(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
(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:
(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.
(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)