Bill Text: TX HB4237 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the authorization, licensing, and regulation of casino gaming in this state and the creation, powers, and duties of the Texas Gaming Commission; imposing and authorizing administrative and civil penalties; imposing a tax; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses; making an appropriation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-29 - Referred to State Affairs [HB4237 Detail]
Download: Texas-2021-HB4237-Introduced.html
By: Kuempel | H.B. No. 4237 |
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relating to the authorization, licensing, and regulation of casino | ||
gaming in this state and the creation, powers, and duties of the | ||
Texas Gaming Commission; imposing and authorizing administrative | ||
and civil penalties; imposing a tax; imposing and authorizing fees; | ||
requiring occupational licenses; creating criminal offenses; | ||
making an appropriation. | ||
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 REGULATED BY TEXAS GAMING COMMISSION | ||
CHAPTER 2201. GENERAL PROVISIONS; TEXAS GAMING COMMISSION | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 2201.001. DEFINITIONS. In this subtitle: | ||
(1) "Affiliate" means a person who, directly or | ||
indirectly through one or more intermediaries, controls, is | ||
controlled by, or is under common control with another person. A | ||
person is considered to control a company if the person | ||
beneficially owns more than a five percent equity interest in the | ||
company under the beneficial ownership rules adopted by the | ||
commission. | ||
(2) "Applicant" means a person who has applied for a | ||
casino owner's license, a casino operator's license, an | ||
occupational license, a manufacturer's license, a casino service | ||
license, or a qualification to hold an equity interest in a casino | ||
owner license holder who has applied for the approval of any act or | ||
transaction for which approval is required or allowed under this | ||
subtitle. | ||
(3) "Associated equipment" means any equipment, | ||
including a mechanical, electromechanical, or electronic | ||
contrivance, component, or machine, used in connection with gaming | ||
or with any game that would not otherwise be classified as a gaming | ||
device. The term includes dice, playing cards, links connecting | ||
progressive slot machines, equipment affecting the proper | ||
reporting of gross gaming revenue, computerized systems or software | ||
for monitoring slot machines, and devices for weighing or counting | ||
money. | ||
(4) "Casino" means a facility at which gambling games | ||
are conducted for profit, as authorized by Chapters 2202 and 2203. | ||
(5) "Casino gaming," "casino game," or "gambling | ||
game": | ||
(A) means any game or similar activity that | ||
involves the making of a bet, as defined by Section 47.01, Penal | ||
Code, for consideration and includes a banking or percentage game | ||
played with cards, dice, or a mechanical, electromechanical, or | ||
electronic device or machine for money, property, checks, credit, | ||
or a representative of value, including table games such as | ||
roulette, keno, twenty-one, blackjack, craps, poker, chuck-a-luck | ||
(dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, slot | ||
machine, any other electronic game of chance, and any other table | ||
game or device approved by the commission; and | ||
(B) does not include: | ||
(i) bingo authorized under Chapter 2001; | ||
(ii) charitable raffles authorized under | ||
Chapter 2002; | ||
(iii) the state lottery conducted under | ||
Chapter 466, Government Code; or | ||
(iv) the making of a bet that: | ||
(a) occurs in a private place, as | ||
defined by Section 47.01, Penal Code; | ||
(b) in connection with, no person | ||
receives any economic benefit other than personal winnings; and | ||
(c) except for the advantage of skill | ||
or luck, involves risks of losing and chances of winning that are | ||
the same for all participants. | ||
(6) "Casino operator" means a person other than the | ||
casino owner license holder who contractually agrees to provide | ||
operational and managerial services for the operation of a casino | ||
on behalf of the casino owner license holder in return for receiving | ||
a payment based wholly or partly on profits or receipts from the | ||
casino. | ||
(7) "Casino operator's license" or "operator's | ||
license" means a license issued under Section 2202.101. | ||
(8) "Casino owner's license" or "owner's license" | ||
means a license issued under Section 2202.052. | ||
(9) "Casino service" means the provision of goods or | ||
services, including security service and gaming schools, to a | ||
person holding a casino owner's or operator's license under this | ||
subtitle, other than a service requiring a manufacturer's license. | ||
(10) "Casino service license" means a license issued | ||
under Section 2202.152. | ||
(11) "Commission" means the Texas Gaming Commission. | ||
(12) "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. | ||
(13) "Destination resort" means a mixed-use | ||
development consisting of a combination of various tourism | ||
amenities and facilities, including hotels, restaurants, meeting | ||
facilities, attractions, entertainment facilities, shopping | ||
centers, and casino gaming facilities. | ||
(14) "Director" means a member of the board of | ||
directors of a corporation and a person performing similar | ||
functions with respect to a company other than a corporation. | ||
(15) "Equity interest" means a proprietary interest, | ||
right, or claim allowing the holder to vote with respect to 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. | ||
(16) "Executive director" means the executive | ||
director of the commission. | ||
(17) "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 gaming activities | ||
authorized under Chapter 2202 or 2203 or applicable federal law. | ||
(18) "Gaming-related business" means any business | ||
engaged in the service or support of gaming activities regulated | ||
under this subtitle or commission rule. | ||
(19) "Gaming device" means a mechanical, | ||
electromechanical, or electronic contrivance, component, or | ||
machine used in connection with casino gaming or a gambling game | ||
that affects the result of a wager by determining win or loss. The | ||
term includes a system for processing information that can alter | ||
the normal criteria of random selection, affect the operation of a | ||
game, or determine the outcome of a game. | ||
(20) "Gaming employee": | ||
(A) means an individual directly involved in the | ||
operation or conduct of casino gaming 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 gaming activities; | ||
(iii) accounting or internal auditing | ||
personnel directly involved in recordkeeping or the examination of | ||
records generated from gaming activities; and | ||
(iv) a junketeer or other independent agent | ||
whose compensation is based on 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, | ||
complimentary, or maintenance services. | ||
(21) "Gaming position" means a designated place for a | ||
person to engage in casino gaming at a table game or slot machine. | ||
(22) "Gross gaming revenue": | ||
(A) means the total amount of the following, less | ||
the sum of all money paid as losses to patrons, the amounts paid to | ||
purchase from independent financial institutions annuities to fund | ||
losses paid to patrons, and the items made deductible as losses | ||
under Section 2202.303: | ||
(i) money paid to an owner license holder | ||
from players of gambling games; | ||
(ii) money received by an owner license | ||
holder in payment for credit extended by the owner license holder to | ||
a patron for the purposes of gaming; and | ||
(iii) compensation received by an owner | ||
license holder for conducting any gambling 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 gaming devices; | ||
(iii) cash taken in fraudulent acts | ||
perpetrated against an owner's license holder for which the holder | ||
is not reimbursed; or | ||
(iv) cash received as entry fees for | ||
contests or tournaments in which the patrons compete for prizes. | ||
(23) "Hearing examiner" means a person authorized by | ||
the commission to conduct hearings. | ||
(24) "Indian lands" means land that was held in trust | ||
by the United States on January 1, 1998, for the benefit of the | ||
Indian tribe pursuant to the Ysleta del Sur Pueblo and Alabama and | ||
Coushatta Indian Tribes of Texas Restoration Act (Pub. L. | ||
No. 100-89) or on which gaming is permitted under the Indian Gaming | ||
Regulatory Act (18 U.S.C. Section 1166 et seq. and 25 U.S.C. Section | ||
2701 et seq.). | ||
(25) "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); | ||
(B) an insurance company as defined by Section | ||
2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section 80a-2); | ||
(C) an investment company registered under | ||
Section 8, Investment Company Act of 1940 (15 U.S.C. Section | ||
80a-8); | ||
(D) an investment adviser registered under | ||
Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section | ||
80b-3); | ||
(E) a collective trust fund as defined by Section | ||
3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section 80a-3); | ||
(F) an employee benefit plan or pension fund that | ||
is subject to the Employee Retirement Income Security Act of 1974 | ||
(29 U.S.C. Section 1001 et seq.), excluding an employee benefit | ||
plan or pension fund sponsored by a publicly traded corporation | ||
registered with the commission; | ||
(G) a state or federal government pension plan; | ||
(H) a group composed entirely of persons | ||
specified in Paragraphs (A)-(G); or | ||
(I) any other person the commission determines | ||
for reasons consistent with the policies expressed in Section | ||
2202.001. | ||
(26) "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. | ||
(27) "License holder" means a person who holds a | ||
license issued by the commission. | ||
(28) "Limited casino gaming" means casino gaming in a | ||
licensed facility such as a Class II or Class III casino that is | ||
limited to not more than 1250 gaming positions, of which not more | ||
than 25 percent may be at table games. | ||
(29) "Manufacturer's license" means a license issued | ||
under Section 2202.151. | ||
(30) "Metropolitan statistical area" means a | ||
metropolitan statistical area designated by the United States | ||
Office of Management and Budget. | ||
(31) "Credit instrument" means a writing that | ||
evidences a gaming debt owed to a casino owner license holder at the | ||
time the debt is created, and includes any writing taken in | ||
consolidation, redemption, or payment of a previous credit | ||
instrument. | ||
(32) "Occupational license" means a license issued | ||
under Section 2202.102. | ||
(33) "Pari-mutuel wagering" has the meaning assigned | ||
by Section 2021.003. | ||
(34) "Player" means a person who contributes any part | ||
of the consideration to play a gambling game. Consideration does | ||
not include a separate fee payable in order to wager. | ||
(35) "Principal manager" means a person who, as | ||
determined under the rules of the commission, holds or exercises | ||
managerial, supervisory, or policy-making authority over the | ||
management or operation of a gaming activity or casino service that | ||
in the judgment of the commission warrants the occupational | ||
licensing as a principal manager for the protection of the public | ||
interest. The term includes a key executive of a license holder that | ||
is a company. | ||
(36) "Slot machine" means a mechanical, electrical, or | ||
other device or machine that, on insertion of a coin, token, or | ||
similar object or on payment of consideration, is available to play | ||
or operate, the play or operation of which, wholly or partly by the | ||
element of chance, may 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. The term does not include any electronic, electromechanical, | ||
or mechanical contrivance designed, made, and adapted solely for | ||
bona fide amusement purposes if the contrivance 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. | ||
(37) "Sports event" means: | ||
(A) a football, basketball, baseball, or similar | ||
game; | ||
(B) a boxing or martial arts match; | ||
(C) a horse or dog race on which pari-mutuel | ||
wagering is authorized by law; or | ||
(D) any other event designated by the commission. | ||
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, 2031. | ||
(b) On the date the commission is abolished under Subsection | ||
(a), the following statutes are repealed: | ||
(1) this chapter; | ||
(2) Chapter 2202; and | ||
(3) Chapter 2203. | ||
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, other law, 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 2203; | ||
(2) a tax, fee, or other assessment on consideration | ||
paid to play a gambling game authorized by this subtitle; or | ||
(3) a tax or fee on attendance at or admission to a | ||
casino 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 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. To be | ||
eligible for appointment to the commission, a person: | ||
(1) must be a citizen of the United States; | ||
(2) must have resided in this state for the two years | ||
preceding the date of the person's appointment; | ||
(3) must submit a financial statement that contains | ||
the information required by Chapter 572, Government Code; | ||
(4) may not own a financial or other interest in an | ||
entity engaged in the conduct of casino gaming or the provision of | ||
casino services, or in a 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 owns such a financial or other interest or | ||
security; | ||
(5) may not be an applicant for or holder of a license | ||
under a law administered by the commission or hold an equity | ||
interest in an owner license holder requiring qualification under | ||
Section 2202.060; | ||
(6) may not be a member of the governing body of a | ||
political subdivision of this state; and | ||
(7) may not hold an elective office or be an officer or | ||
official of a political party. | ||
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) Members of the | ||
commission serve staggered six-year terms, with the term or terms | ||
of one or two members expiring February 1 of each odd-numbered year. | ||
(b) The governor shall fill a vacancy in a position on the | ||
commission for the remainder of the unexpired term. | ||
Sec. 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 less than six times each year. | ||
(b) The commission may meet at other times at the call of the | ||
presiding officer or as provided by commission rule. | ||
(c) The commission shall keep an official record of all | ||
commission meetings and proceedings. | ||
Sec. 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 commission. | ||
(b) The validity of an action of the commission is not | ||
affected by the fact that it is taken when a ground for removal of a | ||
commission member exists. | ||
(c) If the executive director or any other commission member | ||
has knowledge that a potential ground for removal of a commission | ||
member exists, the executive director shall notify the presiding | ||
officer of the commission of the potential ground 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 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 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 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. (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; and | ||
(2) reimbursement for actual and necessary expenses | ||
incurred in performing those duties. | ||
(b) Reimbursement for expenses under this section is | ||
subject to any applicable limitation in the General Appropriations | ||
Act. | ||
Sec. 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, except the | ||
requirement for prior residency in this state. | ||
(f) The executive director is entitled to an annual salary | ||
and other compensation specified by the commission. | ||
(g) The executive director or the parent, spouse, or child | ||
of the executive director may not, before the second anniversary of | ||
the date the director's service to the commission ends, acquire a | ||
direct or indirect interest in or be employed by an entity licensed | ||
or registered by the commission in connection with the conduct of | ||
gaming 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 | ||
determined to be necessary by the commission. | ||
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 | ||
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 gambling games, | ||
other casino gaming activities, 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 | ||
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 and | ||
certificate 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 casino gaming 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 for | ||
three years after the date of the surrender or revocation of the | ||
license 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 gambling games, gaming devices, slot | ||
machines, 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 gambling games, gaming devices, slot machines, 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 gambling games or to manufacture gaming | ||
equipment. The use of an independent testing laboratory for | ||
purposes related to the conduct of casino gaming 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 application that an | ||
applicant for a license under this subtitle must follow and | ||
complete before consideration of an application by the commission; | ||
(2) the information to be furnished by an applicant or | ||
license holder under Chapter 2202 concerning antecedents, habits, | ||
character, associates, criminal history record information, | ||
business activities, and financial affairs; | ||
(3) the criteria to be used in the award, revocation, | ||
and suspension of licenses under Chapter 2202; | ||
(4) the information to be furnished by a license | ||
holder under Chapter 2202 relating to the holder's employees; | ||
(5) the manner and procedure of hearings conducted by | ||
the commission or a hearing examiner of the commission; | ||
(6) the payment of fees or costs an applicant or | ||
license holder under Chapter 2202 must pay; | ||
(7) the procedures for the issuance of temporary | ||
licenses and temporary qualification to hold equity interests in a | ||
casino owner license holder under Chapter 2202; | ||
(8) the manner and method of collection and payment of | ||
fees and the issuance of licenses; | ||
(9) the definition of "unsuitable method of | ||
operation"; | ||
(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 gambling games, slot | ||
machines, and gaming devices; | ||
(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 in which money awarded to players of | ||
gambling games, compensation from gambling games and slot machines, | ||
and gross gaming revenue must be computed and reported under | ||
Chapter 2202; | ||
(15) requirements for the annual audit of the | ||
financial statements of a license holder; | ||
(16) 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; and | ||
(18) the procedures for exempting or waiving | ||
institutional investors from the licensing requirements for | ||
shareholders of publicly traded corporations. | ||
Sec. 2201.103. AUTHORITY OF EXECUTIVE DIRECTOR. (a) With | ||
commission approval, the executive director may create executive | ||
positions as the 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 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 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 attorney | ||
general; | ||
(5) acquire furnishings, equipment, supplies, | ||
stationery, books, and all other things the executive director | ||
considers necessary or desirable in carrying out the executive | ||
director's functions; and | ||
(6) perform other duties the executive director may | ||
consider necessary to effect the purposes of this subtitle or other | ||
laws related to casino gaming 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 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 or | ||
gambling regulated by the commission to the office of hearing | ||
examiners. | ||
(d) The office of hearing examiners is independent of the | ||
executive director and is under the exclusive control of the | ||
commission. | ||
(e) The office of hearing examiners is under the direction | ||
of a chief hearing examiner appointed by the commission. | ||
(f) The commission may authorize the chief hearing examiner | ||
to delegate to one or more hearing examiners the authority to hold | ||
any hearing called by the chief hearing examiner. | ||
(g) The chief hearing examiner and 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 | ||
ruling of the commission in a contested case is subject to judicial | ||
review under Chapter 2001, Government Code. Judicial review is | ||
under the substantial evidence rule, 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 they consider desirable. | ||
(c) The information made confidential by this subsection | ||
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 or other gambling regulated by the commission; | ||
(2) under Section 2202.352; | ||
(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 or other gambling regulated by the | ||
commission; | ||
(6) the street address and telephone number of a prize | ||
winner unless the prize winner has consented to the release of the | ||
information; | ||
(7) information relating to all system operations of | ||
gambling games, including security related to gambling games, and | ||
commission plans and procedures intended to ensure the integrity | ||
and security of the operation of gambling games and other gambling | ||
regulated by the commission; and | ||
(8) reports and related information filed under | ||
Section 2202.011. | ||
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 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 gambling games played in this | ||
state to promote and ensure integrity, security, honesty, and | ||
fairness in the operation and administration of gaming under this | ||
subtitle. | ||
(b) The executive director may contract with a third party | ||
to perform a function, activity, or service in connection with the | ||
operation of casino gaming under this subtitle, other than | ||
investigative services, as prescribed by the executive director. A | ||
contract relating to the operation of gaming must be consistent | ||
with this subtitle. | ||
(c) The executive director may award a contract for gaming | ||
supplies, equipment, or services, including a contract under | ||
Subsection (b), pending the completion of any investigation and | ||
license 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 gaming 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 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 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 other gaming equipment that is located on premises | ||
for which a person holds a license issued under this subtitle; or | ||
(2) seize a gaming device or other gaming equipment | ||
that is being used or is in the possession of any person in | ||
violation of this subtitle or other laws related to casino gaming 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 gaming security. | ||
Sec. 2201.118. DEMOGRAPHIC STUDIES. (a) The executive | ||
director shall, every two years, employ an independent firm | ||
experienced in demographic analysis to conduct a demographic study | ||
of players of gambling games. The study must include the income, | ||
age, sex, race, education, and frequency of participation of | ||
players of the games. | ||
(b) The executive director shall report the results of the | ||
demographic study to the commission, the governor, and the | ||
legislature not later than January 1 of each odd-numbered year. | ||
Sec. 2201.119. PROHIBITED GAMBLING GAMES. (a) Except as | ||
provided by this subtitle or other law, the executive director or | ||
any other person may not establish or operate a gambling game in | ||
which the winner is chosen on the basis of the outcome of a sports | ||
event. | ||
(b) Except as provided by Chapter 2001 or this subtitle, the | ||
operation of any game using a slot machine or other gambling device | ||
is prohibited. | ||
Sec. 2201.120. DEPARTMENT OF PUBLIC SAFETY RECORDS. (a) | ||
Except as otherwise provided by this subtitle, all files, records, | ||
information, compilations, documents, photographs, reports, | ||
summaries, and reviews of information and related matters | ||
collected, retained, or compiled by the Department of Public Safety | ||
in the discharge of its duties under this subtitle are confidential | ||
and are not subject to public disclosure. Each of those items is | ||
subject to discovery by a person who is the subject of the item. | ||
(b) An investigation report or other document submitted by | ||
the Department of Public Safety to the commission becomes part of | ||
the investigative files of the commission and is subject to | ||
discovery by a person who is the subject of the investigation report | ||
or other document. | ||
(c) Information that is in a form available to the public is | ||
not privileged or confidential under this section and is subject to | ||
public disclosure. | ||
Sec. 2201.121. CRIMINAL BACKGROUND INVESTIGATION FOR | ||
CASINO GAMING. (a) The commission is entitled to conduct an | ||
investigation of and is entitled to obtain criminal history record | ||
information maintained by the Department of Public Safety, the | ||
Federal Bureau of Investigation Identification Division, or | ||
another law enforcement agency to assist in the criminal background | ||
investigation of any person directly involved with casino gaming | ||
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. 2201.122. PLAYER AGREEMENT TO ABIDE BY RULES AND | ||
INSTRUCTIONS. By participating as a player in a gambling game, a | ||
player agrees to abide by and be bound by the commission's rules and | ||
instructions, including the rules or instructions applicable to the | ||
particular gambling game involved. The player also agrees that the | ||
determination of whether the player is a valid winner is subject to: | ||
(1) the commission's rules, instructions, and claims | ||
procedures, including those developed for the particular gambling | ||
game involved; | ||
(2) any validation tests established by the commission | ||
for the particular gambling game involved; and | ||
(3) the limitations and other provisions prescribed by | ||
this subtitle. | ||
Sec. 2201.123. 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 gaming activities; or | ||
(3) an offense under Title 7 or 11, Penal Code, that | ||
involves property consisting of or including a gaming device or | ||
gambling game prize. | ||
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, and telephone number of | ||
the commission for the purpose of directing complaints to the | ||
commission. The commission may provide for that notice: | ||
(1) on each form, application, or written contract for | ||
services of a person regulated under a law administered by the | ||
commission; | ||
(2) on a sign prominently displayed in the place of | ||
business of each person regulated under a law administered by the | ||
commission; or | ||
(3) in a bill for service provided by a person | ||
regulated under 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 how 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 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 2202.001. PUBLIC POLICY. (a) All casino gaming that | ||
is conducted in this state and that is authorized by law shall be | ||
regulated and licensed under this chapter, unless federal law or | ||
another state law specifically provides otherwise. | ||
(b) The legislature hereby finds, and declares it to be the | ||
public policy of this state, that: | ||
(1) the development of regulated casino gaming at a | ||
limited number of locations in the 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 new revenue to the state for | ||
essential services; | ||
(2) the conduct of regulated casino gaming in a | ||
limited number of destination resorts and smaller casinos will not | ||
harm the people of this state; | ||
(3) the regulation of gaming in this state is | ||
important to ensure that gaming is: | ||
(A) conducted honestly and competitively; and | ||
(B) free from criminal and corruptive elements; | ||
(4) public confidence and trust can be maintained only | ||
by strict regulation of all persons, locations, practices, | ||
associations, and activities related to the conduct of casino | ||
gaming and the casino service industry; | ||
(5) persons owning any direct or indirect material | ||
interest in a casino should be licensed and controlled to protect | ||
the public health, safety, morals, good order, and general welfare | ||
of the people of this state; | ||
(6) certain operators and employees of casinos 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, where | ||
possible, to use the resources, goods, labor, and services of the | ||
people of this state 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 is 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 | ||
gaming devices, this chapter or the commission rule prevails in all | ||
matters related to gaming devices, including 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, Title 13 | ||
(Texas Racing Act). | ||
Sec. 2202.004. AUTHORITY TO IMPLEMENT GAMING. (a) The | ||
commission may implement casino gaming in accordance with this | ||
subtitle. | ||
(b) The commission shall allow the operation of limited | ||
casino gaming pursuant to this subtitle at locations on Indian | ||
lands in accordance with an effective gaming agreement and in | ||
compliance with applicable federal law. | ||
Sec. 2202.005. IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR | ||
INVESTIGATION. Any written or oral statement made in the course of | ||
an official commission proceeding or investigative activities | ||
related to an application for commission licensing under this | ||
chapter, by any member or agent of the commission or any witness | ||
testifying under oath, that is relevant to the purpose of the | ||
proceeding is absolutely privileged and does not impose liability | ||
for defamation or constitute a ground for recovery in any civil | ||
action. | ||
Sec. 2202.006. FINDING OF SUITABILITY. To promote the | ||
integrity and security of casino gaming 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 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 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. ABSOLUTE AUTHORITY OF COMMISSION. To | ||
protect the integrity of casino gaming under this subtitle or the | ||
public health, welfare, or safety, or to prevent financial loss to | ||
this state, the commission has full and absolute power and | ||
authority to: | ||
(1) deny any application or limit, condition, | ||
restrict, revoke, or suspend any license; and | ||
(2) fine any license holder for any cause considered | ||
reasonable by the commission. | ||
Sec. 2202.009. LICENSING AS REVOCABLE PERSONAL PRIVILEGES. | ||
(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 a holder of the privilege does not acquire any vested | ||
right in or under the privilege. | ||
(c) The courts of this state do not have jurisdiction to | ||
review a decision to deny, limit, or condition the license unless | ||
the judicial review is sought on the ground that the denial, | ||
limitation, or condition is based on a suspect classification, such | ||
as race, color, religion, sex, or national origin, in violation of | ||
the Equal Protection Clause of the Fourteenth Amendment to the | ||
United States Constitution. The state court must affirm the | ||
commission's action unless the violation is proven by clear and | ||
convincing evidence. If a state court has jurisdiction over a claim | ||
under this section, then this state's sovereign immunity is waived | ||
only to the extent expressly provided by Section 2202.360. | ||
(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 void the license unless approved in | ||
advance by the commission: | ||
(1) the transfer, sale, or other disposition of an | ||
interest in the holder that results in a change in the identity of | ||
an equity interest holder; or | ||
(2) the sale of the assets of the holder, other than | ||
assets bought and sold in the ordinary course of business, or any | ||
interest in the assets, to any person not already determined to have | ||
met the applicable qualifications of this chapter. | ||
Sec. 2202.010. PRIZE RULES, PAYMENT, AND REDEMPTION. (a) | ||
The payment of prizes is the sole and exclusive responsibility of | ||
the casino owner or casino 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 | ||
owner or casino 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. 2202.011. REPORT ON LITIGATION. (a) A casino owner or | ||
casino operator license holder shall report to the commission any | ||
litigation relating to casino operations, including a criminal | ||
proceeding, a proceeding involving an issue related to pari-mutuel | ||
activities that impact casino gaming 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 owner or operator | ||
acquires knowledge of the litigation. | ||
Sec. 2202.012. COMMISSION APPROVAL REQUIRED FOR PROCEDURES | ||
AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a) The commission's | ||
approval is required for all internal procedures and administrative | ||
and accounting controls of a casino owner or casino 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 at casinos. | ||
Sec. 2202.013. 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 owner | ||
or casino operator license holder shall submit to the commission an | ||
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 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 casino 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 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 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 based on a revocation or | ||
suspension of any casino gaming 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 or with | ||
other regulated gaming or pari-mutuel wagering in any jurisdiction. | ||
Sec. 2202.014. 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. 2202.015. 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 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 Class I casino owner or casino operator license holder | ||
may not be self-insured with regard to gaming operations under this | ||
section in excess of $50,000,000 per occurrence. | ||
(e) A Class II or Class III casino owner or operator license | ||
holder may not be self-insured with regard to gaming operations | ||
under this section. | ||
(f) The commission by rule shall establish minimum | ||
insurance coverage requirements for license holders under this | ||
chapter, including: | ||
(1) insurance for performance; | ||
(2) crime or fidelity insurance against losses caused | ||
by fraudulent or dishonest acts by an officer or employee of the | ||
license holder; | ||
(3) commercial general liability insurance; | ||
(4) property insurance; | ||
(5) business auto liability insurance; and | ||
(6) crime insurance for the location. | ||
Sec. 2202.016. LIABILITY FOR CREDIT AWARDED OR DENIED; | ||
PLAYER DISPUTE. 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 OWNER'S LICENSE | ||
Sec. 2202.051. CASINO OWNER'S LICENSE. (a) Casino gaming | ||
may be lawfully conducted in a casino operating under a casino | ||
owner's license. | ||
(b) A person may not own an equity interest in a casino at | ||
which casino gaming is conducted in this state unless the casino is | ||
operating under a casino owner's license issued for the conduct of | ||
casino gaming at that casino. | ||
(c) A separate casino owner's license must be obtained for | ||
each casino conducting casino gaming. | ||
Sec. 2202.052. ALLOCATION AND ISSUANCE OF CASINO OWNER'S | ||
LICENSES; TEMPORARY LICENSE. (a) The commission shall award | ||
casino owner's licenses to applicants for destination resorts and | ||
casinos as authorized by Section 47a(e), Article III, Texas | ||
Constitution. | ||
(b) The commission shall: | ||
(1) issue not more than four Class I casino owner's | ||
licenses to conduct casino gaming at destination resorts located in | ||
metropolitan statistical areas of this state with a population | ||
estimated at two million or more on July 1, 2019, provided that only | ||
one Class I licensed destination resort is located within one | ||
metropolitan statistical area; | ||
(2) issue not more than three Class II casino owner's | ||
licenses to conduct limited casino gaming at an existing location | ||
to applicants who, on January 1, 2021, held and who continue to hold | ||
an active license to conduct pari-mutuel wagering on horse races at | ||
a racetrack located within a metropolitan statistical area with an | ||
estimated population of two million or more on July 1, 2019, and who | ||
comply with the requirements of this subtitle and commission rule; | ||
and | ||
(3) issue not more than two Class III casino owner's | ||
licenses to conduct limited casino gaming to applicants who, on | ||
January 1, 2021, held and who continue to hold an active license to | ||
conduct pari-mutuel wagering on greyhound races at a racetrack | ||
located within a metropolitan statistical area with an estimated | ||
population of less than two million on July 1, 2019, and who comply | ||
with the requirements of this subtitle and commission rule. | ||
(c) The commission by rule shall ensure license applicants | ||
who are issued a Class II casino owner's license under Subsection | ||
(b)(2) continue to maintain significant live horse racing at the | ||
applicant's racetrack and maintain the applicant's primary purpose | ||
as a horse racetrack and that limited casino gaming is used as a | ||
complementary amenity to promote and support horse racing in this | ||
state. | ||
(d) The commission shall allow license applicants who are | ||
issued a Class III casino owner's license under Subsection (b)(3) | ||
to offer limited casino gaming at any location within the same | ||
metropolitan statistical area as the holder's licensed greyhound | ||
racetrack. | ||
(e) The commission shall establish additional restrictions | ||
on Class II and Class III casino owner license holders, including | ||
limits on total square footage, casino gaming square footage, and | ||
overnight accommodations for the purposes of adequately | ||
distinguishing between types of gaming activities the license | ||
holder is authorized to conduct, as provided by Subsection (b), and | ||
to limit the scope of casino gaming in certain metropolitan | ||
statistical areas in this state. | ||
(f) To ensure that a requisite level of economic development | ||
benefiting the people of this state accompanies each destination | ||
resort issued a Class I casino owner's license, the commission | ||
shall require an applicant, as a condition to receiving and holding | ||
the license, to commit to building a destination resort project | ||
with total land and development investments of at least: | ||
(1) $2 billion for a destination resort located in a | ||
metropolitan statistical area with a population of five million or | ||
more; or | ||
(2) $1 billion for a destination resort located in a | ||
metropolitan statistical area with a population of two million or | ||
more but less than five million. | ||
(g) In meeting the requirements of Subsection (f), total | ||
land and development investments proposed as part of an application | ||
to conduct casino gaming at a destination resort may not include | ||
public money or facilities developed or built with public | ||
assistance or tax incentives of any kind. | ||
(h) Land and development investments included as part of a | ||
destination resort in an application for a Class I casino owner's | ||
license that have been made within five years before the | ||
application is filed may be included in the calculation of new total | ||
land and development investments required under Subsection (f). | ||
(i) The commission shall issue a Class II or Class III | ||
casino owner's license to conduct limited casino gaming to | ||
applicants based on evidence demonstrating that the issuance of the | ||
license to the applicant would have a significant positive economic | ||
impact in the area of this state in which the casino would be | ||
operated, and on the state as a whole. | ||
(j) In addition to the casino owner's licenses issued under | ||
this section, the commission may issue a Class II or Class III | ||
casino owner's license to a federally recognized Indian tribe that | ||
had land in this state held in trust by the United States on January | ||
1, 1998. A license issued under this subsection authorizes the | ||
tribe to operate not more than one casino on tribal lands held in | ||
trust by the United States on January 1, 1998. | ||
(k) A casino owner's license issued by the commission under | ||
Subsection (j) 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). | ||
(l) Except for simulcast common pool wagering conducted in a | ||
casino and except as otherwise authorized by the commission, the | ||
casino operations and financial records of a casino owner license | ||
holder under Subsection (b) who also holds a pari-mutuel license | ||
under Subtitle A-1, Title 13 (Texas Racing Act) shall be kept | ||
separate from the racing operations and records of the license | ||
holder. | ||
(m) An Indian tribe to which Subsection (j) applies may, in | ||
lieu of a casino owner's license, operate a casino on Indian land | ||
described by Subsection (j) under an agreement with this state. The | ||
agreement is governed by this chapter and Chapter 2203. | ||
(n) A casino owner's license may not be issued for a | ||
location in an area in which casino gaming is prohibited under a | ||
gaming agreement between an Indian tribe and this state. | ||
(o) For purposes of determining the location of a casino, a | ||
casino is considered to be located in the county in which the main | ||
public entrance to the casino is located. | ||
(p) The commission may issue a temporary license for one | ||
year or less to authorize the casino owner license holder to | ||
temporarily conduct casino gaming in accordance with commission | ||
rules at a location within 20 miles of the site for which the casino | ||
license was issued. | ||
Sec. 2202.053. APPLICATION. (a) A person seeking a casino | ||
owner's license shall submit an application in accordance with | ||
commission rules 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 resort or | ||
casino project: | ||
(1) proof that casino gaming was approved by the | ||
constitutional amendment proposed by the 87th Legislature, Regular | ||
Session, 2021, creating the Texas Gaming Commission and authorizing | ||
and regulating casino gaming at destination resorts; | ||
(2) evidence that the applicant possesses, or has the | ||
right to acquire, sufficient real property on which the proposed | ||
destination resort or casino will be located that accommodates the | ||
applicant's construction and operation of the destination resort or | ||
casino project substantially as proposed; | ||
(3) evidence that the applicant possesses, or | ||
reasonably expects to obtain, all state, county, and municipal | ||
permits and approvals necessary for the construction and operation | ||
of the proposed destination resort or casino within the time | ||
prescribed in this chapter; and | ||
(4) evidence that the applicant is prepared to begin | ||
construction of its proposed destination resort or casino within 18 | ||
months of receiving a casino owner's license and to proceed with the | ||
construction of the destination resort or casino without | ||
unnecessary delay. | ||
(c) An applicant may apply for more than one casino owner's | ||
license relating to more than one destination resort or casino but | ||
must submit a separate application for each destination resort or | ||
casino for which a casino owner's license is sought. | ||
(d) An application for a casino owner's license must be | ||
accompanied by the nonrefundable application fee in the amount | ||
provided by Section 2202.202. | ||
Sec. 2202.054. MANDATORY REQUIREMENTS. (a) A company is | ||
eligible to apply for and hold a casino owner's license only if: | ||
(1) the company is incorporated or organized and in | ||
good standing in this state or organized under the laws of another | ||
state of the United States and qualified to conduct business in this | ||
state; and | ||
(2) the company complies with all laws of this state. | ||
(b) To be eligible to receive a casino owner's license to | ||
own a casino, an applicant must submit an application to the | ||
commission by the date established by the commission. | ||
(c) An application may not be considered filed for purposes | ||
of this chapter if the application does not include the information | ||
prescribed by Section 2202.053(b) or is not accompanied by the | ||
required application fee. | ||
Sec. 2202.055. CASINO OWNER'S LICENSE ISSUANCE | ||
CONSIDERATIONS. (a) The commission shall determine the initial and | ||
continuing suitability of each applicant for or holder of a casino | ||
owner's license based on suitability criteria the commission | ||
prescribes to ensure that all casino owner license holders are of | ||
good character, honesty, integrity, and financial stability, that a | ||
casino owner license holder has sufficient business probity, | ||
competence, and experience in casino gaming, and that a casino | ||
owner 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 gaming industry. | ||
(c) The burden of proving suitability to receive or hold a | ||
casino owner's license is on the applicant or license holder. | ||
(d) In considering the initial and continuing suitability | ||
of an applicant for or holder of a casino owner's license, the | ||
commission may consider the suitability of: | ||
(1) each person holding an equity interest in the | ||
applicant or license holder; | ||
(2) each person holding, or proposed to receive, a | ||
casino operator's license, occupational license, or manufacturer's | ||
license employed by or conducting business with the applicant or | ||
holder; and | ||
(3) each affiliate of the applicant or license holder. | ||
(e) An applicant for or holder of a casino owner's license | ||
may not receive or hold a casino owner's license if the person 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) is subject to any material equity interest of an | ||
applicant or license holder described by Subdivision (1) or (2); | ||
(6) holds a manufacturer's license or casino service | ||
license; | ||
(7) is a commission member; or | ||
(8) is a member of the judiciary or an elected official | ||
of this state. | ||
(f) The commission may adopt rules providing for a person's | ||
reciprocal determination of suitability to hold a casino owner's | ||
license based on a determination of suitability to own and operate a | ||
casino in any other jurisdiction the commission considers | ||
reasonable in light of the purpose of this chapter. | ||
Sec. 2202.056. ECONOMIC IMPACT ANALYSIS. (a) In | ||
determining to whom to grant a Class I casino owner's license, the | ||
commission shall consider the following factors: | ||
(1) the relevant financial investment to be made by | ||
each competing applicant for their destination resort project; | ||
(2) whether an applicant will seek state and local tax | ||
breaks or incentives for their destination resort project; | ||
(3) the relative prospective revenue to be collected | ||
by this state from casino gaming and nongaming businesses | ||
associated with each applicant's proposed destination resort | ||
project; | ||
(4) the relative number of residents of this state who | ||
would be employed in each applicant's proposed destination resort | ||
project and any proposed nongaming businesses and the relative | ||
extent of each applicant's good faith plan to recruit, train, and | ||
promote a workforce that reflects the diverse populations of this | ||
state in all employment classifications; | ||
(5) the relative extent to which an 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; | ||
(6) whether entities operating or individuals | ||
residing in this state are part of the application approval process | ||
or are approved vendors; | ||
(7) the relative extent to which the scope, design, | ||
location, and construction of each applicant's destination resort | ||
and any associated hotel and other nongaming businesses could be | ||
reasonably expected to contribute to the local economy; and | ||
(8) each applicant's experience in conducting licensed | ||
casino gaming operations and the applicant's financial ability to | ||
promptly construct and adequately maintain the destination resort | ||
for which the license is sought, including the experience of | ||
partners of the applicant, of affiliated companies of the applicant | ||
or its partners, of key personnel of the applicant or its partners, | ||
and of operating companies under contract with the applicant. | ||
(b) In determining to whom to grant a Class II or Class III | ||
casino owner's license, the commission shall consider the following | ||
factors: | ||
(1) the relevant financial investment previously made | ||
or to be made by each competing applicant; | ||
(2) whether each applicant will seek state and local | ||
tax breaks or incentives for their casino project; | ||
(3) the relative prospective revenue to be collected | ||
by this state from casino gaming and non-gaming businesses | ||
associated with each applicant's proposed casino project; | ||
(4) the total number of residents of this state who | ||
would be employed by each applicant's proposed casino project and | ||
each applicant's commitment to a workforce that reflects the | ||
diverse populations of this state in all employment | ||
classifications; and | ||
(5) each applicant's experience in conducting licensed | ||
casino gaming operations and the applicant's financial ability to | ||
promptly construct and adequately maintain the proposed casino | ||
project. | ||
Sec. 2202.057. REVIEW OF APPLICATION. (a) The commission | ||
shall issue an order approving or denying an application for a | ||
casino owner's 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 licenses the commission finds necessary to administer | ||
this chapter. | ||
Sec. 2202.058. TRANSFERABILITY. A casino owner's license | ||
is not transferable and applies only to the specific site | ||
identified in the license. | ||
Sec. 2202.059. DENIAL, SUSPENSION, AND REVOCATION. (a) | ||
The commission may deny an application or revoke a casino owner's | ||
license for a reasonable cause. | ||
(b) If the commission determines it has reasonable grounds | ||
to believe that a casino owner license holder may be unsuitable to | ||
continue to hold a casino owner's license, the commission shall | ||
conduct an investigation and hearing under Section 2202.351 and | ||
may, based on its determination, suspend, limit, or revoke the | ||
license. On suspension or revocation of a casino owner's license, | ||
the license holder must immediately cease all casino gaming | ||
activities. | ||
(c) If the holder of a casino owner's license fails to begin | ||
construction of a casino within 18 months after the receipt of the | ||
casino owner's license, or fails to begin casino gaming operations | ||
within three years after the receipt of the license, the license is | ||
forfeited, unless the commission, for good cause, has previously | ||
granted an appropriate extension of time. | ||
(d) The right to receive and hold a casino owner's license | ||
is a revocable privilege, and not a right or property under the | ||
United States Constitution or the Texas Constitution. An applicant | ||
for or holder of a casino owner's license does not have a vested | ||
interest or right in a license issued under this chapter. | ||
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 owner's license shall register and qualify | ||
with the commission under commission rules and shall provide | ||
information the commission finds necessary to determine the | ||
suitability and eligibility of the person to retain the interest. | ||
(b) The following persons are not required to register or | ||
qualify under this section: | ||
(1) a key employee of the casino owner license holder | ||
that is required to apply for an occupational license under Section | ||
2202.102; | ||
(2) an institutional investor that beneficially owns | ||
25 percent or less of the total equity of the casino owner license | ||
holder; | ||
(3) a person that beneficially owns 10 percent or less | ||
of the total equity of the casino owner license holder; and | ||
(4) any other group or class of persons that the | ||
commission by rule exempts from registration or qualification. | ||
(c) A casino owner license holder shall provide to the | ||
commission the name, address, and interest in the casino owner | ||
license holder of each person who is exempt from registration or | ||
qualification under Subsection (b). | ||
(d) A registration filed under this section must be | ||
accompanied by the application fee set out in Section 2202.202. | ||
Sec. 2202.061. TRANSFERABILITY OF INTEREST. (a) Except as | ||
provided by this subsection, a casino owner 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 owner license holder that | ||
is a publicly held company 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 owner license holder may not | ||
transfer any portion of the interest in the license holder to any | ||
person without the commission's determination of the qualification | ||
of the proposed transferee to hold the interest. | ||
(c) A subscriber or proposed transferee of an interest by a | ||
casino owner license holder shall provide the commission with | ||
information the commission considers necessary to determine the | ||
qualification of the person. The commission, not later than 60 days | ||
after the date of the application, shall determine the | ||
qualification of a subscriber or proposed transferee and approve or | ||
deny the issuance or transfer. | ||
Sec. 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 owner's 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, honesty, integrity, and financial stability, | ||
and are otherwise qualified to hold the interest. | ||
(b) The burden of proving qualification to acquire or hold | ||
an equity 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 owner's license | ||
if the person would be unsuitable to receive a casino owner's | ||
license under Section 2202.055(e). | ||
(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 owner's license may be unqualified to retain the person's | ||
interest, the commission shall conduct an investigation and hearing | ||
under Section 2202.351 and may, based on its determination, issue | ||
an unsuitability finding and divestiture order to the holder of the | ||
interest and the issuer of the interest. On receipt of a divestiture | ||
order, the person holding the interest shall tender 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. TERM OF CASINO OWNER'S LICENSE. (a) Each | ||
Class I casino owner's license issued under this subchapter expires | ||
on the 50th anniversary of the date of issuance and may be renewed | ||
for one or more terms of 50 years. | ||
(b) Each Class II and Class III casino owner's license | ||
issued under this subchapter expires on the 25th anniversary of the | ||
date of issuance and may be renewed for one or more terms of 25 | ||
years. | ||
Sec. 2202.064. LOCAL ZONING LAWS. Notwithstanding any | ||
other law, destination resorts at which casino gaming is authorized | ||
under Section 2202.052(b)(1) shall be subject to any applicable | ||
local government zoning and land use regulations in place on | ||
January 1, 2021. To the extent destination resorts could be | ||
classified under multiple regulations or classifications, local | ||
government zoning and land use authorities shall treat and classify | ||
destination resorts under the most permissive classification so as | ||
to ensure the maximum economic benefit to the state in the shortest | ||
possible timeline. | ||
SUBCHAPTER C. CASINO OPERATOR'S LICENSE AND OCCUPATIONAL LICENSE | ||
Sec. 2202.101. CASINO OPERATOR'S LICENSE. (a) Except as | ||
provided by Subsection (b), a person may not provide services as a | ||
casino operator unless the person holds a casino operator's | ||
license. | ||
(b) A casino operator license holder must hold a separate | ||
casino operator's license for each casino that the license holder | ||
operates unless the license holder is also the owner of the casino | ||
and holds a casino owner's license for the premises. | ||
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 owner license holder or casino operator license | ||
holder is not required to obtain an additional occupational license | ||
to provide services as a gaming employee in the casino to which the | ||
license relates. | ||
(c) A casino owner license holder shall designate not fewer | ||
than one occupational license holder as a key employee having | ||
responsibility over all gaming activities. Not fewer than one key | ||
employee must be available at the casino at all times when gaming is | ||
conducted on the owner's premises. | ||
(d) A gaming employee designated by the casino owner license | ||
holder or determined by the commission to be a key employee shall be | ||
issued an occupational license designated as a key employee | ||
occupational license. In determining whether an employee is a key | ||
employee, the commission is not restricted by the title of the job | ||
performed by the employee but may consider the functions and | ||
responsibilities of the employee in making decisions. | ||
(e) A person employed as a gaming employee must obtain an | ||
occupational license designated as a support occupational license. | ||
A person required to hold a support occupational license may not be | ||
a gaming employee of or assist the casino owner license holder or | ||
casino operator license holder until the employee obtains the | ||
support occupational license. A person licensed as a key employee | ||
is not required to obtain a support occupational license. | ||
Sec. 2202.103. APPLICATION. (a) An application for a | ||
casino operator's license or an occupational license shall be made | ||
in compliance with commission rules and must contain information | ||
the commission finds necessary to determine the suitability and | ||
eligibility of the applicant to function as a casino operator or to | ||
be employed or retained as a gaming employee. | ||
(b) An application for a casino operator's license or an | ||
occupational license must be accompanied by the required | ||
application fee. | ||
(c) The commission may issue a temporary casino operator's | ||
license and a temporary occupational license. | ||
Sec. 2202.104. RESIDENCY. A person is eligible to apply for | ||
and hold a casino operator's license or occupational license | ||
without regard to the residency of the applicant. | ||
Sec. 2202.105. DETERMINATION OF SUITABILITY. (a) The | ||
commission shall determine the suitability of an applicant for or | ||
holder of a casino operator's license or occupational license based | ||
on suitability criteria the commission adopts in order to ensure | ||
that a license holder: | ||
(1) is of good character, honesty, and integrity; | ||
(2) has sufficient business probity, competence, and | ||
training or experience in the gaming industry to perform the | ||
function contemplated; and | ||
(3) is otherwise qualified to be licensed. | ||
(b) The burden of proving suitability to receive and hold a | ||
casino operator's license or occupational license is on the | ||
applicant or license holder. | ||
(c) In considering the suitability of a company applying for | ||
or holding a casino operator's license or occupational license to | ||
receive and continue to hold the license, the commission shall | ||
consider the suitability of each principal manager and each holder | ||
of an equity interest of the company to individually receive and | ||
hold an occupational license based on the suitability standards | ||
that apply to the applicants for the license generally. | ||
(d) A person may not be found suitable to receive or hold a | ||
casino operator's license or occupational license if that person | ||
would be found unsuitable to hold a casino owner's license under | ||
Section 2202.055(e), except that an applicant for a casino | ||
operator's license or occupational license who has been convicted | ||
of a felony may be found suitable if the person is found to be | ||
adequately rehabilitated under applicable rehabilitation | ||
requirements adopted by the commission, and the applicant or | ||
license holder is otherwise suitable for licensing. | ||
Sec. 2202.106. DENIAL OR REVOCATION OF LICENSE. (a) The | ||
commission may deny an application for or revoke a casino | ||
operator's license or occupational license for any reasonable | ||
cause. | ||
(b) If the commission determines that it has reasonable | ||
grounds to believe that a license holder may be unsuitable to | ||
continue to hold the license, giving due consideration to the | ||
protection of the health, safety, morals, and general welfare of | ||
this state and to the reputation of the state's gaming industry, the | ||
commission shall conduct an investigation and hearing under | ||
Sections 2202.351 and 2202.356 and may, based on its determination, | ||
suspend, limit, or revoke any license. | ||
(c) On the suspension or revocation of a license, the | ||
license holder shall cease the provision of all services in any | ||
capacity requiring a license under Section 2202.101 or 2202.102. | ||
(d) A holder of an occupational license that has been | ||
revoked or suspended may not: | ||
(1) receive, directly or indirectly, any | ||
compensation, consideration, or payment of any kind relating to the | ||
conduct of casino gaming 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. | ||
(e) The receipt and holding of a license is a privilege and | ||
is not a right or property under the United States Constitution or | ||
the Texas Constitution. An applicant for or holder of a casino | ||
operator's license or occupational license does not have a vested | ||
interest or right in a license issued under this chapter. | ||
SUBCHAPTER D. MANUFACTURER'S AND OTHER SERVICE PROVIDERS' LICENSES | ||
Sec. 2202.151. MANUFACTURER'S LICENSE. (a) A person may | ||
not engage in any segment of the slot machine manufacturing | ||
industry in this state for which a manufacturer's license is | ||
required under this section without obtaining a manufacturer's | ||
license covering that segment of the industry. 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's license is personal to the license | ||
holder and allows the license holder to conduct business with any | ||
destination resort or casino. | ||
Sec. 2202.152. CASINO SERVICE LICENSE. (a) A person may | ||
not engage in any segment of the casino service industry that | ||
requires a license without obtaining a casino service license. | ||
(b) The commission shall adopt rules identifying segments | ||
of the casino service industry directly involved with providing | ||
gaming-related services, equipment, and supplies that the | ||
commission finds appropriate for licensing. | ||
(c) A person is required to obtain a casino service license | ||
if the person: | ||
(1) operates, conducts, or maintains a gaming-related | ||
business in a casino; or | ||
(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 | ||
destination resort or casino. | ||
(f) The holder of a casino owner's license or casino | ||
operator's license is not required to obtain a casino service | ||
license to provide services for which a casino service license | ||
would otherwise be required, if the license holder provides those | ||
services in the course of the license holder's operation or | ||
management of the casino to which the casino owner's license or | ||
casino operator's license relates. | ||
Sec. 2202.153. APPLICATION. (a) A person seeking a | ||
manufacturer's 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's license or casino service license to receive and | ||
continue to hold the license, the commission shall consider the | ||
suitability of each principal manager and each holder of an equity | ||
interest in the company applicant to individually receive and hold | ||
a manufacturer's license or casino service license based on the | ||
suitability standards that apply to the company applicant. A | ||
person may not be found suitable to receive or hold a manufacturer's | ||
license or casino service license if that person would be found | ||
unsuitable to hold a casino owner's license under Section | ||
2202.055(e). | ||
(b) If the commission has reasonable grounds to believe that | ||
a license holder is unsuitable to hold a manufacturer's license or | ||
casino service license, the commission: | ||
(1) shall conduct an investigation and hearing under | ||
Sections 2202.351 and 2202.356; and | ||
(2) may, based on its determination, suspend, limit, | ||
or revoke a license. | ||
(c) On suspension or revocation of a license, the license | ||
holder must cease the performance of manufacturing activity or | ||
casino service requiring a license under this chapter. After the | ||
revocation or suspension of the license, the affected license | ||
holder may not receive, directly or indirectly, compensation, | ||
consideration, or payment of any kind relating to manufacturing | ||
activity or provision of casino services in any capacity requiring | ||
a license under this chapter, other than the payment for goods or | ||
services provided before the suspension or revocation. | ||
(d) A casino owner license holder or a casino operator | ||
license holder who has entered into a lease with a manufacturer's | ||
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 it off, at the sole | ||
option of the casino owner license holder or casino operator | ||
license holder. | ||
(e) The burden of proving suitability to receive and hold a | ||
manufacturer's license or casino service license is on the license | ||
holder. | ||
SUBCHAPTER E. LICENSE RENEWAL AND FEES | ||
Sec. 2202.201. TERMS; RENEWAL. (a) Except as provided by | ||
Section 2202.063, an original or renewal license expires on the | ||
first anniversary of the date it is issued. | ||
(b) The fee for a casino owner's license, casino operator's | ||
license, occupational license, manufacturer's license, or casino | ||
service license is in the amount provided by Section 2202.203 and | ||
must be paid annually. A license holder may renew an unexpired | ||
license by meeting the licensing requirements of the commission and | ||
paying the annual fee. | ||
Sec. 2202.202. APPLICATION FEES. (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 Class I casino owner's license must | ||
pay an application fee of $1,000,000. | ||
(c) An applicant for a Class II or Class III casino owner's | ||
license must pay an application fee of $500,000. | ||
(d) An applicant for a manufacturer's license must pay an | ||
application fee of $300,000. | ||
(e) An applicant for an operator's license must pay an | ||
application fee of $100,000. | ||
(f) An applicant for a casino service license must pay an | ||
application fee of $200. | ||
(g) A person registering and applying to qualify to hold an | ||
equity interest in a license holder must pay an application fee of | ||
$200. | ||
(h) An individual applying for an occupational license must | ||
pay an application fee of $100. | ||
(i) All application fees must be in the form of a money order | ||
or cashier's check and be payable to the Texas Gaming Commission, | ||
except that the commission may provide for the payment of the fees | ||
by electronic funds transfer or similar method. Application fees | ||
are nonrefundable. | ||
(j) Application fees shall be applied toward the cost of | ||
investigating applicants' suitability for licensing or | ||
qualification under this chapter. Any costs of investigation | ||
incurred in excess of the application fee shall be paid by the | ||
applicant. | ||
Sec. 2202.203. LICENSE FEES. (a) A holder of a Class I | ||
casino owner's license must pay an initial license fee of | ||
$50,000,000 and an annual license fee of $1,000,000. The initial | ||
license fee for a casino owner's license must be paid not later than | ||
the 30th day after the date the license is approved by the | ||
commission. | ||
(b) A holder of a Class II or Class III casino owner's | ||
license must pay an initial license fee of $10,000,000 and an annual | ||
license fee of $500,000. | ||
(c) A holder of a manufacturer's license must pay an annual | ||
license fee of $200,000. | ||
(d) A holder of an operator's license must pay an annual | ||
license fee of $100,000. | ||
(e) A holder of a casino service license must pay an annual | ||
license fee of $200. | ||
(f) A holder of an equity interest in any license holder | ||
that is required to qualify with the commission must pay an annual | ||
fee of $200. | ||
(g) A holder of an occupational license must pay an annual | ||
license fee of $100. | ||
SUBCHAPTER F. TEXAS CASINO GAMING FUND; TAXES ON GROSS GAMING | ||
REVENUE | ||
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, investigation fees, and license | ||
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 chapter. | ||
If the money in the fund exceeds the amount necessary for the | ||
operation of the commission and the administration of this chapter, | ||
the legislature may transfer any excess amount to the general | ||
revenue fund. | ||
(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; ALLOCATION OF TAX. (a) A | ||
gaming tax is imposed on each holder of a casino owner's license in | ||
an amount equal to: | ||
(1) 10 percent of the gross gaming revenue of the | ||
casino from all gambling games operated under the license except | ||
slot machines; and | ||
(2) 25 percent of the gross gaming revenue of the | ||
casino from slot machines. | ||
(b) The tax shall be computed and paid on a monthly basis in | ||
accordance with the procedures established by commission rule. | ||
(c) Except as provided by Subsections (d), (e), and (f), the | ||
revenue from the taxes imposed by this section is allocated to the | ||
general revenue fund. | ||
(d) Of the revenue from the tax imposed by Subsection (a): | ||
(1) one-thirtieth of the revenue is allocated to the | ||
municipality in which the casino to which the license relates is | ||
located, and one-thirtieth of the revenue is allocated to the | ||
county in which the casino to which the license relates is located; | ||
or | ||
(2) if the casino is located in an unincorporated | ||
area, one-fifteenth of the revenue is allocated to the county in | ||
which the casino to which the license relates is located. | ||
(e) The comptroller shall transfer the appropriate amount | ||
allocated under Subsection (d) to the appropriate municipalities | ||
and counties not less than monthly in the manner the comptroller | ||
considers appropriate. | ||
(f) Of the revenue from the tax imposed by Subsection (a): | ||
(1) 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; and | ||
(2) $500,000 may be appropriated in each state fiscal | ||
biennium to the Department of Public Safety to be used to provide | ||
grants to prosecuting attorneys for the investigation and | ||
prosecution of offenses related to the possession of gambling | ||
devices. | ||
(g) The taxes imposed by this section are due and payable on | ||
or before the 20th day of the month following the month in which the | ||
taxes are imposed. | ||
(h) If the amount of gaming taxes required to be reported | ||
and paid under this section is later determined to be greater or | ||
less than the amount actually reported and paid by the license | ||
holder, the commission shall: | ||
(1) assess and collect the additional gaming taxes | ||
determined to be due with interest until paid; or | ||
(2) refund any overpayment, with interest, to the | ||
license holder. | ||
(i) Interest required to be refunded under Subsection | ||
(h)(2) 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 gaming taxes. | ||
Sec. 2202.253. DETERMINATION OF GROSS GAMING REVENUE. (a) | ||
In calculating gross gaming revenue, a prize, premium, drawing, | ||
benefit, or ticket that is redeemable for money, merchandise, or | ||
other promotional allowance, except money, 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 gaming revenue as a loss at any game | ||
except a slot machine or a table game with a progressive jackpot. | ||
(b) In calculating gross gaming revenue from slot machines | ||
at a casino, the actual cost to the license holder of any personal | ||
property distributed to a patron as the result of a legitimate wager | ||
may be deducted as a loss, but travel expenses, food, refreshments, | ||
lodging, or services at the license holder's facility may not be | ||
deducted. For the purposes of this subsection, 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. | ||
(c) Cash or the value of noncash prizes awarded to patrons | ||
in a contest or tournament are not losses for purposes of | ||
determining gross gaming revenue under this section. | ||
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) In a case where a refund is granted, interest is allowed | ||
at the rates provided in Section 111.064, Tax Code. | ||
(f) A claim for refund of taxes imposed under this | ||
subchapter that are paid in excess of the amount required to be | ||
reported and paid must be filed not later than two years after the | ||
date of overpayment. | ||
Sec. 2202.255. DETERMINATION OF DEFICIENCY. (a) If a | ||
casino owner license holder fails to make a report of the taxes | ||
imposed under this subchapter as required by this chapter, or if the | ||
executive director is not satisfied with the license holder's | ||
report of the taxes, the executive director may compute and | ||
determine the amount required to be paid based on: | ||
(1) any facts contained in the report; | ||
(2) an audit conducted by the executive director; | ||
(3) an estimate of the amount of taxes due; | ||
(4) any information in the commission's possession or | ||
that may come 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 | ||
owner 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 that 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 owner license holder. | ||
Sec. 2202.256. PETITION FOR REVIEW. (a) A casino owner | ||
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 of service of notice of the | ||
determination. If a petition for redetermination satisfying the | ||
requirements of Subsection (c) is not filed within the 30-day | ||
period, the determination becomes final. | ||
(b) If a petition for redetermination satisfying the | ||
requirements of Subsection (c) is filed within the 30-day period, | ||
the commission shall reconsider the determination and, if the | ||
petitioner requests, shall grant a hearing. | ||
(c) A petition for redetermination must: | ||
(1) specify the contested portions of the | ||
determination of deficiency; | ||
(2) specify the grounds for redetermination; | ||
(3) state whether a hearing is requested; and | ||
(4) be accompanied by payment in full of the | ||
uncontested portion of the determination, including any interest | ||
and penalties. | ||
(d) An order or decision of the commission on a petition for | ||
redetermination is final 10 days after the date of service on the | ||
petitioner. | ||
(e) A petitioner against whom an order or decision of the | ||
commission becomes final may, not later than the 60th day after the | ||
date the decision is final, petition for judicial review in the | ||
manner provided by Chapter 2001, Government Code. The executive | ||
director may not petition for judicial review. | ||
Sec. 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 CASINO 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 gaming industry. | ||
(b) Casinos may operate 24 hours a day, seven days a week. A | ||
license holder may elect other hours of operation. | ||
(c) The commission by rule shall authorize and regulate | ||
wagering at a casino on the outcome of a sports event. Rules adopted | ||
under this subsection must be consistent with any rules adopted by | ||
other state agencies regulating wagering on the outcome of a sports | ||
event. | ||
Sec. 2202.302. USE OF CHIPS OR TOKENS. All gaming 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. 2202.303. REPORTING REQUIREMENTS. (a) A casino owner | ||
license holder shall keep the license holder's books and records in | ||
a manner that clearly shows the total amount of gross gaming | ||
revenue, as applicable, and other revenues received. | ||
(b) The books and records kept by a casino owner license | ||
holder relating to gaming operations are not public records and the | ||
publication and dissemination of the materials by the commission is | ||
prohibited. | ||
(c) A casino owner license holder shall file a report of | ||
each change of the corporate officers and directors with the | ||
commission. The commission shall, not later than the 90th day after | ||
the date of the change, approve or disapprove the change. During | ||
the 90-day period, the officer or director is entitled to exercise | ||
the powers of the office to which the officer or director was | ||
elected or appointed. | ||
(d) A casino owner license holder shall report to the | ||
executive director in writing a change in company employees who | ||
have been designated as key employees. | ||
(e) The commission may require that a company furnish the | ||
commission with a copy of its federal income tax return not later | ||
than the 30th day after the date the return is filed with the | ||
federal government. | ||
Sec. 2202.304. 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 gaming, or to both interests. | ||
(b) In making a determination under this section, the | ||
commission may consider any: | ||
(1) prior conviction of a crime that is a felony in | ||
this state or under the laws of the United States or a crime | ||
involving moral turpitude or a violation of the gaming laws of a | ||
state; or | ||
(2) violation of or conspiracy to violate this chapter | ||
relating to: | ||
(A) the failure to disclose an interest in a | ||
casino for which the person must obtain a license; | ||
(B) willful evasion of a fee or a tax; | ||
(C) notorious or unsavory reputation that would | ||
adversely affect public confidence and trust that the gaming | ||
industry is free from criminal or corruptive elements; or | ||
(D) a written order of a governmental agency that | ||
authorizes the exclusion or ejection of the person from a casino | ||
where casino gaming or pari-mutuel wagering is conducted. | ||
Sec. 2202.305. INTERNAL AUDIT AND CONTROL SYSTEMS. (a) A | ||
casino owner license holder shall adopt an internal control system | ||
that provides for: | ||
(1) the safeguarding of its assets and revenues, | ||
especially the recording of cash and evidences of indebtedness; and | ||
(2) the provision of reliable records, accounts, and | ||
reports of transactions, operations, and events, including reports | ||
to the executive director and the commission. | ||
(b) The internal control system must be designed to | ||
reasonably ensure that: | ||
(1) assets are safeguarded; | ||
(2) financial records are accurate and reliable; | ||
(3) transactions are performed only in accordance with | ||
management's general or specific authorization; | ||
(4) transactions are recorded adequately to allow | ||
proper reporting of gaming revenue and of fees and taxes and to | ||
maintain accountability for assets; | ||
(5) access to assets is allowed only in accordance | ||
with management's specific authorization; | ||
(6) recorded accountability for assets is compared | ||
with actual assets at reasonable intervals and appropriate action | ||
is taken with respect to any discrepancies; and | ||
(7) functions, duties, and responsibilities are | ||
appropriately segregated and performed in accordance with sound | ||
practices by competent, qualified personnel. | ||
(c) A casino owner license holder and an applicant for a | ||
casino owner's license shall describe, in a manner approved or | ||
required by the executive director, the license holder's or | ||
applicant's administrative and accounting procedures in detail in a | ||
written system of internal control. A casino owner license holder | ||
and applicant for a casino owner's license shall submit a copy of | ||
the license holder's or applicant's written system to the executive | ||
director. A written system must include: | ||
(1) an organizational chart depicting appropriate | ||
segregation of functions and responsibilities; | ||
(2) a description of the duties and responsibilities | ||
of each position shown on the organizational chart; | ||
(3) a detailed, narrative description of the | ||
administrative and accounting procedures designed to satisfy the | ||
requirements of Section 2202.303(a); | ||
(4) a written statement signed by the license holder's | ||
chief financial officer and either the license holder's chief | ||
executive officer or the casino owner license holder attesting that | ||
the system satisfies the requirements of this section; | ||
(5) if the written system is submitted by an | ||
applicant, a letter from an independent certified public accountant | ||
stating that the applicant's written system has been reviewed by | ||
the certified public accountant and complies with the requirements | ||
of this section; and | ||
(6) other items the executive director may require. | ||
(d) The commission shall adopt minimum standards for | ||
internal control procedures. | ||
Sec. 2202.306. AGE REQUIREMENTS. A person under the age of | ||
21 years may not: | ||
(1) play, be allowed to play, place wagers, or collect | ||
winnings, personally or through an agent, from any casino gaming | ||
authorized under this chapter; or | ||
(2) be employed as a gaming employee. | ||
Sec. 2202.307. 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 the agents or employees | ||
of the person or license holder who violate this section are subject | ||
only to the penalties provided in this chapter relating to | ||
disciplinary actions. The failure of a person to comply with this | ||
section or commission rules does not invalidate a credit instrument | ||
or affect the ability to enforce the credit instrument or the | ||
transaction that the credit instrument represents. | ||
Sec. 2202.308. 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 | ||
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 decision not later than the 20th day after the date on | ||
which the party or the party's attorney of record is notified by | ||
mail. | ||
Sec. 2202.309. QUESTIONING AND DETENTION OF PERSONS. (a) A | ||
casino owner license holder or the license holder's officer, | ||
employee, or agent may question any person on the license holder's | ||
premises suspected of violating this chapter. The casino owner | ||
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 owner 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 owner 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 OWNER 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. 2202.310. SLOT MACHINE DISABLED. (a) The commission | ||
may disable a slot machine operated by a license holder under this | ||
chapter at the time: | ||
(1) a proceeding to summarily suspend the license is | ||
initiated; | ||
(2) the commission discovers the license holder failed | ||
to deposit money received from slot machine operations as required | ||
if the license is being summarily suspended under this section; or | ||
(3) an act or omission occurs that, under commission | ||
rules, justifies the termination of slot machine operations to: | ||
(A) protect the integrity of gaming or the public | ||
health, welfare, or safety; or | ||
(B) prevent financial loss to this state. | ||
(b) The commission shall immediately disable a slot machine | ||
if necessary to protect the public health, welfare, or safety. | ||
Sec. 2202.311. SLOT MACHINE: DISTRIBUTION AND COMMISSION | ||
APPROVAL. (a) A person may not distribute a slot machine or other | ||
gaming or associated equipment for placement at a casino or | ||
destination resort in this state unless the machine or equipment | ||
has been approved by the commission. | ||
(b) Only a person that holds a manufacturer's license issued | ||
under this chapter may apply for approval of a slot machine or other | ||
gaming or associated equipment. | ||
Sec. 2202.312. TECHNICAL STANDARDS FOR GAMING EQUIPMENT. | ||
The commission by rule shall establish minimum technical standards | ||
for gaming equipment that may be operated in this state. | ||
Sec. 2202.313. INCIDENT REPORTS. (a) A casino owner | ||
license holder or casino operator license holder shall record all | ||
potential criminal violations related to gaming activity in the | ||
casino operated by the owner or operator. | ||
(b) The casino owner license holder or casino 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. 2202.314. SLOT MACHINE EVENTS. A casino owner license | ||
holder or casino operator license holder of a casino 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. 2202.315. SECURITY. (a) The casino owner license | ||
holder or casino 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 safe and approved 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. 2202.316. COMMISSION RIGHT TO ENTER. The commission | ||
or the commission's representative, after displaying appropriate | ||
identification and credentials, has the free and unrestricted right | ||
to: | ||
(1) enter the premises of a casino; | ||
(2) enter at all times any other locations involved in | ||
operation or support of slot machines; and | ||
(3) inspect and copy the records of the owner or | ||
operator of a casino pertaining to the operation of slot machines. | ||
Sec. 2202.317. 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 owner license holder or casino | ||
operator license holder is entitled to perform in the event that: | ||
(1) the owner's or operator's 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 an owner or operator or | ||
a successor on the transfer or sale of the casino or property; 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. 2202.318. 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 | ||
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 director considers necessary or proper to aid in | ||
the enforcement of a law or rule; | ||
(3) aid in adopting rules; | ||
(4) secure information as a basis for recommending | ||
legislation relating to this chapter; and | ||
(5) determine whether a license holder is able to meet | ||
the license holder's financial obligations, including all | ||
financial obligations imposed by this chapter, as they become due. | ||
(b) If after an investigation the executive director is | ||
satisfied that a license should be limited, conditioned, suspended, | ||
or revoked, or that a fine should be levied, the executive director | ||
shall initiate a hearing under Section 2202.356. | ||
Sec. 2202.352. PRIVILEGED DOCUMENTS. (a) A communication | ||
or document of an applicant or license holder that is required by | ||
law or commission rule or by a subpoena issued by the commission and | ||
that is to be made or transmitted to the commission or the executive | ||
director is privileged and does not impose liability for defamation | ||
or constitute a ground for recovery in a civil action by a person | ||
other than the commission. | ||
(b) If a document or communication contains information | ||
that is privileged, the privilege is not waived or lost because the | ||
document or communication is disclosed to the commission or the | ||
executive director. | ||
(c) Notwithstanding the powers granted to the commission | ||
and the executive director by this chapter: | ||
(1) the commission and the executive director may not | ||
release or disclose privileged information, documents, or | ||
communications provided by an applicant and required by a lawful | ||
court order after timely notice of the proceedings has been given to | ||
the applicant or license holder without the prior written consent | ||
of the applicant or license holder; | ||
(2) the commission and the executive director shall | ||
maintain all privileged information, documents, and communications | ||
in a secure place accessible only to members of the commission and | ||
the executive director; and | ||
(3) the commission shall adopt procedures to protect | ||
the privileged nature of information, documents, and | ||
communications provided by an applicant or license holder. | ||
Sec. 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 imposed under this chapter or | ||
wilfully attempted in any manner to evade or defeat a fee or | ||
payment; | ||
(2) a license holder or gaming employee has cheated at | ||
a gambling game; or | ||
(3) the action is necessary for the immediate | ||
preservation of the public peace, health, safety, morals, good | ||
order, or general welfare. | ||
(c) The emergency order must state the grounds on which it | ||
is issued, including a statement of facts constituting the alleged | ||
emergency necessitating the action. | ||
(d) An emergency order may be issued only with the approval | ||
of and under the signature of four or more members of the | ||
commission. | ||
(e) An emergency order is effective immediately on issuance | ||
and service on the license holder or resident agent of the license | ||
holder, gaming employee, or, in cases involving registration, on | ||
issuance and service on the person or entity involved or resident | ||
agent of the entity involved. An emergency order may suspend, | ||
limit, condition, or take other action in relation to the license of | ||
one or more persons in an operation without affecting other | ||
individual license holders or the casino. 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. REVOCATION OF LICENSE. (a) The commission | ||
shall revoke or suspend 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. DISCIPLINARY HEARING. (a) Before the | ||
commission revokes or suspends a license or imposes monetary | ||
penalties for a violation of this chapter, the commission shall | ||
provide written notice to the license holder of the revocation, the | ||
period of suspension, or the monetary penalty. The notice shall | ||
include: | ||
(1) the effective date of the revocation or the period | ||
of suspension or the amount of the monetary penalty, as applicable; | ||
(2) each reason for the revocation, suspension, or | ||
penalty; | ||
(3) an explanation of the evidence supporting the | ||
reasons; | ||
(4) an opportunity to present the license holder's | ||
position in response on or before the 15th day after the effective | ||
date of the revocation; and | ||
(5) a statement explaining the person's right to an | ||
administrative hearing to determine whether the revocation, | ||
suspension, or penalty is warranted. | ||
(b) The notice required under Subsection (a) must be made by | ||
personal delivery or by mail to the person's mailing address as it | ||
appears on the commission's records. | ||
(c) To obtain an administrative hearing on a suspension, | ||
revocation, or penalty under this section, a person must submit a | ||
written request for a hearing to the commission not later than the | ||
20th day after the date notice is delivered personally or is mailed. | ||
(d) If the commission receives a timely request under | ||
Subsection (c), the commission shall provide the person with an | ||
opportunity for a hearing as soon as practicable. If the commission | ||
does not receive a timely request under Subsection (c), the | ||
commission may impose the penalty, revoke or suspend a license, or | ||
sustain the revocation or suspension without a hearing. | ||
(e) Except as provided by Subsection (f), the hearing must | ||
be held not earlier than the 11th day after the date the written | ||
request is submitted to the commission. | ||
(f) The commission may provide that a revocation or | ||
suspension takes effect on receipt of notice under Subsection (a) | ||
if the commission finds that the action is necessary to prevent or | ||
remedy a threat to public health, safety, or welfare. The | ||
commission by rule shall establish a nonexclusive list of | ||
violations that present a threat to the public health, safety, or | ||
welfare. | ||
(g) A hearing on a revocation or suspension that takes | ||
effect on receipt of notice must be held not later than the 14th day | ||
after the date the commission receives the request for hearing | ||
under this section. The revocation or suspension continues in | ||
effect until the hearing is completed. If the hearing is continued, | ||
the revocation or suspension shall continue in effect beyond the | ||
14-day period at the request of the license holder or on a finding | ||
of good cause by the commission or administrative law judge. | ||
(h) To prevail in an administrative hearing under this | ||
section occurring after revocation or suspension, the license | ||
holder must demonstrate by clear and convincing evidence that the | ||
deprivation or imposition of a penalty was unwarranted or otherwise | ||
unlawful. The post-deprivation hearing may be conducted by the | ||
commission or referred to the State Office of Administrative | ||
Hearings. | ||
(i) The administrative record created by the hearing | ||
conducted by the State Office of Administrative Hearings shall be | ||
provided to the commission for review and determination on the | ||
revocation or suspension. | ||
(j) If an administrative law judge of the State Office of | ||
Administrative Hearings conducts a hearing under this section and | ||
the proposal for decision supports the commission's position, the | ||
administrative law judge shall include in the proposal a finding of | ||
the costs, fees, expenses, and reasonable and necessary attorney's | ||
fees this state incurred in bringing the proceeding. | ||
(k) The commission may adopt the findings for costs, fees, | ||
and expenses and make the finding a part of the final order entered | ||
in the proceeding. Proceeds collected from a finding made under | ||
this section shall be paid to the commission. | ||
Sec. 2202.357. JUDICIAL REVIEW OF REVOCATION, SUSPENSION, | ||
OR PENALTY IMPOSITION. (a) A person aggrieved by a final decision | ||
of the commission to revoke or suspend a license or to impose any | ||
monetary penalty may obtain judicial review before a district court | ||
in Travis County. | ||
(b) The judicial review must be instituted by serving on the | ||
commission and filing a petition not later than the 20th day after | ||
the effective date of the final decision and must identify the order | ||
appealed from and the grounds or reason why the petitioner contends | ||
the decision of the commission should be reversed or modified. | ||
(c) The review must be conducted by the court sitting | ||
without jury, and must not be a trial de novo but is confined to the | ||
record on review. The reviewing court may only affirm the decision, | ||
remand the case for further proceedings, or reverse the decision if | ||
the substantial rights of the petitioner have been violated. | ||
(d) If any court of competent jurisdiction concludes on | ||
judicial review limited to the administrative record before the | ||
commission and subject to the substantial evidence standard that | ||
the revocation, suspension, or penalty was unwarranted or otherwise | ||
unlawful, the sole remedy available is invalidation of the penalty | ||
or reinstatement of the license and the continued distribution, | ||
manufacture, or operation of slot machines. | ||
(e) The commission, this state, or the members, officers, | ||
employees, and authorized agents of the commission or the state are | ||
not under any circumstances subject to monetary damages, attorney's | ||
fees, or court costs resulting from a penalty imposed or from the | ||
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 holder's agreement to Sections 2202.355, 2202.356, and 2202.357 | ||
and the 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) This state does not waive | ||
its sovereign immunity by negotiating gaming agreements with Indian | ||
tribes or other persons for the operation of casino gaming or | ||
gambling games under this subtitle. An actor or agent for this state | ||
may not waive this state's sovereign immunity absent an express | ||
legislative grant of 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. 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. | ||
Sec. 2202.361. ABSOLUTE PRIVILEGE OF REQUIRED | ||
COMMUNICATIONS AND DOCUMENTS. (a) Any communication, document, or | ||
record of an applicant for or holder of a license that is made or | ||
transmitted to the commission or any of its employees to comply with | ||
any law, including a commission rule, to comply with a subpoena | ||
issued by the commission, or to assist the commission or its | ||
designee in the performance of their respective duties is | ||
absolutely privileged, does not impose liability for defamation, | ||
and is not a ground for recovery in any civil action. | ||
(b) If a communication, document, or record provided under | ||
Subsection (a) contains any information that is privileged under | ||
state law, that privilege is not waived or lost because the | ||
communication, document, or record is disclosed to the commission | ||
or any commission employees. | ||
(c) The commission shall maintain all privileged | ||
information, communications, documents, and records in a secure | ||
place as determined in the commission's sole discretion that is | ||
accessible only to commission members and authorized commission | ||
employees. | ||
SUBCHAPTER I. PENALTIES AND OFFENSES | ||
Sec. 2202.401. FAILURE TO PAY FEES. (a) License fees and | ||
other fees required by this chapter must be paid to the commission | ||
on or before the dates provided by law for each fee. | ||
(b) A person failing to timely pay a fee or tax when due | ||
shall pay in addition a penalty of not less than $50 or 25 percent of | ||
the amount due, whichever is the greater. The penalty may not | ||
exceed $1,000 if the fee or tax is less than 10 days late and may not | ||
exceed $5,000 under any circumstances. The commission shall | ||
collect the penalty in the same manner as other charges, license | ||
fees, and penalties are collected under this chapter. | ||
Sec. 2202.402. 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. | ||
(b) An offense under this section is a Class A misdemeanor. | ||
Sec. 2202.403. GAMING FRAUD. (a) A person commits an | ||
offense if the person knowingly: | ||
(1) alters or misrepresents the outcome of a game or | ||
other event on which wagers have been made after the outcome is made | ||
sure but before it is revealed to the players; | ||
(2) places, increases, or decreases a bet or | ||
determines the course of play after acquiring knowledge, not | ||
available to all players, of the outcome of the game or an event | ||
that affects the outcome of the game or that is the subject of the | ||
bet or aids anyone in acquiring such knowledge for the purpose of | ||
placing, increasing, or decreasing a bet or determining the course | ||
of play contingent on that event or outcome; | ||
(3) claims, collects, or takes, or attempts to claim, | ||
collect, or take, money or anything of value in or from a gambling | ||
game, with the intent to defraud, without having made a wager | ||
contingent on the game; | ||
(4) claims, collects, or takes an amount greater than | ||
the amount won from a gambling game; | ||
(5) 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; | ||
(6) 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; | ||
(7) reduces the amount wagered or cancels the bet | ||
after acquiring knowledge of the outcome of the game or other event | ||
that is the subject of the bet, including pinching bets; or | ||
(8) 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 of America or by | ||
tokens or chips approved by the executive director knowingly uses a | ||
token, chip, or coin other than tokens, chips, or coins designed for | ||
the game. | ||
(c) A person, other than an authorized employee of an | ||
owner's license holder acting in furtherance of the person's | ||
employment within an establishment, commits an offense if the | ||
person knowingly has on the person's body or in the person's | ||
possession on or off the premises of a casino a device intended to | ||
be used to violate the provisions of this chapter. | ||
(d) A person, other than an authorized employee of a license | ||
holder acting in furtherance of the person's employment within a | ||
casino, 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 DEVICES. (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 cards, chips, dice, a game, or a device | ||
intended to be used to violate this chapter. | ||
(c) A person commits an offense if the person marks, alters, | ||
or otherwise modifies any associated equipment or gaming device in | ||
a manner that: | ||
(1) affects the result of a wager by determining 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 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 may not operate, use, or possess a | ||
gaming device unless the operation, use, or possession is expressly | ||
authorized by this chapter or other law. | ||
(b) Except for transport to or from a casino and as provided | ||
by this chapter, a person commits an offense if the person operates, | ||
uses, or possesses a gaming device that is not authorized under this | ||
chapter or other law. An offense under this subsection is a felony | ||
of the third degree. | ||
(c) Notwithstanding Subsection (b), a casino owner or | ||
operator, or a manufacturer may store a gaming device as authorized | ||
by the commission for a period not to exceed 120 consecutive days, | ||
and the commission may possess gaming devices for study and | ||
evaluation. | ||
(d) Nothing in this section shall be construed to prohibit | ||
the operation, use, or possession of equipment, machines, | ||
technological aids, or other devices allowed in connection with the | ||
play of bingo under Chapter 2001. | ||
Sec. 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. | ||
(b) An individual who is younger than 21 years of age | ||
commits an offense if the individual: | ||
(1) plays a gambling game; or | ||
(2) falsely represents the individual to be 21 years | ||
of age or older by displaying evidence of age that is false or | ||
fraudulent or misrepresents in any way the individual's age in | ||
order to play a gambling game. | ||
(c) It is a defense to prosecution under Subsection (b) that | ||
the individual younger than 21 years of age is participating in an | ||
inspection or investigation on behalf of the commission or other | ||
appropriate governmental entity regarding compliance with this | ||
section. | ||
(d) An offense under Subsection (a) is a Class C | ||
misdemeanor. | ||
(e) An offense under Subsection (b) is a misdemeanor | ||
punishable by a fine not to exceed $250. | ||
Sec. 2202.413. PURCHASE 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 | ||
on electronic benefit transfer cards administered under Chapter 33, | ||
Human Resources Code. | ||
(b) An offense under this section is a Class C misdemeanor. | ||
Sec. 2202.414. TAMPERING WITH GAMING OR ASSOCIATED | ||
EQUIPMENT. (a) A person commits an offense if the person | ||
intentionally or knowingly tampers with, damages, defaces, or | ||
renders inoperable any vending machine, electronic computer | ||
terminal, gaming device or other gaming or associated equipment, or | ||
other mechanical device used in a gambling game. | ||
(b) An offense under this section is a felony of the third | ||
degree. | ||
Sec. 2202.415. 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 the 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 | ||
containing the terms set forth in Section 2203.002, as a | ||
ministerial act, without preconditions, not later than the 30th day | ||
after the date the governor receives a request from the tribe, | ||
accompanied by or in the form of a duly enacted resolution of the | ||
tribe's governing body, to enter into the gaming agreement. | ||
Sec. 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 that another person may be authorized to | ||
engage in under Subtitle E, Title 13, Occupations Code. | ||
The Tribe shall regulate the gaming activities authorized | ||
under this agreement on the Tribe's Indian lands. | ||
The Tribe shall adopt rules and procedures substantially | ||
similar to the requirements of Subtitle E, Title 13, Occupations | ||
Code, except that any regulatory oversight established under | ||
Subtitle E 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, 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 by this state as provided in that section of the amounts | ||
necessary to defray state costs of regulating activities as | ||
provided under the gaming agreement, nothing in this chapter may be | ||
construed to mean that: | ||
(1) this state is imposing any tax, fee, charge, or | ||
other assessment on an Indian tribe or on any other person or entity | ||
authorized by an Indian tribe as a condition to engaging in a Class | ||
III activity 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 tribe with jurisdiction | ||
over Indian lands in this state requests that the governor enter | ||
into negotiations for a gaming agreement under federal law | ||
applicable to the tribe, including the Indian Gaming Regulatory Act | ||
(Pub. L. No. 100-497), on terms different than 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 subchapter. | ||
Sec. 2203.005. INCORPORATION INTO STATE LAW. The model | ||
gaming agreement set out in Section 2203.002 is hereby incorporated | ||
into state law, and the operation of gaming authorized under the | ||
agreement is expressly authorized as a matter of state law for any | ||
Indian tribe entering into the gaming agreement in accordance with | ||
this subchapter. | ||
Sec. 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 | ||
gambling to be forfeited to the appropriate governing body as a | ||
civil penalty. | ||
(d) The remedies provided by this section are not exclusive. | ||
The commission may suspend or revoke a license, 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) airport police officers commissioned by a city | ||
with a population of more than 1.18 million located primarily in a | ||
county with a population of 2 million or more that operates an | ||
airport that serves commercial air carriers; | ||
(12) airport security personnel commissioned as peace | ||
officers by the governing body of any political subdivision of this | ||
state, other than a city described by Subdivision (11), that | ||
operates an airport that serves commercial air carriers; | ||
(13) municipal park and recreational patrolmen and | ||
security officers; | ||
(14) security officers and investigators commissioned | ||
as peace officers by the comptroller; | ||
(15) officers commissioned by a water control and | ||
improvement district under Section 49.216, Water Code; | ||
(16) officers commissioned by a board of trustees | ||
under Chapter 54, Transportation Code; | ||
(17) investigators commissioned by the Texas Medical | ||
Board; | ||
(18) officers commissioned by: | ||
(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; | ||
(19) county park rangers commissioned under | ||
Subchapter E, Chapter 351, Local Government Code; | ||
(20) investigators employed by the Texas Racing | ||
Commission; | ||
(21) officers commissioned under Chapter 554, | ||
Occupations Code; | ||
(22) officers commissioned by the governing body of a | ||
metropolitan rapid transit authority under Section 451.108, | ||
Transportation Code, or by a regional transportation authority | ||
under Section 452.110, Transportation Code; | ||
(23) investigators commissioned by the attorney | ||
general under Section 402.009, Government Code; | ||
(24) security officers and investigators commissioned | ||
as peace officers under Chapter 466, Government Code; | ||
(25) officers appointed by an appellate court under | ||
Subchapter F, Chapter 53, Government Code; | ||
(26) officers commissioned by the state fire marshal | ||
under Chapter 417, Government Code; | ||
(27) an investigator commissioned by the commissioner | ||
of insurance under Section 701.104, Insurance Code; | ||
(28) apprehension specialists and inspectors general | ||
commissioned by the Texas Juvenile Justice Department as officers | ||
under Sections 242.102 and 243.052, Human Resources Code; | ||
(29) officers appointed by the inspector general of | ||
the Texas Department of Criminal Justice under Section 493.019, | ||
Government Code; | ||
(30) investigators commissioned by the Texas | ||
Commission on Law Enforcement under Section 1701.160, Occupations | ||
Code; | ||
(31) commission investigators commissioned by the | ||
Texas Private Security Board under Section 1702.061, Occupations | ||
Code; | ||
(32) the fire marshal and any officers, inspectors, or | ||
investigators commissioned by an emergency services district under | ||
Chapter 775, Health and Safety Code; | ||
(33) officers commissioned by the State Board of | ||
Dental Examiners under Section 254.013, Occupations Code, subject | ||
to the limitations imposed by that section; | ||
(34) investigators commissioned by the Texas Juvenile | ||
Justice Department as officers under Section 221.011, Human | ||
Resources Code; [ |
||
(35) the fire marshal and any related officers, | ||
inspectors, or investigators commissioned by a county under | ||
Subchapter B, Chapter 352, Local Government Code; and | ||
(36) 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 casino owner or operator or prospective casino | ||
owner or operator; | ||
(4) 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; | ||
(5) 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; | ||
(6) a person who proposes to enter into or who has a | ||
contract with the commission to supply goods or services to the | ||
commission; | ||
(7) if a person described in Subdivisions (4) through | ||
(6) is not an individual, each individual who: | ||
(A) is an officer or director of the person; | ||
(B) holds more than 10 percent of the stock in the | ||
person; | ||
(C) holds an equitable interest greater than 10 | ||
percent in the person; | ||
(D) 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; | ||
(8) an employee or prospective employee, including the | ||
executive director or a prospective executive director, of the | ||
commission; or | ||
(9) a person described under Subdivisions (1)-(8) | ||
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 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); [ |
||
(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 an | ||
authorized gambling game in a casino authorized under an | ||
appropriate license issued under Subtitle E, Title 13, Occupations | ||
Code. | ||
SECTION 5. Section 47.06(f), Penal Code, is amended to read | ||
as follows: | ||
(f) It is a defense to prosecution under Subsection (a) or | ||
(c) that the person owned, manufactured, transferred, or possessed | ||
the gambling device, equipment, or paraphernalia for the sole | ||
purpose of shipping it: | ||
(1) to a casino authorized under an appropriate | ||
license issued under Subtitle E, Title 13, Occupations Code, for | ||
casino gaming; or | ||
(2) to another jurisdiction where the possession or | ||
use of the device, equipment, or paraphernalia was legal. | ||
SECTION 6. 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); [ |
||
(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 7. (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, 2023. | ||
(b) Not later than January 1, 2022, 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, 2024, two members to terms expiring | ||
February 1, 2026, and two members to terms expiring February 1, | ||
2028. | ||
SECTION 8. (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, 2021; | ||
(2) two members of the house of representatives, | ||
appointed by the speaker of the house of representatives not later | ||
than December 1, 2021; and | ||
(3) three members of the public, appointed by the | ||
governor not later than December 1, 2021. | ||
(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 gaming in this state and other | ||
appropriate issues. | ||
(i) The committee shall use existing staff of the senate, | ||
the house of representatives, and the Texas Legislative Council to | ||
assist the committee in performing its duties under this section. | ||
(j) Chapter 551, Government Code, applies to the committee. | ||
(k) The committee shall report to the governor, lieutenant | ||
governor, and speaker of the house of representatives not later | ||
than November 15 of each even-numbered year. The report must | ||
include: | ||
(1) identification of significant issues within | ||
gaming regulation, with recommendations for action; | ||
(2) an analysis of the effectiveness and efficiency of | ||
gaming regulation, with recommendations for any necessary | ||
research; and | ||
(3) recommendations for legislative action. | ||
SECTION 9. (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, 2022. 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 March 1, 2022, 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 10. As soon as practicable after the constitutional | ||
amendment to authorize casino gaming in this state proposed by the | ||
87th Legislature, Regular Session, 2021, is approved by the voters | ||
and becomes effective, the Texas Gaming Commission shall adopt the | ||
rules necessary to implement that gaming in accordance with Chapter | ||
2202, Occupations Code, as added by this Act. | ||
SECTION 11. This Act takes effect on the date the amendment | ||
proposed by the 87th Legislature, Regular Session, 2021, to foster | ||
economic development and job growth and to provide tax relief and | ||
funding for education and public safety by creating the Texas | ||
Gaming Commission, authorizing casino gaming at a limited number of | ||
destination resorts and facilities licensed by the commission, and | ||
authorizing sports wagering is approved by the voters. If that | ||
amendment is not approved by the voters, this Act has no effect. |