By: Pitts H.J.R. No. 3
A JOINT RESOLUTION
relating to proposing a constitutional amendment authorizing the
operation of video lottery games on behalf of the state by persons
licensed to conduct wagering on horse or greyhound races and by
recognized Indian tribes and prohibiting the operation of other
gambling devices.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 47, Article III, Texas Constitution, is
amended by amending Subsection (a) and adding Subsections (f) and
(g) 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), and (f) of this section. This
section does not authorize any entity to operate a casino gaming
operation in this State or a gaming operation substantially similar
to a casino and does not authorize the Legislature to enact a law
allowing the operation of casino gaming.
(f) The Legislature by general law in accordance with this
section may authorize the State as an extension of the State lottery
to strictly regulate, control, and operate a video lottery system
under which individuals may play lottery games of chance on video
lottery terminals owned and operated by persons licensed or
otherwise authorized by this State in order to generate revenue
solely to fund property tax reduction, public education, children's
health care, and the administration of the video lottery system.
The law must:
(1) provide for registration, licensing, standards,
approval, continual monitoring, and remote termination of
operation for video lottery terminals for use or play in this State,
as necessary to protect the public health, welfare, or safety or the
integrity of the State lottery or to prevent financial loss to the
State, and provide that a license or registration or other approval
is a revocable privilege not subject to judicial review;
(2) allow no more than seventeen established locations
at which video lottery games on behalf of the State are permitted,
to be operated by only the following legal entities:
(A) a person that is licensed in this State to
conduct wagering on a horse race or greyhound race, provided that:
(i) no more than fourteen locations may be
authorized in this state total for all persons under this
Subdivision;
(ii) each location must be generally
located prior to November 1, 2005, and may not be moved from the
location; and
(iii) to maximize revenue for the State,
the authorized locations for video lottery games should include
having one horse race track and one greyhound track in each of the
three largest counties in the state and a county adjacent to that
county;
(B) the Ysleta del Sur Pueblo and
Alabama-Coushatta Indian tribes, which, under agreement with this
State in the form prescribed by general law or negotiated by
governor, operate the games on lands held in trust by the United
States for such tribes on January 1, 1998, pursuant to the
Restoration Acts, 25 U.S.C. Section 731 and 18 U.S.C. Section 1166
et seq., and 25 U.S.C. Section 2701 et seq. and designated by the
tribes for video lottery activity; and
(C) the Kickapoo Traditional Tribe of Texas,
which, under agreement with this State in the form prescribed by
general law or negotiated by the governor, operates the games on
lands held in trust by the United States for the benefit of the
tribe on which Class III gaming is permitted under the Indian Gaming
Regulatory Act of 1988 (P.L. 100-497, codified at 18 U.S.C. Section
1166 et seq. and 25 U.S.C. Section 2701 et seq.) and designated by
the tribe for video lottery activity;
(3) allow the State, on lands held in trust by the
United States for the benefit of a tribe listed in Subsection
(f)(2), to impose and collect any and all State taxes imposed and
collected on a statewide basis by the State, and agreement by the
tribes to this provision is a condition for the authorization of
video lottery terminals on those lands;
(4) under Subsection (g), prohibit and impose criminal
penalties for the possession and operation of all electronic and
mechanical gaming devices other than video lottery terminals
operated in connection with the video lottery system or otherwise
authorized by this section; and
(5) to further the goal of revenue for the State, not
restrict the ownership of the number of locations, and such laws are
void as anti-competitive and against the best interest of this
State.
(g) The legislature shall by general law prohibit gambling
devices other than a video lottery terminal operated on behalf of
the State. "Gambling device" means any electronic,
electromechanical, or mechanical contrivance, including an
eight-liner, that for a consideration affords the player an
opportunity to obtain anything of value, the award of which is
determined solely or partially by chance, even though accompanied
by some skill, whether of not the prize is automatically paid by the
contrivance.
SECTION 2. (a) The proposed constitutional amendment shall
be submitted to the voters at an election to be held November 8,
2005. The ballot shall be printed to permit voting for or against
the proposition: "The constitutional amendment authorizing the
extension of the State lottery to include video lottery games, at
regulated locations where wagering is already authorized by law,
the net revenue from which shall be used for property tax reduction,
public education, and children's health care."
(b) If the voters at the election approve the proposition in
Subsection (a), the agency authorized to regulate the State lottery
is authorized to pass all necessary rules and procedures to
implement this Act as soon as possible. Expedited implementation
of regulation is necessary to maximize revenue for the State.