87R6794 BEE-F
By: Kuempel H.J.R. No. 133
A JOINT RESOLUTION
proposing a constitutional amendment to foster economic
development and job growth and to provide tax relief and funding for
education and public safety by creating the Texas Gaming
Commission, authorizing and regulating casino gaming at a limited
number of destination resorts and facilities licensed by the
commission, authorizing sports wagering, requiring occupational
licenses to conduct casino gaming, and requiring the imposition of
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 Section 47a
of this article.
SECTION 2. Article III, Texas Constitution, is amended by
adding Section 47a to read as follows:
Sec. 47a. (a) In this section, unless modified by general
law:
(1) "Casino" means a licensed facility at which casino
gaming is conducted.
(2) "Casino gaming" means any game of chance or
similar activity that involves the making of a bet for
consideration. The term includes wagering on any type of slot
machine or table game as defined by the legislature, 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) "Destination resort" means a mixed-use
development consisting of a combination of various tourism
amenities and facilities, including hotels, villas, restaurants,
limited gaming facilities, meeting facilities, attractions,
entertainment facilities, shopping centers, and casino gaming
facilities.
(4) "Education" means public education, public higher
education, and adult education related to responsible gaming.
(5) "Gaming position" means a designated position for
a person to engage in casino gaming at a table game or slot machine.
(6) "Limited casino gaming" means casino gaming in a
licensed facility that is limited to not more than 750 gaming
positions, of which not more than 25 percent may be at table games,
as defined by the legislature.
(7) "Metropolitan statistical area" means a
metropolitan statistical area designated by the United States
Office of Management and Budget.
(8) "Public safety programs" means programs for crime
prevention and law enforcement, including programs designed to
prevent and prosecute crimes involving human trafficking.
(b) Casino gaming at a limited number of locations is
authorized in this state in accordance with this section to foster
economic development and job growth and to provide tax relief and
funding for education and public safety programs.
(c) The legislature by general law shall establish the Texas
Gaming Commission with broad authority to adopt rules the
commission considers necessary or desirable for the strict
regulation of casino gaming as authorized by this section.
(d) The legislature by general law may authorize and
regulate the placing of wagers on sporting events, as defined by
general law.
(e) The legislature shall authorize the Texas Gaming
Commission to:
(1) issue not more than four Class I gaming licenses to
conduct casino gaming at destination resorts located in
metropolitan statistical areas of this state with an estimated
population of two million or more on July 1, 2019, provided that
only one Class I licensed destination resort is located within any
one metropolitan statistical area;
(2) issue not more than three Class II licenses to
conduct limited casino gaming to applicants who, on January 1,
2021, held and who continue to hold an active license to conduct
pari-mutuel wagering on horse races at a racetrack located within a
metropolitan statistical area with an estimated population of two
million or more on July 1, 2019, and who comply with the
requirements of this section, general law enacted pursuant to this
section, and rules adopted by the Texas Gaming Commission under
this section and the general law;
(3) issue not more than two Class III licenses to
conduct limited casino gaming to applicants who, on January 1,
2021, held and who continue to hold an active license to conduct
pari-mutuel wagering on greyhound races at a racetrack located
within a metropolitan statistical area with an estimated population
of less than two million on July 1, 2019, and who comply with the
requirements of this section, general law enacted pursuant to this
section, and rules adopted by the Texas Gaming Commission under
this section and general law; and
(4) allow an Indian tribe recognized by the United
States government under federal law to operate slot machines or
casino gaming on its Indian land within this state and held in trust
by the United States on January 1, 1998, in accordance with:
(A) federal law; and
(B) either:
(i) an effective gaming agreement that
includes a provision requiring the tribe to remit to this state a
portion of its 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 its gaming revenue in an amount equal to the rate
provided by the general law.
(f) The legislature by general law shall direct the Texas
Gaming Commission by rule to ensure license applicants who are
granted a Class II license authorized by Subsection (e)(2) of this
section continue to maintain significant live horse racing at the
applicant's racetrack and maintain the applicant's primary purpose
as a racetrack, and that limited casino gaming is used as a
complimentary amenity to promote and support horse racing in this
state.
(g) The legislature by general law shall authorize license
holders who are granted a Class III license authorized by
Subsection (e)(3) of this section to offer limited casino gaming
under that license at any location within the same metropolitan
statistical area as the holder's licensed greyhound racetrack.
(h) To satisfy the intent of this section, the legislature
by general law shall establish additional restrictions on the
facilities of a license holder who holds a Class II or Class III
casino gaming license authorized under Subsection (e)(2) or (e)(3)
of this section, including limits on total square footage, gaming
square footage, and overnight accommodations, for the purposes of
adequately distinguishing between the license classes described in
Subsection (e) of this section and limiting casino gaming to
certain metropolitan statistical areas in this state.
(i) To ensure the greatest economic impact to this state
from destination resorts granted a Class I license to conduct
casino gaming, the legislature by general law shall direct the
Texas Gaming Commission, in determining which applicants will be
issued a license, to consider:
(1) the total investment to be made by each applicant;
(2) the total job creation and workforce diversity
proposed by each applicant;
(3) each applicant's experience in resort development
and casino operation;
(4) the potential tax revenue to this state from
gaming and non-gaming activities at a proposed resort;
(5) whether entities operating or individuals
residing in this state are part of the application approval process
or are approved vendors; and
(6) whether an applicant intends to seek state or
local tax incentives for their project.
(j) The legislature by general law may develop additional
considerations and requirements for licenses to conduct casino
gaming, and restrictions and penalties for the conduct of casino
gaming in this state.
(k) To ensure that a requisite level of economic development
and job growth benefiting the people of this state accompanies each
destination resort granted a Class I license to conduct casino
gaming, the legislature by general law shall require an applicant,
as a condition to receiving and holding a license, to commit to
building a destination resort with new total land and development
investments of at least:
(1) $2 billion for a destination resort located in a
metropolitan statistical area with an estimated population of five
million or more on July 1, 2019; or
(2) $1 billion for a destination resort located in a
metropolitan statistical area with an estimated population of two
million or more but less than five million on July 1, 2019.
(l) The legislature by general law shall require that, in
meeting the requirements of Subsection (k) of this section, total
land and development investments proposed as part of an application
to conduct casino gaming at a destination resort may not include
public money or facilities developed or built with public
assistance or tax incentives of any kind.
(m) The legislature by general law may allow land and
development investments made in the five years preceding the date a
license application for a Class I destination resort is submitted
to be included in the calculation of new total land and development
investment requirements under Subsection (k) of this section.
(n) The legislature by general law shall impose a tax on the
casino gaming revenue of casino gaming license holders in this
state. The legislature shall set the tax rates for casino gaming
at:
(1) 10 percent of the gross gaming revenue from table
games, as defined by the legislature; and
(2) 25 percent of the gross gaming revenue from slot
machines, as defined by the legislature.
(o) The legislature by general law shall establish
procedures to determine whether a Class I license application meets
the investment requirements of Subsection (k) of this section and
whether an applicant who is granted a Class I license satisfies the
investment commitments made in their application.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 2, 2021.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment to foster economic
development and job growth and to provide tax relief and funding for
education and public safety by creating the Texas Gaming
Commission, authorizing casino gaming at a limited number of
destination resorts and facilities licensed by the commission, and
authorizing sports wagering."