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A BILL TO BE ENTITLED
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AN ACT
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relating to fantasy sports contests. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 13, Occupations Code, is |
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amended by adding Chapter 2053 to read as follows: |
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CHAPTER 2053. FANTASY SPORTS CONTESTS |
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Sec. 2053.001. DEFINITION. In this chapter, "fantasy |
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sports contest" means a competition in which: |
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(1) a participant pays money or other consideration |
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for the opportunity to assemble a fictional team composed of |
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professional or amateur sports athletes selected by the participant |
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to compete against other fictional teams assembled by other |
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competition participants; |
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(2) the outcome of the competition is based on the |
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actual statistical performance of the selected athletes in sports |
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competitions, or in a season or series of sports competitions; and |
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(3) a prize is awarded to the competition winner. |
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Sec. 2053.002. LEGISLATIVE FINDINGS. (a) The legislature |
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finds that a participant in a fantasy sports contest is an actual |
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contestant in a bona fide contest for the determination of the skill |
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of the participant in assembling a fictional team of sports |
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athletes. |
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(b) A person who pays an entrance fee to compete in a fantasy |
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sports contest is not placing a bet for purposes of the application |
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of an offense under Chapter 47, Penal Code. |
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Sec. 2053.003. PARTICIPATION IN FANTASY SPORTS CONTEST. A |
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person may pay an entrance fee to participate in a fantasy sports |
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contest. |
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Sec. 2053.004. OPERATION OF FANTASY SPORTS CONTEST. (a) A |
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person may operate fantasy sports contests in this state in |
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accordance with this chapter and any applicable federal law and may |
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participate in the earnings of a business that offers fantasy |
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sports contests. |
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(b) A fantasy sports contest operator may award prizes to |
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contest participants only based on the relative knowledge and skill |
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of the contest participants and based predominantly on accumulated |
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statistical results of the performance of the athletes |
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participating in multiple professional or amateur sports |
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competitions or in a season or series of sports competitions. |
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(c) Notwithstanding Subsection (b), a fantasy sports |
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contest operator may not award a prize based: |
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(1) on the score, the point spread, or any performance |
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of a single professional or amateur sports team or any combination |
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of professional or amateur sports teams; |
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(2) solely on any single performance of an individual |
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athlete in a single professional or amateur sports competition or |
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other event; or |
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(3) on live pari-mutuel racing under the Texas Racing |
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Act. |
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Sec. 2053.005. CONSUMER PROTECTION. A fantasy sports |
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contest operator shall implement procedures for fantasy sports |
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contests that: |
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(1) prevent an employee of the operator, and any |
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relative living in the same household as the employee, from |
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competing in a fantasy sports contest in which a cash prize is |
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awarded; |
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(2) prohibit the operator from being a participant in |
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a fantasy sports contest that the operator offers; |
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(3) prevent an employee or agent of the operator from |
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sharing with third parties confidential information that could |
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affect fantasy sports contest play until the information has been |
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made publicly available; |
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(4) verify that fantasy sports contest participants |
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are 18 years of age or older; and |
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(5) restrict an individual who is a player, a game |
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official, or another participant in a professional or amateur |
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sports competition from participating in a fantasy sports contest |
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that is determined, wholly or partly, on the performance of that |
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individual, the individual's professional or amateur team, or the |
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accumulated statistical results of the sport or competition in |
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which the individual is a player, game official, or other |
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participant. |
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Sec. 2053.006. INJUNCTIVE RELIEF. (a) The attorney |
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general may institute an action for injunctive relief to restrain a |
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violation by a person who appears to be in violation of or |
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threatening to violate this chapter. |
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(b) An action filed under this section by the attorney |
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general must be filed in a district court in Travis County or the |
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county in which the violation occurred. |
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(c) The attorney general may recover reasonable expenses |
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incurred in obtaining injunctive relief under this section, |
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including court costs, reasonable attorney's fees, investigative |
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costs, witness fees, and deposition expenses. |
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(d) In an injunction issued under this section, a court may |
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include reasonable requirements to prevent further violations of |
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this chapter. |
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SECTION 2. Section 47.02(c), Penal Code, is amended to read |
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as follows: |
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(c) It is a defense to prosecution under this section that |
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the actor reasonably believed that the conduct: |
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(1) was permitted under Chapter 2001, Occupations |
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Code; |
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(2) was permitted under Chapter 2002, Occupations |
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Code; |
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(3) was permitted under Chapter 2004, Occupations |
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Code; |
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(4) was permitted under Chapter 2053, Occupations |
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Code; |
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(5) consisted entirely of participation in the state |
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lottery authorized by the State Lottery Act (Chapter 466, |
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Government Code); |
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(6) [(5)] was permitted under the Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes); or |
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(7) [(6)] consisted entirely of participation in a |
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drawing for the opportunity to participate in a hunting, fishing, |
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or other recreational event conducted by the Parks and Wildlife |
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Department. |
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SECTION 3. Section 47.09(a), Penal Code, is amended to read |
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as follows: |
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(a) It is a defense to prosecution under this chapter that |
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the conduct: |
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(1) was authorized under: |
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(A) Chapter 2001, Occupations Code; |
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(B) Chapter 2002, Occupations Code; |
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(C) Chapter 2004, Occupations Code; [or] |
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(D) Chapter 2053, Occupations Code; or |
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(E) the Texas Racing Act (Article 179e, Vernon's |
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Texas Civil Statutes); |
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(2) consisted entirely of participation in the state |
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lottery authorized by Chapter 466, Government Code; or |
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(3) was a necessary incident to the operation of the |
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state lottery and was directly or indirectly authorized by: |
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(A) Chapter 466, Government Code; |
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(B) the lottery division of the Texas Lottery |
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Commission; |
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(C) the Texas Lottery Commission; or |
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(D) the director of the lottery division of the |
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Texas Lottery Commission. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |