| |
|
|
A JOINT RESOLUTION
|
|
|
proposing a constitutional amendment authorizing video lottery |
|
|
games and casino gaming at certain racetracks, at certain tourist |
|
|
destination locations, and on Indian lands to provide additional |
|
|
money to fund governmental programs and regulating the locations at |
|
|
which gambling may be conducted in this state. |
|
|
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 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, 2007, 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; |
|
|
(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, |
|
|
may conduct the games only on land over which the tribe exercises |
|
|
governmental power and: |
|
|
(i) that is 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; or |
|
|
(C) a person licensed or permitted to conduct |
|
|
casino gaming at a tourist destination in accordance with |
|
|
Subsection (b)(1) of this section; |
|
|
(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 gaming devices authorized by |
|
|
another law enacted under this section 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 or tourist destination shall be |
|
|
distributed as follows: |
|
|
(i) 65 percent to the racetrack or tourist |
|
|
destination; 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) The Legislature by general law shall authorize and |
|
|
regulate casino gaming conducted: |
|
|
(1) by the holder of a license or permit issued by this |
|
|
state for that purpose at 12 urban or coastal tourist destination |
|
|
locations specified by the Legislature or determined in accordance |
|
|
with law; |
|
|
(2) at a racetrack described by Subsection (a)(4)(A) |
|
|
of this section at the location at which video lottery terminals may |
|
|
be operated under that subsection; or |
|
|
(3) by a federally recognized Indian tribe described |
|
|
by Subsection (a)(4)(B) of this section on Indian land described by |
|
|
that subsection under a license or permit issued by this state for |
|
|
that purpose that serves as an agreement between the tribe and this |
|
|
state or under an agreement between the tribe and this state in the |
|
|
form prescribed by law or negotiated by the governor in accordance |
|
|
with general law. |
|
|
(c) 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. |
|
|
(d) The Legislature may authorize a portion of the revenue |
|
|
received by this state from the operation of casino gaming, 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. |
|
|
(e) 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. |
|
|
(f) A casino licensed under a law authorized by this section |
|
|
other than a casino operated by an Indian tribe is subject to all |
|
|
applicable taxes imposed by this state or a political subdivision |
|
|
of this state, including ad valorem taxation. A political |
|
|
subdivision of this state may not offer or award a tax abatement, |
|
|
tax credit, tax subsidy, tax exemption, or any other form of |
|
|
publicly funded incentive to assist, develop, or aid in the |
|
|
establishment, development, or operation of casino gaming by a |
|
|
person licensed to conduct casino gaming. |
|
|
(g) 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. |
|
|
(h) 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. |
|
|
(i) 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. |
|
|
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. 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 the |
|
|
operation of video lottery games and casino gaming at certain horse |
|
|
and greyhound racetracks, at 12 tourist destination locations, and |
|
|
on certain Indian lands to provide additional money to fund |
|
|
governmental programs." |