By Moncrief S.B. No. 1222 76R6239 GJH-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain gambling by means of a computer or credit card; 1-3 providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter I, Chapter 35, Business & Commerce 1-6 Code, is amended by adding Sections 35.104 and 35.105 to read as 1-7 follows: 1-8 Sec. 35.104. RESTRICTED ACCESS TO INTERNET GAMBLING. 1-9 (a) Except as provided by Subsection (b), a person who provides an 1-10 interactive computer service to another person for a fee shall 1-11 block access to direct links to network computers or sites that: 1-12 (1) would allow the subscriber of the service to 1-13 violate federal or state laws prohibiting gambling; and 1-14 (2) are regularly used to violate federal or state 1-15 laws prohibiting gambling. 1-16 (b) A person who provides an interactive computer service to 1-17 another person for a fee may allow access to direct links to 1-18 network computers or sites described by Subsection (a) only if: 1-19 (1) the subscriber is at least 18 years of age; 1-20 (2) the service provider has received a signed, mailed 1-21 request for the removal of the access block; and 1-22 (3) the service provider places, on its primary home 1-23 page, a direct link to information that provides a concise warning 1-24 regarding: 2-1 (A) the illegality of gambling on a computer 2-2 network; and 2-3 (B) the addictive behavior associated with 2-4 gambling. 2-5 Sec. 35.105. CIVIL PENALTY. (a) A person is liable to the 2-6 state for a civil penalty of $5,000 for each day on which the 2-7 person provides an interactive computer service for a fee but fails 2-8 to comply with Section 35.104. The aggregate civil penalty may not 2-9 exceed $150,000. 2-10 (b) The attorney general may institute a suit to recover the 2-11 civil penalty. Before filing suit, the attorney general shall give 2-12 the person notice of the person's noncompliance and liability for a 2-13 civil penalty. If the person complies with the requirements of 2-14 Section 35.104 not later than the 30th day after the date of the 2-15 notice, the violation of that section is considered cured, and the 2-16 person is not liable for the civil penalty. 2-17 SECTION 2. Sections 47.01(1) through (6), Penal Code, are 2-18 amended to read as follows: 2-19 (1) "Bet" means an agreement to win or lose something 2-20 of value solely or partially by chance, including an agreement made 2-21 by an electronic transmission from a computer to another computer 2-22 with either the transmitting computer or the receiving computer 2-23 being located in this state. A bet does not include: 2-24 (A) contracts of indemnity or guaranty, or life, 2-25 health, property, or accident insurance; 2-26 (B) an offer of a prize, award, or compensation 2-27 to the actual contestants in a bona fide contest for the 3-1 determination of skill, speed, strength, or endurance or to the 3-2 owners of animals, vehicles, watercraft, or aircraft entered in a 3-3 contest; or 3-4 (C) an offer of merchandise, with a value not 3-5 greater than $25, made by the proprietor of a bona fide carnival 3-6 contest conducted at a carnival sponsored by a nonprofit religious, 3-7 fraternal, school, law enforcement, youth, agricultural, or civic 3-8 group, including any nonprofit agricultural or civic group 3-9 incorporated by the state before 1955, if the person to receive the 3-10 merchandise from the proprietor is the person who performs the 3-11 carnival contest. 3-12 (2) "Bookmaking" means: 3-13 (A) to receive from a person in this state and 3-14 record or to forward to a person in this state more than five bets 3-15 or offers to bet in a period of 24 hours; 3-16 (B) to receive from a person in this state and 3-17 record or to forward to a person in this state bets or offers to 3-18 bet totaling more than $1,000 in a period of 24 hours; or 3-19 (C) a scheme by three or more persons to receive 3-20 from a person in this state, record in this state, or forward to a 3-21 person in this state a bet or an offer to bet. 3-22 (3) "Gambling place" means any real estate, building, 3-23 room, tent, vehicle, boat, computer in a computer network that is 3-24 located in this state or that a person in this state uses to bet, 3-25 or other property whatsoever, one of the uses of which is the 3-26 making or settling of bets, bookmaking, or the conducting of a 3-27 lottery or the playing of gambling devices. 4-1 (4) "Gambling device" means any electronic, 4-2 electromechanical, or mechanical contrivance not excluded under 4-3 Paragraph (B), including a computer in a computer network that is 4-4 located in this state or that a person in this state uses to bet, 4-5 that for a consideration affords the player an opportunity to 4-6 obtain anything of value, the award of which is determined solely 4-7 or partially by chance, even though accompanied by some skill, 4-8 whether or not the prize is automatically paid by the contrivance. 4-9 The term: 4-10 (A) includes, but is not limited to, gambling 4-11 device versions of bingo, keno, blackjack, lottery, roulette, video 4-12 poker, or similar electronic, electromechanical, or mechanical 4-13 games, or facsimiles thereof, that operate by chance or partially 4-14 so, that as a result of the play or operation of the game award 4-15 credits or free games, and that record the number of free games or 4-16 credits so awarded and the cancellation or removal of the free 4-17 games or credits; and 4-18 (B) does not include any electronic, 4-19 electromechanical, or mechanical contrivance designed, made, and 4-20 adapted solely for bona fide amusement purposes if the contrivance 4-21 rewards the player exclusively with noncash merchandise prizes, 4-22 toys, or novelties, or a representation of value redeemable for 4-23 those items, that have a wholesale value available from a single 4-24 play of the game or device of not more than 10 times the amount 4-25 charged to play the game or device once or $5, whichever is less. 4-26 (5) "Altered gambling equipment" means any contrivance 4-27 that is in this state, or a computer in a computer network that a 5-1 person in this state accesses, that has been altered in some 5-2 manner, including, but not limited to, shaved dice, loaded dice, 5-3 magnetic dice, mirror rings, electronic sensors, shaved cards, 5-4 marked cards, and any other equipment altered or designed to 5-5 enhance the actor's chances of winning. 5-6 (6) "Gambling paraphernalia" means any book, computer, 5-7 computer site, instrument, or apparatus by means of which bets have 5-8 been or may be recorded or registered; any record, ticket, 5-9 certificate, bill, slip, token, writing, scratch sheet, electronic 5-10 mail, transmission through a computer network, or other means of 5-11 carrying on bookmaking, wagering pools, lotteries, numbers, policy, 5-12 or similar games. 5-13 SECTION 3. Title 4, Finance Code, is amended by adding 5-14 Subtitle D to read as follows: 5-15 SUBTITLE D. UNENFORCEABILITY OF CERTAIN CREDIT CARD 5-16 TRANSACTIONS 5-17 CHAPTER 381. CREDIT CARD TRANSACTION FOR GAMBLING 5-18 Sec. 381.001. CREDIT CARD TRANSACTION FOR GAMBLING. A 5-19 credit card transaction, as defined by Section 301.001, is 5-20 unenforceable against the obligor if the creditor knew or should 5-21 have known at the time the transaction occurred that the credit 5-22 card transaction was an instrumentality used in the commission of 5-23 an offense under Chapter 47, Penal Code. 5-24 SECTION 4. (a) This Act takes effect September 1, 1999, 5-25 except that a civil penalty for a violation of Section 35.105(a), 5-26 Business & Commerce Code, as added by this Act, may be imposed only 5-27 for a violation that occurs on or after January 1, 2000. 6-1 (b) The changes in law made by this Act to Section 47.01, 6-2 Penal Code, apply only to an offense committed on or after the 6-3 effective date of this Act. For purposes of this section, an 6-4 offense is committed before the effective date of this Act if any 6-5 element of the offense occurs before that date. 6-6 (c) An offense committed before the effective date of this 6-7 Act is covered by the law in effect when the offense was committed, 6-8 and the former law is continued in effect for that purpose. 6-9 SECTION 5. The importance of this legislation and the 6-10 crowded condition of the calendars in both houses create an 6-11 emergency and an imperative public necessity that the 6-12 constitutional rule requiring bills to be read on three several 6-13 days in each house be suspended, and this rule is hereby suspended.