(A) Licensing and permitting.
(1) License. No person shall operate an amusement redemption machine game room in the city without first obtaining a license from the Chief of Police, or his or her designee, as required by this section.
(2) Permit. No person shall operate an amusement redemption machine in the city without first obtaining a permit from the Chief of Police, or his or her designee, as required by this section. The current state and county tax stamps as well as the city permit will be attached to the front of the amusement redemption machine. All expired tax stamps and permit stickers will be removed from the machine by the owner/operator. Only current, valid official stamps may be displayed. The annual permit fee shall be $100 per machine. The permit fee shall apply to all amusement redemption machines, regardless if located in an amusement redemption machine game room. Permits shall automatically expire on December 31 following date of issuance.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AMUSEMENT REDEMPTION MACHINE.
(a) A skill or pleasure coin-operated machine that is designed, made and adapted solely for bona fide amusement purposes, and that by operation of chance or a combination of skill and chance affords the user, in addition to any right of replay, an opportunity to receive exclusively non-cash merchandise prizes, toys, novelties or a representation of value redeemable for those items;
(b) Any electronic, electromechanical or mechanical contrivance designed, made and adapted solely for bona fide amusement purposes if the contrivance rewards the player exclusively with non-cash merchandise, prizes or novelties, or a representation of value redeemable for those items, that have a wholesale value available from a single play of the game or device of not more than ten times the amount charged to play the game or device once or $5, whichever is less.
AMUSEMENT REDEMPTION MACHINE GAME ROOM. Any establishment where five or more amusement redemption machines, with the exception of excluded machines, are displayed or exhibited for public use.
COIN-OPERATED MACHINE. A machine or device operated by the payment or insertion of paper currency or any other consideration.
CONVICTED SEX OFFENDER. A person that has received a rendition of an order by a court imposing a punishment of incarceration, probation or fine for a crime of: aggravated sexual assault, aggravated sexual assault of a child, aggravated sexual assault 65 years or older, aggravated kidnapping (violate/abuse victim sexually), indecency with child sexual-contact, sexual assault, sexual assault of a child, sexual performance of child, prohibited sexual conduct, compelling prostitution, possession/promotion of child pornography, indecency with child-exposure, kidnapping with victim under 17 years of age, unlawful restraint with victim under 17 years of age, aggravated kidnapping (with no sexual intent and victim under 17 years of age), indecent exposure-second conviction, preparatory offense-attempt, conspiracy and solicitation to commit any sexual offense. Also included herein is a conviction involving the violations of any statute from another state regardless of title, that the elements of which meet the above offenses.
CONVICTION. A conviction in a federal court or a court of any state or foreign nation or political subdivision of a state or foreign nation that has not been reversed, vacated or pardoned.
EMPLOYEE. Any person who performs any service or entertainment upon the premises of an amusement redemption machine game room business, whether or not the person is denominated an employee, independent contractor, agent or otherwise, and regardless of whether the person paid is paid a salary, wage or other compensation by the owner or operator of the business. The term EMPLOYEE does not include a person exclusively on the premises for any of the following:
(a) The repair or maintenance of the premises;
(b) The delivery of goods to the premises; or
(c) The delivery of services, such as legal, accounting, insurance or other similar services provided to businesses generally.
EXCLUDED MACHINES. An amusement redemption machine game room does not include:
(a) A machine that awards the user non-cash merchandise prizes, toys or novelties solely and direct from the machine, including claw, crane or similar machines; nor
(b) A machine from which the opportunity to receive non-cash merchandise prizes, toys or novelties, or a representation of value redeemable for those items, varies depending upon the user’s ability to throw, roll, flip, toss, hit or drop a ball or other physical object into the machine or a part thereof, including basketball, skeet ball, golf, bowling, pusher or similar machines; nor
(c) A machine or any device defined in Tex. Penal Code § 47.01, as a gambling device, or any activity prohibited or described in Tex. Penal Code Ch. 47; nor
(d) An electronic sweepstakes machine, operated with a login ID, including software and equipment that allows for the operation of music download gift certificates sale-based sweepstakes.
KNOWINGLY. With actual knowledge of a specific fact or, with reasonable inquiry, a reasonable person should have known a specific fact.
OPERATOR. Any person who is both present on and in charge of any amusement redemption machine game room business premises.
OWNER. The legal owner of an amusement redemption machine game room business and includes the following:
(a) The owner of a sole proprietorship;
(b) Each member of a firm, association, LLC or general partnership;
(c) Each general partner in a limited partnership; or
(d) Each officer, director and owner of 50% or more of the stock of a corporation.
REPRESENTATION OF VALUE. Cash paid under authority of sweepstakes contests as provided in Tex. Business and Commerce Code Ch. 43(B), or a gift certificate or gift card that is presented to a merchant in exchange for merchandise.
(C) Local license fee for amusement redemption machine game room required.
(1) An owner, operator or lessee of an amusement redemption machine game room shall be required to secure a license annually. An amusement redemption machine game room shall be required to secure a license by paying to the city an annual inspection and amusement redemption machine game room license fee of $1,000. Upon payment of fee and compliance with all licensing requirements, the license shall be issued by the Chief of Police, or designee.
(2) Any person submitting an application for an amusement redemption machine game room license shall not have been convicted of any of the following:
(a) Felony offense in the preceding five years;
(b) Class A or B misdemeanor in the past two years, for which:
1. Less than two years have elapsed since the date of conviction, the date of release from confinement imposed for the conviction, or termination of probation whichever is the later date, if the applicant was convicted of a misdemeanor offense;
2. Less than five years have elapsed since the date of conviction, the date of release from confinement for the conviction, or the termination of probation or parole whichever is the later date, if the applicant was convicted of a felony offense; or
3. A convicted sex offender.
(3) An applicant for a license or permit shall file with the Chief of Police a written application on a form provided for that purpose, which shall be signed by the applicant, who shall be the owner, operator or lessee of the amusement redemption machine game room. Should an applicant maintain an amusement redemption machine game room at more than one location, a separate application must be filed for each location. The following information is required in the application:
(a) Name, address, telephone number and driver’s license number of the applicant if a natural person; name, address, telephone number and driver’s license number of all persons who own 25% or more interest in the amusement redemption machine game room; name, address, telephone number and driver’s license of all corporate officers, if any, of the such business; name, address and telephone number of the business; if incorporated, the name of the business registered with the Secretary of State; if a partnership, the name, address, telephone number and drivers license of each of the general and limited partners; a copy of the applicant’s d/b/a, if applicable. If applicant is not the owner of the premises, the applicant shall furnish the name, address and telephone number of the property owner;
(b) The previous occupation(s) of the applicant and, if applicable, all corporate officers and partners of the applicant within the preceding five years;
(c) Whether a previous license or permit of applicant or, if applicable, corporate officer or partner of applicant, has been revoked within two years of filing of the application;
(d) Number of amusement redemption machines in the amusement redemption machine game room;
(e) A statement that:
1. The amusement redemption machines are not and will not be used as gambling devices;
2. All the facts contained in the application are true and correct;
3. The location and operation of the amusement redemption machine game room will not violate any applicable deed restrictions; and
4. The amusement redemption machine game room will be operated in accordance with all laws.
(f) Name, address and telephone number of an emergency contact person who can be reached after hours.
(D) Expiration and renewal.
(1) Expiration. An annual amusement redemption machine game room license issued by the city shall automatically expire on December 31 following its issuance, except as otherwise stated herein. Such license shall automatically expire if the licensee thereof sells the property or the business, transfers equity to accomplish same or otherwise disposes of such devices. An amusement redemption machine game room license is not assignable or transferable. The city shall not refund any portion of a license after the license is issued, nor shall it prorate or reduce in amount any fee due to the city.
(2) Late penalty. Upon the expiration of a license, the licensee shall obtain a renewal if the licensee wishes to continue operating an amusement redemption machine game room. Failure to obtain the renewal within 30 days after expiration will require such person to pay an additional late fee in an amount equal to 20% of the fee actually due or 20% of the previous year’s fee, whichever is greater in order to obtain reinstatement of his or her license. Nothing herein authorizes the licensee to operate after the expiration of a license and before a renewal is effective.
(E) Sealing. The city shall have the authority to seal any coin-operated machine located at any amusement redemption machine game room for which a license fee has not been secured. A $5 fee will be charged for the release of any machine sealed for non-payment of said license fee.
(F) Posting of license. The license shall be conspicuously posted inside the building.
(G) Restrictions, regulations, controls and limitations. The following restrictions, regulations, controls and limitations shall apply to all amusement redemption machine game rooms.
(1) Condition of premises. All Building and Fire Code standards must be met. Inspection by the Building Official and certificate of occupancy shall be obtained before license is issued. The game room must be located in area zoned for that activity.
(2) Methods of conduction of business. No alcoholic beverages shall be served or allowed on premises. No activities allowed outdoors.
(3) Hours of operation. May only be operated between the hours of 7:00 a.m. and 2:00 a.m.
(4) Parking requirements. One space for each two machines (exclusive of handicapped), plus one space per employee per shift. The area utilized for parking shall be form poured concrete or asphalt. The spaces will be striped with a minimum of ten feet in width for each space.
(5) Location requirements. Premises shall not operate within 300 feet of an established church, school, day care or hospital.
(6) Presence required. The owner, operator or manager of the premises must be present to supervise the operation of the machines. The machines shall not be left unattended.
(7) Public view. Machines must be so situated within the premises as to be in full and open public view, which entails being visible to all patrons of the establishment.
(8) Minors. Minors may not operate machines during school hours on days when school is in session.
(9) Operators. A game room operator must be a person who is at least 18 years of age.
(10) Number of machines. Total number of machines in one establishment shall be limited to 50.
(11) Private rooms prohibited. All game rooms shall be open to the public and no “private game rooms” or private “members-only” establishments shall be permitted.
(H) Employees qualification. A person may not be an employee/operator of an amusement redemption machine game room if he or she does not meet the requirements set forth in division (C)(2) above. The owner of a amusement redemption machine game room who knowingly employs an employee/operator who is in violation of division (C)(2) above will be in violation of this subchapter.
(I) Termination of license. The Chief of Police may terminate any license to maintain and operate an amusement redemption machine game room when the licensee is in violation of any provision of this section, any other ordinance of the city or any applicable state or federal law on regulation, or licensee was found to have submitted false information in licensee’s application. Such termination shall be upon the decision of the Chief of Police which shall be final no less than ten calendar days after receipt of written notice sent by certified mail, return receipt requested and addressed to the licensee at the premises, specifying the particular violation or violations. If requested before the ten-day period has expired, the licensee may request a hearing before the Chief of Police to contest the termination. Any decision of the Chief thereon shall be final and non-appealable.
(J) Suspension and/or termination. An amusement redemption machine game room license holder can have his or her license suspended and/or terminated if, at any time, the Police Chief or designee determines that an amusement redemption machine game room license holder is not qualified under this section, and/or is under indictment, and/or has charges pending for any offense involving a Class A or B misdemeanor or a felony offense. The Police Chief or designee shall suspend or terminate the license holder’s license until the Chief of Police or designee determines that the license holder is qualified or that the charges against the license holder have been finally adjudicated.
(K) Re-application. If a license is terminated pursuant to divisions (I) or (J) above, the licensee shall not be eligible to re-apply until two years after the date of termination.
(L) Audit. The books and records of the amusement redemption machine game room shall be open for inspection and copying during regular business hours by the Chief of Police or designee. Application and receipt of a license shall constitute implied consent for the Chief of Police or designee to inspect the premises and obtain any video/audio surveillance tapes of the premises.
(M) Disclaimer. By issuing the required license, the city is not certifying the installation or use of the amusement redemption machines applying for a license, the applicant shall acknowledge that the city is not certifying or sanctioning the installation or use of such machines.
(1998 Code, § 14-37) (Ord. 03-58, passed 12-10-2003; Ord. 04-12, passed 4-7-2004; Ord. 08-21, passed 5-21-2008; Ord. 11-12, passed 4-20-2011; Ord. 2023-09, passed 4-5-2023)