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