Bill Text: TX SB799 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the operation of video gaming by authorized organizations and commercial operators that are licensed to conduct bingo or lease bingo premises; providing penalties; imposing fees.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-03-05 - Referred to State Affairs [SB799 Detail]

Download: Texas-2013-SB799-Introduced.html

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83R4932 DDT-D
By: Van de Putte S.B. No. 799

A BILL TO BE ENTITLED
AN ACT
relating to the operation of video gaming by authorized
organizations and commercial operators that are licensed to conduct
bingo or lease bingo premises; providing penalties; imposing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds and declares that:
(1) the purpose and intent of this Act is to carry out
the intent of the voters as established by the approval of Section
47a, Article III, Texas Constitution, to expand the
revenue-generating ability of this state by authorizing the
operation of video gaming consistent with public policy strictly
limiting the expansion of gambling in this state;
(2) except as expressly authorized under other law,
the people of this state intend to allow only state-regulated video
gaming games to be conducted in this state and only in locations at
which bingo is conducted by authorized charitable organizations;
(3) the video gaming games operated under this Act are
regulated by this state in a manner that allows this state to
monitor, both routinely and randomly, all video gaming terminals
and to direct the disabling of any video gaming terminal for the
protection of the public and this state;
(4) through network operating centers or a video
gaming system, this state will monitor video gaming terminals to
ensure maximum security unique to state-regulated gambling. Except
as may otherwise be provided by state or federal law governing
gaming on Indian lands, each operating video gaming terminal in
this state will be connected to a network operating center or a
state-regulated video gaming system;
(5) in authorizing only state-regulated video gaming
terminals in limited locations and continuing the general
prohibition on gambling in this state as a matter of public policy,
this state is protecting the state's legitimate interests by
restricting such activity. By limiting the operation of video
gaming terminals to those connected to a network operating center
or a state-regulated video gaming system on certain land with
certain types of games, the legislature seeks to foster this
state's legitimate sovereign interest in regulating the growth of
gambling activities in this state;
(6) this Act is game-specific and may not be construed
to allow the operation of any other form of gambling unless
specifically allowed by Chapter 2001A, Occupations Code, as added
by this Act. This Act does not allow the operation of dice games,
roulette wheels, house-banked games, including house-banked card
games, or games in which winners are determined by the outcome of a
live sports contest that are expressly prohibited under other state
law;
(7) in light of the financial issues facing this
state, the Texas Lottery Commission is authorized to commence
implementation and authorization of video gaming in accordance with
Chapter 2001A, Occupations Code, as added by this Act, at the
earliest possible date, consistent with legislative directive; and
(8) the financial issues facing this state constitute
an imminent peril to public welfare, requiring the rapid adoption
of rules and authorization for the Texas Lottery Commission to
conduct certain pre-implementation activities related to
regulating video gaming to ensure:
(A) that the increase in state revenue from the
portion of gross gaming income transferred to the state is realized
as soon as possible to lessen the financial issues faced by this
state;
(B) that video gaming is fairly conducted and the
charitable proceeds derived from it are used for an authorized
purpose; and
(C) the integrity, security, and fairness of
video gaming.
SECTION 2. Subtitle A, Title 13, Occupations Code, is
amended by adding Chapter 2001A to read as follows:
CHAPTER 2001A. VIDEO GAMING BY LICENSED AUTHORIZED ORGANIZATIONS
AND LICENSED COMMERCIAL LESSORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2001A.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Lottery Commission.
(2) "Crime of moral turpitude" has the meaning
assigned by Section 2001.002.
(3) "Director" means the director of charitable bingo
operations of the commission.
(4) "Disable," with respect to video gaming terminals,
means the process that causes a video gaming terminal to cease
functioning on issuance of a shutdown command from a network
operating center or site controller.
(5) "Distribute," with respect to video gaming
terminals, means the sale, lease, marketing, offer, or other
disposition of a video gaming terminal, an electronic computer
component of a video gaming terminal, the cabinet in which a video
gaming terminal is housed, video gaming equipment, or video gaming
game software intended for use or play in this state.
(6) "Gross gaming income" means the total amount of
money paid to play video gaming games less the value of all credits
redeemed, including any progressive prizes and bonuses, by the
players of the video gaming games. Promotional prizes unrelated to
video gaming game wagers that are offered by a video gaming retailer
may not be deducted or otherwise considered credits redeemed for
money by players for the purpose of determining gross gaming
income.
(7) "Independent testing laboratory" means a
nationally recognized laboratory facility that is demonstrably
competent and qualified to scientifically test and evaluate video
gaming equipment for compliance with this chapter.
(8) "Licensed authorized organization" has the
meaning assigned by Section 2001.002.
(9) "Licensed commercial lessor" has the meaning
assigned by Section 2001.002.
(10) "Major component or part" means a component or
part that comprises the inner workings and peripherals of a video
gaming terminal, site controller, or network operating center,
including the device's hardware, software, human interface
devices, interface ports, power supply, ticket payout system, bill
validator, and printer, and any component that affects or could
affect the result of a game played on the device.
(11) "Manufacture," with respect to video gaming
terminals, means to design, assemble, fabricate, produce, program,
or make modifications to a video gaming terminal, an electronic
computer component of a video gaming terminal, a major component or
part of video gaming equipment, the cabinet in which a video gaming
terminal is housed, video gaming equipment, or video gaming game
software intended for use or play in this state.
(12) "Network operating center" means a computer
server that is connected directly or indirectly to a video gaming
manufacturer's video gaming terminals operated in this state.
(13) "Player account card" means a plastic magnetic
strip, paper, or smart card that may be used to:
(A) enable or track the play of video gaming
games;
(B) track and record customer account data,
including electronic credits purchased, played, won, or otherwise
available for participating in a video gaming game; or
(C) redeem credits purchased, played, or won
through a cashier or other point-of-sale station or redemption
system.
(14) "Site controller" means computer hardware and
software located on the premises of a video gaming retailer that:
(A) stores and distributes video gaming games for
display on video gaming terminals;
(B) networks and communicates with a video gaming
manufacturer's video gaming terminals at the premises; and
(C) communicates with the manufacturer's network
operating center.
(15) "Video gaming" means the conduct of video gaming
games on video gaming terminals.
(16) "Video gaming distributor" means a person
licensed under this chapter to provide video gaming equipment,
major components and parts of video gaming equipment, installation,
and technical services to a licensed video gaming retailer.
(17) "Video gaming equipment" means:
(A) a video gaming terminal;
(B) equipment, a component, or a contrivance used
remotely or directly in connection with a video gaming terminal to:
(i) affect the reporting of gross revenue
and other accounting information, including a device for weighing
and counting money;
(ii) provide accounting, player tracking,
bonuses, and in-house or wide-area prizes;
(iii) monitor video gaming terminal
operations; and
(iv) provide for the connection of video
gaming terminals to the network operating center or site
controller; or
(C) any other communications technology or
equipment necessary for the operation of a video gaming terminal or
the video gaming system.
(18) "Video gaming game" means any game of chance,
including a game of chance in which the outcome may be partially
determined by skill or ability, that for consideration may be
played by an individual on a video gaming terminal.
(19) "Video gaming manufacturer" means a person who
holds a license under this chapter to manufacture video gaming
equipment and major components or parts of video gaming equipment.
(20) "Video gaming premises" means the area subject to
direct control of and actual use by a licensed authorized
organization, a group of licensed authorized organizations, or a
licensed commercial lessor to conduct video gaming.
(21) "Video gaming retailer" means a licensed
authorized organization or a licensed commercial lessor that holds
a license to conduct video gaming under this chapter.
(22) "Video gaming system" means the system
established as authorized by the commission to allow the commission
or person contracting with the commission to monitor the operation
of video gaming in this state.
(23) "Video gaming terminal" means a mechanical,
electrical, or other type of device, contrivance, or machine that
plays or operates on insertion of a coin, currency, a token, or a
similar object or on payment of any other consideration, and the
play or operation of which, through the skill of the operator, by
chance, or both, may deliver to the person playing or operating the
machine or entitle the person to receive premiums, merchandise,
tokens, or any other thing of value, whether the payoff is made
automatically from the machine or in any other manner. The term
does not include any equipment, machine, technological aid, or
other device used or authorized in connection with the play of bingo
under Chapter 2001 or authorized under other law.
Sec. 2001A.002. APPLICABILITY OF OTHER LAW. (a) All
shipments into, out of, or within this state of video gaming
terminals or other gaming devices authorized under this chapter are
legal shipments of the devices and are exempt from the provisions of
15 U.S.C. Sections 1171-1178 prohibiting the transportation of
gambling devices.
(b) To the extent of any conflict, this chapter controls
over any local zoning law that impedes the implementation of video
gaming at a location where bingo was conducted on January 1, 2013,
and where a video gaming retailer is authorized to conduct video
gaming under this chapter.
Sec. 2001A.003. EXEMPTION FROM TAXATION. A political
subdivision of this state may not impose a tax or fee for attendance
or admission to a video gaming premises unless specifically
authorized by statute.
SUBCHAPTER B. ADMINISTRATION
Sec. 2001A.051. POWERS AND DUTIES OF COMMISSION AND
DIRECTOR. (a) The commission and the director have broad authority
and shall exercise strict control and close supervision over video
gaming operated in this state to promote and ensure the integrity,
security, honesty, and fairness of video gaming.
(b) The commission may contract with or employ a person to
perform a function, activity, or service in connection with the
regulation of video gaming as prescribed by the commission.
(c) The commission shall, as necessary to protect the public
health and safety:
(1) monitor and regulate video gaming operations on a
routine and random basis;
(2) establish standards for:
(A) the operation of video gaming;
(B) the provision of video gaming equipment and
services; and
(C) video gaming premises; and
(3) inspect and examine all video gaming premises and
all video gaming equipment, services, records, and operations to
ensure compliance with the standards established by the commission.
(d) The commission may demand access to and inspect,
examine, and audit all records regarding gross gaming income of a
video gaming retailer.
Sec. 2001A.052. RULES; PROCEDURES. (a) The commission
shall adopt all rules necessary to supervise and regulate video
gaming in this state, administer this chapter, and ensure the
security of video gaming operations in this state.
(b) The commission shall establish procedures for the
approval, monitoring, and inspection of video gaming operations as
necessary to protect the public health, welfare, and safety and the
integrity of this state and to prevent financial loss to this state.
(c) In adopting rules and procedures under this chapter, the
commission shall examine the laws of other jurisdictions and
incorporate best practices from established responsible gaming
systems.
Sec. 2001A.053. RULES FOR ADDITIONAL QUALIFICATIONS. The
commission by rule may establish other license qualifications the
commission determines are in the public interest and consistent
with the declared policy of this state.
Sec. 2001A.054. LICENSE FEES; TERMINAL FEE. (a) An
applicant for a license under this chapter shall submit with the
application the annual license fee required for the type of license
sought. The fee is nonrefundable.
(b) The annual license fee is:
(1) for a video gaming manufacturer license, $10,000;
(2) for a video gaming distributor license, $10,000;
(3) for a video gaming retailer holding:
(A) a class 1 license, $1,250;
(B) a class 2 license, $2,500; or
(C) a class 3 license, $5,000;
(4) for a video gaming manager, $2,500;
(5) for key video gaming personnel, $100;
(6) for a video gaming technician, $100; and
(7) for a video gaming employee, $50.
(c) The annual fee for each video gaming terminal operated
by the video gaming retailer at a video gaming premises is $250.
Sec. 2001A.055. ESTABLISHMENT OF VIDEO GAMING SYSTEM. (a)
In accordance with Section 47a, Article III, Texas Constitution,
the commission shall establish a video gaming system that allows
the commission to monitor and regulate video gaming and direct the
disabling of video gaming terminals for the public safety, health,
and welfare or the preservation of the integrity of video gaming and
to prevent any financial loss to this state. The system must provide
video gaming auditing, security, and other information required by
the commission.
(b) This section does not affect or restrict the ability of
a video gaming retailer to monitor activity of video gaming
terminals and to disable video gaming terminals in accordance with
commission rules.
(c) The commission may direct the disabling of a video
gaming terminal if a video gaming retailer's license is revoked,
surrendered, or summarily suspended under this chapter and as
necessary to prevent any financial loss to this state.
Sec. 2001A.056. ANNUAL REPORT. The commission shall file
an annual report with the governor, the comptroller, and the
legislature regarding the collection and disposition of video
gaming revenue for the state fiscal year preceding the report. The
report must be in the form and reported in the time provided by the
General Appropriations Act.
SUBCHAPTER C. LICENSE AND CONTRACT REQUIREMENTS
Sec. 2001A.101. RETAILER LICENSE REQUIRED; ELIGIBILITY
REQUIREMENTS. (a) A person may not conduct video gaming in this
state unless the person holds a video gaming retailer license
issued under this chapter.
(b) A person is eligible for issuance of a video gaming
retailer license under this chapter only if the person:
(1) is a licensed authorized organization that:
(A) on January 1, 2013, held a license to conduct
bingo at a bingo premises;
(B) except as provided by Subsection (e),
conducts video gaming only at the bingo premises where the
organization is the only licensed authorized organization
conducting bingo at that premises; and
(C) does not lease the premises from a licensed
commercial lessor; or
(2) is a licensed commercial lessor who:
(A) on January 1, 2013, held a license to lease
bingo premises; and
(B) except as provided by Subsection (e),
conducts video gaming only at the premises the lessor leases to
licensed authorized organizations for the conduct of bingo.
(c) On application and payment of required fees, the
commission shall issue a video gaming retailer license to a person
described by Subsection (b) unless the person is ineligible to hold
the license under another provision of this chapter or commission
rule.
(d) The commission shall establish the following
classifications of video gaming retailer licenses:
(1) class 1 license for a premises where:
(A) a licensed authorized organization that does
not lease bingo premises from a licensed commercial lessor conducts
bingo on the premises under Chapter 2001; or
(B) a licensed commercial lessor who held a Class
A, B, or C commercial lessor license under Chapter 2001 on January
1, 2013, leases the premises to one or more licensed authorized
organizations that conduct bingo on the premises;
(2) class 2 license for a licensed commercial lessor
who held a Class D, E, F, or G commercial lessor license under
Chapter 2001 on January 1, 2013; or
(3) class 3 license for a licensed commercial lessor
who held a Class H, I, or J commercial lessor license under Chapter
2001 on January 1, 2013.
(e) A video gaming retailer may conduct video gaming at a
premises other than the premises described by Subsection (b) if:
(1) the county, justice precinct, or municipality in
which those premises are located holds an election in which the
majority of the voters of the jurisdiction favor prohibiting bingo
games in the jurisdiction; and
(2) the other premises are located in a jurisdiction
in which a majority of the voters voting in an election held before
January 1, 2013, voted in favor of legalizing bingo games.
Sec. 2001A.102. DISTRIBUTOR OR MANUFACTURER LICENSE
REQUIRED. (a) A person may not sell, lease, distribute, or provide
video gaming equipment or a major component or part of video gaming
equipment or provide technical services to a video gaming retailer
for use in this state unless the person holds a video gaming
distributor license issued under this chapter.
(b) A person may not manufacture video gaming equipment or a
major component or part of video gaming equipment for use in this
state or buy, sell, lease, or distribute to a distributor video
gaming equipment or a major component or part of video gaming
equipment for use in this state unless the person holds a video
gaming manufacturer license issued under this chapter.
(c) The commission shall issue a video gaming distributor
license or a video gaming manufacturer license, as applicable, to
an eligible person who has the resources and experience required to
manufacture or provide video gaming equipment or a major component
or part of video gaming equipment and technical services to video
gaming retailers conducting video gaming under this chapter and who
is not ineligible to hold the license under this chapter or
commission rule.
(d) A video gaming manufacturer may not directly provide
video gaming equipment or a major component or part of video gaming
equipment to a video gaming retailer.
Sec. 2001A.103. LICENSE REQUIRED FOR VIDEO GAMING
EMPLOYEES, MANAGERS, TECHNICIANS, AND KEY PERSONNEL. (a) To protect
the public health and safety and prevent financial loss to this
state, the commission by rule shall establish categories and
eligibility requirements for employees required to hold a license
issued under this chapter to operate in the licensed capacity at a
video gaming premises under this chapter. The license holder must
maintain eligibility to continue to hold the license. The
commission shall require the following persons to be licensed:
(1) key video gaming personnel, including executive
personnel critical to the operation of video gaming;
(2) video gaming employees, including gaming floor
workers and accounting personnel;
(3) video gaming technicians who install, maintain,
and repair video gaming equipment; and
(4) video gaming managers who contract with a video
gaming retailer to oversee video gaming operations at premises
authorized to operate video gaming under this chapter.
(b) A video gaming distributor that holds a video gaming
manager's license under this section may serve as the manager for a
premises.
Sec. 2001A.104. INELIGIBILITY FOR LICENSE. (a) A person is
not eligible to hold a license issued under this chapter if the
person would be ineligible under Section 2001.154, 2001.202, or
2001.207 to hold a license issued under Chapter 2001.
(b) The commission shall adopt any rules necessary to
implement this section.
Sec. 2001A.105. LICENSE APPLICATION; TERM. (a) An
applicant for a license under this chapter must file with the
commission an application on the form prescribed by the commission.
(b) The license application must include:
(1) the name and address of the applicant and each
other person who has a greater than 10 percent proprietary,
equitable, or credit interest in or who is in any capacity a real
party in interest in the applicant's business as it pertains to this
chapter;
(2) a designation and address of the video gaming
premises or location intended to be covered by the license;
(3) a statement that the applicant complies with the
conditions for eligibility for the license; and
(4) any other information required by commission rule.
(c) A license issued under this chapter expires on the first
anniversary of the date of issuance.
Sec. 2001A.106. BACKGROUND INVESTIGATIONS. (a) Before
issuing a license to a person under this chapter, the commission
shall conduct a background investigation that includes obtaining
criminal history record information as permitted by law of:
(1) an applicant for or holder of a license issued
under this chapter;
(2) a person required to be named in a license
application; and
(3) an employee or other person who works or will work
for a license holder and is required to hold a license under this
chapter or commission rule.
(b) The commission is not required to conduct a background
investigation under Subsection (a) for a person who has undergone
an investigation authorized by Section 2001.3025 that is sufficient
for the person to continue to hold a license under Chapter 2001.
Sec. 2001A.107. LICENSE RENEWAL. The commission shall
renew a license issued under this chapter to a license holder who is
not ineligible to hold the license on payment of the license renewal
fee and on the license holder's compliance with any additional
requirements established by commission rule.
SUBCHAPTER D. REGULATION OF VIDEO GAMING
Sec. 2001A.151. LIMITATION ON NUMBER OF VIDEO GAMING
TERMINALS. A video gaming retailer may operate video gaming
terminals at a premises as follows:
(1) a person who holds a class 1 video gaming retailer
license may operate not more than 30 video gaming terminals at the
premises;
(2) a person who holds a class 2 video gaming retailer
license may operate not more than 60 video gaming terminals at the
premises; and
(3) a person who holds a class 3 video gaming retailer
license may operate not more than 120 video gaming terminals at the
premises.
Sec. 2001A.152. EMPLOYEES. An employee who works in a video
gaming premises must be at least 18 years of age.
Sec. 2001A.153. CREDIT PROHIBITED. (a) A video gaming
retailer may not knowingly accept as payment for play of a video
gaming game any type of consideration borrowed from a person
licensed under this chapter or obtained through a credit card
transaction or similar credit transaction.
(b) This section does not prohibit a video gaming retailer
from:
(1) offering for play a video gaming game on a video
gaming terminal that tallies game credits; or
(2) accepting a player account card for play of a video
gaming game.
Sec. 2001A.154. VIDEO GAMING SYSTEM; INDEPENDENT
LABORATORY TESTING. (a) The commission by rule shall establish
standards and specifications for video gaming systems, network
operating centers, and site controllers in this state as necessary
to protect the public health and safety and to prevent financial
loss to this state. The standards must require a video gaming
manufacturer's video gaming system to:
(1) meet the industry security standards adopted by
commission rule; and
(2) be certified as meeting the standard adopted under
Subdivision (1) by an independent testing laboratory approved by
the commission.
(b) The commission shall monitor and direct any disabling of
video gaming systems or video gaming terminals in this state.
(c) The commission may contract with or otherwise authorize
a video gaming manufacturer or other person to provide monitoring
and reporting information required under this chapter.
(d) A video gaming retailer may operate video gaming
terminals of more than one manufacturer on the retailer's video
gaming premises.
Sec. 2001A.155. NETWORK OPERATING CENTER REQUIREMENTS. (a)
Each video gaming manufacturer that has any of the manufacturer's
video gaming terminals in operation at the video gaming premises of
a video gaming retailer in this state shall provide at the
manufacturer's expense at least one network operating center for
the manufacturer's terminals at the commission's office or another
location authorized by the commission. The manufacturer is not
required to have a separate network operating center for each video
gaming premises at which the manufacturer has video gaming
terminals in operation.
(b) The manufacturer shall allow the commission complete
access to the manufacturer's network operating center at all times.
(c) Each network operating center must provide monitoring,
auditing, reporting, and command and control capabilities for each
video gaming terminal connected to the center, regardless of the
location of the terminal in this state.
Sec. 2001A.156. SITE CONTROLLER REQUIREMENTS. (a) The
video gaming distributor shall provide at each video gaming
premises where the distributor's video gaming terminals are in
operation a site controller to network the distributor's terminals
at the premises and to communicate with the video gaming
manufacturer's network operating center.
(b) The commission by rule may authorize a video gaming
distributor that has in operation at any premises less than the
number of video gaming terminals established by commission rule to
connect the terminals at the premises directly to the
manufacturer's network operating center without the use of a site
controller.
(c) A site controller may be used to:
(1) create, shuffle, store, and configure video gaming
games;
(2) distribute video gaming games to video gaming
terminals;
(3) account for electronic credits purchased, played,
or won playing a video gaming game, including through the use of a
player account card;
(4) exchange credits described by Subdivision (3) for
additional video gaming games; or
(5) allow the play of video gaming authorized by this
chapter.
(d) A site controller must:
(1) at a minimum monitor, track, account for, and
retain data on:
(A) all transactions that occur on the
controller;
(B) amounts paid to play video gaming games;
(C) the amount of consideration paid for play on
each video gaming terminal;
(D) the amount paid out in prizes;
(E) the number of video gaming games played;
(F) for video gaming games that use tickets, an
inventory of current, out-of-stock, and excess game tickets and the
name of the game, serial number of the terminal, time stamp, and
terminal location when a player wins the video gaming game;
(G) out-of-service time periods for any video
gaming equipment;
(H) the time of entry and exit when any
compartment of the terminal is accessed, including main door
access, cash box access, and logic compartment access;
(I) software signature failures and unauthorized
communications with a manufacturer's network operating center,
site controller, or terminal;
(J) payment vouchers dispensed and game payout
percentage; and
(K) any outage of a communications system between
a network operating center and site controller;
(2) cease operation when a main or cash door is opened;
(3) produce reports for the commission as required by
the commission;
(4) prevent an unauthorized person from accessing data
or downloading games to the location level; and
(5) provide a physical and electronic method, through
the use of a password or other method specified by commission rule,
to secure:
(A) video gaming games created, shuffled,
stored, and configured by the site controller; and
(B) accounting system data.
(e) This section does not require the use of a site
controller for the play of a video gaming game and does not prohibit
the use of other methods to create, shuffle, store, configure, or
distribute video gaming games.
(f) The commission may not require a preapproved site
controller to be retested on the basis that the site controller is
used by a video gaming retailer to create or distribute video gaming
games.
Sec. 2001A.157. CENTRAL MONITORING AND CONTROL. (a)
Notwithstanding any other provision of this chapter, the commission
may develop and implement a secure, web-based central reporting
system to gather data from a video gaming manufacturer's video
gaming systems. The cost of the reporting system shall be divided
proportionately between the manufacturers providing video gaming
equipment in this state.
(b) The central system may not limit or preclude potential
video gaming manufacturers or distributors from providing
state-of-the-art industry standard video gaming terminals and
video gaming equipment, such as player tracking systems, accounting
systems, progressive systems, and bonus systems.
Sec. 2001A.158. VIDEO GAMING TERMINAL SPECIFICATIONS. (a)
The commission shall adopt rules for approval of video gaming
terminals, including requirements for video gaming games.
(b) A commission-approved video gaming terminal must meet
the following minimum specifications:
(1) the terminal must:
(A) operate through a player's insertion of a
chip, ticket, voucher, token, or player account card or another
instrument of value that may only be used to purchase a play of a
video gaming game into the video gaming terminal that causes the
video gaming terminal to display credits that entitle the player to
select one or more symbols or numbers or causes the video gaming
terminal to select symbols or numbers;
(B) allow the player to win additional game play
credits, chips, tickets, or tokens based on game rules that
establish the selection of winning combinations of symbols or
numbers and the number of free play credits or tokens to be awarded
for each winning combination;
(C) account for credits purchased, played, or won
playing a video gaming game; and
(D) allow the player at any time to clear all game
play credits and receive a video gaming ticket or other
representation of credits entitling the player to receive the cash
value of those credits;
(2) a surge protector must be installed on the
electrical power supply line to each video gaming terminal, a
battery or equivalent power backup for the electronic meters must
be capable of maintaining the accuracy of all accounting records
and video gaming terminal status reports for a period of 180 days
after power is disconnected from the video gaming terminal, and the
power backup device must be in the compartment specified in
Subdivision (4);
(3) the operation of each video gaming terminal may
not be adversely affected by any static discharge or other
electromagnetic interference;
(4) the main logic boards of all electronic storage
mediums must be located in a separate compartment in or from the
video gaming terminal that is locked and sealed in accordance with
commission rule;
(5) the instructions for play of each game must be
displayed on the video gaming terminal face or screen, including a
display detailing the credits awarded for the occurrence of each
possible winning combination of numbers or symbols;
(6) communication equipment and devices must be
installed to enable each video gaming terminal to communicate with
the site controller or network operating center through the use of a
communications protocol provided by each video gaming manufacturer
and each video gaming distributor, which must include information
retrieval and programs to activate and disable the terminal;
(7) a video gaming terminal may be operated only if
connected to a site controller or network operating center unless
otherwise authorized by this chapter or commission rule, and play
on the terminal may not be conducted unless the terminal is
connected to the site controller or network operating center; and
(8) a video gaming game may not be purchased with and a
video gaming terminal may not be operated through the insertion of
money or negotiable currency.
(c) Nothing in this chapter prohibits a video gaming
terminal from generating or creating graphics and animation to
correspond to, display, or represent, in an entertaining manner,
the outcome of a video gaming game.
Sec. 2001A.159. VIDEO GAMING TERMINAL: TESTING; REPORT.
(a) A video gaming manufacturer shall submit two copies of terminal
illustrations, schematics, block diagrams, circuit analysis,
technical and operation manuals, and any other information
requested by the commission for the purpose of analyzing the video
gaming terminal or other video gaming equipment.
(b) The commission may require a working model of a video
gaming terminal to be provided to the commission for testing unless
the video gaming manufacturer provides a certification from a
commission-approved independent testing laboratory that the video
gaming terminal meets the requirements of this chapter and
commission rule.
(c) The commission may not require a preapproved video
gaming terminal to be retested on the basis that the terminal
creates graphics and animation.
Sec. 2001A.160. VIDEO GAMING TERMINAL REMOVAL. (a) If any
video gaming terminal that has not been approved by the commission
is distributed by a video gaming distributor or operated by a video
gaming retailer or if an approved video gaming terminal
malfunctions, the commission shall require the terminal to be
removed from use and play.
(b) The commission may order that an unapproved video gaming
terminal be seized and destroyed.
(c) The commission may suspend or revoke the license of a
video gaming retailer or of a video gaming distributor for the
distribution, possession, or operation of an unauthorized video
gaming terminal.
(d) A video gaming retailer may retain on the premises of a
video gaming establishment a number of video gaming terminals that
the retailer determines is necessary for spare parts or repair
purposes or as replacements. The retailer must provide to the
commission each month a list of the terminals retained under this
subsection.
Sec. 2001A.161. PRACTICE BY VIDEO GAMING RETAILER. (a) A
video gaming retailer must:
(1) comply with state alcoholic beverage control laws;
(2) at all times maintain sufficient tokens, chips,
tickets, or other representations of value accepted by video gaming
terminals;
(3) promptly report all video gaming terminal
malfunctions and downtime;
(4) prohibit illegal gambling and any related
paraphernalia;
(5) except as otherwise provided by this chapter, at
all times prohibit money lending or other extensions of credit at
the video gaming premises;
(6) supervise employees and activities to ensure
compliance with all commission rules and this chapter; and
(7) maintain an entry log for each video gaming
terminal on the premises and maintain and submit complete records
on receipt of each video gaming terminal on the premises as
determined by the commission.
(b) A video gaming retailer must use secure bill acceptors
that detect and reject counterfeit money.
(c) A video gaming manufacturer must ensure the
communication method used to transmit data from the video gaming
terminals or site controller to the network operating center is
secure by using cellular, DSL, cable, or Internet encryption that
is secure or another method approved by the commission.
Sec. 2001A.162. RESPONSIBILITY FOR VIDEO GAMING
OPERATIONS. (a) A video gaming retailer is responsible for the
management of video gaming game operations, including:
(1) the validation and payment of prizes,
determination of game themes, prizes, bonuses, progressives,
number and placement of video gaming terminals, and individual
payout percentage settings; and
(2) the management of cashiers, food and beverage
workers, floor workers, security personnel, the security system,
building completion, janitorial services, landscape design, and
maintenance.
(b) Nothing in Subsection (a) limits the authority of the
commission, the Department of Public Safety, or another law
enforcement agency to administer and enforce this chapter as
related to video gaming.
(c) In addition to other requirements under this chapter
relating to video gaming, a video gaming retailer at all times
shall:
(1) operate only video gaming terminals that are
distributed by a video gaming distributor and provide a secure
location for the placement, operation, and play of the video gaming
terminals;
(2) prevent any person from tampering with or
interfering with the operation of a video gaming terminal;
(3) ensure that communication technology from the
network operating center to the site controller and video gaming
terminals is connected at all times and prevent any person from
tampering or interfering with the operation of the connection;
(4) ensure that video gaming terminals are in the
sight and control of designated employees of the video gaming
retailer;
(5) monitor video gaming terminals to prevent access
to or play by persons who are younger than 21 years of age or who are
visibly intoxicated;
(6) pay all credits won by a player on presentment of a
valid winning video gaming game ticket;
(7) install, post, and display prominently at the
licensed location redemption information and other informational
or promotional materials as required by the commission;
(8) maintain general liability insurance coverage for
the video gaming terminal establishment and all video gaming
terminals in the amounts required by the commission;
(9) assume liability for money lost or stolen from any
video gaming terminal; and
(10) annually submit an audited financial statement to
the commission in accordance with generally accepted accounting
principles.
Sec. 2001A.163. TECHNICAL STANDARDS FOR VIDEO GAMING
EQUIPMENT. The commission by rule shall establish minimum
technical standards for video gaming equipment that may be operated
in this state.
Sec. 2001A.164. INCIDENT REPORTS. (a) A video gaming
retailer shall record in accordance with commission rules all
unusual occurrences related to gaming activity on the video gaming
premises operated by the retailer.
(b) A video gaming retailer 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
video gaming retailer who investigated the incident.
Sec. 2001A.165. COMMISSION APPROVAL REQUIRED FOR
PROCEDURES AND ACCOUNTING CONTROLS. (a) The commission's approval
is required for all internal procedures and accounting controls of
a video gaming retailer.
(b) The commission by rule shall establish general
accounting and auditing requirements and internal control
standards for video gaming retailers.
Sec. 2001A.166. EMPLOYEE REGISTRY. (a) The commission
shall maintain a registry of individuals on whom the commission has
conducted a criminal history background check and who are approved
to be involved in the conduct of video gaming. An individual listed
in the registry may be involved in the conduct of video gaming at
any location at which video gaming is authorized. The commission
shall maintain the registry in the same manner as the commission
maintains the registry of approved bingo employees under Section
2001.313.
(b) The commission may prohibit an employee from performing
any act relating to video gaming terminals if the commission finds
that the 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
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 a license or approval on commission request;
(6) been prohibited under color of governmental
authority from being present on the premises of any gaming
establishment or any establishment where pari-mutuel wagering is
conducted for any reason relating to improper gambling activity or
for any illegal act;
(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 gaming,
corruption of public officials, or any organized criminal
activities; or
(8) been convicted of any felony or any crime
involving moral turpitude.
(c) The commission may prohibit an employee from performing
any act relating to video gaming terminals based on a revocation or
suspension of any gaming or wagering license or other affirmative
regulatory approval or for any other reason the commission finds
appropriate, including a refusal by a regulatory authority to issue
a license or other affirmative regulatory approval for the employee
to engage in or be involved with the lottery or with regulated
gaming or pari-mutuel wagering in any jurisdiction.
(d) In this section, "employee" includes any person
connected directly with or compensated by a license applicant or
the holder of a license under this chapter as an agent, personal
representative, consultant, or independent contractor for
activities directly related to video gaming operations in this
state.
Sec. 2001A.167. REPORT OF VIOLATIONS. A person who holds a
license under this chapter shall immediately report to the
commission a violation or suspected violation of this chapter or a
rule adopted under this chapter by any license holder, an employee
of the holder, or any person on the retailer's video gaming
premises.
Sec. 2001A.168. SECURITY. (a) A video gaming retailer
shall comply with the following security procedures:
(1) except for a video gaming retailer whose gross
gaming income is less than the minimum amount specified by
commission rule, all video gaming terminals must be continuously
monitored through the use of a closed-circuit television system
that records activity for a continuous 24-hour period and all
videotapes or other media used to store video images shall be
retained for at least 30 days and made available to the commission
on request;
(2) the video gaming retailer must provide to the
commission a security plan for the retailer's video gaming
operations that includes a floor plan of the area where video gaming
terminals are to be operated showing video gaming terminal
locations and security camera mount locations; and
(3) each license holder shall employ at least the
minimum number of private security personnel the commission
determines is necessary to provide for safe and approved operation
of the video gaming premises and the safety and well-being of the
players.
(b) Private security personnel must be present during all
hours of video gaming operations at each retailer's video gaming
premises.
(c) An agent or employee of the commission or the Department
of Public Safety or other law enforcement personnel may be present
at a retailer's video gaming premises at any time.
(d) The commission may adopt rules to impose additional
surveillance and security requirements related to video gaming
premises and the operation of video gaming terminals.
Sec. 2001A.169. COMMISSION RIGHT TO ENTER. The commission
or the commission's representative, after displaying appropriate
identification and credentials, has the free and unrestricted right
to enter the premises involved in operation or support of video
gaming of a person licensed under this chapter and to enter any
other locations involved in operation or support of video gaming at
all times to examine the systems and to inspect and copy the records
of the person pertaining to the operation of video gaming.
Sec. 2001A.170. INDEPENDENT LABORATORY TESTING. (a) The
commission may not approve an independent testing laboratory to
certify a video gaming system under Section 2001A.154 or a video
gaming terminal under Section 2001A.159 if the laboratory is owned
or controlled by a person licensed under this chapter.
(b) This section does not prohibit an applicant or license
holder from paying an independent testing laboratory for testing
that is requested.
SUBCHAPTER E. REVENUE
Sec. 2001A.201. DISTRIBUTION OF VIDEO GAMING REVENUE. (a)
At the times and in the manner prescribed by commission rule, a
video gaming retailer shall:
(1) remit to the commission 20 percent of the gross
gaming income derived from video gaming games operated by the video
gaming retailer; and
(2) distribute 10 percent of the gross gaming income
derived from the video gaming games operated by the video gaming
retailer to:
(A) the licensed authorized organization that
conducts bingo on the premises; or
(B) if more than one licensed authorized
organization is conducting bingo on the premises, the organizations
in equal amounts.
(b) The remainder of the gross gaming income may be retained
by the video gaming retailer.
(c) Except for a video gaming retailer whose gross gaming
income is less than the minimum amount specified by commission
rule, the commission shall require a video gaming retailer to
establish a separate electronic funds transfer account for
depositing money from video gaming operations and making payments
to the commission.
(d) The commission by rule shall establish the procedures
for:
(1) depositing money from video gaming terminal
operations into electronic funds transfer accounts; and
(2) handling money from video gaming terminal
operations.
(e) Unless otherwise directed by the commission, a video
gaming retailer shall maintain in its account this state's share of
the gross gaming income, to be electronically transferred on dates
established by the commission. On a retailer's failure to maintain
this balance, the commission may direct the disabling of all of a
retailer's video gaming terminals until full payment of all amounts
due is made. Interest shall accrue on any unpaid balance at a rate
consistent with the amount charged under Section 111.060, Tax Code.
The interest shall begin to accrue on the date payment is due to the
commission.
(f) In the commission's sole discretion, rather than
directing the disabling of a video gaming retailer's video gaming
terminals under Subsection (e), the commission may elect to impose
an administrative penalty on a retailer in an amount determined by
the commission not to exceed $5,000 for each violation of that
subsection. If the retailer fails to remedy the violation,
including payment of any amounts assessed by or due to this state,
on or before the 30th day after the date the retailer is notified of
the violation, the commission may direct the disabling of the
retailer's video gaming terminals or use any other means for
collection as provided by the penalty chart established by the
commission.
(g) A video gaming retailer is solely responsible for
resolving any income discrepancies between actual money collected
and the gross gaming income reported by the network operating
center or central reporting system established by the commission.
Unless an accounting discrepancy is resolved in favor of the video
gaming retailer, the commission may not make any credit
adjustments. Any accounting discrepancies which cannot otherwise
be resolved shall be resolved in favor of the commission.
(h) A video gaming retailer shall remit payment as directed
by the commission if the electronic transfer of money is not
operational or the commission notifies the retailer that other
remittance is required. The retailer shall report this state's
share of gross gaming income and remit the amount generated from the
terminals during the reporting period.
(i) A licensed authorized organization may only use the
money distributed to the organization under Subsection (a)(2) for
the charitable purposes of the organization that are authorized
under Chapter 2001.
Sec. 2001A.202. COMMISSION EXAMINATION OF FINANCIAL
RECORDS. The commission may examine all accounts, bank accounts,
financial statements, and records in the possession or control of a
person licensed under this chapter or in which the license holder
has an interest. The license holder must authorize and direct all
third parties in possession or control of the accounts or records to
allow examination of any of those accounts or records by the
commission.
Sec. 2001A.203. FINANCIAL INFORMATION REQUIRED. (a) A
video gaming retailer shall furnish to the commission all
information and bank authorizations required to facilitate the
timely transfer of money to the commission.
(b) A video gaming retailer must provide the commission
advance notice of any proposed account changes in information and
bank authorizations to assure the uninterrupted electronic
transfer of money.
(c) The commission is not responsible for any interruption
or delays in the transfer of money. The video gaming retailer is
responsible for any interruption or delay in the transfer of money.
Sec. 2001A.204. STATE VIDEO GAMING ACCOUNT. (a) The state
video gaming account is a special account in the general revenue
fund. The account consists of all revenue received by the
commission from video gaming, fees received under this chapter, and
all money credited to the account from any other fund or source
under law.
(b) Money in the state video gaming account may be used to
pay the costs incurred by the commission in the operation and
administration of video gaming. The remainder of the account shall
be deposited to the credit of the general revenue fund.
SUBCHAPTER F. OFFENSES; PENALTIES
Sec. 2001A.251. MANIPULATION OR TAMPERING. (a) A person
commits an offense if the person intentionally or knowingly:
(1) manipulates the outcome of a video gaming game or
the amount of a video gaming prize; or
(2) tampers with, damages, defaces, renders
inoperable, or manipulates the operation of a video gaming terminal
or other device by physical, electronic, or other means, other than
in accordance with commission rules.
(b) An offense under this section is a felony of the third
degree.
Sec. 2001A.252. VIDEO GAMING BY INDIVIDUAL YOUNGER THAN 21
YEARS OF AGE. (a) A person commits an offense if the person
intentionally or knowingly:
(1) sells or offers to sell a play of a video gaming
game to an individual the person knows is younger than 21 years of
age or permits the individual to purchase a play of a video gaming
game; or
(2) pays money or issues a credit slip or other
winnings for a play of a video gaming game to an individual the
person knows is younger than 21 years of age.
(b) An individual who is younger than 21 years of age
commits an offense if the individual:
(1) purchases a play of a video gaming 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 purchase a play of a video gaming game.
(c) An offense under Subsection (a) is a Class B
misdemeanor.
(d) An offense under Subsection (b) is a misdemeanor
punishable by a fine not to exceed $250.
(e) It is a defense to the application of Subsection (b)
that the individual younger than 21 years of age is participating in
an inspection or investigation on behalf of the commission or other
appropriate governmental entity regarding compliance with this
section.
Sec. 2001A.253. UNAUTHORIZED OPERATION, USE, OR POSSESSION
OF VIDEO GAMING TERMINAL. (a) A person may not operate, use, or
possess a video gaming terminal unless the operation, use, or
possession is expressly authorized by this chapter or other law.
(b) Except for transport to or from licensed video gaming
premises and as provided by this chapter or other law, a person
commits an offense if the person operates, uses, or possesses any
video gaming terminal that is not connected to a site controller or
network operating center as required by this chapter or commission
rule. An offense under this subsection is a felony of the third
degree.
(c) It is an exception to the application of Subsection (b)
that the commission possesses video gaming terminals for study and
evaluation or that a video gaming retailer, video gaming
distributor, or video gaming manufacturer stores or possesses a
video gaming terminal as authorized by the commission.
Sec. 2001A.254. OTHER OFFENSES; REVOCATION OF LICENSE. (a)
A person commits an offense and the person's license is subject to
revocation under this chapter if the person knowingly:
(1) makes a false statement or material omission in an
application for a license under this chapter;
(2) fails to maintain records that fully and
accurately record each transaction connected with the video gaming
operations, the leasing of premises to be used for video gaming, or
the manufacture, sale, or distribution of video gaming equipment;
(3) falsifies or makes a false entry in a book or
record if the entry relates to video gaming, the disposition of
video gaming proceeds, or the gross receipts from the manufacture,
sale, or distribution of video gaming equipment;
(4) diverts or pays a portion of the gross gaming
income to a person except in furtherance of one or more of the
lawful purposes provided by this chapter; or
(5) violates this chapter or a term of a license issued
under this chapter.
(b) An offense under Subsection (a)(2), (3), or (5) is a
Class A misdemeanor, unless it is shown on the trial of the offense
that the person has been convicted previously under this section,
in which event the offense is a state jail felony. An offense under
Subsection (a)(1) or (4) is a Class A misdemeanor.
(c) A person whose license is revoked under this section may
not apply for another license under this chapter before the first
anniversary of the date of revocation.
Sec. 2001A.255. DISCIPLINARY ACTION. (a) The commission
may refuse to issue a license, may revoke, suspend, or refuse to
renew a license, or may reprimand a license holder for a violation
of this chapter, other state law, or commission rule.
(b) If the commission proposes to take action against a
license holder or applicant under Subsection (a), the license
holder or applicant is entitled to notice and a hearing.
(c) The commission may place on license probation subject to
reasonable conditions a person whose license is suspended under
this section.
(d) The commission by rule shall develop a system for
monitoring a license holder's compliance with this chapter.
Sec. 2001A.256. EFFECT OF DENIAL OF LICENSE. (a) A person
whose application for a license has been denied may not have any
interest in or association with a video gaming retailer or any other
business conducted in connection with video gaming without prior
approval of the commission.
(b) Any contract between a person holding a license and a
person denied a license must be terminated immediately on receipt
of notice from the commission. If the person denied a license has
previously been granted a temporary license, the temporary license
expires immediately on denial of the permanent license.
(c) 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. 2001A.257. SUMMARY SUSPENSION OF VIDEO GAMING
RETAILER; TERMINAL DISABLED. (a) The commission may summarily
suspend the license of a video gaming retailer without notice or a
hearing if the commission finds the action is necessary to maintain
the integrity, security, honesty, or fairness of the operation or
administration of video gaming or to prevent financial loss to this
state and:
(1) the retailer fails to deposit money received from
video gaming terminal operations as required by this chapter or
commission rule;
(2) an event occurs that would render the retailer
ineligible for a license under this subchapter;
(3) the retailer refuses to allow the commission, the
commission's agents, or the state auditor, or their designees, to
examine the retailer's books, records, papers, or other objects as
required under this chapter or commission rule; or
(4) the director learns the retailer failed to
disclose information that would, if disclosed, render the retailer
ineligible for a license under this chapter.
(b) A summary suspension under this section must comply with
the notice and procedure requirements provided by Section 466.160,
Government Code.
(c) The commission may direct the disabling of a video
gaming terminal operated by a video gaming retailer under this
chapter at the time:
(1) a proceeding to summarily suspend the retailer's
license is initiated;
(2) the commission discovers the retailer failed to
deposit money received from video gaming terminal operations as
required if the license is being summarily suspended under this
section; or
(3) an act or omission occurs that, under commission
rule, justifies the termination of video gaming operations to:
(A) protect the integrity of the video gaming or
the public health, welfare, or safety; or
(B) prevent financial loss to this state.
(d) The commission shall immediately direct the disabling
of a video gaming terminal if necessary to protect the public
health, welfare, or safety.
Sec. 2001A.258. INSPECTION OF PREMISES. The commission,
its officers or agents, or a state, municipal, or county peace
officer may enter and inspect the contents of premises where:
(1) video gaming is being conducted or is intended to
be conducted; or
(2) video gaming equipment is found.
Sec. 2001A.259. INJUNCTION. (a) If the commission has
reason to believe that this chapter has been or is about to be
violated, the commission may petition a court for injunctive relief
to restrain the violation.
(b) Venue for an action seeking injunctive relief is in a
district court in Travis County.
(c) If the court finds that this chapter has been violated
or is about to be violated, the court shall issue a temporary
restraining order and, after due notice and hearing, a temporary
injunction, and after a final trial, a permanent injunction to
restrain the violation.
(d) If the court finds that this chapter has been knowingly
violated, the court shall order all proceeds from the illegal video
gaming to be forfeited to the commission as a civil penalty.
Sec. 2001A.260. ADMINISTRATIVE PENALTY. (a) The
commission may impose an administrative penalty against a person
who violates this chapter or a rule or order adopted by the
commission under this chapter in the same manner as the commission
imposes an administrative penalty under Subchapter M, Chapter 2001.
(b) Except as otherwise provided by this chapter, the amount
of the administrative penalty may not exceed $1,000 for each
violation. Each day a violation continues or occurs may be
considered a separate violation for purposes of imposing a penalty.
(c) In determining the amount of the penalty, the director
shall consider:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(d) The notice, hearing, and appeal for an administrative
penalty assessed under this section shall be provided or conducted
in the same manner as notice, hearing, and appeals are provided or
conducted under Subchapter M, Chapter 2001, specifically Sections
2001.603 through 2001.610.
Sec. 2001A.261. CIVIL PENALTY. (a) A person who violates
this chapter or a rule adopted by the commission under this chapter
is liable to this state for a civil penalty not to exceed $5,000 for
each day of violation.
(b) At the request of the commission, the attorney general
shall bring an action to recover a civil penalty authorized by this
section. The attorney general may recover reasonable expenses,
including attorney's fees, incurred in recovering the civil
penalty.
Sec. 2001A.262. REMEDIES NOT EXCLUSIVE. The commission may
suspend or revoke a license under this subchapter, impose an
administrative or civil penalty under this subchapter, or both,
depending on the severity of the violation.
SUBCHAPTER G. RESPONSIBLE GAMING
Sec. 2001A.301. DEFINITIONS. In this subchapter:
(1) "Fully executed gaming transaction" means an
activity involving a video gaming terminal or video gaming
equipment that occurs on the gaming floor of a video gaming premises
and that results in an individual obtaining any money or thing of
value from, or being owed any money or thing of value by, a video
gaming retailer.
(2) "Gaming activity" means an activity involving or
related to the play of video gaming terminals, including player
club memberships or promotional activities.
(3) "Self-excluded person" means a person whose name
and identifying information is included, at the person's own
request, on the self-exclusion list.
(4) "Self-exclusion list" means a list maintained by
the commission of names and identifying information of persons who,
under this subchapter, have voluntarily agreed to be excluded from
a video gaming premises and all gaming activities at a video gaming
premises and to be prohibited from collecting any winnings,
recovering any losses, or accepting complimentary gifts or services
or any other thing of value at a video gaming premises.
(5) "Winnings" means any money or thing of value
received from or owed by a video gaming retailer as a result of a
fully executed gaming transaction.
Sec. 2001A.302. UNDERAGE PERSONS EXCLUDED. (a) An
individual younger than 18 years of age may not enter or be on the
gaming floor of a video gaming premises.
(b) An individual younger than 21 years of age may not:
(1) whether personally or through an agent, operate,
use, play, or place a wager on a video gaming game at a video gaming
premises;
(2) receive check cashing privileges, be rated as a
player, or receive any complimentary service, item, or discount as
a result of, or in anticipation of, video gaming activity; or
(3) in any manner or in any proceeding, whether
personally or through an agent, collect winnings or recover losses
arising as a result of any video gaming activity.
(c) Winnings incurred by an individual younger than 21 years
of age shall be remitted to the commission. For the purposes of
this subsection, winnings issued to, found on or about, or redeemed
by an individual younger than 21 years of age shall be presumed to
constitute winnings subject to remittance to the commission.
(d) A person holding a license issued by the commission may
not permit or enable an individual to engage in conduct that
violates Subsection (a), (b), or (c).
(e) A video gaming retailer shall establish procedures
designed to prevent violations of this section and shall submit a
copy of the procedures to the commission not later than the 30th day
before the date the retailer begins video gaming operations at the
video gaming premises. The commission shall provide to a video
gaming retailer written notification of any deficiencies in the
plan, and the retailer may submit revisions of the plan to the
commission. The video gaming retailer may not begin video gaming
operations until the commission approves the retailer's
procedures. Amendments to these procedures must be submitted to and
approved by the commission before implementation.
(f) A video gaming retailer may be subject to administrative
sanctions if a person engages in conduct that violates Subsection
(a), (b), or (c) at its video gaming premises.
(g) A video gaming retailer who violates this subchapter may
be held jointly and severally liable for the violation.
(h) A video gaming retailer shall post signs that include a
statement substantially similar to the following: "It is unlawful
for any person under 21 years of age to engage in any gaming
activities. Individuals violating this prohibition will be removed
and may be subject to arrest for criminal trespass." The complete
text of the sign shall be submitted to and approved by the
commission as part of the procedures required under this section.
The signs shall be prominently posted within 50 feet of each
entrance and exit of the gaming floor.
(i) It is an affirmative defense to administrative
penalties imposed for violations of this section if it is shown by a
preponderance of the evidence that:
(1) the video gaming retailer or the retailer's agent
verified the underage person's age using identification supplied by
the person;
(2) the identification supplied by the person included
a driver's license or identification card issued by this state,
another state, or an agency of the United States;
(3) the driver's license or identification card
included a photograph of the person; and
(4) the driver's license or identification card
reasonably appeared on its face to be valid.
Sec. 2001A.303. COMMISSION EXCLUSION OR EJECTION FROM VIDEO
GAMING PREMISES; EXCLUSION LIST. (a) The legislature finds that
the exclusion or ejection of certain persons from video gaming
premises is necessary to maintain strict and effective regulation
of video gaming. The commission by rule shall provide for a list of
persons who are to be excluded or ejected from a video gaming
premises. Persons included on the exclusion list shall be
identified by name and physical description. The commission shall
publish the exclusion list on its Internet website, and shall
transmit a copy of the exclusion list periodically to video gaming
retailers, as the list is initially issued and as it is revised. A
video gaming retailer shall take steps necessary to ensure that all
its key video gaming personnel and video gaming employees are aware
of and understand the exclusion list and its function, and that all
its key video gaming personnel and video gaming employees are kept
aware of the content of the exclusion list.
(b) The exclusion list may include any person whose presence
at a video gaming premises the commission determines poses a threat
to the interests of this state, to achieving the intents and
purposes of this chapter, or to the strict and effective regulation
of video gaming. In determining whether to include a person on the
exclusion list, the commission may consider:
(1) any prior conviction of the person of:
(A) a crime that is a felony under the laws of
this state, another state, or the United States;
(B) a crime involving moral turpitude; or
(C) a violation of the gaming laws of this state,
another state, or the United States;
(2) a violation or a conspiracy to violate by the
person of any provision of this chapter, including:
(A) a failure to disclose an interest in a gaming
facility for which the person must obtain a license;
(B) purposeful evasion of taxes or fees; or
(C) a violation of an order of the commission or
of any other governmental agency that warrants exclusion or
ejection of the person from a video gaming premises;
(3) whether the person has pending charges or
indictments for a gaming or gambling crime or a crime related to the
integrity of gaming operations in any state;
(4) whether the person's conduct or reputation is such
that the person's presence at a video gaming premises may call into
question the honesty and integrity of the video gaming operations,
interfere with the orderly conduct of the video gaming operations,
or adversely affect public confidence and trust that video gaming
is free from criminal or corruptive elements;
(5) whether the person is a career or professional
offender whose presence at a video gaming premises would be adverse
to the interest of licensed gaming in this state;
(6) whether the person has a known relationship or
connection with a career or professional offender whose presence at
a video gaming premises would be adverse to the interest of licensed
gaming in this state;
(7) whether the commission has suspended the person's
gaming privileges;
(8) whether the commission has revoked the person's
licenses related to video gaming;
(9) whether the commission determines that the person
poses a threat to the safety of patrons or employees of a video
gaming premises; and
(10) whether the person has a history of conduct
involving the disruption of gaming operations at a video gaming
premises.
Sec. 2001A.304. NOTIFICATION OF EXCLUSION. (a) The
commission shall notify a person of the commission's intent to
include the person on the exclusion list created under Section
2001A.303. The notice shall be provided by personal service, by
certified mail to the person's last known address, or, if service
cannot be accomplished by personal service or certified mail, by
daily publication for two weeks in a newspaper of general
circulation in the county in which the person's last known address
is located and in a newspaper of general circulation in each county
in which a video gaming premises is located.
(b) A person who receives notice of the commission's intent
to include the person on the exclusion list is entitled to an
adjudication hearing under Chapter 2001, Government Code, except as
provided by this section, in which the person may demonstrate why
the person should not be included on the exclusion list. The person
shall request the adjudication hearing not later than the 30th day
after:
(1) the date the person receives the notice by
personal service or certified mail; or
(2) the date of the last newspaper publication of the
notice.
(c) If the adjudication hearing or any appeal under Chapter
2001, Government Code, results in an order that the person should
not be included on the exclusion list, the commission shall:
(1) publish a revised exclusion list that does not
include the person; and
(2) notify video gaming retailers that the person has
been removed from the exclusion list.
(d) A video gaming retailer shall take all steps necessary
to ensure its key video gaming personnel and video gaming employees
are made aware that the person has been removed from the exclusion
list.
(e) This section does not apply to the self-exclusion list.
Sec. 2001A.305. REQUEST FOR SELF-EXCLUSION. (a) A person
requesting placement on the self-exclusion list shall submit, in
person or as provided by commission rule, a completed written
request to the commission on a form prescribed by the commission.
(b) A request for self-exclusion must include the person's:
(1) name, including any aliases or nicknames;
(2) date of birth;
(3) address of current residence;
(4) telephone number;
(5) social security number, if voluntarily provided in
accordance with any applicable federal law;
(6) physical description, including height, weight,
gender, hair color, eye color, and any other physical
characteristic that may assist in the identification of the person;
and
(7) any other information required by commission rule.
(c) Not later than the 30th day after any change in the
information provided in Subsection (b), the self-excluded person
must update the changed information using a form prescribed by the
commission.
(d) A person may request self-exclusion until:
(1) the first anniversary of the date the person is
placed on the self-exclusion list;
(2) the fifth anniversary of the date the person is
placed on the self-exclusion list; or
(3) the person's death.
(e) A request for self-exclusion must include a signed
release statement that:
(1) acknowledges that the request for self-exclusion
has been made voluntarily;
(2) certifies that the information provided in the
request for self-exclusion is true and accurate;
(3) acknowledges that the person requesting
self-exclusion is a problem gambler;
(4) acknowledges that:
(A) a person requesting a lifetime exclusion may
not request removal from the self-exclusion list; and
(B) a person requesting a one-year or five-year
exclusion:
(i) will remain on the self-exclusion list
until a request for removal is approved; and
(ii) may not request removal from the
self-exclusion list until the requested exclusion period ends;
(5) acknowledges that a person on the self-exclusion
list who is discovered on the gaming floor or engaging in gaming
activities at any video gaming premises is subject to removal and to
arrest for criminal trespass; and
(6) releases, indemnifies, holds harmless, and
forever discharges this state, the commission, and all video gaming
retailers from any claims, damages, losses, expenses, or liability
arising out of, by reason of, or relating to the self-excluded
person or to any other party for any harm, monetary or otherwise,
that may be proximately caused by:
(A) the failure of a video gaming retailer to
withhold gaming privileges from or restore gaming privileges to a
person who is on the self-exclusion list at the time of the failure;
or
(B) a video gaming retailer otherwise permitting
or not permitting a self-excluded person to engage in gaming
activity at a video gaming premises while on the self-exclusion
list.
(f) The exclusion of a person who requests self-exclusion
for one year or five years remains in effect unless, after the end
of the self-exclusion period, the self-excluded person requests
removal from the commission's self-exclusion list as provided by
Section 2001A.308. The exclusion terminates on the date the
commission removes the person's name from the self-exclusion list.
(g) A person submitting a self-exclusion request must
present a government-issued identification containing the person's
signature and photograph when the person submits the request.
(h) The commission may require a person requesting
self-exclusion under this subchapter to have the person's
photograph taken by the commission or an agent of the commission on
the commission's acceptance of the person's request to be on the
list.
Sec. 2001A.306. SELF-EXCLUSION LIST; CONFIDENTIALITY. (a)
The commission shall maintain the self-exclusion list and shall
notify by first class mail or direct electronic transmission each
video gaming retailer of any addition to or deletion from the list
not later than the fifth business day after the date the commission
verifies the information received under this subchapter.
(b) The notice provided to video gaming retailers by the
commission must include:
(1) the person's identifying information specified by
Section 2001A.305(b); and
(2) a copy of the person's photograph, if any, taken by
the commission.
(c) The notice provided to video gaming retailers by the
commission concerning a person whose name has been removed from the
self-exclusion list must include the name and date of birth of the
person.
(d) A video gaming retailer shall maintain a copy of the
self-exclusion list and establish procedures to ensure that the
copy of the self-exclusion list is updated and that all appropriate
employees and agents of the video gaming retailer are notified of
any addition to or deletion from the list not later than the fifth
business day after the day notice is mailed or transmitted
electronically to the video gaming retailer under Subsection (a).
(e) Information furnished to or obtained by the commission
under this subchapter is confidential and may not be disclosed
except in accordance with this subchapter.
(f) Except as provided by this subsection, a video gaming
retailer or an employee or agent of the retailer may not disclose
the name of, or any information about, a person who has requested
self-exclusion to anyone other than employees and agents of the
video gaming retailer whose duties and functions require access to
the information. A video gaming retailer may disclose the identity
of a self-excluded person to appropriate employees of other video
gaming retailers in this state or affiliated video gaming entities
in other jurisdictions for the limited purpose of assisting in the
proper administration of responsible gaming programs.
(g) A self-excluded person may not in any manner or in any
proceeding collect any winnings or recover any losses arising as a
result of any video gaming activity that occurs during the period
that the person is on the self-exclusion list.
(h) Winnings incurred by a self-excluded person shall be
remitted to the commission. For the purposes of this subsection,
winnings issued to, found on or about, or redeemed by a
self-excluded person shall be presumed to constitute winnings
subject to remittance to the commission.
Sec. 2001A.307. DUTIES OF VIDEO GAMING RETAILERS REGARDING
SELF-EXCLUDED PERSONS. (a) A video gaming retailer shall train its
employees and establish procedures designed to:
(1) identify a self-excluded person who is present at
the retailer's video gaming premises and, on identification,
immediately notify the following:
(A) employees of the retailer whose duties
include the identification and removal of self-excluded persons; or
(B) commission agents or a peace officer at the
premises;
(2) immediately notify the Department of Public Safety
when a self-excluded person is discovered on the retailer's video
gaming premises or engaging in video gaming activities;
(3) refuse wagers from and deny video gaming
privileges to a self-excluded person;
(4) deny check cashing privileges, player club
membership, complimentary goods and services, junket
participation, and other similar privileges and benefits to a
self-excluded person;
(5) ensure that a self-excluded person does not
receive, either from the retailer or an agent of the retailer,
junket solicitations, targeted mailings, telemarketing promotions,
player club materials, or other promotional materials relating to
video gaming activities at the retailer's video gaming premises;
(6) comply with Section 2001A.306(d); and
(7) disseminate written materials to patrons
explaining the self-exclusion program.
(b) A video gaming retailer shall submit a copy of its
procedures and training materials established under Subsection (a)
to the commission for review and approval not later than the 30th
day before the date the retailer begins gaming operations at the
video gaming premises. The commission shall notify the video
gaming retailer in writing of any deficiencies in the procedures
and training materials, and the retailer may submit amendments to
the procedures and training materials to the commission. A video
gaming retailer may not begin video gaming operations until the
commission approves the procedures and training.
(c) A video gaming retailer shall submit amendments to the
procedures and training materials required under Subsection (b) to
the commission for review and approval not later than the 30th day
before the intended implementation date of the amendments. The
video gaming retailer may implement the amendments on the intended
implementation date unless the video gaming retailer receives a
notice under Subsection (d) objecting to the amendments.
(d) If during the review period prescribed by Subsection (c)
the commission determines that the amendments to the procedures and
training materials will not promote the prevention of gaming by
self-excluded persons or assist in the proper administration of the
self-exclusion program, the commission may, by written notice to
the video gaming retailer, object to the amendments. The objection
must:
(1) specify the nature of the objection and, when
possible, an acceptable alternative; and
(2) direct that the amendments not be implemented
until approved by the commission.
(e) If the commission objects to amendments to the
procedures and training materials under Subsection (d), the video
gaming retailer may submit revised amendments not later than the
30th day after the day the retailer receives the written notice of
objection from the commission. The video gaming retailer may
implement the amendments on the 30th day following the submission
of the revisions unless it receives written notice under Subsection
(d) objecting to the amendments.
(f) A video gaming retailer shall post signs at all
entrances to the retailer's video gaming premises indicating that a
person who is on the self-exclusion list will be subject to arrest
for trespassing if the person is on the video gaming premises or
engaging in video gaming activities. The text and font size of the
signs shall be submitted for approval to the commission under the
procedures specified by Subsection (b).
(g) The self-exclusion list is confidential, and any
distribution of the list to an unauthorized source constitutes a
violation of this subchapter.
(h) A video gaming retailer shall report the discovery of a
self-excluded person on the retailer's video gaming premises or
engaging in gaming activities to the commission within 24 hours of
the discovery.
Sec. 2001A.308. REMOVAL FROM SELF-EXCLUSION LIST. (a) A
person who requests self-exclusion for a one-year or five-year
period may, after the end of the self-exclusion period, request
removal of the person's name from the self-exclusion list by
submitting a completed request for removal as required by
Subsections (b) and (c). The request must be made in person unless
the commission provides otherwise by rule.
(b) A self-excluded person's request for removal from the
self-exclusion list must include:
(1) the person's identifying information specified by
Section 2001A.305(b); and
(2) the person's signature, indicating acknowledgment
of the following statement:
"I certify that the information that I have provided is true
and accurate. I am aware that my signature constitutes a revocation
of my previous request for self-exclusion, and I authorize the
Texas Lottery Commission to permit all video gaming retailers in
this state to reinstate my gaming privileges at video gaming
premises."
(c) A person submitting a request for removal from the
self-exclusion list must present a government-issued
identification containing the person's signature and photograph
when the person submits the request. Not earlier than the fifth
business day after the date the request is submitted, the person
submitting the request shall:
(1) return to the commission office where the request
was submitted;
(2) present a government-issued identification
containing the person's signature and photograph; and
(3) sign the request a second time.
(d) Not later than the fifth business day after the date the
person requesting removal from the self-exclusion list signs the
request for the second time, the commission shall remove the
person's name from the self-exclusion list and notify each video
gaming retailer of the removal.
Sec. 2001A.309. EXCEPTION. A self-excluded person is not
prohibited from being at a video gaming premises if:
(1) the individual is carrying out the duties of
employment or incidental activities related to employment;
(2) the video gaming retailer's security personnel and
any agent of the commission located at the video gaming premises
have received prior notice;
(3) access to the video gaming premises is limited to
the time necessary to complete the individual's assigned duties;
and
(4) the self-excluded individual does not otherwise
engage in any gaming activities.
SECTION 3. Section 2001.3025, Occupations Code, is amended
to read as follows:
Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION. (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 investigation of:
(1) an applicant for or holder of a license issued
under this chapter;
(2) a person required to be named in a license
application; or
(3) an employee or other person who works or will work
for a license holder and who is required by another provision of
this chapter to undergo a criminal background check.
(b) The commission is not required to conduct a criminal
background check under Subsection (a) for a person who has
undergone an investigation authorized by Section 2001A.106 that is
sufficient for the person to continue to hold a license under
Chapter 2001A.
SECTION 4. Section 411.108(a-1), Government Code, is
amended to read as follows:
(a-1) The Texas Lottery Commission is entitled to obtain
from the department criminal history record information maintained
by the department that relates to:
(1) a person licensed under Chapter 2001, Occupations
Code, or described by Section 2001.3025, Occupations Code; or
(2) a person holding or applying for a license under
Chapter 2001A, Occupations Code.
SECTION 5. Section 466.024(b), Government Code, is amended
to read as follows:
(b) The commission shall adopt rules prohibiting the
operation of any game using a video lottery machine or video gaming
machine, except in accordance with Chapter 2001A, Occupations Code.
SECTION 6. 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 2001A, Occupations
Code;
(4) consisted entirely of participation in the state
lottery authorized by [the State Lottery Act (]Chapter 466,
Government Code[)];
(5) [(4)] was permitted under the Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes); or
(6) [(5)] consisted entirely of participation in a
drawing for the opportunity to participate in a hunting, fishing,
or other recreational event conducted by the Parks and Wildlife
Department.
SECTION 7. Section 47.09, Penal Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code; [or]
(C) Chapter 2001A, Occupations Code; or
(D) the Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes);
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
(c) Subsection (a)(1)(C) applies to a person manufacturing,
possessing, or operating a gambling device under a license or other
authorization of the Texas Lottery Commission under Chapter 2001A,
Occupations Code.
SECTION 8. Chapter 47, Penal Code, is amended by adding
Section 47.095 to read as follows:
Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
a defense to prosecution under this chapter that a person sells,
leases, transports, possesses, stores, or manufactures a gambling
device with the authorization of the Texas Lottery Commission under
Chapter 2001A, Occupations Code, for transportation in interstate
or foreign commerce.
SECTION 9. (a) As soon as practicable after the effective
date of this Act, but not later than October 1, 2013, the Texas
Lottery Commission shall adopt the rules necessary to implement
video gaming in accordance with this section and Chapter 2001A,
Occupations Code, as added by this Act.
(b) Before the constitutional amendment authorizing the
establishment of video gaming operations in this state and
providing that certain federally recognized Indian tribes are not
prohibited from conducting video gaming on certain Indian lands
proposed by the 83rd Legislature, Regular Session, 2013, is
submitted to the voters, the Texas Lottery Commission may:
(1) expend money from the commission's appropriation
for the 2014-2015 state fiscal biennium for purposes of conducting
the pre-implementation activities necessary to promptly establish
video gaming in this state in accordance with Chapter 2001A,
Occupations Code, as added by this Act;
(2) request and receive information related to
applications for licensing and testing for video gaming equipment
as authorized under Chapter 2001A, Occupations Code, as added by
this Act; or
(3) develop and approve forms necessary for licensing
persons to conduct video gaming and for testing video gaming
equipment.
(c) Notwithstanding Section 466.355, Government Code, the
money authorized to be expended under this section may be withdrawn
from the state lottery account to fund the establishment of video
gaming.
(d) Notwithstanding any other law, the following provisions
apply to procedures for adoption of the rules required by
Subsection (a) of this section:
(1) the Texas Lottery Commission must give not less
than 15 days' notice of its intent to adopt a rule under this
section before adopting the rule;
(2) a rule adopted under this section takes effect on
the date it is filed in the office of the secretary of state; and
(3) the commission shall notify all holders of a
license issued under Section 10 of this Act of the adoption of a
rule under this section.
SECTION 10. (a) Notwithstanding Chapter 2001A, Occupations
Code, as added by this Act, and except as otherwise provided by this
section, on or after the effective date of this Act, the Texas
Lottery Commission shall:
(1) issue a provisional video gaming manufacturer
license to an applicant who:
(A) holds a manufacturer's license issued under
Chapter 2001, Occupations Code;
(B) is eligible to hold a license under Section
2001A.102, Occupations Code, as added by this Act;
(C) files with the commission on the form
required by the commission an application for a video gaming
manufacturer license; and
(D) pays the required application and license
fees;
(2) issue a provisional video gaming distributor
license to a person who:
(A) holds a distributor's license issued under
Chapter 2001, Occupations Code;
(B) is eligible to hold a license under Section
2001A.102, Occupations Code, as added by this Act;
(C) files with the commission on the form
required by the commission an application for a video gaming
distributor license; and
(D) pays the required application and license
fees;
(3) issue a provisional video gaming retailer license
to a person who:
(A) is a licensed commercial lessor or a licensed
authorized organization under Chapter 2001, Occupations Code;
(B) is eligible to hold a license under Section
2001A.101, Occupations Code, as added by this Act;
(C) files with the commission on the form
required by the commission an application for a video gaming
retailer license; and
(D) pays the required application and license
fees; and
(4) issue a provisional video gaming employee license
to a person who:
(A) is listed in the registry of approved bingo
workers maintained as required under Section 2001.313, Occupations
Code;
(B) is eligible to hold a license under Chapter
2001A, Occupations Code, as added by this Act;
(C) files with the commission on the form
required by the commission an application for a video gaming
employee license; and
(D) pays the required application and license
fees.
(b) Notwithstanding Chapter 2001A, Occupations Code, as
added by this Act, and except as otherwise provided by this section,
during the period that begins on the effective date of this Act and
ends on a date determined by the Texas Lottery Commission that is
not less than 18 months or more than 36 months after the effective
date of this Act, the commission shall:
(1) approve for use in this state network operating
centers, site controllers, video gaming terminals, and video gaming
equipment that meets the standards established under the laws of
another state, the United States, or the National Indian Gaming
Commission unless the commission determines the licensing
standards are insufficient to protect the public health and safety
and prevent financial loss to this state; and
(2) issue a reciprocal license to a video gaming
manufacturer who:
(A) is licensed as a video gaming manufacturer
under the laws of another state unless the commission determines
the licensing standards are insufficient to protect the public
health and safety and prevent financial loss to this state;
(B) submits a letter from an independent testing
laboratory approved by the commission that describes in detail the
video gaming equipment the manufacturer is seeking to deploy in
this state and certifies that the equipment has undergone
independent tests performed by the laboratory; and
(C) submits documentation from the independent
testing laboratory that verifies the manufacturer's equipment
meets the standards established under the laws of another state,
the United States, or the National Indian Gaming Commission.
(c) The Texas Lottery Commission shall establish the term of
a provisional license issued under Subsection (a) of this section
or a reciprocal license issued under Subsection (b) of this
section, which may not be less than 18 months. The commission by
rule shall establish timelines for license holders who hold a
provisional or reciprocal license issued under this section to
comply with the requirements of Chapter 2001A, Occupations Code, as
added by this Act, and commission rules. The rules must allow
license holders at least six months to comply with the rules and
requirements.
(d) Notwithstanding Chapter 2001A, Occupations Code, as
added by this Act, during the provisional period specified by the
commission, which may not be less than 18 months or more than 36
months after the effective date of this Act, a video gaming retailer
must obtain video gaming equipment and video gaming terminals from
a video gaming distributor who holds a bingo distributor's license
issued under Chapter 2001, Occupations Code.
(e) Notwithstanding Chapter 2001A, Occupations Code, as
added by this Act, or any other law, a video gaming manufacturer,
video gaming distributor, or applicant for a video gaming
distributor or manufacturer license may display video gaming
equipment in this state before the effective date of this Act if:
(1) the video gaming equipment is disabled for
marketing purposes so that the equipment does not accept or
dispense money or pay out video gaming tickets or the equipment
contains only demonstration software that cannot be disabled; and
(2) for a trade show or similar event, the Texas
Lottery Commission:
(A) is notified in advance of the proposed event
of:
(i) the date and location of the event;
(ii) the model and serial number of each
item of video gaming equipment to be displayed;
(iii) the manner of transport of each item
to be displayed; and
(iv) a description of how the item will at
all times be possessed by and be under the control of the applicant
or license holder; and
(B) approves the display of the equipment.
SECTION 11. The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before the effective date of
this Act if any element of the offense was committed before that
date.
SECTION 12. (a) Sections 1 through 8 of this Act take
effect on the date the constitutional amendment authorizing the
legislature to legalize the operation of video gaming in this state
by persons and organizations licensed to conduct bingo or lease
bingo premises and providing that federally recognized Indian
tribes are not prohibited from conducting video gaming on certain
Indian lands proposed by the 83rd Legislature, Regular Session,
2013, is approved by the voters. If that amendment is not approved
by the voters, Sections 1 through 8 of this Act have no effect.
(b) Sections 9 through 11 of this Act and this section take
effect immediately if this Act receives a vote of two-thirds of all
the members elected to each house, as provided by Section 39,
Article III, Texas Constitution. If this Act does not receive the
vote necessary for immediate effect, Sections 9 through 11 of this
Act and this section take effect September 1, 2013.