapter 2001, Government Code.
  19-17        (b)  The commission and the executive director have full
  19-18  power and authority to hold hearings, and in connection to the
  19-19  hearings, to issue subpoenas, to compel the attendance of witnesses
  19-20  at any place in this state, to administer oaths, and to require
  19-21  testimony under oath.  Any process or notice relating to a hearing
  19-22  may be served in the manner provided for service of process and
  19-23  notices in civil actions.  The commission and the executive
  19-24  director may pay transportation and other expenses of witnesses as
  19-25  they deem reasonable and proper.
  19-26        (c)  The executive director and the executive director's
  19-27  authorized employees may:
   20-1              (1)  inspect and examine a premises where gaming is
   20-2  conducted or equipment or supplies, including a slot machine, a
   20-3  gaming device, or associated equipment that is manufactured,
   20-4  assembled, produced, programmed, sold, leased, marketed,
   20-5  distributed, repaired, or modified for use in gaming;
   20-6              (2)  for good cause, seize and remove from a premises
   20-7  and impound equipment or supplies for the purpose of examination
   20-8  and inspection; and
   20-9              (3)  demand access to, inspect, examine, photocopy, or
  20-10  audit papers, books, and records of applicants and licensees, on
  20-11  their premises or elsewhere as practicable, in the presence of the
  20-12  licensee or the licensee's agent, reporting the gross income
  20-13  produced by a gaming business, verification of the gross income,
  20-14  and other matters affecting the enforcement of this Act.
  20-15        (d)  For the purpose of conducting audits after the cessation
  20-16  of gaming by a licensee, a former licensee shall furnish, on demand
  20-17  of the executive director or the executive director's authorized
  20-18  employees, books, papers, and records as necessary to conduct the
  20-19  audits.  The former licensee shall maintain all books, papers, and
  20-20  records necessary for audits for three years after the date of the
  20-21  surrender or revocation of the license.  If the former licensee
  20-22  seeks judicial review of a deficiency determination or files a
  20-23  petition for a redetermination, the former licensee must maintain
  20-24  all books, papers, and records until a final order is entered on
  20-25  the determination.
  20-26        Sec. 3.002.  COMMISSION RULEMAKING AUTHORITY.  (a)  The
  20-27  commission shall adopt, amend, or repeal regulations, consistent
   21-1  with the policy, objectives, and purposes of this Act, as it deems
   21-2  necessary or desirable in the public interest in carrying out the
   21-3  policy and provisions of this Act.
   21-4        (b)  These regulations shall set out:
   21-5              (1)  the method and form of application that an
   21-6  applicant for a license must follow and complete before
   21-7  consideration of an application by the executive director or the
   21-8  commission;
   21-9              (2)  the information to be furnished by an applicant or
  21-10  licensee concerning antecedents, habits, character, associates,
  21-11  criminal record, business activities, and financial affairs;
  21-12              (3)  the criteria to be used in the award, revocation,
  21-13  and suspension of licenses;
  21-14              (4)  the information to be furnished by a licensee
  21-15  relating to the licensee's employees;
  21-16              (5)  the manner and procedure of hearings conducted by
  21-17  the commission or a hearing examiner of the commission;
  21-18              (6)  the payment of fees or costs an applicant must
  21-19  pay;
  21-20              (7)  the procedures for the issuance of temporary
  21-21  licenses and temporary qualification to hold equity interests and
  21-22  creditor interests in owner licensees;
  21-23              (8)  the manner and method of collection and payment of
  21-24  fees and the issuance of licenses;
  21-25              (9)  the definition of "unsuitable method of
  21-26  operation";
  21-27              (10)  the conditions under which the nonpayment of a
   22-1  gambling debt by a licensee shall be deemed grounds for
   22-2  disciplinary action;
   22-3              (11)  the manner of approval of new games, slot
   22-4  machines, and gaming devices;
   22-5              (12)  access to confidential information obtained under
   22-6  this Act and ensure that the confidentiality of the information is
   22-7  maintained and protected;
   22-8              (13)  financial reporting and internal control
   22-9  requirements for licensees;
  22-10              (14)  the manner in which winnings, compensation from
  22-11  games and gaming devices, and gross gaming revenue must be computed
  22-12  and reported by an owner licensee;
  22-13              (15)  requirements for the annual audit of the
  22-14  financial statements of a licensee;
  22-15              (16)  requirements for periodic financial reports from
  22-16  each licensee consistent with standards and intervals prescribed by
  22-17  the commission;
  22-18              (17)  the procedures to be followed by a licensee for
  22-19  excluding a person from a casino; and
  22-20              (18)  the procedures for exempting or waiving
  22-21  institutional investors from the licensing requirements for
  22-22  shareholders of publicly traded corporations.
  22-23        Sec. 3.003.  AUTHORITY OF EXECUTIVE DIRECTOR.  (a)  The
  22-24  executive director may create executive positions as the director
  22-25  considers necessary to implement the provisions of this Act.
  22-26        (b)  The executive director shall employ division directors
  22-27  in the areas of audit, investigation, and enforcement.  The
   23-1  director of the audit division must be a certified public
   23-2  accountant, have five or more years of progressively responsible
   23-3  experience in general accounting, and have a comprehensive
   23-4  knowledge of the principles and practices of corporate finance or
   23-5  must possess qualifications of an expert in the field of corporate
   23-6  finance and auditing, general finance, gaming, and economics.
   23-7  Other directors must possess five or more years of training and
   23-8  experience in the fields of investigation, law enforcement, law, or
   23-9  gaming.
  23-10        (c)  The executive director may investigate, for the purpose
  23-11  of prosecution, a suspected criminal violation of this Act.  For
  23-12  the purpose of the administration and enforcement of this Act, the
  23-13  executive director and employees designated by the executive
  23-14  director have the powers of a peace officer of this state.
  23-15        (d)  The executive director, in pursuit of the attainment of
  23-16  the objectives and the purposes of this Act, may:
  23-17              (1)  direct and supervise all administrative actions of
  23-18  the commission;
  23-19              (2)  bring legal action in the name and on behalf of
  23-20  the commission;
  23-21              (3)  make, execute, and effect an agreement or contract
  23-22  authorized by the commission;
  23-23              (4)  employ the services of persons considered
  23-24  necessary for consultation or investigation and set the salaries of
  23-25  or contract for the services of legal, professional, technical, and
  23-26  operational personnel and consultants, except that, for the purpose
  23-27  of implementing this Act, additional legal assistance may be
   24-1  retained only with the approval of the attorney general;
   24-2              (5)  acquire furnishings, equipment, supplies,
   24-3  stationery, books, and all other things the director deems
   24-4  necessary or desirable in carrying out the director's functions;
   24-5  and
   24-6              (6)  perform such other duties the director may
   24-7  consider necessary to effect the purposes of this Act.
   24-8        (e)  Except as otherwise provided in this Act, the costs of
   24-9  administration incurred by the executive director shall be paid in
  24-10  the same manner as other claims against the state are paid.
  24-11        Sec. 3.004.  OFFICE OF HEARING EXAMINERS.  (a)  The
  24-12  commission shall create an office of hearing examiners to assist
  24-13  the commission in carrying out its powers and duties under this
  24-14  Act.
  24-15        (b)  The office of hearing examiners shall hold hearings
  24-16  under the authority of the commission on matters relating to the
  24-17  commission's administration of this Act as the commission orders
  24-18  and shall report after hearing in the manner prescribed by the
  24-19  commission.
  24-20        (c)  The office of hearing examiners is independent of the
  24-21  executive director and is under the exclusive control of the
  24-22  commission.
  24-23        (d)  The office of hearing examiners shall be under the
  24-24  direction of a chief hearing examiner appointed by the commission.
  24-25        (e)  The commission may authorize the chief hearing examiner
  24-26  to delegate to one or more hearing examiners the authority to hold
  24-27  any hearing called by the chief hearing examiner.
   25-1        (f)  The chief hearing examiner and all assistant hearing
   25-2  examiners employed by the office of hearing examiners shall be
   25-3  attorneys licensed to practice law in this state.
   25-4        (g)  The chief hearing examiner and all assistant hearing
   25-5  examiners may administer oaths, receive evidence, and issue
   25-6  subpoenas to compel the attendance of witnesses and the production
   25-7  of papers and documents in all matters delegated by the commission.
   25-8        (h)  The chief hearing examiner and all assistant hearing
   25-9  examiners are entitled to an annual salary and other compensation
  25-10  specified by the commission.
  25-11        (i)  The office of hearing examiners may contract for
  25-12  additional services it deems necessary to carry out its powers.
  25-13        (j)  A final ruling of the commission is subject to judicial
  25-14  review under Chapter 2001, Government Code.
  25-15        Sec. 3.005.  RECORDS.  (a)  The executive director shall
  25-16  maintain a file of all applications for licenses under this Act,
  25-17  together with a record of all action taken with respect to the
  25-18  applications.
  25-19        (b)  The commission and the executive director may maintain
  25-20  other files and records they consider desirable.
  25-21        (c)  All the information or data set forth in Subdivisions
  25-22  (1)-(4) of this subsection is confidential and may be revealed,
  25-23  wholly or partly, only in the course of the necessary
  25-24  administration of this Act, under Section 12.002 of this Act, or on
  25-25  the lawful order of a court of competent jurisdiction, except that
  25-26  the executive director or the commission may reveal the information
  25-27  or data to an authorized agent of any agency of the United States,
   26-1  a state, or an authorized political subdivision of this state under
   26-2  regulations adopted by the commission.  Notice of the content of
   26-3  any information or data furnished or released under this subsection
   26-4  may be given to any affected applicant or licensee as prescribed by
   26-5  regulations adopted by the commission.  The following information
   26-6  is confidential:
   26-7              (1)  information or data requested by the commission or
   26-8  the executive director to be furnished to either of them under this
   26-9  Act or that may otherwise be obtained relating to the finances,
  26-10  earnings, or revenue of an applicant or licensee;
  26-11              (2)  information or data pertaining to an applicant's
  26-12  criminal record, antecedents, and background that has been
  26-13  furnished to or obtained by the commission or the executive
  26-14  director from any source;
  26-15              (3)  information or data provided to the members of the
  26-16  commission or the executive director or its employees by a
  26-17  governmental agency or an informer or on the assurance that the
  26-18  information will be held in confidence and treated as confidential;
  26-19  and
  26-20              (4)  information or data obtained by the executive
  26-21  director or the commission from a casino service licensee relating
  26-22  to the manufacturing, modification, or repair of slot machines or
  26-23  gaming devices.
  26-24        Sec. 3.006.  REPRESENTATION BY ATTORNEY GENERAL.  (a)  The
  26-25  attorney general shall represent the commission and the executive
  26-26  director in any proceeding to which the commission or the executive
  26-27  director is a party under this Act or in any suit filed against the
   27-1  commission or executive director.
   27-2        (b)  The office of the attorney general shall also advise the
   27-3  commission and the executive director in all other matters,
   27-4  including representing the commission when the commission acts in
   27-5  its official capacity.
   27-6                      ARTICLE 4.  OWNER'S LICENSE
   27-7        Sec. 4.001.  OWNER'S LICENSE.  (a)  Gaming may lawfully be
   27-8  conducted in a casino operating under an owner's license.
   27-9        (b)  It is unlawful for a person to own an equity interest in
  27-10  a casino in this state if an owner's license has not been issued
  27-11  for the casino.
  27-12        (c)  A separate owner's license must be obtained for each
  27-13  casino conducting gaming.
  27-14        Sec. 4.002.  ALLOCATION OF OWNER'S LICENSES.  (a)  The
  27-15  commission shall award owner's licenses to applicants in counties
  27-16  within the following population classifications:
  27-17              (1)  four owner's licenses may be awarded to a county
  27-18  with a population of more than 2.5 million;
  27-19              (2)  not fewer than three owner's licenses may be
  27-20  awarded to a county with a population of not less than 1.8 million
  27-21  but not more than 2.5 million;
  27-22              (3)  not fewer than two but not more than three owner's
  27-23  licenses may be awarded to a county with a population of not less
  27-24  than 1 million but less than 1.8 million;
  27-25              (4)  not less than one owner's license may be awarded
  27-26  to all counties with a population of not less than 380,000 but less
  27-27  than 1 million;
   28-1              (5)  not fewer than six owner's licenses may be awarded
   28-2  to all counties with a population of not less than 180,000 but less
   28-3  than 380,000;
   28-4              (6)  not fewer than two owner's licenses may be awarded
   28-5  to all counties that are contiguous to an international boundary
   28-6  and have a population of 35,000 or more; and
   28-7              (7)  other owner's licenses may be awarded in the
   28-8  discretion of the commission.
   28-9        (b)  Notwithstanding Subsection (a) of this section:
  28-10              (1)  no more than 24 owner's licenses may be issued by
  28-11  the commission under this section;
  28-12              (2)  a license may not be issued in a county unless the
  28-13  voters of the county or of a municipality located within the county
  28-14  have adopted a proposition legalizing casino gaming at a local
  28-15  option election held under this Act;
  28-16              (3)  not more than four owner's licenses may be issued
  28-17  in one county;
  28-18              (4)  a license may not be issued in a county or
  28-19  municipality in which gaming is being conducted under the Indian
  28-20  Gaming Regulatory Act (25 U.S.C. Section 2701 et seq.) as of the
  28-21  effective date of this Act; and
  28-22              (5)  not fewer than three of the owner's licenses
  28-23  allocated under Subsections (a)(5) and (6) may be awarded in
  28-24  counties that contain an island in the Gulf of Mexico on which
  28-25  there is an incorporated city with a population of at least 50,000,
  28-26  and in allocating all licenses under this subsection, the
  28-27  commission shall consider, in addition to the other suitability
   29-1  criteria described in this Act, the ability of the proposed casino
   29-2  facility to attract interstate or international tourism and to
   29-3  develop jobs within political subdivisions in which there has been
   29-4  a history of unemployment in excess of six percent for a period of
   29-5  three consecutive years out of the preceding five years before the
   29-6  effective date of this Act as determined by the commission.
   29-7        (c)  For purposes of determining the location of a casino
   29-8  under this Act, a casino is considered to be located in the
   29-9  municipality in which the main public entrance to the casino is
  29-10  located or, if the main public entrance is located outside a
  29-11  municipality, in the county in which the entrance is located.
  29-12        (d)  A person may not beneficially own, directly or
  29-13  indirectly, an equity interest of more than five percent of the
  29-14  total equity interest in more than three owner licensees.
  29-15        (e)  A person may not operate, either under an owner's
  29-16  license or under an operator's license, more than three casinos.
  29-17        (f)  If gaming is not approved in a county or municipality
  29-18  within a county to which an owner's license has been allocated
  29-19  through a local option election in accordance with Section 14.001
  29-20  of this Act within three years after the effective date of this
  29-21  Act, or if no applicant for an owner's license in a county that a
  29-22  license has been allocated to has been awarded an owner's license
  29-23  by the commission, the commission may award the licenses allocated
  29-24  to the county in Subsection (a) of this section to any other county
  29-25  at the commission's discretion.
  29-26        Sec. 4.003.  ADDITIONAL OWNER'S LICENSES FOR CERTAIN
  29-27  PARI-MUTUEL FACILITIES.  (a)  In addition to the owner's licenses
   30-1  provided under Section 4.002 of this Act, the commission shall
   30-2  issue an owner's license to be held in conjunction with each
   30-3  license to operate a greyhound or Class I horse racetrack under the
   30-4  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) held
   30-5  on the effective date of this Act.
   30-6        (b)  The issuance of an owner's license under this section is
   30-7  subject to the applicant's satisfaction of all application,
   30-8  applicant eligibility, suitability, and other criteria applicable
   30-9  to applicants under Section 4.002 of this Act, except those
  30-10  relating to requisite economic impact under Section 4.007 of this
  30-11  Act.  Except as otherwise provided in Subsection (a) of this
  30-12  section, all provisions of this Act apply equally to licensees
  30-13  under this section and Section 4.002 of this Act.
  30-14        (c)  Notwithstanding anything to the contrary in the Texas
  30-15  Racing Act (Article 179e, Vernon's Texas Civil Statutes), all
  30-16  matters relating to owner's licenses issued under this section,
  30-17  including licensing, manner of operation, and enforcement, are
  30-18  regulated exclusively by the commission.
  30-19        (d)  Fees and taxes imposed with respect to owner's licenses
  30-20  under this section shall be collected and paid as required by this
  30-21  Act.
  30-22        (e)  Except as to simulcast common pool wagering conducted in
  30-23  a casino and except as otherwise authorized by the commission, the
  30-24  casino operations and financial records of an owner licensee under
  30-25  this section shall be kept separate from the racing operations and
  30-26  records of the licensee.
  30-27        (f)  The commission shall adopt regulations requiring the
   31-1  continued common ownership of a casino licensed under this section
   31-2  and the racetrack associated with the casino.
   31-3        Sec. 4.004.  APPLICATION.  (a)  Application for an owner's
   31-4  license shall be made according to the regulations of the
   31-5  commission and shall contain information the commission finds
   31-6  necessary to determine the suitability and eligibility of the
   31-7  applicant, the eligibility of the proposed location, and the
   31-8  economic impact of the overall casino project.
   31-9        (b)  In addition to any other information which the
  31-10  commission may require, applications shall include the following
  31-11  information concerning the feasibility of the overall casino
  31-12  project:
  31-13              (1)  proof that gaming has been approved through a
  31-14  local option election by the municipality where the applicant's
  31-15  proposed casino is to be located or by the county where the casino
  31-16  is to be located if the casino is proposed in an unincorporated
  31-17  area;
  31-18              (2)  evidence that the applicant possesses, or has the
  31-19  right to acquire, sufficient real property on which the proposed
  31-20  casino will be located in order to allow the applicant's
  31-21  construction and operation of the casino project substantially as
  31-22  proposed;
  31-23              (3)  evidence that the applicant possesses, or
  31-24  reasonably expects to obtain, all state, county, and municipal
  31-25  permits and approvals necessary for the construction and operation
  31-26  of the proposed casino within the time periods prescribed in this
  31-27  Act;
   32-1              (4)  evidence that the applicant possesses, or
   32-2  reasonably expects to obtain, all funds or financing necessary to
   32-3  construct and operate the applicant's proposed casino within the
   32-4  time periods prescribed in this Act; and
   32-5              (5)  evidence that the applicant is prepared to begin
   32-6  construction of its proposed casino promptly on receiving an
   32-7  owner's license and to proceed with the construction of the casino
   32-8  without unnecessary delay.
   32-9        (c)  Applicants may apply for more than one owner's license
  32-10  relating to more than one casino, but must submit a separate
  32-11  application for each casino for which an owner's license is sought.
  32-12        (d)  An application for an owner's license must be
  32-13  accompanied by the nonrefundable application fee set out in Section
  32-14  8.001 of this Act.
  32-15        Sec. 4.005.  MANDATORY REQUIREMENTS.  (a)  During the first
  32-16  two years an individual holds an owner's license, the individual
  32-17  must be a resident of this state and comply with the residency
  32-18  requirements set out by the commission.
  32-19        (b)  A company is eligible to apply for and hold an owner's
  32-20  license only if:
  32-21              (1)  the company is incorporated or organized and in
  32-22  good standing in this state or organized under the laws of another
  32-23  state of the United States and qualified to do business in this
  32-24  state;
  32-25              (2)  the company complies with all the requirements of
  32-26  the laws of this state; and
  32-27              (3)(A)  persons who beneficially own at least one-third
   33-1  of the equity interest of the company in accordance with the
   33-2  beneficial ownership criteria established by the commission are
   33-3  residents of this state under the residency requirements set out by
   33-4  the commission; or
   33-5                    (B)  the company has held an owner's license
   33-6  under this Act for two years or more.
   33-7        (c)  To be eligible to receive an owner's license to own a
   33-8  casino located in any municipality or located in an unincorporated
   33-9  area of a county, an applicant must submit its application to the
  33-10  commission not less than 60 days after the later of the date that
  33-11  the governing body of the municipality or county gives written
  33-12  notice to the commission under Section 14.006 of this Act that
  33-13  gaming as authorized under this Act has been legalized through a
  33-14  local option election or the date that the commission establishes
  33-15  procedures for application.
  33-16        (d)  An application may not be considered filed for purposes
  33-17  of this Act that does not include the information prescribed in
  33-18  Section 4.004(b) of this Act or that is not accompanied by the
  33-19  prescribed application fee.
  33-20        (e)  This section does not supersede the residency and
  33-21  ownership requirements prescribed in the Texas Racing Act (Article
  33-22  179e, Vernon's Texas Civil Statutes) with respect to ownership and
  33-23  operation of pari-mutuel racetracks.
  33-24        Sec. 4.006.  LICENSE AWARD CONSIDERATIONS.  (a)  The
  33-25  commission shall determine the initial and continuing suitability
  33-26  of each applicant for or holder of an owner's license based on
  33-27  suitability criteria the commission adopts to ensure that all owner
   34-1  licensees are of good character, honesty, integrity, and financial
   34-2  stability, that an owner licensee has sufficient business probity,
   34-3  competence, and experience in gaming, and that an owner licensee is
   34-4  otherwise qualified to be licensed.
   34-5        (b)  The commission shall give due consideration to the
   34-6  protection of the public health, safety, morals, and general
   34-7  welfare of the citizens of this state and for the reputation of the
   34-8  state's gaming industry.
   34-9        (c)  The burden of proving suitability to receive and hold an
  34-10  owner's license is on the applicant or licensee.
  34-11        (d)  In considering the initial and continuing suitability of
  34-12  an applicant for or holder of an owner's license, the commission
  34-13  may consider the suitability of:
  34-14              (1)  each person holding an equity interest or creditor
  34-15  interest in the applicant or holder;
  34-16              (2)  each person holding, or proposed to receive, an
  34-17  operator's license, occupational license, or manufacturer's license
  34-18  employed by or doing business with the applicant or holder; and
  34-19              (3)  each affiliate of the applicant or holder.
  34-20        (e)  An applicant for or holder of an owner's license may not
  34-21  receive or hold an owner's license if the person:
  34-22              (1)  has ever been convicted of a felony under the laws
  34-23  of this state, any other state, or the United States;
  34-24              (2)  has ever been convicted of a gaming violation
  34-25  under the laws of this state or any other state;
  34-26              (3)  has ever knowingly or intentionally submitted an
  34-27  application for a license under this Act that contained false
   35-1  information;
   35-2              (4)  served as a principal manager for a person who
   35-3  committed a violation of Subsection (e)(1), (2), or (3) of this
   35-4  section;
   35-5              (5)  retains or employs another person who violated
   35-6  Subsection (e)(1), (2), (3), or (4) of this section;
   35-7              (6)  beneficially owns any material equity interest or
   35-8  creditor interest in the applicant or holder and has violated
   35-9  Subdivision (1), (2), (3), or (4) of this subsection;
  35-10              (7)  holds a manufacturer's license or casino service
  35-11  license under this Act;
  35-12              (8)  is a member of the commission; or
  35-13              (9)  is a member of the judiciary or an elected
  35-14  official of this state.
  35-15        (f)  The commission may adopt regulations providing for a
  35-16  person's reciprocal determination of suitability to hold an owner's
  35-17  license under this Act based on:
  35-18              (1)  a determination of suitability to own and operate
  35-19  a casino in any other jurisdiction the commission deems reasonable
  35-20  in light of the purpose of this Act; or
  35-21              (2)  the person's ownership of a greyhound or Class I
  35-22  horse racing facility under the Texas Racing Act (Article 179e,
  35-23  Vernon's Texas Civil Statutes).
  35-24        Sec. 4.007.  ECONOMIC IMPACT ANALYSIS.  (a)  In determining
  35-25  whether or, in the case of multiple applicants competing for a
  35-26  limited number of owner's licenses within a county, to whom to
  35-27  grant an owner's license, the commission shall consider the
   36-1  following factors:
   36-2              (1)  the relative prospective revenues to be collected
   36-3  by the state from the conduct of gaming at the casino and the
   36-4  overall economic impact of each competing applicant's proposed
   36-5  casino and associated facilities;
   36-6              (2)  the relative number of residents of this state who
   36-7  would be employed in an applicant's proposed casino and any
   36-8  proposed associated hotel and nongaming businesses and the relative
   36-9  extent of the applicant's good faith affirmative action plan to
  36-10  recruit, train, and upgrade minorities in all employment
  36-11  classifications;
  36-12              (3)  the relative extent to which an applicant's
  36-13  proposed casino and any proposed associated hotel and nongaming
  36-14  businesses could be reasonably expected to encourage interstate
  36-15  tourism to the state;
  36-16              (4)  the relative extent to which the scope, design,
  36-17  location, and construction of the applicant's casino and any
  36-18  associated hotel and nongaming businesses could be reasonably
  36-19  expected to contribute to developing a first-class gaming industry
  36-20  in this state; and
  36-21              (5)  the applicant's experience in conducting licensed
  36-22  gaming operations and the applicant's financial ability to promptly
  36-23  construct and adequately maintain the casino sought to be licensed.
  36-24  In evaluating the applicant's experience in conducting licensed
  36-25  gaming operations, the commission shall consider the experience of
  36-26  partners of the applicant, the experience of affiliated companies
  36-27  of the applicant or its partners, the experience of key personnel
   37-1  of the applicant or its partners, and the experience of operating
   37-2  companies under contract with the applicant.
   37-3        (b)  To ensure that a requisite level of economic development
   37-4  benefiting the people of this state accompanies each casino for
   37-5  which an owner's license is granted under this Act, the commission
   37-6  shall require an applicant, as a condition to receiving and holding
   37-7  an owner's license under Section 4.002 of this Act, to commit to
   37-8  provide new investment in conjunction with the casino in the
   37-9  following amounts:
  37-10              (1)  casinos to be licensed in a county with a
  37-11  population of 1 million or more shall have a minimum project
  37-12  commitment of $100 million;
  37-13              (2)  casinos to be licensed in a county with a
  37-14  population of 500,000 or more but less than 1 million shall have a
  37-15  minimum project commitment of $80 million;
  37-16              (3)  casinos to be licensed in a county with a
  37-17  population of 250,000 or more but less than 500,000 shall have a
  37-18  minimum project commitment of $60 million;
  37-19              (4)  casinos to be licensed in any county with a
  37-20  population of 150,000 or more but less than 250,000 shall have a
  37-21  minimum project commitment of $40 million; and
  37-22              (5)  casinos to be licensed in any county with a
  37-23  population of less than 150,000 shall have a minimum project
  37-24  commitment of $30 million.
  37-25        Sec. 4.008.  PROOF OF LOCAL OPTION ELECTION.  The commission
  37-26  may not accept an application for an owner's license relating to a
  37-27  casino proposed to be located in a municipality or in an
   38-1  unincorporated area of a county before receiving certification from
   38-2  the governing body of the municipality or county that gaming has
   38-3  been legalized through a local option election.
   38-4        Sec. 4.009.  REVIEW OF APPLICATION.  (a)  The commission
   38-5  shall issue an order approving or denying an application for an
   38-6  owner's license not more than six months after the date of the
   38-7  filing of the application.
   38-8        (b)  The commission may adopt regulations for awarding
   38-9  temporary or interim licensing the commission finds necessary in
  38-10  the administration of this Act.
  38-11        Sec. 4.010.  TRANSFERABILITY.  An owner's license is not
  38-12  transferable and relates only to the specific site identified in
  38-13  the license.
  38-14        Sec. 4.011.  DENIAL AND REVOCATION.  (a)  The commission has
  38-15  the full and absolute power and authority to deny an application or
  38-16  revoke an owner's license for a reasonable cause.
  38-17        (b)  If the commission determines it has reasonable grounds
  38-18  to believe that an owner licensee may be unsuitable to continue to
  38-19  hold an owner's license under this Act, the commission shall
  38-20  conduct an investigation and hearing under Section 12.001 of this
  38-21  Act and may, based on its determination in the hearing, suspend,
  38-22  limit, or revoke the license.  On suspension or revocation of an
  38-23  owner's license, the licensee must immediately cease all gaming.
  38-24        (c)  If the holder of an owner's license fails to begin
  38-25  construction of a casino within one year after the receipt of the
  38-26  owner's license, or fails to begin gaming operations within three
  38-27  years after the receipt of the license, the license is forfeited,
   39-1  unless the commission, for good cause, had previously granted an
   39-2  appropriate extension of time.
   39-3        (d)  The right to receive and to continue to hold an owner's
   39-4  license is a pure and absolute revocable privilege, and not a
   39-5  right, property or otherwise, under the constitutions of the United
   39-6  States or this state.  An applicant for or holder of an owner's
   39-7  license does not have a vested interest or right in a license
   39-8  granted under this Act.
   39-9        Sec. 4.012.  REGISTRATION OF INTEREST IN LICENSE.  (a)
  39-10  Except as provided by Subsection (b) of this section, a person who
  39-11  directly or indirectly owns an equity or creditor interest in an
  39-12  applicant for or holder of an owner's license shall register and
  39-13  qualify with the commission under the regulations adopted by the
  39-14  commission and shall provide information the commission finds
  39-15  necessary to determine the suitability and eligibility of the
  39-16  person to retain the interest.
  39-17        (b)  The following persons are not required to register or
  39-18  qualify under this section:
  39-19              (1)  a key employee of the owner licensee that is
  39-20  required to apply for an occupational license under Section 5.002
  39-21  of this Act;
  39-22              (2)  an institutional investor;
  39-23              (3)  a person that beneficially owns five percent or
  39-24  less of the total equity or creditor interest of the owner
  39-25  licensee; and
  39-26              (4)  any other group or class of persons that the
  39-27  commission, by regulation, exempts from registration or
   40-1  qualification.
   40-2        (c)  A registration filed under this section must be
   40-3  accompanied by the application fee set out in Section 8.001 of this
   40-4  Act.
   40-5        Sec. 4.013.  TRANSFERABILITY OF INTEREST.  (a)  Except as
   40-6  provided by this subsection, an owner licensee may not issue an
   40-7  equity or creditor interest to a person before the commission's
   40-8  determination of the qualification of the proposed subscriber or
   40-9  purchaser to hold the interest under this Act.  An owner licensee
  40-10  that is a publicly held company may issue equity or creditor
  40-11  interests of five percent or less of its equity or creditor
  40-12  interest to any person without the consent of the commission.
  40-13        (b)  A person beneficially owning more than five percent of
  40-14  the equity or creditor interest of an owner licensee may not
  40-15  transfer any portion of the interest in the licensee to any person
  40-16  before the commission's determination of the qualification of the
  40-17  proposed transferee to hold the interest under this Act.
  40-18        (c)  A subscriber or proposed transferee of an interest by an
  40-19  owner licensee shall provide the commission with information the
  40-20  commission considers necessary to determine the qualification of
  40-21  the person.  The commission, not later than 60 days after the date
  40-22  of the application, shall determine the qualification of a
  40-23  subscriber or proposed transferee and approve or deny the issuance
  40-24  or transfer.
  40-25        Sec. 4.014.  DETERMINATION OF QUALIFICATION.  (a)  The
  40-26  commission shall determine the qualification of a person to acquire
  40-27  or continue to hold an equity or creditor interest in an applicant
   41-1  for or holder of an owner's license based on the qualification
   41-2  requirements the commission adopts for the protection of the public
   41-3  interests to ensure that the persons holding securities issued by
   41-4  licensees are of good character, honesty, integrity, and financial
   41-5  stability, and that they are otherwise qualified to hold the
   41-6  interest.
   41-7        (b)  The burden of proving qualification to acquire or hold
   41-8  an equity or creditor interest in a licensee is on the person
   41-9  acquiring or holding the interest.
  41-10        (c)  A person is unsuitable to acquire or retain an equity or
  41-11  creditor interest in an applicant for or holder of an owner's
  41-12  license if the person would be unsuitable to receive an owner's
  41-13  license under Section 4.006(e) of this Act.
  41-14        (d)  If the commission has reasonable grounds to believe that
  41-15  a person holding an equity or creditor interest in an applicant for
  41-16  or holder of an owner licensee may be unqualified to retain its
  41-17  interest, the commission shall conduct an investigation and hearing
  41-18  under Section 12.001 of this Act and may, based on its
  41-19  determination, issue an unsuitability finding and divestiture order
  41-20  to the holder of the interest and the issuer of the interest.  On
  41-21  receipt of a divestiture order, the person holding the interest
  41-22  shall tender its entire interest for purchase to the issuer or a
  41-23  third party on terms the commission approves.
  41-24        (e)  If the commission issues an unsuitability finding and
  41-25  divestiture order to a holder of an equity interest or creditor
  41-26  interest, the person subject to the order may not:
  41-27              (1)  receive, directly or indirectly, a dividend,
   42-1  interest, payment, or distribution of any kind relating to the
   42-2  security that is the subject of the order; or
   42-3              (2)  exercise, directly or indirectly, any voting power
   42-4  or other right with respect to the security the order relates to.
   42-5        (f)  A person subject to an order may receive payment for the
   42-6  sale of the person's interest on terms the commission approves.
   42-7            ARTICLE 5.  OPERATOR AND OCCUPATIONAL LICENSES
   42-8        Sec. 5.001.  OPERATOR'S LICENSE.  (a)  It is an offense for a
   42-9  person to provide services as a casino operator without holding an
  42-10  operator's license.
  42-11        (b)  A casino operator must hold a separate license for each
  42-12  casino that the casino operator operates unless the operator is
  42-13  also the owner of the premises and holds an owner's license for the
  42-14  premises.
  42-15        Sec. 5.002.  OCCUPATIONAL LICENSE.  (a)  It is an offense for
  42-16  a person to be employed as a gaming employee without holding an
  42-17  occupational license.
  42-18        (b)  A holder of an owner's or operator's license is not
  42-19  required to obtain an occupational license to provide services as a
  42-20  gaming employee in the casino to which the license relates.
  42-21        (c)  An owner shall at all times have not less than one
  42-22  occupational licensee designated as a "key employee" having
  42-23  responsibility over all gaming activities who shall be available at
  42-24  the casino at all times when gaming is conducted on the licensee's
  42-25  premises.
  42-26        (d)  A gaming employee either designated as a "key employee"
  42-27  or determined to be a "key employee" by the commission shall be
   43-1  issued an occupational license designated as a "key employee
   43-2  occupational license."  In determining whether an employee is a key
   43-3  employee, the commission is not restricted by the title of the job
   43-4  performed by the employee but may consider the functions and
   43-5  responsibilities of the employee in making decisions.
   43-6        (e)  A person employed in the field of gaming as a gaming
   43-7  employee shall obtain an occupational license designated as a
   43-8  "support occupational license."   A person required to hold a
   43-9  support occupational license may not be a gaming employee of or
  43-10  assist the owner or operator licensee until the employee obtains a
  43-11  support occupational license.  A person licensed as a key employee
  43-12  does not need to obtain a support occupational license.
  43-13        Sec. 5.003.  APPLICATION.  (a)  Application for an operator's
  43-14  license or an occupational license shall be made in compliance with
  43-15  regulations of the commission and shall contain information the
  43-16  commission finds necessary to determine the suitability and
  43-17  eligibility of the applicant to function as a casino operator or to
  43-18  be employed or retained as a gaming employee.
  43-19        (b)  An application for an operator's license or an
  43-20  occupational license must be accompanied by the required
  43-21  application fee.
  43-22        (c)  The commission may issue a temporary operator's license
  43-23  and a temporary occupational license.
  43-24        Sec. 5.004.  RESIDENCY.  A person is eligible to apply for
  43-25  and hold an operator's license or an occupational license under
  43-26  this Act without regard to the residency of the applicant.
  43-27        Sec. 5.005.  DETERMINATION OF SUITABILITY.  (a)  The
   44-1  commission shall determine the suitability of an applicant for or
   44-2  holder of an operator's license or an occupational license based
   44-3  upon suitability criteria the commission adopts in order to ensure
   44-4  that a licensee:
   44-5              (1)  is of good character, honesty, and integrity;
   44-6              (2)  has sufficient business probity, competence, and
   44-7  training or experience in the gaming industry to perform the
   44-8  function contemplated; and
   44-9              (3)  is otherwise qualified to be licensed.
  44-10        (b)  The burden of proving suitability to receive and hold an
  44-11  operator's license or an occupational license is on the applicant
  44-12  or licensee.
  44-13        (c)  In considering the suitability of a company applying for
  44-14  or holding an operator's license or an occupational license to
  44-15  receive and continue to hold the license, the commission shall
  44-16  consider the suitability of each principal manager and each holder
  44-17  of an equity interest and creditor interest of the company to
  44-18  individually receive and hold an occupational license based on the
  44-19  suitability standards that apply to the applicants for the license
  44-20  generally.
  44-21        (d)  A person may not be found suitable to receive or hold an
  44-22  operator's license or an occupational license if that person would
  44-23  be found unsuitable to hold an owner's license under Section
  44-24  4.006(e) of this Act, except that an applicant for an operator's
  44-25  license or an occupational license who has been convicted of a
  44-26  felony may be found suitable if the person is found to be
  44-27  adequately rehabilitated under the rehabilitation requirements
   45-1  adopted by the commission and the applicant or licensee is
   45-2  otherwise suitable for licensing.
   45-3        Sec. 5.006.  DENIAL OR REVOCATION OF LICENSE.  (a)  The
   45-4  commission has the full and absolute power and authority to deny an
   45-5  application for or to revoke an operator's license or an
   45-6  occupational license for any reasonable cause.
   45-7        (b)  If the commission determines that it has reasonable
   45-8  grounds to believe that a licensee may be unsuitable to continue to
   45-9  hold a license under this Act, giving due consideration to the
  45-10  protection of the health, safety, morals, and general welfare of
  45-11  the state and to the reputation of the state's gaming industry, the
  45-12  commission shall conduct an investigation and hearing provided in
  45-13  Section 12.001 of this Act and may, based on its findings, suspend,
  45-14  limit, or revoke any license.
  45-15        (c)  On the suspension or revocation of a license, the
  45-16  licensee shall cease the provision of all services in any capacity
  45-17  requiring a license under Sections 5.001 and 5.002 of this Act.
  45-18        (d)  A holder of an occupational license that has been
  45-19  revoked or suspended may not:
  45-20              (1)  receive, directly or indirectly, any compensation,
  45-21  consideration, or payment of any kind relating to the conduct of
  45-22  gaming in any capacity requiring an occupational license under
  45-23  Section 5.001 or 5.002 of this Act, other than the payment for
  45-24  services rendered before the suspension or revocation; or
  45-25              (2)  serve or function in a capacity that would require
  45-26  a license under either Section 5.001 or 5.002 of this Act.
  45-27        (e)  The receipt and holding of a license is a pure and
   46-1  absolute revocable privilege and is not a right, property or
   46-2  otherwise, under the United States Constitution or the Texas
   46-3  Constitution.  An applicant for or holder of an operator's license
   46-4  or an occupational license does not have a vested interest or right
   46-5  in a license granted under this Act.
   46-6   ARTICLE 6.  MANUFACTURER'S AND OTHER SERVICE PROVIDERS' LICENSES
   46-7        Sec. 6.001.  MANUFACTURER'S LICENSE.  (a)  It is an offense
   46-8  for a person to engage in any segment of the slot manufacturing
   46-9  industry in this state for which a manufacturer's license is
  46-10  required under this section without obtaining a manufacturer's
  46-11  license covering the segment of the industry in which the person is
  46-12  engaged.
  46-13        (b)  The commission shall adopt regulations identifying
  46-14  segments of the manufacturing industry directly involved in the
  46-15  design, manufacture, assembly, production, programming, sale,
  46-16  lease, marketing, distribution, repair, or modification of slot
  46-17  machines or component parts of slot machines that the commission
  46-18  finds appropriate for licensing under this section.
  46-19        (c)  A manufacturer's license is personal to the licensee and
  46-20  allows the licensee to do business with any casino.
  46-21        Sec. 6.002.  CASINO SERVICE LICENSE.  (a)  It is an offense
  46-22  for a person to engage in any segment of the casino service
  46-23  industry that requires a license without obtaining a casino service
  46-24  license.
  46-25        (b)  The commission shall adopt regulations identifying
  46-26  segments of the casino service industry directly involved with
  46-27  providing gaming-related services, equipment, and supplies that the
   47-1  commission finds appropriate for licensing.
   47-2        (c)  A person is required to obtain a casino service license
   47-3  if the person:
   47-4              (1)  operates, conducts, or maintains a gaming-related
   47-5  business in a casino; or
   47-6              (2)  furnishes goods, property, or services to a casino
   47-7  in exchange for either a payment based upon a percentage of the
   47-8  earnings, profits, or receipts from the casino or a payment that
   47-9  the commission finds to be grossly disproportionate to the value of
  47-10  the goods, property, or service provided.
  47-11        (d)  A utility company, a municipality, and other political
  47-12  subdivisions are not required to obtain casino service licenses
  47-13  under this section.
  47-14        (e)  A casino service license is personal to the licensee and
  47-15  allows the licensee to do business with any casino.
  47-16        Sec. 6.003.  APPLICATION.  (a)  Application for a
  47-17  manufacturer's license or a casino service license shall be made in
  47-18  compliance with the regulations adopted by the commission and shall
  47-19  contain information the commission finds necessary to determine the
  47-20  suitability and eligibility of the applicant.
  47-21        (b)  An application for a manufacturer's license or a casino
  47-22  service license must be accompanied by the required application
  47-23  fee.
  47-24        Sec. 6.004.  DETERMINATION OF SUITABILITY.  (a)  In
  47-25  considering the suitability of a company applying for or holding a
  47-26  manufacturer's license or a casino service license to receive and
  47-27  continue to hold the license, the commission shall consider the
   48-1  suitability of each principal manager and each holder of an equity
   48-2  interest and creditor interest in the company applicant to
   48-3  individually receive and hold a manufacturer's license or a casino
   48-4  service license based upon the suitability standards that apply to
   48-5  the company applicant.  A person may not be found suitable to
   48-6  receive or hold a manufacturer's license or a casino service
   48-7  license if that person would be found unsuitable to hold an owner's
   48-8  license under Section 4.006(e) of this Act.
   48-9        (b)  If the commission determines that it has reasonable
  48-10  grounds to believe that a licensee may be unsuitable to hold a
  48-11  manufacturer's license or a casino service license, the commission
  48-12  shall conduct an investigation and hearing under Section 12.001 of
  48-13  this Act and may, based upon its findings, suspend, limit, or
  48-14  revoke a license.
  48-15        (c)  On suspension or revocation of a license, the licensee
  48-16  must cease the performance of manufacturing activity or casino
  48-17  service requiring a license under this Act.  After the revocation
  48-18  or suspension of the license, the affected licensee may not
  48-19  receive, directly or indirectly, compensation, consideration, or
  48-20  payment of any kind relating to manufacturing activity or provision
  48-21  of casino services in any capacity requiring a license under this
  48-22  Act, other than the payment for goods or services provided before
  48-23  the suspension or revocation.
  48-24        (d)  An owner or casino operator who has entered into a lease
  48-25  with a manufacturer licensee or casino services licensee whose
  48-26  license has been revoked or suspended may continue to make payments
  48-27  on the lease based upon its original terms and conditions without
   49-1  modification or may accelerate the lease and pay it off, at the
   49-2  sole option of the owner or operator.
   49-3        (e)  The burden of proving suitability to receive and hold a
   49-4  manufacturer's license or casino service license is on the
   49-5  licensee.
   49-6                      ARTICLE 7.  LICENSE RENEWAL
   49-7        Sec. 7.001.  TERMS; RENEWAL; TEMPORARY LICENSE.  (a)  Before
   49-8  the issuance of a license, the commission may issue a temporary
   49-9  license for six months or less and may renew the temporary license
  49-10  as many times as the commission finds appropriate on the payment of
  49-11  the fee and execution of the bond, if required.
  49-12        (b)  The commission may issue a temporary license only to a
  49-13  person it believes will be determined to be qualified based on:
  49-14              (1)  the commission's review of the background
  49-15  investigations conducted by other state agencies or departments or
  49-16  other United States jurisdictions with gaming activities; and
  49-17              (2)  the commission's determination that there is
  49-18  nothing in those background investigations of the applicant that
  49-19  would cause the applicant not to qualify for a license in this
  49-20  state.
  49-21        (c)  An original or renewal license expires on the first
  49-22  anniversary of the date it is issued.
  49-23        (d)  The fee for an owner's, operator's, occupational,
  49-24  manufacturer's, or casino service license shall be in the amount
  49-25  established in Section 8.002 of this Act and shall be paid
  49-26  annually.  A licensee may renew an unexpired license annually by
  49-27  meeting the licensing requirements of the commission and by paying
   50-1  the annual fee.
   50-2               ARTICLE 8.  APPLICATION AND LICENSE FEES
   50-3        Sec. 8.001.  APPLICATION FEES.  (a)  An applicant for an
   50-4  owner's license during the first two years after the effective date
   50-5  of this Act shall pay a $100,000 application fee for each
   50-6  application to the state treasurer not later than the 30th day
   50-7  after the effective date of this Act.  The fees collected by the
   50-8  state treasurer on behalf of the commission shall be deposited in
   50-9  the Texas casino gaming fund.
  50-10        (b)  Application fees tendered during the 30-day period
  50-11  following the effective date of this Act are not required to be
  50-12  accompanied by an application.  Applications during the first two
  50-13  years after the effective date of this Act shall be filed on a date
  50-14  determined by a regulation adopted by the commission.
  50-15        (c)  An application fee for an owner's license paid not later
  50-16  than the 30th day after the effective date of this Act shall be
  50-17  accompanied by a document indicating the name of the applicant or
  50-18  an affiliate or partner of the applicant and the name of the county
  50-19  in which the casino is proposed to be located.
  50-20        (d)  During the first two years after the effective date of
  50-21  this Act, an applicant may not apply for an owner's license for a
  50-22  site in a county unless the application fee for a license in that
  50-23  county was paid during the period set out in Subsection (a) of this
  50-24  section.  If the applicant seeks more than one license in a county
  50-25  during the first two years after the effective date of this Act,
  50-26  the applicant or its affiliates or partners shall file the number
  50-27  of application fees designating that county that is equal to the
   51-1  number of licenses in that county that it is seeking.
   51-2        (e)  Notwithstanding Subsections (a), (b), (c), and (d) of
   51-3  this section, if no applicant pays an application fee for a site in
   51-4  a specific county and a municipality within a county or the county
   51-5  passes a local option election approving casino gaming or if
   51-6  applicants pay application fees for sites within a county and a
   51-7  municipality within the county or the county fails to approve a
   51-8  local option election approving casino gaming, the commission may
   51-9  accept applications for a site in the jurisdiction that passes the
  51-10  local option election from persons who have filed applications for
  51-11  other sites where a local option election failed and for a site in
  51-12  other counties or municipalities and apply the applicant's initial
  51-13  application fee to the new site.
  51-14        (f)  An applicant for an owner's license who has not
  51-15  submitted an application fee under Subsection (a) or (e) of this
  51-16  section shall send with its application an application fee of
  51-17  $100,000.
  51-18        (g)  An applicant for a manufacturer's license shall pay an
  51-19  application fee of $100,000.
  51-20        (h)  A casino operator applying for an operator's license
  51-21  shall pay an application fee of $50,000.
  51-22        (i)  An applicant for a casino service license shall pay an
  51-23  application fee of $100.
  51-24        (j)  A person registering and applying to qualify to hold an
  51-25  equity interest or creditor interest in a licensee shall pay an
  51-26  application fee of $100.
  51-27        (k)  An individual applying for an occupational license shall
   52-1  pay an application fee of $100.
   52-2        (l)  All application fees shall be in the form of a money
   52-3  order or cashier's check and shall be payable to the Texas Gaming
   52-4  Commission.  Application fees are nonrefundable.
   52-5        (m)  Application fees shall be applied toward the cost of
   52-6  investigating applicants' suitability for licensing or
   52-7  qualification under this Act.  Any costs of investigation incurred
   52-8  over the application fee shall be paid by the applicant.
   52-9        Sec. 8.002.  LICENSE FEES.  (a)  A holder of an owner's
  52-10  license shall pay an annual license fee of $100,000.
  52-11        (b)  A holder of a manufacturer's license shall pay an annual
  52-12  license fee of $100,000.
  52-13        (c)  A casino operator holding an operator's license shall
  52-14  pay an annual license fee of $50,000.
  52-15        (d)  A holder of a casino service license shall pay an annual
  52-16  license fee of $100.
  52-17        (e)  A holder of an equity interest or creditor interest in
  52-18  any licensee that is required to qualify with the commission shall
  52-19  pay an annual fee of $100.
  52-20        (f)  A holder of an occupational license shall pay an annual
  52-21  license fee of $100.
  52-22                    ARTICLE 9.  CASINO GAMING FUND
  52-23        Sec. 9.001.  TEXAS CASINO GAMING FUND.  (a)  The Texas casino
  52-24  gaming fund is a special fund in the state treasury.
  52-25        (b)  All application fees, investigation fees, and license
  52-26  fees collected by the commission or on the commission's behalf
  52-27  shall be deposited in the treasury to the credit of the Texas
   53-1  casino gaming fund.
   53-2        (c)  The Texas casino gaming fund shall be used exclusively
   53-3  for the operation of the commission and the administration of this
   53-4  Act.  However, if the revenues in the fund exceed the amount
   53-5  necessary for the operation of the commission and the
   53-6  administration of the Act, the legislature may transfer any excess
   53-7  amount to the general revenue fund.
   53-8        (d)  All proceeds from the gaming tax imposed by Section
   53-9  10.001 of this Act that are allocated to the state shall be
  53-10  deposited in the state treasury to the credit of the general
  53-11  revenue fund.
  53-12        (e)  The operation of the commission and the administration
  53-13  of this Act shall be supported by fees generated under this Act and
  53-14  by a portion of the gaming taxes imposed by Section 10.001 of this
  53-15  Act.  The operation of the commission shall never be a charge
  53-16  against the general revenues of this state except to the extent
  53-17  those revenues are raised by taxes or fees imposed on gaming
  53-18  activities.
  53-19               ARTICLE 10.  TAX ON GROSS GAMING REVENUE
  53-20        Sec. 10.001.  GAMING TAX; ALLOCATION OF TAX.  (a)  There is
  53-21  imposed on each holder of an owner's license a gaming tax in an
  53-22  amount equal to 15 percent of the gross gaming revenue of the
  53-23  casino operated under the license.  The tax shall be computed and
  53-24  paid on a monthly basis as required by commission regulation.
  53-25        (b)  Five-sixths of the tax imposed by this section, with the
  53-26  exception provided in Subsection (d) of this section, is allocated
  53-27  to the general revenue fund.
   54-1        (c)  Sixty-six and two-thirds percent and thirty-three and
   54-2  one-third percent of the remaining one-sixth of the tax imposed by
   54-3  this section are allocated to the municipality and county,
   54-4  respectively, in which the casino to which the license relates is
   54-5  located, or, if the casino is deemed to be located in an
   54-6  unincorporated area, the remaining one-sixth of the tax imposed by
   54-7  this section shall be allocated to the county in which the casino
   54-8  to which the license relates is located.
   54-9        (d)  One-tenth of one percent of the gaming tax allocated to
  54-10  general revenue under Subsection (b) of this section shall be
  54-11  allocated to the Texas Commission on Alcohol and Drug Abuse for the
  54-12  commission's compulsive gambling program under Section 461.018,
  54-13  Health and Safety Code.
  54-14        (e)  The gross gaming taxes levied by this Act are due and
  54-15  payable on or before the 20th day of the month following the month
  54-16  in which the taxes accrue.
  54-17        (f)  If the amount of gaming taxes required to be reported
  54-18  and paid under this section is later determined to be greater or
  54-19  less than the amount actually reported and paid by the licensee,
  54-20  the commission shall:
  54-21              (1)  assess and collect the additional gaming taxes
  54-22  determined to be due with interest until paid; or
  54-23              (2)  refund any overpayment, with interest, to the
  54-24  licensee.
  54-25        (g)  Interest must be computed, until paid, at the rate of
  54-26  one percent per month from the first day of the first month
  54-27  following either the due date of the additional gaming taxes or the
   55-1  date of overpayment.
   55-2        Sec. 10.002.  DETERMINATION OF GROSS GAMING REVENUE.  (a)  In
   55-3  calculating gross gaming revenue, a prize, premium, drawing,
   55-4  benefit, or ticket that is redeemable for money, merchandise, or
   55-5  other promotional allowance, except money or tokens paid at face
   55-6  value directly to a patron as the result of a specific wager and
   55-7  the amount of cash paid to purchase an annuity to fund winnings,
   55-8  may not be deducted as a loss from winnings at any game except a
   55-9  slot machine.
  55-10        (b)  In calculating gross gaming revenue from slot machines,
  55-11  the actual cost to the licensee of any personal property
  55-12  distributed to a patron as the result of a legitimate wager may be
  55-13  deducted as a loss, but travel expenses, food, refreshments,
  55-14  lodging, or services at the licensee's facility may not be
  55-15  deducted.  For the purposes of this subsection, "as the result of a
  55-16  legitimate wager" means that the patron must make a wager before
  55-17  receiving the personal property, regardless of whether the receipt
  55-18  of the personal property is dependent on the outcome of the wager.
  55-19        Sec. 10.003.  REFUND OF OVERPAYMENT.  (a)  Taxes on gross
  55-20  gaming revenue that are erroneously collected may be refunded, on
  55-21  approval by the commission, as other claims against the state are
  55-22  paid.
  55-23        (b)  Not later than the 90th day after the date of the
  55-24  mailing of the notice of the commission's action on a claim for
  55-25  refund filed under this Act, the claimant may bring an action
  55-26  against the commission on the grounds stated in the claim in any
  55-27  court of competent jurisdiction for the recovery of any part of the
   56-1  amount of the claim that has been disallowed.
   56-2        (c)  Failure to bring an action within the time specified in
   56-3  Subsection (b) of this section constitutes a waiver of any demand
   56-4  against the state on account of alleged overpayments.
   56-5        (d)  If the commission fails to mail its notice of action on
   56-6  a claim before six months after the date the claim is filed, the
   56-7  claimant may consider the claim disallowed and bring an action
   56-8  against the commission on the grounds set forth in the claim for
   56-9  the recovery of any part of the amount claimed as an overpayment.
  56-10        (e)  In a case where a refund is granted, interest is allowed
  56-11  at the rates provided in Subtitle B, Title 2, Tax Code.
  56-12        (f)  A claim for refund of gross gaming revenue fees paid in
  56-13  excess of the amount required to be reported and paid must be filed
  56-14  not later than two years after the date of overpayment.
  56-15        Sec. 10.004.  DETERMINATION OF DEFICIENCY.  (a)  If an owner
  56-16  licensee fails to make a report of the gaming taxes as required by
  56-17  this Act, or if the executive director is not satisfied with the
  56-18  report of the gross gaming revenue license fees required to be paid
  56-19  to the state under this Act by an owner licensee, the executive
  56-20  director may compute and determine the amount required to be paid
  56-21  on the basis of:
  56-22              (1)  the facts contained in the report, if any;
  56-23              (2)  an audit conducted by the executive director;
  56-24              (3)  an estimate of the amount of fees due under this
  56-25  Act;
  56-26              (4)  any information in the commission's possession or
  56-27  that may come in the executive director's possession; or
   57-1              (5)  any combination of the methods described in
   57-2  Subdivisions (1)-(4) of this subsection.
   57-3        (b)  In making a determination, the commission may offset
   57-4  overpayments and interest due against underpayments and interest or
   57-5  penalties due for the period of the audit.
   57-6        (c)  The executive director shall give prompt written notice
   57-7  of a determination of a deficiency under this section to the owner
   57-8  licensee.  Except in the case of fraud or intent to evade the
   57-9  payment of the gross gaming revenue license fee imposed by this
  57-10  Act, a notice of a determination of a deficiency must be mailed not
  57-11  later than two years after the last day of the calendar month
  57-12  following the applicable reporting period in which the deficiency
  57-13  occurred or not later than two years after the report is filed by
  57-14  the owner licensee, whichever is later.
  57-15        (d)  If the reasons for the deficiency are not apparent, the
  57-16  executive director shall include an explanation of those reasons in
  57-17  the notice of a determination of a deficiency.
  57-18        (e)  If overpayments and interest exceed underpayments,
  57-19  penalties, and interest, the excess payment shall be refunded to
  57-20  the owner licensee.
  57-21        Sec. 10.005.  PETITION FOR REVIEW.  (a)  An owner licensee
  57-22  against whom a determination is made under Section 10.004 of this
  57-23  Act may petition the commission for a redetermination not later
  57-24  than the 30th day after the date of the service of notice of the
  57-25  determination.  If a petition for redetermination satisfying the
  57-26  requirements of Subsection (c) of this section is not filed within
  57-27  the 30-day period, the determination becomes final.
   58-1        (b)  If a petition for redetermination satisfying the
   58-2  requirements of Subsection (c) of this section is filed within the
   58-3  30-day period, the commission shall reconsider the determination
   58-4  and, if the petitioner requests, shall grant a hearing.
   58-5        (c)  A petition for redetermination must:
   58-6              (1)  specify the contested portions of the
   58-7  determination of deficiency;
   58-8              (2)  specify the grounds for redetermination;
   58-9              (3)  state whether a hearing is requested; and
  58-10              (4)  be accompanied by payment in full of the
  58-11  uncontested portion of the determination, including any interest
  58-12  and penalties.
  58-13        (d)  An order or decision of the commission on a petition for
  58-14  redetermination is final 10 days after the date of service on the
  58-15  petitioner.
  58-16        (e)  A petitioner against whom an order or decision of the
  58-17  commission becomes final may, not later than the 60th day after the
  58-18  date the decision is final, petition for judicial review in the
  58-19  manner provided by Chapter 2001, Government Code.  The executive
  58-20  director may not petition for judicial review.
  58-21        Sec. 10.006.  CERTAIN POLITICAL SUBDIVISION TAXES BARRED.  A
  58-22  county, municipality, or other political subdivision of this state
  58-23  may not impose a license fee or tax on a person licensed to conduct
  58-24  gaming under this Act.  This section does not preclude the
  58-25  imposition of local real property taxes, sales taxes, hotel lodging
  58-26  taxes, or normal fees for standard municipal services.
  58-27        Sec. 10.007.  TAX ADMINISTRATION.  (a)  The commission shall
   59-1  perform all functions incident to the administration, collection,
   59-2  enforcement, and operation of a fee or tax imposed under this Act.
   59-3  The commission may adopt rules and prescribe forms that are
   59-4  consistent with this Act for the administration, collection, and
   59-5  enforcement of a fee or tax imposed under this Act and for the
   59-6  reporting of a fee or tax imposed under this Act.
   59-7        (b)  Except as modified by this Act, Subtitle B, Title 2, Tax
   59-8  Code, applies to the administration, collection, and enforcement of
   59-9  a tax authorized or imposed under this Act.  For purposes of the
  59-10  application of Subtitle B, Title 2, Tax Code, to a tax authorized
  59-11  or imposed under this Act only, the powers and duties assigned to
  59-12  the comptroller under that subtitle are assigned to the commission.
  59-13             ARTICLE 11.  REGULATION OF CASINO OPERATIONS
  59-14        Sec. 11.001.  REGULATION OF CASINO OPERATIONS.  (a)  The
  59-15  commission shall adopt regulations applicable to the operation of
  59-16  casinos as the commission finds necessary for the protection of the
  59-17  health, safety, morals, and general welfare of the state and for
  59-18  the reputation of the state's gaming industry.
  59-19        (b)  Casinos are entitled to operate 24 hours a day, seven
  59-20  days a week.  Licensees may, at their option, elect other hours of
  59-21  operation.
  59-22        Sec. 11.002.  USE OF CHIPS OR TOKENS.  All gaming must be
  59-23  conducted with chips, tokens, or other instrumentalities approved
  59-24  by the executive director or the commission or with the legal
  59-25  tender of the United States.
  59-26        Sec. 11.003.  REPORTING REQUIREMENTS.  (a)  An owner licensee
  59-27  shall keep the licensee's books and records in a manner that
   60-1  clearly shows the total amount of gross gaming revenue and other
   60-2  revenues received.
   60-3        (b)  The books and records kept by an owner licensee relating
   60-4  to gaming operations are not public records and the publication and
   60-5  dissemination of the materials by the commission is prohibited.
   60-6  The commission may publish and disseminate gaming revenues of each
   60-7  owner licensee at a frequency and in the level of detail as it
   60-8  considers appropriate.
   60-9        (c)  An owner licensee shall file a report of each change of
  60-10  the corporate officers and directors with the commission and the
  60-11  executive director.  The commission shall, not later than the 90th
  60-12  day after the date of the change, approve or disapprove the change.
  60-13  During the 90-day period, the officer or director is entitled to
  60-14  exercise the powers of the office to which the officer or director
  60-15  was elected or appointed.
  60-16        (d)  An owner licensee shall report to the executive director
  60-17  in writing a change in company employees who have been designated
  60-18  as key employees.
  60-19        (e)  The commission or the executive director may require
  60-20  that a company furnish the commission or the executive director
  60-21  with a copy of its federal income tax return not later than the
  60-22  30th day after the date the return is filed with the federal
  60-23  government.
  60-24        Sec. 11.004.  EXCLUSION OF PERSONS.  (a)  The commission
  60-25  shall, by regulation, provide for the establishment of a list of
  60-26  persons who are to be excluded or ejected from a casino.  The list
  60-27  may include a person whose presence in the establishment is
   61-1  determined by the commission to pose a threat to the interests of
   61-2  this state, to licensed gaming, or to both interests.
   61-3        (b)  In making a determination under this section, the
   61-4  commission may consider any:
   61-5              (1)  prior conviction of a crime that is a felony in
   61-6  this state or under the laws of the United States or a crime
   61-7  involving moral turpitude or a violation of the gaming laws of a
   61-8  state; or
   61-9              (2)  violation of or conspiracy to violate the
  61-10  provisions of this Act relating to:
  61-11                    (A)  the failure to disclose an interest in a
  61-12  gaming establishment for which the person must obtain a license;
  61-13                    (B)  wilful evasion of a fee or a tax;
  61-14                    (C)  notorious or unsavory reputation that would
  61-15  adversely affect public confidence and trust that the gaming
  61-16  industry is free from criminal or corruptive elements; or
  61-17                    (D)  a written order of a governmental agency
  61-18  that authorizes the exclusion or ejection of the person from an
  61-19  establishment where gaming or pari-mutuel wagering is conducted.
  61-20        (c)  Race, color, creed, national origin or ancestry, or sex
  61-21  may not be grounds for placing the name of a person upon the list.
  61-22        (d)  This section does not abrogate the common law of
  61-23  innkeepers.
  61-24        Sec. 11.005.  INTERNAL AUDIT AND CONTROL SYSTEMS.  (a)  An
  61-25  owner licensee shall adopt an internal control system that provides
  61-26  for:
  61-27              (1)  the safeguarding of its assets and revenues,
   62-1  especially the recording of cash and evidences of indebtedness; and
   62-2              (2)  the provision of reliable records, accounts, and
   62-3  reports of transactions, operations, and events, including reports
   62-4  to the executive director and the commission.
   62-5        (b)  The internal control system must be designed to
   62-6  reasonably ensure that:
   62-7              (1)  assets are safeguarded;
   62-8              (2)  financial records are accurate and reliable;
   62-9              (3)  transactions are performed only in accordance with
  62-10  management's general or specific authorization;
  62-11              (4)  transactions are recorded adequately to permit
  62-12  proper reporting of gaming revenue and of fees and taxes and to
  62-13  maintain accountability for assets;
  62-14              (5)  access to assets is permitted only in accordance
  62-15  with management's specific authorization;
  62-16              (6)  recorded accountability for assets is compared
  62-17  with actual assets at reasonable intervals and appropriate action
  62-18  is taken with respect to any discrepancies; and
  62-19              (7)  functions, duties, and responsibilities are
  62-20  appropriately segregated and performed in accordance with sound
  62-21  practices by competent, qualified personnel.
  62-22        (c)  An owner licensee and an applicant for an owner's
  62-23  license shall describe, in a manner approved or required by the
  62-24  executive director, the licensee's or applicant's administrative
  62-25  and accounting procedures in detail in a written system of internal
  62-26  control.  An owner licensee and applicant for an owner's license
  62-27  shall submit a copy of the licensee's or applicant's written system
   63-1  to the executive director.  A written system must include:
   63-2              (1)  an organizational chart depicting appropriate
   63-3  segregation of functions and responsibilities;
   63-4              (2)  a description of the duties and responsibilities
   63-5  of each position shown on the organizational chart;
   63-6              (3)  a detailed, narrative description of the
   63-7  administrative and accounting procedures designed to satisfy the
   63-8  requirements of Section 11.003(a) of this Act;
   63-9              (4)  a written statement signed by the licensee's chief
  63-10  financial officer and either the licensee's chief executive officer
  63-11  or an owner licensee attesting that the system satisfies the
  63-12  requirements of this section;
  63-13              (5)  if the written system is submitted by an
  63-14  applicant, a letter from an independent certified public accountant
  63-15  stating that the applicant's written system has been reviewed by
  63-16  the certified public accountant and complies with the requirements
  63-17  of this section; and
  63-18              (6)  other items the executive director may require.
  63-19        (d)  The executive director, with the advice of the
  63-20  commission, shall adopt and publish minimum standards for internal
  63-21  control procedures.
  63-22        Sec. 11.006.  AGE REQUIREMENTS.  A person under the age of 21
  63-23  years may not:
  63-24              (1)  play, be allowed to play, place wagers, or collect
  63-25  winnings, personally or through an agent, from any gaming
  63-26  authorized under this Act; or
  63-27              (2)  be employed as a gaming employee.
   64-1        Sec. 11.007.  ACCEPTANCE OF NEGOTIABLE INSTRUMENTS.  (a)  A
   64-2  negotiable instrument evidencing a gaming transaction may be
   64-3  enforced by legal process.
   64-4        (b)  A licensee or person acting on the licensee's behalf may
   64-5  accept an incomplete negotiable instrument that is signed by a
   64-6  patron and states the amount of the debt in figures.  The licensee
   64-7  or person may complete the instrument as is necessary for the
   64-8  instrument to be presented for payment.
   64-9        (c)  A licensee or person acting on behalf of a licensee:
  64-10              (1)  may not accept a negotiable instrument which is
  64-11  incomplete, except as authorized in Subsection (b) of this section;
  64-12  and
  64-13              (2)  may accept a negotiable instrument that is payable
  64-14  to an affiliate or may complete a negotiable instrument in the name
  64-15  of an affiliate as payee if the negotiable instrument otherwise
  64-16  complies with this section and the records of the affiliate
  64-17  pertaining to the negotiable instrument are made available to the
  64-18  executive director on request.
  64-19        (d)  This section does not prohibit the establishment of an
  64-20  account by a deposit of cash, recognized traveler's check, or any
  64-21  other instrument that is equivalent to cash.
  64-22        (e)  Any person, licensee, or the agents or employees of the
  64-23  person or licensee who violate this section are subject only to the
  64-24  penalties provided in the provisions of this Act relating to
  64-25  disciplinary actions.  The failure of a person to comply with this
  64-26  section or the regulations of the commission does not invalidate a
  64-27  negotiable instrument or affect the ability to enforce the
   65-1  negotiable instrument or the transaction that the negotiable
   65-2  instrument represents.
   65-3        Sec. 11.008.  GAMING DEBTS.  (a)  Except as otherwise
   65-4  provided by this Act, gaming debts not evidenced by a negotiable
   65-5  instrument are void and unenforceable and do not give rise to any
   65-6  administrative or civil cause of action.
   65-7        (b)  A claim by a patron of a licensee for payment of a
   65-8  gaming debt not evidenced by a negotiable instrument may be
   65-9  resolved by the executive director under regulations adopted by the
  65-10  commission.
  65-11        (c)  The executive director shall send a copy of the
  65-12  director's ruling by first class mail to the attorneys of record
  65-13  and shall keep an appropriate copy of the mailing.  If a party is
  65-14  not represented by an attorney of record, the executive director
  65-15  shall send a copy of the ruling by first class mail to the party
  65-16  and shall keep an appropriate record of the mailing.
  65-17        (d)  A party or attorney of record notified by mail under
  65-18  this section is presumed to have been notified on the date on which
  65-19  the notice is mailed.
  65-20        (e)  A party aggrieved by the executive director's ruling is
  65-21  entitled to have the claim resolved by the commission in a
  65-22  contested case if the party files a written complaint with the
  65-23  commission challenging the executive director's decision not later
  65-24  than the 20th day after the date on which the party or the party's
  65-25  attorney of record is notified by mail.
  65-26        Sec. 11.009.  DETENTION OF PERSONS.  (a)  An owner licensee
  65-27  or the licensee's officers, employees, or agents may question any
   66-1  person on the licensee's premises suspected of violating any of the
   66-2  provisions of this Act.  An owner licensee or any of the licensee's
   66-3  officers, employees, or agents is not criminally or civilly liable:
   66-4              (1)  as a result of questioning; or
   66-5              (2)  for reporting to the executive director or law
   66-6  enforcement authorities the person suspected of the violation.
   66-7        (b)  An owner licensee or the licensee's officer, employee,
   66-8  or agent who has reasonable cause for believing that there has been
   66-9  a violation of this Act in the establishment by a person may take
  66-10  that person into custody and detain the person in the establishment
  66-11  in a reasonable manner and for a reasonable length of time.  The
  66-12  taking into custody and detention does not render the licensee or
  66-13  the licensee's officer, employee, or agent criminally or civilly
  66-14  liable unless it is established by clear and convincing evidence
  66-15  that the taking into custody and detention are unreasonable under
  66-16  all the circumstances.
  66-17        (c)  An owner licensee or the licensee's officer, employee,
  66-18  or agent is not entitled to the immunity from liability provided
  66-19  for in Subsection (a) of this section unless there is displayed in
  66-20  a conspicuous place in the licensee's establishment a notice in
  66-21  bold-faced type, clearly legible, and in substantially this form:
  66-22        An owner licensee or an owner licensee's officer,
  66-23        employee, or agent who has reasonable cause for
  66-24        believing that a person has violated a provision of the
  66-25        Texas Economic Development and Gaming Control Act may
  66-26        detain that person in the establishment.
  66-27                       ARTICLE 12.  ENFORCEMENT
   67-1        Sec. 12.001.  ENFORCEMENT.  (a)  The executive director shall
   67-2  conduct appropriate investigation to:
   67-3              (1)  determine whether there has been a violation of
   67-4  this Act or of a regulation adopted by the commission;
   67-5              (2)  determine facts, conditions, practices, or matters
   67-6  that the director deems necessary or proper to aid in the
   67-7  enforcement of a law or regulation;
   67-8              (3)  aid in adopting regulations;
   67-9              (4)  secure information as a basis for recommending
  67-10  legislation relating to this Act; and
  67-11              (5)  determine whether a licensee is able to meet the
  67-12  licensee's financial obligations, including all financial
  67-13  obligations imposed by this Act, as they become due.
  67-14        (b)  If after an investigation the executive director is
  67-15  satisfied that a license, registration, finding of suitability, or
  67-16  prior approval by the commission of a transaction for which
  67-17  approval was required or permitted under this Act should be
  67-18  limited, conditioned, suspended, or revoked, or that a fine should
  67-19  be levied, the executive director shall initiate a hearing by
  67-20  filing a complaint with the commission and transmit a summary of
  67-21  evidence that bears on the matter and the transcript of testimony
  67-22  at any investigative hearing conducted by or on behalf of the
  67-23  executive director regarding the licensee.  The complaint must be a
  67-24  written statement of charges that must set forth in ordinary and
  67-25  concise language the acts or omission with which the respondent is
  67-26  charged.  The complaint must specify the statute or regulation that
  67-27  the respondent is alleged to have violated.  A complaint must
   68-1  contain a factual allegation and shall not consist merely of
   68-2  charges raised on the language of the statute or regulation.  On
   68-3  the filing of the complaint, the executive director shall serve a
   68-4  copy of the complaint on the respondent either personally or by
   68-5  registered or certified mail at the respondent's address on file
   68-6  with the executive director.
   68-7        (c)  Except as provided by Section 10.005 of this Act, the
   68-8  respondent must answer not later than the 30th day after the date
   68-9  of the service of the complaint.
  68-10        (d)  On receipt  of the complaint of the executive director,
  68-11  the commission shall review all matter presented in support and
  68-12  shall appoint a hearing examiner to conduct further proceedings.
  68-13        (e)  The hearing examiner shall conduct proceedings under
  68-14  Chapter 2001, Government Code.  After the proceedings, the hearing
  68-15  examiner may recommend that the commission take any appropriate
  68-16  action, including revocation, suspension, limitation or
  68-17  conditioning of a license, or imposition of a fine not to exceed
  68-18  $5,000 for each violation.
  68-19        (f)  The commission shall review the recommendation.  The
  68-20  commission may remand the case to the hearing examiner for the
  68-21  presentation of additional evidence on a showing of good cause as
  68-22  to why the evidence could not have been presented at the previous
  68-23  hearing.
  68-24        (g)  The commission shall, by a majority vote, accept,
  68-25  reject, or modify the recommendation.
  68-26        (h)  If the commission limits, conditions, suspends, or
  68-27  revokes a license or imposes a fine, or limits, conditions,
   69-1  suspends, or revokes a registration, finding of suitability, or
   69-2  prior approval, the commission shall issue its written order.
   69-3        (i)  A limitation, condition, revocation, suspension, or fine
   69-4  imposed is effective until reversed following judicial review,
   69-5  except that the commission may stay its order pending a rehearing
   69-6  or judicial review on terms and conditions as it considers proper.
   69-7        (j)  Judicial review of an order or decision of the
   69-8  commission may be had under Chapter 2001, Government Code.
   69-9        Sec. 12.002.  PRIVILEGED DOCUMENTS.  (a)  A communication or
  69-10  document of an applicant or licensee that is required by law or a
  69-11  regulation of the commission or a subpoena issued by the commission
  69-12  and that is to be made or transmitted to the commission or the
  69-13  executive director is absolutely privileged and does not impose
  69-14  liability for defamation or constitute a ground for recovery in any
  69-15  civil action.
  69-16        (b)  If a document or communication contains information that
  69-17  is privileged, the privilege is not waived or lost because the
  69-18  document or communication is disclosed to the commission or the
  69-19  executive director.
  69-20        (c)  Notwithstanding the powers granted to the commission and
  69-21  the executive director by this Act:
  69-22              (1)  the commission and the executive director may not
  69-23  release or disclose privileged information, documents, or
  69-24  communications provided by an applicant and required by a lawful
  69-25  court order after timely notice of the proceedings has been given
  69-26  to the applicant or licensee without the prior written consent of
  69-27  the applicant or licensee;
   70-1              (2)  the commission and the executive director shall
   70-2  maintain all privileged information, documents, and communications
   70-3  in a secure place accessible only to members of the commission and
   70-4  the executive director; and
   70-5              (3)  the commission shall adopt procedures and
   70-6  regulations to protect the privileged nature of information,
   70-7  documents, and communications provided by an applicant or licensee.
   70-8        Sec. 12.003.  RELEASE OF CONFIDENTIAL INFORMATION.  An
   70-9  application to a court for an order requiring the commission or the
  70-10  executive director to release any information declared by law to be
  70-11  confidential shall be made only on a motion in writing delivered
  70-12  not later than the 10th day before the date of application to the
  70-13  commission, the attorney general, and all persons who may be
  70-14  affected by the entry of the order.  Copies of the motion and all
  70-15  papers filed in support of it shall be served with the notice by
  70-16  delivering a copy in person or by certified mail to the last known
  70-17  address of the person to be served.
  70-18        Sec. 12.004.  EMERGENCY ORDERS.  (a)  The commission may
  70-19  issue an emergency order for suspension, limitation, or
  70-20  conditioning of a license, registration, finding of suitability, or
  70-21  work permit or may issue an emergency order requiring a casino to
  70-22  keep an individual licensee from the premises of the licensed
  70-23  gaming establishment or to not pay the licensee any remuneration
  70-24  for services or any profits, income, or accruals on the licensee's
  70-25  investment in the casino.
  70-26        (b)  An emergency order may be issued only when the
  70-27  commission believes that:
   71-1              (1)  a licensee has wilfully failed to report, pay, or
   71-2  truthfully account for a fee imposed under this Act or wilfully
   71-3  attempted in any manner to evade or defeat a fee or payment;
   71-4              (2)  a licensee or gaming employee has cheated at a
   71-5  gambling game; or
   71-6              (3)  the action is necessary for the immediate
   71-7  preservation of the public peace, health, safety, morals, good
   71-8  order, or general welfare.
   71-9        (c)  The emergency order must state the grounds on which it
  71-10  is issued, including a statement of facts constituting the alleged
  71-11  emergency necessitating the action.
  71-12        (d)  An emergency order may be issued only with the approval
  71-13  of and under the signature of four or more members of the
  71-14  commission.
  71-15        (e)  An emergency order is effective immediately on issuance
  71-16  and service on the licensee or resident agent of the licensee,
  71-17  gaming employee, or, in cases involving registration or findings of
  71-18  suitability, on issuance and service on the person or entity
  71-19  involved or resident agent of the entity involved.  An emergency
  71-20  order may suspend, limit, condition, or take other action in
  71-21  relation to the license of one or more persons in an operation
  71-22  without affecting other individual licensees or the casino.  An
  71-23  emergency order remains effective until further order of the
  71-24  commission or final disposition of the case.
  71-25        (f)  Within five days after issuance of an emergency order,
  71-26  the executive director shall file a complaint and serve it on the
  71-27  person or entity involved.  The person or entity against whom the
   72-1  emergency order has been issued and served is entitled to a hearing
   72-2  before the commission and to judicial review of the decision and
   72-3  order of the commission under Chapter 2001, Government Code.
   72-4                  ARTICLE 13.  PENALTIES AND OFFENSES
   72-5        Sec. 13.001.  FAILURE TO PAY FEES.  (a)  License fees and
   72-6  fees required by law must be paid to the commission on or before
   72-7  the dates provided by law or regulation for each fee.
   72-8        (b)  A person failing to timely pay a fee or tax when due
   72-9  shall pay in addition a penalty of not less than $50 or 25 percent
  72-10  of the amount due, whichever is the greater.  The penalty may not
  72-11  exceed $1,000 if the fees are less than 10 days late and may not
  72-12  exceed $5,000 under any circumstances.  The penalty shall be
  72-13  collected as are other charges, license fees, and penalties under
  72-14  this Act.
  72-15        Sec. 13.002.  FAILURE TO REPORT, PAY, OR ACCOUNT FOR FEE OR
  72-16  TAX.  (a)  A person commits an offense if the person wilfully fails
  72-17  to report, pay, or truthfully account for a license fee or tax
  72-18  imposed under this Act or wilfully attempts in any manner to evade
  72-19  or defeat a license fee, tax, or payment.
  72-20        (b)  An offense under this section is a Class A misdemeanor.
  72-21        Sec. 13.003.  FRAUD.  (a)  A person commits an offense if the
  72-22  person knowingly:
  72-23              (1)  alters or misrepresents the outcome of a game or
  72-24  other event on which wagers have been made after the outcome is
  72-25  made sure but before it is revealed to the players;
  72-26              (2)  places, increases, or decreases a bet or
  72-27  determines the course of play after acquiring knowledge, not
   73-1  available to all players, of the outcome of the game or an event
   73-2  that affects the outcome of the game or that is the subject of the
   73-3  bet or aids anyone in acquiring such knowledge for the purpose of
   73-4  placing, increasing, or decreasing a bet or determining the course
   73-5  of play contingent on that event or outcome;
   73-6              (3)  claims, collects, or takes, or attempts to claim,
   73-7  collect, or take, money or anything of value in or from a gambling
   73-8  game, with intent to defraud, without having made a wager
   73-9  contingent thereon, or claims, collects, or takes an amount greater
  73-10  than the amount won;
  73-11              (4)  entices or induces another to go to a place where
  73-12  a gambling game is being conducted or operated in violation of the
  73-13  Act, with the intent that the other person play or participate in
  73-14  that gambling game;
  73-15              (5)  places or increases a bet after acquiring
  73-16  knowledge of the outcome of the game or other event that is the
  73-17  subject of the bet, including past posting and pressing bets;
  73-18              (6)  reduces the amount wagered or cancels the bet
  73-19  after acquiring knowledge of the outcome of the game or other event
  73-20  that is the subject of the bet, including pinching bets; or
  73-21              (7)  manipulates, with the intent to cheat, a component
  73-22  of a gaming device in a manner contrary to the designed and normal
  73-23  operational purpose for the component, including, but not limited
  73-24  to, varying the pull of the handle of a slot machine, with
  73-25  knowledge that the manipulation affects the outcome of the game or
  73-26  with knowledge of an event that affects the outcome of the game.
  73-27        (b)  An offense under this section is a felony of the third
   74-1  degree.
   74-2        Sec. 13.004.  USE OF PROHIBITED DEVICES.  (a)  A person
   74-3  commits an offense if the person, at a casino, uses or possesses
   74-4  with the intent to use a device, other than those customarily used
   74-5  in the conduct of gaming to assist in:
   74-6              (1)  projecting the outcome of the game;
   74-7              (2)  keeping track of the cards played;
   74-8              (3)  analyzing the probability of the occurrence of an
   74-9  event relating to the game; or
  74-10              (4)  analyzing the strategy for playing or betting to
  74-11  be used in the game.
  74-12        (b)  An offense under this section is a felony of the third
  74-13  degree.
  74-14        Sec. 13.005.  USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN, CHIP,
  74-15  OR COIN.  (a)  A person commits an offense if the person knowingly
  74-16  uses counterfeit chips in a gambling game.
  74-17        (b)  A person commits an offense if the person, in playing or
  74-18  using any gambling game designed to be played with, receive, or be
  74-19  operated by chips or tokens approved by the executive director or
  74-20  by lawful coin of the United States of America:
  74-21              (1)  knowingly uses other than chips or tokens approved
  74-22  by the commission or lawful coin, legal tender of the United States
  74-23  of America, or uses coin not of the same denomination as the coin
  74-24  intended to be used in that gambling game; or
  74-25              (2)  uses any device or means to violate the provisions
  74-26  of this Act.
  74-27        (c)  A person, other than a duly authorized employee of an
   75-1  owner licensee acting in furtherance of the person's employment
   75-2  within an establishment commits an offense if the person knowingly
   75-3  has on the person's body or in the person's possession on or off
   75-4  the premises of a casino a device intended to be used to violate
   75-5  the provisions of this Act.
   75-6        (d)  A person, other than a duly authorized employee of an
   75-7  owner licensee acting in furtherance of the person's employment
   75-8  within an establishment, commits an offense if the person knowingly
   75-9  has on the person's body or in the person's possession on or off
  75-10  the premises of a casino a key or device known to have been
  75-11  designed for the purpose of and suitable for opening, entering, or
  75-12  affecting the operation of a gambling game, a drop box, or an
  75-13  electronic or mechanical device connected to the game or box or for
  75-14  removing money or other contents from the game or box.
  75-15        (e)  A person commits an offense if the person knowingly has
  75-16  on the person's body or in the person's possession paraphernalia
  75-17  for manufacturing slugs for use in gaming devices.  In this
  75-18  subsection, "paraphernalia for manufacturing slugs" means the
  75-19  equipment, products, and materials that are intended for use or
  75-20  designed for use in manufacturing, producing, fabricating,
  75-21  preparing, testing, analyzing, packaging, storing, or concealing a
  75-22  counterfeit facsimile of the chips or tokens approved by the
  75-23  executive director or a lawful coin of the United States, the use
  75-24  of which is an offense under Subsection (b) of this section.  The
  75-25  term includes:
  75-26              (1)  lead or lead alloys;
  75-27              (2)  molds, forms, or similar equipment capable of
   76-1  producing a likeness of a gaming token or United States coin;
   76-2              (3)  melting pots or other receptacles;
   76-3              (4)  torches; and
   76-4              (5)  tongs, trimming tools, or other similar equipment.
   76-5        (f)  Possession of more than one of the devices, equipment,
   76-6  products, or materials described in this section permits a
   76-7  rebuttable inference that the possessor intended to use them for
   76-8  cheating.
   76-9        (g)  An offense under this section is a felony of the third
  76-10  degree.
  76-11        Sec. 13.006.  CHEATING.  (a)  A person commits an offense if
  76-12  the person knowingly cheats at any gambling game.
  76-13        (b)  An offense under this section is a state jail felony.
  76-14        Sec. 13.007.  POSSESSION OF UNLAWFUL DEVICES.  (a)  A person
  76-15  commits an offense if the person knowingly possesses any slot
  76-16  machine or gaming device that has been manufactured, sold, or
  76-17  distributed in violation of this Act.
  76-18        (b)  An offense under this section is a Class A misdemeanor.
  76-19        Sec. 13.008.  UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION OF
  76-20  GAMING EQUIPMENT.  (a)  A person commits an offense if the person
  76-21  manufactures, sells, or distributes cards, chips, dice, a game, or
  76-22  a device intended to be used to violate a provision of this Act.
  76-23        (b)  A person commits an offense if the person marks, alters,
  76-24  or otherwise modifies any associated equipment or gaming device in
  76-25  a manner that:
  76-26              (1)  affects the result of a wager by determining win
  76-27  or loss; or
   77-1              (2)  alters the normal criteria of random selection,
   77-2  which affects the operation of a game or which determines the
   77-3  outcome of a game.
   77-4        (c)  A person commits an offense if the person instructs
   77-5  another in cheating or in the use of a device for cheating, with
   77-6  the knowledge or intent that the information or use conveyed may be
   77-7  employed to violate a provision of this Act.
   77-8        (d)  An offense under this section is a felony of the third
   77-9  degree.
  77-10        Sec. 13.009.  REPORTING PENALTIES.  (a)  A person commits an
  77-11  offense if the person, in a license application, in a book or
  77-12  record required to be maintained by this Act or a rule adopted
  77-13  under this Act, or in a report required to be submitted by this Act
  77-14  or a rule adopted under this Act:
  77-15              (1)  makes a statement or entry that the person knows
  77-16  to be false or misleading; or
  77-17              (2)  knowingly fails to maintain or make an entry the
  77-18  person knows is required to be maintained or made.
  77-19        (b)  A person commits an offense if the person knowingly
  77-20  refuses to produce for inspection by the executive director a book,
  77-21  record, or document required to be maintained or made by this Act
  77-22  or a rule adopted under this Act.
  77-23        (c)  An offense under this section is a Class A misdemeanor.
  77-24        Sec. 13.010.  GAMING BY MINORS.  (a)  A person commits an
  77-25  offense if the person knowingly permits an individual that the
  77-26  person knows is younger than 21 years of age to participate in
  77-27  gaming.
   78-1        (b)  An individual commits an offense if the individual
   78-2  participates in gaming and the individual is younger than 21 years
   78-3  of age at the time of participation.
   78-4        (c)  An offense under this section is a Class C misdemeanor.
   78-5        Sec. 13.011.  GENERAL PENALTY.  (a)  A person commits an
   78-6  offense if the person wilfully violates, attempts to violate, or
   78-7  conspires to violate any of the provisions of this Act specifying
   78-8  prohibited acts.
   78-9        (b)  If no penalty is otherwise specified, an offense under
  78-10  this section is a Class A misdemeanor.
  78-11                  ARTICLE 14.  LOCAL OPTION ELECTIONS
  78-12        Sec. 14.001.  ORDERING LOCAL OPTION ELECTION.  The governing
  78-13  body of an eligible political subdivision may at any time order and
  78-14  hold an election to legalize gaming under this Act in that
  78-15  political subdivision.  However, no election shall be held before
  78-16  the date of the election at which the constitutional amendment
  78-17  proposed by the 74th Legislature, Regular Session, 1995, is
  78-18  submitted to the voters.  The local option election authorized by
  78-19  this section may be held on the same date as the election at which
  78-20  the constitutional amendment proposed by the 74th Legislature,
  78-21  Regular Session, 1995, is presented to the voters.  The governing
  78-22  body of a political subdivision shall order and hold an election to
  78-23  legalize gaming under this Act in the political subdivision if the
  78-24  governing body is presented with a petition that meets the
  78-25  requirements of Section 14.002 of this Act and is certified as
  78-26  valid under Section 14.003 of this Act.
  78-27        Sec. 14.002.  PETITION REQUIREMENTS.  (a)  A petition for a
   79-1  legalization election must have a statement substantially as
   79-2  follows before the space reserved for signatures on each page:
   79-3  "This petition is to require that an election be held in (name of
   79-4  political subdivision) to legalize casino gaming in (name of
   79-5  political subdivision) under Article 179h, Revised Statutes."
   79-6        (b)  A petition is valid only if it is signed by registered
   79-7  voters of the political subdivision in a number equal to or greater
   79-8  than the lesser of:
   79-9              (1)  three percent of the number of votes cast for
  79-10  governor by qualified voters of the political subdivision in the
  79-11  most recent gubernatorial general election; or
  79-12              (2)  in an election to be held in a municipality, the
  79-13  number specified in a municipality's charter.
  79-14        (c)  Each voter must enter beside the voter's signature the
  79-15  date the voter signs the petition.  A signature may not be counted
  79-16  as valid if the date of signing is earlier than the 90th day before
  79-17  the date the petition is submitted to the governing body.  A
  79-18  signature may be affixed to a petition before the effective date of
  79-19  this section.  A petition may not be presented to the governing
  79-20  body of a political subdivision before the effective date of this
  79-21  section.
  79-22        (d)  Each voter must provide on the petition the voter's
  79-23  current voter registration number, printed name, and residence
  79-24  address, including zip code.
  79-25        Sec. 14.003.  VERIFICATION.  (a)  Not later than the fifth
  79-26  day after the date a petition for an election under this Act is
  79-27  received in the office of the governing body, the governing body
   80-1  shall submit the petition for verification to the municipal
   80-2  secretary or county clerk, as applicable.
   80-3        (b)  The officer to whom the petition is submitted for
   80-4  verification shall determine whether the petition is signed by the
   80-5  required number of registered voters of the political subdivision.
   80-6  Not later than the 30th day after the date the petition is
   80-7  submitted to the officer for verification, the officer shall
   80-8  certify in writing to the governing body of the political
   80-9  subdivision whether the petition is valid or invalid.  If the
  80-10  officer determines that the petition is invalid, the officer shall
  80-11  state all reasons for that determination.
  80-12        Sec. 14.004.  ORDERING ELECTION.  If the municipal secretary
  80-13  or county clerk, as applicable, certifies that a petition is valid,
  80-14  not later than the 30th day after the date of certification, the
  80-15  governing body shall order that an election be held in the
  80-16  municipality or county on the next uniform election date under
  80-17  Section 41.001, Election Code, that occurs after the 45th day after
  80-18  the date on which the governing body orders the election.  The
  80-19  governing body shall state in the order the issue to be voted on.
  80-20  The municipal secretary or county clerk shall notify the commission
  80-21  by certified mail, return receipt requested, that an election has
  80-22  been ordered.
  80-23        Sec. 14.005.  BALLOT PROPOSITION.  The ballot in a
  80-24  legalization election shall be printed to provide for voting for or
  80-25  against the proposition:  "Legalizing casino gaming within (name of
  80-26  political subdivision) under Article 179h, Revised Statutes."
  80-27        Sec. 14.006.  ELECTION RESULTS.  (a)  If the majority of the
   81-1  votes cast in a legalization election favor the legalization of
   81-2  gaming, gaming authorized under this Act is permitted within the
   81-3  political subdivision holding the election effective the 10th day
   81-4  after the date of the election.
   81-5        (b)  The governing body of a political subdivision in which a
   81-6  legalization election has been held shall give written notice of
   81-7  the results of the election to the commission not later than the
   81-8  third day after the date the election is canvassed.
   81-9        (c)  If less than a majority of the votes cast in a
  81-10  legalization election in any county or municipality are cast in
  81-11  favor of the legalization of gaming, gaming shall not be permitted
  81-12  in the county or municipality holding the election, and a
  81-13  subsequent election on the issue may not be held in the county or
  81-14  municipality before the corresponding uniform election date one
  81-15  year after the date of the election.
  81-16        (d)  If less than a majority of the votes cast in two
  81-17  consecutive legalization elections within any county or
  81-18  municipality are cast in favor of the legalization of gaming,
  81-19  gaming shall not be permitted in the county or municipality holding
  81-20  the election, and a subsequent election on the issue may not be
  81-21  held in the county or municipality before the corresponding uniform
  81-22  election date five years after the date of the election.
  81-23        (e)  A countywide legalization election does not permit
  81-24  gaming in any municipality within the county unless gaming is
  81-25  legalized within the municipality through a separate municipal
  81-26  legalization election.  The failure of any countywide legalization
  81-27  election has no effect on subsequent elections in municipalities
   82-1  located within the county, and the failure of any municipal
   82-2  legalization election has no effect on subsequent countywide
   82-3  legalization elections.
   82-4        SECTION 2.  Section 47.02(c), Penal Code, is amended to read
   82-5  as follows:
   82-6        (c)  It is a defense to prosecution under this section that
   82-7  the actor reasonably believed that the conduct:
   82-8              (1)  was permitted under the Bingo Enabling Act
   82-9  (Article 179d, Vernon's Texas Civil Statutes);
  82-10              (2)  was permitted under the Charitable Raffle Enabling
  82-11  Act (Article 179f, Revised Statutes);
  82-12              (3)  consisted entirely of participation in the state
  82-13  lottery authorized by the State Lottery Act (Article 179g, Vernon's
  82-14  Texas Civil Statutes); <or>
  82-15              (4)  was permitted under the Texas Racing Act (Article
  82-16  179e, Vernon's Texas Civil Statutes); or
  82-17              (5)  was permitted under the Texas Economic Development
  82-18  and Gaming Control Act (Article 179h, Revised Statutes).
  82-19        SECTION 3.  Section 47.09(a), Penal Code, is amended to read
  82-20  as follows:
  82-21        (a)  It is a defense to prosecution under this chapter that
  82-22  the conduct:
  82-23              (1)  was authorized under:
  82-24                    (A)  the Bingo Enabling Act (Article 179d,
  82-25  Vernon's Texas Civil Statutes);
  82-26                    (B)  the Texas Racing Act (Article 179e, Vernon's
  82-27  Texas Civil Statutes); <or>
   83-1                    (C)  the Charitable Raffle Enabling Act (Article
   83-2  179f, Revised Statutes); or
   83-3                    (D)  the Texas Economic Development and Gaming
   83-4  Control Act (Article 179h, Revised Statutes);
   83-5              (2)  consisted entirely of participation in the state
   83-6  lottery authorized by the State Lottery Act (Article 179g, Vernon's
   83-7  Texas Civil Statutes); or
   83-8              (3)  was a necessary incident to the operation of the
   83-9  state lottery and was directly or indirectly authorized by the:
  83-10                    (A)  State Lottery Act;
  83-11                    (B)  lottery division of the comptroller's
  83-12  office;
  83-13                    (C)  comptroller; or
  83-14                    (D)  director of the lottery division.
  83-15        SECTION 4.  Article 8803, Revised Statutes, is amended to
  83-16  read as follows:
  83-17        Art. 8803.  Exemptions From Tax.  (a)  Gas meters, pay
  83-18  telephones, pay toilets, food vending machines, confection vending
  83-19  machines, beverage vending machines, merchandise vending machines,
  83-20  and cigarette vending machines which are now subject to an
  83-21  occupation or gross receipts tax, stamp vending machines, and
  83-22  "service coin-operated machines," as that term is defined, are
  83-23  expressly exempt from the tax levied herein, and the other
  83-24  provisions of this Chapter.
  83-25        (b)  An electronic or electromechanical gaming device
  83-26  permitted under the Texas Economic Development and Gaming Control
  83-27  Act (Article 179h, Revised Statutes) is exempt from the tax imposed
   84-1  by this Chapter and from the other provisions of this Chapter.
   84-2        SECTION 5.  Section 572.003(c), Government Code, is conformed
   84-3  to Chapters 260, 284, and 408, Acts of the 73rd Legislature,
   84-4  Regular Session, 1993, and amended to read as follows:
   84-5        (c)  The term means a member of:
   84-6              (1)  the Public Utility Commission of Texas;
   84-7              (2)  the Texas Department of Commerce;
   84-8              (3)  the Texas Natural Resource Conservation
   84-9  Commission;
  84-10              (4)  the Texas Alcoholic Beverage Commission;
  84-11              (5)  The Finance Commission of Texas;
  84-12              (6)  the General Services Commission;
  84-13              (7)  the Texas Board of Criminal Justice;
  84-14              (8)  the board of trustees of the Employees Retirement
  84-15  System of Texas;
  84-16              (9)  the Texas Transportation Commission;
  84-17              (10)  the Texas Workers' Compensation Commission;
  84-18              (11)  the State Board of Insurance;
  84-19              (12)  the Parks and Wildlife Commission;
  84-20              (13)  the Public Safety Commission;
  84-21              (14)  the Texas Ethics Commission;
  84-22              (15)  the State Securities Board;
  84-23              (16)  the Texas Water Development Board;
  84-24              (17)  the governing board of a public senior college or
  84-25  university as defined by Section 61.003, Education Code, or of The
  84-26  University of Texas Southwestern Medical Center at Dallas, The
  84-27  University of Texas Medical Branch at Galveston, The University of
   85-1  Texas Health Science Center at Houston, The University of Texas
   85-2  Health Science Center at San Antonio, The University of Texas
   85-3  System Cancer Center, The University of Texas Health Science Center
   85-4  at Tyler, Texas College of Osteopathic Medicine, Texas Tech
   85-5  University Health Sciences Center, Texas State Technical
   85-6  Institute--Amarillo, Texas State Technical Institute--Harlingen,
   85-7  Texas State Technical Institute--Sweetwater, or Texas State
   85-8  Technical Institute--Waco;
   85-9              (18)  the Texas Higher Education Coordinating Board;
  85-10              (19)  the Texas Employment Commission;
  85-11              (20)  the State Banking Board;
  85-12              (21)  the board of trustees of the Teachers Retirement
  85-13  System of Texas;
  85-14              (22)  the Credit Union Commission;
  85-15              (23)  the School Land Board;
  85-16              (24)  the board of the Texas Department of Housing and
  85-17  Community Affairs;
  85-18              (25)  the Texas Racing Commission;
  85-19              (26)  the State Board of Dental Examiners;
  85-20              (27)  the Texas Board of Licensure for Nursing Home
  85-21  Administrators;
  85-22              (28)  the Texas State Board of Medical Examiners;
  85-23              (29)  the Board of Pardons and Paroles;
  85-24              (30)  the State Board of Pharmacy;
  85-25              (31)  the Department of Information Resources governing
  85-26  board;
  85-27              (32)  the Motor Vehicle Board;
   86-1              (33)  the Texas Real Estate Commission;
   86-2              (34)  the board of directors of the State Bar of Texas;
   86-3              (35)  the bond review board;
   86-4              (36)  the Texas Board of Health;
   86-5              (37)  the Texas Board of Mental Health and Mental
   86-6  Retardation;
   86-7              (38)  the Texas Board on Aging;
   86-8              (39)  the Texas Board of Human Services;
   86-9              (40)  the Texas Funeral Service Commission; <or>
  86-10              (41)  the board of directors of a river authority
  86-11  created under the Texas Constitution or a statute of this state;
  86-12              (42)  the director of the lottery division in the
  86-13  office of the comptroller;
  86-14              (43)  the deputy in charge of the department of
  86-15  security in the lottery division in the office of the comptroller;
  86-16  or
  86-17              (44)  a member of the Texas Gaming Commission.
  86-18        SECTION 6.  Section 11.05, Texas Racing Act (Article 179e,
  86-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  86-20        Sec. 11.05.  Unlawful Wagering.  A person shall not wager on
  86-21  the result of a greyhound race or horse race in this state except
  86-22  as permitted by this Act or by the Texas Economic Development and
  86-23  Gaming Control Act (Article 179h, Revised Statutes).
  86-24        SECTION 7.  All funds in the Texas casino gaming fund are
  86-25  appropriated to the Texas Gaming Commission for the operation of
  86-26  the commission and the administration of the Texas Economic
  86-27  Development and Gaming Control Act (Article 179h, Revised
   87-1  Statutes), as added by Section 1 of this Act for the biennium
   87-2  ending August 31, 1997.
   87-3        SECTION 8.  The governor shall make the initial appointments
   87-4  to the Texas Gaming Commission not later than 30 days after the
   87-5  effective date of this Act.  In making the initial appointments to
   87-6  the Texas Gaming Commission, the governor shall designate two
   87-7  members for terms expiring in 1997, two members for terms expiring
   87-8  in 1999, and two members for terms expiring in 2001.
   87-9        SECTION 9.  Article 14 of the Texas Economic Development and
  87-10  Gaming Control Act (Article 179h, Revised Statutes), as added by
  87-11  Section 1 of this Act, takes effect on September 1, 1995.  The
  87-12  remainder of this Act takes effect on the date on which the
  87-13  constitutional amendment proposed by the 74th Legislature, Regular
  87-14  Session, 1995, takes effect.  If that amendment is not approved by
  87-15  the voters, then this entire Act has no effect.
  87-16        SECTION 10.  The importance of this legislation and the
  87-17  crowded condition of the calendars in both houses create an
  87-18  emergency and an imperative public necessity that the
  87-19  constitutional rule requiring bills to be read on three several
  87-20  days in each house be suspended, and this rule is hereby suspended.