82R12667 YDB-F
 
  By: Ellis, Lucio S.J.R. No. 34
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment creating the Texas Gaming
  Commission and authorizing and regulating casino games and slot
  machines by licensed operators and certain Indian tribes to provide
  money for the property tax relief fund and additional financial aid
  for higher education students.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 47(a), 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) Casino gaming is authorized in this state in
  accordance with this section to provide additional money for the
  property tax relief fund and additional financial aid for higher
  education students.
         (b)  The Texas Gaming Commission is established. The
  commission is composed of five members appointed by the governor
  with the advice and consent of the senate. Commission members serve
  staggered six-year terms, with one or two members' terms, as
  applicable, expiring February 1 of each odd-numbered year.  The
  governor shall fill a vacancy in a position on the commission for
  the remainder of the unexpired term. The governor shall designate a
  commission member as presiding officer of the commission to serve
  in that capacity at the pleasure of the governor.
         (c)  To be eligible for appointment to the commission, a
  person:
               (1)  must be a citizen of the United States;
               (2)  must have resided in this state for the two years
  preceding the date of the person's appointment;
               (3)  may not own a financial or other interest in an
  entity engaged in the conduct of gaming or the provision of casino
  or slot services, or in a security issued by such an entity, or be
  related within the second degree by affinity or the third degree by
  consanguinity as determined by general law to an individual who
  owns such a financial or other interest or security;
               (4)  may not be an applicant for or holder of a license
  or other affirmative regulatory approval under a law administered
  by the commission; and
               (5)  may not be a member of the governing body of a
  political subdivision of this state.
         (d)  The Texas Gaming Commission has broad authority and
  shall exercise strict control and close supervision over all
  activities related to casino and slot gaming authorized and
  conducted in this state under this section or another law
  administered by the commission.
         (e)  The Texas Gaming Commission shall appoint an executive
  director and other necessary personnel and adopt rules the
  commission considers necessary or desirable for the public interest
  in carrying out the policy and provisions of this section and the
  other laws administered by the commission, including rules on:
               (1)  licensing and regulating casino owners, slot
  establishment owners, gaming managers, gaming employees, and
  manufacturers and distributors of gaming equipment, including the
  qualifications, definitions, terms, and fees for licenses;
               (2)  criteria for awarding, denying, revoking, and
  suspending licenses;
               (3)  exclusion of persons and age requirements;
               (4)  procedures for conducting investigations,
  inspections, criminal background investigations, audits, complaint
  investigations, and disciplinary hearings;
               (5)  reporting and internal control requirements for
  license holders;
               (6)  consequences of criminal convictions of license
  holders or applicants;
               (7)  enforcement provisions, including disciplinary
  actions and penalties, and security requirements;
               (8)  prize payment and redemption;
               (9)  regulating the operations of casinos and slot
  establishments; and
               (10)  standards for gaming equipment.
         (f)  The Texas Gaming Commission shall:
               (1)  issue not more than eight licenses to operate slot
  establishments in this state to persons who are licensed to conduct
  pari-mutuel wagering on horse or greyhound races at the location
  licensed for conducting pari-mutuel wagering on horse or greyhound
  races and who comply with requirements of this section and
  commission rule;
               (2)  issue not more than six licenses to conduct casino
  gaming to casino-anchored destination attraction development
  projects located in different urban areas of this state that comply
  with requirements of this section and commission rule;
               (3)  issue not more than two licenses to conduct casino
  gaming to casino-anchored destination attraction development
  projects located 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, 2011, and
  that comply with requirements of this section and commission rule;
  and
               (4)  allow an Indian tribe that is recognized by the
  United States government under federal law to operate slot machines
  or casino gaming on its Indian land held in trust by the United
  States on January 1, 1998, in accordance with federal law and:
                     (A)  an effective gaming agreement that includes a
  provision requiring the Indian tribe to remit to this state a
  portion of its gaming revenue in an amount equal to the rate
  provided in the agreement; or
                     (B)  general state law that includes a provision
  requiring the Indian tribe to remit to this state a portion of its
  gaming revenue in an amount equal to the rate provided by the
  general law.
         (g)  In determining whether or, in the case of multiple
  applicants competing for a limited number of casino owner's
  licenses or slot establishment owner's licenses within a geographic
  area, to whom to grant a license, the Texas Gaming Commission shall
  consider the following factors:
               (1)  the relative prospective revenue to be collected
  by this state from the conduct of casino gaming at the casino or
  slot gaming at the slot establishment and the overall economic
  impact of each competing applicant's proposed gaming and associated
  facilities;
               (2)  the relative number of residents of this state who
  would be employed in an applicant's proposed casino or slot
  establishment and any proposed associated hotel and nongaming
  businesses and the relative extent of the applicant's good faith
  plan to recruit, train, and promote a workforce that reflects the
  diverse populations of this state in all employment
  classifications;
               (3)  the relative extent to which an applicant's
  proposed casino or slot establishment and any proposed associated
  hotel and nongaming businesses could be reasonably expected to
  encourage interstate tourism to this state;
               (4)  the relative extent to which the scope, design,
  location, and construction of the applicant's casino or slot
  establishment and any associated hotel and nongaming businesses
  could be reasonably expected to contribute to developing a
  first-class gaming industry in this state;
               (5)  the applicant's experience in conducting licensed
  gaming operations and the applicant's financial ability to promptly
  construct and adequately maintain the casino or slot establishment
  sought to be licensed, including the experience of partners of the
  applicant, of affiliated companies of the applicant or its
  partners, of key personnel of the applicant or its partners, and of
  operating companies under contract with the applicant; and
               (6)  the percentage of equity interest in the applicant
  owned or to be owned by residents of this state.
         (h)  To ensure that a requisite level of economic development
  benefiting the people of this state accompanies each casino or slot
  establishment for which an owner's license is granted, the Texas
  Gaming Commission shall require an applicant, as a condition to
  receiving and holding an owner's license, to commit to building a
  casino-anchored destination attraction development project or slot
  establishment that includes 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; or
               (3)  $150 million for a slot establishment.
         (i)  Notwithstanding Subsection (f) of this section:
               (1)  a license for a casino-anchored destination
  attraction development project may not be issued in a county
  unless:
                     (A)  a majority of the voters of the county voted
  for the proposition that added this section to this constitution;
  or
                     (B)  the voters of the county have approved a
  proposition legalizing casino gaming at a local option election
  held under this section;
               (2)  not more than two casino owner's licenses may be
  issued for casinos to be located in the same county; and
               (3)  a casino owner's license may not be issued for a
  location in an area in which casino gaming or slot gaming is
  prohibited under a gaming agreement between an Indian tribe and
  this state.
         (j)  The Texas casino and slot gaming fund is a special fund
  in the state treasury.  All application fees, investigation fees,
  and license fees collected by the Texas Gaming Commission or on the
  commission's behalf related to casino and slot gaming shall be
  deposited to the credit of the Texas casino and slot gaming fund.
  Except as provided by this section, the Texas casino and slot gaming
  fund shall be used only for the operation of the commission and the
  administration of this section. If the money in the fund exceeds
  the amount necessary for the operation of the commission and the
  administration of this section, the legislature shall transfer any
  excess amount to the dedicated account known as the property tax
  relief fund in the general revenue fund. Money from the property
  tax relief fund shall be appropriated only for a purpose that
  results in a reduction of the average school district maintenance
  and operations tax rate or as otherwise provided by general law.
         (k)  An applicant applying for an owner's license for a
  casino-anchored destination attraction development project must
  submit to the Texas Gaming Commission a $50 million application
  fee. An applicant applying for an owner's license for a slot
  establishment must submit to the commission a $25 million
  application fee. If an applicant is not awarded an owner's license,
  the commission shall refund the application fee less the costs
  incurred by the commission in reviewing the application and
  conducting a criminal background investigation on the applicant.
         (l)  A gaming tax in an amount equal to 15 percent of the
  gross gaming revenue of the casino operated under the license is
  imposed on each holder of a casino owner's license. The tax shall be
  computed and paid on a monthly basis in accordance with the
  procedures established by rule of the Texas Gaming Commission.
         (m)  A slot gaming tax in an amount equal to 35 percent of the
  gross slot income of the slot establishment operated under the
  license is imposed on each holder of a slot establishment owner's
  license. The tax shall be computed and paid on a monthly basis in
  accordance with the procedures established by rule of the Texas
  Gaming Commission.
         (n)  Of the revenue from the taxes imposed by Subsections (l)
  and (m) of this section:
               (1)  one-thirtieth of the revenue is allocated to the
  municipality in which the casino to which the license relates is
  located and one-thirtieth of the revenue is allocated to the county
  in which the casino to which the license relates is located; or
               (2)  if the casino is located in an unincorporated
  area, one-fifteenth of the revenue is allocated to the county in
  which the casino to which the license relates is located.
         (o)  The comptroller of public accounts shall transfer the
  appropriate amount allocated under Subsection (n) to the
  appropriate municipalities and counties not less than monthly in
  the manner the comptroller considers appropriate.
         (p)  Except as otherwise provided by this section, the
  revenue from the taxes imposed by Subsections (l) and (m) of this
  section is allocated as follows:
               (1)  one-twentieth to the general revenue fund for
  appropriation only to fund a compulsive gambling program
  established by the Texas Gaming Commission;
               (2)  one-thirtieth to the general revenue fund for
  appropriation only to the Texas Gaming Commission to provide grants
  to prosecuting attorneys for the investigation and prosecution of
  offenses related to the possession of gambling devices and illegal
  gambling operations; and
               (3)  the remainder to the property tax relief fund in
  the general revenue fund.
         (q)  The comptroller of public accounts quarterly shall
  determine the net amount of receipts collected from a casino or slot
  establishment from the sales and use taxes, hotel occupancy taxes,
  alcoholic beverage taxes, and franchise taxes imposed under general
  law, or from other taxes imposed under general law as provided by
  the legislature in general law, and shall deposit that amount in the
  general revenue fund. The net amount deposited may only be
  appropriated to fund the TEXAS grant program established under
  Subchapter M, Chapter 56, Education Code, or a similar program
  established by the legislature to provide grants to higher
  education students in this state.
         (r)  Not more than 10 percent of the total floor space of a
  casino or slot establishment may be used for gaming areas.
         (s)  Casinos and slot establishments are subject to all
  applicable state laws and local ordinances related to health and
  building codes, including rules adopted by the Texas Gaming
  Commission. A local ordinance or zoning law may not prohibit the
  development of a casino or slot establishment authorized by this
  section, except that a casino or slot establishment may not be
  located in an area that on January 1, 2011, was zoned exclusively
  residential, unless otherwise provided by commission rule.
         (t)  The commissioners court of a county may at any time
  order an election to legalize casino gaming under this section in
  that county. The commissioners court shall order and hold an
  election to legalize gaming under this section in the county if the
  commissioners court is presented with a petition that meets the
  requirements of this section and is certified as valid under this
  section.
         (u)  A petition for a legalization election must include a
  statement substantially as follows before the space reserved for
  signatures on each page: "This petition is to require that an
  election be held in (name of county) to legalize casino gaming in
  (name of county)."  A petition is valid only if it is signed by
  registered voters of the county in a number that is not less than
  three percent of the total number of votes cast for governor by
  qualified voters of the county in the most recent gubernatorial
  general election. Each voter must enter beside the voter's
  signature the date the voter signs the petition. A signature may
  not be counted as valid if the date of signing is earlier than the
  90th day before the date the petition is submitted to the
  commissioners court. Each voter must provide on the petition the
  voter's current voter registration number, printed name, and
  residence address, including zip code.
         (v)  Not later than the fifth day after the date a petition
  for an election under this chapter is received in the office of the
  commissioners court, the commissioners court shall submit the
  petition for verification to the county clerk. The county clerk
  shall determine whether the petition is signed by the required
  number of registered voters of the county. Not later than the 30th
  day after the date the petition is submitted to the clerk for
  verification, the clerk shall certify in writing to the
  commissioners court whether the petition is valid or invalid. If
  the clerk determines that the petition is invalid, the clerk shall
  state the reasons for that determination.
         (w)  If the county clerk certifies that a petition is valid,
  not later than the 30th day after the date of certification, the
  commissioners court shall order that an election be held in the
  county on the next uniform election date provided under general law
  that allows sufficient time to comply with applicable provisions of
  general law. The commissioners court shall state in the order the
  issue to be voted on. The county clerk shall notify the Texas
  Gaming Commission by certified mail, return receipt requested, that
  an election has been ordered. The ballot in a legalization election
  shall be printed to provide for voting for or against the
  proposition: "Legalizing casino gaming within (name of county)."
         (x)  If the majority of the votes cast in a legalization
  election favor the legalization of casino gaming, casino gaming
  authorized under this chapter is permitted within the county
  holding the election effective on the 10th day after the date of the
  election.  The commissioners court of a county in which a
  legalization election has been held shall give written notice of
  the results of the election to the Texas Gaming Commission not later
  than the third day after the date the election is canvassed.  If
  less than a majority of the votes cast in a legalization election in
  any county are cast in favor of the legalization of casino gaming,
  casino gaming is not permitted in the county, and a subsequent
  election on the issue may not be held in the county before the
  corresponding uniform election date one year after the date of the
  election. If less than a majority of the votes cast in two
  consecutive legalization elections within any county are cast in
  favor of the legalization of casino gaming, casino gaming is not
  permitted in the county, and a subsequent election on the issue may
  not be held in the county before the corresponding uniform election
  date five years after the date of the second election.
         (y)  It is a defense to prosecution for a gambling offense
  under general law that the action was authorized under this section
  or Texas Gaming Commission rule.
         (z)  All shipments of video lottery terminals or gaming
  devices into, out of, or within this state authorized under this
  section or a rule adopted by the Texas Gaming Commission are legal
  shipments of the devices and are exempt from the provisions of 15
  U.S.C. Sections 1171-1178, prohibiting the transportation of
  gambling devices.
         (aa)  Each state agency, including the attorney general and
  the comptroller of public accounts and each state or local law
  enforcement agency, shall cooperate with the Texas Gaming
  Commission as necessary to implement this section.
         (bb)  The legislature by general law may impose additional
  restrictions or requirements for the conduct of casino and slot
  gaming.
         (cc) Unless specifically authorized by general law, a
  political subdivision of this state may not impose:
               (1)  a tax on the payment of a casino or slot prize;
               (2)  a tax, fee, or other assessment on consideration
  paid to play a casino or slot game authorized by this section; or
               (3)  a tax or fee on attendance at or admission to a
  casino or slot establishment authorized by this section.
         (dd)  In this section, unless modified by general law:
               (1)  "Casino" means a facility at which casino gaming
  is conducted by a licensed casino owner as authorized by this
  section.
               (2)  "Casino gaming" means any game of chance or
  similar activity that involves the making of a bet for
  consideration. The term includes any type of slot machine or table
  game wagering using money, casino credit, or any representation of
  value. The term does not include bingo, charitable raffles, or the
  state lottery authorized under Section 47 of this article.
               (3)  "Casino owner" means a person, trust, corporation,
  partnership, limited partnership, association, limited liability
  company, or other business enterprise that directly holds an
  ownership or leasehold interest in a casino licensed as provided by
  this section.
               (4)  "Gross gaming revenue" means the total amount of
  consideration paid to play casino games less winnings paid to
  players of the casino games.
               (5)  "Gross slot income" means the total amount of
  consideration paid to play slot machines less winnings paid to
  players of the slot machines.
               (6)  "Slot establishment" means a facility at which
  slot gaming is conducted by a licensed slot establishment owner as
  authorized by this section.
               (7)  "Slot establishment owner" means a person, trust,
  corporation, partnership, limited partnership, association,
  limited liability company, or other business enterprise that
  directly holds an ownership or leasehold interest in a slot
  establishment.
               (8)  "Slot gaming" means any game of chance that for
  consideration is played on a slot machine. The term does not
  include bingo, charitable raffles, or the state lottery authorized
  under Section 47 of this article.
               (9)  "Slot machine" means a mechanical, electrical, or
  other device or machine that, on insertion of a coin, token, or
  similar object or on payment of consideration, is available to play
  or operate a game, the play or operation of which, wholly or partly
  by the element of chance, may deliver or entitle the person playing
  or operating the device or machine to receive cash, premiums,
  merchandise, tokens, or any other thing of value, whether the
  payoff is made automatically from the device or machine or is made
  in another manner.
         SECTION 3.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a) This temporary provision applies
  to the constitutional amendment proposed by the 82nd Legislature,
  Regular Session, 2011, creating the Texas Gaming Commission and
  authorizing and regulating casino games and slot machines by
  licensed operators and certain Indian tribes to provide money for
  the property tax relief fund and additional financial aid for
  higher education students.
         (b)  Not later than January 1, 2012, the governor shall
  appoint the initial members of the Texas Gaming Commission in
  accordance with Section 47a, Article III, of this constitution. In
  making the initial appointments, the governor shall designate one
  member to a term expiring February 1, 2013, two members to terms
  expiring February 1, 2015, and two members to terms expiring
  February 1, 2017.
         (c)  Not later than March 1, 2012, the Texas Gaming
  Commission shall adopt the rules, including any emergency rules,
  necessary to implement Section 47a, Article III, of this
  constitution.
         (d)  This temporary provision expires January 1, 2013.
         SECTION 4.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 8, 2011.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment creating the Texas
  Gaming Commission and authorizing and regulating casino games and
  slot machines by licensed operators and certain Indian tribes to
  provide money for the property tax relief fund and additional
  financial aid for higher education students."