Bill Text: TX HJR155 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Proposing a constitutional amendment to foster economic development and job growth, provide tax relief and funding for education and public safety programs, support the horse racing industry, and reform horse racing and greyhound racing by authorizing casino gaming at destination resorts, authorizing sports wagering, authorizing Tribal-State compacts with federally recognized Indian tribes, and creating the Texas Gaming Commission to regulate casino gaming and sports wagering; requiring a license to conduct casino gaming; and requiring the imposition of a casino gaming tax, sports wagering tax, and license application fees.
Spectrum: Slight Partisan Bill (Democrat 4-2)
Status: (Introduced - Dead) 2023-05-12 - Postponed 1/12/27 10:00 AM [HJR155 Detail]
Download: Texas-2023-HJR155-Comm_Sub.html
| 88R19662 BEE-F | |||
| By: Geren, Rose, Davis, et al. | H.J.R. No. 155 | ||
| Substitute the following for H.J.R. No. 155: | |||
| By: Thompson of Harris | C.S.H.J.R. No. 155 | ||
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| proposing a constitutional amendment to foster economic | ||
| development and job growth, provide tax relief and funding for | ||
| education and public safety programs, support the horse racing | ||
| industry, and reform horse racing and greyhound racing by | ||
| authorizing casino gaming at destination resorts, authorizing | ||
| sports wagering, authorizing Tribal-State compacts with federally | ||
| recognized Indian tribes, and creating the Texas Gaming Commission | ||
| to regulate casino gaming and sports wagering; requiring a license | ||
| to conduct casino gaming; and requiring the imposition of a casino | ||
| gaming tax, sports wagering tax, and license application fees. | ||
| BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The legislature finds that: | ||
| (1) the qualified voters of this state should have the | ||
| opportunity to decide whether to authorize casino gaming at | ||
| destination resorts; and | ||
| (2) if authorized by those voters, casino gaming at | ||
| destination resorts should: | ||
| (A) serve the public interest by fostering | ||
| economic development and job growth and providing tax relief and | ||
| funding for education and public safety programs; | ||
| (B) be strictly regulated by a newly created | ||
| state agency empowered to adopt rules governing who may obtain a | ||
| casino license and the conduct of casino gaming in this state; | ||
| (C) be limited to areas of this state where the | ||
| voters approve a constitutional amendment authorizing casino | ||
| gaming or in which pari-mutuel wagering was previously approved; | ||
| (D) be limited to areas of this state where the | ||
| greatest positive economic impact from destination resort | ||
| development can be realized; | ||
| (E) use existing pari-mutuel racing licenses to | ||
| allow more immediate development of destination resorts and to more | ||
| quickly realize the related job growth and economic development; | ||
| (F) encourage participation by and competition | ||
| between multiple casino license holders; and | ||
| (G) result in the reform and revitalization of | ||
| the horse racing industry in this state and the industry's benefits | ||
| to agricultural businesses in this state. | ||
| SECTION 2. 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 3. Article III, Texas Constitution, is amended by | ||
| adding Section 47a to read as follows: | ||
| Sec. 47a. (a) In this section: | ||
| (1) "Casino" means licensed casino gaming facilities | ||
| within a destination resort. | ||
| (2) "Casino gaming" means any game of chance or | ||
| similar activity that involves placing a wager 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 other representation of value. The term does not include: | ||
| (A) bingo, a charitable raffle, or the state | ||
| lottery authorized under Section 47 of this article; or | ||
| (B) placing, receiving, or otherwise knowingly | ||
| transmitting a wager by a means that requires the use of the | ||
| Internet, except for offering slot machines, table games, or other | ||
| devices approved by the Texas Gaming Commission that use the | ||
| Internet or networking functionality but are played on-site at a | ||
| casino. | ||
| (3) "Casino license" means a license to conduct casino | ||
| gaming at a casino. | ||
| (4) "Destination resort" means a mixed-use | ||
| development consisting of casino gaming facilities and a | ||
| combination of tourism amenities and facilities, including hotels, | ||
| restaurants, meeting facilities, attractions, entertainment | ||
| facilities, and shopping centers. | ||
| (5) "Education" means: | ||
| (A) public education; | ||
| (B) higher education, including the creation of a | ||
| permanent fund for the benefit of higher education institutions not | ||
| included in the Permanent University Fund established by Section | ||
| 11, Article VII, of this constitution; and | ||
| (C) adult education related to responsible | ||
| gaming. | ||
| (6) "Indian lands" means land: | ||
| (A) on which gaming is permitted under the Indian | ||
| Gaming Regulatory Act (Pub. L. No. 100-497); or | ||
| (B) that was held in trust by the United States on | ||
| January 1, 1998, for the benefit of the Indian tribes pursuant to | ||
| the Ysleta del Sur Pueblo and Alabama and Coushatta Indian Tribes of | ||
| Texas Restoration Act (Pub. L. No. 100-89). | ||
| (7) "Metropolitan statistical area" means a | ||
| metropolitan statistical area designated by the United States | ||
| Office of Management and Budget as of July 1, 2021. | ||
| (8) "Person" includes an individual and any legal | ||
| entity, including a corporation, organization, partnership, or | ||
| association. | ||
| (9) "Public safety program" means a program for crime | ||
| prevention and law enforcement, including a program designed to | ||
| prevent and prosecute crimes involving human trafficking and money | ||
| laundering. | ||
| (10) "Racetrack association" means a person who holds | ||
| a license to conduct racing in this state. | ||
| (11) "Racing" means a horse race meeting or greyhound | ||
| race meeting with pari-mutuel wagering. | ||
| (12) "Sports wagering" means placing a wager on a live | ||
| sporting event, as defined by general law. | ||
| (b) To foster economic development and job growth, provide | ||
| tax relief and funding for education and public safety programs, | ||
| support the horse racing industry, reform horse racing and | ||
| greyhound racing, provide support for the Texas Gaming Commission, | ||
| and provide for destination resorts in populous metropolitan | ||
| statistical areas where pari-mutuel wagering was previously | ||
| approved, casino gaming is authorized under casino licenses for | ||
| casinos at eight destination resorts in the following locations: | ||
| (1) two destination resorts in the Dallas-Fort | ||
| Worth-Arlington metropolitan statistical area; | ||
| (2) two destination resorts in the Houston-The | ||
| Woodlands-Sugar Land metropolitan statistical area; | ||
| (3) one destination resort in the San Antonio-New | ||
| Braunfels metropolitan statistical area; | ||
| (4) one destination resort in the Corpus Christi | ||
| metropolitan statistical area; | ||
| (5) one destination resort in the | ||
| McAllen-Edinburg-Mission metropolitan statistical area; and | ||
| (6) one destination resort located in: | ||
| (A) a metropolitan statistical area not | ||
| specified in Subdivisions (1) through (5) of this subsection; and | ||
| (B) a county: | ||
| (i) no part of which is less than 100 miles | ||
| from a metropolitan statistical area specified in Subdivisions (1) | ||
| through (5) of this subsection; and | ||
| (ii) in which a majority of the qualified | ||
| voters voting on the question voted in favor of the amendment that | ||
| added this section to the constitution. | ||
| (c) The legislature shall: | ||
| (1) authorize sports wagering only in a place and | ||
| manner prescribed by general law; | ||
| (2) regulate the conduct of sports wagering by general | ||
| law; and | ||
| (3) direct the Texas Gaming Commission to adopt rules | ||
| consistent with general law to regulate sports wagering in this | ||
| state. | ||
| (d) The legislature by general law shall establish the Texas | ||
| Gaming Commission as a state agency with broad authority to adopt | ||
| and enforce the rules necessary to strictly regulate casino gaming | ||
| and sports wagering in accordance with this section. | ||
| (e) Notwithstanding any other provision of this | ||
| constitution, the Texas Gaming Commission is composed of five | ||
| members appointed by the governor with the advice and consent of the | ||
| senate to serve staggered six-year terms, as established under | ||
| general law. To be eligible for appointment and continued service, | ||
| a member must satisfy the qualifications established by the | ||
| legislature under that law. | ||
| (f) Notwithstanding any other provision of this | ||
| constitution, a racetrack association may designate a person to | ||
| apply for and hold a casino license under Subsection (g) of this | ||
| section by providing notice to the Texas Gaming Commission in the | ||
| manner prescribed by general law or commission rule consistent with | ||
| general law. A racetrack association may not change the person | ||
| designated in the provided notice unless the person declines the | ||
| designation and may not at any time designate more than one person | ||
| under this subsection. A racetrack association is ineligible to | ||
| hold a casino license if the racetrack association designates a | ||
| person for a license under this subsection unless the person | ||
| declines the designation. Nothing in this subsection affects | ||
| duties or rights established by contract or other law. | ||
| (g) Subject to this section and notwithstanding any other | ||
| provision of this constitution, the Texas Gaming Commission shall | ||
| issue a casino license to each initial qualified applicant. An | ||
| initial qualified applicant must: | ||
| (1) be of good moral character, be honest, and have | ||
| integrity; | ||
| (2) demonstrate that the issuance of the casino | ||
| license to the applicant will not be detrimental to the public | ||
| interest or the casino gaming industry; | ||
| (3) satisfy the qualifications and any other | ||
| requirements established under general law; | ||
| (4) demonstrate the financial ability to complete the | ||
| development of and operate the destination resort at which the | ||
| person will conduct casino gaming; | ||
| (5) have adequate experience in resort development, | ||
| resort management, and casino gaming operations; | ||
| (6) provide a detailed estimate of the applicant's | ||
| total new development investment in the destination resort; and | ||
| (7) satisfy the applicable requirements provided in | ||
| Subsection (h) of this section. | ||
| (h) An initial qualified applicant for a casino license must | ||
| satisfy the following requirements for the metropolitan | ||
| statistical area in which the destination resort will be located: | ||
| (1) for a casino license in the Dallas-Fort | ||
| Worth-Arlington metropolitan statistical area, the applicant must: | ||
| (A) be a racetrack association that on January 1, | ||
| 2022, held a license to conduct racing in the Dallas-Fort | ||
| Worth-Arlington metropolitan statistical area or the Laredo | ||
| metropolitan statistical area or be the person designated by the | ||
| racetrack association under Subsection (f) of this section; and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $2 billion, | ||
| including land acquisition; | ||
| (2) for a casino license in the Houston-The | ||
| Woodlands-Sugar Land metropolitan statistical area, the applicant | ||
| must: | ||
| (A) be a racetrack association that on January 1, | ||
| 2022, held a license to conduct racing in the Houston-The | ||
| Woodlands-Sugar Land metropolitan statistical area or the | ||
| Brownsville-Harlingen metropolitan statistical area or be the | ||
| person designated by the racetrack association under Subsection (f) | ||
| of this section; and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $2 billion, | ||
| including land acquisition; | ||
| (3) for a casino license in the San Antonio-New | ||
| Braunfels metropolitan statistical area, the applicant must: | ||
| (A) be a racetrack association that on January 1, | ||
| 2022, held a license to conduct racing in the San Antonio-New | ||
| Braunfels metropolitan statistical area or be the person designated | ||
| by the racetrack association under Subsection (f) of this section; | ||
| and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $1 billion, | ||
| including land acquisition; | ||
| (4) for a casino license in the Corpus Christi | ||
| metropolitan statistical area, the applicant must: | ||
| (A) be a racetrack association that on January 1, | ||
| 2022, held a license to conduct racing in the Corpus Christi | ||
| metropolitan statistical area or be the person designated by the | ||
| racetrack association under Subsection (f) of this section; and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $250 million, | ||
| including land acquisition; | ||
| (5) for a casino license in the | ||
| McAllen-Edinburg-Mission metropolitan statistical area, the | ||
| applicant must: | ||
| (A) be a racetrack association that on January 1, | ||
| 2022, held a license to conduct racing in the | ||
| McAllen-Edinburg-Mission metropolitan statistical area or be the | ||
| person designated by the racetrack association under Subsection (f) | ||
| of this section; and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $250 million, | ||
| including land acquisition; and | ||
| (6) for a casino license authorized by Subsection | ||
| (b)(6) of this section, the applicant must: | ||
| (A) be selected through an open bid process | ||
| regulated by general law and commission rule consistent with | ||
| general law; and | ||
| (B) commit to investing for new development of | ||
| the destination resort an amount equal to at least $1 billion, | ||
| including land acquisition. | ||
| (i) A destination resort at which casino gaming is conducted | ||
| under a casino license authorized by Subsections (b)(1)-(5) of this | ||
| section may be located anywhere in the metropolitan statistical | ||
| area for which the license is issued. | ||
| (j) Consistent with this section, the legislature by | ||
| general law: | ||
| (1) shall regulate casino gaming and sports wagering | ||
| in this state by prescribing: | ||
| (A) additional requirements governing the | ||
| issuance and continued qualification for holding a casino license; | ||
| (B) restrictions on the transfer of casino | ||
| licenses; | ||
| (C) definitions of terms necessary or useful to | ||
| implement this section and consistent with this section, including | ||
| the terms casino, casino gaming, casino license, destination | ||
| resort, location, and sports wagering; | ||
| (D) qualifications for the issuance of new casino | ||
| licenses to persons who are not initial qualified applicants under | ||
| Subsection (g) of this section or do not satisfy an applicable | ||
| requirement of Subsection (h) of this section as initial qualified | ||
| applicants, provided that the number of active casino licenses, as | ||
| defined by the legislature, may not at any time exceed the number of | ||
| casino licenses for destination resorts authorized by Subsection | ||
| (b) of this section; and | ||
| (E) restrictions and penalties for the unlawful | ||
| conduct of casino gaming and sports wagering; and | ||
| (2) may delegate to the Texas Gaming Commission the | ||
| authority to adopt rules regulating casino gaming and sports | ||
| wagering in accordance with this section. | ||
| (k) State or local public money or facilities developed or | ||
| built with state or local public assistance or tax incentives of any | ||
| kind may not be used for the development or operation of a | ||
| destination resort. The legislature by general law shall prescribe | ||
| procedures and enforcement measures to ensure that: | ||
| (1) a casino license applicant has the financial | ||
| capability of satisfying the minimum investment specified in | ||
| Subsection (h) of this section; and | ||
| (2) each casino license holder satisfies the | ||
| investment required under Subsection (h) of this section. | ||
| (l) A person may not have an ownership interest in more than | ||
| two casino license holders. The legislature by general law shall: | ||
| (1) define ownership interest for purposes of this | ||
| subsection; and | ||
| (2) prescribe the consequences of violating this | ||
| subsection. | ||
| (m) The legislature by general law shall direct the Texas | ||
| Gaming Commission to adopt rules ensuring that a person who holds a | ||
| casino license and a license to conduct horse racing at a class 1 | ||
| racetrack, as that term is defined by general law, maintains a | ||
| number of live horse racing dates at least equivalent to the number | ||
| of live horse racing dates held at the racetrack in 2022. | ||
| (n) A racetrack association that holds a license to conduct | ||
| greyhound racing shall cease all racing operations and surrender | ||
| that license as a condition of holding, or designating a person to | ||
| hold, a casino license. A racetrack association that holds a | ||
| license to conduct racing in the Laredo metropolitan statistical | ||
| area shall cease all racing operations and surrender that license | ||
| as a condition of holding, or designating a person to hold, a casino | ||
| license. | ||
| (o) The legislature by general law shall ensure the Texas | ||
| Racing Commission or its successor regulates the racing operations | ||
| of each racetrack association that holds a casino license and the | ||
| Texas Gaming Commission regulates casino gaming and sports wagering | ||
| operations of the racetrack association. | ||
| (p) The legislature by general law shall impose: | ||
| (1) a 15 percent tax on the gross casino gaming | ||
| revenue, as defined by general law, of each casino license holder; | ||
| and | ||
| (2) a tax in the amount provided by general law on | ||
| gross sports wagering revenue, as defined by general law. | ||
| (q) This state or a state agency or political subdivision of | ||
| this state may not impose a tax on the casino gaming revenue or | ||
| sports wagering revenue of a casino license holder or a tax or fee | ||
| on the non-casino gaming revenue or non-sports wagering revenue of | ||
| a casino license holder's operations at a destination resort, other | ||
| than the taxes authorized by this section or a tax or fee generally | ||
| applicable to a business operating in this state. | ||
| (r) To fund and support the administration and management of | ||
| the Texas Gaming Commission, the legislature by general law shall | ||
| establish casino license application fees in the amount of: | ||
| (1) $2.5 million for an application to conduct casino | ||
| gaming at a destination resort in the Dallas-Fort Worth-Arlington | ||
| or Houston-The Woodlands-Sugar Land metropolitan statistical area; | ||
| (2) $1.25 million for an application to conduct casino | ||
| gaming at a destination resort in the San Antonio-New Braunfels | ||
| metropolitan statistical area; | ||
| (3) $1.25 million for an application to conduct casino | ||
| gaming at a destination resort under a casino license authorized by | ||
| Subsection (b)(6) of this section; and | ||
| (4) $500,000 for an application to conduct casino | ||
| gaming at a destination resort in the Corpus Christi or | ||
| McAllen-Edinburg-Mission metropolitan statistical area. | ||
| (s) Notwithstanding any other provision of this | ||
| constitution, the legislature by law shall allocate a portion of | ||
| the revenues received from taxes imposed on the gross casino gaming | ||
| revenue of casino license holders to be used as horse racing purse | ||
| money for the public purpose of promoting the growth and | ||
| sustainability of the horse racing industry in this state. | ||
| (t) At the request of any of the three federally recognized | ||
| Indian tribes with Indian lands in this state, accompanied by or in | ||
| the form of a duly enacted resolution of the tribe's governing body, | ||
| the governor shall negotiate in good faith, on behalf of this state, | ||
| a Tribal-State compact as prescribed by the Indian Gaming | ||
| Regulatory Act (Pub. L. No. 100-497), consistent with the | ||
| provisions of 25 U.S.C. Section 2710(d). On the execution of a | ||
| Tribal-State compact, the governor and the elected leader of the | ||
| requesting Indian tribe shall submit the compact to the United | ||
| States secretary of the interior. | ||
| (u) For the purpose of resolving a tribe's claim that the | ||
| governor has not negotiated in good faith with the tribe as required | ||
| by Subsection (t) of this section, this state consents to the | ||
| jurisdiction of the District Court of the United States with | ||
| jurisdiction in the county where the Indian lands are located or, if | ||
| the federal court lacks jurisdiction, to the jurisdiction of a | ||
| district court in Travis County, and the sovereign immunity of this | ||
| state is waived for that purpose. | ||
| (v) If either the Alabama-Coushatta Tribe of Texas or the | ||
| Ysleta del Sur Pueblo is not authorized to offer gaming under the | ||
| Indian Gaming Regulatory Act (Pub. L. No. 100-497) at the time this | ||
| section takes effect, gaming activities by those tribes shall be | ||
| governed by the Ysleta Del Sur Pueblo and Alabama and Coushatta | ||
| Indian Tribes of Texas Restoration Act (Pub. L. No. 100-89). | ||
| (w) If any provision of this section or its application to | ||
| any person or circumstance is held invalid, the invalidity does not | ||
| affect other provisions or applications of this section that can be | ||
| given effect without the invalid provision or application, and to | ||
| this end the provisions of this section are declared to be | ||
| severable. | ||
| SECTION 4. This proposed constitutional amendment shall be | ||
| submitted to the voters at an election to be held November 7, 2023. | ||
| The ballot shall be printed to permit voting for or against the | ||
| proposition: "The constitutional amendment to foster economic | ||
| development and job growth, provide tax relief and funding for | ||
| education and public safety programs, support the horse racing | ||
| industry, and reform horse racing and greyhound racing by | ||
| authorizing casino gaming at destination resorts, authorizing | ||
| sports wagering, authorizing Tribal-State compacts with federally | ||
| recognized Indian tribes, and creating the Texas Gaming Commission | ||
| to regulate casino gaming and sports wagering; requiring a license | ||
| to conduct casino gaming; and requiring the imposition of a casino | ||
| gaming tax, sports wagering tax, and license application fees." | ||
