86R11256 ADM-F
By: Menéndez S.J.R. No. 41
A JOINT RESOLUTION
proposing a constitutional amendment creating the Texas Gaming
Commission and authorizing and regulating the operation of casino
games and slot machines by a limited number of licensed owners and
certain Indian tribes to provide money for the foundation school
fund and additional financial aid for higher education students;
authorizing fees; imposing a tax.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 47(a), Article III, Texas Constitution,
is amended to read as follows:
(a) The Legislature shall pass laws prohibiting lotteries
and gift enterprises in this State other than those authorized by
Subsections (b), (d), (d-1), and (e) of this section and Sections
47a and 47b of this article.
SECTION 2. Article III, Texas Constitution, is amended by
adding Section 47a to read as follows:
Sec. 47a. (a) Casino gaming and slot gaming are authorized
in this state in accordance with this section to provide additional
money for the foundation school fund and additional financial aid
for higher education students.
(b) The Texas Gaming Commission is established. The
commission is composed of five members appointed by the governor
with the advice and consent of the senate. Commission members serve
staggered six-year terms, with one or two members' terms, as
applicable, expiring February 1 of each odd-numbered year. The
governor shall fill a vacancy in a position on the commission for
the remainder of the unexpired term. The governor shall designate a
commission member as presiding officer of the commission to serve
in that capacity at the pleasure of the governor.
(c) To be eligible for appointment to the commission, a
person:
(1) must be a citizen of the United States;
(2) must have resided in this state for the two years
preceding the date of the person's appointment;
(3) may not:
(A) own a financial or other interest in an
entity engaged in the conduct of casino gaming or slot gaming or
engaged in the provision of casino or slot services, or an interest
in a security issued by such an entity; or
(B) be related within the second degree by
affinity or the third degree by consanguinity as determined by
general law to an individual who owns an interest described in
Paragraph (A) of this subdivision;
(4) may not be an applicant for or holder of a license
or other affirmative regulatory approval under a law administered
by the commission; and
(5) may not be a member of the governing body of a
political subdivision of this state.
(d) The Texas Gaming Commission has broad authority and
shall exercise strict control and close supervision over all
activities related to casino gaming and slot gaming authorized and
conducted in this state under this section or another law
administered by the commission.
(e) The Texas Gaming Commission shall appoint an executive
director and other necessary personnel and shall adopt rules the
commission considers necessary or desirable for the public interest
in carrying out the policy and provisions of this section and the
other laws related to this section that are administered by the
commission, including rules on:
(1) licensing and regulating casino owners, slot
establishment owners, gaming managers, gaming employees, and
manufacturers and distributors of gaming equipment, including the
qualifications, definitions, terms, and fees for licenses;
(2) criteria for awarding, denying, revoking,
probating, and suspending licenses;
(3) exclusion of persons and age requirements;
(4) procedures for conducting investigations,
inspections, criminal background investigations, audits, complaint
investigations, and disciplinary hearings;
(5) reporting and internal control requirements for
license holders;
(6) consequences of criminal convictions of license
holders or applicants;
(7) enforcement provisions, including disciplinary
actions and penalties, and security requirements;
(8) prize payment and redemption;
(9) regulating the operations of casinos and slot
establishments; and
(10) standards for gaming equipment.
(f) The Texas Gaming Commission shall:
(1) issue four licenses to operate casinos or slot
establishments to persons who are licensed to conduct pari-mutuel
wagering on horse or greyhound races in the county in which the
applicants held a license to conduct pari-mutuel wagering on horse
or greyhound races as of January 1, 2019, and who comply with
requirements of this section and related state laws and commission
rules;
(2) issue three licenses to operate casinos to persons
who are licensed to conduct pari-mutuel wagering at a class 1
racetrack as defined by Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act), at the location licensed for conducting
pari-mutuel wagering on horse races and who comply with
requirements of this section and related state laws and commission
rules;
(3) issue four licenses to operate casinos at
casino-anchored destination attraction development projects in
counties with a population greater than 1.5 million to persons who
comply with requirements of this section and related state laws and
commission rules;
(4) issue three licenses to operate casinos at
casino-anchored destination attraction development projects
located on islands in the Gulf of Mexico to persons who comply with
requirements of this section and related state laws and commission
rules; and
(5) allow an Indian tribe recognized by the United
States government under federal law to operate on the tribe's land
held in trust by the United States on January 1, 1998, casino gaming
or slot gaming in accordance with:
(A) federal law; and
(B) either:
(i) an effective gaming agreement that
includes a provision requiring the Indian tribe to remit to this
state a portion of the tribe's casino gaming or slot gaming revenue
in an amount equal to the rate provided in the agreement; or
(ii) general state law that includes a
provision requiring the Indian tribe to remit to this state a
portion of the tribe's casino gaming or slot gaming revenue in an
amount equal to the rate provided by the general law.
(g) In determining whether or, for multiple applicants
competing for a limited number of casino owner's licenses or slot
establishment owner's licenses within a geographic area, to whom to
grant a license, the Texas Gaming Commission shall consider:
(1) the prospective revenue to be collected by this
state from the conduct of casino gaming at a casino or of slot
gaming at a slot establishment and the impact to this state's
economy of each competing applicant's proposed gaming and
associated facilities;
(2) the number of state residents estimated to be
employed at an applicant's proposed casino or slot establishment
and any proposed associated hotel and nongaming businesses and the
applicant's good faith plan to recruit, train, and promote a
workforce reflecting the diverse population of this state in all
employment classifications;
(3) the extent to which an applicant's proposed casino
or slot establishment and any proposed associated hotel and
nongaming businesses could reasonably encourage interstate tourism
to this state;
(4) the extent to which the scope, design, location,
and construction of the applicant's casino or slot establishment
and any associated hotel and nongaming businesses could reasonably
contribute to the development of a first-class gaming industry in
this state;
(5) the applicant's experience in conducting licensed
gaming operations and the applicant's financial ability to promptly
construct and adequately maintain a casino or slot establishment,
including the experience of partners of the applicant, of
affiliated companies of the applicant or its partners, of key
personnel of the applicant or its partners, and of operating
companies under contract with the applicant; and
(6) the percentage of equity interest in the applicant
owned or to be owned by residents of this state.
(h) To ensure that a requisite level of economic development
benefiting the people of this state accompanies each casino for
which an owner's license is granted, the Texas Gaming Commission
shall require an applicant for a license described by Subsection
(f)(3) or (4) of this section, as a condition of receiving and
holding an owner's license, to enter into an agreement with this
state guaranteeing the applicant will construct a casino-anchored
destination attraction development project that includes total
land and development costs of at least:
(1) $1 billion for a project described by Subsection
(f)(3) of this section; or
(2) $250 million for a project described in Subsection
(f)(4) of this section.
(i) Notwithstanding Subsection (f) of this section:
(1) a license under Subsection (f)(1), (2), (3), or
(4) of this section may not be issued in a county unless:
(A) a majority of the voters of the county voted
for the proposition that added this section to this constitution;
or
(B) the voters of the county approved a
proposition legalizing casino gaming at a local option election
held under this section;
(2) not more than two casinos or slot establishments
may be located in the same county;
(3) a license under Subsection (f)(1) of this section
may not be issued to an applicant that did not conduct pari-mutuel
wagering at the location before January 1, 2019;
(4) a casino license may not be issued for a location
in an area in which casino gaming or slot gaming is prohibited under
a gaming agreement negotiated between an Indian tribe and this
state; and
(5) a casino license may not be issued for a location
within five miles of property the General Land Office is required by
statute to preserve and protect.
(j) The Texas casino and slot gaming fund is a special fund
in the state treasury. All application fees, investigation fees,
and license fees collected by the Texas Gaming Commission or on the
commission's behalf related to casino gaming or slot gaming shall
be deposited to the credit of the Texas casino and slot gaming fund.
Except as provided by this section, the Texas casino and slot gaming
fund may only be used for the operation of the commission and the
administration of this section. If money in the fund exceeds the
amount necessary for the operation of the commission and the
administration of this section, the legislature shall transfer any
excess amount to the foundation school fund.
(k) An applicant applying for a license under Subsection (f)
of this section shall submit to the Texas Gaming Commission an
application fee in the amount of:
(1) $15 million for a license to operate a slot
establishment under Subsection (f)(1) of this section;
(2) $25 million for a license to operate a casino under
Subsection (f)(1) or (4) of this section; and
(3) $50 million for a license to operate a casino under
Subsection (f)(2) or (3) of this section.
(k-1) If an applicant for a license to operate a casino or
slot establishment submits an application and fee to the Texas
Gaming Commission and is not awarded the license, the commission
shall refund the fee less the costs incurred by the commission in
reviewing the application and conducting a criminal background
investigation on the applicant.
(l) A slot gaming tax in an amount equal to 35 percent of a
slot establishment owner's gross slot income for the slot
establishment operated under the owner's license is imposed on the
owner. The tax shall be computed and paid on a monthly basis in
accordance with the procedures established by rule of the Texas
Gaming Commission.
(m) Except as provided by Subsection (n) of this section, a
casino gaming tax in an amount equal to 20 percent of a casino
owner's gross gaming revenue for the casino operated under the
owner's license is imposed on the owner. The tax shall be computed
and paid on a monthly basis in accordance with the procedures
established by rule of the Texas Gaming Commission.
(n) The casino gaming tax imposed under Subsection (m) of
this section is reduced to an amount equal to 15 percent of a casino
owner's gross gaming revenue for the casino operated under the
owner's license if the Texas Gaming Commission determines the owner
has invested $1 billion or more in the owner's casino facility.
(o) Of the revenue from the taxes imposed by Subsections (l)
and (m) of this section:
(1) one-twentieth is allocated to the municipality in
which the casino or slot establishment is located and one-twentieth
is allocated to the county in which the casino or slot establishment
is located; or
(2) if the casino or slot establishment is located in
an unincorporated area, one-tenth is allocated to the county in
which the casino or slot establishment is located.
(p) The comptroller of public accounts shall transfer the
appropriate amount allocated under Subsection (o) of this section
to the appropriate municipalities and counties not less than
monthly in the manner the comptroller considers appropriate.
(q) Except as otherwise provided by this section, the
revenue from the taxes imposed by Subsections (l) and (m) of this
section is allocated as follows:
(1) one-fortieth to the general revenue fund for
appropriation only to fund a compulsive gambling program
established by the Texas Gaming Commission;
(2) one-fortieth to the general revenue fund for
appropriation only to the Texas Gaming Commission to provide grants
to prosecuting attorneys in this state for the investigation and
prosecution of offenses related to the possession of gambling
devices and illegal gambling operations; and
(3) the remainder to the foundation school fund.
(r) The comptroller of public accounts quarterly shall
determine the net amount of receipts to be collected by a casino or
slot establishment from the sales and use taxes, hotel occupancy
taxes, alcoholic beverage taxes, and franchise taxes imposed under
general law, or from other taxes imposed under general law as
provided by the legislature in general law, and shall deposit that
amount in the general revenue fund. The net amount deposited may
only be appropriated to fund the TEXAS grant program established
under Subchapter M, Chapter 56, Education Code, or a similar
program established by the legislature to provide grants to higher
education students in this state.
(s) A casino or slot establishment located at a greyhound
racetrack shall transfer 12 percent of gross gaming revenue to a
Texas canine development fund established and administered by the
racetrack.
(t) A casino or slot establishment located at a horse
racetrack shall provide at least $1 million, or the minimum
coverage amount required by the Texas Racing Commission, in
accident insurance coverage for jockeys participating in a race
meeting at the racetrack. The commission:
(1) may review and approve the adequacy of the
coverage;
(2) shall annually adjust for inflation the minimum
coverage amount; and
(3) shall annually publish in the Texas Register the
revised minimum coverage amount.
(u) A person that operates a casino or slot establishment at
a racetrack shall make at least weekly payments to the racing
facilities capital improvement account in an amount equal to
one-half of one percent of the gross gaming revenue unless a racing
facilities agreement providing for a different amount is filed with
the Texas Racing Commission.
(v) The racing facilities capital improvement account is an
escrow account held outside the state treasury and administered by
the Texas Racing Commission. A transfer of money from the account
requires:
(1) for a horse racetrack, the signatures of:
(A) a designated official of the horse racetrack;
and
(B) a designated representative appointed by a
majority of the quarter horse state breed registry, the
Thoroughbred state horse breed registry, and the horsemen's
organization; or
(2) for a greyhound racetrack, the signatures of:
(A) a designated official of the greyhound
racetrack; and
(B) a designated representative of the Texas
Greyhound Association or its successor.
(w) The Texas Racing Commission shall adopt rules to
administer this section. The rules must require the electronic
transfer of funds to the accounts described in this section.
(x) A person who operates a casino or slot establishment at
a racetrack shall promptly and fully make each payment or transfer
from the gross gaming revenue required under this section on behalf
of the casino or slot establishment at the racetrack even if live
racing at that racetrack is shortened, canceled, or delayed for any
reason.
(y) If a horse racetrack fails to request the minimum number
of required live race dates or fails to offer the minimum number of
required live races despite issuance of live race dates, does not
receive a waiver of that violation from the Texas Racing Commission
as provided by Subtitle A-1, Title 13, Occupations Code (Texas
Racing Act), and does not have an agreement with the affected state
horse breed registries and horsemen's organization, the applicable
state horse breed registries and the horsemen's organization may,
in their sole discretion, transfer all money to which they are
entitled under this section from that racetrack to the respective
accounts under their control at another racetrack or racetracks.
(z) If a greyhound racetrack fails to request the minimum
number of required live race dates or fails to offer the minimum
number of required live races despite issuance of live race dates,
does not receive a waiver of that violation from the Texas Racing
Commission as provided by Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act), and does not have an agreement with the affected
officially recognized greyhound breed registry, the Texas
Greyhound Association or its successor may, in its sole discretion,
transfer all money to which the association is entitled under this
section from that racetrack to the account under its control at
another racetrack or racetracks.
(aa) The amount equal to 0.025 percent of the gross gaming
revenue generated at a horse racetrack shall be transferred from
the Texas equine development fund for that racetrack to the equine
research account of Texas A&M AgriLife Research or its successor
for use in equine research, including facilities development under
Subchapter F, Chapter 88, Education Code. The money transferred
under this subsection shall supplement, and may not replace,
funding provided under Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act).
(bb) Each person that operates a casino or slot
establishment at a racetrack shall, at least weekly, transfer to
the racing facilities capital improvement account from the
racetrack's Texas equine development fund or Texas canine
development fund, as applicable, an amount equal to one-half of one
percent of the net gaming income unless a racing facilities
agreement providing for a different amount is filed with the Texas
Racing Commission.
(cc) Unless an agreement between the state horse breed
registries and the horsemen's organization provides otherwise, and
after any other allocations required by this section, the remainder
of the money deposited in the Texas equine development fund at a
horse racetrack must:
(1) be used for purses and the Texas-bred incentive
programs and may be used for other programs considered beneficial
to the equine industry, including:
(A) equine retirement, adoption, and retraining
programs;
(B) programs to test for banned
performance-enhancing equine drugs, performance-enhancing drug
testing research, and equipment and facilities of laboratories
providing those services in this state; and
(C) other programs to improve the working
environment in stable areas of racetracks; and
(2) be allocated as follows:
(A) the amount equal to 4.43 percent of the gross
gaming revenue to the horsemen's organization to supplement
Thoroughbred racing purses;
(B) the amount equal to 2.385 percent of the
gross gaming revenue to the horsemen's organization to supplement
quarter horse racing purses;
(C) the amount equal to 2.38 percent of the gross
gaming revenue to the Thoroughbred state horse breed registry; and
(D) the amount equal to 1.28 percent of the gross
gaming revenue to the quarter horse state horse breed registry.
(dd) From the money allocated under Subsection (cc)(2)(A)
of this section, pursuant to an agreement between the Texas Arabian
Breeders Association or its successor and the horsemen's
organization, the horsemen's organization shall allocate a portion
of the money for purses for the Arabian horse racing industry. The
agreement must provide that not less than the amount equal to 0.199
percent of the gross gaming revenue be allocated for Arabian horse
racing purses. If an agreement is not made, the horsemen's
organization shall transfer to the Texas Arabian horse racing
industry the amount equal to 0.199 percent of the gross gaming
revenue for Arabian horse racing purses.
(ee) From the money allocated under Subsection (cc)(2)(B)
of this section, pursuant to an agreement between the Texas Paint
Horse Breeders' Association or its successor and the horsemen's
organization, the horsemen's organization shall allocate a portion
of the money for purses for the paint horse racing industry. If the
agreement is not made, the horsemen's organization shall transfer
to the paint horse racing industry an amount equal to 0.072 percent
of the gross gaming revenue for paint horse racing purses.
(ff) From the money allocated under Subsection (cc)(2)(C)
of this section, pursuant to an agreement between the Texas Arabian
Breeders Association or its successor and the Thoroughbred state
horse breed registry, the registry shall allocate a portion of the
money for the Arabian horse racing industry state-breed programs.
The agreement must provide that not less than the amount equal to
0.107 percent of the gross gaming revenue be allocated for Arabian
state-breed programs. If an agreement is not made, the
Thoroughbred state horse breed registry shall transfer to the Texas
Arabian horse racing industry for state-breed programs the amount
equal to 0.107 percent of the gross gaming revenue.
(gg) From the money allocated under Subsection (cc)(2)(D)
of this section, pursuant to an agreement between the Texas Paint
Horse Breeders' Association or its successor and the quarter horse
state horse breed registry, the registry shall allocate a portion
of the money for state-breed programs for the paint horse racing
industry. If an agreement is not made, the registry shall transfer
to the paint horse racing industry an amount equal to 0.038 percent
of the gross gaming revenue for paint horse state-breed programs.
(hh) Following the other transfers and allocations required
by this section, the remainder of the money deposited in the Texas
canine development fund at a greyhound racetrack is allocated as
follows:
(1) the amount equal to 4.75 percent of the gross
gaming revenue to supplement greyhound racing purses;
(2) the amount equal to 4.75 percent of the gross
gaming revenue to supplement accredited Texas-bred greyhound
racing purses; and
(3) the amount equal to two percent of the gross gaming
revenue to the Texas Greyhound Association or its successor as the
state greyhound breed registry.
(ii) The Texas Racing Commission may adopt rules to
administer this section and shall require the electronic transfer
of funds to accounts described in this section.
(jj) For purposes of this section, a racing facilities
agreement for a horse racetrack is valid only on approval of the
applicable racetrack and a majority of the quarter horse state
horse breed registry, the Thoroughbred state horse breed registry,
and the horsemen's organization.
(kk) For purposes of this section, a racing facilities
agreement for a greyhound racetrack is valid only on approval of the
racetrack and the Texas Greyhound Association or its successor.
(ll) A racing facilities agreement filed under this section
remains in effect until it expires on its own terms or until it is
superseded by a subsequent racing facilities agreement for the same
racetrack.
(mm) Unless a racing facilities agreement provides
otherwise, the money in the racing facilities capital improvement
account may be spent only for the maintenance and improvement of
pari-mutuel racing facilities.
(nn) Money in the performance horse development fund may be
spent only for:
(1) the development of the horse agricultural industry
in this state through efforts intended to attract, retain, promote,
and encourage the breeding, raising, training, and exhibition of
horses in this state that are bred or trained for public competition
and exhibition or recreational use in all legally permitted equine
activities other than horse racing at racetracks; and
(2) events and programs conducted in this state.
(oo) Money from the performance horse development fund is
allocated as follows:
(1) 40 percent to the American Quarter Horse
Association or its successor for its sanctioned events and
programs;
(2) 20 percent to the National Cutting Horse
Association or its successor for its sanctioned events and
programs;
(3) 20 percent to the American Paint Horse Association
or its successor for its sanctioned events and programs; and
(4) 20 percent to the Department of Agriculture or its
successor to promote the equine agricultural industry in this
state.
(pp) Subject to Subsection (qq) of this section, money
transferred to an association or agency from the performance horse
development fund may be used for:
(1) purse supplements or additional money for
performance and recreational horse events conducted in this state;
(2) the establishment of an accredited Texas Bred
Program for breeding of performance and recreational horses;
(3) the marketing and promotion of performance and
recreational horse activities and events in this state; and
(4) scholarship programs.
(qq) Money may be transferred under Subsection (oo)(4) of
this section only to organizations of the equine industry in this
state that are not receiving money for events and programs under
Subsection (oo)(1), (2), or (3) of this section.
(rr) Except as otherwise provided by law, all money paid to
the Department of Agriculture or its successor is subject to
Subchapter F, Chapter 404, Government Code.
(ss) Casinos and slot establishments are subject to all
applicable state laws and local ordinances related to health and
building codes, including rules adopted by the Texas Gaming
Commission. A local ordinance or zoning law may not prohibit the
development of a casino or slot establishment authorized by this
section, except that a casino or slot establishment may not be
located in an area zoned exclusively as residential, unless
otherwise provided by commission rule.
(tt) The commissioners court of a county may at any time
order an election to legalize casino gaming under this section in
that county. The commissioners court shall order and hold an
election to legalize casino gaming under this section in the county
if the commissioners court is presented with a petition that meets
the requirements of this section and is certified as valid under
this section.
(uu) A petition for a legalization election must include a
statement substantially as follows before the space reserved for
signatures on each page: "This petition is to require that an
election be held in (name of county) to legalize casino gaming in
(name of county)." A petition is valid only if it is signed by a
number of registered voters of the county equal to at least three
percent of the total number of votes cast for governor by qualified
voters of the county in the most recent gubernatorial general
election. Each voter must enter beside the voter's signature the
date the voter signs the petition. A signature may not be counted
as valid if the date of signing is earlier than the 90th day before
the date the petition is submitted to the commissioners court. Each
voter must provide on the petition the voter's current voter
registration number, printed name, and residence address,
including zip code.
(vv) Not later than the fifth day after the date a petition
for an election under this section is received in the office of the
commissioners court, the commissioners court shall submit the
petition for verification to the county clerk. The county clerk
shall determine whether the petition is signed by the number of
registered voters of the county required under Subsection (uu) of
this section. Not later than the 30th day after the date the
petition is submitted to the county clerk for verification, the
clerk shall certify in writing to the commissioners court whether
the petition is valid or invalid. If the county clerk determines
the petition is invalid, the clerk shall state the reasons for that
determination.
(ww) If the county clerk certifies that a petition for an
election under this section is valid, not later than the 30th day
after the date of certification, the commissioners court shall
order that an election be held in the county on the next uniform
election date provided under general law that allows sufficient
time to comply with applicable provisions of general law. The
commissioners court shall state in the order the issue to be
presented to the voters. The county clerk shall notify the Texas
Gaming Commission by certified mail, return receipt requested, that
an election has been ordered. The ballot in a legalization election
shall be printed to provide for voting for or against the
proposition: "Legalizing casino gaming within (name of county)."
(xx) The commissioners court shall provide written notice
of the results of the election to the Texas Gaming Commission not
later than the third day after the date the election is canvassed.
If the majority of votes cast in a legalization election under this
section favor the legalization of casino gaming, casino gaming
authorized under this section is permitted within the county
holding the election effective on the 10th day after the date the
election is canvassed. If less than a majority of the votes cast in
the election favor the legalization of casino gaming, casino gaming
is not permitted in the county, and a subsequent election on the
issue may not be held in the county before the corresponding uniform
election date following the first anniversary of the election date.
If in each of two consecutive elections within any county less than
a majority of the votes cast favor the legalization of casino
gaming, casino gaming is not permitted in the county, and a
subsequent election on the issue may not be held in the county
before the corresponding uniform election date following the fifth
anniversary of the date of the second election.
(yy) It is a defense to prosecution for a gambling offense
under general law that the action was authorized under this
section, Section 47b of this article, or Texas Gaming Commission
rule.
(zz) All shipments of slot machines or gaming devices into,
out of, or within this state authorized under this section, Section
47b of this article, or a rule adopted by the Texas Gaming
Commission are legal shipments of the devices and are exempt from
the provisions of 15 U.S.C. Sections 1171-1178, prohibiting the
transportation of gambling devices.
(aaa) Each state agency, including the attorney general and
the comptroller of public accounts, and each state or local law
enforcement agency shall cooperate with the Texas Gaming Commission
as necessary to implement this section.
(bbb) The legislature by general law may impose additional
restrictions or requirements for the conduct of casino gaming and
slot gaming.
(ccc) Unless specifically authorized by general law, a
political subdivision of this state may not impose:
(1) a tax on the payment of a casino or slot prize;
(2) a tax, fee, or other assessment on consideration
paid to play a casino or slot game authorized by this section; or
(3) a tax or fee on attendance at or admission to a
casino or slot establishment authorized by this section.
(ddd) In this section, unless modified by general law:
(1) "Casino" means a facility at which casino gaming
is conducted by a licensed casino owner as authorized by this
section.
(2) "Casino gaming" means any game of chance or
similar activity that involves the making of a bet for
consideration. The term includes any type of slot machine or table
game wagering using money, casino credit, or any representation of
value. The term does not include bingo, charitable raffles, or the
state lottery authorized under Section 47 of this article.
(3) "Casino owner" means a person, trust, corporation,
partnership, limited partnership, association, limited liability
company, or other business enterprise that directly holds an
ownership or leasehold interest in a casino licensed as provided by
this section.
(4) "Gross gaming revenue" means the total amount of
consideration paid to engage in casino gaming less winnings paid to
players of the casino games.
(5) "Gross slot income" means the total amount of
consideration paid to play slot machines less winnings paid to
players of the slot machines.
(6) "Performance and recreational horses" means
horses bred or trained for public competition and exhibition or
recreational use in all legally permitted equine activities other
than horse racing at racetracks.
(7) "Slot establishment" means a facility at which
slot gaming is conducted by a licensed slot establishment owner as
authorized by this section.
(8) "Slot establishment owner" means a person, trust,
corporation, partnership, limited partnership, association,
limited liability company, or other business enterprise that
directly holds an ownership or leasehold interest in a slot
establishment.
(9) "Slot gaming" means any game of chance played on a
slot machine on payment of consideration. The term does not include
bingo, charitable raffles, or the state lottery authorized under
Section 47 of this article.
(10) "Slot machine" means a mechanical, electrical, or
other device or machine that, on insertion of a coin, token, or
similar object or on payment of consideration, is available to play
or operate a game, the play or operation of which, wholly or partly
by the element of chance, may deliver or entitle the person playing
or operating the device or machine to receive cash, premiums,
merchandise, tokens, or any other thing of value, whether the
payoff is made automatically from the device or machine or is made
in another manner.
SECTION 3. Article III, Texas Constitution, is amended by
adding Section 47b to read as follows:
Sec. 47b. (a) Any federally recognized Indian tribe that
had a reservation in this state on or before January 1, 1998, may,
without application of state-imposed time, place, and manner
restrictions, conduct on its reservation class II gaming regulated
by the National Indian Gaming Commission consistent with that
commission's regulation of gaming conducted by Indian tribes in
other states, and any other gaming activity that may be conducted by
any other individual, organization, group, or entity in this state.
(b) In this section, class II gaming has the same meaning as
in Section 4(7), Indian Gaming Regulatory Act (25 U.S.C. Section
2703(7)).
SECTION 4. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, creating the Texas Gaming Commission and
authorizing and regulating the operation of casino games and slot
machines by licensed owners and certain Indian tribes to provide
money for the foundation school fund and additional financial aid
for higher education students.
(b) Not later than January 1, 2020, the governor shall
appoint the initial members of the Texas Gaming Commission in
accordance with Section 47a, Article III, of this constitution. In
making the initial appointments, the governor shall designate one
member to a term expiring February 1, 2021, two members to terms
expiring February 1, 2023, and two members to terms expiring
February 1, 2025.
(c) Not later than March 1, 2020, the Texas Gaming
Commission shall adopt the rules, including any emergency rules,
necessary to implement Section 47a, Article III, of this
constitution.
(d) This temporary provision expires January 1, 2021.
SECTION 5. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 5, 2019.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment creating the Texas
Gaming Commission and authorizing and regulating the operation of
casino games and slot machines by a limited number of licensed
owners and certain Indian tribes to provide money for the
foundation school fund and additional financial aid for higher
education students."