88R1410 KBB-F     By: Alvarado S.J.R. No. 17       A JOINT RESOLUTION   proposing a constitutional amendment to foster economic   development and job growth and to provide tax relief and funding for   education and public safety by creating the Texas Gaming   Commission, authorizing and regulating casino gaming at a limited   number of destination resorts and facilities licensed by the   commission, authorizing sports wagering, requiring occupational   licenses to conduct casino gaming, and requiring the imposition of   a tax.          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), (d-1), 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)  In this section, unless modified by general   law:                (1)  "Casino" means a licensed facility at which casino   gaming is conducted.                (2)  "Casino gaming" means any game of chance or   similar activity that involves the making of a bet for   consideration. The term includes wagering on any type of slot   machine or table game as defined by the legislature, 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)  "Destination resort" means a mixed-use   development consisting of a combination of various tourism   amenities and facilities, including hotels, villas, restaurants,   limited gaming facilities, meeting facilities, attractions,   entertainment facilities, shopping centers, and casino gaming   facilities.                 (4)  "Education" means public education, public higher   education, and adult education related to responsible gaming.                (5)  "Gaming position" means a designated position for   a person to engage in casino gaming at a table game or slot machine.                (6)  "Limited casino gaming" means casino gaming in a   licensed facility that is limited to not more than 750 gaming   positions, of which not more than 25 percent may be at table games,   as defined by the legislature.                (7)  "Metropolitan statistical area" means a   metropolitan statistical area designated by the United States   Office of Management and Budget.                (8)  "Public safety programs" means programs for crime   prevention and law enforcement, including programs designed to   prevent and prosecute crimes involving human trafficking.          (b)  Casino gaming at a limited number of locations is   authorized in this state in accordance with this section to foster   economic development and job growth and to provide tax relief and   funding for education and public safety programs.          (c)  The legislature by general law shall establish the Texas   Gaming Commission with broad authority to adopt rules the   commission considers necessary or desirable for the strict   regulation of casino gaming as authorized by this section.           (d)  The legislature by general law may authorize and   regulate the placing of wagers on sporting events, as defined by   general law.          (e)  The legislature shall authorize the Texas Gaming   Commission to:                (1)  issue not more than four Class I gaming licenses to   conduct casino gaming at destination resorts located in   metropolitan statistical areas of this state with an estimated   population of two million or more on July 1, 2021, provided that   only one Class I licensed destination resort is located within any   one metropolitan statistical area;                (2)  issue not more than three Class II licenses to   conduct limited casino gaming to applicants who, on January 1,   2023, held and who continue to hold an active license to conduct   pari-mutuel wagering on horse races at a racetrack located within a   metropolitan statistical area with an estimated population of two   million or more on July 1, 2021, and who comply with the   requirements of this section, general law enacted pursuant to this   section, and rules adopted by the Texas Gaming Commission under   this section and general law;                (3)  issue not more than two Class III licenses to   conduct limited casino gaming to applicants who, on January 1,   2023, held and who continue to hold an active license to conduct   pari-mutuel wagering on greyhound races at a racetrack located   within a metropolitan statistical area with an estimated population   of less than two million on July 1, 2021, and who comply with the   requirements of this section, general law enacted pursuant to this   section, and rules adopted by the Texas Gaming Commission under   this section and general law; and                (4)  allow an Indian tribe recognized by the United   States government under federal law to operate slot machines or   casino gaming on its Indian land within this state and held in trust   by the United States on January 1, 1998, in accordance with:                      (A)  federal law; and                      (B)  either:                            (i)  an effective gaming agreement that   includes a provision requiring the tribe to remit to this state a   portion of its gaming revenue in an amount equal to the rate   provided in the agreement; or                            (ii)  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.          (f)  The legislature by general law shall direct the Texas   Gaming Commission by rule to ensure license applicants who are   granted a Class II license authorized by Subsection (e)(2) of this   section continue to maintain significant live horse racing at the   applicant's racetrack and maintain the applicant's primary purpose   as a racetrack, and that limited casino gaming is used as a   complimentary amenity to promote and support horse racing in this   state.          (g)  The legislature by general law shall authorize license   holders who are granted a Class III license authorized by   Subsection (e)(3) of this section to offer limited casino gaming   under that license at any location within the same metropolitan   statistical area as the holder's licensed greyhound racetrack.           (h)  To satisfy the intent of this section, the legislature   by general law shall establish additional restrictions on the   facilities of a license holder who holds a Class II or Class III   casino gaming license authorized under Subsection (e)(2) or (e)(3)   of this section, including limits on total square footage, gaming   square footage, and overnight accommodations, for the purposes of   adequately distinguishing between the license classes described in   Subsection (e) of this section and limiting casino gaming to   certain metropolitan statistical areas in this state.          (i)  To ensure the greatest economic impact to this state   from destination resorts granted a Class I license to conduct   casino gaming, the legislature by general law shall direct the   Texas Gaming Commission, in determining which applicants will be   issued a license, to consider:                (1)  the total investment to be made by each applicant;                (2)  the total job creation and workforce diversity   proposed by each applicant;                (3)  each applicant's experience in resort development   and casino operation;                (4)  the potential tax revenue to this state from   gaming and non-gaming activities at a proposed resort;                (5)  whether entities operating or individuals   residing in this state are part of the application approval process   or are approved vendors; and                (6)  whether an applicant intends to seek state or   local tax incentives for their project.          (j)  The legislature by general law may develop additional   considerations and requirements for licenses to conduct casino   gaming, and restrictions and penalties for the conduct of casino   gaming in this state.          (k)  To ensure that a requisite level of economic development   and job growth benefiting the people of this state accompanies each   destination resort granted a Class I license to conduct casino   gaming, the legislature by general law shall require an applicant,   as a condition of receiving and holding a license, to commit to   building a destination resort with new total land and development   investments of at least:                (1)  $2 billion for a destination resort located in a   metropolitan statistical area with an estimated population of five   million or more on July 1, 2021; or                (2)  $1 billion for a destination resort located in a   metropolitan statistical area with an estimated population of two   million or more but less than five million on July 1, 2021.          (l)  The legislature by general law shall require that, in   meeting the requirements of Subsection (k) of this section, total   land and development investments proposed as part of an application   to conduct casino gaming at a destination resort may not include   public money or facilities developed or built with public   assistance or tax incentives of any kind.          (m)  The legislature by general law may allow land and   development investments made in the five years preceding the date a   license application for a Class I destination resort is submitted   to be included in the calculation of new total land and development   investment requirements under Subsection (k) of this section.           (n)  The legislature by general law shall impose a tax on the   casino gaming revenue of casino gaming license holders in this   state. The legislature shall set the tax rates for casino gaming   at:                (1)  10 percent of the gross gaming revenue from table   games, as defined by the legislature; and                (2)  25 percent of the gross gaming revenue from slot   machines, as defined by the legislature.          (o)  The legislature by general law shall establish   procedures to determine whether a Class I license application meets   the investment requirements of Subsection (k) of this section and   whether an applicant who is granted a Class I license satisfies the   investment commitments made in their application.          SECTION 3.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2023.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment to foster economic   development and job growth and to provide tax relief and funding for   education and public safety by creating the Texas Gaming   Commission, authorizing casino gaming at a limited number of   destination resorts and facilities licensed by the commission, and   authorizing sports wagering."