85R949 GCB-D
 
  By: Raymond H.B. No. 1457
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.  DEFINITION.  In this chapter, "fantasy
  sports contest" means a competition in which:
               (1)  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;
               (2)  the outcome of the competition is based on the
  actual statistical performance of the selected athletes in sports
  competitions, or in a season or series of sports competitions; and
               (3)  a prize is awarded to the competition winner.
         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 operate fantasy sports contests 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 contest operator may award prizes to
  contest participants only based on the relative knowledge and skill
  of the contest participants and based predominantly on accumulated
  statistical results of the performance of the athletes
  participating in multiple professional or amateur sports
  competitions or in a season or series of sports competitions.
         (c)  Notwithstanding Subsection (b), a fantasy sports
  contest operator may not award a prize based:
               (1)  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;
               (2)  solely on any single performance of an individual
  athlete in a single professional or amateur sports competition or
  other event; or
               (3)  on live pari-mutuel racing under the Texas Racing
  Act.
         Sec. 2053.005.  CONSUMER PROTECTION. A fantasy sports
  contest operator shall implement 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; and
               (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.
         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) [(5)]  was permitted under the Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes); or
               (7) [(6)]  consisted entirely of participation in a
  drawing for the opportunity to participate in a hunting, fishing,
  or other recreational event conducted by the Parks and Wildlife
  Department.
         SECTION 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; [or]
                     (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.