Bill Text: TX HJR97 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Proposing a constitutional amendment to foster economic development and job growth, provide tax relief and funding for education and public safety programs, and reform and support the horse racing industry by authorizing casino gaming at destination resorts, creating the Texas Gaming Commission, authorizing sports wagering, requiring a license to conduct casino gaming, and requiring the imposition of a gaming and sports wagering tax and license application fees.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2023-03-03 - Referred to State Affairs [HJR97 Detail]
Download: Texas-2023-HJR97-Introduced.html
By: Geren | H.J.R. No. 97 |
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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, and reform and support the | ||
horse racing industry by authorizing casino gaming at destination | ||
resorts, creating the Texas Gaming Commission, authorizing sports | ||
wagering, requiring a license to conduct casino gaming, and | ||
requiring the imposition of a gaming and 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 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 | ||
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, public higher | ||
education, and adult education related to responsible gaming. | ||
(6) "Metropolitan statistical area" means a | ||
metropolitan statistical area designated by the United States | ||
Office of Management and Budget as of July 1, 2021. | ||
(7) "Person" includes an individual and any legal | ||
entity, such as a corporation, organization, partnership, or | ||
association. | ||
(8) "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. | ||
(9) "Racetrack association" means a person who holds | ||
a license to conduct racing in this state. | ||
(10) "Racing" means a horse race meeting or greyhound | ||
race meeting with pari-mutuel wagering. | ||
(11) "Sports wagering" means wagering on the outcome | ||
of 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, | ||
reform and support the horse racing industry, 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; and | ||
(5) one destination resort in the | ||
McAllen-Edinburg-Mission metropolitan statistical area. | ||
(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) 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) 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, 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; and | ||
(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. | ||
(i) A destination resort at which casino gaming is conducted | ||
under a casino license 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, 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) The legislature by general law shall require a racetrack | ||
association that: | ||
(1) holds a license to conduct greyhound racing to | ||
cease all racing operations and surrender that license as a | ||
condition of holding, or designating a person to hold, a casino | ||
license; and | ||
(2) holds a license to conduct racing in the Laredo | ||
metropolitan statistical area to 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 sports wagering revenue. | ||
(q) The state or a state agency or political subdivision of | ||
this state may not impose a tax on the casino gaming revenue of a | ||
casino license holder or a tax or fee on the non-gaming revenue of | ||
casino license holder's operations at a destination resort, other | ||
than the tax 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; and | ||
(3) $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) The legislature by law shall annually 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 to promote the growth and sustainability of the horse | ||
racing industry in this state. | ||
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, and reform and support the | ||
horse racing industry by authorizing casino gaming at destination | ||
resorts, authorizing sports wagering, 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 gaming tax, sports wagering tax, and license application fees." |