| |
| |
|
|
A JOINT RESOLUTION
|
|
|
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, creating the |
|
|
Texas Gaming Commission, authorizing sports wagering, requiring a |
|
|
license to conduct casino gaming, requiring the imposition of |
|
|
casino gaming and sports wagering taxes, requiring license |
|
|
application fees, and authorizing Tribal-State compacts related to |
|
|
gaming. |
|
|
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 regulating who may obtain a |
|
|
casino license and the conduct of casino gaming in this state; |
|
|
(C) be limited to areas of this state in which the |
|
|
voters approve a constitutional amendment authorizing casino |
|
|
gaming or in which pari-mutuel wagering has previously been |
|
|
approved; |
|
|
(D) be limited to areas of this state in which the |
|
|
greatest positive economic impact from destination resort |
|
|
development can be realized; |
|
|
(E) utilize some 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 facilities located at a |
|
|
destination resort at which casino gaming is conducted. |
|
|
(2) "Casino gaming" means any game of chance or |
|
|
similar activity that involves placing a bet for consideration. |
|
|
The term includes wagering on any type of slot machine or table |
|
|
game, as defined by the legislature, using money, casino credit, or |
|
|
any 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 bet or wager by a means that requires the use of the |
|
|
Internet, except for offering slot machines, table games, or other |
|
|
devices the Texas Gaming Commission approves that use the Internet |
|
|
or networking functionality but are played onsite 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 various tourism amenities and facilities, including |
|
|
hotels, restaurants, meeting facilities, attractions, |
|
|
entertainment facilities, and shopping centers. |
|
|
(5) "Education" means public education, 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 Article VII, Texas |
|
|
Constitution, and 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 benefit of the Indian tribe 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, such as 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 in which pari-mutuel wagering previously has been |
|
|
approved, casino gaming is authorized pursuant to casino licenses |
|
|
for casinos at destination resorts as follows: |
|
|
(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 at a location in: |
|
|
(A) a metropolitan statistical area not |
|
|
specified in Subdivisions (1) through (5); and |
|
|
(B) a county: |
|
|
(i) no point of which is less than 100 miles |
|
|
from a point in a metropolitan statistical area specified in |
|
|
Subdivisions (1) through (5); 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 by general law the conduct of sports |
|
|
wagering; and |
|
|
(3) direct the Texas Gaming Commission to promulgate |
|
|
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 terms of six years each, 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. A racetrack association 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 designation is declined by the person. 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 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 initial |
|
|
qualified applicant must: |
|
|
(A) be a racetrack association that on January 1, |
|
|
2022, held a license to conduct racing anywhere 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 initial |
|
|
qualified applicant must: |
|
|
(A) be a racetrack association that on January 1, |
|
|
2022, held a license to conduct racing anywhere 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 initial qualified |
|
|
applicant must: |
|
|
(A) be a racetrack association that on January 1, |
|
|
2022, held a license to conduct racing anywhere 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 initial qualified applicant |
|
|
must: |
|
|
(A) be a racetrack association that on January 1, |
|
|
2022, held a license to conduct racing anywhere 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 |
|
|
initial qualified applicant must: |
|
|
(A) be a racetrack association that on January 1, |
|
|
2022, held a license to conduct racing anywhere 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 in Subsection |
|
|
(b)(6), the initial qualified 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 in Subdivisions (1) through (5) |
|
|
of Subsection (b) may be located anywhere within 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, such as the terms casino, casino gaming, |
|
|
casino license, destination resort, location, and sports wagering; |
|
|
(D) qualifications for the issuance of new casino |
|
|
licenses to persons that are not initial qualified applicants under |
|
|
Subsection (g) of this section, provided that the number of active |
|
|
casino licenses, as defined by the legislature, may not at any one |
|
|
time exceed the number of casino licenses for destination resorts |
|
|
authorized in 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 prescribe 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 to ensure 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 that is 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: |
|
|
(1) impose a 15 percent tax on the gross casino gaming |
|
|
revenue, as defined by general law, of each casino license holder; |
|
|
and |
|
|
(2) impose a tax on gross sports wagering revenue, as |
|
|
defined by general law. |
|
|
(q) The 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 |
|
|
areas; |
|
|
(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 pursuant to a casino license |
|
|
authorized in Subsection (b)(6); 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 areas. |
|
|
(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, accompanied by or in the form of a duly |
|
|
enacted resolution of the tribe's governing body, of any of the |
|
|
three federally recognized Indian tribes with Indian lands in this |
|
|
state, 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. 100-479), consistent with the provisions in |
|
|
25 U.S.C. Section 2710(d). Upon 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), 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 the state is waived for that |
|
|
purpose. |
|
|
(v) If either the Alabama-Coushatta Tribe of Texas or the |
|
|
Ysleta del Sur Pueblo are not authorized to offer gaming under the |
|
|
Indian Gaming Regulatory Act (Pub. L. 100-479) 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, 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." |