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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of casino gaming in this state by licensed |
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persons in counties that have approved casino gaming; requiring |
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occupational licenses or certifications; creating criminal |
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offenses and providing other penalties; authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 13, Occupations Code, is |
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amended by adding Chapter 2004 to read as follows: |
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CHAPTER 2004. CASINO GAMING |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 2004.001. DEFINITIONS. In this chapter: |
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(1) "Casino game" means any game of chance, including |
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a game of chance in which the outcome may be partially determined by |
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skill or ability, that involves the making of a bet, as defined by |
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Section 47.01, Penal Code. |
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(2) "Casino gaming" means the conduct of casino games |
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authorized under this chapter. |
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(3) "Casino gaming manager" means a person certified |
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under this chapter to manage casino gaming operations at a location |
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authorized under this chapter to conduct casino gaming in this |
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state. |
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(4) "Commission" means the Texas Lottery Commission. |
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(5) "Executive director" means the executive director |
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of the commission. |
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(6) "Gaming vendor" means a person licensed under this |
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chapter to provide, maintain, manufacture, distribute, sell, or |
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lease casino gaming equipment and services to a person authorized |
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to operate casino gaming in this state. |
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Sec. 2004.002. APPLICABILITY OF FEDERAL LAW. All shipments |
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of casino gaming equipment and devices into, out of, or within this |
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state in connection with casino gaming are legal shipments of the |
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devices and are exempt from the provisions of 15 U.S.C. Sections |
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1171-1178 prohibiting the transportation of gambling devices. |
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SUBCHAPTER B. ADMINISTRATION |
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Sec. 2004.051. POWERS AND DUTIES OF COMMISSION AND |
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EXECUTIVE DIRECTOR. (a) The commission and executive director |
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have broad authority and shall exercise strict control over and |
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closely monitor casino gaming in this state to protect the public |
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health, welfare, and safety and ensure integrity, security, |
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honesty, and fairness in the conduct and administration of casino |
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gaming. |
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(b) The executive director may contract with or employ a |
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person to perform a function, activity, or service in connection |
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with casino gaming as prescribed by the executive director. |
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(c) The commission shall as necessary to protect the public |
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health and safety: |
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(1) monitor casino gaming operations on a continuing |
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basis; |
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(2) establish standards for: |
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(A) the operation of casino gaming; |
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(B) the provision of casino gaming equipment and |
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services; and |
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(C) the establishment and maintenance of casino |
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gaming facilities; and |
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(3) inspect and examine all gaming facilities, |
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equipment, services, records, and operations to ensure compliance |
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with the standards established by the commission. |
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Sec. 2004.052. RULES AND PROCEDURES. (a) The commission |
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shall adopt all rules necessary to supervise casino gaming in this |
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state, administer this chapter, and ensure the security of casino |
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gaming operations in this state. |
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(b) The commission shall establish procedures for the |
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approval, monitoring, and inspection of casino gaming operations as |
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necessary to protect the public health, welfare, and safety and the |
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integrity of this state and to prevent financial loss to this state. |
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Sec. 2004.053. FEES. The commission shall establish the |
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application, certification, and certification renewal fees for |
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each type of certification issued under this chapter in amounts |
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reasonable and necessary to cover the state's costs incurred in the |
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administration of this chapter and the regulation of casino gaming. |
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Sec. 2004.054. ANNUAL REPORT. The commission shall make an |
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annual report to the governor, the comptroller, and the legislature |
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that provides a summary of casino gaming revenues and expenses for |
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the state fiscal year preceding the report. The report must be in |
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the form and reported at the time provided by the General |
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Appropriations Act. |
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Sec. 2004.055. INVESTIGATIONS. The commission may |
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investigate a violation or alleged violation of: |
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(1) this chapter by any person; or |
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(2) the penal laws of this state in connection with the |
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administration of this chapter, the regulation of casino gaming, or |
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the conduct of casino gaming by a person authorized to operate |
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casino gaming under this chapter. |
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SUBCHAPTER C. CASINO GAMING |
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Sec. 2004.101. CASINO GAMING OPERATOR LICENSE. A person |
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may not conduct casino gaming in this state unless: |
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(1) the person holds a casino gaming operator license |
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issued under this chapter; and |
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(2) the casino is in a county in which a majority of |
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the voters of the county voted in favor of authorizing casino gaming |
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in that county in accordance with Subchapter F or Section 47a(b), |
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Article III, Texas Constitution. |
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Sec. 2004.102. CERTIFICATES REQUIRED. (a) A person may not |
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provide, maintain, manufacture, distribute, sell, or lease casino |
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games or casino gaming equipment or services for use in this state |
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unless the person holds a gaming vendor certificate issued under |
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this chapter. |
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(b) A person may not act as a casino gaming manager for a |
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gaming facility in this state unless the person holds a casino |
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gaming manager certificate issued under this chapter. |
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(c) Unless the person holds the required gaming employee |
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certificate, a person may not act as a gaming employee in any gaming |
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employee position for which the commission by rule requires a |
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person to hold a certificate issued under this chapter. |
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Sec. 2004.103. GAMING VENDOR CERTIFICATE. (a) The |
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commission shall issue a gaming vendor certificate to an eligible |
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person with the resources and experience required to provide casino |
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games or casino gaming equipment and services for casino gaming |
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operations authorized under this chapter. |
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(b) The commission by rule shall establish the minimum |
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qualifications for a gaming vendor certificate to ensure a |
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competitive market for casino gaming equipment and services and the |
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availability of reliable casino gaming equipment and services, |
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consistent with the health and safety of the public. |
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Sec. 2004.104. CASINO GAMING MANAGER CERTIFICATE. (a) The |
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commission shall issue a casino gaming manager certificate to an |
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eligible person with the qualifications and experience required to |
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manage casino gaming operations under this chapter. |
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(b) The commission by rule shall establish the minimum |
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qualifications for a casino gaming manager certificate necessary to |
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protect the health and safety of the public. |
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Sec. 2004.105. GAMING EMPLOYEE CERTIFICATE. The commission |
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by rule and as necessary to protect the health and safety of the |
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public may establish other gaming employee positions that require a |
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certificate issued under this chapter to act in those positions. |
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Sec. 2004.106. BACKGROUND INVESTIGATIONS. Before issuing a |
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certificate to a person under this chapter, the commission shall |
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conduct a background investigation that includes obtaining |
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criminal history record information of the person seeking the |
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certificate to assist the commission in determining the person's |
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eligibility or suitability for the certificate. |
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SUBCHAPTER D. REVENUE |
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Sec. 2004.151. STATE CASINO GAMING ACCOUNT. The state |
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casino gaming account is a special account in the general revenue |
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fund. The account consists of all revenue received by the |
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commission from casino gaming, fees received under this chapter, |
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and all money credited to the account from any other fund or source |
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under law. |
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SUBCHAPTER E. OFFENSES; PENALTIES |
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Sec. 2004.201. MANIPULATION OR TAMPERING. (a) A person |
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commits an offense if the person intentionally or knowingly |
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manipulates the outcome of a casino game, the amount of a casino |
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game prize, or the operation of a casino gaming device by physical, |
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electronic, or other means, other than in accordance with |
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commission rules. |
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(b) An offense under this section is a felony of the third |
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degree. |
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Sec. 2004.202. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18 |
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YEARS OF AGE. (a) A casino gaming manager or an employee or agent |
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of a casino gaming manager commits an offense if the person |
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intentionally or knowingly: |
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(1) sells or offers to sell a play of a casino game to |
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an individual the person knows is younger than 18 years of age or |
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permits the individual to purchase a play of a casino game; or |
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(2) pays money or issues a credit slip or other |
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winnings for a play of a casino game to an individual the person |
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knows is younger than 18 years of age. |
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(b) An individual who is younger than 18 years of age |
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commits an offense if the individual: |
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(1) purchases a play of a casino game; |
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(2) accepts money, a credit slip, or other payment of |
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winnings for play of a casino game; or |
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(3) falsely represents the individual to be 18 years |
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of age or older by displaying evidence of age that is false or |
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fraudulent or misrepresents in any way the individual's age in |
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order to purchase a play of a casino game. |
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(c) An offense under Subsection (a) is a Class B |
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misdemeanor. |
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(d) An offense under Subsection (b) is a misdemeanor |
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punishable by a fine not to exceed $250. |
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Sec. 2004.203. DISCIPLINARY ACTION. (a) The commission |
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may refuse to issue a license or certificate or may revoke, suspend, |
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or refuse to renew a license or certificate or may reprimand a |
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license or certificate holder for a violation of this chapter, |
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other state law, or a rule of the commission. |
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(b) If the commission proposes to take action against a |
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license or certificate holder or applicant under Subsection (a), |
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the license or certificate holder or applicant is entitled to |
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notice and a hearing. |
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(c) The commission may place on probation subject to |
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reasonable conditions a person whose license or certificate is |
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suspended under this section. |
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(d) The commission may summarily suspend a license or |
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certificate issued under this chapter in the same manner as the |
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commission is authorized to suspend a license under Section |
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466.160, Government Code, if the commission determines that the |
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action is necessary to maintain the integrity, security, or |
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fairness of casino gaming. |
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(e) The commission by rule shall develop a system for |
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monitoring a license or certificate holder's compliance with this |
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chapter. |
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Sec. 2004.204. ADMINISTRATIVE PENALTY. (a) The commission |
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may impose an administrative penalty against a person who violates |
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this chapter or a rule or order adopted by the commission under this |
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chapter in the same manner as the commission is authorized to impose |
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an administrative penalty under Subchapter M, Chapter 2001. |
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(b) The amount of the administrative penalty may not exceed |
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$1,000 for each violation. Each day a violation continues or occurs |
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may be considered a separate violation for purposes of imposing a |
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penalty. |
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(c) In determining the amount of the penalty, the executive |
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director shall consider: |
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(1) the seriousness of the violation, including the |
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nature, circumstances, extent, and gravity of the violation; |
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(2) the history of previous violations; |
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(3) the amount necessary to deter future violations; |
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(4) efforts to correct the violation; and |
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(5) any other matter that justice may require. |
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(d) The notice, hearing, and appeal for an administrative |
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penalty assessed under this section shall be provided or conducted |
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in the same manner as notice, hearing, and appeals are provided or |
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conducted under Subchapter M, Chapter 2001. |
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Sec. 2004.205. CIVIL PENALTY. (a) A person who violates |
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this chapter or a rule adopted by the commission under this chapter |
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is liable to the state for a civil penalty not to exceed $5,000 for |
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each day of violation. |
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(b) At the request of the commission, the attorney general |
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shall bring an action to recover a civil penalty authorized by this |
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section. The attorney general may recover reasonable expenses, |
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including attorney's fees, incurred in recovering the civil |
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penalty. |
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SUBCHAPTER F. LOCAL OPTION ELECTIONS |
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Sec. 2004.251. ORDERING LOCAL OPTION ELECTION. The |
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commissioners court of a county may at any time order an election to |
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legalize casino gaming under this chapter in that county. The |
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commissioners court shall order and hold an election to legalize |
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casino gaming under this chapter in the county if the commissioners |
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court is presented with a petition that meets the requirements of |
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Section 2004.252 and is certified as valid under Section 2004.253. |
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Sec. 2004.252. PETITION REQUIREMENTS. (a) A petition for a |
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legalization election must include a statement substantially as |
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follows before the space reserved for signatures on each page: |
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"This petition is to require that an election be held in (name of |
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county) to legalize casino gaming in (name of county)." |
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(b) A petition is valid only if it is signed by registered |
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voters of the county in a number that is not less than three percent |
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of the total number of votes cast for governor by qualified voters |
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of the county in the most recent gubernatorial general election. |
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(c) Each voter must enter beside the voter's signature the |
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date the voter signs the petition. A signature may not be counted |
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as valid if the date of signing is earlier than the 90th day before |
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the date the petition is submitted to the commissioners court. |
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(d) Each voter must provide on the petition the voter's |
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current voter registration number, printed name, and residence |
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address, including zip code. |
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Sec. 2004.253. VERIFICATION. (a) Not later than the fifth |
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day after the date a petition for an election under this chapter is |
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received in the office of the commissioners court, the |
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commissioners court shall submit the petition for verification to |
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the county clerk. |
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(b) The county clerk shall determine whether the petition is |
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signed by the required number of registered voters of the county. |
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Not later than the 30th day after the date the petition is submitted |
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to the clerk for verification, the clerk shall certify in writing to |
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the commissioners court whether the petition is valid or invalid. |
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If the clerk determines that the petition is invalid, the clerk |
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shall state the reasons for that determination. |
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Sec. 2004.254. ORDERING ELECTION. If the county clerk |
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certifies that a petition is valid, not later than the 30th day |
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after the date of certification, the commissioners court shall |
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order that an election be held in the county on the next uniform |
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election date under Section 41.001, Election Code, that allows |
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sufficient time to comply with applicable provisions of law, |
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including Section 3.005, Election Code. The commissioners court |
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shall state in the order the issue to be voted on. The county clerk |
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shall notify the commission by certified mail, return receipt |
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requested, that an election has been ordered. |
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Sec. 2004.255. BALLOT PROPOSITION. The ballot in a |
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legalization election shall be printed to provide for voting for or |
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against the proposition: "Legalizing casino gaming within (name of |
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county)." |
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Sec. 2004.256. ELECTION RESULTS. (a) If the majority of |
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the votes cast in a legalization election favor the legalization of |
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casino gaming, casino gaming authorized under this chapter is |
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permitted within the county holding the election effective on the |
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10th day after the date of the election. |
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(b) The commissioners court of a county in which a |
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legalization election has been held shall give written notice of |
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the results of the election to the commission not later than the |
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third day after the date the election is canvassed. |
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(c) If less than a majority of the votes cast in a |
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legalization election in any county are cast in favor of the |
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legalization of casino gaming, casino gaming is not authorized in |
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the county, and a subsequent election on the issue may not be held |
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in the county before the corresponding uniform election date one |
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year after the date of the election. |
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(d) If less than a majority of the votes cast in two |
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consecutive legalization elections within any county are cast in |
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favor of the legalization of casino gaming, casino gaming is not |
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authorized in the county, and a subsequent election on the issue may |
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not be held in the county before the corresponding uniform election |
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date five years after the date of the second election. |
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SECTION 2. Section 411.108(a-1), Government Code, is |
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amended to read as follows: |
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(a-1) The Texas Lottery Commission is entitled to obtain |
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from the department criminal history record information maintained |
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by the department that relates to: |
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(1) a person licensed under Chapter 2001, Occupations |
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Code, or described by Section 2001.3025, Occupations Code; or |
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(2) a person holding or applying for a license or |
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certificate under Chapter 2004, Occupations Code. |
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SECTION 3. Section 466.024(b), Government Code, is amended |
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to read as follows: |
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(b) The commission shall adopt rules prohibiting the |
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operation of any game using a video lottery machine or video gaming |
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machine, except in accordance with Chapter 2004, Occupations Code. |
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SECTION 4. Section 47.02(c), Penal Code, is amended to read |
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as follows: |
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(c) It is a defense to prosecution under this section that |
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the actor reasonably believed that the conduct: |
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(1) was permitted under Chapter 2001, Occupations |
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Code; |
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(2) was permitted under Chapter 2002, Occupations |
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Code; |
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(3) was permitted under Chapter 2004, Occupations |
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Code; |
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(4) consisted entirely of participation in the state |
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lottery authorized by [the State Lottery Act (]Chapter 466, |
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Government Code[)]; |
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(5) [(4)] was permitted under the Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes); or |
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(6) [(5)] consisted entirely of participation in a |
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drawing for the opportunity to participate in a hunting, fishing, |
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or other recreational event conducted by the Parks and Wildlife |
|
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Department. |
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SECTION 5. Section 47.09, Penal Code, is amended by |
|
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) It is a defense to prosecution under this chapter that |
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the conduct: |
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(1) was authorized under: |
|
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(A) Chapter 2001, Occupations Code; |
|
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(B) Chapter 2002, Occupations Code; [or] |
|
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(C) Chapter 2004, Occupations Code; or |
|
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(D) the Texas Racing Act (Article 179e, Vernon's |
|
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Texas Civil Statutes); |
|
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(2) consisted entirely of participation in the state |
|
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lottery authorized by Chapter 466, Government Code; or |
|
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(3) was a necessary incident to the operation of the |
|
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state lottery and was directly or indirectly authorized by: |
|
|
(A) Chapter 466, Government Code; |
|
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(B) the lottery division of the Texas Lottery |
|
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Commission; |
|
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(C) the Texas Lottery Commission; or |
|
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(D) the director of the lottery division of the |
|
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Texas Lottery Commission. |
|
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(c) Subsection (a)(1)(C) applies to a person manufacturing, |
|
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possessing, or operating a gambling device under a license or |
|
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certificate under Chapter 2004, Occupations Code. |
|
|
SECTION 6. Chapter 47, Penal Code, is amended by adding |
|
|
Section 47.095 to read as follows: |
|
|
Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is |
|
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a defense to prosecution under this chapter that a person sells, |
|
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leases, transports, possesses, stores, or manufactures a gambling |
|
|
device with the authorization of the Texas Lottery Commission under |
|
|
Chapter 2004, Occupations Code, for transportation in interstate or |
|
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foreign commerce. |
|
|
SECTION 7. (a) As soon as practicable after the effective |
|
|
date of this Act, the Texas Lottery Commission shall adopt the rules |
|
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necessary to implement casino gaming in accordance with Chapter |
|
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2004, Occupations Code, as added by this Act. |
|
|
(b) The Texas Lottery Commission may adopt initial rules for |
|
|
purposes of implementing casino gaming in accordance with Chapter |
|
|
2004, Occupations Code, as added by this Act, that expire not later |
|
|
than May 1, 2016. Chapter 2001, Government Code, does not apply to |
|
|
the adoption of those rules. This subsection expires June 1, 2016. |
|
|
SECTION 8. This Act takes effect December 1, 2015, but only |
|
|
if the constitutional amendment authorizing the legislature to |
|
|
authorize the operation of casino games in this state by licensed |
|
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persons in counties that have approved casino gaming is approved by |
|
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the voters. If that amendment is not approved by the voters, this |
|
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Act has no effect. |