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78S40250 YDB-D
By: Flores H.B. No. 17
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the state to conduct video lottery and
authorizing Indian tribes to conduct video lottery under a contract
with the state; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 4, Government Code, is amended
by adding Chapter 466A to read as follows:
CHAPTER 466A. VIDEO LOTTERY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 466A.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Lottery Commission.
(2) "Division" means the lottery division established
by the commission under Chapter 467.
(3) "Video lottery" means the conduct of video lottery
games as authorized under this chapter.
(4) "Video lottery game" means any game of chance,
including a game of chance in which the outcome may be partially
determined by skill or ability, that for consideration may be
played by an individual on an electronic machine or video display.
(5) "Video lottery retailer" means a person licensed
under this chapter to conduct video lottery.
[Sections 466A.002-466A.050 reserved for expansion]
SUBCHAPTER B. ADMINISTRATION
Sec. 466A.051. POWERS AND DUTIES OF COMMISSION AND
EXECUTIVE DIRECTOR. (a) The commission and executive director
have broad authority and shall exercise strict control and close
supervision over video lottery games operated in this state to
promote and ensure integrity, security, honesty, and fairness in
the conduct and administration of video lottery.
(b) The executive director may contract with or employ a
person to perform a function, activity, or service in connection
with video lottery as prescribed by the executive director.
Sec. 466A.052. RULES. The commission shall adopt all rules
necessary to conduct or supervise video lottery, administer this
chapter, and provide security for video lottery.
Sec. 466A.053. ANNUAL REPORT. The commission shall make an
annual report to the governor, the comptroller, and the legislature
that provides a summary of video lottery revenues, prize
disbursements, and other expenses for the state fiscal year
preceding the report. The report must be in the form and reported
in the time provided by the General Appropriations Act.
Sec. 466A.054. INVESTIGATIONS. In addition to other
appropriate officials, the attorney general may investigate a
violation or alleged violation of:
(1) this chapter by any person; or
(2) the penal laws of this state in connection with the
conduct or administration of video lottery by the commission or its
personnel, a video lottery retailer, or a video lottery technology
provider.
[Sections 466A.055-466A.100 reserved for expansion]
SUBCHAPTER C. LICENSE AND CONTRACT REQUIREMENTS
Sec. 466A.101. RESTRICTIONS ON VIDEO LOTTERY. (a) A person
may not conduct video lottery in this state unless the person:
(1) is a video lottery retailer; or
(2) is an Indian tribe described by Section 47(f),
Article III, Texas Constitution, that has contracted with the
commission under this chapter to operate video lottery games on
behalf of this state on tribal land.
(b) A person may not provide video lottery technology for
use in this state unless the person holds a license to provide video
lottery technology under this chapter.
Sec. 466A.102. VIDEO LOTTERY CENTRAL COMPUTER SYSTEM. The
commission shall select a person to establish and maintain a video
lottery central computer system to link all video lottery machines
operated under this chapter to provide the information and security
measures required by the commission.
Sec. 466A.103. VIDEO LOTTERY RETAILER LICENSE. On
application, the commission shall issue a video lottery retailer
license to a pari-mutuel license holder in good standing under the
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) who:
(1) holds a Class 1 or Class 2 racetrack license or is
licensed to conduct greyhound races under that act; and
(2) is not ineligible to hold the license under
another provision of this chapter or a commission rule.
Sec. 466A.104. VIDEO LOTTERY TECHNOLOGY PROVIDER LICENSE.
The commission shall issue a video lottery technology provider
license to an eligible person with equipment and technology the
commission determines to be compatible with the video lottery
central computer system to provide video lottery machines and
services to video lottery retailers and Indian tribes conducting
video lottery under this chapter.
Sec. 466A.105. CONTRACT WITH INDIAN TRIBE. As authorized
by Section 47(f), Article III, Texas Constitution, the commission
may contract with an Indian tribe for the operation of video lottery
games on behalf of this state by the Indian tribe on tribal land.
[Sections 466A.106-466.150 reserved for expansion]
SUBCHAPTER D. REVENUE
Sec. 466A.151. DIVISION OF REVENUE OF VIDEO LOTTERY
RETAILER. (a) Not later than the third business day of each month,
or on a later date as permitted by commission rule, a video lottery
retailer shall pay to the commission ____ percent of the net
terminal income derived from video lottery games operated by the
retailer in the preceding month.
(b) The remainder of the net terminal income shall be
retained by the video lottery retailer.
Sec. 466A.152. REVENUE FROM INDIAN TRIBE VIDEO LOTTERY. A
contract under Section 466A.105 must provide for the commission to
receive not less than ____ percent of the net terminal income
derived from video lottery games operated under the contract.
Sec. 466A.153. STATE VIDEO LOTTERY ACCOUNT. The state
video lottery account is a special account in the general revenue
fund. The account consists of all revenue received by the
commission from video lottery, fees received under this chapter,
and all money credited to the account from any other fund or source
under law.
[Sections 466A.154-466A.200 reserved for expansion]
SUBCHAPTER E. OFFENSE; PENALTIES
Sec. 466A.201. MANIPULATION OR TAMPERING. (a) A person
commits an offense if the person intentionally or knowingly
manipulates the outcome of a video lottery game, the amount of a
video lottery game prize, or the operation of a video lottery
machine by physical, electronic, or other means, other than in
accordance with commission rules.
(b) An offense under this section is a felony of the third
degree.
Sec. 466A.202. SALE OF VIDEO LOTTERY GAME TO PERSON YOUNGER
THAN 18 YEARS OF AGE. (a) A video lottery retailer or an employee
or agent of a video lottery retailer or an employee, agent, or
member of an Indian tribe commits an offense if the person
intentionally or knowingly:
(1) sells or offers to sell a play of a video lottery
game to an individual the person knows is younger than 18 years of
age or permits the individual to purchase a play of a video lottery
game; or
(2) pays money or issues a video credit slip or other
winnings for a play of a video lottery game to an individual the
person knows is younger than 18 years of age.
(b) An individual who is younger than 18 years of age
commits an offense if the individual:
(1) purchases a play of a video lottery game;
(2) accepts money, a video credit slip, or other
payment of winnings for play of a video lottery game; or
(3) falsely represents the individual to be 18 years
of age or older by displaying evidence of age that is false or
fraudulent or misrepresents in any way the individual's age in
order to purchase a play of a video lottery game.
(c) An offense under Subsection (a) is a Class B
misdemeanor.
(d) An offense under Subsection (b) is a misdemeanor
punishable by a fine not to exceed $250.
Sec. 466A.203. ADMINISTRATIVE PENALTY. The commission may
impose an administrative penalty against a person licensed under
this chapter who violates this chapter or a rule or order adopted
under this chapter.
SECTION 2. Section 466.024(b), Government Code, is amended
to read as follows:
(b) The commission shall adopt rules prohibiting the
operation of any game using a video lottery machine or machine,
except in accordance with Chapter 466A.
SECTION 3. Section 47.09, Penal Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code; or
(C) the Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes);
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code, or in video
lottery authorized by Chapter 466A, Government Code; or
(3) was a necessary incident to the operation of the
state lottery or video lottery and was directly or indirectly
authorized by:
(A) Chapter 466 or 466A, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
(c) Subsection (a)(3) applies to a person manufacturing,
possessing, or operating a gambling device with the authorization
of the Texas Lottery Commission under Chapter 466A, Government
Code, or under a contract entered into with the commission under
that chapter.
SECTION 4. Chapter 47, Penal Code, is amended by adding
Section 47.095 to read as follows:
Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
a defense to prosecution under this chapter that a person sells,
leases, transports, possesses, stores, or manufactures a gambling
device with the authorization of the Texas Lottery Commission under
Chapter 466A, Government Code, for transportation in interstate or
foreign commerce.
SECTION 5. Article 6, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 6.011
to read as follows:
Sec. 6.011. OPERATION OF VIDEO LOTTERY. (a) A racetrack
license holder may operate a video lottery game on behalf of the
Texas Lottery Commission as a video lottery retailer under Chapter
466A, Government Code.
(b) The commission may adopt rules necessary to implement
this section.
SECTION 6. As soon as practicable after the effective date
of this Act, the Texas Lottery Commission shall adopt the rules
necessary to implement video lottery in accordance with Chapter
466A, Government Code, as added by this Act.
SECTION 7. This Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, 4th
Called Session, 2004, authorizing the state to operate as a form of
lottery video lottery games at racetracks and authorizing certain
Indian tribes under contract with the state to operate video
lottery games on tribal land takes effect. If that amendment is not
approved by the voters, this Act has no effect.