By J. Lyn Carl, GalleryWatch.com
Austin, TX –
Local voters would have the option of deciding whether video lottery terminals (VLT's) would be legalized in their cities and counties under provisions in Sen. Ken Armbrister's (D-Victoria) proposal to provide Texans more property tax relief.
At a press conference Thursday, Armbrister explained his SB 1326 that would provide for County Gaming Districts, with the Texas Lottery Commission having oversight. Each district would have to define its boundaries to include all or part of a county, and then the county commissioner's court would set a local option election to create the districts.
While horse and dog tracks and Indian reservations are seeking to be allowed to install VLT's at their existing facilities, Armbrister said his bill will "do something that has never been tried before" in Texas - establish a new entity within cities and counties.
Following passage in a local option election, various venues within that district would be allowed to have licensed video lottery establishments, said Armbrister. Some 40 percent of the net terminal income would be paid to the Commission to create a fund. Some 6 percent will also be allocated from that fund - with 2 percent going to the county in which the district is located, 2 percent on a pro rata share going to all the cities in the county with a district, and 2 percent going to the state to be distributed among all other cities and counties. Those funds can only be used to reduce city or county property taxes, address health care or health service needs, mobility needs or water infrastructure rehabilitation needs.
Armbrister said his legislation will mark the first time the state has been able to "craft a new revenue source for cities and counties."
While there is potential for such districts to be created in all 254 counties, Armbrister said "realistically" he only expects there might be 8-12 viable districts. He mentioned possibilities of venues on South Padre Island, Galveston Island, the Astrodome in Houston, Reunion Arena in Dallas, and possibly in the cities of Amarillo, Laredo and maybe El Paso. He said because the legislation could provide a new revenue stream for cities and counties, there could literally be 254 such venues. "Will all the voters approve them?" he asked. "I don't think so."
Armbrister said he does not have a fiscal note for the bill yet but said he already has offers from some fellow members of the Legislature to be co-sponsors and co-authors. He said he has not officially polled members of the Senate but his "unofficial polling" indicates that he has enough support to pass the bill out of the Senate.