82R9372 MCK-D

By: Hilderbran H.B. No. 700

A BILL TO BE ENTITLED

AN ACT

relating to consolidating the functions of the Texas Racing Commission, the Texas Lottery Commission, and the Texas Alcoholic Beverage Commission.

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

ARTICLE 1. TEXAS ALCOHOLIC BEVERAGE AND GAMING COMMISSION

SECTION 1.01. The heading to Chapter 5, Alcoholic Beverage Code, is amended to read as follows:

CHAPTER 5. TEXAS ALCOHOLIC BEVERAGE AND GAMING COMMISSION

SECTION 1.02. Section 5.01, Alcoholic Beverage Code, is amended to read as follows:

Sec. 5.01. TEXAS ALCOHOLIC BEVERAGE AND GAMING COMMISSION. (a) The Texas Alcoholic Beverage and Gaming Commission is an agency of the state.

(b) The Texas Alcoholic Beverage and 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 and except as provided by Subsections (c) and (d), Subchapter A, Chapter 5, of this code, Chapters 466 and 467, Government Code, Chapter 2001, Occupations Code, and the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) expire [expires] September 1, 2019.

(c) If, at the time the commission would be abolished under Subsection (b), an association created under the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) has outstanding long-term liabilities:

(1) the association may continue to operate for a period not to exceed one year after those liabilities are satisfied; and

(2) the commission and the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) are continued in effect for the purpose of regulating that association under the Texas Racing Act.

(d) If the commission and the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) are continued in effect under Subsection (c), the commission is abolished and the Texas Racing Act expires on the first day of the fiscal year following the fiscal year in which the commission certifies to the secretary of state that no associations are operating under the terms of Subsection (c).

(e) An association that continues to operate under Subsection (c) may not incur any new liabilities without the approval of the commission. At the beginning of that period, the commission shall review the outstanding liabilities of the association and shall set a specific date by which the association must retire its outstanding liabilities. Notwithstanding any contrary contract provisions, an association regulated under the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) may prepay any debt incurred by the association in conducting racing under the Texas Racing Act.

SECTION 1.03. Section 5.02, Alcoholic Beverage Code, is amended by amending Subsection (a) and adding Subsection (e) to read as follows:

(a) The commission is composed of five [three] members, who are appointed by the governor with the advice and consent of the senate. The members of the commission must have general knowledge of business. One member of the commission must have experience in the bingo industry, one member must have special knowledge or experience related to greyhound racing, and one member must have special knowledge or experience related to horse racing.

(e) The governor shall conduct an investigation of and is entitled to obtain criminal history record information maintained by the Department of Public Safety, the Federal Bureau of Investigation identification division, or another law enforcement agency relating to an individual the governor intends to appoint to the commission.

SECTION 1.04. Subchapter A, Chapter 5, Alcoholic Beverage Code, is amended by adding Sections 5.021 and 5.023 to read as follows:

Sec. 5.021. COMMISSION MEMBER ELIGIBILITY. (a) In this section, "Texas trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

(b) An individual is not eligible to be a member of the commission if the individual:

(1) with respect to an alcoholic beverage business:

(A) has any financial connection with a person engaged in an alcoholic beverage business;

(B) holds stocks or bonds in an alcoholic beverage business; or

(C) has a pecuniary interest in an alcoholic beverage business;

(2) with respect to other business regulated by the commission, owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by the commission or receiving funds from the commission;

(3) is employed by or participates in the management of a business entity or other organization regulated by the commission or receiving funds from the commission;

(4) uses or receives a substantial amount of tangible goods, services, or funds from the commission, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses;

(5) is an officer, employee, or paid consultant of a Texas trade association in the field of alcoholic beverages, bingo, lottery, or horse or greyhound racing or breeding;

(6) 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;

(7) owns any financial interest in a racetrack or its operation or is related within the second degree by affinity or the third degree by consanguinity, as determined under Subchapter B, Chapter 573, Government Code, to a person who owns any financial interest in a racetrack or its operation;

(8) is married to an individual described by Subdivisions (1)-(7);

(9) has been convicted of a felony or of any crime involving moral turpitude; or

(10) is not a citizen of the United States.

Sec. 5.023. PROHIBITED CONDUCT FOR COMMISSION MEMBERS. (a) A commission member may not:

(1) accept any employment or remuneration from:

(A) a person that has a significant financial interest in the lottery; or

(B) a bingo commercial lessor, bingo distributor, or bingo manufacturer;

(2) play any lottery or bingo game conducted in this state;

(3) accept or be entitled to accept any part of the winnings to be paid from a lottery or bingo game conducted in this state;

(4) use the member's official authority to affect the result of an election or nomination for public office;

(5) 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; or

(6) receive a commission or profit from or have an interest in the sale or purchase of alcoholic beverages.

(b) A commission member or former commission member or the spouse of a commission member or former commission member may not solicit or accept employment from a person regulated by the commission before the second anniversary of the date on which the commission member's service on the commission ends.

SECTION 1.05. Section 5.05, Alcoholic Beverage Code, is amended to read as follows:

Sec. 5.05. EMPLOYEE'S RELATIONSHIP WITH CERTAIN BUSINESSES [ALCOHOLIC BEVERAGE BUSINESS] PROHIBITED. (a) A [No] person may not [be appointed to or serve on the commission, or] hold an office under the commission, or be employed by the commission, if the person [who]:

(1) has any financial connection with a person engaged in an alcoholic beverage business;

(2) holds stocks or bonds in an alcoholic beverage business; [or]

(3) has a pecuniary interest in:

(A) an alcoholic beverage business;

(B) a bingo commercial lessor, bingo distributor, or bingo manufacturer;

(C) a lottery sales agency or a lottery operator; or

(D) a racetrack licensed by the commission;

(4) owns or leases a race animal that participates in pari-mutuel racing in this state;

(5) accepts or is entitled to any part of the purse or Texas-bred incentive award to be paid on a greyhound or a horse in a race conducted in this state; or

(6) is a spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of residence of a person who is subject to a disqualification prescribed by this subsection.

(b) A person [No member of the commission, or anyone] holding an office under or employed by the commission[, or any employee of the commission,] may not receive a commission or profit from or have an interest in the sale or purchase of alcoholic beverages.

(c) A person may not [be a member of the commission or] act as the 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.

(d) A person [may not be a member of the commission and] may not be a commission employee 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, or paid consultant of a Texas trade association in the field of alcoholic beverages, the lottery, bingo, or horse or greyhound racing or breeding; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of alcoholic beverages, the lottery, bingo, or horse or greyhound racing or breeding.

(e) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide association of businesses 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.

SECTION 1.06. Subchapter A, Chapter 5, Alcoholic Beverage Code, is amended by adding Section 5.055 to read as follows:

Sec. 5.055. ACCESS TO CRIMINAL HISTORY RECORDS; INVESTIGATION. The commission shall conduct an investigation of and is entitled to obtain criminal history record information maintained by the Department of Public Safety, the Federal Bureau of Investigation identification division, or another law enforcement agency relating to an individual the commission intends to employ.

SECTION 1.07. Section 5.07, Alcoholic Beverage Code, is amended by adding Subsections (a-1) and (d) to read as follows:

(a-1) The commission shall hold at least six regular meetings each year on dates fixed by the commission. The commission may meet at other times at the call of the presiding officer or as provided by commission rule.

(d) Section 551.002, Government Code, does not apply to a closed meeting of the commission relating to the negotiation of a lottery operator's contract if the commission determines, in writing, that an open meeting would have a detrimental effect on the commission's position in the negotiations.

SECTION 1.08. Section 5.11, Alcoholic Beverage Code, is amended to read as follows:

Sec. 5.11. ADMINISTRATOR. (a) The commission shall appoint an administrator to serve at its will and, subject to its supervision, administer this code. Unless the commission orders otherwise, the administrator shall be manager, secretary, and custodian of all records. The administrator shall devote his entire time to the office and shall receive a salary as appropriated by the legislature.

(b) The administrator is specifically exempted from Chapter 654, Government Code.

SECTION 1.09. Subchapter B, Chapter 5, Alcoholic Beverage Code, is amended by adding Section 5.312 to read as follows:

Sec. 5.312. DIVISIONS. (a) The commission shall establish separate divisions to oversee alcoholic beverage regulation, the lottery, bingo, and horse and greyhound racing.

(b) The administrator shall employ a director to oversee each division.

(c) A division director serves at the will of the executive director and is specifically exempted from Chapter 654, Government Code.

ARTICLE 2. CONFORMING AMENDMENTS

SECTION 2.01. Section 12.039(e), Agriculture Code, is amended to read as follows:

(e) The commissioner shall submit the commissioner's determination to the Texas Alcoholic Beverage and Gaming Commission in writing and publish the commissioner's determination in the Texas Register and on the department's Internet website not later than December 31 of the study year.

SECTION 2.02. Section 50B.002(b), Agriculture Code, is amended to read as follows:

(b) The committee consists of members appointed by the commissioner who represent a diverse cross-section of the wine industry, including representatives of:

(1) grape growers;

(2) wineries;

(3) wholesalers;

(4) package stores;

(5) retailers;

(6) researchers;

(7) consumers;

(8) the department; and

(9) the Texas Alcoholic Beverage and Gaming Commission.

SECTION 2.03. Section 1.04(10), Alcoholic Beverage Code, is amended to read as follows:

(10) "Commission" means the Texas Alcoholic Beverage and Gaming Commission.

SECTION 2.04. Section 5.331, Alcoholic Beverage Code, is amended to read as follows:

Sec. 5.331. PUBLIC DISTURBANCE REPORTS. Local law enforcement agencies in each county with a population of 3.3 million or more shall send to the commission reports and other data concerning shootings, stabbings, and other public disturbances that occur on the premises of a permittee or licensee. The reports and data shall be incorporated into the record of the permittee or licensee. The administrator of the Texas Alcoholic Beverage and Gaming Commission shall prescribe the form and content of such reports.

SECTION 2.05. Section 87.002, Civil Practice and Remedies Code, is amended to read as follows:

Sec. 87.002. APPLICABILITY OF CHAPTER. This chapter does not apply to an activity regulated by the Texas Alcoholic Beverage and Gaming [Racing] Commission.

SECTION 2.06. Section 104.001, Civil Practice and Remedies Code, is amended to read as follows:

Sec. 104.001. STATE LIABILITY; PERSONS COVERED. In a cause of action based on conduct described in Section 104.002, the state shall indemnify the following persons, without regard to whether the persons performed their services for compensation, for actual damages, court costs, and attorney's fees adjudged against:

(1) an employee, a member of the governing board, or any other officer of a state agency, institution, or department;

(2) a former employee, former member of the governing board, or any other former officer of a state agency, institution, or department who was an employee or officer when the act or omission on which the damages are based occurred;

(3) a physician or psychiatrist licensed in this state who was performing services under a contract with any state agency, institution, or department or a racing official performing services under a contract with the Texas Alcoholic Beverage and Gaming [Racing] Commission when the act or omission on which the damages are based occurred;

(3-a) a phlebotomist licensed in this state who was performing services under a contract with the Texas Department of Criminal Justice when the act or omission on which the damages are based occurred;

(4) a chaplain or spiritual advisor who was performing services under contract with the Texas Department of Criminal Justice, the Texas Youth Commission, or the Texas Juvenile Probation Commission when the act or omission on which the damages are based occurred;

(5) a person serving on the governing board of a foundation, corporation, or association at the request and on behalf of an institution of higher education, as that term is defined by Section 61.003(8), Education Code, not including a public junior college;

(6) a state contractor who signed a waste manifest as required by a state contract; or

(7) the estate of a person listed in this section.

SECTION 2.07. Article 2.12, Code of Criminal Procedure, is amended to read as follows:

Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace officers:

(1) sheriffs, their deputies, and those reserve deputies who hold a permanent peace officer license issued under Chapter 1701, Occupations Code;

(2) constables, deputy constables, and those reserve deputy constables who hold a permanent peace officer license issued under Chapter 1701, Occupations Code;

(3) marshals or police officers of an incorporated city, town, or village, and those reserve municipal police officers who hold a permanent peace officer license issued under Chapter 1701, Occupations Code;

(4) rangers and officers commissioned by the Public Safety Commission and the Director of the Department of Public Safety;

(5) investigators of the district attorneys', criminal district attorneys', and county attorneys' offices;

(6) law enforcement agents of the Texas Alcoholic Beverage and Gaming Commission;

(7) each member of an arson investigating unit commissioned by a city, a county, or the state;

(8) officers commissioned under Section 37.081, Education Code, or Subchapter E, Chapter 51, Education Code;

(9) officers commissioned by the General Services Commission;

(10) law enforcement officers commissioned by the Parks and Wildlife Commission;

(11) airport police officers commissioned by a city with a population of more than 1.18 million that operates an airport that serves commercial air carriers;

(12) airport security personnel commissioned as peace officers by the governing body of any political subdivision of this state, other than a city described by Subdivision (11), that operates an airport that serves commercial air carriers;

(13) municipal park and recreational patrolmen and security officers;

(14) security officers and investigators commissioned as peace officers by the comptroller;

(15) officers commissioned by a water control and improvement district under Section 49.216, Water Code;

(16) officers commissioned by a board of trustees under Chapter 54, Transportation Code;

(17) investigators commissioned by the Texas Medical Board;

(18) officers commissioned by the board of managers of the Dallas County Hospital District, the Tarrant County Hospital District, or the Bexar County Hospital District under Section 281.057, Health and Safety Code;

(19) county park rangers commissioned under Subchapter E, Chapter 351, Local Government Code;

(20) [investigators employed by the Texas Racing Commission;

[(21)] officers commissioned under Chapter 554, Occupations Code;

(21) [(22)] officers commissioned by the governing body of a metropolitan rapid transit authority under Section 451.108, Transportation Code, or by a regional transportation authority under Section 452.110, Transportation Code;

(22) [(23)] investigators commissioned by the attorney general under Section 402.009, Government Code;

(23) [(24)] security officers and investigators commissioned as peace officers under Chapter 466, Government Code;

(24) [(25)] an officer employed by the Department of State Health Services under Section 431.2471, Health and Safety Code;

(25) [(26)] officers appointed by an appellate court under Subchapter F, Chapter 53, Government Code;

(26) [(27)] officers commissioned by the state fire marshal under Chapter 417, Government Code;

(27) [(28)] an investigator commissioned by the commissioner of insurance under Section 701.104, Insurance Code;

(28) [(29)] apprehension specialists and inspectors general commissioned by the Texas Youth Commission as officers under Sections 61.0451 and 61.0931, Human Resources Code;

(29) [(30)] officers appointed by the inspector general of the Texas Department of Criminal Justice under Section 493.019, Government Code;

(30) [(31)] investigators commissioned by the Commission on Law Enforcement Officer Standards and Education under Section 1701.160, Occupations Code;

(31) [(32)] commission investigators commissioned by the Texas Private Security Board under Section 1702.061(f), Occupations Code;

(32) [(33)] the fire marshal and any officers, inspectors, or investigators commissioned by an emergency services district under Chapter 775, Health and Safety Code;

(33) [(34)] officers commissioned by the State Board of Dental Examiners under Section 254.013, Occupations Code, subject to the limitations imposed by that section;

(34) [(35)] investigators commissioned by the Texas Juvenile Probation Commission as officers under Section 141.055, Human Resources Code; and

(35) [(36)] the fire marshal and any related officers, inspectors, or investigators commissioned by a county under Subchapter B, Chapter 352, Local Government Code.

SECTION 2.08. Section 38.007(b), Education Code, is amended to read as follows:

(b) The board of trustees of a school district shall attempt to provide a safe alcohol-free environment to students coming to or going from school. The board of trustees may cooperate with local law enforcement officials and the Texas Alcoholic Beverage and Gaming Commission in attempting to provide this environment and in enforcing Sections 101.75, 109.33, and 109.59, Alcoholic Beverage Code. Additionally, the board, if a majority of the area of a district is located in a municipality with a population of 900,000 or more, may petition the commissioners court of the county in which the district is located or the governing board of an incorporated city or town in which the district is located to adopt a 1,000-foot zone under Section 109.33, Alcoholic Beverage Code.

SECTION 2.09. Sections 88.526(a) and (c), Education Code, are amended to read as follows:

(a) The director shall prepare an annual report on equine research funded under this subchapter. The director shall distribute the report to the Texas Alcoholic Beverage and Gaming [Racing] Commission and the members of the advisory committee. The director shall make copies of the report available to interested parties.

(c) The director shall, at least annually, consult with the Texas Alcoholic Beverage and Gaming [Racing] Commission on the use of the account and the impact of equine research funded by the account.

SECTION 2.10. Section 232.0021, Family Code, is amended to read as follows:

Sec. 232.0021. APPLICATION OF CHAPTER TO TEXAS ALCOHOLIC BEVERAGE AND GAMING [LOTTERY] COMMISSION. With respect to the Texas Alcoholic Beverage and Gaming [Lottery] Commission, this chapter applies only to a lottery ticket sales agent license issued under Chapter 466, Government Code.

SECTION 2.11. Section 232.015(e), Family Code, is amended to read as follows:

(e) The Title IV-D agency, the comptroller, and the Texas Alcoholic Beverage and Gaming Commission shall by rule specify additional prerequisites for the suspension of licenses relating to state taxes collected under Title 2, Tax Code. The joint rules must be adopted not later than March 1, 1996.

SECTION 2.12. Section 402.035(c), Government Code, is amended to read as follows:

(c) The task force is composed of the following:

(1) the governor or the governor's designee;

(2) the attorney general or the attorney general's designee;

(3) the executive commissioner of the Health and Human Services Commission or the executive commissioner's designee;

(4) the commissioner of the Department of Family and Protective Services or the commissioner's designee;

(5) the public safety director of the Department of Public Safety or the director's designee;

(6) one representative from each of the following state agencies, appointed by the chief administrative officer of the respective agency:

(A) the Texas Workforce Commission;

(B) the Texas Department of Criminal Justice;

(C) the Texas Youth Commission;

(D) the Texas Juvenile Probation Commission; and

(E) the Texas Alcoholic Beverage and Gaming Commission; and

(7) as appointed by the attorney general:

(A) a public defender, as defined by Article 26.044, Code of Criminal Procedure;

(B) an attorney representing the state;

(C) a representative of:

(i) a hotel and motel association;

(ii) a district and county attorneys association; and

(iii) a state police association;

(D) representatives of sheriff's departments;

(E) representatives of local law enforcement agencies affected by human trafficking; and

(F) representatives of nongovernmental entities making comprehensive efforts to combat human trafficking by:

(i) identifying human trafficking victims;

(ii) providing legal or other services to human trafficking victims;

(iii) participating in community outreach or public awareness efforts regarding human trafficking;

(iv) providing or developing training regarding the prevention of human trafficking; or

(v) engaging in other activities designed to prevent human trafficking.

SECTION 2.13. The heading to Section 411.091, Government Code, is amended to read as follows:

Sec. 411.091. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION: TEXAS ALCOHOLIC BEVERAGE AND GAMING COMMISSION.

SECTION 2.14. Section 411.091(a), Government Code, is amended to read as follows:

(a) The Texas Alcoholic Beverage and Gaming Commission is entitled to obtain from the department criminal history record information maintained by the department that the commission believes is necessary for the enforcement or administration of the Alcoholic Beverage Code.

SECTION 2.15. The heading to Section 411.0915, Government Code, is amended to read as follows:

Sec. 411.0915. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION OF POLITICAL SUBDIVISIONS: TEXAS ALCOHOLIC BEVERAGE AND GAMING COMMISSION.

SECTION 2.16. Section 411.096(a), Government Code, is amended to read as follows:

(a) The Texas Alcoholic Beverage and Gaming [Racing] Commission is entitled to obtain from the department criminal history record information maintained by the department that pertains to a person who is:

(1) appointed to the commission;

(2) an applicant for employment by the commission; or

(3) an applicant for a license under the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes).

SECTION 2.17. The heading to Section 411.108, Government Code, is amended to read as follows:

Sec. 411.108. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION: TEXAS ALCOHOLIC BEVERAGE AND GAMING [LOTTERY] COMMISSION.

SECTION 2.18. Sections 411.108(a) and (a-1), Government Code, are amended to read as follows:

(a) The Texas Alcoholic Beverage and Gaming [Lottery] Commission is entitled to obtain from the department criminal history record information maintained by the department that relates to a person who, under Chapter 466, is:

(1) a sales agent or an applicant for a sales agent license;

(2) a person required to be named in a license application;

(3) a lottery operator or prospective lottery operator;

(4) an employee of a lottery operator or prospective lottery operator, if the employee is or will be directly involved in lottery operations;

(5) a person who manufactures or distributes lottery equipment or supplies or a representative of a person who manufactures or distributes lottery equipment or supplies offered to the lottery;

(6) a person who has submitted a written bid or proposal to the commission in connection with the procurement of goods or services by the commission, if the amount of the bid or proposal exceeds $500;

(7) an employee or other person who works for or will work for a sales agent or an applicant for a sales agent license;

(8) a person who proposes to enter into or who has a contract with the commission to supply goods or services to the commission;

(9) if a person described in Subdivisions (1) through (8) of this section is not an individual, an individual who:

(A) is an officer or director of the person;

(B) holds more than 10 percent of the stock in the person;

(C) holds an equitable interest greater than 10 percent in the person;

(D) is a creditor of the person who holds more than 10 percent of the person's outstanding debt;

(E) is the owner or lessee of a business that the person conducts or through which the person will conduct lottery-related activities;

(F) shares or will share in the profits, other than stock dividends, of the person;

(G) participates in managing the affairs of the person; or

(H) is an employee of the person who is or will be involved in:

(i) selling tickets; or

(ii) handling money from the sale of tickets;

(10) the executive director or a prospective executive director of the commission;

(11) an employee or prospective employee of the commission; or

(12) a sales agent whose license is renewed under Section 466.158.

(a-1) The Texas Alcoholic Beverage and Gaming [Lottery] Commission is entitled to obtain from the department criminal history record information maintained by the department that relates to a person licensed under Chapter 2001, Occupations Code, or described by Section 2001.3025, Occupations Code.

SECTION 2.19. Section 411.204(a), Government Code, is amended to read as follows:

(a) A business that has a permit or license issued under Chapter 25, 28, 32, 69, or 74, Alcoholic Beverage Code, and that derives 51 percent or more of its income from the sale of alcoholic beverages for on-premises consumption as determined by the Texas Alcoholic Beverage and Gaming Commission under Section 104.06, Alcoholic Beverage Code, shall prominently display at each entrance to the business premises a sign that complies with the requirements of Subsection (c).

SECTION 2.20. Sections 466.002(1) and (4), Government Code, are amended to read as follows:

(1) "Commission" means the Texas Alcoholic Beverage and Gaming [Lottery] Commission.

(4) "Executive director" means the administrator [executive director] of the commission.

SECTION 2.21. Section 466.027(c), Government Code, is amended to read as follows:

(c) The commission shall market and advertise the lottery game operated under this section in a manner intended to inform the public that the game tickets are available for purchase and that the game proceeds are used to fund veterans programs in this state. The game tickets must clearly state that the game proceeds are used to benefit the veterans in this state. The Texas Veterans Commission may make recommendations to the Texas Alcoholic Beverage and Gaming [Lottery] Commission relating to the marketing and advertising of the game.

SECTION 2.22. Section 466.155(g), Government Code, is amended to read as follows:

(g) For purposes of Subsection (a)(3), the comptroller, Texas Workforce Commission, Texas Alcoholic Beverage and Gaming Commission, Texas Higher Education Coordinating Board, and Texas Guaranteed Student Loan Corporation shall each provide the executive director with a report of persons who have been finally determined to be delinquent in the payment of any money owed to or collected by that agency. The commission shall adopt rules regarding the form and frequency of reports under this subsection.

SECTION 2.23. Sections 466.407(a) and (c), Government Code, are amended to read as follows:

(a) The executive director shall deduct the amount of a delinquent tax or other money from the winnings of a person who has been finally determined to be:

(1) delinquent in the payment of a tax or other money collected by the comptroller, the Texas Workforce Commission, or the Texas Alcoholic Beverage and Gaming Commission;

(2) delinquent in making child support payments administered or collected by the attorney general;

(3) delinquent in reimbursing the Texas Department of Human Services for a benefit granted in error under the food stamp program or the program of financial assistance under Chapter 31, Human Resources Code;

(4) in default on a loan made under Chapter 52, Education Code; or

(5) in default on a loan guaranteed under Chapter 57, Education Code.

(c) The attorney general, comptroller, Texas Workforce Commission, Texas Alcoholic Beverage and Gaming Commission, Texas Department of Human Services, Texas Higher Education Coordinating Board, and Texas Guaranteed Student Loan Corporation shall each provide the executive director with a report of persons who have been finally determined to be delinquent in the payment of a tax or other money collected by the agency. The commission shall adopt rules regarding the form and frequency of reports under this subsection.

SECTION 2.24. Sections 467.001(1) and (2), Government Code, are amended to read as follows:

(1) "Commission" means the Texas Alcoholic Beverage and Gaming [Lottery] Commission.

(2) "Executive director" means the administrator [executive director] of the Texas Alcoholic Beverage and Gaming [Lottery] Commission.

SECTION 2.25. Sections 572.003(b) and (c), Government Code, are amended to read as follows:

(b) The term means:

(1) the Banking Commissioner of The Banking Department of Texas;

(2) the fire fighters' pension commissioner;

(3) the administrative director of the Office of Court Administration of the Texas Judicial System;

(4) the chief executive of the Office of Public Utility Counsel;

(5) the executive director of the State Bar of Texas; or

(6) [the director of the lottery division of the Texas Lottery Commission;

[(7) the deputy in charge of the department of security in the lottery division of the Texas Lottery Commission;

[(8) the director of the bingo division of the Texas Lottery Commission; or

[(9)] the secretary of state.

(c) The term means a member of:

(1) the Public Utility Commission of Texas;

(2) [the Texas Department of Economic Development;

[(3)] the Texas Commission on Environmental Quality;

(3) [(4)] the Texas Alcoholic Beverage and Gaming Commission;

(4) [(5)] The Finance Commission of Texas;

(5) [(6)] the Texas Facilities Commission;

(6) [(7)] the Texas Board of Criminal Justice;

(7) [(8)] the board of trustees of the Employees Retirement System of Texas;

(8) [(9)] the Texas Transportation Commission;

(9) [(10) the Texas Workers' Compensation Commission;

[(11)] the Texas Department of Insurance;

(10) [(12)] the Parks and Wildlife Commission;

(11) [(13)] the Public Safety Commission;

(12) [(14)] the Texas Ethics Commission;

(13) [(15)] the State Securities Board;

(14) [(16)] the Texas Water Development Board;

(15) [(17)] the governing board of a public senior college or university as defined by Section 61.003, Education Code, or of The University of Texas Southwestern Medical Center at Dallas, The University of Texas Medical Branch at Galveston, The University of Texas Health Science Center at Houston, The University of Texas Health Science Center at San Antonio, The University of Texas System M. D. Anderson Cancer Center, The University of Texas Health Science Center at Tyler, University of North Texas Health Science Center at Fort Worth, Texas Tech University Health Sciences Center, Texas State Technical College--Harlingen, Texas State Technical College--Marshall, Texas State Technical College--Sweetwater, or Texas State Technical College--Waco;

(16) [(18)] the Texas Higher Education Coordinating Board;

(17) [(19)] the Texas Workforce Commission;

(18) [(21)] the board of trustees of the Teacher Retirement System of Texas;

(19) [(22)] the Credit Union Commission;

(20) [(23)] the School Land Board;

(21) [(24)] the board of the Texas Department of Housing and Community Affairs;

(22) [(25) the Texas Racing Commission;

[(26)] the State Board of Dental Examiners;

(23) [(27)] the Texas Medical [State] Board [of Medical Examiners];

(24) [(28)] the Board of Pardons and Paroles;

(25) [(29)] the Texas State Board of Pharmacy;

(26) [(30)] the Department of Information Resources governing board;

(27) [(31)] the Motor Vehicle Board;

(28) [(32)] the Texas Real Estate Commission;

(29) [(33)] the board of directors of the State Bar of Texas;

(30) [(34)] the bond review board;

(31) [(35)] the [Texas Board of] Health and Human Services Commission;

(32) [(36) the Texas Board of Mental Health and Mental Retardation;

[(37) the Texas Board on Aging;

[(38) the Texas Board of Human Services;

[(39)] the Texas Funeral Service Commission; or

(33) [(40)] the board of directors of a river authority created under the Texas Constitution or a statute of this state[; or

[(41) the Texas Lottery Commission].

SECTION 2.26. Section 614.021(a), Government Code, is amended to read as follows:

(a) Except as provided by Subsection (b), this subchapter applies only to a complaint against:

(1) a law enforcement officer of the State of Texas, including an officer of the Department of Public Safety or of the Texas Alcoholic Beverage and Gaming Commission;

(2) a fire fighter who is employed by this state or a political subdivision of this state;

(3) a peace officer under Article 2.12, Code of Criminal Procedure, or other law who is appointed or employed by a political subdivision of this state; or

(4) a detention officer or county jailer who is appointed or employed by a political subdivision of this state.

SECTION 2.27. Section 614.171(1), Government Code, is amended to read as follows:

(1) "Law enforcement agency" means the Department of Public Safety, Texas Alcoholic Beverage and Gaming Commission, Texas Department of Criminal Justice, and Parks and Wildlife Department.

SECTION 2.28. Section 659.301(5), Government Code, is amended to read as follows:

(5) "State employee" means an individual who:

(A) is a commissioned law enforcement officer of the Department of Public Safety, the Texas Facilities Commission, the Texas Alcoholic Beverage and Gaming Commission, or the Texas Department of Criminal Justice;

(B) is a commissioned security officer of the comptroller;

(C) is a law enforcement officer commissioned by the Parks and Wildlife Commission;

(D) is a commissioned peace officer of an institution of higher education;

(E) is an employee or official of the Board of Pardons and Paroles or the parole division of the Texas Department of Criminal Justice if the employee or official has routine direct contact with inmates of any penal or correctional institution or with administratively released prisoners subject to the board's jurisdiction;

(F) has been certified to the Employees Retirement System of Texas under Section 815.505 as having begun employment as a law enforcement officer or custodial officer, unless the individual has been certified to the system as having ceased employment as a law enforcement officer or custodial officer; or

(G) before May 29, 1987, received hazardous duty pay based on the terms of any state law if the individual holds a position designated under that law as eligible for the pay.

SECTION 2.29. Section 661.918(a), Government Code, is amended to read as follows:

(a) This section applies to a peace officer under Article 2.12, Code of Criminal Procedure, who is commissioned as a law enforcement officer or agent, including a ranger, by:

(1) the Public Safety Commission and the director of the Department of Public Safety;

(2) the Parks and Wildlife Commission; or

(3) the Texas Alcoholic Beverage and Gaming Commission.

SECTION 2.30. Section 811.001(9), Government Code, is amended to read as follows:

(9) "Law enforcement officer" means a member of the retirement system who:

(A) has been commissioned as a law enforcement officer by the Department of Public Safety, the Texas Alcoholic Beverage and Gaming Commission, the Parks and Wildlife Department, or the office of inspector general at the Texas Youth Commission; and

(B) is recognized as a commissioned law enforcement officer by the Commission on Law Enforcement Officer Standards and Education.

SECTION 2.31. Section 814.104(b), Government Code, is amended to read as follows:

(b) A member who is at least 55 years old and who has at least 10 years of service credit as a commissioned peace officer engaged in criminal law enforcement activities of the Department of Public Safety, the Texas Alcoholic Beverage and Gaming Commission, the Parks and Wildlife Department, or the office of inspector general at the Texas Youth Commission, or as a custodial officer, is eligible to retire and receive a service retirement annuity.

SECTION 2.32. Section 815.505, Government Code, is amended to read as follows:

Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND CUSTODIAL OFFICERS. Not later than the 12th day of the month following the month in which a person begins or ceases employment as a law enforcement officer or custodial officer, the Public Safety Commission, the Texas Alcoholic Beverage and Gaming Commission, the Parks and Wildlife Commission, the office of inspector general at the Texas Youth Commission, the Board of Pardons and Paroles, or the Texas Board of Criminal Justice, as applicable, shall certify to the retirement system, in the manner prescribed by the system, the name of the employee and such other information as the system determines is necessary for the crediting of service and financing of benefits under this subtitle.

SECTION 2.33. Section 2054.007(a), Government Code, is amended to read as follows:

(a) The lottery division of the Texas Alcoholic Beverage and Gaming [Lottery] Commission is not subject to the planning and procurement requirements of this chapter.

SECTION 2.34. Section 2054.352(a), Government Code, as amended by Chapters 213 (S.B. 1005) and 450 (H.B. 2447), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows:

(a) The following licensing entities shall participate in the system established under Section 2054.353:

(1) Texas Board of Chiropractic Examiners;

(2) Court Reporters Certification Board;

(3) State Board of Dental Examiners;

(4) Texas Funeral Service Commission;

(5) Texas Board of Professional Land Surveying;

(6) Texas Medical Board;

(7) Texas Board of Nursing;

(8) Texas Optometry Board;

(9) Department of Agriculture, for licenses issued under Chapter 1951, Occupations Code;

(10) Texas State Board of Pharmacy;

(11) Executive Council of Physical Therapy and Occupational Therapy Examiners;

(12) Texas State Board of Plumbing Examiners;

(13) Texas State Board of Podiatric Medical Examiners;

(14) Texas State Board of Examiners of Psychologists;

(15) State Board of Veterinary Medical Examiners;

(16) Texas Real Estate Commission;

(17) Texas Appraiser Licensing and Certification Board;

(18) Texas Department of Licensing and Regulation;

(19) Texas State Board of Public Accountancy;

(20) State Board for Educator Certification;

(21) Texas Board of Professional Engineers;

(22) Department of State Health Services;

(23) Texas Board of Architectural Examiners;

(24) Texas Alcoholic Beverage and Gaming [Racing] Commission;

(25) Commission on Law Enforcement Officer Standards and Education; and

(26) Texas Private Security Board.

SECTION 2.35. Section 2001.002(8), Occupations Code, is amended to read as follows:

(8) "Commission" means the Texas Alcoholic Beverage and Gaming [Lottery] Commission.

SECTION 2.36. Sections 46.035(b) and (j), Penal Code, are amended to read as follows:

(b) A license holder commits an offense if the license holder intentionally, knowingly, or recklessly carries a handgun under the authority of Subchapter H, Chapter 411, Government Code, regardless of whether the handgun is concealed, on or about the license holder's person:

(1) on the premises of a business that has a permit or license issued under Chapter 25, 28, 32, 69, or 74, Alcoholic Beverage Code, if the business derives 51 percent or more of its income from the sale or service of alcoholic beverages for on-premises consumption, as determined by the Texas Alcoholic Beverage and Gaming Commission under Section 104.06, Alcoholic Beverage Code;

(2) on the premises where a high school, collegiate, or professional sporting event or interscholastic event is taking place, unless the license holder is a participant in the event and a handgun is used in the event;

(3) on the premises of a correctional facility;

(4) on the premises of a hospital licensed under Chapter 241, Health and Safety Code, or on the premises of a nursing home licensed under Chapter 242, Health and Safety Code, unless the license holder has written authorization of the hospital or nursing home administration, as appropriate;

(5) in an amusement park; or

(6) on the premises of a church, synagogue, or other established place of religious worship.

(j) Subsections (a) and (b)(1) do not apply to a historical reenactment performed in compliance with the rules of the Texas Alcoholic Beverage and Gaming Commission.

SECTION 2.37. Section 46.15(j), Penal Code, is amended to read as follows:

(j) The provisions of Section 46.02 prohibiting the carrying of a handgun do not apply to an individual who carries a handgun as a participant in a historical reenactment performed in accordance with the rules of the Texas Alcoholic Beverage and Gaming Commission.

SECTION 2.38. Section 47.09(a), Penal Code, is amended to read as follows:

(a) It is a defense to prosecution under this chapter that the conduct:

(1) was authorized under:

(A) Chapter 2001, Occupations Code;

(B) Chapter 2002, Occupations Code; or

(C) the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes);

(2) consisted entirely of participation in the state lottery authorized by Chapter 466, Government Code; or

(3) was a necessary incident to the operation of the state lottery and was directly or indirectly authorized by:

(A) Chapter 466, Government Code;

(B) the lottery division of the Texas Alcoholic Beverage and Gaming [Lottery] Commission;

(C) the Texas Alcoholic Beverage and Gaming [Lottery] Commission; or

(D) the director of the lottery division of the Texas Alcoholic Beverage and Gaming [Lottery] Commission.

SECTION 2.39. Sections 151.433(c) and (g), Tax Code, are amended to read as follows:

(c) The wholesaler or distributor shall file the report on or before the 25th day of each month. The report must contain the following information for the preceding calendar month's sales in relation to each retailer:

(1) the name of the retailer and the address of the retailer's outlet location to which the wholesaler or distributor delivered beer, wine, or malt liquor, including the city and zip code;

(2) the taxpayer number assigned by the comptroller to the retailer, if the wholesaler or distributor is in possession of the number;

(3) the permit or license number assigned to the retailer by the Texas Alcoholic Beverage and Gaming Commission; and

(4) the monthly net sales made to the retailer by outlet by the wholesaler or distributor, including the quantity and units of beer, wine, and malt liquor sold to the retailer.

(g) If a person fails to file a report required by this section or fails to file a complete report, the comptroller may notify the Texas Alcoholic Beverage and Gaming Commission of the failure and the commission may take administrative action against the person for the failure under the Alcoholic Beverage Code.

SECTION 2.40. Sections 154.024(b) and (c), Tax Code, are amended to read as follows:

(b) Employees of the Texas Alcoholic Beverage and Gaming Commission who collect taxes on alcoholic beverages at ports of entry shall collect at the ports of entry the tax imposed by this chapter on cigarettes imported into this state. In computing the amount of taxes to be collected, the commission may round the total amount up to the nearest quarter of a dollar.

(c) The comptroller and the Texas Alcoholic Beverage and Gaming Commission shall make rules for the administration of this section.

SECTION 2.41. Section 201.612(d), Transportation Code, is amended to read as follows:

(d) In determining whether to approve the construction of the bridge, the commission shall solicit the advice of:

(1) the Department of Public Safety;

(2) the Texas Natural Resource Conservation Commission;

(3) the Texas Historical Commission;

(4) the Department of Agriculture;

(5) the Texas Alcoholic Beverage and Gaming Commission;

(6) the Texas Department of Commerce; and

(7) any other state agency the commission determines is appropriate.

SECTION 2.42. Sections 721.003(a) and (e), Transportation Code, are amended to read as follows:

(a) The governing bodies of the following state agencies or divisions by rule may exempt from the requirements of Section 721.002 a motor vehicle that is under the control and custody of the agency or division:

(1) Texas Commission on Fire Protection;

(2) Texas State Board of Pharmacy;

(3) Department of State Health Services and Department of Aging and Disability Services;

(4) Department of Public Safety of the State of Texas;

(5) Texas Department of Criminal Justice;

(6) Board of Pardons and Paroles;

(7) Parks and Wildlife Department;

(8) Railroad Commission of Texas;

(9) Texas Alcoholic Beverage and Gaming Commission;

(10) Texas Department of Banking;

(11) Department of Savings and Mortgage Lending;

(12) Texas Juvenile Probation Commission;

(13) Texas Commission on Environmental Quality;

(14) Texas Youth Commission;

(15) [Texas Lottery Commission;

[(16)] the office of the attorney general;

(16) [(17)] Texas Department of Insurance; and

(17) [(18)] an agency that receives an appropriation under an article of the General Appropriations Act that appropriates money to the legislature.

(e) A rule adopted by the Texas Alcoholic Beverage and Gaming [Lottery] Commission under Subsection (a) may exempt from the requirements of Section 721.002 only a motor vehicle used exclusively for surveillance purposes.

SECTION 2.43. 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 Alcoholic Beverage and Gaming [Racing] Commission.

(5) "Executive secretary" means the administrator [executive secretary] of the Texas Alcoholic Beverage and Gaming [Racing] Commission.

ARTICLE 3. REPEALER

SECTION 3.01. The following provisions of the Government Code are repealed:

(1) Section 466.003;

(2) Section 467.002;

(3) Subchapter B, Chapter 467;

(4) Section 467.104; and

(5) Section 467.105.

SECTION 3.02. The following provisions of the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) are repealed:

(1) Section 2.01;

(2) Section 2.02;

(3) Section 2.03;

(4) Section 2.04;

(5) Section 2.05;

(6) Section 2.06;

(7) Section 2.071;

(8) Section 2.072;

(9) Section 2.073;

(10) Section 2.074;

(11) Section 2.08;

(12) Section 2.09;

(13) Section 2.10;

(14) Section 2.11;

(15) Section 2.12;

(16) Section 2.13;

(17) Section 2.14;

(18) Section 2.17;

(19) Section 2.18;

(20) Section 2.19;

(21) Section 2.20;

(22) Section 2.21;

(23) Section 2.22;

(24) Section 2.23;

(25) Section 2.24; and

(26) Section 18.01.

ARTICLE 4. TRANSITION AND EFFECTIVE DATE

SECTION 4.01. (a) Promptly after this Act takes effect, the governor shall appoint two additional members to the Texas Alcoholic Beverage and Gaming Commission. In appointing those members, the governor shall appoint one person to a term expiring November 15, 2015, and one to a term expiring November 15, 2017. The governor shall ensure that the appointments to the commission comply with the experience requirements provided by Section 5.02(a), Alcoholic Beverage Code, as amended by this Act, not later than November 15, 2013.

(b) Until all appointees to the Texas Alcoholic Beverage and Gaming Commission have taken office, a quorum of the commission is a majority of the number of members who are qualified.

SECTION 4.02. (a) On the effective date of this Act, the Texas Lottery Commission and the Texas Racing Commission are abolished and all powers, duties, obligations, rights, contracts, bonds, appropriations, records, property, and personnel of those agencies are transferred to the Texas Alcoholic Beverage and Gaming Commission.

(b) A rule, policy, procedure, or decision of the Texas Alcoholic Beverage Commission, the Texas Lottery Commission, or the Texas Racing Commission continues in effect as a rule, policy, procedure, or decision of the Texas Alcoholic Beverage and Gaming Commission until superseded by an act of the Texas Alcoholic Beverage and Gaming Commission.

(c) A reference in another law to the Texas Alcoholic Beverage Commission, the Texas Lottery Commission, or the Texas Racing Commission means the Texas Alcoholic Beverage and Gaming Commission.

SECTION 4.03. (a) On September 1, 2011, or as soon as possible after that date, the Texas Lottery Commission, the Texas Racing Commission, and the Texas Alcoholic Beverage Commission shall adopt a comprehensive plan to ensure the smooth transition of all programs operated by the Texas Lottery Commission and Texas Racing Commission to the Texas Alcoholic Beverage and Gaming Commission.

(b) This section takes effect September 1, 2011.

SECTION 4.04. Except as otherwise provided by this Act, this Act takes effect September 1, 2012.