Read the Bill
By: Menendez |
H.J.R. No. 112 |
| A JOINT RESOLUTION | ||
| proposing a constitutional amendment creating the Texas Gaming | ||
| Commission and authorizing and regulating casino games and slot | ||
| machines by licensed operators and certain Indian tribes to provide | ||
| money for the property tax relief fund and additional financial aid | ||
| for higher education students. | ||
| BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. 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), and (e) of this section and Section 47a of | ||
| this article. | ||
| SECTION 2. Article III, Texas Constitution, is amended by | ||
| adding Section 47a to read as follows: | ||
| Sec. 47a. (a) Casino gaming is authorized in this state in | ||
| accordance with this section to provide additional money for the | ||
| property tax relief fund and additional financial aid for higher | ||
| education students. | ||
| (b) The Texas Gaming Commission is established. The | ||
| commission is composed of five members appointed by the governor | ||
| with the advice and consent of the senate. Commission members serve | ||
| staggered six-year terms, with one or two members' terms, as | ||
| applicable, expiring February 1 of each odd-numbered year. The | ||
| governor shall fill a vacancy in a position on the commission for | ||
| the remainder of the unexpired term. The governor shall designate a | ||
| commission member as presiding officer of the commission to serve | ||
| in that capacity at the pleasure of the governor. | ||
| (c) To be eligible for appointment to the commission, a | ||
| person: | ||
| (1) must be a citizen of the United States; | ||
| (2) must have resided in this state for the two years | ||
| preceding the date of the person's appointment; | ||
| (3) may not own a financial or other interest in an | ||
| entity engaged in the conduct of gaming or the provision of casino | ||
| or slot services, or in a security issued by such an entity, or be | ||
| related within the second degree by affinity or the third degree by | ||
| consanguinity as determined by general law to an individual who | ||
| owns such a financial or other interest or security; | ||
| (4) may not be an applicant for or holder of a license | ||
| or other affirmative regulatory approval under a law administered | ||
| by the commission; and | ||
| (5) may not be a member of the governing body of a | ||
| political subdivision of this state. | ||
| (d) The Texas Gaming Commission has broad authority and | ||
| shall exercise strict control and close supervision over all | ||
| activities related to casino and slot gaming authorized and | ||
| conducted in this state under this section or another law | ||
| administered by the commission. | ||
| (e) The Texas Gaming Commission shall appoint an executive | ||
| director and other necessary personnel and adopt rules the | ||
| commission considers necessary or desirable for the public interest | ||
| in carrying out the policy and provisions of this section and the | ||
| other laws administered by the commission, including rules on: | ||
| (1) licensing and regulating casino owners, slot | ||
| establishment owners, gaming managers, gaming employees, and | ||
| manufacturers and distributors of gaming equipment, including the | ||
| qualifications, definitions, terms, and fees for licenses; | ||
| (2) criteria for awarding, denying, revoking, and | ||
| suspending licenses; | ||
| (3) exclusion of persons and age requirements; | ||
| (4) procedures for conducting investigations, | ||
| inspections, criminal background investigations, audits, complaint | ||
| investigations, and disciplinary hearings; | ||
| (5) reporting and internal control requirements for | ||
| license holders; | ||
| (6) consequences of criminal convictions of license | ||
| holders or applicants; | ||
| (7) enforcement provisions, including disciplinary | ||
| actions and penalties, and security requirements; | ||
| (8) prize payment and redemption; | ||
| (9) regulating the operations of casinos and slot | ||
| establishments; and | ||
| (10) standards for gaming equipment. | ||
| (f) The Texas Gaming Commission shall: | ||
| (1) issue not more than eight licenses to operate slot | ||
| establishments in this state to persons who are licensed to conduct | ||
| pari-mutuel wagering on horse or greyhound races at the location | ||
| licensed for conducting pari-mutuel wagering on horse or greyhound | ||
| races and who comply with requirements of this section and | ||
| commission rule; | ||
| (2) issue not more than six licenses to conduct casino | ||
| gaming to casino-anchored destination attraction development | ||
| projects located in different urban areas of this state that comply | ||
| with requirements of this section and commission rule; | ||
| (3) issue not more than two licenses to conduct casino | ||
| gaming to casino-anchored destination attraction development | ||
| projects located on islands in the Gulf of Mexico that are tourist | ||
| destinations with at least 1,000 guest rooms available for visitors | ||
| in hotels, motels, or condominiums existing on January 1, 2011, and | ||
| that comply with requirements of this section and commission rule; | ||
| and | ||
| (4) allow an Indian tribe that is recognized by the | ||
| United States government under federal law to operate slot machines | ||
| or casino gaming on its Indian land held in trust by the United | ||
| States on January 1, 1998, in accordance with federal law and: | ||
| (A) an effective gaming agreement that includes a | ||
| provision requiring the Indian tribe to remit to this state a | ||
| portion of its gaming revenue in an amount equal to the rate | ||
| provided in the agreement; or | ||
| (B) general state law that includes a provision | ||
| requiring the Indian tribe to remit to this state a portion of its | ||
| gaming revenue in an amount equal to the rate provided by the | ||
| general law. | ||
| (g) In determining whether or, in the case of multiple | ||
| applicants competing for a limited number of casino owner's | ||
| licenses or slot establishment owner's licenses within a geographic | ||
| area, to whom to grant a license, the Texas Gaming Commission shall | ||
| consider the following factors: | ||
| (1) the relative prospective revenue to be collected | ||
| by this state from the conduct of casino gaming at the casino or | ||
| slot gaming at the slot establishment and the overall economic | ||
| impact of each competing applicant's proposed gaming and associated | ||
| facilities; | ||
| (2) the relative number of residents of this state who | ||
| would be employed in an applicant's proposed casino or slot | ||
| establishment and any proposed associated hotel and nongaming | ||
| businesses and the relative extent of the applicant's good faith | ||
| plan to recruit, train, and promote a workforce that reflects the | ||
| diverse populations of this state in all employment | ||
| classifications; | ||
| (3) the relative extent to which an applicant's | ||
| proposed casino or slot establishment and any proposed associated | ||
| hotel and nongaming businesses could be reasonably expected to | ||
| encourage interstate tourism to this state; | ||
| (4) the relative extent to which the scope, design, | ||
| location, and construction of the applicant's casino or slot | ||
| establishment and any associated hotel and nongaming businesses | ||
| could be reasonably expected to contribute to developing a | ||
| first-class gaming industry in this state; | ||
| (5) the applicant's experience in conducting licensed | ||
| gaming operations and the applicant's financial ability to promptly | ||
| construct and adequately maintain the casino or slot establishment | ||
| sought to be licensed, including the experience of partners of the | ||
| applicant, of affiliated companies of the applicant or its | ||
| partners, of key personnel of the applicant or its partners, and of | ||
| operating companies under contract with the applicant; and | ||
| (6) the percentage of equity interest in the applicant | ||
| owned or to be owned by residents of this state. | ||
| (h) To ensure that a requisite level of economic development | ||
| benefiting the people of this state accompanies each casino or slot | ||
| establishment for which an owner's license is granted, the Texas | ||
| Gaming Commission shall require an applicant, as a condition to | ||
| receiving and holding an owner's license, to commit to building a | ||
| casino-anchored destination attraction development project or slot | ||
| establishment that includes total land and development costs of at | ||
| least: | ||
| (1) $400 million for an urban area project; | ||
| (2) $200 million for an island tourist destination | ||
| project; or | ||
| (3) $150 million for a slot establishment. | ||
| (i) Notwithstanding Subsection (f) of this section: | ||
| (1) a license for a casino-anchored destination | ||
| attraction development project may not be issued in a county | ||
| unless: | ||
| (A) a majority of the voters of the county voted | ||
| for the proposition that added this section to this constitution; | ||
| or | ||
| (B) the voters of the county have approved a | ||
| proposition legalizing casino gaming at a local option election | ||
| held under this section; | ||
| (2) not more than two casino owner's licenses may be | ||
| issued for casinos to be located in the same county; and | ||
| (3) a casino owner's license may not be issued for a | ||
| location in an area in which casino gaming or slot gaming is | ||
| prohibited under a gaming agreement between an Indian tribe and | ||
| this state. | ||
| (j) The Texas casino and slot gaming fund is a special fund | ||
| in the state treasury. All application fees, investigation fees, | ||
| and license fees collected by the Texas Gaming Commission or on the | ||
| commission's behalf related to casino and slot gaming shall be | ||
| deposited to the credit of the Texas casino and slot gaming fund. | ||
| Except as provided by this section, the Texas casino and slot gaming | ||
| fund shall be used only for the operation of the commission and the | ||
| administration of this section. If the money in the fund exceeds | ||
| the amount necessary for the operation of the commission and the | ||
| administration of this section, the legislature shall transfer any | ||
| excess amount to the dedicated account known as the property tax | ||
| relief fund in the general revenue fund. Money from the property | ||
| tax relief fund shall be appropriated only for a purpose that | ||
| results in a reduction of the average school district maintenance | ||
| and operations tax rate or as otherwise provided by general law. | ||
| (k) An applicant applying for an owner's license for a | ||
| casino-anchored destination attraction development project must | ||
| submit to the Texas Gaming Commission a $50 million application | ||
| fee. An applicant applying for an owner's license for a slot | ||
| establishment must submit to the commission a $25 million | ||
| application fee. If an applicant is not awarded an owner's license, | ||
| the commission shall refund the application fee less the costs | ||
| incurred by the commission in reviewing the application and | ||
| conducting a criminal background investigation on the applicant. | ||
| (l) A gaming tax in an amount equal to 15 percent of the | ||
| gross gaming revenue of the casino operated under the license is | ||
| imposed on each holder of a casino owner's license. The tax shall be | ||
| computed and paid on a monthly basis in accordance with the | ||
| procedures established by rule of the Texas Gaming Commission. | ||
| (m) A slot gaming tax in an amount equal to 35 percent of the | ||
| gross slot income of the slot establishment operated under the | ||
| license is imposed on each holder of a slot establishment owner's | ||
| license. The tax shall be computed and paid on a monthly basis in | ||
| accordance with the procedures established by rule of the Texas | ||
| Gaming Commission. | ||
| (n) Of the revenue from the taxes imposed by Subsections (l) | ||
| and (m) of this section: | ||
| (1) one-thirtieth of the revenue is allocated to the | ||
| municipality in which the casino to which the license relates is | ||
| located and one-thirtieth of the revenue is allocated to the county | ||
| in which the casino to which the license relates is located; or | ||
| (2) if the casino is located in an unincorporated | ||
| area, one-fifteenth of the revenue is allocated to the county in | ||
| which the casino to which the license relates is located. | ||
| (o) The comptroller of public accounts shall transfer the | ||
| appropriate amount allocated under Subsection (n) to the | ||
| appropriate municipalities and counties not less than monthly in | ||
| the manner the comptroller considers appropriate. | ||
| (p) Except as otherwise provided by this section, the | ||
| revenue from the taxes imposed by Subsections (l) and (m) of this | ||
| section is allocated as follows: | ||
| (1) one-twentieth to the general revenue fund for | ||
| appropriation only to fund a compulsive gambling program | ||
| established by the Texas Gaming Commission; | ||
| (2) one-thirtieth to the general revenue fund for | ||
| appropriation only to the Texas Gaming Commission to provide grants | ||
| to prosecuting attorneys for the investigation and prosecution of | ||
| offenses related to the possession of gambling devices and illegal | ||
| gambling operations; and | ||
| (3) the remainder to the property tax relief fund in | ||
| the general revenue fund. | ||
| (q) The comptroller of public accounts quarterly shall | ||
| determine the net amount of receipts collected from a casino or slot | ||
| establishment from the sales and use taxes, hotel occupancy taxes, | ||
| alcoholic beverage taxes, and franchise taxes imposed under general | ||
| law, or from other taxes imposed under general law as provided by | ||
| the legislature in general law, and shall deposit that amount in the | ||
| general revenue fund. The net amount deposited may only be | ||
| appropriated to fund the TEXAS grant program established under | ||
| Subchapter M, Chapter 56, Education Code, or a similar program | ||
| established by the legislature to provide grants to higher | ||
| education students in this state. | ||
| (r) Not more than 10 percent of the total floor space of a | ||
| casino or slot establishment may be used for gaming areas. | ||
| (s) Casinos and slot establishments are subject to all | ||
| applicable state laws and local ordinances related to health and | ||
| building codes, including rules adopted by the Texas Gaming | ||
| Commission. A local ordinance or zoning law may not prohibit the | ||
| development of a casino or slot establishment authorized by this | ||
| section, except that a casino or slot establishment may not be | ||
| located in an area that on January 1, 2011, was zoned exclusively | ||
| residential, unless otherwise provided by commission rule. | ||
| (t) The commissioners court of a county may at any time | ||
| order an election to legalize casino gaming under this section in | ||
| that county. The commissioners court shall order and hold an | ||
| election to legalize gaming under this section in the county if the | ||
| commissioners court is presented with a petition that meets the | ||
| requirements of this section and is certified as valid under this | ||
| section. | ||
| (u) A petition for a legalization election must include a | ||
| statement substantially as follows before the space reserved for | ||
| signatures on each page: "This petition is to require that an | ||
| election be held in (name of county) to legalize casino gaming in | ||
| (name of county)." A petition is valid only if it is signed by | ||
| registered voters of the county in a number that is not less than | ||
| three percent of the total number of votes cast for governor by | ||
| qualified voters of the county in the most recent gubernatorial | ||
| general election. Each voter must enter beside the voter's | ||
| signature the date the voter signs the petition. A signature may | ||
| not be counted as valid if the date of signing is earlier than the | ||
| 90th day before the date the petition is submitted to the | ||
| commissioners court. Each voter must provide on the petition the | ||
| voter's current voter registration number, printed name, and | ||
| residence address, including zip code. | ||
| (v) Not later than the fifth day after the date a petition | ||
| for an election under this chapter is received in the office of the | ||
| commissioners court, the commissioners court shall submit the | ||
| petition for verification to the county clerk. The county clerk | ||
| shall determine whether the petition is signed by the required | ||
| number of registered voters of the county. Not later than the 30th | ||
| day after the date the petition is submitted to the clerk for | ||
| verification, the clerk shall certify in writing to the | ||
| commissioners court whether the petition is valid or invalid. If | ||
| the clerk determines that the petition is invalid, the clerk shall | ||
| state the reasons for that determination. | ||
| (w) If the county clerk certifies that a petition is valid, | ||
| not later than the 30th day after the date of certification, the | ||
| commissioners court shall order that an election be held in the | ||
| county on the next uniform election date provided under general law | ||
| that allows sufficient time to comply with applicable provisions of | ||
| general law. The commissioners court shall state in the order the | ||
| issue to be voted on. The county clerk shall notify the Texas | ||
| Gaming Commission by certified mail, return receipt requested, that | ||
| an election has been ordered. The ballot in a legalization election | ||
| shall be printed to provide for voting for or against the | ||
| proposition: "Legalizing casino gaming within (name of county)." | ||
| (x) If the majority of the votes cast in a legalization | ||
| election favor the legalization of casino gaming, casino gaming | ||
| authorized under this chapter is permitted within the county | ||
| holding the election effective on the 10th day after the date of the | ||
| election. The commissioners court of a county in which a | ||
| legalization election has been held shall give written notice of | ||
| the results of the election to the Texas Gaming Commission not later | ||
| than the third day after the date the election is canvassed. If | ||
| less than a majority of the votes cast in a legalization election in | ||
| any county are cast in favor of the legalization of casino gaming, | ||
| casino gaming is not permitted in the county, and a subsequent | ||
| election on the issue may not be held in the county before the | ||
| corresponding uniform election date one year after the date of the | ||
| election. If less than a majority of the votes cast in two | ||
| consecutive legalization elections within any county are cast in | ||
| favor of the legalization of casino gaming, casino gaming is not | ||
| permitted in the county, and a subsequent election on the issue may | ||
| not be held in the county before the corresponding uniform election | ||
| date five years after the date of the second election. | ||
| (y) It is a defense to prosecution for a gambling offense | ||
| under general law that the action was authorized under this section | ||
| or Texas Gaming Commission rule. | ||
| (z) All shipments of video lottery terminals or gaming | ||
| devices into, out of, or within this state authorized under this | ||
| section or a rule adopted by the Texas Gaming Commission are legal | ||
| shipments of the devices and are exempt from the provisions of 15 | ||
| U.S.C. Sections 1171-1178, prohibiting the transportation of | ||
| gambling devices. | ||
| (aa) Each state agency, including the attorney general and | ||
| the comptroller of public accounts and each state or local law | ||
| enforcement agency, shall cooperate with the Texas Gaming | ||
| Commission as necessary to implement this section. | ||
| (bb) The legislature by general law may impose additional | ||
| restrictions or requirements for the conduct of casino and slot | ||
| gaming. | ||
| (cc) Unless specifically authorized by general law, a | ||
| political subdivision of this state may not impose: | ||
| (1) a tax on the payment of a casino or slot prize; | ||
| (2) a tax, fee, or other assessment on consideration | ||
| paid to play a casino or slot game authorized by this section; or | ||
| (3) a tax or fee on attendance at or admission to a | ||
| casino or slot establishment authorized by this section. | ||
| (dd) In this section, unless modified by general law: | ||
| (1) "Casino" means a facility at which casino gaming | ||
| is conducted by a licensed casino owner as authorized by this | ||
| section. | ||
| (2) "Casino gaming" means any game of chance or | ||
| similar activity that involves the making of a bet for | ||
| consideration. The term includes any type of slot machine or table | ||
| game wagering using money, casino credit, or any representation of | ||
| value. The term does not include bingo, charitable raffles, or the | ||
| state lottery authorized under Section 47 of this article. | ||
| (3) "Casino owner" means a person, trust, corporation, | ||
| partnership, limited partnership, association, limited liability | ||
| company, or other business enterprise that directly holds an | ||
| ownership or leasehold interest in a casino licensed as provided by | ||
| this section. | ||
| (4) "Gross gaming revenue" means the total amount of | ||
| consideration paid to play casino games less winnings paid to | ||
| players of the casino games. | ||
| (5) "Gross slot income" means the total amount of | ||
| consideration paid to play slot machines less winnings paid to | ||
| players of the slot machines. | ||
| (6) "Slot establishment" means a facility at which | ||
| slot gaming is conducted by a licensed slot establishment owner as | ||
| authorized by this section. | ||
| (7) "Slot establishment owner" means a person, trust, | ||
| corporation, partnership, limited partnership, association, | ||
| limited liability company, or other business enterprise that | ||
| directly holds an ownership or leasehold interest in a slot | ||
| establishment. | ||
| (8) "Slot gaming" means any game of chance that for | ||
| consideration is played on a slot machine. The term does not | ||
| include bingo, charitable raffles, or the state lottery authorized | ||
| under Section 47 of this article. | ||
| (9) "Slot machine" means a mechanical, electrical, or | ||
| other device or machine that, on insertion of a coin, token, or | ||
| similar object or on payment of consideration, is available to play | ||
| or operate a game, the play or operation of which, wholly or partly | ||
| by the element of chance, may deliver or entitle the person playing | ||
| or operating the device or machine to receive cash, premiums, | ||
| merchandise, tokens, or any other thing of value, whether the | ||
| payoff is made automatically from the device or machine or is made | ||
| in another manner. | ||
| SECTION 3. The following temporary provision is added to | ||
| the Texas Constitution: | ||
| TEMPORARY PROVISION. (a) This temporary provision applies | ||
| to the constitutional amendment proposed by the 82nd Legislature, | ||
| Regular Session, 2011, creating the Texas Gaming Commission and | ||
| authorizing and regulating casino games and slot machines by | ||
| licensed operators and certain Indian tribes to provide money for | ||
| the property tax relief fund and additional financial aid for | ||
| higher education students. | ||
| (b) Not later than January 1, 2012, the governor shall | ||
| appoint the initial members of the Texas Gaming Commission in | ||
| accordance with Section 47a, Article III, of this constitution. In | ||
| making the initial appointments, the governor shall designate one | ||
| member to a term expiring February 1, 2013, two members to terms | ||
| expiring February 1, 2015, and two members to terms expiring | ||
| February 1, 2017. | ||
| (c) Not later than March 1, 2012, the Texas Gaming | ||
| Commission shall adopt the rules, including any emergency rules, | ||
| necessary to implement Section 47a, Article III, of this | ||
| constitution. | ||
| (d) This temporary provision expires January 1, 2013. | ||
| SECTION 4. This proposed constitutional amendment shall be | ||
| submitted to the voters at an election to be held November 8, 2011. | ||
| The ballot shall be printed to permit voting for or against the | ||
| proposition: "The constitutional amendment creating the Texas | ||
| Gaming Commission and authorizing and regulating casino games and | ||
| slot machines by licensed operators and certain Indian tribes to | ||
| provide money for the property tax relief fund and additional | ||
| financial aid for higher education students." | ||