78R3454 YDB-D
By: Wilson H.B. No. 486
A BILL TO BE ENTITLED
AN ACT
relating to the establishment and operation of a state-owned casino
in Harris County; 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 Chapters 469 and 470 to read as follows:
CHAPTER 469. STATE CASINO
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 469.001. DEFINITIONS. In this chapter:
(1) "Casino employee" means a person who holds a
casino employee license under this chapter and is employed in a
position listed in Section 469.053.
(2) "Casino game" means any game of chance
traditionally or commonly conduted at lawful casinos in other
jurisdictions, including baccarat, blackjack, big six wheel,
craps, keno, minibaccarat, pai gow poker, red dog, roulette, sic
bo, slot machines, and video casino machines, or any similar game of
chance approved by the commission to be conducted at a state casino.
(3) "Casino operator" means a person employed under
Section 470.064.
(4) "Casino player" means a person who has paid to play
a casino game.
(5) "Casino vendor" means a person who contracts to
perform a function, activity, or service in connection with state
casino gaming.
(6) "Commission" means the Texas Casino Commission.
(7) "Enforcement director" means the director of the
enforcement division.
(8) "Enforcement division" means the division of state
casino gaming enforcement established by the commission under
Chapter 470.
(9) "Executive director" means the executive director
of the commission.
(10) "Operations director" means the director of the
operations division.
(11) "Operations division" means the division of state
gaming operations established by the commission under Chapter 470.
(12) "State casino" means a facility approved by the
commission for casino gaming as provided by this chapter.
(13) "State casino gaming" means the operation of
casino games by the state in accordance with this chapter in a state
casino.
Sec. 469.002. EXEMPTION FROM TAXATION. (a) A political
subdivision may not impose:
(1) a tax on state casino gaming;
(2) a tax on the payment of winnings of a casino player
at a state casino; or
(3) an ad valorem tax on a state casino or adjoining
real property owned by the commission and used in connection with a
state casino, including property used for parking.
(b) The receipts from state casino gaming are exempt from
taxation under Chapter 151, Tax Code.
[Sections 469.003-469.050 reserved for expansion]
SUBCHAPTER B. ADMINISTRATION AND OPERATION
Sec. 469.051. COMMISSION EMPLOYEES. Commission employees
are exempted from Chapter 654. The executive director shall set the
salaries of commission employees.
Sec. 469.052. STATE CASINO. (a) In accordance with
Section 47(f), Article III, Texas Constitution, the commission may
establish and operate a casino on the real property connected or
immediately adjoining the publicly funded sports venue commonly
referred to as the Astrodome in Harris County at which casino games
may be conducted.
(b) The commission may conduct casino games at a state
casino as the commission considers appropriate.
(c) The commission may conduct auxiliary enterprises in
conjunction with a state casino, including food service and
entertainment, for the convenience of patrons of casino gaming.
(d) The commission may purchase, lease, construct, or
otherwise acquire real property for the operation of a state
casino. The commission may sell or otherwise dispose of property
as the commission considers appropriate.
Sec. 469.053. POWERS AND DUTIES OF COMMISSION AND EXECUTIVE
DIRECTOR. (a) The commission and the executive director have
broad authority and shall exercise strict control and close
supervision over a state casino and casino games to promote and
ensure integrity, security, honesty, and fairness in state casino
gaming.
(b) The executive director may contract with a casino vendor
if the commission adopts a rule permitting the function, activity,
or service to be performed under a contract and the contract is
permitted under Subsection (c).
(c) The executive director may award a contract for casino
supplies or services, including a contract under Subsection (b),
pending the completion of any investigation authorized by this
chapter.
(d) A contract awarded under Subsection (c) must include a
provision permitting the executive director to terminate the
contract without penalty if the investigation reveals that the
person to whom the contract is awarded would not be eligible for a
casino employee license under this chapter.
(e) The following positions at a state casino may be filled
only by casino employees:
(1) boxperson;
(2) casino operator;
(3) cage personnel;
(4) count room personnel;
(5) data processing personnel;
(6) dealer;
(7) enforcement officer and investigator;
(8) floor manager;
(9) floorperson;
(10) machine mechanic;
(11) pit boss;
(12) security personnel;
(13) slot machine and slot booth personnel;
(14) surveillance personnel; and
(15) any other position required by commission rule to
be filled by a casino employee.
Sec. 469.054. RULES. (a) The commission shall adopt rules
necessary to administer this chapter and Chapter 470. The
executive director may propose rules to be adopted by the
commission.
(b) The commission shall adopt rules relating to:
(1) security for a state casino and the commission,
including the development of internal security plans;
(2) apportionment of the total revenues from the
proceeds of casino games and from all other sources in the amounts
provided by this chapter;
(3) enforcement of a prohibition on gambling at a
state casino by an individual younger than 21 years of age; and
(4) the sale and consumption of alcoholic beverages in
a state casino as governed by the Alcoholic Beverage Code.
(c) The commission shall adopt rules governing the
establishment, operation, and closure of a state casino, including
rules governing:
(1) the type and number of casino games to be
conducted;
(2) the permissible wager amounts;
(3) the number of and amount of winnings paid on a
casino game;
(4) the design and operation of a state casino;
(5) the payment of winnings to casino players;
(6) the investigation of alleged violations of this
chapter or a rule adopted under this chapter;
(7) advertising of or by a state casino;
(8) the qualifications of casino vendors;
(9) the confidentiality of information relating to the
operation of casino gaming, including:
(A) trade secrets;
(B) security measures, systems, or procedures;
(C) security reports;
(D) bids or other information regarding the
commission's contracts, if disclosure of the information would
impair the commission's ability to contract for facilities, goods,
or services on terms favorable to the commission;
(E) personnel information unrelated to
compensation, duties, qualifications, or responsibilities; and
(F) information obtained by an enforcement
officer or investigator;
(10) the criteria used in evaluating bids for
contracts for casino facilities, goods, and services; and
(11) any other matter determined by the commission to
promote or ensure:
(A) the integrity, security, honesty, or
fairness of state casino gaming; or
(B) the convenience of casino players.
Sec. 469.055. REVENUE BONDS FOR STATE CASINO. (a) The
commission may request the Texas Public Finance Authority to issue
revenue bonds or other revenue obligations to finance the
acquisition, construction, repair, and improvement of a state
casino and other real property used in the operation of a state
casino.
(b) On receipt of a request by the commission under this
section, the Texas Public Finance Authority shall promptly issue
the bonds or other revenue obligations under and in accordance with
Chapter 1232.
(c) The commission may use the proceeds of revenue bonds or
other revenue obligations issued under this section only to finance
the acquisition, construction, repair, and improvement of a state
casino and other real property used in the operation of a state
casino.
Sec. 469.056. ANNUAL REPORT. (a) The commission shall
prepare an annual report for the preceding fiscal year to the
governor and the legislature that provides a summary of:
(1) state casino gaming revenues;
(2) winnings disbursements; and
(3) other expenses.
(b) The report required by Subsection (a) must be in the
form and reported in the time provided by the General
Appropriations Act.
Sec. 469.057. REVIEW BY COMPTROLLER. (a) The comptroller
shall review the management and operations of state casino gaming.
The comptroller may examine books, records, documents, things, or
persons as necessary for that purpose.
(b) The comptroller shall report annually the results of the
review to:
(1) the governor;
(2) the lieutenant governor; and
(3) the speaker of the house of representatives.
Sec. 469.058. AUDITS. (a) The executive director shall
provide for a certified public accountant to conduct each fiscal
year an independent audit of all accounts and transactions of a
state casino and state casino gaming. Not later than the 30th day
after the submission date for the annual financial report required
by the General Appropriations Act, the certified public accountant
shall present an audit report to:
(1) the executive director;
(2) the commission;
(3) the governor;
(4) the comptroller; and
(5) the legislature.
(b) The report must contain recommendations to enhance the
earnings capability of a state casino and improve the efficiency of
the commission's operations.
(c) The state auditor may review the results of and working
papers related to the audit.
(d) A casino operator's or casino employee's records are
subject to audit by the commission and the state auditor.
(e) In carrying out this section, the executive director or
state auditor may:
(1) examine all books, records, papers, or other
objects the executive director or state auditor determines
necessary for conducting a complete audit; and
(2) examine under oath a casino operator or casino
employee.
(f) The executive director or state auditor may conduct an
examination as provided by Subsection (e) at a state casino or may
require the casino operator or casino employee to produce the
records at the office of the commission or state auditor.
(g) Section 321.013(h) does not apply to an audit of a
casino operator or casino employee.
Sec. 469.059. CONFIDENTIAL INFORMATION. (a) Except as
otherwise provided by this chapter or other law, all commission
records are subject to public inspection in accordance with Chapter
552.
(b) In addition to commission records excepted from
disclosure under Chapter 552, security plans and procedures of the
commission designed to ensure the integrity and security of state
casino gaming are confidential and exempt from public disclosure.
Sec. 469.060. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a)
Except as otherwise provided by this chapter, all information and
reviews or analyses of information and related matters collected,
retained, or compiled by the Department of Public Safety in the
discharge of its duties under this chapter are confidential and
exempt from public disclosure.
(b) An investigation report or other document submitted by
the Department of Public Safety to the commission becomes part of
the investigative files of the commission.
[Sections 469.061-469.100 reserved for expansion]
SUBCHAPTER C. ENFORCEMENT; ENFORCEMENT DIVISION
Sec. 469.101. INVESTIGATIONS. The attorney general, the
district attorney for Travis County, the district attorney for
Harris County, or the district attorney, criminal district
attorney, or county attorney performing the duties of district
attorney for the county in which a violation or alleged violation
occurs may investigate a violation or alleged violation of this
chapter or of the Penal Code by:
(1) the commission or its employees;
(2) a casino employee;
(3) a casino vendor or its personnel; or
(4) a casino operator.
Sec. 469.102. ENFORCEMENT. (a) The executive director or
designated commission personnel may investigate a violation of this
chapter or the rules adopted under this chapter.
(b) After conducting an investigation, the executive
director, a person designated by the commission, or any law
enforcement agency may file a complaint with the district attorney
for Travis County, the district attorney for Harris County, or the
district attorney, criminal district attorney, or county attorney
performing the duties of district attorney for the county in which a
violation is alleged to have occurred.
Sec. 469.103. ENFORCEMENT DIVISION; DIRECTOR. (a) The
executive director shall appoint an enforcement director to
administer the enforcement division.
(b) The enforcement director must be qualified by training
and experience in law enforcement or security to supervise, direct,
and administer the activities of the enforcement division.
Sec. 469.104. GAMING ENFORCEMENT OFFICERS AND
INVESTIGATORS. (a) The executive director shall employ the state
gaming enforcement officers and investigators the executive
director considers necessary and shall commission state gaming
enforcement officers and investigators as peace officers.
(b) The enforcement director and all enforcement officers
and investigators employed as peace officers must meet the
requirements of Chapter 1701, Occupations Code, for employment and
commission as peace officers.
Sec. 469.105. SEIZURE OF CASINO GAME OR EQUIPMENT. An
enforcement officer or investigator employed by the enforcement
division or a peace officer who is working in conjunction with the
commission or the Department of Public Safety to enforce this
chapter, without a search warrant, may search and seize a casino
game or other casino equipment, including a slot machine or video
casino machine, located in a state casino.
Sec. 469.106. CRIMINAL BACKGROUND INVESTIGATION. (a) The
Department of Public Safety, at the commission's request, shall
perform a full criminal background investigation of a prospective
enforcement officer or investigator of the enforcement division.
(b) The commission shall reimburse the Department of Public
Safety for the actual costs of an investigation.
Sec. 469.107. INDEPENDENT SECURITY STUDY. (a) At least
once every two years, the executive director shall employ an
independent firm experienced in security, including computer and
systems security, to conduct a comprehensive study of all aspects
of state casino gaming security, including:
(1) commission personnel security;
(2) casino employee security;
(3) casino operator and casino vendor security;
(4) security against fraudulent gambling or cheating;
(5) casino computer, data communications, database,
and systems security;
(6) casino premises and storage security;
(7) security of validation and payment procedures;
(8) security involving unclaimed prizes;
(9) security of each casino game; and
(10) other security aspects of state casino gaming.
(b) The executive director shall provide the commission
with a complete report of the security study conducted under
Subsection (a).
(c) The commission shall provide the governor and the
legislature, before each regular session of the legislature, with a
summary of the security study conducted under Subsection (a) that
includes an overall evaluation of the security of state casino
gaming.
[Sections 469.108-469.150 reserved for expansion]
SUBCHAPTER D. PROCUREMENT; ADVERTISING
Sec. 469.151. PROCUREMENT PROCEDURES. (a) The executive
director may establish procedures for the purchase or lease of
facilities, goods, and services and make any purchases, leases, or
contracts necessary for carrying out the purposes of this chapter,
including the construction or closure of a state casino. The
procedures must, as determined appropriate by the executive
director, promote competition to the maximum extent possible.
(b) In all procurement decisions, the executive director
shall:
(1) take into account the sensitive nature of state
casino gaming; and
(2) act to promote and ensure integrity, security,
honesty, and fairness in the construction, operation,
administration, production of revenue, and closure of a state
casino.
Sec. 469.152. PROTEST OF PROCUREMENT PROCEDURES. (a) The
procurement procedures adopted by the executive director under
Section 469.151 must, as determined appropriate by the executive
director, afford a party aggrieved by the terms of a solicitation or
the award of a contract an opportunity to protest the executive
director's action to the commission.
(b) The protest procedures must provide for an expedient
resolution of the protest in order to avoid substantially delaying
a solicitation or contract award necessary for the timely
implementation of a state casino or casino game.
(c) A protest under this section must be in writing and be
filed with the commission as provided by the protest procedures.
Sec. 469.153. JUDICIAL REVIEW. (a) A party aggrieved by
the commission's resolution of a protest under Section 469.152 may
file an action in a district court in Travis County. The court
shall give preference to hearings and trials of actions under this
section.
(b) A party filing an action under this section to enjoin
the implementation of a solicitation or contract shall post a bond
payable to the commission, if the party does not prevail in the
appeal, in an amount sufficient to compensate the commission for
the estimated revenue lost due to the delay of that aspect of state
casino gaming.
Sec. 469.154. COMPETITIVE BIDDING. The commission shall
require any person seeking to contract for goods or services
relating to the implementation and administration of this chapter
to submit to competitive bidding procedures under rules adopted by
the commission to ensure fairness and integrity.
Sec. 469.155. LIQUIDATED DAMAGES; PERFORMANCE BOND. A
contract for the acquisition or provision of facilities, goods, or
services related to state casino gaming must provide for liquidated
damages and a performance bond in an amount equal to the executive
director's best estimate of the revenue lost if the contractor
fails to meet deadlines specified in the contract.
Sec. 469.156. PROHIBITED CONTRACTS. The executive director
may not award a contract for the purchase or lease of facilities,
goods, or services related to state casino gaming to a person who
would be denied a license as a casino employee under Section
469.206.
Sec. 469.157. ASSISTANCE OF TEXAS BUILDING AND PROCUREMENT
COMMISSION. On request of the executive director, the Texas
Building and Procurement Commission shall assist the executive
director in:
(1) acquiring facilities, goods, or services under
Subtitle D, Title 10; or
(2) establishing procedures for the executive
director's accelerated acquisition of facilities, goods, or
services related to state casino gaming.
Sec. 469.158. APPLICABILITY OF OTHER LAW. (a) A contract
for the acquisition or provision of facilities, goods, or services
related to state casino gaming is not subject to:
(1) Chapter 2054 or 2254; or
(2) Subtitle D, Title 10.
(b) Notwithstanding the provisions of Title 2, Utilities
Code, the commission may:
(1) negotiate rates and execute contracts with
telecommunications service providers for the interexchange
services necessary for state casino gaming; and
(2) acquire transmission facilities on a competitive
bid basis, if possible, by lease, purchase, or lease-purchase.
Sec. 469.159. PREFERENCE FOR TEXAS BUSINESSES. (a) In all
contracts for casino equipment, supplies, and services, including
advertising, the commission shall give preference to equipment or
supplies produced in this state or services offered by bidders from
this state if the cost to the state and quality are equal.
(b) If equipment or supplies produced in this state or
services offered by a bidder from this state are not equal in cost
and quality, then equipment or supplies produced in another state
or services offered by a bidder from another state shall be given
preference over foreign equipment, supplies, or services.
Sec. 469.160. MINORITY BUSINESSES. (a) In this section:
(1) "Minority business" means a business entity at
least 51 percent of which is owned by minority group members or, in
the case of a corporation, at least 51 percent of the shares of
which are owned by minority group members, and that:
(A) is managed and, in daily operations,
controlled by minority group members; and
(B) is a domestic business entity with a home or
branch office located in this state and is not a branch or
subsidiary of a foreign corporation, firm, or other business
entity.
(2) "Minority group members" include:
(A) African Americans;
(B) American Indians;
(C) Asian Americans; and
(D) Mexican Americans and other Americans of
Hispanic origin.
(b) The executive director and a casino operator shall take
steps to:
(1) inform minority businesses of opportunities to:
(A) provide casino equipment and supplies to the
commission; or
(B) provide services, including advertising, to
the commission for the operation of a state casino;
(2) award contracts for casino equipment or supplies
to minority businesses when possible;
(3) award contracts for casino services, including
advertising, to minority businesses when possible;
(4) monitor the effectiveness of the efforts to
increase the ability of minority businesses to do business with the
commission; and
(5) require all bidders or contractors, when
appropriate, to include specific plans or arrangements to use
subcontracts with minority businesses.
(c) The commission shall annually report to the legislature
and the governor on the level of minority business participation as
pertains to the commission's contracts. The report must include
recommendations for the improvement of minority business
opportunities in casino-related business.
Sec. 469.161. PUBLICITY OF INDIVIDUALS PROHIBITED. (a) A
state officer, including a commission member, or the executive
director or other employee of the commission may not appear in an
advertisement or promotion for state casino gaming that is
sponsored by the commission.
(b) An advertisement or promotion for state casino gaming
may not contain the likeness or name of a state officer, including a
commission member, or of the executive director or other employee
of the commission.
(c) The executive director may designate an employee of the
commission to participate in a promotional event.
Sec. 469.162. PROHIBITED ADVERTISEMENTS. Advertisements
or promotions sponsored by the commission for state casino gaming
may not be specifically designed to unduly influence a person to
visit a state casino.
[Sections 469.163-469.200 reserved for expansion]
SUBCHAPTER E. LICENSING OF CASINO EMPLOYEES
Sec. 469.201. LICENSE REQUIRED. (a) An individual must
hold a casino employee license to be employed by the commission in a
position listed in Section 469.053(e).
(b) The executive director may establish a temporary or
provisional license or other classes of licenses necessary in
emergencies to regulate and administer the quantity and type of
casino games provided at a state casino.
(c) The executive director may license as a casino employee
an individual the executive director believes will best serve the
public. A casino employee license may not be transferred or
assigned to another person.
(d) The executive director may issue a casino employee
license to an individual only if the director finds the
individual's experience, character, and general fitness to be such
that the individual's participation as a casino employee will not
detract from the integrity, security, honesty, and fairness of
state casino gaming.
Sec. 469.202. LICENSE APPLICATION. (a) An applicant for a
casino employee license must:
(1) apply to the enforcement division under rules
adopted by the commission;
(2) provide information necessary to determine the
applicant's eligibility for a license as provided by Section
469.206; and
(3) provide other information considered necessary by
the commission.
(b) The applicant must include an application fee with each
application.
(c) Applications for licenses must be available for public
inspection during regular office hours.
(d) A fee collected under this section shall be deposited in
the state treasury to the credit of the state casino account.
Sec. 469.203. APPLICATION FEE. (a) The executive
director shall set the application fee required by Section 469.202
in an amount at least sufficient to cover the costs incurred by the
enforcement division and by the Department of Public Safety to
process the application.
(b) The executive director shall determine from information
provided by the department the amount required for costs incurred
by the department and shall allocate those amounts to the
department at least monthly.
(c) If the executive director denies an application for a
license based on a factor listed in Section 469.205, the executive
director shall refund one-half of the application fee to the
applicant.
(d) If the executive director denies an application based on
another factor, the executive director may not refund any part of
the application fee.
Sec. 469.204. CHANGE IN APPLICATION INFORMATION. A casino
employee license applicant or casino employee shall notify the
executive director of any change in the information in the
applicant's or casino employee's most recent application for a
license or renewal of a license not later than the 10th day after
the date of the change.
Sec. 469.205. RULES. The commission shall adopt rules
requiring the executive director, before issuing a casino employee
license to an applicant, to consider:
(1) the financial responsibility and security of the
applicant;
(2) the sufficiency of existing casino employees to
serve the public convenience; and
(3) any other factor the executive director considers
appropriate.
Sec. 469.206. DENIAL OF APPLICATION OR SUSPENSION OR
REVOCATION OF LICENSE. (a) After a hearing, the executive director
shall deny an application for a casino employee license or the
commission shall suspend or revoke a license if the executive
director or commission, as applicable, finds the applicant or
casino employee:
(1) is an individual who:
(A) has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor
involving moral turpitude, if less than 10 years have elapsed since
the termination of the sentence, parole, mandatory supervision, or
probation served for the offense;
(B) is or has been a professional gambler;
(C) is married to an individual:
(i) described by Paragraph (A) or (B); or
(ii) who is currently delinquent in the
payment of any state tax;
(D) is an officer or employee of the commission;
or
(E) is a spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
place of residence of a person described by Paragraph (D);
(2) is currently delinquent in the payment of any
state tax; or
(3) has violated this chapter or a rule adopted under
this chapter.
(b) The executive director shall give an applicant or casino
employee written notice of a denial of an application or a
suspension or revocation of a license.
(c) The executive director may not issue a license to a
person who previously had any license under this chapter revoked
unless the executive director is satisfied the person will comply
with this chapter and the rules adopted under this chapter.
(d) The executive director may prescribe the terms under
which a suspended license will be reissued.
Sec. 469.207. HEARING FOR PROPOSED DENIAL OF APPLICATION OR
SUSPENSION OR REVOCATION OF LICENSE. (a) If the executive director
proposes to deny an application for a casino employee license or the
commission proposes to suspend or revoke a casino employee license
under Section 469.206, the applicant or casino employee is entitled
to written notice of the time and place of the hearing.
(b) The notice may be served on an applicant or casino
employee personally or sent by certified or registered mail, return
receipt requested, to the person's mailing address as it appears in
the commission's records. A notice must be served or mailed not
later than the 20th day before the date of the hearing.
(c) The commission shall provide for a formal
administrative hearings process for a hearing required by this
section.
(d) To prevail at a hearing, the applicant or casino
employee must show by a preponderance of the evidence why the
application should not be denied or the license suspended or
revoked.
Sec. 469.208. BOND; INSURANCE. (a) Each casino employee
shall post a cash bond, surety bond, letter of credit, certificate
of deposit, or other security approved by the executive director,
including the contribution of cash to a pooled bond fund
established by the executive director to protect state casino
gaming from possible losses.
(b) The amount of the security required by Subsection (a)
shall be determined by the executive director and must
proportionately reflect the possible losses to state casino gaming
from the duties of the casino employee.
(c) The executive director may also require a casino
employee to maintain insurance if necessary to protect the
interests of the state.
Sec. 469.209. POSSESSION OF LICENSE. As prescribed by
rule, a casino employee shall have in the person's immediate
possession the person's casino license at all times when the
employee is in a state casino.
Sec. 469.210. EXPIRATION OF LICENSE; RENEWAL. (a) Unless
suspended or revoked, a casino employee license expires on the date
specified in the license, which may not be later than the second
anniversary of its date of issuance.
(b) The commission shall adopt rules for the renewal of a
license issued under this chapter. The director shall set a renewal
fee in an amount at least sufficient to cover the cost of processing
the renewal.
(c) To renew a casino employee license, a casino employee
must file a renewal application and pay the renewal fee before the
casino employee's license expires or within any subsequent grace
period established by the commission.
Sec. 469.211. INTERRUPTION OF EMPLOYMENT OR BANKRUPTCY OF
CASINO EMPLOYEE. Notwithstanding Section 469.210, a casino
employee license issued under this chapter expires:
(1) on the 180th day following the last day of the
license holder's employment by a state casino or the commission; or
(2) on the day the license holder files for
bankruptcy.
[Sections 469.212-469.250 reserved for expansion]
SUBCHAPTER F. CRIMINAL HISTORY INVESTIGATIONS
Sec. 469.251. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION. (a) The commission is entitled to conduct an
investigation of, and is entitled to obtain criminal history record
information maintained by the Department of Public Safety, the
Federal Bureau of Investigation Identification Division, or
another law enforcement agency to assist in the investigation of:
(1) a casino employee or an applicant for a casino
employee license;
(2) a person required to be named in a license
application;
(3) a casino operator or prospective casino operator;
(4) a person, or a representative of the person, who
manufactures or distributes casino equipment or supplies offered to
the commission;
(5) a person who has submitted a written bid or
proposal to the commission in connection with the procurement of
goods or services by the commission, if the amount of the bid or
proposal exceeds $500;
(6) a person who proposes to enter into or who has a
contract with the commission to supply goods or services to the
commission; or
(7) if a person described in Subdivisions (4) through
(6) is not an individual, an individual who:
(A) is an officer or director of the person;
(B) holds more than 10 percent of the stock in the
person;
(C) holds an equitable interest greater than 10
percent in the person;
(D) is a creditor of the person who holds more
than 10 percent of the person's outstanding debt;
(E) is the owner or lessee of a business that the
person conducts or through which the person will conduct
casino-related activities;
(F) shares or will share in the profits, other
than stock dividends, of the person;
(G) participates in managing the affairs of the
person; or
(H) is an employee of the person who:
(i) enters or will enter a state casino to
perform a business function; or
(ii) is or will be in close proximity to or
exercises or will exercise control of state casino gaming money.
(b) The commission shall conduct an investigation of and
obtain criminal history record information maintained by the
Department of Public Safety, the Federal Bureau of Investigation
Identification Division, or another law enforcement agency to
assist in the investigation of:
(1) the executive director or a prospective executive
director; or
(2) an employee or prospective employee of the
commission.
(c) Not later than the first anniversary after the date of
renewal, the commission shall obtain criminal history record
information maintained by the Department of Public Safety on a
casino employee whose license is renewed.
Sec. 469.252. FINGERPRINTS. (a) The executive director
may:
(1) discharge from employment a commission employee
who fails to provide a complete legible set of fingerprints on
request; or
(2) refuse to consider a prospective commission
employee who fails to provide a complete legible set of
fingerprints on request.
(b) The executive director may deny an application for a
license or the commission may suspend or revoke a license if the
applicant or license holder fails on request to provide a complete
legible set of fingerprints of a person required to be named in a
license application.
Sec. 469.253. DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS
OF INVESTIGATION. (a) The executive director may request the
cooperation of the Department of Public Safety to perform a
background investigation of a person listed in Section 469.251(a)
or (b). The executive director shall reimburse the department for
the actual cost of an investigation.
(b) The executive director may require a person who is
subject to investigation to pay all costs of the investigation and
to provide any information, including fingerprints, necessary to
carry out the investigation or facilitate access to state or
federal criminal history record information.
(c) Payments made to the executive director under
Subsection (b) shall be deposited in the general revenue fund and
may be used to reimburse the Department of Public Safety for the
actual costs of an investigation.
(d) Unless otherwise prohibited by law, the Department of
Public Safety may retain any record or information submitted to it
under this section. The department shall notify the executive
director of any change in information provided to the executive
director when the department learns of the change.
Sec. 469.254. ACCESS TO INTERNAL REVENUE SERVICE
INFORMATION. The executive director may obtain information
relating to a person's qualification for licensing, employment, or
contracting under this chapter from the Internal Revenue Service
under a contract between the comptroller and the Internal Revenue
Service on:
(1) a casino employee or an applicant for a casino
employee license;
(2) an employee or prospective employee of the
commission;
(3) a person required to be named in a license
application;
(4) a casino operator or prospective casino operator;
(5) a person, or the person's representative, who
manufactures or distributes casino equipment or supplies offered to
the casino;
(6) a person who has submitted a written bid or
proposal to the commission in connection with the procurement of
goods or services by the commission; or
(7) a person who proposes to enter into or who has a
contract with the commission to supply goods or services to the
commission.
Sec. 469.255. CONFIDENTIAL INFORMATION. (a) All
information received by the executive director from the Internal
Revenue Service is confidential and may only be used as provided by
the contract between the comptroller and the Internal Revenue
Service under which the information was obtained.
(b) The commission shall adopt rules governing the custody
and use of criminal history record information obtained under this
subchapter.
(c) The comptroller shall adopt rules governing the custody
and use of information obtained from the Internal Revenue Service
under this subchapter.
[Sections 469.256-469.300 reserved for expansion]
SUBCHAPTER G. REGULATION OF CASINO GAMES
Sec. 469.301. GAMES. (a) The executive director shall
prescribe the form of casino games subject to adoption by the
commission.
(b) The toll-free "800" telephone number established by the
Texas Commission on Alcohol and Drug Abuse under Section 461.018,
Health and Safety Code, must be affixed to each casino game or be
displayed in the plain view of a casino player of the casino game.
(c) The overall estimated odds of and amount of probable
winnings of a particular casino game must be printed on each casino
game or be displayed in the plain view of a casino player of the
casino game and be prominently displayed at each entrance to a state
casino. The estimate must be based on reasonable projections and
past experience.
Sec. 469.302. AGREEMENT TO ABIDE BY RULES. (a) By entering
a state casino, an individual agrees to abide by and be bound by the
commission's rules, including the rules applicable to any casino
game played. A casino player acknowledges that the determination
of whether the casino player is a valid winner is subject to:
(1) the commission's rules and claims procedures,
including those developed for the particular casino game involved;
and
(2) any validation tests established by the commission
for the particular casino game involved.
(b) A state casino must have available the rules or a
reference to the rules applicable to a particular casino game at
that casino.
Sec. 469.303. GAMBLING BY OR PAYMENT OF WINNINGS TO CERTAIN
PERSONS. An individual may not gamble or claim, collect, or receive
winnings or a share of winnings from a state casino if the
individual is:
(1) a member, officer, or employee of a person that has
contracted with the commission to sell or lease goods or services
used in the casino;
(2) a casino employee or casino operator;
(3) an officer or employee of the commission; or
(4) a spouse, child, brother, sister, or parent
residing as a member of the same household in the principal place of
residence of a person described by Subdivision (1), (2), or (3).
Sec. 469.304. REPRESENTATION BY PERSON CLAIMING CASINO
WINNINGS. A person claiming or attempting to claim winnings from a
state casino represents that the ticket or other item entitling the
person to the winnings:
(1) was lawfully obtained;
(2) is not stolen, forged, or altered; and
(3) has not previously been redeemed.
[Sections 469.305-469.350 reserved for expansion]
SUBCHAPTER H. OFFENSES
Sec. 469.351. VENUE. Venue is proper in Travis County or
any county in which venue is proper under Chapter 13, Code of
Criminal Procedure, for:
(1) an offense under this chapter;
(2) an offense under the Penal Code, if the accused:
(A) is a casino operator, casino vendor, casino
employee, or a commission enforcement officer or investigator; and
(B) is alleged to have committed the offense
while engaged in any aspect of casino gaming; or
(3) an offense that involves property associated with
state casino gaming under Title 7 or 11, Penal Code.
Sec. 469.352. AGGREGATION OF AMOUNTS INVOLVED. When
amounts are claimed, attempted to be claimed, or obtained in
violation of this chapter pursuant to one scheme or a continuing
course of conduct, whether from the same or several sources, the
conduct may be considered as one offense and the amounts aggregated
in determining the classification or degree of the offense.
Sec. 469.353. ATTEMPT BY UNLICENSED PERSON. (a) A person
who is not a casino employee commits an offense if the person
knowingly attempts to work at a state casino in a position listed in
Section 469.053(e).
(b) An offense under this section is a felony of the third
degree.
Sec. 469.354. LENDING TO FURTHER GAMBLING. (a) A person
commits an offense if the person knowingly gives money to another
person by extending credit or lending money to the person to enable
the person to play a casino game at a state casino.
(b) An offense under this section is a Class C misdemeanor.
Sec. 469.355. GAMBLING BY PERSON YOUNGER THAN 21 YEARS. (a)
A casino employee commits an offense if the person recklessly
allows or attempts to allow a person younger than 21 years of age to
play a casino game at a state casino.
(b) An offense under this section is a Class C misdemeanor.
Sec. 469.356. CHEATING AT CASINO GAME. (a) In this
section, "claim" includes an attempt to claim, without regard to
whether the attempt is successful.
(b) A person commits an offense if the person wins, attempts
to win, reduces a losing wager, or attempts to reduce a losing wager
in connection with a casino game at a state casino by trick, sleight
of hand performance, fraud or fraudulent scheme, or unauthorized
device.
(c) A person commits an offense if the person uses, or
assists another in the use of, an electronic, electrical, or
mechanical device that is designed, constructed, or programmed to
obtain an advantage at gambling at any casino game conducted at a
state casino. A device used by any person in violation of this
section is subject to forfeiture as provided by commission rule.
(d) A person commits an offense if the person knowingly uses
chips not obtained from the state casino to play a casino game at a
state casino.
(e) A person commits an offense if the person knowingly uses
an object other than legal tender of the United States or an item
approved by the commission to play a slot machine or video casino
machine at a state casino.
(f) A person commits an offense if the person knowingly uses
legal tender of the United States or an item approved by the
commission in a slot machine or video casino machine at a state
casino that is not the same denomination as legal tender or an item
intended by the commission to be used in the slot machine or video
casino machine.
(g) A person commits an offense if the person knowingly
possesses or uses any cheating or thieving device, including tools,
drills, wires, coins or tokens attached to strings or wires, or
electronic or magnetic devices, to:
(1) facilitate the alignment of any winning
combination in a slot machine or video casino machine at a state
casino; or
(2) remove from any slot machine or video casino
machine at a state casino any money or other contents of the
machine.
(h) It is a defense to prosecution under Subsection (g) that
a casino employee or a commission enforcement officer or
investigator performs the conduct solely within the scope of the
person's employment.
(i) An offense under this section is a Class A misdemeanor
unless it is shown on the trial of the offense that:
(1) the offense was committed in an attempt to obtain
at least $200 but not more than $10,000, in which event the offense
is a felony of the third degree;
(2) the offense was committed in an attempt to obtain
at least $10,000, in which event the offense is a felony of the
second degree; or
(3) the person has previously been convicted of an
offense under this section, in which event the offense is a felony
of the third degree, unless the offense is designated as a felony of
the second degree under Subdivision (2).
Sec. 469.357. TAMPERING WITH CASINO EQUIPMENT. (a) A
person commits an offense if the person knowingly tampers with,
damages, defaces, or renders inoperable any slot machine, video
casino machine, or other equipment used to conduct or offer a casino
game at a state casino.
(b) An offense under this section is a Class B misdemeanor.
Sec. 469.358. REPORTING AND RECORD VIOLATIONS. (a) A
person commits an offense if the person, in a license application, a
book or record required to be maintained by this chapter or a rule
adopted under this chapter, or a report required to be submitted by
this chapter or a rule adopted under this chapter:
(1) makes a statement or entry the person knows to be
false or misleading; or
(2) fails to maintain or make an entry the person knows
is required to be maintained or made.
(b) A person commits an offense if the person knowingly
refuses to produce for inspection by the enforcement director,
executive director, commission, or state auditor a book, record, or
document required to be maintained or made by this chapter or a rule
adopted under this chapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 469.359. FALSE, INCORRECT, OR DECEPTIVE STATEMENT.
(a) In this section, "statement" includes a written or oral
statement and a sworn or unsworn statement.
(b) A person commits an offense if the person knowingly
makes a material and false, incorrect, or deceptive statement to a
person conducting an investigation or exercising discretion under
this chapter or a rule adopted under this chapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 469.360. CONSPIRACY. (a) A person commits an offense
of conspiracy if, with intent that an offense under this chapter be
committed:
(1) the person agrees with one or more other persons
that the person or one or more of the persons engage in conduct that
would constitute the offense; and
(2) one or more of the persons agreeing under
Subdivision (1) performs an overt act in pursuance of the
agreement.
(b) An agreement constituting a conspiracy may be inferred
from acts of the parties.
(c) It is not a defense to prosecution for conspiracy under
this section that:
(1) one or more of the coconspirators is not
criminally responsible for the object offense;
(2) one or more of the coconspirators has been
acquitted, so long as at least two coconspirators have not been
acquitted;
(3) one or more of the coconspirators has not been
prosecuted or convicted, has been convicted of a different offense,
or is immune from prosecution;
(4) the actor belongs to a class of persons that by
definition of the object offense is legally incapable of committing
the object offense in an individual capacity; or
(5) the object offense was not actually committed.
(d) An offense under this section is one category lower than
the most serious offense under this chapter that is the object of
the conspiracy, and if the most serious offense under this chapter
that is the object of the conspiracy is a felony of the third
degree, the offense is a Class A misdemeanor.
[Sections 469.361-469.400 reserved for expansion]
SUBCHAPTER I. REVENUE
Sec. 469.401. DELIVERY OF FUNDS. (a) All revenue received
from state casino gaming and all money credited to the state casino
account from any other source shall be deposited in the state
treasury through approved state depositories on the settlement day
or days established by the executive director.
(b) The executive director shall require a casino operator
to establish separate electronic funds transfer accounts for the
purposes of depositing proceeds from a state casino, making
payments to the operations division, and receiving payments from
the operations division.
(c) The commission by rule shall establish the procedures
for depositing proceeds from casino gaming into electronic funds
transfer accounts, as well as other procedures regarding the
handling of money from state casino gaming.
Sec. 469.402. REPORTING BY CASINO EMPLOYEE; RECORDS. (a)
The operations director shall require a casino operator to file
with the operations division reports of receipts and transactions
relating to state casino gaming in the form and containing the
information the operations director requires.
(b) A casino operator shall maintain records for each
gambling period as determined by commission rule of each day that
adequately establish the disposition of:
(1) the gambling period;
(2) the amounts of wagers and other money received
from the gambling period; and
(3) winnings awarded by casino employees.
Sec. 469.403. LIABILITY OF CASINO EMPLOYEE. Money received
by a casino employee from wagers placed, less the amount awarded for
winnings by a casino employee, shall be held in trust for the
benefit of the operations division before delivery to a casino
operator or the casino operator's designee, and the casino operator
is personally liable to the operations division for the full amount
of the money.
Sec. 469.404. DUTIES OF COMPTROLLER. (a) The comptroller,
in consultation with the operations director, shall establish
procedures for the efficient implementation and operation of an
electronic funds transfer system to meet the needs of the
operations director under this chapter.
(b) The comptroller periodically shall file reports with
the executive director providing information regarding:
(1) the revenue credited to the state casino account;
(2) the investments of the money in the account; and
(3) the distributions made from the account.
Sec. 469.405. STATE CASINO ACCOUNT. (a) The state casino
account is a special account in the general revenue fund consisting
of:
(1) all revenue received from state casino gaming;
(2) license and application fees received under this
chapter; and
(3) all money credited to the account from any other
fund or source under law.
(b) Interest earned by the state casino account shall be
deposited in the unobligated portion of the general revenue fund.
(c) Money in the state casino account may be used only for
the following purposes and shall be distributed as follows:
(1) the payment of winnings to casino game players at
state casinos;
(2) the payment of costs incurred in state casino
gaming;
(3) the establishment of a casino prize reserve fund,
unclaimed winnings fund, winnings payment account, or other reserve
account established by the commission to administer this chapter;
and
(4) the balance, after creation of a reserve
sufficient to pay the amounts needed or estimated to be needed under
Subdivisions (1) through (3), to be transferred, on or before the
15th day of each month, to the foundation school fund.
Sec. 469.406. APPLICABILITY OF CONSTITUTIONAL PROVISIONS.
For purposes of Section 49a, Article III, and Section 22, Article
VIII, Texas Constitution:
(1) funds received from state casino gaming are not
revenue; and
(2) expenses of state casino gaming, including paying
winnings, are not expenses of state government.
Sec. 469.407. COMPENSATION OF CASINO EMPLOYEES. The
executive director in consultation with the casino operators shall
determine the compensation to be paid to casino employees.
[Sections 469.408-469.450 reserved for expansion]
SUBCHAPTER J. WINNINGS
Sec. 469.451. SUPERVISION BY ENFORCEMENT DIVISION. The
enforcement division shall supervise state casino gaming and
transfers of state casino gaming revenue.
Sec. 469.452. PAYMENT OF WINNINGS GENERALLY. (a) The
executive director may authorize winnings to be drawn on the state
casino account.
(b) The state is discharged of all further liability on the
payment of winnings under Section 469.453 or 469.454 or this
section or under any additional procedures established by rule.
Sec. 469.453. RIGHT TO WINNINGS NOT ASSIGNABLE. (a) Except
as provided by this section, the right of any person to winnings is
not assignable.
(b) Payment of winnings may be made to the estate of a
deceased casino player entitled to the winnings.
(c) Winnings to which a casino player is otherwise entitled
may be paid to any person under an appropriate judicial order.
Sec. 469.454. UNCLAIMED WINNINGS. (a) The operations
division shall retain unclaimed winnings for payment or delivery to
the casino player entitled to the winnings for 180 days after the
date on which the casino player became entitled to the winnings.
(b) If a claim is not made for winnings on or before the
180th day after the date on which the casino player became entitled
to the winnings, the winnings shall be used to provide additional
money to the state casino account for the purposes prescribed by
Section 469.405(c)(1) or offered in a subsequent casino game.
(c) A casino player forfeits any claim or entitlement to
winnings after the expiration of the 180th day after the date on
which the casino player became entitled to the winnings.
Sec. 469.455. TREATMENT OF WINNINGS BY INELIGIBLE PERSON.
(a) An individual who plays a casino game at a state casino or who
claims or otherwise attempts to collect or receive winnings from a
state casino is not eligible to receive the winnings or a share of
the winnings if the individual is:
(1) listed in Section 469.303; or
(2) younger than 21 years of age.
(b) The winnings or share of the winnings otherwise payable
but not eligible for payment as provided by Subsection (a) are
treated as unclaimed winnings under Section 469.454.
CHAPTER 470. TEXAS CASINO COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 470.001. DEFINITIONS. In this chapter:
(1) "Casino operator" means a person employed under
Section 470.064.
(2) "Commission" means the Texas Casino Commission.
(3) "Executive director" means the executive director
of the Texas Casino Commission.
(4) "Communicate directly with" has the meaning
assigned by Section 305.002.
(5) "Gift" includes a gratuity, trip, meal, or any
thing of value for which the recipient does not compensate the
person making the gift and that is not conferred on account of
kinship or a personal, professional, or business relationship
independent of the official status of the recipient.
(6) "Legislation" has the meaning assigned by Section
305.002.
(7) "Member of the legislative branch" has the meaning
assigned by Section 305.002.
(8) "Participate" means to take action as an officer
or employee through decision, approval, disapproval,
recommendation, giving advice, or similar action.
(9) "Particular matter" includes an investigation,
application, request for a ruling or determination, license
proceeding, rulemaking, contract, controversy, claim, charge,
accusation, arrest, or judicial or other proceeding.
(10) "Person who has a significant financial interest
in state casino gaming" means:
(A) a person or a board member, officer, trustee,
or general partner of a person who manufactures, distributes,
sells, or produces casino equipment, supplies, or services,
including advertising, related to state casino gaming; or
(B) an employee directly involved in the
manufacturing, distribution, selling, or production of casino
equipment, supplies, or services, including advertising, of a
person who manufactures, distributes, sells, or produces casino
equipment, supplies, or services, including advertising, related
to state casino gaming.
(11) "Political committee" has the meaning assigned by
Section 251.001, Election Code.
(12) "Political contribution" has the meaning
assigned by Section 251.001, Election Code.
(13) "State casino gaming" has the meaning assigned by
Section 469.001.
Sec. 470.002. APPLICATION OF SUNSET ACT. The Texas Casino
Commission is subject to Chapter 325 (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the commission
is abolished and this chapter and Chapter 469 expire September 1,
2015.
Sec. 470.003. APPLICATION OF FINANCIAL DISCLOSURE
LAW. For purposes of Chapter 572, a member of the commission, the
executive director, and the division directors are appointed
officers of a major state agency.
[Sections 470.004-470.050 reserved for expansion]
SUBCHAPTER B. COMMISSION
Sec. 470.051. MEMBERSHIP. (a) The commission is composed
of three members appointed by the governor with the advice and
consent of the senate.
(b) In making appointments to the commission, the governor
shall strive to achieve representation by all the population groups
of the state with regard to economic status, sex, race, and
ethnicity.
Sec. 470.052. TERM OF OFFICE. Members hold office for
staggered terms of six years with one member's term expiring
February 1 of each odd-numbered year.
Sec. 470.053. RESIDENCE REQUIREMENT. An individual is not
eligible to be a member of the commission unless the individual has
been a resident of this state for the 10 years preceding the date of
appointment.
Sec. 470.054. ELIGIBILITY. (a) In this section, "Texas
trade association" means a nonprofit, cooperative, and voluntarily
joined association of business or professional competitors in this
state designed to assist its members and its industry or profession
in dealing with mutual business or professional problems and in
promoting their common interest.
(b) An individual is not eligible for appointment as a
member of the commission if the individual:
(1) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving funds from the commission;
(2) is employed by or participates in the management
of a business entity or other organization receiving funds from the
commission;
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses;
(4) is an officer, employee, or paid consultant of a
Texas trade association in the gaming industry;
(5) is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission;
(6) is married to an individual described by
Subdivisions (1) through (5);
(7) has been convicted of a felony or any crime
involving moral turpitude; or
(8) is not a citizen of the United States.
Sec. 470.055. PROHIBITED CONDUCT. (a) A commission member
may not:
(1) accept any employment or remuneration from:
(A) a person who has a significant financial
interest in a state casino; or
(B) a casino commercial lessor, casino
distributor, or casino manufacturer;
(2) play any casino game conducted in this state;
(3) accept or be entitled to accept any part of the
winnings paid from a casino game conducted in this state;
(4) use the member's official authority to affect the
result of an election or nomination for public office; or
(5) directly or indirectly, coerce, attempt to coerce,
command, or advise a person to pay, lend, or contribute any thing of
value to another person for political purposes.
(b) A commission member, former commission member, or the
spouse of a commission member or former commission member may not
solicit or accept employment from a person regulated by the
commission before the second anniversary of the date on which the
commission member's service on the commission ends.
Sec. 470.056. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the commission that a commission member:
(1) does not have at the time of appointment the
qualifications required for appointment to the commission;
(2) does not maintain during service on the commission
the qualifications required for appointment to the commission;
(3) violates a prohibition established by Section
470.055;
(4) cannot discharge the member's duties for a
substantial part of the term for which the member is appointed
because of illness or disability; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year unless the absence is excused by majority
vote of the commission.
(b) The validity of an action of the commission is not
affected by the fact that it is taken when a ground for removal of a
commission member exists.
(c) If the presiding officer has knowledge that a potential
ground for removal exists, the presiding officer shall notify the
governor.
Sec. 470.057. COMPENSATION AND EXPENSES. (a) A commission
member is not entitled to compensation for serving on the
commission.
(b) A commission member is entitled to reimbursement for
actual and necessary expenses incurred in performing the member's
duties, subject to any applicable limitation in the General
Appropriations Act.
Sec. 470.058. OFFICES. The commission shall maintain its
general office in the city of Austin. The commission may establish
branch offices.
Sec. 470.059. PRESIDING OFFICER. The governor shall
designate one member of the commission as presiding officer of the
commission to serve in that capacity at the will of the governor.
Sec. 470.060. MEETINGS. The commission shall hold at least
six regular meetings each year on dates fixed by the commission.
The commission may meet at other times at the call of the presiding
officer or as provided by commission rule.
Sec. 470.061. DIVISIONS. The commission shall establish:
(1) the division of state gaming enforcement to
enforce Chapter 469 and rules adopted by the commission; and
(2) the division of state gaming operations to conduct
state casino gaming, including facilitating enforcement by the
division of state gaming enforcement.
Sec. 470.062. EXECUTIVE DIRECTOR. (a) The commission
shall employ an executive director to administer this chapter and
the laws under the commission's jurisdiction.
(b) The executive director holds office at the will of the
commission and is exempted from Chapter 654.
Sec. 470.063. DIVISION DIRECTORS. (a) The executive
director shall employ an enforcement director to oversee the
division of state gaming enforcement.
(b) The executive director shall employ an operations
director to oversee the division of state gaming operations.
(c) A division director serves at the will of the executive
director and is exempted from Chapter 654.
Sec. 470.064. CASINO OPERATOR. (a) The executive director
shall employ one casino operator for each state casino to oversee
the operation of the state casino.
(b) A casino operator serves at the will of the executive
director and is exempted from Chapter 654.
Sec. 470.065. EMPLOYEES. The executive director shall
employ other personnel necessary to administer the laws under the
commission's jurisdiction.
Sec. 470.066. RESTRICTIONS ON EMPLOYMENT. (a) The
commission may not employ a person who owns a substantial financial
interest in a person who:
(1) leases property to the commission; or
(2) manufactures or distributes casino equipment or
supplies.
(b) The commission may not employ a person who is a spouse,
child, brother, sister, or parent residing as a member of the same
household in the principal place of residence of a person who is
subject to a disqualification prescribed by Subsection (a).
(c) In employing the executive director and other
employees, the commission shall strive to reflect the diversity of
the population of the state with regard to race, color, disability,
sex, religion, age, and national origin.
Sec. 470.067. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
governor shall conduct an investigation of and is entitled to
obtain criminal history record information maintained by the
Department of Public Safety, the Federal Bureau of Investigation
Identification Division, or another law enforcement agency
relating to an individual the governor intends to appoint to the
commission.
(b) The commission shall conduct an investigation of and is
entitled to obtain criminal history record information maintained
by the Department of Public Safety, the Federal Bureau of
Investigation Identification Division, or another law enforcement
agency relating to an individual the commission intends to employ.
[Sections 470.068-470.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 470.101. POWERS AND DUTIES OF COMMISSION. The
commission has the powers and duties provided under Chapter 469.
Sec. 470.102. RULES. The commission may adopt rules for the
enforcement and administration of this chapter and the laws under
the commission's jurisdiction.
Sec. 470.103. DUTIES OF EXECUTIVE DIRECTOR. (a) The
executive director shall perform all duties required by the
commission to administer this chapter and the laws under the
commission's jurisdiction.
(b) The executive director may not hold other employment.
(c) The executive director may create, abolish, transfer,
and consolidate divisions or other units within the commission that
are not expressly established by law as the executive director
determines necessary for the efficient operation of the commission.
Sec. 470.104. RECORDS. The executive director shall keep
the records of the commission.
Sec. 470.105. LEGAL REPRESENTATION. (a) The attorney
general shall:
(1) designate at least one member of the attorney
general's staff to advise the commission and to represent the
commission in legal proceedings; and
(2) make available to the appropriate prosecuting
attorneys any information obtained regarding a violation of a law
under the commission's jurisdiction.
(b) The attorney general may apply for injunctive or
declaratory relief to enforce a law under the commission's
jurisdiction or a rule adopted by the commission.
(c) Action by the attorney general under Subsection (b) does
not limit the authority of the attorney general or a prosecuting
attorney to bring a criminal proceeding.
Sec. 470.106. GIFT OR POLITICAL CONTRIBUTION TO OFFICER OR
EMPLOYEE. (a) A commission member, the executive director, or an
employee of the commission may not knowingly accept a gift or
political contribution from:
(1) a person who has a significant financial interest
in state casino gaming;
(2) a person related in the first degree of
consanguinity or affinity to a person who has a significant
financial interest in state casino gaming;
(3) a person who owns more than a 10 percent interest
in an entity that has a significant financial interest in state
casino gaming;
(4) a political committee directly established,
administered, or controlled, in whole or in part, by a person who
has a significant financial interest in state casino gaming; or
(5) a person who, within the two years preceding the
date of the gift or contribution, was entitled to state casino
winnings exceeding $5,000 in amount or value.
(b) A person may not knowingly make a gift or political
contribution to a commission member, the executive director, or an
employee of the commission, if the person:
(1) has a significant financial interest in state
casino gaming;
(2) is related in the first degree of consanguinity or
affinity to a person who has a significant financial interest in
state casino gaming;
(3) owns more than a 10 percent interest in an entity
that has a significant financial interest in state casino gaming;
(4) is a political committee directly established,
administered, or controlled, in whole or in part, by a person who
has a significant financial interest in state casino gaming; or
(5) within the two years preceding the date of the gift
or contribution, was entitled to state casino winnings exceeding
$5,000 in amount or value.
(c) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
Sec. 470.107. GIFT OR POLITICAL CONTRIBUTION TO FORMER
OFFICER OR EMPLOYEE. (a) Before the second anniversary of the date
a person's service in office or employment with the commission
ceases, a former commission member, former executive director, or
former employee of the commission may not accept a gift or political
contribution that the person knows is from:
(1) a person who has a significant financial interest
in state casino gaming;
(2) a person related in the first degree of
consanguinity or affinity to a person who has a significant
financial interest in state casino gaming;
(3) a person who owns more than a 10 percent interest
in an entity that has a significant financial interest in state
casino gaming;
(4) a political committee directly established,
administered, or controlled, in whole or in part, by a person who
has a significant financial interest in state casino gaming; or
(5) a person who, within the two years preceding the
date of the gift or contribution, was entitled to state casino
winnings exceeding $5,000 in amount or value.
(b) A person may not knowingly make a gift or political
contribution to a former commission member, former executive
director, or former employee of the commission if the person:
(1) has a significant financial interest in state
casino gaming;
(2) is related in the first degree of consanguinity or
affinity to a person who has a significant financial interest in
state casino gaming;
(3) owns more than a 10 percent interest in an entity
that has a significant financial interest in state casino gaming;
(4) is a political committee directly established,
administered, or controlled, in whole or in part, by a person who
has a significant financial interest in state casino gaming; or
(5) within the two years preceding the date of the gift
or contribution, was entitled to state casino winnings exceeding
$5,000 in amount or value.
(c) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
Sec. 470.108. REPRESENTATION BY FORMER OFFICER OR EMPLOYEE.
(a) A former commission member, former executive director, or
former director may not:
(1) represent any person or receive compensation for
services rendered on behalf of any person regarding a particular
matter in which the former officer or employee participated during
the period of service or employment with the commission, either
through personal involvement or because the matter was within the
scope of the officer's or employee's official responsibility; or
(2) for compensation communicate directly with a
member of the legislative branch to influence legislation on behalf
of a person who has a significant financial interest in state casino
gaming before the sixth anniversary of the date the person's
service in office or employment with the commission ceases.
(b) A person commits an offense if the person violates this
section. An offense under this section is a Class A misdemeanor.
SECTION 2. Section 47.02(c), Penal Code, is amended to read
as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1) was permitted under Chapter 2001, Occupations
Code;
(2) was permitted under Chapter 2002, Occupations
Code;
(3) consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
Government Code);
(4) consisted entirely of participation in state
casino gaming authorized by Chapter 469, Government Code;
(5) was permitted under the Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes); or
(6) [(5)] consisted entirely of participation in a
drawing for the opportunity to participate in a hunting, fishing,
or other recreational event conducted by the Parks and Wildlife
Department.
SECTION 3. Section 47.06(f), Penal Code, is amended to read
as follows:
(f) It is a defense to prosecution under Subsection (a) or
(c) that the person owned, manufactured, transferred, or possessed
the gambling device, equipment, or paraphernalia for the sole
purpose of shipping it:
(1) within this state to a location designated by the
State Lottery Commission for delivery to the commission; or
(2) to another jurisdiction where the possession or
use of the device, equipment, or paraphernalia was legal.
SECTION 4. Section 47.09(a), Penal Code, is amended 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]
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, 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;
(4) consisted entirely of participation in state
casino gaming authorized by Chapter 469, Government Code; or
(5) was a necessary incident to state casino gaming
and was directly or indirectly authorized by:
(A) Chapter 469, Government Code;
(B) the Texas Casino Commission; or
(C) the executive director of the Texas Casino
Commission.
SECTION 5. Subchapter F, Chapter 411, Government Code, is
amended by adding Section 411.1085 to read as follows:
Sec. 411.1085. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION: TEXAS CASINO COMMISSION. (a) The Texas Casino
Commission is entitled to obtain from the department criminal
history record information maintained by the department that
relates to a person who, under Chapter 469, is:
(1) a casino employee or an applicant for a casino
employee license;
(2) a person required to be named in a license
application;
(3) a casino operator or prospective casino operator;
(4) a person who manufactures or distributes casino
equipment or supplies or a representative of a person who
manufactures or distributes casino equipment or supplies offered to
the casino;
(5) a person who has submitted a written bid or
proposal to the commission in connection with the procurement of
goods or services by the commission, if the amount of the bid or
proposal exceeds $500;
(6) a person who proposes to enter into or who has a
contract with the commission to supply goods or services to the
commission;
(7) if a person described in Subdivisions (4) through
(6) is not an individual, each individual who:
(A) is an officer or director of the person;
(B) holds more than 10 percent of the stock in the
person;
(C) holds an equitable interest greater than 10
percent in the person;
(D) is a creditor of the person who holds more
than 10 percent of the person's outstanding debt;
(E) is the owner or lessee of a business through
which the person conducts or will conduct casino-related
activities;
(F) shares or will share in the profits, other
than stock dividends, of the person;
(G) participates in managing the affairs of the
person; or
(H) is an employee of the person who:
(i) enters or will enter a state casino to
perform a business function; or
(ii) is or will be in close proximity to
money from state casino gaming;
(8) an employee or prospective employee, including the
executive director or a prospective executive director, of the
commission; or
(9) a casino employee whose license is renewed under
Section 469.210.
(b) Criminal history record information obtained by the
commission under Subsection (a) may not be released or disclosed to
any person except on court order or as provided by Subsection (c).
(c) The commission is not prohibited from disclosing to the
person who is the subject of the criminal history record
information the dates and places of arrests, offenses, and
dispositions contained in the criminal history record information.
SECTION 6. Section 2054.007, Government Code, is amended to
read as follows:
Sec. 2054.007. EXCEPTIONS [EXCEPTION]: STATE LOTTERY AND
CASINO COMMISSION [OPERATIONS]. (a) The lottery division of the
Texas Lottery Commission and the Texas Casino Commission are [is]
not subject to the planning and procurement requirements of this
chapter.
(b) The electronic funds transfer system for the operation
of the state lottery or state casino gaming is not included in the
agency strategic plan or biennial operating plan of the
comptroller. Operations of the comptroller that relate to the state
lottery or casino gaming are not subject to the planning and
procurement requirements of this chapter.
SECTION 7. Article 2.12, Code of Criminal Procedure, is
amended to read as follows:
Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
officers:
(1) sheriffs, their deputies, and those reserve
deputies who hold a permanent peace officer license issued under
Chapter 1701, Occupations Code;
(2) constables, deputy constables, and those reserve
deputy constables who hold a permanent peace officer license issued
under Chapter 1701, Occupations Code;
(3) marshals or police officers of an incorporated
city, town, or village, and those reserve municipal peace officers
who hold a permanent peace officer license issued under Chapter
1701, Occupations Code;
(4) rangers and officers commissioned by the Public
Safety Commission and the Director of the Department of Public
Safety;
(5) investigators of the district attorneys', criminal
district attorneys', and county attorneys' offices;
(6) law enforcement agents of the Texas Alcoholic
Beverage Commission;
(7) each member of an arson investigating unit
commissioned by a city, a county, or the state;
(8) officers commissioned under Section 37.081,
Education Code, or Subchapter E, Chapter 51, Education Code;
(9) officers commissioned by the General Services
Commission;
(10) law enforcement officers commissioned by the
Parks and Wildlife Commission;
(11) airport police officers commissioned by a city
with a population of more than 1.18 million that operates an airport
that serves commercial air carriers;
(12) airport security personnel commissioned as peace
officers by the governing body of any political subdivision of this
state, other than a city described by Subdivision (11), that
operates an airport that serves commercial air carriers;
(13) municipal park and recreational patrolmen and
security officers;
(14) security officers and investigators commissioned
as peace officers by the comptroller;
(15) officers commissioned by a water control and
improvement district under Section 49.216, Water Code;
(16) officers commissioned by a board of trustees
under Chapter 54, Transportation Code;
(17) investigators commissioned by the Texas State
Board of Medical Examiners;
(18) officers commissioned by the board of managers of
the Dallas County Hospital District, the Tarrant County Hospital
District, or the Bexar County Hospital District under Section
281.057, Health and Safety Code;
(19) county park rangers commissioned under
Subchapter E, Chapter 351, Local Government Code;
(20) investigators employed by the Texas Racing
Commission;
(21) officers commissioned under Chapter 554,
Occupations Code;
(22) officers commissioned by the governing body of a
metropolitan rapid transit authority under Section 451.108,
Transportation Code, or by a regional transportation authority
under Section 452.110, Transportation Code;
(23) investigators commissioned by the attorney
general under Section 402.009, Government Code;
(24) security officers and investigators commissioned
as peace officers under Chapter 466, Government Code;
(25) an officer employed by the Texas Department of
Health under Section 431.2471, Health and Safety Code;
(26) officers appointed by an appellate court under
Subchapter F, Chapter 53, Government Code;
(27) officers commissioned by the state fire marshal
under Chapter 417, Government Code;
(28) an investigator commissioned by the commissioner
of insurance under Article 1.10D, Insurance Code;
(29) apprehension specialists commissioned by the
Texas Youth Commission as officers under Section 61.0931, Human
Resources Code;
(30) officers appointed by the executive director of
the Texas Department of Criminal Justice under Section 493.019,
Government Code;
(31) investigators commissioned by the Commission on
Law Enforcement Officer Standards and Education under Section
1701.160, Occupations Code;
(32) commission investigators commissioned by the
Texas Commission on Private Security under Section 1702.061(f),
Occupations Code; [and]
(33) the fire marshal, and any investigators
commissioned by an emergency services district to assist that fire
marshal, under Subchapter F, Chapter 775, Health and Safety Code;
and
(34) enforcement officers and investigators employed
by the division of state gaming enforcement of the Texas Casino
Commission.
SECTION 8. Section A, Article 2.05, Texas Business
Corporation Act, is amended to read as follows:
A. The Corporate name shall conform to the following
requirements:
(1) It shall contain the word "corporation,"
"company," or "incorporated," or shall contain an abbreviation of
one of such words, and shall contain such additional words as may be
required by law.
(2) It shall not contain any word or phrase which
indicates or implies that it is organized for any purpose other than
one or more of the purposes contained in its articles of
incorporation.
(3) It shall not be the same as, or deceptively similar
to, the name of any domestic corporation, limited partnership, or
limited liability company existing under the laws of this State, or
the name of any foreign corporation, non-profit corporation,
limited partnership, or limited liability company authorized to
transact business in this State, or a name the exclusive right to
which is, at the time, reserved in the manner provided in this Act
or any other statute providing for reservation of names by a limited
partnership or limited liability company, or the name of a
corporation, limited partnership, or limited liability company
which has in effect a registration of its company name as provided
in this Act or any other applicable law; provided that a name may be
similar if written consent is obtained from the existing
corporation, limited partnership, or limited liability company
having the name deemed to be similar or the person for whom the name
deemed to be similar is reserved in the office of the Secretary of
State.
(4) It shall not contain the word "lottery."
(5) It shall not contain the word "casino."
SECTION 9. Section A, Article 2.04, Texas Non-Profit
Corporation Act (Article 1396-2.04, Vernon's Texas Civil
Statutes), is amended to read as follows:
A. The corporate name shall conform to the following
requirements:
(1) It shall not contain any word or phrase which
indicates or implies that it is organized for any purpose other than
one or more of the purposes contained in its articles of
incorporation.
(2) It shall not be the same as, or deceptively similar
to, the name of any domestic corporation, whether for profit or not
for profit, existing under the laws of this State, or the name of
any foreign corporation, whether for profit or not for profit,
authorized to transact business or conduct affairs in this State,
or a name the exclusive right to which is, at the time, reserved in
the manner provided by the Texas Business Corporation Act, or the
name of a corporation which has in effect a registration of its
corporate name as provided in the Texas Business Corporation Act;
provided that a name may be similar if written consent is obtained
from the existing corporation having the name deemed to be similar,
or the person, or corporation, for whom the name deemed to be
similar is reserved or registered in the office of the Secretary of
State.
(3) It shall not contain the word "lottery."
(4) It shall not contain the word "casino."
SECTION 10. In making the initial appointments to the Texas
Casino Commission, the governor shall appoint one member for a term
expiring February 1, 2005, one member for a term expiring February
1, 2007, and one member for a term expiring February 1, 2009.
SECTION 11. (a) To promptly implement this Act, the
comptroller and the executive director of the Department of
Information Resources or their designated representatives shall,
on the request of the executive director of the Texas Casino
Commission, advise the executive director in promptly implementing
an electronic funds transfer system for purposes of administering
Chapters 469 and 470, Government Code.
(b) This section expires January 1, 2005. The expiration of
this section does not affect the performance of or obligations
under a contract made under this section.
SECTION 12. This Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, to authorize the legislature to authorize the state
to operate a casino at a publicly owned sports venue or facility in
Harris County and to conduct games of chance at that casino to fund
public education takes effect. If that amendment is not approved by
the voters, this Act has no effect.