85R9193 GCB-D     By: Gutierrez H.B. No. 4136       A BILL TO BE ENTITLED   AN ACT   relating to the operation of casino games at 12 casinos in this   state by licensed persons in counties that have approved casino   gaming; requiring occupational licenses or certifications;   creating criminal offenses and providing other penalties;   authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle A, Title 13, Occupations Code, is   amended by adding Chapter 2006 to read as follows:   CHAPTER 2006.  CASINO GAMING   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 2006.001.  DEFINITIONS. In this chapter:                (1)  "Casino game" means any game of chance, including   a game of chance in which the outcome may be partially determined by   skill or ability, that involves the making of a bet, as defined by   Section 47.01, Penal Code.                (2)  "Casino gaming" means the conduct of casino games   authorized under this chapter.                (3)  "Casino gaming manager" means a person certified   under this chapter to manage casino gaming operations at a location   authorized under this chapter to conduct casino gaming in this   state.                (4)  "Commission" means the Texas Lottery Commission.                (5)  "Executive director" means the executive director   of the commission.                (6)  "Gaming vendor" means a person licensed under this   chapter to provide, maintain, manufacture, distribute, sell, or   lease casino gaming equipment and services to a person authorized   to operate casino gaming in this state.          Sec. 2006.002.  APPLICABILITY OF FEDERAL LAW. All shipments   of casino gaming equipment and devices into, out of, or within this   state in connection with casino gaming are legal shipments of the   devices and are exempt from the provisions of 15 U.S.C. Sections   1171-1178 prohibiting the transportation of gambling devices.   SUBCHAPTER B. ADMINISTRATION          Sec. 2006.051.  POWERS AND DUTIES OF COMMISSION AND   EXECUTIVE DIRECTOR. (a) The commission and executive director   have broad authority and shall exercise strict control over and   closely monitor casino gaming in this state to protect the public   health, welfare, and safety and ensure integrity, security,   honesty, and fairness in the conduct and administration of casino   gaming.          (b)  The executive director may contract with or employ a   person to perform a function, activity, or service in connection   with casino gaming as prescribed by the executive director.          (c)  The commission shall as necessary to protect the public   health and safety:                (1)  monitor casino gaming operations on a continuing   basis;                (2)  establish standards for:                      (A)  the operation of casino gaming;                      (B)  the provision of casino gaming equipment and   services; and                      (C)  the establishment and maintenance of casino   gaming facilities; and                (3)  inspect and examine all casino gaming facilities,   equipment, services, records, and operations to ensure compliance   with the standards established by the commission.          Sec. 2006.052.  RULES AND PROCEDURES. (a)  The commission   shall adopt all rules necessary to supervise casino gaming in this   state, administer this chapter, and ensure the security of casino   gaming operations in this state.          (b)  The commission shall establish procedures for the   approval, monitoring, and inspection of casino gaming operations as   necessary to protect the public health, welfare, and safety and the   integrity of this state and to prevent financial loss to this state.          Sec. 2006.053.  FEES. The commission shall establish the   application, certification, and certification renewal fees for   each type of certification issued under this chapter in amounts   reasonable and necessary to cover the state's costs incurred in the   administration of this chapter and the regulation of casino gaming.          Sec. 2006.054.  ANNUAL REPORT. The commission shall make an   annual report to the governor, the comptroller, and the legislature   that provides a summary of casino gaming revenues and expenses for   the state fiscal year preceding the report. The report must be in   the form and reported at the time provided by the General   Appropriations Act.          Sec. 2006.055.  INVESTIGATIONS. The commission may   investigate a violation or alleged violation of:                (1)  this chapter by any person; or                (2)  the penal laws of this state in connection with the   administration of this chapter, the regulation of casino gaming, or   the conduct of casino gaming by a person authorized to operate   casino gaming under this chapter.   SUBCHAPTER C. CASINO GAMING          Sec. 2006.101.  CASINO GAMING OPERATOR LICENSE. (a)  A   person may not conduct casino gaming in this state unless:                (1)  the person holds a casino gaming operator license   issued under this chapter; and                (2)  the casino is in a county in which a majority of   the voters of the county voted in favor of authorizing casino gaming   in that county in accordance with Subchapter F of this chapter or   Section 47a(b), Article III, Texas Constitution.          (b)  A person issued a casino gaming operator license under   this chapter may operate only one casino under the license.          (c)  The commission may not issue more than 12 casino gaming   operator licenses under this chapter as provided by Section 47a,   Article III, Texas Constitution.          Sec. 2006.102.  CERTIFICATES REQUIRED.  (a)  A person may not   provide, maintain, manufacture, distribute, sell, or lease casino   games or casino gaming equipment or services for use in this state   unless the person holds a gaming vendor certificate issued under   this chapter.          (b)  A person may not act as a casino gaming manager for a   gaming facility in this state unless the person holds a casino   gaming manager certificate issued under this chapter.          (c)  Unless the person holds the required gaming employee   certificate, a person may not act as a gaming employee in any gaming   employee position for which the commission by rule requires a   person to hold a certificate issued under this chapter.          Sec. 2006.103.  GAMING VENDOR CERTIFICATE. (a) The   commission shall issue a gaming vendor certificate to an eligible   person with the resources and experience required to provide casino   games or casino gaming equipment and services for casino gaming   operations authorized under this chapter.          (b)  The commission by rule shall establish the minimum   qualifications for a gaming vendor certificate to ensure a   competitive market for casino gaming equipment and services and the   availability of reliable casino gaming equipment and services,   consistent with the health and safety of the public.          Sec. 2006.104.  CASINO GAMING MANAGER CERTIFICATE. (a) The   commission shall issue a casino gaming manager certificate to an   eligible person with the qualifications and experience required to   manage casino gaming operations under this chapter.          (b)  The commission by rule shall establish the minimum   qualifications for a casino gaming manager certificate necessary to   protect the health and safety of the public.          Sec. 2006.105.  GAMING EMPLOYEE CERTIFICATE. The commission   by rule and as necessary to protect the health and safety of the   public may establish other gaming employee positions that require a   certificate issued under this chapter to act in those positions.          Sec. 2006.106.  BACKGROUND INVESTIGATIONS. Before issuing a   certificate to a person under this chapter, the commission shall   conduct a background investigation that includes obtaining   criminal history record information of the person seeking the   certificate to assist the commission in determining the person's   eligibility or suitability for the certificate.   SUBCHAPTER D.  REVENUE          Sec. 2006.151.  STATE CASINO GAMING ACCOUNT. The state   casino gaming account is a special account in the general revenue   fund. The account consists of all revenue received by the   commission from casino gaming, fees received under this chapter,   and all money credited to the account from any other fund or source   under law.   SUBCHAPTER E. OFFENSES; PENALTIES          Sec. 2006.201.  MANIPULATION OR TAMPERING. (a) A person   commits an offense if the person intentionally or knowingly   manipulates the outcome of a casino game, the amount of a casino   game prize, or the operation of a casino gaming device by physical,   electronic, or other means, other than in accordance with   commission rules.          (b)  An offense under this section is a felony of the third   degree.          Sec. 2006.202.  SALE OF CASINO GAME TO PERSON YOUNGER THAN 18   YEARS OF AGE. (a) A casino gaming manager or an employee or agent   of a casino gaming manager commits an offense if the person   intentionally or knowingly:                (1)  sells or offers to sell a play of a casino game to   an individual the person knows is younger than 18 years of age or   allows the individual to purchase a play of a casino game; or                (2)  pays money or issues a credit slip or other   winnings for a play of a casino game to an individual the person   knows is younger than 18 years of age.          (b)  An individual who is younger than 18 years of age   commits an offense if the individual:                (1)  purchases a play of a casino game;                (2)  accepts money, a credit slip, or other payment of   winnings for play of a casino game; or                (3)  falsely represents the individual to be 18 years   of age or older by displaying evidence of age that is false or   fraudulent or misrepresents in any way the individual's age in   order to purchase a play of a casino game.          (c)  An offense under Subsection (a) is a Class B   misdemeanor.          (d)  An offense under Subsection (b) is a misdemeanor   punishable by a fine not to exceed $250.          Sec. 2006.203.  DISCIPLINARY ACTION. (a) The commission   may refuse to issue a license or certificate or may revoke, suspend,   or refuse to renew a license or certificate or may reprimand a   license or certificate holder for a violation of this chapter,   other state law, or a commission rule.          (b)  If the commission proposes to take action against a   license or certificate holder or applicant under Subsection (a),   the license or certificate holder or applicant is entitled to   notice and a hearing.          (c)  The commission may place on probation subject to   reasonable conditions a person whose license or certificate is   suspended under this section.          (d)  The commission may summarily suspend a license or   certificate issued under this chapter in the same manner as the   commission is authorized to suspend a license under Section   466.160, Government Code, if the commission determines that the   action is necessary to maintain the integrity, security, or   fairness of casino gaming.          (e)  The commission by rule shall develop a system for   monitoring a license or certificate holder's compliance with this   chapter.          Sec. 2006.204.  ADMINISTRATIVE PENALTY. (a) The commission   may impose an administrative penalty against a person who violates   this chapter or a rule or order adopted by the commission under this   chapter in the same manner as the commission is authorized to impose   an administrative penalty under Subchapter M, Chapter 2001.          (b)  The amount of the administrative penalty may not exceed   $1,000 for each violation. Each day a violation continues or occurs   may be considered a separate violation for purposes of imposing a   penalty.          (c)  In determining the amount of the penalty, the executive   director shall consider:                (1)  the seriousness of the violation, including the   nature, circumstances, extent, and gravity of the violation;                (2)  the history of previous violations;                (3)  the amount necessary to deter future violations;                (4)  efforts to correct the violation; and                (5)  any other matter that justice may require.          (d)  The notice, hearing, and appeal for an administrative   penalty assessed under this section shall be provided or conducted   in the same manner as notice, hearing, and appeals are provided or   conducted under Subchapter M, Chapter 2001.          Sec. 2006.205.  CIVIL PENALTY. (a) A person who violates   this chapter or a rule adopted by the commission under this chapter   is liable to the state for a civil penalty not to exceed $5,000 for   each day of violation.          (b)  At the request of the commission, the attorney general   shall bring an action to recover a civil penalty authorized by this   section. The attorney general may recover reasonable expenses,   including attorney's fees, incurred in recovering the civil   penalty.   SUBCHAPTER F. LOCAL OPTION ELECTIONS          Sec. 2006.251.  ORDERING LOCAL OPTION ELECTION.  The   commissioners court of a county may at any time order an election to   legalize casino gaming under this chapter in that county.  The   commissioners court shall order and hold an election to legalize   casino gaming under this chapter in the county if the commissioners   court is presented with a petition that meets the requirements of   Section 2006.252 and is certified as valid under Section 2006.253.          Sec. 2006.252.  PETITION REQUIREMENTS.  (a)  A petition for a   legalization election must include a statement substantially as   follows before the space reserved for signatures on each page:   "This petition is to require that an election be held in (name of   county) to legalize casino gaming in (name of county)."          (b)  A petition is valid only if it is signed by registered   voters of the county in a number that is not less than three percent   of the total number of votes cast for governor by qualified voters   of the county in the most recent gubernatorial general election.          (c)  Each voter must enter beside the voter's signature the   date the voter signs the petition.  A signature may not be counted   as valid if the date of signing is earlier than the 90th day before   the date the petition is submitted to the commissioners court.          (d)  Each voter must provide on the petition the voter's   current voter registration number, printed name, and residence   address, including zip code.          Sec. 2006.253.  VERIFICATION.  (a)  Not later than the fifth   day after the date a petition for an election under this chapter is   received in the office of the commissioners court, the   commissioners court shall submit the petition for verification to   the county clerk.          (b)  The county clerk shall determine whether the petition is   signed by the required number of registered voters of the county.     Not later than the 30th day after the date the petition is submitted   to the clerk for verification, the clerk shall certify in writing to   the commissioners court whether the petition is valid or invalid.     If the clerk determines that the petition is invalid, the clerk   shall state the reasons for that determination.          Sec. 2006.254.  ORDERING ELECTION.  If the county clerk   certifies that a petition is valid, not later than the 30th day   after the date of certification, the commissioners court shall   order that an election be held in the county on the next uniform   election date under Section 41.001, Election Code, that allows   sufficient time to comply with applicable provisions of law,   including Section 3.005, Election Code.  The commissioners court   shall state in the order the issue to be voted on in the election.     The county clerk shall notify the commission by certified mail,   return receipt requested, that an election has been ordered.          Sec. 2006.255.  BALLOT PROPOSITION.  The ballot in a   legalization election shall be printed to provide for voting for or   against the proposition: "Legalizing casino gaming within (name of   county)."          Sec. 2006.256.  ELECTION RESULTS.  (a)  If the majority of   the votes cast in a legalization election favor the legalization of   casino gaming, casino gaming authorized under this chapter is   authorized within the county holding the election effective on the   10th day after the date of the election.          (b)  The commissioners court of a county in which a   legalization election has been held shall give written notice of   the results of the election to the commission not later than the   third day after the date the election is canvassed.          (c)  If less than a majority of the votes cast in a   legalization election in any county are cast in favor of the   legalization of casino gaming, casino gaming is not authorized in   the county, and a subsequent election on the issue may not be held   in the county before the corresponding uniform election date one   year after the date of the election.          (d)  If less than a majority of the votes cast in two   consecutive legalization elections within any county are cast in   favor of the legalization of casino gaming, casino gaming is not   authorized in the county, and a subsequent election on the issue may   not be held in the county before the corresponding uniform election   date five years after the date of the second election.          SECTION 2.  Section 411.108(a-1), Government Code, is   amended to read as follows:          (a-1)  The Texas Lottery Commission is entitled to obtain   from the department criminal history record information maintained   by the department that relates to:                (1)  a person licensed under Chapter 2001, Occupations   Code, or described by Section 2001.3025, Occupations Code; or                (2)  a person holding or applying for a license or   certificate under Chapter 2006, Occupations Code.          SECTION 3.  Section 466.024(b), Government Code, is amended   to read as follows:          (b)  The commission shall adopt rules prohibiting the   operation of any game using a video lottery machine or video gaming    machine, except in accordance with Chapter 2006, Occupations Code.          SECTION 4.  Section 47.02(c), Penal Code, is amended to read   as follows:          (c)  It is a defense to prosecution under this section that   the actor reasonably believed that the conduct:                (1)  was permitted under Chapter 2001, Occupations   Code;                (2)  was permitted under Chapter 2002, Occupations   Code;                (3)  was permitted under Chapter 2004, Occupations   Code;                (4)  was permitted under Chapter 2006, Occupations   Code;                (5)  consisted entirely of participation in the state   lottery authorized by the State Lottery Act (Chapter 466,   Government Code);                (6) [(5)]  was permitted under the Texas Racing Act   (Article 179e, Vernon's Texas Civil Statutes); or                (7) [(6)]  consisted entirely of participation in a   drawing for the opportunity to participate in a hunting, fishing,   or other recreational event conducted by the Parks and Wildlife   Department.          SECTION 5.  Section 47.09, Penal Code, is amended by   amending Subsection (a) and adding Subsection (c) to read as   follows:          (a)  It is a defense to prosecution under this chapter that   the conduct:                (1)  was authorized under:                      (A)  Chapter 2001, Occupations Code;                      (B)  Chapter 2002, Occupations Code;                      (C)  Chapter 2004, Occupations Code; [or]                      (D)  Chapter 2006, Occupations Code; or                      (E)  the Texas Racing Act (Article 179e, Vernon's   Texas Civil Statutes);                (2)  consisted entirely of participation in the state   lottery authorized by Chapter 466, Government Code; or                (3)  was a necessary incident to the operation of the   state lottery and was directly or indirectly authorized by:                      (A)  Chapter 466, Government Code;                      (B)  the lottery division of the Texas Lottery   Commission;                      (C)  the Texas Lottery Commission; or                      (D)  the director of the lottery division of the   Texas Lottery Commission.          (c)  Subsection (a)(1)(D) applies to a person manufacturing,   possessing, or operating a gambling device under a license or   certificate under Chapter 2006, Occupations Code.          SECTION 6.  Chapter 47, Penal Code, is amended by adding   Section 47.095 to read as follows:          Sec. 47.095.  INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is   a defense to prosecution under this chapter that a person sells,   leases, transports, possesses, stores, or manufactures a gambling   device with the authorization of the Texas Lottery Commission under   Chapter 2006, Occupations Code, for transportation in interstate or   foreign commerce.          SECTION 7.  (a) As soon as practicable after the effective   date of this Act, the Texas Lottery Commission shall adopt the rules   necessary to implement casino gaming in accordance with Chapter   2006, Occupations Code, as added by this Act.          (b)  The Texas Lottery Commission may adopt initial rules for   purposes of implementing casino gaming in accordance with Chapter   2006, Occupations Code, as added by this Act, that expire not later   than May 1, 2018. Chapter 2001, Government Code, does not apply to   the adoption of those rules. This subsection expires June 1, 2018.          SECTION 8.  This Act takes effect December 1, 2017, but only   if the constitutional amendment authorizing the legislature to   authorize the operation of casino games at 12 casinos in this state   by licensed persons in counties that have approved casino gaming is   approved by the voters.  If that amendment is not approved by the   voters, this Act has no effect.