| 1 | 1 | | 87R6794 BEE-F |
|---|
| 2 | 2 | | By: Kuempel H.J.R. No. 133 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A JOINT RESOLUTION |
|---|
| 6 | 6 | | proposing a constitutional amendment to foster economic |
|---|
| 7 | 7 | | development and job growth and to provide tax relief and funding for |
|---|
| 8 | 8 | | education and public safety by creating the Texas Gaming |
|---|
| 9 | 9 | | Commission, authorizing and regulating casino gaming at a limited |
|---|
| 10 | 10 | | number of destination resorts and facilities licensed by the |
|---|
| 11 | 11 | | commission, authorizing sports wagering, requiring occupational |
|---|
| 12 | 12 | | licenses to conduct casino gaming, and requiring the imposition of |
|---|
| 13 | 13 | | a tax. |
|---|
| 14 | 14 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 15 | 15 | | SECTION 1. Section 47(a), Article III, Texas Constitution, |
|---|
| 16 | 16 | | is amended to read as follows: |
|---|
| 17 | 17 | | (a) The Legislature shall pass laws prohibiting lotteries |
|---|
| 18 | 18 | | and gift enterprises in this State other than those authorized by |
|---|
| 19 | 19 | | Subsections (b), (d), (d-1), and (e) of this section and Section 47a |
|---|
| 20 | 20 | | of this article. |
|---|
| 21 | 21 | | SECTION 2. Article III, Texas Constitution, is amended by |
|---|
| 22 | 22 | | adding Section 47a to read as follows: |
|---|
| 23 | 23 | | Sec. 47a. (a) In this section, unless modified by general |
|---|
| 24 | 24 | | law: |
|---|
| 25 | 25 | | (1) "Casino" means a licensed facility at which casino |
|---|
| 26 | 26 | | gaming is conducted. |
|---|
| 27 | 27 | | (2) "Casino gaming" means any game of chance or |
|---|
| 28 | 28 | | similar activity that involves the making of a bet for |
|---|
| 29 | 29 | | consideration. The term includes wagering on any type of slot |
|---|
| 30 | 30 | | machine or table game as defined by the legislature, using money, |
|---|
| 31 | 31 | | casino credit, or any representation of value. The term does not |
|---|
| 32 | 32 | | include bingo, charitable raffles, or the state lottery authorized |
|---|
| 33 | 33 | | under Section 47 of this article. |
|---|
| 34 | 34 | | (3) "Destination resort" means a mixed-use |
|---|
| 35 | 35 | | development consisting of a combination of various tourism |
|---|
| 36 | 36 | | amenities and facilities, including hotels, villas, restaurants, |
|---|
| 37 | 37 | | limited gaming facilities, meeting facilities, attractions, |
|---|
| 38 | 38 | | entertainment facilities, shopping centers, and casino gaming |
|---|
| 39 | 39 | | facilities. |
|---|
| 40 | 40 | | (4) "Education" means public education, public higher |
|---|
| 41 | 41 | | education, and adult education related to responsible gaming. |
|---|
| 42 | 42 | | (5) "Gaming position" means a designated position for |
|---|
| 43 | 43 | | a person to engage in casino gaming at a table game or slot machine. |
|---|
| 44 | 44 | | (6) "Limited casino gaming" means casino gaming in a |
|---|
| 45 | 45 | | licensed facility that is limited to not more than 750 gaming |
|---|
| 46 | 46 | | positions, of which not more than 25 percent may be at table games, |
|---|
| 47 | 47 | | as defined by the legislature. |
|---|
| 48 | 48 | | (7) "Metropolitan statistical area" means a |
|---|
| 49 | 49 | | metropolitan statistical area designated by the United States |
|---|
| 50 | 50 | | Office of Management and Budget. |
|---|
| 51 | 51 | | (8) "Public safety programs" means programs for crime |
|---|
| 52 | 52 | | prevention and law enforcement, including programs designed to |
|---|
| 53 | 53 | | prevent and prosecute crimes involving human trafficking. |
|---|
| 54 | 54 | | (b) Casino gaming at a limited number of locations is |
|---|
| 55 | 55 | | authorized in this state in accordance with this section to foster |
|---|
| 56 | 56 | | economic development and job growth and to provide tax relief and |
|---|
| 57 | 57 | | funding for education and public safety programs. |
|---|
| 58 | 58 | | (c) The legislature by general law shall establish the Texas |
|---|
| 59 | 59 | | Gaming Commission with broad authority to adopt rules the |
|---|
| 60 | 60 | | commission considers necessary or desirable for the strict |
|---|
| 61 | 61 | | regulation of casino gaming as authorized by this section. |
|---|
| 62 | 62 | | (d) The legislature by general law may authorize and |
|---|
| 63 | 63 | | regulate the placing of wagers on sporting events, as defined by |
|---|
| 64 | 64 | | general law. |
|---|
| 65 | 65 | | (e) The legislature shall authorize the Texas Gaming |
|---|
| 66 | 66 | | Commission to: |
|---|
| 67 | 67 | | (1) issue not more than four Class I gaming licenses to |
|---|
| 68 | 68 | | conduct casino gaming at destination resorts located in |
|---|
| 69 | 69 | | metropolitan statistical areas of this state with an estimated |
|---|
| 70 | 70 | | population of two million or more on July 1, 2019, provided that |
|---|
| 71 | 71 | | only one Class I licensed destination resort is located within any |
|---|
| 72 | 72 | | one metropolitan statistical area; |
|---|
| 73 | 73 | | (2) issue not more than three Class II licenses to |
|---|
| 74 | 74 | | conduct limited casino gaming to applicants who, on January 1, |
|---|
| 75 | 75 | | 2021, held and who continue to hold an active license to conduct |
|---|
| 76 | 76 | | pari-mutuel wagering on horse races at a racetrack located within a |
|---|
| 77 | 77 | | metropolitan statistical area with an estimated population of two |
|---|
| 78 | 78 | | million or more on July 1, 2019, and who comply with the |
|---|
| 79 | 79 | | requirements of this section, general law enacted pursuant to this |
|---|
| 80 | 80 | | section, and rules adopted by the Texas Gaming Commission under |
|---|
| 81 | 81 | | this section and the general law; |
|---|
| 82 | 82 | | (3) issue not more than two Class III licenses to |
|---|
| 83 | 83 | | conduct limited casino gaming to applicants who, on January 1, |
|---|
| 84 | 84 | | 2021, held and who continue to hold an active license to conduct |
|---|
| 85 | 85 | | pari-mutuel wagering on greyhound races at a racetrack located |
|---|
| 86 | 86 | | within a metropolitan statistical area with an estimated population |
|---|
| 87 | 87 | | of less than two million on July 1, 2019, and who comply with the |
|---|
| 88 | 88 | | requirements of this section, general law enacted pursuant to this |
|---|
| 89 | 89 | | section, and rules adopted by the Texas Gaming Commission under |
|---|
| 90 | 90 | | this section and general law; and |
|---|
| 91 | 91 | | (4) allow an Indian tribe recognized by the United |
|---|
| 92 | 92 | | States government under federal law to operate slot machines or |
|---|
| 93 | 93 | | casino gaming on its Indian land within this state and held in trust |
|---|
| 94 | 94 | | by the United States on January 1, 1998, in accordance with: |
|---|
| 95 | 95 | | (A) federal law; and |
|---|
| 96 | 96 | | (B) either: |
|---|
| 97 | 97 | | (i) an effective gaming agreement that |
|---|
| 98 | 98 | | includes a provision requiring the tribe to remit to this state a |
|---|
| 99 | 99 | | portion of its gaming revenue in an amount equal to the rate |
|---|
| 100 | 100 | | provided in the agreement; or |
|---|
| 101 | 101 | | (ii) general state law that includes a |
|---|
| 102 | 102 | | provision requiring the Indian tribe to remit to this state a |
|---|
| 103 | 103 | | portion of its gaming revenue in an amount equal to the rate |
|---|
| 104 | 104 | | provided by the general law. |
|---|
| 105 | 105 | | (f) The legislature by general law shall direct the Texas |
|---|
| 106 | 106 | | Gaming Commission by rule to ensure license applicants who are |
|---|
| 107 | 107 | | granted a Class II license authorized by Subsection (e)(2) of this |
|---|
| 108 | 108 | | section continue to maintain significant live horse racing at the |
|---|
| 109 | 109 | | applicant's racetrack and maintain the applicant's primary purpose |
|---|
| 110 | 110 | | as a racetrack, and that limited casino gaming is used as a |
|---|
| 111 | 111 | | complimentary amenity to promote and support horse racing in this |
|---|
| 112 | 112 | | state. |
|---|
| 113 | 113 | | (g) The legislature by general law shall authorize license |
|---|
| 114 | 114 | | holders who are granted a Class III license authorized by |
|---|
| 115 | 115 | | Subsection (e)(3) of this section to offer limited casino gaming |
|---|
| 116 | 116 | | under that license at any location within the same metropolitan |
|---|
| 117 | 117 | | statistical area as the holder's licensed greyhound racetrack. |
|---|
| 118 | 118 | | (h) To satisfy the intent of this section, the legislature |
|---|
| 119 | 119 | | by general law shall establish additional restrictions on the |
|---|
| 120 | 120 | | facilities of a license holder who holds a Class II or Class III |
|---|
| 121 | 121 | | casino gaming license authorized under Subsection (e)(2) or (e)(3) |
|---|
| 122 | 122 | | of this section, including limits on total square footage, gaming |
|---|
| 123 | 123 | | square footage, and overnight accommodations, for the purposes of |
|---|
| 124 | 124 | | adequately distinguishing between the license classes described in |
|---|
| 125 | 125 | | Subsection (e) of this section and limiting casino gaming to |
|---|
| 126 | 126 | | certain metropolitan statistical areas in this state. |
|---|
| 127 | 127 | | (i) To ensure the greatest economic impact to this state |
|---|
| 128 | 128 | | from destination resorts granted a Class I license to conduct |
|---|
| 129 | 129 | | casino gaming, the legislature by general law shall direct the |
|---|
| 130 | 130 | | Texas Gaming Commission, in determining which applicants will be |
|---|
| 131 | 131 | | issued a license, to consider: |
|---|
| 132 | 132 | | (1) the total investment to be made by each applicant; |
|---|
| 133 | 133 | | (2) the total job creation and workforce diversity |
|---|
| 134 | 134 | | proposed by each applicant; |
|---|
| 135 | 135 | | (3) each applicant's experience in resort development |
|---|
| 136 | 136 | | and casino operation; |
|---|
| 137 | 137 | | (4) the potential tax revenue to this state from |
|---|
| 138 | 138 | | gaming and non-gaming activities at a proposed resort; |
|---|
| 139 | 139 | | (5) whether entities operating or individuals |
|---|
| 140 | 140 | | residing in this state are part of the application approval process |
|---|
| 141 | 141 | | or are approved vendors; and |
|---|
| 142 | 142 | | (6) whether an applicant intends to seek state or |
|---|
| 143 | 143 | | local tax incentives for their project. |
|---|
| 144 | 144 | | (j) The legislature by general law may develop additional |
|---|
| 145 | 145 | | considerations and requirements for licenses to conduct casino |
|---|
| 146 | 146 | | gaming, and restrictions and penalties for the conduct of casino |
|---|
| 147 | 147 | | gaming in this state. |
|---|
| 148 | 148 | | (k) To ensure that a requisite level of economic development |
|---|
| 149 | 149 | | and job growth benefiting the people of this state accompanies each |
|---|
| 150 | 150 | | destination resort granted a Class I license to conduct casino |
|---|
| 151 | 151 | | gaming, the legislature by general law shall require an applicant, |
|---|
| 152 | 152 | | as a condition to receiving and holding a license, to commit to |
|---|
| 153 | 153 | | building a destination resort with new total land and development |
|---|
| 154 | 154 | | investments of at least: |
|---|
| 155 | 155 | | (1) $2 billion for a destination resort located in a |
|---|
| 156 | 156 | | metropolitan statistical area with an estimated population of five |
|---|
| 157 | 157 | | million or more on July 1, 2019; or |
|---|
| 158 | 158 | | (2) $1 billion for a destination resort located in a |
|---|
| 159 | 159 | | metropolitan statistical area with an estimated population of two |
|---|
| 160 | 160 | | million or more but less than five million on July 1, 2019. |
|---|
| 161 | 161 | | (l) The legislature by general law shall require that, in |
|---|
| 162 | 162 | | meeting the requirements of Subsection (k) of this section, total |
|---|
| 163 | 163 | | land and development investments proposed as part of an application |
|---|
| 164 | 164 | | to conduct casino gaming at a destination resort may not include |
|---|
| 165 | 165 | | public money or facilities developed or built with public |
|---|
| 166 | 166 | | assistance or tax incentives of any kind. |
|---|
| 167 | 167 | | (m) The legislature by general law may allow land and |
|---|
| 168 | 168 | | development investments made in the five years preceding the date a |
|---|
| 169 | 169 | | license application for a Class I destination resort is submitted |
|---|
| 170 | 170 | | to be included in the calculation of new total land and development |
|---|
| 171 | 171 | | investment requirements under Subsection (k) of this section. |
|---|
| 172 | 172 | | (n) The legislature by general law shall impose a tax on the |
|---|
| 173 | 173 | | casino gaming revenue of casino gaming license holders in this |
|---|
| 174 | 174 | | state. The legislature shall set the tax rates for casino gaming |
|---|
| 175 | 175 | | at: |
|---|
| 176 | 176 | | (1) 10 percent of the gross gaming revenue from table |
|---|
| 177 | 177 | | games, as defined by the legislature; and |
|---|
| 178 | 178 | | (2) 25 percent of the gross gaming revenue from slot |
|---|
| 179 | 179 | | machines, as defined by the legislature. |
|---|
| 180 | 180 | | (o) The legislature by general law shall establish |
|---|
| 181 | 181 | | procedures to determine whether a Class I license application meets |
|---|
| 182 | 182 | | the investment requirements of Subsection (k) of this section and |
|---|
| 183 | 183 | | whether an applicant who is granted a Class I license satisfies the |
|---|
| 184 | 184 | | investment commitments made in their application. |
|---|
| 185 | 185 | | SECTION 3. This proposed constitutional amendment shall be |
|---|
| 186 | 186 | | submitted to the voters at an election to be held November 2, 2021. |
|---|
| 187 | 187 | | The ballot shall be printed to permit voting for or against the |
|---|
| 188 | 188 | | proposition: "The constitutional amendment to foster economic |
|---|
| 189 | 189 | | development and job growth and to provide tax relief and funding for |
|---|
| 190 | 190 | | education and public safety by creating the Texas Gaming |
|---|
| 191 | 191 | | Commission, authorizing casino gaming at a limited number of |
|---|
| 192 | 192 | | destination resorts and facilities licensed by the commission, and |
|---|
| 193 | 193 | | authorizing sports wagering." |
|---|