Bill Text: TX HB2741 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to the operation of casino gaming in this state by licensed persons in certain areas of this state to provide additional money for residual windstorm insurance coverage in the coastal areas; requiring occupational licenses or certifications; authorizing fees; imposing a tax; creating criminal offenses and providing other penalties.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-03-28 - Referred to Licensing & Administrative Procedures [HB2741 Detail]

Download: Texas-2017-HB2741-Introduced.html
  85R8641 DMS-D
 
  By: Deshotel H.B. No. 2741
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the operation of casino gaming in this state by licensed
  persons in certain areas of this state to provide additional money
  for residual windstorm insurance coverage in the coastal areas;
  requiring occupational licenses or certifications; authorizing
  fees; imposing a tax; creating criminal offenses and providing
  other penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 13, Occupations Code, is
  amended by adding Chapter 2005 to read as follows:
  CHAPTER 2005. CASINO GAMING
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2005.001.  DEFINITIONS. In this chapter:
               (1)  "Casino game" means any game of chance, including
  a game of chance in which the outcome may be partially determined by
  skill or ability, that involves the making of a bet, as defined by
  Section 47.01, Penal Code.
               (2)  "Casino gaming" means the conduct of casino games
  authorized under this chapter.
               (3)  "Casino gaming manager" means a person certified
  under this chapter to manage casino gaming operations at a location
  authorized under this chapter to conduct casino gaming in this
  state.
               (4)  "Commission" means the Texas Lottery Commission.
               (5)  "Executive director" means the executive director
  of the commission.
               (6)  "Gaming vendor" means a person licensed under this
  chapter to provide, maintain, manufacture, distribute, sell, or
  lease casino gaming equipment and services to a person authorized
  to operate casino gaming in this state.
         Sec. 2005.002.  APPLICABILITY OF FEDERAL LAW. All shipments
  of casino gaming equipment and devices into, out of, or within this
  state in connection with casino gaming are legal shipments of the
  devices and are exempt from the provisions of 15 U.S.C. Sections
  1171-1178 prohibiting the transportation of gambling devices.
  SUBCHAPTER B. ADMINISTRATION
         Sec. 2005.051.  POWERS AND DUTIES OF COMMISSION AND
  EXECUTIVE DIRECTOR. (a) The commission and executive director
  have broad authority and shall exercise strict control over and
  closely monitor casino gaming in this state to protect the public
  health, welfare, and safety and ensure integrity, security,
  honesty, and fairness in the conduct and administration of casino
  gaming.
         (b)  The executive director may contract with or employ a
  person to perform a function, activity, or service in connection
  with casino gaming as prescribed by the executive director.
         (c)  The commission shall as necessary to protect the public
  health and safety:
               (1)  monitor casino gaming operations on a continuing
  basis;
               (2)  establish standards for:
                     (A)  the operation of casino gaming;
                     (B)  the provision of casino gaming equipment and
  services; and
                     (C)  the establishment and maintenance of casino
  gaming facilities; and
               (3)  inspect and examine all gaming facilities,
  equipment, services, records, and operations to ensure compliance
  with the standards established by the commission.
         Sec. 2005.052.  RULES AND PROCEDURES. (a) The commission
  shall adopt all rules necessary to supervise casino gaming in this
  state, administer this chapter, and ensure the security of casino
  gaming operations in this state.
         (b)  The commission shall establish procedures for the
  approval, monitoring, and inspection of casino gaming operations as
  necessary to protect the public health, welfare, and safety and the
  integrity of this state and to prevent financial loss to this state.
         Sec. 2005.053.  FEES. The commission shall establish the
  application, certification, and certification renewal fees for
  each type of certification issued under this chapter in amounts
  reasonable and necessary to cover the state's costs incurred in the
  administration of this chapter and the regulation of casino gaming.
         Sec. 2005.054.  ANNUAL REPORT. The commission shall make an
  annual report to the governor, the comptroller, and the legislature
  that provides a summary of casino gaming revenues and expenses for
  the state fiscal year preceding the report. The report must be in
  the form and reported at the time provided by the General
  Appropriations Act.
         Sec. 2005.055.  INVESTIGATIONS. The commission may
  investigate a violation or alleged violation of:
               (1)  this chapter by any person; or
               (2)  the penal laws of this state in connection with the
  administration of this chapter, the regulation of casino gaming, or
  the conduct of casino gaming by a person authorized to operate
  casino gaming under this chapter.
  SUBCHAPTER C. CASINO GAMING
         Sec. 2005.101.  CASINO GAMING OPERATOR LICENSE. A person
  may not conduct casino gaming in this state unless the person holds
  a casino gaming operator license issued under this chapter.
         Sec. 2005.102.  ALLOCATION OF CASINO GAMING OPERATOR
  LICENSES. The commission shall award not more than nine casino
  gaming operator licenses to applicants as follows:
               (1)  one license in each of the counties of Galveston,
  Jefferson, and Nueces, provided the license issued in Jefferson
  County is for a location approved by the commissioners court of the
  county that has interstate access and other appropriate
  infrastructure;
               (2)  three licenses in Bexar and Harris Counties to
  persons who are licensed to conduct pari-mutuel wagering on horse
  and greyhound races in one of those counties, provided not more than
  two licenses are awarded in either county; and
               (3)  one license in each of three first tier coastal or
  second tier coastal counties, as those terms are defined by Section
  2210.003, Insurance Code, to persons who are licensed to conduct
  pari-mutuel wagering on horse or greyhound races in one of those
  counties.
         Sec. 2005.103.  CERTIFICATES REQUIRED. (a) A person may not
  provide, maintain, manufacture, distribute, sell, or lease casino
  games or casino gaming equipment or services for use in this state
  unless the person holds a gaming vendor certificate issued under
  this chapter.
         (b)  A person may not act as a casino gaming manager for a
  gaming facility in this state unless the person holds a casino
  gaming manager certificate issued under this chapter.
         (c)  Unless the person holds the required gaming employee
  certificate, a person may not act as a gaming employee in any gaming
  employee position for which the commission by rule requires a
  person to hold a certificate issued under this chapter.
         Sec. 2005.104.  GAMING VENDOR CERTIFICATE. (a) The
  commission shall issue a gaming vendor certificate to an eligible
  person with the resources and experience required to provide casino
  games or casino gaming equipment and services for casino gaming
  operations authorized under this chapter.
         (b)  The commission by rule shall establish the minimum
  qualifications for a gaming vendor certificate to ensure a
  competitive market for casino gaming equipment and services and the
  availability of reliable casino gaming equipment and services,
  consistent with the health and safety of the public.
         Sec. 2005.105.  CASINO GAMING MANAGER CERTIFICATE. (a) The
  commission shall issue a casino gaming manager certificate to an
  eligible person with the qualifications and experience required to
  manage casino gaming operations under this chapter.
         (b)  The commission by rule shall establish the minimum
  qualifications for a casino gaming manager certificate necessary to
  protect the health and safety of the public.
         Sec. 2005.106.  GAMING EMPLOYEE CERTIFICATE. The commission
  by rule and as necessary to protect the health and safety of the
  public may establish other gaming employee positions that require a
  certificate issued under this chapter to act in those positions.
         Sec. 2005.107.  BACKGROUND INVESTIGATIONS. Before issuing a
  certificate to a person under this chapter, the commission shall
  conduct a background investigation that includes obtaining
  criminal history record information of the person seeking the
  certificate to assist the commission in determining the person's
  eligibility or suitability for the certificate.
  SUBCHAPTER D. REVENUE
         Sec. 2005.151.  STATE CASINO GAMING ACCOUNT. The state
  casino gaming account is a special account in the general revenue
  fund. The account consists of all revenue received by the
  commission from casino gaming, fees received under this chapter,
  and all money credited to the account from any other fund or source
  under law.
         Sec. 2005.152.  CASINO GAMING TAX. (a) A casino gaming tax
  in an amount equal to 18 percent of the gross gaming revenue is
  imposed on each holder of a casino gaming operator's license.
         (b)  The comptroller shall allocate the revenue from the tax
  imposed under this section as follows:
               (1)  the comptroller shall transfer to the catastrophe
  reserve trust fund established under Subchapter J, Chapter 2210,
  Insurance Code, an amount sufficient to ensure that the premium and
  other revenue of the Texas Windstorm Insurance Association together
  with the money allocated under this section equals the insured
  losses and operating expenses of the association each state fiscal
  year; and
               (2)  after making a transfer as required by Subdivision
  (1), the comptroller shall transfer the remainder of the tax
  revenue to the general revenue fund.
         (c)  The comptroller by rule shall adopt a schedule for the
  collection of the tax imposed under this section and the transfer of
  tax revenue under Subsection (b).
         (d)  Title 2, Tax Code, applies to the tax imposed under this
  section.
  SUBCHAPTER E. OFFENSES; DISCIPLINARY ACTIONS; PENALTIES
         Sec. 2005.201.  MANIPULATION OR TAMPERING. (a) A person
  commits an offense if the person intentionally or knowingly
  manipulates the outcome of a casino game, the amount of a casino
  game prize, or the operation of a casino gaming device by physical,
  electronic, or other means, other than in accordance with
  commission rules.
         (b)  An offense under this section is a felony of the third
  degree.
         Sec. 2005.202.  SALE OF CASINO GAME TO PERSON YOUNGER THAN 18
  YEARS OF AGE. (a) A casino gaming manager or an employee or agent
  of a casino gaming manager commits an offense if the person
  intentionally or knowingly:
               (1)  sells or offers to sell a play of a casino game to
  an individual the person knows is younger than 18 years of age or
  permits the individual to purchase a play of a casino game; or
               (2)  pays money or issues a credit slip or other
  winnings for a play of a casino game to an individual the person
  knows is younger than 18 years of age.
         (b)  An individual who is younger than 18 years of age
  commits an offense if the individual:
               (1)  purchases a play of a casino game;
               (2)  accepts money, a credit slip, or other payment of
  winnings for play of a casino game; or
               (3)  falsely represents the individual to be 18 years
  of age or older by displaying evidence of age that is false or
  fraudulent or misrepresents in any way the individual's age in
  order to purchase a play of a casino game.
         (c)  An offense under Subsection (a) is a Class B
  misdemeanor.
         (d)  An offense under Subsection (b) is a misdemeanor
  punishable by a fine not to exceed $250.
         Sec. 2005.203.  DISCIPLINARY ACTIONS. (a) The commission
  may refuse to issue a license or certificate or may revoke, suspend,
  or refuse to renew a license or certificate or may reprimand a
  license or certificate holder for a violation of this chapter,
  other state law, or a rule of the commission.
         (b)  If the commission proposes to take action against a
  license or certificate holder or applicant under Subsection (a),
  the license or certificate holder or applicant is entitled to
  notice and a hearing.
         (c)  The commission may place on probation subject to
  reasonable conditions a person whose license or certificate is
  suspended under this section.
         (d)  The commission may summarily suspend a license or
  certificate issued under this chapter in the same manner as the
  commission is authorized to suspend a license under Section
  466.160, Government Code, if the commission determines that the
  action is necessary to maintain the integrity, security, or
  fairness of casino gaming.
         (e)  The commission by rule shall develop a system for
  monitoring a license or certificate holder's compliance with this
  chapter.
         Sec. 2005.204.  ADMINISTRATIVE PENALTY. (a) The commission
  may impose an administrative penalty against a person who violates
  this chapter or a rule or order adopted by the commission under this
  chapter in the same manner as the commission is authorized to impose
  an administrative penalty under Subchapter M, Chapter 2001.
         (b)  The amount of the administrative penalty may not exceed
  $1,000 for each violation. Each day a violation continues or occurs
  may be considered a separate violation for purposes of imposing a
  penalty.
         (c)  In determining the amount of the penalty, the executive
  director shall consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the history of previous violations;
               (3)  the amount necessary to deter future violations;
               (4)  efforts to correct the violation; and
               (5)  any other matter that justice may require.
         (d)  The notice, hearing, and appeal for an administrative
  penalty assessed under this section shall be provided or conducted
  in the same manner as notice, hearing, and appeals are provided or
  conducted under Subchapter M, Chapter 2001.
         Sec. 2005.205.  CIVIL PENALTY. (a) A person who violates
  this chapter or a rule adopted by the commission under this chapter
  is liable to the state for a civil penalty not to exceed $5,000 for
  each day of violation.
         (b)  At the request of the commission, the attorney general
  shall bring an action to recover a civil penalty authorized by this
  section. The attorney general may recover reasonable expenses,
  including attorney's fees, incurred in recovering the civil
  penalty.
         SECTION 2.  Section 411.108(a-1), Government Code, is
  amended to read as follows:
         (a-1)  The Texas Lottery Commission is entitled to obtain
  from the department criminal history record information maintained
  by the department that relates to:
               (1)  a person licensed under Chapter 2001, Occupations
  Code, or described by Section 2001.3025, Occupations Code; or
               (2)  a person holding or applying for a license or
  certificate under Chapter 2005, Occupations Code.
         SECTION 3.  Section 466.024(b), Government Code, is amended
  to read as follows:
         (b)  The commission shall adopt rules prohibiting the
  operation of any game using a video lottery machine or video gaming 
  machine, except in accordance with Chapter 2005, Occupations Code.
         SECTION 4.  Section 47.02(c), Penal Code, is amended to read
  as follows:
         (c)  It is a defense to prosecution under this section that
  the actor reasonably believed that the conduct:
               (1)  was permitted under Chapter 2001, Occupations
  Code;
               (2)  was permitted under Chapter 2002, Occupations
  Code;
               (3)  was permitted under Chapter 2004, Occupations
  Code;
               (4)  was permitted under Chapter 2005, Occupations
  Code;
               (5)  consisted entirely of participation in the state
  lottery authorized by the State Lottery Act (Chapter 466,
  Government Code);
               (6) [(5)]  was permitted under the Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes); or
               (7) [(6)]  consisted entirely of participation in a
  drawing for the opportunity to participate in a hunting, fishing,
  or other recreational event conducted by the Parks and Wildlife
  Department.
         SECTION 5.  Section 47.09, Penal Code, is amended by
  amending Subsection (a) and adding Subsection (c) 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;
                     (C)  Chapter 2004, Occupations Code; [or]
                     (D)  Chapter 2005, Occupations Code; or
                     (E)  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 Lottery
  Commission;
                     (C)  the Texas Lottery Commission; or
                     (D)  the director of the lottery division of the
  Texas Lottery Commission.
         (c)  Subsection (a)(1)(D) applies to a person manufacturing,
  possessing, or operating a gambling device under a license or
  certificate issued under Chapter 2005, 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
  a defense to prosecution under this chapter that a person sells,
  leases, transports, possesses, stores, or manufactures a gambling
  device with the authorization of the Texas Lottery Commission under
  Chapter 2005, Occupations Code, for transportation in interstate or
  foreign commerce.
         SECTION 7.  (a) As soon as practicable after the effective
  date of this Act, the Texas Lottery Commission shall adopt the rules
  necessary to implement casino gaming in accordance with Chapter
  2005, 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
  2005, Occupations Code, as added by this Act, that expire not later
  than May 1, 2018. Chapter 2001, Government Code, does not apply to
  the adoption of those rules. This subsection expires June 1, 2018.
         SECTION 8.  This Act takes effect December 1, 2017, but only
  if the constitutional amendment authorizing the legislature to
  authorize the operation of casino games in certain areas of this
  state by licensed persons to provide additional money for residual
  windstorm insurance coverage in the coastal areas is approved by
  the voters.  If that amendment is not approved by the voters, this
  Act has no effect.
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