By Lucio S.B. No. 1673
74R7199 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of video draw poker; imposing a tax;
1-3 providing civil and criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 6, Revised Statutes, is amended by adding
1-6 Article 179g to read as follows:
1-7 Art. 179g. VIDEO DRAW POKER
1-8 Sec. 1. DEFINITIONS. In this chapter:
1-9 (1) "Commission" means the Texas Lottery Commission.
1-10 (2) "Device operation" means operating a video draw
1-11 poker device in accordance with this article.
1-12 (3) "Device owner" means a person, other than a
1-13 distributor, who owns and operates, maintains, repairs, or services
1-14 a video draw poker device in a licensed establishment.
1-15 (4) "Distributor" means a person who buys, sells,
1-16 leases, services, or repairs video draw poker devices and who
1-17 provides a facility for the inspection of those devices as required
1-18 by the commission.
1-19 (5) "Division" means the video draw poker division
1-20 established in the Texas Lottery Commission under Section 467.031,
1-21 Government Code.
1-22 (6) "Licensed establishment" means premises for which
1-23 a person holds a license for the placement of video draw poker
1-24 devices under Section 7 of this article.
2-1 (7) "Manufacturer" means a person who manufactures or
2-2 assembles and programs video draw poker devices for use in this
2-3 state.
2-4 (8) "Net device revenue" means the gross revenue of a
2-5 video draw poker device less the value of prizes paid as shown on
2-6 the meters of the device.
2-7 (9) "Service entity" means a person other than a
2-8 distributor or device owner who repairs, services, inspects, or
2-9 examines video draw poker devices.
2-10 (10) "Video draw poker device" means a unit,
2-11 mechanism, or device authorized under this article that, on
2-12 insertion of cash, is available to play or simulate the play of the
2-13 game of draw poker or other card games approved by the commission,
2-14 using a cathode ray tube or video display screen and
2-15 microprocessors in which the player may win games or credits that
2-16 can be redeemed for merchandise or cash. The term does not include
2-17 a device that directly dispenses coins, cash, tokens, or anything
2-18 else of value, except the ticket voucher required in accordance
2-19 with this article. The term does not include any device authorized
2-20 to be used under the Bingo Enabling Act (Article 179d, Vernon's
2-21 Texas Civil Statutes) or Chapter 466, Government Code.
2-22 Sec. 2. GENERAL POWERS OF DIVISION AND COMMISSION. (a) The
2-23 division and its agents may:
2-24 (1) inspect and examine all premises where video draw
2-25 poker devices are offered for play or where video draw poker
2-26 devices or equipment are manufactured, sold, or distributed;
2-27 (2) inspect all video draw poker devices and related
3-1 equipment and supplies; and
3-2 (3) summarily seize and remove from the premises and
3-3 impound any video draw poker devices, equipment, or supplies for
3-4 the purpose of examination and inspection.
3-5 (b) The commission may issue subpoenas and compel the
3-6 attendance of witnesses before the commission, administer oaths at
3-7 the commission's official proceedings, require testimony under
3-8 oath, and punish as contempt the failure to obey the commission's
3-9 orders. Appeal of an action by the commission holding a person in
3-10 contempt shall be to a Travis County district court.
3-11 Sec. 3. GENERAL RULE-MAKING AUTHORITY. The commission shall
3-12 adopt rules necessary to facilitate implementation of this article,
3-13 including rules to:
3-14 (1) provide permit, application, and licensing
3-15 procedures;
3-16 (2) prescribe necessary application and reporting
3-17 forms; and
3-18 (3) require a license holder or former license holder
3-19 to maintain specified records, including financial and income
3-20 records, of video draw poker devices and operations.
3-21 Sec. 4. DUTY OF LICENSE HOLDER TO INFORM OF VIOLATION. (a)
3-22 A license holder under this article has a continuing duty to inform
3-23 the division of any action that the license holder believes would
3-24 constitute a violation of this article.
3-25 (b) A person who informs the division under this article may
3-26 not be discriminated against by another license holder because the
3-27 person supplied the information.
4-1 Sec. 5. EXEMPTION FROM FEDERAL LAW. A video draw poker
4-2 device operated or to be operated under this article is exempt from
4-3 the provisions of 15 U.S.C. Section 1172 relating to the
4-4 transportation of gambling devices.
4-5 Sec. 6. LICENSE REQUIRED. A person may not act as a device
4-6 owner, distributor, manufacturer, or service entity or operate a
4-7 licensed establishment unless the person holds an appropriate
4-8 license issued under this article.
4-9 Sec. 7. PREMISES ELIGIBLE FOR LICENSE. (a) A person owning
4-10 an eligible truck stop facility may be granted a license for the
4-11 placement of video draw poker devices in the facility in an area
4-12 separated for entry only by persons 21 years of age or older.
4-13 (b) A truck stop facility is eligible to be granted an
4-14 establishment license if the facility:
4-15 (1) covers 10 contiguous acres that have been
4-16 developed;
4-17 (2) is located on a numbered state highway or a
4-18 highway that is part of the National System of Interstate and
4-19 Defense Highways;
4-20 (3) has the following facilities or improvements:
4-21 (A) a restaurant with a seating capacity of 85
4-22 persons or more and that is open 24 hours a day;
4-23 (B) a fueling station facility for
4-24 tractor-trailer motor vehicles;
4-25 (C) a facility for the maintenance and repair of
4-26 tractor-trailer motor vehicles;
4-27 (D) a lounge for drivers of tractor-trailer
5-1 motor vehicles;
5-2 (E) a full service laundry facility;
5-3 (F) separate private showers facilities for men
5-4 and women;
5-5 (G) a store selling travel provisions; and
5-6 (H) a paved and lighted parking area for 75
5-7 tractor-trailer motor vehicles; and
5-8 (4) has been continuously operating the facilities and
5-9 improvements described in Subdivision (3) of this subsection on the
5-10 site of the facility for the two-year period preceding the date the
5-11 application for the license is made to the division under this
5-12 article.
5-13 Sec. 8. PERSONS ELIGIBLE FOR LICENSE; SUITABILITY. (a) A
5-14 person may not be granted a license under this article if the
5-15 person has been convicted in any jurisdiction within 10 years
5-16 before the date of the application of, or less than 10 years has
5-17 elapsed between the date of application and the successful
5-18 completion or service of any sentence, deferred adjudication, or
5-19 period of community supervision, probation, or parole, for:
5-20 (1) an offense punishable by imprisonment for more
5-21 than one year;
5-22 (2) theft or any crime involving false statements or
5-23 declarations; or
5-24 (3) a gambling offense.
5-25 (b) A person may not be granted a license under this article
5-26 or may not renew a license unless the applicant has demonstrated to
5-27 the division that the applicant is suitable for licensing. For
6-1 purposes of this article, suitability means the applicant or
6-2 license holder is:
6-3 (1) a person of honesty, integrity, and good
6-4 character;
6-5 (2) a person whose prior activities, arrest or
6-6 criminal record if any, reputation, habits, and associations do not
6-7 pose a threat to the public interest of this state or to the
6-8 effective regulation of video draw poker and do not create or
6-9 enhance the dangers of unsuitable, unfair, or illegal practices,
6-10 methods, and operations in the activities authorized by this
6-11 article and financial arrangements incidental to those activities;
6-12 and
6-13 (3) likely to conduct business in compliance with this
6-14 article.
6-15 (c) Each person who has or controls more than a five percent
6-16 ownership, income, or profit interest in an entity that has or
6-17 applies for a license in accordance with this article, or who has
6-18 the ability, in the opinion of the division, to exercise a
6-19 significant influence over the activities of a license holder
6-20 authorized or to be authorized under this article, must meet all
6-21 suitability requirements and qualifications for a license holder.
6-22 Sec. 9. RESIDENCE REQUIREMENT. A distributor, device owner,
6-23 or service entity license may not be renewed or issued to:
6-24 (1) an individual, unless the division finds that the
6-25 individual has resided in this state for the two years preceding
6-26 the date of the application;
6-27 (2) a corporation, unless a majority of the common and
7-1 preferred stock of the corporation is owned by individuals who have
7-2 resided in this state for the two years preceding the date of
7-3 application; or
7-4 (3) a partnership or organization other than a
7-5 corporation, unless a majority of the ownership interest in the
7-6 partnership or organization is owned by individuals who have
7-7 resided in this state for the two years preceding the date of
7-8 application.
7-9 Sec. 10. PROHIBITED RELATIONSHIPS. (a) A person employed
7-10 by or performing any function on behalf of the division may not:
7-11 (1) be an officer, director, owner, or employee of any
7-12 person licensed by the division; or
7-13 (2) have or hold any direct or indirect interest in or
7-14 engage in any commerce or business relationship with any person
7-15 licensed by the division.
7-16 (b) A person licensed by the division as a manufacturer,
7-17 distributor, or device owner may not participate in the operation
7-18 of any computer program, software, or device that is used for the
7-19 polling or reading of video draw poker device operations or for the
7-20 remote shutdown of those operations as provided for by Section 30
7-21 of this article.
7-22 (c) A person who is licensed as or has a direct or indirect
7-23 financial interest in an entity licensed as a manufacturer of video
7-24 draw poker devices may not be licensed as a distributor or device
7-25 owner or have the person's premises licensed for operation of video
7-26 draw poker devices.
7-27 Sec. 11. DISCLOSURES BY APPLICANT. An applicant for a
8-1 license on the application form must disclose to the division any
8-2 present or previous experience or involvement as an owner or
8-3 operator of gambling devices and establishments, as required by the
8-4 commission. Present or previous experience or involvement
8-5 includes:
8-6 (1) control of gambling devices as an owner or
8-7 operator;
8-8 (2) employment with the owner or operator of gambling
8-9 devices;
8-10 (3) employment in establishments where gambling is
8-11 offered to the public; and
8-12 (4) conviction of violation of federal, state, or
8-13 local gambling laws in any jurisdiction.
8-14 Sec. 12. DENIAL, CONDITIONING, SUSPENSION, OR REVOCATION OF
8-15 LICENSE. (a) The division may deny, condition, suspend, or revoke
8-16 a license applied for or issued under this article for a violation
8-17 of this article or a rule adopted under this article. The division
8-18 may not condition the license of or reinstate the license of a
8-19 person or the approval of a device unless the person or device
8-20 meets all criteria and requirements to be licensed or approved for
8-21 play.
8-22 (b) The division shall revoke or suspend the license of a
8-23 person or approval of a device issued under this article if the
8-24 division finds that the person licensed or device approved does not
8-25 meet the suitability or other requirements specified in this
8-26 article.
8-27 (c) A license authorized by this article may not be granted
9-1 to a person whose previous license was revoked by the division
9-2 before the fifth anniversary of the date the previous license was
9-3 revoked.
9-4 Sec. 13. REVOCATION OF LICENSE FOR ALLOWING PERSON UNDER 21
9-5 TO PLAY VIDEO DRAW POKER DEVICE. The division shall revoke the
9-6 license of a person licensed under this article who the division
9-7 finds has allowed an individual under the age of 21 to play or
9-8 operate a video draw poker device at a licensed establishment.
9-9 Sec. 14. CANCELLATION OR SUSPENSION OF ALCOHOLIC BEVERAGE
9-10 PERMIT. The Texas Alcoholic Beverage Commission or its
9-11 administrator may cancel or suspend a permit issued by that
9-12 commission in the manner provided by Subchapter C, Chapter 11,
9-13 Alcoholic Beverage Code, if the permittee allows the placement or
9-14 operation of a video draw poker device on the permittee's licensed
9-15 premises in violation of this article.
9-16 Sec. 15. APPLICATION OF ADMINISTRATIVE PROCEDURE ACT. A
9-17 person whose application for a license has been denied, or whose
9-18 license has been issued subject to a condition or suspended or
9-19 revoked, has the right to a hearing before the division. The
9-20 hearing must be conducted in accordance with Chapter 2001,
9-21 Government Code (Administrative Procedure Act).
9-22 Sec. 16. INVESTIGATIONS AND VIOLATIONS. (a) The division
9-23 shall conduct investigations, hearings, and inquiries as it
9-24 considers necessary to fulfill its responsibilities under this
9-25 article. A license may be suspended before a hearing on a written
9-26 finding of danger to public health and welfare.
9-27 (b) As a condition of receiving a license under this
10-1 article, each license holder agrees that the commission, the
10-2 division, and their agents and employees have unrestricted access
10-3 and the right to inspect any premises under the control of the
10-4 license holder in which any activity relating to this article is
10-5 conducted.
10-6 Sec. 17. LICENSE NOT TRANSFERABLE. A license issued under
10-7 this article is not transferable.
10-8 Sec. 18. LICENSE FEES. (a) The division shall annually
10-9 impose the following fees for the licenses under this article:
10-10 (1) manufacturer................................$5,000
10-11 (2) distributor.................................$3,000
10-12 (3) service entity..............................$2,000
10-13 (4) device operation............................$1,000
10-14 (5) device owner................................$1,000
10-15 (6) licensed establishment........................$100
10-16 (b) A device owner shall pay a device owner fee for the
10-17 privilege of owning and operating video draw poker devices and may
10-18 not be required to pay more than one device owner fee. A separate
10-19 device operation fee, payable by the device owner, is levied for
10-20 each video draw poker device placed by the device owner at a
10-21 licensed establishment. The device operation fee may be paid in
10-22 quarterly installments.
10-23 (c) The device owner fee is due and payable in addition to
10-24 any licensed establishment fee resulting from the placement of a
10-25 video draw poker device at that establishment. If more than one
10-26 video draw poker device is placed at a licensed establishment, only
10-27 one licensed establishment fee is due for that establishment.
11-1 Sec. 19. TAX. (a) There is imposed a tax on the net device
11-2 revenue derived from the operation of a video draw poker device.
11-3 (b) The rate of the tax imposed by this section is 22-1/2
11-4 percent of the net device revenue.
11-5 (c) The tax is payable by the device owner to the
11-6 commission.
11-7 Sec. 20. REVENUE ADMINISTRATION, COLLECTION, AND
11-8 ENFORCEMENT. (a) The commission shall perform all functions
11-9 incident to the administration, collection, enforcement, and
11-10 operation of any fee or tax imposed under this article. The
11-11 commission may adopt reasonable rules and prescribe forms that are
11-12 consistent with this article for the administration, collection,
11-13 and enforcement of the fees and taxes imposed under this article
11-14 and for the reporting of the fees and taxes imposed under this
11-15 article.
11-16 (b) Except as modified by this article, Subtitle B, Title 2,
11-17 Tax Code, applies to the administration, collection, and
11-18 enforcement of the taxes authorized or imposed under this article.
11-19 Sec. 21. DEPOSIT OF REVENUE. (a) Fees collected under
11-20 Section 18 of this article shall be deposited to the credit of the
11-21 general revenue fund.
11-22 (b) One-fourth of the tax collected under Section 19 of this
11-23 article shall be deposited to the credit of the county or
11-24 municipality in which a video draw poker device is operated.
11-25 Three-fourths of the tax collected under Section 19 of this article
11-26 shall be deposited to the credit of the general revenue fund.
11-27 Sec. 22. PREEMPTION OF LOCAL LAWS AND TAXES. Video draw
12-1 poker devices licensed under this article are exempt from taxes,
12-2 fees, and licensing restrictions imposed by any local governmental
12-3 entity, except that a local governing authority may levy an annual
12-4 occupational license tax on the operation of video draw poker
12-5 devices within its jurisdiction in an amount not to exceed $50 for
12-6 each device.
12-7 Sec. 23. REPORTING TO DIVISION. (a) The commission shall
12-8 adopt rules for the counting and collection of all net device
12-9 revenues and for the timely payment of all license fees and
12-10 penalties. The division may institute proceedings for the
12-11 collection of fees and penalties.
12-12 (b) Each month the device owner must give the division a
12-13 report containing:
12-14 (1) the serial number of each video draw poker device;
12-15 (2) the name and address of the establishment where
12-16 each device is located; and
12-17 (3) computer printouts of the net revenue of each
12-18 device taken directly from the device's electronic accounting
12-19 devices, if requested by the division.
12-20 (c) The division may require a device owner to maintain or
12-21 submit data, information, records, or reports required by this
12-22 article in any computer form, program, or storage consistent with
12-23 the division's recordkeeping or computer system or access. A rule
12-24 adopted under this section applies to the records of all device
12-25 owners.
12-26 Sec. 24. GENERAL REQUIREMENTS FOR DEVICES. (a) Each video
12-27 draw poker device must:
13-1 (1) be inspected in this state by the division for
13-2 certification and compliance;
13-3 (2) be connected with a system consisting of
13-4 player-operated terminals and a self-contained control computer;
13-5 (3) not have any device or program that will alter the
13-6 reading of the values or amounts of play to reflect values or
13-7 amounts other than actually played or any switches, jumpers, wire
13-8 posts, or any other means of manipulation that could affect the
13-9 operation or outcome of a game;
13-10 (4) not have any device, switch, program, or function
13-11 that can alter the readings of the actual amounts or values
13-12 relating to any function or occurrence of the device;
13-13 (5) not have any functions or parameters adjustable by
13-14 or through any separate video display or input codes, except for
13-15 the adjustment of features that are wholly cosmetic;
13-16 (6) use a display with images of cards that closely
13-17 resemble standard playing cards; and
13-18 (7) offer the game of draw poker or another card game
13-19 approved by the commission and have the method of operation
13-20 required by Section 25 of this article.
13-21 (b) A video draw poker device may have a mechanism that
13-22 accepts cash in the form of $1, $5, or $10 bills.
13-23 Sec. 25. METHOD OF OPERATING CARD GAME. (a) A game must
13-24 use a deck of cards consisting of 52 standard playing cards. The
13-25 deck may also contain not more than two jokers. The deck must be
13-26 shuffled after each hand is dealt by use of a random number
13-27 generator to exchange each card in the deck with another randomly
14-1 selected card.
14-2 (b) After shuffling, a required number of cards must be
14-3 dealt from the top of the deck.
14-4 (c) Any discarded cards must be replaced by remaining cards
14-5 in the deck, starting with the subsequent card and using the cards
14-6 in the order of the deck.
14-7 (d) The game must display the hands for which won games or
14-8 credits will be awarded and the number of won games or credits for
14-9 each hand, not to exceed the value of $500.
14-10 Sec. 26. SECURE AREAS. A video draw poker device must have
14-11 separate secure areas with locking doors for the game logic board
14-12 and software, the cash compartment, and the mechanical meters
14-13 required by rules of the commission. Access to one area from
14-14 another may not be allowed at any time.
14-15 Sec. 27. TICKET VOUCHER. (a) A video draw poker device
14-16 must be capable of printing a ticket voucher for the player at the
14-17 completion of each game. If credits are owed the player, the
14-18 ticket must contain:
14-19 (1) the name of the licensed establishment;
14-20 (2) the name of the municipality or county in which
14-21 the licensed establishment is located;
14-22 (3) the value of the prize in numbers;
14-23 (4) the value of the prize in words;
14-24 (5) the time of day, in hours and minutes in a 24-hour
14-25 format;
14-26 (6) the date;
14-27 (7) the device license number or serial number, up to
15-1 eight digits;
15-2 (8) the sequential number of the ticket voucher; and
15-3 (9) an encoded validation number from which the
15-4 validity of the prize can be determined.
15-5 (b) An exact copy of each printed ticket voucher must be
15-6 printed and retained within the device.
15-7 Sec. 28. METERS. (a) A video draw poker device must have
15-8 nonresettable mechanical meters housed in a secure compartment that
15-9 keep a permanent record of the total:
15-10 (1) coins accepted;
15-11 (2) credits generated by the bill acceptor, if the
15-12 device has a bill acceptor;
15-13 (3) credits played by players;
15-14 (4) credits won by players; and
15-15 (5) credits printed out by the ticket voucher printer.
15-16 (b) The device must contain electronic metering using meters
15-17 that record the total:
15-18 (1) coins in the coin acceptor or acceptors and, if
15-19 the device has a bill acceptor, the total credits generated by the
15-20 bill acceptor;
15-21 (2) credits in, played, won, and paid;
15-22 (3) hands of poker played and won;
15-23 (4) winning hands, consisting of one pair, two pairs,
15-24 three of a kind, a straight, a flush, a full house, four of a kind,
15-25 a straight flush, five of a kind, or other winning hand as allowed
15-26 by rule;
15-27 (5) errors from the logic board random access memory;
16-1 and
16-2 (6) examination of electronic meters.
16-3 Sec. 29. ACCOUNTING TICKET. A video draw poker device must
16-4 issue, by activation of an external switch, an accounting ticket
16-5 containing a performance synopsis of the device. The ticket must
16-6 contain:
16-7 (1) the name of the licensed establishment;
16-8 (2) the name of the municipality or county in which
16-9 the licensed establishment is located;
16-10 (3) the license number of the device;
16-11 (4) the time of day, in hours and minutes in a 24-hour
16-12 format;
16-13 (5) the date;
16-14 (6) the electronic meter readings required by Section
16-15 28(b) of this article; and
16-16 (7) a circuit-interrupting device, method, or
16-17 capability that will disable the machine if the division-approved
16-18 program is accessed or altered.
16-19 Sec. 30. TELECOMMUNICATIONS LINK. A video draw poker device
16-20 must be linked by telecommunication to a central computer for
16-21 purposes of polling or reading device activities and for central
16-22 computer remote shutdown of device operations.
16-23 Sec. 31. SERIAL NUMBER. Each video draw poker device must
16-24 have a serial number or other identification number permanently
16-25 affixed to the device by the manufacturer.
16-26 Sec. 32. ADDITIONAL SPECIFICATIONS BY RULE. (a) The
16-27 commission may provide by rule for additional specifications for
17-1 video draw poker devices to be approved and authorized under this
17-2 article as the commission considers necessary to maintain the
17-3 integrity of video draw poker devices and operations.
17-4 (b) The commission may not provide for any additional
17-5 specifications that would have the effect of reducing to fewer than
17-6 four the number of manufacturers who make devices that meet the
17-7 specifications of this article.
17-8 Sec. 33. WINNING PERCENTAGE. Each video draw poker device
17-9 must have dual electronic accounting devices to verify net device
17-10 revenue and winning percentages. Access to the stored data must be
17-11 readily available to the division.
17-12 Sec. 34. LIMITATION ON AMOUNT OF MONEY PLAYED AND VALUE OF
17-13 PRIZES. A video draw poker device may not:
17-14 (1) allow more than $5 to be placed on a game; or
17-15 (2) award won games or credits in excess of the value
17-16 of $500.
17-17 Sec. 35. EXPECTED PAYBACK; VERIFICATION. (a) The
17-18 commission by rule shall prescribe the expected payback value of
17-19 one credit played, which value must be at least 80 percent of the
17-20 value of a credit.
17-21 (b) Each video draw poker device must have an electronic
17-22 accounting device that the division may use to verify the winning
17-23 percentage.
17-24 (c) The division may not publish or otherwise disseminate
17-25 income figures and other statistics obtained in the payback
17-26 verification process or contained in payback verification reports
17-27 in a manner that allows or helps a person to identify a particular
18-1 device or to match a particular device with a particular income or
18-2 statistic, except as required for enforcement of this article.
18-3 Sec. 36. NUMBER OF DEVICES AVAILABLE FOR PLAY. There is no
18-4 limit on the number of video draw poker devices that may be placed
18-5 at a truck stop facility that is a licensed establishment.
18-6 Sec. 37. FAILURE TO OBTAIN LICENSE. (a) A person commits
18-7 an offense if the person possesses or operates a video draw poker
18-8 device without the appropriate license required by this article or
18-9 at a location or on premises not authorized by the division.
18-10 (b) An offense under this section is a felony of the third
18-11 degree.
18-12 Sec. 38. SKIMMING. (a) A person commits an offense if the
18-13 person intentionally excludes, or takes any action in an attempt to
18-14 exclude, anything or its value from the deposit, counting,
18-15 collection, or computation of revenues from video draw poker.
18-16 (b) An offense under this section is a felony of the third
18-17 degree.
18-18 SECTION 2. Section 467.024(a), Government Code, is amended
18-19 to read as follows:
18-20 (a) An individual is not eligible to be an appointed member
18-21 of the commission if the individual:
18-22 (1) owns or controls, directly or indirectly, more
18-23 than a 10 percent interest in a business entity or other
18-24 organization regulated by the commission or receiving funds from
18-25 the commission;
18-26 (2) is employed by or participates in the management
18-27 of a business entity or other organization regulated by the
19-1 commission or receiving funds from the commission;
19-2 (3) uses or receives a substantial amount of tangible
19-3 goods, services, or funds from the commission, other than
19-4 compensation or reimbursement authorized by law for commission
19-5 membership, attendance, or expenses;
19-6 (4) is an officer, employee, or paid consultant of a
19-7 Texas trade association in the field of bingo, video draw poker, or
19-8 lottery;
19-9 (5) is required to register as a lobbyist under
19-10 Chapter 305 because of the person's activities for compensation on
19-11 behalf of a profession related to the operation of the commission;
19-12 (6) is married to an individual described by
19-13 Subdivision (1)-(5);
19-14 (7) has been convicted of a felony or of any crime
19-15 involving moral turpitude; or
19-16 (8) is not a citizen of the United States.
19-17 SECTION 3. Section 467.025(a), Government Code, is amended
19-18 to read as follows:
19-19 (a) A commission member may not:
19-20 (1) accept any employment or remuneration from:
19-21 (A) a person that has a significant financial
19-22 interest in the lottery; <or>
19-23 (B) a bingo commercial lessor, bingo
19-24 distributor, or bingo manufacturer; or
19-25 (C) a video draw poker manufacturer,
19-26 distributor, service entity, device owner, or licensed
19-27 establishment;
20-1 (2) play any lottery, video draw poker, or bingo game
20-2 conducted in this state;
20-3 (3) accept or be entitled to accept any part of the
20-4 winnings to be paid from a lottery, video draw poker, or bingo game
20-5 conducted in this state;
20-6 (4) use the member's official authority to affect the
20-7 result of an election or nomination for public office; or
20-8 (5) directly or indirectly coerce, attempt to coerce,
20-9 command, or advise a person to pay, lend, or contribute anything of
20-10 value to another person for political purposes.
20-11 SECTION 4. Section 467.035(a), Government Code, is amended
20-12 to read as follows:
20-13 (a) The commission may not employ or continue to employ a
20-14 person who owns a financial interest in:
20-15 (1) a bingo commercial lessor, bingo distributor, or
20-16 bingo manufacturer; <or>
20-17 (2) a lottery sales agency or a lottery operator; or
20-18 (3) a video draw poker manufacturer, distributor,
20-19 service entity, device owner, or licensed establishment.
20-20 SECTION 5. Section 467.031, Government Code, is amended to
20-21 read as follows:
20-22 Sec. 467.031. DIVISIONS. The commission shall establish
20-23 separate divisions to oversee bingo, video draw poker, and the
20-24 state lottery.
20-25 SECTION 6. Sections 467.101(a) and (c), Government Code, are
20-26 amended to read as follows:
20-27 (a) The commission has broad authority and shall exercise
21-1 strict control and close supervision over all activities authorized
21-2 and conducted in this state under:
21-3 (1) the Bingo Enabling Act (Article 179d, Vernon's
21-4 Texas Civil Statutes); <and>
21-5 (2) Chapter 466; and
21-6 (3) Article 179g, Revised Statutes <the State Lottery
21-7 Act (Article 179g, Vernon's Texas Civil Statutes)>.
21-8 (c) The commission also has the powers and duties granted
21-9 under:
21-10 (1) the Bingo Enabling Act (Article 179d, Vernon's
21-11 Texas Civil Statutes); and
21-12 (2) Chapter 466; and
21-13 (3) Article 179g, Revised Statutes <the State Lottery
21-14 Act (Article 179g, Vernon's Texas Civil Statutes)>.
21-15 SECTION 7. Subchapter C, Chapter 467, Government Code, is
21-16 amended by adding Section 467.106 to read as follows:
21-17 Sec. 467.106. DUTIES OF VIDEO DRAW POKER DIVISION DIRECTOR.
21-18 The commission by rule shall specify the duties and powers of the
21-19 director of the video draw poker division and shall develop and
21-20 implement policies that clearly define the duties of the
21-21 commission, the director, the division, and employees of the
21-22 division in implementing Article 179g, Revised Statutes. The
21-23 commission may designate a power or duty of the commission under
21-24 that article to the director or division.
21-25 SECTION 8. Section 47.02(c), Penal Code, is amended to read
21-26 as follows:
21-27 (c) It is a defense to prosecution under this section that
22-1 the actor reasonably believed that the conduct:
22-2 (1) was permitted under the Bingo Enabling Act
22-3 (Article 179d, Vernon's Texas Civil Statutes);
22-4 (2) was permitted under the Charitable Raffle Enabling
22-5 Act (Article 179f, Revised Statutes);
22-6 (3) consisted entirely of participation in the state
22-7 lottery authorized by Chapter 466, Government Code; <the State
22-8 Lottery Act (Article 179g, Vernon's Texas Civil Statutes); or>
22-9 (4) was permitted under the Texas Racing Act (Article
22-10 179e, Vernon's Texas Civil Statutes); or
22-11 (5) consisted entirely of participation in a video
22-12 draw poker game authorized by Article 179g, Revised Statutes.
22-13 SECTION 9. Section 47.06, Penal Code, is amended by adding
22-14 Subsection (h) to read as follows:
22-15 (h) It is a defense to prosecution for an offense under this
22-16 section that the conduct was authorized, directly or indirectly, by
22-17 Article 179g, Revised Statutes.
22-18 SECTION 10. Section 47.09(a), Penal Code, is amended to read
22-19 as follows:
22-20 (a) It is a defense to prosecution under this chapter that
22-21 the conduct:
22-22 (1) was authorized under:
22-23 (A) the Bingo Enabling Act (Article 179d,
22-24 Vernon's Texas Civil Statutes);
22-25 (B) the Texas Racing Act (Article 179e, Vernon's
22-26 Texas Civil Statutes); or
22-27 (C) the Charitable Raffle Enabling Act (Article
23-1 179f, Revised Statutes);
23-2 (2) consisted entirely of participation in the state
23-3 lottery authorized by Chapter 466, Government Code; <the State
23-4 Lottery Act (Article 179g, Vernon's Texas Civil Statutes); or>
23-5 (3) was a necessary incident to the operation of the
23-6 state lottery and was directly or indirectly authorized by <the>:
23-7 (A) Chapter 466, Government Code <State Lottery
23-8 Act>;
23-9 (B) the lottery division of the comptroller's
23-10 office;
23-11 (C) the comptroller; or
23-12 (D) the director of the lottery division; or
23-13 (4) was permitted under Article 179g, Revised
23-14 Statutes.
23-15 SECTION 11. Section 466.024(b), Government Code, is
23-16 repealed.
23-17 SECTION 12. This Act takes effect September 1, 1995.
23-18 SECTION 13. (a) The change in law made by this Act applies
23-19 only to an offense committed on or after September 1, 1995. For
23-20 purposes of this section, an offense is committed before September
23-21 1, 1995, if any element of the offense occurs before that date.
23-22 (b) An offense committed before September 1, 1995, is
23-23 governed by the law in effect when the offense was committed, and
23-24 the former law is continued in effect for that purpose.
23-25 SECTION 14. The importance of this legislation and the
23-26 crowded condition of the calendars in both houses create an
23-27 emergency and an imperative public necessity that the
24-1 constitutional rule requiring bills to be read on three several
24-2 days in each house be suspended, and this rule is hereby suspended.