HomeMy WebLinkAbout2018-O-15 - Game Rooms and Amusement Redemption Machines "" ORDINANCE NO. 2018-0-15
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, CHAPTER 118: GAME
ROOMS AND AMUSEMENT REDEMPTION MACHINES, PROVIDING FOR THE REGULATION OF CENTERS
AND BUSINESS ESTABLISHMENTS WITH RECREATION AND AMUSEMENT MACHINES WITHIN THE
CORPORATE LIMITS OF THE CITY OF STEPHENVILLE, TEXAS; PROVIDING DEFINITIONS; ESTABLISHING
AUTHORITY TO ENFORCE; PROVIDING FOR A PENALTY CLAUSE; PROVIDING FOR A SEVERABILITY
CLAUSE; PROVIDING FOR PUBLICATION AND AN EFFECTIVE DATE.
WHEREAS, "amusement redemption machines", defined herein, are becoming a popular method of
entertainment and amusement; and
WHEREAS, many"amusement redemption machines" purport to be games of skill or chance even though
the machines use a reflexive percentage arrangement to ensure predetermined outcomes that cheat the
players; and
WHEREAS, there is potential for abuse in that persons operating establishments with "amusement
redemption machines"can exceed the limitations set forth in the Texas Penal Code and become gambling
establishments; and
WHEREAS, the proliferation of these "amusement redemption machines" in the City will necessitate
increased police regulation and review to ensure that such machines and arcades are operated within
lawful parameters; and
WHEREAS,the City Council of the City of Stephenville,Texas is of the opinion that procedures for licensing,
permitting,and regulating the location and operation of"amusement redemption machines" is in the best
interest of the citizens of Stephenville;
NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,TEXAS:
That the Code of Ordinances of the City of Stephenville is hereby amended to include the following:
CHAPTER 118:GAME ROOMS AND AMUSEMENT REDEMPTION MACHINES
118.01 Definitions.
Amusement redemption machine. Any electronic, electromechanical, or mechanical contrivance
that for a consideration affords the player an opportunity to obtain anything of value,the award of which
is determined solely or partially by chance, even though accompanied by some skill, whether or not the
prize is automatically paid by the contrivance, including but not limited to, gambling device versions of
bingo, keno, blackjack, lottery, sweepstakes, roulette, video poker, tic-tac-toe, eight liner or similar
electronic, electromechanical, or mechanical games, or facsimiles thereof, that operate by chance or
partially so.
City official. A code enforcement officer or building official of the City of Stephenville or any peace
officer of the State of Texas.
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Game room. A building, facility or other place that is open to the public and that contains one or more
operational amusement redemption machines.
Game room owner. A person who has any ownership interest in a game room or an owner, director,
or officer of a business entity that has any ownership interest in a game room.
Operational machine. A machine that is ready to be played and accessible to the public.
118.02 Licensing
1. Payment of fee and issuance of license: 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 $250.00\.
Application shall not be approved until a completed application has been submitted and found to
meet all application requirements.
2. Application: An applicant for a license or permit shall file with the City Secretary 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. Location, by address, of the proposed operation.
b. A copy of the certificate of formation if the business is registered with the secretary of
state, or the applicant's d/b/a, if applicable;
c. Name, address,telephone number and driver's license number of the following persons,
if applicable:
i. applicant if a natural person;
ii. all persons who own 25 percent or more interest in the amusement redemption
machine game room;
iii. all corporate officers, if any, of the business;
iv. if a partnership, each of the general and limited partners;
v. the property owner; and
vi. the manager of the property and/or business.
d. The previous occupation(s) of the applicant and, if applicable, all corporate officers and
partners of the applicant within the preceding five years;
e. Whether a previous license or permit of applicant, or, if applicable, corporate or partner
of applicant, has been revoked within two years of filing of the application;
f. Number of amusement redemption machines in the amusement redemption machine
game room;
g. An authorization to conduct a background check for all individuals
included in licensing(c)(ii). The license will be denied if any individual has any convictions,
guilty pleas, or deferred adjudications related to gambling or organized crime.
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"" h. A sworn statement that:
i. That all the facts contained in the application are true and correct;
ii. The location and operation of the amusement redemption machine game room
will not violate any applicable deed restrictions;
iii. The amusement redemption machine game room will be operated in accordance
with all laws and City ordinances, including Chapter 47 of the Texas Penal Code;
and
iv. Name, address and telephone number of an emergency contact person who can
be reached after hours.
3. Expiration and renewal:
a. Expiration.An annual amusement redemption machine game room license issued by the
City shall automatically expire on the thirty-first day of December following its issuance,
except as otherwise stated herein. Such license shall automatically expire if the licensee
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.
b. 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 percent of the fee actually due or 20
"'• percent of the previous year's fee, whichever is greater, in order to obtain reinstatement
of his license. Nothing herein authorizes the licensee to operate after the expiration of a
license and before a renewal is effective.
4. Posting of license:The license shall be conspicuously posted inside the building.
5. Restrictions, regulations, controls, and limitations: The following restrictions, regulations,
controls, and limitations shall apply to all amusement redemption machine game rooms:
a. Condition of premises. All building and fire code standards must be met. A certificate of
occupancy shall be requested before license is issued. Game room must be located in an
area zoned for that activity.
b. Methods of conduction of business. Amusement redemption machines are not allowed
outdoors.
c. Hours of operation. May only be operated between the hours of 10:00 a.m. and 12:00
a.m.
d. Parking requirements. One space for each two machines, plus one space per employee
per shift.
e. Alcoholic beverages. No amusement redemption machine game room may be located on
premises where alcoholic beverages are sold or served, with the exception of any
Congressionally chartered, non-profit organization.
f. 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.
^^ g. Machines must be situated within the premises as to be in full and open public view,
which entails being visible to all patrons of the establishment.
h. A game room operator must be a person who is at least 18 years of age.
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i. Total number of machines in one establishment shall be limited to 50.
j. All machines must be permitted according to the permitting requirements herein.
118.03 Unrestricted access by City official.
An owner, manager or employee of a game room or other person exercising control over a game room, a
portion of a game room or an operational amusement redemption machine, shall provide a City official
with immediate unrestricted access, upon request to all areas of the game room and to all operational
amusement redemption machines located in the game room.
118.04 Inspection by City officials.
1. A city official may inspect a game room or an operational amusement redemption machine
located within the City of Stephenville, Texas' incorporated City limits to determine whether the
game room or an operational amusement redemption machine complies with the City of
Stephenville Code of Ordinances and state law.
2. An owner,manager or employee of a game room or other person who does not allow a City official
to inspect a game room or operational amusement redemption machine commits an offense.
118.05 Transparent, uncovered windows required.
1. 1. Every game room shall have transparent unobstructed windows or open space on at least one
(1)side so that the area is open to view by the general public passing by on a public street or using
a corridor, lobby or other room to which the public has access and is admitted without charge.
The owner, manager or employee of a game room shall not permit any obstruction of such public
view by the use of drawn shades, blinds, partitions, tinting or other structures or obstructions.
2. The requirements of subsection (1) above may be waived or modified by the Building Official if
the game room owner can demonstrate:
a. The game room is located in a structure deemed a historic landmark, or the structure is
within a historic district, and deemed to have architectural or historic significance; and
b. Compliance with the unobstructed view requirement shall require alterations to the
structure that will have a substantially detrimental effect on its historic or architectural
features.
118.06 Hours of operations, ingress and egress
1. All game rooms shall have their hours of operation clearly marked on every entrance.
2. All game rooms shall have doors providing ingress and egress from the game room unlocked
during the hours of operation.
3. It shall be unlawful for any person to keep, conduct or operate any game room for profit or to
allow or permit any game room to remain open for business or open to the public before the hour
of 10:00 a.m. or after the hour of 12:00 a.m.
118.07 Amusement redemption machine permitting.
Permit Application: An owner, operator, or lessee of an amusement redemption machine game room
shall be required to obtain a permit for each amusement redemption machine. As part of the application,
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Regulation of Recreation and Amusement Machines
'—' the owner,operator,or lessee must submit,at their own expense,each amusement redemption machine,
including hardware and software source code, to an independent gaming compliance and testing
laboratory approved in advance by the City to ensure that the machine does not generate the resultant
outcome independent of the skillful actions or luck of the player. Any game that is in violation of this
requirement or State Law will not be permitted or allowed to operate within the incorporated limits of
the City of Stephenville.
Permit: Following approval by the independent gaming compliance and testing laboratory, the City shall
issue a permit that will be permanently affixed to the approved machine. The permit shall include the
name of the machine and the machine's serial number. City will be allowed to charge a permit fee as
allowed by State Law.
Sealing or Seizure: A person commits an offense if he or she owns an operational machine without a
permit or with a tampered permit. In addition to other criminal or civil remedies outlined in this
ordinance, the City shall have the authority to seal or seize any coin-operated machine located in any
amusement redemption game room for which a permit is not displayed. If any amusement redemption
machine is found with evidence of permit tampering of any kind, including a permit issued to a different
machine or a change in the game's hardware or software after the date of the permit issuance, the City
shall have the authority to seal or seize all amusement redemption machines in the game room for
retesting at the owner's expense and/or to revoke the owner's license to operate a game room.
Nuisance Declared.
Because such businesses in the City are a potential for being an attractive nuisance to minors and because
of the questioned legality of such activities, the City Council hereby finds such businesses constitute a
nuisance to the health, safety and welfare of the City of Stephenville. Accordingly, subsequent to the
passage of this ordinance, no license will be issued for any such establishment within a 500 feet radius of
a church, residence,school,daycare, hospital or another business entity subject to licensing or permitting
under this ordinance. Any businesses existing as of the time of the passage of this ordinance shall be
permitted to continue, however, if they should cease operations, or violate any of the provisions of this
ordinance or any other applicable City, state or federal law, their license shall be subject to revocation
and such may not be renewed unless they meet all provisions of any applicable law including the above
spacing requirements. Existing businesses are subject to all other requirements herein including, but not
limited to, licensing and permitting which shall be required within sixty (60) days of passage of this
ordinance.
118.08 Offense; Penalty.
Any person who shall violate any of the provisions of this chapter or fails to comply therewith shall be
deemed guilty of a Class C misdemeanor and, upon conviction, shall be fined not to exceed the maximum
amount allowable by law. This offense is hereby declared to be a strict liability offense and the culpable
mental state required by Chapter 6.02 of the Texas Penal Code is hereby specifically negated and clearly
dispensed with. Each day that the violation occurs shall constitute a distinct and separate offense.
All ordinances or parts of ordinance inconsistent or in conflict herewith are, to the extent of such
^— inconsistency or conflict, hereby repealed.
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Regulation of Recreation and Amusement Machines
In the event any clause, phrase, provision, sentence, or part of this Ordinance or the application of the
same to any person or circumstances shall for any reason be adjudged invalid or held unconstitutional by
a court of competent jurisdiction, it shall not affect, impair, or invalidate this Ordinance as a whole or any
part or provision hereof other than the part declared to be invalid or unconstitutional;and the City Council
of the City of Stephenville, declared that it would have passed each and every part of the same
notwithstanding the omission of any such part thus declared to be invalid or unconstitutional, whether
be one or more parts.
PASSED AND APPROVED this the 3rd day of April, 2018.
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_ z • - Jerr K. Idon, II, Mayor
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Staci''ng, City Secre l.�
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Reviewed by Allen L :.r
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City Administrator
Randy Thomas, City Attorney
Approved as to form and legality
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Regulation of Recreation and Amusement Machines