|
|
A JOINT RESOLUTION
|
|
proposing a constitutional amendment authorizing the state to |
|
operate video lottery games at certain racetracks and on Indian |
|
lands to provide additional money to fund governmental programs. |
|
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 47-a of |
|
this article. |
|
SECTION 2. Article III, Texas Constitution, is amended by |
|
adding Section 47-a to read as follows: |
|
Sec. 47-a. (a) The Legislature by general law in accordance |
|
with this section may authorize this state to 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 at locations |
|
determined as provided by this subsection in order to generate |
|
revenue to provide additional money to fund public education and |
|
other governmental programs. The law authorizing a video lottery |
|
system must: |
|
(1) except as otherwise provided by this section, |
|
require this state to continually monitor the activity of each |
|
video lottery terminal and remotely terminate the operation of a |
|
terminal as necessary to protect the public health, welfare, or |
|
safety or the integrity of the state lottery or to prevent financial |
|
loss to this state; |
|
(2) include a comprehensive registration program to |
|
govern a person that manufactures, distributes, sells, or leases |
|
video lottery terminals for use or play in this state and a process |
|
to approve terminals for use in the video lottery system in |
|
accordance with technical standards established by this state; |
|
(3) provide for a comprehensive licensing program to |
|
govern a person that owns, manages, or maintains video lottery |
|
terminals operated in this state; |
|
(4) limit the operation of video lottery games on |
|
behalf of this state to only the following legal entities: |
|
(A) a person that is licensed in this state to |
|
operate a racetrack that was licensed to conduct wagering on a horse |
|
race or greyhound race on June 1, 2005, or for which a person on or |
|
before that date had applied for a license to conduct wagering on a |
|
horse race or greyhound race at the racetrack, provided that the |
|
person may be licensed to conduct video lottery games only at the |
|
location licensed for conducting wagering on horse races or |
|
greyhound races; or |
|
(B) a federally recognized Indian tribe that, |
|
under an agreement with this state in the form prescribed by general |
|
law or negotiated by the governor in accordance with general law or |
|
under a license granted by this state in accordance with general |
|
law, may conduct the games only on land over which the tribe |
|
exercises governmental power and: |
|
(i) that was held in trust by the United |
|
States on January 1, 1998, for the tribe or an individual member of |
|
the tribe pursuant to federal law and designated by the tribe for |
|
video lottery activity; or |
|
(ii) on which Class III gaming is permitted |
|
under the Indian Gaming Regulatory Act (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; |
|
(5) authorize this state to impose and collect state |
|
taxes on the purchase, use, or other consumption of a good or |
|
service at a video lottery facility on tribal land by a person who |
|
is not a member of the Indian tribe operating the facility; |
|
(6) 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 a gaming device expressly |
|
authorized under other state law; |
|
(7) prohibit the operation or possession of a video |
|
lottery terminal that is not subject to this state's measures for |
|
monitoring and terminating operation of the terminal required by |
|
this subsection and does not generate revenue for this state, |
|
except that the law may provide for limited storage or transport of |
|
video lottery terminals as authorized by this state and for |
|
possession of video lottery terminals by this state for testing and |
|
evaluation; and |
|
(8) provide that, unless otherwise provided by law: |
|
(A) net revenue generated from video lottery |
|
terminals located at a racetrack shall be distributed as follows: |
|
(i) 65 percent to the racetrack; and |
|
(ii) 35 percent to this state; and |
|
(B) net revenue generated from video lottery |
|
terminals operated by an Indian tribe on Indian lands shall be |
|
distributed as set forth in the agreement authorizing the tribe to |
|
operate video lottery games or as provided by general law if the |
|
tribe operates video lottery games under a license. |
|
(b) In the absence of enabling legislation to implement |
|
Subsection (a) of this section, the authority of this state to |
|
operate lotteries under Section 47(e) of this article includes the |
|
authority of the state agency that operates state lotteries to |
|
adopt rules to implement video lottery in accordance with |
|
Subsection (a) of this section as part of the state lottery. |
|
(c) The Legislature may authorize a portion of the revenue |
|
received by this state from the operation of video lottery |
|
terminals and other forms of gaming to: |
|
(1) be distributed to counties and municipalities |
|
impacted by those activities; or |
|
(2) be used to support purses at horse and greyhound |
|
racetracks. |
|
(d) All shipments of video lottery terminals or gaming |
|
devices into, out of, or within this state authorized under this |
|
section or a law enacted under this section 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. |
|
(e) A person may not conduct or promote gambling or wagering |
|
using any electronic gaming device in this state unless the device |
|
is authorized under this section or under a law enacted under this |
|
section or Section 47 of this article. Any exception or defense |
|
provided by general law to an offense relating to illegal gambling |
|
that permits the operation or possession of electronic gaming |
|
devices based on the limited value of a prize that a player of the |
|
device may receive constitutes an exception to the prohibition |
|
provided by this subsection if the defense or exception does not |
|
allow the player to receive a prize consisting of money, a check or |
|
other negotiable instrument or cash equivalent, or a certificate or |
|
other item that entitles the bearer to receive any thing of value on |
|
premises other than the premises where the device is operated. A |
|
county or district attorney or the attorney general may enjoin a |
|
violation of this subsection. |
|
(f) The governing body of a political subdivision of this |
|
state may not take any action regarding the repeal or revocation of |
|
a previous authorization by the voters of the political subdivision |
|
to approve the legalization or conduct of pari-mutuel wagering on |
|
horse races or greyhound races at a racetrack in that political |
|
subdivision if the racetrack may be authorized under this section |
|
to operate video lottery games on behalf of this state. |
|
(g) An applicant for a license, certificate of |
|
registration, or other affirmative regulatory approval under a law |
|
enacted under this section does not have any right to the license, |
|
certificate, or approval. A license or certificate of registration |
|
issued or other approval granted to a person in accordance with a |
|
law enacted under this section is a revocable privilege, and the |
|
person does not acquire any vested right in or under the privilege. |
|
Unless otherwise provided by general law expressly referring to |
|
this subsection, the courts of this state do not have jurisdiction |
|
to review a decision to deny, limit, or condition a license, |
|
certificate of registration, or request for approval unless the |
|
judicial review is sought on the ground that the denial, |
|
limitation, or condition is based on a suspect classification, such |
|
as race, color, religion, sex, or national origin, in violation of |
|
the Equal Protection Clause of the Fourteenth Amendment to the |
|
United States Constitution, in which event the court must affirm |
|
the denial, limitation, or condition unless the violation is proven |
|
by clear and convincing evidence. |
|
SECTION 3. This proposed constitutional amendment shall be |
|
submitted to the voters at an election to be held November 6, 2007. |
|
The ballot shall be printed to permit voting for or against the |
|
proposition: "The constitutional amendment authorizing a state |
|
video lottery system to operate video lottery games at certain |
|
horse and greyhound racetracks and on certain Indian lands to |
|
provide additional money to fund governmental programs." |