Texas 2011 - 82nd Regular

Texas Senate Bill SJR35 Latest Draft

Bill / Introduced Version

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                            82R5901 YDB-D
 By: Van de Putte S.J.R. No. 35


 A JOINT RESOLUTION
 proposing a constitutional amendment authorizing the legislature
 to legalize the operation of video gaming in this state by persons
 and organizations licensed to conduct bingo or lease bingo premises
 and providing that federally recognized Indian tribes are not
 prohibited from conducting gaming on certain Indian lands.
 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 47, Article III, Texas Constitution, is
 amended by amending Subsection (a) and adding Subsection (f) to
 read as follows:
 (a)  The Legislature shall pass laws prohibiting lotteries
 and gift enterprises in this State other than those authorized by
 Subsections (b), (d), [and] (e), and (f) of this section and Section
 47a of this article.
 (f)  This section does not prohibit a federally recognized
 Indian tribe from conducting video gaming on land in this state that
 was held in trust or recognized as tribal land of the tribe by the
 United States on January 1, 1998.  The prohibitions provided by
 Section 47a of this article do not apply to video gaming by an
 Indian tribe on such land.
 SECTION 2.  Article III, Texas Constitution, is amended by
 adding Section 47a to read as follows:
 Sec. 47a.  (a)  In this section, "gross gaming income" means
 the total amount of consideration paid to play a video gaming game
 less any amounts paid for video gaming prizes.
 (b)  The legislature by general law in accordance with this
 section may authorize the operation of video gaming in this state in
 which individuals play games of chance, including games of chance
 that require some skill, operated by persons licensed to conduct
 video gaming.  The law must:
 (1)  provide for the regulation of all video gaming by
 this state;
 (2)  limit video gaming operations in this state to
 gaming operated by persons or organizations that on January 1,
 2011, were licensed to conduct bingo or to lease bingo premises
 under state law;
 (3)  limit video gaming operations in this state to
 gaming operations in counties, justice precincts, and incorporated
 cities and towns that have held elections in which the conduct of
 bingo games in the jurisdiction was approved by the voters of the
 jurisdiction as required under Section 47(b) of this article;
 (4)  provide:
 (A)  a comprehensive licensing program, including
 necessary background investigations, to govern a person who
 conducts or assists in the conduct of video gaming operations in
 this state or who manufactures, distributes, installs, repairs, or
 alters video gaming games and equipment for use or play in this
 state; and
 (B)  procedures for the approval, monitoring, and
 inspection of video gaming operations as necessary to protect the
 public health, welfare, and safety and the integrity of the state
 and to prevent financial loss to this state;
 (5)  prohibit and impose criminal penalties for the
 possession and operation of all gaming devices other than devices
 operated in connection with authorized video gaming operations or
 gaming devices otherwise authorized by state law;
 (6)  provide that not more than 20 percent of the gross
 gaming income generated from video gaming operated by a licensed
 person or organization be transferred to this state as provided by
 general law;
 (7)  require that 10 percent of the gross gaming income
 generated from video gaming operated by a licensed person or
 organization at a location be transferred to:
 (A)  the charitable organization conducting bingo
 at the location; or
 (B)  if more than one charitable organization is
 conducting bingo at the location, the organizations in equal
 amounts;
   (8)  limit the use by charitable organizations of video
 gaming proceeds to the uses authorized by law for charitable bingo
 proceeds;
 (9)  include responsible gaming provisions that:
 (A)  to protect the security and integrity of
 video gaming, require mandatory exclusion of specified classes of
 persons from playing a video gaming game; and
 (B)  allow persons to be excluded voluntarily;
 (10)  prohibit admission to video gaming premises by
 any individual who is less than 18 years of age and prohibit the
 play of a video gaming game by an individual who is less than 21
 years of age;
 (11)  prohibit the play of video gaming games by an
 individual using any consideration borrowed from the person or
 organization licensed to conduct video gaming or obtained through a
 credit card or similar credit transaction; and
 (12)  require the regulatory agency that oversees video
 gaming to:
 (A)  monitor the performance of video gaming
 systems and to direct the disabling of a video system or any
 component of the system when necessary to protect the security,
 accounting, revenue collection, and integrity of video gaming
 operations; or
 (B)  contract with a qualified person for the
 person to perform the duties described by Paragraph (A) of this
 subdivision.
 (c)  The general law authorizing the operation of video
 gaming in this state may:
 (1)  require a manufacturer of video gaming equipment
 to supply to this state, at no cost to the state, sufficient
 equipment and software to allow the regulatory agency that oversees
 video gaming to perform the agency's regulatory functions;
 (2)  authorize the regulatory agency that oversees
 video gaming to adopt by reference all or part of the security,
 accounting, and equipment standards adopted by another state, the
 United States, or the National Indian Gaming Commission; and
 (3)  subject to the limitations provided by this
 section and as required to protect the security, accounting,
 revenue collection, and integrity of video gaming operations,
 provide for rapid implementation of video gaming to expedite and
 maximize the receipt of revenue by this state and charitable
 organizations.
 (d)  In the absence of enabling legislation to implement
 Subsection (b) of this section, the authority of this state to
 authorize and regulate bingo games under Section 47(b) of this
 article includes the authority of the state agency that regulates
 bingo to adopt rules to implement video gaming operations in
 accordance with Subsection (b) of this section.
 (e)  All shipments of video gaming equipment or other gaming
 devices into, out of, or within this state authorized under this
 section or a law enacted under this section are legal shipments of
 the devices and are exempt from the provisions of 15 U.S.C. Sections
 1171-1178 prohibiting the transportation of gambling devices.
 (f)  Subject to Subsection (g) of this section, the general
 law authorizing the operation of video gaming in this state must
 limit the number of video gaming terminals that may be located at a
 video gaming premises as follows:
 (1)  not more than 30 video gaming terminals may be
 operated at a video gaming premises where:
 (A)  a charitable organization conducts video
 gaming at a bingo premises that is not leased from a licensed bingo
 lessor; or
 (B)  one or more charitable organizations conduct
 video gaming at a bingo premises leased from a licensed bingo lessor
 who received not more than $30,000 from the organizations for lease
 of the bingo premises in 2010;
 (2)  not more than 60 video gaming terminals may be
 operated at a video gaming premises where one or more charitable
 organizations conduct video gaming at a bingo premises leased from
 a licensed bingo lessor who received more than $30,000 but not more
 than $70,000 from the organizations for lease of the bingo premises
 in 2010; and
 (3)  not more than 120 video gaming terminals may be
 operated at a video gaming premises where one or more charitable
 organizations conduct video gaming at a bingo premises leased from
 a licensed bingo lessor that received more than $70,000 from the
 organizations for lease of the bingo premises in 2010.
 (g)  The legislature by general law may increase the limits
 on the number of video gaming terminals that may be operated at a
 video gaming premises under Subsection (f) of this section,
 provided the law does not authorize the number of video gaming
 terminals at any video gaming premises to exceed those limits
 before December 1, 2016.
 SECTION 3.  This proposed constitutional amendment shall be
 submitted to the voters at an election to be held November 8, 2011.
 The ballot shall be printed to permit voting for or against the
 proposition: "The constitutional amendment authorizing the
 legislature to legalize the operation of video gaming in this state
 by persons and organizations licensed to conduct bingo or lease
 bingo premises and providing that federally recognized Indian
 tribes are not prohibited from conducting gaming on certain Indian
 lands."