Bill Text: TX HB1457 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to fantasy sports contests.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-04-18 - Committee report sent to Calendars [HB1457 Detail]
Download: Texas-2017-HB1457-Comm_Sub.html
85R20198 GCB-D | |||
By: Raymond, Kuempel, Anderson of Dallas, | H.B. No. 1457 | ||
Herrero, White, et al. | |||
Substitute the following for H.B. No. 1457: | |||
By: Guillen | C.S.H.B. No. 1457 |
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relating to fantasy sports contests. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle B, Title 13, Occupations Code, is | ||
amended by adding Chapter 2053 to read as follows: | ||
CHAPTER 2053. FANTASY SPORTS CONTESTS | ||
Sec. 2053.001. DEFINITIONS. In this chapter: | ||
(1) "Fantasy sports contest" means a competition in | ||
which: | ||
(A) a participant pays money or other | ||
consideration for the opportunity to assemble a fictional team | ||
composed of professional or amateur sports athletes selected by the | ||
participant to compete against other fictional teams assembled by | ||
other competition participants; | ||
(B) the outcome of the competition reflects the | ||
relative knowledge and skill of the participants and is based on the | ||
actual statistical performance of the selected athletes in sports | ||
competitions, or in a season or series of sports competitions; | ||
(C) a prize is awarded to the competition winner; | ||
(D) the outcome of the competition or the | ||
redemption of the winnings is not displayed or represented in a | ||
manner that mimics a slot machine or other form of casino gaming, | ||
including a banked card game, poker, craps, roulette, keno, lotto, | ||
and bingo; and | ||
(E) the competition is not presented using any | ||
depiction of a casino gaming graphic, theme, or title, including | ||
any depiction of a slot machine-style symbol, a banked card game, | ||
poker, craps, roulette, keno, lotto, and bingo. | ||
(2) "Fantasy sports operator" means a person, | ||
including an entity, or a division of an entity, that offers fantasy | ||
sports contests to the public. | ||
Sec. 2053.002. LEGISLATIVE FINDINGS. (a) The legislature | ||
finds that a participant in a fantasy sports contest is an actual | ||
contestant in a bona fide contest for the determination of the skill | ||
of the participant in assembling a fictional team of sports | ||
athletes. | ||
(b) A person who pays an entrance fee to compete in a fantasy | ||
sports contest is not placing a bet for purposes of the application | ||
of an offense under Chapter 47, Penal Code. | ||
Sec. 2053.003. PARTICIPATION IN FANTASY SPORTS CONTEST. A | ||
person may pay an entrance fee to participate in a fantasy sports | ||
contest. | ||
Sec. 2053.004. OPERATION OF FANTASY SPORTS CONTEST. (a) A | ||
person may offer fantasy sports contests as a fantasy sports | ||
operator in this state in accordance with this chapter and any | ||
applicable federal law and may participate in the earnings of a | ||
business that offers fantasy sports contests. | ||
(b) A fantasy sports operator may not: | ||
(1) award a prize based: | ||
(A) on the score, the point spread, or any | ||
performance of a single professional or amateur sports team or any | ||
combination of professional or amateur sports teams; | ||
(B) solely on any single performance of an | ||
individual athlete in a single professional or amateur sports | ||
competition or other event; or | ||
(C) on live pari-mutuel racing under the Texas | ||
Racing Act (Article 179e, Vernon's Texas Civil Statutes); | ||
(2) offer a fantasy sports contest to the public | ||
without disclosing before the contest all prizes or awards offered | ||
to winning participants of the contest; or | ||
(3) offer a fantasy sports contest based on the | ||
performance of athletes in a youth, high school, or collegiate | ||
sports competition or athletic event. | ||
Sec. 2053.005. CONSUMER PROTECTION. A fantasy sports | ||
operator shall implement commercially reasonable procedures for | ||
fantasy sports contests that: | ||
(1) prevent an employee of the operator, and any | ||
relative living in the same household as the employee, from | ||
competing in a fantasy sports contest in which a cash prize is | ||
awarded; | ||
(2) prohibit the operator from being a participant in | ||
a fantasy sports contest that the operator offers; | ||
(3) prevent an employee or agent of the operator from | ||
sharing with third parties confidential information that could | ||
affect fantasy sports contest play until the information has been | ||
made publicly available; | ||
(4) verify that fantasy sports contest participants | ||
are 18 years of age or older; | ||
(5) restrict an individual who is a player, a game | ||
official, or another participant in a professional or amateur | ||
sports competition from participating in a fantasy sports contest | ||
that is determined, wholly or partly, on the performance of that | ||
individual, the individual's professional or amateur team, or the | ||
accumulated statistical results of the sport or competition in | ||
which the individual is a player, game official, or other | ||
participant; and | ||
(6) prevent the commingling of fantasy contest player | ||
funds with operational funds unless the operator maintains a | ||
reserve that: | ||
(A) exceeds the amount of contest player funds on | ||
deposit with the operator; | ||
(B) is not used by the operator for operational | ||
activities; and | ||
(C) is in the form of cash, cash equivalents, | ||
payment processor reserves, payment processor receivables, | ||
irrevocable letters of credit, bonds, or any combination of those | ||
items. | ||
Sec. 2053.006. INJUNCTIVE RELIEF. (a) The attorney | ||
general may institute an action for injunctive relief to restrain a | ||
violation by a person who appears to be in violation of or | ||
threatening to violate this chapter. | ||
(b) An action filed under this section by the attorney | ||
general must be filed in a district court in Travis County or the | ||
county in which the violation occurred. | ||
(c) The attorney general may recover reasonable expenses | ||
incurred in obtaining injunctive relief under this section, | ||
including court costs, reasonable attorney's fees, investigative | ||
costs, witness fees, and deposition expenses. | ||
(d) In an injunction issued under this section, a court may | ||
include reasonable requirements to prevent further violations of | ||
this chapter. | ||
SECTION 2. Section 47.02(c), Penal Code, is amended to read | ||
as follows: | ||
(c) It is a defense to prosecution under this section that | ||
the actor reasonably believed that the conduct: | ||
(1) was permitted under Chapter 2001, Occupations | ||
Code; | ||
(2) was permitted under Chapter 2002, Occupations | ||
Code; | ||
(3) was permitted under Chapter 2004, Occupations | ||
Code; | ||
(4) was permitted under Chapter 2053, Occupations | ||
Code; | ||
(5) consisted entirely of participation in the state | ||
lottery authorized by the State Lottery Act (Chapter 466, | ||
Government Code); | ||
(6) [ |
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(Article 179e, Vernon's Texas Civil Statutes); or | ||
(7) [ |
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drawing for the opportunity to participate in a hunting, fishing, | ||
or other recreational event conducted by the Parks and Wildlife | ||
Department. | ||
SECTION 3. 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; [ |
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(D) Chapter 2053, Occupations Code; or | ||
(E) the Texas Racing Act (Article 179e, Vernon's | ||
Texas Civil Statutes); | ||
(2) consisted entirely of participation in the state | ||
lottery authorized by Chapter 466, Government Code; or | ||
(3) was a necessary incident to the operation of the | ||
state lottery and was directly or indirectly authorized by: | ||
(A) Chapter 466, Government Code; | ||
(B) the lottery division of the Texas Lottery | ||
Commission; | ||
(C) the Texas Lottery Commission; or | ||
(D) the director of the lottery division of the | ||
Texas Lottery Commission. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2017. |