CHAPTER 858
Entertainment Device Arcades
858.01   Definitions.
858.02   License application; requirements.
858.03   License fees; transfer and display; disposition of fees.
858.04   License revocation; hearing procedure.
858.05   Location.
858.06   Hours of operation.
858.07   Miscellaneous operating requirements.
858.08   Severability.
858.99   Penalty.
858.01 DEFINITIONS.
   For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
   (a)   "Entertainment device arcade" means any business, establishment, room or place where four or more entertainment devices are kept for use by the public or by persons other than the owner of the devices, where persons give anything of value to access the use of the entertainment devices or the premises, and the person may be given anything of value by the operator, whether the giving occurs on or off the premise or at the same time or a later time.
   (b)   "Entertainment device" means any mechanical, electronic, video or digital device that is capable of accepting anything of value, directly or indirectly, from or on behalf of a person, for the purpose of playing a game, viewing a video display, hearing an audio transmission or reading entries or outcomes from any other kind of device. "Entertainment device" does not include any vending machine, juke box, audio book, video player or any device that gives anything of value where the only value given, directly or indirectly, is a video or audio transmission or the playing of a game.
   (c)   "Anything of value" means cash, cash equivalents, tangible objects, credits to play, sweepstakes entry points and any other tangibles or intangibles, no matter how slight. "Anything of value" includes playing a game, viewing a video display, hearing an audio transmission, and reading entries or outcomes from any other kind of device. A person who gives anything of value for a product or service, whether tangible or intangible, in any way, directly or indirectly, in association with being given access to the use of an entertainment device, is deemed to have given value for the access to the entertainment device.
   (d)   "Operator" means any person or organization that owns, controls, operates, promotes or maintains or knowingly engages in conduct that facilitates the operation of an entertainment device arcade or the entertainment devices in an entertainment device arcade.
(Ord. 36-2011. Passed 4-4-11.)
858.02 LICENSE APPLICATION; REQUIREMENTS.
   (a)   No person, partnership, corporation, or other entity shall operate or conduct an entertainment device arcade without first obtaining an annual license therefore from the City Administrator. The license shall first be obtained prior to the initial operation of the entertainment device arcade and annually thereafter, with the subsequent annual application and associated fee due prior to the 1st day of January of each calendar year. The City shall issue no more than seven licenses at any one time. If, at any time, the City has issued seven licenses under this chapter, the City Administrator shall create and maintain a waiting list for applicants desiring to apply for a license. In the event any license is revoked or not renewed in accordance with this chapter, the City shall then consider an application for such license from the applicants in the order they appear on such waiting list.
   (b)   Every person, partnership, corporation, organization or other entity shall make an application in writing to the City Administrator, which application shall set forth:
      (1)   The name and Federal tax identification number under which the business is to be conducted;
      (2)   The location where the business is conducted, with a description of the premises, including a scaled diagram;
      (3)   The name, address, and government issued photo identification of any manager, supervisor, and all other employees;
      (4)   The name, address, and government issued photo identification of the owner or owners of the entertainment devices;
      (5)   The name, address, government issued photo identification and principal occupation of every person with an interest in the business. If the business is conducted by:
         A.   A sole proprietorship, the name, home address, government issued photo identification and principal occupation of that individual;
         B.   A firm, limited liability company or partnership, the names, home addresses, government issued photo identification and principal occupations of each member of the firm or partnership;
         C.   A corporation, the names, home addresses, government issued photo identifications and principal occupations of all officers and shareholders and the statutory agent;
      (6)   If a corporation or limited liability company, a certificate of good standing from the Ohio Secretary of State;
      (7)   The name, 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 each separate dollar amount that may be given; and
         B.   The odds of winning any offered prize or dollar amount awarded for the 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 any and all persons, businesses or organizations that provide games, computer software, equipment, or services or operate devices linked to the licensee's entertainment devices or to devices necessary to operate the entertainment devices, whether any such provisions are sold, leased or licensed; 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. Additionally, 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.
   The certificate or report for an authorized 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.
   Any update to an entertainment device, or the software therein, during the course of the year shall be reviewed and inspected by an authorized independent testing laboratory, and a certificate or report from the authorized independent testing laboratory shall be filed with the City Administrator prior to the operator placing the device in service, and shall contain the information required in this subsection.
   No entertainment device shall be lawfully operated unless it is certified to meet the requirements of this subsection.
   (c)   Duty to Keep Information Current. The person, partnership, corporation, or other entity operating or conducting the business shall have a continuing duty to inform the City Administrator as to 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 City Administrator is current and accurately reports the licensing information at the time of operation.
   (d)   Rejection or Approval of Application. The City Administrator shall reject or approve an application within ten business days of receipt. If an application is not approved, the City Administrator shall notify the applicant in writing, with reasons for rejection.
   (e)   Prohibition as a Result of Conviction or Failure to Pay City Taxes; Fire Inspection. The City Administrator shall not issue a license to any person, partnership, corporation, or other entity if: any of the persons with an interest in the business or if any of the employees of the business have been convicted of a violation of a Federal or State statute or of any local ordinance pertaining to gambling or other crime of moral turpitude within five years preceding the application or such person, partnership, corporation or other entity has failed to pay any tax levied by the City at the time of application. Also, as a prerequisite to the issuance of such license, an inspection shall be made of the premises by the Division of Fire to seek and obtain the approval of said Department.
   (f)   Right of Entry for Inspection. The entertainment device arcade shall be open to inspection and viewing of operations by the City Administrator or his designee, Police Department personnel, Fire Department personnel and County Health Department personnel at all times that the arcade is open for business. Officer of the Division of Police may accompany such officials on any official business or inspection to the extent authorized by this chapter. No operator shall fail to immediately permit entry to any such officials.
   (g)   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 entertainment device arcade and said device shall be seized and forfeited to the City.
(Ord. 36-2011. Passed 4-4-11.)
858.03 LICENSE FEES; TRANSFER AND DISPLAY; DISPOSITION OF FEES.
   (a)   License Fees. The non-refundable annual license fee, payable to the City Administrator at the time of initial or annual application, shall be one thousand dollars ($1,000) for each entertainment device arcade location for each calendar year or any part thereof. Additionally, a semi-annual non-refundable license fee of two hundred dollars ($200.00) shall be paid to the City Administrator for each entertainment device that will be located on the premises during the following semi-annual period. The semi-annual license fee for each entertainment device shall be paid at the time of initial or annual application and no later than June 1st of each calendar year, or, if the entertainment device is brought to the premises following the payment of the semi-annual license fee, prior to such time as the entertainment device is brought to or operating on the premises. For purposes of determining licensing fees, each device that is operable by one or more persons is a separate device.
   (b)   Non-transferability; Display. Licenses issued under this chapter shall not be transferable to any other person, partnership, corporation, or other entity and the business may be conducted only at the location for which the license is issued. The license must be so placed as to be made conspicuously visible and shall list each entertainment device with serial number.
   (c)   Deposit of License Fees. License fees received by the City Administrator shall be deposited into the general fund of the City.
(Ord. 36-2011. Passed 4-4-11.)
858.04 LICENSE REVOCATION; HEARING PROCEDURE.
   (a)   Creation of Commission. An Entertainment Device Arcade License Review Commission is hereby created to hear complaints concerning entertainment device arcade licenses. The Commission shall consist of five members which shall include the Mayor or their designee, the President of the Council or their designee, the Director of Finance or their designee, one resident member appointed by Council and one resident member appointed by the City Administration. The resident members of the Entertainment Device Arcade License Review Commission shall hold office for a term of three years. The resident members may not hold another Municipal office or be an owner or employee of an entertainment device arcade during their term on the Entertainment Device Arcade License Review Commission. Any vacancy of a resident member shall be filled for the unexpired term in the manner authorized for an original appointment.
   (b)   Revocation or Suspension of License. A license may be suspended or revoked at any time by the Commission on satisfactory proof that violation of the laws of the State of Ohio, the Codified Ordinances of the City or this chapter occurs at an entertainment device arcade. In addition to any license suspension, the Commission may assess the licensee a penalty fee of not less than five hundred dollars ($500.00) or more than one thousand dollars ($1,000) for any violation of this chapter. Each day a continuing violation exists shall constitute a separate violation for purpose of assessing penalty fees. Suspensions, revocations and assessments of penalty fees by the Commission is in addition to and separate from any criminal liability and does not preclude criminal prosecution for any violation of this chapter or other City, State of Ohio or Federal laws. Penalty fees shall be disposed of in the same manner as license fees as set forth in Section 858.03(c).
   (c)   Submission of Complaint; Regular Inspection. Any person may submit a written notice of complaint to the City Administrator concerning any entertainment device arcade. The notice of complaint will include the name, phone number and address of the person, the address of the location, the OAC device number, if applicable, and the specific reasons why the resident is complaining. The City Administrator and/or the Division of Police shall regularly inspect the premises, the operation, the entertainment devices and the licensee's records and may issue a notice of complaint to the licensee for any violations.
   (d)   Interview of Complainant. The City Administrator shall interview the complainant and inquire as to the specific reasons for the complaint. The City Administrator may dismiss the complaint if it is determined that:
      (1)   The specific reasons listed in the complaint are not proper grounds for suspension or revocation of the license; or
      (2)   There are not substantial credible facts to support the complaint by the person.
   (e)   No Appeal from Dismissal of Complaint. No appeal shall lie from the decision of the City Administrator to dismiss a complaint.
   (f)   Fact-finding Conference. If the complaint is not dismissed by the City Administrator, the City Administrator will then notify the licensee and the owner of the devices on the premises, as listed on the license application, that a complaint has been filed and will set a date for a fact-finding conference on the matter. Extensions will be granted and necessary investigations will be conducted at the discretion of the City Administrator and the City Administrator may request the assistance of the Division of Police to assist in the investigation. The City Administrator and any assisting officer from the Division of Police shall have access to the entertainment device arcade and the records of the licensee during all times that the entertainment devices are available for play.
   (g)   Resolution of Complaint. At the time of the conference, the resident, the licensee, and the owner of the devices will meet and attempt to amicably resolve the situation. If the resident, licensee, and the owner can reach an amicable solution, the City Administrator will issue a written notice directing the licensee to comply with the agreed resolution of the complaint.
   (h)   Referral to the Commission. If the parties cannot agree upon an amicable solution to the problem, the City Administrator will transmit the complaint, together with its recommendation thereon, to the Entertainment Device Arcade License Review Commission. The City Administrator's recommendation may be for dismissal of the complaint, suspension of the license and assessment of penalty fees, or revocation of the license.
   (i)   Hearing. The Commission may accept, reject, or modify the recommendation of the City Administrator. The resident, the licensee and the owner of the devices, as listed on the license application, shall be notified in advance by certified mail of the day on which the Commission is to consider the complaint; and they may, if they so choose, be present during consideration of the complaint. Consideration of the complaint before the Commission shall be a public hearing which shall be held within 30 days after said notice is given. The licensee shall have the right to be represented by counsel, and have the right to examine and cross-examine witnesses. The Commission shall enter its decision the day of hearing. In the event of a decision and ruling adverse to the licensee, the licensee shall have the right to appeal such decision and ruling to a court of competent jurisdiction under authority of and pursuant to the provisions of Ohio R.C. Chapter 2506.
   (j)   Other Enforcement Actions. The complaint process set forth in this section is separate and distinct from any law enforcement action taken to enforce the laws of the State of Ohio or the Codified Ordinances of the City and this chapter, and is not a condition precedent or otherwise an impediment to enforcement of said laws by criminal prosecution.
(Ord. 36-2011. Passed 4-4-11.)
858.05 LOCATION.
   (a)   Limitation on Location. No license shall be granted to an entertainment device arcade that will conduct its business at a location that is within 1,000 feet from the boundaries of a parcel of real estate having situated on it a school, public library, public playground, or any establishment that has been issued a liquor permit by the State of Ohio.
   (b)   Exception; Change in Ownership. This section shall not apply to any entertainment device arcade locations in existence at the time of the passage of this chapter, and shall not apply to any duly licensed entertainment device arcade locations in existence at the time a school, public library, public playground, or any establishment that has been issued a liquor permit by the State of Ohio moves within 500 feet of said entertainment device arcade. However, any change in ownership of the entertainment device arcade or change in location will remove said entertainment device arcade from this exception. "Change in ownership" in the case of a partnership or corporation for the purpose of this section means more than 50 percent change in partners or shareholders from the partners or shareholders owning the partnership or corporation as of the date the school, public library, or public playground moves within 500 feet of said entertainment device arcade.
(Ord. 36-2011. Passed 4-4-11.)
858.06 HOURS OF OPERATION.
   (a)   Entertainment device arcades shall operate only between the hours set forth below:
         Sundays      1:00 p.m. to 10:00 p.m.
         All Other Days   10:00 a.m. to 12:00 a.m.
   No operator shall permit any person to operate any entertainment device during any time other than specified herein.
   (b)   Notwithstanding anything to the contrary in subsection (a) above, an operator shall be permitted to operate its entertainment device arcade on Friday and Saturday from 10:00 a.m. to 2:00 a.m. of the following day provided, that on any such Friday or Saturday, the operator provides security at the entertainment device arcade from 10:30 p.m. to 2:30 a.m. of the following day in accordance with a security plan approved by the Chief of Police (or his designee). All security plans shall be submitted by the operator to the Chief of Police in writing and all approvals of security plans by the Chief of Police (or his designee) shall be in writing.
(Ord. 37-2012. Passed 5-31-12.)
858.07 MISCELLANEOUS OPERATING REQUIREMENTS.
   (a)   Supervision of Entertainment Devices. Any entertainment device arcade shall have an adult who is 21 years of age or over on the premises and supervising at all times the entertainment devices during all hours of operation.
   (b)   Square-Footage. The interior of the entertainment device arcade shall provide a minimum area of 15 square feet per entertainment device in each room in which entertainment devices are located.
   (c)   No Alcoholic Beverages. No operator shall permit the sale, possession or consumption of alcoholic beverages on the premises of an entertainment device arcade.
   (d)   Public Peace. No operator shall fail to maintain order and quiet on the premises so as not to violate the public peace.
   (e)   No Minors. No persons under the age of 18 years shall be permitted on the premises of any entertainment device arcade.
   (f)   Photo Identification. The operator shall require a photo identification of every person to whom anything of value is given in connection with the entertainment device arcade and, if the dollar value of the thing given to a person is six hundred dollars ($600.00) or more, the operator shall make and maintain a copy of the person's photo identification and shall record the person's name and home address and a description of the thing given, a stated dollar value of the thing given, the date and time of the giving and, if an entertainment device is involved in the circumstances of the giving, the serial number or other identifying description of the device. By the second Tuesday of each month the operator shall cause to be delivered to the City Administrator a copy of the record of things given to persons together with the above required information given during the preceding month. If the records pertaining to photo identification contain Social Security numbers or driver's license numbers, the operator and the City Administrator shall not disclose those numbers to anyone except as required by the laws of the State of Ohio and the United States government.
   (g)   Posting. The operator shall post in a conspicuous place on the premises in the room where the entertainment devices are located in no less than 20 point type:
      (1)   Each separate prize that may be given and each separate dollar amount that might be given.
      (2)   The odds as stated in the filing with the City Administrator, as required in Section 858.02(b)(7).
      (3)   A complete statement of the rules and conditions pertaining to the giving of any prizes or anything of value to any person, whether or not the determination 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.
      (4)   On each machine, a sticker, if issued by the City Administrator, indicating that it has been registered by the operator with the City Administrator, and bearing a unique identification number for that machine.
   (h)   Records. The operator shall keep a complete set of all records of the operations at the premises at all times, including all Federal, State and local tax records, all records of payments and receipts, all records of expenses and revenues of the operation, all banking records, all contracts, leases and agreements affecting the premises, equipment and operation, all personnel records and all other records pertaining to the business, which shall be available for inspection and copying by any entity provided a right of entry under Section 858.02(f). Records more than ten years old are exempt from this requirement.
   (i)   Correct Information. No applicant shall make a false or incorrect statement in an application for an entertainment device arcade license and no operator shall fail to update the information supplied to the City Administrator to reflect existing operations as required in Section 858.02(b).
   (j)   Reporting of Internet Time. Any entertainment device arcade that engages in the sale of internet time or computer usage time in exchange for anything of value shall provide to the City Administrator, no later than the 15th day of each month a report detailing the daily amount of time sold in the preceding calendar month.
   (k)   Strict Liability for Violations. It is the intent of this chapter that operators are strictly liable for any violations of this chapter.
(Ord. 36-2011. Passed 4-4-11.)
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