1 | 1 | | 86R11256 ADM-F |
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2 | 2 | | By: Menéndez S.J.R. No. 41 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A JOINT RESOLUTION |
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6 | 6 | | proposing a constitutional amendment creating the Texas Gaming |
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7 | 7 | | Commission and authorizing and regulating the operation of casino |
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8 | 8 | | games and slot machines by a limited number of licensed owners and |
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9 | 9 | | certain Indian tribes to provide money for the foundation school |
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10 | 10 | | fund and additional financial aid for higher education students; |
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11 | 11 | | authorizing fees; imposing a tax. |
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12 | 12 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Section 47(a), Article III, Texas Constitution, |
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14 | 14 | | is amended to read as follows: |
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15 | 15 | | (a) The Legislature shall pass laws prohibiting lotteries |
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16 | 16 | | and gift enterprises in this State other than those authorized by |
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17 | 17 | | Subsections (b), (d), (d-1), and (e) of this section and Sections |
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18 | 18 | | 47a and 47b of this article. |
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19 | 19 | | SECTION 2. Article III, Texas Constitution, is amended by |
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20 | 20 | | adding Section 47a to read as follows: |
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21 | 21 | | Sec. 47a. (a) Casino gaming and slot gaming are authorized |
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22 | 22 | | in this state in accordance with this section to provide additional |
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23 | 23 | | money for the foundation school fund and additional financial aid |
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24 | 24 | | for higher education students. |
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25 | 25 | | (b) The Texas Gaming Commission is established. The |
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26 | 26 | | commission is composed of five members appointed by the governor |
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27 | 27 | | with the advice and consent of the senate. Commission members serve |
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28 | 28 | | staggered six-year terms, with one or two members' terms, as |
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29 | 29 | | applicable, expiring February 1 of each odd-numbered year. The |
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30 | 30 | | governor shall fill a vacancy in a position on the commission for |
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31 | 31 | | the remainder of the unexpired term. The governor shall designate a |
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32 | 32 | | commission member as presiding officer of the commission to serve |
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33 | 33 | | in that capacity at the pleasure of the governor. |
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34 | 34 | | (c) To be eligible for appointment to the commission, a |
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35 | 35 | | person: |
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36 | 36 | | (1) must be a citizen of the United States; |
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37 | 37 | | (2) must have resided in this state for the two years |
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38 | 38 | | preceding the date of the person's appointment; |
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39 | 39 | | (3) may not: |
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40 | 40 | | (A) own a financial or other interest in an |
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41 | 41 | | entity engaged in the conduct of casino gaming or slot gaming or |
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42 | 42 | | engaged in the provision of casino or slot services, or an interest |
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43 | 43 | | in a security issued by such an entity; or |
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44 | 44 | | (B) be related within the second degree by |
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45 | 45 | | affinity or the third degree by consanguinity as determined by |
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46 | 46 | | general law to an individual who owns an interest described in |
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47 | 47 | | Paragraph (A) of this subdivision; |
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48 | 48 | | (4) may not be an applicant for or holder of a license |
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49 | 49 | | or other affirmative regulatory approval under a law administered |
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50 | 50 | | by the commission; and |
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51 | 51 | | (5) may not be a member of the governing body of a |
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52 | 52 | | political subdivision of this state. |
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53 | 53 | | (d) The Texas Gaming Commission has broad authority and |
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54 | 54 | | shall exercise strict control and close supervision over all |
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55 | 55 | | activities related to casino gaming and slot gaming authorized and |
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56 | 56 | | conducted in this state under this section or another law |
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57 | 57 | | administered by the commission. |
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58 | 58 | | (e) The Texas Gaming Commission shall appoint an executive |
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59 | 59 | | director and other necessary personnel and shall adopt rules the |
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60 | 60 | | commission considers necessary or desirable for the public interest |
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61 | 61 | | in carrying out the policy and provisions of this section and the |
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62 | 62 | | other laws related to this section that are administered by the |
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63 | 63 | | commission, including rules on: |
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64 | 64 | | (1) licensing and regulating casino owners, slot |
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65 | 65 | | establishment owners, gaming managers, gaming employees, and |
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66 | 66 | | manufacturers and distributors of gaming equipment, including the |
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67 | 67 | | qualifications, definitions, terms, and fees for licenses; |
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68 | 68 | | (2) criteria for awarding, denying, revoking, |
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69 | 69 | | probating, and suspending licenses; |
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70 | 70 | | (3) exclusion of persons and age requirements; |
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71 | 71 | | (4) procedures for conducting investigations, |
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72 | 72 | | inspections, criminal background investigations, audits, complaint |
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73 | 73 | | investigations, and disciplinary hearings; |
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74 | 74 | | (5) reporting and internal control requirements for |
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75 | 75 | | license holders; |
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76 | 76 | | (6) consequences of criminal convictions of license |
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77 | 77 | | holders or applicants; |
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78 | 78 | | (7) enforcement provisions, including disciplinary |
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79 | 79 | | actions and penalties, and security requirements; |
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80 | 80 | | (8) prize payment and redemption; |
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81 | 81 | | (9) regulating the operations of casinos and slot |
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82 | 82 | | establishments; and |
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83 | 83 | | (10) standards for gaming equipment. |
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84 | 84 | | (f) The Texas Gaming Commission shall: |
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85 | 85 | | (1) issue four licenses to operate casinos or slot |
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86 | 86 | | establishments to persons who are licensed to conduct pari-mutuel |
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87 | 87 | | wagering on horse or greyhound races in the county in which the |
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88 | 88 | | applicants held a license to conduct pari-mutuel wagering on horse |
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89 | 89 | | or greyhound races as of January 1, 2019, and who comply with |
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90 | 90 | | requirements of this section and related state laws and commission |
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91 | 91 | | rules; |
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92 | 92 | | (2) issue three licenses to operate casinos to persons |
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93 | 93 | | who are licensed to conduct pari-mutuel wagering at a class 1 |
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94 | 94 | | racetrack as defined by Subtitle A-1, Title 13, Occupations Code |
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95 | 95 | | (Texas Racing Act), at the location licensed for conducting |
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96 | 96 | | pari-mutuel wagering on horse races and who comply with |
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97 | 97 | | requirements of this section and related state laws and commission |
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98 | 98 | | rules; |
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99 | 99 | | (3) issue four licenses to operate casinos at |
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100 | 100 | | casino-anchored destination attraction development projects in |
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101 | 101 | | counties with a population greater than 1.5 million to persons who |
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102 | 102 | | comply with requirements of this section and related state laws and |
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103 | 103 | | commission rules; |
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104 | 104 | | (4) issue three licenses to operate casinos at |
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105 | 105 | | casino-anchored destination attraction development projects |
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106 | 106 | | located on islands in the Gulf of Mexico to persons who comply with |
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107 | 107 | | requirements of this section and related state laws and commission |
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108 | 108 | | rules; and |
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109 | 109 | | (5) allow an Indian tribe recognized by the United |
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110 | 110 | | States government under federal law to operate on the tribe's land |
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111 | 111 | | held in trust by the United States on January 1, 1998, casino gaming |
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112 | 112 | | or slot gaming in accordance with: |
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113 | 113 | | (A) federal law; and |
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114 | 114 | | (B) either: |
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115 | 115 | | (i) an effective gaming agreement that |
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116 | 116 | | includes a provision requiring the Indian tribe to remit to this |
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117 | 117 | | state a portion of the tribe's casino gaming or slot gaming revenue |
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118 | 118 | | in an amount equal to the rate provided in the agreement; or |
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119 | 119 | | (ii) general state law that includes a |
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120 | 120 | | provision requiring the Indian tribe to remit to this state a |
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121 | 121 | | portion of the tribe's casino gaming or slot gaming revenue in an |
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122 | 122 | | amount equal to the rate provided by the general law. |
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123 | 123 | | (g) In determining whether or, for multiple applicants |
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124 | 124 | | competing for a limited number of casino owner's licenses or slot |
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125 | 125 | | establishment owner's licenses within a geographic area, to whom to |
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126 | 126 | | grant a license, the Texas Gaming Commission shall consider: |
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127 | 127 | | (1) the prospective revenue to be collected by this |
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128 | 128 | | state from the conduct of casino gaming at a casino or of slot |
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129 | 129 | | gaming at a slot establishment and the impact to this state's |
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130 | 130 | | economy of each competing applicant's proposed gaming and |
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131 | 131 | | associated facilities; |
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132 | 132 | | (2) the number of state residents estimated to be |
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133 | 133 | | employed at an applicant's proposed casino or slot establishment |
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134 | 134 | | and any proposed associated hotel and nongaming businesses and the |
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135 | 135 | | applicant's good faith plan to recruit, train, and promote a |
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136 | 136 | | workforce reflecting the diverse population of this state in all |
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137 | 137 | | employment classifications; |
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138 | 138 | | (3) the extent to which an applicant's proposed casino |
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139 | 139 | | or slot establishment and any proposed associated hotel and |
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140 | 140 | | nongaming businesses could reasonably encourage interstate tourism |
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141 | 141 | | to this state; |
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142 | 142 | | (4) the extent to which the scope, design, location, |
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143 | 143 | | and construction of the applicant's casino or slot establishment |
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144 | 144 | | and any associated hotel and nongaming businesses could reasonably |
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145 | 145 | | contribute to the development of a first-class gaming industry in |
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146 | 146 | | this state; |
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147 | 147 | | (5) the applicant's experience in conducting licensed |
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148 | 148 | | gaming operations and the applicant's financial ability to promptly |
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149 | 149 | | construct and adequately maintain a casino or slot establishment, |
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150 | 150 | | including the experience of partners of the applicant, of |
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151 | 151 | | affiliated companies of the applicant or its partners, of key |
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152 | 152 | | personnel of the applicant or its partners, and of operating |
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153 | 153 | | companies under contract with the applicant; and |
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154 | 154 | | (6) the percentage of equity interest in the applicant |
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155 | 155 | | owned or to be owned by residents of this state. |
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156 | 156 | | (h) To ensure that a requisite level of economic development |
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157 | 157 | | benefiting the people of this state accompanies each casino for |
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158 | 158 | | which an owner's license is granted, the Texas Gaming Commission |
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159 | 159 | | shall require an applicant for a license described by Subsection |
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160 | 160 | | (f)(3) or (4) of this section, as a condition of receiving and |
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161 | 161 | | holding an owner's license, to enter into an agreement with this |
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162 | 162 | | state guaranteeing the applicant will construct a casino-anchored |
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163 | 163 | | destination attraction development project that includes total |
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164 | 164 | | land and development costs of at least: |
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165 | 165 | | (1) $1 billion for a project described by Subsection |
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166 | 166 | | (f)(3) of this section; or |
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167 | 167 | | (2) $250 million for a project described in Subsection |
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168 | 168 | | (f)(4) of this section. |
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169 | 169 | | (i) Notwithstanding Subsection (f) of this section: |
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170 | 170 | | (1) a license under Subsection (f)(1), (2), (3), or |
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171 | 171 | | (4) of this section may not be issued in a county unless: |
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172 | 172 | | (A) a majority of the voters of the county voted |
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173 | 173 | | for the proposition that added this section to this constitution; |
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174 | 174 | | or |
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175 | 175 | | (B) the voters of the county approved a |
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176 | 176 | | proposition legalizing casino gaming at a local option election |
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177 | 177 | | held under this section; |
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178 | 178 | | (2) not more than two casinos or slot establishments |
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179 | 179 | | may be located in the same county; |
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180 | 180 | | (3) a license under Subsection (f)(1) of this section |
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181 | 181 | | may not be issued to an applicant that did not conduct pari-mutuel |
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182 | 182 | | wagering at the location before January 1, 2019; |
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183 | 183 | | (4) a casino license may not be issued for a location |
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184 | 184 | | in an area in which casino gaming or slot gaming is prohibited under |
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185 | 185 | | a gaming agreement negotiated between an Indian tribe and this |
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186 | 186 | | state; and |
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187 | 187 | | (5) a casino license may not be issued for a location |
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188 | 188 | | within five miles of property the General Land Office is required by |
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189 | 189 | | statute to preserve and protect. |
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190 | 190 | | (j) The Texas casino and slot gaming fund is a special fund |
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191 | 191 | | in the state treasury. All application fees, investigation fees, |
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192 | 192 | | and license fees collected by the Texas Gaming Commission or on the |
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193 | 193 | | commission's behalf related to casino gaming or slot gaming shall |
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194 | 194 | | be deposited to the credit of the Texas casino and slot gaming fund. |
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195 | 195 | | Except as provided by this section, the Texas casino and slot gaming |
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196 | 196 | | fund may only be used for the operation of the commission and the |
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197 | 197 | | administration of this section. If money in the fund exceeds the |
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198 | 198 | | amount necessary for the operation of the commission and the |
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199 | 199 | | administration of this section, the legislature shall transfer any |
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200 | 200 | | excess amount to the foundation school fund. |
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201 | 201 | | (k) An applicant applying for a license under Subsection (f) |
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202 | 202 | | of this section shall submit to the Texas Gaming Commission an |
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203 | 203 | | application fee in the amount of: |
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204 | 204 | | (1) $15 million for a license to operate a slot |
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205 | 205 | | establishment under Subsection (f)(1) of this section; |
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206 | 206 | | (2) $25 million for a license to operate a casino under |
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207 | 207 | | Subsection (f)(1) or (4) of this section; and |
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208 | 208 | | (3) $50 million for a license to operate a casino under |
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209 | 209 | | Subsection (f)(2) or (3) of this section. |
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210 | 210 | | (k-1) If an applicant for a license to operate a casino or |
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211 | 211 | | slot establishment submits an application and fee to the Texas |
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212 | 212 | | Gaming Commission and is not awarded the license, the commission |
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213 | 213 | | shall refund the fee less the costs incurred by the commission in |
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214 | 214 | | reviewing the application and conducting a criminal background |
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215 | 215 | | investigation on the applicant. |
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216 | 216 | | (l) A slot gaming tax in an amount equal to 35 percent of a |
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217 | 217 | | slot establishment owner's gross slot income for the slot |
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218 | 218 | | establishment operated under the owner's license is imposed on the |
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219 | 219 | | owner. The tax shall be computed and paid on a monthly basis in |
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220 | 220 | | accordance with the procedures established by rule of the Texas |
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221 | 221 | | Gaming Commission. |
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222 | 222 | | (m) Except as provided by Subsection (n) of this section, a |
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223 | 223 | | casino gaming tax in an amount equal to 20 percent of a casino |
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224 | 224 | | owner's gross gaming revenue for the casino operated under the |
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225 | 225 | | owner's license is imposed on the owner. The tax shall be computed |
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226 | 226 | | and paid on a monthly basis in accordance with the procedures |
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227 | 227 | | established by rule of the Texas Gaming Commission. |
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228 | 228 | | (n) The casino gaming tax imposed under Subsection (m) of |
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229 | 229 | | this section is reduced to an amount equal to 15 percent of a casino |
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230 | 230 | | owner's gross gaming revenue for the casino operated under the |
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231 | 231 | | owner's license if the Texas Gaming Commission determines the owner |
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232 | 232 | | has invested $1 billion or more in the owner's casino facility. |
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233 | 233 | | (o) Of the revenue from the taxes imposed by Subsections (l) |
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234 | 234 | | and (m) of this section: |
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235 | 235 | | (1) one-twentieth is allocated to the municipality in |
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236 | 236 | | which the casino or slot establishment is located and one-twentieth |
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237 | 237 | | is allocated to the county in which the casino or slot establishment |
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238 | 238 | | is located; or |
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239 | 239 | | (2) if the casino or slot establishment is located in |
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240 | 240 | | an unincorporated area, one-tenth is allocated to the county in |
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241 | 241 | | which the casino or slot establishment is located. |
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242 | 242 | | (p) The comptroller of public accounts shall transfer the |
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243 | 243 | | appropriate amount allocated under Subsection (o) of this section |
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244 | 244 | | to the appropriate municipalities and counties not less than |
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245 | 245 | | monthly in the manner the comptroller considers appropriate. |
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246 | 246 | | (q) Except as otherwise provided by this section, the |
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247 | 247 | | revenue from the taxes imposed by Subsections (l) and (m) of this |
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248 | 248 | | section is allocated as follows: |
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249 | 249 | | (1) one-fortieth to the general revenue fund for |
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250 | 250 | | appropriation only to fund a compulsive gambling program |
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251 | 251 | | established by the Texas Gaming Commission; |
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252 | 252 | | (2) one-fortieth to the general revenue fund for |
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253 | 253 | | appropriation only to the Texas Gaming Commission to provide grants |
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254 | 254 | | to prosecuting attorneys in this state for the investigation and |
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255 | 255 | | prosecution of offenses related to the possession of gambling |
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256 | 256 | | devices and illegal gambling operations; and |
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257 | 257 | | (3) the remainder to the foundation school fund. |
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258 | 258 | | (r) The comptroller of public accounts quarterly shall |
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259 | 259 | | determine the net amount of receipts to be collected by a casino or |
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260 | 260 | | slot establishment from the sales and use taxes, hotel occupancy |
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261 | 261 | | taxes, alcoholic beverage taxes, and franchise taxes imposed under |
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262 | 262 | | general law, or from other taxes imposed under general law as |
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263 | 263 | | provided by the legislature in general law, and shall deposit that |
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264 | 264 | | amount in the general revenue fund. The net amount deposited may |
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265 | 265 | | only be appropriated to fund the TEXAS grant program established |
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266 | 266 | | under Subchapter M, Chapter 56, Education Code, or a similar |
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267 | 267 | | program established by the legislature to provide grants to higher |
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268 | 268 | | education students in this state. |
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269 | 269 | | (s) A casino or slot establishment located at a greyhound |
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270 | 270 | | racetrack shall transfer 12 percent of gross gaming revenue to a |
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271 | 271 | | Texas canine development fund established and administered by the |
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272 | 272 | | racetrack. |
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273 | 273 | | (t) A casino or slot establishment located at a horse |
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274 | 274 | | racetrack shall provide at least $1 million, or the minimum |
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275 | 275 | | coverage amount required by the Texas Racing Commission, in |
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276 | 276 | | accident insurance coverage for jockeys participating in a race |
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277 | 277 | | meeting at the racetrack. The commission: |
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278 | 278 | | (1) may review and approve the adequacy of the |
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279 | 279 | | coverage; |
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280 | 280 | | (2) shall annually adjust for inflation the minimum |
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281 | 281 | | coverage amount; and |
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282 | 282 | | (3) shall annually publish in the Texas Register the |
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283 | 283 | | revised minimum coverage amount. |
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284 | 284 | | (u) A person that operates a casino or slot establishment at |
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285 | 285 | | a racetrack shall make at least weekly payments to the racing |
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286 | 286 | | facilities capital improvement account in an amount equal to |
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287 | 287 | | one-half of one percent of the gross gaming revenue unless a racing |
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288 | 288 | | facilities agreement providing for a different amount is filed with |
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289 | 289 | | the Texas Racing Commission. |
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290 | 290 | | (v) The racing facilities capital improvement account is an |
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291 | 291 | | escrow account held outside the state treasury and administered by |
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292 | 292 | | the Texas Racing Commission. A transfer of money from the account |
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293 | 293 | | requires: |
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294 | 294 | | (1) for a horse racetrack, the signatures of: |
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295 | 295 | | (A) a designated official of the horse racetrack; |
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296 | 296 | | and |
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297 | 297 | | (B) a designated representative appointed by a |
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298 | 298 | | majority of the quarter horse state breed registry, the |
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299 | 299 | | Thoroughbred state horse breed registry, and the horsemen's |
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300 | 300 | | organization; or |
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301 | 301 | | (2) for a greyhound racetrack, the signatures of: |
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302 | 302 | | (A) a designated official of the greyhound |
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303 | 303 | | racetrack; and |
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304 | 304 | | (B) a designated representative of the Texas |
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305 | 305 | | Greyhound Association or its successor. |
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306 | 306 | | (w) The Texas Racing Commission shall adopt rules to |
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307 | 307 | | administer this section. The rules must require the electronic |
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308 | 308 | | transfer of funds to the accounts described in this section. |
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309 | 309 | | (x) A person who operates a casino or slot establishment at |
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310 | 310 | | a racetrack shall promptly and fully make each payment or transfer |
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311 | 311 | | from the gross gaming revenue required under this section on behalf |
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312 | 312 | | of the casino or slot establishment at the racetrack even if live |
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313 | 313 | | racing at that racetrack is shortened, canceled, or delayed for any |
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314 | 314 | | reason. |
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315 | 315 | | (y) If a horse racetrack fails to request the minimum number |
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316 | 316 | | of required live race dates or fails to offer the minimum number of |
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317 | 317 | | required live races despite issuance of live race dates, does not |
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318 | 318 | | receive a waiver of that violation from the Texas Racing Commission |
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319 | 319 | | as provided by Subtitle A-1, Title 13, Occupations Code (Texas |
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320 | 320 | | Racing Act), and does not have an agreement with the affected state |
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321 | 321 | | horse breed registries and horsemen's organization, the applicable |
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322 | 322 | | state horse breed registries and the horsemen's organization may, |
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323 | 323 | | in their sole discretion, transfer all money to which they are |
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324 | 324 | | entitled under this section from that racetrack to the respective |
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325 | 325 | | accounts under their control at another racetrack or racetracks. |
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326 | 326 | | (z) If a greyhound racetrack fails to request the minimum |
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327 | 327 | | number of required live race dates or fails to offer the minimum |
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328 | 328 | | number of required live races despite issuance of live race dates, |
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329 | 329 | | does not receive a waiver of that violation from the Texas Racing |
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330 | 330 | | Commission as provided by Subtitle A-1, Title 13, Occupations Code |
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331 | 331 | | (Texas Racing Act), and does not have an agreement with the affected |
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332 | 332 | | officially recognized greyhound breed registry, the Texas |
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333 | 333 | | Greyhound Association or its successor may, in its sole discretion, |
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334 | 334 | | transfer all money to which the association is entitled under this |
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335 | 335 | | section from that racetrack to the account under its control at |
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336 | 336 | | another racetrack or racetracks. |
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337 | 337 | | (aa) The amount equal to 0.025 percent of the gross gaming |
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338 | 338 | | revenue generated at a horse racetrack shall be transferred from |
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339 | 339 | | the Texas equine development fund for that racetrack to the equine |
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340 | 340 | | research account of Texas A&M AgriLife Research or its successor |
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341 | 341 | | for use in equine research, including facilities development under |
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342 | 342 | | Subchapter F, Chapter 88, Education Code. The money transferred |
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343 | 343 | | under this subsection shall supplement, and may not replace, |
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344 | 344 | | funding provided under Subtitle A-1, Title 13, Occupations Code |
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345 | 345 | | (Texas Racing Act). |
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346 | 346 | | (bb) Each person that operates a casino or slot |
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347 | 347 | | establishment at a racetrack shall, at least weekly, transfer to |
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348 | 348 | | the racing facilities capital improvement account from the |
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349 | 349 | | racetrack's Texas equine development fund or Texas canine |
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350 | 350 | | development fund, as applicable, an amount equal to one-half of one |
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351 | 351 | | percent of the net gaming income unless a racing facilities |
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352 | 352 | | agreement providing for a different amount is filed with the Texas |
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353 | 353 | | Racing Commission. |
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354 | 354 | | (cc) Unless an agreement between the state horse breed |
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355 | 355 | | registries and the horsemen's organization provides otherwise, and |
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356 | 356 | | after any other allocations required by this section, the remainder |
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357 | 357 | | of the money deposited in the Texas equine development fund at a |
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358 | 358 | | horse racetrack must: |
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359 | 359 | | (1) be used for purses and the Texas-bred incentive |
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360 | 360 | | programs and may be used for other programs considered beneficial |
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361 | 361 | | to the equine industry, including: |
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362 | 362 | | (A) equine retirement, adoption, and retraining |
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363 | 363 | | programs; |
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364 | 364 | | (B) programs to test for banned |
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365 | 365 | | performance-enhancing equine drugs, performance-enhancing drug |
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366 | 366 | | testing research, and equipment and facilities of laboratories |
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367 | 367 | | providing those services in this state; and |
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368 | 368 | | (C) other programs to improve the working |
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369 | 369 | | environment in stable areas of racetracks; and |
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370 | 370 | | (2) be allocated as follows: |
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371 | 371 | | (A) the amount equal to 4.43 percent of the gross |
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372 | 372 | | gaming revenue to the horsemen's organization to supplement |
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373 | 373 | | Thoroughbred racing purses; |
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374 | 374 | | (B) the amount equal to 2.385 percent of the |
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375 | 375 | | gross gaming revenue to the horsemen's organization to supplement |
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376 | 376 | | quarter horse racing purses; |
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377 | 377 | | (C) the amount equal to 2.38 percent of the gross |
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378 | 378 | | gaming revenue to the Thoroughbred state horse breed registry; and |
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379 | 379 | | (D) the amount equal to 1.28 percent of the gross |
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380 | 380 | | gaming revenue to the quarter horse state horse breed registry. |
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381 | 381 | | (dd) From the money allocated under Subsection (cc)(2)(A) |
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382 | 382 | | of this section, pursuant to an agreement between the Texas Arabian |
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383 | 383 | | Breeders Association or its successor and the horsemen's |
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384 | 384 | | organization, the horsemen's organization shall allocate a portion |
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385 | 385 | | of the money for purses for the Arabian horse racing industry. The |
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386 | 386 | | agreement must provide that not less than the amount equal to 0.199 |
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387 | 387 | | percent of the gross gaming revenue be allocated for Arabian horse |
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388 | 388 | | racing purses. If an agreement is not made, the horsemen's |
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389 | 389 | | organization shall transfer to the Texas Arabian horse racing |
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390 | 390 | | industry the amount equal to 0.199 percent of the gross gaming |
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391 | 391 | | revenue for Arabian horse racing purses. |
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392 | 392 | | (ee) From the money allocated under Subsection (cc)(2)(B) |
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393 | 393 | | of this section, pursuant to an agreement between the Texas Paint |
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394 | 394 | | Horse Breeders' Association or its successor and the horsemen's |
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395 | 395 | | organization, the horsemen's organization shall allocate a portion |
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396 | 396 | | of the money for purses for the paint horse racing industry. If the |
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397 | 397 | | agreement is not made, the horsemen's organization shall transfer |
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398 | 398 | | to the paint horse racing industry an amount equal to 0.072 percent |
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399 | 399 | | of the gross gaming revenue for paint horse racing purses. |
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400 | 400 | | (ff) From the money allocated under Subsection (cc)(2)(C) |
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401 | 401 | | of this section, pursuant to an agreement between the Texas Arabian |
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402 | 402 | | Breeders Association or its successor and the Thoroughbred state |
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403 | 403 | | horse breed registry, the registry shall allocate a portion of the |
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404 | 404 | | money for the Arabian horse racing industry state-breed programs. |
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405 | 405 | | The agreement must provide that not less than the amount equal to |
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406 | 406 | | 0.107 percent of the gross gaming revenue be allocated for Arabian |
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407 | 407 | | state-breed programs. If an agreement is not made, the |
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408 | 408 | | Thoroughbred state horse breed registry shall transfer to the Texas |
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409 | 409 | | Arabian horse racing industry for state-breed programs the amount |
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410 | 410 | | equal to 0.107 percent of the gross gaming revenue. |
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411 | 411 | | (gg) From the money allocated under Subsection (cc)(2)(D) |
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412 | 412 | | of this section, pursuant to an agreement between the Texas Paint |
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413 | 413 | | Horse Breeders' Association or its successor and the quarter horse |
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414 | 414 | | state horse breed registry, the registry shall allocate a portion |
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415 | 415 | | of the money for state-breed programs for the paint horse racing |
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416 | 416 | | industry. If an agreement is not made, the registry shall transfer |
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417 | 417 | | to the paint horse racing industry an amount equal to 0.038 percent |
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418 | 418 | | of the gross gaming revenue for paint horse state-breed programs. |
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419 | 419 | | (hh) Following the other transfers and allocations required |
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420 | 420 | | by this section, the remainder of the money deposited in the Texas |
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421 | 421 | | canine development fund at a greyhound racetrack is allocated as |
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422 | 422 | | follows: |
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423 | 423 | | (1) the amount equal to 4.75 percent of the gross |
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424 | 424 | | gaming revenue to supplement greyhound racing purses; |
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425 | 425 | | (2) the amount equal to 4.75 percent of the gross |
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426 | 426 | | gaming revenue to supplement accredited Texas-bred greyhound |
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427 | 427 | | racing purses; and |
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428 | 428 | | (3) the amount equal to two percent of the gross gaming |
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429 | 429 | | revenue to the Texas Greyhound Association or its successor as the |
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430 | 430 | | state greyhound breed registry. |
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431 | 431 | | (ii) The Texas Racing Commission may adopt rules to |
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432 | 432 | | administer this section and shall require the electronic transfer |
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433 | 433 | | of funds to accounts described in this section. |
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434 | 434 | | (jj) For purposes of this section, a racing facilities |
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435 | 435 | | agreement for a horse racetrack is valid only on approval of the |
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436 | 436 | | applicable racetrack and a majority of the quarter horse state |
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437 | 437 | | horse breed registry, the Thoroughbred state horse breed registry, |
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438 | 438 | | and the horsemen's organization. |
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439 | 439 | | (kk) For purposes of this section, a racing facilities |
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440 | 440 | | agreement for a greyhound racetrack is valid only on approval of the |
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441 | 441 | | racetrack and the Texas Greyhound Association or its successor. |
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442 | 442 | | (ll) A racing facilities agreement filed under this section |
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443 | 443 | | remains in effect until it expires on its own terms or until it is |
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444 | 444 | | superseded by a subsequent racing facilities agreement for the same |
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445 | 445 | | racetrack. |
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446 | 446 | | (mm) Unless a racing facilities agreement provides |
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447 | 447 | | otherwise, the money in the racing facilities capital improvement |
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448 | 448 | | account may be spent only for the maintenance and improvement of |
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449 | 449 | | pari-mutuel racing facilities. |
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450 | 450 | | (nn) Money in the performance horse development fund may be |
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451 | 451 | | spent only for: |
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452 | 452 | | (1) the development of the horse agricultural industry |
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453 | 453 | | in this state through efforts intended to attract, retain, promote, |
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454 | 454 | | and encourage the breeding, raising, training, and exhibition of |
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455 | 455 | | horses in this state that are bred or trained for public competition |
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456 | 456 | | and exhibition or recreational use in all legally permitted equine |
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457 | 457 | | activities other than horse racing at racetracks; and |
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458 | 458 | | (2) events and programs conducted in this state. |
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459 | 459 | | (oo) Money from the performance horse development fund is |
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460 | 460 | | allocated as follows: |
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461 | 461 | | (1) 40 percent to the American Quarter Horse |
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462 | 462 | | Association or its successor for its sanctioned events and |
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463 | 463 | | programs; |
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464 | 464 | | (2) 20 percent to the National Cutting Horse |
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465 | 465 | | Association or its successor for its sanctioned events and |
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466 | 466 | | programs; |
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467 | 467 | | (3) 20 percent to the American Paint Horse Association |
---|
468 | 468 | | or its successor for its sanctioned events and programs; and |
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469 | 469 | | (4) 20 percent to the Department of Agriculture or its |
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470 | 470 | | successor to promote the equine agricultural industry in this |
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471 | 471 | | state. |
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472 | 472 | | (pp) Subject to Subsection (qq) of this section, money |
---|
473 | 473 | | transferred to an association or agency from the performance horse |
---|
474 | 474 | | development fund may be used for: |
---|
475 | 475 | | (1) purse supplements or additional money for |
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476 | 476 | | performance and recreational horse events conducted in this state; |
---|
477 | 477 | | (2) the establishment of an accredited Texas Bred |
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478 | 478 | | Program for breeding of performance and recreational horses; |
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479 | 479 | | (3) the marketing and promotion of performance and |
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480 | 480 | | recreational horse activities and events in this state; and |
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481 | 481 | | (4) scholarship programs. |
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482 | 482 | | (qq) Money may be transferred under Subsection (oo)(4) of |
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483 | 483 | | this section only to organizations of the equine industry in this |
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484 | 484 | | state that are not receiving money for events and programs under |
---|
485 | 485 | | Subsection (oo)(1), (2), or (3) of this section. |
---|
486 | 486 | | (rr) Except as otherwise provided by law, all money paid to |
---|
487 | 487 | | the Department of Agriculture or its successor is subject to |
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488 | 488 | | Subchapter F, Chapter 404, Government Code. |
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489 | 489 | | (ss) Casinos and slot establishments are subject to all |
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490 | 490 | | applicable state laws and local ordinances related to health and |
---|
491 | 491 | | building codes, including rules adopted by the Texas Gaming |
---|
492 | 492 | | Commission. A local ordinance or zoning law may not prohibit the |
---|
493 | 493 | | development of a casino or slot establishment authorized by this |
---|
494 | 494 | | section, except that a casino or slot establishment may not be |
---|
495 | 495 | | located in an area zoned exclusively as residential, unless |
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496 | 496 | | otherwise provided by commission rule. |
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497 | 497 | | (tt) The commissioners court of a county may at any time |
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498 | 498 | | order an election to legalize casino gaming under this section in |
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499 | 499 | | that county. The commissioners court shall order and hold an |
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500 | 500 | | election to legalize casino gaming under this section in the county |
---|
501 | 501 | | if the commissioners court is presented with a petition that meets |
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502 | 502 | | the requirements of this section and is certified as valid under |
---|
503 | 503 | | this section. |
---|
504 | 504 | | (uu) A petition for a legalization election must include a |
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505 | 505 | | statement substantially as follows before the space reserved for |
---|
506 | 506 | | signatures on each page: "This petition is to require that an |
---|
507 | 507 | | election be held in (name of county) to legalize casino gaming in |
---|
508 | 508 | | (name of county)." A petition is valid only if it is signed by a |
---|
509 | 509 | | number of registered voters of the county equal to at least three |
---|
510 | 510 | | percent of the total number of votes cast for governor by qualified |
---|
511 | 511 | | voters of the county in the most recent gubernatorial general |
---|
512 | 512 | | election. Each voter must enter beside the voter's signature the |
---|
513 | 513 | | date the voter signs the petition. A signature may not be counted |
---|
514 | 514 | | as valid if the date of signing is earlier than the 90th day before |
---|
515 | 515 | | the date the petition is submitted to the commissioners court. Each |
---|
516 | 516 | | voter must provide on the petition the voter's current voter |
---|
517 | 517 | | registration number, printed name, and residence address, |
---|
518 | 518 | | including zip code. |
---|
519 | 519 | | (vv) Not later than the fifth day after the date a petition |
---|
520 | 520 | | for an election under this section is received in the office of the |
---|
521 | 521 | | commissioners court, the commissioners court shall submit the |
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522 | 522 | | petition for verification to the county clerk. The county clerk |
---|
523 | 523 | | shall determine whether the petition is signed by the number of |
---|
524 | 524 | | registered voters of the county required under Subsection (uu) of |
---|
525 | 525 | | this section. Not later than the 30th day after the date the |
---|
526 | 526 | | petition is submitted to the county clerk for verification, the |
---|
527 | 527 | | clerk shall certify in writing to the commissioners court whether |
---|
528 | 528 | | the petition is valid or invalid. If the county clerk determines |
---|
529 | 529 | | the petition is invalid, the clerk shall state the reasons for that |
---|
530 | 530 | | determination. |
---|
531 | 531 | | (ww) If the county clerk certifies that a petition for an |
---|
532 | 532 | | election under this section is valid, not later than the 30th day |
---|
533 | 533 | | after the date of certification, the commissioners court shall |
---|
534 | 534 | | order that an election be held in the county on the next uniform |
---|
535 | 535 | | election date provided under general law that allows sufficient |
---|
536 | 536 | | time to comply with applicable provisions of general law. The |
---|
537 | 537 | | commissioners court shall state in the order the issue to be |
---|
538 | 538 | | presented to the voters. The county clerk shall notify the Texas |
---|
539 | 539 | | Gaming Commission by certified mail, return receipt requested, that |
---|
540 | 540 | | an election has been ordered. The ballot in a legalization election |
---|
541 | 541 | | shall be printed to provide for voting for or against the |
---|
542 | 542 | | proposition: "Legalizing casino gaming within (name of county)." |
---|
543 | 543 | | (xx) The commissioners court shall provide written notice |
---|
544 | 544 | | of the results of the election to the Texas Gaming Commission not |
---|
545 | 545 | | later than the third day after the date the election is canvassed. |
---|
546 | 546 | | If the majority of votes cast in a legalization election under this |
---|
547 | 547 | | section favor the legalization of casino gaming, casino gaming |
---|
548 | 548 | | authorized under this section is permitted within the county |
---|
549 | 549 | | holding the election effective on the 10th day after the date the |
---|
550 | 550 | | election is canvassed. If less than a majority of the votes cast in |
---|
551 | 551 | | the election favor the legalization of casino gaming, casino gaming |
---|
552 | 552 | | is not permitted in the county, and a subsequent election on the |
---|
553 | 553 | | issue may not be held in the county before the corresponding uniform |
---|
554 | 554 | | election date following the first anniversary of the election date. |
---|
555 | 555 | | If in each of two consecutive elections within any county less than |
---|
556 | 556 | | a majority of the votes cast favor the legalization of casino |
---|
557 | 557 | | gaming, casino gaming is not permitted in the county, and a |
---|
558 | 558 | | subsequent election on the issue may not be held in the county |
---|
559 | 559 | | before the corresponding uniform election date following the fifth |
---|
560 | 560 | | anniversary of the date of the second election. |
---|
561 | 561 | | (yy) It is a defense to prosecution for a gambling offense |
---|
562 | 562 | | under general law that the action was authorized under this |
---|
563 | 563 | | section, Section 47b of this article, or Texas Gaming Commission |
---|
564 | 564 | | rule. |
---|
565 | 565 | | (zz) All shipments of slot machines or gaming devices into, |
---|
566 | 566 | | out of, or within this state authorized under this section, Section |
---|
567 | 567 | | 47b of this article, or a rule adopted by the Texas Gaming |
---|
568 | 568 | | Commission are legal shipments of the devices and are exempt from |
---|
569 | 569 | | the provisions of 15 U.S.C. Sections 1171-1178, prohibiting the |
---|
570 | 570 | | transportation of gambling devices. |
---|
571 | 571 | | (aaa) Each state agency, including the attorney general and |
---|
572 | 572 | | the comptroller of public accounts, and each state or local law |
---|
573 | 573 | | enforcement agency shall cooperate with the Texas Gaming Commission |
---|
574 | 574 | | as necessary to implement this section. |
---|
575 | 575 | | (bbb) The legislature by general law may impose additional |
---|
576 | 576 | | restrictions or requirements for the conduct of casino gaming and |
---|
577 | 577 | | slot gaming. |
---|
578 | 578 | | (ccc) Unless specifically authorized by general law, a |
---|
579 | 579 | | political subdivision of this state may not impose: |
---|
580 | 580 | | (1) a tax on the payment of a casino or slot prize; |
---|
581 | 581 | | (2) a tax, fee, or other assessment on consideration |
---|
582 | 582 | | paid to play a casino or slot game authorized by this section; or |
---|
583 | 583 | | (3) a tax or fee on attendance at or admission to a |
---|
584 | 584 | | casino or slot establishment authorized by this section. |
---|
585 | 585 | | (ddd) In this section, unless modified by general law: |
---|
586 | 586 | | (1) "Casino" means a facility at which casino gaming |
---|
587 | 587 | | is conducted by a licensed casino owner as authorized by this |
---|
588 | 588 | | section. |
---|
589 | 589 | | (2) "Casino gaming" means any game of chance or |
---|
590 | 590 | | similar activity that involves the making of a bet for |
---|
591 | 591 | | consideration. The term includes any type of slot machine or table |
---|
592 | 592 | | game wagering using money, casino credit, or any representation of |
---|
593 | 593 | | value. The term does not include bingo, charitable raffles, or the |
---|
594 | 594 | | state lottery authorized under Section 47 of this article. |
---|
595 | 595 | | (3) "Casino owner" means a person, trust, corporation, |
---|
596 | 596 | | partnership, limited partnership, association, limited liability |
---|
597 | 597 | | company, or other business enterprise that directly holds an |
---|
598 | 598 | | ownership or leasehold interest in a casino licensed as provided by |
---|
599 | 599 | | this section. |
---|
600 | 600 | | (4) "Gross gaming revenue" means the total amount of |
---|
601 | 601 | | consideration paid to engage in casino gaming less winnings paid to |
---|
602 | 602 | | players of the casino games. |
---|
603 | 603 | | (5) "Gross slot income" means the total amount of |
---|
604 | 604 | | consideration paid to play slot machines less winnings paid to |
---|
605 | 605 | | players of the slot machines. |
---|
606 | 606 | | (6) "Performance and recreational horses" means |
---|
607 | 607 | | horses bred or trained for public competition and exhibition or |
---|
608 | 608 | | recreational use in all legally permitted equine activities other |
---|
609 | 609 | | than horse racing at racetracks. |
---|
610 | 610 | | (7) "Slot establishment" means a facility at which |
---|
611 | 611 | | slot gaming is conducted by a licensed slot establishment owner as |
---|
612 | 612 | | authorized by this section. |
---|
613 | 613 | | (8) "Slot establishment owner" means a person, trust, |
---|
614 | 614 | | corporation, partnership, limited partnership, association, |
---|
615 | 615 | | limited liability company, or other business enterprise that |
---|
616 | 616 | | directly holds an ownership or leasehold interest in a slot |
---|
617 | 617 | | establishment. |
---|
618 | 618 | | (9) "Slot gaming" means any game of chance played on a |
---|
619 | 619 | | slot machine on payment of consideration. The term does not include |
---|
620 | 620 | | bingo, charitable raffles, or the state lottery authorized under |
---|
621 | 621 | | Section 47 of this article. |
---|
622 | 622 | | (10) "Slot machine" means a mechanical, electrical, or |
---|
623 | 623 | | other device or machine that, on insertion of a coin, token, or |
---|
624 | 624 | | similar object or on payment of consideration, is available to play |
---|
625 | 625 | | or operate a game, the play or operation of which, wholly or partly |
---|
626 | 626 | | by the element of chance, may deliver or entitle the person playing |
---|
627 | 627 | | or operating the device or machine to receive cash, premiums, |
---|
628 | 628 | | merchandise, tokens, or any other thing of value, whether the |
---|
629 | 629 | | payoff is made automatically from the device or machine or is made |
---|
630 | 630 | | in another manner. |
---|
631 | 631 | | SECTION 3. Article III, Texas Constitution, is amended by |
---|
632 | 632 | | adding Section 47b to read as follows: |
---|
633 | 633 | | Sec. 47b. (a) Any federally recognized Indian tribe that |
---|
634 | 634 | | had a reservation in this state on or before January 1, 1998, may, |
---|
635 | 635 | | without application of state-imposed time, place, and manner |
---|
636 | 636 | | restrictions, conduct on its reservation class II gaming regulated |
---|
637 | 637 | | by the National Indian Gaming Commission consistent with that |
---|
638 | 638 | | commission's regulation of gaming conducted by Indian tribes in |
---|
639 | 639 | | other states, and any other gaming activity that may be conducted by |
---|
640 | 640 | | any other individual, organization, group, or entity in this state. |
---|
641 | 641 | | (b) In this section, class II gaming has the same meaning as |
---|
642 | 642 | | in Section 4(7), Indian Gaming Regulatory Act (25 U.S.C. Section |
---|
643 | 643 | | 2703(7)). |
---|
644 | 644 | | SECTION 4. The following temporary provision is added to |
---|
645 | 645 | | the Texas Constitution: |
---|
646 | 646 | | TEMPORARY PROVISION. (a) This temporary provision applies |
---|
647 | 647 | | to the constitutional amendment proposed by the 86th Legislature, |
---|
648 | 648 | | Regular Session, 2019, creating the Texas Gaming Commission and |
---|
649 | 649 | | authorizing and regulating the operation of casino games and slot |
---|
650 | 650 | | machines by licensed owners and certain Indian tribes to provide |
---|
651 | 651 | | money for the foundation school fund and additional financial aid |
---|
652 | 652 | | for higher education students. |
---|
653 | 653 | | (b) Not later than January 1, 2020, the governor shall |
---|
654 | 654 | | appoint the initial members of the Texas Gaming Commission in |
---|
655 | 655 | | accordance with Section 47a, Article III, of this constitution. In |
---|
656 | 656 | | making the initial appointments, the governor shall designate one |
---|
657 | 657 | | member to a term expiring February 1, 2021, two members to terms |
---|
658 | 658 | | expiring February 1, 2023, and two members to terms expiring |
---|
659 | 659 | | February 1, 2025. |
---|
660 | 660 | | (c) Not later than March 1, 2020, the Texas Gaming |
---|
661 | 661 | | Commission shall adopt the rules, including any emergency rules, |
---|
662 | 662 | | necessary to implement Section 47a, Article III, of this |
---|
663 | 663 | | constitution. |
---|
664 | 664 | | (d) This temporary provision expires January 1, 2021. |
---|
665 | 665 | | SECTION 5. This proposed constitutional amendment shall be |
---|
666 | 666 | | submitted to the voters at an election to be held November 5, 2019. |
---|
667 | 667 | | The ballot shall be printed to permit voting for or against the |
---|
668 | 668 | | proposition: "The constitutional amendment creating the Texas |
---|
669 | 669 | | Gaming Commission and authorizing and regulating the operation of |
---|
670 | 670 | | casino games and slot machines by a limited number of licensed |
---|
671 | 671 | | owners and certain Indian tribes to provide money for the |
---|
672 | 672 | | foundation school fund and additional financial aid for higher |
---|
673 | 673 | | education students." |
---|