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A JOINT RESOLUTION
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proposing a constitutional amendment to foster economic |
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development and job growth and to provide tax relief and funding for |
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education and public safety by creating the Texas Gaming |
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Commission, authorizing and regulating casino gaming at a limited |
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number of destination resorts and facilities licensed by the |
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commission, authorizing sports wagering, requiring occupational |
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licenses to conduct casino gaming, and requiring the imposition of |
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a tax. |
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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), (d-1), and (e) of this section and Section 47a |
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of 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) In this section, unless modified by general |
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law: |
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(1) "Casino" means a licensed facility at which casino |
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gaming is conducted. |
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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 wagering on any type of slot |
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machine or table game as defined by the legislature, using money, |
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casino credit, or any representation of value. 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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(3) "Destination resort" means a mixed-use |
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development consisting of a combination of various tourism |
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amenities and facilities, including hotels, villas, restaurants, |
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limited gaming facilities, meeting facilities, attractions, |
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entertainment facilities, shopping centers, and casino gaming |
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facilities. |
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(4) "Education" means public education, public higher |
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education, and adult education related to responsible gaming. |
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(5) "Gaming position" means a designated position for |
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a person to engage in casino gaming at a table game or slot machine. |
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(6) "Limited casino gaming" means casino gaming in a |
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licensed facility that is limited to not more than 750 gaming |
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positions, of which not more than 25 percent may be at table games, |
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as defined by the legislature. |
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(7) "Metropolitan statistical area" means a |
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metropolitan statistical area designated by the United States |
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Office of Management and Budget. |
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(8) "Public safety programs" means programs for crime |
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prevention and law enforcement, including programs designed to |
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prevent and prosecute crimes involving human trafficking. |
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(b) Casino gaming at a limited number of locations is |
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authorized in this state in accordance with this section to foster |
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economic development and job growth and to provide tax relief and |
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funding for education and public safety programs. |
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(c) The legislature by general law shall establish the Texas |
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Gaming Commission with broad authority to adopt rules the |
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commission considers necessary or desirable for the strict |
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regulation of casino gaming as authorized by this section. |
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(d) The legislature by general law may authorize and |
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regulate the placing of wagers on sporting events, as defined by |
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general law. |
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(e) The legislature shall authorize the Texas Gaming |
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Commission to: |
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(1) issue not more than four Class I gaming licenses to |
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conduct casino gaming at destination resorts located in |
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metropolitan statistical areas of this state with an estimated |
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population of two million or more on July 1, 2021, provided that |
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only one Class I licensed destination resort is located within any |
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one metropolitan statistical area; |
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(2) issue not more than three Class II licenses to |
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conduct limited casino gaming to applicants who, on January 1, |
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2023, held and who continue to hold an active license to conduct |
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pari-mutuel wagering on horse races at a racetrack located within a |
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metropolitan statistical area with an estimated population of two |
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million or more on July 1, 2021, and who comply with the |
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requirements of this section, general law enacted pursuant to this |
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section, and rules adopted by the Texas Gaming Commission under |
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this section and general law; |
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(3) issue not more than two Class III licenses to |
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conduct limited casino gaming to applicants who, on January 1, |
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2023, held and who continue to hold an active license to conduct |
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pari-mutuel wagering on greyhound races at a racetrack located |
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within a metropolitan statistical area with an estimated population |
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of less than two million on July 1, 2021, and who comply with the |
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requirements of this section, general law enacted pursuant to this |
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section, and rules adopted by the Texas Gaming Commission under |
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this section and general law; and |
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(4) allow an Indian tribe recognized by the United |
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States government under federal law to operate slot machines or |
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casino gaming on its Indian land within this state and held in trust |
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by the United States on January 1, 1998, in accordance with: |
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(A) federal law; and |
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(B) either: |
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(i) an effective gaming agreement that |
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includes a provision requiring the 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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(ii) general state law 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 by the general law. |
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(f) The legislature by general law shall direct the Texas |
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Gaming Commission by rule to ensure license applicants who are |
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granted a Class II license authorized by Subsection (e)(2) of this |
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section continue to maintain significant live horse racing at the |
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applicant's racetrack and maintain the applicant's primary purpose |
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as a racetrack, and that limited casino gaming is used as a |
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complimentary amenity to promote and support horse racing in this |
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state. |
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(g) The legislature by general law shall authorize license |
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holders who are granted a Class III license authorized by |
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Subsection (e)(3) of this section to offer limited casino gaming |
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under that license at any location within the same metropolitan |
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statistical area as the holder's licensed greyhound racetrack. |
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(h) To satisfy the intent of this section, the legislature |
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by general law shall establish additional restrictions on the |
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facilities of a license holder who holds a Class II or Class III |
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casino gaming license authorized under Subsection (e)(2) or (e)(3) |
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of this section, including limits on total square footage, gaming |
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square footage, and overnight accommodations, for the purposes of |
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adequately distinguishing between the license classes described in |
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Subsection (e) of this section and limiting casino gaming to |
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certain metropolitan statistical areas in this state. |
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(i) To ensure the greatest economic impact to this state |
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from destination resorts granted a Class I license to conduct |
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casino gaming, the legislature by general law shall direct the |
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Texas Gaming Commission, in determining which applicants will be |
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issued a license, to consider: |
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(1) the total investment to be made by each applicant; |
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(2) the total job creation and workforce diversity |
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proposed by each applicant; |
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(3) each applicant's experience in resort development |
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and casino operation; |
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(4) the potential tax revenue to this state from |
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gaming and non-gaming activities at a proposed resort; |
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(5) whether entities operating or individuals |
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residing in this state are part of the application approval process |
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or are approved vendors; and |
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(6) whether an applicant intends to seek state or |
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local tax incentives for their project. |
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(j) The legislature by general law may develop additional |
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considerations and requirements for licenses to conduct casino |
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gaming, and restrictions and penalties for the conduct of casino |
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gaming in this state. |
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(k) To ensure that a requisite level of economic development |
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and job growth benefiting the people of this state accompanies each |
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destination resort granted a Class I license to conduct casino |
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gaming, the legislature by general law shall require an applicant, |
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as a condition of receiving and holding a license, to commit to |
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building a destination resort with new total land and development |
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investments of at least: |
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(1) $2 billion for a destination resort located in a |
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metropolitan statistical area with an estimated population of five |
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million or more on July 1, 2021; or |
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(2) $1 billion for a destination resort located in a |
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metropolitan statistical area with an estimated population of two |
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million or more but less than five million on July 1, 2021. |
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(l) The legislature by general law shall require that, in |
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meeting the requirements of Subsection (k) of this section, total |
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land and development investments proposed as part of an application |
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to conduct casino gaming at a destination resort may not include |
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public money or facilities developed or built with public |
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assistance or tax incentives of any kind. |
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(m) The legislature by general law may allow land and |
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development investments made in the five years preceding the date a |
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license application for a Class I destination resort is submitted |
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to be included in the calculation of new total land and development |
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investment requirements under Subsection (k) of this section. |
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(n) The legislature by general law shall impose a tax on the |
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casino gaming revenue of casino gaming license holders in this |
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state. The legislature shall set the tax rates for casino gaming |
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at: |
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(1) 10 percent of the gross gaming revenue from table |
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games, as defined by the legislature; and |
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(2) 25 percent of the gross gaming revenue from slot |
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machines, as defined by the legislature. |
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(o) The legislature by general law shall establish |
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procedures to determine whether a Class I license application meets |
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the investment requirements of Subsection (k) of this section and |
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whether an applicant who is granted a Class I license satisfies the |
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investment commitments made in their application. |
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SECTION 3. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment to foster economic |
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development and job growth and to provide tax relief and funding for |
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education and public safety by creating the Texas Gaming |
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Commission, authorizing casino gaming at a limited number of |
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destination resorts and facilities licensed by the commission, and |
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authorizing sports wagering." |