|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the authorization and regulation of casino and slot |
|
gaming in this state, the creation, powers, and duties of the Texas |
|
Gaming Commission, and the powers and duties of the Texas Racing |
|
Commission; providing penalties. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Title 13, Occupations Code, is amended by adding |
|
Subtitle A-1 to read as follows: |
|
SUBTITLE A-1. CASINO, SLOT, AND OTHER GAMING REGULATED BY TEXAS |
|
GAMING COMMISSION |
|
CHAPTER 2021. GENERAL PROVISIONS; TEXAS GAMING COMMISSION |
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
Sec. 2021.001. DEFINITIONS. In this subtitle: |
|
(1) "Affiliate" means a person who, directly or |
|
indirectly through one or more intermediaries, controls, is |
|
controlled by, or is under common control with another person. A |
|
person is considered to control a company if the person |
|
beneficially owns more than a five percent equity interest in the |
|
company under the beneficial ownership rules adopted by the |
|
commission. |
|
(2) "Applicant" means a person who has applied for a |
|
casino owner's license, a casino operator's license, a slot |
|
establishment owner's license, a slot establishment operator's |
|
license, an occupational license, a manufacturer's license, a slot |
|
machine provider license, a casino service license, or a |
|
qualification to hold an equity interest or creditor interest in a |
|
casino owner's license holder or slot establishment owner's license |
|
holder or who has applied for the approval of any act or transaction |
|
for which approval is required or allowed under this subtitle. |
|
(3) "Associated equipment" means any equipment, |
|
including a mechanical, electromechanical, or electronic |
|
contrivance, component, or machine, used in connection with gaming |
|
or with any game that would not otherwise be classified as a gaming |
|
device. The term includes dice, playing cards, links connecting |
|
progressive slot machines, equipment affecting the proper |
|
reporting of gross gaming revenue, computerized systems or software |
|
for monitoring slot machines, and devices for weighing or counting |
|
money. |
|
(4) "Casino" means a facility at which gambling games |
|
are conducted for profit that are not authorized by a law other than |
|
Chapter 2022. The term does not include a slot establishment. |
|
(5) "Casino operator" means a person other than the |
|
casino owner's license holder who contractually agrees to provide |
|
operational and managerial services for the operation of a casino |
|
on behalf of the casino owner's license holder in return for |
|
receiving a payment based wholly or partly on profits or receipts |
|
from the casino. |
|
(6) "Casino operator's license" means a license issued |
|
under Section 2022.101. |
|
(7) "Casino owner's license" means a license issued |
|
under Section 2022.052. |
|
(8) "Casino service" means the provision of goods or |
|
services, including security service and gaming schools, to a |
|
person holding a casino owner's or operator's license under this |
|
subtitle, other than a service requiring a manufacturer's license. |
|
(9) "Casino service license" means a license issued |
|
under Section 2022.152. |
|
(10) "Casino service license holder" means a person |
|
who holds a casino service license. |
|
(11) "Commission" means the Texas Gaming Commission. |
|
(12) "Commission member" means a member of the |
|
commission. |
|
(13) "Company" means a corporation, partnership, |
|
limited partnership, trust, association, joint stock company, |
|
joint venture, limited liability company, or other form of business |
|
organization. The term does not include a sole proprietorship or |
|
natural person. |
|
(14) "Creditor interest" means a right or claim of any |
|
character against a person for the payment of money borrowed, |
|
whether secured or unsecured, matured or unmatured, liquidated or |
|
absolute, or fixed or contingent. The term includes an obligation |
|
based on the person's profits or receipts. |
|
(15) "Director" means a member of the board of |
|
directors of a corporation and a person performing similar |
|
functions with respect to a company other than a corporation. |
|
(16) "Equity interest" means a proprietary interest, |
|
right, or claim allowing the holder either to vote with respect to |
|
matters of organizational governance or to participate in the |
|
profits and residual assets of a company, including common and |
|
preferred stock in a corporation, a general or limited partnership |
|
interest in a partnership, a similar interest in any other form of |
|
business organization, and a warrant, right, or similar interest |
|
convertible into, or to subscribe for, a proprietary right or |
|
claim, with or without the payment of additional consideration. |
|
(17) "Executive director" means the executive |
|
director of the commission. |
|
(18) "Game" or "gambling game": |
|
(A) means any game or similar activity that |
|
involves the making of a bet, as defined by Section 47.01, Penal |
|
Code, for consideration, and includes: |
|
(i) a banking or percentage game played |
|
with cards, dice, or a mechanical, electromechanical, or electronic |
|
device or machine for money, property, checks, credit, or a |
|
representative of value, including roulette, keno, twenty-one, |
|
blackjack, craps, poker, chuck-a-luck (dai shu), wheel of fortune, |
|
chemin de fer, baccarat, pai gow, slot machine, any other |
|
electronic game of chance, and any other game or device approved by |
|
the commission; |
|
(ii) simulcast wagering on pari-mutuel |
|
greyhound or horse racing; |
|
(iii) the maintenance of a race book; and |
|
(iv) any other method of effecting a wager |
|
approved by the commission; and |
|
(B) does not include: |
|
(i) bingo authorized by Chapter 2001; |
|
(ii) charitable raffles authorized by |
|
Chapter 2002; or |
|
(iii) the state lottery conducted under |
|
Chapter 466, Government Code. |
|
(19) "Gaming" or "gambling" means to deal, operate, |
|
carry on, conduct, maintain, or expose for play a game in a casino |
|
or slot establishment. |
|
(20) "Gaming agreement" means an agreement authorized |
|
under Chapter 2022 or 2023 between this state and a federally |
|
recognized Indian tribe with Indian lands in this state under which |
|
this state allows the tribe to conduct limited gaming activities |
|
authorized under Chapter 2022 or 2023 or applicable federal law. |
|
(21) "Gaming device" means a mechanical, |
|
electromechanical, or electronic contrivance, component, or |
|
machine used in connection with gaming or a game that affects the |
|
result of a wager by determining win or loss. The term includes a |
|
system for processing information that can alter the normal |
|
criteria of random selection, affect the operation of a game, or |
|
determine the outcome of a game. |
|
(22) "Gaming employee": |
|
(A) means an individual directly involved in the |
|
operation or conduct of gaming in a casino or slot establishment |
|
performing a service in a capacity that the commission finds |
|
appropriate for occupational licensing under Section 2022.102 and |
|
includes: |
|
(i) a boxman, a cashier, change personnel, |
|
counting room personnel, a dealer, a floor person, a host empowered |
|
to extend credit or complimentary services, a keno runner, a keno |
|
writer, a machine mechanic, or security personnel; |
|
(ii) a shift or pit boss or a supervisor or |
|
manager involved in gaming activities; |
|
(iii) accounting or internal auditing |
|
personnel directly involved in recordkeeping or the examination of |
|
records generated from gaming activities; and |
|
(iv) a junketeer or other independent agent |
|
whose compensation is based on how much a patron wagers or loses or |
|
who is paid per patron more than the price of admission; and |
|
(B) does not include bartenders, cocktail |
|
waitresses, or other individuals engaged exclusively in preparing |
|
or serving food or beverages or individuals providing nominal, |
|
complimentary, or maintenance services. |
|
(23) "Gross gaming revenue": |
|
(A) means the total of the following, less the |
|
total of all cash paid out as losses to patrons and the amounts paid |
|
to purchase annuities to fund losses paid to patrons by independent |
|
financial institutions and items made deductible as losses under |
|
Section 2022.303: |
|
(i) money received by an owner's license |
|
holder from players of casino games; |
|
(ii) money received by an owner's license |
|
holder in payment for credit extended by the owner's license holder |
|
to a patron for the purposes of casino gaming; and |
|
(iii) compensation received by an owner's |
|
license holder for conducting any game in which the owner's license |
|
holder is not a party to a wager; and |
|
(B) does not include: |
|
(i) counterfeit money or tokens; |
|
(ii) coins of other countries that are |
|
received in slot machines or gaming devices; |
|
(iii) cash taken in fraudulent acts |
|
perpetrated against an owner's license holder for which the holder |
|
is not reimbursed; or |
|
(iv) cash received as entry fees for |
|
contests or tournaments in which the patrons compete for prizes. |
|
(24) "Hearing examiner" means a person authorized by |
|
the commission to conduct hearings. |
|
(25) "Indian lands" means land that was held in trust |
|
by the United States on January 1, 1998, for the benefit of the |
|
Indian tribe pursuant to the Restoration Acts (Pub. L. No. 100-89) |
|
or on which gaming is permitted under the Indian Gaming Regulatory |
|
Act (18 U.S.C. Section 1166 et seq. and 25 U.S.C. Section 2701 et |
|
seq.). |
|
(26) "Institutional investor" means a person, other |
|
than a state or federal pension plan, that meets the requirements of |
|
a "qualified institutional buyer" as defined in 17 C.F.R. Section |
|
230.144A and is: |
|
(A) a bank as defined in Section 3(a)(6), |
|
Securities Exchange Act of 1934 (15 U.S.C. Section 78c); |
|
(B) an insurance company as defined in Section |
|
2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section 80a-2); |
|
(C) an investment company registered under |
|
Section 8, Investment Company Act of 1940 (15 U.S.C. Section |
|
80a-8); |
|
(D) an investment adviser registered under |
|
Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section |
|
80b-3); |
|
(E) a collective trust fund as defined by Section |
|
3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section 80a-3); |
|
(F) an employee benefit plan or pension fund that |
|
is subject to the Employee Retirement Income Security Act of 1974 |
|
(29 U.S.C. Section 1001 et seq.), excluding an employee benefit |
|
plan or pension fund sponsored by a publicly traded corporation |
|
registered with the commission; |
|
(G) a state or federal government pension plan; |
|
(H) a group composed entirely of persons |
|
specified in Paragraphs (A)-(F); or |
|
(I) such other persons as the commission may |
|
determine for reasons consistent with the policies expressed in |
|
Section 2022.001. |
|
(27) "Key executive" means a corporation's directors |
|
and executive officers, a partnership's general partners, a trust's |
|
trustee, a joint venture's managing venturers, and each person |
|
possessing similar responsibilities and authorities in any other |
|
form of business organization. |
|
(28) "License" means a license issued under this |
|
subtitle, including a casino owner's license, a casino operator's |
|
license, a slot establishment owner's license, a slot establishment |
|
operator's license, an occupational license, a casino service |
|
license, a manufacturer's license, a slot machine provider license, |
|
or a qualification to hold an equity interest or creditor interest |
|
in a casino owner's or slot establishment owner's license. |
|
(29) "License holder" means a person holding a license |
|
issued under this subtitle. |
|
(30) "Manufacturer license holder" means the holder of |
|
a manufacturer's license. |
|
(31) "Manufacturer's license" means a license issued |
|
under Section 2022.151. |
|
(32) "Negotiable instrument" means a writing that |
|
evidences a transaction between an individual and a casino or slot |
|
establishment owner's license holder at the time of the transaction |
|
whose gaming chips, tokens, or currency are exchanged for the |
|
instrument and includes a writing taken in consolidation, |
|
redemption, or payment of a prior instrument. |
|
(33) "Net slot income" means the total amount of money |
|
paid to play slot machines at a slot establishment less the value of |
|
all credits redeemed for money, including any progressive prizes |
|
and bonuses, by the players of the slot games. The following |
|
provisions apply to the calculation of net slot income: |
|
(A) the costs associated with progressive prizes |
|
may not be deducted from the total amount of money paid to play the |
|
games for purposes of determining net slot income; and |
|
(B) promotional prizes offered by a slot |
|
establishment may not be deducted or otherwise considered credits |
|
redeemed for money by players. |
|
(34) "Occupational license" means a license issued |
|
under Section 2022.102. |
|
(35) "Occupational license holder" means the holder of |
|
an occupational license. |
|
(36) "Operator's license" means a casino operator's |
|
license issued under Section 2022.101 or a slot establishment |
|
operator's license issued under Section 2022.202. |
|
(37) "Operator license holder" means the holder of an |
|
operator's license. |
|
(38) "Owner's license" means a casino owner's license |
|
issued under Section 2022.052 or a slot establishment owner's |
|
license issued under Section 2022.202. |
|
(39) "Owner's license holder" means a person holding |
|
an owner's license. |
|
(40) "Pari-mutuel license holder" means a person |
|
licensed to conduct wagering on a greyhound race or a horse race |
|
under the Texas Racing Act (Article 179e, Vernon's Texas Civil |
|
Statutes). |
|
(41) "Player" means a person who contributes any part |
|
of the consideration to play a gambling game. |
|
(42) "Principal manager" means a person who, as |
|
determined under the rules of the commission, holds or exercises |
|
managerial, supervisory, or policy-making authority over the |
|
management or operation of a gaming activity or casino service that |
|
in the judgment of the commission warrants the occupational |
|
licensing as a principal manager for the protection of the public |
|
interest. The term includes a key executive of a license holder |
|
that is a company and each person controlling a license holder that |
|
is a company. |
|
(43) "Race book" means wagers accepted on the outcome |
|
of an event held at a greyhound or horse racetrack that uses the |
|
pari-mutuel system of wagering. |
|
(44) "Racetrack" means a racetrack as defined by |
|
Section 1.03, Texas Racing Act (Article 179e, Vernon's Texas Civil |
|
Statutes), that is conducting live racing or simulcasting under an |
|
active pari-mutuel license. |
|
(45) "Slot establishment" means premises at which the |
|
operation of slot machines is authorized by the commission under |
|
this subtitle in accordance with a license or gaming agreement. |
|
(46) "Slot establishment operator's license" means a |
|
license issued under Section 2022.202. |
|
(47) "Slot establishment operator's license holder" |
|
means a person holding a slot establishment operator's license. |
|
(48) "Slot establishment owner's license" means a |
|
license issued under Section 2022.202. |
|
(49) "Slot establishment owner's license holder" means |
|
a person holding a slot establishment owner's license. |
|
(50) "Slot machine" means a mechanical, electrical, or |
|
other device or machine that, on insertion of a coin, token, or |
|
similar object or on payment of consideration, is available to play |
|
or operate, the play or operation of which, wholly or partly by the |
|
element of chance, may deliver or entitle the person playing or |
|
operating the machine to receive cash, premiums, merchandise, |
|
tokens, or any other thing of value, whether the payoff is made |
|
automatically from the machine or is made in another manner. |
|
Sec. 2021.002. APPLICATION OF SUNSET ACT. (a) The Texas |
|
Gaming Commission is subject to Chapter 325, Government Code (Texas |
|
Sunset Act). Unless continued in existence as provided by that |
|
chapter, the commission is abolished September 1, 2021. |
|
(b) On the date the commission is abolished under Subsection |
|
(a), the following statutes are repealed: |
|
(1) this chapter; |
|
(2) Chapter 2022; |
|
(3) Chapter 2023; and |
|
(4) the Texas Racing Act (Article 179e, Vernon's Texas |
|
Civil Statutes). |
|
Sec. 2021.003. REFERENCES TO LICENSE INCLUDE CERTIFICATE OF |
|
REGISTRATION OR OTHER APPROVAL. Except as expressly provided by |
|
this subtitle, other law, or commission rule, a reference in this |
|
subtitle to a license applies to a certificate of registration, |
|
finding of suitability, or other affirmative regulatory approval |
|
under this subtitle, other law, or commission rule. |
|
Sec. 2021.004. EXEMPTION FROM TAXATION. A political |
|
subdivision of this state may not impose: |
|
(1) a tax on the payment of a prize under Chapter 2023; |
|
(2) a tax, fee, or other assessment on consideration |
|
paid to play a gambling game authorized by this subtitle; or |
|
(3) a tax or fee on attendance at or admission to a |
|
casino or slot establishment authorized by this subtitle unless |
|
specifically authorized by statute. |
|
[Sections 2021.005-2021.050 reserved for expansion] |
|
SUBCHAPTER B. TEXAS GAMING COMMISSION |
|
Sec. 2021.051. COMMISSION; MEMBERSHIP. (a) The Texas |
|
Gaming Commission is composed of five members appointed by the |
|
governor with the advice and consent of the senate. |
|
(b) Appointments to the commission shall be made without |
|
regard to the race, color, disability, sex, religion, age, or |
|
national origin of the appointee. |
|
Sec. 2021.052. QUALIFICATIONS OF COMMISSION MEMBERS. (a) |
|
To be eligible for appointment to the commission, a person: |
|
(1) must be a citizen of the United States; |
|
(2) must have resided in this state for the two years |
|
preceding the date of the person's appointment; |
|
(3) must submit a financial statement that contains |
|
the information required by Chapter 572, Government Code; |
|
(4) may not own a financial or other interest in a |
|
person engaged in the conduct of gaming or the provision of casino |
|
services, or in a security issued by that person, or be related |
|
within the second degree by affinity or the third degree by |
|
consanguinity, as determined under Chapter 573, Government Code, to |
|
an individual who owns such a financial or other interest or |
|
security; |
|
(5) may not be an applicant for or holder of a license, |
|
certificate of registration, finding of suitability, or other |
|
affirmative regulatory approval under a law administered by the |
|
commission or hold an equity interest or creditor interest in an |
|
owner's license holder requiring qualification under Section |
|
2022.060; and |
|
(6) may not be a member of the governing body of a |
|
political subdivision of this state. |
|
(b) A person holding an elective office or an officer or |
|
official of a political party is not eligible for appointment to the |
|
commission. |
|
Sec. 2021.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a) |
|
In this section, "Texas trade association" means a 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) A person may not be a member of the commission or an |
|
employee of the commission employed in a "bona fide executive, |
|
administrative, or professional capacity," as that phrase is used |
|
for purposes of establishing an exemption to the overtime |
|
provisions of the federal Fair Labor Standards Act of 1938 (29 |
|
U.S.C. Section 201 et seq.) if: |
|
(1) the person is an officer, employee, manager, or |
|
paid consultant of a Texas trade association in the field of gaming; |
|
or |
|
(2) the person's spouse is an officer, manager, or paid |
|
consultant of a Texas trade association in the field of gaming. |
|
(c) A person may not be a member of the commission or act as |
|
general counsel to the commission if the person is required to |
|
register as a lobbyist under Chapter 305, Government Code, because |
|
of the person's activities for compensation on behalf of a |
|
profession related to the operation of the commission. |
|
Sec. 2021.054. TERMS; VACANCIES. (a) Members of the |
|
commission serve staggered six-year terms, with the term or terms |
|
of one or two members expiring February 1 of each odd-numbered year. |
|
(b) The governor shall fill a vacancy in a position on the |
|
commission for the remainder of the unexpired term. |
|
Sec. 2021.055. PRESIDING OFFICER. The governor shall |
|
designate a member of the commission as presiding officer of the |
|
commission to serve in that capacity at the pleasure of the |
|
governor. |
|
Sec. 2021.056. MEETINGS; OFFICIAL RECORD. (a) The |
|
commission shall meet not less than six times each year. |
|
(b) The commission may meet at other times at the call of the |
|
presiding officer or as provided by commission rule. |
|
(c) The commission shall keep an official record of all |
|
commission meetings and proceedings. |
|
Sec. 2021.057. GROUNDS FOR REMOVAL. (a) It is a ground for |
|
removal from the commission that a member: |
|
(1) does not have at the time of taking office the |
|
qualifications required by Section 2021.052; |
|
(2) does not maintain during service on the commission |
|
the qualifications required by Section 2021.052; |
|
(3) is ineligible for membership under Section |
|
2021.053; |
|
(4) cannot, because of illness or disability, |
|
discharge the member's duties for a substantial part of the member's |
|
term; 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 without an excuse approved by a 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 executive director has knowledge that a potential |
|
ground for removal of a commission member exists, the executive |
|
director shall notify the presiding officer of the commission of |
|
the potential ground. The presiding officer shall then notify the |
|
governor and the attorney general that a potential ground for |
|
removal exists. If the potential ground for removal involves the |
|
presiding officer, the executive director shall notify the next |
|
highest officer of the commission, who shall notify the governor |
|
and the attorney general that a potential ground for removal |
|
exists. |
|
Sec. 2021.058. TRAINING. (a) A person who is appointed to |
|
and qualifies for office as a member of the commission may not vote, |
|
deliberate, or be counted as a member in attendance at a meeting of |
|
the commission until the person completes a training program that |
|
complies with this section. |
|
(b) The training program must provide the person with |
|
information regarding: |
|
(1) this subtitle and the other laws administered by |
|
the commission; |
|
(2) the commission's programs, functions, rules, and |
|
budget; |
|
(3) the results of the most recent formal audit of the |
|
commission; |
|
(4) the requirements of laws relating to open |
|
meetings, public information, administrative procedure, and |
|
conflict of interest; and |
|
(5) any applicable ethics policies adopted by the |
|
commission or the Texas Ethics Commission. |
|
(c) A person appointed to the commission is entitled to |
|
reimbursement, as provided by the General Appropriations Act, for |
|
travel expenses incurred in attending the training program |
|
regardless of whether the attendance at the program occurs before |
|
or after the person qualifies for office. |
|
Sec. 2021.059. QUALIFICATIONS AND STANDARDS OF CONDUCT |
|
INFORMATION. The executive director or the executive director's |
|
designee shall provide to members of the commission, as often as |
|
necessary, information regarding their: |
|
(1) qualifications for office under this chapter; and |
|
(2) responsibilities under applicable laws relating |
|
to standards of conduct for state officers. |
|
Sec. 2021.060. BOND. (a) Before assuming the duties of |
|
office, a member of the commission must execute a bond in the amount |
|
of $25,000 payable to the state and conditioned on the member's |
|
faithful performance of the member's duties of office. |
|
(b) The bond must be approved by the governor. |
|
(c) The cost of the bond shall be paid by the commission. |
|
Sec. 2021.061. PROHIBITION OF CERTAIN ACTIVITIES. (a) A |
|
member of the commission may not: |
|
(1) use the member's official authority to affect the |
|
result of an election or nomination for public office; or |
|
(2) directly or indirectly coerce, attempt to coerce, |
|
command, or advise a person to pay, lend, or contribute anything of |
|
value to another person for political purposes. |
|
(b) A commission member or the spouse of a commission member |
|
may not solicit or accept employment from a license, certificate of |
|
registration, finding of suitability, or approval holder under a |
|
law administered by the commission or from an applicant for a |
|
license, certificate, finding of suitability, or approval before |
|
the second anniversary of the date the commission member's service |
|
on the commission ends. |
|
Sec. 2021.062. APPLICATION OF FINANCIAL DISCLOSURE LAW. |
|
For purposes of Chapter 572, Government Code, a member of the |
|
commission, the executive director, and the division directors are |
|
appointed officers of a major state agency. |
|
Sec. 2021.063. PER DIEM; EXPENSES. (a) A member of the |
|
commission is entitled to: |
|
(1) a per diem in an amount prescribed by |
|
appropriation for each day spent in performing the duties of the |
|
member; and |
|
(2) reimbursement for actual and necessary expenses |
|
incurred in performing those duties. |
|
(b) Reimbursement for expenses under this section is |
|
subject to any applicable limitation in the General Appropriations |
|
Act. |
|
Sec. 2021.064. EXECUTIVE DIRECTOR. (a) The commission |
|
shall appoint an executive director, who serves at the pleasure of |
|
the commission. |
|
(b) A person holding an elective office or an officer or |
|
official of a political party is not eligible for appointment as |
|
executive director. |
|
(c) The executive director must have five or more years of |
|
responsible administrative experience in public or business |
|
administration or possess broad management skills. |
|
(d) The executive director may not pursue any other business |
|
or occupation or hold any other office for profit. |
|
(e) The executive director must meet all eligibility |
|
requirements relating to members of the commission, except the |
|
requirement for prior residency in this state. |
|
(f) The executive director is entitled to an annual salary |
|
and other compensation specified by the commission. |
|
(g) The executive director may not, before the second |
|
anniversary of the date the director's service to the commission |
|
ends, acquire a direct or indirect interest in or be employed by a |
|
person licensed or registered by the commission in connection with |
|
the conduct of gaming or the provision of casino services in this |
|
state. |
|
Sec. 2021.065. OFFICES. The commission shall maintain its |
|
primary office in Travis County and may maintain other offices |
|
determined to be necessary by the commission. |
|
Sec. 2021.066. AUTHORITY TO SUE OR BE SUED. (a) The |
|
commission may sue and be sued. |
|
(b) Service of process in a suit against the commission may |
|
be secured by serving the executive director. |
|
(c) A suit against the commission must be brought in Travis |
|
County. |
|
Sec. 2021.067. AUDIT. The transactions of the commission |
|
are subject to audit by the state auditor under Chapter 321, |
|
Government Code. |
|
[Sections 2021.068-2021.100 reserved for expansion] |
|
SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION |
|
Sec. 2021.101. GENERAL POWERS. (a) The commission has |
|
broad authority and shall exercise strict control and close |
|
supervision over all activities authorized and conducted in this |
|
state under a law administered by the commission, including: |
|
(1) this subtitle; and |
|
(2) the Texas Racing Act (Article 179e, Vernon's Texas |
|
Civil Statutes). |
|
(b) The commission shall ensure that all casino games, slot |
|
machine gaming, and other gaming activities subject to the |
|
oversight or regulatory authority of the commission are conducted |
|
fairly and in compliance with the law. |
|
(c) The commission also has the powers and duties granted |
|
under: |
|
(1) Chapter 2022; |
|
(2) Chapter 2023; and |
|
(3) the Texas Racing Act (Article 179e, Vernon's Texas |
|
Civil Statutes). |
|
(d) All aspects of this subtitle and the other laws |
|
administered by the commission, including those relating to |
|
licensing, qualification, execution, and enforcement, shall be |
|
administered by the executive director and the commission for the |
|
protection of the public and in the public interest. |
|
(e) The commission and the executive director have full |
|
power and authority to hold hearings and, in connection with the |
|
hearings, to issue subpoenas, to compel the attendance of witnesses |
|
at any place in this state, to administer oaths, and to require |
|
testimony under oath. Any process or notice relating to a hearing |
|
may be served in the manner provided for service of process and |
|
notices in civil actions. The commission and the executive |
|
director may pay transportation and other expenses of witnesses as |
|
they consider reasonable. |
|
(f) The executive director and the executive director's |
|
authorized employees may: |
|
(1) inspect and examine a premises where gaming is |
|
conducted or equipment or supplies, including an electronic or |
|
other gaming device, or associated equipment is manufactured, |
|
assembled, produced, programmed, sold, leased, marketed, |
|
distributed, repaired, or modified for use in gaming; |
|
(2) for good cause, seize and remove from a premises |
|
and impound equipment or supplies for the purpose of examination |
|
and inspection; and |
|
(3) demand access to, inspect, examine, photocopy, or |
|
audit papers, books, and records of applicants and license and |
|
certificate holders, on their premises or elsewhere as practicable, |
|
in the presence of the license or certificate holder or the license |
|
or certificate holder's agent, reporting the gross income produced |
|
by a gaming business, verification of the gross income, and other |
|
matters affecting the enforcement of this subtitle or other law |
|
administered by the commission. |
|
(g) For the purpose of conducting audits after the cessation |
|
of gaming by a license or certificate holder, a former license |
|
holder shall furnish, on demand of the executive director or the |
|
executive director's authorized employees, books, papers, and |
|
records as necessary to conduct the audits. The former license or |
|
certificate holder shall maintain all books, papers, and records |
|
necessary for audits for three years after the date of the surrender |
|
or revocation of the license or certificate and is responsible for |
|
the costs incurred by the commission in the conduct of an audit |
|
under this section. If the former license or certificate holder |
|
seeks judicial review of a deficiency determination or files a |
|
petition for a redetermination, the former license or certificate |
|
holder must maintain all books, papers, and records until a final |
|
order is entered on the determination. |
|
(h) The commission shall contract with an independent |
|
testing laboratory to scientifically test and technically evaluate |
|
casino games, slot machine games, and associated equipment for |
|
compliance with this subtitle. The independent testing laboratory |
|
must have a national reputation of being demonstrably competent and |
|
must be qualified to scientifically test and evaluate all |
|
components of casino games, slot machine games, and associated |
|
equipment for compliance with this subtitle and to perform the |
|
functions assigned to it under this subtitle. An independent |
|
testing laboratory may not be owned or controlled by a person |
|
licensed to conduct casino or slot games or to manufacture gaming |
|
equipment. The use of an independent testing laboratory for |
|
purposes related to the conduct of gaming under this subtitle must |
|
be made from a list of one or more laboratories approved by the |
|
commission. |
|
Sec. 2021.102. RULEMAKING AUTHORITY. (a) The commission |
|
shall adopt rules the commission considers necessary or desirable |
|
for the public interest in carrying out the policy and provisions of |
|
this subtitle and the other laws administered by the commission. |
|
(b) The rules shall set out: |
|
(1) the method and form of application that an |
|
applicant for a license or certificate of registration under this |
|
subtitle must follow and complete before consideration of an |
|
application by the commission; |
|
(2) the information to be furnished by an applicant or |
|
license or certificate holder under Chapter 2022 concerning |
|
antecedents, habits, character, associates, criminal record, |
|
business activities, and financial affairs; |
|
(3) the criteria to be used in the award, revocation, |
|
and suspension of licenses or certificates under Chapter 2022; |
|
(4) the information to be furnished by a license or |
|
certificate holder under Chapter 2022 relating to the holder's |
|
employees; |
|
(5) the manner and procedure of hearings conducted by |
|
the commission or a hearing examiner of the commission; |
|
(6) the payment of fees or costs an applicant or |
|
license or certificate holder under Chapter 2022 must pay; |
|
(7) the procedures for the issuance of temporary |
|
licenses and certificates and temporary qualification to hold |
|
equity interests and creditor interests in owner's license and |
|
certificate holders under Chapter 2022; |
|
(8) the manner and method of collection and payment of |
|
fees and the issuance of licenses and certificates; |
|
(9) the definition of "unsuitable method of |
|
operation"; |
|
(10) the conditions under which the nonpayment of a |
|
gambling debt by a license or certificate holder constitutes |
|
grounds for disciplinary action; |
|
(11) the manner of approval of gambling games, slot |
|
machines, and other electronic gaming devices; |
|
(12) access to confidential information obtained |
|
under this chapter, Chapter 2022, Chapter 2023, or other law and |
|
means to ensure that the confidentiality of the information is |
|
maintained and protected; |
|
(13) financial reporting and internal control |
|
requirements for license or certificate holders; |
|
(14) the manner in which money awarded to players of |
|
casino games, compensation from casino games and slot machines, |
|
gross gaming revenue, and net slot income must be computed and |
|
reported under Chapter 2022; |
|
(15) requirements for the annual audit of the |
|
financial statements of a license or certificate holder; |
|
(16) requirements for periodic financial reports from |
|
each license or certificate holder consistent with standards and |
|
intervals prescribed by the commission; |
|
(17) the procedures to be followed by a license or |
|
certificate holder for excluding a person from a casino or slot |
|
establishment; and |
|
(18) the procedures for exempting or waiving |
|
institutional investors from the licensing or registration |
|
requirements for shareholders of publicly traded corporations. |
|
Sec. 2021.103. AUTHORITY OF EXECUTIVE DIRECTOR. (a) With |
|
commission approval, the executive director may create executive |
|
positions as the director considers necessary to implement the |
|
provisions of this chapter, Chapter 2022, Chapter 2023, and any |
|
other law administered by the commission. |
|
(b) The executive director shall employ directors in the |
|
areas of audit, investigation, and enforcement. The audit director |
|
must be a certified public accountant, have five or more years of |
|
progressively responsible experience in general accounting, and |
|
have a comprehensive knowledge of the principles and practices of |
|
corporate finance or must possess qualifications of an expert in |
|
the field of corporate finance and auditing, general finance, |
|
gaming, and economics. Other directors must possess five or more |
|
years of training and experience in the fields of investigation, |
|
law enforcement, law, or gaming. |
|
(c) The executive director may investigate, for the purpose |
|
of prosecution, a suspected criminal violation of this subtitle or |
|
another law administered by the commission. For the purpose of the |
|
administration and enforcement of this subtitle or another law |
|
administered by the commission, the executive director and |
|
employees designated by the executive director may be commissioned |
|
as peace officers. |
|
(d) The executive director, to further the objectives and |
|
purposes of this subtitle or another law administered by the |
|
commission, may: |
|
(1) direct and supervise all administrative actions of |
|
the commission; |
|
(2) bring legal action in the name and on behalf of the |
|
commission; |
|
(3) make, execute, and effect an agreement or contract |
|
authorized by the commission; |
|
(4) employ the services of persons considered |
|
necessary for consultation or investigation and set the salaries of |
|
or contract for the services of legal, professional, technical, and |
|
operational personnel and consultants, except that outside legal |
|
assistance may be retained only with the approval of the attorney |
|
general; |
|
(5) acquire furnishings, equipment, supplies, |
|
stationery, books, and all other things the executive director |
|
considers necessary or desirable in carrying out the executive |
|
director's functions; and |
|
(6) perform other duties the executive director may |
|
consider necessary to effect the purposes of this subtitle or |
|
another law administered by the commission. |
|
(e) Except as otherwise provided in this subtitle, the costs |
|
of administration incurred by the executive director shall be paid |
|
in the same manner as other claims against the state are paid. |
|
Sec. 2021.104. OFFICE OF HEARING EXAMINERS. (a) The |
|
commission shall create an office of hearing examiners to assist |
|
the commission in carrying out its powers and duties. |
|
(b) The office of hearing examiners shall: |
|
(1) hold hearings under the authority of the |
|
commission on matters relating to the commission's administration |
|
of this subtitle or another law administered by the commission as |
|
the commission orders; and |
|
(2) report after hearing in the manner prescribed by |
|
the commission. |
|
(c) The commission shall refer any contested case arising |
|
under this subtitle or another law administered by the commission |
|
to the office of hearing examiners. |
|
(d) The office of hearing examiners is independent of the |
|
executive director and is under the exclusive control of the |
|
commission. |
|
(e) The office of hearing examiners is under the direction |
|
of a chief hearing examiner appointed by the commission. |
|
(f) The commission may authorize the chief hearing examiner |
|
to delegate to one or more hearing examiners the authority to hold |
|
any hearing called by the chief hearing examiner. |
|
(g) The chief hearing examiner and all assistant hearing |
|
examiners employed by the office of hearing examiners must be |
|
attorneys licensed to practice law in this state. |
|
(h) The chief hearing examiner and all assistant hearing |
|
examiners may administer oaths, receive evidence, and issue |
|
subpoenas to compel the attendance of witnesses and the production |
|
of papers and documents in all matters delegated by the commission. |
|
(i) The chief hearing examiner and all assistant hearing |
|
examiners are entitled to an annual salary and other compensation |
|
specified by the commission. |
|
(j) The office of hearing examiners may contract for |
|
additional services it considers necessary to carry out its powers. |
|
Sec. 2021.105. JUDICIAL REVIEW IN CONTESTED CASES. A final |
|
ruling of the commission in a contested case is subject to judicial |
|
review under Chapter 2001, Government Code. Judicial review is |
|
under the substantial evidence rule. |
|
Sec. 2021.106. RECORDS; CONFIDENTIAL INFORMATION. (a) The |
|
executive director shall maintain a file of all applications for |
|
licenses, certificates of registration, findings of suitability, |
|
or approvals under this subtitle or another law administered by the |
|
commission, together with a record of all action taken with respect |
|
to the applications. |
|
(b) The commission and the executive director may maintain |
|
other records they consider desirable. |
|
(c) The information made confidential by this subsection |
|
may be disclosed, wholly or partly, only in the course of the |
|
necessary administration of this subtitle or other law administered |
|
by the commission, under Section 2022.402, or on the order of a |
|
court of competent jurisdiction, except that the executive director |
|
or the commission may disclose the information to an authorized |
|
agent of any agency of the United States, another state, or a |
|
political subdivision of this state authorized under commission |
|
rules. Notice of the content of any information furnished or |
|
released under this subsection may be given to any affected |
|
applicant or license, certificate of registration, finding of |
|
suitability, or approval holder as prescribed by commission rule. |
|
The following information is confidential: |
|
(1) information requested by the commission or the |
|
executive director to be furnished to either of them under this |
|
subtitle or another law administered by the commission or that may |
|
otherwise be obtained relating to the finances, earnings, or |
|
revenue of an applicant or license, certificate, finding of |
|
suitability, or approval holder; |
|
(2) information pertaining to an applicant's criminal |
|
record, antecedents, and background that has been furnished to or |
|
obtained by the commission or the executive director from any |
|
source; |
|
(3) information provided to the commission or the |
|
executive director or a commission employee by a governmental |
|
agency or an informer or on the assurance that the information will |
|
be held in confidence and treated as confidential; |
|
(4) information obtained by the executive director or |
|
the commission from a license, certificate, finding of suitability, |
|
or approval holder, including a casino service license holder, |
|
relating to the manufacturing, modification, or repair of gaming |
|
devices; |
|
(5) security plans and procedures of the commission |
|
designed to ensure the integrity and security of the regulation and |
|
operation of gaming; |
|
(6) the street address and telephone number of a prize |
|
winner, if the prize winner has not consented to the release of the |
|
information; and |
|
(7) information relating to all system operations of |
|
gambling games, including security related to gambling games, and |
|
commission plans and procedures intended to ensure the integrity |
|
and security of the operation of gambling games. |
|
Sec. 2021.107. REPRESENTATION BY ATTORNEY GENERAL. (a) |
|
The attorney general shall represent the commission and the |
|
executive director in any proceeding to which the commission or the |
|
executive director is a party under this subtitle or another law |
|
administered by the commission or in any suit filed against the |
|
commission or executive director. |
|
(b) The office of the attorney general on request shall |
|
advise the commission and the executive director in all other |
|
matters, including representing the commission when the commission |
|
acts in its official capacity. |
|
Sec. 2021.108. RULES RESTRICTING ADVERTISING OR |
|
COMPETITIVE BIDDING. (a) The commission may not adopt rules |
|
restricting advertising or competitive bidding by a person |
|
regulated by the commission except to prohibit false, misleading, |
|
or deceptive practices by that person. |
|
(b) The commission may not include in its rules to prohibit |
|
false, misleading, or deceptive practices by a person regulated by |
|
the commission a rule that: |
|
(1) restricts the use of any advertising medium; |
|
(2) restricts the person's personal appearance or the |
|
use of the person's voice in an advertisement; |
|
(3) relates to the size or duration of an |
|
advertisement by the person; or |
|
(4) restricts the use of a trade name in advertising by |
|
the person. |
|
Sec. 2021.109. RULES ON CONSEQUENCES OF CRIMINAL |
|
CONVICTION. (a) The commission shall adopt rules necessary to |
|
comply with Chapter 53. |
|
(b) In its rules under this section, the commission shall |
|
list the specific offenses for which a conviction would constitute |
|
grounds for the commission to take action under Section 53.021. |
|
Sec. 2021.110. SUBPOENA. (a) The commission may request |
|
and, if necessary, compel by subpoena: |
|
(1) the attendance of a witness for examination under |
|
oath; and |
|
(2) the production for inspection and copying of |
|
records and other evidence relevant to the investigation of an |
|
alleged violation of this subtitle or another law administered by |
|
the commission. |
|
(b) If a person fails to comply with a subpoena issued under |
|
this section, the commission, acting through the attorney general, |
|
may file suit to enforce the subpoena in a district court in Travis |
|
County or in the county in which a hearing conducted by the |
|
commission may be held. |
|
(c) The court shall order a person to comply with the |
|
subpoena if the court determines that good cause exists for issuing |
|
the subpoena. |
|
Sec. 2021.111. DIVISION OF RESPONSIBILITIES. The |
|
commission shall develop and implement policies that clearly |
|
separate the policymaking responsibilities of the commission and |
|
the management responsibilities of the executive director and the |
|
staff of the commission. |
|
Sec. 2021.112. USE OF TECHNOLOGY. The commission shall |
|
implement a policy requiring the commission to use appropriate |
|
technological solutions to improve the commission's ability to |
|
perform its functions. The policy must ensure that the public is |
|
able to interact with the commission on the Internet. |
|
Sec. 2021.113. NEGOTIATED RULEMAKING AND ALTERNATIVE |
|
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and |
|
implement a policy to encourage the use of: |
|
(1) negotiated rulemaking procedures under Chapter |
|
2008, Government Code, for the adoption of commission rules; and |
|
(2) appropriate alternative dispute resolution |
|
procedures under Chapter 2009, Government Code, to assist in the |
|
resolution of internal and external disputes under the commission's |
|
jurisdiction. |
|
(b) The commission's procedures relating to alternative |
|
dispute resolution must conform, to the extent possible, to any |
|
model guidelines issued by the State Office of Administrative |
|
Hearings for the use of alternative dispute resolution by state |
|
agencies. |
|
(c) The commission shall designate a trained person to: |
|
(1) coordinate the implementation of the policy |
|
adopted under Subsection (a); |
|
(2) serve as a resource for any training needed to |
|
implement the procedures for negotiated rulemaking or alternative |
|
dispute resolution; and |
|
(3) collect data concerning the effectiveness of those |
|
procedures, as implemented by the commission. |
|
Sec. 2021.114. COMMITTEES. The commission may appoint |
|
committees that it considers necessary to carry out its duties. |
|
Sec. 2021.115. DIVISIONS. (a) The commission shall |
|
establish separate divisions to oversee and regulate: |
|
(1) casino gaming and slot machine gaming conducted |
|
under Chapters 2022 and 2023; and |
|
(2) pari-mutuel racing. |
|
(b) To facilitate the operations of the commission or a |
|
division of the commission, the commission or executive director |
|
may delegate to a division or a division director a specific power |
|
or duty given to the commission or executive director under this |
|
subtitle or other law. |
|
(c) A division director shall, at the request of the |
|
executive commissioner, assist in the development of rules and |
|
policies for the operation and provision of a division of the |
|
commission. The division director: |
|
(1) acts on behalf of the executive director in |
|
performing the delegated function; and |
|
(2) reports to the executive director regarding the |
|
delegated function and any matter affecting commission programs and |
|
operations. |
|
(d) The commission shall delegate responsibilities in the |
|
administration of Chapter 2022 or 2023 to the executive director, |
|
the director of the appropriate division, and the division's staff, |
|
but may not delegate the following actions: |
|
(1) a final determination in any application or |
|
request for licensing, registration, finding of suitability, or |
|
other affirmative regulatory approval; |
|
(2) a final determination in any proceeding involving |
|
the suspension or revocation of a license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval; |
|
(3) a final determination that Chapter 2022 or 2023 |
|
has been violated; or |
|
(4) a final determination or imposition of an |
|
assessment of fines or penalties. |
|
Sec. 2021.116. CONTRACT AUTHORITY. (a) The commission and |
|
executive director have broad authority and shall exercise strict |
|
control and close supervision over gambling games played in this |
|
state to promote and ensure integrity, security, honesty, and |
|
fairness in the operation and administration of gaming under this |
|
subtitle. |
|
(b) The executive director may contract with or employ a |
|
person to perform a function, activity, or service in connection |
|
with the operation of gaming under this subtitle or another law |
|
administered by the commission as prescribed by the executive |
|
director. A contract relating to the operation of gaming must be |
|
consistent with this subtitle. |
|
(c) The executive director may award a contract for gaming |
|
supplies, equipment, or services, including a contract under |
|
Subsection (b), pending the completion of any investigation and |
|
license, certificate of registration, finding of suitability, or |
|
other affirmative regulatory approval authorized or required by |
|
this subtitle. A contract awarded under this subsection 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 does not satisfy the |
|
applicable requirements for a license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval under this subtitle. |
|
(d) In the acquisition or provision of facilities, |
|
supplies, equipment, materials, or services related to the |
|
implementation of gaming under Chapter 2022 or 2023, the commission |
|
must comply with procurement procedures prescribed under Subtitle |
|
D, Title 10, Government Code. |
|
Sec. 2021.117. INVESTIGATIONS AND ENFORCEMENT. (a) The |
|
attorney general, the district attorney for Travis County, or the |
|
district attorney, criminal district attorney, or county attorney |
|
for the county in which the violation or alleged violation occurred |
|
may investigate a violation or alleged violation of this subtitle |
|
or of the penal laws of this state by the commission, its employees, |
|
or a person regulated under this subtitle. |
|
(b) The commission may investigate violations of this |
|
subtitle and rules adopted under this subtitle or another law |
|
administered by the commission and may file a complaint requesting |
|
that an investigation be conducted as provided by Subsection (a). |
|
Sec. 2021.118. SECURITY. (a) The executive director shall |
|
maintain a department of security in the commission. The executive |
|
director shall appoint a deputy to administer the department. The |
|
deputy must be qualified by training and experience in law |
|
enforcement or security to supervise, direct, and administer the |
|
activities of the department. |
|
(b) The executive director may employ security officers or |
|
investigators as the executive director considers necessary and may |
|
commission security officers or investigators as peace officers. |
|
The deputy and all investigators employed by the department of |
|
security as peace officers must meet the requirements under Chapter |
|
415, Government Code, for employment and commission as peace |
|
officers. |
|
(c) A security officer or investigator employed by the |
|
department of security or a peace officer who is working in |
|
conjunction with the commission or the Department of Public Safety |
|
in the enforcement of this subtitle may: |
|
(1) without a search warrant, search and seize a |
|
gaming device or other gaming equipment that is located on premises |
|
for which a person holds a license issued under this subtitle; or |
|
(2) seize a gaming device or other gaming equipment |
|
that is being used or is in the possession of any person in |
|
violation of this subtitle or another law administered by the |
|
commission. |
|
(d) The Department of Public Safety or any other state or |
|
local law enforcement agency in this state, at the commission's |
|
request and in accordance with an interagency agreement, shall |
|
perform a full criminal background investigation of a prospective |
|
deputy or investigator of the department of security. The |
|
commission shall reimburse the agency for the actual costs of an |
|
investigation. |
|
(e) At least once every two years, the executive director |
|
shall employ an independent firm that is experienced in security, |
|
including computer security and systems security, to conduct a |
|
comprehensive study of all aspects of gaming security. |
|
Sec. 2021.119. DEMOGRAPHIC STUDIES. (a) The executive |
|
director shall, every two years, employ an independent firm |
|
experienced in demographic analysis to conduct a demographic study |
|
of players of gambling games. The study must include the income, |
|
age, sex, race, education, and frequency of participation of |
|
players of the games. |
|
(b) The executive director shall report the results of the |
|
demographic study to the commission, the governor, and the |
|
legislature before January 1 of each odd-numbered year. |
|
Sec. 2021.120. PROHIBITED GAMES. (a) Except as provided by |
|
this subtitle or other law, the executive director or any other |
|
person may not establish or operate a gambling game in which the |
|
winner is chosen on the basis of the outcome of a sports event. |
|
(b) Except as provided by Chapter 2001 or this subtitle, the |
|
operation of any game using a slot machine or other gambling device |
|
that is not authorized under this subtitle is prohibited. |
|
(c) In this section, "sports event" means a football, |
|
basketball, baseball, or similar game, a boxing or martial arts |
|
match, or a horse or dog race on which pari-mutuel wagering is |
|
allowed. |
|
Sec. 2021.121. REPORTS OF NET SLOT INCOME. The executive |
|
director shall prepare a monthly report of the total net slot income |
|
for all slot establishments for the preceding month. |
|
Sec. 2021.122. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a) |
|
Except as otherwise provided by this subtitle, all files, records, |
|
information, compilations, documents, photographs, reports, |
|
summaries, and reviews of information and related matters |
|
collected, retained, or compiled by the Department of Public Safety |
|
in the discharge of its duties under this subtitle are confidential |
|
and are not subject to public disclosure. Each of those items is |
|
subject to discovery by a person that is the subject of the item. |
|
(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 and is subject to |
|
discovery by a person that is the subject of the investigation |
|
report or other document. |
|
(c) Information that is in the form available to the public |
|
is not privileged or confidential under this section and is subject |
|
to public disclosure. |
|
Sec. 2021.123. CRIMINAL HISTORY INVESTIGATION FOR GAMING. |
|
(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 any person |
|
directly involved with gaming regulated under this subtitle. |
|
(b) Except as otherwise provided by this subtitle, a |
|
criminal history investigation is governed by commission rules |
|
adopted under this chapter. As applicable, the commission shall |
|
consider information obtained through a criminal history |
|
investigation conducted under the Texas Racing Act (Article 179e, |
|
Vernon's Texas Civil Statutes). |
|
(c) The Department of Public Safety or a state or local law |
|
enforcement agency in this state, in accordance with an interagency |
|
agreement with the commission, shall provide any assistance |
|
requested by the commission in the administration and enforcement |
|
of this subtitle, including conducting background investigations |
|
of a person seeking a license, certificate of registration, finding |
|
of suitability, or other affirmative regulatory approval required |
|
under this subtitle or of any person required to be named in an |
|
application for a license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval under this |
|
subtitle. |
|
(d) This section does not limit the commission's right to |
|
obtain criminal history record information from any other local, |
|
state, or federal agency. The commission may enter into a |
|
confidentiality agreement with the agency as necessary and proper. |
|
(e) Except as otherwise provided by this subtitle or other |
|
law, criminal history record information obtained by the commission |
|
under this section may be disclosed only: |
|
(1) to another law enforcement agency to assist in or |
|
further an investigation related to the commission's operation and |
|
oversight of gaming; or |
|
(2) under a court order. |
|
Sec. 2021.124. PLAYER AGREEMENT TO ABIDE BY RULES AND |
|
INSTRUCTIONS. By participating as a player in a gambling game, a |
|
player agrees to abide by and be bound by the commission's rules and |
|
instructions, including the rules or instructions applicable to the |
|
particular gambling game involved. The player also acknowledges |
|
that the determination of whether the player is a valid winner is |
|
subject to: |
|
(1) the commission's rules, instructions, and claims |
|
procedures, including those developed for the particular gambling |
|
game involved; |
|
(2) any validation tests established by the commission |
|
for the particular gambling game involved; and |
|
(3) the limitations and other provisions prescribed by |
|
this subtitle. |
|
Sec. 2021.125. 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 subtitle; |
|
(2) an offense under the Penal Code, if the accused: |
|
(A) is regulated under this subtitle; and |
|
(B) is alleged to have committed the offense |
|
while engaged in gaming activities; or |
|
(3) an offense under Title 7 or 11, Penal Code, that |
|
involves property consisting of or including a gaming device or |
|
gambling game prize. |
|
[Sections 2021.126-2021.150 reserved for expansion] |
|
SUBCHAPTER D. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES |
|
Sec. 2021.151. PUBLIC INTEREST INFORMATION. (a) The |
|
commission shall prepare and disseminate consumer information that |
|
describes the regulatory functions of the commission and the |
|
procedures by which consumer complaints are filed with and resolved |
|
by the commission. |
|
(b) The commission shall make the information available to |
|
the public and appropriate state agencies. |
|
Sec. 2021.152. COMPLAINTS. (a) The commission by rule |
|
shall establish methods by which consumers and service recipients |
|
are notified of the name, mailing address, and telephone number of |
|
the commission for the purpose of directing complaints to the |
|
commission. The commission may provide for that notice: |
|
(1) on each form, application, or written contract for |
|
services of a person regulated under a law administered by the |
|
commission; |
|
(2) on a sign prominently displayed in the place of |
|
business of each person regulated under a law administered by the |
|
commission; or |
|
(3) in a bill for service provided by a person |
|
regulated under a law administered by the commission. |
|
(b) The commission shall list with its regular telephone |
|
number any toll-free telephone number established under other state |
|
law that may be called to present a complaint about a person |
|
regulated under a law administered by the commission. |
|
Sec. 2021.153. RECORDS OF COMPLAINTS. (a) The commission |
|
shall maintain a system to promptly and efficiently act on |
|
complaints filed with the commission. The commission shall |
|
maintain: |
|
(1) information about the parties to the complaint and |
|
the subject matter of the complaint; |
|
(2) a summary of the results of the review or |
|
investigation of the complaint; and |
|
(3) information about the disposition of the |
|
complaint. |
|
(b) The commission shall make information available |
|
describing its procedures for complaint investigation and |
|
resolution. |
|
(c) The commission shall periodically notify the parties of |
|
the status of the complaint until final disposition of the |
|
complaint. |
|
Sec. 2021.154. GENERAL RULES REGARDING COMPLAINT |
|
INVESTIGATION AND DISPOSITION. The commission shall adopt rules |
|
concerning the investigation of a complaint filed with the |
|
commission. The rules must: |
|
(1) distinguish between categories of complaints; |
|
(2) ensure that complaints are not dismissed without |
|
appropriate consideration; |
|
(3) require that the commission be advised of a |
|
complaint that is dismissed and that a letter be sent to the person |
|
who filed the complaint explaining the action taken on the |
|
dismissed complaint; |
|
(4) ensure that the person who files a complaint has an |
|
opportunity to explain the allegations made in the complaint; and |
|
(5) prescribe guidelines concerning the categories of |
|
complaints that require the use of a private investigator and the |
|
procedures for the commission to obtain the services of a private |
|
investigator. |
|
Sec. 2021.155. DISPOSITION OF COMPLAINT. (a) The |
|
commission shall: |
|
(1) dispose of each complaint in a timely manner; and |
|
(2) establish a schedule for conducting each phase of |
|
a complaint that is under the control of the commission not later |
|
than the 30th day after the date the commission receives the |
|
complaint. |
|
(b) Each party shall be notified of the projected time |
|
requirements for pursuing the complaint. The commission shall |
|
notify each party to the complaint of any change in the schedule |
|
established under Subsection (a)(2) not later than the seventh day |
|
after the date the change is made. |
|
(c) The executive director shall notify the commission of a |
|
complaint that is not resolved within the time prescribed by the |
|
commission for resolving the complaint. |
|
Sec. 2021.156. PUBLIC PARTICIPATION. (a) The commission |
|
shall develop and implement policies that provide the public with a |
|
reasonable opportunity to appear before the commission and to speak |
|
on any issue under the commission's jurisdiction. |
|
(b) The commission shall prepare and maintain a written plan |
|
that describes how a person who does not speak English may be |
|
provided reasonable access to the commission's programs. |
|
Sec. 2021.157. INFORMAL SETTLEMENT CONFERENCE. The |
|
commission shall establish guidelines for an informal settlement |
|
conference related to a complaint filed with the commission. |
|
CHAPTER 2022. CASINO AND SLOT GAMING |
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
Sec. 2022.001. PUBLIC POLICY. (a) All casino gaming that |
|
is conducted in this state and that is authorized by law shall be |
|
regulated and licensed under this chapter, unless federal law or |
|
another state law specifically provides otherwise. |
|
(b) The legislature hereby finds, and declares it to be the |
|
public policy of this state, that: |
|
(1) the development of regulated limited casino gaming |
|
in the state will benefit the general welfare of the people of this |
|
state by enhancing investment, development, and tourism in this |
|
state, resulting in new jobs and additional revenues to the state; |
|
(2) the conduct of regulated casino gaming in a |
|
limited number of casinos and slot establishments will not harm the |
|
people of this state; |
|
(3) the regulation of gaming in this state is |
|
important to ensure that gaming is: |
|
(A) conducted honestly and competitively; and |
|
(B) free from criminal and corruptive elements; |
|
(4) public confidence and trust can be maintained only |
|
by strict regulation of all persons, locations, practices, |
|
associations, and activities related to the conduct of gaming and |
|
the casino service industry; |
|
(5) persons owning any direct or indirect material |
|
interest in a casino should be licensed and controlled to protect |
|
the public health, safety, morals, good order, and general welfare |
|
of the people of this state; |
|
(6) certain operators and employees of casinos and |
|
slot establishments should be regulated, licensed, and controlled |
|
to accomplish and promote these public policies while protecting |
|
the public health, safety, morals, good order, and general welfare |
|
of the people of this state; |
|
(7) certain persons engaging in the casino service |
|
industry should be regulated, licensed, and controlled to |
|
accomplish and promote these public policies while protecting the |
|
public health, safety, morals, good order, and general welfare of |
|
the people of this state; and |
|
(8) it is the intent of this chapter, where possible, |
|
to use the resources, goods, labor, and services of the people of |
|
this state in the ownership, operation, and construction of casinos |
|
and slot establishments and related amenities to the extent |
|
allowable by law. |
|
Sec. 2022.002. EXEMPTION FROM FEDERAL STATUTES. (a) Under |
|
Section 2, 64 Stat. 1134 (15 U.S.C. Section 1172), this state |
|
declares that this state is exempt from that section. |
|
(b) All shipments of gaming devices into this state, |
|
including slot machines, conducted in compliance with the |
|
applicable provisions of 15 U.S.C. Sections 1173 and 1174 are legal |
|
shipments of the devices into this state. |
|
Sec. 2022.003. CONSTRUCTION; APPLICABILITY OF OTHER LAWS. |
|
(a) Nothing in this chapter may be construed to implicitly repeal |
|
or modify existing state laws with respect to gambling, except that |
|
gaming devices or slot machines are not prohibited by another law if |
|
conducted as authorized under this chapter. |
|
(b) To the extent of any inconsistency between Chapter 2003, |
|
Government Code, and this chapter or a commission rule governing |
|
gaming devices, this chapter or the commission rule controls in all |
|
matters related to gaming devices, including hearings before the |
|
State Office of Administrative Hearings. |
|
Sec. 2022.004. AUTHORITY TO IMPLEMENT GAMING. (a) The |
|
commission may implement gaming in accordance with this subtitle |
|
and, for a slot establishment at a racetrack, the Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes). This chapter |
|
supersedes any conflicting or inconsistent provision of the Texas |
|
Racing Act. |
|
(b) The commission shall allow the operation of gaming |
|
pursuant to this subtitle at locations on Indian lands in |
|
accordance with an effective gaming agreement and in compliance |
|
with applicable federal law. |
|
Sec. 2022.005. RULES FOR ADDITIONAL QUALIFICATIONS. The |
|
commission by rule may establish other license, certificate of |
|
registration, finding of suitability, or approval qualifications |
|
under this chapter that the commission determines are in the public |
|
interest and consistent with the declared policy of this state. |
|
Sec. 2022.006. IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR |
|
INVESTIGATION. Any written or oral statement made in the course of |
|
an official commission proceeding or investigative activities |
|
related to an application for commission licensing, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval under this chapter, by any member or agent of |
|
the commission or any witness testifying under oath, that is |
|
relevant to the purpose of the proceeding is absolutely privileged |
|
and does not impose liability for defamation or constitute a ground |
|
for recovery in any civil action. |
|
Sec. 2022.007. FINDING OF SUITABILITY. To promote the |
|
integrity and security of gaming under this subtitle, the |
|
commission in its discretion may require a finding of suitability |
|
for any person doing business with or in relation to the operation |
|
of gaming who is not otherwise required to obtain a license, |
|
certificate of registration, or other affirmative regulatory |
|
approval from the commission for the person's gaming-related |
|
operations. |
|
Sec. 2022.008. CONSENT TO COMMISSION DETERMINATION. (a) |
|
An application for a license, certificate of registration, finding |
|
of suitability, or other affirmative regulatory approval under this |
|
chapter constitutes a request to the commission for a decision on |
|
the applicant's general suitability, character, integrity, and |
|
ability to participate or engage in or be associated with gaming |
|
under this chapter in the manner or position sought. |
|
(b) By filing an application with the commission, the |
|
applicant specifically consents to the commission's decision at the |
|
commission's election when the application, after filing, becomes |
|
moot for any reason other than death. |
|
Sec. 2022.009. ABSOLUTE AUTHORITY OF COMMISSION. To |
|
protect the integrity of gaming under this subtitle or the public |
|
health, welfare, or safety, or to prevent financial loss to this |
|
state, the commission has full and absolute power and authority to: |
|
(1) deny any application or limit, condition, |
|
restrict, revoke, or suspend any license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval; and |
|
(2) fine any person licensed, registered, found |
|
suitable, or approved for any cause considered reasonable by the |
|
commission. |
|
Sec. 2022.010. LICENSING, REGISTRATION, SUITABILITY, AND |
|
REGULATORY APPROVAL AS REVOCABLE PERSONAL PRIVILEGES. (a) An |
|
applicant for a license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval under this |
|
chapter does not have any right to the license, certificate of |
|
registration, finding of suitability, or approval sought. |
|
(b) Any license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval granted |
|
under this chapter is a revocable privilege, and a holder of the |
|
privilege does not acquire any vested right in or under the |
|
privilege. |
|
(c) The courts of this state do not have jurisdiction to |
|
review a decision to deny, limit, or condition the license, |
|
certificate of registration, finding of suitability, or approval |
|
unless the judicial review is sought on the ground that the denial, |
|
limitation, or condition is based on a suspect classification, such |
|
as race, color, religion, sex, or national origin, in violation of |
|
the Equal Protection Clause of the Fourteenth Amendment to the |
|
United States Constitution. The state court must affirm the |
|
commission's action unless the violation is proven by clear and |
|
convincing evidence. If a state court has jurisdiction over a claim |
|
under this section, then this state's sovereign immunity is waived |
|
only to the extent expressly provided by Section 2022.410. |
|
(d) A license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval granted or |
|
renewed under this chapter may not be transferred or assigned to |
|
another person unless approved in advance by the commission, and a |
|
license, certificate, finding of suitability, or approval may not |
|
be pledged as collateral. The purchaser or successor of a person |
|
who has been granted a license, certificate, finding of |
|
suitability, or approval must independently qualify for a license, |
|
certificate, finding of suitability, or approval required by this |
|
chapter. |
|
(e) The following acts void the license, certificate, |
|
finding of suitability, or other affirmative regulatory approval of |
|
the holder unless approved in advance by the commission: |
|
(1) the transfer, sale, or other disposition of an |
|
interest in the holder that results in a change in the identity of |
|
an equity or creditor interest holder; or |
|
(2) the sale of the assets of the holder, other than |
|
assets bought and sold in the ordinary course of business, or any |
|
interest in the assets, to any person not already determined to have |
|
met the applicable qualifications of this chapter. |
|
Sec. 2022.011. PRIZE RULES, PAYMENT, AND REDEMPTION. (a) |
|
The commission shall adopt rules governing: |
|
(1) the amount a player may be charged to play a |
|
gambling game; and |
|
(2) the prizes and credits that may be awarded to the |
|
player of a gambling game. |
|
(b) Payment of prizes is the sole and exclusive |
|
responsibility of the casino or slot establishment, as applicable. |
|
A prize may not be paid by the commission or this state except as |
|
otherwise authorized. |
|
(c) Nothing in this chapter limits the ability of a casino |
|
or slot establishment to provide promotional prizes, including wide |
|
area progressive networks, in addition to prize payouts regulated |
|
by the commission. |
|
(d) The commission shall enact rules consistent with this |
|
section governing the use and redemption of prizes and credits |
|
recorded on player account records, such as players' club cards and |
|
smart cards. |
|
Sec. 2022.012. REPORT ON LITIGATION. (a) A casino or slot |
|
establishment shall report to the commission any litigation |
|
relating to the casino or slot establishment, including a criminal |
|
proceeding, a proceeding involving an issue related to racing |
|
activities that impact slot machine operations, or a matter related |
|
to character or reputation relevant to a person's suitability under |
|
this chapter. |
|
(b) The report required under Subsection (a) must be filed |
|
not later than the fifth day after the date the owner or operator |
|
acquires knowledge of the litigation. |
|
Sec. 2022.013. COMMISSION APPROVAL REQUIRED FOR PROCEDURES |
|
AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a) The commission's |
|
approval is required for all internal procedures and administrative |
|
and accounting controls of a casino owner or operator or a slot |
|
establishment owner or operator. |
|
(b) The commission by rule shall establish general |
|
accounting and auditing requirements and internal control |
|
standards for casinos and slot establishments. |
|
Sec. 2022.014. EMPLOYEE REPORTING. (a) On or before the |
|
15th day of each month, a casino owner or operator or slot |
|
establishment owner or operator shall submit to the commission an |
|
employee report for the casino or slot establishment operated by |
|
the owner or operator. For each employee of the casino or |
|
establishment, the report must provide the employee's name, job |
|
title, date of birth, and social security number. |
|
(b) The employee report is confidential and may not be |
|
disclosed except under commission order or in accordance with this |
|
subtitle. |
|
(c) The commission may conduct criminal history |
|
investigations for employees of casinos or slot establishments. |
|
(d) The commission may prohibit an employee from performing |
|
any act relating to gaming if the commission finds that an employee |
|
has: |
|
(1) committed, attempted, or conspired to commit any |
|
act prohibited by this chapter; |
|
(2) concealed or refused to disclose any material fact |
|
in any commission investigation; |
|
(3) committed, attempted, or conspired to commit |
|
larceny or embezzlement; |
|
(4) been convicted in any jurisdiction of an offense |
|
involving or relating to gambling; |
|
(5) accepted employment in a position for which |
|
commission approval is required after commission approval was |
|
denied for a reason involving personal unsuitability or after |
|
failing to apply for approval on commission request; |
|
(6) been prohibited under color of governmental |
|
authority from being present on the premises of any casino or slot |
|
establishment or any establishment where pari-mutuel wagering is |
|
conducted for any reason relating to improper gambling activity or |
|
for any illegal act; |
|
(7) willfully defied any legislative investigative |
|
committee or other officially constituted body acting on behalf of |
|
the United States or any state, county, or municipality that sought |
|
to investigate alleged or potential crimes relating to gaming, |
|
corruption of public officials, or any organized criminal |
|
activities; or |
|
(8) been convicted of any felony or any crime |
|
involving moral turpitude. |
|
(e) The commission may prohibit an employee from performing |
|
any act relating to gaming based on a revocation or suspension of |
|
any gaming or wagering license, certificate of registration, |
|
finding of suitability, or other affirmative regulatory approval or |
|
for any other reason the commission finds appropriate, including a |
|
refusal by a regulatory authority to issue a license, certificate |
|
of registration, finding of suitability, or other approval for the |
|
employee to engage in or be involved with gaming or with regulated |
|
gaming or pari-mutuel wagering in any jurisdiction. |
|
(f) In this section, "employee" includes any person |
|
connected directly with or compensated by an applicant or license |
|
holder as an agent, personal representative, consultant, |
|
independent contractor, or lobbyist for the advocacy of the |
|
adoption or amendment of a law related to gaming activities or the |
|
furtherance of gaming activities in any jurisdiction or as |
|
otherwise specified by commission rule. |
|
Sec. 2022.015. REPORT OF VIOLATIONS. A person who holds a |
|
license, certificate of registration, finding of suitability, or |
|
other affirmative regulatory approval under this chapter shall |
|
immediately report a violation or suspected violation of this |
|
chapter or a rule adopted under this chapter by any license, |
|
certificate, suitability, or approval holder, by an employee of a |
|
license, certificate, suitability, or approval holder, or by any |
|
person on the premises of a casino or slot establishment, whether or |
|
not associated with the license, certificate, suitability, or |
|
approval holder. |
|
Sec. 2022.016. INDEMNIFICATION, INSURANCE, AND BONDING |
|
REQUIREMENTS. (a) A license, certificate, suitability, or |
|
approval holder shall indemnify and hold harmless this state, the |
|
commission, and all officers and employees of this state and the |
|
commission from any and all claims which may be asserted against a |
|
holder of a license, certificate, suitability, or approval, the |
|
commission, this state, and the members, officers, employees, and |
|
authorized agents of this state or the commission arising from the |
|
license, certificate, suitability, or approval holder's |
|
participation in gaming authorized under this subtitle. |
|
(b) Surety and insurance required under this chapter shall |
|
be issued by companies or financial institutions financially rated |
|
"A" or better as rated by A.M. Best Company or other rating |
|
organization designated by the commission and duly licensed, |
|
admitted, and authorized to conduct business in this state, or by |
|
other surety approved by the commission. |
|
(c) The commission shall be named as the obligee in each |
|
required surety and as an additional insured in each required |
|
insurance contract. |
|
(d) A casino owner or operator or a slot establishment owner |
|
or operator may not be self-insured with regard to gaming |
|
operations under this section. |
|
(e) The commission by rule shall establish minimum |
|
insurance coverage requirements for license holders under this |
|
chapter, including: |
|
(1) insurance for performance; |
|
(2) insurance against losses caused by fraudulent or |
|
dishonest acts by an officer or employee of the license holder; |
|
(3) general liability insurance; |
|
(4) property insurance; |
|
(5) liability insurance for vehicles used and drivers |
|
employed by a license holder; and |
|
(6) crime insurance for the location. |
|
Sec. 2022.017. LIABILITY FOR CREDIT AWARDED OR DENIED; |
|
PLAYER DISPUTE. This state and the commission are not liable for |
|
any gaming device malfunction or error by a casino or slot |
|
establishment that causes credit to be wrongfully awarded or denied |
|
to players. |
|
[Sections 2022.018-2022.050 reserved for expansion] |
|
SUBCHAPTER B. CASINO OWNER'S LICENSE |
|
Sec. 2022.051. CASINO OWNER'S LICENSE. (a) Gaming may |
|
lawfully be conducted in a casino operating under a casino owner's |
|
license. |
|
(b) It is unlawful for a person to own an equity interest in |
|
a casino that conducts gaming in this state for which a casino |
|
owner's license is not in effect. |
|
(c) A separate casino owner's license must be obtained for |
|
each casino conducting gaming. |
|
Sec. 2022.052. ALLOCATION AND ISSUANCE OF CASINO OWNER'S |
|
LICENSES; TEMPORARY LICENSE. (a) The commission shall award nine |
|
casino owner's licenses to applicants for casino-anchored |
|
destination attraction development projects as follows: |
|
(1) seven casino owner's licenses in urban areas, |
|
allocated by population; and |
|
(2) two casino owner's licenses on islands in the Gulf |
|
of Mexico that are tourist destinations with at least 1,000 guest |
|
rooms available for visitors in hotels, motels, or condominiums |
|
existing on January 1, 2009. |
|
(b) In addition to the casino owner's licenses issued under |
|
the other provisions of this section, the commission may issue |
|
three additional casino owner's licenses to applicants based on |
|
evidence that demonstrates that the issuance of the license to the |
|
applicant would have a significant positive economic impact in the |
|
area in which the casino would be operated and on this state. |
|
(c) In addition to the casino owner's licenses issued under |
|
the other provisions of this section, the commission may issue a |
|
casino owner's license to a federally recognized Indian tribe that |
|
had land in this state held in trust by the United States on January |
|
1, 1998. A license under this subsection authorizes the tribe to |
|
operate only one casino on tribal lands held in trust by the United |
|
States on January 1, 1998. |
|
(d) A casino owner's license issued by the commission under |
|
Subsection (c) to an Indian tribe constitutes an agreement between |
|
this state and the tribe for purposes of the Indian Gaming |
|
Regulatory Act (18 U.S.C. Section 1166 et seq. and 25 U.S.C. Section |
|
2701 et seq.). |
|
(e) Except as to simulcast common pool wagering conducted in |
|
a casino and except as otherwise authorized by the commission, the |
|
casino operations and financial records of a casino owner's license |
|
holder under Subsection (b) who also holds a pari-mutuel license |
|
under the Texas Racing Act (Article 179e, Vernon's Texas Civil |
|
Statutes) shall be kept separate from the racing operations and |
|
records of the license holder. |
|
(f) An Indian tribe to which Subsection (c) applies may, in |
|
lieu of a casino owner's license, operate a casino on Indian land |
|
described by Subsection (c) under an agreement with this state. The |
|
agreement is governed by this chapter and Chapter 2023, except that |
|
the commission by rule may modify the provisions of this chapter and |
|
Chapter 2023 if necessary to make those provisions applicable to |
|
casino gaming. |
|
(g) Notwithstanding Subsections (a), (b), and (c): |
|
(1) a license may not be issued in a county unless: |
|
(A) a majority of the voters of the county voting |
|
in the 2009 constitutional amendment election to authorize casino |
|
gaming voted in favor of the proposition to authorize casino |
|
gaming; or |
|
(B) the voters of the county have approved a |
|
proposition legalizing casino gaming at a local option election |
|
held under this chapter; |
|
(2) not more than three casino owner's licenses may be |
|
issued for casinos to be located in the same county; and |
|
(3) a casino owner's license may not be issued for a |
|
location within an area in which casino gaming or slot gaming is |
|
prohibited under a gaming agreement. |
|
(h) In allocating licenses under this section and in |
|
addition to the other suitability criteria described in this |
|
chapter, the commission may favorably consider whether a |
|
substantial percentage of the owners of a proposed casino facility |
|
are residents of this state who have maintained their residency in |
|
this state for not less than two years preceding the application |
|
date. |
|
(i) For purposes of determining the location of a casino, a |
|
casino is considered to be located in the county in which the main |
|
public entrance to the casino is located. |
|
(j) The commission may issue a temporary license for one |
|
year or less to authorize the casino owner's license holder to |
|
temporarily conduct casino gaming in accordance with commission |
|
rules at a location within 1,000 feet of the site for which the |
|
casino license was granted. |
|
(k) A person may not beneficially own, directly or |
|
indirectly, an equity interest of more than five percent of the |
|
total equity interest in more than three casino owner's license |
|
holders. |
|
(l) A person may not operate, either under a casino owner's |
|
license or under a casino operator's license, more than three |
|
casinos. |
|
Sec. 2022.053. APPLICATION. (a) Application for a casino |
|
owner's license shall be made according to the rules of the |
|
commission and shall contain information the commission finds |
|
necessary to determine the suitability and eligibility of the |
|
applicant, the eligibility of the proposed location, and the |
|
economic impact of the overall casino project. |
|
(b) In addition to any other information the commission may |
|
require, an application must include the following information |
|
concerning the feasibility of the overall casino project: |
|
(1) proof that gaming was approved under the 2009 |
|
constitutional amendment or has been approved through a local |
|
option election under this chapter by the voters of the county where |
|
the casino is to be located; |
|
(2) evidence that the applicant possesses, or has the |
|
right to acquire, sufficient real property on which the proposed |
|
casino will be located in order to allow the applicant's |
|
construction and operation of the casino project substantially as |
|
proposed; |
|
(3) evidence that the applicant possesses, or |
|
reasonably expects to obtain, all state, county, and municipal |
|
permits and approvals necessary for the construction and operation |
|
of the proposed casino within the time periods prescribed in this |
|
chapter; and |
|
(4) evidence that the applicant is prepared to begin |
|
construction of its proposed casino within 18 months of receiving a |
|
casino owner's license and to proceed with the construction of the |
|
casino without unnecessary delay. |
|
(c) An applicant may apply for more than one casino owner's |
|
license relating to more than one casino but must submit a separate |
|
application for each casino for which a casino owner's license is |
|
sought. |
|
(d) An application for a casino owner's license must be |
|
accompanied by the nonrefundable application fee set out in Section |
|
2022.252. |
|
Sec. 2022.054. MANDATORY REQUIREMENTS. (a) A company is |
|
eligible to apply for and hold a casino owner's license only if: |
|
(1) the company is incorporated or organized and in |
|
good standing in this state or organized under the laws of another |
|
state of the United States and qualified to do business in this |
|
state; and |
|
(2) the company complies with all the laws of this |
|
state. |
|
(b) To be eligible to receive a casino owner's license to |
|
own a casino, an applicant must submit an application to the |
|
commission by the date established by the commission. |
|
(c) An application may not be considered filed for purposes |
|
of this chapter that does not include the information prescribed by |
|
Section 2022.053(b) or that is not accompanied by the prescribed |
|
application fee. |
|
Sec. 2022.055. CASINO LICENSE AWARD CONSIDERATIONS. (a) |
|
The commission shall determine the initial and continuing |
|
suitability of each applicant for or holder of a casino owner's |
|
license based on suitability criteria the commission adopts to |
|
ensure that all casino owner's license holders are of good |
|
character, honesty, integrity, and financial stability, that a |
|
casino owner's license holder has sufficient business probity, |
|
competence, and experience in gaming, and that a casino owner's |
|
license holder is otherwise qualified to be licensed. |
|
(b) The commission shall give due consideration to the |
|
protection of the public health, safety, morals, and general |
|
welfare of the people of this state and for the reputation of the |
|
state's gaming industry. |
|
(c) The burden of proving suitability to receive or hold a |
|
casino owner's license is on the applicant or license holder. |
|
(d) In considering the initial and continuing suitability |
|
of an applicant for or holder of a casino owner's license, the |
|
commission may consider the suitability of: |
|
(1) each person holding an equity interest or creditor |
|
interest in the applicant or holder; |
|
(2) each person holding, or proposed to receive, a |
|
casino operator's license, occupational license, or manufacturer's |
|
license employed by or doing business with the applicant or holder; |
|
and |
|
(3) each affiliate of the applicant or holder. |
|
(e) An applicant for or holder of a casino owner's license |
|
may not receive or hold a casino owner's license if the person: |
|
(1) has been convicted of a felony in the past 20 years |
|
under the laws of this state, any other state, or the United States; |
|
(2) has ever been convicted of a gambling or gaming |
|
violation under the laws of this state or any other state; |
|
(3) has ever knowingly or intentionally submitted an |
|
application for a license under this chapter that contained false |
|
information; |
|
(4) served as a principal manager for a person |
|
described by Subdivision (1), (2), or (3); |
|
(5) retains or employs another person described by |
|
Subdivision (2) or (3); |
|
(6) beneficially owns any material equity interest or |
|
creditor interest in the applicant or holder and is a person |
|
described by Subdivision (1), (2), or (3); |
|
(7) holds a manufacturer's license or casino service |
|
license; |
|
(8) is a member of the commission; or |
|
(9) is a member of the judiciary or an elected official |
|
of this state. |
|
(f) The commission may adopt rules providing for a person's |
|
reciprocal determination of suitability to hold a casino owner's |
|
license based on a determination of suitability to own and operate a |
|
casino in any other jurisdiction the commission considers |
|
reasonable in light of the purpose of this chapter. |
|
Sec. 2022.056. ECONOMIC IMPACT ANALYSIS. (a) In |
|
determining whether or, in the case of multiple applicants |
|
competing for a limited number of casino owner's licenses within a |
|
county, to whom to grant a casino owner's license, the commission |
|
shall consider the following factors: |
|
(1) the relative prospective revenues to be collected |
|
by the state from the conduct of gaming at the casino and the |
|
overall economic impact of each competing applicant's proposed |
|
casino and associated facilities; |
|
(2) the relative number of residents of this state who |
|
would be employed in an applicant's proposed casino and any |
|
proposed associated hotel and nongaming businesses and the relative |
|
extent of the applicant's good faith plan to recruit, train, and |
|
promote a workforce that reflects the diverse populations of this |
|
state in all employment classifications; |
|
(3) the relative extent to which an applicant's |
|
proposed casino and any proposed associated hotel and nongaming |
|
businesses could be reasonably expected to encourage interstate |
|
tourism to this state; |
|
(4) the relative extent to which the scope, design, |
|
location, and construction of the applicant's casino and any |
|
associated hotel and nongaming businesses could be reasonably |
|
expected to contribute to developing a first-class gaming industry |
|
in this state; |
|
(5) the applicant's experience in conducting licensed |
|
gaming operations and the applicant's financial ability to promptly |
|
construct and adequately maintain the casino sought to be licensed, |
|
including the experience of partners of the applicant, of |
|
affiliated companies of the applicant or its partners, of key |
|
personnel of the applicant or its partners, and of operating |
|
companies under contract with the applicant; and |
|
(6) the percentage of equity interest in the applicant |
|
owned or to be owned by residents of this state. |
|
(b) To ensure that a requisite level of economic development |
|
benefiting the people of this state accompanies each casino for |
|
which a casino owner's license is granted, the commission shall |
|
require an applicant, as a condition to receiving and holding a |
|
casino owner's license, to commit to building a casino project that |
|
meets the requirements for a casino-anchored destination |
|
attraction development project established under Section 47a(g), |
|
Article III, Texas Constitution. |
|
Sec. 2022.057. REVIEW OF APPLICATION. (a) The commission |
|
shall issue an order approving or denying an application for a |
|
casino owner's license not more than six months after the date of |
|
the filing of the application. |
|
(b) The commission may adopt rules for awarding temporary or |
|
interim licensing the commission finds necessary to administer this |
|
chapter. |
|
Sec. 2022.058. TRANSFERABILITY. A casino owner's license |
|
is not transferable and applies only to the specific site |
|
identified in the license. |
|
Sec. 2022.059. DENIAL AND REVOCATION. (a) The commission |
|
may deny an application or revoke a casino owner's license for a |
|
reasonable cause. |
|
(b) If the commission determines it has reasonable grounds |
|
to believe that a casino owner's license holder may be unsuitable to |
|
continue to hold a casino owner's license, the commission shall |
|
conduct an investigation and hearing under Section 2022.401 and |
|
may, based on its determination, suspend, limit, or revoke the |
|
license. On suspension or revocation of a casino owner's license, |
|
the license holder must immediately cease all gaming. |
|
(c) If the holder of a casino owner's license fails to begin |
|
construction of a casino within 18 months after the receipt of the |
|
casino owner's license, or fails to begin gaming operations within |
|
three years after the receipt of the license, the license is |
|
forfeited, unless the commission, for good cause, has previously |
|
granted an appropriate extension of time. |
|
(d) The right to receive and hold a casino owner's license |
|
is a revocable privilege, and not a right or property under the |
|
United States Constitution or the Texas Constitution. An applicant |
|
for or holder of a casino owner's license does not have a vested |
|
interest or right in a license granted under this chapter. |
|
Sec. 2022.060. REGISTRATION OF INTEREST IN LICENSE. (a) |
|
Except as provided by Subsection (b), a person who directly or |
|
indirectly owns an equity or creditor interest in an applicant for |
|
or holder of a casino owner's license shall register and qualify |
|
with the commission under commission rules and shall provide |
|
information the commission finds necessary to determine the |
|
suitability and eligibility of the person to retain the interest. |
|
(b) The following persons are not required to register or |
|
qualify under this section: |
|
(1) a key employee of the casino owner's license holder |
|
that is required to apply for an occupational license under Section |
|
2022.102; |
|
(2) an institutional investor; |
|
(3) a person that beneficially owns 10 percent or less |
|
of the total equity or creditor interest of the casino owner's |
|
license holder; and |
|
(4) any other group or class of persons that the |
|
commission by rule exempts from registration or qualification. |
|
(c) A casino owner's license holder shall provide to the |
|
commission the name, address, and interest in the casino owner's |
|
license holder of each person who is exempt from registration or |
|
qualification under Subsection (b). |
|
(d) A registration filed under this section must be |
|
accompanied by the application fee set out in Section 2022.252. |
|
Sec. 2022.061. TRANSFERABILITY OF INTEREST. (a) Except as |
|
provided by this subsection, a casino owner's license holder may |
|
not issue an equity or creditor interest to a person without the |
|
commission's determination of the qualification of the proposed |
|
subscriber or purchaser to hold the interest. A casino owner's |
|
license holder that is a publicly held company may issue equity or |
|
creditor interests of five percent or less of its equity or creditor |
|
interest to any person without the consent of the commission. |
|
(b) A person beneficially owning more than five percent of |
|
the equity or creditor interest of a casino owner's license holder |
|
may not transfer any portion of the interest in the license holder |
|
to any person without the commission's determination of the |
|
qualification of the proposed transferee to hold the interest. |
|
(c) A subscriber or proposed transferee of an interest by a |
|
casino owner's license holder shall provide the commission with |
|
information the commission considers necessary to determine the |
|
qualification of the person. The commission, not later than 60 days |
|
after the date of the application, shall determine the |
|
qualification of a subscriber or proposed transferee and approve or |
|
deny the issuance or transfer. |
|
Sec. 2022.062. DETERMINATION OF QUALIFICATION. (a) The |
|
commission shall determine the qualification of a person to acquire |
|
or continue to hold an equity or creditor interest in an applicant |
|
for or holder of a casino owner's license based on the qualification |
|
requirements the commission adopts for the protection of the public |
|
interest to ensure that the persons holding securities issued by |
|
license holders are of good character, honesty, integrity, and |
|
financial stability, and are otherwise qualified to hold the |
|
interest. |
|
(b) The burden of proving qualification to acquire or hold |
|
an equity or creditor interest in a license holder is on the person |
|
acquiring or holding the interest. |
|
(c) A person is unsuitable to acquire or retain an equity or |
|
creditor interest in an applicant for or holder of a casino owner's |
|
license if the person would be unsuitable to receive a casino |
|
owner's license under Section 2022.055(e). |
|
(d) If the commission has reasonable grounds to believe that |
|
a person holding an equity or creditor interest in an applicant for |
|
or holder of a casino owner's license may be unqualified to retain |
|
the person's interest, the commission shall conduct an |
|
investigation and hearing under Section 2022.401 and may, based on |
|
its determination, issue an unsuitability finding and divestiture |
|
order to the holder of the interest and the issuer of the interest. |
|
On receipt of a divestiture order, the person holding the interest |
|
shall tender its entire interest for purchase to the issuer or a |
|
third party on terms the commission approves. |
|
(e) If the commission issues an unsuitability finding and |
|
divestiture order to a holder of an equity interest or creditor |
|
interest, the person subject to the order may not: |
|
(1) receive, directly or indirectly, a dividend, |
|
interest, payment, or distribution of any kind relating to the |
|
security that is the subject of the order; or |
|
(2) exercise, directly or indirectly, any voting power |
|
or other right with respect to the security to which the order |
|
relates. |
|
(f) A person subject to an order may receive payment for the |
|
sale of the person's interest on terms the commission approves. |
|
Sec. 2022.063. TEXAS ENTERPRISE FUND GRANT. A casino owner |
|
is eligible to apply for and receive a grant from the Texas |
|
Enterprise Fund under Section 481.078, Government Code. |
|
[Sections 2022.064-2022.100 reserved for expansion] |
|
SUBCHAPTER C. CASINO OPERATOR'S LICENSE AND OCCUPATIONAL LICENSE |
|
Sec. 2022.101. CASINO OPERATOR'S LICENSE. (a) A person may |
|
not provide services as a casino operator without holding a casino |
|
operator's license. |
|
(b) A casino operator must hold a separate casino operator's |
|
license for each casino that the casino operator operates unless |
|
the operator is also the owner of the premises and holds a casino |
|
owner's license for the premises. |
|
Sec. 2022.102. OCCUPATIONAL LICENSE. (a) A person may not |
|
be employed as a gaming employee without holding an occupational |
|
license. |
|
(b) The holder of an owner's license or operator's license |
|
is not required to obtain an occupational license to provide |
|
services as a gaming employee in the casino or slot establishment to |
|
which the license relates. |
|
(c) A casino or slot establishment owner must at all times |
|
have not less than one occupational license holder designated as a |
|
key employee having responsibility over all gaming activities who |
|
shall be available at the casino or slot establishment at all times |
|
when gaming is conducted on the owner's license holder's premises. |
|
(d) A gaming employee designated or determined to be a key |
|
employee by the commission shall be issued an occupational license |
|
designated as a key employee occupational license. In determining |
|
whether an employee is a key employee, the commission is not |
|
restricted by the title of the job performed by the employee but may |
|
consider the functions and responsibilities of the employee in |
|
making decisions. |
|
(e) A person employed in the field of gaming as a gaming |
|
employee shall obtain an occupational license designated as a |
|
support occupational license. A person required to hold a support |
|
occupational license may not be a gaming employee of or assist the |
|
casino owner's or operator's license holder until the employee |
|
obtains a support occupational license. A person licensed as a key |
|
employee is not required to obtain a support occupational license. |
|
Sec. 2022.103. APPLICATION. (a) An application for a |
|
casino operator's license or an occupational license shall be made |
|
in compliance with commission rules and must contain information |
|
the commission finds necessary to determine the suitability and |
|
eligibility of the applicant to function as a casino operator or to |
|
be employed or retained as a gaming employee. |
|
(b) An application for a casino operator's license or an |
|
occupational license must be accompanied by the required |
|
application fee. |
|
(c) The commission may issue a temporary casino operator's |
|
license and a temporary occupational license. |
|
Sec. 2022.104. RESIDENCY. A person is eligible to apply for |
|
and hold a casino operator's license or occupational license |
|
without regard to the residency of the applicant. |
|
Sec. 2022.105. DETERMINATION OF SUITABILITY. (a) The |
|
commission shall determine the suitability of an applicant for or |
|
holder of a casino operator's license or occupational license based |
|
on suitability criteria the commission adopts in order to ensure |
|
that a license holder: |
|
(1) is of good character, honesty, and integrity; |
|
(2) has sufficient business probity, competence, and |
|
training or experience in the gaming industry to perform the |
|
function contemplated; and |
|
(3) is otherwise qualified to be licensed. |
|
(b) The burden of proving suitability to receive and hold a |
|
casino operator's license or occupational license is on the |
|
applicant or license holder. |
|
(c) In considering the suitability of a company applying for |
|
or holding a casino operator's license or occupational license to |
|
receive and continue to hold the license, the commission shall |
|
consider the suitability of each principal manager and each holder |
|
of an equity interest and creditor interest of the company to |
|
individually receive and hold an occupational license based on the |
|
suitability standards that apply to the applicants for the license |
|
generally. |
|
(d) A person may not be found suitable to receive or hold a |
|
casino operator's license or occupational license if that person |
|
would be found unsuitable to hold a casino owner's license under |
|
Section 2022.055(e), except that an applicant for a casino |
|
operator's license or occupational license who has been convicted |
|
of a felony may be found suitable if the person is found to be |
|
adequately rehabilitated under the rehabilitation requirements |
|
adopted by the commission, and the applicant or license holder is |
|
otherwise suitable for licensing. |
|
Sec. 2022.106. DENIAL OR REVOCATION OF LICENSE. (a) The |
|
commission may deny an application for or revoke a casino |
|
operator's license or occupational license for any reasonable |
|
cause. |
|
(b) If the commission determines that it has reasonable |
|
grounds to believe that a license holder may be unsuitable to |
|
continue to hold the license, giving due consideration to the |
|
protection of the health, safety, morals, and general welfare of |
|
this state and to the reputation of the state's gaming industry, the |
|
commission shall conduct an investigation and hearing provided in |
|
Section 2022.401 and may, based on its determination, suspend, |
|
limit, or revoke any license. |
|
(c) On the suspension or revocation of a license, the |
|
license holder shall cease the provision of all services in any |
|
capacity requiring a license under Section 2022.101 or 2022.102. |
|
(d) A holder of an occupational license that has been |
|
revoked or suspended may not: |
|
(1) receive, directly or indirectly, any |
|
compensation, consideration, or payment of any kind relating to the |
|
conduct of gaming in any capacity requiring a license under Section |
|
2022.101 or 2022.102, other than the payment for services rendered |
|
before the suspension or revocation; or |
|
(2) serve or function in a capacity that would require |
|
a license under Section 2022.101 or 2022.102. |
|
(e) The receipt and holding of a license is a privilege and |
|
is not a right or property under the United States Constitution or |
|
the Texas Constitution. An applicant for or holder of a casino |
|
operator's license or occupational license does not have a vested |
|
interest or right in a license granted under this chapter. |
|
[Sections 2022.107-2022.150 reserved for expansion] |
|
SUBCHAPTER D. MANUFACTURER'S AND OTHER SERVICE PROVIDERS' LICENSES |
|
Sec. 2022.151. MANUFACTURER'S LICENSE. (a) A person may |
|
not engage in any segment of the slot machine manufacturing |
|
industry in this state for which a manufacturer's license is |
|
required under this section without obtaining a manufacturer's |
|
license covering that segment of the industry. |
|
(b) The commission shall adopt rules identifying segments |
|
of the manufacturing industry directly involved in the design, |
|
manufacture, assembly, production, programming, sale, lease, |
|
marketing, distribution, repair, or modification of slot machines |
|
or component parts of slot machines that the commission finds |
|
appropriate for licensing under this section. |
|
(c) A manufacturer's license is personal to the license |
|
holder and allows the license holder to conduct business with any |
|
casino or slot establishment. |
|
Sec. 2022.152. CASINO SERVICE LICENSE. (a) A person may |
|
not engage in any segment of the casino service industry that |
|
requires a license without obtaining a casino service license. |
|
(b) The commission shall adopt rules identifying segments |
|
of the casino service industry directly involved with providing |
|
gaming-related services, equipment, and supplies that the |
|
commission finds appropriate for licensing. |
|
(c) A person is required to obtain a casino service license |
|
if the person: |
|
(1) operates, conducts, or maintains a gaming-related |
|
business in a casino or slot establishment; or |
|
(2) furnishes goods, property, or services to a casino |
|
or slot establishment in exchange for: |
|
(A) a payment based on a percentage of the |
|
earnings, profits, or receipts from the casino or slot |
|
establishment; or |
|
(B) a payment the commission finds to be grossly |
|
disproportionate to the value of the goods, property, or service |
|
provided. |
|
(d) A utility company, a municipality, or another political |
|
subdivision is not required to obtain a casino service license |
|
under this section. |
|
(e) A casino service license is personal to the license |
|
holder and allows the license holder to conduct business with any |
|
casino or slot establishment. |
|
Sec. 2022.153. APPLICATION. (a) Application for a |
|
manufacturer's license or casino service license shall be made in |
|
compliance with commission rules and shall contain information the |
|
commission finds necessary to determine the suitability and |
|
eligibility of the applicant. |
|
(b) An application for a manufacturer's license or casino |
|
service license must be accompanied by the required application |
|
fee. |
|
Sec. 2022.154. DETERMINATION OF SUITABILITY. (a) In |
|
considering the suitability of a company applying for or holding a |
|
manufacturer's license or casino service license to receive and |
|
continue to hold the license, the commission shall consider the |
|
suitability of each principal manager and each holder of an equity |
|
interest and creditor interest in the company applicant to |
|
individually receive and hold a manufacturer's license or casino |
|
service license based on the suitability standards that apply to |
|
the company applicant. A person may not be found suitable to |
|
receive or hold a manufacturer's license or casino service license |
|
if that person would be found unsuitable to hold a casino owner's |
|
license under Section 2022.055(e). |
|
(b) If the commission determines that it has reasonable |
|
grounds to believe that a license holder is unsuitable to hold a |
|
manufacturer's license or casino service license, the commission |
|
shall conduct an investigation and hearing under Section 2022.401 |
|
and may, based on its determination, suspend, limit, or revoke a |
|
license. |
|
(c) On suspension or revocation of a license, the license |
|
holder must cease the performance of manufacturing activity or |
|
casino service requiring a license under this chapter. After the |
|
revocation or suspension of the license, the affected license |
|
holder may not receive, directly or indirectly, compensation, |
|
consideration, or payment of any kind relating to manufacturing |
|
activity or provision of casino services in any capacity requiring |
|
a license under this chapter, other than the payment for goods or |
|
services provided before the suspension or revocation. |
|
(d) An owner or casino operator who has entered into a lease |
|
with a manufacturer license holder or casino services license |
|
holder whose license has been revoked or suspended may continue to |
|
make payments on the lease based upon its original terms and |
|
conditions without modification or may accelerate the lease and pay |
|
it off, at the sole option of the owner or operator. |
|
(e) The burden of proving suitability to receive and hold a |
|
manufacturer's license or casino service license is on the license |
|
holder. |
|
[Sections 2022.155-2022.200 reserved for expansion] |
|
SUBCHAPTER E. SLOT ESTABLISHMENT LICENSES |
|
Sec. 2022.201. SLOT ESTABLISHMENT OWNER'S OR OPERATOR'S |
|
LICENSE REQUIRED. Except as otherwise provided by this chapter, |
|
Chapter 2023, or a gaming agreement, a person may not own or operate |
|
a slot machine if the person does not satisfy the requirements of |
|
this chapter and is not licensed by the commission to act as a slot |
|
establishment owner or operator. This section does not prohibit |
|
the operation of slot machines by the owner or operator of a casino |
|
licensed under this chapter. |
|
Sec. 2022.202. APPLICATION AND QUALIFICATION. (a) An |
|
applicant for a slot establishment owner's or operator's license |
|
must apply to the commission under rules adopted by the commission, |
|
provide the information necessary to determine the applicant's |
|
eligibility for a license, and provide other information considered |
|
necessary by the commission. |
|
(b) Except as provided by other law, an applicant for a slot |
|
establishment owner's license must hold a pari-mutuel license |
|
granted under the Texas Racing Act (Article 179e, Vernon's Texas |
|
Civil Statutes) and operate a racetrack. |
|
(c) An applicant for a slot establishment operator's |
|
license must have a valid and executed contract with a racetrack |
|
that satisfies the requirements of Subsection (b) to act as a slot |
|
establishment operator for the racetrack subject to licensing under |
|
this chapter. |
|
(d) Each officer, partner, director, key employee, equity |
|
interest holder, and gaming employee of slot establishment |
|
operations must be eligible and maintain eligibility in accordance |
|
with this chapter to be involved in gaming in this state under this |
|
subchapter. |
|
(e) An applicant for a slot establishment owner's or |
|
operator's license has the burden of proving qualification for a |
|
license by clear and convincing evidence. In addition to |
|
satisfying minimum requirements established by commission rules, |
|
an applicant for a slot establishment owner's or operator's license |
|
must: |
|
(1) be a person of good character, honesty, and |
|
integrity; |
|
(2) be a person whose background and prior activities, |
|
including criminal record, reputation, habits, and associations, |
|
do not pose a threat to the security and integrity of gaming or to |
|
the public interest of this state or to the effective operation and |
|
control of gaming, or do not create or enhance the dangers of |
|
unsuitable, unfair, or illegal practices, methods, and activities |
|
in the conduct of gaming or in the carrying on of the business and |
|
financial arrangements incidental to gaming; |
|
(3) if applying for a new license, provide |
|
fingerprints for a criminal records evaluation by the Department of |
|
Public Safety or other law enforcement agency, including |
|
fingerprints for each person required to be named in an |
|
application, accompanied by a signed authorization for the release |
|
of information to the commission by the department and the Federal |
|
Bureau of Investigation; |
|
(4) not have been convicted of an offense under this |
|
chapter or of any crime related to theft, bribery, gambling, or |
|
involving moral turpitude; |
|
(5) demonstrate adequate financing for the operation |
|
of the facility at which the slot machines will be operated from a |
|
source that meets the requirements of this chapter and is adequate |
|
to support the successful performance of the duties and |
|
responsibilities of the license holder and disclose all financing |
|
or refinancing arrangements for the purchase, lease, or other |
|
acquisition of gaming equipment in the degree of detail requested |
|
by the commission; |
|
(6) when applying for a new license or renewing a |
|
license under this chapter, present evidence to the commission of |
|
the existence and terms of any agreement regarding the proceeds |
|
from the operation of slot machines; |
|
(7) demonstrate that each equity interest holder in |
|
the applicant meets all applicable qualifications under this |
|
chapter; |
|
(8) provide all information, including financial data |
|
and documents, consents, waivers, and any other materials, |
|
requested by the commission for purposes of determining |
|
qualifications for a license; and |
|
(9) as part of its application, expressly waive any |
|
and all claims against the commission, this state, and a member, |
|
officer, employee, or authorized agent of the commission or this |
|
state for damages resulting from any background investigation, |
|
disclosure, or publication relating to an application for a slot |
|
establishment owner's or operator's license. |
|
(f) An application or disclosure form and any other document |
|
submitted to the commission by or on behalf of the applicant for |
|
purposes of determining qualification for a slot establishment |
|
owner's or operator's license must be sworn to or affirmed before an |
|
officer qualified to administer oaths. |
|
(g) An applicant who knowingly fails to reveal any fact |
|
material to qualification for a license, finding of suitability, or |
|
other approval or who knowingly submits false or misleading |
|
material information is ineligible for a slot establishment owner's |
|
or operator's license. |
|
(h) An applicant for a license or renewal of a license as a |
|
slot establishment owner or operator shall notify the commission of |
|
any change in the application information for a license or renewal |
|
of a license not later than the 10th day after the date of the |
|
change, except that a publicly traded corporation or other business |
|
association or entity applicant is not required to notify the |
|
commission of a transfer by which any person directly or indirectly |
|
becomes the beneficial owner of less than 10 percent of the stock of |
|
the corporation or association. |
|
Sec. 2022.203. SLOT ESTABLISHMENT OWNER OR OPERATOR: |
|
EMPLOYEE INFORMATION. (a) A slot establishment owner or operator |
|
shall provide to the commission the name and address of the |
|
providers of surety and insurance required under this chapter. |
|
(b) Not later than the 10th day following the date of the |
|
change, a license holder must report to the commission any change in |
|
an officer, partner, director, key employee, equity interest |
|
holder, gaming employee, or owner and any change in a surety or |
|
insurance provider. |
|
Sec. 2022.204. SLOT ESTABLISHMENT: REQUIREMENTS; LOCATION. |
|
(a) A slot establishment owner or operator may not operate slot |
|
machines at any place that is not licensed as a slot establishment. |
|
(b) The commission by rule shall establish standards for |
|
slot establishments to ensure that establishments are accessible, |
|
safe, comfortable, durable, and of sufficiently high-quality |
|
construction to promote investments in establishments and related |
|
facilities that foster lasting economic development and continuity |
|
in producing state revenue, and that protect the health and welfare |
|
of employees, patrons, and all state residents. The standards must |
|
include or incorporate high-quality commercial building standards, |
|
including safety, air-conditioning, heating, and electrical |
|
standards. |
|
(c) An applicant for a slot establishment license must: |
|
(1) consent to the application of state laws with |
|
exclusive venue in Travis County, Texas, related to any action |
|
arising out of the operation of slot machines; |
|
(2) provide office space for at least one commission |
|
employee as required by commission rule; and |
|
(3) provide free and unrestricted access to the |
|
establishment by the commission. |
|
(d) An applicant for a slot establishment license must |
|
provide the maps, surveys, site plans, architectural plans, and |
|
financial statements required by the commission and update the |
|
information at least annually if required by the commission. |
|
(e) The commission may not deny, suspend, or revoke a |
|
license under this chapter based on the fact that a slot |
|
establishment or a proposed slot establishment is a location for |
|
which a person holds a wine and beer retailer's permit, mixed |
|
beverage permit, mixed beverage late hours permit, private club |
|
registration permit, or private club late hours permit, issued |
|
under Chapter 25, 28, 29, 32, or 33, Alcoholic Beverage Code. |
|
(f) The commission may not issue a slot establishment |
|
license to a racetrack if: |
|
(1) as of January 1, 2009, any part of the real |
|
property on which the licensed premises of the racetrack is located |
|
is less than one-half mile from any part of the real property on |
|
which a public school is located; or |
|
(2) the racetrack has held an inactive racing license |
|
for at least two of the three years preceding the date the |
|
application is submitted. |
|
(g) A slot establishment license is valid only on the |
|
premises of the location for which the license is issued. The |
|
location for a licensed slot establishment may not be moved or |
|
transferred under the license issued, and the license may not be |
|
amended to provide a different location for the slot establishment |
|
even if the racetrack location is moved or transferred to a |
|
different location. A slot establishment license is void if the |
|
location of the racetrack to which the slot establishment owner's |
|
pari-mutuel license applies is moved. |
|
Sec. 2022.205. SUMMARY SUSPENSION OF SLOT ESTABLISHMENT |
|
OWNER'S OR OPERATOR'S LICENSE. The commission may summarily |
|
suspend the license of a slot establishment owner or operator |
|
without notice or hearing if the commission finds the action is |
|
necessary to maintain the integrity, security, honesty, or fairness |
|
of the operation or administration of gaming or to prevent |
|
financial loss to this state and: |
|
(1) the license holder fails to deposit money received |
|
from slot machine operations as required by this chapter or |
|
commission rule; |
|
(2) an event occurs that would render the license |
|
holder ineligible for a license under this chapter; |
|
(3) the license holder refuses to allow the |
|
commission, the commission's agents, or the state auditor, or their |
|
designees, to examine the license holder's books, records, papers, |
|
or other objects; or |
|
(4) the executive director learns the license holder |
|
failed to disclose information that would, if disclosed, render the |
|
owner or operator ineligible for a license under this chapter. |
|
Sec. 2022.206. CAPITAL INVESTMENTS AND IMPROVEMENT |
|
REQUIREMENTS FOR SLOT ESTABLISHMENT. (a) A slot establishment |
|
owner or operator shall provide all necessary capital investments |
|
and required improvements at a slot establishment owned or operated |
|
by the owner or operator. |
|
(b) The commission may not issue a license for the operation |
|
of a slot establishment at a class 2 racetrack that has not made at |
|
least $40 million in capital investments or improvements to new or |
|
existing facilities at the racetrack. |
|
[Sections 2022.207-2022.250 reserved for expansion] |
|
SUBCHAPTER F. LICENSE RENEWAL AND FEES |
|
Sec. 2022.251. TERMS; RENEWAL. (a) An original or renewal |
|
license expires on the first anniversary of the date it is issued. |
|
(b) The fee for an owner's license, operator's license, |
|
occupational license, manufacturer's license, or casino service |
|
license is in the amount established by Section 2022.253 and must be |
|
paid annually. A license holder may renew an unexpired license |
|
annually by meeting the licensing requirements of the commission |
|
and by paying the annual fee. |
|
Sec. 2022.252. APPLICATION FEES. (a) An application fee |
|
received under this section shall be: |
|
(1) deposited in the Texas casino and slot gaming |
|
fund; and |
|
(2) used for the operation of the commission. |
|
(b) An applicant for a casino owner's license must pay an |
|
application fee of $100,000. |
|
(c) An applicant for a slot establishment owner's license |
|
must pay an application fee of $50,000. |
|
(d) An applicant for a manufacturer's license must pay an |
|
application fee of $200,000. |
|
(e) An applicant for an operator's license must pay an |
|
application fee of $50,000. |
|
(f) An applicant for a casino service license must pay an |
|
application fee of $100. |
|
(g) A person registering and applying to qualify to hold an |
|
equity interest or creditor interest in a license holder must pay an |
|
application fee of $100. |
|
(h) An individual applying for an occupational license must |
|
pay an application fee of $100. |
|
(i) All application fees must be in the form of a money order |
|
or cashier's check and be payable to the Texas Gaming Commission, |
|
except that the commission may provide for the payment of the fees |
|
by electronic funds transfer or similar method. Application fees |
|
are nonrefundable. |
|
(j) Application fees shall be applied toward the cost of |
|
investigating applicants' suitability for licensing or |
|
qualification under this chapter. Any costs of investigation |
|
incurred in excess of the application fee shall be paid by the |
|
applicant. |
|
Sec. 2022.253. LICENSE FEES. (a) A holder of a casino |
|
owner's license must pay an annual license fee of $100,000. |
|
(b) A holder of a slot establishment owner's license must |
|
pay an annual fee of $50,000. |
|
(c) A holder of a manufacturer's license must pay an annual |
|
license fee of $100,000. |
|
(d) A holder of an operator's license must pay an annual |
|
license fee of $50,000. |
|
(e) A holder of a casino service license must pay an annual |
|
license fee of $100. |
|
(f) A holder of an equity interest or creditor interest in |
|
any license holder that is required to qualify with the commission |
|
must pay an annual fee of $100. |
|
(g) A holder of an occupational license must pay an annual |
|
license fee of $100. |
|
[Sections 2022.254-2022.300 reserved for expansion] |
|
SUBCHAPTER G. CASINO AND SLOT GAMING FUND; TAXES ON GROSS GAMING |
|
REVENUE AND NET SLOT INCOME |
|
Sec. 2022.301. TEXAS CASINO AND SLOT GAMING FUND. (a) The |
|
Texas casino and slot gaming fund is a special fund in the state |
|
treasury. |
|
(b) All application fees, investigation fees, and license |
|
fees collected by the commission or on the commission's behalf |
|
related to casino and slot gaming shall be deposited to the credit |
|
of the Texas casino and slot gaming fund. |
|
(c) The Texas casino and slot gaming fund may be used only |
|
for the operation of the commission and the administration of this |
|
chapter. If the money in the fund exceeds the amount necessary for |
|
the operation of the commission and the administration of this |
|
chapter, the legislature may transfer any excess amount to a |
|
dedicated account to be known as the higher education trust account |
|
in the general revenue fund to be used solely to provide additional |
|
financial aid to assist in the payment of tuition and fees for |
|
resident students of institutions of higher education in this |
|
state. |
|
(d) The operation of the commission and the administration |
|
of this chapter shall be supported by fees generated under this |
|
chapter and by a portion of the taxes imposed by Section 2022.302. |
|
Sec. 2022.302. CASINO AND SLOT GAMING TAX; ALLOCATION OF |
|
TAX. (a) There is imposed on each holder of a casino owner's |
|
license a gaming tax in an amount equal to 15 percent of the gross |
|
gaming revenue of the casino operated under the license. The tax |
|
shall be computed and paid on a monthly basis in accordance with the |
|
procedures established by commission rule. |
|
(b) There is imposed on each holder of a slot establishment |
|
owner's license a slot gaming tax in an amount equal to 35 percent |
|
of the net slot income of the slot establishment operated under the |
|
license. The tax shall be computed and paid on a monthly basis in |
|
accordance with the procedures established by commission rule. |
|
(c) Except as provided by Subsections (d), (e), and (f), the |
|
revenue from the taxes imposed by this section is allocated to the |
|
higher education trust account in the general revenue fund. |
|
(d) Of the revenue from the tax imposed by Subsection (a): |
|
(1) one-thirtieth of the revenue is allocated to the |
|
municipality in which the casino to which the license relates is |
|
located, and one-thirtieth of the revenue is allocated to the |
|
county in which the casino to which the license relates is located; |
|
or |
|
(2) if the casino is located in an unincorporated |
|
area, one-fifteenth of the revenue is allocated to the county in |
|
which the casino to which the license relates is located. |
|
(e) The comptroller shall transfer the appropriate amount |
|
allocated under Subsection (d) to the appropriate municipalities |
|
and counties not less than monthly in the manner the comptroller |
|
considers appropriate. |
|
(f) Of the revenue from the taxes imposed by this section: |
|
(1) one-tenth of one percent shall be allocated to the |
|
general revenue fund and may be appropriated only to fund a |
|
compulsive gambling program established under Subchapter L; and |
|
(2) $200,000 may be appropriated in each state fiscal |
|
biennium to the Department of Public Safety to be used to provide |
|
grants to prosecuting attorneys for the investigation and |
|
prosecution of offenses related to the possession of gambling |
|
devices. |
|
(g) The taxes imposed by this section are due and payable on |
|
or before the 20th day of the month following the month in which the |
|
taxes are imposed. |
|
(h) If the amount of gaming taxes required to be reported |
|
and paid under this section is later determined to be greater or |
|
less than the amount actually reported and paid by the license |
|
holder, the commission shall: |
|
(1) assess and collect the additional gaming taxes |
|
determined to be due with interest until paid; or |
|
(2) refund any overpayment, with interest, to the |
|
license holder. |
|
(i) Interest must be computed, until paid, at the rate of |
|
one percent per month from the first day of the first month |
|
following either the due date of the additional gaming taxes or the |
|
date of overpayment. |
|
Sec. 2022.303. DETERMINATION OF GROSS GAMING REVENUE. (a) |
|
In calculating gross gaming revenue, a prize, premium, drawing, |
|
benefit, or ticket that is redeemable for money, merchandise, or |
|
other promotional allowance, except money or tokens paid at face |
|
value directly to a patron as the result of a specific wager and the |
|
amount of cash paid to purchase an annuity to fund winnings, may not |
|
be deducted from gross gaming revenue as a loss at any game except a |
|
slot machine. |
|
(b) In calculating gross gaming revenue from slot machines |
|
at a casino, the actual cost to the license holder of any personal |
|
property distributed to a patron as the result of a legitimate wager |
|
may be deducted as a loss, but travel expenses, food, refreshments, |
|
lodging, or services at the license holder's facility may not be |
|
deducted. For the purposes of this subsection, "as the result of a |
|
legitimate wager" means that the patron must make a wager before |
|
receiving the personal property, regardless of whether the receipt |
|
of the personal property is dependent on the outcome of the wager. |
|
(c) Cash or the value of noncash prizes awarded to patrons |
|
in a contest or tournament are not losses for purposes of |
|
determining gross gaming revenue. |
|
Sec. 2022.304. REFUND OF OVERPAYMENT. (a) Taxes imposed |
|
under this subchapter that are erroneously collected may be |
|
refunded, on approval of the commission, as other claims against |
|
the state are paid. |
|
(b) Not later than the 90th day after the date of the mailing |
|
of the notice of the commission's action on a claim for refund filed |
|
under this chapter, the claimant may bring an action against the |
|
commission on the grounds stated in the claim in any court of |
|
competent jurisdiction for the recovery of any part of the amount of |
|
the claim that has been disallowed. |
|
(c) Failure to bring an action within the time specified by |
|
Subsection (b) constitutes a waiver of any demand against the state |
|
on account of alleged overpayments. |
|
(d) If the commission fails to mail its notice of action on a |
|
claim within six months after the date the claim is filed, the |
|
claimant may consider the claim disallowed and bring an action |
|
against the commission on the grounds set forth in the claim for the |
|
recovery of any part of the amount claimed as an overpayment. |
|
(e) In a case where a refund is granted, interest is allowed |
|
at the rates provided in Section 111.064, Tax Code. |
|
(f) A claim for refund of taxes imposed under this |
|
subchapter that are paid in excess of the amount required to be |
|
reported and paid must be filed not later than two years after the |
|
date of overpayment. |
|
Sec. 2022.305. DETERMINATION OF DEFICIENCY. (a) If an |
|
owner's license holder fails to make a report of the taxes imposed |
|
under this subchapter as required by this chapter, or if the |
|
executive director is not satisfied with the owner's license |
|
holder's report of the taxes, the executive director may compute |
|
and determine the amount required to be paid on the basis of: |
|
(1) the facts contained in the report, if any; |
|
(2) an audit conducted by the executive director; |
|
(3) an estimate of the amount of taxes due; |
|
(4) any information in the commission's possession or |
|
that may come in the executive director's possession; or |
|
(5) any combination of the methods described by |
|
Subdivisions (1)-(4). |
|
(b) In making a determination, the commission may offset |
|
overpayments and interest due against underpayments and interest or |
|
penalties due for the period of the audit. |
|
(c) The executive director shall give prompt written notice |
|
of a determination of a deficiency under this section to the owner's |
|
license holder. Except in the case of fraud or intent to evade the |
|
payment of the tax, a notice of a determination of a deficiency must |
|
be mailed not later than two years after the last day of the |
|
calendar month following the applicable reporting period in which |
|
the deficiency occurred or not later than two years after the report |
|
is filed by the owner's license holder, whichever is later. |
|
(d) If the reasons for the deficiency are not apparent, the |
|
executive director shall include an explanation of those reasons in |
|
the notice of a determination of a deficiency. |
|
(e) If overpayments and interest exceed underpayments, |
|
penalties, and interest, the excess amount shall be refunded to the |
|
owner's license holder. |
|
Sec. 2022.306. PETITION FOR REVIEW. (a) An owner's license |
|
holder against whom a determination is made under Section 2022.305 |
|
may petition the commission for a redetermination not later than |
|
the 30th day after the date of the service of notice of the |
|
determination. If a petition for redetermination satisfying the |
|
requirements of Subsection (c) is not filed within the 30-day |
|
period, the determination becomes final. |
|
(b) If a petition for redetermination satisfying the |
|
requirements of Subsection (c) is filed within the 30-day period, |
|
the commission shall reconsider the determination and, if the |
|
petitioner requests, shall grant a hearing. |
|
(c) A petition for redetermination must: |
|
(1) specify the contested portions of the |
|
determination of deficiency; |
|
(2) specify the grounds for redetermination; |
|
(3) state whether a hearing is requested; and |
|
(4) be accompanied by payment in full of the |
|
uncontested portion of the determination, including any interest |
|
and penalties. |
|
(d) An order or decision of the commission on a petition for |
|
redetermination is final 10 days after the date of service on the |
|
petitioner. |
|
(e) A petitioner against whom an order or decision of the |
|
commission becomes final may, not later than the 60th day after the |
|
date the decision is final, petition for judicial review in the |
|
manner provided by Chapter 2001, Government Code. The executive |
|
director may not petition for judicial review. |
|
Sec. 2022.307. TAX ADMINISTRATION. (a) The commission |
|
shall perform all functions incident to the administration, |
|
collection, enforcement, and operation of a fee or tax imposed |
|
under this subchapter. The commission may adopt rules and prescribe |
|
forms for the administration, collection, and enforcement of a fee |
|
or tax and for the reporting of a fee or tax. |
|
(b) Except as modified by this chapter, Subtitle B, Title 2, |
|
Tax Code, applies to the administration, collection, and |
|
enforcement of a tax imposed under this subchapter. For purposes of |
|
the application of Subtitle B, Title 2, Tax Code, to a tax imposed |
|
under this subchapter, the powers and duties assigned to the |
|
comptroller under that subtitle are assigned to the commission. |
|
Sec. 2022.308. TAXES DEPOSITED IN STATE HIGHWAY FUND. (a) |
|
Notwithstanding any other law, the comptroller quarterly shall |
|
determine the net amount of receipts collected from a casino or slot |
|
establishment from the taxes imposed under Chapters 151, 152, 156, |
|
171, and 183, Tax Code, and shall deposit that amount in the state |
|
highway fund. |
|
(b) Money deposited in the state highway fund under this |
|
section may be used only for transportation in this state. |
|
[Sections 2022.309-2022.350 reserved for expansion] |
|
SUBCHAPTER H. REGULATION OF CASINO AND SLOT ESTABLISHMENT |
|
OPERATIONS |
|
Sec. 2022.351. REGULATION OF CASINO AND SLOT ESTABLISHMENT |
|
OPERATIONS. (a) The commission shall adopt rules applicable to the |
|
operation of casinos and slot establishments as the commission |
|
finds necessary for the protection of the health, safety, morals, |
|
and general welfare of this state and for the reputation of the |
|
state's gaming industry. |
|
(b) Casinos and slot establishments may operate 24 hours a |
|
day, seven days a week. A license holder may elect other hours of |
|
operation. |
|
(c) The commission may not authorize a casino or slot |
|
establishment to conduct wagering on the outcome of a sports event |
|
or sports activity other than greyhound or horse racing. |
|
Sec. 2022.352. USE OF CHIPS OR TOKENS. All gaming must be |
|
conducted with chips or tokens approved by the commission or with |
|
the legal tender of the United States. |
|
Sec. 2022.353. REPORTING REQUIREMENTS. (a) An owner's |
|
license holder shall keep the license holder's books and records in |
|
a manner that clearly shows the total amount of gross gaming revenue |
|
or net slot income, as applicable, and other revenues received. |
|
(b) The books and records kept by an owner's license holder |
|
relating to gaming operations are not public records and the |
|
publication and dissemination of the materials by the commission is |
|
prohibited. The commission may publish and disseminate gaming |
|
revenues and incomes of each owner's license holder at a frequency |
|
and in the level of detail as it considers appropriate. |
|
(c) An owner's license holder shall file a report of each |
|
change of the corporate officers and directors with the commission. |
|
The commission shall, not later than the 90th day after the date of |
|
the change, approve or disapprove the change. During the 90-day |
|
period, the officer or director is entitled to exercise the powers |
|
of the office to which the officer or director was elected or |
|
appointed. |
|
(d) An owner's license holder shall report to the executive |
|
director in writing a change in company employees who have been |
|
designated as key employees. |
|
(e) The commission may require that a company furnish the |
|
commission with a copy of its federal income tax return not later |
|
than the 30th day after the date the return is filed with the |
|
federal government. |
|
Sec. 2022.354. EXCLUSION OF PERSONS. (a) The commission by |
|
rule shall provide for the establishment of a list of persons who |
|
are to be excluded or ejected from a casino or slot establishment. |
|
The list may include a person whose presence in the casino or |
|
establishment is determined by the commission to pose a threat to |
|
the interests of this state, to licensed gaming, or to both |
|
interests. |
|
(b) In making a determination under this section, the |
|
commission may consider any: |
|
(1) prior conviction of a crime that is a felony in |
|
this state or under the laws of the United States or a crime |
|
involving moral turpitude or a violation of the gaming laws of a |
|
state; or |
|
(2) violation of or conspiracy to violate the |
|
provisions of this chapter relating to: |
|
(A) the failure to disclose an interest in a |
|
casino or slot establishment for which the person must obtain a |
|
license; |
|
(B) willful evasion of a fee or a tax; |
|
(C) notorious or unsavory reputation that would |
|
adversely affect public confidence and trust that the gaming |
|
industry is free from criminal or corruptive elements; or |
|
(D) a written order of a governmental agency that |
|
authorizes the exclusion or ejection of the person from a casino or |
|
slot establishment where gaming or pari-mutuel wagering is |
|
conducted. |
|
Sec. 2022.355. INTERNAL AUDIT AND CONTROL SYSTEMS. (a) An |
|
owner's license holder shall adopt an internal control system that |
|
provides for: |
|
(1) the safeguarding of its assets and revenues, |
|
especially the recording of cash and evidences of indebtedness; and |
|
(2) the provision of reliable records, accounts, and |
|
reports of transactions, operations, and events, including reports |
|
to the executive director and the commission. |
|
(b) The internal control system must be designed to |
|
reasonably ensure that: |
|
(1) assets are safeguarded; |
|
(2) financial records are accurate and reliable; |
|
(3) transactions are performed only in accordance with |
|
management's general or specific authorization; |
|
(4) transactions are recorded adequately to allow |
|
proper reporting of gaming revenue and of fees and taxes and to |
|
maintain accountability for assets; |
|
(5) access to assets is allowed only in accordance |
|
with management's specific authorization; |
|
(6) recorded accountability for assets is compared |
|
with actual assets at reasonable intervals and appropriate action |
|
is taken with respect to any discrepancies; and |
|
(7) functions, duties, and responsibilities are |
|
appropriately segregated and performed in accordance with sound |
|
practices by competent, qualified personnel. |
|
(c) An owner's license holder and an applicant for an |
|
owner's license shall describe, in a manner approved or required by |
|
the executive director, the license holder's or applicant's |
|
administrative and accounting procedures in detail in a written |
|
system of internal control. An owner's license holder and |
|
applicant for an owner's license shall submit a copy of the license |
|
holder's or applicant's written system to the executive director. A |
|
written system must include: |
|
(1) an organizational chart depicting appropriate |
|
segregation of functions and responsibilities; |
|
(2) a description of the duties and responsibilities |
|
of each position shown on the organizational chart; |
|
(3) a detailed, narrative description of the |
|
administrative and accounting procedures designed to satisfy the |
|
requirements of Section 2022.353(a); |
|
(4) a written statement signed by the license holder's |
|
chief financial officer and either the license holder's chief |
|
executive officer or an owner's license holder attesting that the |
|
system satisfies the requirements of this section; |
|
(5) if the written system is submitted by an |
|
applicant, a letter from an independent certified public accountant |
|
stating that the applicant's written system has been reviewed by |
|
the certified public accountant and complies with the requirements |
|
of this section; and |
|
(6) other items the executive director may require. |
|
(d) The commission shall adopt minimum standards for |
|
internal control procedures. |
|
Sec. 2022.356. AGE REQUIREMENTS. A person under the age of |
|
21 years may not: |
|
(1) play, be allowed to play, place wagers, or collect |
|
winnings, personally or through an agent, from any gaming |
|
authorized under this chapter; or |
|
(2) be employed as a gaming employee. |
|
Sec. 2022.357. ACCEPTANCE OF NEGOTIABLE INSTRUMENTS. (a) |
|
A negotiable instrument evidencing a gaming transaction may be |
|
enforced by legal process. |
|
(b) A license holder may accept an incomplete negotiable |
|
instrument that is signed by a patron and states the amount of the |
|
debt. The license holder may complete the instrument as is |
|
necessary for the instrument to be presented for payment. |
|
(c) A license holder: |
|
(1) may not accept a negotiable instrument that is |
|
incomplete, except as authorized by Subsection (b); and |
|
(2) may accept a negotiable instrument that is payable |
|
to an affiliate or may complete a negotiable instrument in the name |
|
of an affiliate as payee if the negotiable instrument otherwise |
|
complies with this section and the records of the affiliate |
|
pertaining to the negotiable instrument are made available to the |
|
executive director on request. |
|
(d) This section does not prohibit the establishment of an |
|
account by a deposit of cash, recognized traveler's check, or any |
|
other instrument that is equivalent to cash. |
|
(e) Any person, license holder, or the agents or employees |
|
of the person or license holder who violate this section are subject |
|
only to the penalties provided in this chapter relating to |
|
disciplinary actions. The failure of a person to comply with this |
|
section or commission rules does not invalidate a negotiable |
|
instrument or affect the ability to enforce the negotiable |
|
instrument or the transaction that the negotiable instrument |
|
represents. |
|
Sec. 2022.358. GAMING DEBTS. (a) Except as otherwise |
|
provided by this chapter, gaming debts not evidenced by a |
|
negotiable instrument are void and unenforceable and do not give |
|
rise to any administrative or civil cause of action. |
|
(b) A claim by a patron of a license holder for payment of a |
|
gaming debt not evidenced by a negotiable instrument may be |
|
resolved by the executive director under commission rules. |
|
(c) The executive director shall send a copy of the |
|
director's ruling by first class mail to the attorneys of record and |
|
shall keep an appropriate copy of the mailing. If a party is not |
|
represented by an attorney of record, the executive director shall |
|
send a copy of the ruling by first class mail to the party and shall |
|
keep an appropriate record of the mailing. |
|
(d) A party or attorney of record notified by mail under |
|
this section is presumed to have been notified on the date on which |
|
the notice is mailed. |
|
(e) A party aggrieved by the executive director's ruling is |
|
entitled to have the claim resolved by the commission in a contested |
|
case if the party files a written complaint with the commission |
|
challenging the executive director's decision not later than the |
|
20th day after the date on which the party or the party's attorney |
|
of record is notified by mail. |
|
Sec. 2022.359. QUESTIONING AND DETENTION OF PERSONS. (a) |
|
An owner's license holder or the license holder's officer, |
|
employee, or agent may question any person on the license holder's |
|
premises suspected of violating this chapter. The owner's license |
|
holder or the license holder's officer, employee, or agent is not |
|
criminally or civilly liable: |
|
(1) as a result of the questioning; or |
|
(2) for reporting the person suspected of the |
|
violation to the executive director or law enforcement authorities. |
|
(b) An owner's license holder or the license holder's |
|
officer, employee, or agent who has reasonable cause to believe |
|
that there has been a violation of this chapter in the license |
|
holder's casino or slot establishment by a person may take that |
|
person into custody and detain the person in the casino or slot |
|
establishment in a reasonable manner and for a reasonable length of |
|
time. The taking into custody and detention does not render the |
|
license holder or the license holder's officer, employee, or agent |
|
criminally or civilly liable unless it is established by clear and |
|
convincing evidence that the taking into custody and detention are |
|
unreasonable under all the circumstances. |
|
(c) An owner's license holder or the license holder's |
|
officer, employee, or agent is not entitled to the immunity from |
|
liability provided by Subsection (a) or (b) unless there is |
|
displayed in a conspicuous place in the license holder's |
|
establishment a notice in bold-faced type, clearly legible, and in |
|
substantially this form: |
|
AN OWNER'S LICENSE HOLDER OR AN OWNER'S LICENSE |
|
HOLDER'S OFFICER, EMPLOYEE, OR AGENT WHO HAS A |
|
REASONABLE CAUSE TO BELIEVE THAT A PERSON HAS VIOLATED |
|
A PROVISION OF CHAPTER 2005, OCCUPATIONS CODE, MAY |
|
QUESTION OR DETAIN THAT PERSON IN THE ESTABLISHMENT. |
|
Sec. 2022.360. SLOT MACHINE DISABLED. (a) The commission |
|
may disable a slot machine operated by a license holder under this |
|
chapter at the time: |
|
(1) a proceeding to summarily suspend the license is |
|
initiated; |
|
(2) the commission discovers the license holder failed |
|
to deposit money received from slot machine operation as required |
|
if the license is being summarily suspended under this section; or |
|
(3) an act or omission occurs that, under commission |
|
rules, justifies the termination of slot machine operations to: |
|
(A) protect the integrity of gaming or the public |
|
health, welfare, or safety; or |
|
(B) prevent financial loss to this state. |
|
(b) The commission shall immediately disable a slot machine |
|
if necessary to protect the public health, welfare, or safety. |
|
Sec. 2022.361. SLOT MACHINE: DISTRIBUTION AND COMMISSION |
|
APPROVAL. (a) A slot machine provider may not distribute a slot |
|
machine or other gaming or associated equipment for placement at a |
|
casino or slot establishment in this state unless the machine or |
|
equipment has been approved by the commission. |
|
(b) Only a person that holds a manufacturer's license issued |
|
under this chapter may apply for approval of a slot machine or other |
|
gaming or associated equipment. |
|
Sec. 2022.362. TECHNICAL STANDARDS FOR GAMING EQUIPMENT. |
|
The commission by rule shall establish minimum technical standards |
|
for gaming equipment that may be operated in this state. |
|
Sec. 2022.363. INCIDENT REPORTS. (a) The owner or operator |
|
of a casino or slot establishment shall record all unusual |
|
occurrences related to gaming activity in the casino or slot |
|
establishment operated by the owner or operator. |
|
(b) The owner or operator of a casino or slot establishment |
|
shall assign each incident, without regard to materiality, a |
|
sequential number and, at a minimum, provide the following |
|
information in a permanent record prepared in accordance with |
|
commission rules to ensure the integrity of the record: |
|
(1) the number assigned to the incident; |
|
(2) the date and time of the incident; |
|
(3) the nature of the incident; |
|
(4) each person involved in the incident; and |
|
(5) the name of the employee or other agent of the |
|
owner or operator who investigated the incident. |
|
Sec. 2022.364. SLOT MACHINE EVENTS. The owner or operator |
|
of a casino or slot establishment shall keep a database of slot |
|
machine events. The commission by rule shall determine what |
|
constitutes a slot machine event for purposes of this section. |
|
Sec. 2022.365. SECURITY. (a) The owner or operator of a |
|
casino or slot establishment shall: |
|
(1) continuously monitor all slot machines through the |
|
use of a closed-circuit television system that records activity for |
|
a continuous 24-hour period, retain all videotapes or other media |
|
used to store video images for at least 30 days, and make the tapes |
|
or media available to the commission on request; |
|
(2) submit for commission approval a security plan and |
|
a floor plan of the area where slot machines are operated showing |
|
slot machine locations and security camera mount locations; and |
|
(3) employ at least the minimum number of private |
|
security personnel the commission determines is necessary to |
|
provide for safe and approved operation of the casino or slot |
|
establishment and the safety and well-being of the players. |
|
(b) Private security personnel must be present during all |
|
hours of operation at each casino or slot establishment. |
|
(c) An agent or employee of the commission or the Department |
|
of Public Safety or other law enforcement personnel may be present |
|
at a casino or slot establishment at any time. |
|
(d) The commission may adopt rules to impose additional |
|
surveillance and security requirements related to casinos or slot |
|
establishments and the operation of slot machines. |
|
Sec. 2022.366. COMMISSION RIGHT TO ENTER. The commission |
|
or the commission's representative, after displaying appropriate |
|
identification and credentials, has the free and unrestricted right |
|
to: |
|
(1) enter the premises of a casino or slot |
|
establishment; |
|
(2) enter at all times any other locations involved in |
|
operation or support of slot machines; and |
|
(3) inspect and copy the records of the owner or |
|
operator of a casino or slot establishment pertaining to the |
|
operation of slot machines. |
|
Sec. 2022.367. APPOINTMENT OF SUPERVISOR. (a) The |
|
commission by rule may provide for the appointment of a supervisor |
|
to manage and operate a casino or slot establishment at the |
|
direction of the commission and perform any act that a casino or |
|
slot establishment owner or operator is entitled to perform in the |
|
event that: |
|
(1) an owner's or operator's license or other license |
|
required for operation of the casino or slot establishment is |
|
revoked or suspended, lapses, or is surrendered; |
|
(2) a casino or slot establishment has been conveyed |
|
or transferred to a secured party receiver or trustee who does not |
|
hold the licenses necessary to operate the casino or establishment; |
|
or |
|
(3) any other event occurs that causes the casino or |
|
establishment to cease the operation of slot machines. |
|
(b) The rules may allow the commission to: |
|
(1) take any action or adopt any procedure necessary |
|
to operate a casino or slot establishment pending the licensing of |
|
an owner or operator or a successor on the transfer or sale of the |
|
casino, establishment, or property; and |
|
(2) if necessary to continue the operation of the |
|
casino or slot establishment, sell the casino or establishment to a |
|
person that holds or has applied for the licenses required to |
|
operate the casino or establishment under this chapter and make |
|
appropriate distributions of the proceeds of the sale. |
|
Sec. 2022.368. OFFENSE: CONVEYANCE OF CASINO OR SLOT |
|
ESTABLISHMENT PROPERTY. (a) A person commits an offense if during |
|
the pendency of any proceeding before the commission that may |
|
result in the appointment of a supervisor or during the period of |
|
supervision the person: |
|
(1) sells, leases, or otherwise conveys for less than |
|
full market value or pledges as security any property of a casino or |
|
slot establishment; or |
|
(2) removes from this state or secretes from the |
|
commission or the supervisor any property, money, books, or records |
|
of the casino or slot establishment, including evidences of debts |
|
owed to the casino or establishment. |
|
(b) An offense under Subsection (a) is a felony of the third |
|
degree. |
|
[Sections 2022.369-2022.400 reserved for expansion] |
|
SUBCHAPTER I. ENFORCEMENT |
|
Sec. 2022.401. ENFORCEMENT. (a) The executive director |
|
shall conduct an appropriate investigation to: |
|
(1) determine whether there has been a violation of |
|
this chapter or of a commission rule; |
|
(2) determine facts, conditions, practices, or |
|
matters that the director considers necessary or proper to aid in |
|
the enforcement of a law or rule; |
|
(3) aid in adopting rules; |
|
(4) secure information as a basis for recommending |
|
legislation relating to this chapter; and |
|
(5) determine whether a license holder is able to meet |
|
the license holder's financial obligations, including all |
|
financial obligations imposed by this chapter, as they become due. |
|
(b) If after an investigation the executive director is |
|
satisfied that a license should be limited, conditioned, suspended, |
|
or revoked, or that a fine should be levied, the executive director |
|
shall initiate a hearing under Section 2022.406. |
|
Sec. 2022.402. PRIVILEGED DOCUMENTS. (a) A communication |
|
or document of an applicant or license holder that is required by |
|
law or commission rule or by a subpoena issued by the commission and |
|
that is to be made or transmitted to the commission or the executive |
|
director is privileged and does not impose liability for defamation |
|
or constitute a ground for recovery in a civil action by a person |
|
other than the commission. |
|
(b) If a document or communication contains information |
|
that is privileged, the privilege is not waived or lost because the |
|
document or communication is disclosed to the commission or the |
|
executive director. |
|
(c) Notwithstanding the powers granted to the commission |
|
and the executive director by this chapter: |
|
(1) the commission and the executive director may not |
|
release or disclose privileged information, documents, or |
|
communications provided by an applicant and required by a lawful |
|
court order after timely notice of the proceedings has been given to |
|
the applicant or license holder without the prior written consent |
|
of the applicant or license holder; |
|
(2) the commission and the executive director shall |
|
maintain all privileged information, documents, and communications |
|
in a secure place accessible only to members of the commission and |
|
the executive director; and |
|
(3) the commission shall adopt procedures to protect |
|
the privileged nature of information, documents, and |
|
communications provided by an applicant or license holder. |
|
Sec. 2022.403. RELEASE OF CONFIDENTIAL INFORMATION. An |
|
application to a court for an order requiring the commission or the |
|
executive director to release any information declared by law to be |
|
confidential shall be made only on a motion in writing delivered not |
|
later than the 10th day before the date of application to the |
|
commission, the attorney general, and all persons who may be |
|
affected by the entry of the order. Copies of the motion and all |
|
papers filed in support of it shall be served with the notice by |
|
delivering a copy in person or by certified mail to the last known |
|
address of the person to be served. |
|
Sec. 2022.404. EMERGENCY ORDERS. (a) The commission may |
|
issue an emergency order for suspension, limitation, or |
|
conditioning of a license or work permit or may issue an emergency |
|
order requiring a casino or slot establishment to keep an |
|
individual license holder from the premises of the licensed |
|
establishment or to not pay the license holder any remuneration for |
|
services or any profits, income, or accruals on the license |
|
holder's investment in the casino or slot establishment. |
|
(b) An emergency order may be issued only if the commission |
|
determines that: |
|
(1) a license holder has willfully failed to report, |
|
pay, or truthfully account for a fee imposed under this chapter or |
|
willfully attempted in any manner to evade or defeat a fee or |
|
payment; |
|
(2) a license holder or gaming employee has cheated at |
|
a gambling game; or |
|
(3) the action is necessary for the immediate |
|
preservation of the public peace, health, safety, morals, good |
|
order, or general welfare. |
|
(c) The emergency order must state the grounds on which it |
|
is issued, including a statement of facts constituting the alleged |
|
emergency necessitating the action. |
|
(d) An emergency order may be issued only with the approval |
|
of and under the signature of four or more members of the |
|
commission. |
|
(e) An emergency order is effective immediately on issuance |
|
and service on the license holder or resident agent of the license |
|
holder, gaming employee, or, in cases involving registration, on |
|
issuance and service on the person or entity involved or resident |
|
agent of the entity involved. An emergency order may suspend, |
|
limit, condition, or take other action in relation to the license of |
|
one or more persons in an operation without affecting other |
|
individual license holders or the casino or slot establishment. An |
|
emergency order remains effective until further order of the |
|
commission or final disposition of the case. |
|
(f) Not later than the fifth day after the date of issuance |
|
of an emergency order, the executive director shall file a |
|
complaint and serve it on the person or entity involved. The person |
|
or entity against whom the emergency order has been issued and |
|
served is entitled to a hearing before the commission and to |
|
judicial review of the decision and order of the commission under |
|
Chapter 2001, Government Code. Judicial review is under the |
|
substantial evidence rule. |
|
Sec. 2022.405. REVOCATION OF LICENSE, CERTIFICATE OF |
|
REGISTRATION, FINDING OF SUITABILITY, OR OTHER APPROVAL. (a) The |
|
commission shall revoke or suspend a license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval issued under this chapter if the holder of the |
|
license, certificate, suitability, or approval at any time fails to |
|
meet the eligibility requirements set forth in this chapter. |
|
(b) Failure to timely remit gaming revenue generated by slot |
|
machines to the commission or any tax or other fee owed to this |
|
state as demonstrated by report from the applicable taxing |
|
authority or to timely file any report or information required |
|
under this chapter as a condition of any license, certificate, |
|
finding of suitability, or other approval issued under this chapter |
|
may be grounds for suspension or revocation, or both, of a license, |
|
certificate, finding of suitability, or other approval issued under |
|
this chapter. |
|
Sec. 2022.406. DISCIPLINARY HEARING. (a) Before the |
|
commission revokes or suspends a license, certificate of |
|
registration, finding of suitability, or approval or imposes |
|
monetary penalties for a violation of this chapter, the commission |
|
shall provide written notification to the license, certificate, |
|
finding of suitability, or approval holder of the revocation, the |
|
period of suspension, or the monetary penalty. The notice shall |
|
include: |
|
(1) the effective date of the revocation or the period |
|
of suspension or the amount of the monetary penalty, as applicable; |
|
(2) each reason for the revocation, suspension, or |
|
penalty; |
|
(3) an explanation of the evidence supporting the |
|
reasons; |
|
(4) an opportunity to present the license, |
|
certificate, finding of suitability, or approval holder's position |
|
in response on or before the 15th day after the effective date of |
|
the revocation; and |
|
(5) a statement explaining the person's right to an |
|
administrative hearing to determine whether the revocation, |
|
suspension, or penalty is warranted. |
|
(b) The notice required under Subsection (a) must be made by |
|
personal delivery or by mail to the person's mailing address as it |
|
appears on the commission's records. |
|
(c) To obtain an administrative hearing on a suspension, |
|
revocation, or penalty under this section, a person must submit a |
|
written request for a hearing to the commission not later than the |
|
20th day after the date notice is delivered personally or is mailed. |
|
(d) If the commission receives a timely request under |
|
Subsection (c), the commission shall provide the person with an |
|
opportunity for a hearing as soon as practicable. If the commission |
|
does not receive a timely request under Subsection (c), the |
|
commission may impose the penalty, revoke or suspend a license, |
|
certificate, finding of suitability, or approval, or sustain the |
|
revocation or suspension without a hearing. |
|
(e) Except as provided by Subsection (f), the hearing must |
|
be held not earlier than the 11th day after the date the written |
|
request is submitted to the commission. |
|
(f) The commission may provide that a revocation or |
|
suspension takes effect on receipt of notice under Subsection (a) |
|
if the commission finds that the action is necessary to prevent or |
|
remedy a threat to public health, safety, or welfare. The |
|
commission by rule shall establish a nonexclusive list of |
|
violations that present a threat to the public health, safety, or |
|
welfare. |
|
(g) A hearing on a revocation or suspension that takes |
|
effect on receipt of notice must be held not later than the 14th day |
|
after the date the commission receives the request for hearing |
|
under this section. The revocation or suspension continues in |
|
effect until the hearing is completed. If the hearing is continued, |
|
the revocation or suspension shall continue in effect beyond the |
|
14-day period at the request of the license, certificate, finding |
|
of suitability, or approval holder or on a finding of good cause by |
|
the commission or administrative law judge. |
|
(h) To prevail in a post-deprivation administrative hearing |
|
under this section, the license, certificate, finding of |
|
suitability, or approval holder must demonstrate by clear and |
|
convincing evidence that the deprivation or imposition of a penalty |
|
was unwarranted or otherwise unlawful. The post-deprivation |
|
hearing may be conducted by the commission or referred to the State |
|
Office of Administrative Hearings. |
|
(i) The administrative record created by the hearing |
|
conducted by the State Office of Administrative Hearings shall be |
|
provided to the commission for review and determination on the |
|
revocation or suspension. |
|
(j) If an administrative law judge of the State Office of |
|
Administrative Hearings conducts a hearing under this section and |
|
the proposal for decision supports the commission's position, the |
|
administrative law judge shall include in the proposal a finding of |
|
the costs, fees, expenses, and reasonable and necessary attorney's |
|
fees this state incurred in bringing the proceeding. |
|
(k) The commission may adopt the findings for costs, fees, |
|
and expenses and make the finding a part of the final order entered |
|
in the proceeding. Proceeds collected from a finding made under |
|
this section shall be paid to the commission. |
|
Sec. 2022.407. JUDICIAL REVIEW OF REVOCATION, SUSPENSION, |
|
OR PENALTY IMPOSITION. (a) A person aggrieved by a final decision |
|
of the commission to revoke or suspend a license, certificate of |
|
registration, finding of suitability, or approval or to impose any |
|
monetary penalty may obtain judicial review before a district court |
|
in Travis County. |
|
(b) The judicial review must be instituted by serving on the |
|
commission and filing a petition not later than the 20th day after |
|
the effective date of the final decision and must identify the order |
|
appealed from and the grounds or reason why the petitioner contends |
|
the decision of the commission should be reversed or modified. |
|
(c) The review must be conducted by the court sitting |
|
without jury, and must not be a trial de novo but is confined to the |
|
record on review. The reviewing court may only affirm the decision, |
|
remand the case for further proceedings, or reverse the decision if |
|
the substantial rights of the petitioner have been violated. |
|
(d) If any court of competent jurisdiction concludes on |
|
judicial review limited to the administrative record before the |
|
commission and subject to the substantial evidence standard that |
|
the deprivation or penalty was unwarranted or otherwise unlawful, |
|
the sole remedy available is invalidation of the penalty or |
|
reinstatement of the license, certificate of registration, finding |
|
of suitability, or approval and the continued distribution, |
|
manufacture, or operation of slot machines. |
|
(e) The commission, this state, or the members, officers, |
|
employees, and authorized agents of either are not under any |
|
circumstances subject to monetary damages, attorney's fees, or |
|
court costs resulting from the penalty or license, certificate, |
|
finding of suitability, or approval revocation. |
|
Sec. 2022.408. EFFECT OF DENIAL OF LICENSE, REGISTRATION, |
|
FINDING OF SUITABILITY, OR APPROVAL. (a) A person whose |
|
application for a license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval has been |
|
denied may not have any interest in or association with a slot |
|
establishment owner or operator or any other business conducted in |
|
connection with slot machines under this chapter without prior |
|
approval of the commission. |
|
(b) Any contract related to the operation of slot machines |
|
in this state between a person holding a license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval and a person denied a license, certificate of |
|
registration, finding of suitability, or other affirmative |
|
regulatory approval must be terminated immediately. If the person |
|
denied a license, certificate, finding of suitability, or approval |
|
has previously been granted a temporary license, certificate, |
|
finding of suitability, or approval, the temporary license, |
|
certificate, finding of suitability, or approval expires |
|
immediately on denial of the permanent license, certificate, |
|
finding of suitability, or approval. |
|
(c) Except as otherwise authorized by the commission, a |
|
person denied a license, certificate of registration, finding of |
|
suitability, or other affirmative regulatory approval may not |
|
reapply for any license, certificate, finding of suitability, or |
|
approval before the second anniversary of the date of the denial. |
|
Sec. 2022.409. AGREEMENT TO WAIVE ENFORCEABILITY. A |
|
license, certificate, finding of suitability, or approval holder by |
|
virtue of accepting the license, certificate, finding of |
|
suitability, or approval agrees that the privilege of holding a |
|
license, certificate, finding of suitability, or approval under |
|
this chapter is conditioned on the holder's agreement to Sections |
|
2022.405-2022.407 and waives any right to challenge or otherwise |
|
appeal the enforceability of those sections. |
|
Sec. 2022.410. LIMITED WAIVER OF SOVEREIGN IMMUNITY; NO |
|
LIABILITY OF STATE FOR ENFORCEMENT. (a) This state does not waive |
|
its sovereign immunity by negotiating gaming agreements with Indian |
|
tribes or other persons for the operation of gaming or gambling |
|
games under this subtitle. An actor or agent for this state may not |
|
waive this state's sovereign immunity absent an express legislative |
|
grant of the authority. The only waiver of sovereign immunity |
|
relative to gaming operations is that expressly provided for in |
|
this section. |
|
(b) With regard to gaming operations on Indian lands, this |
|
state consents to the jurisdiction of the District Court of the |
|
United States with jurisdiction in the county where the Indian |
|
lands are located, or if the federal court lacks jurisdiction, to |
|
the jurisdiction of a district court in Travis County, solely for |
|
the purpose of resolving disputes arising from a gaming agreement |
|
authorized under this chapter or Chapter 2023 for declaratory or |
|
injunctive relief or contract damages of $100,000 or more. Any |
|
disputes relating to damages or other awards valued at less than |
|
$100,000 shall be arbitrated under the rules of the American |
|
Arbitration Association, provided, however, that application of |
|
the rules may not be construed as a waiver of sovereign immunity. |
|
(c) All financial obligations of the commission are payable |
|
solely out of the income, revenues, and receipts of the commission |
|
and are subject to statutory restrictions and appropriations. |
|
(d) This state and the commission are not liable if |
|
performance by the commission is compromised or terminated by acts |
|
or omissions of the legislature or the state or federal judiciary. |
|
(e) This state and the commission are not liable related to |
|
enforcement of this chapter. |
|
Sec. 2022.411. ABSOLUTE PRIVILEGE OF REQUIRED |
|
COMMUNICATIONS AND DOCUMENTS. (a) Any communication, document, or |
|
record of an applicant for or holder of a license, certificate, |
|
finding of suitability, or regulatory approval that is made or |
|
transmitted to the commission or any of its employees to comply with |
|
any law, including a rule of the commission, to comply with a |
|
subpoena issued by the commission, or to assist the commission or |
|
its designee in the performance of their respective duties is |
|
absolutely privileged, does not impose liability for defamation, |
|
and is not a ground for recovery in any civil action. |
|
(b) If a communication, document, or record provided under |
|
Subsection (a) contains any information that is privileged under |
|
state law, that privilege is not waived or lost because the |
|
communication, document, or record is disclosed to the commission |
|
or any commission employees. |
|
(c) The commission shall maintain all privileged |
|
information, communications, documents, and records in a secure |
|
place as determined in the commission's sole discretion that is |
|
accessible only to commission members and authorized commission |
|
employees. |
|
[Sections 2022.412-2022.450 reserved for expansion] |
|
SUBCHAPTER J. PENALTIES AND OFFENSES |
|
Sec. 2022.451. FAILURE TO PAY FEES. (a) License fees and |
|
other fees required by this chapter must be paid to the commission |
|
on or before the dates provided by law for each fee. |
|
(b) A person failing to timely pay a fee or tax when due |
|
shall pay in addition a penalty of not less than $50 or 25 percent of |
|
the amount due, whichever is the greater. The penalty may not |
|
exceed $1,000 if the fee or tax is less than 10 days late and may not |
|
exceed $5,000 under any circumstances. The penalty shall be |
|
collected as are other charges, license fees, and penalties under |
|
this chapter. |
|
Sec. 2022.452. FAILURE TO REPORT, PAY, OR ACCOUNT FOR FEE OR |
|
TAX. (a) A person commits an offense if the person willfully fails |
|
to report, pay, or truthfully account for a fee or tax imposed under |
|
this chapter or willfully attempts in any manner to evade or defeat |
|
a fee or tax. |
|
(b) An offense under this section is a Class A misdemeanor. |
|
Sec. 2022.453. GAMING FRAUD. (a) A person commits an |
|
offense if the person knowingly: |
|
(1) alters or misrepresents the outcome of a game or |
|
other event on which wagers have been made after the outcome is made |
|
sure but before it is revealed to the players; |
|
(2) places, increases, or decreases a bet or |
|
determines the course of play after acquiring knowledge, not |
|
available to all players, of the outcome of the game or an event |
|
that affects the outcome of the game or that is the subject of the |
|
bet or aids anyone in acquiring such knowledge for the purpose of |
|
placing, increasing, or decreasing a bet or determining the course |
|
of play contingent on that event or outcome; |
|
(3) claims, collects, or takes, or attempts to claim, |
|
collect, or take, money or anything of value in or from a gambling |
|
game, with intent to defraud, without having made a wager |
|
contingent on the game, or claims, collects, or takes an amount |
|
greater than the amount won; |
|
(4) entices or induces another to go to a place where a |
|
gambling game is being conducted or operated in violation of this |
|
subtitle, with the intent that the other person play or participate |
|
in that gambling game; |
|
(5) places or increases a bet after acquiring |
|
knowledge of the outcome of the game or other event that is the |
|
subject of the bet, including past posting and pressing bets; |
|
(6) reduces the amount wagered or cancels the bet |
|
after acquiring knowledge of the outcome of the game or other event |
|
that is the subject of the bet, including pinching bets; or |
|
(7) manipulates, with the intent to cheat, a component |
|
of a gaming device in a manner contrary to the designed and normal |
|
operational purpose for the component, including varying the pull |
|
of the handle of a slot machine, with knowledge that the |
|
manipulation affects the outcome of the game or with knowledge of an |
|
event that affects the outcome of the game. |
|
(b) An offense under this section is a felony of the third |
|
degree. |
|
Sec. 2022.454. USE OF PROHIBITED DEVICES. (a) A person |
|
commits an offense if the person, at a casino or slot establishment, |
|
uses or possesses with the intent to use a device, other than those |
|
customarily used in the conduct of gaming to assist in: |
|
(1) projecting the outcome of the game; |
|
(2) keeping track of the cards played; |
|
(3) analyzing the probability of the occurrence of an |
|
event relating to the game; or |
|
(4) analyzing the strategy for playing or betting to |
|
be used in the game. |
|
(b) An offense under this section is a felony of the third |
|
degree. |
|
Sec. 2022.455. USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN, |
|
CHIP, OR COIN. (a) A person commits an offense if the person |
|
knowingly uses counterfeit chips or tokens in a gambling game. |
|
(b) A person commits an offense if the person, in playing |
|
any gambling game designed to receive, be played with, or be |
|
operated by chips or tokens approved by the executive director or by |
|
lawful coin of the United States of America: |
|
(1) knowingly uses a chip, token, or coin other than |
|
chips or tokens approved by the commission or lawful coin of the |
|
United States of America, or uses a coin not of the same |
|
denomination as the coin intended to be used in that gambling game; |
|
or |
|
(2) uses any device or means to violate the provisions |
|
of this chapter. |
|
(c) A person, other than an authorized employee of an |
|
owner's license holder acting in furtherance of the person's |
|
employment within an establishment, commits an offense if the |
|
person knowingly has on the person's body or in the person's |
|
possession on or off the premises of a casino a device intended to |
|
be used to violate the provisions of this chapter. |
|
(d) A person, other than an authorized employee of a license |
|
holder acting in furtherance of the person's employment within a |
|
casino or slot establishment, commits an offense if the person |
|
knowingly has on the person's body or in the person's possession on |
|
or off the premises of a casino or slot establishment a key or |
|
device known to have been designed for the purpose of and suitable |
|
for opening, entering, or affecting the operation of a gambling |
|
game, a drop box, or an electronic or mechanical device connected to |
|
the game or box or for removing money or other contents from the |
|
game or box. |
|
(e) A person commits an offense if the person, with the |
|
intent to manufacture slugs for unauthorized use in gaming devices |
|
located at a casino or slot establishment, knowingly has on the |
|
person's body or in the person's possession paraphernalia for |
|
manufacturing slugs. In this subsection, "paraphernalia for |
|
manufacturing slugs" means the equipment, products, and materials |
|
that are intended for use or designed for use in manufacturing, |
|
producing, fabricating, preparing, testing, analyzing, packaging, |
|
storing, or concealing a counterfeit facsimile of the chips or |
|
tokens approved by the executive director or a lawful coin of the |
|
United States, the use of which is an offense under Subsection (b). |
|
The term includes: |
|
(1) lead or lead alloys; |
|
(2) molds, forms, or similar equipment capable of |
|
producing a likeness of a gaming token or United States coin; |
|
(3) melting pots or other receptacles; |
|
(4) torches; and |
|
(5) tongs, trimming tools, or other similar equipment. |
|
(f) Possession of more than one of the devices, equipment, |
|
products, or materials described in this section permits a |
|
rebuttable inference that the possessor intended to use them for |
|
cheating. |
|
(g) An offense under this section is a felony of the third |
|
degree. |
|
Sec. 2022.456. CHEATING. (a) In this section, "cheat" |
|
means to alter the elements of chance, method of selection, or |
|
criteria that determine the result of a game or the amount or |
|
frequency of payment in a game. |
|
(b) A person commits an offense if the person knowingly |
|
cheats at any gambling game. |
|
(c) An offense under this section is a state jail felony. |
|
Sec. 2022.457. POSSESSION OF UNLAWFUL DEVICES. (a) A |
|
person commits an offense if the person knowingly possesses any |
|
slot machine or other gaming device that has been manufactured, |
|
sold, or distributed in violation of this chapter. |
|
(b) An offense under this section is a Class A misdemeanor. |
|
Sec. 2022.458. UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION |
|
OF GAMING EQUIPMENT. (a) In this section, "cheat" has the meaning |
|
assigned by Section 2022.456. |
|
(b) A person commits an offense if the person manufactures, |
|
sells, or distributes cards, chips, dice, a game, or a device |
|
intended to be used to violate this chapter. |
|
(c) A person commits an offense if the person marks, alters, |
|
or otherwise modifies any associated equipment or gaming device in |
|
a manner that: |
|
(1) affects the result of a wager by determining win or |
|
loss; or |
|
(2) alters the normal criteria of random selection |
|
that affect the operation of a game or determine the outcome of a |
|
game. |
|
(d) A person commits an offense if the person instructs |
|
another person in cheating or in the use of a device for cheating at |
|
any game authorized to be conducted at a casino or slot |
|
establishment, with the knowledge or intent that the information or |
|
use may be employed to violate this chapter. |
|
(e) An offense under this section is a felony of the third |
|
degree. |
|
Sec. 2022.459. REPORTING PENALTIES. (a) A person commits |
|
an offense if the person, in a license application, in a book or |
|
record required to be maintained by this chapter or a rule adopted |
|
under this chapter, or in a report required to be submitted by this |
|
chapter or a rule adopted under this chapter: |
|
(1) makes a statement or entry that the person knows to |
|
be false or misleading; or |
|
(2) knowingly 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 executive director 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. 2022.460. GENERAL PENALTY. (a) A person commits an |
|
offense if the person knowingly or wilfully violates, attempts to |
|
violate, or conspires to violate a provision of this chapter |
|
specifying a prohibited act. |
|
(b) Unless another penalty is specified for the violation, |
|
an offense under this section is a Class A misdemeanor. |
|
Sec. 2022.461. UNAUTHORIZED OPERATION, USE, OR POSSESSION |
|
OF GAMING DEVICE. (a) A person may not operate, use, or possess a |
|
gaming device unless the operation, use, or possession is expressly |
|
authorized by this chapter or other law. |
|
(b) Except for transport to or from a casino or slot |
|
establishment and as provided by this chapter, a person commits an |
|
offense if the person operates, uses, or possesses a gaming device |
|
that is not authorized under this chapter or other law. An offense |
|
under this subsection is a felony of the third degree. |
|
(c) Notwithstanding Subsection (b), a casino owner or |
|
operator, slot establishment owner or operator, or a manufacturer |
|
may store a gaming device as authorized by the commission for a |
|
period not to exceed 120 consecutive days, and the commission may |
|
possess gaming devices for study and evaluation. |
|
(d) Nothing in this section shall be construed to prohibit |
|
the operation, use, or possession of equipment, machines, |
|
technological aids, or other devices allowed in connection with the |
|
play of bingo under Chapter 2001. |
|
Sec. 2022.462. PLAY OF GAME ON CREDIT. (a) A person |
|
licensed under this chapter or an employee of a person licensed |
|
under this chapter commits an offense if the person intentionally |
|
or knowingly allows a person to play or conduct a game on a gaming |
|
device by extending credit or lending money to the person to enable |
|
the person to play the game. |
|
(b) An offense under this section is a Class C misdemeanor. |
|
Sec. 2022.463. SALE OF GAMBLING GAME TO OR PURCHASE OF |
|
GAMBLING GAME BY PERSON YOUNGER THAN 21 YEARS OF AGE. (a) A person |
|
licensed under this chapter or an employee of the person commits an |
|
offense if the person intentionally or knowingly allows a person |
|
younger than 21 years of age to play a gambling game. |
|
(b) An individual who is younger than 21 years of age |
|
commits an offense if the individual: |
|
(1) plays a gambling game; or |
|
(2) falsely represents the individual to be 21 years |
|
of age or older by displaying evidence of age that is false or |
|
fraudulent or misrepresents in any way the individual's age in |
|
order to play a gambling game. |
|
(c) It is a defense to prosecution under Subsection (b) that |
|
the individual younger than 21 years of age is participating in an |
|
inspection or investigation on behalf of the commission or other |
|
appropriate governmental entity regarding compliance with this |
|
section. |
|
(d) An offense under Subsection (a) is a Class C |
|
misdemeanor. |
|
(e) An offense under Subsection (b) is a misdemeanor |
|
punishable by a fine not to exceed $250. |
|
Sec. 2022.464. PURCHASE OF GAMBLING GAME WITH PROCEEDS OF |
|
AFDC CHECK OR FOOD STAMPS. (a) A person commits an offense if the |
|
person intentionally or knowingly plays a gambling game with: |
|
(1) the proceeds of a check issued as a payment under |
|
the Aid to Families with Dependent Children program administered |
|
under Chapter 31, Human Resources Code; or |
|
(2) a food stamp coupon issued under the food stamp |
|
program administered under Chapter 33, Human Resources Code. |
|
(b) An offense under this section is a Class C misdemeanor. |
|
Sec. 2022.465. TAMPERING WITH GAMING OR ASSOCIATED |
|
EQUIPMENT. (a) A person commits an offense if the person |
|
intentionally or knowingly tampers with, damages, defaces, or |
|
renders inoperable any vending machine, electronic computer |
|
terminal, gaming device or other gaming or associated equipment, or |
|
other mechanical device used in a gambling game. |
|
(b) An offense under this section is a felony of the third |
|
degree. |
|
[Sections 2022.466-2022.500 reserved for expansion] |
|
SUBCHAPTER K. LOCAL OPTION ELECTIONS |
|
Sec. 2022.501. ORDERING LOCAL OPTION ELECTION. The |
|
commissioners court of a county may at any time order an election to |
|
legalize casino gaming under this chapter in that county. The |
|
commissioners court shall order and hold an election to legalize |
|
gaming under this chapter in the county if the commissioners court |
|
is presented with a petition that meets the requirements of Section |
|
2022.502 and is certified as valid under Section 2022.503. |
|
Sec. 2022.502. PETITION REQUIREMENTS. (a) A petition for a |
|
legalization election must include a statement substantially as |
|
follows before the space reserved for signatures on each page: |
|
"This petition is to require that an election be held in (name of |
|
county) to legalize casino gaming in (name of county)." |
|
(b) A petition is valid only if it is signed by registered |
|
voters of the county in a number that is not less than three percent |
|
of the total number of votes cast for governor by qualified voters |
|
of the county in the most recent gubernatorial general election. |
|
(c) Each voter must enter beside the voter's signature the |
|
date the voter signs the petition. A signature may not be counted |
|
as valid if the date of signing is earlier than the 90th day before |
|
the date the petition is submitted to the commissioners court. |
|
(d) Each voter must provide on the petition the voter's |
|
current voter registration number, printed name, and residence |
|
address, including zip code. |
|
Sec. 2022.503. VERIFICATION. (a) Not later than the fifth |
|
day after the date a petition for an election under this chapter is |
|
received in the office of the commissioners court, the |
|
commissioners court shall submit the petition for verification to |
|
the county clerk. |
|
(b) The county clerk shall determine whether the petition is |
|
signed by the required number of registered voters of the county. |
|
Not later than the 30th day after the date the petition is submitted |
|
to the clerk for verification, the clerk shall certify in writing to |
|
the commissioners court whether the petition is valid or invalid. |
|
If the clerk determines that the petition is invalid, the clerk |
|
shall state the reasons for that determination. |
|
Sec. 2022.504. ORDERING ELECTION. If the county clerk |
|
certifies that a petition is valid, not later than the 30th day |
|
after the date of certification, the commissioners court shall |
|
order that an election be held in the county on the next uniform |
|
election date under Section 41.001, Election Code, that allows |
|
sufficient time to comply with applicable provisions of law, |
|
including Section 3.005, Election Code. The commissioners court |
|
shall state in the order the issue to be voted on. The county clerk |
|
shall notify the commission by certified mail, return receipt |
|
requested, that an election has been ordered. |
|
Sec. 2022.505. BALLOT PROPOSITION. The ballot in a |
|
legalization election shall be printed to provide for voting for or |
|
against the proposition: "Legalizing casino gaming within (name of |
|
county)." |
|
Sec. 2022.506. ELECTION RESULTS. (a) If the majority of |
|
the votes cast in a legalization election favor the legalization of |
|
casino gaming, casino gaming authorized under this chapter is |
|
permitted within the county holding the election effective on the |
|
10th day after the date of the election. |
|
(b) The commissioners court of a county in which a |
|
legalization election has been held shall give written notice of |
|
the results of the election to the commission not later than the |
|
third day after the date the election is canvassed. |
|
(c) If less than a majority of the votes cast in a |
|
legalization election in any county are cast in favor of the |
|
legalization of casino gaming, casino gaming is not permitted in |
|
the county, and a subsequent election on the issue may not be held |
|
in the county before the corresponding uniform election date one |
|
year after the date of the election. |
|
(d) If less than a majority of the votes cast in two |
|
consecutive legalization elections within any county are cast in |
|
favor of the legalization of casino gaming, casino gaming is not |
|
permitted in the county, and a subsequent election on the issue may |
|
not be held in the county before the corresponding uniform election |
|
date five years after the date of the second election. |
|
[Sections 2022.507-2022.550 reserved for expansion] |
|
SUBCHAPTER L. PROBLEM GAMBLING AND ADDICTION |
|
Sec. 2022.551. PROBLEM GAMBLING AND ADDICTION GRANT FUND. |
|
(a) The problem gambling and addiction grant fund is an account in |
|
the general revenue fund. |
|
(b) Money credited to the fund may be used only for awarding |
|
grants under this subchapter. The fund shall be administered in |
|
accordance with this subchapter. |
|
(c) An expenditure from the problem gambling and addiction |
|
grant fund shall be made in accordance with the General |
|
Appropriations Act on warrants of the comptroller. |
|
(d) Grants from money in the fund may be used only to: |
|
(1) provide treatment for problem gaming and gambling |
|
addiction, alcoholism, drug abuse, and other addictive behaviors; |
|
and |
|
(2) provide funding for research related to the impact |
|
of gambling on state residents. |
|
Sec. 2022.552. GRANT PROGRAM. (a) The commission shall |
|
administer a grant program to provide assistance for the direct |
|
treatment of persons diagnosed as suffering from pathological |
|
gambling and other addictive behaviors and to provide funding for |
|
research regarding the impact of gambling on residents of this |
|
state. |
|
(b) Research grants awarded under this section may include |
|
grants for determining the effectiveness of education and |
|
prevention efforts on the prevalence of pathological gambling in |
|
this state. |
|
(c) A grant may be made only after open solicitation of |
|
proposals and evaluation of proposals against criteria established |
|
by commission rule. |
|
(d) Public and private entities are eligible to apply for |
|
and receive grants under this section. |
|
(e) A grant made in accordance with this section shall be |
|
made from the problem gambling and addiction grant fund. |
|
Sec. 2022.553. GIFTS AND DONATIONS. The commission may |
|
solicit and accept grants, gifts, contributions, or bequests made |
|
for the purpose of funding grants under this subchapter and expend |
|
the money for the purpose for which it was received. |
|
Sec. 2022.554. RULES. (a) The commission shall administer |
|
this subchapter and adopt rules establishing criteria for |
|
qualification to receive grants and other matters considered |
|
necessary by the commission for the administration of this |
|
subchapter. |
|
(b) The rules adopted by the commission must require that |
|
each recipient of a grant report at least annually to the commission |
|
the grantee's measurable achievement of specific outcome goals. |
|
CHAPTER 2023. TRIBAL GAMING AGREEMENTS |
|
Sec. 2023.001. DUTY OF GOVERNOR. The governor shall |
|
execute, on behalf of this state, with a federally recognized |
|
Indian tribe with Indian lands in this state a gaming agreement |
|
containing the terms set forth in Section 2023.002, as a |
|
ministerial act, without preconditions, not later than the 30th day |
|
after the date the governor receives a request from the tribe, |
|
accompanied by or in the form of a duly enacted resolution of the |
|
tribe's governing body, to enter into the gaming agreement. |
|
Sec. 2023.002. MODEL TRIBAL GAMING AGREEMENT. (a) A gaming |
|
agreement executed under Section 2023.001 must be in the form and |
|
contain the provisions as follows: |
|
GAMING AGREEMENT GOVERNING GAMING OPERATIONS Between the [Name of |
|
Tribe] and the STATE OF TEXAS |
|
This agreement is made and entered into by and between the |
|
[Name of Tribe], a federally recognized Indian Tribe ("Tribe"), and |
|
the State of Texas ("State"), with respect to gaming on the Tribe's |
|
Indian lands (as defined by Chapter 2022, Texas Occupations Code). |
|
This agreement governs gambling on Indian lands held in trust |
|
by the United States on January 1, 1998, for the Tribe. |
|
Pursuant to express provisions of the Restoration Acts (Pub. |
|
L. No. 100-89) addressing jurisdiction, the Tribe may engage in any |
|
gaming activities that another person may be authorized to engage |
|
in under Subtitle A-1, Title 13, Occupations Code. |
|
The Tribe shall regulate the gaming activities authorized |
|
under this agreement on the Tribe's Indian lands. |
|
The Tribe shall adopt rules and procedures substantially |
|
similar to the requirements of Subtitle A-1, Title 13, Occupations |
|
Code, except that any regulatory oversight established under |
|
Subtitle A-1 for gaming conducted under a license shall be |
|
exercised by the Tribe for gaming conducted under this agreement. |
|
The Tribe may adopt the rules and procedures by reference to any |
|
provisions of Subtitle A-1, Title 13, Occupations Code. |
|
(b) A gaming agreement under Subsection (a) between this |
|
state and a federally recognized Indian Tribe that is not subject to |
|
the Restoration Acts (Pub. L. No. 100-89) may not include the |
|
provision related to the Restoration Acts. |
|
Sec. 2023.003. NEGOTIATION FOR DIFFERENT TRIBAL GAMING |
|
AGREEMENT TERMS. (a) Nothing in this subchapter may be construed |
|
to limit the ability of a federally recognized Indian tribe to |
|
request that a gaming agreement be negotiated with this state on |
|
terms that are different from those set forth in the gaming |
|
agreement under Section 2023.002, or the ability of this state to |
|
engage in negotiations and to reach agreement under any applicable |
|
federal law. |
|
(b) In offering to enter into a gaming agreement with Indian |
|
tribes in this state under Section 2023.002, and, except for |
|
assessments by this state as provided in that section of the amounts |
|
necessary to defray state costs of regulating activities as |
|
provided under the gaming agreement, nothing in this chapter may be |
|
construed to mean that: |
|
(1) this state is imposing any tax, fee, charge, or |
|
other assessment on an Indian tribe or on any other person or entity |
|
authorized by an Indian tribe as a condition to engaging in a Class |
|
III activity; or |
|
(2) this state is refusing to enter into gaming |
|
agreement negotiations based on the lack of authority of this state |
|
or a political subdivision of this state to impose the tax, fee, |
|
charge, or other assessment. |
|
(c) If any federally recognized tribe with jurisdiction |
|
over Indian lands in this state requests that the governor enter |
|
into negotiations for a gaming agreement under federal law |
|
applicable to the tribe, including the Indian Gaming Regulatory Act |
|
(18 U.S.C. Section 1166 and 25 U.S.C. Section 2701 et seq.), on |
|
terms different than those prescribed in the gaming agreement set |
|
forth in Section 2023.002, the governor shall enter into those |
|
negotiations under the federal law applicable to the tribe and |
|
without preconditions and is authorized to reach agreement and |
|
execute the agreement on behalf of this state. |
|
Sec. 2023.004. IMPLEMENTATION OF GAMING AGREEMENT. The |
|
governor shall execute any documents necessary to implement a |
|
gaming agreement authorized under this subchapter. |
|
Sec. 2023.005. INCORPORATION INTO STATE LAW. The model |
|
gaming agreement set out in Section 2023.002 is hereby incorporated |
|
into state law, and the operation of gaming authorized under the |
|
agreement is expressly authorized as a matter of state law for any |
|
Indian tribe entering into the gaming agreement in accordance with |
|
this subchapter. |
|
Sec. 2023.006. REGULATORY MONEY RECEIVED UNDER GAMING |
|
AGREEMENT. All money received by the commission under a gaming |
|
agreement for regulatory costs incurred relative to tribal gaming |
|
operations may be used only to defray expenses of the commission |
|
incurred in the oversight, compliance with, and enforcement of |
|
gaming operations conducted pursuant to a gaming agreement. |
|
Sec. 2023.007. INJUNCTION; CIVIL PENALTY. (a) If the |
|
commission, the appropriate governing body for an Indian tribe, or |
|
the attorney general has reason to believe that this chapter has |
|
been or is about to be violated, the attorney general may petition a |
|
court for appropriate injunctive relief to restrain the violation. |
|
Filing of the petition does not waive applicable sovereign |
|
immunity. |
|
(b) Venue for an action by this state seeking injunctive |
|
relief is in a district court in Travis County. |
|
(c) If the court finds that this chapter has been knowingly |
|
violated, the court shall order all proceeds from any illegal |
|
gambling to be forfeited to the appropriate governing body as a |
|
civil penalty. |
|
(d) The remedies provided by this section are not exclusive. |
|
The commission may suspend or revoke a license, registration, |
|
finding of suitability, or other affirmative regulatory approval, |
|
impose an administrative penalty, or seek injunctive or civil |
|
penalties or both, depending on the severity of the violation. |
|
SECTION 2. Article 4, Texas Racing Act (Article 179e, |
|
Vernon's Texas Civil Statutes), is amended by adding Sections 4.07, |
|
4.08, and 4.09 to read as follows: |
|
Sec. 4.07. NATIONAL LEADERSHIP IN EQUINE PURSES. (a) In |
|
this section: |
|
(1) "Equine industry development fund" means a fund |
|
dedicated to any nonpurse expenditures that support or promote the |
|
industry of breeding, training, racing, riding, and competing with |
|
horses in this state. |
|
(2) "Equine racing purse trust fund" means the trust |
|
fund established by Subsection (b) of this section. |
|
(3) "Optimal Texas purse amount" means the annual |
|
amount of purse money determined by the comptroller under |
|
Subsection (d) of this section. |
|
(4) "Target balance" means the amount of money needed |
|
in total purse funds for a particular calendar month that will be |
|
sufficient to aggregate, when combined with all other monthly |
|
target balances for the calendar year, to the optimal Texas purse |
|
amount for that calendar year. |
|
(5) "Total purse funds" means the sum of the |
|
unallocated cash balance of pari-mutuel purse funds and the |
|
unallocated cash balance of the equine racing purse trust fund. |
|
(b) The equine racing purse trust fund is established |
|
outside the state treasury and is held in trust by the comptroller |
|
for administration of this Act. Money in the trust fund may be |
|
disbursed by the comptroller without appropriation as directed by |
|
the commission to carry out this Act. |
|
(c) Each pari-mutuel license holder authorized to operate |
|
slot machines under Chapter 2022, Occupations Code, shall remit 15 |
|
percent of the gross gaming revenues from the license holder's slot |
|
machines to the equine racing purse trust fund. Payments made |
|
pursuant to this subsection shall occur as directed by the |
|
commission but not less than twice per month. If a person makes a |
|
payment under this subsection more than two days after the deadline |
|
set by the commission, the person shall pay a penalty at the rate of |
|
25 percent of the amount due per day for each day after the deadline |
|
until the payment is received. |
|
(d) The commission shall determine the optimal Texas purse |
|
amount in accordance with this section. The commission shall |
|
determine the annual total purse amount for all thoroughbred races |
|
in each of the three states that allow pari-mutuel racing, other |
|
than Texas, with the highest annual total purse amounts. In |
|
evaluating the purse amounts of other states, the commission shall |
|
include all breed development programs and all other supplemental |
|
purse payments. In determining the amounts of thoroughbred purses |
|
in other states, the commission shall use special care not to omit, |
|
undervalue, or unnecessarily discount any portion of the purse |
|
funds in those states. To calculate the optimal Texas purse amount, |
|
the commission shall take the average of the annual total purse |
|
amounts for the three states and multiply that amount by 1.05. The |
|
commission shall update the optimal Texas purse amount at least |
|
quarterly. The commission shall publish the list of the three |
|
states used to determine the optimal Texas purse amount, the total |
|
purse amounts for each of those states, and the optimal Texas purse |
|
amount. |
|
(e) Based on the current projected optimal Texas purse |
|
amount, the commission shall establish a target balance of total |
|
purse funds for each calendar month. The target balance shall vary |
|
from month to month in order to fully support the seasonal nature of |
|
horse racing. |
|
Sec. 4.08. DEDUCTIONS FROM SLOT MACHINE INCOME AT GREYHOUND |
|
RACETRACKS. (a) The greyhound racing purse trust fund is |
|
established outside the state treasury and is held in trust by the |
|
comptroller for the administration of this Act. Money in the trust |
|
fund may be disbursed by the comptroller without appropriation as |
|
directed by the commission to carry out this Act. |
|
(b) A pari-mutuel license holder that owns or operates a |
|
greyhound racetrack at which slot machine games are conducted under |
|
Chapter 2022, Occupations Code, shall allocate 15 percent of the |
|
net slot income generated from the operation of slot machines at the |
|
slot establishment at the racetrack to purses. |
|
(c) A state breed registry that receives a disbursement |
|
under this section may allocate up to 50 percent of the amount |
|
received for Texas breeder awards. |
|
Sec. 4.09. ADMINISTRATION OF SLOT MACHINE ALLOCATIONS FOR |
|
PURSES. The comptroller and commission shall jointly adopt rules |
|
to administer Sections 4.07 and 4.08 of this Act. A matter |
|
considered by the comptroller or commission under either section is |
|
a contested case under Chapter 2001, Government Code, and requires |
|
a public hearing. |
|
SECTION 3. 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) was permitted under the Texas Racing Act (Article |
|
179e, Vernon's Texas Civil Statutes); [or] |
|
(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; |
|
or |
|
(6) consisted entirely of participation in authorized |
|
games in a casino or slot establishment licensed or authorized |
|
under Chapter 2022 or 2023, Occupations Code. |
|
SECTION 4. 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) to a casino or slot establishment licensed or |
|
authorized under Chapter 2022 or 2023, Occupations Code, for |
|
gaming; or |
|
(2) to another jurisdiction where the possession or |
|
use of the device, equipment, or paraphernalia was legal. |
|
SECTION 5. 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); |
|
(D) Chapter 2022, Occupations Code; or |
|
(E) Chapter 2023, Occupations Code; |
|
(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. |
|
SECTION 6. Subchapter H, Chapter 151, Tax Code, is amended |
|
by adding Section 151.356 to read as follows: |
|
Sec. 151.356. GAMING DEVICES. The sale or use of a gaming |
|
device permitted under Chapter 2022 or 2023, Occupations Code, is |
|
exempt from the tax imposed by this chapter and from the other |
|
provisions of this chapter. |
|
SECTION 7. Sections 1.03(3) and (5), Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes), are amended to read |
|
as follows: |
|
(3) "Commission" means the Texas Gaming [Racing] |
|
Commission. |
|
(5) "Executive secretary" means the executive |
|
director [secretary] of the Texas Gaming [Racing] Commission. |
|
SECTION 8. The heading to Article 2, Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes), is amended to read |
|
as follows: |
|
ARTICLE 2. ADMINISTRATION BY TEXAS GAMING [RACING] COMMISSION |
|
SECTION 9. Section 3.09(b), Texas Racing Act (Article 179e, |
|
Vernon's Texas Civil Statutes), is amended to read as follows: |
|
(b) The commission shall deposit the money it collects under |
|
this Act in the State Treasury to the credit of a special fund to be |
|
known as the Texas Racing [Commission] fund. The Texas Racing |
|
[Commission] fund may be appropriated only for the administration |
|
and enforcement of this Act. Any unappropriated money remaining in |
|
that special fund at the close of each fiscal biennium shall be |
|
transferred to the General Revenue Fund and may be appropriated for |
|
any legal purpose. The legislature may also appropriate money from |
|
the General Revenue Fund for the administration and enforcement of |
|
this Act. Any amount of general revenue appropriated for the |
|
administration and enforcement of this Act in excess of the |
|
cumulative amount deposited in the Texas Racing [Commission] fund |
|
shall be reimbursed from the Texas Racing [Commission] fund not |
|
later than one year after the date on which the general revenue |
|
funds are appropriated, with 12 percent interest per year until |
|
August 31, 1993, and 6-3/4 percent interest thereafter with all |
|
payments first attributable to interest. |
|
SECTION 10. The following laws are repealed: |
|
(1) Sections 2.01, 2.02, 2.03, 2.04, and 2.05, Texas |
|
Racing Act (Article 179e, Vernon's Texas Civil Statutes); |
|
(2) Sections 2.073, 2.074, 2.08, 2.09, 2.10, and 2.11, |
|
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes); and |
|
(3) Sections 6.093(a) and 18.01(a), Texas Racing Act |
|
(Article 179e, Vernon's Texas Civil Statutes). |
|
SECTION 11. (a) All funds in the Texas casino and slot |
|
gaming fund are appropriated to the Texas Gaming Commission for the |
|
operation of the commission and the administration of Subtitle A-1, |
|
Title 13, Occupations Code, as added by this Act, for the biennium |
|
ending August 31, 2011. |
|
(b) Not later than January 1, 2010, the initial members of |
|
the Texas Gaming Commission shall be appointed in accordance with |
|
Chapter 2021, Occupations Code, as added by this Act. In making the |
|
initial appointments, the governor shall designate one member to a |
|
term expiring February 1, 2012, two members to terms expiring |
|
February 1, 2014, and two members to terms expiring February 1, |
|
2016. |
|
(c) On September 1, 2010, or an earlier date specified in |
|
the transition plan required under Section 13 of this Act, all |
|
powers, duties, functions, programs, and activities related to |
|
administrative support services, such as strategic planning and |
|
evaluation, audit, legal, human resources, information resources, |
|
accounting, purchasing, financial management, and contract |
|
management services, of a state agency or entity abolished by |
|
Section 16 of this Act are transferred to the Texas Gaming |
|
Commission. |
|
(d) On the date specified by Subsection (c) of this section |
|
for the transfer described by that subsection: |
|
(1) all obligations and contracts of a state agency or |
|
entity that are related to a power, duty, function, program, or |
|
activity transferred from the agency or entity under Subsection (c) |
|
of this section are transferred to the Texas Gaming Commission; |
|
(2) all property and records in the custody of a state |
|
agency or entity that are related to a power, duty, function, |
|
program, or activity transferred from the agency or entity under |
|
Subsection (c) of this section and all funds appropriated by the |
|
legislature for the power, duty, function, program, or activity |
|
shall be transferred to the Texas Gaming Commission; and |
|
(3) all complaints, investigations, or contested |
|
cases that are pending before a state agency or entity or the |
|
governing body of the agency or entity and that are related to a |
|
power, duty, function, program, or activity transferred from the |
|
agency or entity under Subsection (c) of this section are |
|
transferred without change in status to the Texas Gaming |
|
Commission. |
|
(e) A rule or form adopted by a state agency or entity that |
|
relates to a power, duty, function, program, or activity |
|
transferred from the agency or entity under Subsection (c) of this |
|
section is a rule or form of the Texas Gaming Commission and remains |
|
in effect until altered by the commission. |
|
(f) A reference in law to a state agency or entity abolished |
|
by Section 16 of this Act, or to the governing body of the agency or |
|
entity, that relates to a power, duty, function, program, or |
|
activity transferred under Subsection (c) of this section means the |
|
Texas Gaming Commission. |
|
(g) A license, permit, or certification in effect that was |
|
issued by a state agency or entity abolished by Section 16 of this |
|
Act and that relates to a power, duty, function, program, or |
|
activity transferred under Subsection (c) of this section is |
|
continued in effect as a license, permit, or certification of the |
|
Texas Gaming Commission. |
|
SECTION 12. (a) The Texas Gaming Commission Transition |
|
Legislative Oversight Committee is created to facilitate the |
|
transfer of powers, duties, functions, programs, and activities |
|
between the agency abolished by Section 16 of this Act and the Texas |
|
Gaming Commission as provided by this Act with a minimal negative |
|
effect on the operation of those regulated activities in this |
|
state. |
|
(b) The committee is composed of seven members as follows: |
|
(1) two members of the senate, appointed by the |
|
lieutenant governor not later than December 1, 2009; |
|
(2) two members of the house of representatives, |
|
appointed by the speaker of the house of representatives not later |
|
than December 1, 2009; and |
|
(3) three members of the public, appointed by the |
|
governor not later than December 1, 2009. |
|
(c) Once the other members of the committee have been |
|
appointed, the executive director of the Texas Gaming Commission |
|
serves as an ex officio member of the committee. |
|
(d) A member of the committee serves at the pleasure of the |
|
appointing official. |
|
(e) The lieutenant governor and the speaker of the house of |
|
representatives shall alternate designating a presiding officer |
|
from among their respective appointments. The speaker of the house |
|
of representatives shall make the first appointment after the |
|
effective date of this section. |
|
(f) A member of the committee may not receive compensation |
|
for serving on the committee but is entitled to reimbursement for |
|
travel expenses incurred by the member while conducting the |
|
business of the committee as provided by the General Appropriations |
|
Act. |
|
(g) The committee shall: |
|
(1) facilitate the transfer of powers, duties, |
|
functions, programs, and activities between the agencies abolished |
|
by Section 16 of this Act and the Texas Gaming Commission as |
|
provided by this Act with a minimal negative effect on the gaming |
|
activities regulated in this state; |
|
(2) with assistance from the Texas Gaming Commission |
|
and the agency abolished by Section 16 of this Act, advise the |
|
executive commissioner of the Texas Gaming Commission concerning: |
|
(A) the powers, duties, functions, programs, and |
|
activities transferred under this Act and the funds and obligations |
|
that are related to the powers, duties, functions, programs, or |
|
activities; and |
|
(B) the transfer of the powers, duties, |
|
functions, programs, activities, records, property, funds, |
|
obligations, and employees by the entities as required by Section |
|
11 of this Act; |
|
(3) meet at the call of the presiding officer; |
|
(4) research, take public testimony, and issue reports |
|
on other appropriate issues or specific issues requested by the |
|
lieutenant governor, speaker, or governor; and |
|
(5) review specific recommendations for legislation |
|
proposed by the Texas Gaming Commission or the other agencies. |
|
(h) The committee may request reports and other information |
|
from the Texas Gaming Commission, other state agencies, and the |
|
attorney general relating to gaming in this state and other |
|
appropriate issues. |
|
(i) The committee shall use existing staff of the senate, |
|
the house of representatives, and the Texas Legislative Council to |
|
assist the committee in performing its duties under this section. |
|
(j) Chapter 551, Government Code, applies to the committee. |
|
(k) The committee shall report to the governor, lieutenant |
|
governor, and speaker of the house of representatives not later |
|
than November 15 of each even-numbered year. The report must |
|
include: |
|
(1) identification of significant issues within |
|
gaming regulation, with recommendations for action; |
|
(2) an analysis of the effectiveness and efficiency of |
|
gaming regulation, with recommendations for any necessary |
|
research; and |
|
(3) recommendations for legislative action. |
|
SECTION 13. (a) The transfer of powers, duties, functions, |
|
programs, and activities under Section 11 of this Act to the Texas |
|
Gaming Commission must be accomplished in accordance with a |
|
schedule included in a transition plan developed by the executive |
|
commissioner of the Texas Gaming Commission and submitted to the |
|
governor and the Legislative Budget Board not later than September |
|
1, 2010. The executive commissioner shall provide to the governor |
|
and the Legislative Budget Board transition plan status reports and |
|
updates on at least a quarterly basis following submission of the |
|
initial transition plan. The transition plan must be made |
|
available to the public. |
|
(b) Not later than March 1, 2010, the Texas Gaming |
|
Commission shall hold a public hearing and accept public comment |
|
regarding the transition plan required to be developed by the |
|
executive commissioner of the Texas Gaming Commission under this |
|
section. |
|
(c) In developing the transition plan, the executive |
|
commissioner of the Texas Gaming Commission shall hold public |
|
hearings in various geographic areas in this state before |
|
submitting the plan to the governor and the Legislative Budget |
|
Board as required by this section. |
|
SECTION 14. An action brought or proceeding commenced |
|
before the date of a transfer prescribed by this Act in accordance |
|
with the transition plan required under Section 13 of this Act, |
|
including a contested case or a remand of an action or proceeding by |
|
a reviewing court, is governed by the laws and rules applicable to |
|
the action or proceeding before the transfer. |
|
SECTION 15. (a) The Texas Gaming Commission shall |
|
implement the powers, duties, functions, programs, and activities |
|
assigned to the commission under this Act in accordance with a work |
|
plan designed by the commission to ensure that the transfer of |
|
gaming regulation under this Act is accomplished in a careful and |
|
deliberative manner. |
|
(b) A work plan designed by the commission under this |
|
section must include the following phases: |
|
(1) a planning phase, during which the commission will |
|
focus on and stabilize the organization of the agency's powers, |
|
duties, functions, programs, and activities, and which must |
|
include: |
|
(A) initiation of recommendations made by the |
|
Texas Gaming Commission Transition Legislative Oversight |
|
Committee; |
|
(B) creation of interagency and intra-agency |
|
steering committees; |
|
(C) development of global visions, goals, and |
|
organizational strategies; and |
|
(D) development of communications and risk |
|
management plans; |
|
(2) an integration phase, during which the commission |
|
will identify opportunities and problems and design customized |
|
solutions for those problems, and which must include: |
|
(A) identification of key issues related to costs |
|
or legal requirements for other commission activities; |
|
(B) planning for daily operations; and |
|
(C) validation of fiscal and program synergies; |
|
(3) an optimization phase, during which the commission |
|
will complete and expand on the initial transitions, and which must |
|
include: |
|
(A) optimization of initial implementation |
|
initiatives; |
|
(B) use of enterprise teaming operations; |
|
(C) building infrastructures to support and |
|
facilitate changes in gaming regulation and oversight; and |
|
(D) identification and use of beneficial assets |
|
management and facilities approaches; and |
|
(4) a transformation phase, during which the |
|
commission will continue implementing initial and additional |
|
changes in gaming regulation and oversight, and which must include |
|
implementation of changes in agency management activities. |
|
SECTION 16. (a) The Texas Racing Commission is abolished on |
|
the date on which the powers, duties, functions, programs, and |
|
activities are transferred under Section 11 of this Act, and after |
|
that date a reference in any law to the Texas Racing Commission |
|
means the Texas Gaming Commission. |
|
(b) The abolition of a state agency or entity under |
|
Subsection (a) of this section and the transfer of its powers, |
|
duties, functions, programs, activities, obligations, rights, |
|
contracts, records, property, funds, and employees as provided by |
|
this Act do not affect or impair an act done, any obligation, right, |
|
order, permit, certificate, rule, criterion, standard, or |
|
requirement existing, or any penalty accrued under former law, and |
|
that law remains in effect for any action concerning those matters. |
|
SECTION 17. As soon as practicable after the constitutional |
|
amendment to authorize casino gaming and slot machine gaming in |
|
this state proposed by the 81st Legislature, Regular Session, 2009, |
|
is approved by the voters and becomes effective, the Texas Gaming |
|
Commission shall adopt the rules necessary to implement that gaming |
|
in accordance with Chapter 2022, Occupations Code, as added by this |
|
Act. |
|
SECTION 18. (a) Sections 7 through 10 of this Act take |
|
effect on the date the Texas Racing Commission is abolished under |
|
Section 16 of this Act. |
|
(b) Sections 1 through 6 and 11 through 17 of this Act and |
|
this section take effect on the date the amendment adding Section |
|
47-a, Article III, Texas Constitution, authorizing and regulating |
|
slot machines and casino games by licensed operators and certain |
|
Indian tribes to provide additional money to fund transportation in |
|
this state and to provide additional financial aid for higher |
|
education students proposed by the 81st Legislature, Regular |
|
Session, 2009, becomes effective. If that amendment is not |
|
approved by the voters, this Act has no effect. |