All applicable subchapters of chapter 2153 "coin-operated machines"
of the Texas Occupations Code, most current revision, are hereby adopted
by reference by the city as though they were incorporated herein.
(Ordinance 2022-23 adopted 9/13/2022)
(a)
All currently legally permitted and operating game rooms shall continue to operate under article 4-17, video gaming of chapter 4 business regulations of the city until such point that the permit for that game room is expired. All currently permitted game rooms shall be exempted from the effective date of this article until the earliest date of the following:
(b)
Pursuant
to article 14-16-1 "certificate of occupancy and compliance," upon
the expiration, suspension or revocation of the game room permit,
the certificate of occupancy shall expire immediately.
(c)
The
city building officials shall serve written notice that the certificate
of occupancy is no longer valid effective immediately after the game
room permit has expired, been suspended or revoked.
(d)
After
each game room permit has expired, been suspended or revoked, game
rooms shall no longer be allowed within the city limits.
(Ordinance 2022-23 adopted 9/13/2022)
The provisions of this article relating to the definitions of
words, terms, and phrases are hereby incorporated by reference and
made a part hereof and shall apply and govern the interpretation of
these regulations, except as otherwise specifically declared or as
is clearly apparent from the context of the regulations herein. The
following words, terms and phrases shall have the ascribed meaning
indicated below.
Any commissioned peace officer or designated agent of the
city.
The person who has completed an application to the city for
a license or permit to participate in the video gaming industry in
the city.
The process by which a person requests license or permit,
or the renewal of a license or permit, for the participation in the
video gaming industry in the city.
An employee designated by the licensee to oversee and assume
responsibility for the operation of the licensed establishment.
A video gaming device which complies with the rules of the
city and this article.
The premises of a business which is licensed to house, or
offer for play, video gaming devices within this city.
The observation or examination by any agent of the city of
any premises or motor vehicles of the licensee or applicant where
video gaming devices and related equipment may be manufactured, distributed,
stored, possessed, or offered for play, or any inquiry procedures
necessary to discover facts of things related/connected to video gaming
in any way.
Any applicant or person who is granted a license by the city
permitting video gaming activities that are authorized by this article.
The authorized activity of all licensees shall be limited to the type
of license issued to each.
Every natural person under the age of eighteen (18) years.
A clientele which includes both minors and adults.
Any violation of this article or these rules or any other
criminal conduct.
For purposes of these rules, shall have the same meaning as “video gaming employee” as provided in section 4-17-3.
Land, together with all buildings, improvements, equipment,
and personal property located thereon which is controlled by an applicant
or licensee and associated with video gaming activities authorized
by this article.
Any natural person who is domiciled in the state or who demonstrates
that he/she maintains a permanent place of abode within the state,
and who has resided and/or been domiciled in the state for a period
of two years prior to the date of his application for a license.
A ticket which is printed by a video gaming device by use
of a payer-activated switch providing the player with a printed record
of credits owed.
The decal furnished by the city and placed on a device indicating
that the device meets the criteria established by the city, and that
the particular device has been enrolled by the city.
Computers and other types of electronic machines or devices
of any kind or character which are operated by, or upon, the payment
of any form of consideration, including but not limited to paper currency,
coins, legal tender, metal slugs, tokens, electronic card or checks,
and which is used or capable of being used or operated for amusement
and/or pleasure, including, but expressly not limited to versions
of machines or devices commonly referred to as a slot machine and/or
eight-liner machine which awards the player a ticket voucher as defined
herein. This term expressly excludes gambling devices as defined by
Texas Penal Code chapter 47, coin-operated music machines, pay toilets,
pay telephones, coin-operated rides for children, and all other coin-operated
machines which dispense or vend merchandise, commodities, confections
or music or which award non-cash merchandise.
A written notification from the city to a licensee which
outlines any violation of these rules.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2013-30 adopted 5/28/13; Ordinance
2022-09 adopted 5/10/22; Ordinance 2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
(a)
Applicants.
(1)
The applicant shall notify the city in writing of all changes of
address, phone numbers, personnel, and other required information
in the application within ten (10) business days of the effective
date of the change.
(2)
A license may be revoked or suspended if the applicant is convicted of a crime that directly relates to the duties and responsibilities of the applicant as provided in section 4-1-1 and guidelines adopted by the city manager on file for public inspection in the office of the city secretary.
(3)
Any misrepresentation or false statement, including improperly notarized
documents, in any report, disclosure, application, permit form, or
any other document required shall be a violation of these rules and
this article and shall result in revocation or suspension of a license.
(b)
Requirements
for licensing.
(1)
Once a video gaming license has been issued by the city, the license
shall be conspicuously displayed by the licensee in his place of business
so that it can be easily seen and read by the public.
(2)
The appropriate annual fee shall be paid by all licensees regardless
of the expiration date of the license.
(3)
Upon discovery, hidden ownership, whether by counter letter or other
device or agreement, whether oral or written, shall constitute grounds
for immediate suspension, revocation or denial of a license. Therefore,
if there is more than one owner, applicants and licensees shall disclose
full ownership of a company so that the aggregate of percentages of
individual ownership total 100 percent, regardless of the percentage
of individual ownership.
(4)
All licensees shall maintain compliance with all applicable federal/state/local
gambling laws and requirements. Failure to maintain compliance with
any applicable law or requirement shall be a basis for suspension
or revocation of a license.
(5)
All licensees shall continue to operate the business described in
the application during the term of the license. In the event either
the business or the video gaming devices at the location are not in
operation for a period of thirty (30) consecutive calendar days during
which the business would normally operate, the licensee and device
owner shall immediately notify the city of such fact and the licensee
shall immediately surrender its license to the city.
(6)
If surrendered in accordance with the above provision no gaming activities
may be conducted at the premises .
(7)
Failure to surrender the license as provided shall constitute grounds
for revocation or suspension of the license.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2013-51, sec. 1, adopted 9/24/13; Ordinance 2022-09 adopted 5/10/22; Ordinance 2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
(a)
Responsibilities
of licensees.
(1)
The licensee or a designated representative of the licensed establishment
shall be required to be physically present and available within the
licensed establishment at all times during all hours of operation;
shall ensure that the devices are not tampered with, abused, or altered
in any way; and shall prevent the play of video gaming devices by
persons under the age of twenty-one (21) and prevent access to the
gaming area by persons under the age of eighteen (18). The penalty
for violation of this subsection shall be $500.00. Subsequent offenses
shall enable administrative action, including, but not limited to,
suspension or revocation of licensee’s license.
(2)
Licensees and employees of a licensee shall not loan money, extend
credit, or provide any financial assistance to patrons in use of video
gaming activities.
(3)
Licensees and employees of a licensee shall not permit any person
who appears to be intoxicated to participate in the play of the video
devices.
(4)
All licensees shall supervise all employees to ensure compliance
with the laws and regulations relating to the operation of video gaming
devices.
(5)
All licensees shall be responsible for the proper placement and installment
of devices within a licensed establishment as prescribed by the rules.
(6)
Licensees shall not advertise or participate in any promotion or
scheme which is contingent upon the play of a video gaming device
and which results in an enhanced payoff other than that set by the
internal mechanism of the video gaming device.
(7)
All licensees shall post signs on the premises of a licensed establishment,
which admits mixed patronage that restricts the play of video gaming
devices by person under the age of twenty-one (21) and restricts the
access to areas where gaming is conducted by person under the age
of eighteen (18). The signs shall be placed at the entrances to device
areas with lettering at least three (3) inches in height stating that
there are gaming devices inside, no one under the age of eighteen
(18) allowed in gaming area, and no one under the age of twenty-one
(21) allowed to play video gaming devices.
(b)
Video
gaming employees and permits.
(1)
All video gaming employees shall possess and wear on the person a
valid video gaming employee permit. The penalty after subsequent offenses
shall be administrative action, including, but not limited to, suspension
or revocation of the permit.
(2)
All video gaming employees or applicants shall notify the city in
writing of all changes of address, phone numbers, and other required
information in the application within ten (10) calendar days or the
effective date of the change.
(3)
All video gaming employees shall have knowledge of these rules and
the provisions of this article.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2022-09 adopted 5/10/22; Ordinance
2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
(a)
Device
specifications.
(1)
All devices shall include the following specifications and features:
(A)
Accept only a type of consideration as listed in the “video
gaming device” definition.
(B)
The phrase “no person under the age of 21 allowed to play”
shall be conspicuously displayed on the face of all devices.
(C)
Permanent serial numbers not to exceed nine alpha and/or numeric
characters. The serial number plate shall be located in the upper
(front) right side panel of the device and shall contain the serial
number of the device.
(b)
Damage
to or theft from devices.
(1)
Upon discovery of damage to or theft from a video gaming device,
the device owner, licensed establishment owner, or a designated representative
of the licensed establishment shall request the local law enforcement
agency to investigate.
(2)
The device owner or licensed establishment owner shall immediately
notify the police department, in writing, of any damage to or theft
from a device.
(c)
Devices
permanently removed from service.
(1)
When a device is permanently removed from service by a licensed device
owner, the validation decal shall be removed by that device owner
and shall be returned to the city with the completed device transfer
report provided by the city.
(2)
No devices, which are permanently removed from service, shall have
a validation decal displayed on it.
(3)
For purposes of this section, devices permanently removed from service
shall mean devices:
(d)
Disabling
or seizure of devices or licenses.
The city shall have
the authority to disable, seal and/or seize any device or license
at any location when a violation of the ordinance occurs, in accordance
with the procedure provided herein. It shall be unlawful for any person
to enable a lawfully disabled device, to break the seal of a device
affixed by the city, or to continue to operate once the operator’s
license is seized.
(e)
Restrictions,
regulations, controls and limitations for licensed establishments.
(1)
No licensed establishment shall be altered, renovated, or expanded
if such alteration, renovation, or expansion is for the purpose of
moving devices or installing additional devices, without first submitting
to the city for approval, a written notification, via delivery by
the United States Postal Service certified or registered mail, return
receipt requested or a private or commercial interstate carrier, of
the intent and set of plans illustrating the projected changes.
(2)
Any licensed establishments that allow mixed patronage, shall have
devices for play and operation only in designated areas. These gaming
areas shall be physically separated by a partition. The partition
shall be permanently affixed and solid except for an opening to allow
for player access into the gaming area.
(3)
A licensed establishment which is connected by a doorway or other
opening to any other business establishment whether or not such other
establishment is eligible for licensing by the city shall:
(A)
Have a door or doors between the licensed establishment and the other
entity which shall automatically close;
(B)
Have a separate outside entrance for patrons such that an individual
patron may enter each establishment from the exterior of the building;
(C)
Keep business records and books that are separate from those of the
other entity; and
(D)
Have personnel who work solely for the licensed establishment and
not for the other entity during all hours of operation of the licensed
establishment.
(4)
Distance requirements:
(A)
The location of any video gaming establishment is hereby prohibited
where the place of business is within 1,500 feet of another video
gaming establishment, any church, daycare, school, or other educational
institution, hospital or healthcare facility, public building or the
boundary line of a residential zoning district in the city.
(B)
The measurement of the distance between the place of business where
the video gaming devices are located and the church or public hospital
shall be along the property lines of the street fronts and from front
door to front door, and in a direct line across intersections.
(C)
Facilities with video gaming devices are exempt from these distancing
restrictions upon proof that the applicant continuously owned and
operated the establishment at the same location and under the same
name prior to May 1, 2022. If the establishment changes its name,
its owner, and/or adds another owner after this date, or if its permit
was suspended or revoked, or its permit was denied renewal, or if
the permit is allowed to lapse, then the facility will be considered
a new establishment and not exempt from the distancing requirements.
All applications claiming a distance exemption under this subsection
must have been submitted on or before May 1, 2022.
(5)
It shall be unlawful for any person to possess, consume, or otherwise
bring any alcoholic beverage in or upon any premises licensed as a
gaming device location by the city.
(6)
It shall be unlawful for any permittee, licensee, or employee thereof
to allow any person to possess, consume, or otherwise bring any alcoholic
beverage in or upon any premises licensed as a gaming device location
by the city.
(7)
The exception to this prohibition by this section would not be applicable
to premises licensed in accordance with the provisions of the Texas
Alcoholic Beverage Code and the alcoholic beverage code of the city.
(8)
All entries and exits to licensed establishments by which customers
enter and exit shall remain unlocked during all hours of operation
to allow immediate, unobstructed entry into said locations by customers,
city personnel, and law enforcement. Facilities with video gaming
devices shall not use electronic lock systems or electronic keypad
mechanisms to prevent entry into said locations during hours of operation.
(9)
Facilities with video gaming devices shall only be considered in
existing light industrial (LI), or heavy industrial (HI) districts.
(A)
Facilities with video gaming devices are exempt from these zoning
restrictions upon proof that the applicant continuously owned and
operated the establishment at the same location and under the same
name prior to May 1, 2022. If the establishment changes its name,
its owner, and/or adds another owner after this date, or if its permit
was suspended or revoked, or its permit was denied renewal, or if
the permit is allowed to lapse, then the game room shall be shut
down. All applications claiming a zoning exemption under this subsection
must have been submitted on or before May 1, 2022.
(11)
Facilities shall not exceed fifty (50) video gaming devices in operation
on the premises.
(A)
Facilities with video gaming devices are exempt from these operational
device restrictions upon proof that the applicant continuously owned
and operated the establishment at the same location and under the
same name prior to May 1, 2022. If the establishment changes its
name, its owner, and/or adds another owner after this date, or if
its permit was suspended or revoked, or its permit was denied renewal,
or if the permit is allowed to lapse, then the game room shall be
shut down.
(12)
Facilities shall provide transparent uncovered glass in each exterior
window and door. No licensee or permittee shall tint a window or door
of the facility.
(A)
No licensee or permittee shall cover, sheathe, or otherwise block
a window or door, so as to obscure the view of any video gaming machine
located in the establishment, or the interior of the location from
the sidewalk through the facility’s window or door.
(13)
Facilities shall not restrict entry to the establishment and/or prohibit
the participation in any activity inside of the facility by a patron
through the requirement of a membership.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2013-51, secs. 2-3, adopted 9/24/13; Ordinance 2022-09 adopted 5/10/22; Ordinance 2022-18 adopted 8/9/22; Ordinance
2022-23 adopted 9/13/2022)
(a)
General
provisions.
(1)
All licensees and permittees shall comply with all applicable federal,
state and local laws and regulations.
(2)
In addition to any other penalty or punishment imposed by law, any
violation of the provisions of this article shall also constitute
a violation of these rules and grounds for revocation of a license
or permit issued pursuant to this article.
(b)
Unsuitable
conduct.
(1)
No licensee or permittee shall engage in unsuitable conduct or practices
or shall employ or have a business association with any person, natural
or juridical, which engages in unsuitable conduct or practices.
(2)
For purposes of this section, unsuitable conduct or practices shall
include, but not be limited to the following:
(A)
Employment of, association with, or participation in any enterprise
or business with a documented or identifiable organized crime group
or recognized organized crime figure;
(B)
Misrepresentation of any material fact or information to the city;
(C)
Obstructing or impeding the lawful activities of the city or its
agents;
(D)
Engaging in, furtherance of, or profit from any illegal activity
or practice, or any violation of these rules of this article;
(E)
Persistent or repeated failure to pay amounts due or to be remitted
to the city; and
(F)
A licensee or permittee shall not engage in, participate in, or facilitate
by any means, any criminal activity.
(3)
Any person required to be found suitable or approved in connection
with the granting of any license or permit shall have a continuing
duty to notify the city of his/her/its arrest, summons, citation or
charge for any criminal offense or violation including DWI; however,
minor traffic violations need not be included. All licensees and permittees
shall have a continuing duty to notify the city of any fact, event,
occurrence, matter or action that may affect the conduct of gaming
or the business and financial arrangements incidental thereto or the
ability to conduct the activities for which the licensee or permittee
is licensed or permitted. Such notification shall be made within ten
calendar days of the arrest, summons, citation, charge, fact, event,
occurrence, matter or action.
(4)
A licensee or permittee shall not intentionally make, cause to be
made, or aid, assist, or procure another to make any false statement
in any report disclosure, application, permit form, or any other document,
including improperly notarized documents, required by these rules
or this article.
(c)
Additional
causes for disciplinary action.
(1)
Further instances of conduct by a licensee or permittee where the
city may sanction a licensee or permittee shall include but not be
limited to when:
(A)
The licensee or permittee has been involved in the diversion of gaming
equipment for unlawful means;
(B)
The licensee or permittee or a designated representative of the licensee
or permittee has been involved in activities otherwise prohibited
by law or the willful purpose of which was to circumvent or contravene
the provisions set forth in the city’s rules;
(C)
The licensee or permittee has demonstrated a reluctance or inability
to comply with the requirements set forth in these rules and this
article, particularly after repeated warnings;
(D)
The licensee or permittee violates written conditions;
(E)
The city discovers incomplete or erroneous information as to a material
or a substantial matter provided on an application or any item affecting
the decision whether to license the applicant;
(F)
The city discovers substantial, incomplete or erroneous information
provided in a report or other required communication;
(G)
The licensee or permittee has failed to timely pay a fine imposed
by the city; and
(H)
The licensee or permittee, their designated representatives, or any
agents of the licensee is unavailable at the licensed establishment.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2013-51, sec. 4, adopted 9/24/13; Ordinance 2022-09 adopted 5/10/22; Ordinance 2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
(a)
Inspections
of facilities.
(1)
During all hours of operation, any licensed premises upon which a
licensee conducts any video gaming activity, shall be subject to inspection
by the city without advance notice, in order to ensure compliance
with the provisions of this article.
(2)
Once an inspection commences, the licensee or a designated representative
shall render full courtesy and cooperation to agents.
(3)
Upon completion of an inspection, agents may advise the licensee
or a designated representative of any violation or problems which
may exist.
(4)
Agents shall provide the licensee or designated representative with
a copy of an inspection report.
(b)
(c)
Inspection
of devices.
(1)
Agents of the city may, at any time, without advance notice, inspect
any device located within a licensed premises.
(2)
All devices shall have, at all times, the proper validation decal
affixed to the device and maintain log books properly secured in the
device and available for inspection by the city.
(3)
Agents of the city may disable and/or seize any device, which it
finds to be in violation of any of these rules or the law.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2022-09 adopted 5/10/22; Ordinance
2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
Nothing herein shall be construed or have the effect to license,
permit, authorize, or legalize any machine, device, table, or coin-operated
or slot machine, the keeping, exhibition, operation, display or maintenance
of which is now illegal or in violation of any article of the Texas
Penal Code and of any federal laws of the United States of America.
(Ordinance 2013-15 adopted 2/26/13; Ordinance 2022-09 adopted 5/10/22; Ordinance
2022-18 adopted 8/9/22; Ordinance 2022-23 adopted 9/13/2022)
