1 | 1 | | 89R5646 BEE-F |
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2 | 2 | | By: Alvarado S.J.R. No. 16 |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A JOINT RESOLUTION |
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8 | 8 | | proposing a constitutional amendment to foster economic |
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9 | 9 | | development and job growth, provide tax relief and funding for |
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10 | 10 | | education and public safety programs, and reform and support the |
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11 | 11 | | horse racing industry by authorizing casino gaming at destination |
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12 | 12 | | resorts, authorizing sports wagering, and creating the Texas Gaming |
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13 | 13 | | Commission to regulate casino gaming and sports wagering; requiring |
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14 | 14 | | a license to conduct casino gaming; requiring the imposition of a |
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15 | 15 | | casino gaming tax, sports wagering tax, and license application |
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16 | 16 | | fees. |
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17 | 17 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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18 | 18 | | SECTION 1. The legislature finds that: |
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19 | 19 | | (1) the qualified voters of this state should have the |
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20 | 20 | | opportunity to decide whether to authorize casino gaming at |
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21 | 21 | | destination resorts; and |
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22 | 22 | | (2) if authorized by those voters, casino gaming at |
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23 | 23 | | destination resorts should: |
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24 | 24 | | (A) serve the public interest by fostering |
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25 | 25 | | economic development and job growth and providing tax relief and |
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26 | 26 | | funding for education and public safety programs; |
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27 | 27 | | (B) be strictly regulated by a newly created |
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28 | 28 | | state agency empowered to adopt rules governing who may obtain a |
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29 | 29 | | casino license and the conduct of casino gaming in this state; |
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30 | 30 | | (C) be limited to areas of this state where the |
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31 | 31 | | voters previously approved pari-mutuel wagering; |
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32 | 32 | | (D) be limited to areas of this state where the |
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33 | 33 | | greatest positive economic impact from destination resort |
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34 | 34 | | development can be realized; |
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35 | 35 | | (E) use some existing pari-mutuel racing |
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36 | 36 | | licenses to allow more immediate development of destination resorts |
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37 | 37 | | and to more quickly realize the related job growth and economic |
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38 | 38 | | development; |
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39 | 39 | | (F) encourage participation by and competition |
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40 | 40 | | between multiple casino license holders; and |
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41 | 41 | | (G) result in the reform and revitalization of |
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42 | 42 | | the horse racing industry in this state and the industry's benefits |
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43 | 43 | | to agricultural businesses in this state. |
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44 | 44 | | SECTION 2. Section 47(a), Article III, Texas Constitution, |
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45 | 45 | | is amended to read as follows: |
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46 | 46 | | (a) The Legislature shall pass laws prohibiting lotteries |
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47 | 47 | | and gift enterprises in this State other than those authorized by |
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48 | 48 | | Subsections (b), (d), (d-1), and (e) of this section and Section 47a |
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49 | 49 | | of this article. |
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50 | 50 | | SECTION 3. Article III, Texas Constitution, is amended by |
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51 | 51 | | adding Section 47a to read as follows: |
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52 | 52 | | Sec. 47a. (a) In this section: |
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53 | 53 | | (1) "Casino" means a licensed facility located in a |
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54 | 54 | | destination resort at which casino gaming is conducted. |
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55 | 55 | | (2) "Casino gaming" means any game of chance or |
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56 | 56 | | similar activity that involves placing a wager for consideration. |
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57 | 57 | | The term includes wagering on any type of slot machine or table |
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58 | 58 | | game, as defined by the legislature, using money, casino credit, or |
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59 | 59 | | any other representation of value. The term does not include: |
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60 | 60 | | (A) bingo, a charitable raffle, or the state |
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61 | 61 | | lottery authorized under Section 47 of this article; or |
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62 | 62 | | (B) placing, receiving, or otherwise knowingly |
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63 | 63 | | transmitting a wager by a means that requires the use of the |
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64 | 64 | | Internet, except for offering slot machines, table games, or other |
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65 | 65 | | devices the Texas Gaming Commission approves that use the Internet |
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66 | 66 | | or networking functionality but are played on-site at a casino. |
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67 | 67 | | (3) "Casino license" means a license to conduct casino |
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68 | 68 | | gaming at a casino. |
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69 | 69 | | (4) "Destination resort" means a mixed-use |
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70 | 70 | | development consisting of casino gaming facilities and a |
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71 | 71 | | combination of tourism amenities and facilities, including hotels, |
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72 | 72 | | restaurants, meeting facilities, attractions, entertainment |
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73 | 73 | | facilities, and shopping centers. |
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74 | 74 | | (5) "Education" means: |
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75 | 75 | | (A) public education; |
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76 | 76 | | (B) public higher education; and |
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77 | 77 | | (C) adult education related to responsible |
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78 | 78 | | gaming. |
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79 | 79 | | (6) "Metropolitan statistical area" means a |
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80 | 80 | | metropolitan statistical area designated by the United States |
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81 | 81 | | Office of Management and Budget as of July 1, 2021. |
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82 | 82 | | (7) "Person" includes an individual and any legal |
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83 | 83 | | entity, including a corporation, organization, partnership, or |
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84 | 84 | | association. |
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85 | 85 | | (8) "Public safety program" means a program for crime |
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86 | 86 | | prevention and law enforcement, including a program designed to |
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87 | 87 | | prevent and prosecute crimes involving human trafficking and money |
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88 | 88 | | laundering. |
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89 | 89 | | (9) "Racetrack association" means a person who holds a |
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90 | 90 | | license to conduct racing in this state. |
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91 | 91 | | (10) "Racing" means a horse race meeting or greyhound |
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92 | 92 | | race meeting with pari-mutuel wagering. |
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93 | 93 | | (11) "Sports wagering" means placing a wager on the |
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94 | 94 | | outcome of a live sporting event, as defined by general law. |
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95 | 95 | | (b) To foster economic development and job growth, provide |
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96 | 96 | | tax relief and funding for education and public safety programs, |
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97 | 97 | | reform and support the horse racing industry, and provide for |
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98 | 98 | | destination resorts in populous metropolitan statistical areas |
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99 | 99 | | where pari-mutuel wagering was previously approved, casino gaming |
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100 | 100 | | is authorized under casino licenses for casinos at seven |
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101 | 101 | | destination resorts in the following locations: |
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102 | 102 | | (1) two destination resorts in the Dallas-Fort |
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103 | 103 | | Worth-Arlington metropolitan statistical area; |
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104 | 104 | | (2) two destination resorts in the Houston-The |
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105 | 105 | | Woodlands-Sugar Land metropolitan statistical area; |
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106 | 106 | | (3) one destination resort in the San Antonio-New |
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107 | 107 | | Braunfels metropolitan statistical area; |
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108 | 108 | | (4) one destination resort in the Corpus Christi |
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109 | 109 | | metropolitan statistical area; and |
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110 | 110 | | (5) one destination resort in the |
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111 | 111 | | McAllen-Edinburg-Mission metropolitan statistical area. |
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112 | 112 | | (c) The legislature shall: |
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113 | 113 | | (1) authorize sports wagering only in a place and |
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114 | 114 | | manner prescribed by general law; |
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115 | 115 | | (2) regulate the conduct of sports wagering by general |
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116 | 116 | | law; and |
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117 | 117 | | (3) direct the Texas Gaming Commission to adopt rules |
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118 | 118 | | consistent with general law to regulate sports wagering in this |
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119 | 119 | | state. |
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120 | 120 | | (d) The legislature by general law shall establish the Texas |
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121 | 121 | | Gaming Commission as a state agency with broad authority to adopt |
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122 | 122 | | and enforce the rules necessary to strictly regulate casino gaming |
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123 | 123 | | and sports wagering in accordance with this section. |
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124 | 124 | | (e) Notwithstanding any other provision of this |
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125 | 125 | | constitution, the Texas Gaming Commission is composed of five |
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126 | 126 | | members appointed by the governor with the advice and consent of the |
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127 | 127 | | senate to serve staggered six-year terms, as established under |
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128 | 128 | | general law. To be eligible for appointment and continued service, |
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129 | 129 | | a member must satisfy the qualifications the legislature |
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130 | 130 | | establishes under that law. |
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131 | 131 | | (f) Notwithstanding any other provision of this |
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132 | 132 | | constitution, a racetrack association may designate a person to |
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133 | 133 | | apply for and hold a casino license under Subsection (g) of this |
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134 | 134 | | section by providing notice to the Texas Gaming Commission in the |
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135 | 135 | | manner prescribed by general law or commission rule consistent with |
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136 | 136 | | general law. A racetrack association may not change the person |
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137 | 137 | | designated in the provided notice unless the person declines the |
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138 | 138 | | designation and may not at any time designate more than one person |
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139 | 139 | | under this subsection. A racetrack association is ineligible to |
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140 | 140 | | hold a casino license if the racetrack association designates a |
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141 | 141 | | person for a license under this subsection unless the person |
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142 | 142 | | declines the designation. Nothing in this subsection affects |
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143 | 143 | | duties or rights established by contract or other law. |
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144 | 144 | | (g) Subject to this section and notwithstanding any other |
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145 | 145 | | provision of this constitution, the Texas Gaming Commission shall |
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146 | 146 | | issue a casino license to each initial qualified applicant. An |
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147 | 147 | | initial qualified applicant must: |
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148 | 148 | | (1) be of good moral character, be honest, and have |
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149 | 149 | | integrity; |
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150 | 150 | | (2) demonstrate the issuance of the casino license to |
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151 | 151 | | the applicant will not be detrimental to the public interest or the |
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152 | 152 | | casino gaming industry; |
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153 | 153 | | (3) satisfy the qualifications and any other |
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154 | 154 | | requirements established under general law; |
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155 | 155 | | (4) demonstrate the financial ability to complete the |
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156 | 156 | | development of and operate the destination resort at which the |
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157 | 157 | | person will conduct casino gaming; |
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158 | 158 | | (5) demonstrate adequate experience in resort |
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159 | 159 | | development, resort management, and casino gaming operations; |
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160 | 160 | | (6) provide a detailed estimate of the applicant's |
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161 | 161 | | total new development investment in the destination resort; and |
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162 | 162 | | (7) satisfy the applicable requirements provided in |
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163 | 163 | | Subsection (h) of this section. |
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164 | 164 | | (h) A qualified applicant for an initial casino license must |
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165 | 165 | | satisfy the following requirements for the metropolitan |
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166 | 166 | | statistical area in which the destination resort will be located: |
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167 | 167 | | (1) for a casino license in the Dallas-Fort |
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168 | 168 | | Worth-Arlington metropolitan statistical area, the applicant must: |
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169 | 169 | | (A) be a racetrack association that on January 1, |
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170 | 170 | | 2024, held a license to conduct racing in the Dallas-Fort |
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171 | 171 | | Worth-Arlington metropolitan statistical area or the Laredo |
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172 | 172 | | metropolitan statistical area or be the person designated by the |
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173 | 173 | | racetrack association under Subsection (f) of this section; and |
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174 | 174 | | (B) commit to investing for new development of |
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175 | 175 | | the destination resort an amount equal to at least $2 billion, |
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176 | 176 | | including land acquisition; |
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177 | 177 | | (2) for a casino license in the Houston-The |
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178 | 178 | | Woodlands-Sugar Land metropolitan statistical area, the applicant |
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179 | 179 | | must: |
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180 | 180 | | (A) be a racetrack association that on January 1, |
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181 | 181 | | 2024, held a license to conduct racing in the Houston-The |
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182 | 182 | | Woodlands-Sugar Land metropolitan statistical area or the |
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183 | 183 | | Brownsville-Harlingen metropolitan statistical area or be the |
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184 | 184 | | person designated by the racetrack association under Subsection (f) |
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185 | 185 | | of this section; and |
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186 | 186 | | (B) commit to investing for new development of |
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187 | 187 | | the destination resort an amount equal to at least $2 billion, |
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188 | 188 | | including land acquisition; |
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189 | 189 | | (3) for a casino license in the San Antonio-New |
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190 | 190 | | Braunfels metropolitan statistical area, the applicant must: |
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191 | 191 | | (A) be a racetrack association that on January 1, |
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192 | 192 | | 2024, held a license to conduct racing in the San Antonio-New |
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193 | 193 | | Braunfels metropolitan statistical area or be the person designated |
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194 | 194 | | by the racetrack association under Subsection (f) of this section; |
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195 | 195 | | and |
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196 | 196 | | (B) commit to investing for new development of |
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197 | 197 | | the destination resort an amount equal to at least $1 billion, |
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198 | 198 | | including land acquisition; |
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199 | 199 | | (4) for a casino license in the Corpus Christi |
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200 | 200 | | metropolitan statistical area, the applicant must: |
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201 | 201 | | (A) be a racetrack association that on January 1, |
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202 | 202 | | 2024, held a license to conduct racing in the Corpus Christi |
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203 | 203 | | metropolitan statistical area or be the person designated by the |
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204 | 204 | | racetrack association under Subsection (f) of this section; and |
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205 | 205 | | (B) commit to investing for new development of |
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206 | 206 | | the destination resort an amount equal to at least $250 million, |
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207 | 207 | | including land acquisition; and |
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208 | 208 | | (5) for a casino license in the |
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209 | 209 | | McAllen-Edinburg-Mission metropolitan statistical area, the |
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210 | 210 | | applicant must: |
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211 | 211 | | (A) be a racetrack association that on January 1, |
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212 | 212 | | 2024, held a license to conduct racing in the |
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213 | 213 | | McAllen-Edinburg-Mission metropolitan statistical area or be the |
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214 | 214 | | person designated by the racetrack association under Subsection (f) |
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215 | 215 | | of this section; and |
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216 | 216 | | (B) commit to investing for new development of |
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217 | 217 | | the destination resort an amount equal to at least $250 million, |
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218 | 218 | | including land acquisition. |
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219 | 219 | | (i) A destination resort at which casino gaming is conducted |
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220 | 220 | | under a casino license authorized by Subsection (b) of this section |
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221 | 221 | | may be located anywhere in the metropolitan statistical area for |
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222 | 222 | | which the license is issued. |
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223 | 223 | | (j) Consistent with this section, the legislature by |
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224 | 224 | | general law: |
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225 | 225 | | (1) shall regulate casino gaming and sports wagering |
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226 | 226 | | in this state by prescribing: |
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227 | 227 | | (A) additional requirements governing the |
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228 | 228 | | issuance of and continued qualification for holding a casino |
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229 | 229 | | license; |
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230 | 230 | | (B) restrictions on the transfer of casino |
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231 | 231 | | licenses; |
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232 | 232 | | (C) definitions of terms necessary or useful to |
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233 | 233 | | implement this section and consistent with this section, including |
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234 | 234 | | the terms casino, casino gaming, casino license, destination |
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235 | 235 | | resort, and sports wagering; |
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236 | 236 | | (D) qualifications for the issuance of new casino |
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237 | 237 | | licenses to persons who are not initial qualified applicants under |
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238 | 238 | | Subsection (g) of this section, provided that the number of active |
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239 | 239 | | casino licenses, as defined by the legislature, may not at any time |
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240 | 240 | | exceed the number of casino licenses for destination resorts |
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241 | 241 | | authorized by Subsection (b) of this section; and |
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242 | 242 | | (E) restrictions and penalties for the unlawful |
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243 | 243 | | conduct of casino gaming and sports wagering; and |
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244 | 244 | | (2) may delegate to the Texas Gaming Commission the |
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245 | 245 | | authority to adopt rules regulating casino gaming and sports |
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246 | 246 | | wagering in accordance with this section. |
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247 | 247 | | (k) State or local public money or facilities developed or |
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248 | 248 | | built with state or local public assistance or tax incentives of any |
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249 | 249 | | kind may not be used for the development or operation of a |
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250 | 250 | | destination resort. The legislature by general law shall prescribe |
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251 | 251 | | procedures and enforcement measures to ensure that: |
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252 | 252 | | (1) a casino license applicant has the financial |
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253 | 253 | | capability of satisfying the minimum investment specified in |
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254 | 254 | | Subsection (h) of this section; and |
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255 | 255 | | (2) each casino license holder satisfies the |
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256 | 256 | | investment required under Subsection (h) of this section. |
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257 | 257 | | (l) A person may not have an ownership interest in more than |
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258 | 258 | | two casino license holders. The legislature by general law shall: |
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259 | 259 | | (1) define ownership interest for purposes of this |
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260 | 260 | | subsection; and |
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261 | 261 | | (2) prescribe the consequences of violating this |
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262 | 262 | | subsection. |
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263 | 263 | | (m) The legislature by general law shall direct the Texas |
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264 | 264 | | Gaming Commission to adopt rules ensuring a person who holds a |
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265 | 265 | | casino license and a license to conduct horse racing at a class 1 |
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266 | 266 | | racetrack, as that term is defined by general law, maintains a |
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267 | 267 | | number of live horse racing dates at least equivalent to the number |
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268 | 268 | | of live horse racing dates held at the racetrack in 2024. |
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269 | 269 | | (n) The legislature by general law shall require a racetrack |
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270 | 270 | | association that: |
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271 | 271 | | (1) holds a license to conduct greyhound racing to |
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272 | 272 | | cease all racing operations and surrender that license as a |
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273 | 273 | | condition of holding, or designating a person to hold, a casino |
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274 | 274 | | license; and |
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275 | 275 | | (2) holds a license to conduct racing in the Laredo |
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276 | 276 | | metropolitan statistical area to cease all racing operations and |
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277 | 277 | | surrender that license as a condition of holding, or designating a |
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278 | 278 | | person to hold, a casino license. |
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279 | 279 | | (o) The legislature by general law shall ensure the Texas |
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280 | 280 | | Racing Commission or its successor regulates the racing operations |
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281 | 281 | | of each racetrack association that holds a casino license and the |
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282 | 282 | | Texas Gaming Commission regulates casino gaming and sports wagering |
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283 | 283 | | operations of the racetrack association. |
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284 | 284 | | (p) The legislature by general law shall impose: |
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285 | 285 | | (1) a 15 percent tax on the gross casino gaming |
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286 | 286 | | revenue, as defined by general law, of each casino license holder; |
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287 | 287 | | and |
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288 | 288 | | (2) a tax in the amount provided by general law on |
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289 | 289 | | gross sports wagering revenue, as defined by general law. |
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290 | 290 | | (q) This state or a state agency or political subdivision of |
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291 | 291 | | this state may not impose a tax on the casino gaming revenue of a |
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292 | 292 | | casino license holder or a tax or fee on the non-casino gaming |
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293 | 293 | | revenue of a casino license holder's operations at a destination |
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294 | 294 | | resort, other than the taxes authorized by this section or a tax or |
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295 | 295 | | fee generally applicable to a business operating in this state. |
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296 | 296 | | (r) To fund and support the administration and management of |
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297 | 297 | | the Texas Gaming Commission, the legislature by general law shall |
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298 | 298 | | establish casino license application fees in the amount of: |
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299 | 299 | | (1) $2.5 million for an application to conduct casino |
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300 | 300 | | gaming at a destination resort in the Dallas-Fort Worth-Arlington |
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301 | 301 | | or Houston-The Woodlands-Sugar Land metropolitan statistical area; |
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302 | 302 | | (2) $1.25 million for an application to conduct casino |
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303 | 303 | | gaming at a destination resort in the San Antonio-New Braunfels |
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304 | 304 | | metropolitan statistical area; and |
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305 | 305 | | (3) $500,000 for an application to conduct casino |
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306 | 306 | | gaming at a destination resort in the Corpus Christi or |
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307 | 307 | | McAllen-Edinburg-Mission metropolitan statistical area. |
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308 | 308 | | (s) Notwithstanding any other provision of this |
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309 | 309 | | constitution, the legislature by law shall allocate a portion of |
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310 | 310 | | the annual revenues received from taxes imposed on the gross casino |
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311 | 311 | | gaming revenue of casino license holders to be used as horse racing |
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312 | 312 | | purse money for the public purpose of promoting the growth and |
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313 | 313 | | sustainability of the horse racing industry in this state. |
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314 | 314 | | SECTION 4. This proposed constitutional amendment shall be |
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315 | 315 | | submitted to the voters at an election to be held November 4, 2025. |
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316 | 316 | | The ballot shall be printed to permit voting for or against the |
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317 | 317 | | proposition: "The constitutional amendment to foster economic |
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318 | 318 | | development and job growth, provide tax relief and funding for |
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319 | 319 | | education and public safety programs, and reform and support the |
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320 | 320 | | horse racing industry by authorizing casino gaming at destination |
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321 | 321 | | resorts, authorizing sports wagering, and creating the Texas Gaming |
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322 | 322 | | Commission to regulate casino gaming and sports wagering; requiring |
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323 | 323 | | a license to conduct casino gaming; and requiring the imposition of |
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324 | 324 | | a casino gaming tax, sports wagering tax, and license application |
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325 | 325 | | fees." |
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