| 1 | 1 | | By: Geren H.J.R. No. 97 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A JOINT RESOLUTION |
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| 5 | 5 | | proposing a constitutional amendment to foster economic |
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| 6 | 6 | | development and job growth, provide tax relief and funding for |
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| 7 | 7 | | education and public safety programs, and reform and support the |
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| 8 | 8 | | horse racing industry by authorizing casino gaming at destination |
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| 9 | 9 | | resorts, creating the Texas Gaming Commission, authorizing sports |
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| 10 | 10 | | wagering, requiring a license to conduct casino gaming, and |
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| 11 | 11 | | requiring the imposition of a gaming and sports wagering tax and |
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| 12 | 12 | | license application fees. |
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| 13 | 13 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. The Legislature finds that: |
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| 15 | 15 | | (1) the qualified voters of this state should have the |
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| 16 | 16 | | opportunity to decide whether to authorize casino gaming at |
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| 17 | 17 | | destination resorts; and |
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| 18 | 18 | | (2) if authorized by those voters, casino gaming at |
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| 19 | 19 | | destination resorts should: |
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| 20 | 20 | | (A) serve the public interest by fostering |
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| 21 | 21 | | economic development and job growth and providing tax relief and |
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| 22 | 22 | | funding for education and public safety programs; |
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| 23 | 23 | | (B) be strictly regulated by a newly created |
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| 24 | 24 | | state agency empowered to adopt rules regulating who may obtain a |
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| 25 | 25 | | casino license and the conduct of casino gaming in this state; |
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| 26 | 26 | | (C) be limited to areas of this state in which |
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| 27 | 27 | | pari-mutuel wagering has previously been approved; |
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| 28 | 28 | | (D) be limited to areas of this state in which the |
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| 29 | 29 | | greatest positive economic impact from destination resort |
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| 30 | 30 | | development can be realized; |
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| 31 | 31 | | (E) utilize some existing pari-mutuel racing |
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| 32 | 32 | | licenses to allow more immediate development of destination resorts |
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| 33 | 33 | | and to more quickly realize the related job growth and economic |
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| 34 | 34 | | development; |
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| 35 | 35 | | (F) encourage participation by and competition |
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| 36 | 36 | | between multiple casino license holders; and |
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| 37 | 37 | | (G) result in the reform and revitalization of |
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| 38 | 38 | | the horse racing industry in this state and the industry's benefits |
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| 39 | 39 | | to agricultural businesses in this state. |
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| 40 | 40 | | SECTION 2. Section 47(a), Article III, Texas Constitution, |
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| 41 | 41 | | is amended to read as follows: |
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| 42 | 42 | | (a) The Legislature shall pass laws prohibiting lotteries |
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| 43 | 43 | | and gift enterprises in this State other than those authorized by |
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| 44 | 44 | | Subsections (b), (d), (d-1), and (e) of this section and Section 47a |
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| 45 | 45 | | of this article. |
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| 46 | 46 | | SECTION 3. Article III, Texas Constitution, is amended by |
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| 47 | 47 | | adding Section 47a to read as follows: |
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| 48 | 48 | | Sec. 47a. (a) In this section: |
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| 49 | 49 | | (1) "Casino" means licensed facilities located at a |
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| 50 | 50 | | destination resort at which casino gaming is conducted. |
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| 51 | 51 | | (2) "Casino gaming" means any game of chance or |
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| 52 | 52 | | similar activity that involves placing a bet for consideration. |
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| 53 | 53 | | The term includes wagering on any type of slot machine or table |
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| 54 | 54 | | game, as defined by the legislature, using money, casino credit, or |
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| 55 | 55 | | any other representation of value. The term does not include: |
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| 56 | 56 | | (A) bingo, a charitable raffle, or the state |
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| 57 | 57 | | lottery authorized under Section 47 of this article; or |
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| 58 | 58 | | (B) placing, receiving, or otherwise knowingly |
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| 59 | 59 | | transmitting a bet or wager by a means that requires the use of the |
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| 60 | 60 | | Internet, except for offering slot machines, table games, or other |
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| 61 | 61 | | devices the Texas Gaming Commission approves that use the Internet |
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| 62 | 62 | | or networking functionality but are played onsite at a casino. |
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| 63 | 63 | | (3) "Casino license" means a license to conduct |
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| 64 | 64 | | casino gaming at a casino. |
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| 65 | 65 | | (4) "Destination resort" means a mixed-use |
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| 66 | 66 | | development consisting of casino gaming facilities and a |
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| 67 | 67 | | combination of various tourism amenities and facilities, including |
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| 68 | 68 | | hotels, restaurants, meeting facilities, attractions, |
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| 69 | 69 | | entertainment facilities, and shopping centers. |
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| 70 | 70 | | (5) "Education" means public education, public higher |
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| 71 | 71 | | education, and adult education related to responsible gaming. |
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| 72 | 72 | | (6) "Metropolitan statistical area" means a |
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| 73 | 73 | | metropolitan statistical area designated by the United States |
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| 74 | 74 | | Office of Management and Budget as of July 1, 2021. |
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| 75 | 75 | | (7) "Person" includes an individual and any legal |
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| 76 | 76 | | entity, such as a corporation, organization, partnership, or |
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| 77 | 77 | | association. |
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| 78 | 78 | | (8) "Public safety program" means a program for crime |
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| 79 | 79 | | prevention and law enforcement, including a program designed to |
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| 80 | 80 | | prevent and prosecute crimes involving human trafficking and money |
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| 81 | 81 | | laundering. |
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| 82 | 82 | | (9) "Racetrack association" means a person who holds |
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| 83 | 83 | | a license to conduct racing in this state. |
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| 84 | 84 | | (10) "Racing" means a horse race meeting or greyhound |
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| 85 | 85 | | race meeting with pari-mutuel wagering. |
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| 86 | 86 | | (11) "Sports wagering" means wagering on the outcome |
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| 87 | 87 | | of a live sporting event, as defined by general law. |
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| 88 | 88 | | (b) To foster economic development and job growth, provide |
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| 89 | 89 | | tax relief and funding for education and public safety programs, |
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| 90 | 90 | | reform and support the horse racing industry, and provide for |
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| 91 | 91 | | destination resorts in populous metropolitan statistical areas in |
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| 92 | 92 | | which pari-mutuel wagering previously has been approved, casino |
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| 93 | 93 | | gaming is authorized pursuant to casino licenses for casinos at |
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| 94 | 94 | | destination resorts as follows: |
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| 95 | 95 | | (1) two destination resorts in the Dallas-Fort |
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| 96 | 96 | | Worth-Arlington metropolitan statistical area; |
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| 97 | 97 | | (2) two destination resorts in the Houston-The |
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| 98 | 98 | | Woodlands-Sugar Land metropolitan statistical area; |
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| 99 | 99 | | (3) one destination resort in the San Antonio-New |
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| 100 | 100 | | Braunfels metropolitan statistical area; |
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| 101 | 101 | | (4) one destination resort in the Corpus Christi |
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| 102 | 102 | | metropolitan statistical area; and |
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| 103 | 103 | | (5) one destination resort in the |
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| 104 | 104 | | McAllen-Edinburg-Mission metropolitan statistical area. |
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| 105 | 105 | | (c) The legislature shall: |
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| 106 | 106 | | (1) authorize sports wagering only in a place and |
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| 107 | 107 | | manner prescribed by general law; |
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| 108 | 108 | | (2) regulate by general law the conduct of sports |
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| 109 | 109 | | wagering; and |
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| 110 | 110 | | (3) direct the Texas Gaming Commission to promulgate |
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| 111 | 111 | | rules consistent with general law to regulate sports wagering in |
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| 112 | 112 | | this state. |
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| 113 | 113 | | (d) The legislature by general law shall establish the Texas |
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| 114 | 114 | | Gaming Commission as a state agency with broad authority to adopt |
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| 115 | 115 | | and enforce the rules necessary to strictly regulate casino gaming |
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| 116 | 116 | | and sports wagering in accordance with this section. |
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| 117 | 117 | | (e) The Texas Gaming Commission is composed of five members |
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| 118 | 118 | | appointed by the governor with the advice and consent of the senate |
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| 119 | 119 | | to serve staggered terms of six years each, as established under |
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| 120 | 120 | | general law. To be eligible for appointment and continued service, |
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| 121 | 121 | | a member must satisfy the qualifications established by the |
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| 122 | 122 | | legislature under that law. |
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| 123 | 123 | | (f) A racetrack association may designate a person to apply |
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| 124 | 124 | | for and hold a casino license under Subsection (g) of this section |
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| 125 | 125 | | by providing notice to the Texas Gaming Commission in the manner |
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| 126 | 126 | | prescribed by general law or commission rule consistent with |
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| 127 | 127 | | general law. A racetrack association may not change the person |
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| 128 | 128 | | designated in the provided notice unless the person declines the |
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| 129 | 129 | | designation. A racetrack association may not at any time designate |
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| 130 | 130 | | more than one person under this subsection. A racetrack |
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| 131 | 131 | | association is ineligible to hold a casino license if the racetrack |
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| 132 | 132 | | association designates a person for a license under this subsection |
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| 133 | 133 | | unless the designation is declined by the person. Nothing in this |
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| 134 | 134 | | subsection affects duties or rights established by contract or |
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| 135 | 135 | | other law. |
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| 136 | 136 | | (g) Subject to this section, the Texas Gaming Commission |
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| 137 | 137 | | shall issue a casino license to each initial qualified applicant. |
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| 138 | 138 | | An initial qualified applicant must: |
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| 139 | 139 | | (1) be of good moral character, be honest, and have |
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| 140 | 140 | | integrity; |
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| 141 | 141 | | (2) demonstrate that issuance of the casino license to |
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| 142 | 142 | | the applicant will not be detrimental to the public interest or the |
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| 143 | 143 | | casino gaming industry; |
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| 144 | 144 | | (3) satisfy the qualifications and any other |
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| 145 | 145 | | requirements established under general law; |
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| 146 | 146 | | (4) demonstrate the financial ability to complete the |
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| 147 | 147 | | development of and operate the destination resort at which the |
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| 148 | 148 | | person will conduct casino gaming; |
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| 149 | 149 | | (5) have adequate experience in resort development, |
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| 150 | 150 | | resort management, and casino gaming operations; |
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| 151 | 151 | | (6) provide a detailed estimate of the applicant's |
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| 152 | 152 | | total new development investment in the destination resort; and |
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| 153 | 153 | | (7) satisfy the applicable requirements provided in |
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| 154 | 154 | | Subsection (h) of this section. |
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| 155 | 155 | | (h) An initial qualified applicant for a casino license must |
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| 156 | 156 | | satisfy the following requirements for the metropolitan |
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| 157 | 157 | | statistical area in which the destination resort will be located: |
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| 158 | 158 | | (1) for a casino license in the Dallas-Fort |
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| 159 | 159 | | Worth-Arlington metropolitan statistical area, the initial |
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| 160 | 160 | | qualified applicant must: |
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| 161 | 161 | | (A) be a racetrack association that on January 1, |
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| 162 | 162 | | 2022, held a license to conduct racing anywhere in the Dallas-Fort |
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| 163 | 163 | | Worth-Arlington metropolitan statistical area or the Laredo |
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| 164 | 164 | | metropolitan statistical area or be the person designated by the |
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| 165 | 165 | | racetrack association under Subsection (f) of this section; and |
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| 166 | 166 | | (B) commit to investing for new development of |
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| 167 | 167 | | the destination resort an amount equal to at least $2 billion, |
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| 168 | 168 | | including land acquisition; |
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| 169 | 169 | | (2) for a casino license in the Houston-The |
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| 170 | 170 | | Woodlands-Sugar Land metropolitan statistical area, the initial |
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| 171 | 171 | | qualified applicant must: |
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| 172 | 172 | | (A) be a racetrack association that on January 1, |
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| 173 | 173 | | 2022, held a license to conduct racing anywhere in the Houston-The |
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| 174 | 174 | | Woodlands-Sugar Land metropolitan statistical area or the |
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| 175 | 175 | | Brownsville-Harlingen metropolitan statistical area or be the |
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| 176 | 176 | | person designated by the racetrack association under Subsection (f) |
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| 177 | 177 | | of this section; and |
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| 178 | 178 | | (B) commit to investing for new development of |
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| 179 | 179 | | the destination resort an amount equal to at least $2 billion, |
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| 180 | 180 | | including land acquisition; |
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| 181 | 181 | | (3) for a casino license in the San Antonio-New |
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| 182 | 182 | | Braunfels metropolitan statistical area, the initial qualified |
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| 183 | 183 | | applicant must: |
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| 184 | 184 | | (A) be a racetrack association that on January 1, |
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| 185 | 185 | | 2022, held a license to conduct racing anywhere in the San |
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| 186 | 186 | | Antonio-New Braunfels metropolitan statistical area or be the |
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| 187 | 187 | | person designated by the racetrack association under Subsection (f) |
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| 188 | 188 | | of this section; and |
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| 189 | 189 | | (B) commit to investing for new development of |
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| 190 | 190 | | the destination resort an amount equal to at least $1 billion, |
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| 191 | 191 | | including land acquisition; |
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| 192 | 192 | | (4) for a casino license in the Corpus Christi |
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| 193 | 193 | | metropolitan statistical area, the initial qualified applicant |
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| 194 | 194 | | must: |
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| 195 | 195 | | (A) be a racetrack association that on January 1, |
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| 196 | 196 | | 2022, held a license to conduct racing anywhere in the Corpus |
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| 197 | 197 | | Christi metropolitan statistical area or be the person designated |
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| 198 | 198 | | by the racetrack association under Subsection (f) of this section; |
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| 199 | 199 | | and |
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| 200 | 200 | | (B) commit to investing for new development of |
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| 201 | 201 | | the destination resort an amount equal to at least $250 million, |
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| 202 | 202 | | including land acquisition; and |
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| 203 | 203 | | (5) for a casino license in the |
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| 204 | 204 | | McAllen-Edinburg-Mission metropolitan statistical area, the |
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| 205 | 205 | | initial qualified applicant must: |
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| 206 | 206 | | (A) be a racetrack association that on January 1, |
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| 207 | 207 | | 2022, held a license to conduct racing anywhere in the |
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| 208 | 208 | | McAllen-Edinburg-Mission metropolitan statistical area or be the |
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| 209 | 209 | | person designated by the racetrack association under Subsection (f) |
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| 210 | 210 | | of this section; and |
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| 211 | 211 | | (B) commit to investing for new development of |
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| 212 | 212 | | the destination resort an amount equal to at least $250 million, |
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| 213 | 213 | | including land acquisition. |
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| 214 | 214 | | (i) A destination resort at which casino gaming is conducted |
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| 215 | 215 | | under a casino license may be located anywhere within the |
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| 216 | 216 | | metropolitan statistical area for which the license is issued. |
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| 217 | 217 | | (j) Consistent with this section, the legislature by |
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| 218 | 218 | | general law: |
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| 219 | 219 | | (1) shall regulate casino gaming and sports wagering |
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| 220 | 220 | | in this state by prescribing: |
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| 221 | 221 | | (A) additional requirements governing the |
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| 222 | 222 | | issuance and continued qualification for holding a casino license; |
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| 223 | 223 | | (B) restrictions on the transfer of casino |
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| 224 | 224 | | licenses; |
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| 225 | 225 | | (C) definitions of terms necessary or useful to |
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| 226 | 226 | | implement this section, such as the terms casino, casino gaming, |
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| 227 | 227 | | casino license, destination resort, and sports wagering; |
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| 228 | 228 | | (D) qualifications for the issuance of new casino |
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| 229 | 229 | | licenses to persons that are not initial qualified applicants under |
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| 230 | 230 | | Subsection (g) of this section, provided that the number of active |
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| 231 | 231 | | casino licenses, as defined by the legislature, may not at any one |
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| 232 | 232 | | time exceed the number of casino licenses for destination resorts |
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| 233 | 233 | | authorized in Subsection (b) of this section; and |
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| 234 | 234 | | (E) restrictions and penalties for the unlawful |
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| 235 | 235 | | conduct of casino gaming and sports wagering; and |
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| 236 | 236 | | (2) may delegate to the Texas Gaming Commission the |
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| 237 | 237 | | authority to prescribe rules regulating casino gaming and sports |
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| 238 | 238 | | wagering in accordance with this section. |
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| 239 | 239 | | (k) State or local public money or facilities developed or |
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| 240 | 240 | | built with state or local public assistance or tax incentives of any |
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| 241 | 241 | | kind may not be used for the development or operation of a |
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| 242 | 242 | | destination resort. The legislature by general law shall prescribe |
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| 243 | 243 | | procedures and enforcement measures to ensure that: |
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| 244 | 244 | | (1) a casino license applicant has the financial |
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| 245 | 245 | | capability of satisfying the minimum investment specified in |
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| 246 | 246 | | Subsection (h) of this section; and |
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| 247 | 247 | | (2) each casino license holder satisfies the |
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| 248 | 248 | | investment required under Subsection (h) of this section. |
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| 249 | 249 | | (l) A person may not have an ownership interest in more than |
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| 250 | 250 | | two casino license holders. The legislature by general law shall: |
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| 251 | 251 | | (1) define ownership interest for purposes of this |
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| 252 | 252 | | subsection; and |
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| 253 | 253 | | (2) prescribe the consequences of violating this |
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| 254 | 254 | | subsection. |
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| 255 | 255 | | (m) The legislature by general law shall direct the Texas |
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| 256 | 256 | | Gaming Commission to adopt rules to ensure that a person who holds |
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| 257 | 257 | | a casino license and a license to conduct horse racing at a class 1 |
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| 258 | 258 | | racetrack, as that term is defined by general law, maintains a |
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| 259 | 259 | | number of live horse racing dates that is at least equivalent to the |
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| 260 | 260 | | number of live horse racing dates held at the racetrack in 2022. |
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| 261 | 261 | | (n) The legislature by general law shall require a racetrack |
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| 262 | 262 | | association that: |
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| 263 | 263 | | (1) holds a license to conduct greyhound racing to |
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| 264 | 264 | | cease all racing operations and surrender that license as a |
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| 265 | 265 | | condition of holding, or designating a person to hold, a casino |
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| 266 | 266 | | license; and |
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| 267 | 267 | | (2) holds a license to conduct racing in the Laredo |
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| 268 | 268 | | metropolitan statistical area to cease all racing operations and |
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| 269 | 269 | | surrender that license as a condition of holding, or designating a |
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| 270 | 270 | | person to hold, a casino license. |
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| 271 | 271 | | (o) The legislature by general law shall ensure the Texas |
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| 272 | 272 | | Racing Commission or its successor regulates the racing operations |
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| 273 | 273 | | of each racetrack association that holds a casino license and the |
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| 274 | 274 | | Texas Gaming Commission regulates casino gaming and sports wagering |
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| 275 | 275 | | operations of the racetrack association. |
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| 276 | 276 | | (p) The legislature by general law shall: |
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| 277 | 277 | | (1) impose a 15 percent tax on the gross casino gaming |
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| 278 | 278 | | revenue, as defined by general law, of each casino license holder; |
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| 279 | 279 | | and |
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| 280 | 280 | | (2) impose a tax on sports wagering revenue. |
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| 281 | 281 | | (q) The state or a state agency or political subdivision of |
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| 282 | 282 | | this state may not impose a tax on the casino gaming revenue of a |
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| 283 | 283 | | casino license holder or a tax or fee on the non-gaming revenue of |
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| 284 | 284 | | casino license holder's operations at a destination resort, other |
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| 285 | 285 | | than the tax authorized by this section or a tax or fee generally |
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| 286 | 286 | | applicable to a business operating in this state. |
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| 287 | 287 | | (r) To fund and support the administration and management of |
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| 288 | 288 | | the Texas Gaming Commission, the legislature by general law shall |
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| 289 | 289 | | establish casino license application fees in the amount of: |
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| 290 | 290 | | (1) $2.5 million for an application to conduct casino |
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| 291 | 291 | | gaming at a destination resort in the Dallas-Fort Worth-Arlington |
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| 292 | 292 | | or Houston-The Woodlands-Sugar Land metropolitan statistical |
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| 293 | 293 | | areas; |
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| 294 | 294 | | (2) $1.25 million for an application to conduct |
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| 295 | 295 | | casino gaming at a destination resort in the San Antonio-New |
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| 296 | 296 | | Braunfels metropolitan statistical area; and |
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| 297 | 297 | | (3) $500,000 for an application to conduct casino |
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| 298 | 298 | | gaming at a destination resort in the Corpus Christi or |
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| 299 | 299 | | McAllen-Edinburg-Mission metropolitan statistical areas. |
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| 300 | 300 | | (s) The legislature by law shall annually allocate a portion |
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| 301 | 301 | | of the revenues received from taxes imposed on the gross casino |
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| 302 | 302 | | gaming revenue of casino license holders to be used as horse racing |
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| 303 | 303 | | purse money to promote the growth and sustainability of the horse |
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| 304 | 304 | | racing industry in this state. |
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| 305 | 305 | | SECTION 4. This proposed constitutional amendment shall be |
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| 306 | 306 | | submitted to the voters at an election to be held November 7, 2023. |
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| 307 | 307 | | The ballot shall be printed to permit voting for or against the |
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| 308 | 308 | | proposition: "The constitutional amendment to foster economic |
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| 309 | 309 | | development and job growth, provide tax relief and funding for |
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| 310 | 310 | | education and public safety programs, and reform and support the |
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| 311 | 311 | | horse racing industry by authorizing casino gaming at destination |
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| 312 | 312 | | resorts, authorizing sports wagering, creating the Texas Gaming |
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| 313 | 313 | | Commission to regulate casino gaming and sports wagering, requiring |
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| 314 | 314 | | a license to conduct casino gaming, and requiring the imposition of |
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| 315 | 315 | | a gaming tax, sports wagering tax, and license application fees." |
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