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A JOINT RESOLUTION
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proposing a constitutional amendment creating the Texas Gaming |
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Commission and authorizing and regulating casino games and slot |
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machines by licensed operators and certain Indian tribes to provide |
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money for the property tax relief fund and additional financial aid |
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for higher education students. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 47(a), Article III, Texas Constitution, |
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is amended to read as follows: |
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(a) The Legislature shall pass laws prohibiting lotteries |
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and gift enterprises in this State other than those authorized by |
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Subsections (b), (d), and (e) of this section and Section 47a of |
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this article. |
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SECTION 2. Article III, Texas Constitution, is amended by |
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adding Section 47a to read as follows: |
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Sec. 47a. (a) Casino gaming is authorized in this state in |
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accordance with this section to provide additional money for the |
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property tax relief fund and additional financial aid for higher |
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education students. |
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(b) The Texas Gaming Commission is established. The |
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commission is composed of five members appointed by the governor |
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with the advice and consent of the senate. Commission members serve |
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staggered six-year terms, with one or two members' terms, as |
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applicable, expiring February 1 of each odd-numbered year. The |
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governor shall fill a vacancy in a position on the commission for |
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the remainder of the unexpired term. The governor shall designate a |
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commission member as presiding officer of the commission to serve |
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in that capacity at the pleasure of the governor. |
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(c) To be eligible for appointment to the commission, a |
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person: |
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(1) must be a citizen of the United States; |
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(2) must have resided in this state for the two years |
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preceding the date of the person's appointment; |
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(3) may not own a financial or other interest in an |
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entity engaged in the conduct of gaming or the provision of casino |
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or slot services, or in a security issued by such an entity, or be |
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related within the second degree by affinity or the third degree by |
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consanguinity as determined by general law to an individual who |
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owns such a financial or other interest or security; |
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(4) may not be an applicant for or holder of a license |
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or other affirmative regulatory approval under a law administered |
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by the commission; and |
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(5) may not be a member of the governing body of a |
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political subdivision of this state. |
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(d) The Texas Gaming Commission has broad authority and |
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shall exercise strict control and close supervision over all |
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activities related to casino and slot gaming authorized and |
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conducted in this state under this section or another law |
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administered by the commission. |
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(e) The Texas Gaming Commission shall appoint an executive |
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director and other necessary personnel and adopt rules the |
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commission considers necessary or desirable for the public interest |
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in carrying out the policy and provisions of this section and the |
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other laws administered by the commission, including rules on: |
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(1) licensing and regulating casino owners, slot |
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establishment owners, gaming managers, gaming employees, and |
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manufacturers and distributors of gaming equipment, including the |
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qualifications, definitions, terms, and fees for licenses; |
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(2) criteria for awarding, denying, revoking, and |
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suspending licenses; |
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(3) exclusion of persons and age requirements; |
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(4) procedures for conducting investigations, |
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inspections, criminal background investigations, audits, complaint |
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investigations, and disciplinary hearings; |
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(5) reporting and internal control requirements for |
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license holders; |
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(6) consequences of criminal convictions of license |
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holders or applicants; |
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(7) enforcement provisions, including disciplinary |
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actions and penalties, and security requirements; |
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(8) prize payment and redemption; |
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(9) regulating the operations of casinos and slot |
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establishments; and |
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(10) standards for gaming equipment. |
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(f) The Texas Gaming Commission shall: |
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(1) issue not more than eight licenses to operate slot |
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establishments in this state to persons who are licensed to conduct |
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pari-mutuel wagering on horse or greyhound races at the location |
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licensed for conducting pari-mutuel wagering on horse or greyhound |
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races and who comply with requirements of this section and |
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commission rule; |
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(2) issue not more than six licenses to conduct casino |
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gaming to casino-anchored destination attraction development |
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projects located in different urban areas of this state that comply |
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with requirements of this section and commission rule; |
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(3) issue not more than two licenses to conduct casino |
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gaming to casino-anchored destination attraction development |
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projects located on islands in the Gulf of Mexico that are tourist |
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destinations with at least 1,000 guest rooms available for visitors |
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in hotels, motels, or condominiums existing on January 1, 2011, and |
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that comply with requirements of this section and commission rule; |
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and |
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(4) allow an Indian tribe that is recognized by the |
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United States government under federal law to operate slot machines |
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or casino gaming on its Indian land held in trust by the United |
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States on January 1, 1998, in accordance with federal law and: |
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(A) an effective gaming agreement that includes a |
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provision requiring the Indian tribe to remit to this state a |
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portion of its gaming revenue in an amount equal to the rate |
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provided in the agreement; or |
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(B) general state law that includes a provision |
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requiring the Indian tribe to remit to this state a portion of its |
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gaming revenue in an amount equal to the rate provided by the |
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general law. |
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(g) In determining whether or, in the case of multiple |
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applicants competing for a limited number of casino owner's |
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licenses or slot establishment owner's licenses within a geographic |
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area, to whom to grant a license, the Texas Gaming Commission shall |
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consider the following factors: |
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(1) the relative prospective revenue to be collected |
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by this state from the conduct of casino gaming at the casino or |
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slot gaming at the slot establishment and the overall economic |
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impact of each competing applicant's proposed gaming and associated |
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facilities; |
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(2) the relative number of residents of this state who |
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would be employed in an applicant's proposed casino or slot |
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establishment and any proposed associated hotel and nongaming |
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businesses and the relative extent of the applicant's good faith |
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plan to recruit, train, and promote a workforce that reflects the |
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diverse populations of this state in all employment |
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classifications; |
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(3) the relative extent to which an applicant's |
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proposed casino or slot establishment and any proposed associated |
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hotel and nongaming businesses could be reasonably expected to |
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encourage interstate tourism to this state; |
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(4) the relative extent to which the scope, design, |
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location, and construction of the applicant's casino or slot |
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establishment and any associated hotel and nongaming businesses |
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could be reasonably expected to contribute to developing a |
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first-class gaming industry in this state; |
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(5) the applicant's experience in conducting licensed |
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gaming operations and the applicant's financial ability to promptly |
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construct and adequately maintain the casino or slot establishment |
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sought to be licensed, including the experience of partners of the |
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applicant, of affiliated companies of the applicant or its |
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partners, of key personnel of the applicant or its partners, and of |
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operating companies under contract with the applicant; and |
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(6) the percentage of equity interest in the applicant |
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owned or to be owned by residents of this state. |
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(h) To ensure that a requisite level of economic development |
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benefiting the people of this state accompanies each casino or slot |
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establishment for which an owner's license is granted, the Texas |
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Gaming Commission shall require an applicant, as a condition to |
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receiving and holding an owner's license, to commit to building a |
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casino-anchored destination attraction development project or slot |
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establishment that includes total land and development costs of at |
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least: |
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(1) $400 million for an urban area project; |
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(2) $200 million for an island tourist destination |
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project; or |
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(3) $150 million for a slot establishment. |
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(i) Notwithstanding Subsection (f) of this section: |
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(1) a license for a casino-anchored destination |
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attraction development project may not be issued in a county |
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unless: |
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(A) a majority of the voters of the county voted |
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for the proposition that added this section to this constitution; |
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or |
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(B) the voters of the county have approved a |
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proposition legalizing casino gaming at a local option election |
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held under this section; |
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(2) not more than two casino owner's licenses may be |
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issued for casinos to be located in the same county; and |
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(3) a casino owner's license may not be issued for a |
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location in an area in which casino gaming or slot gaming is |
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prohibited under a gaming agreement between an Indian tribe and |
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this state. |
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(j) The Texas casino and slot gaming fund is a special fund |
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in the state treasury. All application fees, investigation fees, |
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and license fees collected by the Texas Gaming Commission or on the |
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commission's behalf related to casino and slot gaming shall be |
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deposited to the credit of the Texas casino and slot gaming fund. |
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Except as provided by this section, the Texas casino and slot gaming |
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fund shall be used only for the operation of the commission and the |
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administration of this section. If the money in the fund exceeds |
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the amount necessary for the operation of the commission and the |
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administration of this section, the legislature shall transfer any |
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excess amount to the dedicated account known as the property tax |
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relief fund in the general revenue fund. Money from the property |
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tax relief fund shall be appropriated only for a purpose that |
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results in a reduction of the average school district maintenance |
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and operations tax rate or as otherwise provided by general law. |
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(k) An applicant applying for an owner's license for a |
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casino-anchored destination attraction development project must |
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submit to the Texas Gaming Commission a $50 million application |
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fee. An applicant applying for an owner's license for a slot |
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establishment must submit to the commission a $25 million |
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application fee. If an applicant is not awarded an owner's license, |
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the commission shall refund the application fee less the costs |
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incurred by the commission in reviewing the application and |
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conducting a criminal background investigation on the applicant. |
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(l) A gaming tax in an amount equal to 15 percent of the |
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gross gaming revenue of the casino operated under the license is |
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imposed on each holder of a casino owner's license. The tax shall be |
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computed and paid on a monthly basis in accordance with the |
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procedures established by rule of the Texas Gaming Commission. |
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(m) A slot gaming tax in an amount equal to 35 percent of the |
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gross slot income of the slot establishment operated under the |
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license is imposed on each holder of a slot establishment owner's |
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license. The tax shall be computed and paid on a monthly basis in |
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accordance with the procedures established by rule of the Texas |
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Gaming Commission. |
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(n) Of the revenue from the taxes imposed by Subsections (l) |
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and (m) of this section: |
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(1) one-thirtieth of the revenue is allocated to the |
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municipality in which the casino to which the license relates is |
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located and one-thirtieth of the revenue is allocated to the county |
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in which the casino to which the license relates is located; or |
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(2) if the casino is located in an unincorporated |
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area, one-fifteenth of the revenue is allocated to the county in |
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which the casino to which the license relates is located. |
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(o) The comptroller of public accounts shall transfer the |
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appropriate amount allocated under Subsection (n) to the |
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appropriate municipalities and counties not less than monthly in |
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the manner the comptroller considers appropriate. |
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(p) Except as otherwise provided by this section, the |
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revenue from the taxes imposed by Subsections (l) and (m) of this |
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section is allocated as follows: |
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(1) one-twentieth to the general revenue fund for |
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appropriation only to fund a compulsive gambling program |
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established by the Texas Gaming Commission; |
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(2) one-thirtieth to the general revenue fund for |
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appropriation only to the Texas Gaming Commission to provide grants |
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to prosecuting attorneys for the investigation and prosecution of |
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offenses related to the possession of gambling devices and illegal |
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gambling operations; and |
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(3) the remainder to the property tax relief fund in |
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the general revenue fund. |
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(q) The comptroller of public accounts quarterly shall |
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determine the net amount of receipts collected from a casino or slot |
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establishment from the sales and use taxes, hotel occupancy taxes, |
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alcoholic beverage taxes, and franchise taxes imposed under general |
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law, or from other taxes imposed under general law as provided by |
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the legislature in general law, and shall deposit that amount in the |
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general revenue fund. The net amount deposited may only be |
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appropriated to fund the TEXAS grant program established under |
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Subchapter M, Chapter 56, Education Code, or a similar program |
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established by the legislature to provide grants to higher |
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education students in this state. |
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(r) Not more than 10 percent of the total floor space of a |
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casino or slot establishment may be used for gaming areas. |
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(s) Casinos and slot establishments are subject to all |
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applicable state laws and local ordinances related to health and |
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building codes, including rules adopted by the Texas Gaming |
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Commission. A local ordinance or zoning law may not prohibit the |
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development of a casino or slot establishment authorized by this |
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section, except that a casino or slot establishment may not be |
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located in an area that on January 1, 2011, was zoned exclusively |
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residential, unless otherwise provided by commission rule. |
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(t) The commissioners court of a county may at any time |
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order an election to legalize casino gaming under this section in |
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that county. The commissioners court shall order and hold an |
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election to legalize gaming under this section in the county if the |
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commissioners court is presented with a petition that meets the |
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requirements of this section and is certified as valid under this |
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section. |
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(u) A petition for a legalization election must include a |
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statement substantially as follows before the space reserved for |
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signatures on each page: "This petition is to require that an |
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election be held in (name of county) to legalize casino gaming in |
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(name of county)." A petition is valid only if it is signed by |
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registered voters of the county in a number that is not less than |
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three percent of the total number of votes cast for governor by |
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qualified voters of the county in the most recent gubernatorial |
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general election. Each voter must enter beside the voter's |
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signature the date the voter signs the petition. A signature may |
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not be counted as valid if the date of signing is earlier than the |
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90th day before the date the petition is submitted to the |
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commissioners court. Each voter must provide on the petition the |
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voter's current voter registration number, printed name, and |
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residence address, including zip code. |
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(v) Not later than the fifth day after the date a petition |
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for an election under this chapter is received in the office of the |
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commissioners court, the commissioners court shall submit the |
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petition for verification to the county clerk. The county clerk |
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shall determine whether the petition is signed by the required |
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number of registered voters of the county. Not later than the 30th |
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day after the date the petition is submitted to the clerk for |
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verification, the clerk shall certify in writing to the |
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commissioners court whether the petition is valid or invalid. If |
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the clerk determines that the petition is invalid, the clerk shall |
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state the reasons for that determination. |
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(w) If the county clerk certifies that a petition is valid, |
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not later than the 30th day after the date of certification, the |
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commissioners court shall order that an election be held in the |
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county on the next uniform election date provided under general law |
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that allows sufficient time to comply with applicable provisions of |
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general law. The commissioners court shall state in the order the |
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issue to be voted on. The county clerk shall notify the Texas |
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Gaming Commission by certified mail, return receipt requested, that |
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an election has been ordered. The ballot in a legalization election |
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shall be printed to provide for voting for or against the |
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proposition: "Legalizing casino gaming within (name of county)." |
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(x) If the majority of the votes cast in a legalization |
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election favor the legalization of casino gaming, casino gaming |
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authorized under this chapter is permitted within the county |
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holding the election effective on the 10th day after the date of the |
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election. The commissioners court of a county in which a |
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legalization election has been held shall give written notice of |
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the results of the election to the Texas Gaming Commission not later |
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than the third day after the date the election is canvassed. If |
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less than a majority of the votes cast in a legalization election in |
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any county are cast in favor of the legalization of casino gaming, |
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casino gaming is not permitted in the county, and a subsequent |
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election on the issue may not be held in the county before the |
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corresponding uniform election date one year after the date of the |
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election. If less than a majority of the votes cast in two |
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consecutive legalization elections within any county are cast in |
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favor of the legalization of casino gaming, casino gaming is not |
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permitted in the county, and a subsequent election on the issue may |
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not be held in the county before the corresponding uniform election |
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date five years after the date of the second election. |
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(y) It is a defense to prosecution for a gambling offense |
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under general law that the action was authorized under this section |
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or Texas Gaming Commission rule. |
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(z) All shipments of video lottery terminals or gaming |
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devices into, out of, or within this state authorized under this |
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section or a rule adopted by the Texas Gaming Commission are legal |
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shipments of the devices and are exempt from the provisions of 15 |
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U.S.C. Sections 1171-1178, prohibiting the transportation of |
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gambling devices. |
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(aa) Each state agency, including the attorney general and |
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the comptroller of public accounts and each state or local law |
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enforcement agency, shall cooperate with the Texas Gaming |
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Commission as necessary to implement this section. |
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(bb) The legislature by general law may impose additional |
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restrictions or requirements for the conduct of casino and slot |
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gaming. |
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(cc) Unless specifically authorized by general law, a |
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political subdivision of this state may not impose: |
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(1) a tax on the payment of a casino or slot prize; |
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(2) a tax, fee, or other assessment on consideration |
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paid to play a casino or slot game authorized by this section; or |
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(3) a tax or fee on attendance at or admission to a |
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casino or slot establishment authorized by this section. |
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(dd) In this section, unless modified by general law: |
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(1) "Casino" means a facility at which casino gaming |
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is conducted by a licensed casino owner as authorized by this |
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section. |
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(2) "Casino gaming" means any game of chance or |
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similar activity that involves the making of a bet for |
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consideration. The term includes any type of slot machine or table |
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game wagering using money, casino credit, or any representation of |
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value. The term does not include bingo, charitable raffles, or the |
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state lottery authorized under Section 47 of this article. |
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(3) "Casino owner" means a person, trust, corporation, |
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partnership, limited partnership, association, limited liability |
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company, or other business enterprise that directly holds an |
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ownership or leasehold interest in a casino licensed as provided by |
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this section. |
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(4) "Gross gaming revenue" means the total amount of |
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consideration paid to play casino games less winnings paid to |
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players of the casino games. |
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(5) "Gross slot income" means the total amount of |
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consideration paid to play slot machines less winnings paid to |
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players of the slot machines. |
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(6) "Slot establishment" means a facility at which |
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slot gaming is conducted by a licensed slot establishment owner as |
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authorized by this section. |
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(7) "Slot establishment owner" means a person, trust, |
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corporation, partnership, limited partnership, association, |
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limited liability company, or other business enterprise that |
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directly holds an ownership or leasehold interest in a slot |
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establishment. |
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(8) "Slot gaming" means any game of chance that for |
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consideration is played on a slot machine. The term does not |
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include bingo, charitable raffles, or the state lottery authorized |
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under Section 47 of this article. |
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(9) "Slot machine" means a mechanical, electrical, or |
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other device or machine that, on insertion of a coin, token, or |
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similar object or on payment of consideration, is available to play |
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or operate a game, the play or operation of which, wholly or partly |
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by the element of chance, may deliver or entitle the person playing |
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or operating the device or machine to receive cash, premiums, |
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merchandise, tokens, or any other thing of value, whether the |
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payoff is made automatically from the device or machine or is made |
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in another manner. |
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SECTION 3. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 82nd Legislature, |
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Regular Session, 2011, creating the Texas Gaming Commission and |
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authorizing and regulating casino games and slot machines by |
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licensed operators and certain Indian tribes to provide money for |
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the property tax relief fund and additional financial aid for |
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higher education students. |
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(b) Not later than January 1, 2012, the governor shall |
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appoint the initial members of the Texas Gaming Commission in |
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accordance with Section 47a, Article III, of this constitution. In |
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making the initial appointments, the governor shall designate one |
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member to a term expiring February 1, 2013, two members to terms |
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expiring February 1, 2015, and two members to terms expiring |
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February 1, 2017. |
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(c) Not later than March 1, 2012, the Texas Gaming |
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Commission shall adopt the rules, including any emergency rules, |
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necessary to implement Section 47a, Article III, of this |
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constitution. |
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(d) This temporary provision expires January 1, 2013. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 8, 2011. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment creating the Texas |
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Gaming Commission and authorizing and regulating casino games and |
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slot machines by licensed operators and certain Indian tribes to |
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provide money for the property tax relief fund and additional |
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financial aid for higher education students." |