(a) 
It shall be unlawful for any operator or owner of the game room to operate, use, or maintain a game room without first obtaining a permit from the city issued under the terms and conditions of this article.
(b) 
It shall be unlawful for any operator, permit holder or owner of the game room to operate, use, or maintain a game room located within the city unless the permit issued for that site is posted at or near the principal public entrance to the game room in such a manner that it will be conspicuous to patrons who enter the game room.
(c) 
In any prosecution under subsection (a) above, it shall be presumed that there was no permit at the time of the alleged offense, unless a permit was then and there posted as provided in subsection (b).
(d) 
If there is a change in ownership or operation as delineated in subsection (a), a new application and permit will be required. Additionally, after the denial or revocation of a gaming permit, a new application will be required and is not considered to be a renewal.
(e) 
A game room owner shall obtain a permit from the city, prior to operation, for each game room located in the city.
(f) 
The application for a permit required by this section shall be in the form prescribed by the game room permit administrator and shall contain such information as they shall require. Any failure to provide the information required by this section or a determination is made that inaccurate, erroneous or incomplete information has been submitted shall be grounds for denial of the application.
(g) 
The proposed game room must comply with all locally adopted ordinances and comply with all federal and state statutes and regulations at the time of the submission of the application for a permit.
(h) 
Each application shall also be accompanied by:
(1) 
A copy of a certificate of occupancy issued by the chief building official as appropriate for the proposed game room;
(2) 
In the case of a game room to be operated under an assumed name, a true and correct copy of the registration of the assumed name filed in the office of the county clerk, bearing the file mark or stamp that evidences its filing in that office; and
(3) 
In the case of a game room to be operated as a corporate entity, a true and correct copy of the Texas Secretary of State corporate filing documents, bearing the file mark or stamp that evidence filing with the Texas Secretary of State.
(4) 
Nonrefundable fee(s) as listed in section 6.10.072, fee schedule.
(i) 
Each application received under this section will be investigated to determine whether the permit holder, applicant, owner and operators of a game room have been convicted of any of the following offenses:
(1) 
Gambling, gambling promotion, keeping a gambling place, communicating gambling information, possession of gambling devices or equipment, or possession of gambling paraphernalia as described in Tex. Penal Code ch. 47;
(2) 
Forgery, credit card abuse or commercial bribery as described in Tex. Penal Code ch. 32;
(3) 
Money laundering as described in Tex. Penal Code ch. 34;
(4) 
Criminal attempt, conspiracy or solicitation to commit any of the foregoing offenses; or any other offense to the laws of another state or the United States that, if committed in this state, would have been punishable as one or more of the aforementioned offenses; or
(5) 
A criminal offense as described in Tex. Local Government Code ch. 352, subch. B; and
(A) 
Less than two (2) years have elapsed since the date of conviction or the date of release from confinement for the conviction, whichever is the late date, if the conviction is of a misdemeanor offense; or
(B) 
Less than five (5) years have elapsed since the date of conviction or the date of release from confinement for the conviction, whichever is the later date, if the conviction is of a felony offense.
(j) 
A conviction, within the past ten (10) years, for an offense involving gambling and the possession of gambling paraphernalia, as defined above, shall be grounds for denial, revocation, or refusal to renew such licenses because these businesses offer special opportunities for gambling activities.
(k) 
Any failure of a proposed game room to meet all requirements of this section shall be grounds for denial, revocation, or suspension of a game room license.
(l) 
Each game room permit is valid for one year and shall expire on the anniversary date of the issuance of the permit. A permit may be renewed for the following calendar year beginning sixty (60) days before the expiration of the current permit by filing a completed application for each permit and paying the applicable fee set forth in section 6.10.072, fee schedule.
(m) 
A machine that provides the possibility, probability and/or certainty of dispensing a noncash prize, toy or novelty with a value of not more than ten (10) times the amount charged to play the game or device once, or $5.00, whichever is less at the time of play, but does not allow the player to amass or accumulate points, tokens or any other method to accumulate credits towards larger or greater value noncash merchandise prizes, toys or novelties is exempt from the requirements of this article.
(Ordinance 23-073 adopted 9/26/2023)
Gaming machines, as defined in this article, shall be registered as follows:
(1) 
The permit holder, game room owner or operator is required to maintain in its game room a complete inventory list, along with serial numbers or equivalent identification, as set forth in subsections (4) and (5) below at all times. The initial application for permit shall include a certificate of the inventory, along with serial numbers or equivalent identification, as set forth in subsections (4) and (5) below, of the machines that the permit holder intends to put into operation when the game room begins its business activities.
(2) 
Each renewal permit application shall contain a certificate of inspection of updated inventory list, along with serial numbers or equivalent identification, as set forth in subsections (4) and (5) below, of the gaming machines that the permit holder intends to put into operation when the game room begins its business activities under the renewal license.
(3) 
Before a new gaming machine is put into operation at the game room, the permit holder shall update the inventory list and register the gaming machine with the city and pay all taxes and regulatory license fees as required. Changes or additions to the inventory list submitted separately from the initial application are subject to the regulatory enforcement license fee listed in section 6.10.072, fee schedule.
(4) 
Upon review of the inventory of machines under subsections (1), (2) and (3) above, the city registration decal will be issued for each gaming machine. The registration decal will contain an inventory number. The registration decal for each machine shall be permanently affixed thereto and in plain view at all times and shall match the Texas Comptroller issued identification number displayed on the machine as indicated on the submitted inventory list as described under subsection (1). Registration decals are not transferable. The failure of any machine to display a current registration decal shall be a violation of this section and subject to enforcement action by the city.
(5) 
The inventory of machines under subsections (1), (2) and (3) above shall provide the following information: the manufacturer(s); the serial number(s); common name, type or description of the game played on the machine. The registration decal shall contain the inventory number of the machine.
(6) 
A penalty as listed in section 6.10.097 will be assessed against each unregistered machine found to be in operation at a game room.
(Ordinance 23-073 adopted 9/26/2023)
A site plan of the location must be provided upon initial application or a permit renewal if modifications to the site have been made or gaming machines have been added. The site plan must include the following details:
(1) 
Overall view of the property;
(2) 
Parking spaces for the location;
(3) 
Floor plan of building(s);
(4) 
Location of gaming machine(s); and
(5) 
Windows and doors.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
It shall be unlawful to operate any game room located within the city unless the certificate of occupancy issued for that site is posted at or near the principal public entrance to the game room in such a manner that it will be conspicuous to patrons who enter the game room.
(b) 
All associated laws, ordinances and adopted codes shall apply to obtaining said certificate of occupancy.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
A permit issued under this article does not vest any property rights in the applicant or permit holder; except to display, exhibit or maintain for public patronage the use of any gaming machines in accordance with the terms and conditions of this article.
(b) 
A permit is nontransferable and nonrefundable.
(c) 
A permit shall be issued for a twelve (12) month term beginning on the date of issuance.
(d) 
Any false statement made by an applicant on the application shall subject the permit to immediate suspension pending revocation and the application may be prosecuted as a violation of section 37.10 of the Texas Penal Code (tampering with governmental records), a third degree felony.
(e) 
An application for permit shall be made by the intended game room owner of the game room.
(f) 
Prior to application of a gaming permit, a gaming locate form shall be submitted to the city in a form prescribed by the game room permit administrator for each proposed location to ensure distancing requirements are met in accordance with section 6.10.068 and collect fees as listed in section 6.10.072, fee schedule.
(g) 
The gaming permit application must be submitted with the following:
(1) 
A copy of a certificate of occupancy issued by the chief building official of the city for the proposed game room;
(2) 
A list of game room owner(s) and operators with fingerprint reports of the game room owners and operators of the proposed game room;
(3) 
Name, address and telephone number of the game room owner(s) and operators, including the trade name by which owner(s) and operators does business and the street address of the proposed game room, and, if incorporated, the name registered with the Secretary of State;
(4) 
In the case of corporate ownership, a copy of the certificate of incorporation;
(5) 
In the case of a game room to be operated under an assumed name, a true and correct copy of the registration of the assumed name filed in the office of the county clerk, bearing the file mark or stamp that evidences its filing in that office;
(6) 
An inventory list, along with serial numbers or equivalent identification, as set forth in subsections 6.10.0032(4) and (5), of the machines that the permit holder intends to put into operation when the game room begins its business activities;
(7) 
Game room permits shall not be issued to the applicant unless the application is signed by the applicant:
(A) 
I am applying for a permit on behalf of the permittee and I have actual knowledge of the operation of a game room under this permit; I acknowledge that any person operating a game room under this permit will do so under my direction and control, and I further acknowledge that I may be held criminally liable for illegal activity associated with the game room under this permit, including gambling, gambling promotion, or keeping a gambling place under chapter 47 of the Penal Code; operating an unauthorized game room under chapter 6 of the city code; and other applicable penal statutes.
(8) 
Game room permits shall not be issued to the applicant unless that application is signed by a natural person:
(A) 
Who is:
(i) 
The property owner; or
(ii) 
If the property owner is a business organization, a natural person who attaches to the application documentary evidence demonstrating that they are authorized to sign the application on behalf of the property owner; and
(B) 
Who signs the following acknowledgement: I have actual knowledge of the operation of a game room under this permit; I acknowledge that any person operating a game room under this permit will do so under my direction and control, and I further acknowledge that I may be held criminally liable for illegal activity associated with the game room under this permit, including gambling, gambling promotion, or keeping a gambling place under chapter 47 of the Penal Code; operating an unauthorized game room under chapter 6 of the city code; and other applicable penal statutes.
(9) 
A site plan as set forth in section 6.10.033;
(10) 
The application or renewal fee as listed in fee schedule in section 6.10.072;
(11) 
The occupation tax fee per machine as listed in the fee schedule in section 6.10.072;
(12) 
Whether a previous permit of the game room owner(s) and operators or, if applicable, a corporate officer of the game room owner(s) and operators has ever been revoked;
(13) 
A statement that all the facts contained in the application is true and correct; and
(14) 
Proof of having submitted to and passed any applicable annual inspections.
(h) 
Any false statement made by an applicant on the application shall subject the permit to immediate suspension pending revocation and the applicant may be prosecuted as a violation of V.T.C.A., Penal Code 37.10 (tampering with evidence), a third degree felony.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
The application process shall commence upon the submission of a complete application, with all required attachments and the application fee, to the game room permit administrator.
(b) 
Once a complete application has been received, the fire chief will conduct up to three (3) inspections of the applicant's proposed game room to ensure compliance with these regulations. The game room owner must be present in person during these inspections.
(1) 
The fire chief shall conduct the initial inspection within twenty-one (21) days of receipt of the completed application and payment of the regulatory enforcement license fees as listed in section 6.10.072, fee schedule. It shall be the responsibility of the permit holder to schedule all required inspections.
(2) 
After the initial inspection, the applicant will be informed of what corrections, if any, must be made to the proposed game in order to comply with these regulations.
(3) 
If necessary, a second inspection will be performed not less than seven (7) days nor more than fourteen (14) days after the initial inspection. After this inspection, the applicant will again be informed of what corrections must be made to the proposed game room, if any, in order to comply with these regulations.
(4) 
If necessary, a third and final inspection will be performed not less than seven (7) days nor more than fourteen (14) days after the second inspection. A reinspection fee as listed in section 6.10.072 shall be paid prior to conducting the third inspection. If, after the third and final inspection, the proposed game room fails to comply with these regulations, the game room permit administrator shall deny the application.
(5) 
If the proposed game room passes inspection and meets all requirements of these regulations after any inspection, the game room permit administrator shall approve the application.
(c) 
Failure to provide any information required by this section or a determination by the game room permit administrator that inaccurate, erroneous, or incomplete information has been submitted shall be grounds for denial of the application.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
The game room permit administrator shall refuse to approve the issuance or renewal of a permit or shall revoke a permit for one or more of the following reasons:
(1) 
A false statement as to a material matter made in an application for a permit;
(2) 
Revocation of a permit, pursuant to this article, of the owner or operator;
(3) 
The owner or operator for such permit has, within the past ten (10) years, been convicted of a crime involving moral turpitude or gambling.
(b) 
The game room permit administrator shall not issue or renew a permit under this article and shall suspend or revoke a permit if it is determined that the applicant or permit holder is indebted to the city for any fee, costs, penalties, or delinquent taxes at the time of application or renewal.
(c) 
The game room permit administrator shall have the authority to deny or revoke all permits issued under this provision for any violation of this article by giving written notice, stating the reason for denial or revocation, and same shall be cancelled thirty (30) days from the date of receipt of such notice unless the applicant resolved all violations listed in the written notice.
(d) 
No permit shall be issued to an owner or operator whose permit has been revoked, except through the appeals process as described in section 6.10.038.
(Ordinance 23-073 adopted 9/26/2023)
If the game room permit administrator denies, refuses to approve the issuance of a permit or the renewal of a permit to an applicant, or revokes a permit issued under this article, this action is final unless the applicant or permit holder, within ten (10) days after the receipt of written notice of the action, files a written appeal to the city council by delivering said notice to the city clerk setting forth specific grounds for the appeal. The city council shall hear the appeal or select a hearing officer to preside over the appeal hearing. The city council or hearing officer shall within fourteen (14) days of the notice of appeal, grant a hearing to consider the action. The city council and hearing officer have the authority to sustain, reverse, or modify the action appealed. The decision of either the city council or hearing officer is final.
(Ordinance 23-073 adopted 9/26/2023)
A permit issued under the provisions of this article shall be specific to the site and personal to the holder thereof and shall not be transferable or assignable.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
A replacement permit shall be issued to the original applicant for one lost, destroyed, or mutilated after an application is submitted with the fee listed in section 6.10.072, fee schedule to the game room permit administrator on a form provided by the city for such purpose.
(b) 
A replacement permit shall bear the same expiration date as the one it replaces.
(Ordinance 23-073 adopted 9/26/2023)
(a) 
Every permit holder who controls, possesses, exhibits, or displays, or who permits to be exhibited or displayed in the city for public patronage or operation by the public, any gaming machines shall pay, and is hereby levied on each such gaming machine, except those exempt under this article, an annual occupation tax in the amount equal to one-fourth (1/4) of the current state occupation tax. All occupation taxes for gaming machines are payable annually in advance. The fee for issuing a replacement occupation tax receipt for one lost, destroyed or mutilated shall be fifteen dollars ($15.00), listed in section 6.10.072, fee schedule.
(b) 
Since the tax is payable in advance on an annual calendar year basis, the following pro rata tax rate schedule will be applicable to a gaming machine which is first exhibited or displayed for a commercial use within the city during any quarter of the calendar year:
(1) 
First quarter.
January 1 to March 31 - an amount equal to the applicable local annual occupation tax;
(2) 
Second quarter.
April 1 to June 30 - an amount equal to three-quarters (3/4) of the applicable local annual occupation tax;
(3) 
Third quarter.
July 1 to September 30 - an amount equal to one-half (1/2) of the applicable local annual occupation tax; and
(4) 
Fourth quarter.
October 1 to December 31 - an amount equal to one-quarter (1/4) of the applicable local annual occupation tax.
(c) 
In computing any tax payable under the aforesaid pro rata tax schedule, amounts calculated thereunder shall be rounded to the next higher full cent amount as required.
(Ordinance 23-073 adopted 9/26/2023)