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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. Ordinance No.2018-0-15 Page 1 of 6 Regulation of Recreation and Amusement Machines 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. Ordinance No.2018-0-15 Page 2 of 6 Regulation of Recreation and Amusement Machines "" 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. Ordinance No.2018-0-15 Page 3 of 6 Regulation of Recreation and Amusement Machines 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, Ordinance No.2018-0-15 Page 4 of 6 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. Ordinance No.2018-0-15 Page 5 of 6 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. ,,��y OF S rep- ,, ,, kiliciarvir.., _ z • - Jerr K. Idon, II, Mayor ATTEST: C y� % s. I ifir ',:008. '',. pR P o•R•P�F, Staci''ng, City Secre l.� / '/ 49 ri Reviewed by Allen L :.r es, City Administrator Randy Thomas, City Attorney Approved as to form and legality Ordinance No.2018-0-15 Page 6 of 6 Regulation of Recreation and Amusement Machines