By: Wilson H.B. No. 3380
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of ocean-going ships on which gambling
is offered and to the application of certain gambling offenses to
ocean-going ships; creating offenses and providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Revised Statutes, is amended by adding
Article 179g to read as follows:
Art. 179g. DAY CRUISE CASINO SHIPS
Sec. 1. DEFINITIONS. In this article:
(1) "Casino" means a part of a ship in which gaming is
conducted.
(2) "Casino operator" means a person who maintains a
game aboard a day cruise casino ship.
(3) "Commission" means the Texas Commission of
Licensing and Regulation.
(4) "Commissioner" means the commissioner of
licensing and regulation.
(5) "Day cruise casino ship" means an ocean-going
vessel:
(A) on which gaming is conducted in the
territorial waters of this state; or
(B) that boards passengers at a port in this
state for regularly scheduled day cruises of less than 24 hours that
includes gaming.
(6) "Game" or "gaming" means any betting activity
described in Chapter 47, Penal Code, including an activity that
uses gaming equipment or devices.
(7) "Gaming employee" means any individual directly
connected with the operation of a game on a day cruise casino ship.
The term does not include a person who is:
(A) required to hold a license under Section 3 or
4 of this article; or
(B) employed on a day cruise casino ship
exclusively:
(i) in connection with preparation or
serving of food or beverages; or
(ii) as a crew member or officer
responsible for operating or navigating the day cruise casino ship.
(8) "License holder" means any person holding a
license issued under this article.
(9) "Person" includes a corporation, organization,
business trust, estate, trust, partnership, association, and any
other legal entity.
Sec. 2. RULES. (a) The commission may adopt rules for the
administration of this article.
(b) The commission shall adopt rules to prevent gambling by
persons younger than 21 years of age and to prevent persons younger
than 16 years of age from boarding a day cruise casino ship unless
accompanied by a parent, conservator, guardian, or other legal
custodian of the person.
Sec. 3. SHIP OPERATOR LICENSE REQUIRED. A person must
obtain a license to operate a day cruise casino ship.
Sec. 4. CASINO OPERATOR LICENSE REQUIRED. A person must
obtain a license to operate a casino on a day cruise casino ship.
Sec. 5. GAMING EMPLOYEE LICENSE REQUIRED. A person must
obtain a license to work as a gaming employee on a day cruise casino
ship.
Sec. 6. FEES. The fee for a day cruise casino ship operator
license under Section 3 of this article is $25,000 per ship. The
commission shall set fees for other licenses and renewals under
this article in amounts that are reasonable and necessary to cover
the complete cost of administering this article and the cost of
administering the application process, including background
investigations and fingerprint and criminal history record checks.
The commission may enter into an interagency contract with the
Department of Public Safety to provide background investigations or
to provide fingerprint and criminal history record checks required
under this article.
Sec. 7. LICENSE APPLICATION; ISSUANCE; RENEWAL. (a) An
applicant for a license under this article must file a written
application with the commissioner on a form prescribed by the
commissioner. The application must be accompanied by the
appropriate fee.
(b) An application for a license must include:
(1) if the applicant is an individual:
(A) the applicant's full name;
(B) the applicant's date and place of birth;
(C) a physical description of the applicant;
(D) the applicant's current address and
telephone number;
(E) the applicant's social security number; and
(F) a statement by the applicant disclosing the
applicant's arrest or conviction for any felony or misdemeanor
offense other than a misdemeanor offense under the Uniform Act
Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
Statutes) or a similar misdemeanor traffic offense;
(2) if the applicant is a corporation:
(A) the name and address of the corporation's
agent for service of process in this state;
(B) the names and current addresses and telephone
numbers of its directors and stockholders;
(C) the date and place of birth, social security
number, and a physical description of each director and individual
stockholder;
(D) the applicant's federal taxpayer
identification number, if any; and
(E) a statement by each director and individual
stockholder disclosing any arrest or conviction of that director or
stockholder for any felony or misdemeanor offense other than a
misdemeanor offense under the Uniform Act Regulating Traffic on
Highways (Article 6701d, Vernon's Texas Civil Statutes) or a
similar misdemeanor traffic offense;
(3) if the applicant is an unincorporated business
association or any other legal entity:
(A) the names, current addresses and telephone
numbers, and percentage of ownership of each of its owners or
members;
(B) the date and place of birth, social security
number, and a physical description of each individual owner or
member;
(C) the applicant's federal taxpayer
identification number, if any; and
(D) a statement by each individual owner or
member disclosing any arrest or conviction of that owner or member
for any felony or misdemeanor offense other than a misdemeanor
offense under the Uniform Act Regulating Traffic on Highways
(Article 6701d, Vernon's Texas Civil Statutes) or a similar
misdemeanor traffic offense;
(4) a detailed statement of the assets and liabilities
of the applicant; and
(5) information necessary to determine whether
grounds for denial of the license exist under Section 10 of this
article.
(c) An application for a day cruise casino ship operator
license must be accompanied by:
(1) complete registration information on the ship to
be used as a day cruise casino ship;
(2) plans for the ship to be used as a day cruise
casino ship, showing the proposed location of the casino space;
(3) a copy of each management or concession contract
pertaining to the proposed day cruise casino ship, together with
the same information on each person named in the contract as
required of an applicant; and
(4) identification of the point of departure and
return for all cruises of less than 24 hours duration, designating
the city, city cruise ship terminal, or pier or dock at which the
ship is regularly berthed for scheduled sailings.
(d) An application for a casino operator license must be
accompanied by:
(1) complete registration information on the ship on
which the casino will be operated;
(2) plans for the ship to be used as a day cruise
casino ship, showing the proposed location of the casino space; and
(3) a detailed description of all games and devices to
be used for gaming aboard the ship and the methods for notifying the
public that the rules of each game and standards for percentages of
wins and losses are prominently displayed on the ship and in the
casino.
(e) The commissioner shall not issue a day cruise casino
ship operator license or a casino operator license for a ship to
operate from a port within a 60-mile radius of the county seat of a
county in which a greyhound racetrack licensed under the Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes) is
located, if the racetrack has operated for at least 90 days before
the license application required by this article is approved. A day
cruise casino ship that is operating before any greyhound racetrack
in the county from which the ship operates is licensed may continue
to operate and is eligible for a license under this Act if otherwise
qualified.
(f) The commissioner shall issue an appropriate license to
an applicant who meets the requirements of this article. The
commissioner shall provide each license holder with a license
certificate or credentials.
(g) A license issued under this article expires on the first
anniversary of the date it was issued. A license may be renewed
before expiration on the filing of a renewal application in the form
prescribed by the commissioner accompanied by the renewal fee.
(h) An applicant or license holder shall notify the
commissioner of any change in the information in the applicant's or
license holder's most recent application for a license or renewal
of a license. The applicant or license holder shall notify the
commissioner of the change in the information not later than the
10th day after the date of the change.
(i) The Department of Public Safety may conduct background
investigations of an applicant for a license under this article
under an interagency contract with the commission. The
commissioner or the Department of Public Safety may require an
applicant to supplement an original application with additional
information that is reasonably related to the application process.
Sec. 8. FINGERPRINTS. (a) An applicant for a license under
this article must submit to the commissioner a complete set of
fingerprints of the individual applying for the license or, if the
applicant is not an individual, of any individual required to be
named in the application.
(b) The commissioner, not later than the next day after
receiving the fingerprints, shall forward the prints by mail to the
Department of Public Safety. Under an interagency contract with
the commission, the department shall classify the fingerprints and
check them against its fingerprint files and shall report to the
commissioner its findings concerning the criminal record of the
applicant or the lack of such a record. A license may not be issued
until the report is made to the commissioner. The department may
maintain records submitted under this article.
(c) The Department of Public Safety may adopt rules
governing the fingerprint process described in this section.
Sec. 9. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The
commissioner may obtain any criminal history record information
that relates to an applicant for a license issued by the
commissioner under this article and that is maintained by the
Department of Public Safety or the Federal Bureau of Investigation
Identification Division. The commissioner may refuse to grant a
license to an applicant who fails to provide a complete set of
fingerprints.
(b) The commissioner may obtain criminal history record
information from any law enforcement agency.
(c) Criminal history record information received by the
commissioner under this section from any law enforcement agency
that requires the information to be kept confidential as a
condition of release of the information is for the exclusive use of
the commissioner, is privileged and confidential, and may not be
released or otherwise disclosed to any person or agency except in a
criminal proceeding, in a hearing conducted by the commissioner or
a hearings officer appointed by the commissioner, on court order,
or with the consent of the applicant.
Sec. 10. DENIAL OF APPLICATION OR SUSPENSION OR REVOCATION
OF LICENSE. After a hearing, the commissioner shall deny an
application for a license or suspend or revoke a license if the
commissioner finds that the applicant or license holder:
(1) is an individual who:
(A) has, in any jurisdiction, been convicted of
or placed on probation for a felony, criminal fraud, gambling or a
gambling-related offense, or a misdemeanor involving moral
turpitude; or
(B) is married to or related in the first degree
of consanguinity or affinity to an individual described in
Paragraph (A) of this subdivision;
(2) is not an individual, and an individual described
in Subdivision (1) of this section:
(A) is an officer or director of the applicant or
license holder;
(B) holds more than 10 percent of the stock in the
applicant or license holder;
(C) holds an equitable interest greater than 10
percent in the applicant or license holder;
(D) is a creditor of the applicant or license
holder who holds more than 10 percent of the applicant's or license
holder's outstanding debt;
(E) shares or will share in the profits, other
than stock dividends, of the applicant or license holder; or
(F) participates in managing the affairs of the
applicant or license holder;
(3) has failed to disclose information that would, if
disclosed, render the license holder ineligible for a license under
this section;
(4) has failed to provide to the commissioner or the
Department of Public Safety supplementary information as required
by this article;
(5) has violated this article or a rule adopted under
this article; or
(6) has violated a federal or state penal gambling
statute.
Sec. 11. OFFENSES. (a) A person commits an offense if the
person violates Section 3, 4, or 5 of this article.
(b) A person commits an offense if:
(1) the person employs another as a gaming employee;
(2) the person employed is required to hold a gaming
employee license under Section 5 of this article; and
(3) the person employed does not have a gaming
employee license issued under Section 7 of this article.
(c) A person commits an offense if the person intentionally,
knowingly, recklessly, or with criminal negligence makes a false,
incorrect, or deceptive material statement to another who is
conducting an investigation or exercising discretion under this
article or a rule adopted under this article. In this subsection,
"statement" includes:
(1) a written or oral statement; and
(2) a sworn or unsworn statement.
(d) A person commits an offense if the person intentionally,
knowingly, recklessly, or with criminal negligence refuses,
denies, or hinders entry to another who is exercising or attempting
to exercise a power of boarding or inspection under this article.
(e) A person commits an offense if the person intentionally,
knowingly, recklessly, or with criminal negligence permits a person
younger than 21 years of age to engage in gaming aboard a day cruise
casino ship.
(f) A person younger than 21 years of age commits an offense
if the person intentionally or knowingly engages in gaming aboard a
day cruise casino ship. An offense under this subsection is a Class
C misdemeanor.
(g) Except as provided in Subsection (f) of this section, an
offense under this section is a felony of the third degree.
Sec. 12. VENUE. An offense under this article may be
prosecuted in:
(1) the county in which venue is proper under Article
13.11, Code of Criminal Procedure; or
(2) Travis County, if:
(A) it cannot be proved in which county the
alleged offense occurred; or
(B) the offense is the failure to have a valid
license under this article.
Sec. 13. ENFORCEMENT. (a) The commissioner, comptroller,
and Department of Public Safety shall enforce this article. The
commissioner, comptroller, or department may board and inspect a
day cruise casino ship located in this state, including the
territorial waters of this state, to ensure that the ship is
operated in compliance with state or other applicable law. The
commissioner, comptroller, or Department of Public Safety may
charter a ship at the expense of a licensed day cruise casino ship
operator if the commissioner, comptroller, or department considers
it necessary to board the ship at sea.
(b) A license holder may not refuse a request by the
commissioner, comptroller, or Department of Public Safety to board
or inspect a ship licensed under this article.
(c) The commissioner, comptroller, or Department of Public
Safety may initiate a complaint under this article with the
commissioner.
Sec. 14. MUNICIPAL REGULATION. (a) A municipality by
ordinance may impose regulations for the protection of the health
and safety of the passengers or crew of day cruise casino ships that
regularly take on passengers in the municipality or that are
regularly loaded, fueled, repaired, stored, or docked in the
municipality, and may levy a boarding fee that does not exceed $1
per passenger per trip.
(b) A municipality may inspect a day cruise casino ship that
is docked in the municipality to determine whether the ship is being
operated in compliance with this article, Chapter 47, Penal Code,
municipal ordinances, or other law.
(c) A municipal ordinance may not prohibit any activity
relating to a day cruise casino ship that is expressly permissible
under this article, Chapter 47, Penal Code, or other state law. A
municipality may not require a license in addition to the licenses
required by this article.
(d) A municipality may impose an annual fee on the operator
of a day cruise casino ship for the municipality's costs of
investigation and inspection. The annual fee may not exceed
$10,000 per ship.
SECTION 2. Section 47.01, Penal Code, is amended by adding
Subdivisions (9) and (10) to read as follows:
(9) "Coastline" means the line of mean low tide along
the portions of the Texas coast that are in direct contact with the
open Gulf of Mexico.
(10) "Day cruise casino ship" has the meaning assigned
by Article 179g, Revised Statutes.
SECTION 3. Subsection (c), Section 47.02, Penal Code, is
amended to read as follows:
(c) It is an affirmative [a] defense to prosecution under
this section that:
(1) the actor reasonably believed that the conduct was
permitted under:
(A) the Bingo Enabling Act (Article 179d,
Vernon's Texas Civil Statutes); or
(B) [under] the Charitable Raffle Enabling Act
(Article 179f, Revised Statutes);
(2) the conduct occurred aboard a day cruise casino
ship, the actor did not operate the game or contest, and the actor
reasonably believed that:
(A) the owner of the ship and the person
operating the game held appropriate licenses under Article 179g,
Revised Statutes; and
(B) the ship was at least three nautical miles
gulfward from the coastline at the time the conduct occurred; or
(3) the conduct occurred aboard a day cruise casino
ship, the actor held an appropriate license under Article 179g,
Revised Statutes, and reasonably believed his conduct complied with
that article and rules adopted under that article, and the ship was
at least three nautical miles gulfward from the coastline at the
time the conduct occurred.
SECTION 4. Subsection (c), Section 47.04, Penal Code, is
amended to read as follows:
(c) It is an affirmative defense to prosecution under this
section that the gambling place is aboard a day cruise casino ship
[an ocean-going vessel that enters the territorial waters of this
state to call at a port in this state] if:
(1) the operator of the ship and the operator of the
gambling place hold appropriate licenses under Article 179g,
Revised Statutes, if licenses are required by that article because
of gambling that may occur in [before the vessel enters the
territorial waters of this state, the district attorney or, if
there is no district attorney, the county attorney for the county in
which the port is located receives notice of the existence of the
gambling place on board the vessel and of the anticipated dates on
which the vessel will enter and leave] the territorial waters of
this state;
(2) the portion of the ship [vessel] that is used as a
gambling place is locked or otherwise physically secured in a
manner that makes the area inaccessible to anyone other than the
master and crew of the ship [vessel] at all times while the ship
[vessel] is located less than three nautical miles gulfward from
the coastline [in the territorial waters of this state];
(3) no person other than the master and crew of the
ship [vessel] is permitted to enter [or view] the gambling place
while the ship [vessel] is located less than three nautical miles
gulfward from the coastline [in the territorial waters of this
state]; and
(4) the gambling place is not used for gambling or
other gaming purposes while the ship [vessel] is located less than
three nautical miles gulfward from the coastline [in the
territorial waters of this state].
SECTION 5. Subsection (c), Section 47.06, Penal Code, is
amended to read as follows:
(c) It is an affirmative defense to prosecution under
Subsection (a) of this section that the device or equipment is
aboard a day cruise casino ship [an ocean-going vessel that enters
the territorial waters of this state to call at a port in this
state] if:
(1) the operator of the ship and the operator of the
gambling place hold appropriate licenses under Article 179g,
Revised Statutes, if licenses are required by that article because
of gambling that may occur in [before the vessel enters the
territorial waters of this state, the district attorney or, if
there is no district attorney, the county attorney for the county in
which the port is located receives notice of the existence of the
device or equipment on board the vessel and of the anticipated dates
on which the vessel will enter and leave] the territorial waters of
this state;
(2) the portion of the ship [vessel] in which the
device or equipment is located is locked or otherwise physically
secured in a manner that makes the area inaccessible to anyone other
than the master and crew of the ship [vessel] at all times while the
ship [vessel] is located less than three nautical miles gulfward
from the coastline [in the territorial waters of this state];
(3) no person other than the master and crew of the
ship [vessel] is permitted to enter [or view] the portion of the
ship [vessel] in which the device or equipment is located while the
ship [vessel] is located less than three nautical miles gulfward
from the coastline [in the territorial waters of this state]; and
(4) the device or equipment is not used for gambling or
other gaming purposes while the ship [vessel] is located less than
three nautical miles gulfward from the coastline [in the
territorial waters of this state].
SECTION 6. Subsection (b), Section 47.07, Penal Code, is
amended to read as follows:
(b) It is an affirmative defense to prosecution under this
section that the gambling paraphernalia is aboard a day cruise
casino ship [an ocean-going vessel that enters the territorial
waters of this state to call at a port in this state] if:
(1) the operator of the ship and the operator of the
gambling place hold appropriate licenses under Article 179g,
Revised Statutes, if licenses are required by that article because
of gambling that may occur in [before the vessel enters the
territorial waters of this state, the district attorney or, if
there is no district attorney, the county attorney for the county in
which the port is located receives notice of the existence of the
gambling paraphernalia on board the vessel and of the anticipated
dates on which the vessel will enter and leave] the territorial
waters of this state;
(2) the portion of the ship [vessel] in which the
gambling paraphernalia is located is locked or otherwise physically
secured in a manner that makes the area inaccessible to anyone other
than the master and crew of the ship [vessel] at all times while the
ship [vessel] is located less than three nautical miles gulfward
from the coastline [in the territorial waters of this state];
(3) no person other than the master and crew of the
ship [vessel] is permitted to enter [or view] the portion of the
ship [vessel] in which the gambling paraphernalia is located while
the ship [vessel] is located less than three nautical miles
gulfward from the coastline [in the territorial waters of this
state]; and
(4) the gambling paraphernalia is not used for
gambling or other gaming purposes while the ship [vessel] is
located less than three nautical miles gulfward from the coastline
[in the territorial waters of this state].
SECTION 7. Article 179f, Revised Statutes, as added by
Section 5, Chapter 1030, Acts of the 71st Legislature, Regular
Session, 1989, is repealed.
SECTION 8. (a) The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act. For purposes of this section, an offense is committed before
the effective date of this Act if any element of the offense occurs
before the effective date.
(b) An offense committed before the effective date of this
Act is covered by the law in effect when the offense was committed,
and the former law is continued in effect for that purpose.
SECTION 9. (a) This Act takes effect September 1, 2004.
(b) A person who on the effective date of this Act operates a
cruise ship having a casino may continue to operate the ship and may
conduct gambling in the territorial waters of this state as
permitted by Chapter 47, Penal Code, as amended by this Act, or
outside the territorial waters of this state without obtaining a
license under Article 179g, Revised Statutes, as added by this Act,
if:
(1) the person holds a license to operate the ship
issued by a municipality; and
(2) the municipal licensing procedure requires
appropriate Department of Public Safety approval of the owner and
operator of the ship.
(c) A person operating a ship under Subsection (b) of this
section shall notify the commissioner of licensing and regulation
before the person conducts gambling in the territorial waters of
this state as permitted by Chapter 47, Penal Code, as amended by
this Act. The commissioner shall provide the person with an
appropriate application for a license under Article 179g, Revised
Statutes, as added by this Act, as soon as the applications are
developed.
(d) A person operating a cruise ship having a casino under
Subsection (b) of this section may not conduct gambling in the
territorial waters of this state if the commissioner of licensing
and regulation denies the person a license under Article 179g,
Revised Statutes.
SECTION 10. The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended.