The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
Amusement redemption machine.
Any electronic, electromechanical, or mechanical contrivance,
including sweepstake machines, designed, made, and adapted solely
for bona fide amusement purposes, and that by operation of chance
or a combination of skill affords the user, in addition to any right
of replay, an opportunity to receive exclusively non-cash merchandise
prizes, toys, or novelties, or a representation of a value redeemable
for those items and is in compliance with section 47.01(4)(b) of the
Texas Penal Code. Amusement redemption machine does not include:
(1)
A machine that awards the user non-cash merchandise prizes,
toys, or novelties solely and directly from the machine, including
claw, crane, or similar machines; nor
(2)
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 objects
into the machine or a part thereof, including basketball, golf, bowling,
or similar machines where the theme of the machine is not one traditionally
recognized or associated as a casino-type gambling activity or game
such as eight-liners, games played with cards, dice or other playing
boards or mediums, such as Poker, blackjack, keno, bingo, slots, Craps,
Roulette, Baccarat or similar games. A representation of value means
cash paid under authority of sweepstakes contestants as provided by
the Texas Business and Commerce Code, section 43.
(3)
A machine or any device defined in V.T.C.A., Penal Code section
47.01 as a gambling device, or any activity prohibited or described
in V.T.C.A., Penal Code chapter 47.
Applicant.
A natural person who applies for a game room license on behalf
of the licensee.
Arcade game.
Any electronic, electromechanical, or mechanical contrivance
designed, made, and adapted solely for bona fide amusement purposes
that does not afford the user any opportunity of a free replay or
a chance to receive any additional consideration other than amusement
through playing.
Chief building official.
The chief building official for the City of Coleman or the
chief building official’s authorized representative.
Chief of police.
The chief of police of the City of Coleman authorized to
enforce and administer this article or the chiefs authorized representative.
City.
The City of Coleman.
City manager.
The city manager of the City of Coleman authorized to enforce
and administer this article or the city manager’s authorized
representative.
City secretary.
The city secretary of the City of Coleman or the city secretary’s
authorized representative.
Compensation.
Any and all forms of payment as remuneration for the provision
of playing an amusement redemption machine.
Fire marshal.
The fire marshal of the City of Coleman of the fire marshal’s
authorized representative.
Game room.
A building, facility, or other place, including private club
or commercial business location that derives any revenue directly
or indirectly from the operation of one (1) or more amusement redemption
machines, or from patrons playing non-electronic games of any type,
including without limitation, cards, dice, dominos, board games, but
specifically excluding bingo establishments operated under other law;
or possesses one (1) or more amusement redemption machines, whether
operating or not on the premises.
Licensee.
Any person, individual, firm, company, association, or corporation
operating an amusement redemption machine game room in the city.
Manager, operator or owner.
An individual who supervises, manages, or participates in
the performance of activities that contribute to the functioning of
a game room, including but not limited to, operating cash register/drawer,
credit card transaction or some other depository on the premises of
a game room, displays, delivers, or provides to a customer of a game
room merchandise, goods, entertainment or other services, takes orders
from a customer of a game room for merchandise, goods, entertainment
or other services or acts as a door attendant to regulate entry of
customers.
(Ordinance 2019 adopted 1/7/21)
No person shall operate a game room in the city without first
obtaining a license from the city, as required by this article. No
license shall be issued until:
(1) The
state occupation tax has been paid for each amusement redemption machine
within the premises;
(2) The
city’s occupation tax, sometimes referred to herein as the annual
tag fee, has been paid for each amusement redemption machine within
the premises;
(3) The
annual inspection and game room license fee has been paid; and
(4) All
other licensing requirements as set forth in this article have been
met.
(Ordinance 2019 adopted 1/7/21)
An owner, operator, or lessee of a game room shall be required
to secure a license annually. A game room shall be required to secure
a license by paying to the city an annual inspection and game room
license fee (the “license fee”) in the amount of two thousand
four hundred dollars ($2,400.00). Upon payment of the license fee,
payment of the annual tag fee of the city for each amusement redemption
machine within the premises, and compliance with all licensing requirements,
the license shall be issued by the city.
(Ordinance 2019 adopted 1/7/21)
(a) An
occupation tax permit issued by the state and all seals required by
the state shall be securely affixed to each amusement redemption machine.
Such permits and seals shall be affixed on the front of each machine
in a clearly visible location.
(b) The
city hereby assesses, and the city secretary shall collect an annual
occupation tax in the amount of fifteen ($15.00), per machine, which
shall be paid before a tax certificate (“tag”) may be
issued.
(c) A
tag issued by the city shall be securely affixed to each amusement
redemption machine. This tag shall bear the name of the machine, and
the serial number of the machine to which it is issued and affixed.
The tag shall be affixed on the front of the machine in a clearly
visible location. The tag shall, for its valid period, remain legible
and undamaged.
(d) All
tags shall be issued on the basis of a calendar year. Occupation taxes
shall not be prorated. Tags issued at any time during a calendar year
shall automatically expire on December 31st of each year.
(e) Replacement
tags issued by the city must meet all requirements listed in this
section. Replacement tags shall not be prorated and shall bear the
word “replacement.” Replacement tags will be issued for
damaged original tags. The original tag must be surrendered to the
city before a replacement tag is issued. Replacement tags for lost
original tags will be issued only when an affidavit is completed explaining
the loss. The affidavit will also include serial number and name of
the amusement redemption machine to which the replacement tag shall
be issued.
(Ordinance 2019 adopted 1/7/21)
A license issued for a game room under this article:
(1) Is
an annual license which expires December 31st of each year unless
it is suspended or cancelled earlier;
(2) Is
effective for a single place of business only;
(3) Vests
no property right in the licensee except to maintain, display for
public patronage, and permit the use or skill or pleasure of amusement
redemption machines in accordance with the terms and conditions of
this article;
(4) Shall
automatically expire if the licensee thereof sells the property or
the business, transfers equity to accomplish same, or otherwise disposes
of amusement redemption machines; and
(5) Is
not assignable or transferable.
(6) In
addition, the city shall not refund any portion of a license fee after
the license is issued, nor shall it prorate or reduce in amount any
fee due to the city.
(Ordinance 2019 adopted 1/7/21)
(a) Game
rooms shall have windows on at least two (2) sides on the building,
affording a clear and unobstructed view of each amusement redemption
machine through the windows.
(1) Windows shall, at a minimum, be four (4) feet wide and five (5) feet
tall.
(2) Windows shall not be tinted.
(3) Windows shall not be obstructed in anyway, to include but not limited
to blinds, drapes, writing, signage, banners, or graphics on or covering
the windows during hours of operation.
(4) Security devices for windows, if installed, shall be retractable
or otherwise able to be removed during hours of operation.
(b) No
amusement redemption machines or related business activities shall
be allowed to be situated or performed outdoors.
(c) The
hours of operation for a game room shall be limited to the following
hours:
(1) Monday through Thursday, open at 9:00 a.m. and close at 10:00 p.m.;
and
(2) Friday through Sunday, open at 9:00 a.m. and close at 11:00 p.m.
(d) The
owner, operator, or manager of the licensed premises must be present
to supervise the operation of the game room. The game room shall not
be left unattended during hours of operation.
(e) Amusement
redemption machines must be situated within the licensed premises
as to be in full and open public view, which entails being visible
to all patrons of the establishment.
(f) No
person under the age of eighteen (18) years shall be permitted inside
the building, structure, facility, or space, housing the game room.
(g) A
sign in one and one-half inch (1-1/2") or larger typed block letters
and which is legible from a distance of at least twenty-five feet
(25') stating that no one under the age of eighteen (18) is allowed
inside the game room shall be posted in plain sight immediately inside
the entrance stating that:
“No person under the age of eighteen (18) years shall
be permitted inside the building, structure, facility or space housing
the game room.”
(h) A
game room owner, operator or lessee must be a person who is at least
eighteen (18) years of age.
(i) The
total number of operational amusement redemption machines allowed
in one (1) game room establishment shall be based on the game room
building’s occupancy limit and shall not exceed the lower of
one (1) amusement redemption machine per five (5) occupants or a maximum
number of twenty (20) amusement redemption machines. Any back-up,
nonoperational or replacement amusement redemption machines shall
be secured in a locked storage area or closet to which the public
is not allowed to enter and such machines shall not be connected to
electricity or be otherwise operational. The occupation tax on such
back-ups or replacement amusement redemption machines shall be paid
annually regardless of whether such machines are used by the game
room’s patrons.
(j) The
owner, operator, or manager of the licensed premises shall mark each
entrance to a game room with a typed sign which bears the words “game
room” in one and one-half inch (1-1/2") or larger block letters
and which is legible from a distance of at least twenty-five feet
(25').
(k) Game
rooms are deemed to be public places to which the public has access.
(l) All
entrances and exits to game rooms are to remain unlocked during hours
of operation. Entrances and exits may not make use of a “buzzer”
system or any other system or device that prevents individuals from
freely opening a door during hours of operation. This does not apply
to emergency exits, which must meet all applicable fire codes and
regulations:
(1) The exterior of all entrances and exits must be clearly illuminated
during hours of darkness.
(2) The exterior of all emergency exits must be clearly illuminated during
hours of darkness.
(m) Nothing
contained herein shall be construed or have the effect to license,
permit, authorize or legalize any machine, device, table, or gaming
machine, the keeping, exhibition, operation, display or maintenance
of which is illegal or in violation of any ordinance of the city,
any regulation of the county, any section of the penal code of this
state, or the constitution of this state.
(Ordinance 2019 adopted 1/7/21)
Compensation for the playing of an amusement redemption machine
is limited to tangible, physical merchandise awarded from the game
room, or replays on the amusement redemption machine. Prohibited compensation
includes, but is not limited to, money, vouchers for utilities, vouchers
for other businesses or services, food, beverages, services, gift
certificates, or prepaid credit/debit cards.
(Ordinance 2019 adopted 1/7/21)
(a) License required.
It shall be unlawful for any person
to operate any game room within the city without first obtaining a
license from the city secretary’s office. The license shall
at all times be displayed in a conspicuous place within the licensed
premises. Any license issued to operate a game room shall expire on
the 31st day of December in the year of issuance. Licenses shall be
issued to the owner or documented lessee of the premises only and
shall not be transferable.
(b) Contents of game room license application.
The application
for a game room license to be issued pursuant to this article shall
be sworn and shall contain information required by the city secretary
on a form provided for that purpose, including:
(1) The full and correct business name of the Licensee, as currently
filed with the Texas Secretary of State’s office;
(2) The trade name of the Licensee, if different from the business name
on file with the Texas Secretary of State’s office;
(3) The state tax ID number of the licensee, as issued by the Texas Comptroller
of Public Accounts;
(4) All addresses and telephone numbers of the licensee;
(5) The names and dates of birth of each and every officer, managing
member, or person who owns ten percent (10%) or greater interest in
the licensee;
(6) A list of all prior criminal convictions of each and every officer,
managing member, or person who owns ten percent (10%) or greater interest
in the licensee, for all felony offenses, and for misdemeanors involving
drug offenses, fraud, theft, gambling, or weapons offenses, or offenses
against public administration;
(7) Whether alcoholic beverages will be sold or permitted on the premises
of the business;
(8) The address of the premises where the Licensee will operate the game
room, and the full and correct name of the property owner of such
premises as recorded in the deed records of the county;
(9) A scaled floor plan of each public space of the game room in which
amusement redemption machines may be located during the term of the
license, including the following;
(A) The maximum number of amusement redemption machines in each space;
(B) The total square footage of the building, and each space within the
building;
(C) Dimensions of each amusement redemption machine;
(D) Location and measurements of entrances and exits;
(E) Measured foot traffic pathways/aisles;
(F) Location and measurements of office, bathrooms;
(G) Number of fixtures, such as HVAC units, sinks, toilets, windows,
and walls; and
(H) Location and area of any redemption area, snack bar, and/or customer
service area.
(10) A list of all cities and/or counties that the applicant and every
officer, managing member or person who owns ten percent (10%) or greater
interest in the licensee has operated and whether or not they had
a license or permit of the type requested revoked, denied or suspended
within the past 5 years.
(c) Background check.
(1) The chief of police, or a duly authorized representative, shall conduct
an investigation into the publicly filed business records of the licensee
and the background of all applicants and each officer, managing member,
or owner of ten percent (10%) or greater interest in the licensee.
The investigation may be completed by the city police department or
by a third-party vendor approved in advance by the chief of police.
The investigation shall include fingerprinting the individual and
a check of the individual’s local, state, and national criminal
records in accordance with Texas Government Code, sections 411.087
and 411.122. The investigation shall include making a permanent record
of the identity of all individuals described in this paragraph.
(2) The chief of police shall deny issuance of a permit if the application
or investigation shows any of the following:
(A) The applicant or an officer, managing member, or owner of ten percent
10% or greater interest in the licensee has been convicted, within
the five (5) years preceding the date of the application, of any crime
required to be listed on the permit application and not disclosed
thereupon, or of a felony, or for gambling, gambling promotion, keeping
a gambling house, fraud, theft, an offense against public administration,
or another crime that directly relates to the duties and responsibilities
of a licensee pursuant to this article;
(B) The permit application includes a false statement by the applicant;
(C) The city or any other city or county has revoked the applicant’s
or licensee’s license or permit of the type requested within
the past five years.
(d) As
part of the licensure process Applicant shall make the premises to
be licensed available for city inspection, which shall include without
limitation, inspection by the chief of police, chief building official
and city fire marshal, or their respective authorized representatives.
No license shall be issued until such premises conforms to the requirements
of this article and the Code of Ordinances.
(e) The
city secretary shall collect a license fee as set forth in this article
as established by the city council for each game room license issued.
(Ordinance 2019 adopted 1/7/21)
(a) A
license may be renewed for the following calendar year beginning October
1st of each year by filing a completed application for each license
and paying the applicable fee set forth in this article. A renewal
application shall be subject to the same requirements in this section
as for a license application.
(b) Upon
the expiration of a license, the licensee shall be required to obtain
a renewal of the expired license if the licensee wishes to continue
operating an amusement redemption machine game room. Failure to obtain
the renewal within thirty (30) days after expiration may require such
person to pay an additional late fee in an amount equal to fifty (50)
percent of the fee as currently established or as hereafter adopted
by city council from time to time. Nothing herein authorizes the licensee
to operate after the expiration of a license and before a renewal
is effective.
(Ordinance 2019 adopted 1/7/21)
The city shall not issue or renew a license under this article
and shall suspend or cancel a license if it be determined that the
applicant or licensee is indebted to the city for any fee or costs
related to this article until such time as the amount due is paid.
(Ordinance 2019 adopted 1/7/21)
(a) Power and authority.
If any individual, company, corporation
or association who owns, operates, exhibits, or displays any amusement
redemption machine(s) in a game room in this city shall violate any
provision of this article, the city shall have the power and authority
to suspend or revoke the license(s) issued hereunder to any of the
foregoing by giving written notice, stating the reason justifying
such suspension or revocation, and the same shall be suspended or
revoked ten (10) days from the date of such notice.
(b) Suspension.
The city manager shall immediately suspend
a license for a period not to exceed thirty (30) days if he or she
determines that a licensee or an employee of a licensee has:
(1) Violated or is not in compliance with any of the provisions of this
article;
(2) Refused to allow or interfered with an inspection of the game room
premises; or
(3) Demonstrated an inability to operate or manage a game room in a peaceful
and law-abiding manner thus necessitating action by law enforcement
officers.
(c) Revocation for continuing violations.
The city manager
shall revoke a license if a cause of suspension occurs and the license
has been previously suspended within the preceding twelve (12) months.
(d) Automatic revocation.
The city manager or the city manager’s
authorized representative shall revoke a license if:
(1) A licensee gave false or misleading information in the material submitted
to the city during the application process;
(2) A licensee or an employee of a licensee knowingly allowed the possession,
use, or sale of a controlled substance on the premises; or
(3) A licensee or an employee of a licensee operated the amusement redemption
machine game room during a period of time when the licensee’s
license was suspended.
(e) Effect of revocation.
No license shall be issued within
a period of one (1) year to anyone whose license has been revoked.
If the license of an individual, company, corporation, or association
owning, operating, or displaying Amusement Redemption Machines in
this city is cancelled, such individual, company, corporation or association
shall not operate, display or permit to be operated or displayed such
amusement redemption machines in any game room until a new license
is granted.
(Ordinance 2019 adopted 1/7/21)
If the city manager or chief of police refuses to approve the
issuance of a license or the renewal of a license to an applicant,
or suspends or revokes a license issued under this article, this action
is final unless the applicant or licensee, within ten (10) days after
the receipt of written notice of the action, files a written appeal
with the city secretary, who shall, within ten (10) days after the
appeal is filed forward same to the city council for its consideration
at a public meeting following a hearing. The city council shall, within
thirty (30) days, grant such hearing to consider the action. The city
council has authority to sustain, reverse, or modify the action appealed.
The decision of the city council is final.
(Ordinance 2019 adopted 1/7/21)
A valid license issued under this article for a game room shall
be displayed at or near the entrance of the business premises, and
such display shall be permanent and conspicuous.
(Ordinance 2019 adopted 1/7/21)
(a) The
premises in which such amusement redemption machines are located shall
conform to all building codes and fire prevention codes of the city
and the fire marshal of the city and his assistants, the city inspector/code
enforcement officer, and the chief building official may enter into
the premises where such amusement redemption machines are located
at any time during normal business hours for the purposes of inspecting
said premises for fire hazards.
(b) All
law enforcement personnel and the inspector/code enforcement officer
of the city shall have the right to enter into said premises at any
time during normal business hours for the purpose of inspection and
enforcement of the terms of this article.
(1) The chief of police or chief’s authorized representation from
the police department shall conduct regular, recurring inspections.
(c) The
city shall have the authority to seal any amusement redemption machine
located in any game room for which the license fee, occupation tax,
or city tag fee has not been paid. A fee in the amount of five dollars
($5.00) will be charged for the release of any machine sealed for
nonpayment of said tax or fee.
(d) The
manager, operator, owner shall maintain accurate and legible records
of the daily intake of cash/credit paid to play amusement redemption
machines and maintain records of compensation including rights of
replay and merchandise compensation received by customers for play
and approximate cost of such. The records and keys to the motherboard
shall be presented to city officials upon request. A refusal to comply
with such requests is a violation of this article and shall be grounds
for revocation of a license.
(Ordinance 2019 adopted 1/7/21)
A licensee hereunder shall not permit any of the following activities
within the licensed premises:
(1) The
operation of any amusement redemption machine by a person younger
than eighteen (18) years of age;
(3) The
possession of gambling materials; and
(4) Unlawful
or criminal activity of any kind, to include violations of this code.
(Ordinance 2019 adopted 1/7/21)
Nothing herein shall be construed or have the effect to license,
permit, authorize or legalize any machine, device, table, or gaming
machine, the keeping, exhibition, operation, display or maintenance
of which is illegal or in violation of any ordinance of the city,
any regulation of the county, any section of the penal code of this
state, or the constitution of this state.
(Ordinance 2019 adopted 1/7/21)
A person who fails to comply with any requirement of this code
commits a class C misdemeanor punishable by a fine not less than two
hundred and fifty dollars ($250.00) and not more than five hundred
dollars ($500.00); except that:
(1) Proof
of a culpable mental state is expressly not required for a conviction
of an offense under this article, unless specifically required in
this article or state law.
(2) Each
violation is considered a separate offense.
(3) Each
day that a violation occurs is a separate offense.
(4) In
addition to the penalties described in above, the city may pursue
other remedies that the city may have under state or federal law.
(Ordinance 2019 adopted 1/7/21)