81R28301 BPG-D

By: Kuempel H.C.R. No. 220

CONCURRENT RESOLUTION

WHEREAS, The diversity of the Texas economy has helped the state weather the turbulence of the recession, but as the national downturn deepens and as prudent planning for the future becomes more vital, communities in the Lone Star State are seeking ways to ensure that they have sufficient resources to continue to provide necessary services; economic studies indicate that the gaming industry has the potential to bring billions of tax dollars into Texas while creating jobs and boosting local economies; and

WHEREAS, Estimates of Texans' annual discretionary spending for gaming range from $3 billion to $6 billion, but the tax dollars generated currently accrue to Louisiana, Oklahoma, New Mexico, and other states with highly developed gaming industries; and

WHEREAS, Calculations of the annual tax revenues that Texas could earn from gaming are between $3 billion and $4.5 billion when factoring in the construction of upscale casinos, the licensing of gambling at the state's Indian reservations, and the installation of slot machines at existing licensed horse and greyhound racetracks; the annual economic impact of such development could reach $50 billion; and

WHEREAS, Communities with racetracks are presently losing business to other states where racetracks offer consumers alternative gaming opportunities, and the state's racehorse industry is losing business to competitors in states where income from video lottery terminals supports breeding programs and higher purses; and

WHEREAS, Development of resort casinos would exert an economic stimulus in surrounding communities initially through construction employment and later through employment not only at the casinos but also in the retail, restaurant, recreation, and other tourist businesses that would soon flourish; and

WHEREAS, In order to maximize the economic benefits of the gaming industry to the state and to local communities, Texas must develop a comprehensive and coherent strategy that considers such aspects as the areas of the state that would be most suitable for specific types of gaming facilities, the types of gaming that would be of economic benefit to individual communities, and the types of gaming that would provide maximum financial benefit to the state; and

WHEREAS, The vast potential for new tax revenue streams and economic stimulus demands a careful evaluation of the business environments in individual communities and of the direct and indirect benefits of the gaming industry to those communities and to the state; now, therefore, be it

RESOLVED, That the 81st Legislature of the State of Texas hereby respectfully request the lieutenant governor and the speaker of the house of representatives to create a joint interim committee to study the gaming industry in Texas and its potential direct and indirect economic impact on specific markets and on the state as a whole; and, be it further

RESOLVED, That the committee's proceedings and operations be governed by such general rules and policies for joint interim committees as the 81st Legislature may adopt; and, be it further

RESOLVED, That the committee submit a full report, including findings and recommendations, to the 82nd Texas Legislature when it convenes in January 2011.