83R4933 DDT-D

By: Van de Putte S.J.R. No. 37

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature to legalize the operation of video gaming in this state by persons and organizations licensed to conduct bingo or lease bingo premises and providing that federally recognized Indian tribes are not prohibited from conducting gaming on certain Indian lands.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 47, Article III, Texas Constitution, is amended by amending Subsection (a) and adding Subsection (f) 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), and (f) of this section and Section 47a of this article.

(f) This section does not prohibit a federally recognized Indian tribe from conducting video gaming on land in this state that was held in trust or recognized as tribal land of the tribe by the United States on January 1, 1998. The prohibitions provided by Section 47a of this article do not apply to video gaming by an Indian tribe on such land.

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

Sec. 47a. (a) In this section, "gross gaming income" means the total amount of consideration paid to play a video gaming game less any amounts paid for video gaming prizes.

(b) The legislature by general law in accordance with this section may authorize the operation of video gaming in this state in which individuals play games of chance, including games of chance that require some skill, operated by persons licensed to conduct video gaming. The law must:

(1) provide for the regulation of all video gaming by this state;

(2) limit video gaming operations in this state to gaming operated by persons or organizations that on January 1, 2013, were licensed to conduct bingo or to lease bingo premises under state law;

(3) limit video gaming operations in this state to gaming operations in counties, justice precincts, and incorporated cities and towns that have held elections in which the conduct of bingo games in the jurisdiction was approved by the voters of the jurisdiction as required under Section 47(b) of this article;

(4) provide:

(A) a comprehensive licensing program, including necessary background investigations, to govern a person who conducts or assists in the conduct of video gaming operations in this state or who manufactures, distributes, installs, repairs, or alters video gaming games and equipment for use or play in this state; and

(B) procedures for the approval, monitoring, and inspection of video gaming operations as necessary to protect the public health, welfare, and safety and the integrity of this state and to prevent financial loss to this state;

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

(6) provide that not more than 20 percent of the gross gaming income generated from video gaming operated by a licensed person or organization be transferred to this state as provided by general law;

(7) require that 10 percent of the gross gaming income generated from video gaming operated by a licensed person or organization at a location be transferred to:

(A) the charitable organization conducting bingo at the location; or

(B) if more than one charitable organization is conducting bingo at the location, the organizations in equal amounts;

(8) limit the use by charitable organizations of video gaming proceeds to the uses authorized by law for charitable bingo proceeds;

(9) include responsible gaming provisions that:

(A) to protect the security and integrity of video gaming, require mandatory exclusion of specified classes of persons from playing a video gaming game; and

(B) allow persons to be excluded voluntarily;

(10) prohibit admission to video gaming premises by any individual who is less than 18 years of age and prohibit the play of a video gaming game by an individual who is less than 21 years of age;

(11) prohibit the play of video gaming games by an individual using any consideration borrowed from the person or organization licensed to conduct video gaming or obtained through a credit card or similar credit transaction; and

(12) require the regulatory agency that oversees video gaming to:

(A) monitor the performance of video gaming systems and to direct the disabling of a video system or any component of the system when necessary to protect the security, accounting, revenue collection, and integrity of video gaming operations; or

(B) contract with a qualified person for the person to perform the duties described by Paragraph (A) of this subdivision.

(c) The general law authorizing the operation of video gaming in this state may:

(1) require a manufacturer of video gaming equipment to supply to this state, at no cost to the state, sufficient equipment and software to allow the regulatory agency that oversees video gaming to perform the agency's regulatory functions;

(2) authorize the regulatory agency that oversees video gaming to adopt by reference all or part of the security, accounting, and equipment standards adopted by another state, the United States, or the National Indian Gaming Commission; and

(3) subject to the limitations provided by this section and as required to protect the security, accounting, revenue collection, and integrity of video gaming operations, provide for rapid implementation of video gaming to expedite and maximize the receipt of revenue by this state and charitable organizations.

(d) In the absence of enabling legislation to implement Subsection (b) of this section, the authority of this state to authorize and regulate bingo games under Section 47(b) of this article includes the authority of the state agency that regulates bingo to adopt rules to implement video gaming operations in accordance with Subsection (b) of this section.

(e) All shipments of video 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.

(f) Subject to Subsection (g) of this section, the general law authorizing the operation of video gaming in this state must limit the number of video gaming terminals that may be located at a video gaming premises as follows:

(1) not more than 30 video gaming terminals may be operated at a video gaming premises where:

(A) a charitable organization conducts video gaming at a bingo premises that is not leased from a licensed bingo lessor; or

(B) one or more charitable organizations conduct video gaming at a bingo premises leased from a licensed bingo lessor who received not more than $30,000 from the organizations for lease of the bingo premises in 2012;

(2) not more than 60 video gaming terminals may be operated at a video gaming premises where one or more charitable organizations conduct video gaming at a bingo premises leased from a licensed bingo lessor who received more than $30,000 but not more than $70,000 from the organizations for lease of the bingo premises in 2012; and

(3) not more than 120 video gaming terminals may be operated at a video gaming premises where one or more charitable organizations conduct video gaming at a bingo premises leased from a licensed bingo lessor that received more than $70,000 from the organizations for lease of the bingo premises in 2012.

(g) The legislature by general law may increase the limits on the number of video gaming terminals that may be operated at a video gaming premises under Subsection (f) of this section, provided the law does not authorize the number of video gaming terminals at any video gaming premises to exceed those limits before December 1, 2018.

SECTION 3. 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 legislature to legalize the operation of video gaming in this state by persons and organizations licensed to conduct bingo or lease bingo premises and providing that federally recognized Indian tribes are not prohibited from conducting gaming on certain Indian lands."