BILL ANALYSIS

C.S.H.J.R. 137

By: Kuempel

Licensing & Administrative Procedures

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Texas Constitution allows for only limited gambling in the state, specifically gambling for charity such as church bingo and charity raffles.  The only exception is the 1991 amendment allowing for the lottery.  In previous legislative sessions, lawmakers considered expanding gaming activities in Texas to assist in funding various legislative priorities, such as education.  The legislature has considered the expansion of gaming activities at dog and horse race tracks, destination resort casinos, and on the tribal lands of a federally recognized Indian tribe.  To date, the various gaming interests have been unable to agree on the structure and regulation of gaming activities, which has prevented the passage of a joint resolution and, in turn, has prevented the voters of Texas from exercising their right to vote for or against gaming.  This resolution allows the voters to decide whether to amend the Texas Constitution to authorize the expansion of gaming activities in Texas and states no preference for any specific type of gaming activity.

C.S.H.J.R. 137 proposes an amendment to the Texas Constitution to authorize the legislature by general law to legalize and regulate the conduct of one or more types of gaming involving wagering in Texas and to make such a law contingent on approval by the voters at a statewide referendum. The resolution authorizes the enacted law to limit the locations in which the conduct of certain types of gaming are authorized to certain specified areas and authorizes the conduct of gaming by certain Indian tribes.

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.J.R. 137 proposes an amendment to the Texas Constitution to authorize the legislature by general law to authorize and regulate the conduct of one or more types of gaming involving wagering in Texas and to make such a general law contingent on approval by the voters at a statewide referendum.  The resolution creates a temporary provision, set to expire January 1, 2011, establishing that such a referendum that is held on the same day as the election on the approval of the constitutional amendment is hereby validated.  The resolution authorizes the enacted law to limit the locations in which certain types of gaming are authorized to be conducted to coastal barrier islands at least 25 miles in length that are accessible by bridges, to dredge spoil islands at least 18 miles in length located in coastal counties, and to populous metropolitan areas of Texas, designated by the county or counties in which the island or metropolitan area is located.  The resolution requires such a law to require, before any type of gaming not otherwise permitted by law in a particular county is authorized to be conducted in that county, an election to be held to allow the qualified voters of the county to determine by a majority vote whether that type of gaming may be legally conducted in the county. 

C.S.H.J.R. 137 authorizes the legislature to provide by general law for the dedication of portions of gaming revenue authorized by these provisions and received by Texas or a local government for higher education, transportation, or children's health insurance program purposes. 

C.S.H.J.R. 137 establishes that a federally recognized Indian tribe is authorized to conduct gaming on tribal land of the tribe in Texas that was held in trust by the United States on January 1, 2009, and that is located in Polk County or El Paso County. 

C.S.H.J.R. 137 provides that if, after January 1, 2009, any person, organization, or entity is permitted by Texas law to offer gaming involving wagering within 200 miles of any part of the reservation of the Kickapoo Traditional Tribe of Texas located near Eagle Pass, Texas, the tribe is permitted, at a location selected by the tribe that is within 150 miles of any part of the reservation but not within 30 miles of any horse or greyhound racetrack licensed for pari-mutuel wagering that was in operation on September 1, 2009, to offer the same number of games or gaming devices involving wagering as any other person or entity authorized by Texas law.  The resolution requires such gaming to be regulated by the tribe and the secretary of state, and prohibits the secretary of state from adopting regulations that are more restrictive than the regulations applicable to other comparable gaming licensed by the state.  The resolution requires the tribe each month to transfer to the state in a manner determined by the comptroller of public accounts a percentage of the tribe's gaming receipts, which are prohibited from exceeding the percentage of receipts other persons authorized to operate comparable gaming or gaming devices are required to transfer to the state.  The resolution sets forth the required language for the ballot.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held November 3, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.J.R. 137 differs from the original by proposing an amendment to the Texas Constitution authorizing the legislature by general law to authorize and regulate the conduct of one or more types of gaming involving wagering in Texas, making such a general law contingent on approval by the voters at a statewide referendum, authorizing the enacted law to limit the locations in which the conduct of gaming are allowed, and providing for the authorization and regulation of the conduct of gaming on tribal land, whereas the original's proposed amendment authorizes the legislature by general law to authorize and regulate any form of gaming activity, including slot machines or any other game of chance or similar activity, at specific locations as provided by law, including dog or horse race tracks, destination resort casinos, or the tribal lands of a recognized Indian tribe, and to condition the approval of such activity authorized under its provisions in a defined area of the state on the approval of the activity at a local option election held in the area.

C.S.H.J.R. 137 differs from the original by authorizing the legislature to provide by general law for the dedication of portions of gaming revenue authorized under its provisions and received by the state or a local government for higher education, transportation, or children's health insurance program purposes, whereas the original authorizes the legislature to provide by general law for the dedication of any revenues received by the state or a local government from a gaming activity.

C.S.H.J.R. 137 removes a provision included in the original requiring the legislature to establish a state agency to administer any gaming activity authorized by the original. The substitute differs from the original by amending the caption to reflect the provisions in the substitute.