Bill Text: TX HB2843 | 2023-2024 | 88th Legislature | Comm Sub


Bill Title: Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2023-05-12 - Postponed 11/29/23 10:00 AM [HB2843 Detail]

Download: Texas-2023-HB2843-Comm_Sub.html
  88R21595 BEE-F
 
  By: Kuempel H.B. No. 2843
 
  Substitute the following for H.B. No. 2843:
 
  By:  Hernandez C.S.H.B. No. 2843
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authorization, licensing, and regulation of casino
  gaming and sports wagering in this state, to the creation, powers,
  and duties of the Texas Gaming Commission, to the support of the
  horse racing industry and reform of horse racing and greyhound
  racing, and to other provisions related to gambling; imposing and
  authorizing administrative and civil penalties; imposing taxes;
  imposing and authorizing fees; requiring occupational licenses;
  creating criminal offenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 13, Occupations Code, is amended by adding
  Subtitle E to read as follows:
  SUBTITLE E. CASINO GAMING AND SPORTS WAGERING REGULATED BY TEXAS
  GAMING COMMISSION
  CHAPTER 2201. GENERAL PROVISIONS; TEXAS GAMING COMMISSION
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2201.001.  DEFINITIONS. In this subtitle:
               (1)  "Active casino license" means a casino license
  issued by the commission that has not:
                     (A)  expired without being renewed;
                     (B)  been revoked; or
                     (C)  been permanently surrendered.
               (2)  "Affiliate" means a person who, directly or
  indirectly through one or more intermediaries, controls, is
  controlled by, or is under common control with another person. A
  person is considered to control a company if the person
  beneficially owns more than a five percent equity interest in the
  company under the beneficial ownership rules adopted by the
  commission.
               (3)  "Applicant" means a person who submits an
  application for a casino license, an operator license, an
  occupational license, a manufacturer license, a casino service
  license, or a qualification to hold an equity interest in a casino
  license holder.
               (4)  "Associated equipment" means any equipment used in
  connection with casino gaming or sports wagering, including a
  mechanical, electromechanical, or electronic contrivance,
  component, or machine that would not otherwise be classified as a
  gaming device. The term includes dice, playing cards, links
  connecting progressive slot machines, equipment affecting the
  proper reporting of gross casino gaming revenue or gross sports
  wagering revenue, computerized systems of betting for sports
  wagering, computerized systems or software for monitoring slot
  machines, and devices for weighing or counting money.
               (5)  "Casino" means facilities within a destination
  resort at which casino gaming or sports wagering is conducted for
  profit, as authorized by Chapters 2202 and 2203.
               (6)  "Casino gaming," "casino game," or "gambling
  game":
                     (A)  means any game or similar activity that
  involves placing a bet, as defined by Section 47.01, Penal Code, for
  consideration;
                     (B)  includes, when played for consideration
  using money, property, checks, credit, or a representative of
  value:
                           (i)  a banking game, percentage game, or
  game of chance played with cards, dice, or a mechanical,
  electromechanical, electronic, or other device; and
                           (ii)  a game or device approved by the
  commission as a casino game; and
                     (C)  does not include:
                           (i)  placing, receiving, or otherwise
  knowingly transmitting a bet by a means that requires the use of the
  Internet, except for placing, receiving, or otherwise knowingly
  transmitting a bet using the Internet in connection with the play of
  games or devices that are offered by a casino license holder and
  that are played on-site at a casino;
                           (ii)  playing any mechanical,
  electromechanical, electronic, or other device designed, made, and
  adapted solely for bona fide amusement purposes if the device
  rewards the player exclusively with noncash merchandise prizes,
  toys, or novelties, or a representation of value redeemable for
  those items, that have a wholesale value available from a single
  play of the game or device of not more than 10 times the amount
  charged to play the game or device once or $5, whichever is less;
                           (iii)  bingo authorized under Chapter 2001;
                           (iv)  charitable raffles authorized under
  Chapter 2002;
                           (v)  the state lottery conducted under
  Chapter 466, Government Code; 
                           (vi)  sports wagering; or
                           (vii)  the placing of a bet:
                                 (a)  that occurs in a private place, as
  defined by Section 47.01, Penal Code;
                                 (b)  in connection with which no person
  receives any economic benefit other than personal winnings; and
                                 (c)  that, except for the advantage of
  skill or luck, involves risks of losing and chances of winning that
  are the same for all participants.
               (7)  "Casino license" means a license issued under
  Section 2202.051.
               (8)  "Casino service" means the provision of goods or
  services, including security service and gaming schools, to a
  person holding a casino license or operator license under this
  subtitle, other than a service requiring a manufacturer license.
               (9)  "Casino service license" means a license issued
  under Section 2202.152.
               (10)  "Commission" means the Texas Gaming Commission.
               (11)  "Company" means a corporation, partnership,
  limited partnership, trust, association, joint stock company,
  joint venture, limited liability company, or other form of business
  organization. The term does not include a sole proprietorship or
  natural person.
               (12)  "Credit instrument" means a writing that
  evidences a casino gaming debt or sports wagering debt owed to a
  casino license holder at the time the debt is created. The term
  includes any writing accepted in consolidation, redemption, or
  payment of a prior instrument.
               (13)  "Destination resort" means a mixed-use
  development consisting of casino gaming facilities and a
  combination of various tourism amenities and facilities, including
  hotels, restaurants, meeting facilities, attractions,
  entertainment facilities, and shopping centers.
               (14)  "Director" means a member of the board of
  directors of a corporation or a person performing similar functions
  for a company that is not a corporation.
               (15)  "Education" means:
                     (A)  public education;
                     (B)  higher education, including the creation of a
  permanent fund for the benefit of higher education institutions not
  included in the Permanent University Fund established by Section
  11, Article VII, Texas Constitution; and
                     (C)  adult education related to responsible
  gaming.
               (16)  "Equity interest" means a proprietary interest,
  right, or claim allowing the holder to vote on matters of
  organizational governance or participate in the profits and
  residual assets of a company, including common and preferred stock
  in a corporation, a general or limited partnership interest in a
  partnership, a similar interest in any other form of business
  organization, and a warrant, right, or similar interest to
  subscribe for a proprietary right or claim or that is convertible
  into a proprietary right or claim, with or without the payment of
  additional consideration.
               (17)  "Executive director" means the executive
  director of the commission.
               (18)  "Gaming agreement" means an agreement authorized
  under Chapter 2202 or 2203 between this state and a federally
  recognized Indian tribe with Indian lands in this state under which
  this state allows the tribe to conduct limited casino gaming
  activities authorized under Chapter 2202 or 2203 or applicable
  federal law.
               (19)  "Gaming device" means a mechanical,
  electromechanical, or electronic contrivance, component, or
  machine, including a slot machine, used in connection with casino
  gaming or sports wagering that affects the result of a bet by
  determining win or loss. The term includes a system for processing
  information that can alter the normal criteria of random selection,
  affect the operation of a game, or determine the outcome of a game.
               (20)  "Gaming employee":
                     (A)  means an individual directly involved in the
  operation or conduct of casino gaming or sports wagering in a casino
  performing a service in a capacity that the commission finds
  appropriate for occupational licensing under Section 2202.102 and
  includes:
                           (i)  a boxman, a cashier, change personnel,
  counting room personnel, a dealer, a floor person, a host empowered
  to extend credit or complimentary services, a keno runner, a keno
  writer, a machine mechanic, or security personnel;
                           (ii)  a shift or pit boss or a supervisor or
  manager involved in casino gaming or sports wagering activities;
                           (iii)  accounting or internal auditing
  personnel directly involved in recordkeeping or the examination of
  records generated from casino gaming or sports wagering activities;
  and
                           (iv)  a junketeer or other independent agent
  whose compensation is based on the amount of money a patron wagers
  or loses or who is paid per patron more than the price of admission;
  and
                     (B)  does not include bartenders, cocktail
  waitresses, or other individuals engaged exclusively in preparing
  or serving food or beverages or individuals providing nominal or
  maintenance services.
               (21)  "Gaming-related business" means any business
  engaged in the service or support of casino gaming or sports
  wagering activities regulated under this subtitle or commission
  rule.
               (22)  "Gross casino gaming revenue":
                     (A)  means the total amount of the following, less
  the sum of all money paid as losses to patrons playing a casino
  game, the amounts paid to purchase from independent financial
  institutions annuities to fund losses paid to patrons playing a
  casino game, and the items deductible as losses under Section
  2202.253:
                           (i)  money received by a casino license
  holder from players playing casino games;
                           (ii)  money received by a casino license
  holder in payment for credit extended by the casino license holder
  to a patron for the purposes of casino gaming; and
                           (iii)  compensation received by a casino
  license holder for conducting any casino game in which the license
  holder is not a party to a wager; and
                     (B)  does not include:
                           (i)  counterfeit money or tokens;
                           (ii)  coins of other countries that are
  received in slot machines or other gaming devices;
                           (iii)  cash taken in fraudulent acts
  perpetrated against a casino license holder for which the license
  holder is not reimbursed; or
                           (iv)  cash received as entry fees for
  contests or tournaments in which the patrons compete for prizes.
               (23)  "Gross sports wagering revenue":
                     (A)  means the total amount of the following, less
  the sum of all money paid as losses to patrons engaged in sports
  wagering and the amounts paid to purchase from independent
  financial institutions annuities to fund losses paid to patrons
  engaged in sports wagering:
                           (i)  money received by a license holder from
  patrons engaged in sports wagering;
                           (ii)  money received by a license holder in
  payment for credit extended by the license holder to a patron for
  the purposes of sports wagering; and
                           (iii)  compensation received by a license
  holder for conducting any sports wagering in which the license
  holder is not a party to a wager; and
                     (B)  does not include:
                           (i)  counterfeit money or tokens;
                           (ii)  cash taken in fraudulent acts
  perpetrated against a license holder for which the license holder
  is not reimbursed; or
                           (iii)  cash received as entry fees for
  contests or tournaments in which the patrons compete for prizes.
               (24)  "Hearing examiner" means a person authorized by
  the commission to conduct hearings.
               (25)  "Indian lands" means land:
                     (A)  on which gaming is permitted under the Indian
  Gaming Regulatory Act (Pub. L. No. 100-497); or
                     (B)  that was held in trust by the United States on
  January 1, 1998, for the benefit of the Indian tribe pursuant to the
  Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
  Texas Restoration Act (Pub. L. No. 100-89).
               (26)  "Institutional investor" means a person, other
  than a state or federal government pension plan, that meets the
  requirements of a qualified institutional buyer, as that term is
  defined by 17 C.F.R. Section 230.144A and is:
                     (A)  a bank as defined by Section 3(a)(6),
  Securities Exchange Act of 1934 (15 U.S.C. Section 78c(a)(6));
                     (B)  an insurance company as defined by Section
  2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section
  80a-2(a)(17));
                     (C)  an investment company registered under
  Section 8, Investment Company Act of 1940 (15 U.S.C. Section
  80a-8);
                     (D)  an investment adviser registered under
  Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section
  80b-3);
                     (E)  a collective trust fund as described by
  Section 3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section
  80a-3(c)(11));
                     (F)  an employee benefit plan or pension fund that
  is subject to the Employee Retirement Income Security Act of 1974
  (29 U.S.C. Section 1001 et seq.), excluding an employee benefit
  plan or pension fund sponsored by a publicly traded corporation
  registered with the commission;
                     (G)  a state or federal government pension plan;
                     (H)  a group composed entirely of persons
  specified in Paragraphs (A)-(G); or
                     (I)  any other person the commission determines
  for reasons consistent with the policies expressed in Section
  2202.001.
               (27)  "Internet" means the largest nonproprietary
  nonprofit cooperative public computer network, popularly known as
  the Internet.
               (28)  "Key executive" means a corporation's directors
  and executive officers, a partnership's general partners, a trust's
  trustee, a joint venture's managing venturers, and each person
  possessing similar responsibilities and authorities in any other
  form of business organization.
               (29)  "License holder" means a person who holds a
  license issued by the commission.
               (30)  "Live sporting event" means:
                     (A)  a football, basketball, baseball, hockey, or
  similar game;
                     (B)  a boxing or martial arts match; or
                     (C)  any other event designated by the commission.
               (31)  "Manufacturer license" means a license issued
  under Section 2202.151.
               (32)  "Metropolitan statistical area" means a
  metropolitan statistical area designated by the United States
  Office of Management and Budget.
               (33)  "Mixed-use development" means a developed area of
  land.
               (34)  "Occupational license" means a license issued
  under Section 2202.102.
               (35)  "Operator" means a person other than the casino
  license holder who contractually agrees to provide operational and
  managerial services on behalf of the casino license holder for the
  operation of any activities occurring at the casino in return for a
  payment based wholly or partly on profits or receipts from the
  conduct of casino gaming or sports wagering.
               (36)  "Operator license" means a license issued under
  Section 2202.101.
               (37)  "Pari-mutuel wagering" has the meaning assigned
  by Section 2021.003.
               (38)  "Patron" or "player" means a person who
  contributes any part of the consideration to play a casino game or
  to engage in sports wagering. For purposes of this subdivision,
  consideration does not include a separate fee payable in order to
  wager.
               (39)  "Principal manager" means a person who, as
  determined under commission rules, holds or exercises managerial,
  supervisory, or policy-making authority over the management or
  operation of a casino gaming or sports wagering activity or casino
  service that in the commission's judgment warrants the occupational
  licensing as a principal manager for the protection of the public
  interest. The term includes a key executive of a company license
  holder.
               (40)  "Public safety program" means a program for crime
  prevention and law enforcement, including a program designed to
  prevent and prosecute crimes involving human trafficking and money
  laundering.
               (41)  "Slot machine" means a casino game in which a
  player uses a mechanical, electromechanical, electronic, or other
  device that, on insertion of a coin, token, or similar object or on
  payment of consideration, is available to play or operate, the play
  or operation of which, wholly or partly by chance, may entitle the
  player operating the machine to receive or deliver to the player a
  payment for winnings in the form of cash, premiums, merchandise,
  tokens, or any other thing of value.
               (42)  "Sports wagering" means placing a wager on a live
  sporting event as authorized by this subtitle.
               (43)  "Table game" means a casino game played in a
  casino, including roulette, keno, twenty-one, blackjack, craps,
  poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer,
  baccarat, pai gow, and other similar casino games. The term does not
  include a slot machine.
         Sec. 2201.002.  APPLICATION OF SUNSET ACT. (a) The Texas
  Gaming Commission is subject to Chapter 325, Government Code (Texas
  Sunset Act). Unless continued in existence as provided by that
  chapter, the commission is abolished September 1, 2033.
         (b)  On the date the commission is abolished under Subsection
  (a), this subtitle expires.
         Sec. 2201.003.  REFERENCES TO LICENSE INCLUDE CERTIFICATE OF
  REGISTRATION, FINDING OF SUITABILITY, OR OTHER APPROVAL. A
  reference in this subtitle to a license applies to a certificate of
  registration, finding of suitability, or other affirmative
  regulatory approval provided under this subtitle or commission
  rule, unless otherwise expressly provided by this subtitle, another
  state or federal law, or commission rule.
         Sec. 2201.004.  EXEMPTION FROM TAXATION. A political
  subdivision of this state may not impose:
               (1)  a tax on the payment of a prize under Chapter 2202
  or 2203;
               (2)  a tax, fee, or other assessment on consideration
  paid to play a casino game or engage in sports wagering as
  authorized by this subtitle; 
               (3)  a tax on gross casino gaming revenue or gross
  sports wagering revenue; or
               (4)  a tax or fee on attendance at or admission to a
  casino authorized by this subtitle unless specifically authorized
  by statute.
  SUBCHAPTER B. TEXAS GAMING COMMISSION
         Sec. 2201.051.  COMMISSION; MEMBERSHIP. (a) The Texas
  Gaming Commission is composed of five qualified members appointed
  by the governor with the advice and consent of the senate.
         (b)  Appointments to the commission shall be made without
  regard to race, color, disability, sex, religion, age, or national
  origin.
         Sec. 2201.052.  QUALIFICATIONS OF COMMISSION MEMBERS. (a)
  To be eligible for appointment to the commission, a person:
               (1)  must be a citizen of the United States;
               (2)  must submit a financial statement that contains
  the information required by Chapter 572, Government Code;
               (3)  may not have a pecuniary interest in an entity
  engaged in the conduct of casino gaming or sports wagering or the
  provision of casino services that require a casino service license,
  including having any security issued by that entity, or be related
  within the second degree by affinity or the third degree by
  consanguinity, as determined under Chapter 573, Government Code, to
  an individual who has a pecuniary interest or holds a security as
  described by this subdivision;
               (4)  may not be an applicant for or holder of a license
  under a law administered by the commission or hold an equity
  interest in a casino license holder requiring qualification under
  Section 2202.060;
               (5)  may not be a member of the governing body of a
  political subdivision of this state; and
               (6)  may not hold an elective office or be an officer or
  official of a political party.
         (b)  Before assuming membership on the commission, a person
  must affirm that the person meets the qualification of this
  section, including that the person does not have a pecuniary
  interest in any business or entity, and is not conducting business
  with any business or entity, that holds a license for involvement in
  casino gaming or sports wagering.
         Sec. 2201.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)
  In this section, "Texas trade association" means a cooperative and
  voluntarily joined association of business or professional
  competitors in this state designed to assist its members and its
  industry or profession in dealing with mutual business or
  professional problems and in promoting their common interest.
         (b)  A person may not be a commission member or an employee of
  the commission employed in a "bona fide executive, administrative,
  or professional capacity," as that phrase is used for purposes of
  establishing an exemption to the overtime provisions of the federal
  Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:
               (1)  the person is an officer, employee, manager, or
  paid consultant of a Texas trade association in the field of gaming;
  or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of gaming.
         (c)  A person may not be a commission member or act as general
  counsel to the commission if the person is required to register as a
  lobbyist under Chapter 305, Government Code, because of the
  person's activities for compensation on behalf of a profession
  related to the operation of the commission.
         Sec. 2201.054.  TERMS; VACANCIES. (a) Commission members
  serve staggered six-year terms, with the term or terms of one or two
  members expiring February 1 of each odd-numbered year.
         (b)  The governor shall fill a vacancy in a position on the
  commission for the remainder of the unexpired term.
         Sec. 2201.055.  PRESIDING OFFICER. The governor shall
  designate a commission member as presiding officer of the
  commission to serve in that capacity at the pleasure of the
  governor.
         Sec. 2201.056.  MEETINGS; OFFICIAL RECORD. (a) The
  commission shall meet not fewer than 12 times each year.
         (b)  The commission may meet at other times at the call of the
  presiding officer or as provided by commission rule.
         (c)  The commission shall keep an official record of all
  commission meetings and proceedings.
         Sec. 2201.057.  GROUNDS FOR REMOVAL. (a) It is a ground for
  removal from the commission that a member:
               (1)  does not have at the time of taking office the
  qualifications required by Section 2201.052;
               (2)  does not maintain during service on the commission
  the qualifications required by Section 2201.052;
               (3)  is ineligible for membership under Section
  2201.053;
               (4)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (5)  is absent from more than half of the regularly
  scheduled commission meetings that the member is eligible to attend
  during a calendar year without an excuse approved by a majority vote
  of the other commission members.
         (b)  The validity of an action of the commission is not
  affected by the fact that it is taken when a ground for removal of a
  commission member exists.
         (c)  If the executive director or a commission member has
  knowledge that a potential ground for removal of a commission
  member exists, the executive director or the commission member, as
  applicable, shall notify the presiding officer of the commission of
  the potential ground for removal. The presiding officer shall then
  notify the governor and the attorney general that a potential
  ground for removal exists. If the potential ground for removal
  involves the presiding officer, the executive director or the
  commission member, as applicable, shall notify the other commission
  members, the governor, and the attorney general that a potential
  ground for removal exists.
         Sec. 2201.058.  TRAINING. (a) A person who is appointed to
  and qualifies for office as a commission member may not vote,
  deliberate, or be counted as a member in attendance at a meeting of
  the commission until the person completes a training program that
  complies with this section.
         (b)  The training program must provide the person with
  information regarding:
               (1)  this subtitle and other laws related to casino
  gaming or sports wagering or gambling regulated by the commission;
               (2)  the commission's programs, functions, rules, and
  budget;
               (3)  the results of the most recent formal audit of the
  commission;
               (4)  the requirements of laws relating to open
  meetings, public information, administrative procedure, and
  conflict of interest; and
               (5)  any applicable ethics policies adopted by the
  commission or the Texas Ethics Commission.
         (c)  A person appointed to the commission is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  travel expenses incurred in attending the training program
  regardless of whether the attendance at the program occurs before
  or after the person qualifies for office.
         Sec. 2201.059.  QUALIFICATIONS AND STANDARDS OF CONDUCT
  INFORMATION. The executive director or the executive director's
  designee shall provide to commission members, as often as
  necessary, information regarding their:
               (1)  qualifications for office under this chapter; and
               (2)  responsibilities under applicable laws relating
  to standards of conduct for state officers.
         Sec. 2201.060.  BOND. (a) Before assuming the duties of
  office, a commission member must execute a bond in the amount of
  $25,000 payable to the state and conditioned on the member's
  faithful performance of the member's duties of office.
         (b)  The bond must be approved by the governor.
         (c)  The cost of the bond shall be paid by the commission.
         Sec. 2201.061.  PROHIBITION OF CERTAIN ACTIVITIES. (a) A
  commission member may not:
               (1)  use the member's official authority to affect the
  result of an election or nomination for public office; or
               (2)  directly or indirectly coerce, attempt to coerce,
  command, or advise a person to pay, lend, or contribute anything of
  value to another person for political purposes.
         (b)  A commission member or the parent, spouse, or child of a
  commission member may not solicit or accept employment or any
  financial interest or benefit from a license holder under a law
  administered by the commission or from an applicant for a license
  before the second anniversary of the date the commission member's
  service on the commission ends.
         Sec. 2201.062.  APPLICATION OF FINANCIAL DISCLOSURE LAW.
  For purposes of Chapter 572, Government Code, a commission member
  and the executive director are appointed officers of a major state
  agency.
         Sec. 2201.063.  PER DIEM; EXPENSES; SALARY. (a) A
  commission member is entitled to:
               (1)  a per diem in an amount prescribed by
  appropriation for each day spent in performing the duties of the
  member;
               (2)  reimbursement for actual and necessary expenses
  incurred in performing those duties; and
               (3)  an annual salary in an amount prescribed by
  appropriation.
         (b)  Reimbursement for expenses under this section is
  subject to any applicable limitation in the General Appropriations
  Act.
         Sec. 2201.064.  EXECUTIVE DIRECTOR. (a) The commission
  shall appoint an executive director, who serves at the pleasure of
  the commission.
         (b)  A person is not eligible for appointment as executive
  director if the person:
               (1)  holds an elective office or is an officer or
  official of a political party; or
               (2)  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.
         (c)  The executive director must have five or more years of
  responsible administrative experience in public or business
  administration or possess broad management skills.
         (d)  The executive director may not pursue any other business
  or occupation or hold any other office for profit.
         (e)  The executive director must meet all eligibility
  requirements relating to commission members.
         (f)  The executive director is entitled to an annual salary
  and other compensation specified by the commission.
         (g)  The executive director or the parent, spouse, or child
  of the executive director may not, before the second anniversary of
  the date the executive director's service to the commission ends,
  acquire a direct or indirect interest in or be employed by an entity
  licensed or registered by the commission in connection with the
  conduct of casino gaming or sports wagering or the provision of
  casino services in this state.
         Sec. 2201.065.  OFFICES. The commission shall maintain its
  primary office in Travis County and may maintain other offices the
  commission determines are necessary.
         Sec. 2201.066.  AUTHORITY TO SUE OR BE SUED; VENUE FOR CIVIL
  SUITS. (a) Subject to Section 2202.360, the commission may sue and
  be sued.
         (b)  Service of process in a suit against the commission may
  be secured by serving the executive director.
         (c)  A suit against the commission must be brought in Travis
  County.
         Sec. 2201.067.  AUDIT. The transactions of the commission
  are subject to audit by the state auditor under Chapter 321,
  Government Code.
  SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION; GAMBLING
  ADMINISTRATION
         Sec. 2201.101.  GENERAL POWERS AND DUTIES. (a) The
  commission has broad authority and shall exercise strict control
  and close supervision over all activities authorized and conducted
  in this state under a law administered by the commission.
         (b)  The commission shall ensure that all casino games, other
  casino gaming activities, sports wagering, and other gambling
  subject to the oversight or regulatory authority of the commission
  are conducted fairly and in compliance with the law.
         (c)  The commission also has the powers and duties granted
  under Chapters 2202 and 2203.
         (d)  All aspects of this subtitle and other laws administered
  by the commission, including those relating to licensing,
  qualification, execution, and enforcement, shall be administered
  by the executive director and the commission for the protection of
  the public and in the public interest.
         (e)  The commission and the executive director have full
  power and authority to hold hearings and, in connection with the
  hearings, to issue subpoenas, to compel the attendance of witnesses
  at any place in this state, to administer oaths, and to require
  testimony under oath. Any process or notice relating to a hearing
  may be served in the manner provided for service of process and
  notices in civil actions. The commission and the executive
  director may pay transportation and other expenses of witnesses as
  they consider reasonable.
         (f)  The executive director and the executive director's
  authorized employees may:
               (1)  inspect and examine a premises where casino
  gaming, sports wagering, or other gambling regulated by the
  commission is conducted or equipment or supplies, including an
  electronic or other gaming device, or associated equipment is
  manufactured, assembled, produced, programmed, sold, leased,
  marketed, distributed, repaired, or modified for use in gaming;
               (2)  for good cause, seize and remove from a premises
  and impound equipment or supplies for the purpose of examination
  and inspection; and
               (3)  demand access to, inspect, examine, photocopy, or
  audit papers, books, and records of applicants and license holders,
  on their premises or elsewhere as practicable, in the presence of
  the applicant or license holder or the applicant's or license
  holder's agent, that report the gross income produced by a
  gaming-related business, verify the gross income, or affect other
  matters on the enforcement of this subtitle or other law
  administered by the commission.
         (g)  For the purpose of conducting audits after the cessation
  of the conduct of casino gaming or sports wagering by a license
  holder, a former license holder shall furnish, on demand of the
  executive director or the executive director's authorized
  employees, books, papers, and records as necessary to conduct the
  audits. The former license holder shall maintain all books,
  papers, and records necessary for audits until at least the third
  anniversary of the date the license is surrendered or revoked and
  is responsible for the costs incurred by the commission in the
  conduct of an audit under this section. If the former license
  holder seeks judicial review of a deficiency determination or files
  a petition for a redetermination, the former license holder must
  maintain all books, papers, and records until a final order is
  entered on the determination.
         (h)  The commission shall contract with at least one
  independent testing laboratory to scientifically test and
  technically evaluate casino games, gaming devices, and associated
  equipment for compliance with this subtitle. The independent
  testing laboratory must have a national or international reputation
  of being demonstrably competent and must be qualified to
  scientifically test and evaluate all components of casino games,
  gaming devices, and associated equipment for compliance with this
  subtitle and to perform the functions assigned to it under this
  subtitle. An independent testing laboratory may not be owned or
  controlled by a person licensed to conduct casino games or sports
  wagering or to manufacture gaming devices or associated equipment.
  The use of an independent testing laboratory for purposes related
  to the conduct of casino gaming or sports wagering under this
  subtitle must be made from a list of at least two laboratories
  approved by the commission.
         Sec. 2201.102.  RULEMAKING AUTHORITY. (a) The commission
  shall adopt rules the commission considers necessary or desirable
  for the public interest in carrying out the policy and provisions of
  this subtitle and the other laws administered by the commission.
         (b)  The rules must prescribe:
               (1)  the method and form of applying for a license under
  this subtitle and for the commission's consideration of an
  application;
               (2)  any notice required to apply for a license under
  this subtitle;
               (3)  the information an applicant or license holder
  must provide under Chapter 2202 concerning antecedents, habits,
  character, associates, criminal history record information,
  business activities, and financial affairs;
               (4)  the criteria the commission will use in awarding,
  revoking, and suspending licenses under Chapter 2202;
               (5)  the information a license holder must provide
  under Chapter 2202 relating to the holder's employees;
               (6)  the manner of and procedures for hearings
  conducted by the commission or a hearing examiner of the
  commission;
               (7)  the payment of fees or costs by an applicant or
  license holder under Chapter 2202;
               (8)  the procedures for issuance of temporary licenses
  and temporary qualifications to hold equity interests in a casino
  license holder under Chapter 2202;
               (9)  the manner and method of collecting and paying
  fees and of issuing licenses;
               (10)  the conditions under which the nonpayment of a
  gambling debt by a license holder constitutes grounds for
  disciplinary action;
               (11)  the manner of approval of casino games, slot
  machines, gaming devices, and associated equipment;
               (12)  access to confidential information obtained
  under this chapter, Chapter 2202, Chapter 2203, or other law and the
  means to ensure that the confidentiality of the information is
  maintained and protected;
               (13)  financial reporting and internal control
  requirements for license holders;
               (14)  the manner of computing and reporting money
  awarded to players, compensation from casino gaming and sports
  wagering, and gross casino gaming revenue and gross sports wagering
  revenue under Chapter 2202;
               (15)  the requirements for the annual audit of the
  financial statements of a license holder;
               (16)  the requirements for periodic financial reports
  from each license holder consistent with standards and intervals
  prescribed by the commission;
               (17)  the procedures to be followed by a license holder
  for excluding a person from a casino;
               (18)  the procedures and criteria for requiring a
  finding of suitability under Section 2202.006; and
               (19)  the procedures and criteria for exempting a group
  or class of persons from the registration or qualification
  requirements of Chapter 2202.
         Sec. 2201.103.  AUTHORITY OF EXECUTIVE DIRECTOR. (a) With
  commission approval, the executive director may create executive
  positions as the executive director considers necessary to
  implement this chapter, Chapter 2202, Chapter 2203, and any other
  law administered by the commission.
         (b)  The executive director shall employ directors in the
  areas of audit, investigation, and enforcement. The audit director
  must be a certified public accountant, have five or more years of
  progressively responsible experience in general accounting, and
  have a comprehensive knowledge of the principles and practices of
  corporate finance or must possess qualifications of an expert in
  the field of corporate finance and auditing, general finance,
  gaming, and economics. Other directors must possess five or more
  years of training and experience in the fields of investigation,
  law enforcement, law, or gaming.
         (c)  The executive director may investigate, for the purpose
  of prosecution, a suspected criminal violation of this subtitle or
  other laws related to casino gaming, sports wagering, or gambling
  regulated by the commission. For the purpose of the administration
  and enforcement of this subtitle or another related law, the
  executive director and employees designated as enforcement
  officers by the executive director may be commissioned as peace
  officers.
         (d)  The executive director, to further the objectives and
  purposes of this subtitle or other laws related to casino gaming,
  sports wagering, or gambling regulated by the commission, may:
               (1)  direct and supervise all administrative actions of
  the commission;
               (2)  bring legal action in the name and on behalf of the
  commission;
               (3)  make, execute, and effect an agreement or contract
  authorized by the commission;
               (4)  employ the services of persons considered
  necessary for consultation or investigation and set the salaries of
  or contract for the services of legal, professional, technical, and
  operational personnel and consultants, except that outside legal
  assistance may be retained only with the approval of the
  commission;
               (5)  acquire furnishings, equipment, supplies,
  stationery, books, and all other goods the executive director
  considers necessary or desirable in carrying out the executive
  director's functions; and
               (6)  perform other duties the executive director may
  consider necessary to effect the purposes of this subtitle or other
  laws related to casino gaming, sports wagering, or gambling
  regulated by the commission.
         (e)  Except as otherwise provided in this subtitle, the costs
  of administration incurred by the executive director shall be paid
  in the same manner as other claims against the state are paid.
         Sec. 2201.104.  OFFICE OF HEARING EXAMINERS. (a) The
  commission shall create an office of hearing examiners to assist
  the commission in carrying out its powers and duties.
         (b)  The office of hearing examiners shall:
               (1)  hold hearings under the authority of the
  commission on matters relating to the commission's administration
  of this subtitle and other laws related to casino gaming, sports
  wagering, or gambling regulated by the commission as the commission
  orders; and
               (2)  report after a hearing in the manner prescribed by
  the commission.
         (c)  The commission shall refer any contested case arising
  under this subtitle or other laws related to casino gaming, sports
  wagering, or gambling regulated by the commission to the office of
  hearing examiners or the State Office of Administrative Hearings.
         (d)  The office of hearing examiners is independent of the
  executive director and is under the exclusive control of the
  commission.
         (e)  The office of hearing examiners is under the direction
  of a chief hearing examiner appointed by the commission.
         (f)  The commission may authorize the chief hearing examiner
  to delegate to one or more hearing examiners the authority to hold
  any hearing called by the chief hearing examiner.
         (g)  The chief hearing examiner and each assistant hearing
  examiner employed by the office of hearing examiners must be an
  attorney licensed to practice law in this state.
         (h)  The chief hearing examiner and each assistant hearing
  examiner may administer oaths, receive evidence, and issue
  subpoenas to compel the attendance of witnesses and the production
  of papers and documents in all matters delegated to the office of
  hearing examiners by the commission.
         (i)  The chief hearing examiner and each assistant hearing
  examiner is entitled to an annual salary and other compensation
  specified by the commission.
         (j)  The office of hearing examiners may contract for
  additional services it considers necessary to carry out its powers.
         Sec. 2201.105.  JUDICIAL REVIEW IN CONTESTED CASES. A final
  decision of the commission in a contested case is subject to
  judicial review under Chapter 2001, Government Code. Judicial
  review is under the substantial evidence rule, as provided by that
  chapter.
         Sec. 2201.106.  RECORDS; CONFIDENTIAL INFORMATION. (a) The
  executive director shall maintain a file of all applications for
  licenses under this subtitle, together with a record of all action
  taken with respect to the applications.
         (b)  The commission and the executive director may maintain
  other records considered desirable.
         (c)  The information made confidential by this section may be
  disclosed, wholly or partly, only:
               (1)  in the course of the necessary administration of
  this subtitle or in the enforcement of other laws related to casino
  gaming, sports wagering, or other gambling regulated by the
  commission;
               (2)  under Section 2202.353;
               (3)  on the order of a court; or
               (4)  as authorized under commission rule, to an
  authorized agent of any agency of the United States, another state,
  or a political subdivision of this state.
         (d)  Notice of the content of any information furnished or
  released under Subsection (c) may be given to any affected
  applicant or license holder as prescribed by commission rule.
         (e)  The following information is confidential and may not be
  disclosed:
               (1)  information requested by the commission or the
  executive director under this subtitle or another applicable law
  that may otherwise be obtained relating to the finances, earnings,
  or revenue of an applicant or license holder;
               (2)  information pertaining to an applicant's criminal
  history record information, antecedents, and background that has
  been furnished to or obtained by the commission or the executive
  director from any source;
               (3)  information provided to the commission or the
  executive director or a commission employee by a governmental
  agency or an informer or on the assurance that the information will
  be held in confidence and treated as confidential;
               (4)  information obtained by the executive director or
  the commission from a license holder, including a casino service
  license holder, relating to the manufacturing, modification, or
  repair of gaming devices;
               (5)  security plans and procedures of the commission
  designed to ensure the integrity and security of the regulation and
  operation of casino gaming, sports wagering, or other gambling
  regulated by the commission;
               (6)  the street address and telephone number of a
  patron unless the patron has consented to the release of the
  information;
               (7)  information relating to all system operations of
  casino gaming and sports wagering, including security related to
  casino gaming or sports wagering, and commission plans and
  procedures intended to ensure the integrity and security of the
  operation of casino gaming, sports wagering, and other gambling
  regulated by the commission; and
               (8)  reports and related information filed under
  Section 2202.010.
         Sec. 2201.107.  REPRESENTATION BY ATTORNEY GENERAL. (a)
  The attorney general shall represent the commission and the
  executive director in any proceeding to which the commission or the
  executive director is a party under this subtitle or another law
  administered by the commission or in any suit filed against the
  commission or executive director.
         (b)  The office of the attorney general on request shall
  advise the commission and the executive director in all other
  matters, including representing the commission when the commission
  acts in its official capacity.
         Sec. 2201.108.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. (a) The commission may not adopt rules
  restricting advertising or competitive bidding by a person
  regulated by the commission except to prohibit false, misleading,
  or deceptive practices by that person.
         (b)  The commission may not include in its rules to prohibit
  false, misleading, or deceptive practices by a person regulated by
  the commission a rule that:
               (1)  restricts the use of any advertising medium;
               (2)  restricts the person's personal appearance or the
  use of the person's voice in an advertisement;
               (3)  relates to the size or duration of an
  advertisement by the person; or
               (4)  restricts the use of a trade name in advertising by
  the person.
         Sec. 2201.109.  RULES ON CONSEQUENCES OF CRIMINAL
  CONVICTION. (a) The commission shall adopt rules necessary to
  comply with Chapter 53.
         (b)  In adopting rules under this section, the commission
  shall list the specific offenses for which a conviction would
  constitute grounds for the commission to take action under Section
  53.021.
         Sec. 2201.110.  SUBPOENA. (a) The commission may request
  and, if necessary, compel by subpoena:
               (1)  the attendance of a witness for examination under
  oath; and
               (2)  the production for inspection and copying of
  records and other evidence relevant to the investigation of an
  alleged violation of this subtitle or other laws related to casino
  gaming, sports wagering, or other gambling regulated by the
  commission.
         (b)  If a person fails to comply with a subpoena issued under
  this section, the commission, acting through the attorney general,
  may file suit to enforce the subpoena in a district court in Travis
  County or in the county in which a hearing conducted by the
  commission may be held.
         (c)  The court shall order a person to comply with the
  subpoena if the court determines that good cause exists for issuing
  the subpoena.
         Sec. 2201.111.  DIVISION OF RESPONSIBILITIES. The
  commission shall develop and implement policies that clearly
  separate the policy-making responsibilities of the commission and
  the management responsibilities of the executive director and the
  staff of the commission.
         Sec. 2201.112.  USE OF TECHNOLOGY. The commission shall
  implement a policy requiring the commission to use appropriate
  technological solutions to improve the commission's ability to
  perform its functions. The policy must ensure that the public is
  able to interact with the commission through the commission's
  Internet website.
         Sec. 2201.113.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of commission rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the commission's
  jurisdiction.
         (b)  The commission's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commission shall designate an appropriately
  qualified person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the commission.
         Sec. 2201.114.  COMMITTEES. The commission may appoint
  committees that it considers necessary to carry out its duties.
         Sec. 2201.115.  CONTRACT AUTHORITY. (a) The commission and
  executive director have broad authority and shall exercise strict
  control and close supervision over casino gaming and sports
  wagering conducted in this state to promote and ensure integrity,
  security, honesty, and fairness in the operation and administration
  of casino gaming and sports wagering under this subtitle.
         (b)  The executive director may contract with a third party
  to perform a function, activity, or service in connection with the
  operation of casino gaming or sports wagering under this subtitle,
  other than investigative services, as prescribed by the executive
  director. A contract relating to the operation of casino gaming or
  sports wagering must be consistent with this subtitle.
         (c)  The executive director may award a contract for
  supplies, equipment, or services, including a contract under
  Subsection (b), pending the completion of any investigation and
  license required by this subtitle. A contract awarded under this
  subsection must include a provision permitting the executive
  director to terminate the contract without penalty if the
  investigation reveals that the person to whom the contract is
  awarded does not satisfy the applicable requirements for a license
  under this subtitle.
         (d)  In the acquisition or provision of facilities,
  supplies, equipment, materials, or services related to the
  implementation of casino gaming or sports wagering under this
  subtitle, the commission must comply with procurement procedures
  prescribed under Subtitle D, Title 10, Government Code.
         Sec. 2201.116.  INVESTIGATIONS AND ENFORCEMENT. (a) A
  violation or alleged violation of this subtitle or of the penal laws
  of this state by the commission, its employees, or a person
  regulated under this subtitle may be investigated by the attorney
  general, the district attorney for Travis County, or a district
  attorney, criminal district attorney, or county attorney for the
  county in which the violation or alleged violation occurred.
         (b)  The commission may investigate violations of this
  subtitle, rules adopted under this subtitle, or other laws related
  to casino gaming, sports wagering, or other gambling regulated by
  the commission and may file a complaint requesting that an
  investigation be conducted in accordance with Subsection (a).
         Sec. 2201.117.  SECURITY. (a) The executive director shall
  maintain a department of security in the commission. The executive
  director shall appoint a deputy to administer the department. The
  deputy must be qualified by training and experience in law
  enforcement or security to supervise, direct, and administer the
  activities of the department.
         (b)  The executive director may employ security officers or
  investigators as the executive director considers necessary and may
  commission investigators or security officers as peace officers.
  The deputy and all investigators employed by the department of
  security and commissioned as peace officers must meet the
  requirements under Chapter 1701 for employment and commission as
  peace officers.
         (c)  A security officer or investigator employed by the
  department of security and commissioned as a peace officer or a
  peace officer who is working in conjunction with the commission or
  the Department of Public Safety in the enforcement of this subtitle
  may:
               (1)  without a search warrant, search and seize a
  gaming device or associated equipment that is located on premises
  for which a person holds a license issued under this subtitle; or
               (2)  seize a gaming device or associated equipment that
  is being used or is in the possession of any person in violation of
  this subtitle or other laws related to casino gaming, sports
  wagering, or other gambling regulated by the commission.
         (d)  The Department of Public Safety or any other state or
  local law enforcement agency, at the commission's request and in
  accordance with an interagency agreement, shall perform a full
  criminal history record information and background investigation
  of a prospective deputy or investigator of the department of
  security of the commission. The commission shall reimburse the
  agency for the actual costs of an investigation.
         (e)  At least once every two years, the executive director
  shall employ an independent firm that is experienced in security,
  including computer security and systems security, to conduct a
  comprehensive study of all aspects of casino gaming and sports
  wagering security.
         Sec. 2201.118.  PROHIBITED GAMBLING GAMES. (a) Except as
  specifically provided by this subtitle or other law, the executive
  director or any other person may not establish or operate a gambling
  game in which the winner is chosen on the basis of the outcome of a
  live sporting event.
         (b)  Except as provided by Chapter 2001 or this subtitle, the
  operation of any game using a slot machine or other gaming device is
  prohibited.
         Sec. 2201.119.  DEPARTMENT OF PUBLIC SAFETY RECORDS. (a)
  Except as otherwise provided by this subtitle, all files, records,
  information, compilations, documents, photographs, reports,
  summaries, and reviews of information and related matters
  collected, retained, or compiled by the Department of Public Safety
  in the discharge of its duties under this subtitle are confidential
  and are not subject to public disclosure.
         (b)  An investigation report or other document submitted by
  the Department of Public Safety to the commission becomes part of
  the investigative files of the commission.
         (c)  Information that is made available to the public is not
  privileged or confidential under this section and is subject to
  public disclosure.
         Sec. 2201.120.  CRIMINAL BACKGROUND INVESTIGATION FOR
  CASINO GAMING OR SPORTS WAGERING. (a) The commission is entitled
  to conduct an investigation of and is entitled to obtain criminal
  history record information maintained by the Department of Public
  Safety, the Federal Bureau of Investigation Identification
  Division, or another law enforcement agency to assist in the
  criminal background investigation of any person directly involved
  with casino gaming, sports wagering, or other gambling regulated
  under this subtitle.
         (b)  Except as otherwise provided by this subtitle, a
  criminal background investigation is governed by commission rules
  adopted under this chapter.
         (c)  The Department of Public Safety or a state or local law
  enforcement agency in this state, in accordance with an interagency
  agreement with the commission, shall provide any assistance
  requested by the commission in the administration and enforcement
  of this subtitle, including conducting criminal background
  investigations of a person seeking a license required under this
  subtitle or of any person required to be named in an application for
  a license under this subtitle.
         (d)  This section does not limit the commission's right to
  obtain criminal history record information from any other local,
  state, or federal agency. The commission may enter into a
  confidentiality agreement with the agency as necessary and proper.
         (e)  Except as otherwise provided by this subtitle or other
  law, criminal history record information obtained by the commission
  under this section may be disclosed only:
               (1)  to another law enforcement agency to assist in or
  further an investigation related to the commission's operation and
  oversight of gaming; or
               (2)  under a court order.
         Sec. 2201.121.  PLAYER AGREEMENT TO ABIDE BY RULES AND
  INSTRUCTIONS. By participating as a player, a player agrees to
  abide by and be bound by the commission's and the license holder's
  rules and instructions, including the rules or instructions
  applicable to the particular casino game or sports wagering
  involved. The player also agrees that the determination of whether
  the player is a valid winner is subject to:
               (1)  the commission's and the license holder's rules,
  instructions, and claims procedures, including those developed for
  the particular casino game or sports wagering involved;
               (2)  any validation tests established by the commission
  for the particular casino game or sports wagering involved; and
               (3)  the limitations and other provisions prescribed by
  this subtitle.
         Sec. 2201.122.  VENUE FOR CRIMINAL PROCEEDING. Venue is
  proper in Travis County or any county in which venue is proper under
  Chapter 13, Code of Criminal Procedure, for:
               (1)  an offense under this subtitle;
               (2)  an offense under the Penal Code, if the accused:
                     (A)  is regulated under this subtitle; and
                     (B)  is alleged to have committed the offense
  while engaged in casino gaming or sports wagering activities; or
               (3)  an offense under Title 7 or 11, Penal Code, that
  involves property consisting of or including a gaming device or
  casino game prize.
  SUBCHAPTER D. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES
         Sec. 2201.151.  PUBLIC INTEREST INFORMATION. (a) The
  commission shall prepare and disseminate consumer information that
  describes the regulatory functions of the commission and the
  procedures by which consumer complaints are filed with and resolved
  by the commission.
         (b)  The commission shall make the information available to
  the public and appropriate state agencies.
         Sec. 2201.152.  COMPLAINTS. (a) The commission by rule
  shall establish methods by which consumers and service recipients
  are notified of the name, mailing address, telephone number, and
  other contact information of the commission for the purpose of
  directing complaints to the commission. The commission may provide
  for that notice:
               (1)  on each form, application, or written contract for
  services of a person regulated under a law administered by the
  commission;
               (2)  on a sign prominently displayed in the place of
  business of each person regulated under a law administered by the
  commission; or
               (3)  in a bill for service provided by a person
  regulated under this subtitle.
         (b)  The commission shall list with its regular telephone
  number any toll-free telephone number established under other state
  law that may be called to present a complaint about a person
  regulated under this subtitle.
         Sec. 2201.153.  RECORDS OF COMPLAINTS. (a) The commission
  shall maintain a system to promptly and efficiently act on
  complaints filed with the commission. The commission shall
  maintain:
               (1)  information about the parties to the complaint and
  the subject matter of the complaint;
               (2)  a summary of the results of the review or
  investigation of the complaint; and
               (3)  information about the disposition of the
  complaint.
         (b)  The commission shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The commission shall periodically notify the parties of
  the status of the complaint until final disposition of the
  complaint.
         Sec. 2201.154.  GENERAL RULES REGARDING COMPLAINT
  INVESTIGATION AND DISPOSITION. The commission shall adopt rules
  concerning the investigation of a complaint filed with the
  commission. The rules must:
               (1)  distinguish between categories of complaints;
               (2)  ensure that complaints are not dismissed without
  appropriate consideration;
               (3)  require that the commission be advised of a
  complaint that is dismissed and that a letter be sent to the person
  who filed the complaint explaining the action taken on the
  dismissed complaint;
               (4)  ensure that the person who files a complaint has an
  opportunity to explain the allegations made in the complaint; and
               (5)  prescribe guidelines concerning the categories of
  complaints that require the use of a private investigator and the
  procedures for the commission to obtain the services of a private
  investigator.
         Sec. 2201.155.  DISPOSITION OF COMPLAINT. (a) The
  commission shall:
               (1)  dispose of each complaint in a timely manner; and
               (2)  establish a schedule for conducting each phase of
  a complaint that is under the control of the commission not later
  than the 30th day after the date the commission receives the
  complaint.
         (b)  Each party shall be notified of the projected time
  requirements for pursuing the complaint. The commission shall
  notify each party to the complaint of any change in the schedule
  established under Subsection (a)(2) not later than the seventh day
  after the date the change is made.
         (c)  The executive director shall notify the commission of a
  complaint that is not resolved within the time prescribed by the
  commission for resolving the complaint.
         Sec. 2201.156.  PUBLIC PARTICIPATION. (a) The commission
  shall develop and implement policies that provide the public with a
  reasonable opportunity to appear before the commission and to speak
  on any issue under the commission's jurisdiction.
         (b)  The commission shall prepare and maintain a written plan
  that describes the manner in which a person who does not speak
  English may be provided reasonable access to the commission's
  programs.
         Sec. 2201.157.  INFORMAL SETTLEMENT CONFERENCE. The
  commission by rule shall establish procedures for an informal
  settlement conference related to a complaint filed with the
  commission.
  CHAPTER 2202. CASINO GAMING AND SPORTS WAGERING
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2202.001.  REGULATION AND LICENSING OF CASINO GAMING
  AND SPORTS WAGERING; PUBLIC POLICY. (a) All casino gaming and
  sports wagering that is conducted in this state and that is
  authorized by law shall be regulated and licensed under this
  chapter, unless federal law or another state law specifically
  provides otherwise.
         (b)  The legislature hereby finds, and declares it to be the
  public policy of this state, that:
               (1)  the development of regulated casino gaming and
  sports wagering at a limited number of destination resorts in this
  state will benefit the general welfare of the people of this state
  by enhancing investment, economic development, and tourism in this
  state, resulting in thousands of new jobs and significant
  additional revenue to this state for essential services;
               (2)  the conduct of regulated casino gaming or sports
  wagering by adults at a limited number of destination resorts and on
  Indian lands will not harm the welfare of this state;
               (3)  the regulation of casino gaming and sports
  wagering in this state is important to ensure that casino gaming and
  sports wagering is:
                     (A)  conducted honestly and competitively; and
                     (B)  free from criminal and corruptive elements;
               (4)  public confidence and trust can be maintained only
  by strict regulation of all persons, locations, practices,
  associations, and activities related to the conduct of casino
  gaming, the casino service industry, and the conduct of sports
  wagering;
               (5)  persons owning any direct or indirect material
  interest in a casino should be licensed and controlled to protect
  the public health, safety, morals, good order, and general welfare
  of the people of this state;
               (6)  certain operators and employees of casinos should
  be regulated, licensed, and controlled to accomplish and promote
  these public policies while protecting the public health, safety,
  morals, good order, and general welfare of the people of this state;
               (7)  certain persons engaging in the casino service
  industry should be regulated, licensed, and controlled to
  accomplish and promote these public policies while protecting the
  public health, safety, morals, good order, and general welfare of
  the people of this state; and
               (8)  it is the intent of the legislature that the
  resources, goods, labor, and services of the people of this state be
  used, where possible, in the operation and construction of
  destination resorts, casinos, and related amenities to the extent
  allowable by law.
         Sec. 2202.002.  EXEMPTION FROM FEDERAL STATUTE. (a) This
  chapter provides an exemption to the application of 15 U.S.C.
  Section 1172, in accordance with that section.
         (b)  All shipments of gaming devices into this state,
  including slot machines, conducted in compliance with the
  applicable provisions of 15 U.S.C. Sections 1173 and 1174 are legal
  shipments of the devices into this state.
         Sec. 2202.003.  CONSTRUCTION; APPLICABILITY OF OTHER LAWS.
  (a) Nothing in this chapter may be construed to implicitly repeal
  or modify existing state laws with respect to gambling, except that
  casino gaming and sports wagering are not prohibited by another law
  if conducted as authorized under this chapter.
         (b)  To the extent of any conflict between Chapter 2003,
  Government Code, and this chapter or a commission rule governing
  casino gaming or sports wagering, this chapter or the commission
  rule prevails in all matters related to casino gaming or sports
  wagering, including in connection with hearings before the State
  Office of Administrative Hearings.
         (c)  This chapter prevails to the extent of any conflict
  between this chapter and a provision of Subtitle A-1 (Texas Racing
  Act).
         Sec. 2202.004.  AUTHORITY TO IMPLEMENT CASINO GAMING AND
  SPORTS WAGERING. (a) The commission may implement casino gaming
  and sports wagering in accordance with this subtitle.
         (b)  The commission shall allow the operation of limited
  casino gaming or sports wagering under this subtitle at locations
  on Indian lands in accordance with an effective gaming agreement
  and in compliance with applicable federal law.
         Sec. 2202.005.  IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR
  INVESTIGATION. Any member or agent of the commission or any witness
  testifying under oath has absolute privilege for any written or
  oral statement made in the course of and relevant to the purpose of
  an official commission proceeding or investigative activity
  related to commission licensing under this chapter. A written or
  oral statement described by this section does not impose liability
  for defamation or constitute a ground for recovery in any civil
  action.
         Sec. 2202.006.  FINDING OF SUITABILITY. To promote the
  integrity and security of casino gaming and sports wagering under
  this subtitle, the commission in its discretion may require a
  finding of suitability for any person conducting business with or
  in relation to the operation of casino gaming or sports wagering who
  is not otherwise required to obtain a license from the commission
  for the person's gaming-related operations.
         Sec. 2202.007.  CONSENT TO COMMISSION DETERMINATION. (a)
  An application for a license under this chapter constitutes a
  request to the commission for a decision on the applicant's general
  suitability, character, integrity, and ability to participate or
  engage in or be associated with casino gaming or sports wagering
  under this chapter in the manner or position sought.
         (b)  By filing an application with the commission, the
  applicant specifically consents to the commission's determination
  if the application, after filing, becomes moot for any reason other
  than death.
         Sec. 2202.008.  LICENSE AS REVOCABLE PERSONAL PRIVILEGE.
  (a) An applicant for a license under this chapter does not have any
  right to the license sought.
         (b)  Any license issued under this chapter is a revocable
  privilege and not a right or property under the United States
  Constitution or the Texas Constitution. An applicant or license
  holder does not acquire any vested right in or under the privilege.
         (c)  The courts of this state have jurisdiction to review a
  decision to deny, limit, or condition a casino license under
  Section 2202.357 or if judicial review is sought on the ground that
  the denial, limitation, or condition violates the Texas
  Constitution or is based on a suspect classification, such as race,
  color, religion, sex, or national origin, in violation of the Equal
  Protection Clause of the Fourteenth Amendment to the United States
  Constitution. The state court must affirm the commission's action
  unless the violation is proven by clear and convincing evidence.
         (d)  A license issued or renewed under this chapter may not
  be transferred or assigned to another person unless approved in
  advance by the commission, and a license may not be pledged as
  collateral. The purchaser or successor of a license holder must
  independently qualify for a license required by this chapter.
         (e)  The following acts are void unless approved by the
  commission before the act occurs or not later than the 60th day
  after the date the act occurs:
               (1)  the transfer, sale, or other disposition of an
  interest in the license holder that results in a change in the
  identity of an equity interest holder requiring qualification under
  Section 2202.060; or
               (2)  the sale of the assets of the license holder, other
  than assets bought and sold in the ordinary course of business, or
  any interest in the assets, to any person not already determined to
  have met the applicable qualifications of this chapter.
         Sec. 2202.009.  PRIZE RULES, PAYMENT, AND REDEMPTION. (a)
  The payment of prizes is the sole and exclusive responsibility of
  the casino license holder or operator license holder. A prize may
  not be paid by the commission or this state except as otherwise
  authorized.
         (b)  Nothing in this chapter limits the ability of a casino
  license holder or operator license holder to provide promotional
  prizes, including wide area progressive networks, in addition to
  prize payouts regulated by the commission.
         (c)  The commission shall enact rules consistent with this
  section governing the use and redemption of prizes and credits
  recorded on player account records, such as players' club cards and
  smart cards.
         Sec. 2202.010.  REPORT ON LITIGATION. (a) A casino license
  holder or operator license holder shall report to the commission
  any litigation relating to casino gaming or sports wagering
  operations, including a criminal proceeding, a proceeding
  involving an issue related to pari-mutuel activities that impact
  casino gaming or sports wagering operations, or a matter related to
  character or reputation relevant to a person's suitability under
  this chapter.
         (b)  The report required under Subsection (a) must be filed
  not later than the 30th day after the date the license holder
  acquires knowledge of the litigation.
         Sec. 2202.011.  COMMISSION APPROVAL REQUIRED FOR PROCEDURES
  AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a) The commission's
  or executive director's approval is required for all internal
  procedures and administrative and accounting controls of a casino
  license holder or operator license holder.
         (b)  The commission by rule shall establish general
  accounting and auditing requirements and internal control
  standards for the conduct of casino gaming and sports wagering at
  casinos.
         Sec. 2202.012.  GAMING EMPLOYEE REPORTING. (a) In this
  section, "employee" includes any person connected directly with or
  compensated by an applicant or license holder as an agent, personal
  representative, consultant, or independent contractor.
         (b)  On or before the 15th day of each month, a casino or
  operator license holder shall submit to the commission a gaming
  employee report for the casino operated by the owner or operator.
  For each gaming employee, the report must provide the employee's
  name, job title, date of birth, and social security number.
         (c)  The gaming employee report is confidential and may not
  be disclosed except under commission order or in accordance with
  this subtitle.
         (d)  The commission may conduct criminal history background
  investigations of gaming employees.
         (e)  The commission may prohibit an employee from performing
  any act relating to gaming if the commission finds that an employee
  has:
               (1)  committed, attempted, or conspired to commit any
  act prohibited by this chapter;
               (2)  concealed or refused to disclose any material fact
  in any commission investigation;
               (3)  committed, attempted, or conspired to commit an
  offense involving or related to larceny or embezzlement;
               (4)  been convicted in any jurisdiction of an offense
  involving or relating to gambling;
               (5)  accepted employment and continued to be employed
  in a position for which commission approval is required after
  commission approval was denied for a reason involving personal
  unsuitability or after failing to apply for approval on commission
  request;
               (6)  been prohibited under color of governmental
  authority from being present on the premises of any casino or any
  establishment where casino gaming, sports wagering, or pari-mutuel
  wagering is conducted for any reason relating to improper gambling
  activity or other illegal acts;
               (7)  wilfully defied any legislative investigative
  committee or other officially constituted body acting on behalf of
  the United States or any state, county, or municipality that sought
  to investigate alleged or potential crimes relating to gambling,
  corruption of public officials, or any organized criminal
  activities; or
               (8)  been convicted of any felony or any crime
  involving moral turpitude.
         (f)  The commission may prohibit an employee from performing
  any act relating to casino gaming or sports wagering based on a
  revocation or suspension of any casino gaming, sports wagering, or
  pari-mutuel wagering license or for any other reason the commission
  finds appropriate, including a refusal by a regulatory authority to
  issue a license for the employee to engage in or be involved with
  casino gaming, sports wagering, or with other regulated gaming or
  pari-mutuel wagering in any jurisdiction.
         Sec. 2202.013.  REPORT OF VIOLATIONS. A person who holds a
  license under this chapter shall immediately report a violation or
  suspected violation of this chapter or a rule adopted under this
  chapter by any license holder, by an employee of a license holder,
  or by any person on the premises of a casino, whether or not
  associated with the license holder.
         Sec. 2202.014.  INDEMNIFICATION, INSURANCE, AND BONDING
  REQUIREMENTS. (a) A license holder shall indemnify and hold
  harmless this state, the commission, and all officers and employees
  of this state and the commission from any and all claims which may
  be asserted against a license holder, the commission, this state,
  and the members, officers, employees, and authorized agents of this
  state or the commission arising from the license holder's
  participation in casino gaming or sports wagering authorized under
  this subtitle.
         (b)  Surety and insurance required under this chapter may
  only be issued by companies or financial institutions financially
  rated "A-" or better as rated by AM Best Company or another rating
  organization designated by the commission and duly licensed,
  admitted, and authorized to conduct business in this state, or by
  other surety approved by the commission.
         (c)  The commission shall be named as the obligee in each
  required surety and as an additional insured in each required
  insurance contract.
         (d)  A casino license holder or operator license holder may
  not be self-insured with regard to gaming operations under this
  section in excess of $50 million per occurrence.
         (e)  The commission by rule shall establish minimum
  insurance coverage requirements for license holders under this
  chapter, including:
               (1)  crime or fidelity insurance against losses caused
  by fraudulent or dishonest acts by an officer or employee of the
  license holder;
               (2)  commercial general liability insurance;
               (3)  property insurance; and
               (4)  business auto liability insurance.
         Sec. 2202.015.  LIABILITY FOR CREDIT AWARDED OR DENIED.
  This state and the commission are not liable for any gaming device
  malfunction or error occurring at a casino that causes credit to be
  wrongfully awarded or denied to players.
  SUBCHAPTER B. CASINO LICENSE
         Sec. 2202.051.  CASINO LICENSE; LIMITED NUMBER; LOCATIONS.
  (a) Casino gaming and sports wagering may be lawfully conducted in
  a casino operating under a casino license. The commission shall
  issue casino licenses as required and limited by the Texas
  Constitution.
         (b)  A person may not own an equity interest in a casino at
  which casino gaming, sports wagering, or other gambling is
  conducted in this state unless the casino is operating under a
  casino license issued for the conduct of gambling at that casino.
         (c)  A separate casino license must be obtained for each
  casino conducting casino gaming, sports wagering, or other gambling
  regulated by the commission. The commission may not issue a casino
  license if issuing the license would cause the number of active
  casino licenses to exceed a limit on the number of active casino
  licenses established by the Texas Constitution or this subtitle.
         (d)  The commission may not issue a casino license for a
  casino located outside of an area authorized under the Texas
  Constitution or this subtitle for a casino location.
         (e)  The commission may issue a temporary license
  authorizing the casino license holder to temporarily conduct casino
  gaming and sports wagering in accordance with commission rules at a
  location within 20 miles of the location for which the casino
  license was issued. A temporary license issued under this
  subsection must expire not later than the first anniversary of the
  date the temporary license is issued.
         (f)  For purposes of determining a casino's location, a
  casino is considered to be located in the county in which is located
  the main public entrance to the casino.
         Sec. 2202.052.  APPLICATION. (a) A person may apply for a
  casino license by submitting in accordance with commission rules an
  application containing information the commission finds necessary
  to determine:
               (1)  the suitability and eligibility of the applicant;
               (2)  the eligibility of the proposed location; and
               (3)  the economic impact of the overall destination
  resort or casino project.
         (b)  In addition to any other information the commission may
  require, an application must include the following information
  concerning the feasibility of the overall destination:
               (1)  evidence that the applicant possesses, or has the
  right to acquire, sufficient real property on which the proposed
  destination resort will be located that accommodates the
  applicant's construction and operation of the destination resort
  substantially as proposed;
               (2)  evidence that the applicant will meet, and a
  specific schedule for meeting, all requirements established by the
  Texas Constitution to conduct casino gaming and sports wagering,
  including satisfaction of any minimum new investment commitment;
               (3)  evidence of the applicant's good character,
  honesty, and integrity;
               (4)  evidence that issuance of the casino license will
  not be detrimental to the public interest or the casino gaming and
  sports wagering industry;
               (5)  a detailed estimate of the total new investment to
  be made by the applicant for the destination resort and evidence of
  the applicant's financial capacity to operate and complete
  development of the destination resort;
               (6)  evidence that the applicant possesses, or
  reasonably expects to obtain, all state, county, and municipal
  permits and approvals necessary for the construction and operation
  of the proposed destination resort within the time prescribed by
  this chapter; and
               (7)  evidence that the applicant is prepared to begin
  construction of its proposed destination resort not later than the
  second anniversary of the date the casino license is issued and to
  proceed with the construction of the destination resort without
  unnecessary delay.
         (c)  An applicant may apply for not more than two casino
  licenses but must submit a separate application for each
  destination resort for which a casino license is sought.
         Sec. 2202.053.  CASINO LICENSE ISSUED TO INDIAN TRIBE;
  AGREEMENT. (a) In addition to the casino licenses issued under
  this subchapter, the commission may issue a casino license to a
  federally recognized Indian tribe for which Indian lands in this
  state were held in trust by the United States on January 1, 1998. A
  license issued under this subsection authorizes the Indian tribe to
  which the license is issued to operate not more than one casino on
  Indian lands held in trust by the United States on January 1, 1998.
         (b)  A casino license issued by the commission under
  Subsection (a) to an Indian tribe constitutes an agreement between
  this state and the tribe for purposes of the Indian Gaming
  Regulatory Act (Pub. L. No. 100-497).
         (c)  An Indian tribe to which Subsection (a) applies may, in
  lieu of operating a casino under a casino license under that
  subsection, operate a casino on Indian lands described by
  Subsection (a) under an agreement with this state governed by this
  chapter and Chapter 2203.
         (d)  The commission may not issue a casino license for a
  location in which casino gaming or sports wagering is prohibited
  under a gaming agreement between an Indian tribe and this state.
         Sec. 2202.054.  MANDATORY LICENSE REQUIREMENTS. (a) A
  company is eligible to apply for and hold a casino license only if:
               (1)  the company is incorporated or organized and in
  good standing in this state or organized under the laws of another
  state of the United States and qualified to conduct business in this
  state; and
               (2)  the company complies with all laws of this state.
         (b)  To be eligible to hold a casino license, an applicant
  must submit an application to the commission by the date
  established by the commission.
         (c)  An application may not be considered filed for purposes
  of this chapter if the application does not include the information
  prescribed by Section 2202.052(b) or is not accompanied by the
  required application fee.
         Sec. 2202.055.  CONSIDERATIONS FOR INITIAL AND CONTINUING
  SUITABILITY FOR CASINO LICENSE. (a) The commission shall
  determine the initial and continuing suitability of each applicant
  for or holder of a casino license based on suitability criteria
  prescribed by commission rule to ensure that all casino license
  holders are of good character, are honest, have integrity, and are
  financially stable, that a casino license holder has sufficient
  business probity and competence, and that a casino license holder
  meets other applicable qualifications for the issuance of the
  license.
         (b)  The commission shall give due consideration to the
  protection of the public health, safety, morals, and general
  welfare of the people of this state and for the reputation of the
  state's casino gaming and sports wagering industry.
         (c)  In considering the initial and continuing suitability
  of an applicant for or holder of a casino license, the commission
  shall consider:
               (1)  whether the applicant or casino license holder is
  a qualified applicant as described by the Texas Constitution;
               (2)  the applicant's or casino license holder's
  experience in conducting licensed casino gaming and sports wagering
  operations and the applicant's financial ability to promptly
  construct and adequately maintain the proposed casino project; and
               (3)  the applicant's or casino license holder's
  progress toward satisfying any minimum investment commitment
  required by the Texas Constitution and the schedule specified in
  the application.
         (d)  In determining whether an applicant meets any minimum
  investment commitment required by the Texas Constitution, the
  commission may not consider the expenditure of any public money or
  facilities developed or built with public assistance or tax
  incentives of any kind.
         (e)  The burden of proving suitability to receive or hold a
  casino license is on the applicant or license holder.
         (f)  In considering the initial and continuing suitability
  of an applicant for or holder of a casino license, the commission
  may consider the suitability of:
               (1)  each person holding an equity interest in the
  applicant or license holder requiring qualification under Section
  2202.060;
               (2)  each person holding or proposed to receive an
  operator license, occupational license, or manufacturer license
  employed by or conducting business with the applicant or license
  holder; and
               (3)  each affiliate of the applicant or license holder.
         (g)  An applicant for or holder of a casino license may not
  receive or hold a casino license if the person or an officer or
  director:
               (1)  has been convicted of a felony in the past 20 years
  under the laws of this state, any other state, or the United States;
               (2)  has ever knowingly or intentionally submitted an
  application for a license under this chapter that contained false
  information;
               (3)  served as a principal manager for an applicant or
  license holder described by Subdivision (1) or (2);
               (4)  retains or employs another person described by
  Subdivision (2);
               (5)  holds a manufacturer license or casino service
  license;
               (6)  is a commission member; or
               (7)  is a member of the judiciary or an elected official
  of this state.
         (h)  The commission may adopt rules providing for a person's
  reciprocal determination of suitability to hold a casino license
  based partly on a determination of suitability to own and operate a
  casino in any other jurisdiction the commission considers
  reasonable for purposes of this chapter.
         (i)  In addition to all other applicable considerations and
  suitability criteria, if the Texas Constitution requires a casino
  license applicant to be selected through an open bid process, the
  commission shall consider the following factors when selecting the
  applicant:
               (1)  the relevant financial investment each competing
  applicant will make for the applicant's proposed destination resort
  project;
               (2)  the relative prospective revenue this state will
  collect from casino gaming and proposed nongaming businesses
  associated with the applicant's proposed destination resort
  project;
               (3)  the relative number of state residents who would
  be employed at the applicant's proposed destination resort project
  and any proposed nongaming businesses and the extent of the
  applicant's good faith plan to recruit, train, and promote a
  workforce that reflects the diverse populations of this state in
  all employment classifications;
               (4)  the relative extent to which the applicant's
  proposed destination resort and any proposed associated hotel and
  other nongaming businesses could be reasonably expected to
  encourage interstate tourism to this state;
               (5)  the relative extent to which the scope, design,
  location, and construction of the applicant's destination resort
  and any proposed associated hotel and other nongaming businesses
  could be reasonably expected to contribute to the local economy;
  and
               (6)  the relative commitment of the applicant to
  product procurement for the applicant's operations from vendors
  based in this state.
         Sec. 2202.056.  REVIEW OF APPLICATION. (a) The commission
  shall issue an order approving or denying an application for a
  casino license not later than 180 days after the date the
  application is filed.
         (b)  The commission may adopt rules for issuing any temporary
  or interim license as the commission finds necessary to administer
  this chapter.
         Sec. 2202.057.  TRANSFERABILITY; CASINO GAMING OR SPORTS
  WAGERING SITE. A casino license is not transferable unless the
  transfer is approved in advance by the commission. A casino license
  authorizes casino gaming or sports wagering only at the specific
  site identified in the license.
         Sec. 2202.058.  REPLACEMENT CASINO LICENSE. (a) Subject to
  Subsection (b), the commission may issue a replacement casino
  license to an applicant that proposes to conduct casino gaming or
  sports wagering at:
               (1)  a destination resort location where casino gaming
  or sports wagering was previously conducted under a casino license
  that expired without being renewed or was revoked or permanently
  surrendered; or
               (2)  a new destination resort located in the same
  metropolitan statistical area as a destination resort location
  where casino gaming or sports wagering was previously conducted
  under a casino license that expired without being renewed or was
  revoked or permanently surrendered, on the condition that the
  license holder make minimum new investments for the development of
  a destination resort in the amount required by the Texas
  Constitution of an initial qualified applicant for the license.
         (b)  The commission may not issue a replacement casino
  license under Subsection (a) if issuing the license would cause the
  number of active casino licenses to exceed a limit on the number of
  active casino licenses established by the Texas Constitution or
  this subtitle.
         (c)  In determining whether to issue a replacement casino
  license to an applicant under Subsection (a), the commission shall
  determine the initial suitability of the applicant using the
  requirements of Section 2202.054 and the considerations of Section
  2202.055.
         (d)  The commission may adopt rules providing additional
  considerations or requirements related to issuance of a replacement
  casino license under Subsection (a).
         Sec. 2202.059.  DENIAL, SUSPENSION, AND REVOCATION. (a)
  The commission may deny an application for a casino license or
  suspend or revoke a casino license if the commission determines
  that the applicant is unsuitable to be issued or the license holder
  is unsuitable to continue to hold a casino license based on the
  applicant's or license holder's:
               (1)  failure to meet or maintain the requirements of
  Section 2202.054; or
               (2)  lack of suitability as determined by the
  commission under Section 2202.055.
         (b)  If the commission has reasonable grounds to believe that
  an applicant is unsuitable to hold or a license holder is unsuitable
  to continue to hold a casino license as provided by Subsection (a),
  the commission shall conduct an investigation under Section
  2202.351 and a hearing under Section 2202.356 and may, based on the
  commission's determination, deny issuance of the license or
  suspend, limit, or revoke the license.
         (c)  On suspension or revocation of a casino license under
  this section, the license holder must immediately cease all casino
  gaming and sports wagering activities.
         (d)  If the holder of a casino license fails to begin
  construction of a casino by the second anniversary of the date the
  license was issued or fails to begin casino gaming or sports
  wagering operations by the fifth anniversary of the date the
  license was issued, the commission may require forfeiture of the
  license, unless the commission for good cause previously granted an
  appropriate extension of time. The commission shall adopt rules
  regarding the criteria and procedure for granting an extension of
  time under this subsection.
         Sec. 2202.060.  REGISTRATION OF INTEREST IN APPLICANT OR
  LICENSE HOLDER. (a) Except as provided by Subsection (b), a person
  who directly or indirectly owns an equity interest in an applicant
  for or holder of a casino license shall register and qualify with
  the commission under commission rules and shall provide information
  the commission finds necessary to determine the suitability and
  eligibility of the person to retain the interest.
         (b)  The following persons are not required to register or
  qualify under this section:
               (1)  a key employee of the casino license holder that is
  required to apply for an occupational license under Section
  2202.102;
               (2)  an institutional investor that is a record owner
  of 25 percent or less of the total equity of the casino license
  holder;
               (3)  a person that beneficially owns five percent or
  less of the total equity of the casino license holder; and
               (4)  any other group or class of persons that the
  commission by rule exempts from registration or qualification.
         (c)  A casino license holder shall provide to the commission
  the name, address, and interest in the casino license holder of each
  person who is exempt from registration or qualification under
  Subsection (b).
         (d)  A registration filed under this section must be
  accompanied by the application fee required under Section 2202.202.
         Sec. 2202.061.  TRANSFERABILITY OF INTEREST; LIMITATION ON
  OWNERSHIP. (a) Except as provided by this subsection, a casino
  license holder may not issue an equity interest to a person without
  the commission's determination of the qualification of the proposed
  subscriber or purchaser to hold the interest. A casino license
  holder that is a publicly held company or is wholly owned by one or
  more publicly held companies may issue equity interests of five
  percent or less of its equity interest to any person without the
  consent of the commission.
         (b)  A person beneficially owning more than five percent of
  the equity interest of a casino license holder may not:
               (1)  transfer an interest in the license holder
  requiring qualification under Section 2202.060 to any person
  without the commission's determination of the qualification of the
  proposed transferee to hold the interest, except that a person may
  transfer not more than five percent of the person's interest in the
  license holder to an affiliate of the transferor or an individual
  related to the transferor within the fourth degree by affinity or
  consanguinity, as determined under Chapter 573, Government Code,
  provided that notice is given to the commission at least 90 days
  before the transfer; or
               (2)  simultaneously beneficially own more than five
  percent of the equity interest of more than one other casino license
  holder.
         (c)  A subscriber or proposed transferee of an interest by a
  casino license holder shall provide to the commission the
  information the commission considers necessary to determine the
  qualification of the person. The commission, not later than the
  60th day after the date of the application, shall determine the
  qualification of a subscriber or proposed transferee and approve or
  deny the issuance or transfer.
         Sec. 2202.062.  DETERMINATION OF QUALIFICATION. (a) The
  commission shall determine the qualification of a person to acquire
  or continue to hold an equity interest in an applicant for or holder
  of a casino license based on the qualification requirements the
  commission adopts for the protection of the public interest to
  ensure that persons holding securities issued by license holders
  are of good character, are honest, have integrity, are financially
  stable, and are otherwise qualified to hold the interest.
         (b)  The burden of proving qualification to acquire or hold
  an equity interest in a license holder is on the person acquiring or
  holding the interest.
         (c)  A person is unsuitable to acquire or retain an equity
  interest in an applicant for or holder of a casino license if the
  person would be unsuitable to receive a casino license under
  Section 2202.055(g).
         (d)  If the commission has reasonable grounds to believe that
  a person holding an equity interest in an applicant for or holder of
  a casino license may be unqualified to retain the person's
  interest, the commission shall conduct an investigation under
  Section 2202.351 and a hearing under Section 2202.356 and may,
  based on the commission's determination, issue an unsuitability
  finding and divestiture order to the holder of the interest and the
  issuer of the interest. On receipt of a divestiture order, the
  person holding the interest shall tender the person's entire
  interest for purchase to the issuer or a third party on terms the
  commission approves.
         (e)  If the commission issues an unsuitability finding and
  divestiture order to a holder of an equity interest, the person
  subject to the order may not:
               (1)  receive, directly or indirectly, a dividend,
  interest, payment, or distribution of any kind relating to the
  security that is the subject of the order; or
               (2)  exercise, directly or indirectly, any voting power
  or other right with respect to the security to which the order
  relates.
         (f)  A person subject to an order may receive payment for the
  sale of the person's interest on terms the commission approves.
         Sec. 2202.063.  HORSE RACING; GREYHOUND RACING; SCOPE OF
  COMMISSION AUTHORITY GOVERNING RACETRACK ASSOCIATIONS. (a) In this
  section:
               (1)  "Greyhound racing," "horse race meeting," "horse
  racing day," and "racetrack association" have the meanings assigned
  to those terms by Section 2021.003.
               (2)  "Class 1 racetrack" means a class 1 racetrack
  described by Section 2026.102.
         (b)  Except as provided by Subsection (c), the commission by
  rule shall ensure that a casino license holder that is also a
  racetrack association holding a license for a class 1 racetrack
  continues to conduct horse race meetings consistent with a minimum
  number of horse racing days that were conducted in 2022.
         (c)  If required by the Texas Constitution, a racetrack
  association that holds a license to conduct horse race meetings at a
  racetrack shall cease all horse racing operations at the racetrack
  and surrender the license as a condition of receiving and holding a
  casino license or designating a person to receive and hold a casino
  license as provided by the Texas Constitution.
         (d)  A racetrack association that holds a license to conduct
  greyhound racing shall cease all greyhound racing operations and
  surrender the license as a condition of receiving and holding a
  casino license or designating a person to receive and hold a casino
  license as provided by the Texas Constitution.
         (e)  Except as otherwise authorized by the commission, a
  casino license holder that is also a racetrack association shall
  keep the license holder's casino operations and financial records
  separate from the racetrack association's racing operations and
  records.
         (f)  An activity regulated by the Texas Racing Commission
  under Subtitle A-1 (Texas Racing Act) is not subject to regulation
  by the commission.
         Sec. 2202.064.  TERM OF CASINO LICENSE. A casino license
  issued under this subchapter expires on the 50th anniversary of the
  date of issuance and may be renewed for one or more 50-year terms.
         Sec. 2202.065.  LOCAL ZONING LAWS. (a) Notwithstanding any
  other law, a destination resort at which casino gaming is
  authorized under this chapter is subject to any applicable local
  government zoning and land use regulations in place on January 1,
  2023.
         (b)  To the extent a destination resort could satisfy the
  criteria for classification as more than one regulated entity or be
  subject to more than one body of regulations, a local government
  zoning and land use authority shall classify and regulate a
  destination resort under the most permissive classification and
  regulations to ensure the maximum economic benefit to this state in
  the shortest possible time.
  SUBCHAPTER C. OPERATOR LICENSE AND OCCUPATIONAL LICENSE
         Sec. 2202.101.  OPERATOR LICENSE. (a) A person may not
  provide services as an operator unless the person holds an operator
  license.
         (b)  An operator license holder must hold a separate operator
  license for each casino that the license holder operates.
         Sec. 2202.102.  OCCUPATIONAL LICENSE. (a) Except as
  provided by Subsection (b), a person may not be employed as a gaming
  employee unless the person holds an occupational license.
         (b)  A casino license holder or operator license holder is
  not required to obtain an occupational license to provide services
  as a gaming employee in the casino to which the license relates.
         (c)  A casino license holder shall designate at least one
  occupational license holder as a key employee with responsibility
  over all gaming activities. The commission shall note on each key
  employee's occupational license that the individual is designated
  as a key employee. At least one key employee must be available at
  the casino at all times when casino gaming or sports wagering is
  conducted on the casino license holder's premises.
         Sec. 2202.103.  APPLICATION. (a) An application for an
  operator license or occupational license shall be made in
  compliance with commission rules and must contain information the
  commission finds necessary to determine the suitability and
  eligibility of the applicant to function as a casino operator or to
  be employed or retained as a gaming employee.
         (b)  An application for an operator license or an
  occupational license must be accompanied by the required
  application fee.
         (c)  The commission may issue a temporary operator license
  and a temporary occupational license. The commission shall adopt
  rules regarding the terms of temporary operator licenses and
  temporary occupational licenses.
         Sec. 2202.104.  RESIDENCY. A person is eligible to apply for
  and hold an operator license or occupational license without regard
  to the residency of the applicant.
         Sec. 2202.105.  DETERMINATION OF SUITABILITY. (a) The
  commission shall determine the suitability of an applicant for or
  holder of an operator license or occupational license based on
  suitability criteria the commission adopts in order to ensure that
  a license holder:
               (1)  is of good character, is honest, and has
  integrity;
               (2)  has sufficient business probity, competence, and
  training or experience in the gaming industry to perform the
  function contemplated; and
               (3)  is otherwise qualified to be licensed.
         (b)  The burden of proving suitability to hold an operator
  license or occupational license is on the applicant or license
  holder.
         (c)  In considering the suitability of a company applying for
  or holding an operator license or occupational license to hold the
  license, the commission shall consider the suitability of each
  principal manager and each holder of more than five percent of the
  equity interest of the company to individually hold an occupational
  license based on the suitability standards that apply to an
  applicant for the license generally.
         (d)  A person may not be found suitable to hold an operator
  license or occupational license if that person would be found
  unsuitable to hold a casino license under Section 2202.055(g),
  except that an applicant for an operator license or occupational
  license who has been convicted of a felony may be found suitable if
  the applicant is found to be adequately rehabilitated under
  applicable rehabilitation requirements adopted by the commission
  and is otherwise suitable for licensing.
         Sec. 2202.106.  DENIAL, SUSPENSION, LIMITATION, OR
  REVOCATION OF LICENSE. (a) The commission may deny an application
  for or suspend, limit, or revoke an operator license or
  occupational license for any reasonable cause.
         (b)  If the commission has reasonable cause to believe that
  an operator license holder or occupational license holder may be
  unsuitable to hold the license, giving due consideration to the
  protection of the health, safety, morals, and general welfare of
  this state and to the reputation of the state's casino gaming
  industry, the commission shall conduct an investigation under
  Section 2202.351 and a hearing under Section 2202.356 and may,
  based on the commission's determination, suspend, limit, or revoke
  any license.
         (c)  On suspension or revocation of an operator license or
  occupational license, the license holder shall cease providing all
  services in any capacity requiring a license under Section 2202.101
  or 2202.102.
         (d)  A holder of an operator license or occupational license
  that has been suspended or revoked may not, while the license is
  suspended or revoked:
               (1)  receive, directly or indirectly, any
  compensation, consideration, or payment of any kind relating to the
  conduct of casino gaming or sports wagering in any capacity
  requiring a license under Section 2202.101 or 2202.102, other than
  the payment for services rendered before the suspension or
  revocation; or
               (2)  serve or function in a capacity that would require
  a license under Section 2202.101 or 2202.102.
  SUBCHAPTER D. MANUFACTURER LICENSE AND CASINO SERVICE LICENSE
         Sec. 2202.151.  MANUFACTURER LICENSE. (a) A person may not
  engage in any segment of the slot machine manufacturing industry in
  this state for which a manufacturer license is required under this
  section unless the person holds a manufacturer license covering
  that segment of the industry. This subsection applies only to slot
  machines manufactured for use in this state.
         (b)  The commission shall adopt rules identifying segments
  of the manufacturing industry directly involved in the design,
  manufacture, assembly, production, programming, sale, lease,
  marketing, distribution, repair, or modification of slot machines
  or component parts of slot machines that the commission finds
  appropriate for licensing under this section.
         (c)  A manufacturer license is personal to the license holder
  and allows the license holder to conduct business with any casino.
         Sec. 2202.152.  CASINO SERVICE LICENSE. (a) A person may
  not engage in any segment of the casino service industry that
  requires a casino service license under a rule adopted under
  Subsection (b) or under a provision of Subsection (c) unless the
  person holds a casino service license.
         (b)  The commission shall adopt rules identifying segments
  of the casino service industry directly involved with providing
  gaming-related services, equipment, and supplies that the
  commission finds appropriate for licensing under this section.
         (c)  A person is required to hold a casino service license if
  the person:
               (1)  operates, conducts, or maintains a casino
  gaming- or sports wagering-related business; or
               (2)  furnishes goods, property, or services to a casino
  in exchange for:
                     (A)  a payment based on a percentage of the
  earnings, profits, or receipts from the casino; or
                     (B)  a payment the commission finds to be grossly
  disproportionate to the value of the goods, property, or service
  provided.
         (d)  A utility company, a retail electric provider, a
  municipality, or another political subdivision is not required to
  obtain a casino service license under this section.
         (e)  A casino service license is personal to the license
  holder and allows the license holder to conduct business with any
  casino.
         (f)  A casino license holder or operator license holder, or
  an employee, officer, or director of a casino license holder or
  operator license holder, is not required to obtain a casino service
  license to provide services for the casino to which the casino
  license or operator license relates.
         Sec. 2202.153.  APPLICATION. (a) A person seeking a
  manufacturer license or casino service license shall submit an
  application in accordance with commission rules.
         (b)  The application must:
               (1)  contain information the commission finds
  necessary to determine the suitability and eligibility of the
  applicant; and
               (2)  be accompanied by the required application fee.
         Sec. 2202.154.  DETERMINATION OF SUITABILITY. (a) In
  considering the suitability of a company applying for or holding a
  manufacturer license or casino service license to receive and
  continue to hold the license, the commission shall consider the
  suitability of each principal manager and each holder of more than
  five percent of the equity interest of the company to individually
  receive and hold a manufacturer license or casino service license
  based on the suitability standards that apply to the company.
         (b)  The commission may not find a person suitable to hold a
  manufacturer license or casino service license if that person would
  be found unsuitable to hold a casino license under Section
  2202.055(g), except that an applicant for a manufacturer license or
  casino service license who has been convicted of a felony may be
  found suitable if the applicant is found to be adequately
  rehabilitated under applicable rehabilitation requirements adopted
  by the commission and the applicant or license holder is otherwise
  suitable for licensing.
         Sec. 2202.155.  DENIAL, SUSPENSION, LIMITATION, OR
  REVOCATION OF LICENSE. (a) The commission may deny an application
  for or suspend, limit, or revoke a manufacturer license or casino
  service license for any reasonable cause.
         (b)  If the commission has reasonable cause to believe that a
  manufacturer license holder or casino service license holder may be
  unsuitable to hold the license, giving due consideration to the
  protection of the health, safety, morals, and general welfare of
  this state and to the reputation of the state's casino gaming and
  sports wagering industry, the commission shall conduct an
  investigation under Section 2202.351 and a hearing under Section
  2202.356 and may, based on the commission's determination, suspend,
  limit, or revoke the license.
         (c)  On suspension or revocation of a license, the license
  holder shall cease the performance of manufacturing activity or
  casino service requiring a license under this chapter. After the
  revocation or suspension of the license, the affected license
  holder may not, while the license is revoked or suspended, receive,
  directly or indirectly, compensation, consideration, or payment of
  any kind relating to manufacturing activity or provision of casino
  services in any capacity requiring a license under this chapter,
  other than the payment for goods or services provided before the
  suspension or revocation.
         (d)  A casino license holder or operator license holder who
  has entered into a lease with a manufacturer license holder or
  casino services license holder whose license has been revoked or
  suspended may continue to make payments on the lease based on the
  original terms and conditions of the lease without modification or
  may accelerate the lease and pay the remainder of the lease, at the
  sole option of the casino license holder or operator license
  holder.
         (e)  The burden of proving suitability to receive and hold a
  manufacturer license or casino service license is on the applicant
  or license holder.
  SUBCHAPTER E. LICENSE RENEWAL AND FEES
         Sec. 2202.201.  TERMS. Except as provided by Section
  2202.064, an original or renewal license expires on the first
  anniversary of the date it is issued.
         Sec. 2202.202.  APPLICATION AND RENEWAL FEES; LICENSE TERMS.
  (a) An application fee received under this section must be:
               (1)  deposited in the Texas casino gaming fund; and
               (2)  used for the operation of the commission.
         (b)  An applicant for a casino license must pay an
  application fee as follows, regardless of whether the destination
  resort with the casino has been constructed:
               (1)  $2.5 million for a license for a casino located
  within a destination resort that requires a minimum new investment
  commitment of at least $2 billion;
               (2)  $1.25 million for a license for a casino located
  within a destination resort that requires a minimum new investment
  commitment of at least $1 billion; or
               (3)  $500,000 for a license for a casino located within
  a destination resort that requires a minimum new investment
  commitment of at least $250 million.
         (c)  An applicant for a manufacturer license must pay an
  application fee of $1,000.
         (d)  An applicant for an operator license must pay an
  application fee of $1,000.
         (e)  An applicant for a casino service license must pay an
  application fee of $200.
         (f)  A person registering and applying to qualify to hold an
  equity interest in a license holder must pay an application fee of
  $200.
         (g)  An applicant for an occupational license must pay an
  application fee of $100.
         (h)  All application fees must be in the form of a money order
  or cashier's check and be payable to the Texas Gaming Commission,
  except that the commission may provide for the payment of the fees
  by electronic funds transfer or similar method. Application fees
  are nonrefundable.
         (i)  Application fees shall be applied toward the cost of
  investigating applicants' suitability for licensing or
  qualification under this chapter. Any costs of investigation
  incurred in excess of the application fee shall be paid by the
  applicant, except that the commission by rule may provide for an
  exception to this requirement for casino service licenses and
  occupational licenses.
         (j)  A license described by Subsection (c), (d), (e), (f), or
  (g) expires on the first anniversary of the date the license is
  issued as provided by Section 2202.201.
         (k)  The fee for the renewal of a license described by
  Subsection (c), (d), (e), (f), or (g) is the same amount as the
  initial application fee.
  SUBCHAPTER F. TEXAS CASINO GAMING FUND; TAXES
         Sec. 2202.251.  TEXAS CASINO GAMING FUND. (a) The Texas
  casino gaming fund is a special fund in the state treasury.
         (b)  All application fees and investigation fees collected
  by the commission or on the commission's behalf related to casino
  gaming shall be deposited to the credit of the Texas casino gaming
  fund.
         (c)  The Texas casino gaming fund may be used only for the
  operation of the commission and the administration of this
  subtitle. The amount of money in the fund that exceeds the amount
  necessary for the operation of the commission and the
  administration of this chapter may be transferred to the general
  revenue fund as authorized by the legislature.
         (d)  The operation of the commission and the administration
  of this chapter shall be supported by fees generated under this
  chapter and by a portion of the taxes imposed by Section 2202.252.
         Sec. 2202.252.  CASINO GAMING TAX; SPORTS WAGERING TAX;
  ALLOCATION OF TAXES. (a) A casino gaming tax is imposed on each
  casino license holder in an amount equal to 15 percent of the gross
  casino gaming revenue of the casino operated under the license.
         (b)  The taxes imposed by this section shall be computed and
  paid monthly in accordance with the procedures established by
  commission rule.
         (c)  Except as provided by Subsection (d), the revenue from
  the taxes imposed by this section is allocated to the general
  revenue fund.
         (d)  Of the revenue from the casino gaming tax imposed by
  Subsection (a):
               (1)  the comptroller shall deposit two percent to the
  credit of the escrow account administered by the Texas Racing
  Commission and established under Section 2028.204(b) to be used as
  horse racing purses in this state;
               (2)  three percent shall be allocated to the Texas
  casino gaming fund to support the operation of the commission and
  administration of this chapter; 
               (3)  one-half of one percent shall be allocated to the
  general revenue fund and may be appropriated only to fund a
  compulsive gambling program established under Subchapter J;
               (4)  $1 million may be appropriated in each state
  fiscal biennium to the Department of Public Safety to be used to
  provide grants to prosecuting attorneys for the investigation and
  prosecution of offenses related to the possession of gambling
  devices;
               (5)  10 percent may be appropriated only to fund public
  safety programs; and
               (6)  80 percent may be appropriated only to fund
  education, provided that, if a constitutional amendment proposed by
  the 88th Legislature, Regular Session, 2023, renaming the national
  research university fund as the Texas University Fund is approved
  by the voters and takes effect, an amount equal to the lesser of $1
  billion each state fiscal year or 80 percent of the revenue
  collected from the casino gaming tax imposed by Subsection (a) each
  state fiscal year shall be allocated to the Texas University Fund.
         (e)  To promote the growth of live horse racing in this
  state, the Texas Racing Commission shall allocate the amounts
  deposited under Subsection (d)(1) to horse racetrack associations
  based on the number of live race dates each licensed horse racetrack
  association conducts. The Texas Racing Commission may adopt rules
  to implement this subsection.
         (f)  A sports wagering tax is imposed on each license holder
  in an amount equal to 10 percent of the gross sports wagering
  revenue of the license holder.
         (g)  The taxes imposed by this section are due and payable on
  or before the 20th day of the month following the month in which the
  taxes are imposed.
         (h)  If the amount of taxes required to be reported and paid
  under this section is later determined to be greater or less than
  the amount actually reported and paid by the license holder, the
  commission shall:
               (1)  assess and collect the additional taxes determined
  to be due with interest until paid; or
               (2)  refund any overpayment, with interest, to the
  license holder.
         (i)  Interest required to be collected or refunded under
  Subsection (h) must be computed, until paid, at the rate of one
  percent per month from the first day of the first month following
  the due date of the additional taxes or the date of the overpayment
  of taxes, as applicable.
         Sec. 2202.253.  DETERMINATION OF GROSS CASINO GAMING
  REVENUE. (a) In calculating gross casino gaming revenue, a prize,
  premium, drawing, benefit, or ticket that is redeemable for money,
  merchandise, or other promotional allowance, except money, chips,
  or tokens paid at face value directly to a patron as the result of a
  specific wager and the amount of cash paid to purchase an annuity to
  fund winnings, may not be deducted from gross casino gaming revenue
  as a loss at any game except a slot machine or a table game with a
  progressive jackpot.
         (b)  In calculating gross casino gaming revenue from slot
  machines at a casino, the actual cost to the license holder of any
  personal property distributed to a patron as the result of a
  legitimate wager may be deducted as a loss, but travel expenses,
  food, refreshments, lodging, or services at the license holder's
  casino may not be deducted. For the purposes of this subsection,
  personal property is distributed as the result of a legitimate
  wager if a patron must make a wager before receiving the personal
  property, regardless of whether the receipt of the personal
  property is dependent on the outcome of the wager.
         Sec. 2202.254.  REFUND OF OVERPAYMENT. (a) Taxes imposed
  under this subchapter that are erroneously collected may be
  refunded, on approval of the commission, as other claims against
  the state are paid.
         (b)  Not later than the 90th day after the date notice of the
  commission's action on a claim for refund filed under this chapter
  is sent by mail, the claimant may bring an action against the
  commission on the grounds stated in the claim for the recovery of
  any part of the amount of the claim that has been disallowed.
         (c)  Failure to bring an action within the time specified by
  Subsection (b) constitutes a waiver of any demand against the state
  on account of alleged overpayments.
         (d)  If the commission fails to mail its notice of action on a
  claim within six months after the date the claim is filed, the
  claimant may consider the claim disallowed and bring an action
  against the commission on the grounds set forth in the claim for the
  recovery of any part of the amount claimed as an overpayment.
         (e)  A claim for refund of taxes imposed under this
  subchapter that are paid in excess of the amount required to be
  reported and paid must be filed not later than two years after the
  date of overpayment.
         Sec. 2202.255.  DETERMINATION OF DEFICIENCY. (a) If a
  casino license holder fails to make a report of the taxes imposed
  under this subchapter, or if the executive director is not
  satisfied with the license holder's report of the taxes, the
  executive director may compute and determine the amount due based
  on:
               (1)  any facts contained in the report;
               (2)  an audit conducted by the executive director;
               (3)  an estimate of the amount due;
               (4)  any information in the commission's possession or
  that may come into the executive director's possession; or
               (5)  any combination of the methods described by
  Subdivisions (1)-(4).
         (b)  In making a determination, the commission may offset
  overpayments and interest due against underpayments and interest or
  penalties due for the period of the audit.
         (c)  The executive director shall give prompt written notice
  of a determination of a deficiency under this section to the casino
  license holder. Except in the case of fraud or intent to evade the
  payment of the tax, a notice of a determination of a deficiency must
  be mailed not later than the later of the second anniversary of the:
               (1)  last day of the calendar month following the
  applicable reporting period in which the deficiency occurred; or
               (2)  date the report is filed by the license holder.
         (d)  If the reasons for the deficiency are not apparent, the
  executive director shall include an explanation of those reasons in
  the notice of a determination of a deficiency.
         (e)  If overpayments and interest exceed underpayments,
  penalties, and interest, the excess amount shall be refunded to the
  casino license holder.
         Sec. 2202.256.  PETITION FOR REDETERMINATION; PETITION FOR
  JUDICIAL REVIEW. (a) A casino license holder against whom a
  determination is made under Section 2202.255 may petition the
  commission for a redetermination not later than the 30th day after
  the date notice of the determination is served. If a petition for
  redetermination satisfying the requirements of Subsection (c) is
  not filed by the 30th day, the determination becomes final.
         (b)  If a petition for redetermination satisfying the
  requirements of Subsection (c) is filed within the 30-day period,
  the commission shall review the determination and, if the
  petitioner requests, shall grant a hearing.
         (c)  A petition for redetermination must:
               (1)  specify the contested portions of the
  determination of deficiency;
               (2)  specify the grounds for redetermination;
               (3)  state whether a hearing is requested; and
               (4)  be accompanied by payment in full of the
  uncontested portion of the determination, including any interest
  and penalties.
         (d)  An order or decision of the commission on a petition for
  redetermination is final 10 days after the date the petitioner is
  served.
         (e)  A petitioner against whom an order or decision of the
  commission becomes final may, not later than the 60th day after the
  date the decision is final, petition for judicial review in the
  manner provided by Chapter 2001, Government Code. The executive
  director may not petition for judicial review.
         Sec. 2202.257.  TAX ADMINISTRATION. (a) The commission
  shall perform all functions incident to the administration,
  collection, enforcement, and operation of a fee or tax imposed
  under this chapter. The commission may adopt rules and prescribe
  forms for the administration, collection, and enforcement of a fee
  or tax and for the reporting of a fee or tax.
         (b)  Subtitle B, Title 2, Tax Code, applies to the
  administration, collection, and enforcement of a tax imposed under
  this subchapter, except that the powers and duties assigned to the
  comptroller under that subtitle are assigned to the commission.
  SUBCHAPTER G. REGULATION OF GAMBLING OPERATIONS
         Sec. 2202.301.  REGULATION OF CASINO OPERATIONS. (a) The
  commission shall adopt rules applicable to the operation of casinos
  as the commission finds necessary for the protection of the health,
  safety, morals, and general welfare of this state and for the
  reputation of the state's casino gaming and sports wagering
  industry.
         (b)  Casinos may operate 24 hours a day, seven days a week. A
  license holder may elect other hours of operation.
         Sec. 2202.302.  SPORTS WAGERING. Sports wagering is
  authorized only under a license issued by the commission and is
  subject to rules established by the commission.
         Sec. 2202.303.  USE OF CHIPS OR TOKENS. All casino gaming
  and sports wagering must be conducted with legal tender of the
  United States or with chips, tokens, or other instrumentality
  approved by the commission for that purpose.
         Sec. 2202.304.  REPORTING REQUIREMENTS. (a) A casino
  license holder shall keep the license holder's books and records in
  a manner that clearly shows the total amount of gross casino gaming
  revenue and gross sports wagering revenue, as applicable, and other
  revenues received.
         (b)  The books and records kept by a casino license holder
  relating to casino gaming or sports wagering operations are not
  public records and the publication and dissemination of the
  materials by the commission is prohibited.
         (c)  A casino license holder shall file a report of each
  change of the corporate officers and directors with the commission.
         (d)  A casino license holder shall report to the executive
  director in writing a change in company employees who have been
  designated as key employees.
         (e)  The commission may require that a company furnish the
  commission with a copy of the company's federal income tax return
  not later than the 30th day after the date the return is filed with
  the federal government.
         Sec. 2202.305.  EXCLUSION OF PERSONS. (a) The commission by
  rule shall provide for the establishment of a list of persons who
  must be excluded or ejected from a casino. The list may include a
  person whose presence in the casino or establishment is determined
  by the commission to pose a threat to the interests of this state,
  to licensed casino gaming or sports wagering, or to both interests.
         (b)  In making a determination under this section, the
  commission may consider any:
               (1)  prior conviction of a crime that is a felony in
  this state or under the laws of the United States or a crime
  involving moral turpitude or a violation of the gaming laws of a
  state; or
               (2)  violation of or conspiracy to violate this
  subtitle relating to:
                     (A)  the failure to disclose an interest in a
  casino for which the person must obtain a license;
                     (B)  wilful evasion of a fee or a tax;
                     (C)  a notorious or unsavory reputation that would
  adversely affect public confidence and trust that the gaming
  industry is free from criminal or corruptive elements; or
                     (D)  a written order of a governmental agency that
  authorizes the exclusion or ejection of the person from a casino
  where casino gaming, sports wagering, or pari-mutuel wagering is
  conducted.
         Sec. 2202.306.  INTERNAL AUDIT AND CONTROL SYSTEMS. (a) A
  casino license holder shall adopt an internal control system that
  provides for:
               (1)  the safeguarding of its assets and revenues,
  especially the recording of cash and evidences of indebtedness; and
               (2)  the provision of reliable records, accounts, and
  reports of transactions, operations, and events, including reports
  to the executive director and the commission.
         (b)  The internal control system must be designed to
  reasonably ensure that:
               (1)  assets are safeguarded;
               (2)  financial records are accurate and reliable;
               (3)  transactions are performed only in accordance with
  management's general or specific authorization;
               (4)  transactions are recorded adequately to allow
  proper reporting of gross casino gaming revenue, gross sports
  wagering revenue, fees, and taxes and to maintain accountability
  for assets;
               (5)  access to assets is allowed only in accordance
  with management's specific authorization;
               (6)  recorded accountability for assets is compared
  with actual assets at reasonable intervals and appropriate action
  is taken with respect to any discrepancies; and
               (7)  functions, duties, and responsibilities are
  appropriately segregated and performed in accordance with sound
  practices by competent, qualified personnel.
         (c)  A casino license holder and an applicant for a casino
  license shall describe, in a manner approved or required by the
  executive director, the license holder's or applicant's
  administrative and accounting procedures in detail in a written
  system of internal control. A casino license holder and applicant
  for a casino license shall submit a copy of the license holder's or
  applicant's written system to the executive director. A written
  system must include:
               (1)  an organizational chart depicting appropriate
  segregation of functions and responsibilities;
               (2)  a description of the duties and responsibilities
  of each position shown on the organizational chart;
               (3)  a detailed, narrative description of the
  administrative and accounting procedures designed to satisfy the
  requirements of Section 2202.304(a);
               (4)  a written statement signed by the license holder's
  chief financial officer and either the license holder or the
  license holder's chief executive officer attesting that the system
  satisfies the requirements of this section;
               (5)  if the written system is submitted by an
  applicant, a letter from an independent certified public accountant
  stating that the applicant's written system has been reviewed by
  the certified public accountant and complies with the requirements
  of this section; and
               (6)  other items the executive director may require.
         (d)  The commission shall adopt minimum standards for
  internal control procedures.
         Sec. 2202.307.  AGE REQUIREMENTS. A person under 21 years of
  age may not:
               (1)  play, be allowed to play, place wagers on, or
  collect winnings from, personally or through an agent, any casino
  gaming or sports wagering authorized under this chapter; or
               (2)  be employed as a gaming employee.
         Sec. 2202.308.  ACCEPTANCE OF CREDIT INSTRUMENTS. (a) A
  credit instrument evidencing a gaming transaction may be enforced
  by legal process.
         (b)  A license holder may accept an incomplete credit
  instrument that is signed by a patron and states the amount of the
  debt. The license holder may complete the instrument as is
  necessary for the instrument to be presented for payment.
         (c)  A license holder:
               (1)  may not accept a credit instrument that is
  incomplete, except as authorized by Subsection (b); and
               (2)  may accept a credit instrument that is payable to
  an affiliate or may complete a credit instrument in the name of an
  affiliate as payee if the credit instrument otherwise complies with
  this section and the records of the affiliate pertaining to the
  credit instrument are made available to the executive director on
  request.
         (d)  This section does not prohibit the establishment of an
  account by a deposit of cash, recognized traveler's check, or any
  other instrument that is equivalent to cash.
         (e)  Any person, license holder, or agent or employee of the
  person or license holder who violates this section is subject only
  to the penalties provided in this chapter relating to disciplinary
  actions. The failure of a person to comply with this section or
  commission rules does not invalidate a credit instrument or affect
  the ability to enforce the credit instrument or the transaction
  that the credit instrument represents.
         Sec. 2202.309.  GAMBLING DEBTS. (a) Except as otherwise
  provided by this chapter, gambling debts not evidenced by a credit
  instrument are void and unenforceable and do not give rise to any
  administrative or civil cause of action.
         (b)  A claim by a patron of a license holder for payment of a
  gambling debt not evidenced by a credit instrument may be resolved
  by the executive director under commission rules.
         (c)  The executive director shall send a copy of the
  executive director's ruling by first class mail to the attorneys of
  record and shall keep an appropriate copy of the mailing. If a
  party is not represented by an attorney of record, the executive
  director shall send a copy of the ruling by first class mail to the
  party and shall keep an appropriate record of the mailing.
         (d)  A party or attorney of record notified by mail under
  this section is presumed to have been notified on the date on which
  the notice is mailed.
         (e)  A party aggrieved by the executive director's ruling is
  entitled to have the claim resolved by the commission in a contested
  case under Chapter 2001, Government Code, if the party files a
  written complaint with the commission challenging the executive
  director's ruling not later than the 20th day after the date on
  which the party or the party's attorney of record is notified by
  mail.
         Sec. 2202.310.  QUESTIONING AND DETENTION OF PERSONS. (a) A
  casino license holder or the license holder's officer, employee, or
  agent may question on the premises of the license holder's casino
  any person suspected of violating this chapter while on the casino
  premises. The casino license holder or the license holder's
  officer, employee, or agent is not criminally or civilly liable:
               (1)  as a result of the questioning; or
               (2)  for reporting the person suspected of the
  violation to the executive director or law enforcement authorities.
         (b)  A casino license holder or the license holder's officer,
  employee, or agent who has reasonable cause to believe that there
  has been a violation of this chapter in the license holder's casino
  by a person may take that person into custody and detain the person
  in the casino in a reasonable manner and for a reasonable length of
  time. The taking into custody and detention does not render a
  license holder or the license holder's officer, employee, or agent
  criminally or civilly liable unless it is established by clear and
  convincing evidence that the taking into custody and detention are
  unreasonable under all the circumstances.
         (c)  A casino license holder or the license holder's officer,
  employee, or agent is not entitled to the immunity from liability
  provided by Subsection (a) or (b) unless there is displayed in a
  conspicuous place in the license holder's establishment a notice in
  boldface type, clearly legible, and in substantially this form:
               A CASINO LICENSE HOLDER OR THE HOLDER'S OFFICER,
  EMPLOYEE, OR AGENT WHO HAS A REASONABLE CAUSE TO
  BELIEVE THAT A PERSON HAS VIOLATED A PROVISION OF
  CHAPTER 2202, OCCUPATIONS CODE, MAY QUESTION OR DETAIN
  THAT PERSON IN THIS ESTABLISHMENT.
         Sec. 2202.311.  SLOT MACHINE DISABLED. (a) The commission
  may disable a slot machine operated by a license holder under this
  chapter at the time:
               (1)  a proceeding to suspend a casino license is
  initiated;
               (2)  the commission discovers the license holder failed
  to deposit money received from slot machine operations as required;
  or
               (3)  an act or omission occurs that, under commission
  rules, justifies the termination of slot machine operations to:
                     (A)  protect the integrity of gaming or the public
  health, welfare, or safety; or
                     (B)  prevent financial loss to this state.
         (b)  The commission shall immediately disable a slot machine
  if necessary to protect the public health, welfare, or safety.
         Sec. 2202.312.  SLOT MACHINE DISTRIBUTION AND COMMISSION
  APPROVAL. (a) A person may not distribute a slot machine or other
  gaming device or associated equipment for placement at a casino in
  this state unless the machine or equipment has been approved by the
  commission.
         (b)  Only a person that holds a casino license or
  manufacturer license issued under this chapter may apply for
  approval of a slot machine or other gaming device or associated
  equipment.
         Sec. 2202.313.  TECHNICAL STANDARDS FOR GAMING EQUIPMENT.
  The commission by rule shall establish minimum technical standards
  for gaming devices and associated equipment that may be operated in
  this state.
         Sec. 2202.314.  INCIDENT REPORTS. (a) A casino license
  holder or operator license holder shall record all potential
  criminal violations known to the license holder and related to
  casino gaming or sports wagering activity in the casino.
         (b)  The casino license holder or operator license holder for
  a casino shall assign each incident, without regard to materiality,
  a sequential number and, at a minimum, provide the following
  information in a permanent record prepared in accordance with
  commission rules to ensure the integrity of the record:
               (1)  the number assigned to the incident;
               (2)  the date and time of the incident;
               (3)  the nature of the incident;
               (4)  each person involved in the incident; and
               (5)  the name of the employee or other agent of the
  owner or operator who investigated the incident.
         Sec. 2202.315.  SLOT MACHINE EVENTS. A casino license
  holder or operator license holder shall keep a database of slot
  machine events. The commission by rule shall determine what
  constitutes a slot machine event for purposes of this section.
         Sec. 2202.316.  SECURITY. (a) The casino license holder or
  operator license holder of a casino shall:
               (1)  continuously monitor all slot machines through the
  use of a closed-circuit television system that records activity for
  a continuous 24-hour period, retain all videotapes or other media
  used to store video images for not fewer than seven days, and make
  the tapes or media available to the commission on request;
               (2)  submit for commission approval a security plan and
  a floor plan of the area where slot machines are operated showing
  slot machine locations and security camera mount locations; and
               (3)  employ at least the minimum number of private
  security personnel the commission determines is necessary to
  provide for the safe operation of the casino and the safety and
  well-being of the players.
         (b)  Private security personnel must be present during all
  hours of operation at each casino.
         (c)  An agent or employee of the commission or the Department
  of Public Safety or other law enforcement personnel may be present
  at a casino at any time.
         (d)  The commission may adopt rules to impose additional
  surveillance and security requirements related to casinos and the
  operation of slot machines.
         Sec. 2202.317.  COMMISSION RIGHT TO ENTER. The commission
  or the commission's representative, after displaying appropriate
  identification and credentials, has the free and unrestricted right
  to:
               (1)  enter and inspect a premises in which casino
  gaming or sports wagering is conducted and any premises where
  gaming devices, table games, or associated equipment is
  manufactured, sold, or distributed; and
               (2)  inspect and copy the records of a casino license
  holder or operator license holder of a casino pertaining to the
  casino gaming or sports wagering.
         Sec. 2202.318.  APPOINTMENT OF SUPERVISOR. (a) The
  commission by rule may provide for the appointment of a supervisor
  to manage and operate a casino at the direction of the commission
  and perform any act that a casino license holder or operator license
  holder is entitled to perform in the event that:
               (1)  the casino license, operator license, or other
  license required for operation of the casino is revoked or
  suspended, lapses, or is surrendered;
               (2)  a casino has been conveyed or transferred to a
  secured party receiver or trustee who does not hold the necessary
  licenses to operate the casino; or
               (3)  any other event occurs that causes the casino to
  cease the operation of slot machines.
         (b)  The rules may allow the commission to:
               (1)  take any action or adopt any procedure necessary
  to operate a casino pending the licensing of a casino license
  applicant or operator license applicant that seeks to operate the
  casino on the transfer or sale of the casino; and
               (2)  if necessary to continue the operation of the
  casino, sell the casino to a person that holds or has applied for
  the licenses required to operate the casino under this chapter and
  make appropriate distributions of the proceeds of the sale.
         Sec. 2202.319.  OFFENSE: CONVEYANCE OF CASINO PROPERTY. (a)
  A person commits an offense if during the pendency of any proceeding
  before the commission that may result in the appointment of a
  supervisor or during the period of supervision the person:
               (1)  sells, leases, or otherwise conveys for less than
  full market value or pledges as security any property of a casino;
  or
               (2)  removes from this state or secretes from the
  commission or the supervisor any property, money, books, or records
  of the casino, including evidences of debts owed to the casino.
         (b)  An offense under Subsection (a) is a felony of the third
  degree.
  SUBCHAPTER H. ENFORCEMENT; PRIVILEGED AND CONFIDENTIAL
  INFORMATION
         Sec. 2202.351.  ENFORCEMENT. (a) The executive director
  shall conduct an appropriate investigation to:
               (1)  determine whether there has been a violation of
  this chapter or of a commission rule;
               (2)  determine facts, conditions, practices, or
  matters that the executive director considers necessary or proper
  to aid in the enforcement of a law or rule;
               (3)  aid in adopting rules;
               (4)  secure information as a basis for recommending
  legislation relating to this chapter;
               (5)  determine facts regarding whether an applicant or
  a license holder meets all requirements and suitability criteria to
  be eligible to hold a license under this subtitle; and
               (6)  determine whether a license holder is able to meet
  the license holder's financial obligations, including all
  financial obligations imposed by this chapter, as they become due.
         (b)  If after an investigation the executive director is
  satisfied that a license should be denied, limited, conditioned,
  suspended, or revoked, or that a fine should be levied, the
  executive director shall initiate a hearing under Section 2202.356.
         Sec. 2202.352.  ABSOLUTE PRIVILEGE FOR REQUIRED DOCUMENTS
  AND COMMUNICATIONS; PRIVILEGED DOCUMENTS. (a) An applicant or
  license holder has absolute privilege for the content of any
  document or communication of the applicant or license holder that
  is transmitted or made to the commission or a commission employee or
  designee to comply with any law, including a commission rule, or a
  subpoena issued by the commission or to assist the commission or a
  commission employee or designee in the performance of the duties of
  the commission or a commission employee or designee. Any document
  or communication to which this subsection applies does not impose
  liability for defamation and is not a ground for recovery in any
  civil action by a person other than the commission.
         (b)  If a document or communication contains information
  that is privileged under a law of this state or the law of any other
  jurisdiction in which the document or communication is created or
  stored, the privilege is not waived or lost because the document or
  communication is disclosed to the commission or a commission
  employee or designee.
         (c)  Notwithstanding the powers granted to the commission
  and the executive director by this chapter:
               (1)  the commission or the commission's employee or
  designee may not release or disclose privileged information,
  documents, or communications provided by an applicant or license
  holder and required by a lawful court order unless timely notice of
  the potential release or disclosure has been given to the applicant
  or license holder and the applicant or license holder has provided
  prior written consent to the release or disclosure;
               (2)  the commission and the commission's employees and
  designees shall maintain all privileged information, documents,
  and communications in a secure place accessible only to members of
  the commission and the commission's employees and designees; and
               (3)  the commission shall adopt procedures to protect
  the privileged nature of information, documents, and
  communications provided by an applicant or license holder.
         Sec. 2202.353.  RELEASE OF CONFIDENTIAL INFORMATION. An
  application to a court for an order requiring the commission or the
  executive director to release any information declared by law to be
  confidential shall be made only on a motion in writing delivered not
  later than the 10th day before the date of application to the
  commission, the attorney general, and all persons who may be
  affected by the entry of the order. Copies of the motion and all
  papers filed in support of the motion shall be served with the
  notice by delivering a copy in person or by certified mail to the
  last known address of the person to be served.
         Sec. 2202.354.  EMERGENCY ORDERS. (a) The commission may
  issue an emergency order for suspension, limitation, or
  conditioning of a license or may issue an emergency order requiring
  a casino to keep an individual license holder from the premises of
  the licensed establishment or to not pay the license holder any
  remuneration for services or any profits, income, or accruals on
  the license holder's investment in the casino.
         (b)  An emergency order may be issued only if the commission
  determines that:
               (1)  a license holder has wilfully failed to report,
  pay, or truthfully account for a fee or tax imposed under this
  chapter or wilfully attempted in any manner to evade or defeat a fee
  or tax payment;
               (2)  a license holder or gaming employee has cheated at
  a gambling game; or
               (3)  the action is necessary for the immediate
  preservation of the public peace, health, safety, morals, good
  order, or general welfare.
         (c)  The emergency order must state the grounds on which it
  is issued, including a statement of facts constituting the alleged
  emergency necessitating the action.
         (d)  An emergency order may be issued only with the approval
  of and under the signature of four or more members of the
  commission.
         (e)  An emergency order is effective immediately on issuance
  and service on the license holder or resident agent of the license
  holder, gaming employee, or, in cases involving registration, on
  issuance and service on the person or entity involved or registered
  agent of the entity involved. An emergency order may suspend,
  limit, condition, or take other action in relation to the license of
  one or more persons in an operation without affecting other
  individual license holders or the casino. An emergency order
  remains effective until further order of the commission or final
  disposition of the case.
         (f)  Not later than the fifth day after the date of issuance
  of an emergency order, the executive director shall file a
  complaint and serve it on the person or entity involved. The person
  or entity against whom the emergency order has been issued and
  served is entitled to a hearing before the commission and to
  judicial review of the decision and order of the commission under
  Chapter 2001, Government Code. Judicial review is under the
  substantial evidence rule, as provided by that chapter.
         Sec. 2202.355.  SUSPENSION OR REVOCATION OF LICENSE. (a)
  The commission may suspend or revoke a license issued under this
  chapter if the holder of the license at any time fails to meet the
  eligibility requirements set forth in this chapter.
         (b)  Failure to timely remit gaming revenue generated by slot
  machines to the commission or any tax or other fee owed to this
  state as demonstrated by report from the applicable taxing
  authority or to timely file any report or information required
  under this chapter as a condition of any license issued under this
  chapter may be grounds for suspension or revocation, or both, of a
  license issued under this chapter.
         Sec. 2202.356.  LICENSE HEARING; DISCIPLINARY HEARING. (a)
  Before the commission denies an application, suspends or revokes a
  license, or imposes a fine for a violation of this chapter, the
  commission shall provide written notice to the applicant or license
  holder of the denial, the suspension and the period of suspension,
  the revocation, or the amount of the fine. The notice shall
  include:
               (1)  the effective date of the denial, suspension,
  revocation, or the fine, as applicable;
               (2)  each reason for the denial, suspension,
  revocation, or fine;
               (3)  an explanation of the evidence supporting the
  reasons;
               (4)  a statement explaining that the applicant or
  license holder is entitled to an opportunity to present the
  applicant's or license holder's position in response to the notice,
  on or before the 15th day after the date the notice is delivered
  personally or mailed to the applicant or license holder; and
               (5)  a statement explaining the person's right to an
  administrative hearing to determine whether the denial,
  suspension, revocation, or fine is warranted.
         (b)  The notice required under Subsection (a) must be made by
  personal delivery or by mail to the person's mailing address as it
  appears in the commission's records.
         (c)  To obtain an administrative hearing on a denial,
  suspension, revocation, or fine under this section, a person must
  submit a written request for a hearing to the commission not later
  than the 20th day after the date notice is delivered personally or
  mailed to the person, as applicable.
         (d)  If the commission receives a timely request under
  Subsection (c), the commission shall provide the person with an
  opportunity for a hearing as soon as practicable. If the commission
  does not receive a timely request under Subsection (c), the
  commission may impose the fine, deny the application, or suspend or
  revoke the license or sustain the denial, suspension, or revocation
  without a hearing.
         (e)  Except as provided by Subsection (g) or otherwise
  provided by this subsection, the hearing must be held not earlier
  than the 11th day after the date the written request is submitted to
  the commission. A hearing may be held before the 11th day after the
  date the written request is submitted to the commission if the
  hearing requestor and the commission agree to a hearing at an
  earlier date.
         (f)  The commission may provide that a revocation or
  suspension takes effect on receipt of notice under Subsection (a)
  if the commission finds that the action is necessary to prevent or
  remedy a threat to public health, safety, or welfare. The
  commission by rule shall establish a nonexclusive list of
  violations that present a threat to the public health, safety, or
  welfare.
         (g)  A hearing on a suspension or revocation that takes
  effect on receipt of notice must be held not earlier than the ninth
  day after the date the written request is submitted to the
  commission, unless the commission and the hearing requestor agree
  to an earlier date, and not later than the 14th day after the date
  the commission receives the request for a hearing under this
  section, unless the commission and the hearing requestor agree to a
  later date. Except as otherwise provided by this subsection, the
  revocation or suspension continues in effect until the hearing is
  completed. If the hearing is continued, the revocation or
  suspension remains in effect during the continuance at the request
  of the hearing requestor or on a finding of good cause by the
  commission or administrative law judge.
         (h)  To prevail in an administrative hearing under this
  section, the hearing requestor must demonstrate by clear and
  convincing evidence that the denial, suspension, revocation, or
  imposition of a fine was unwarranted or otherwise unlawful. The
  post-deprivation hearing may be conducted by the commission or
  referred to the State Office of Administrative Hearings.
         (i)  The administrative record created by the hearing
  conducted by the State Office of Administrative Hearings shall be
  provided to the commission for review and determination.
         (j)  If an administrative law judge of the State Office of
  Administrative Hearings conducts a hearing under this section and
  the proposal for decision supports the commission's position, the
  administrative law judge shall include in the proposal a finding of
  the costs, fees, expenses, and reasonable and necessary attorney's
  fees this state incurred in bringing the proceeding.
         (k)  The commission may adopt the findings for costs, fees,
  and expenses and make the finding a part of the final order entered
  in the proceeding. Proceeds collected from a finding made under
  this section shall be paid to the commission.
         Sec. 2202.357.  JUDICIAL REVIEW OF DENIAL, SUSPENSION,
  REVOCATION, OR FINE IMPOSITION. (a) A person aggrieved by a final
  decision of the commission to deny, suspend, or revoke a license or
  to impose any fine may obtain judicial review before a district
  court in Travis County.  The sovereign immunity of the state from
  suit and from liability is waived for the limited purpose of
  allowing a person to obtain judicial review as provided in this
  section.
         (b)  The judicial review must be instituted by serving on the
  commission and filing a petition not later than the 20th day after
  the effective date of the final decision and must identify the order
  appealed from and the grounds or reason why the petitioner contends
  the decision of the commission should be reversed or modified.
         (c)  The review must be conducted by the court sitting
  without jury and must not be a trial de novo but is confined to the
  record on review. The reviewing court may only affirm the decision,
  remand the case for further proceedings, or reverse the decision if
  the substantial rights of the petitioner have been violated.
         (d)  If any court of competent jurisdiction, on judicial
  review limited to the administrative record before the commission
  and subject to the substantial evidence standard, concludes that:
               (1)  the denial of the issuance of the license was
  unwarranted or otherwise unlawful, the sole remedy available is
  invalidation of the commission's final decision and remand to the
  commission for reconsideration of the application; or
               (2)  the suspension, revocation, or fine was
  unwarranted or otherwise unlawful, the sole remedy available is
  reinstatement of the license or invalidation of the fine, as
  applicable.
         (e)  The commission, this state, or the members, officers,
  employees, and authorized agents of the commission or the state are
  not subject to monetary damages, attorney's fees, or court costs
  resulting from a fine imposed or from the denial, suspension, or
  revocation of a license.
         Sec. 2202.358.  EFFECT OF DENIAL OF LICENSE. (a) If a
  person denied a license has previously been issued a temporary
  license, the temporary license expires immediately on the issuance
  of the denial.
         (b)  Except as otherwise authorized by the commission, a
  person denied a license may not reapply for any license before the
  second anniversary of the date of the denial.
         Sec. 2202.359.  AGREEMENT TO WAIVE ENFORCEABILITY. A
  license holder by virtue of accepting the license agrees that the
  privilege of holding a license under this chapter is conditioned on
  the license holder's agreement to Sections 2202.355, 2202.356, and
  2202.357, and the license holder waives any right to challenge or
  otherwise appeal the enforceability of those sections.
         Sec. 2202.360.  LIMITED WAIVER OF SOVEREIGN IMMUNITY; NO
  LIABILITY OF STATE FOR ENFORCEMENT. (a) Except as expressly
  provided by the Texas Constitution, this state does not waive its
  sovereign immunity by negotiating gaming agreements with Indian
  tribes or other persons for the operation of casino gaming, sports
  wagering, or gambling games under this subtitle. An actor or agent
  for this state may not waive this state's sovereign immunity absent
  an express legislative grant of that authority. The only waiver of
  sovereign immunity relative to gaming operations is provided by
  this section.
         (b)  With regard to gaming operations on Indian lands, this
  state consents to the jurisdiction of the District Court of the
  United States with jurisdiction in the county where the Indian
  lands are located, or if the federal court lacks jurisdiction, to
  the jurisdiction of a district court in Travis County, solely for
  the purpose of resolving disputes arising from a gaming agreement
  authorized under this chapter or Chapter 2203 for declaratory or
  injunctive relief or contract damages of $100,000 or more or from
  the failure of the state to enter into a gaming agreement as
  required by Section 2203.001. Any disputes relating to damages or
  other awards valued at less than $100,000 shall be arbitrated under
  the rules of the American Arbitration Association, provided,
  however, that application of the rules may not be construed as a
  waiver of sovereign immunity.
         (c)  All financial obligations of the commission are payable
  solely out of the income, revenues, and receipts of the commission
  and are subject to statutory restrictions and appropriations.
         (d)  This state and the commission are not liable if
  performance by the commission is compromised or terminated by acts
  or omissions of the legislature or the state or federal judiciary.
         (e)  This state and the commission are not liable for acts or
  omissions related to the enforcement of this subtitle.
  SUBCHAPTER I. PENALTIES AND OFFENSES
         Sec. 2202.401.  FAILURE TO PAY FEE OR TAX. (a) License fees
  and other fees required by this chapter must be paid to the
  commission on or before the dates provided by law for each fee.
         (b)  A person failing to timely pay a fee or tax when due
  shall pay in addition a penalty of not less than $50 or 25 percent of
  the amount due, whichever is greater. The penalty may not exceed
  $1,000 if the fee or tax is less than 10 days late and may not exceed
  $5,000 under any circumstances. The commission shall collect the
  penalty in the same manner as other charges, license fees, and fines
  are collected under this chapter.
         Sec. 2202.402.  WILFUL FAILURE TO REPORT, PAY, OR ACCOUNT
  FOR FEE OR TAX. (a) A person commits an offense if the person
  wilfully:
               (1)  fails to report, pay, or truthfully account for a
  fee or tax imposed under this chapter; or
               (2)  attempts in any manner to evade or defeat a fee or
  tax imposed under this chapter.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 2202.403.  CASINO GAMING AND SPORTS WAGERING FRAUD.
  (a) A person commits an offense if the person knowingly:
               (1)  in connection with casino gaming or sports
  wagering:
                     (A)  alters or misrepresents the outcome of a game
  or other event on which wagers have been made after the outcome is
  made sure but before it is revealed to the players;
                     (B)  places, increases, or decreases a bet or
  determines the course of play after acquiring knowledge, not
  available to all players, of the outcome of the game or an event
  that affects the outcome of the game or that is the subject of the
  bet or aids anyone in acquiring such knowledge for the purpose of
  placing, increasing, or decreasing a bet or determining the course
  of play contingent on that event or outcome;
                     (C)  places or increases a bet after acquiring
  knowledge of the outcome of the game or other event that is the
  subject of the bet, including past posting and pressing bets; or
                     (D)  reduces the amount wagered or cancels the bet
  after acquiring knowledge of the outcome of the game or other event
  that is the subject of the bet, including pinching bets;
               (2)  claims, collects, or takes or attempts to claim,
  collect, or take money or anything of value in or from a gambling
  game, with the intent to defraud, without having made a wager
  contingent on the gambling game;
               (3)  claims, collects, or takes an amount greater than
  the amount won from a gambling game;
               (4)  entices or induces another to go to a place where a
  gambling game is being conducted or operated in violation of this
  subtitle, with the intent that the other person play or participate
  in that gambling game; or
               (5)  manipulates, with the intent to cheat, a component
  of a gaming device in a manner contrary to the designed and normal
  operational purpose for the component, including varying the pull
  of the handle of a slot machine, with knowledge that the
  manipulation affects the outcome of the game or with knowledge of an
  event that affects the outcome of the game.
         (b)  An offense under this section is a felony of the third
  degree.
         Sec. 2202.404.  USE OF PROHIBITED DEVICES. (a) A person
  commits an offense if the person, at a casino, uses or possesses
  with the intent to use a device, other than those customarily used
  in the conduct of gaming, to assist in:
               (1)  projecting the outcome of the game;
               (2)  keeping track of the cards played; or
               (3)  analyzing the probability of the occurrence of an
  event relating to the game.
         (b)  An offense under this section is a felony of the third
  degree.
         Sec. 2202.405.  USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN,
  CHIP, OR COIN. (a) A person commits an offense if the person
  knowingly uses counterfeit tokens, chips, or coins in a gambling
  game.
         (b)  A person commits an offense if the person, in playing
  any gambling game designed to receive, be played with, or be
  operated by lawful tender of the United States, tokens or chips
  approved by the executive director, or other instrumentality
  approved by the commission for use in the gambling game knowingly
  uses a token, chip, or coin or other instrumentality other than
  tokens, chips, coins, or other instrumentality approved by the
  commission and designed for the gambling game.
         (c)  A person, other than an authorized employee of a license
  holder acting in furtherance of the person's employment within an
  establishment, commits an offense if the person knowingly has on
  the person's body or in the person's possession on or off the
  premises of a casino a device intended to be used to violate the
  provisions of this chapter.
         (d)  A person, other than an authorized employee of a license
  holder acting in furtherance of the person's employment within a
  casino, commits an offense if the person knowingly has on the
  person's body or in the person's possession on or off the premises
  of a casino a key or device known to have been designed for the
  purpose of and suitable for opening, entering, or affecting the
  operation of a gambling game, a drop box, or an electronic or
  mechanical device connected to the game or box or for removing money
  or other contents from the game or box.
         (e)  A person commits an offense if the person, with the
  intent to manufacture slugs for unauthorized use in gaming devices
  located at a casino, knowingly has on the person's body or in the
  person's possession paraphernalia for manufacturing slugs. In this
  subsection, "paraphernalia for manufacturing slugs" means the
  equipment, products, and materials that are intended for use or
  designed for use in manufacturing, producing, fabricating,
  preparing, testing, analyzing, packaging, storing, or concealing a
  counterfeit facsimile of the chips or tokens approved by the
  executive director or a lawful coin of the United States, the use of
  which is an offense under Subsection (b). The term includes:
               (1)  lead or lead alloys;
               (2)  molds, forms, or similar equipment capable of
  producing a likeness of a gaming token or United States coin;
               (3)  melting pots or other receptacles;
               (4)  torches; and
               (5)  tongs, trimming tools, or other similar equipment.
         (f)  Possession of more than one of the devices, equipment,
  products, or materials described in this section permits a
  rebuttable inference that the possessor intended to use them to
  cheat. In this subsection, "cheat" has the meaning assigned by
  Section 2202.406.
         (g)  An offense under this section is a felony of the third
  degree.
         Sec. 2202.406.  CHEATING. (a) In this section, "cheat"
  means to alter the elements of chance, method of selection, or
  criteria that determine the result of a game or the amount or
  frequency of payment in a game.
         (b)  A person commits an offense if the person knowingly
  cheats at any gambling game.
         (c)  An offense under this section is a state jail felony.
         Sec. 2202.407.  POSSESSION OF UNLAWFUL GAMING DEVICE. (a) A
  person commits an offense if the person possesses any slot machine
  or other gaming device that the person knows has been manufactured,
  sold, or distributed in violation of this chapter.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 2202.408.  UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION
  OF GAMING EQUIPMENT. (a) In this section, "cheat" has the meaning
  assigned by Section 2202.406.
         (b)  A person commits an offense if the person manufactures,
  sells, or distributes a gaming device or associated equipment with
  the intent that the device or equipment be used to violate this
  chapter.
         (c)  A person commits an offense if the person marks, alters,
  or otherwise modifies any associated equipment or gaming device in
  a manner that:
               (1)  affects the result of a wager by determining a win
  or loss; or
               (2)  alters the normal criteria of random selection
  that affect the operation of a game or determine the outcome of a
  game.
         (d)  A person commits an offense if the person instructs
  another person in cheating or in the use of a device for cheating at
  any gambling game authorized to be conducted at a casino, with the
  knowledge or intent that the information or use may be employed to
  violate this chapter.
         (e)  An offense under this section is a felony of the third
  degree.
         Sec. 2202.409.  UNLAWFUL REPORTING. (a) A person commits an
  offense if the person, in a license application, in a book or record
  required to be maintained by this chapter or a rule adopted under
  this chapter, or in a report required to be submitted by this
  chapter or a rule adopted under this chapter:
               (1)  makes a statement or entry that the person knows to
  be false or misleading; or
               (2)  knowingly fails to maintain or make an entry the
  person knows is required to be maintained or made.
         (b)  A person commits an offense if the person knowingly
  refuses to produce for inspection by the executive director a book,
  record, or document required to be maintained or made by this
  chapter or a rule adopted under this chapter.
         (c)  An offense under this section is a Class A misdemeanor.
         Sec. 2202.410.  OTHER UNLAWFUL VIOLATIONS. (a) A person
  commits an offense if the person knowingly violates, attempts to
  violate, or conspires to violate a provision of this chapter
  specifying a prohibited act in a manner that is not otherwise
  specified as an offense under this subchapter.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 2202.411.  UNAUTHORIZED OPERATION, USE, OR POSSESSION
  OF GAMING DEVICE. (a) A person commits an offense if the person
  operates, uses, or possesses a gaming device. An offense under this
  subsection is a felony of the third degree.
         (b)  It is an exception to the application of Subsection (a)
  that: 
               (1)  the operation, use, or possession of the gaming
  device is expressly authorized by this chapter or other law,
  including the transport of a gaming device to or from a casino as
  provided by this chapter; 
               (2)  a manufacturer license holder is storing a gaming
  device as authorized by the commission for a period not to exceed
  180 consecutive days or a longer period approved by the commission;
  or
               (3)  the gaming devices are possessed by the commission
  for study and evaluation.
         (c)  This section does not prohibit the operation, use, or
  possession of equipment, machines, technological aids, or other
  devices allowed in connection with the play of bingo under Chapter
  2001.
         Sec. 2202.412.  SALE OF GAMBLING GAME TO OR PURCHASE OF
  GAMBLING GAME BY PERSON YOUNGER THAN 21 YEARS OF AGE. (a) A person
  licensed under this chapter or an employee of the person commits an
  offense if the person intentionally or knowingly allows a person
  younger than 21 years of age to play a gambling game or engage in
  sports wagering.
         (b)  An individual who is younger than 21 years of age
  commits an offense if the individual:
               (1)  plays a gambling game;
               (2)  engages in sports wagering; or
               (3)  falsely represents the individual to be 21 years
  of age or older by displaying evidence of age that is false or
  fraudulent or misrepresents in any way the individual's age in
  order to play a gambling game or engage in sports wagering.
         (c)  An offense under Subsection (a) is a Class C
  misdemeanor.
         (d)  An offense under Subsection (b) is a misdemeanor
  punishable by a fine not to exceed $250.
         (e)  It is a defense to prosecution under Subsection (b) that
  the individual younger than 21 years of age is participating in an
  inspection or investigation on behalf of the commission or other
  appropriate governmental entity regarding compliance with this
  section.
         Sec. 2202.413.  PLAY OF GAMBLING GAME WITH PUBLIC ASSISTANCE
  FUNDS. (a) A person commits an offense if the person intentionally
  or knowingly plays a gambling game with public assistance funds
  issued to the person under:
               (1)  Chapter 31, Human Resources Code; or
               (2)  Chapter 33, Human Resources Code, including funds
  issued on electronic benefit transfer cards administered under that
  chapter.
         (b)  An offense under this section is a Class C misdemeanor.
         Sec. 2202.414.  EFFECT ON OTHER LAWS. A person who is
  subject to prosecution under an offense under this subchapter and
  an offense under Chapter 47, Penal Code, may be prosecuted under
  either or both laws.
  SUBCHAPTER J. PROBLEM GAMBLING AND ADDICTION
         Sec. 2202.451.  PROBLEM GAMBLING AND ADDICTION GRANT FUND.
  (a) The problem gambling and addiction grant fund is an account in
  the general revenue fund.
         (b)  Money credited to the fund may be used only for awarding
  grants under this subchapter. The fund shall be administered in
  accordance with this subchapter.
         (c)  An expenditure from the problem gambling and addiction
  grant fund shall be made in accordance with the General
  Appropriations Act.
         (d)  Grants from money in the fund may be used only to:
               (1)  provide treatment for problem gambling, gambling
  addiction, alcoholism, drug abuse, and other addictive behaviors;
  and
               (2)  provide funding for research related to the impact
  of gambling on state residents.
         Sec. 2202.452.  GRANT PROGRAM. (a) From funds appropriated
  for the purpose, the commission shall administer a grant program to
  provide assistance for the direct treatment of persons diagnosed as
  suffering from pathological gambling and other addictive behaviors
  and to provide funding for research regarding the impact of
  gambling on residents of this state.
         (b)  Research grants awarded under this section may include
  grants for determining the effectiveness of education and
  prevention efforts on the prevalence of pathological gambling in
  this state.
         (c)  A grant may be made only after open solicitation of
  proposals and evaluation of proposals against criteria established
  by commission rule.
         (d)  Public and private entities are eligible to apply for
  and receive grants under this section.
         (e)  A grant made in accordance with this section shall be
  made from funds appropriated to the commission from the problem
  gambling and addiction grant fund and funds provided to the
  commission in accordance with Section 2202.453.
         Sec. 2202.453.  GIFTS AND DONATIONS. The commission may
  solicit and accept grants, gifts, contributions, or bequests made
  for the purpose of funding grants under this subchapter and expend
  the money for a purpose described by Section 2202.452 for which the
  money was received.
         Sec. 2202.454.  RULES. (a) The commission shall administer
  this subchapter and adopt rules establishing criteria for
  qualification to receive grants and other matters considered
  necessary by the commission for the administration of this
  subchapter.
         (b)  The rules adopted by the commission must require that
  each recipient of a grant report at least annually to the commission
  the grantee's measurable achievement of specific outcome goals.
  CHAPTER 2203. TRIBAL GAMING AGREEMENTS
         Sec. 2203.001.  DUTY OF GOVERNOR. The governor shall
  execute, on behalf of this state, with a federally recognized
  Indian tribe with Indian lands in this state a gaming agreement
  consistent with the provisions of 25 U.S.C. Section 2710(d) and
  containing the terms set forth in Section 2203.002 not later than
  the 180th day after the date the governor receives a request from
  the tribe, accompanied by or in the form of a duly enacted
  resolution of the tribe's governing body, to enter into the gaming
  agreement.
         Sec. 2203.002.  MODEL TRIBAL GAMING AGREEMENT. (a) A gaming
  agreement executed under Section 2203.001 must be in the form and
  contain the provisions as follows:
  GAMING AGREEMENT GOVERNING GAMING OPERATIONS Between the
  (Name of Tribe) and the STATE OF TEXAS
         This agreement is made and entered into by and between the
  (Name of Tribe), a federally recognized Indian Tribe ("Tribe"), and
  the State of Texas ("State"), with respect to gaming on the Tribe's
  Indian lands (as defined by Chapter 2201, Texas Occupations Code).
         This agreement governs gambling on Indian lands held in trust
  by the United States on January 1, 1998, for the Tribe.
         Pursuant to express provisions of the Ysleta del Sur Pueblo
  and Alabama and Coushatta Indian Tribes of Texas Restoration Act
  (Pub. L. No. 100-89) addressing jurisdiction, the Tribe may engage
  in any gaming activities on Indian lands that another person may be
  authorized to engage in within Texas under Subtitle E, Title 13,
  Texas Occupations Code.
         The Tribe shall regulate the gaming activities authorized
  under this agreement on the Tribe's Indian lands.
         The Tribe shall adopt rules and procedures substantially
  similar to the requirements of Subtitle E, Title 13, Texas
  Occupations Code, except that any regulatory oversight established
  under that subtitle for gaming conducted under a license shall be
  exercised by the Tribe for gaming conducted under this agreement.
  The Tribe may adopt the rules and procedures by reference to any
  provisions of Subtitle E, Title 13, Texas Occupations Code.
         (b)  A gaming agreement under Subsection (a) between this
  state and a federally recognized Indian tribe that is not subject to
  the Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of
  Texas Restoration Act (Pub. L. No. 100-89) may not include the
  provision related to that Act.
         Sec. 2203.003.  NEGOTIATION FOR DIFFERENT TRIBAL GAMING
  AGREEMENT TERMS. (a) This chapter does not limit the ability of a
  federally recognized Indian tribe to request that a gaming
  agreement be negotiated with this state on terms that are different
  from those set forth in the gaming agreement under Section
  2203.002, or the ability of this state to engage in negotiations and
  to reach agreement under any applicable federal law.
         (b)  In offering to enter into a gaming agreement with Indian
  tribes in this state under Section 2203.002, and excluding
  assessments, authorized under the Indian Gaming Regulatory Act
  (Pub. L. No. 100-497), by this state of the amounts necessary to
  defray state costs of regulating activities as provided under the
  gaming agreement, nothing in this chapter may be construed to mean
  that:
               (1)  this state is imposing any tax, fee, charge, or
  other assessment on an Indian tribe or on any other person or entity
  authorized by an Indian tribe as a condition to engaging in a Class
  III activity as defined in the Indian Gaming Regulatory Act (Pub. L.
  No. 100-497); or
               (2)  this state is refusing to enter into gaming
  agreement negotiations based on the lack of authority of this state
  or a political subdivision of this state to impose the tax, fee,
  charge, or other assessment.
         (c)  If any federally recognized Indian tribe with
  jurisdiction over Indian lands in this state requests that the
  governor enter into negotiations for a gaming agreement under
  federal law applicable to the Indian tribe, including the Indian
  Gaming Regulatory Act (Pub. L. No. 100-497), on terms different
  from those prescribed in the gaming agreement set forth in Section
  2203.002, the governor shall enter into those negotiations under
  the federal law applicable to the tribe and without preconditions
  and is authorized to reach agreement and execute the agreement on
  behalf of this state.
         Sec. 2203.004.  IMPLEMENTATION OF GAMING AGREEMENT. The
  governor shall execute any documents necessary to implement a
  gaming agreement authorized under this chapter.
         Sec. 2203.005.  INCORPORATION INTO STATE LAW. The model
  gaming agreement set out in Section 2203.002 is state law, and the
  operation of gaming authorized under the agreement is expressly
  authorized as a matter of state law for any Indian tribe entering
  into the gaming agreement in accordance with this chapter.
         Sec. 2203.006.  REGULATORY MONEY RECEIVED UNDER GAMING
  AGREEMENT. All money received by the commission under a gaming
  agreement for regulatory costs incurred relative to tribal gaming
  operations may be used only to defray expenses of the commission
  incurred in the oversight, compliance with, and enforcement of
  gaming operations conducted pursuant to a gaming agreement.
         Sec. 2203.007.  INJUNCTION; CIVIL PENALTY. (a) If the
  commission, the appropriate governing body for an Indian tribe, or
  the attorney general has reason to believe that this chapter has
  been or is about to be violated, the attorney general may petition a
  court for appropriate injunctive relief to restrain the violation.
  Filing of the petition does not waive applicable sovereign
  immunity.
         (b)  Venue for an action by this state seeking injunctive
  relief is in a district court in Travis County.
         (c)  If the court finds that this chapter has been knowingly
  violated, the court shall order all proceeds from any illegal
  casino gaming or sports wagering to be forfeited to the appropriate
  governing body as a civil penalty.
         (d)  The remedies provided by this section are not exclusive.
  The commission may suspend or revoke a license, impose an
  administrative penalty, or seek injunctive or civil penalties or
  both, depending on the severity of the violation.
         SECTION 2.  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, officers, and members of the reserve
  officer corps 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 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)  officers commissioned under Chapter 23,
  Transportation Code;
               (12)  municipal park and recreational patrolmen and
  security officers;
               (13)  security officers and investigators commissioned
  as peace officers by the comptroller;
               (14)  officers commissioned by a water control and
  improvement district under Section 49.216, Water Code;
               (15)  officers commissioned by a board of trustees
  under Chapter 54, Transportation Code;
               (16)  investigators commissioned by the Texas Medical
  Board;
               (17)  officers commissioned by:
                     (A)  the board of managers of the Dallas County
  Hospital District, the Tarrant County Hospital District, the Bexar
  County Hospital District, or the El Paso County Hospital District
  under Section 281.057, Health and Safety Code;
                     (B)  the board of directors of the Ector County
  Hospital District under Section 1024.117, Special District Local
  Laws Code;
                     (C)  the board of directors of the Midland County
  Hospital District of Midland County, Texas, under Section 1061.121,
  Special District Local Laws Code; and
                     (D)  the board of hospital managers of the Lubbock
  County Hospital District of Lubbock County, Texas, under Section
  1053.113, Special District Local Laws Code;
               (18)  county park rangers commissioned under
  Subchapter E, Chapter 351, Local Government Code;
               (19)  investigators employed by the Texas Racing
  Commission;
               (20)  officers commissioned under Chapter 554,
  Occupations Code;
               (21)  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)  investigators commissioned by the attorney
  general under Section 402.009, Government Code;
               (23)  security officers and investigators commissioned
  as peace officers under Chapter 466, Government Code;
               (24)  officers appointed by an appellate court under
  Subchapter F, Chapter 53, Government Code;
               (25)  officers commissioned by the state fire marshal
  under Chapter 417, Government Code;
               (26)  an investigator commissioned by the commissioner
  of insurance under Section 701.104, Insurance Code;
               (27)  apprehension specialists and inspectors general
  commissioned by the Texas Juvenile Justice Department as officers
  under Sections 242.102 and 243.052, Human Resources Code;
               (28)  officers appointed by the inspector general of
  the Texas Department of Criminal Justice under Section 493.019,
  Government Code;
               (29)  investigators commissioned by the Texas
  Commission on Law Enforcement under Section 1701.160, Occupations
  Code;
               (30)  commission investigators commissioned by the
  Texas Private Security Board under Section 1702.061, Occupations
  Code;
               (31)  the fire marshal and any officers, inspectors, or
  investigators commissioned by an emergency services district under
  Chapter 775, Health and Safety Code;
               (32)  officers commissioned by the State Board of
  Dental Examiners under Section 254.013, Occupations Code, subject
  to the limitations imposed by that section;
               (33)  investigators commissioned by the Texas Juvenile
  Justice Department as officers under Section 221.011, Human
  Resources Code; [and]
               (34)  the fire marshal and any related officers,
  inspectors, or investigators commissioned by a county under
  Subchapter B, Chapter 352, Local Government Code; and
               (35)  investigators, security officers, and
  enforcement officers commissioned by the Texas Gaming Commission
  under Chapter 2201, Occupations Code.
         SECTION 3.  Subchapter F, Chapter 411, Government Code, is
  amended by adding Section 411.1085 to read as follows:
         Sec. 411.1085.  ACCESS TO CRIMINAL HISTORY RECORD
  INFORMATION: TEXAS GAMING COMMISSION. (a) The Texas Gaming
  Commission is entitled to obtain from the department criminal
  history record information maintained by the department that
  relates to a person who, under Subtitle E, Title 13, Occupations
  Code, is:
               (1)  a casino employee or an applicant for an
  occupational license;
               (2)  a person required to hold a license or be named in
  a license application under that subtitle;
               (3)  a person who manufactures or distributes casino
  equipment or supplies or a representative of a person who
  manufactures or distributes casino equipment or supplies offered to
  the casino;
               (4)  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;
               (5)  a person who proposes to enter into or who has a
  contract with the commission to supply goods or services to the
  commission;
               (6)  if a person described in Subdivisions (3) through
  (5) is not an individual, each individual who:
                     (A)  is an officer or director of the person;
                     (B)  holds more than five percent of the stock in
  the person;
                     (C)  holds an equitable interest greater than five
  percent in the person;
                     (D)  shares or will share in the profits, other
  than stock dividends, of the person;
                     (E)  participates in managing the affairs of the
  person; or
                     (F)  is an employee of the person who:
                           (i)  enters or will enter a casino in this
  state to perform a business function; or
                           (ii)  is or will be in close proximity to
  money from casino gaming or sports wagering;
               (7)  an employee or prospective employee, including the
  executive director or a prospective executive director, of the
  commission; or
               (8)  a person described under Subdivisions (1)-(7)
  whose license is renewed under that subtitle.
         (b)  Criminal history record information obtained by the
  Texas Gaming Commission under Subsection (a) may not be released or
  disclosed to any person except on court order or as provided by
  Subsection (c).
         (c)  The Texas Gaming Commission is not prohibited from
  disclosing to the person who is the subject of the criminal history
  record information the dates and places of arrests, offenses, and
  dispositions contained in the criminal history record information.
         SECTION 4.  Section 2028.2041, Occupations Code, is amended
  to read as follows:
         Sec. 2028.2041.  ALLOCATION OF CERTAIN FUNDS. (a) In each
  state fiscal biennium, the comptroller shall deposit the amounts
  allocated under Section 151.801(c-3), Tax Code, into the escrow
  account established under Section 2028.204(b), until the
  comptroller determines the amount deposited into the account in
  that fiscal biennium, excluding amounts deposited to the account
  under Section 2202.252, equals the greater of:
               (1)  the amount appropriated to the commission for the
  purposes of Section 2028.204 for that fiscal biennium; or
               (2)  $50 million.
         (b)  Once the comptroller determines the greater of the
  amount described by Subsection (a)(1) or (2) has been deposited
  during a state fiscal biennium into the escrow account established
  under Section 2028.204(b), excluding amounts deposited to the
  account under Section 2202.252, for the remainder of that fiscal
  biennium the comptroller shall deposit the amounts allocated under
  Section 151.801(c-3), Tax Code, into the general revenue fund.
         (c)  The balance of the escrow account established under
  Section 2028.204(b) shall not exceed $50 million, excluding amounts
  deposited to the account under Section 2202.252.
         SECTION 5.  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)  consisted entirely of participation in the state
  lottery authorized by the State Lottery Act (Chapter 466,
  Government Code);
               (5)  was permitted under Subtitle A-1, Title 13,
  Occupations Code (Texas Racing Act); [or]
               (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;
  or
               (7)  consisted entirely of participation in casino
  gaming or sports wagering authorized under an appropriate license
  issued under Subtitle E, Title 13, Occupations Code.
         SECTION 6.  Section 47.03, Penal Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  It is a defense to prosecution under this section that
  the actor reasonably believed that the conduct was permitted under
  Subtitle E, Title 13, Occupations Code.
         SECTION 7.  Section 47.04, Penal Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  It is a defense to prosecution under this section that
  the actor reasonably believed that the conduct was permitted under
  Subtitle E, Title 13, Occupations Code.
         SECTION 8.  Section 47.05(b), Penal Code, is amended to read
  as follows:
         (b)  It is an exception to the application of Subsection (a)
  that the information communicated is intended for use in placing a
  lawful wager under Subtitle E, Title 13, Occupations Code, or
  Chapter 2027, Occupations Code, and is not communicated in
  violation of Section 2033.013, Occupations Code.
         SECTION 9.  Section 47.06(f), Penal Code, is amended to read
  as follows:
         (f)  It is a defense to prosecution under Subsection (a) or
  (c) that the person owned, manufactured, transferred, or possessed
  the gambling device, equipment, or paraphernalia for the sole
  purpose of shipping it:
               (1)  to a person authorized under an appropriate
  license issued under Subtitle E, Title 13, Occupations Code; or
               (2)  to another jurisdiction where the possession or
  use of the device, equipment, or paraphernalia was legal.
         SECTION 10.  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;
                     (C)  Chapter 2004, Occupations Code;
                     (D)  Subtitle A-1, Title 13, Occupations Code
  (Texas Racing Act); [or]
                     (E)  Chapter 280, Finance Code; or
                     (F)  Subtitle E, Title 13, Occupations Code;
               (2)  consisted entirely of participation in the state
  lottery authorized by Chapter 466, Government Code; or
               (3)  was a necessary incident to the operation of the
  state lottery and was directly or indirectly authorized by:
                     (A)  Chapter 466, Government Code;
                     (B)  the lottery division of the Texas Lottery
  Commission;
                     (C)  the Texas Lottery Commission; or
                     (D)  the director of the lottery division of the
  Texas Lottery Commission.
         SECTION 11.  (a) Funds in the Texas casino gaming fund may
  be appropriated only to the Texas Gaming Commission for the
  operation of the commission and the administration of Subtitle E,
  Title 13, Occupations Code, as added by this Act, for the biennium
  ending August 31, 2025.
         (b)  Not later than February 1, 2024, the initial members of
  the Texas Gaming Commission shall be appointed in accordance with
  Chapter 2201, Occupations Code, as added by this Act. In making the
  initial appointments, the governor shall designate one member to a
  term expiring February 1, 2025, two members to terms expiring
  February 1, 2027, and two members to terms expiring February 1,
  2029.
         SECTION 12.  (a) The Texas Gaming Commission Legislative
  Oversight Committee is created to facilitate the creation of the
  Texas Gaming Commission and the assignment of powers, duties,
  functions, programs, and activities of the commission as provided
  by this Act.
         (b)  The committee is composed of seven members as follows:
               (1)  two members of the senate, appointed by the
  lieutenant governor not later than December 1, 2023;
               (2)  two members of the house of representatives,
  appointed by the speaker of the house of representatives not later
  than December 1, 2023; and
               (3)  three members of the public, appointed by the
  governor not later than December 1, 2023.
         (c)  Once the members of the Texas Gaming Commission have
  been appointed and have selected an executive director, the
  executive director of the Texas Gaming Commission shall serve as an
  ex officio member of the committee.
         (d)  A member of the committee serves at the pleasure of the
  appointing official.
         (e)  The lieutenant governor and the speaker of the house of
  representatives shall alternate designating a presiding officer
  from among their respective appointments. The speaker of the house
  of representatives shall make the first designation.
         (f)  A member of the committee may not receive compensation
  for serving on the committee but is entitled to reimbursement for
  travel expenses incurred by the member while conducting the
  business of the committee as provided by the General Appropriations
  Act.
         (g)  The committee shall:
               (1)  facilitate the assignment of powers, duties,
  functions, programs, and activities of the Texas Gaming Commission
  as provided by this Act;
               (2)  adopt an initial training program to meet the
  requirements of Section 2201.058, Occupations Code, as added by
  this Act, to train the initial appointees of the Texas Gaming
  Commission;
               (3)  with assistance from the Texas Gaming Commission,
  advise the executive director and members of the Texas Gaming
  Commission concerning the powers, duties, functions, programs, and
  activities established under this Act and the funds and obligations
  that are related to the powers, duties, functions, programs, or
  activities;
               (4)  meet at the call of the presiding officer;
               (5)  research, take public testimony, and issue reports
  on other appropriate issues or specific issues requested by the
  lieutenant governor, speaker of the house of representatives, or
  governor; and
               (6)  review specific recommendations for legislation
  proposed by the Texas Gaming Commission or the other agencies.
         (h)  The committee may request reports and other information
  from the Texas Gaming Commission, other state agencies, and the
  attorney general relating to casino gaming and sports wagering in
  this state and other appropriate issues.
         (i)  The committee shall use existing staff of the senate,
  the house of representatives, and the Texas Legislative Council to
  assist the committee in performing its duties under this section.
         (j)  Chapter 551, Government Code, applies to the committee.
         (k)  The committee shall report to the governor, lieutenant
  governor, and speaker of the house of representatives not later
  than November 15 of each even-numbered year. The report must
  include:
               (1)  identification of significant issues within
  casino gaming and sports wagering regulation, with recommendations
  for action;
               (2)  an analysis of the effectiveness and efficiency of
  casino gaming and sports wagering regulation, with recommendations
  for any necessary research; and
               (3)  recommendations for legislative action.
         SECTION 13.  (a) The assignment of powers, duties,
  functions, programs, and activities of the Texas Gaming Commission
  must be accomplished in accordance with a schedule included in a
  work plan developed by the executive director and members of the
  Texas Gaming Commission and submitted to the governor and the
  Legislative Budget Board not later than September 1, 2024. The
  executive director and commission members shall provide to the
  governor and the Legislative Budget Board work plan status reports
  and updates on at least a quarterly basis following submission of
  the initial work plan. The work plan must be made available to the
  public.
         (b)  Not later than June 1, 2024, the Texas Gaming Commission
  shall hold a public hearing and accept public comment regarding the
  work plan required to be developed by the executive director and
  members of the Texas Gaming Commission under this section.
         (c)  In developing the work plan, the executive director and
  members of the Texas Gaming Commission shall hold public hearings
  in various geographic areas in this state before submitting the
  plan to the governor and the Legislative Budget Board as required by
  this section.
         (d)  The Texas Gaming Commission shall implement the powers,
  duties, functions, programs, and activities assigned to the
  commission under this Act in accordance with a work plan designed by
  the commission to ensure that the implementation of gaming
  regulation under this Act is accomplished in a careful and
  deliberative manner.
         (e)  A work plan designed by the commission under this
  section must include the following phases:
               (1)  a planning phase, during which the commission will
  focus on and stabilize the organization of the agency's powers,
  duties, functions, programs, and activities, and which must
  include:
                     (A)  initiation of recommendations made by the
  Texas Gaming Commission Legislative Oversight Committee;
                     (B)  creation of interagency and intra-agency
  steering committees;
                     (C)  development of global visions, goals, and
  organizational strategies; and
                     (D)  development of communications and risk
  management plans;
               (2)  an integration phase, during which the commission
  will identify opportunities and problems and design customized
  solutions for those problems, and which must include:
                     (A)  identification of key issues related to costs
  or legal requirements for other commission activities;
                     (B)  planning for daily operations; and
                     (C)  validation of fiscal and program synergies;
               (3)  an optimization phase, during which the commission
  will complete and expand on the initial transitions, and which must
  include:
                     (A)  optimization of initial implementation
  initiatives;
                     (B)  use of enterprise teaming operations;
                     (C)  building infrastructures to support and
  facilitate changes in gaming regulation and oversight; and
                     (D)  identification and use of beneficial assets
  management and facilities approaches; and
               (4)  a transformation phase, during which the
  commission will continue implementing initial and additional
  changes in gaming regulation and oversight, and which must include
  implementation of changes in agency management activities.
         SECTION 14.  As soon as practicable after the effective date
  of this Act, the Texas Gaming Commission shall adopt the rules
  necessary to implement casino gaming and sports wagering in
  accordance with Chapter 2202, Occupations Code, as added by this
  Act, and in anticipation of receiving license applications not
  later than September 1, 2025.
         SECTION 15.  This Act takes effect on the date on which the
  constitutional amendment proposed by H.J.R. No. 155, 88th
  Legislature, Regular Session, 2023, takes effect. If that
  amendment is not approved by the voters, this Act has no effect.
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