80R809 JPL-F

By: Ellis S.J.R. No. 8

A JOINT RESOLUTION

proposing a constitutional amendment authorizing casino gaming and requiring creation of a Texas Gaming Commission to regulate gaming and casino-based development projects in this state.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (a), Section 47, 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) The legislature by general law shall authorize and regulate casino gaming conducted by a person licensed by this state.

(b) The legislature by general law shall establish a Texas Gaming Commission to administer the laws regulating gaming activities authorized by this section or Section 47 of this article.

(b-1) The law enacted under Subsection (b) must abolish the Texas Racing Commission and the Texas Lottery Commission and merge the functions of those agencies into the Texas Gaming Commission not later than January 1, 2009. This subsection expires January 1, 2010.

(c) The Texas Gaming Commission established by the legislature under this section must consist of five members appointed as follows:

(1) one member appointed by the governor;

(2) one member appointed by the lieutenant governor;

(3) one member appointed by the speaker of the house of representatives;

(4) one member appointed by the attorney general; and

(5) one member appointed by the comptroller of public accounts.

(c-1) Not later than January 1, 2008, the initial members of the Texas Gaming Commission shall be appointed as provided by Subsection (c) of this section to terms as follows:

(1) the initial term of the member appointed under Subsection (c)(1) of this section expires January 1, 2010;

(2) the initial terms of the members appointed under Subsections (c)(2) and (4) of this section expire January 1, 2012; and

(3) the initial terms of the members appointed under Subsections (c)(3) and (5) of this section expire January 1, 2014.

(c-2) Subsection (c-1) of this section and this subsection expire January 1, 2015.

(d) Members of the Texas Gaming Commission shall serve staggered terms of six years, with the terms of one or two members expiring January 1 of each even-numbered year.

(e) A vacancy on the Texas Gaming Commission shall be filled for the unexpired term in the same manner as the original appointment.

(f) The general law enacted under Subsection (a) of this section must authorize the Texas Gaming Commission to license 12 casino-anchored destination attraction development projects in this state as follows:

(1) seven projects in urban areas, allocated by population;

(2) two projects 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, 2007; and

(3) three additional projects, at locations:

(A) determined by the commission to achieve targeted economic development or permanent new job creation; or

(B) selected for other considerations determined appropriate by the commission.

(g) The commission may not award a license for a casino-anchored destination attraction development project unless the project meets the major economic development qualifications established by this subsection. To qualify for a license, a project must include 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; and

(3) $150 million for an additional project.

(h) A local option election shall be held in the manner determined by the commission in each county in which a person applies for a license for a casino-anchored destination attraction development project. The commission may not award a license for a project in any county unless a majority of the voters of the county voting in the election favor selection of that county as the site for a project. If a majority of the voters in a county voted for the proposition that added this section to this constitution, the county is considered to have approved the selection of that county as the site for a project by local option election as required by this subsection.

(i) The commission may not award a license for a casino-anchored destination attraction development project to a person unless at least 51 percent of the project will be owned by residents of this state who have maintained their principal residence in this state for not less than the two years preceding September 1, 2007.

(i-1) Not later than January 1, 2008, the governor shall call a special session of the legislature to establish the Texas Gaming Commission and enact the laws necessary to implement this section and regulate casino-anchored destination attraction development projects. This subsection expires January 1, 2009.

(j) The legislature shall provide the initial funding for the Texas Gaming Commission through an interest-free loan from the Texas Enterprise Fund in the amount of $2.5 million. The commission shall repay the loan from the first money received by the commission from license fees received for casino-anchored destination attraction development projects.

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 provide for voting for or against the proposition: "The constitutional amendment authorizing limited casino gaming in Texas and providing for a Texas Gaming Commission to regulate gaming and casino-based development projects in this state."