(a) License to Operate. No person, partnership, corporation, or other entity shall open or operate an entertainment device arcade without first obtaining an annual license to operate from the Community Development Administrator, as provided in this ordinance. The operator shall obtain a license to operate prior to the initial operation of the entertainment device arcade and annually thereafter. The annual application and fee is due prior to the first day of January of each calendar year.
(b) Application. Every person, partnership, corporation, organization or other entity shall make an application in writing to the Community Development Administrator, which shall include the following:
(1) The name registered with the IRS and Federal tax identification number under which the business is to be conducted;
(2) The address, a description of the premises and a scaled diagram of the arcade;
(3) The name, address and copy of a government issued photo identification of the arcade manager, supervisor and all employees;
(4) The name, address and copy of a government issued photo identification of the owner or owners of the entertainment devices;
(5) The name, address and copy of a government issued photo identification and principal occupation of every person with an interest in the business.
If the business is operated by:
A. A sole proprietorship: the name, home address, copy of a government issued photo identification and principal occupation of the proprietor;
B. A firm, limited liability company or partnership: the name, home address, copy of a government issued photo identification and principal occupation of each member of the firm, L.L.C. or partnership; and
C. A corporation: the name, home address, copy of a government issued photo identification and principal occupation of each director, officer, shareholder and statutory agent.
(6) A certificate of good standing from the Ohio Secretary of State of a corporation or limited liability company;
(7) The manufacturer, device, name and description, model number and serial number of each entertainment device on the premises and any other device on the premises that is necessary to the operation of the entertainment device;
(8) A. A list of each separate prize that may be given out and the dollar value of each; and
B. The odds of winning any offered prize or dollar amount awarded for participation in any game, activity, program, scheme or play, use or participation in any way in an entertainment device or participating in any other activity or promotion in the entertainment device arcade, whether or not the determination of the giving of the thing of value or the delivery of the thing of value occurs totally within the confines of the premises or requires some event, occurrence or happening at another location.
(9) The name and address of each person, business or organization that provides games, computer software, equipment, or services or which operate devices linked to the licensee's entertainment devices or to devices necessary to operate the entertainment devices, whether sold, leased or licensed to the operator; and
(10) A certificate or report, provided by an authorized independent testing laboratory, identifying the components of the entertainment devices and related systems, identifying the operational characteristics of the entertainment device and systems and verifying that each entertainment device identified in paragraph (b)(7) above, and the software therein, is either a skill-based amusement machine, as defined in Ohio R.C. 2915.01, or is part of a sweepstakes game format.
If the certificate or report verifies that the entertainment device and the software therein is part of a sweepstakes game format, the certificate or report shall verify the following information:
A. The sweepstakes game is governed by official rules, which are clearly posted and available to customers.
B. Sweepstakes entries are provided to customers upon purchase of a good or service, for which consideration is paid, and no consideration is paid for the sweepstakes entry itself; the sweepstakes game provides for a method of free entry upon request; and the chance of winning the sweepstakes game does not vary between free entries and entries received as a result of purchase.
C. The total number of entries, the number of winning and losing entries and the number and nature of prizes of the sweepstakes game are finite, predetermined and established prior to the start of the sweepstakes. Additionally, all winning and losing entries are predetermined prior to the start of the sweepstakes game and the entries cannot be changed or modified once the sweepstakes game begins.
D. The sweepstakes game contains no element of skill and the customer has no ability to alter or affect the outcome or results of the sweepstakes game.
(c) (1) At such time as the City of Chardon approves independent testing laboratories, the Community Development Administrator shall publish, within 30 days, the list of authorized laboratories. Thereafter the Community Development Administrator shall maintain an updated and current list. Only certificates or reports from the approved or authorized independent testing laboratory shall satisfy the requirements of this section. The certificate or report shall be provided to the Community Development Administrator for each entertainment device prior to an operator placing the device into service.
(2) The certificate or report of an independent testing laboratory required herein shall be updated annually for each entertainment device and the updated certificate or report shall be provided at the time of each annual application, and shall contain the information required in this subsection.
(3) Any update to an entertainment device, or the software therein, during the calendar year shall be reviewed and inspected by an independent testing laboratory; a certificate or report from the independent testing laboratory shall be filed with the Community Development Administrator prior to the operator placing the updated device in service; and the report or certificate shall contain the information required in this subsection.
(4) No entertainment device shall be lawfully operated unless it is certified by an authorized independent testing laboratory to meet the requirements of this subsection.
(d) Duty to Keep Information Current. The person, partnership, corporation, or other entity operating the arcade shall have a continuing duty to inform the Community Development Administrator of changes in the information required in this section. No person, partnership, corporation, or other entity shall operate or conduct an entertainment device arcade at any time unless the information on file with the Community Development Administrator is current and accurately reports the licensing information.
(e) Action on Application.
(1) The Community Development Administrator shall reject or preliminarily approve an application within ten business days of receipt. If rejected, the Community Development Administrator shall notify the applicant in writing, with reasons for rejection. If the application is preliminarily approved, the Community Development Administrator shall notify the applicant in writing of preliminary approval. Upon notification of preliminary approval, applicant shall pay to the Community Development Administrator the annual license fee and the fee for the first month for each entertainment device that will be located on the premises. Upon receipt of the annual license fee and for each device for the first month, the Community Development Administrator shall grant final approval of the application and shall issue a license to operate. No person shall operate an entertainment device arcade until such final approval is granted and the license to operate is issued, unless otherwise permitted herein.
(2) Any application submitted on or before July 1, 2016, may be submitted without the certificate or report required in paragraph (b)(10) above, and may be preliminarily approved by the Community Development Administrator without the independent testing laboratory certificate or report; provided, however, that the required certificate or report shall be provided to the Community Development Administrator prior to final approval. No final approval or license to operate shall be issued until the certificate or report is submitted to the Community Development Administrator. An entertainment device arcade that has submitted an application prior to July 1, 2016, may operate until August 30, 2016, with the preliminary approval only, and shall submit the certificate or report on or before August 30, 2016, in order to continue operating.
(3) For all applications submitted after July 1, 2016, the required certificate or report shall be submitted with the initial or annual application. No entertainment device arcade shall operate without a final approval and license issued by the Community Development Administrator, except as otherwise provided herein.
(f) Prohibition as a Result of Conviction. The Community Development Administrator shall not issue a license to any person, partnership, corporation, or other entity if any person with an interest in the business or if an employee of the business has been convicted of a gambling offense or "theft" offense, as defined in §2913.01(k) O.R.C., under a federal or state statute or local ordinance.
(g) Right of Entry for Inspection. As a prerequisite to the issuance of a license, an inspection of the premises shall be made by the Fire Inspector of the Chardon Fire Department. The arcade shall be open to inspection and viewing of operations by the Community Development Administrator or designee and Fire Inspector at all times that the arcade is open for business. Law enforcement officers may accompany officials inspecting the arcade. No operator shall fail to permit immediate entry by the officials to inspect.
(h) Suspension or Revocation of License. Failure to register or pay a license fee for an entertainment device shall be grounds for suspension or revocation of the license for the arcade. An unlicensed device shall be seized and forfeited to the City.
(Ord. 2930. Passed 6-9-16; Ord. 3040. Passed 12-13-18.)