83R4572 YDB-F

By: Thompson of Harris H.J.R. No. 117

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the operation of casino games in this state by federally recognized Indian tribes on certain land.

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 by Section 47a of this article.

SECTION 2. Article III, Texas Constitution, is amended by adding Section 47a to read as follows:

Sec. 47a. (a) The legislature by general law in accordance with this section shall authorize the operation of casino gaming in this state in which individuals for consideration play games of chance that award prizes and are operated by persons licensed or otherwise authorized by this state to conduct casino gaming. The law must:

(1) limit casino gaming operations in this state to gaming operated by federally recognized Indian tribes operating under state law or under a compact with this state in the form prescribed by general law or negotiated by the secretary of state, on land designated by the applicable tribe for casino gaming operations and held in trust by the United States for the tribes or acquired by the tribes that is not more than five miles from the border of the land held in trust by the tribes;

(2) provide for the regulation of all casino gaming by agencies of this state and the Indian tribes;

(3) provide:

(A) a comprehensive certification or licensing program, including necessary background investigations, to govern a person that manages casino gaming operations in this state or that maintains, manufactures, distributes, sells, or leases casino games for use or play in this state;

(B) procedures for the state agency responsible for conducting criminal background investigations for this state to provide criminal background information to the state and tribal agencies responsible for certification or licensing under Paragraph (A) of this subdivision; and

(C) procedures for the monitoring and inspection of casino gaming operations as necessary to protect the public health, welfare, and safety, to preserve the integrity of this state, the Indian tribes, and gaming operations in this state, and to prevent financial loss to this state and the tribes;

(4) prohibit and impose criminal penalties for the possession and operation of all gaming devices other than devices operated in connection with authorized casino gaming operations or gaming devices otherwise authorized by state law; and

(5) provide that not less than eight percent of the gross gaming revenue generated from casino gaming operated by an Indian tribe shall be transferred to this state in accordance with the conditions set forth in the compact authorizing the tribe to operate casino gaming operations or as provided by general law.

(b) A federally recognized Indian tribe operating casino gaming operations under state law or under a compact with this state may enter into a memorandum of understanding or similar agreement with this state and the National Indian Gaming Commission that, for Class II gaming as defined under the Indian Gaming Regulatory Act (Pub. L. No. 100-497), authorizes the National Indian Gaming Commission to perform the duties imposed under Subsection (a)(3) of this section.

(c) In the absence of enabling legislation to implement Subsection (a) of this section, the authority of this state to operate lotteries under Section 47(e) of this article includes the authority of the state agency that operates state lotteries to adopt rules to implement casino gaming operations in accordance with Subsection (a) of this section, and the state agency shall adopt rules to implement casino gaming operations in accordance with Subsection (a) of this section.

(d) The legislature may authorize a portion of the revenue received by this state from the operation of casino gaming under this section to be distributed to counties and municipalities impacted by those activities.

(e) All shipments of casino gaming equipment or other gaming devices into, out of, or within this state authorized under this section or a law enacted under this section 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.

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 83rd Legislature, Regular Session, 2013, authorizing the operation of casino games in this state by federally recognized Indian tribes on certain land.

(b) Not later than December 15, 2013, the executive director of the Texas Lottery Commission shall appoint an Indian Gaming Advisory Committee to assist the Texas Lottery Commission with implementing Section 47a, Article III, of this constitution. The advisory committee must include the following:

(1) one member with understanding and experience working in the Indian gaming industry;

(2) one member with experience and knowledge in Indian gaming regulation;

(3) three members to represent the federally recognized Indian tribes in this state, one from each tribe; and

(4) other members the executive director considers necessary.

(c) Not later than December 31, 2013, the Texas Lottery 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, 2015.

SECTION 4. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the operation of casino games in this state by federally recognized Indian tribes on certain land."