By: Jackson, Carona S.B. No. 309
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of amusement redemption
machines at certain locations; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2153, Occupations Code, is amended by
adding Subchapter K to read as follows:
SUBCHAPTER K. LOCATION LICENSE FOR OPERATION OF AMUSEMENT
REDEMPTION MACHINES
Sec. 2153.501. APPLICABILITY. Unless otherwise provided,
the provisions of this chapter governing licenses and registration
certificates, including penalties and enforcement provisions,
apply to a location license issued under this subchapter.
Sec. 2153.502. DEFINITIONS. For purposes of this
subchapter:
(1) "Amusement redemption machine" means a
contrivance described by Section 47.01(4)(B), Penal Code.
(2) "Operate" includes displaying, exhibiting, or
placing in service.
(3) "Operator" means a person who owns or, if the
premises are rented or leased, the person who rents or leases the
premises on which more than 10 amusement redemption machines are
operated.
(4) "Premises" means the area under a common roof or
over a common foundation.
Sec. 2153.503. LOCATION LICENSE. (a) No more than 10
amusement redemption machines may be operated on a particular
premises unless the operator holds a location license issued under
this subchapter for the premises.
(b) Notwithstanding Section 2153.008, an operator must hold
a location license in addition to any other license or registration
certificate the operator is required to hold under this chapter.
(c) An applicant for a location license must file with the
comptroller an application that includes:
(1) the name and address of the applicant;
(2) the physical address, including the county, of the
premises at which the amusement redemption machines will be
operated;
(3) the name and address of the owner of the premises
at which the amusement redemption machines will be operated;
(4) the name and address of the person who rents or
leases the premises to the applicant, if applicable;
(5) the amount of rent paid or other consideration
given, directly or indirectly, to the owner, lessor, or landlord of
the premises, if applicable;
(6) the number of amusement redemption machines to be
operated on the premises;
(7) a statement indicating whether the amusement
redemption machines to be operated on the premises will be owned,
leased, or rented by the applicant;
(8) if the amusement redemption machines will be
leased or rented, the name, address, and general business license
number of the person who owns the amusement redemption machines;
(9) a written certification that the amusement
redemption machines to be operated on the premises will be operated
in accordance with Section 47.01(4)(B), Penal Code;
(10) a financial interest statement that includes the
name and residence address of any person, other than a person
disclosed under Subdivision (8), who has a financial interest in
the operation of the machines on the premises, including the
nature, type, and extent of the financial interest; and
(11) a statement that the information contained in the
application is true and correct.
(d) A person who submits an application for a location
license consents to an inspection of the licensed premises by the
comptroller or a peace officer at any time during the location's
hours of operation to ensure compliance with this subchapter.
(e) The comptroller may not issue a location license to an
applicant unless the applicant certifies in writing that the
amusement redemption machines to be operated on the premises will
be operated in accordance with Section 47.01(4)(B), Penal Code.
The issuance of a location license by the comptroller does not
constitute an official opinion or judgment by the comptroller that
an amusement redemption machine operated on the premises of a
location license holder is being operated in accordance with
Section 47.01(4)(B), Penal Code.
Sec. 2153.504. FEES. (a) The annual license fee for each
location license is $500.
(b) An application for a location license must be
accompanied by a nonrefundable application fee in the form of a
cashier's check, money order, personal check, or other method of
payment authorized by the comptroller in an amount equal to the
annual location license fee.
Sec. 2153.505. REQUIRED LOCATION FOR LICENSE HOLDER
RECORDS. (a) A location license holder shall, at all times,
prominently display the holder's license at the licensed premises.
(b) A location license holder shall maintain, on the
licensed premises, a record of each amusement redemption machine
located on the premises to which the location license applies,
including:
(1) the make, type, and serial number of the machine;
(2) the date the machine was placed in operation on the
premises to which the location license applies;
(3) the date of the most recent registration of the
machine; and
(4) if the machine is owned by the license holder, any
change in ownership of the machine.
(c) The location license holder must allow the comptroller
or a peace officer to enter and inspect the licensed premises at any
time during hours of operation to ensure compliance with this
subchapter.
Sec. 2153.506. MANDATORY DENIAL OR REVOCATION OF LOCATION
LICENSE. (a) The comptroller may not issue a location license if
the comptroller finds that the license applicant or any person
required to be listed on the financial interest statement under
Section 2153.503(c)(10):
(1) is prohibited from holding a general business
license under Section 2153.302; or
(2) has been convicted of an offense under Section
47.06, Penal Code.
(b) The comptroller may not issue or renew a location
license if the applicant fails to comply with Section 2153.505.
(c) The comptroller shall revoke the location license of a
license holder who refuses to allow the comptroller or a peace
officer to enter or inspect the licensed premises as required by
this subchapter. The comptroller may not issue a location license
to a person who has had a location license revoked under this
subsection.
Sec. 2153.507. INFORMATION FROM LOCATION LICENSE
APPLICATION. (a) Notwithstanding Section 2153.101 and following
the issuance of a location license under this subchapter, the
following information in the location license application is a
public record and must be posted on the comptroller's Internet
website not later than the 10th business day after the date the
location license is issued:
(1) the location license number;
(2) the name of the location license holder;
(3) the physical address, including the county, of the
premises designated in the location license;
(4) the names of any person included in the financial
interest statement required under Section 2153.503(c)(10); and
(5) the number of amusement redemption machines
operated on the licensed premises.
(b) The comptroller shall provide a method to allow a
visitor to the comptroller's Internet website to retrieve by county
or municipality the license information posted under Subsection
(a).
Sec. 2153.508. CIVIL PENALTY. (a) A person commits a
violation if the person:
(1) knowingly operates or allows the operation of more
than 10 amusement redemption machines on premises for which a
location license is not in effect; or
(2) fails to display a location license or maintain
the records as required by Section 2153.505.
(b) The comptroller may assess a civil penalty against a
person who violates this subchapter. The amount of the penalty for
each unregistered amusement redemption machine in excess of 10
unregistered machines in violation of this subchapter is as
follows:
(1) for a first violation, $500 for each unregistered
machine; and
(2) for a second or subsequent violation, $1,000 for
each unregistered machine.
(c) It is presumed that an operator intended to commit a
violation under this section if:
(1) more than 10 amusement redemption machines are
operated on premises for which a location license is not
prominently displayed;
(2) an amusement redemption machine operated on the
premises is not included in the records maintained under Section
2153.505(b); or
(3) the records required under Section 2153.505(b) are
not available for inspection by the comptroller or a peace officer
during the hours of operation of the premises.
SECTION 2. Section 2153.153, Occupations Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) In addition to the information prescribed by
Subsection (a), an application for a general business, import, or
repair license must include a statement indicating whether a
machine associated with the application is an amusement redemption
machine.
SECTION 3. Section 47.01, Penal Code, is amended by adding
Subdivision (4-a) to read as follows:
(4-a) "Device" or "contrivance" means all or part of
an electronic, electromechanical, or mechanical contrivance,
machine, or apparatus.
SECTION 4. This Act takes effect September 1, 2009.