By: Menendez H.J.R. No. 131
A JOINT RESOLUTION
proposing a constitutional amendment providing immediate
additional revenue for the state budget by creating the Texas
Gaming Commission, and authorizing and regulating the operation of
casino games and slot machines by a limited number of licensed
operators and certain Indian tribes.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 47(a), Article III, Texas Constitution,
is amended 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) of this section and Sections 47a and
47b of this article.
SECTION 2. Article III, Texas Constitution, is amended by
adding Section 47a to read as follows:
Sec. 47a. (a) Casino gaming and slot gaming are authorized
in this state in accordance with this section to provide additional
money for the foundation school fund and additional financial aid
for higher education students.
(b) The Texas Gaming Commission is established. The
commission is composed of five members appointed by the governor
with the advice and consent of the senate. Commission members serve
staggered six-year terms, with one or two members' terms, as
applicable, expiring February 1 of each odd-numbered year. The
governor shall fill a vacancy in a position on the commission for
the remainder of the unexpired term. The governor shall designate a
commission member as presiding officer of the commission to serve
in that capacity at the pleasure of the governor.
(c) To be eligible for appointment to the commission, a
person:
(1) must be a citizen of the United States;
(2) must have resided in this state for the two years
preceding the date of the person's appointment;
(3) may not own a financial or other interest in an
entity engaged in the conduct of casino or slot gaming or the
provision of casino or slot services, or in a security issued by
such an entity, or be related within the second degree by affinity
or the third degree by consanguinity as determined by general law to
an individual who owns such a financial or other interest or
security;
(4) may not be an applicant for or holder of a license
or other affirmative regulatory approval under a law administered
by the commission; and
(5) may not be a member of the governing body of a
political subdivision of this state.
(d) The Texas Gaming Commission has broad authority and
shall exercise strict control and close supervision over all
activities related to casino and slot gaming authorized and
conducted in this state under this section or another law
administered by the commission.
(e) The Texas Gaming Commission shall appoint an executive
director and other necessary personnel and adopt rules the
commission considers necessary or desirable for the public interest
in carrying out the policy and provisions of this section and the
other laws administered by the commission, including rules on:
(1) licensing and regulating casino owners, slot
establishment owners, gaming managers, gaming employees, and
manufacturers and distributors of gaming equipment, including the
qualifications, definitions, terms, and fees for licenses;
(2) criteria for awarding, denying, revoking, and
suspending licenses;
(3) exclusion of persons and age requirements;
(4) procedures for conducting investigations,
inspections, criminal background investigations, audits, complaint
investigations, and disciplinary hearings;
(5) reporting and internal control requirements for
license holders;
(6) consequences of criminal convictions of license
holders or applicants;
(7) enforcement provisions, including disciplinary
actions and penalties, and security requirements;
(8) prize payment and redemption;
(9) regulating the operations of casinos and slot
establishments; and
(10) standards for gaming equipment.
(f) The Texas Gaming Commission shall:
(1) issue four licenses to conduct casino gaming or
slot gaming to persons who are licensed to conduct pari-mutuel
wagering on horse or greyhound races at the location for which the
applicants were licensed to conduct pari-mutuel wagering on horse
or greyhound races as of January 1, 2013 and who comply with
requirements of this section and commission rule;
(2) issue three licenses to conduct casino gaming in
this state to persons who are licensed to conduct pari-mutuel
wagering at a class 1 racetrack as defined by Article 179e, Vernon's
Texas Civil Statutes, at the location licensed for conducting
pari-mutuel wagering on horse races and who comply with
requirements of this section and commission rule;
(3) issue four licenses to conduct casino gaming to
casino-anchored destination attraction development projects in
counties with a population greater than 1.5 million that comply
with requirements of this section and commission rule;
(4) issue three licenses to conduct casino gaming to
casino-anchored destination attraction development projects
located on islands in the Gulf of Mexico that comply with
requirements of this section and commission rule; and
(5) allow an Indian tribe that is recognized by the
United States government under federal law to operate slot machines
or casino gaming on its Indian land held in trust by the United
States on January 1, 1998, in accordance with federal law and:
(A) an effective gaming agreement that includes a
provision requiring the Indian tribe to remit to this state a
portion of its casino gaming or slot gaming revenue in an amount
equal to the rate provided in the agreement; or
(B) general state law that includes a provision
requiring the Indian tribe to remit to this state a portion of its
casino gaming or slot gaming revenue in an amount equal to the rate
provided by the general law.
(g) In determining whether or, in the case of multiple
applicants competing for a limited number of casino owner's
licenses or slot establishment owner's licenses within a geographic
area, to whom to grant a license, the Texas Gaming Commission shall
consider the following factors:
(1) the relative prospective revenue to be collected
by this state from the conduct of casino gaming at the casino or of
slot gaming at the slot establishment and the overall economic
impact of each competing applicant's proposed gaming and associated
facilities;
(2) the relative number of residents of this state who
would be employed in an applicant's proposed casino or slot
establishment and any proposed associated hotel and nongaming
businesses and the relative extent of the applicant's good faith
plan to recruit, train, and promote a workforce that reflects the
diverse populations of this state in all employment
classifications;
(3) the relative extent to which an applicant's
proposed casino or slot establishment and any proposed associated
hotel and nongaming businesses could be reasonably expected to
encourage interstate tourism to this state;
(4) the relative extent to which the scope, design,
location, and construction of the applicant's casino or slot
establishment and any associated hotel and nongaming businesses
could be reasonably expected to contribute to developing a
first-class gaming industry in this state;
(5) the applicant's experience in conducting licensed
gaming operations and the applicant's financial ability to promptly
construct and adequately maintain the casino or slot establishment
sought to be licensed, including the experience of partners of the
applicant, of affiliated companies of the applicant or its
partners, of key personnel of the applicant or its partners, and of
operating companies under contract with the applicant; and
(6) the percentage of equity interest in the applicant
owned or to be owned by residents of this state.
(h) To ensure that a requisite level of economic development
benefiting the people of this state accompanies each casino for
which an owner's license is granted, the Texas Gaming Commission
shall require an applicant, as a condition to receiving and holding
an owner's license, to commit to building a casino-anchored
destination attraction development project that includes total
land and development costs of at least:
(1) $1 billion for a project described in Subsection
(f)(3) of this section; or
(2) $250 million for a casino project described in
Subsection (f)(1), (2) and (4) of this section.
(i) Notwithstanding Subsection (f) of this section:
(1) a license for a project described in Subsection
(f)(1), (2), (3) or (4) may not be issued in a county unless:
(A) a majority of the voters of the county voted
for the proposition that added this section to this constitution;
or
(B) the voters of the county have approved a
proposition legalizing casino gaming at a local option election
held under this section;
(2) not more than two casino or slot establishment
licenses may be issued for projects to be located in the same
county;
(3) the commission may not issue a license under
Subsection (f)(1) to an applicant that has not conducted
pari-mutuel racing at the location prior to January 1, 2013;
(4) a casino owner's license may not be issued for a
location in an area in which casino gaming or slot gaming is
prohibited under a gaming agreement between an Indian tribe and
this state;
(5) a casino owner's license may not be issued for a
location within five miles of property which the General Land
Office is required to preserve and protect pursuant to Section
31.0515, Natural Resources Code.
(j) The Texas casino and slot gaming fund is a special fund
in the state treasury. All application fees, investigation fees,
and license fees collected by the Texas Gaming Commission or on the
commission's behalf related to casino and slot gaming shall be
deposited to the credit of the Texas casino and slot gaming fund.
Except as provided by this section, the Texas casino and slot gaming
fund may only be used for the operation of the commission and the
administration of this section. If the money in the fund exceeds
the amount necessary for the operation of the commission and the
administration of this section, the legislature shall transfer any
excess amount to the foundation school fund.
(k) An applicant applying for an owner's license for a slot
establishment as set forth in Subsection (f)(1) must submit to the
Texas Gaming Commission a $15 million application fee. An
applicant applying for an owner's license for a casino as set forth
in Subsection (f)(1) must submit to the Texas Gaming Commission a
$25 million application fee. An applicant applying for an owner's
license as set forth in Subsection (f)(2) must submit to the Texas
Gaming Commission a $50 million application fee. An applicant
applying for an owner's license as set forth in Subsection (f)(3)
must submit to the Texas Gaming Commission a $50 million
application fee. An applicant applying for an owner's license as
set forth in Subsection (f)(4) must submit to the Texas Gaming
Commission a $25 million application fee. If an applicant is not
awarded an owner's license, the commission shall refund the
application fee less the costs incurred by the commission in
reviewing the application and conducting a criminal background
investigation on the applicant.
(l) A casino gaming tax in an amount equal to 20 percent of
the gross gaming revenue is imposed on each holder of a casino
owner's license for facilities determined by the commission to have
invested less than $1 billion in the casino facility. A casino
gaming tax in an amount equal to 15 percent of the gross gaming
revenue is imposed on each holder of a casino owner's license for
facilities determined by the commission to have invested $1 billion
or more in the casino facility. The tax shall be computed and paid
on a monthly basis in accordance with the procedures established by
rule of the Texas Gaming Commission.
(m) A slot gaming tax in an amount equal to 35 percent of the
gross slot income of the slot establishment operated under the
license is imposed on each holder of a slot establishment owner's
license. The tax shall be computed and paid on a monthly basis in
accordance with the procedures established by rule of the Texas
Gaming Commission.
(n) Of the revenue from the taxes imposed by Subsections (l)
and (m) of this section:
(1) one-twentieth of the revenue is allocated to the
municipality in which the casino to which the license relates is
located and one-twentieth of the revenue is allocated to the county
in which the casino to which the license relates is located; or
(2) if the casino is located in an unincorporated
area, one-tenth of the revenue is allocated to the county in which
the casino to which the license relates is located.
(o) The comptroller of public accounts shall transfer the
appropriate amount allocated under Subsection (n) of this section
to the appropriate municipalities and counties not less than
monthly in the manner the comptroller considers appropriate.
(p) Except as otherwise provided by this section, the
revenue from the taxes imposed by Subsections (l) and (m) of this
section is allocated as follows:
(1) one-fortieth to the general revenue fund for
appropriation only to fund a compulsive gambling program
established by the Texas Gaming Commission;
(2) one-fortieth to the general revenue fund for
appropriation only to the Texas Gaming Commission to provide grants
to prosecuting attorneys in this state for the investigation and
prosecution of offenses related to the possession of gambling
devices and illegal gambling operations; and
(3) the remainder to the foundation school fund.
(q) The comptroller of public accounts quarterly shall
determine the net amount of receipts collected from a casino or slot
establishment from the sales and use taxes, hotel occupancy taxes,
alcoholic beverage taxes, and franchise taxes imposed under general
law, or from other taxes imposed under general law as provided by
the legislature in general law, and shall deposit that amount in the
general revenue fund. The net amount deposited may only be
appropriated to fund the TEXAS grant program established under
Subchapter M, Chapter 56, Education Code, or a similar program
established by the legislature to provide grants to higher
education students in this state.
(r) A casino or slot establishment located at a greyhound
racetrack shall transfer 12 percent of the gross gaming revenue to a
Texas canine development fund to be established at that racetrack.
(s) A casino or slot establishment located at a horse
racetrack shall provide at least $1 million, or the minimum
coverage amount required by the Texas Racing Commission, in
accident insurance coverage for jockeys participating in a race
meeting at its racetrack. The Texas Racing Commission:
(1) may review and approve the adequacy of the
coverage;
(2) shall annually adjust for inflation the minimum
coverage amount; and
(3) shall annually publish in the Texas Register the
revised minimum coverage amount.
(t) A casino gaming establishment located at a racetrack
shall make at least weekly payments to the racing facilities
capital improvement account in an amount equal to 0.5 percent of the
gross gaming revenue unless a racing facilities agreement providing
for a different amount is filed with the Texas Racing Commission.
(u) The racing facilities capital improvement account is a
special escrow account held outside the state treasury and
administered by the Texas Racing Commission without further
appropriation. A transfer of money from the account requires:
(1) for a horse racetrack, the signatures of:
(A) a designated official of the horse racetrack;
and
(B) a designated representative appointed by a
majority of the quarter horse state breed registry, the
Thoroughbred state horse breed registry, and the horsemen's
organization; or
(2) for a greyhound racetrack, the signatures of:
(A) a designated official of the greyhound
racetrack; and
(B) a designated representative of the Texas
Greyhound Association.
(v) The Texas Racing Commission shall adopt rules to
administer purse contributions. The rules must require the
electronic transfer of funds to the accounts described in this
section.
(w) A casino or slot establishment located at a racetrack
shall promptly and fully make each payment or transfer from the net
gaming income required under this section on behalf of the casino
gaming establishment at the racetrack even if live racing at that
racetrack is shortened, canceled, or delayed for any reason.
(x) If a horse racetrack fails to request the minimum number
of required live race dates or fails to offer the minimum number of
required live races despite issuance of live race dates, does not
receive a waiver of that violation from the Texas Racing Commission
as provided under the Texas Racing Act, and does not have an
agreement with the affected state horse breed registries and
horsemen's organization, the applicable state horse breed
registries and the horsemen's organization may, in their sole
discretion, transfer all money to which they are entitled under
this section from that racetrack to the respective accounts under
their control at another racetrack or racetracks.
(y) If a greyhound racetrack fails to request the minimum
number of required live race dates or fails to offer the minimum
number of required live races despite issuance of live race dates,
does not receive a waiver of that violation from the Texas Racing
Commission as provided under this subchapter, and does not have an
agreement with the affected officially recognized greyhound breed
registry, the Texas Greyhound Association may, in its sole
discretion, transfer all money to which the association is entitled
under this subchapter from that racetrack to the account under its
control at another racetrack or racetracks.
(z) An amount equal to 0.025 percent of the gross gaming
revenue generated at a casino or slot establishment at a racetrack
shall be transferred from the Texas equine development fund for
that racetrack to the equine research account of the Texas
Agricultural Experiment Station for use in equine research,
including facilities development under Subchapter F, Chapter 88,
Education Code. The money transferred under this subsection shall
supplement, and may not replace, funding provided under the Texas
Racing Act (Article 179e, Vernon ' s Texas Civil Statutes).
(aa) Each casino or slot establishment located at a
racetrack shall, at least weekly, transfer to the racing facilities
capital improvement account from the racetrack's Texas equine
development fund or Texas canine development fund, as applicable,
an amount equal to 0.5 percent of the net gaming income unless a
racing facilities agreement providing for a different amount is
filed with the Texas Racing Commission.
(bb) Unless an agreement between the state horse breed
registries and the horsemen ' s organization provides otherwise,
and after any other allocations required by this subchapter, the
remainder of the money deposited in the Texas equine development
fund at a casino gaming establishment must:
(1) be used for purses and the Texas-bred incentive
programs and may be used for other programs considered beneficial
to the equine industry, including:
(A) equine retirement, adoption, and retraining
programs;
(B) programs to test for banned
performance-enhancing equine drugs, performance-enhancing drug
testing research, and equipment and facilities of laboratories
providing those services in this state; and
(C) other programs to improve the working
environment in stable areas of racetracks; and
(2) be allocated as follows:
(A) an amount equal to 4.43 percent of the gross
gaming revenue to the horsemen's organization to supplement
Thoroughbred racing purses;
(B) an amount equal to 2.385 percent of the gross
gaming revenue to the horsemen's organization to supplement quarter
horse racing purses;
(C) an amount equal to 2.38 percent of the gross
gaming revenue to the Thoroughbred state horse breed registry; and
(D) an amount equal to 1.28 percent of the gross
gaming revenue to the quarter horse state horse breed registry.
(cc) From the money allocated under Subsection (bb)(2)(A),
under an agreement between the Texas Arabian Breeders Association
and the horsemen's organization, the horsemen's organization shall
allocate a portion of the money for purses for the Arabian horse
racing industry. The agreement must provide that not less than an
amount equal to 0.199 percent of the gross gaming revenue be
allocated for Arabian horse racing purses. If an agreement is not
made, the horsemen's organization shall transfer to the Texas
Arabian horse racing industry an amount equal to 0.199 percent of
the gross gaming revenue for Arabian horse racing purses.
(dd) From the money allocated under Subsection (bb)(2)(B),
under an agreement between the Texas Paint Horse Breeders'
Association and the horsemen's organization, the horsemen's
organization shall allocate a portion of the money for purses for
the paint horse racing industry. If an agreement is not made, the
horsemen's organization shall transfer to the paint horse racing
industry an amount equal to 0.072 percent of the gross gaming
revenue for paint horse racing purses.
(ee) From the money allocated under Subsection (bb)(2)(C),
under an agreement between the Texas Arabian Breeders Association
and the Thoroughbred state horse breed registry, the registry shall
allocate a portion of the money for the Arabian horse racing
industry state-breed programs. The agreement must provide that not
less than an amount equal to 0.107 percent of the gross gaming
revenue be allocated for Arabian state-breed programs. If an
agreement is not made, the Thoroughbred state horse breed registry
shall transfer to the Texas Arabian horse racing industry for
state-breed programs an amount equal to 0.107 percent of the gross
gaming revenue.
(ff) From the money allocated under Subsection (bb)(2)(D),
under an agreement between the Texas Paint Horse Breeders'
Association and the quarter horse state horse breed registry, the
registry shall allocate a portion of the money for state-breed
programs for the paint horse racing industry. If an agreement is
not made, the registry shall transfer to the paint horse racing
industry an amount equal to 0.038 percent of the gross gaming
revenue for paint horse state-breed programs.
(gg) Following the other transfers and allocations required
by this subchapter, the remainder of the money deposited in the
Texas canine development fund at a greyhound racetrack is allocated
as follows:
(1) an amount equal to 4.75 percent of the gross gaming
revenue to supplement greyhound racing purses;
(2) an amount equal to 4.75 percent of the gross gaming
revenue to supplement accredited Texas-bred greyhound purses; and
(3) an amount equal to two percent of the gross gaming
revenue to the Texas Greyhound Association as the state greyhound
breed registry.
(hh) The Texas Racing Commission may adopt rules to
administer this section and shall require the electronic transfer
of funds to the accounts described in this section.
(ii) For purposes of subsections (r) and (z), a racing
facilities agreement for a horse racetrack is valid only on
approval of the applicable racetrack and a majority of the quarter
horse state horse breed registry, the Thoroughbred state horse
breed registry, and the horsemen's organization.
(jj) For purposes of subsections (r) and (z), a racing
facilities agreement for a greyhound racetrack is valid only on
approval of the racetrack and the Texas Greyhound Association.
(kk) A racing facilities agreement filed under subsection (r)
or (z) remains in effect until it expires on its own terms or until
it is superseded by a subsequent racing facilities agreement for
the same racetrack.
(ll) Unless a racing facilities agreement provides
otherwise, the money in the racing facilities capital improvement
account may be spent only for the maintenance and improvement of
pari-mutuel racing facilities.
(mm) Money in the performance horse development fund may be
used only for:
(1) the development of the horse agricultural industry
in this state through efforts intended to attract, retain, promote,
and encourage the breeding, raising, training, and exhibition of
performance and recreational horses in this state; and
(2) events and programs conducted in this state.
(nn) Money from the performance horse development fund is
allocated as follows:
(1) 40 percent to the American Quarter Horse
Association for its sanctioned events and programs;
(2) 20 percent to the National Cutting Horse
Association for its sanctioned events and programs;
(3) 20 percent to the American Paint Horse Association
for its sanctioned events and programs; and
(4) 20 percent to the Department of Agriculture to
promote the equine agricultural industry in this state.
(oo) Subject to Subsection (pp), money transferred to an
association or agency from the performance horse development fund
may be used for:
(1) purse supplements or additional money for
performance and recreational horses events conducted in this state;
(2) the establishment of an accredited Texas Bred
Program for breeding of performance and recreational horses;
(3) the marketing and promotion of performance and
recreational horses activities and events in this state; and
(4) scholarship programs.
(pp) Money may be transferred under Subsection (nn)(4) only
to organizations of the equine industry in this state that are not
receiving money for events and programs under Subsection (nn)(1),
(2), or (3).
(ss) Except as otherwise provided by law, all money paid to
the Department of Agriculture is subject to Subchapter F, Chapter
404.
(tt) Casinos and slot establishments are subject to all
applicable state laws and local ordinances related to health and
building codes, including rules adopted by the Texas Gaming
Commission. A local ordinance or zoning law may not prohibit the
development of a casino or slot establishment authorized by this
section, except that a casino or slot establishment may not be
located in an area that is zoned exclusively residential, unless
otherwise provided by commission rule.
(uu) The commissioners court of a county may at any time
order an election to legalize casino gaming under this section in
that county. The commissioners court shall order and hold an
election to legalize casino gaming under this section in the county
if the commissioners court is presented with a petition that meets
the requirements of this section and is certified as valid under
this section.
(vv) A petition for a legalization election must include a
statement substantially as follows before the space reserved for
signatures on each page: "This petition is to require that an
election be held in (name of county) to legalize casino gaming in
(name of county)." A petition is valid only if it is signed by
registered voters of the county in a number that is not less than
three percent of the total number of votes cast for governor by
qualified voters of the county in the most recent gubernatorial
general election. Each voter must enter beside the voter's
signature the date the voter signs the petition. A signature may
not be counted as valid if the date of signing is earlier than the
90th day before the date the petition is submitted to the
commissioners court. Each voter must provide on the petition the
voter's current voter registration number, printed name, and
residence address, including zip code.
(ww) Not later than the fifth day after the date a petition
for an election under this section is received in the office of the
commissioners court, the commissioners court shall submit the
petition for verification to the county clerk. The county clerk
shall determine whether the petition is signed by the number of
registered voters of the county required under Subsection (vv) of
this section. Not later than the 30th day after the date the
petition is submitted to the county clerk for verification, the
clerk shall certify in writing to the commissioners court whether
the petition is valid or invalid. If the county clerk determines
that the petition is invalid, the clerk shall state the reasons for
that determination.
(xx) If the county clerk certifies that a petition for an
election under this section is valid, not later than the 30th day
after the date of certification, the commissioners court shall
order that an election be held in the county on the next uniform
election date provided under general law that allows sufficient
time to comply with applicable provisions of general law. The
commissioners court shall state in the order the issue to be voted
on. The county clerk shall notify the Texas Gaming Commission by
certified mail, return receipt requested, that an election has been
ordered. The ballot in a legalization election shall be printed to
provide for voting for or against the proposition: "Legalizing
casino gaming within (name of county)."
(yy) The commissioners court shall give written notice of
the results of the election to the Texas Gaming Commission not later
than the third day after the date the election is canvassed. If the
majority of votes cast in a legalization election under this
section favor the legalization of casino gaming, casino gaming
authorized under this section is permitted within the county
holding the election effective on the 10th day after the date the
election is canvassed. If less than a majority of the votes cast in
the election favor the legalization of casino gaming, casino gaming
is not permitted in the county, and a subsequent election on the
issue may not be held in the county before the corresponding uniform
election date one year after the date of the election. If in each of
two consecutive elections within any county less than a majority of
the votes cast favor the legalization of casino gaming, casino
gaming is not permitted in the county, and a subsequent election on
the issue may not be held in the county before the corresponding
uniform election date five years after the date of the second
election.
(zz) It is a defense to prosecution for a gambling offense
under general law that the action was authorized under this section
or Texas Gaming Commission rule.
(aaa) All shipments of slot machines or gaming devices into,
out of, or within this state authorized under this section or a rule
adopted by the Texas Gaming Commission 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.
(bbb) Each state agency, including the attorney general and
the comptroller of public accounts, and each state or local law
enforcement agency shall cooperate with the Texas Gaming Commission
as necessary to implement this section.
(ccc) The legislature by general law may impose additional
restrictions or requirements for the conduct of casino and slot
gaming.
(ddd) Unless specifically authorized by general law, a
political subdivision of this state may not impose:
(1) a tax on the payment of a casino or slot prize;
(2) a tax, fee, or other assessment on consideration
paid to play a casino or slot game authorized by this section; or
(3) a tax or fee on attendance at or admission to a
casino or slot establishment authorized by this section.
(eee) In this section, unless modified by general law:
(1) "Casino" means a facility at which casino gaming
is conducted by a licensed casino owner as authorized by this
section.
(2) "Casino gaming" means any game of chance or
similar activity that involves the making of a bet for
consideration. The term includes any type of slot machine or table
game wagering using money, casino credit, or any representation of
value. The term does not include bingo, charitable raffles, or the
state lottery authorized under Section 47 of this article.
(3) "Casino owner" means a person, trust, corporation,
partnership, limited partnership, association, limited liability
company, or other business enterprise that directly holds an
ownership or leasehold interest in a casino licensed as provided by
this section.
(4) "Gross gaming revenue" means the total amount of
consideration paid to engage in casino gaming less winnings paid to
players of the casino games.
(5) "Gross slot income" means the total amount of
consideration paid to play slot machines less winnings paid to
players of the slot machines.
(6) "Performance and recreational horses" means
horses bred or trained for public competition and exhibition or
recreational use in all legally permitted equine activities other
than horse racing at racetracks.
(7) "Slot establishment" means a facility at which
slot gaming is conducted by a licensed slot establishment owner as
authorized by this section.
(8) "Slot establishment owner" means a person, trust,
corporation, partnership, limited partnership, association,
limited liability company, or other business enterprise that
directly holds an ownership or leasehold interest in a slot
establishment.
(9) "Slot gaming" means any game of chance that for
consideration is played on a slot machine. The term does not
include bingo, charitable raffles, or the state lottery authorized
under Section 47 of this article.
(10) "Slot machine" means a mechanical, electrical, or
other device or machine that, on insertion of a coin, token, or
similar object or on payment of consideration, is available to play
or operate a game, the play or operation of which, wholly or partly
by the element of chance, may deliver or entitle the person playing
or operating the device or machine to receive cash, premiums,
merchandise, tokens, or any other thing of value, whether the
payoff is made automatically from the device or machine or is made
in another manner.
SECTION 3. Article III, Texas Constitution, is amended by
adding Section 47b to read as follows:
Sec. 47b. (a) Any tribe of Indians that is federally
recognized and has a reservation in Texas on or before January 1,
1998 may, without application of state time, place and manner
restrictions, conduct on its reservation class II gaming regulated
by the National Indian Gaming Commission consistent with NIGC's
regulation of gaming conducted by Indian tribes in other states and
any other gaming activity that may be conducted by any other
individual, organization, group or entity with the state.
(b) Class II gaming shall have the same meaning as in 25
U.S.C. Section 2703 of the Indian Gaming Regulatory Act.
SECTION 4. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies to
the constitutional amendment proposed by the 83rd Legislature,
Regular Session, 2013, creating the Texas Gaming Commission and
authorizing and regulating the operation of casino games and slot
machines by licensed operators and certain Indian tribes to provide
money for the foundation school fund and additional financial aid
for higher education students.
(b) Not later than January 1, 2014, the governor shall
appoint the initial members of the Texas Gaming Commission in
accordance with Section 47a, Article III, of this constitution. In
making the initial appointments, the governor shall designate one
member to a term expiring February 1, 2015, two members to terms
expiring February 1, 2017, and two members to terms expiring
February 1, 2019.
(c) Not later than March 1, 2014, the Texas Gaming
Commission shall adopt the rules, including any emergency rules,
necessary to implement Section 47a, Article III, of this
constitution.
(d) This temporary provision expires January 1, 2015.
SECTION 5. (a) The constitutional amendment proposed by
Sections 1, 2, 3 and 4 of this resolution shall be submitted to the
voters at an election to be held November 5, 2013. The ballot shall
be printed to permit voting for or against the proposition: "The
constitutional amendment creating the Texas Gaming Commission and
authorizing and regulating the operation of casino games and slot
machines by a limited number of licensed operators and certain
Indian tribes to provide money for the foundation school fund and
additional financial aid for higher education students."