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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.