By: Kuempel H.B. No. 2843       A BILL TO BE ENTITLED   AN ACT   relating to the authorization, licensing, and regulation of casino   gaming and sports wagering in this state, to the creation, powers,   and duties of the Texas Gaming Commission, to support of the horse   racing industry and reform of horse racing and greyhound racing   conducted by certain persons, and to other provisions related to   gambling; imposing and authorizing administrative and civil   penalties; imposing taxes; imposing and authorizing fees;   requiring occupational licenses; creating criminal offenses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 13, Occupations Code, is amended by adding   Subtitle E to read as follows:   SUBTITLE E. CASINO GAMING AND SPORTS WAGERING REGULATED BY TEXAS   GAMING COMMISSION   CHAPTER 2201. GENERAL PROVISIONS; TEXAS GAMING COMMISSION   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 2201.001.  DEFINITIONS. In this subtitle:                (1)  "Active casino license" means a casino license   that was issued by the commission and has not expired without being   renewed, been revoked, or been permanently surrendered.                (2)  "Affiliate" means a person who, directly or   indirectly through one or more intermediaries, controls, is   controlled by, or is under common control with another person. A   person is considered to control a company if the person   beneficially owns more than a five percent equity interest in the   company under the beneficial ownership rules adopted by the   commission.                (3)  "Applicant" means a person who has applied for a   casino license, an operator license, an occupational license, a   manufacturer license, a casino service license, or a qualification   to hold an equity interest in a casino license holder.                (4)  "Associated equipment" means any equipment used in   connection with casino gaming or sports wagering, including a   mechanical, electromechanical, or electronic contrivance,   component, or machine that would not otherwise be classified as a   gaming device. The term includes dice, playing cards, links   connecting progressive slot machines, equipment affecting the   proper reporting of gross casino gaming revenue or gross sports   wagering revenue, computerized systems of betting for sports   wagering, computerized systems or software for monitoring slot   machines, and devices for weighing or counting money.                (5)  "Casino" means facilities within a destination   resort at which gambling games or sports wagering are conducted for   profit, as authorized by Chapters 2202 and 2203.                (6)  "Casino gaming," "casino game," or "gambling   game":                      (A)  means any game or similar activity that   involves the making of a bet, as defined by Section 47.01, Penal   Code, for consideration;                      (B)  includes the following games or devices   played for consideration using money, property, checks, credit, or   a representative of value--                            (i)  a banking game, percentage game, or   game of chance played with cards, dice, or a mechanical,   electromechanical, electronic, or other device; and                            (ii)  a game or device approved by the   commission as a casino game; and                      (C)  does not include--                            (i)  placing, receiving, or otherwise   knowingly transmitting a bet by a means that requires the use of the   Internet, except for placing, receiving, or otherwise knowingly   transmitting a bet using the Internet in connection with the play of   games or devices that are offered by a casino license holder and   that are played onsite at a casino;                            (ii)  any mechanical, electromechanical,   electronic, or other device designed, made, and adapted solely for   bona fide amusement purposes if the device rewards the player   exclusively with noncash merchandise prizes, toys, or novelties, or   a representation of value redeemable for those items, that have a   wholesale value available from a single play of the game or device   of not more than 10 times the amount charged to play the game or   device once or $5, whichever is less;                            (iii)  bingo authorized under Chapter 2001;                            (iv)  charitable raffles authorized under   Chapter 2002;                            (v)  the state lottery conducted under   Chapter 466, Government Code;                            (vi)  sports wagering; or                            (vii)  the making of a bet that:                                  (a)  occurs in a private place, as   defined by Section 47.01, Penal Code;                                  (b)  in connection with, no person   receives any economic benefit other than personal winnings; and                                  (c)  except for the advantage of skill   or luck, involves risks of losing and chances of winning that are   the same for all participants.                (7)  "Casino license" means a license to conduct casino   gaming and sports wagering at a casino.                (8)  "Casino service" means the provision of goods or   services, including security service and gaming schools, to a   person holding a casino license or operator license under this   subtitle, other than a service requiring a manufacturer license.                (9)  "Casino service license" means a license issued   under Section 2202.152.                (10)  "Commission" means the Texas Gaming Commission.                (11)  "Company" means a corporation, partnership,   limited partnership, trust, association, joint stock company,   joint venture, limited liability company, or other form of business   organization. The term does not include a sole proprietorship or   natural person.                (12)  "Credit instrument" means a writing that   evidences a casino gaming debt or sports wagering debt owed to a   casino license holder at the time the debt is created, and includes   any writing taken in consolidation, redemption, or payment of a   previous credit instrument.                (13)  "Destination resort" means a mixed-use   development consisting of casino gaming facilities and a   combination of various tourism amenities and facilities, including   hotels, restaurants, meeting facilities, attractions,   entertainment facilities, and shopping centers.                (14)  "Director" means a member of the board of   directors of a corporation and a person performing similar   functions with respect to a company other than a corporation.                (15)  "Education" means public education, public   higher education, and adult education related to responsible   gaming.                (16)  "Equity interest" means a proprietary interest,   right, or claim allowing the holder to vote with respect to matters   of organizational governance or participate in the profits and   residual assets of a company, including common and preferred stock   in a corporation, a general or limited partnership interest in a   partnership, a similar interest in any other form of business   organization, and a warrant, right, or similar interest to   subscribe for a proprietary right or claim or that is convertible   into a proprietary right or claim, with or without the payment of   additional consideration.                (17)  "Executive director" means the executive   director of the commission.                (18)  "Gaming agreement" means an agreement authorized   under Chapter 2202 or 2203 between this state and a federally   recognized Indian tribe with Indian lands in this state under which   this state allows the tribe to conduct limited casino gaming   activities authorized under Chapter 2202 or 2203 or applicable   federal law.                (19)  "Gaming-related business" means any business   engaged in the service or support of casino gaming or sports   wagering activities regulated under this subtitle or commission   rule.                (20)  "Gaming device" means a mechanical,   electromechanical, or electronic contrivance, component, or   machine, including a slot machine, used in connection with casino   gaming that affects the result of a bet by determining win or loss.   The term includes a system for processing information that can   alter the normal criteria of random selection, affect the operation   of a game, or determine the outcome of a game.                (21)  "Gaming employee":                      (A)  means an individual directly involved in the   operation or conduct of casino gaming in a casino performing a   service in a capacity that the commission finds appropriate for   occupational licensing under Section 2202.102 and includes:                            (i)  a boxman, a cashier, change personnel,   counting room personnel, a dealer, a floor person, a host empowered   to extend credit or complimentary services, a keno runner, a keno   writer, a machine mechanic, or security personnel;                            (ii)  a shift or pit boss or a supervisor or   manager involved in casino gaming activities;                            (iii)  accounting or internal auditing   personnel directly involved in recordkeeping or the examination of   records generated from casino gaming activities; and                            (iv)  a junketeer or other independent agent   whose compensation is based on the amount of money a patron wagers   or loses or who is paid per patron more than the price of admission;   and                      (B)  does not include bartenders, cocktail   waitresses, or other individuals engaged exclusively in preparing   or serving food or beverages or individuals providing nominal or   maintenance services.                (22)  "Gross casino gaming revenue":                      (A)  means the total amount of the following, less   the sum of all money paid as losses to patrons playing a gambling   game, the amounts paid to purchase from independent financial   institutions annuities to fund losses paid to patrons playing a   gambling game, and the items made deductible as losses under   Section 2202.253:                            (i)  money received by a casino license   holder from players playing a gambling game;                            (ii)  money received by a casino license   holder in payment for credit extended by the casino license holder   to a patron for the purposes of casino gaming; and                            (iii)  compensation received by a casino   license holder for conducting any gambling game in which the   license holder is not a party to a wager; and                      (B)  does not include:                            (i)  counterfeit money or tokens;                            (ii)  coins of other countries that are   received in slot machines or other gaming devices;                            (iii)  cash taken in fraudulent acts   perpetrated against a casino license holder for which the license   holder is not reimbursed; or                            (iv)  cash received as entry fees for   contests or tournaments in which the patrons compete for prizes.                (23)  "Gross sports wagering revenue":                      (A)  means the total amount of the following, less   the sum of all money paid as losses to patrons engaged in sports   wagering and the amounts paid to purchase from independent   financial institutions annuities to fund losses paid to patrons   engaged in sports wagering:                            (i)  money received by a license holder from   patrons engaged in sports wagering;                            (ii)  money received by a license holder in   payment for credit extended by the license holder to a patron for   the purposes of sports wagering; and                            (iii)  compensation received by a license   holder for conducting any sports wagering in which the license   holder is not a party to a wager; and                      (B)  does not include:                            (i)  counterfeit money or tokens;                            (ii)  cash taken in fraudulent acts   perpetrated against a license holder for which the license holder   is not reimbursed; or                            (iii)  cash received as entry fees for   contests or tournaments in which the patrons compete for prizes.                (24)  "Hearing examiner" means a person authorized by   the commission to conduct hearings.                (25)  "Indian lands" means land on which gaming is   permitted under the Indian Gaming Regulatory Act (18 U.S.C.   Sections 1166-1168 and 25 U.S.C. Section 2701 et seq.) or land that   was held in trust by the United States on January 1, 1998, for the   benefit of the Indian tribe pursuant to the Ysleta del Sur Pueblo   and Alabama and Coushatta Indian Tribes of Texas Restoration Act   (Pub. L. No. 100-89).                (26)  "Institutional investor" means a person, other   than a state or federal government pension plan, that meets the   requirements of a qualified institutional buyer, as that term is   defined by 17 C.F.R. Section 230.144A and is:                      (A)  a bank as defined by Section 3(a)(6),   Securities Exchange Act of 1934 (15 U.S.C. Section 78c);                      (B)  an insurance company as defined by Section   2(a)(17), Investment Company Act of 1940 (15 U.S.C. Section 80a-2);                      (C)  an investment company registered under   Section 8, Investment Company Act of 1940 (15 U.S.C. Section   80a-8);                      (D)  an investment adviser registered under   Section 203, Investment Advisers Act of 1940 (15 U.S.C. Section   80b-3);                      (E)  a collective trust fund as defined by Section   3(c)(11), Investment Company Act of 1940 (15 U.S.C. Section 80a-3);                      (F)  an employee benefit plan or pension fund that   is subject to the Employee Retirement Income Security Act of 1974   (29 U.S.C. Section 1001 et seq.), excluding an employee benefit   plan or pension fund sponsored by a publicly traded corporation   registered with the commission;                      (G)  a state or federal government pension plan;                      (H)  a group composed entirely of persons   specified in Paragraphs (A)-(G); or                      (I)  any other person the commission determines   for reasons consistent with the policies expressed in Section   2202.001.                (27)  "Internet" means the largest nonproprietary   nonprofit cooperative public computer network, popularly known as   the Internet.                (28)  "Key executive" means a corporation's directors   and executive officers, a partnership's general partners, a trust's   trustee, a joint venture's managing venturers, and each person   possessing similar responsibilities and authorities in any other   form of business organization.                (29)  "License holder" means a person who holds a   license issued by the commission.                (30)  "Live sporting event" means:                      (A)  a football, basketball, baseball, hockey, or   similar game;                      (B)  a boxing or martial arts match;                      (C)  a horse race on which pari-mutuel wagering is   authorized by law; or                      (D)  any other event designated by the commission.                (31)  "Manufacturer license" means a license issued   under Section 2202.151.                (32)  "Metropolitan statistical area" means a   metropolitan statistical area designated by the United States   Office of Management and Budget.                (33)  "Mixed-use development" means a developed area of   land.                (34)  "Occupational license" means a license issued   under Section 2202.102.                (35)  "Operator" means a person other than the casino   license holder who contractually agrees to provide operational and   managerial services on behalf of the casino license holder for the   operation of any activities occurring at the casino in return for   receiving a payment based wholly or partly on profits or receipts   from the conduct of casino gaming or sports wagering.                (36)  "Operator license" means a license issued under   Section 2202.101 to provide services as an operator.                (37)  "Pari-mutuel wagering" has the meaning assigned   by Section 2021.003.                (38)  "Patron" or "Player" means a person who   contributes any part of the consideration to play a gambling game or   to engage in sports wagering. Consideration does not include a   separate fee payable in order to wager.                (39)  "Principal manager" means a person who, as   determined under the rules of the commission, holds or exercises   managerial, supervisory, or policy-making authority over the   management or operation of a casino gaming activity or casino   service that in the judgment of the commission warrants the   occupational licensing as a principal manager for the protection of   the public interest. The term includes a key executive of a license   holder that is a company.                (40)  "Public safety program" means a program for crime   prevention and law enforcement, including a program designed to   prevent and prosecute crimes involving human trafficking and money   laundering.                (41)  "Racetrack" has the meaning assigned by Section   2021.003.                (42)  "Racetrack association" has the meaning assigned   by Section 2021.003.                (43)  "Slot machine" means a casino game that involves   a player using a mechanical, electromechanical, electronic, or   other device that, on insertion of a coin, token, or similar object   or on payment of consideration, is available to play or operate, the   play or operation of which, wholly or partly by the element of   chance, may entitle the player operating the machine to receive or   deliver to the player a payment for winnings in the form of cash,   premiums, merchandise, tokens, or any other thing of value.                (44)  "Sports wagering" means placing wagers on live   sporting events as authorized by this subtitle.                (45)  "Table game" means any casino game played in a   casino other than on a slot machine, including games such as   roulette, keno, twenty-one, blackjack, craps, poker, chuck-a-luck   (dai shu), wheel of fortune, chemin de fer, baccarat, and pai gow.          Sec. 2201.002.  APPLICATION OF SUNSET ACT. (a) The Texas   Gaming Commission is subject to Chapter 325, Government Code (Texas   Sunset Act). Unless continued in existence as provided by that   chapter, the commission is abolished September 1, 2033.          (b)  On the date the commission is abolished under Subsection   (a), the following statutes are repealed:                (1)  this chapter;                (2)  Chapter 2202; and                (3)  Chapter 2203.          Sec. 2201.003.  REFERENCES TO LICENSE INCLUDE CERTIFICATE OF   REGISTRATION, FINDING OF SUITABILITY, OR OTHER APPROVAL. A   reference in this subtitle to a license applies to a certificate of   registration, finding of suitability, or other affirmative   regulatory approval provided under this subtitle or commission   rule, unless otherwise expressly provided by this subtitle, another   state or federal law, or commission rule.          Sec. 2201.004.  EXEMPTION FROM TAXATION. A political   subdivision of this state may not impose:                (1)  a tax on the payment of a prize under Chapters 2202   or 2203;                (2)  a tax, fee, or other assessment on consideration   paid to play a gambling game or engage in sports wagering authorized   by this subtitle;                (3)  a tax on gross casino gaming revenue or gross   sports wagering revenue; or                (4)  a tax or fee on attendance at or admission to a   casino authorized by this subtitle unless specifically authorized   by statute.   SUBCHAPTER B. TEXAS GAMING COMMISSION          Sec. 2201.051.  COMMISSION; MEMBERSHIP. (a) The Texas   Gaming Commission is comprised of five qualified members appointed   by the governor with the advice and consent of the senate.          (b)  Appointments to the commission shall be made without   regard to race, color, disability, sex, religion, age, or national   origin.          Sec. 2201.052.  QUALIFICATIONS OF COMMISSION MEMBERS. To be   eligible for appointment to the commission, a person:                (1)  must be a citizen of the United States;                (2)  must submit a financial statement that contains   the information required by Chapter 572, Government Code;                (3)  may not be pecuniarily interested in an entity   engaged in the conduct of casino gaming or sports wagering or the   provision of services that require a casino service license,   including having any security issued by that entity, or be related   within the second degree by affinity or the third degree by   consanguinity, as determined under Chapter 573, Government Code, to   an individual who has such a pecuniary interest or holds such a   security;                (4)  may not be an applicant for or holder of a license   under a law administered by the commission or hold an equity   interest in a casino license holder requiring qualification under   Section 2202.060;                (5)  may not be a member of the governing body of a   political subdivision of this state;                (6)  may not hold an elective office or be an officer or   official of a political party; and                (7)  must, before entering upon the duties of office,   affirm that the person meets the qualification requirements stated   in this section, including that the person is not pecuniarily   interested in any business or entity holding a license for   involvement in casino gaming or sports wagering or doing business   with any such person or entity.          Sec. 2201.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)   In this section, "Texas trade association" means a cooperative and   voluntarily joined association of business or professional   competitors in this state designed to assist its members and its   industry or profession in dealing with mutual business or   professional problems and in promoting their common interest.          (b)  A person may not be a commission member or an employee of   the commission employed in a "bona fide executive, administrative,   or professional capacity," as that phrase is used for purposes of   establishing an exemption to the overtime provisions of the federal   Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:                (1)  the person is an officer, employee, manager, or   paid consultant of a Texas trade association in the field of gaming;   or                (2)  the person's spouse is an officer, manager, or paid   consultant of a Texas trade association in the field of gaming.          (c)  A person may not be a commission member or act as general   counsel to the commission if the person is required to register as a   lobbyist under Chapter 305, Government Code, because of the   person's activities for compensation on behalf of a profession   related to the operation of the commission.          Sec. 2201.054.  TERMS; VACANCIES. (a) Members of the   commission serve staggered six-year terms, with the term or terms   of one or two members expiring February 1 of each odd-numbered year.          (b)  The governor shall fill a vacancy in a position on the   commission for the remainder of the unexpired term.          Sec. 2201.055.  PRESIDING OFFICER. The governor shall   designate a commission member as presiding officer of the   commission to serve in that capacity at the pleasure of the   governor.          Sec. 2201.056.  MEETINGS; OFFICIAL RECORD. (a) The   commission shall meet not fewer than 12 times each year.          (b)  The commission may meet at other times at the call of the   presiding officer or as provided by commission rule.          (c)  The commission shall keep an official record of all   commission meetings and proceedings.          Sec. 2201.057.  GROUNDS FOR REMOVAL. (a) It is a ground for   removal from the commission that a member:                (1)  does not have at the time of taking office the   qualifications required by Section 2201.052;                (2)  does not maintain during service on the commission   the qualifications required by Section 2201.052;                (3)  is ineligible for membership under Section   2201.053;                (4)  cannot, because of illness or disability,   discharge the member's duties for a substantial part of the member's   term; or                (5)  is absent from more than half of the regularly   scheduled commission meetings that the member is eligible to attend   during a calendar year without an excuse approved by a majority vote   of the other commission members.          (b)  The validity of an action of the commission is not   affected by the fact that it is taken when a ground for removal of a   commission member exists.          (c)  If the executive director or any other commission member   has knowledge that a potential ground for removal of a commission   member exists, the executive director shall notify the presiding   officer of the commission of the potential ground for removal. The   presiding officer shall then notify the governor and the attorney   general that a potential ground for removal exists. If the   potential ground for removal involves the presiding officer, the   executive director shall notify the other commission members, the   governor, and the attorney general that a potential ground for   removal exists.          Sec. 2201.058.  TRAINING. (a) A person who is appointed to   and qualifies for office as a commission member may not vote,   deliberate, or be counted as a member in attendance at a meeting of   the commission until the person completes a training program that   complies with this section.          (b)  The training program must provide the person with   information regarding:                (1)  this subtitle and other laws related to casino   gaming or gambling regulated by the commission;                (2)  the commission's programs, functions, rules, and   budget;                (3)  the results of the most recent formal audit of the   commission;                (4)  the requirements of laws relating to open   meetings, public information, administrative procedure, and   conflict of interest; and                (5)  any applicable ethics policies adopted by the   commission or the Texas Ethics Commission.          (c)  A person appointed to the commission is entitled to   reimbursement, as provided by the General Appropriations Act, for   travel expenses incurred in attending the training program   regardless of whether the attendance at the program occurs before   or after the person qualifies for office.          Sec. 2201.059.  QUALIFICATIONS AND STANDARDS OF CONDUCT   INFORMATION. The executive director or the executive director's   designee shall provide to commission members, as often as   necessary, information regarding their:                (1)  qualifications for office under this chapter; and                (2)  responsibilities under applicable laws relating   to standards of conduct for state officers.          Sec. 2201.060.  BOND. (a) Before assuming the duties of   office, a commission member must execute a bond in the amount of   $25,000 payable to the state and conditioned on the member's   faithful performance of the member's duties of office.          (b)  The bond must be approved by the governor.          (c)  The cost of the bond shall be paid by the commission.          Sec. 2201.061.  PROHIBITION OF CERTAIN ACTIVITIES. (a) A   commission member may not:                (1)  use the member's official authority to affect the   result of an election or nomination for public office; or                (2)  directly or indirectly coerce, attempt to coerce,   command, or advise a person to pay, lend, or contribute anything of   value to another person for political purposes.          (b)  A commission member or the parent, spouse, or child of a   commission member may not solicit or accept employment or any   financial interest or benefit from a license holder under a law   administered by the commission or from an applicant for a license   before the second anniversary of the date the commission member's   service on the commission ends.          Sec. 2201.062.  APPLICATION OF FINANCIAL DISCLOSURE LAW. For   purposes of Chapter 572, Government Code, a commission member and   the executive director are appointed officers of a major state   agency.          Sec. 2201.063.  PER DIEM; EXPENSES; SALARY. (a) A   commission member is entitled to:                (1)  a per diem in an amount prescribed by   appropriation for each day spent in performing the duties of the   member;                (2)  reimbursement for actual and necessary expenses   incurred in performing those duties; and                (3)  an annual salary in an amount prescribed by   appropriation.          (b)  Reimbursement for expenses under this section is   subject to any applicable limitation in the General Appropriations   Act.          Sec. 2201.064.  EXECUTIVE DIRECTOR. (a) The commission   shall appoint an executive director, who serves at the pleasure of   the commission.          (b)  A person is not eligible for appointment as executive   director if the person:                (1)  holds an elective office or is an officer or   official of a political party; or                (2)  is required to register as a lobbyist under   Chapter 305, Government Code, because of the person's activities   for compensation on behalf of a profession related to the operation   of the commission.          (c)  The executive director must have five or more years of   responsible administrative experience in public or business   administration or possess broad management skills.          (d)  The executive director may not pursue any other business   or occupation or hold any other office for profit.          (e)  The executive director must meet all eligibility   requirements relating to commission members.          (f)  The executive director is entitled to an annual salary   and other compensation specified by the commission.          (g)  The executive director or the parent, spouse, or child   of the executive director may not, before the second anniversary of   the date the executive director's service to the commission ends,   acquire a direct or indirect interest in or be employed by an entity   licensed or registered by the commission in connection with the   conduct of casino gaming or the provision of casino services in this   state.          Sec. 2201.065.  OFFICES. The commission shall maintain its   primary office in Travis County and may maintain other offices   determined to be necessary by the commission.          Sec. 2201.066.  AUTHORITY TO SUE OR BE SUED; VENUE FOR CIVIL   SUITS. (a) Subject to Section 2202.360, the commission may sue and   be sued.          (b)  Service of process in a suit against the commission may   be secured by serving the executive director.          (c)  A suit against the commission must be brought in Travis   County.          Sec. 2201.067.  AUDIT. The transactions of the commission   are subject to audit by the state auditor under Chapter 321,   Government Code.   SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION          Sec. 2201.101.  GENERAL POWERS AND DUTIES. (a) The   commission has broad authority and shall exercise strict control   and close supervision over all activities authorized and conducted   in this state under a law administered by the commission.          (b)  The commission shall ensure that all gambling games,   other casino gaming activities, sports wagering, and other gambling   subject to the oversight or regulatory authority of the commission   are conducted fairly and in compliance with the law.          (c)  The commission also has the powers and duties granted   under Chapters 2202 and 2203.          (d)  All aspects of this subtitle and other laws administered   by the commission, including those relating to licensing,   qualification, execution, and enforcement, shall be administered   by the executive director and the commission for the protection of   the public and in the public interest.          (e)  The commission and the executive director have full   power and authority to hold hearings and, in connection with the   hearings, to issue subpoenas, to compel the attendance of witnesses   at any place in this state, to administer oaths, and to require   testimony under oath. Any process or notice relating to a hearing   may be served in the manner provided for service of process and   notices in civil actions. The commission and the executive   director may pay transportation and other expenses of witnesses as   they consider reasonable.          (f)  The executive director and the executive director's   authorized employees may:                (1)  inspect and examine a premises where casino   gaming, sports wagering, or other gambling regulated by the   commission is conducted or equipment or supplies, including an   electronic or other gaming device, or associated equipment is   manufactured, assembled, produced, programmed, sold, leased,   marketed, distributed, repaired, or modified for use in gaming;                (2)  for good cause, seize and remove from a premises   and impound equipment or supplies for the purpose of examination   and inspection; and                (3)  demand access to, inspect, examine, photocopy, or   audit papers, books, and records of applicants and license holders,   on their premises or elsewhere as practicable, in the presence of   the applicant or license holder or the applicant's or license   holder's agent, that report the gross income produced by a   gaming-related business, verify the gross income, or affect other   matters on the enforcement of this subtitle or other law   administered by the commission.          (g)  For the purpose of conducting audits after the cessation   of casino gaming or sports wagering by a license holder, a former   license holder shall furnish, on demand of the executive director   or the executive director's authorized employees, books, papers,   and records as necessary to conduct the audits. The former license   holder shall maintain all books, papers, and records necessary for   audits for three years after the date of the surrender or revocation   of the license and is responsible for the costs incurred by the   commission in the conduct of an audit under this section. If the   former license holder seeks judicial review of a deficiency   determination or files a petition for a redetermination, the former   license holder must maintain all books, papers, and records until a   final order is entered on the determination.          (h)  The commission shall contract with at least one   independent testing laboratory to scientifically test and   technically evaluate gambling games, gaming devices, and   associated equipment for compliance with this subtitle. The   independent testing laboratory must have a national or   international reputation of being demonstrably competent and must   be qualified to scientifically test and evaluate all components of   gambling games, gaming devices, and associated equipment for   compliance with this subtitle and to perform the functions assigned   to it under this subtitle. An independent testing laboratory may   not be owned or controlled by a person licensed to conduct gambling   games or sports wagering, or to manufacture gaming devices or   associated equipment. The use of an independent testing laboratory   for purposes related to the conduct of casino gaming or sports   wagering under this subtitle must be made from a list of at least   two laboratories approved by the commission.          Sec. 2201.102.  RULEMAKING AUTHORITY. (a) The commission   shall adopt rules the commission considers necessary or desirable   for the public interest in carrying out the policy and provisions of   this subtitle and the other laws administered by the commission.          (b)  The rules must prescribe:                (1)  the method and form of application that an   applicant for a license under this subtitle must follow and   complete before consideration of an application by the commission;                (2)  the manner of any notice related to applying for a   license pursuant to this subtitle;                (3)  the information to be furnished by an applicant or   license holder under Chapter 2202 concerning antecedents, habits,   character, associates, criminal history record information,   business activities, and financial affairs;                (4)  the criteria to be used in the award, revocation,   and suspension of licenses under Chapter 2202;                (5)  the information to be furnished by a license   holder under Chapter 2202 relating to the holder's employees;                (6)  the manner and procedure of hearings conducted by   the commission or a hearing examiner of the commission;                (7)  the payment of fees or costs an applicant or   license holder under Chapter 2202 must pay;                (8)  the procedures for the issuance of temporary   licenses and temporary qualification to hold equity interests in a   casino license holder under Chapter 2202;                (9)  the manner and method of collection and payment of   fees and the issuance of licenses;                (10)  the conditions under which the nonpayment of a   gambling debt by a license holder constitutes grounds for   disciplinary action;                (11)  the manner of approval of gambling games, gaming   devices, and associated equipment;                (12)  access to confidential information obtained   under this chapter, Chapter 2202, Chapter 2203, or other law and the   means to ensure that the confidentiality of the information is   maintained and protected;                (13)  financial reporting and internal control   requirements for license holders;                (14)  the manner in which money awarded to players,   compensation from gambling games and sports wagering, and gross   casino gaming revenue and gross sports wagering revenue must be   computed and reported under Chapter 2202;                (15)  requirements for the annual audit of the   financial statements of a license holder;                (16)  requirements for periodic financial reports from   each license holder consistent with standards and intervals   prescribed by the commission;                (17)  the procedures to be followed by a license holder   for excluding a person from a casino;                (18)  the procedures and criteria for requiring a   finding of suitability under Section 2202.006; and                (19)  the procedures and criteria for exempting a group   or class of persons from the registration or qualification   requirements of Chapter 2202.          Sec. 2201.103.  AUTHORITY OF EXECUTIVE DIRECTOR. (a) With   commission approval, the executive director may create executive   positions as the director considers necessary to implement this   chapter, Chapter 2202, Chapter 2203, and any other law administered   by the commission.          (b)  The executive director shall employ directors in the   areas of audit, investigation, and enforcement. The audit director   must be a certified public accountant, have five or more years of   progressively responsible experience in general accounting, and   have a comprehensive knowledge of the principles and practices of   corporate finance or must possess qualifications of an expert in   the field of corporate finance and auditing, general finance,   gaming, and economics. Other directors must possess five or more   years of training and experience in the fields of investigation,   law enforcement, law, or gaming.          (c)  The executive director may investigate, for the purpose   of prosecution, a suspected criminal violation of this subtitle or   other laws related to casino gaming, sports wagering, or gambling   regulated by the commission. For the purpose of the administration   and enforcement of this subtitle or another related law, the   executive director and employees designated as enforcement   officers by the executive director may be commissioned as peace   officers.          (d)  The executive director, to further the objectives and   purposes of this subtitle or other laws related to casino gaming,   sports wagering, or gambling regulated by the commission, may:                (1)  direct and supervise all administrative actions of   the commission;                (2)  bring legal action in the name and on behalf of the   commission;                (3)  make, execute, and effect an agreement or contract   authorized by the commission;                (4)  employ the services of persons considered   necessary for consultation or investigation and set the salaries of   or contract for the services of legal, professional, technical, and   operational personnel and consultants, except that outside legal   assistance may be retained only with the approval of the   commission;                (5)  acquire furnishings, equipment, supplies,   stationery, books, and all other things the executive director   considers necessary or desirable in carrying out the executive   director's functions; and                (6)  perform other duties the executive director may   consider necessary to effect the purposes of this subtitle or other   laws related to casino gaming, sports wagering, or gambling   regulated by the commission.          (e)  Except as otherwise provided in this subtitle, the costs   of administration incurred by the executive director shall be paid   in the same manner as other claims against the state are paid.          Sec. 2201.104.  OFFICE OF HEARING EXAMINERS. (a) The   commission shall create an office of hearing examiners to assist   the commission in carrying out its powers and duties.          (b)  The office of hearing examiners shall:                (1)  hold hearings under the authority of the   commission on matters relating to the commission's administration   of this subtitle and other laws related to casino gaming, sports   wagering, or gambling regulated by the commission as the commission   orders; and                (2)  report after a hearing in the manner prescribed by   the commission.          (c)  The commission shall refer any contested case arising   under this subtitle or other laws related to casino gaming, sports   wagering, or gambling regulated by the commission to the office of   hearing examiners or the State Office of Administrative Hearings.          (d)  The office of hearing examiners is independent of the   executive director and is under the exclusive control of the   commission.          (e)  The office of hearing examiners is under the direction   of a chief hearing examiner appointed by the commission.          (f)  The commission may authorize the chief hearing examiner   to delegate to one or more hearing examiners the authority to hold   any hearing called by the chief hearing examiner.          (g)  The chief hearing examiner and each assistant hearing   examiner employed by the office of hearing examiners must be an   attorney licensed to practice law in this state.          (h)  The chief hearing examiner and each assistant hearing   examiner may administer oaths, receive evidence, and issue   subpoenas to compel the attendance of witnesses and the production   of papers and documents in all matters delegated to the office of   hearing examiners by the commission.          (i)  The chief hearing examiner and each assistant hearing   examiner is entitled to an annual salary and other compensation   specified by the commission.          (j)  The office of hearing examiners may contract for   additional services it considers necessary to carry out its powers.          Sec. 2201.105.  JUDICIAL REVIEW IN CONTESTED CASES. A final   ruling of the commission in a contested case is subject to judicial   review under Chapter 2001, Government Code.  Judicial review is   under the substantial evidence rule, as provided by that chapter.          Sec. 2201.106.  RECORDS; CONFIDENTIAL INFORMATION.  (a)  The   executive director shall maintain a file of all applications for   licenses under this subtitle, together with a record of all action   taken with respect to the applications.          (b)  The commission and the executive director may maintain   other records they consider desirable.          (c)  The information made confidential by this section may be   disclosed, wholly or partly, only:                (1)  in the course of the necessary administration of   this subtitle or in the enforcement of other laws related to casino   gaming, sports wagering, or other gambling regulated by the   commission;                (2)  under Section 2202.353;                (3)  on the order of a court; or                (4)  as authorized under commission rule, to an   authorized agent of any agency of the United States, another state,   or a political subdivision of this state.          (d)  Notice of the content of any information furnished or   released under Subsection (c) may be given to any affected   applicant or license holder as prescribed by commission rule.          (e)  The following information is confidential and may not be   disclosed:                (1)  information requested by the commission or the   executive director under this subtitle or another applicable law   that may otherwise be obtained relating to the finances, earnings,   or revenue of an applicant or license holder;                (2)  information pertaining to an applicant's criminal   history record information, antecedents, and background that has   been furnished to or obtained by the commission or the executive   director from any source;                (3)  information provided to the commission or the   executive director or a commission employee by a governmental   agency or an informer or on the assurance that the information will   be held in confidence and treated as confidential;                (4)  information obtained by the executive director or   the commission from a license holder, including a casino service   license holder, relating to the manufacturing, modification, or   repair of gaming devices;                (5)  security plans and procedures of the commission   designed to ensure the integrity and security of the regulation and   operation of casino gaming, sports wagering, or other gambling   regulated by the commission;                (6)  the street address and telephone number of a   patron unless the patron has consented to the release of the   information;                (7)  information relating to all system operations of   gambling games and sports wagering, including security related to   gambling games or sports wagering, and commission plans and   procedures intended to ensure the integrity and security of the   operation of gambling games, sports wagering, and other gambling   regulated by the commission; and                (8)  reports and related information filed under   Section 2202.010.          Sec. 2201.107.  REPRESENTATION BY ATTORNEY GENERAL.  (a)     The attorney general shall represent the commission and the   executive director in any proceeding to which the commission or the   executive director is a party under this subtitle or another law   administered by the commission or in any suit filed against the   commission or executive director.          (b)  The office of the attorney general on request shall   advise the commission and the executive director in all other   matters, including representing the commission when the commission   acts in its official capacity.          Sec. 2201.108.  RULES RESTRICTING ADVERTISING OR   COMPETITIVE BIDDING. (a)  The commission may not adopt rules   restricting advertising or competitive bidding by a person   regulated by the commission except to prohibit false, misleading,   or deceptive practices by that person.          (b)  The commission may not include in its rules to prohibit   false, misleading, or deceptive practices by a person regulated by   the commission a rule that:                (1)  restricts the use of any advertising medium;                (2)  restricts the person's personal appearance or the   use of the person's voice in an advertisement;                (3)  relates to the size or duration of an   advertisement by the person; or                (4)  restricts the use of a trade name in advertising by   the person.          Sec. 2201.109.  RULES ON CONSEQUENCES OF CRIMINAL   CONVICTION.  (a)  The commission shall adopt rules necessary to   comply with Chapter 53.          (b)  In adopting rules under this section, the commission   shall list the specific offenses for which a conviction would   constitute grounds for the commission to take action under Section   53.021.          Sec. 2201.110.  SUBPOENA. (a)  The commission may request   and, if necessary, compel by subpoena:                (1)  the attendance of a witness for examination under   oath; and                (2)  the production for inspection and copying of   records and other evidence relevant to the investigation of an   alleged violation of this subtitle or other laws related to casino   gaming, sports wagering, or other gambling regulated by the   commission.          (b)  If a person fails to comply with a subpoena issued under   this section, the commission, acting through the attorney general,   may file suit to enforce the subpoena in a district court in Travis   County or in the county in which a hearing conducted by the   commission may be held.          (c)  The court shall order a person to comply with the   subpoena if the court determines that good cause exists for issuing   the subpoena.          Sec. 2201.111.  DIVISION OF RESPONSIBILITIES. The   commission shall develop and implement policies that clearly   separate the policy-making responsibilities of the commission and   the management responsibilities of the executive director and the   staff of the commission.          Sec. 2201.112.  USE OF TECHNOLOGY.  The commission shall   implement a policy requiring the commission to use appropriate   technological solutions to improve the commission's ability to   perform its functions. The policy must ensure that the public is   able to interact with the commission through the commission's   Internet website.          Sec. 2201.113.  NEGOTIATED RULEMAKING AND ALTERNATIVE   DISPUTE RESOLUTION POLICY. (a)  The commission shall develop and   implement a policy to encourage the use of:                (1)  negotiated rulemaking procedures under Chapter   2008, Government Code, for the adoption of commission rules; and                (2)  appropriate alternative dispute resolution   procedures under Chapter 2009, Government Code, to assist in the   resolution of internal and external disputes under the commission's   jurisdiction.          (b)  The commission's procedures relating to alternative   dispute resolution must conform, to the extent possible, to any   model guidelines issued by the State Office of Administrative   Hearings for the use of alternative dispute resolution by state   agencies.          (c)  The commission shall designate an appropriately   qualified person to:                (1)  coordinate the implementation of the policy   adopted under Subsection (a);                (2)  serve as a resource for any training needed to   implement the procedures for negotiated rulemaking or alternative   dispute resolution; and                (3)  collect data concerning the effectiveness of those   procedures, as implemented by the commission.          Sec. 2201.114.  COMMITTEES.  The commission may appoint   committees that it considers necessary to carry out its duties.          Sec. 2201.115.  CONTRACT AUTHORITY.  (a)  The commission and   executive director have broad authority and shall exercise strict   control and close supervision over gambling games and sports   wagering conducted in this state to promote and ensure integrity,   security, honesty, and fairness in the operation and administration   of casino gaming and sports wagering under this subtitle.          (b)  The executive director may contract with a third party   to perform a function, activity, or service in connection with the   operation of casino gaming or sports wagering under this subtitle,   other than investigative services, as prescribed by the executive   director.  A contract relating to the operation of casino gaming or   sports wagering must be consistent with this subtitle.          (c)  The executive director may award a contract for   supplies, equipment, or services, including a contract under   Subsection (b), pending the completion of any investigation and   license required by this subtitle. A contract awarded under this   subsection must include a provision permitting the executive   director to terminate the contract without penalty if the   investigation reveals that the person to whom the contract is   awarded does not satisfy the applicable requirements for a license   under this subtitle.          (d)  In the acquisition or provision of facilities,   supplies, equipment, materials, or services related to the   implementation of casino gaming or sports wagering under this   subtitle, the commission must comply with procurement procedures   prescribed under Subtitle D, Title 10, Government Code.          Sec. 2201.116.  INVESTIGATIONS AND ENFORCEMENT.  (a)  A   violation or alleged violation of this subtitle or of the penal laws   of this state by the commission, its employees, or a person   regulated under this subtitle may be investigated by the attorney   general, the district attorney for Travis County, or a district   attorney, criminal district attorney, or county attorney for the   county in which violation or alleged violation occurred.          (b)  The commission may investigate violations of this   subtitle, rules adopted under this subtitle, or other laws related   to casino gaming, sports wagering, or other gambling regulated by   the commission and may file a complaint requesting that an   investigation be conducted in accordance with Subsection (a).          Sec. 2201.117.  SECURITY. (a)  The executive director shall   maintain a department of security in the commission. The executive   director shall appoint a deputy to administer the department. The   deputy must be qualified by training and experience in law   enforcement or security to supervise, direct, and administer the   activities of the department.          (b)  The executive director may employ security officers or   investigators as the executive director considers necessary and may   commission investigators or security officers as peace officers.   The deputy and all investigators employed by the department of   security and commissioned as peace officers must meet the   requirements under Chapter 1701 for employment and commission as   peace officers.          (c)  A security officer or investigator employed by the   department of security and commissioned as a peace officer, or a   peace officer who is working in conjunction with the commission or   the Department of Public Safety in the enforcement of this subtitle   may:                (1)  without a search warrant, search and seize a   gaming device or associated equipment that is located on premises   for which a person holds a license issued under this subtitle; or                (2)  seize a gaming device or associated equipment that   is being used or is in the possession of any person in violation of   this subtitle or other laws related to casino gaming, sports   wagering, or other gambling regulated by the commission.          (d)  The Department of Public Safety or any other state or   local law enforcement agency, at the commission's request and in   accordance with an interagency agreement, shall perform a full   criminal history record information and background investigation   of a prospective deputy or investigator of the department of   security of the commission. The commission shall reimburse the   agency for the actual costs of an investigation.          (e)  At least once every two years, the executive director   shall employ an independent firm that is experienced in security,   including computer security and systems security, to conduct a   comprehensive study of all aspects of casino gaming and sports   wagering security.          Sec. 2201.118.  PROHIBITED GAMBLING GAMES. (a)  Except as   provided by this subtitle or other law, the executive director or   any other person may not establish or operate a gambling game in   which the winner is chosen on the basis of the outcome of a live   sporting event.          (b)  Except as provided by this subtitle, the operation of   any game using a slot machine or other gaming device is prohibited.          Sec. 2201.119.  DEPARTMENT OF PUBLIC SAFETY RECORDS.  (a)     Except as otherwise provided by this subtitle, all files, records,   information, compilations, documents, photographs, reports,   summaries, and reviews of information and related matters   collected, retained, or compiled by the Department of Public Safety   in the discharge of its duties under this subtitle are confidential   and are not subject to public disclosure.          (b)  An investigation report or other document submitted by   the Department of Public Safety to the commission becomes part of   the investigative files of the commission.          (c)  Information that is made available to the public is not   privileged or confidential under this section and is subject to   public disclosure.          Sec. 2201.120.  CRIMINAL BACKGROUND INVESTIGATION FOR   CASINO GAMING OR SPORTS WAGERING. (a)  The commission is entitled   to conduct an investigation of and is entitled to obtain criminal   history record information maintained by the Department of Public   Safety, the Federal Bureau of Investigation Identification   Division, or another law enforcement agency to assist in the   criminal background investigation of any person directly involved   with casino gaming, sports wagering, or other gambling regulated   under this subtitle.          (b)  Except as otherwise provided by this subtitle, a   criminal background investigation is governed by commission rules   adopted under this chapter.          (c)  The Department of Public Safety or a state or local law   enforcement agency in this state, in accordance with an interagency   agreement with the commission, shall provide any assistance   requested by the commission in the administration and enforcement   of this subtitle, including conducting criminal background   investigations of a person seeking a license required under this   subtitle or of any person required to be named in an application for   a license under this subtitle.          (d)  This section does not limit the commission's right to   obtain criminal history record information from any other local,   state, or federal agency.  The commission may enter into a   confidentiality agreement with the agency as necessary and proper.          (e)  Except as otherwise provided by this subtitle or other   law, criminal history record information obtained by the commission   under this section may be disclosed only:                (1)  to another law enforcement agency to assist in or   further an investigation related to the commission's operation and   oversight of gaming; or                (2)  under a court order.          Sec. 2201.121.  PLAYER AGREEMENT TO ABIDE BY RULES AND   INSTRUCTIONS.  By participating as a player, a player agrees to   abide by and be bound by the commission's and the license holder's   rules and instructions, including the rules or instructions   applicable to the particular gambling game or sports wagering   involved. The player also agrees that the determination of whether   the player is a valid winner is subject to:                (1)  the commission's and the license holder's rules,   instructions, and claims procedures, including those developed for   the particular gambling game or sports wagering involved;                (2)  any validation tests established by the commission   for the particular gambling game or sports wagering involved; and                (3)  the limitations and other provisions prescribed by   this subtitle.          Sec. 2201.122.  VENUE FOR CRIMINAL PROCEEDING.  Venue is   proper in Travis County or any county in which venue is proper under   Chapter 13, Code of Criminal Procedure, for:                (1)  an offense under this subtitle;                (2)  an offense under the Penal Code, if the accused:                      (A)  is regulated under this subtitle; and                      (B)  is alleged to have committed the offense   while engaged in casino gaming or sports wagering activities; or                (3)  an offense under Title 7 or 11, Penal Code, that   involves property consisting of or including a gaming device or   gambling game prize.   SUBCHAPTER D. PUBLIC PARTICIPATION AND COMPLAINT PROCEDURES          Sec. 2201.151.  PUBLIC INTEREST INFORMATION. (a)  The   commission shall prepare and disseminate consumer information that   describes the regulatory functions of the commission and the   procedures by which consumer complaints are filed with and resolved   by the commission.          (b)  The commission shall make the information available to   the public and appropriate state agencies.          Sec. 2201.152.  COMPLAINTS. (a)  The commission by rule   shall establish methods by which consumers and service recipients   are notified of the name, mailing address, telephone number, and   other contact information of the commission for the purpose of   directing complaints to the commission. The commission may provide   for that notice:                (1)  on each form, application, or written contract for   services of a person regulated under a law administered by the   commission;                (2)  on a sign prominently displayed in the place of   business of each person regulated under a law administered by the   commission; or                (3)  in a bill for service provided by a person   regulated under this subtitle.          (b)  The commission shall list with its regular telephone   number any toll-free telephone number established under other state   law that may be called to present a complaint about a person   regulated under this subtitle.          Sec. 2201.153.  RECORDS OF COMPLAINTS. (a)  The commission   shall maintain a system to promptly and efficiently act on   complaints filed with the commission.  The commission shall   maintain:                (1)  information about the parties to the complaint and   the subject matter of the complaint;                (2)  a summary of the results of the review or   investigation of the complaint; and                (3)  information about the disposition of the   complaint.          (b)  The commission shall make information available   describing its procedures for complaint investigation and   resolution.          (c)  The commission shall periodically notify the parties of   the status of the complaint until final disposition of the   complaint.          Sec. 2201.154.  GENERAL RULES REGARDING COMPLAINT   INVESTIGATION AND DISPOSITION.  The commission shall adopt rules   concerning the investigation of a complaint filed with the   commission. The rules must:                (1)  distinguish between categories of complaints;                (2)  ensure that complaints are not dismissed without   appropriate consideration;                (3)  require that the commission be advised of a   complaint that is dismissed and that a letter be sent to the person   who filed the complaint explaining the action taken on the   dismissed complaint;                (4)  ensure that the person who files a complaint has an   opportunity to explain the allegations made in the complaint; and                (5)  prescribe guidelines concerning the categories of   complaints that require the use of a private investigator and the   procedures for the commission to obtain the services of a private   investigator.          Sec. 2201.155.  DISPOSITION OF COMPLAINT. (a)  The   commission shall:                (1)  dispose of each complaint in a timely manner; and                (2)  establish a schedule for conducting each phase of   a complaint that is under the control of the commission not later   than the 30th day after the date the commission receives the   complaint.          (b)  Each party shall be notified of the projected time   requirements for pursuing the complaint.  The commission shall   notify each party to the complaint of any change in the schedule   established under Subsection (a)(2) not later than the seventh day   after the date the change is made.          (c)  The executive director shall notify the commission of a   complaint that is not resolved within the time prescribed by the   commission for resolving the complaint.          Sec. 2201.156.  PUBLIC PARTICIPATION. (a)  The commission   shall develop and implement policies that provide the public with a   reasonable opportunity to appear before the commission and to speak   on any issue under the commission's jurisdiction.          (b)  The commission shall prepare and maintain a written plan   that describes how a person who does not speak English may be   provided reasonable access to the commission's programs.          Sec. 2201.157.  INFORMAL SETTLEMENT CONFERENCE.  The   commission by rule shall establish procedures for an informal   settlement conference related to a complaint filed with the   commission.   CHAPTER 2202. CASINO GAMING; SPORTS WAGERING   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 2202.001.  PUBLIC POLICY. (a)  All casino gaming and   sports wagering that is conducted in this state and that is   authorized by law shall be regulated and licensed under this   chapter, unless federal law or another state law specifically   provides otherwise.          (b)  The legislature hereby finds, and declares it to be the   public policy of this state, that:                (1)  the development of regulated casino gaming at a   limited number of destination resorts in the state will benefit the   general welfare of the people of this state by enhancing   investment, economic development, and tourism in this state,   resulting in thousands of new jobs and significant new revenue to   the state for essential services;                (2)  the conduct of regulated casino gaming by adults   of legal age in a limited number of destination resorts will not   harm the welfare of this state;                (3)  the regulation of casino gaming and sports   wagering in this state is important to ensure that casino gaming and   sports wagering is:                      (A)  conducted honestly and competitively; and                      (B)  free from criminal and corruptive elements;                (4)  public confidence and trust can be maintained only   by strict regulation of all persons, locations, practices,   associations, and activities related to the conduct of casino   gaming, the casino service industry, and sports wagering;                (5)  persons owning any direct or indirect material   interest in a casino should be licensed and controlled to protect   the public health, safety, morals, good order, and general welfare   of the people of this state;                (6)  certain operators and employees of casinos should   be regulated, licensed, and controlled to accomplish and promote   these public policies while protecting the public health, safety,   morals, good order, and general welfare of the people of this state;                (7)  certain persons engaging in the casino service   industry should be regulated, licensed, and controlled to   accomplish and promote these public policies while protecting the   public health, safety, morals, good order, and general welfare of   the people of this state; and                (8)  it is the intent of the legislature that the   resources, goods, labor, and services of the people of this state be   used, where possible, in the operation and construction of   destination resorts, casinos, and related amenities to the extent   allowable by law.          Sec. 2202.002.  EXEMPTION FROM FEDERAL STATUTE. (a)  This   chapter provides an exemption to the application of 15 U.S.C.   Section 1172, in accordance with that section.          (b)  All shipments of gaming devices into this state,   including slot machines, conducted in compliance with the   applicable provisions of 15 U.S.C. Sections 1173 and 1174 are legal   shipments of the devices into this state.          Sec. 2202.003.  CONSTRUCTION; APPLICABILITY OF OTHER LAWS.   (a)  Nothing in this chapter may be construed to implicitly repeal   or modify existing state laws with respect to gambling, except that   casino gaming and sports wagering is not prohibited by another law   if conducted as authorized under this chapter.          (b)  To the extent of any conflict between Chapter 2003,   Government Code, and this chapter or a commission rule governing   casino gaming or sports wagering, this chapter or the commission   rule prevails in all matters related to casino gaming or sports   wagering, including in connection with hearings before the State   Office of Administrative Hearings.          (c)  This chapter prevails to the extent of any conflict   between this chapter and a provision of Subtitle A-1, Title 13   (Texas Racing Act).          Sec. 2202.004.  AUTHORITY TO IMPLEMENT CASINO GAMING AND   SPORTS WAGERING.  (a)  The commission may implement casino gaming   and sports wagering in accordance with this subtitle.          (b)  The commission shall allow the operation of limited   casino gaming pursuant to this subtitle at locations on Indian   lands in accordance with an effective gaming agreement and in   compliance with applicable federal law.          Sec. 2202.005.  IMMUNITY FOR STATEMENT MADE IN PROCEEDING OR   INVESTIGATION.  Any member or agent of the commission or any witness   testifying under oath has absolute privilege for any written or   oral statement made in the course of, and relevant to the purpose   of, an official commission proceeding or investigative activities   related to commission licensing under this chapter. Such written or   oral statement does not impose liability for defamation or   constitute a ground for recovery in any civil action.          Sec. 2202.006.  FINDING OF SUITABILITY.  To promote the   integrity and security of casino gaming and sports wagering under   this subtitle, the commission in its discretion may require a   finding of suitability for any person conducting business with or   in relation to the operation of casino gaming or sports wagering who   is not otherwise required to obtain a license from the commission   for the person's operations.          Sec. 2202.007.  CONSENT TO COMMISSION DETERMINATION.  (a)     An application for a license under this chapter constitutes a   request to the commission for a decision on the applicant's general   suitability, character, integrity, and ability to participate or   engage in or be associated with casino gaming or sports wagering   under this chapter in the manner or position sought.          (b)  By filing an application with the commission, the   applicant specifically consents to the commission's determination   if the application, after filing, becomes moot for any reason other   than death.          Sec. 2202.008.  LICENSING AS REVOCABLE PERSONAL PRIVILEGES.   (a)  An applicant for a license under this chapter does not have any   right to the license sought.          (b)  Any license issued under this chapter is a revocable   privilege, and not a right or property under the United States   Constitution or the Texas Constitution. An applicant or license   holder does not acquire any vested right in or under the privilege.          (c)  The courts of this state have jurisdiction to review a   decision to deny, limit, or condition a casino license pursuant to   Section 2202.357 or if judicial review is sought on the ground that   the denial, limitation, or condition violates the Texas   Constitution or is based on a suspect classification, such as race,   color, religion, sex, or national origin, in violation of the Equal   Protection Clause of the Fourteenth Amendment to the United States   Constitution. The state court must affirm the commission's action   unless the violation is proven by clear and convincing evidence.          (d)  A license issued or renewed under this chapter may not   be transferred or assigned to another person unless approved in   advance by the commission, and a license may not be pledged as   collateral.  The purchaser or successor of a license holder must   independently qualify for a license required by this chapter.          (e)  The following acts are void unless approved by the   commission in advance or within 60 days of the occurrence of the   act:                (1)  the transfer, sale, or other disposition of an   interest in the license holder that results in a change in the   identity of an equity interest holder requiring qualification under   Section 2202.060; or                (2)  the sale of the assets of the license holder, other   than assets bought and sold in the ordinary course of business, or   any interest in the assets, to any person not already determined to   have met the applicable qualifications of this chapter.          Sec. 2202.009.  PRIZE RULES, PAYMENT, AND REDEMPTION.  (a)     The payment of prizes is the sole and exclusive responsibility of   the casino license holder or operator license holder. A prize may   not be paid by the commission or this state except as otherwise   authorized.          (b)  Nothing in this chapter limits the ability of a casino   license holder or an operator license holder to provide promotional   prizes, including wide area progressive networks, in addition to   prize payouts regulated by the commission.          (c)  The commission shall enact rules consistent with this   section governing the use and redemption of prizes and credits   recorded on player account records, such as players' club cards and   smart cards.          Sec. 2202.010.  REPORT ON LITIGATION.  (a)  A casino license   holder or an operator license holder shall report to the commission   any litigation relating to casino or sports wagering operations,   including a criminal proceeding, a proceeding involving an issue   related to pari-mutuel activities that impact casino gaming or   sports wagering operations, or a matter related to character or   reputation relevant to a person's suitability under this chapter.          (b)  The report required under Subsection (a) must be filed   not later than the 30th day after the date the license holder   acquires knowledge of the litigation.          Sec. 2202.011.  COMMISSION APPROVAL REQUIRED FOR PROCEDURES   AND ADMINISTRATIVE AND ACCOUNTING CONTROLS. (a)  The commission's   or executive director's approval is required for all internal   procedures and administrative and accounting controls of a casino   license holder or an operator license holder.          (b)  The commission by rule shall establish general   accounting and auditing requirements and internal control   standards for the conduct of casino gaming at casinos.          Sec. 2202.012.  GAMING EMPLOYEE REPORTING. (a)  In this   section, "employee" includes any person connected directly with or   compensated by an applicant or license holder as an agent, personal   representative, consultant, or independent contractor.          (b)  On or before the 15th day of each month, a casino owner   or casino operator license holder shall submit to the commission a   gaming employee report for the casino operated by the owner or   operator. For each gaming employee, the report must provide the   employee's name, job title, date of birth, and social security   number.          (c)  The gaming employee report is confidential and may not   be disclosed except under commission order or in accordance with   this subtitle.          (d)  The commission may conduct criminal history background   investigations of gaming employees.          (e)  The commission may prohibit an employee from performing   any act relating to gaming if the commission finds that an employee   has:                (1)  committed, attempted, or conspired to commit any   act prohibited by this chapter;                (2)  concealed or refused to disclose any material fact   in any commission investigation;                (3)  committed, attempted, or conspired to commit an   offense involving or related to larceny or embezzlement;                (4)  been convicted in any jurisdiction of an offense   involving or relating to gambling;                (5)  accepted and continued in employment in a position   for which commission approval is required after commission approval   was denied for a reason involving personal unsuitability or after   failing to apply for approval on commission request;                (6)  been prohibited under color of governmental   authority from being present on the premises of any casino or any   establishment where casino gaming or pari-mutuel wagering is   conducted for any reason relating to improper gambling activity or   other illegal acts;                (7)  wilfully defied any legislative investigative   committee or other officially constituted body acting on behalf of   the United States or any state, county, or municipality that sought   to investigate alleged or potential crimes relating to gambling,   corruption of public officials, or any organized criminal   activities; or                (8)  been convicted of any felony or any crime   involving moral turpitude.          (f)  The commission may prohibit an employee from performing   any act relating to casino gaming based on a revocation or   suspension of any casino gaming or pari-mutuel wagering license or   for any other reason the commission finds appropriate, including a   refusal by a regulatory authority to issue a license for the   employee to engage in or be involved with casino gaming or with   other regulated gaming or pari-mutuel wagering in any jurisdiction.          Sec. 2202.013.  REPORT OF VIOLATIONS.  A person who holds a   license under this chapter shall immediately report a violation or   suspected violation of this chapter or a rule adopted under this   chapter by any license holder, by an employee of a license holder,   or by any person on the premises of a casino, whether or not   associated with the license holder.          Sec. 2202.014.  INDEMNIFICATION, INSURANCE, AND BONDING   REQUIREMENTS.  (a)  A license holder shall indemnify and hold   harmless this state, the commission, and all officers and employees   of this state and the commission from any and all claims which may   be asserted against a license holder, the commission, this state,   and the members, officers, employees, and authorized agents of this   state or the commission arising from the license holder's   participation in casino gaming authorized under this subtitle.          (b)  Surety and insurance required under this chapter may   only be issued by companies or financial institutions financially   rated "A-" or better as rated by AM Best Company or another rating   organization designated by the commission and duly licensed,   admitted, and authorized to conduct business in this state, or by   other surety approved by the commission.          (c)  The commission shall be named as the obligee in each   required surety and as an additional insured in each required   insurance contract.          (d)  A casino license holder or an operator license holder   may not be self-insured with regard to gaming operations under this   section in excess of $50,000,000 per occurrence.          (e)  The commission by rule shall establish minimum   insurance coverage requirements for license holders under this   chapter, including:                (1)  crime or fidelity insurance against losses caused   by fraudulent or dishonest acts by an officer or employee of the   license holder;                (2)  commercial general liability insurance;                (3)  property insurance;                (4)  business auto liability insurance.          Sec. 2202.015.  LIABILITY FOR CREDIT AWARDED OR DENIED;   PLAYER DISPUTE. This state and the commission are not liable for   any gaming device malfunction or error occurring at a casino that   causes credit to be wrongfully awarded or denied to players.   SUBCHAPTER B. CASINO LICENSE          Sec. 2202.051.  CASINO LICENSE; LIMITED NUMBER; CASINO   LOCATIONS. (a)  Casino gaming and sports wagering may be lawfully   conducted in a casino operating under a casino license.  The   commission shall issue casino licenses as required and limited by   the Texas Constitution.          (b)  A person may not own an equity interest in a casino at   which casino gaming, sports wagering, or other gambling is   conducted in this state unless the casino is operating under a   casino license issued for the conduct of gambling at that casino.          (c)  A separate casino license must be obtained for each   casino conducting casino gaming, sports wagering, or other gambling   regulated by the commission.  The commission shall not issue a   casino license if such issuance would cause the number of active   casino licenses to exceed any limit established by the Texas   Constitution or this subtitle.          (d)  The commission shall not issue a casino license for a   casino located outside of an area where a casino may be located   pursuant to the Texas Constitution and this subtitle.          (e)  The commission may issue a temporary license for one   year or less to authorize the casino license holder to temporarily   conduct casino gaming and sports wagering in accordance with   commission rules at a location within 20 miles of the site for which   the casino license was issued.          (f)  For purposes of determining the location of a casino, a   casino is considered to be located in the county in which the main   public entrance to the casino is located.          Sec. 2202.052.  APPLICATION.  (a)  A person seeking a casino   license shall submit an application in accordance with commission   rules containing information the commission finds necessary to   determine:                (1)  the suitability and eligibility of the applicant;                (2)  the eligibility of the proposed location; and                (3)  the economic impact of the overall destination   resort or casino project.          (b)  In addition to any other information the commission may   require, an application must include the following information   concerning the feasibility of the overall destination resort:                (1)  proof that casino gaming was approved by the   constitutional amendment proposed by the 88th Legislature, Regular   Session, 2023, authorizing and regulating casino gaming at   destination resorts;                (2)  evidence that the applicant possesses, or has the   right to acquire, sufficient real property on which the proposed   destination resort will be located that accommodates the   applicant's construction and operation of the destination resort   substantially as proposed;                (3)  evidence that the applicant will meet, and a   specific schedule for meeting, all requirements established by the   Texas Constitution to conduct casino gaming, including   satisfaction of any minimum new investment commitment;                (4)  evidence that the applicant is of good character,   honesty, and integrity;                (5)  evidence that issuance of the casino license will   not be detrimental to the public interest or the casino gaming   industry;                (6)  a detailed estimate of the total new investment to   be made by the applicant for the destination resort and evidence of   the applicant's financial capacity to operate and complete   development of the destination resort;                (7)  evidence that the applicant possesses, or   reasonably expects to obtain, all state, county, and municipal   permits and approvals necessary for the construction and operation   of the proposed destination resort within the time prescribed in   this chapter; and                (8)  evidence that the applicant is prepared to begin   construction of its proposed destination resort within 24 months of   receiving a casino license and to proceed with the construction of   the destination resort or casino without unnecessary delay.          (c)  An applicant may apply for not more than two casino   licenses but must submit a separate application for each   destination resort for which a casino license is sought.          Sec. 2202.053.  CASINO LICENSE ISSUED TO INDIAN TRIBE;   AGREEMENT.  (a)  In addition to the casino licenses issued under   this subchapter, the commission may issue a casino license to a   federally recognized Indian tribe that had Indian lands in this   state held in trust by the United States on January 1, 1998. A   license issued under this subsection authorizes the tribe to   operate not more than one casino on Indian lands held in trust by   the United States on January 1, 1998.          (b)  A casino license issued by the commission under   Subsection (a) to an Indian tribe constitutes an agreement between   this state and the tribe for purposes of the Indian Gaming   Regulatory Act (18 U.S.C. Sections 1166-1168 and 25 U.S.C. Section   2701 et seq.).          (c)  An Indian tribe to which Subsection (a) applies may, in   lieu of a casino license, operate a casino on Indian lands described   by Subsection (a) under an agreement with this state.  The agreement   is governed by this chapter and Chapter 2203.          (d)  A casino license may not be issued for a location in an   area in which casino gaming is prohibited under a gaming agreement   between an Indian tribe and this state.          Sec. 2202.054.  MANDATORY REQUIREMENTS. (a) A company is   eligible to apply for and hold a casino license only if:                (1)  the company is incorporated or organized and in   good standing in this state or organized under the laws of another   state of the United States and qualified to conduct business in this   state; and                (2)  the company complies with all laws of this state.          (b)  To be eligible to receive a casino license, an applicant   must submit an application to the commission by the date   established by the commission.          (c)  An application may not be considered filed for purposes   of this chapter if the application does not include the information   prescribed by Section 2202.052(b) or is not accompanied by the   required application fee.          Sec. 2202.055.  CASINO LICENSE INITIAL AND CONTINUING   SUITABILITY CONSIDERATIONS. (a) The commission shall determine   the initial and continuing suitability of each applicant for or   holder of a casino license based on suitability criteria the   commission prescribes by rule to ensure that all casino license   holders are of good character, honesty, integrity, and financial   stability, that a casino license holder has sufficient business   probity and competence, and that a casino license holder meets   other applicable qualifications for the issuance of the license.          (b)  The commission shall give due consideration to the   protection of the public health, safety, morals, and general   welfare of the people of this state and for the reputation of the   state's casino gaming industry.          (c)  In considering the initial and continuing suitability   of an applicant for or holder of a casino license, the commission   shall consider:                (1)  whether the applicant or casino license holder is   a "qualified applicant" as defined by Section 47-a, Texas   Constitution;                (2)  the applicant's or casino license holder's   experience in conducting licensed casino gaming operations and the   applicant's financial ability to promptly construct and adequately   maintain the proposed casino project; and                (3)  the applicant's or casino license holder's   progress towards satisfaction of any minimum new investment   commitment established in the Texas Constitution and the schedule   specified in the application.          (d)  In determining whether an applicant meets any minimum   investment commitment established in the Texas Constitution, the   commission may not consider the expenditure of any public money or   facilities developed or built with public assistance or tax   incentives of any kind.          (e)  The burden of proving suitability to receive or hold a   casino license is on the applicant or license holder.          (f)  In considering the initial and continuing suitability   of an applicant for or holder of a casino license, the commission   may consider the suitability of:                (1)  each person holding an equity interest in the   applicant or license holder requiring qualification under Section   2202.060;                (2)  each person holding, or proposed to receive, an   operator license, occupational license, or manufacturer license   employed by or conducting business with the applicant or license   holder; and                (3)  each affiliate of the applicant or license holder.          (g)  An applicant for or holder of a casino license may not   receive or hold a casino license if the person or an officer or   director:                (1)  has been convicted of a felony in the past 20 years   under the laws of this state, any other state, or the United States;                (2)  has ever knowingly or intentionally submitted an   application for a license under this chapter that contained false   information;                (3)  served as a principal manager for an applicant or   license holder described by Subdivision (1) or (2);                (4)  retains or employs another person described by   Subdivision (2);                (5)  holds a manufacturer license or casino service   license;                (6)  is a commission member; or                (7)  is a member of the judiciary or an elected official   of this state.          (h)  The commission may adopt rules providing for a person's   reciprocal determination of suitability to hold a casino license   based in part on a determination of suitability to own and operate a   casino in any other jurisdiction the commission considers   reasonable in light of the purpose of this chapter.          Sec. 2202.056.  REVIEW OF APPLICATION. (a) The commission   shall issue an order approving or denying an application for a   casino license not later than 180 days after the date the   application is filed.          (b)  The commission may adopt rules for issuing any temporary   or interim licenses the commission finds necessary to administer   this chapter.          Sec. 2202.057.  TRANSFERABILITY; SITE. A casino license is   not transferable unless approved in advance by the commission. A   casino license authorizes casino gaming only at the specific site   identified in the license.          Sec. 2202.058.  REPLACEMENT CASINO LICENSE. (a) Provided   that the number and location of casinos operating pursuant to   active casino licenses does not exceed any limit or violate any   restriction established by the Texas Constitution, if a casino   license has expired without being renewed, been revoked, or been   permanently surrendered, the commission may issue a replacement   casino license to an applicant that proposes to conduct casino   gaming at the same destination resort that operated pursuant to the   now-expired, now-revoked, or now-permanently surrendered license   or at a new destination resort located in the same metropolitan   statistical area. A casino license issued to conduct casino gaming   at a new destination resort located in the same metropolitan   statistical area as a destination resort that operated pursuant to   a now-expired, now-revoked, or now-permanently surrendered license   shall include a condition requiring the license holder to make   minimum new investments for the development of the new destination   resort in the amount required of an initial qualified applicant, as   that term is used in the Texas Constitution.          (b)  In determining whether to issue a casino license to an   applicant under Subsection (a), the commission shall determine the   initial suitability of the applicant using the considerations and   requirements established in Sections 2202.054 and 2202.055.          (c)  The commission may adopt rules providing additional   considerations or requirements related to issuance of a casino   license pursuant to Subsection (a).          Sec. 2202.059.  DENIAL, SUSPENSION, AND REVOCATION. (a)   The commission may deny an application for a casino license or   suspend or revoke a casino license if the commission determines   that the applicant or casino license holder is unsuitable to hold a   casino license based on the applicant's or casino license holder's   failure to meet or maintain the requirements of Section 2202.054 or   the applicant's or casino license holder's lack of suitability as   determined by the commission pursuant to Section 2202.055.          (b)  If the commission has reasonable grounds to believe that   an applicant may be unsuitable as provided by Subsection (a), the   commission shall conduct an investigation and hearing under   Sections 2202.351 and 2202.356 and may, based on its determination,   deny issuance of the license.          (c)  If the commission has reasonable grounds to believe that   a casino license holder may be unsuitable to continue to hold a   casino license, the commission shall conduct an investigation and   hearing under Sections 2202.351 and 2202.356 and may, based on its   determination, suspend, limit, or revoke the license. On   suspension or revocation of a casino license, the license holder   must immediately cease all casino gaming activities.          (d)  If the holder of a casino license fails to begin   construction of a casino within 24 months after the receipt of the   casino license, or fails to begin casino gaming operations within   five years after the receipt of the license, the license may be   forfeited, unless the commission, for good cause, has previously   granted an appropriate extension of time. The commission shall   adopt rules regarding the process and substantive reasons for   granting an extension of time.          Sec. 2202.060.  REGISTRATION OF INTEREST IN APPLICANT OR   LICENSE HOLDER. (a) Except as provided by Subsection (b), a person   who directly or indirectly owns an equity interest in an applicant   for a casino license or a casino license holder shall register and   qualify with the commission under commission rules and shall   provide information the commission finds necessary to determine the   suitability and eligibility of the person to retain the interest.          (b)  The following persons are not required to register or   qualify under this section:                (1)  a key employee of the casino license holder that is   required to apply for an occupational license under Section   2202.102;                (2)  an institutional investor that is a record owner   of 25 percent or less of the total equity of the casino license   holder;                (3)  a person that beneficially owns five percent or   less of the total equity of the casino license holder; and                (4)  any other group or class of persons that the   commission by rule exempts from registration or qualification.          (c)  A casino license holder shall provide to the commission   the name, address, and interest in the casino license holder of each   person who is exempt from registration or qualification under   Subsection (b).          (d)  A registration filed under this section must be   accompanied by the application fee set out in Section 2202.202.          Sec. 2202.061.  TRANSFERABILITY OF INTEREST; LIMITATION ON   OWNERSHIP. (a) Except as provided by this subsection, a casino   license holder may not issue an equity interest to a person without   the commission's determination of the qualification of the proposed   subscriber or purchaser to hold the interest. A casino license   holder that is a publicly held company or is wholly owned by one or   more publicly held companies may issue equity interests of five   percent or less of its equity interest to any person without the   consent of the commission.          (b)  A person beneficially owning more than five percent of   the equity interest of a casino license holder may not transfer an   interest in the license holder requiring qualification under   Section 2202.060 to any person without the commission's   determination of the qualification of the proposed transferee to   hold the interest, except that a person may transfer five percent or   less of its interest in the license holder to an affiliate of the   transferor or an individual related to the transferor within the   fourth degree by affinity or consanguinity, as determined under   Chapter 573, Government Code, provided that notice is given to the   commission at least 90 days in advance of the transfer.          (c)  A person beneficially owning more than five percent of   the equity interest of a casino license holder may not   simultaneously beneficially own more than five percent of the   equity interest of more than one other casino license holder   licensed under this subtitle.          (d)  A subscriber or proposed transferee of an interest by a   casino license holder shall provide the commission with information   the commission considers necessary to determine the qualification   of the person. The commission, not later than 60 days after the   date of the application, shall determine the qualification of a   subscriber or proposed transferee and approve or deny the issuance   or transfer.          Sec. 2202.062.  DETERMINATION OF QUALIFICATION. (a) The   commission shall determine the qualification of a person to acquire   or continue to hold an equity interest in an applicant for or holder   of a casino license based on the qualification requirements the   commission adopts for the protection of the public interest to   ensure that persons holding securities issued by license holders   are of good character, honesty, integrity, and financial stability,   and are otherwise qualified to hold the interest.          (b)  The burden of proving qualification to acquire or hold   an equity interest in a license holder is on the person acquiring or   holding the interest.          (c)  A person is unsuitable to acquire or retain an equity   interest in an applicant for or holder of a casino license if the   person would be unsuitable to receive a casino license under   Section 2202.055(g).          (d)  If the commission has reasonable grounds to believe that   a person holding an equity interest in an applicant for or holder of   a casino license may be unqualified to retain the person's   interest, the commission shall conduct an investigation and hearing   under Sections 2202.351 and 2202.356 and may, based on its   determination, issue an unsuitability finding and divestiture   order to the holder of the interest and the issuer of the interest.   On receipt of a divestiture order, the person holding the interest   shall tender the person's entire interest for purchase to the   issuer or a third party on terms the commission approves.          (e)  If the commission issues an unsuitability finding and   divestiture order to a holder of an equity interest, the person   subject to the order may not:                (1)  receive, directly or indirectly, a dividend,   interest, payment, or distribution of any kind relating to the   security that is the subject of the order; or                (2)  exercise, directly or indirectly, any voting power   or other right with respect to the security to which the order   relates.          (f)  A person subject to an order may receive payment for the   sale of the person's interest on terms the commission approves.          Sec. 2202.063.  HORSE RACING; GREYHOUND RACING; SCOPE OF   COMMISSION AUTHORITY GOVERNING RACETRACK ASSOCIATIONS. (a) The   commission by rule shall ensure that a casino license holder that is   also a racetrack association that holds a license to conduct a horse   race meeting pursuant to Subtitle A-1, Title 13 (Texas Racing Act)   at a class 1 racetrack continues to maintain live horse racing   operations consistent with a minimum number of live race dates that   were conducted in the calendar year 2022.          (b)  A racetrack association that holds a license to conduct   a greyhound race meeting pursuant to Subtitle A-1, Title 13 (Texas   Racing Act) shall cease all greyhound racing operations and   surrender that license as a condition to receiving and holding a   casino license or naming a designee to receive and hold a casino   license as provided by the Texas Constitution.          (c)  If required by the Texas Constitution, a racetrack   association that holds a license to conduct a race meeting at a   racetrack pursuant to Subtitle A-1, Title 13 (Texas Racing Act)   shall cease all racing operations at that racetrack and surrender   that license as a condition to receiving and holding a casino   license or naming a designee to receive and hold a casino license as   provided by the Texas Constitution.          (d)  Except as otherwise authorized by the commission, the   casino operations and financial records of a casino license holder   that is also a racetrack association shall be kept separate from the   racing operations and records of the license holder.          (e)  Activities regulated by the Texas Racing Commission   pursuant to Subtitle A-1, Title 13 (Texas Racing Act) are not   subject to the authority of the commission.          Sec. 2202.064.  TERM OF CASINO LICENSE. Each casino license   issued under this subchapter expires on the 50th anniversary of the   date of issuance and may be renewed for one or more terms of 50   years.          Sec. 2202.065.  LOCAL ZONING LAWS. Notwithstanding any   other law, destination resorts at which casino gaming is authorized   under this subchapter shall be subject to any applicable local   government zoning and land use regulations in place on January 1,   2023. To the extent destination resorts could be classified under   multiple regulations or classifications, local government zoning   and land use authorities shall treat and classify destination   resorts under the most permissive classification so as to ensure   the maximum economic benefit to the state in the shortest possible   timeline.   SUBCHAPTER C. OPERATOR LICENSE AND OCCUPATIONAL LICENSE          Sec. 2202.101.  OPERATOR LICENSE. A person may not provide   services as an operator unless the person holds an operator   license. An operator license holder must hold a separate operator   license for each casino that the license holder operates.          Sec. 2202.102.  OCCUPATIONAL LICENSE. (a) Except as   provided by Subsection (b), a person may not be employed as a gaming   employee unless the person holds an occupational license.          (b)  A casino license holder or operator license holder is   not required to obtain an occupational license to provide services   as a gaming employee in the casino to which the license relates.          (c)  A casino license holder shall designate not fewer than   one occupational license holder as a key employee having   responsibility over all gaming activities. The commission shall   note on each key employee's occupational license that the   individual is designated as a key employee. At least one key   employee must be available at the casino at all times when casino   gaming is conducted on the casino license holder's premises.          Sec. 2202.103.  APPLICATION. (a) An application for an   operator license or an occupational license shall be made in   compliance with commission rules and must contain information the   commission finds necessary to determine the suitability and   eligibility of the applicant to function as a casino operator or to   be employed or retained as a gaming employee.          (b)  An application for an operator license or an   occupational license must be accompanied by the required   application fee.          (c)  The commission may issue a temporary operator license   and a temporary occupational license. The commission shall adopt   rules regarding the terms of temporary operator licenses and   temporary occupational licenses.          Sec. 2202.104.  RESIDENCY. A person is eligible to apply for   and hold an operator license or occupational license without regard   to the residency of the applicant.          Sec. 2202.105.  DETERMINATION OF SUITABILITY. (a) The   commission shall determine the suitability of an applicant for or   holder of an operator license or occupational license based on   suitability criteria the commission adopts in order to ensure that   a license holder:                (1)  is of good character, honesty, and integrity;                (2)  has sufficient business probity, competence, and   training or experience in the gaming industry to perform the   function contemplated; and                (3)  is otherwise qualified to be licensed.          (b)  The burden of proving suitability to receive and hold an   operator license or occupational license is on the applicant or   license holder.          (c)  In considering the suitability of a company applying for   or holding an operator license or occupational license to receive   and continue to hold the license, the commission shall consider the   suitability of each principal manager and each holder of more than   five percent of the equity interest of the company to individually   receive and hold an occupational license based on the suitability   standards that apply to the applicants for the license generally.          (d)  A person may not be found suitable to receive or hold an   operator license or occupational license if that person would be   found unsuitable to hold a casino license under Section   2202.055(g), except that an applicant for an operator license or   occupational license who has been convicted of a felony may be found   suitable if the person is found to be adequately rehabilitated   under applicable rehabilitation requirements adopted by the   commission and the applicant or license holder is otherwise   suitable for licensing.          Sec. 2202.106.  DENIAL, SUSPENSION, AND REVOCATION. (a)   The commission may deny an application for an operator license or   occupational license or suspend, limit, or revoke an operator   license or occupational license for a reasonable cause.          (b)  If the commission has reasonable cause to believe that   an operator license holder or occupational license holder may be   unsuitable to continue to hold the license, giving due   consideration to the protection of the health, safety, morals, and   general welfare of this state and to the reputation of the state's   gaming industry, the commission shall conduct an investigation and   hearing under Sections 2202.351 and 2202.356 and may, based on its   determination, suspend, limit, or revoke the license. On the   suspension or revocation of an operator license or occupational   license, the license holder shall cease the provision of all   services in any capacity requiring a license under Section 2202.101   or 2202.102.          (c)  A holder of an operator license or occupational license   that has been revoked or suspended may not, while the license is   revoked or suspended:                (1)  receive, directly or indirectly, any   compensation, consideration, or payment of any kind relating to the   conduct of casino gaming in any capacity requiring a license under   Section 2202.101 or 2202.102, other than the payment for services   rendered before the suspension or revocation; or                (2)  serve or function in a capacity that would require   a license under Section 2202.101 or 2202.102.   SUBCHAPTER D. MANUFACTURER LICENSE AND CASINO SERVICE LICENSE          Sec. 2202.151.  MANUFACTURER LICENSE. (a) A person may not   engage in any segment of the slot machine manufacturing industry in   this state that requires a manufacturer license under this section   without obtaining a manufacturer license covering that segment of   the industry. This subsection applies only to slot machines   manufactured for use in this state.          (b)  The commission shall adopt rules identifying segments   of the manufacturing industry directly involved in the design,   manufacture, assembly, production, programming, sale, lease,   marketing, distribution, repair, or modification of slot machines   or component parts of slot machines that the commission finds   appropriate for licensing under this section.          (c)  A manufacturer license is personal to the license holder   and allows the license holder to conduct business with any casino.          Sec. 2202.152.  CASINO SERVICE LICENSE. (a) A person may   not engage in any segment of the casino service industry that   requires a casino service license under this section without   obtaining a casino service license.          (b)  The commission shall adopt rules identifying segments   of the casino service industry directly involved with providing   casino gaming-related services, equipment, and supplies that the   commission finds appropriate for licensing under this section.          (c)  A person is required to obtain a casino service license   if the person:                (1)  operates, conducts, or maintains a casino   gaming-related business; or                (2)  furnishes goods, property, or services to a casino   in exchange for:                      (A)  a payment based on a percentage of the   earnings, profits, or receipts from the casino; or                      (B)  a payment the commission finds to be grossly   disproportionate to the value of the goods, property, or service   provided.          (d)  A utility company, a retail electric provider, a   municipality, or another political subdivision is not required to   obtain a casino service license under this section.          (e)  A casino service license is personal to the license   holder and allows the license holder to conduct business with any   casino.          (f)  A casino license holder or operator license holder or an   employee, officer, or director of a casino license holder or   operator license holder is not required to obtain a casino service   license to provide services for or in the casino to which the casino   license or operator license relates.          Sec. 2202.153.  APPLICATION. (a) A person seeking a   manufacturer license or casino service license shall submit an   application in accordance with commission rules.          (b)  The application must:                (1)  contain information the commission finds   necessary to determine the suitability and eligibility of the   applicant; and                (2)  be accompanied by the required application fee.          Sec. 2202.154.  DETERMINATION OF SUITABILITY. (a) In   considering the suitability of a company applying for or holding a   manufacturer license or casino service license to receive and   continue to hold the license, the commission shall consider the   suitability of each principal manager and each holder of more than   five percent of the equity interest of the company to individually   receive and hold a manufacturer license or casino service license   based on the suitability standards that apply to the company   applicant.          (b)  A person may not be found suitable to receive or hold a   manufacturer license or casino service license if that person would   be found unsuitable to hold a casino license under Section   2202.055(g), except that an applicant for a manufacturer license or   casino service license who has been convicted of a felony may be   found suitable if the person is found to be adequately   rehabilitated under applicable rehabilitation requirements adopted   by the commission and the applicant or license holder is otherwise   suitable for licensing.          Sec. 2202.155.  DENIAL, SUSPENSION, AND REVOCATION. (a)   The commission may deny an application for a manufacturer license   or casino service license or suspend, limit, or revoke a   manufacturer license or casino service license for a reasonable   cause.          (b)  If the commission has reasonable grounds to believe that   a manufacturer license or casino service license holder may be   unsuitable to continue to hold the license, giving due   consideration to the protection of the health, safety, morals, and   general welfare of this state and to the reputation of the state's   gaming industry, the commission shall conduct an investigation and   hearing under Sections 2202.351 and 2202.356 and may, based on its   determination, suspend, limit, or revoke the license.          (c)  On suspension or revocation of a license, the license   holder must cease the performance of manufacturing activity or   casino service requiring a license under this chapter. After the   revocation or suspension of the license, the affected license   holder may not, while the license is revoked or suspended, receive,   directly or indirectly, compensation, consideration, or payment of   any kind relating to manufacturing activity or provision of casino   services in any capacity requiring a license under this chapter,   other than the payment for goods or services provided before the   suspension or revocation.          (d)  A casino license holder or an operator license holder   who has entered into a lease with a manufacturer license holder or   casino services license holder whose license has been revoked or   suspended may continue to make payments on the lease based on the   original terms and conditions of the lease without modification or   may accelerate the lease and pay it off, at the sole option of the   casino license holder or operator license holder.          (e)  The burden of proving suitability to receive and hold a   manufacturer license or casino service license is on the applicant   or license holder.   SUBCHAPTER E. LICENSE RENEWAL AND FEES          Sec. 2202.201.  TERMS; RENEWAL. Except as provided by   Section 2202.064, an original or renewal license expires on the   first anniversary of the date it is issued.          Sec. 2202.202.  APPLICATION FEES. (a) An application fee   received under this section must be:                (1)  deposited in the Texas casino gaming fund; and                (2)  used for the operation of the commission.          (b)  An applicant for a casino license must pay an   application fee of the following amount, regardless of whether the   destination resort with the casino has been constructed:                (1)  $2.5 million for a license for a casino located   within a destination resort that requires or required a minimum new   investments commitment of at least $2 billion;                (2)  $1.25 million for a license for a casino located   within a destination resort that requires or required a minimum new   investments commitment of at least $1 billion; or                (3)  $500,000 for a license for a casino located within   a destination resort that requires or required a minimum new   investments commitment of at least $250 million.          (c)  An applicant for a manufacturer license must pay an   application fee of $1,000.          (d)  An applicant for an operator license must pay an   application fee of $1,000.          (e)  An applicant for a casino service license must pay an   application fee of $200.          (f)  A person registering and applying to qualify to hold an   equity interest in a license holder must pay an application fee of   $200.          (g)  An individual applying for an occupational license must   pay an application fee of $100.          (h)  All application fees must be in the form of a money order   or cashier's check and be payable to the Texas Gaming Commission,   except that the commission may provide for the payment of the fees   by electronic funds transfer or similar method. Application fees   are nonrefundable.          (i)  Application fees shall be applied toward the cost of   investigating applicants' suitability for licensing or   qualification under this chapter. Any costs of investigation   incurred in excess of the application fee shall be paid by the   applicant, except that the commission may by rule provide for an   exception to this requirement for casino service licenses and   occupational licenses.          (j)  Applicants who are granted a license pursuant to   Subsections (c), (d), (e), (f), and (g) shall be required to renew   their license annually and pay a renewal fee equal to the original   application fee.   SUBCHAPTER F. TEXAS CASINO GAMING FUND; TAXES          Sec. 2202.251.  TEXAS CASINO GAMING FUND. (a) The Texas   casino gaming fund is a special fund in the state treasury.          (b)  All application fees and investigation fees, collected   by the commission or on the commission's behalf related to casino   gaming shall be deposited to the credit of the Texas casino gaming   fund.          (c)  The Texas casino gaming fund may be used only for the   operation of the commission and the administration of this chapter.   If the money in the fund exceeds the amount necessary for the   operation of the commission and the administration of this chapter,   the legislature may transfer any excess amount to the general   revenue fund.          (d)  The operation of the commission and the administration   of this chapter shall be supported by fees generated under this   chapter and by a portion of the taxes imposed by Section 2202.252.          Sec. 2202.252.  CASINO GAMING TAX; SPORTS WAGERING TAX;   ALLOCATION OF TAXES. (a) A casino gaming tax is imposed on each   casino license holder in an amount equal to 15 percent of the gross   casino gaming revenue of the casino operated under the license.          (b)  The taxes imposed by this section shall be computed and   paid on a monthly basis in accordance with the procedures   established by commission rule.          (c)  Except as provided by Subsection (d), the revenue from   the taxes imposed by this section is allocated to the general   revenue fund.          (d)  Of the revenue from the casino gaming tax imposed by   Subsection (a):                (1)  the comptroller shall deposit two percent to the   credit of the escrow account administered by the Texas Racing   Commission and established under Section 2028.204(b) to be used as   horse racing purses in this state;                (2)  three percent shall be allocated to the Texas   casino gaming fund to support the operation of the commission and   administration of this chapter;                (3)  0.5 percent shall be allocated to the general   revenue fund and may be appropriated only to fund a compulsive   gambling program established under Subchapter J;                (4)  $1 million may be appropriated in each state   fiscal biennium to the Department of Public Safety to be used to   provide grants to prosecuting attorneys for the investigation and   prosecution of offenses related to the possession of gambling   devices;                (5)  the comptroller shall deposit 30 percent to the   credit of the property tax relief fund under Section 403.109,   Government Code;                (6)  30 percent may be appropriated only to fund public   safety programs; and                (7)  30 percent may be appropriated only to fund   education.          (e)  To promote the growth of live horse racing in this   state, amounts deposited pursuant to Subsection (d)(1) shall be   allocated to horse racetrack associations by the Texas Racing   Commission based on the number of live race dates conducted by each   licensed horse racetrack association. The Texas Racing Commission   may adopt rules to effect the purposes of this subsection.          (f)  A sports wagering tax is imposed on each license holder   in an amount equal to 10 percent of the gross sports wagering   revenue of the license holder.          (g)  The taxes imposed by this section are due and payable on   or before the 20th day of the month following the month in which the   taxes are imposed.          (h)  If the amount of taxes required to be reported and paid   under this section is later determined to be greater or less than   the amount actually reported and paid by the license holder, the   commission shall:                (1)  assess and collect the additional taxes determined   to be due with interest until paid; or                (2)  refund any overpayment, with interest, to the   license holder.          (i)  Interest required to be collected or refunded under   Subsection (h) must be computed, until paid, at the rate of one   percent per month from the first day of the first month following   the due date or overpayment of the taxes.          Sec. 2202.253.  DETERMINATION OF GROSS CASINO GAMING   REVENUE. (a) In calculating gross casino gaming revenue, a prize,   premium, drawing, benefit, or ticket that is redeemable for money,   merchandise, or other promotional allowance, except money, chips,   or tokens paid at face value directly to a patron as the result of a   specific wager and the amount of cash paid to purchase an annuity to   fund winnings, may not be deducted from gross casino gaming revenue   as a loss at any game except a slot machine or a table game with a   progressive jackpot.          (b)  In calculating gross casino gaming revenue from slot   machines at a casino, the actual cost to the license holder of any   personal property distributed to a patron as the result of a   legitimate wager may be deducted as a loss, but travel expenses,   food, refreshments, lodging, or services at the license holder's   casino may not be deducted. For the purposes of this subsection,   personal property is distributed as the result of a legitimate   wager if a patron must make a wager before receiving the personal   property, regardless of whether the receipt of the personal   property is dependent on the outcome of the wager.          Sec. 2202.254.  REFUND OF OVERPAYMENT. (a) Taxes imposed   under this subchapter that are erroneously collected may be   refunded, on approval of the commission, as other claims against   the state are paid.          (b)  Not later than the 90th day after the date notice of the   commission's action on a claim for refund filed under this chapter   is sent by mail, the claimant may bring an action against the   commission on the grounds stated in the claim for the recovery of   any part of the amount of the claim that has been disallowed.          (c)  Failure to bring an action within the time specified by   Subsection (b) constitutes a waiver of any demand against the state   on account of alleged overpayments.          (d)  If the commission fails to mail its notice of action on a   claim within six months after the date the claim is filed, the   claimant may consider the claim disallowed and bring an action   against the commission on the grounds set forth in the claim for the   recovery of any part of the amount claimed as an overpayment.          (e)  A claim for refund of taxes imposed under this   subchapter that are paid in excess of the amount required to be   reported and paid must be filed not later than two years after the   date of overpayment.          Sec. 2202.255.  DETERMINATION OF DEFICIENCY. (a) If a   casino license holder fails to make a report of the taxes imposed   under this subchapter as required by this chapter, or if the   executive director is not satisfied with the license holder's   report of the taxes, the executive director may compute and   determine the amount required to be paid based on:                (1)  any facts contained in the report;                (2)  an audit conducted by the executive director;                (3)  an estimate of the amount of taxes due;                (4)  any information in the commission's possession or   that may come into the executive director's possession; or                (5)  any combination of the methods described by   Subdivisions (1)-(4).          (b)  In making a determination, the commission may offset   overpayments and interest due against underpayments and interest or   penalties due for the period of the audit.          (c)  The executive director shall give prompt written notice   of a determination of a deficiency under this section to the casino   license holder. Except in the case of fraud or intent to evade the   payment of the tax, a notice of a determination of a deficiency must   be mailed not later than that latter of the second anniversary of   the:                (1)  last day of the calendar month following the   applicable reporting period in which the deficiency occurred; or                (2)  date the report is filed by the license holder.          (d)  If the reasons for the deficiency are not apparent, the   executive director shall include an explanation of those reasons in   the notice of a determination of a deficiency.          (e)  If overpayments and interest exceed underpayments,   penalties, and interest, the excess amount shall be refunded to the   casino license holder.          Sec. 2202.256.  PETITION FOR REDETERMINATION; PETITION FOR   JUDICIAL REVIEW. (a) A casino license holder against whom a   determination is made under Section 2202.255 may petition the   commission for a redetermination not later than the 30th day after   the date of service of notice of the determination. If a petition   for redetermination satisfying the requirements of Subsection (c)   is not filed within the 30-day period, the determination becomes   final.          (b)  If a petition for redetermination satisfying the   requirements of Subsection (c) is filed within the 30-day period,   the commission shall review the determination and, if the   petitioner requests, shall grant a hearing.          (c)  A petition for redetermination must:                (1)  specify the contested portions of the   determination of deficiency;                (2)  specify the grounds for redetermination;                (3)  state whether a hearing is requested; and                (4)  be accompanied by payment in full of the   uncontested portion of the determination, including any interest   and penalties.          (d)  An order or decision of the commission on a petition for   redetermination is final 10 days after the date of service on the   petitioner.          (e)  A petitioner against whom an order or decision of the   commission becomes final may, not later than the 60th day after the   date the decision is final, petition for judicial review in the   manner provided by Chapter 2001, Government Code. The executive   director may not petition for judicial review.          Sec. 2202.257.  TAX ADMINISTRATION. (a) The commission   shall perform all functions incident to the administration,   collection, enforcement, and operation of a fee or tax imposed   under this chapter. The commission may adopt rules and prescribe   forms for the administration, collection, and enforcement of a fee   or tax and for the reporting of a fee or tax.          (b)  Subtitle B, Title 2, Tax Code, applies to the   administration, collection, and enforcement of a tax imposed under   this subchapter, except that the powers and duties assigned to the   comptroller under that subtitle are assigned to the commission.   SUBCHAPTER G. REGULATION OF GAMBLING OPERATIONS          Sec. 2202.301.  REGULATION OF CASINO OPERATIONS. (a) The   commission shall adopt rules applicable to the operation of casinos   as the commission finds necessary for the protection of the health,   safety, morals, and general welfare of this state and for the   reputation of the state's casino gaming industry.          (b)  Casinos may operate 24 hours a day, seven days a week. A   license holder may elect other hours of operation.          Sec. 2202.302.  SPORTS WAGERING. Sports wagering is   authorized only pursuant to a license issued by the commission and   is subject to rules established by the commission.          Sec. 2202.303.  USE OF CHIPS OR TOKENS. All casino gaming   must be conducted with legal tender of the United States or with   chips, tokens, or other instrumentality approved by the commission   for that purpose.          Sec. 2202.304.  REPORTING REQUIREMENTS. (a) A casino   license holder shall keep the license holder's books and records in   a manner that clearly shows the total amount of gross casino gaming   revenue and gross sports wagering revenue, as applicable, and other   revenues received.          (b)  The books and records kept by a casino license holder   relating to casino gaming operations are not public records and the   publication and dissemination of the materials by the commission is   prohibited.          (c)  A casino license holder shall file a report of each   change of the corporate officers and directors with the commission.          (d)  A casino license holder shall report to the executive   director in writing a change in company employees who have been   designated as key employees.          (e)  The commission may require that a company furnish the   commission with a copy of its federal income tax return not later   than the 30th day after the date the return is filed with the   federal government.          Sec. 2202.305.  EXCLUSION OF PERSONS. (a) The commission by   rule shall provide for the establishment of a list of persons who   must be excluded or ejected from a casino. The list may include a   person whose presence in the casino or establishment is determined   by the commission to pose a threat to the interests of this state,   to licensed casino gaming, or to both interests.          (b)  In making a determination under this section, the   commission may consider any:                (1)  prior conviction of a crime that is a felony in   this state or under the laws of the United States or a crime   involving moral turpitude or a violation of the gaming laws of a   state; or                (2)  violation of or conspiracy to violate this chapter   relating to:                      (A)  the failure to disclose an interest in a   casino for which the person must obtain a license;                      (B)  willful evasion of a fee or a tax;                      (C)  notorious or unsavory reputation that would   adversely affect public confidence and trust that the gaming   industry is free from criminal or corruptive elements; or                      (D)  a written order of a governmental agency that   authorizes the exclusion or ejection of the person from a casino   where casino gaming or pari-mutuel wagering is conducted.          Sec. 2202.306.  INTERNAL AUDIT AND CONTROL SYSTEMS. (a) A   casino license holder shall adopt an internal control system that   provides for:                (1)  the safeguarding of its assets and revenues,   especially the recording of cash and evidences of indebtedness; and                (2)  the provision of reliable records, accounts, and   reports of transactions, operations, and events, including reports   to the executive director and the commission.          (b)  The internal control system must be designed to   reasonably ensure that:                (1)  assets are safeguarded;                (2)  financial records are accurate and reliable;                (3)  transactions are performed only in accordance with   management's general or specific authorization;                (4)  transactions are recorded adequately to allow   proper reporting of gross casino gaming revenue, gross sports   wagering revenue, and of fees and taxes and to maintain   accountability for assets;                (5)  access to assets is allowed only in accordance   with management's specific authorization;                (6)  recorded accountability for assets is compared   with actual assets at reasonable intervals and appropriate action   is taken with respect to any discrepancies; and                (7)  functions, duties, and responsibilities are   appropriately segregated and performed in accordance with sound   practices by competent, qualified personnel.          (c)  A casino license holder and an applicant for a casino   license shall describe, in a manner approved or required by the   executive director, the license holder's or applicant's   administrative and accounting procedures in detail in a written   system of internal control. A casino license holder and applicant   for a casino license shall submit a copy of the license holder's or   applicant's written system to the executive director. A written   system must include:                (1)  an organizational chart depicting appropriate   segregation of functions and responsibilities;                (2)  a description of the duties and responsibilities   of each position shown on the organizational chart;                (3)  a detailed, narrative description of the   administrative and accounting procedures designed to satisfy the   requirements of Section 2202.304(a);                (4)  a written statement signed by the license holder's   chief financial officer and either the license holder's chief   executive officer or the casino license holder attesting that the   system satisfies the requirements of this section;                (5)  if the written system is submitted by an   applicant, a letter from an independent certified public accountant   stating that the applicant's written system has been reviewed by   the certified public accountant and complies with the requirements   of this section; and                (6)  other items the executive director may require.          (d)  The commission shall adopt minimum standards for   internal control procedures.          Sec. 2202.307.  AGE REQUIREMENTS. A person under the age of   21 years may not:                (1)  play, be allowed to play, place wagers, or collect   winnings from, personally or through an agent, any casino gaming or   sports wagering authorized under this chapter; or                (2)  be employed as a gaming employee.          Sec. 2202.308.  ACCEPTANCE OF CREDIT INSTRUMENTS. (a) A   credit instrument evidencing a gaming transaction may be enforced   by legal process.          (b)  A license holder may accept an incomplete credit   instrument that is signed by a patron and states the amount of the   debt. The license holder may complete the instrument as is   necessary for the instrument to be presented for payment.          (c)  A license holder:                (1)  may not accept a credit instrument that is   incomplete, except as authorized by Subsection (b); and                (2)  may accept a credit instrument that is payable to   an affiliate or may complete a credit instrument in the name of an   affiliate as payee if the credit instrument otherwise complies with   this section and the records of the affiliate pertaining to the   credit instrument are made available to the executive director on   request.          (d)  This section does not prohibit the establishment of an   account by a deposit of cash, recognized traveler's check, or any   other instrument that is equivalent to cash.          (e)  Any person, license holder, or the agents or employees   of the person or license holder who violate this section are subject   only to the penalties provided in this chapter relating to   disciplinary actions. The failure of a person to comply with this   section or commission rules does not invalidate a credit instrument   or affect the ability to enforce the credit instrument or the   transaction that the credit instrument represents.          Sec. 2202.309.  GAMBLING DEBTS. (a) Except as otherwise   provided by this chapter, gambling debts not evidenced by a credit   instrument are void and unenforceable and do not give rise to any   administrative or civil cause of action.          (b)  A claim by a patron of a license holder for payment of a   gambling debt not evidenced by a credit instrument may be resolved   by the executive director under commission rules.          (c)  The executive director shall send a copy of the   director's ruling by first class mail to the attorneys of record and   shall keep an appropriate copy of the mailing. If a party is not   represented by an attorney of record, the executive director shall   send a copy of the ruling by first class mail to the party and shall   keep an appropriate record of the mailing.          (d)  A party or attorney of record notified by mail under   this section is presumed to have been notified on the date on which   the notice is mailed.          (e)  A party aggrieved by the executive director's ruling is   entitled to have the claim resolved by the commission in a contested   case under Chapter 2001, Government Code, if the party files a   written complaint with the commission challenging the executive   director's decision not later than the 20th day after the date on   which the party or the party's attorney of record is notified by   mail.          Sec. 2202.310.  QUESTIONING AND DETENTION OF PERSONS. (a)   On the premises of a license holder's casino, the casino license   holder or the license holder's officer, employee, or agent may   question any person suspected of acting in violation of this   chapter while on the casino premises. The casino license holder or   the license holder's officer, employee, or agent is not criminally   or civilly liable:                (1)  as a result of the questioning; or                (2)  for reporting the person suspected of the   violation to the executive director or law enforcement authorities.          (b)  A casino license holder or the license holder's officer,   employee, or agent who has reasonable cause to believe that there   has been a violation of this chapter in the license holder's casino   by a person may take that person into custody and detain the person   in the casino in a reasonable manner and for a reasonable length of   time. The taking into custody and detention does not render a   license holder or the license holder's officer, employee, or agent   criminally or civilly liable unless it is established by clear and   convincing evidence that the taking into custody and detention are   unreasonable under all the circumstances.          (c)  A casino license holder or the license holder's officer,   employee, or agent is not entitled to the immunity from liability   provided by Subsection (a) or (b) unless there is displayed in a   conspicuous place in the license holder's establishment a notice in   boldface type, clearly legible, and in substantially this form:                A CASINO LICENSE HOLDER OR THE HOLDER'S OFFICER,   EMPLOYEE, OR AGENT WHO HAS A REASONABLE CAUSE TO   BELIEVE THAT A PERSON HAS VIOLATED A PROVISION OF   CHAPTER 2202, OCCUPATIONS CODE, MAY QUESTION OR DETAIN   THAT PERSON IN THIS ESTABLISHMENT.          Sec. 2202.311.  SLOT MACHINE DISABLED. (a) The commission   may disable a slot machine operated by a license holder under this   chapter at the time:                (1)  a proceeding to suspend a casino license is   initiated;                (2)  the commission discovers the license holder failed   to deposit money received from slot machine operations as required   if the license is being suspended under this section; or                (3)  an act or omission occurs that, under commission   rules, justifies the termination of slot machine operations to:                      (A)  protect the integrity of gaming or the public   health, welfare, or safety; or                      (B)  prevent financial loss to this state.          (b)  The commission shall immediately disable a slot machine   if necessary to protect the public health, welfare, or safety.          Sec. 2202.312.  SLOT MACHINE DISTRIBUTION AND COMMISSION   APPROVAL. (a) A person may not distribute a slot machine or other   gaming device or associated equipment for placement at a casino in   this state unless the machine or equipment has been approved by the   commission.          (b)  Only a person that holds a casino license or   manufacturer license issued under this chapter may apply for   approval of a slot machine or other gaming device or associated   equipment.          Sec. 2202.313.  TECHNICAL STANDARDS FOR GAMING EQUIPMENT.   The commission by rule shall establish minimum technical standards   for gaming devices and associated equipment that may be operated in   this state.          Sec. 2202.314.  INCIDENT REPORTS. (a) A casino license   holder or casino operator license holder shall record all potential   criminal violations known to the license holder and related to   casino gaming or sports wagering activity in the casino.          (b)  The casino license holder or casino operator license   holder for a casino shall assign each incident, without regard to   materiality, a sequential number and, at a minimum, provide the   following information in a permanent record prepared in accordance   with commission rules to ensure the integrity of the record:                (1)  the number assigned to the incident;                (2)  the date and time of the incident;                (3)  the nature of the incident;                (4)  each person involved in the incident; and                (5)  the name of the employee or other agent of the   owner or operator who investigated the incident.          Sec. 2202.315.  SLOT MACHINE EVENTS. A casino license   holder or operator license holder shall keep a database of slot   machine events. The commission by rule shall determine what   constitutes a slot machine event for purposes of this section.          Sec. 2202.316.  SECURITY. (a) The casino license holder or   operator license holder shall:                (1)  continuously monitor all slot machines through the   use of a closed-circuit television system that records activity for   a continuous 24-hour period, retain all videotapes or other media   used to store video images for not fewer than seven days, and make   the tapes or media available to the commission on request;                (2)  submit for commission approval a security plan and   a floor plan of the area where slot machines are operated showing   slot machine locations and security camera mount locations; and                (3)  employ at least the minimum number of private   security personnel the commission determines is necessary to   provide for safe operation of the casino and the safety and   well-being of the players.          (b)  Private security personnel must be present during all   hours of operation at each casino.          (c)  An agent or employee of the commission or the Department   of Public Safety or other law enforcement personnel may be present   at a casino at any time.          (d)  The commission may adopt rules to impose additional   surveillance and security requirements related to casinos and the   operation of slot machines.          Sec. 2202.317.  COMMISSION RIGHT TO ENTER. The commission   or the commission's representative, after displaying appropriate   identification and credentials, has the free and unrestricted right   to:                (1)  enter and inspect the premises wherein casino   gaming or sports wagering is conducted or any premises where gaming   devices, table games, or associated equipment are manufactured,   sold, or distributed; and                (2)  inspect and copy the records of a casino license   holder or operator license holder pertaining to the operation of   casino gaming or sports wagering.          Sec. 2202.318.  APPOINTMENT OF SUPERVISOR. (a) The   commission by rule may provide for the appointment of a supervisor   to manage and operate a casino at the direction of the commission   and perform any act that a casino license holder or operator license   holder is entitled to perform in the event that:                (1)  the casino license or operator license or other   license required for operation of the casino is revoked or   suspended, lapses, or is surrendered;                (2)  a casino has been conveyed or transferred to a   secured party receiver or trustee who does not hold the necessary   licenses to operate the casino; or                (3)  any other event occurs that causes the casino to   cease the operation of slot machines.          (b)  The rules may allow the commission to:                (1)  take any action or adopt any procedure necessary   to operate a casino pending the licensing of a casino license   applicant or operator license applicant that seeks to operate the   casino on the transfer or sale of the casino; and                (2)  if necessary to continue the operation of the   casino, sell the casino to a person that holds or has applied for   the licenses required to operate the casino under this chapter and   make appropriate distributions of the proceeds of the sale.          Sec. 2202.319.  OFFENSE: CONVEYANCE OF CASINO PROPERTY. (a)   A person commits an offense if during the pendency of any proceeding   before the commission that may result in the appointment of a   supervisor or during the period of supervision the person:                (1)  sells, leases, or otherwise conveys for less than   full market value or pledges as security any property of a casino;   or                (2)  removes from this state or secretes from the   commission or the supervisor any property, money, books, or records   of the casino, including evidences of debts owed to the casino.          (b)  An offense under Subsection (a) is a felony of the third   degree.   SUBCHAPTER H. ENFORCEMENT          Sec. 2202.351.  ENFORCEMENT. (a) The executive director   shall conduct an appropriate investigation to:                (1)  determine whether there has been a violation of   this chapter or of a commission rule;                (2)  determine facts, conditions, practices, or   matters that the executive director considers necessary or proper   to aid in the enforcement of a law or rule;                (3)  aid in adopting rules;                (4)  secure information as a basis for recommending   legislation relating to this chapter;                (5)  determine facts regarding whether an applicant or   a license holder meets all requirements and suitability criteria to   be eligible to hold a license under this subtitle; and                (6)  determine whether a license holder is able to meet   the license holder's financial obligations, including all   financial obligations imposed by this chapter, as they become due.          (b)  If after an investigation the executive director is   satisfied that a license should be denied, limited, conditioned,   suspended, or revoked, or that a fine should be levied, the   executive director shall initiate a hearing under Section 2202.356.          Sec. 2202.352.  ABSOLUTE PRIVILEGE FOR REQUIRED DOCUMENTS   AND COMMUNICATIONS; PRIVILEGED DOCUMENTS. (a) An applicant or   license holder has absolute privilege for the content of any   document or communication of the applicant or license holder that   is transmitted or made to the commission, its employees, or its   designees to comply with any law, including a commission rule, to   comply with a subpoena issued by the commission, or to assist the   commission, its employees, or its designees in the performance of   their respective duties. Any such document or communication does   not impose liability for defamation and is not a ground for recovery   in any civil action by a person other than the commission.          (b)  If a document or communication contains information   that is privileged under this state's law or the law of any other   jurisdiction in which the document or communication is created or   stored, the privilege is not waived or lost because the document or   communication is disclosed to the commission, its employees, or its   designees.          (c)  Notwithstanding the powers granted to the commission   and the executive director by this chapter:                (1)  the commission, its employees, and its designees   may not release or disclose privileged information, documents, or   communications provided by an applicant or license holder and   required by a lawful court order unless timely notice of the   potential release or disclosure has been given to the applicant or   license holder and the applicant or license holder has provided   prior written consent to the release or disclosure;                (2)  the commission, its employees, and its designees   shall maintain all privileged information, documents, and   communications in a secure place accessible only to members of the   commission, its employees, or its designees; and                (3)  the commission shall adopt procedures to protect   the privileged nature of information, documents, and   communications provided by an applicant or license holder.          Sec. 2202.353.  RELEASE OF CONFIDENTIAL INFORMATION. An   application to a court for an order requiring the commission or the   executive director to release any information declared by law to be   confidential shall be made only on a motion in writing delivered not   later than the 10th day before the date of application to the   commission, the attorney general, and all persons who may be   affected by the entry of the order. Copies of the motion and all   papers filed in support of the motion shall be served with the   notice by delivering a copy in person or by certified mail to the   last known address of the person to be served.          Sec. 2202.354.  EMERGENCY ORDERS. (a) The commission may   issue an emergency order for suspension, limitation, or   conditioning of a license or may issue an emergency order requiring   a casino to keep an individual license holder from the premises of   the licensed establishment or to not pay the license holder any   remuneration for services or any profits, income, or accruals on   the license holder's investment in the casino.          (b)  An emergency order may be issued only if the commission   determines that:                (1)  a license holder has wilfully failed to report,   pay, or truthfully account for a fee or tax imposed under this   chapter or wilfully attempted in any manner to evade or defeat a fee   or tax payment;                (2)  a license holder or gaming employee has cheated at   a gambling game; or                (3)  the action is necessary for the immediate   preservation of the public peace, health, safety, morals, good   order, or general welfare.          (c)  The emergency order must state the grounds on which it   is issued, including a statement of facts constituting the alleged   emergency necessitating the action.          (d)  An emergency order may be issued only with the approval   of and under the signature of four or more members of the   commission.          (e)  An emergency order is effective immediately on issuance   and service on the license holder or resident agent of the license   holder, gaming employee, or, in cases involving registration, on   issuance and service on the person or entity involved or registered   agent of the entity involved. An emergency order may suspend,   limit, condition, or take other action in relation to the license of   one or more persons in an operation without affecting other   individual license holders or the casino. An emergency order   remains effective until further order of the commission or final   disposition of the case.          (f)  Not later than the fifth day after the date of issuance   of an emergency order, the executive director shall file a   complaint and serve it on the person or entity involved. The person   or entity against whom the emergency order has been issued and   served is entitled to a hearing before the commission and to   judicial review of the decision and order of the commission under   Chapter 2001, Government Code. Judicial review is under the   substantial evidence rule, as provided by that chapter.          Sec. 2202.355.  REVOCATION OR SUSPENSION OF LICENSE. (a)   The commission may revoke or suspend a license issued under this   chapter if the holder of the license at any time fails to meet the   eligibility requirements set forth in this chapter.          (b)  Failure to timely remit gaming revenue generated by slot   machines to the commission or any tax or other fee owed to this   state as demonstrated by report from the applicable taxing   authority or to timely file any report or information required   under this chapter as a condition of any license issued under this   chapter may be grounds for suspension or revocation, or both, of a   license issued under this chapter.          Sec. 2202.356.  LICENSE HEARING; DISCIPLINARY HEARING. (a)   Before the commission denies an application, or revokes or suspends   a license, or imposes a fine for a violation of this chapter, the   commission shall provide written notice to the applicant or license   holder of the denial, revocation, the period of suspension, or the   amount of the fine. The notice shall include:                (1)  the effective date of the denial, revocation, the   period of suspension, or the amount of the fine, as applicable;                (2)  each reason for the denial, revocation,   suspension, or fine;                (3)  an explanation of the evidence supporting the   reasons;                (4)  a statement explaining the person's opportunity to   present the applicant's or the license holder's position in   response on or before the 15th day after the date the notice is   delivered personally or is mailed; and                (5)  a statement explaining the person's right to an   administrative hearing to determine whether the denial,   revocation, suspension, or fine is warranted.          (b)  The notice required under Subsection (a) must be made by   personal delivery or by mail to the person's mailing address as it   appears on the commission's records.          (c)  To obtain an administrative hearing on a denial,   suspension, revocation, or fine under this section, a person must   submit a written request for a hearing to the commission not later   than the 20th day after the date notice is delivered personally or   is mailed.          (d)  If the commission receives a timely request under   Subsection (c), the commission shall provide the person with an   opportunity for a hearing as soon as practicable. If the commission   does not receive a timely request under Subsection (c), the   commission may impose the fine, deny, revoke or suspend a license,   or sustain the denial, revocation or suspension without a hearing.          (e)  Except as provided by Subsection (g), the hearing must   be held not earlier than the 11th day after the date the written   request is submitted to the commission, unless the commission and   the hearing requestor agree to an earlier day.          (f)  The commission may provide that a revocation or   suspension takes effect on receipt of notice under Subsection (a)   if the commission finds that the action is necessary to prevent or   remedy a threat to public health, safety, or welfare. The   commission by rule shall establish a nonexclusive list of   violations that present a threat to the public health, safety, or   welfare.          (g)  A hearing on a revocation or suspension that takes   effect on receipt of notice must be held not later than the 14th day   after the date the commission receives the request for hearing   under this section and not earlier than 9th day after the date the   written request is submitted to the commission, unless the   commission and the hearing requestor agree to an earlier day. The   revocation or suspension continues in effect until the hearing is   completed. If the hearing is continued, the revocation or   suspension shall continue in effect beyond the 14-day period at the   request of the hearing requestor or on a finding of good cause by   the commission or administrative law judge.          (h)  To prevail in an administrative hearing under this   section, the applicant or the license holder must demonstrate by   clear and convincing evidence that the denial, deprivation, or   imposition of a fine was unwarranted or otherwise unlawful. The   hearing may be conducted by the commission or referred to the State   Office of Administrative Hearings.          (i)  The administrative record created by the hearing   conducted by the State Office of Administrative Hearings shall be   provided to the commission for review and determination.          (j)  If an administrative law judge of the State Office of   Administrative Hearings conducts a hearing under this section and   the proposal for decision supports the commission's position, the   administrative law judge shall include in the proposal a finding of   the costs, fees, expenses, and reasonable and necessary attorney's   fees this state incurred in bringing the proceeding.          (k)  The commission may adopt the findings for costs, fees,   and expenses and make the finding a part of the final order entered   in the proceeding. Proceeds collected from a finding made under   this section shall be paid to the commission.          Sec. 2202.357.  JUDICIAL REVIEW OF DENIAL, REVOCATION,   SUSPENSION, OR FINE IMPOSITION. (a) A person aggrieved by a final   decision of the commission to deny, revoke, or suspend a license, or   to impose any fine may obtain judicial review before a district   court in Travis County.          (b)  The judicial review must be instituted by serving on the   commission and filing a petition not later than the 20th day after   the effective date of the final decision and must identify the order   appealed from and the grounds or reason why the petitioner contends   the decision of the commission should be reversed or modified.          (c)  The review must be conducted by the court sitting   without jury, and must not be a trial de novo but is confined to the   record on review. The reviewing court may only affirm the decision,   remand the case for further proceedings, or reverse the decision if   the substantial rights of the petitioner have been violated.          (d)  If any court of competent jurisdiction concludes on   judicial review limited to the administrative record before the   commission and subject to the substantial evidence standard that:                (1)  the revocation, suspension, or fine was   unwarranted or otherwise unlawful, then the sole remedy available   is invalidation of the fine, or reinstatement of the license; or                (2)  the denial of the issuance of the license was   unwarranted or otherwise unlawful, then the sole remedy available   is invalidation of the commission's final decision and remand to   the commission for reconsideration of the application.          (e)  The commission, this state, or the members, officers,   employees, and authorized agents of the commission or the state are   not under any circumstances subject to monetary damages, attorney's   fees, or court costs resulting from a fine imposed or from the   denial, revocation, or suspension of a license.          Sec. 2202.358.  EFFECT OF DENIAL OF LICENSE. (a) If a   person denied a license has previously been issued a temporary   license, the temporary license expires immediately on the issuance   of the denial.          (b)  Except as otherwise authorized by the commission, a   person denied a license may not reapply for any license before the   second anniversary of the date of the denial.          Sec. 2202.359.  AGREEMENT TO WAIVE ENFORCEABILITY. A   license holder by virtue of accepting the license agrees that the   privilege of holding a license under this chapter is conditioned on   the license holder's agreement to Sections 2202.355, 2202.356, and   2202.357 and the license holder waives any right to challenge or   otherwise appeal the enforceability of those sections.          Sec. 2202.360.  LIMITED WAIVER OF SOVEREIGN IMMUNITY; NO   LIABILITY OF STATE FOR ENFORCEMENT. (a) This state does not waive   its sovereign immunity by negotiating gaming agreements with Indian   tribes or other persons for the operation of casino gaming or   gambling games under this subtitle. An actor or agent for this state   may not waive this state's sovereign immunity absent an express   legislative grant of that authority.          (b)  With regard to gaming operations on Indian lands, this   state consents to the jurisdiction of the District Court of the   United States with jurisdiction in the county where the Indian   lands are located, or if the federal court lacks jurisdiction, to   the jurisdiction of a district court in Travis County, solely for   the purpose of resolving disputes arising from a gaming agreement   authorized under this chapter or Chapter 2203 for declaratory or   injunctive relief or contract damages of $100,000 or more or the   failure of the state to enter into a gaming agreement as required by   Section 2203.001. Any disputes relating to damages or other awards   valued at less than $100,000 shall be arbitrated under the rules of   the American Arbitration Association, provided, however, that   application of the rules may not be construed as a waiver of   sovereign immunity.          (c)  All financial obligations of the commission are payable   solely out of the income, revenues, and receipts of the commission   and are subject to statutory restrictions and appropriations.          (d)  This state and the commission are not liable if   performance by the commission is compromised or terminated by acts   or omissions of the legislature or the state or federal judiciary.          (e)  This state and the commission are not liable for acts or   omissions related to the enforcement of this subtitle.   SUBCHAPTER I. PENALTIES AND OFFENSES          Sec. 2202.401.  FAILURE TO PAY FEE OR TAX. (a) License fees   and other fees required by this chapter must be paid to the   commission on or before the dates provided by law for each fee.          (b)  A person failing to timely pay a fee or tax when due   shall pay in addition a penalty of not less than $50 or 25 percent of   the amount due, whichever is the greater. The penalty may not exceed   $1,000 if the fee or tax is less than 10 days late and may not exceed   $5,000 under any circumstances. The commission shall collect the   penalty in the same manner as other charges, license fees, and fines   are collected under this chapter.          Sec. 2202.402.  WILFUL FAILURE TO REPORT, PAY, OR ACCOUNT   FOR FEE OR TAX. (a) A person commits an offense if the person   wilfully:                (1)  fails to report, pay, or truthfully account for a   fee or tax imposed under this chapter; or                (2)  attempts in any manner to evade or defeat a fee or   tax imposed under this chapter.          (b)  An offense under this section is a Class A misdemeanor.          Sec. 2202.403.  CASINO GAMING AND SPORTS WAGERING FRAUD.   (a) A person commits an offense if the person knowingly:                (1)  in connection with a casino game or sports   wagering--                      (A)  alters or misrepresents the outcome of a game   or other event on which wagers have been made after the outcome is   made sure but before it is revealed to the players;                      (B)  places, increases, or decreases a bet or   determines the course of play after acquiring knowledge, not   available to all players, of the outcome of the game or an event   that affects the outcome of the game or that is the subject of the   bet or aids anyone in acquiring such knowledge for the purpose of   placing, increasing, or decreasing a bet or determining the course   of play contingent on that event or outcome;                      (C)  places or increases a bet after acquiring   knowledge of the outcome of the game or other event that is the   subject of the bet, including past posting and pressing bets; or                      (D)  reduces the amount wagered or cancels the bet   after acquiring knowledge of the outcome of the game or other event   that is the subject of the bet, including pinching bets;                (2)  claims, collects, or takes, or attempts to claim,   collect, or take, money or anything of value in or from a gambling   game, with the intent to defraud, without having made a wager   contingent on the gambling game;                (3)  claims, collects, or takes an amount greater than   the amount won from a gambling game;                (4)  entices or induces another to go to a place where a   gambling game is being conducted or operated in violation of this   subtitle, with the intent that the other person play or participate   in that gambling game; or                (5)  manipulates, with the intent to cheat, a component   of a gaming device in a manner contrary to the designed and normal   operational purpose for the component, including varying the pull   of the handle of a slot machine, with knowledge that the   manipulation affects the outcome of the game or with knowledge of an   event that affects the outcome of the game.          (b)  An offense under this section is a felony of the third   degree.          Sec. 2202.404.  USE OF PROHIBITED DEVICES. (a) A person   commits an offense if the person, at a casino, uses or possesses   with the intent to use a device, other than those customarily used   in the conduct of gaming to assist in:                (1)  projecting the outcome of the game;                (2)  keeping track of the cards played; or                (3)  analyzing the probability of the occurrence of an   event relating to the game.          (b)  An offense under this section is a felony of the third   degree.          Sec. 2202.405.  USE OF COUNTERFEIT OR UNAUTHORIZED TOKEN,   CHIP, OR COIN. (a) A person commits an offense if the person   knowingly uses counterfeit tokens, chips, or coins in a gambling   game.          (b)  A person commits an offense if the person, in playing   any gambling game designed to receive, be played with, or be   operated by lawful tender of the United States of America or by   tokens or chips approved by the executive director or by other   instrumentality approved by the commission for use in such gambling   game knowingly uses a token, chip, coin, or other instrumentality   other than tokens, chips, coins, or other instrumentality approved   by the commission and designed for the gambling game.          (c)  A person, other than an authorized employee of a license   holder acting in furtherance of the person's employment within an   establishment, commits an offense if the person knowingly has on   the person's body or in the person's possession on or off the   premises of a casino a device intended to be used to violate the   provisions of this chapter.          (d)  A person, other than an authorized employee of a license   holder acting in furtherance of the person's employment within a   casino, commits an offense if the person knowingly has on the   person's body or in the person's possession on or off the premises   of a casino a key or device known to have been designed for the   purpose of and suitable for opening, entering, or affecting the   operation of a gambling game, a drop box, or an electronic or   mechanical device connected to the game or box or for removing money   or other contents from the game or box.          (e)  A person commits an offense if the person, with the   intent to manufacture slugs for unauthorized use in gaming devices   located at a casino, knowingly has on the person's body or in the   person's possession paraphernalia for manufacturing slugs. In this   subsection, "paraphernalia for manufacturing slugs" means the   equipment, products, and materials that are intended for use or   designed for use in manufacturing, producing, fabricating,   preparing, testing, analyzing, packaging, storing, or concealing a   counterfeit facsimile of the chips or tokens approved by the   executive director or a lawful coin of the United States, the use of   which is an offense under Subsection (b). The term includes:                (1)  lead or lead alloys;                (2)  molds, forms, or similar equipment capable of   producing a likeness of a gaming token or United States coin;                (3)  melting pots or other receptacles;                (4)  torches; and                (5)  tongs, trimming tools, or other similar equipment.          (f)  Possession of more than one of the devices, equipment,   products, or materials described in this section permits a   rebuttable inference that the possessor intended to use them to   cheat. In this subsection, "cheat" has the meaning assigned by   Section 2202.406.          (g)  An offense under this section is a felony of the third   degree.          Sec. 2202.406.  CHEATING. (a) In this section, "cheat"   means to alter the elements of chance, method of selection, or   criteria that determine the result of a game or the amount or   frequency of payment in a game.          (b)  A person commits an offense if the person knowingly   cheats at any gambling game.          (c)  An offense under this section is a state jail felony.          Sec. 2202.407.  POSSESSION OF UNLAWFUL GAMING DEVICE. (a)  A   person commits an offense if the person possesses any slot machine   or other gaming device that the person knows has been manufactured,   sold, or distributed in violation of this chapter.          (b)  An offense under this section is a Class A misdemeanor.          Sec. 2202.408.  UNLAWFUL MANUFACTURE, SALE, OR DISTRIBUTION   OF GAMING EQUIPMENT.  (a)  In this section, "cheat" has the meaning   assigned by Section 2202.406.          (b)  A person commits an offense if the person manufactures,   sells, or distributes a gaming device or associated equipment with   the intent that it be used to violate this chapter.          (c)  A person commits an offense if the person marks, alters,   or otherwise modifies any associated equipment or gaming device in   a manner that:                (1)  affects the result of a wager by determining a win   or loss; or                (2)  alters the normal criteria of random selection   that affect the operation of a game or determine the outcome of a   game.          (d)  A person commits an offense if the person instructs   another person in cheating or in the use of a device for cheating at   any gambling game authorized to be conducted at a casino, with the   knowledge or intent that the information or use may be employed to   violate this chapter.          (e)  An offense under this section is a felony of the third   degree.          Sec. 2202.409.  UNLAWFUL REPORTING. (a)  A person commits an   offense if the person, in a license application, in a book or record   required to be maintained by this chapter or a rule adopted under   this chapter, or in a report required to be submitted by this   chapter or a rule adopted under this chapter:                (1)  makes a statement or entry that the person knows to   be false or misleading; or                (2)  knowingly fails to maintain or make an entry the   person knows is required to be maintained or made.          (b)  A person commits an offense if the person knowingly   refuses to produce for inspection by the executive director a book,   record, or document required to be maintained or made by this   chapter or a rule adopted under this chapter.          (c)  An offense under this section is a Class A misdemeanor.          Sec. 2202.410.  OTHER UNLAWFUL VIOLATIONS. (a)  A person   commits an offense if the person knowingly violates, attempts to   violate, or conspires to violate a provision of this chapter   specifying a prohibited act in a manner that is not otherwise   specified as an offense under this subchapter.          (b)  An offense under this section is a Class A misdemeanor.          Sec. 2202.411.  UNAUTHORIZED OPERATION, USE, OR POSSESSION   OF GAMING DEVICE.  (a)  A person may not operate, use, or possess a   gaming device unless the operation, use, or possession is expressly   authorized by this chapter or other law.          (b)  Except for transport to or from a casino and as provided   by this chapter, a person commits an offense if the person operates,   uses, or possesses a gaming device that is not authorized under this   chapter or other law.  An offense under this subsection is a felony   of the third degree.          (c)  Notwithstanding Subsection (b), a casino license   holder, an operator license holder, or a manufacturer license   holder may store a gaming device as authorized by the commission for   a period not to exceed 180 consecutive days or a longer period   approved by the commission, and the commission may possess gaming   devices for study and evaluation.          (d)  Nothing in this section shall be construed to prohibit   the operation, use, or possession of equipment, machines,   technological aids, or other devices allowed in connection with the   play of bingo under Chapter 2001.          Sec. 2202.412.  SALE OF GAMBLING GAME TO OR PURCHASE OF   GAMBLING GAME BY PERSON YOUNGER THAN 21 YEARS OF AGE. (a)  A person   licensed under this chapter or an employee of the person commits an   offense if the person intentionally or knowingly allows a person   younger than 21 years of age to play a gambling game or engage in   sports wagering.          (b)  An individual who is younger than 21 years of age   commits an offense if the individual:                (1)  plays a gambling game;                (2)  engages in sports wagering; or                (3)  falsely represents the individual to be 21 years   of age or older by displaying evidence of age that is false or   fraudulent or misrepresents in any way the individual's age in   order to play a gambling game or engage in sports wagering.          (c)  It is a defense to prosecution under Subsection (b) that   the individual younger than 21 years of age is participating in an   inspection or investigation on behalf of the commission or other   appropriate governmental entity regarding compliance with this   section.          (d)  An offense under Subsection (a) is a Class C   misdemeanor.          (e)  An offense under Subsection (b) is a misdemeanor   punishable by a fine not to exceed $250.          Sec. 2202.413.  PLAY OF GAMBLING GAME WITH PUBLIC ASSISTANCE   FUNDS. (a)  A person commits an offense if the person intentionally   or knowingly plays a gambling game with public assistance funds   issued to the person under:                (1)  Chapter 31, Human Resources Code; or                (2)  Chapter 33, Human Resources Code, including funds   on electronic benefit transfer cards administered under Chapter 33,   Human Resources Code.          (b)  An offense under this section is a Class C misdemeanor.          Sec. 2202.414.  EFFECT ON OTHER LAWS.  A person who is   subject to prosecution under an offense under this subchapter and   an offense under Chapter 47, Penal Code, may be prosecuted under   either or both laws.   SUBCHAPTER J.  PROBLEM GAMBLING AND ADDICTION          Sec. 2202.451.  PROBLEM GAMBLING AND ADDICTION GRANT FUND.     (a)  The problem gambling and addiction grant fund is an account in   the general revenue fund.          (b)  Money credited to the fund may be used only for awarding   grants under this subchapter.  The fund shall be administered in   accordance with this subchapter.          (c)  An expenditure from the problem gambling and addiction   grant fund shall be made in accordance with the General   Appropriations Act.          (d)  Grants from money in the fund may be used only to:                (1)  provide treatment for problem gambling, gambling   addiction, alcoholism, drug abuse, and other addictive behaviors;   and                (2)  provide funding for research related to the impact   of gambling on state residents.          Sec. 2202.452.  GRANT PROGRAM.  (a)  From funds appropriated   for the purpose, the commission shall administer a grant program to   provide assistance for the direct treatment of persons diagnosed as   suffering from pathological gambling and other addictive behaviors   and to provide funding for research regarding the impact of   gambling on residents of this state.          (b)  Research grants awarded under this section may include   grants for determining the effectiveness of education and   prevention efforts on the prevalence of pathological gambling in   this state.          (c)  A grant may be made only after open solicitation of   proposals and evaluation of proposals against criteria established   by commission rule.          (d)  Public and private entities are eligible to apply for   and receive grants under this section.          (e)  A grant made in accordance with this section shall be   made from funds appropriated to the commission from the problem   gambling and addiction grant fund and funds provided to the   commission in accordance with Section 2202.453.          Sec. 2202.453.  GIFTS AND DONATIONS.  The commission may   solicit and accept grants, gifts, contributions, or bequests made   for the purpose of funding grants under this subchapter and expend   the money for the purpose described by Section 2202.452, for which   the money was received.          Sec. 2202.454.  RULES. (a)  The commission shall administer   this subchapter and adopt rules establishing criteria for   qualification to receive grants and other matters considered   necessary by the commission for the administration of this   subchapter.          (b)  The rules adopted by the commission must require that   each recipient of a grant report at least annually to the commission   the grantee's measurable achievement of specific outcome goals.   CHAPTER 2203.  TRIBAL GAMING AGREEMENTS          Sec. 2203.001.  DUTY OF GOVERNOR.  The governor shall   execute, on behalf of this state, with a federally recognized   Indian tribe with Indian lands in this state a gaming agreement   consistent with the provisions in 25 U.S.C. Section 2710(d) and   containing the terms set forth in Section 2203.002 not later than   the 180th day after the date the governor receives a request from   the tribe, accompanied by or in the form of a duly enacted   resolution of the tribe's governing body, to enter into the gaming   agreement.          Sec. 2203.002.  MODEL TRIBAL GAMING AGREEMENT. (a)  A gaming   agreement executed under Section 2203.001 must be in the form and   contain the provisions as follows:   GAMING AGREEMENT GOVERNING GAMING OPERATIONS Between the [Name of   Tribe] and the STATE OF TEXAS          This agreement is made and entered into by and between the   [Name of Tribe], a federally recognized Indian Tribe ("Tribe"), and   the State of Texas ("State"), with respect to gaming on the Tribe's   Indian lands (as defined by Chapter 2201, Texas Occupations Code).          This agreement governs gambling on Indian lands held in trust   by the United States on January 1, 1998, for the Tribe.          Pursuant to express provisions of the Ysleta del Sur Pueblo   and Alabama and Coushatta Indian Tribes of Texas Restoration Act   (Pub. L. No. 100-89) addressing jurisdiction, the Tribe may engage   in any gaming activities on Indian lands that another person may be   authorized to engage in within Texas under Subtitle E, Title 13,   Occupations Code.          The Tribe shall regulate the gaming activities authorized   under this agreement on the Tribe's Indian lands.          The Tribe shall adopt rules and procedures substantially   similar to the requirements of Subtitle E, Title 13, Occupations   Code, except that any regulatory oversight established under   Subtitle E for gaming conducted under a license shall be exercised   by the Tribe for gaming conducted under this agreement.  The Tribe   may adopt the rules and procedures by reference to any provisions of   Subtitle E, Title 13, Occupations Code.          (b)  A gaming agreement under Subsection (a) between this   state and a federally recognized Indian tribe that is not subject to   the Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of   Texas Restoration Act (Pub. L. No. 100-89) may not include the   provision related to that Act.          Sec. 2203.003.  NEGOTIATION FOR DIFFERENT TRIBAL GAMING   AGREEMENT TERMS. (a)  This chapter does not limit the ability of a   federally recognized Indian tribe to request that a gaming   agreement be negotiated with this state on terms that are different   from those set forth in the gaming agreement under Section   2203.002, or the ability of this state to engage in negotiations and   to reach agreement under any applicable federal law.          (b)  In offering to enter into a gaming agreement with Indian   tribes in this state under Section 2203.002, and excluding   assessments, authorized under the Indian Gaming Regulatory Act (18   U.S.C. Sections 1166-1168 and 25 U.S.C. Section 2701 et seq.), by   this state of the amounts necessary to defray state costs of   regulating activities as provided under the gaming agreement,   nothing in this chapter may be construed to mean that:                (1)  this state is imposing any tax, fee, charge, or   other assessment on an Indian tribe or on any other person or entity   authorized by an Indian tribe as a condition to engaging in a Class   III activity as defined in the Indian Gaming Regulatory Act (18   U.S.C. Sections 1166-1168 and 25 U.S.C. Section 2701 et seq.); or                (2)  this state is refusing to enter into gaming   agreement negotiations based on the lack of authority of this state   or a political subdivision of this state to impose the tax, fee,   charge, or other assessment.          (c)  If any federally recognized Indian tribe with   jurisdiction over Indian lands in this state requests that the   governor enter into negotiations for a gaming agreement under   federal law applicable to the Indian tribe, including the Indian   Gaming Regulatory Act (18 U.S.C. Sections 1166-1168 and 25 U.S.C.   Section 2701 et seq.), on terms different than those prescribed in   the gaming agreement set forth in Section 2203.002, the governor   shall enter into those negotiations under the federal law   applicable to the tribe and without preconditions and is authorized   to reach agreement and execute the agreement on behalf of this   state.          Sec. 2203.004.  IMPLEMENTATION OF GAMING AGREEMENT.  The   governor shall execute any documents necessary to implement a   gaming agreement authorized under this chapter.          Sec. 2203.005.  INCORPORATION INTO STATE LAW.  The model   gaming agreement set out in Section 2203.002 is hereby incorporated   into state law, and the operation of gaming authorized under the   agreement is expressly authorized as a matter of state law for any   Indian tribe entering into the gaming agreement in accordance with   this chapter.          Sec. 2203.006.  REGULATORY MONEY RECEIVED UNDER GAMING   AGREEMENT. All money received by the commission under a gaming   agreement for regulatory costs incurred relative to tribal gaming   operations may be used only to defray expenses of the commission   incurred in the oversight, compliance with, and enforcement of   gaming operations conducted pursuant to a gaming agreement.          Sec. 2203.007.  INJUNCTION; CIVIL PENALTY.  (a)  If the   commission, the appropriate governing body for an Indian tribe, or   the attorney general has reason to believe that this chapter has   been or is about to be violated, the attorney general may petition a   court for appropriate injunctive relief to restrain the violation.     Filing of the petition does not waive applicable sovereign   immunity.          (b)  Venue for an action by this state seeking injunctive   relief is in a district court in Travis County.          (c)  If the court finds that this chapter has been knowingly   violated, the court shall order all proceeds from any illegal   casino gaming and sports wagering to be forfeited to the   appropriate governing body as a civil penalty.          (d)  The remedies provided by this section are not exclusive.   The commission may suspend or revoke a license, impose an   administrative penalty, or seek injunctive or civil penalties or   both, depending on the severity of the violation.          SECTION 2.  Section 2028.2041, Occupations Code, is amended   to read as follows:          Sec. 2028.2041.  ALLOCATION OF CERTAIN FUNDS. (a)  In each   state fiscal biennium, the comptroller shall deposit the amounts   allocated under Section 151.801(c-3), Tax Code, into the escrow   account established under Section 2028.204(b), until the   comptroller determines the amount deposited into the account in   that fiscal biennium, excluding amounts deposited to the account   pursuant to Section 2202.252, equals the greater of:                (1)  the amount appropriated to the commission for the   purposes of Section 2028.204 for that fiscal biennium; or                (2)  $50 million.          (b)  Once the comptroller determines the greater of the   amount described by Subsection (a)(1) or (2) has been deposited   during a state fiscal biennium into the escrow account established   under Section 2028.204(b), excluding amounts deposited to the   account pursuant to Section 2202.252, for the remainder of that   fiscal biennium the comptroller shall deposit the amounts allocated   under Section 151.801(c-3), Tax Code, into the general revenue   fund.          (c)  The balance of the escrow account established under   Section 2028.204(b) shall not exceed $50 million, excluding amounts   deposited to the account pursuant to Section 2202.252.          SECTION 3.  Article 2.12, Code of Criminal Procedure, is   amended to read as follows:          Art. 2.12.  WHO ARE PEACE OFFICERS. The following are peace   officers:                (1)  sheriffs, their deputies, and those reserve   deputies who hold a permanent peace officer license issued under   Chapter 1701, Occupations Code;                (2)  constables, deputy constables, and those reserve   deputy constables who hold a permanent peace officer license issued   under Chapter 1701, Occupations Code;                (3)  marshals or police officers of an incorporated   city, town, or village, and those reserve municipal police officers   who hold a permanent peace officer license issued under Chapter   1701, Occupations Code;                (4)  rangers, officers, and members of the reserve   officer corps commissioned by the Public Safety Commission and the   Director of the Department of Public Safety;                (5)  investigators of the district attorneys', criminal   district attorneys', and county attorneys' offices;                (6)  law enforcement agents of the Texas Alcoholic   Beverage Commission;                (7)  each member of an arson investigating unit   commissioned by a city, a county, or the state;                (8)  officers commissioned under Section 37.081,   Education Code, or Subchapter E, Chapter 51, Education Code;                (9)  officers commissioned by the General Services   Commission;                (10)  law enforcement officers commissioned by the   Parks and Wildlife Commission;                (11)  officers commissioned under Chapter 23,   Transportation Code;                (12)  municipal park and recreational patrolmen and   security officers;                (13)  security officers and investigators commissioned   as peace officers by the comptroller;                (14)  officers commissioned by a water control and   improvement district under Section 49.216, Water Code;                (15)  officers commissioned by a board of trustees   under Chapter 54, Transportation Code;                (16)  investigators commissioned by the Texas Medical   Board;                (17)  officers commissioned by:                      (A)  the board of managers of the Dallas County   Hospital District, the Tarrant County Hospital District, the Bexar   County Hospital District, or the El Paso County Hospital District   under Section 281.057, Health and Safety Code;                      (B)  the board of directors of the Ector County   Hospital District under Section 1024.117, Special District Local   Laws Code;                      (C)  the board of directors of the Midland County   Hospital District of Midland County, Texas, under Section 1061.121,   Special District Local Laws Code; and                      (D)  the board of hospital managers of the Lubbock   County Hospital District of Lubbock County, Texas, under Section   1053.113, Special District Local Laws Code;                (18)  county park rangers commissioned under   Subchapter E, Chapter 351, Local Government Code;                (19)  investigators employed by the Texas Racing   Commission;                (20)  officers commissioned under Chapter 554,   Occupations Code;                (21)  officers commissioned by the governing body of a   metropolitan rapid transit authority under Section 451.108,   Transportation Code, or by a regional transportation authority   under Section 452.110, Transportation Code;                (22)  investigators commissioned by the attorney   general under Section 402.009, Government Code;                (23)  security officers and investigators commissioned   as peace officers under Chapter 466, Government Code;                (24)  officers appointed by an appellate court under   Subchapter F, Chapter 53, Government Code;                (25)  officers commissioned by the state fire marshal   under Chapter 417, Government Code;                (26)  an investigator commissioned by the commissioner   of insurance under Section 701.104, Insurance Code;                (27)  apprehension specialists and inspectors general   commissioned by the Texas Juvenile Justice Department as officers   under Sections 242.102 and 243.052, Human Resources Code;                (28)  officers appointed by the inspector general of   the Texas Department of Criminal Justice under Section 493.019,   Government Code;                (29)  investigators commissioned by the Texas   Commission on Law Enforcement under Section 1701.160, Occupations   Code;                (30)  commission investigators commissioned by the   Texas Private Security Board under Section 1702.061, Occupations   Code;                (31)  the fire marshal and any officers, inspectors, or   investigators commissioned by an emergency services district under   Chapter 775, Health and Safety Code;                (32)  officers commissioned by the State Board of   Dental Examiners under Section 254.013, Occupations Code, subject   to the limitations imposed by that section;                (33)  investigators commissioned by the Texas Juvenile   Justice Department as officers under Section 221.011, Human   Resources Code; [and]                (34)  the fire marshal and any related officers,   inspectors, or investigators commissioned by a county under   Subchapter B, Chapter 352, Local Government Code; and                (35)  investigators, security officers, and   enforcement officers commissioned by the Texas Gaming Commission   under Chapter 2201, Occupations Code.          SECTION 4.  Subchapter F, Chapter 411, Government Code, is   amended by adding Section 411.1085 to read as follows:          Sec. 411.1085.  ACCESS TO CRIMINAL HISTORY RECORD   INFORMATION: TEXAS GAMING COMMISSION.  (a)  The Texas Gaming   Commission is entitled to obtain from the department criminal   history record information maintained by the department that   relates to a person who, under Subtitle E, Title 13, Occupations   Code, is:                (1)  a casino employee or an applicant for an   occupational license;                (2)  a person required to hold a license or be named in   a license application under that subtitle;                (3)  a person who manufactures or distributes casino   equipment or supplies or a representative of a person who   manufactures or distributes casino equipment or supplies offered to   the casino;                (4)  a person who has submitted a written bid or   proposal to the commission in connection with the procurement of   goods or services by the commission, if the amount of the bid or   proposal exceeds $500;                (5)  a person who proposes to enter into or who has a   contract with the commission to supply goods or services to the   commission;                (6)  if a person described in Subdivisions (3) through   (5) is not an individual, each individual who:                      (A)  is an officer or director of the person;                      (B)  holds more than five percent of the stock in   the person;                      (C)  holds an equitable interest greater than five   percent in the person;                      (D)  shares or will share in the profits, other   than stock dividends, of the person;                      (E)  participates in managing the affairs of the   person; or                      (F)  is an employee of the person who:                            (i)  enters or will enter a casino in this   state to perform a business function; or                            (ii)  is or will be in close proximity to   money from casino gaming;                (7)  an employee or prospective employee, including the   executive director or a prospective executive director, of the   commission; or                (8)  a person described under Subdivisions (1)-(7)   whose license is renewed under that subtitle.          (b)  Criminal history record information obtained by the   Texas Gaming Commission under Subsection (a) may not be released or   disclosed to any person except on court order or as provided by   Subsection (c).          (c)  The Texas Gaming Commission is not prohibited from   disclosing to the person who is the subject of the criminal history   record information the dates and places of arrests, offenses, and   dispositions contained in the criminal history record information.          SECTION 5.  Section 47.02(c), Penal Code, is amended to read   as follows:          (c)  It is a defense to prosecution under this section that   the actor reasonably believed that the conduct:                (1)  was permitted under Chapter 2001, Occupations   Code;                (2)  was permitted under Chapter 2002, Occupations   Code;                (3)  was permitted under Chapter 2004, Occupations   Code;                (4)  consisted entirely of participation in the state   lottery authorized by the State Lottery Act (Chapter 466,   Government Code);                (5)  was permitted under Subtitle A-1, Title 13,   Occupations Code (Texas Racing Act); [or]                (6)  consisted entirely of participation in a drawing   for the opportunity to participate in a hunting, fishing, or other   recreational event conducted by the Parks and Wildlife Department;   or                (7)  consisted entirely of participation in an   authorized gambling game or sports wagering authorized under an   appropriate license issued under Subtitle E, Title 13, Occupations   Code.          SECTION 6.  Section 47.03, Penal Code, is amended by adding   Subsection (c) to read as follows:          (c)  It is a defense to prosecution under this section that   the actor reasonably believed that the conduct was permitted under   Subtitle E, Title 13, Occupations Code.          SECTION 7.  Section 47.04, Penal Code, is amended by adding   Subsection (c) to read as follows:          (c)  It is a defense to prosecution under this section that   the actor reasonably believed that the conduct was permitted under   Subtitle E, Title 13, Occupations Code.          SECTION 8.  Section 47.05(b), Penal Code, is amended to read   as follows:          (b)  It is an exception to the application of Subsection (a)   that the information communicated is intended for use in placing a   lawful wager under Subtitle E, Title 13, Occupations Code, or   Chapter 2027, Occupations Code, and is not communicated in   violation of Section 2033.013, Occupations Code.          SECTION 9.  Section 47.06(f), Penal Code, is amended to read   as follows:          (f)  It is a defense to prosecution under Subsection (a) or   (c) that the person owned, manufactured, transferred, or possessed   the gambling device, equipment, or paraphernalia for the sole   purpose of shipping it:                (1)  to a person authorized under an appropriate   license issued under Subtitle E, Title 13, Occupations Code; or                (2)  to another jurisdiction where the possession or   use of the device, equipment, or paraphernalia was legal.          SECTION 10.  Section 47.09(a), Penal Code, is amended to   read as follows:          (a)  It is a defense to prosecution under this chapter that   the conduct:                (1)  was authorized under:                      (A)  Chapter 2001, Occupations Code;                      (B)  Chapter 2002, Occupations Code;                      (C)  Chapter 2004, Occupations Code;                      (D)  Subtitle A-1, Title 13, Occupations Code   (Texas Racing Act); [or]                      (E)  Chapter 280, Finance Code; or                      (F)  Subtitle E, Title 13, Occupations Code;                (2)  consisted entirely of participation in the state   lottery authorized by Chapter 466, Government Code; or                (3)  was a necessary incident to the operation of the   state lottery and was directly or indirectly authorized by:                      (A)  Chapter 466, Government Code;                      (B)  the lottery division of the Texas Lottery   Commission;                      (C)  the Texas Lottery Commission; or                      (D)  the director of the lottery division of the   Texas Lottery Commission.          SECTION 11.  (a)  Funds in the Texas casino gaming fund may   be appropriated only to the Texas Gaming Commission for the   operation of the commission and the administration of Subtitle E,   Title 13, Occupations Code, as added by this Act, for the biennium   ending August 31, 2025.          (b)  Not later than February 1, 2024, the initial members of   the Texas Gaming Commission shall be appointed in accordance with   Chapter 2201, Occupations Code, as added by this Act.  In making the   initial appointments, the governor shall designate one member to a   term expiring February 1, 2025, two members to terms expiring   February 1, 2027, and two members to terms expiring February 1,   2029.          SECTION 12.  (a) The Texas Gaming Commission Legislative   Oversight Committee is created to facilitate the creation of the   Texas Gaming Commission and the assignment of powers, duties,   functions, programs, and activities of the commission as provided   by this Act.          (b)  The committee is composed of seven members as follows:                (1)  two members of the senate, appointed by the   lieutenant governor not later than December 1, 2023;                (2)  two members of the house of representatives,   appointed by the speaker of the house of representatives not later   than December 1, 2023; and                (3)  three members of the public, appointed by the   governor not later than December 1, 2023.          (c)  Once the members of the Texas Gaming Commission have   been appointed and have selected an executive director, the   executive director of the Texas Gaming Commission shall serve as an   ex officio member of the committee.          (d)  A member of the committee serves at the pleasure of the   appointing official.          (e)  The lieutenant governor and the speaker of the house of   representatives shall alternate designating a presiding officer   from among their respective appointments.  The speaker of the house   of representatives shall make the first designation.          (f)  A member of the committee may not receive compensation   for serving on the committee but is entitled to reimbursement for   travel expenses incurred by the member while conducting the   business of the committee as provided by the General Appropriations   Act.          (g)  The committee shall:                (1)  facilitate the assignment of powers, duties,   functions, programs, and activities of the Texas Gaming Commission   as provided by this Act;                (2)  adopt an initial training program to meet the   requirements of Section 2201.058, Occupations Code, as added by   this Act, to train the initial appointees of the Texas Gaming   Commission;                (3)  with assistance from the Texas Gaming Commission,   advise the executive director and members of the Texas Gaming   Commission concerning the powers, duties, functions, programs, and   activities established under this Act and the funds and obligations   that are related to the powers, duties, functions, programs, or   activities;                (4)  meet at the call of the presiding officer;                (5)  research, take public testimony, and issue reports   on other appropriate issues or specific issues requested by the   lieutenant governor, speaker of the house of representatives, or   governor; and                (6)  review specific recommendations for legislation   proposed by the Texas Gaming Commission or the other agencies.          (h)  The committee may request reports and other information   from the Texas Gaming Commission, other state agencies, and the   attorney general relating to casino gaming and sports wagering in   this state and other appropriate issues.          (i)  The committee shall use existing staff of the senate,   the house of representatives, and the Texas Legislative Council to   assist the committee in performing its duties under this section.          (j)  Chapter 551, Government Code, applies to the committee.          (k)  The committee shall report to the governor, lieutenant   governor, and speaker of the house of representatives not later   than November 15 of each even-numbered year.  The report must   include:                (1)  identification of significant issues within   casino gaming and sports wagering regulation, with recommendations   for action;                (2)  an analysis of the effectiveness and efficiency of   casino gaming and sports wagering regulation, with recommendations   for any necessary research; and                (3)  recommendations for legislative action.          SECTION 13.  (a)  The assignment of powers, duties,   functions, programs, and activities of the Texas Gaming Commission   must be accomplished in accordance with a schedule included in a   work plan developed by the executive director and members of the   Texas Gaming Commission and submitted to the governor and the   Legislative Budget Board not later than September 1, 2024.  The   executive director and commission members shall provide to the   governor and the Legislative Budget Board work plan status reports   and updates on at least a quarterly basis following submission of   the initial work plan.  The work plan must be made available to the   public.          (b)  Not later than June 1, 2024, the Texas Gaming Commission   shall hold a public hearing and accept public comment regarding the   work plan required to be developed by the executive director and   members of the Texas Gaming Commission under this section.          (c)  In developing the work plan, the executive director and   members of the Texas Gaming Commission shall hold public hearings   in various geographic areas in this state before submitting the   plan to the governor and the Legislative Budget Board as required by   this section.          (d)  The Texas Gaming Commission shall implement the powers,   duties, functions, programs, and activities assigned to the   commission under this Act in accordance with a work plan designed by   the commission to ensure that the implementation of gaming   regulation under this Act is accomplished in a careful and   deliberative manner.          (e)  A work plan designed by the commission under this   section must include the following phases:                (1)  a planning phase, during which the commission will   focus on and stabilize the organization of the agency's powers,   duties, functions, programs, and activities, and which must   include:                      (A)  initiation of recommendations made by the   Texas Gaming Commission Legislative Oversight Committee;                      (B)  creation of interagency and intra-agency   steering committees;                      (C)  development of global visions, goals, and   organizational strategies; and                      (D)  development of communications and risk   management plans;                (2)  an integration phase, during which the commission   will identify opportunities and problems and design customized   solutions for those problems, and which must include:                      (A)  identification of key issues related to costs   or legal requirements for other commission activities;                      (B)  planning for daily operations; and                      (C)  validation of fiscal and program synergies;                (3)  an optimization phase, during which the commission   will complete and expand on the initial transitions, and which must   include:                      (A)  optimization of initial implementation   initiatives;                      (B)  use of enterprise teaming operations;                      (C)  building infrastructures to support and   facilitate changes in gaming regulation and oversight; and                      (D)  identification and use of beneficial assets   management and facilities approaches; and                (4)  a transformation phase, during which the   commission will continue implementing initial and additional   changes in gaming regulation and oversight, and which must include   implementation of changes in agency management activities.          SECTION 14.  As soon as practicable after the constitutional   amendment to authorize casino gaming and sports wagering in this   state proposed by the 88th Legislature, Regular Session, 2023, is   approved by the voters and becomes effective, the Texas Gaming   Commission shall adopt the rules necessary to implement that gaming   in accordance with Chapter 2202, Occupations Code, as added by this   Act, and in anticipation of receiving license applications not   later than September 1, 2025.          SECTION 15.  This Act takes effect on the date the amendment   proposed by the 88th Legislature, Regular Session, 2023, to foster   economic development and job growth, provide tax relief and funding   for education and public safety programs, and reform and support   the horse racing industry by authorizing casino gaming at   destination resorts, authorizing sports wagering, creating the   Texas Gaming Commission to regulate casino gaming and sports   wagering, requiring a license to conduct casino gaming, and   requiring the imposition of a gaming tax, sports wagering tax, and   license application fees is approved by the voters.  If that   amendment is not approved by the voters, this Act has no effect.