80R9643 JPL-F

By: Ellis S.B. No. 1452

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of certain ocean-going ships on which gambling is offered and to the application of certain gambling offenses to the ships; creating offenses and providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 13, Occupations Code, is amended by adding Chapter 2004 to read as follows: CHAPTER 2004. DAY CRUISE CASINO SHIPS SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2004.001. DEFINITIONS. In this chapter:

(1) "Casino" means a part of a ship in which gaming is conducted.

(2) "Casino operator" means a person who conducts gaming aboard a day cruise casino ship.

(3) "Commission" means the Texas Commission of Licensing and Regulation.

(4) "Day cruise casino ship" means an ocean-going vessel on a cruise of not more than 24 hours on which gaming is conducted in the territorial waters of this state during the cruise.

(5) "Department" means the Texas Department of Licensing and Regulation.

(6) "Executive director" means the executive director of the department.

(7) "Gaming" means any betting activity described in Chapter 47, Penal Code, including an activity that uses gaming equipment or devices.

(8) "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 cruise ship operator license or a casino operator license under this chapter; 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.

(9) "License holder" means any person holding a license issued under this chapter.

Sec. 2004.002. RULES. (a) The commission may adopt rules for the administration of this chapter.

(b) The commission shall adopt rules to:

(1) prohibit and prevent gambling by a person younger than 21 years of age; and

(2) prohibit and prevent a person younger than 16 years of age from boarding a day cruise casino ship unless the person is accompanied by a parent, conservator, guardian, or other legal custodian of the person. [Sections 2004.003-2004.050 reserved for expansion] SUBCHAPTER B. LICENSES

Sec. 2004.051. CRUISE SHIP OPERATOR LICENSE REQUIRED. A person may not operate a day cruise casino ship unless the person holds a cruise ship operator license under this chapter.

Sec. 2004.052. CASINO OPERATOR LICENSE REQUIRED. A person may not operate a casino on a day cruise casino ship unless the person holds a casino operator license under this chapter.

Sec. 2004.053. GAMING EMPLOYEE LICENSE REQUIRED. A person may not be employed as a gaming employee on a day cruise casino ship unless the person holds a gaming employee license under this chapter.

Sec. 2004.054. FEES. (a) The fee for a cruise ship operator license is $10,000 per ship.

(b) Except as provided by Subsection (a), the commission shall set fees for the issuance of a license or renewal of a license under this chapter in amounts that are reasonable and necessary to cover the costs of administering this chapter, including the costs of background investigations and fingerprint and criminal history record checks.

(c) 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 chapter.

Sec. 2004.055. LICENSE APPLICATION. (a) An applicant for a license under this chapter shall file a written application with the executive director on a form prescribed by the executive director. 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 Subtitle C, Title 7, Transportation Code, 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 of each stockholder who owns five percent or more of the outstanding stock of the corporation;

(C) the date and place of birth, social security number, and a physical description of each director and individual stockholder of the corporation who owns five percent or more of the outstanding stock of the corporation;

(D) the applicant's federal taxpayer identification number, if any; and

(E) a statement by each director and individual stockholder who owns five percent or more of the outstanding stock of the corporation disclosing any arrest or conviction of that director or stockholder for any felony or misdemeanor offense other than a misdemeanor offense under Subtitle C, Title 7, Transportation Code, 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 of the association or entity;

(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 Subtitle C, Title 7, Transportation Code, 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 2004.062.

Sec. 2004.056. ADDITIONAL INFORMATION REQUIRED FOR SHIP OPERATOR LICENSE. An application for a cruise ship operator license must be accompanied by:

(1) complete registration information on each ship to be used as a day cruise casino ship;

(2) plans for each 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 each proposed day cruise casino ship and the information required under Section 2004.055(b) for each person named in the contract; and

(4) a statement identifying the point of departure and return for each cruise of not more than 24 hours' duration, designating the municipality, cruise ship terminal, pier, or dock at which each ship is regularly berthed for scheduled sailings.

Sec. 2004.057. ADDITIONAL INFORMATION REQUIRED FOR CASINO OPERATOR LICENSE. 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;

(3) a detailed description of all games and devices to be used for gaming aboard the ship; and

(4) 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.

Sec. 2004.058. LICENSE ISSUANCE AND RENEWAL. (a) The executive director shall issue an appropriate license to an applicant who meets the requirements of this chapter. The executive director shall provide each license holder with an appropriate license certificate or other credentials.

(b) A license issued under this chapter expires on the first anniversary of the date of issuance. A license may be renewed before expiration by submitting a renewal application in the form prescribed by the executive director accompanied by the renewal fee.

(c) An applicant or license holder shall notify the executive director 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 not later than the 10th day after the date of the change.

Sec. 2004.059. BACKGROUND INVESTIGATIONS. The Department of Public Safety may conduct background investigations of an applicant for a license under this chapter under an interagency contract with the commission. The executive director 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. 2004.060. FINGERPRINTS. (a) An applicant for a license under this chapter must submit to the executive director 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 executive director shall forward the fingerprints to the Department of Public Safety. Under an interagency contract with the commission, the Department of Public Safety shall classify the fingerprints and check them against its fingerprint files and shall report to the executive director its findings concerning the criminal record of the applicant or the lack of a record. A license may not be issued until the report is made to the executive director.

(c) The Department of Public Safety may maintain records of fingerprints submitted under this section.

(d) The executive director may refuse to grant a license to an applicant who fails to provide a complete set of fingerprints.

Sec. 2004.061. ACCESS TO CRIMINAL HISTORY RECORDS. (a) The executive director may obtain any criminal history record information that relates to an applicant for a license issued by the executive director under this chapter and that is maintained by the Department of Public Safety, the Federal Bureau of Investigation Identification Division, or any other law enforcement agency.

(b) Criminal history record information received by the executive director 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 executive director, 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 executive director or a hearings officer appointed by the executive director, on court order, or with the consent of the applicant.

Sec. 2004.062. DENIAL OF APPLICATION OR SUSPENSION OR REVOCATION OF LICENSE. (a) The executive director shall deny an application for a license or suspend or revoke a license if the executive director 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 by Paragraph (A);

(2) is not an individual, and an individual described in Subdivision (1):

(A) is an officer or director of the applicant or license holder;

(B) owns 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, establish that the applicant or license holder is ineligible for a license under this section;

(4) has failed to provide to the executive director or the Department of Public Safety supplementary information as required by this chapter;

(5) has violated this chapter or a rule adopted under this chapter; or

(6) has violated a federal or state penal gambling statute.

(b) Before taking action under this section, the executive director shall hold a hearing if requested by the applicant or license holder. [Sections 2004.063-2004.100 reserved for expansion] SUBCHAPTER C. OFFENSES; ENFORCEMENT

Sec. 2004.101. ACTING WITHOUT LICENSE. (a) A person commits an offense if the person violates Section 2004.051, 2004.052, or 2004.053.

(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 issued under this chapter; and

(3) the person employed does not hold a gaming employee license issued under this chapter.

(c) An offense under this section is a state jail felony.

Sec. 2004.102. FALSE STATEMENT; HINDERING ENTRY. (a) 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 person who is conducting an investigation or otherwise exercising discretion under this chapter or a rule adopted under this chapter.

(b) A person commits an offense if the person intentionally, knowingly, recklessly, or with criminal negligence refuses, denies, or hinders entry to a person acting on behalf of the executive director or other person authorized to board the ship under Section 2001.105 who is boarding or inspecting or attempting to board or inspect a ship under this chapter.

(c) An offense under this section is a state jail felony.

Sec. 2004.103. GAMING BY MINOR. (a) 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.

(b) 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.

(c) An offense under Subsection (a) is a state jail felony. An offense under Subsection (b) is a Class C misdemeanor.

Sec. 2004.104. VENUE. In addition to the venue provided by other law, an offense under this subchapter may be prosecuted in Travis County, if:

(1) it cannot be determined in which county the alleged offense occurred; or

(2) the offense is an offense under Section 2001.101.

Sec. 2004.105. ENFORCEMENT. (a) The executive director, comptroller, and Department of Public Safety shall enforce this chapter. The executive director, comptroller, or Department of Public Safety may board and inspect a day cruise casino ship located in this state, including the territorial waters of this state, to ensure the ship is operated in compliance with state or other applicable law. The executive director, comptroller, or Department of Public Safety may charter a ship at the expense of a licensed day cruise casino ship operator if the executive director, comptroller, or Department of Public Safety considers it necessary to board the ship at sea.

(b) A license holder may not refuse a request by the executive director, comptroller, or Department of Public Safety to board or inspect a ship licensed under this chapter.

(c) The executive director, comptroller, or Department of Public Safety may initiate a complaint under this chapter with the executive director.

SECTION 2. Section 47.01, Penal Code, is amended by adding Subdivisions (2-a) and (2-b) to read as follows:

(2-a) "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.

(2-b) "Day cruise casino ship" has the meaning assigned by Section 2004.001, Occupations Code.

SECTION 3. Section 47.02, Penal Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) It is an affirmative defense to prosecution under this section that:

(1) the conduct occurred aboard a day cruise casino ship and the actor reasonably believed that:

(A) the owner of the ship and the person operating the game, contest, or other gambling activity held appropriate licenses under Chapter 2004, Occupations Code; and

(B) the ship was at least three nautical miles gulfward from the coastline at the time the conduct occurred; or

(2) the conduct occurred aboard a day cruise casino ship and the actor held an appropriate license under Chapter 2004, Occupations Code, and reasonably believed that:

(A) the conduct complied with that chapter and rules adopted under that chapter; and

(B) the ship was at least three nautical miles gulfward from the coastline at the time the conduct occurred.

SECTION 4. Section 47.04, Penal Code, is amended by adding Subsection (d) to read as follows:

(d) It is an affirmative defense to prosecution under this section that the gambling place is aboard a day cruise casino ship if:

(1) the operator of the ship and the operator of the gambling place hold the appropriate license under Chapter 2004, Occupations Code, if licenses are required by that chapter because of gambling that may occur in the territorial waters of this state;

(2) the portion of the ship that is used as a gambling place is locked or otherwise physically secured in a manner that makes any gaming device inaccessible or inoperable at all times while the ship is located less than three nautical miles gulfward from the coastline; and

(3) the gambling place is not used for gambling or other gaming purposes while the ship is located less than three nautical miles gulfward from the coastline.

SECTION 5. Section 47.06, Penal Code, is amended by adding Subsection (h) to read as follows:

(h) It is an affirmative defense to prosecution under Subsections (a) and (c) that the device or equipment is aboard a day cruise casino ship if:

(1) the operator of the ship and the operator of the gambling place hold appropriate licenses under Chapter 2004, Occupations Code, if licenses are required by that chapter because of gambling that may occur in the territorial waters of this state;

(2) the portion of the ship in which the device or equipment is located is locked or otherwise physically secured in a manner that makes the gaming device inaccessible or inoperable at all times while the ship is located less than three nautical miles gulfward from the coastline; and

(3) the device or equipment is not used for gambling or other gaming purposes while the ship is located less than three nautical miles gulfward from the coastline.

SECTION 6. Not later than April 1, 2008, the Texas Commission of Licensing and Regulation shall:

(1) develop the application forms required for licensing and license renewal under Chapter 2004, Occupations Code, as added by this Act;

(2) adopt the initial rules required to administer Chapter 2004, Occupations Code, as added by this Act; and

(3) establish the procedures and qualifications for the licenses as required by Chapter 2004, Occupations Code, as added by this Act.

SECTION 7. (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 8. This Act takes effect January 1, 2008, but only if the constitutional amendment proposed by the 80th Legislature, Regular Session, 2007, authorizing this state to license persons to conduct gaming, including electronic gaming, on cruise vessels departing from or returning to a dock in this state, is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.