Texas 2019 - 86th Regular

Texas Senate Bill SJR41 Compare Versions

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11 86R11256 ADM-F
22 By: Menéndez S.J.R. No. 41
33
44
55 A JOINT RESOLUTION
66 proposing a constitutional amendment creating the Texas Gaming
77 Commission and authorizing and regulating the operation of casino
88 games and slot machines by a limited number of licensed owners and
99 certain Indian tribes to provide money for the foundation school
1010 fund and additional financial aid for higher education students;
1111 authorizing fees; imposing a tax.
1212 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Section 47(a), Article III, Texas Constitution,
1414 is amended to read as follows:
1515 (a) The Legislature shall pass laws prohibiting lotteries
1616 and gift enterprises in this State other than those authorized by
1717 Subsections (b), (d), (d-1), and (e) of this section and Sections
1818 47a and 47b of this article.
1919 SECTION 2. Article III, Texas Constitution, is amended by
2020 adding Section 47a to read as follows:
2121 Sec. 47a. (a) Casino gaming and slot gaming are authorized
2222 in this state in accordance with this section to provide additional
2323 money for the foundation school fund and additional financial aid
2424 for higher education students.
2525 (b) The Texas Gaming Commission is established. The
2626 commission is composed of five members appointed by the governor
2727 with the advice and consent of the senate. Commission members serve
2828 staggered six-year terms, with one or two members' terms, as
2929 applicable, expiring February 1 of each odd-numbered year. The
3030 governor shall fill a vacancy in a position on the commission for
3131 the remainder of the unexpired term. The governor shall designate a
3232 commission member as presiding officer of the commission to serve
3333 in that capacity at the pleasure of the governor.
3434 (c) To be eligible for appointment to the commission, a
3535 person:
3636 (1) must be a citizen of the United States;
3737 (2) must have resided in this state for the two years
3838 preceding the date of the person's appointment;
3939 (3) may not:
4040 (A) own a financial or other interest in an
4141 entity engaged in the conduct of casino gaming or slot gaming or
4242 engaged in the provision of casino or slot services, or an interest
4343 in a security issued by such an entity; or
4444 (B) be related within the second degree by
4545 affinity or the third degree by consanguinity as determined by
4646 general law to an individual who owns an interest described in
4747 Paragraph (A) of this subdivision;
4848 (4) may not be an applicant for or holder of a license
4949 or other affirmative regulatory approval under a law administered
5050 by the commission; and
5151 (5) may not be a member of the governing body of a
5252 political subdivision of this state.
5353 (d) The Texas Gaming Commission has broad authority and
5454 shall exercise strict control and close supervision over all
5555 activities related to casino gaming and slot gaming authorized and
5656 conducted in this state under this section or another law
5757 administered by the commission.
5858 (e) The Texas Gaming Commission shall appoint an executive
5959 director and other necessary personnel and shall adopt rules the
6060 commission considers necessary or desirable for the public interest
6161 in carrying out the policy and provisions of this section and the
6262 other laws related to this section that are administered by the
6363 commission, including rules on:
6464 (1) licensing and regulating casino owners, slot
6565 establishment owners, gaming managers, gaming employees, and
6666 manufacturers and distributors of gaming equipment, including the
6767 qualifications, definitions, terms, and fees for licenses;
6868 (2) criteria for awarding, denying, revoking,
6969 probating, and suspending licenses;
7070 (3) exclusion of persons and age requirements;
7171 (4) procedures for conducting investigations,
7272 inspections, criminal background investigations, audits, complaint
7373 investigations, and disciplinary hearings;
7474 (5) reporting and internal control requirements for
7575 license holders;
7676 (6) consequences of criminal convictions of license
7777 holders or applicants;
7878 (7) enforcement provisions, including disciplinary
7979 actions and penalties, and security requirements;
8080 (8) prize payment and redemption;
8181 (9) regulating the operations of casinos and slot
8282 establishments; and
8383 (10) standards for gaming equipment.
8484 (f) The Texas Gaming Commission shall:
8585 (1) issue four licenses to operate casinos or slot
8686 establishments to persons who are licensed to conduct pari-mutuel
8787 wagering on horse or greyhound races in the county in which the
8888 applicants held a license to conduct pari-mutuel wagering on horse
8989 or greyhound races as of January 1, 2019, and who comply with
9090 requirements of this section and related state laws and commission
9191 rules;
9292 (2) issue three licenses to operate casinos to persons
9393 who are licensed to conduct pari-mutuel wagering at a class 1
9494 racetrack as defined by Subtitle A-1, Title 13, Occupations Code
9595 (Texas Racing Act), at the location licensed for conducting
9696 pari-mutuel wagering on horse races and who comply with
9797 requirements of this section and related state laws and commission
9898 rules;
9999 (3) issue four licenses to operate casinos at
100100 casino-anchored destination attraction development projects in
101101 counties with a population greater than 1.5 million to persons who
102102 comply with requirements of this section and related state laws and
103103 commission rules;
104104 (4) issue three licenses to operate casinos at
105105 casino-anchored destination attraction development projects
106106 located on islands in the Gulf of Mexico to persons who comply with
107107 requirements of this section and related state laws and commission
108108 rules; and
109109 (5) allow an Indian tribe recognized by the United
110110 States government under federal law to operate on the tribe's land
111111 held in trust by the United States on January 1, 1998, casino gaming
112112 or slot gaming in accordance with:
113113 (A) federal law; and
114114 (B) either:
115115 (i) an effective gaming agreement that
116116 includes a provision requiring the Indian tribe to remit to this
117117 state a portion of the tribe's casino gaming or slot gaming revenue
118118 in an amount equal to the rate provided in the agreement; or
119119 (ii) general state law that includes a
120120 provision requiring the Indian tribe to remit to this state a
121121 portion of the tribe's casino gaming or slot gaming revenue in an
122122 amount equal to the rate provided by the general law.
123123 (g) In determining whether or, for multiple applicants
124124 competing for a limited number of casino owner's licenses or slot
125125 establishment owner's licenses within a geographic area, to whom to
126126 grant a license, the Texas Gaming Commission shall consider:
127127 (1) the prospective revenue to be collected by this
128128 state from the conduct of casino gaming at a casino or of slot
129129 gaming at a slot establishment and the impact to this state's
130130 economy of each competing applicant's proposed gaming and
131131 associated facilities;
132132 (2) the number of state residents estimated to be
133133 employed at an applicant's proposed casino or slot establishment
134134 and any proposed associated hotel and nongaming businesses and the
135135 applicant's good faith plan to recruit, train, and promote a
136136 workforce reflecting the diverse population of this state in all
137137 employment classifications;
138138 (3) the extent to which an applicant's proposed casino
139139 or slot establishment and any proposed associated hotel and
140140 nongaming businesses could reasonably encourage interstate tourism
141141 to this state;
142142 (4) the extent to which the scope, design, location,
143143 and construction of the applicant's casino or slot establishment
144144 and any associated hotel and nongaming businesses could reasonably
145145 contribute to the development of a first-class gaming industry in
146146 this state;
147147 (5) the applicant's experience in conducting licensed
148148 gaming operations and the applicant's financial ability to promptly
149149 construct and adequately maintain a casino or slot establishment,
150150 including the experience of partners of the applicant, of
151151 affiliated companies of the applicant or its partners, of key
152152 personnel of the applicant or its partners, and of operating
153153 companies under contract with the applicant; and
154154 (6) the percentage of equity interest in the applicant
155155 owned or to be owned by residents of this state.
156156 (h) To ensure that a requisite level of economic development
157157 benefiting the people of this state accompanies each casino for
158158 which an owner's license is granted, the Texas Gaming Commission
159159 shall require an applicant for a license described by Subsection
160160 (f)(3) or (4) of this section, as a condition of receiving and
161161 holding an owner's license, to enter into an agreement with this
162162 state guaranteeing the applicant will construct a casino-anchored
163163 destination attraction development project that includes total
164164 land and development costs of at least:
165165 (1) $1 billion for a project described by Subsection
166166 (f)(3) of this section; or
167167 (2) $250 million for a project described in Subsection
168168 (f)(4) of this section.
169169 (i) Notwithstanding Subsection (f) of this section:
170170 (1) a license under Subsection (f)(1), (2), (3), or
171171 (4) of this section may not be issued in a county unless:
172172 (A) a majority of the voters of the county voted
173173 for the proposition that added this section to this constitution;
174174 or
175175 (B) the voters of the county approved a
176176 proposition legalizing casino gaming at a local option election
177177 held under this section;
178178 (2) not more than two casinos or slot establishments
179179 may be located in the same county;
180180 (3) a license under Subsection (f)(1) of this section
181181 may not be issued to an applicant that did not conduct pari-mutuel
182182 wagering at the location before January 1, 2019;
183183 (4) a casino license may not be issued for a location
184184 in an area in which casino gaming or slot gaming is prohibited under
185185 a gaming agreement negotiated between an Indian tribe and this
186186 state; and
187187 (5) a casino license may not be issued for a location
188188 within five miles of property the General Land Office is required by
189189 statute to preserve and protect.
190190 (j) The Texas casino and slot gaming fund is a special fund
191191 in the state treasury. All application fees, investigation fees,
192192 and license fees collected by the Texas Gaming Commission or on the
193193 commission's behalf related to casino gaming or slot gaming shall
194194 be deposited to the credit of the Texas casino and slot gaming fund.
195195 Except as provided by this section, the Texas casino and slot gaming
196196 fund may only be used for the operation of the commission and the
197197 administration of this section. If money in the fund exceeds the
198198 amount necessary for the operation of the commission and the
199199 administration of this section, the legislature shall transfer any
200200 excess amount to the foundation school fund.
201201 (k) An applicant applying for a license under Subsection (f)
202202 of this section shall submit to the Texas Gaming Commission an
203203 application fee in the amount of:
204204 (1) $15 million for a license to operate a slot
205205 establishment under Subsection (f)(1) of this section;
206206 (2) $25 million for a license to operate a casino under
207207 Subsection (f)(1) or (4) of this section; and
208208 (3) $50 million for a license to operate a casino under
209209 Subsection (f)(2) or (3) of this section.
210210 (k-1) If an applicant for a license to operate a casino or
211211 slot establishment submits an application and fee to the Texas
212212 Gaming Commission and is not awarded the license, the commission
213213 shall refund the fee less the costs incurred by the commission in
214214 reviewing the application and conducting a criminal background
215215 investigation on the applicant.
216216 (l) A slot gaming tax in an amount equal to 35 percent of a
217217 slot establishment owner's gross slot income for the slot
218218 establishment operated under the owner's license is imposed on the
219219 owner. The tax shall be computed and paid on a monthly basis in
220220 accordance with the procedures established by rule of the Texas
221221 Gaming Commission.
222222 (m) Except as provided by Subsection (n) of this section, a
223223 casino gaming tax in an amount equal to 20 percent of a casino
224224 owner's gross gaming revenue for the casino operated under the
225225 owner's license is imposed on the owner. The tax shall be computed
226226 and paid on a monthly basis in accordance with the procedures
227227 established by rule of the Texas Gaming Commission.
228228 (n) The casino gaming tax imposed under Subsection (m) of
229229 this section is reduced to an amount equal to 15 percent of a casino
230230 owner's gross gaming revenue for the casino operated under the
231231 owner's license if the Texas Gaming Commission determines the owner
232232 has invested $1 billion or more in the owner's casino facility.
233233 (o) Of the revenue from the taxes imposed by Subsections (l)
234234 and (m) of this section:
235235 (1) one-twentieth is allocated to the municipality in
236236 which the casino or slot establishment is located and one-twentieth
237237 is allocated to the county in which the casino or slot establishment
238238 is located; or
239239 (2) if the casino or slot establishment is located in
240240 an unincorporated area, one-tenth is allocated to the county in
241241 which the casino or slot establishment is located.
242242 (p) The comptroller of public accounts shall transfer the
243243 appropriate amount allocated under Subsection (o) of this section
244244 to the appropriate municipalities and counties not less than
245245 monthly in the manner the comptroller considers appropriate.
246246 (q) Except as otherwise provided by this section, the
247247 revenue from the taxes imposed by Subsections (l) and (m) of this
248248 section is allocated as follows:
249249 (1) one-fortieth to the general revenue fund for
250250 appropriation only to fund a compulsive gambling program
251251 established by the Texas Gaming Commission;
252252 (2) one-fortieth to the general revenue fund for
253253 appropriation only to the Texas Gaming Commission to provide grants
254254 to prosecuting attorneys in this state for the investigation and
255255 prosecution of offenses related to the possession of gambling
256256 devices and illegal gambling operations; and
257257 (3) the remainder to the foundation school fund.
258258 (r) The comptroller of public accounts quarterly shall
259259 determine the net amount of receipts to be collected by a casino or
260260 slot establishment from the sales and use taxes, hotel occupancy
261261 taxes, alcoholic beverage taxes, and franchise taxes imposed under
262262 general law, or from other taxes imposed under general law as
263263 provided by the legislature in general law, and shall deposit that
264264 amount in the general revenue fund. The net amount deposited may
265265 only be appropriated to fund the TEXAS grant program established
266266 under Subchapter M, Chapter 56, Education Code, or a similar
267267 program established by the legislature to provide grants to higher
268268 education students in this state.
269269 (s) A casino or slot establishment located at a greyhound
270270 racetrack shall transfer 12 percent of gross gaming revenue to a
271271 Texas canine development fund established and administered by the
272272 racetrack.
273273 (t) A casino or slot establishment located at a horse
274274 racetrack shall provide at least $1 million, or the minimum
275275 coverage amount required by the Texas Racing Commission, in
276276 accident insurance coverage for jockeys participating in a race
277277 meeting at the racetrack. The commission:
278278 (1) may review and approve the adequacy of the
279279 coverage;
280280 (2) shall annually adjust for inflation the minimum
281281 coverage amount; and
282282 (3) shall annually publish in the Texas Register the
283283 revised minimum coverage amount.
284284 (u) A person that operates a casino or slot establishment at
285285 a racetrack shall make at least weekly payments to the racing
286286 facilities capital improvement account in an amount equal to
287287 one-half of one percent of the gross gaming revenue unless a racing
288288 facilities agreement providing for a different amount is filed with
289289 the Texas Racing Commission.
290290 (v) The racing facilities capital improvement account is an
291291 escrow account held outside the state treasury and administered by
292292 the Texas Racing Commission. A transfer of money from the account
293293 requires:
294294 (1) for a horse racetrack, the signatures of:
295295 (A) a designated official of the horse racetrack;
296296 and
297297 (B) a designated representative appointed by a
298298 majority of the quarter horse state breed registry, the
299299 Thoroughbred state horse breed registry, and the horsemen's
300300 organization; or
301301 (2) for a greyhound racetrack, the signatures of:
302302 (A) a designated official of the greyhound
303303 racetrack; and
304304 (B) a designated representative of the Texas
305305 Greyhound Association or its successor.
306306 (w) The Texas Racing Commission shall adopt rules to
307307 administer this section. The rules must require the electronic
308308 transfer of funds to the accounts described in this section.
309309 (x) A person who operates a casino or slot establishment at
310310 a racetrack shall promptly and fully make each payment or transfer
311311 from the gross gaming revenue required under this section on behalf
312312 of the casino or slot establishment at the racetrack even if live
313313 racing at that racetrack is shortened, canceled, or delayed for any
314314 reason.
315315 (y) If a horse racetrack fails to request the minimum number
316316 of required live race dates or fails to offer the minimum number of
317317 required live races despite issuance of live race dates, does not
318318 receive a waiver of that violation from the Texas Racing Commission
319319 as provided by Subtitle A-1, Title 13, Occupations Code (Texas
320320 Racing Act), and does not have an agreement with the affected state
321321 horse breed registries and horsemen's organization, the applicable
322322 state horse breed registries and the horsemen's organization may,
323323 in their sole discretion, transfer all money to which they are
324324 entitled under this section from that racetrack to the respective
325325 accounts under their control at another racetrack or racetracks.
326326 (z) If a greyhound racetrack fails to request the minimum
327327 number of required live race dates or fails to offer the minimum
328328 number of required live races despite issuance of live race dates,
329329 does not receive a waiver of that violation from the Texas Racing
330330 Commission as provided by Subtitle A-1, Title 13, Occupations Code
331331 (Texas Racing Act), and does not have an agreement with the affected
332332 officially recognized greyhound breed registry, the Texas
333333 Greyhound Association or its successor may, in its sole discretion,
334334 transfer all money to which the association is entitled under this
335335 section from that racetrack to the account under its control at
336336 another racetrack or racetracks.
337337 (aa) The amount equal to 0.025 percent of the gross gaming
338338 revenue generated at a horse racetrack shall be transferred from
339339 the Texas equine development fund for that racetrack to the equine
340340 research account of Texas A&M AgriLife Research or its successor
341341 for use in equine research, including facilities development under
342342 Subchapter F, Chapter 88, Education Code. The money transferred
343343 under this subsection shall supplement, and may not replace,
344344 funding provided under Subtitle A-1, Title 13, Occupations Code
345345 (Texas Racing Act).
346346 (bb) Each person that operates a casino or slot
347347 establishment at a racetrack shall, at least weekly, transfer to
348348 the racing facilities capital improvement account from the
349349 racetrack's Texas equine development fund or Texas canine
350350 development fund, as applicable, an amount equal to one-half of one
351351 percent of the net gaming income unless a racing facilities
352352 agreement providing for a different amount is filed with the Texas
353353 Racing Commission.
354354 (cc) Unless an agreement between the state horse breed
355355 registries and the horsemen's organization provides otherwise, and
356356 after any other allocations required by this section, the remainder
357357 of the money deposited in the Texas equine development fund at a
358358 horse racetrack must:
359359 (1) be used for purses and the Texas-bred incentive
360360 programs and may be used for other programs considered beneficial
361361 to the equine industry, including:
362362 (A) equine retirement, adoption, and retraining
363363 programs;
364364 (B) programs to test for banned
365365 performance-enhancing equine drugs, performance-enhancing drug
366366 testing research, and equipment and facilities of laboratories
367367 providing those services in this state; and
368368 (C) other programs to improve the working
369369 environment in stable areas of racetracks; and
370370 (2) be allocated as follows:
371371 (A) the amount equal to 4.43 percent of the gross
372372 gaming revenue to the horsemen's organization to supplement
373373 Thoroughbred racing purses;
374374 (B) the amount equal to 2.385 percent of the
375375 gross gaming revenue to the horsemen's organization to supplement
376376 quarter horse racing purses;
377377 (C) the amount equal to 2.38 percent of the gross
378378 gaming revenue to the Thoroughbred state horse breed registry; and
379379 (D) the amount equal to 1.28 percent of the gross
380380 gaming revenue to the quarter horse state horse breed registry.
381381 (dd) From the money allocated under Subsection (cc)(2)(A)
382382 of this section, pursuant to an agreement between the Texas Arabian
383383 Breeders Association or its successor and the horsemen's
384384 organization, the horsemen's organization shall allocate a portion
385385 of the money for purses for the Arabian horse racing industry. The
386386 agreement must provide that not less than the amount equal to 0.199
387387 percent of the gross gaming revenue be allocated for Arabian horse
388388 racing purses. If an agreement is not made, the horsemen's
389389 organization shall transfer to the Texas Arabian horse racing
390390 industry the amount equal to 0.199 percent of the gross gaming
391391 revenue for Arabian horse racing purses.
392392 (ee) From the money allocated under Subsection (cc)(2)(B)
393393 of this section, pursuant to an agreement between the Texas Paint
394394 Horse Breeders' Association or its successor and the horsemen's
395395 organization, the horsemen's organization shall allocate a portion
396396 of the money for purses for the paint horse racing industry. If the
397397 agreement is not made, the horsemen's organization shall transfer
398398 to the paint horse racing industry an amount equal to 0.072 percent
399399 of the gross gaming revenue for paint horse racing purses.
400400 (ff) From the money allocated under Subsection (cc)(2)(C)
401401 of this section, pursuant to an agreement between the Texas Arabian
402402 Breeders Association or its successor and the Thoroughbred state
403403 horse breed registry, the registry shall allocate a portion of the
404404 money for the Arabian horse racing industry state-breed programs.
405405 The agreement must provide that not less than the amount equal to
406406 0.107 percent of the gross gaming revenue be allocated for Arabian
407407 state-breed programs. If an agreement is not made, the
408408 Thoroughbred state horse breed registry shall transfer to the Texas
409409 Arabian horse racing industry for state-breed programs the amount
410410 equal to 0.107 percent of the gross gaming revenue.
411411 (gg) From the money allocated under Subsection (cc)(2)(D)
412412 of this section, pursuant to an agreement between the Texas Paint
413413 Horse Breeders' Association or its successor and the quarter horse
414414 state horse breed registry, the registry shall allocate a portion
415415 of the money for state-breed programs for the paint horse racing
416416 industry. If an agreement is not made, the registry shall transfer
417417 to the paint horse racing industry an amount equal to 0.038 percent
418418 of the gross gaming revenue for paint horse state-breed programs.
419419 (hh) Following the other transfers and allocations required
420420 by this section, the remainder of the money deposited in the Texas
421421 canine development fund at a greyhound racetrack is allocated as
422422 follows:
423423 (1) the amount equal to 4.75 percent of the gross
424424 gaming revenue to supplement greyhound racing purses;
425425 (2) the amount equal to 4.75 percent of the gross
426426 gaming revenue to supplement accredited Texas-bred greyhound
427427 racing purses; and
428428 (3) the amount equal to two percent of the gross gaming
429429 revenue to the Texas Greyhound Association or its successor as the
430430 state greyhound breed registry.
431431 (ii) The Texas Racing Commission may adopt rules to
432432 administer this section and shall require the electronic transfer
433433 of funds to accounts described in this section.
434434 (jj) For purposes of this section, a racing facilities
435435 agreement for a horse racetrack is valid only on approval of the
436436 applicable racetrack and a majority of the quarter horse state
437437 horse breed registry, the Thoroughbred state horse breed registry,
438438 and the horsemen's organization.
439439 (kk) For purposes of this section, a racing facilities
440440 agreement for a greyhound racetrack is valid only on approval of the
441441 racetrack and the Texas Greyhound Association or its successor.
442442 (ll) A racing facilities agreement filed under this section
443443 remains in effect until it expires on its own terms or until it is
444444 superseded by a subsequent racing facilities agreement for the same
445445 racetrack.
446446 (mm) Unless a racing facilities agreement provides
447447 otherwise, the money in the racing facilities capital improvement
448448 account may be spent only for the maintenance and improvement of
449449 pari-mutuel racing facilities.
450450 (nn) Money in the performance horse development fund may be
451451 spent only for:
452452 (1) the development of the horse agricultural industry
453453 in this state through efforts intended to attract, retain, promote,
454454 and encourage the breeding, raising, training, and exhibition of
455455 horses in this state that are bred or trained for public competition
456456 and exhibition or recreational use in all legally permitted equine
457457 activities other than horse racing at racetracks; and
458458 (2) events and programs conducted in this state.
459459 (oo) Money from the performance horse development fund is
460460 allocated as follows:
461461 (1) 40 percent to the American Quarter Horse
462462 Association or its successor for its sanctioned events and
463463 programs;
464464 (2) 20 percent to the National Cutting Horse
465465 Association or its successor for its sanctioned events and
466466 programs;
467467 (3) 20 percent to the American Paint Horse Association
468468 or its successor for its sanctioned events and programs; and
469469 (4) 20 percent to the Department of Agriculture or its
470470 successor to promote the equine agricultural industry in this
471471 state.
472472 (pp) Subject to Subsection (qq) of this section, money
473473 transferred to an association or agency from the performance horse
474474 development fund may be used for:
475475 (1) purse supplements or additional money for
476476 performance and recreational horse events conducted in this state;
477477 (2) the establishment of an accredited Texas Bred
478478 Program for breeding of performance and recreational horses;
479479 (3) the marketing and promotion of performance and
480480 recreational horse activities and events in this state; and
481481 (4) scholarship programs.
482482 (qq) Money may be transferred under Subsection (oo)(4) of
483483 this section only to organizations of the equine industry in this
484484 state that are not receiving money for events and programs under
485485 Subsection (oo)(1), (2), or (3) of this section.
486486 (rr) Except as otherwise provided by law, all money paid to
487487 the Department of Agriculture or its successor is subject to
488488 Subchapter F, Chapter 404, Government Code.
489489 (ss) Casinos and slot establishments are subject to all
490490 applicable state laws and local ordinances related to health and
491491 building codes, including rules adopted by the Texas Gaming
492492 Commission. A local ordinance or zoning law may not prohibit the
493493 development of a casino or slot establishment authorized by this
494494 section, except that a casino or slot establishment may not be
495495 located in an area zoned exclusively as residential, unless
496496 otherwise provided by commission rule.
497497 (tt) The commissioners court of a county may at any time
498498 order an election to legalize casino gaming under this section in
499499 that county. The commissioners court shall order and hold an
500500 election to legalize casino gaming under this section in the county
501501 if the commissioners court is presented with a petition that meets
502502 the requirements of this section and is certified as valid under
503503 this section.
504504 (uu) A petition for a legalization election must include a
505505 statement substantially as follows before the space reserved for
506506 signatures on each page: "This petition is to require that an
507507 election be held in (name of county) to legalize casino gaming in
508508 (name of county)." A petition is valid only if it is signed by a
509509 number of registered voters of the county equal to at least three
510510 percent of the total number of votes cast for governor by qualified
511511 voters of the county in the most recent gubernatorial general
512512 election. Each voter must enter beside the voter's signature the
513513 date the voter signs the petition. A signature may not be counted
514514 as valid if the date of signing is earlier than the 90th day before
515515 the date the petition is submitted to the commissioners court. Each
516516 voter must provide on the petition the voter's current voter
517517 registration number, printed name, and residence address,
518518 including zip code.
519519 (vv) Not later than the fifth day after the date a petition
520520 for an election under this section is received in the office of the
521521 commissioners court, the commissioners court shall submit the
522522 petition for verification to the county clerk. The county clerk
523523 shall determine whether the petition is signed by the number of
524524 registered voters of the county required under Subsection (uu) of
525525 this section. Not later than the 30th day after the date the
526526 petition is submitted to the county clerk for verification, the
527527 clerk shall certify in writing to the commissioners court whether
528528 the petition is valid or invalid. If the county clerk determines
529529 the petition is invalid, the clerk shall state the reasons for that
530530 determination.
531531 (ww) If the county clerk certifies that a petition for an
532532 election under this section is valid, not later than the 30th day
533533 after the date of certification, the commissioners court shall
534534 order that an election be held in the county on the next uniform
535535 election date provided under general law that allows sufficient
536536 time to comply with applicable provisions of general law. The
537537 commissioners court shall state in the order the issue to be
538538 presented to the voters. The county clerk shall notify the Texas
539539 Gaming Commission by certified mail, return receipt requested, that
540540 an election has been ordered. The ballot in a legalization election
541541 shall be printed to provide for voting for or against the
542542 proposition: "Legalizing casino gaming within (name of county)."
543543 (xx) The commissioners court shall provide written notice
544544 of the results of the election to the Texas Gaming Commission not
545545 later than the third day after the date the election is canvassed.
546546 If the majority of votes cast in a legalization election under this
547547 section favor the legalization of casino gaming, casino gaming
548548 authorized under this section is permitted within the county
549549 holding the election effective on the 10th day after the date the
550550 election is canvassed. If less than a majority of the votes cast in
551551 the election favor the legalization of casino gaming, casino gaming
552552 is not permitted in the county, and a subsequent election on the
553553 issue may not be held in the county before the corresponding uniform
554554 election date following the first anniversary of the election date.
555555 If in each of two consecutive elections within any county less than
556556 a majority of the votes cast favor the legalization of casino
557557 gaming, casino gaming is not permitted in the county, and a
558558 subsequent election on the issue may not be held in the county
559559 before the corresponding uniform election date following the fifth
560560 anniversary of the date of the second election.
561561 (yy) It is a defense to prosecution for a gambling offense
562562 under general law that the action was authorized under this
563563 section, Section 47b of this article, or Texas Gaming Commission
564564 rule.
565565 (zz) All shipments of slot machines or gaming devices into,
566566 out of, or within this state authorized under this section, Section
567567 47b of this article, or a rule adopted by the Texas Gaming
568568 Commission are legal shipments of the devices and are exempt from
569569 the provisions of 15 U.S.C. Sections 1171-1178, prohibiting the
570570 transportation of gambling devices.
571571 (aaa) Each state agency, including the attorney general and
572572 the comptroller of public accounts, and each state or local law
573573 enforcement agency shall cooperate with the Texas Gaming Commission
574574 as necessary to implement this section.
575575 (bbb) The legislature by general law may impose additional
576576 restrictions or requirements for the conduct of casino gaming and
577577 slot gaming.
578578 (ccc) Unless specifically authorized by general law, a
579579 political subdivision of this state may not impose:
580580 (1) a tax on the payment of a casino or slot prize;
581581 (2) a tax, fee, or other assessment on consideration
582582 paid to play a casino or slot game authorized by this section; or
583583 (3) a tax or fee on attendance at or admission to a
584584 casino or slot establishment authorized by this section.
585585 (ddd) In this section, unless modified by general law:
586586 (1) "Casino" means a facility at which casino gaming
587587 is conducted by a licensed casino owner as authorized by this
588588 section.
589589 (2) "Casino gaming" means any game of chance or
590590 similar activity that involves the making of a bet for
591591 consideration. The term includes any type of slot machine or table
592592 game wagering using money, casino credit, or any representation of
593593 value. The term does not include bingo, charitable raffles, or the
594594 state lottery authorized under Section 47 of this article.
595595 (3) "Casino owner" means a person, trust, corporation,
596596 partnership, limited partnership, association, limited liability
597597 company, or other business enterprise that directly holds an
598598 ownership or leasehold interest in a casino licensed as provided by
599599 this section.
600600 (4) "Gross gaming revenue" means the total amount of
601601 consideration paid to engage in casino gaming less winnings paid to
602602 players of the casino games.
603603 (5) "Gross slot income" means the total amount of
604604 consideration paid to play slot machines less winnings paid to
605605 players of the slot machines.
606606 (6) "Performance and recreational horses" means
607607 horses bred or trained for public competition and exhibition or
608608 recreational use in all legally permitted equine activities other
609609 than horse racing at racetracks.
610610 (7) "Slot establishment" means a facility at which
611611 slot gaming is conducted by a licensed slot establishment owner as
612612 authorized by this section.
613613 (8) "Slot establishment owner" means a person, trust,
614614 corporation, partnership, limited partnership, association,
615615 limited liability company, or other business enterprise that
616616 directly holds an ownership or leasehold interest in a slot
617617 establishment.
618618 (9) "Slot gaming" means any game of chance played on a
619619 slot machine on payment of consideration. The term does not include
620620 bingo, charitable raffles, or the state lottery authorized under
621621 Section 47 of this article.
622622 (10) "Slot machine" means a mechanical, electrical, or
623623 other device or machine that, on insertion of a coin, token, or
624624 similar object or on payment of consideration, is available to play
625625 or operate a game, the play or operation of which, wholly or partly
626626 by the element of chance, may deliver or entitle the person playing
627627 or operating the device or machine to receive cash, premiums,
628628 merchandise, tokens, or any other thing of value, whether the
629629 payoff is made automatically from the device or machine or is made
630630 in another manner.
631631 SECTION 3. Article III, Texas Constitution, is amended by
632632 adding Section 47b to read as follows:
633633 Sec. 47b. (a) Any federally recognized Indian tribe that
634634 had a reservation in this state on or before January 1, 1998, may,
635635 without application of state-imposed time, place, and manner
636636 restrictions, conduct on its reservation class II gaming regulated
637637 by the National Indian Gaming Commission consistent with that
638638 commission's regulation of gaming conducted by Indian tribes in
639639 other states, and any other gaming activity that may be conducted by
640640 any other individual, organization, group, or entity in this state.
641641 (b) In this section, class II gaming has the same meaning as
642642 in Section 4(7), Indian Gaming Regulatory Act (25 U.S.C. Section
643643 2703(7)).
644644 SECTION 4. The following temporary provision is added to
645645 the Texas Constitution:
646646 TEMPORARY PROVISION. (a) This temporary provision applies
647647 to the constitutional amendment proposed by the 86th Legislature,
648648 Regular Session, 2019, creating the Texas Gaming Commission and
649649 authorizing and regulating the operation of casino games and slot
650650 machines by licensed owners and certain Indian tribes to provide
651651 money for the foundation school fund and additional financial aid
652652 for higher education students.
653653 (b) Not later than January 1, 2020, the governor shall
654654 appoint the initial members of the Texas Gaming Commission in
655655 accordance with Section 47a, Article III, of this constitution. In
656656 making the initial appointments, the governor shall designate one
657657 member to a term expiring February 1, 2021, two members to terms
658658 expiring February 1, 2023, and two members to terms expiring
659659 February 1, 2025.
660660 (c) Not later than March 1, 2020, the Texas Gaming
661661 Commission shall adopt the rules, including any emergency rules,
662662 necessary to implement Section 47a, Article III, of this
663663 constitution.
664664 (d) This temporary provision expires January 1, 2021.
665665 SECTION 5. This proposed constitutional amendment shall be
666666 submitted to the voters at an election to be held November 5, 2019.
667667 The ballot shall be printed to permit voting for or against the
668668 proposition: "The constitutional amendment creating the Texas
669669 Gaming Commission and authorizing and regulating the operation of
670670 casino games and slot machines by a limited number of licensed
671671 owners and certain Indian tribes to provide money for the
672672 foundation school fund and additional financial aid for higher
673673 education students."