80R5412 BEF-F

By: Ellis, Carona S.J.R. No. 45

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature to authorize the operation of limited casino gaming by licensed operators and recognized Indian tribes and to authorize the operation of video lottery games by licensed horse and greyhound racetrack operators and recognized Indian tribes, requiring the legislature to create a Texas Gaming Commission to regulate gaming and casino-based development projects in this state, and establishing a higher education trust fund from state gaming revenues to pay tuition and fees for the postsecondary education of Texas high school graduates.

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 and Section 47a of this article.

(f) The Legislature by general law may:

(1) authorize one or more of the following legal entities to operate video lottery games:

(A) a person licensed in this State to conduct wagering on a horse race or greyhound race and licensed by this State to operate video lottery games on behalf of this State at the location licensed for conducting wagering on horse races or greyhound races; or

(B) an Indian tribe recognized by the United States government under federal law on land over which the tribe exercises governmental power; and

(2) require all or part of this State's net revenue from the regulation and taxation of casino gaming authorized under Section 47a of this article and video lottery games authorized under this subsection to be deposited in a higher education trust fund that:

(A) is held outside the state treasury;

(B) is administered under the direction of the comptroller; and

(C) may be used only as provided by law to provide for the payment of tuition and fees for resident students of institutions of higher education in this State.

(g) For purposes of Subsection (f) of this section, "video lottery game" means any game of chance, including a game of chance in which the outcome may be partially determined by skill or ability, that for consideration may be played by an individual on an electronic machine or video display and in which the player may win a thing of value each time the game is played, regardless of whether the game is authorized as a lottery under Subsection (e) of this section.

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:

(1) a person licensed by this state; or

(2) an Indian tribe recognized by the United States government under federal law on land over which the tribe exercises governmental power.

(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. The legislature may provide qualifications for membership on the commission.

(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.

(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)(1) 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 general law 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 the authorization of casino gaming in that county. 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 authorization of casino gaming in that county 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.

(j) The legislature by general law may impose additional restrictions on the location of casino-anchored destination attraction developments that are not inconsistent with this section.

(k) 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 the legislature to authorize the operation of limited casino gaming in Texas by licensed operators and recognized Indian tribes and to authorize the operation of video lottery games by licensed horse or greyhound racetrack operators and recognized Indian tribes, requiring the legislature to create a Texas Gaming Commission to regulate gaming and casino-based development projects in Texas, and establishing a higher education trust fund using state revenue from casino gaming and video lottery games to pay tuition and fees for the postsecondary education of Texas high school graduates."