By: Patrick S.B. No. 433
(In the Senate - Filed February 7, 2013; February 13, 2013,
read first time and referred to Committee on Intergovernmental
Relations; April 15, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
April 15, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 433 By: Nichols
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of game rooms in certain counties;
providing penalties; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 234, Local Government Code, is amended
by adding Subchapter E to read as follows:
SUBCHAPTER E. GAME ROOMS
Sec. 234.131. DEFINITIONS. In this subchapter:
(1) "Amusement redemption machine" means any
electronic, electromechanical, or mechanical contrivance designed,
made, and adopted for bona fide amusement purposes that rewards the
player exclusively with noncash merchandise, prizes, toys, or
novelties, or a representation of value redeemable for those items,
that have a wholesale value available from a single play of the game
or device of not more than 10 times the amount charged to play the
game or device once or $5, whichever amount is less.
(2) "Game room" means a for-profit business located in
a building or place that contains six or more amusement redemption
machines.
(3) "Game room owner" means a person who:
(A) has an ownership interest in, or receives the
profits from, a game room or an amusement redemption machine
located in a game room;
(B) is a partner, director, or officer of a
business, company, or corporation that has an ownership interest in
a game room or in an amusement redemption machine located in a game
room;
(C) is a shareholder that holds more than 10
percent of the outstanding shares of a business, company, or
corporation that has an ownership interest in a game room or in an
amusement redemption machine located in a game room;
(D) has been issued by the county clerk an
assumed name certificate for a business that owns a game room or an
amusement redemption machine located in a game room;
(E) signs a lease for a game room;
(F) opens an account for utilities for a game
room;
(G) receives a certificate of occupancy or
certificate of compliance for a game room;
(H) pays for advertising for a game room; or
(I) signs an alarm permit for a game room.
(4) "Operator" means an individual who:
(A) operates a cash register, cash drawer, or
other depository on the premises of a game room or of a business
where the money earned or the records of credit card transactions or
other credit transactions generated in any manner by the operation
of a game room or activities conducted in a game room are kept;
(B) displays, delivers, or provides to, or takes
orders from, a customer of a game room for merchandise, goods,
entertainment, or other services offered on the premises of a game
room;
(C) acts as a door attendant to regulate entry of
customers or other persons into a game room; or
(D) supervises or manages other persons at a game
room in the performance of an activity listed in this subdivision.
Sec. 234.132. APPLICABILITY. This subchapter applies only
to a county:
(1) with a population of four million or more; or
(2) with a population of less than 25,000 that is
adjacent to the Gulf of Mexico and is within 50 miles of an
international border.
Sec. 234.133. AUTHORITY TO REGULATE. To promote the public
health, safety, and welfare, the commissioners court of a county
may regulate the operation of game rooms and may:
(1) restrict the location of game rooms to specified
areas of the county, including the unincorporated area of the
county;
(2) prohibit the location of a game room within the
distance prescribed by the commissioners court of a school, regular
place of religious worship, or residential neighborhood; or
(3) restrict the number of game rooms that may operate
in a specified area of the county.
Sec. 234.134. LICENSES OR PERMITS. (a) A county may
require that an owner or operator of a game room obtain a license or
permit or renew a license or permit on a periodic basis to operate a
game room in the county. An application for a license or permit
must be made in accordance with regulations adopted by the county.
(b) Regulations adopted under this section may provide for
the denial, suspension, or revocation of a license or permit.
(c) A district court has jurisdiction of a suit that arises
from the denial, suspension, or revocation of a license or other
permit by a county.
Sec. 234.135. FEES. A county may impose a fee not to exceed
$1,000 on an applicant for a license or permit or for the renewal of
the license or permit required under this subchapter. The fee must
be based on the cost of processing the application and
investigating the applicant.
Sec. 234.136. INSPECTION. (a) A peace officer or county
employee may inspect a business in the county to determine how many
amusement redemption machines that are subject to regulation under
this subchapter are located on the premises of the business.
(b) A peace officer or county employee may inspect any
business in which six or more amusement redemption machines are
located to determine whether the business is in compliance with
this subchapter or regulations adopted under this subchapter.
(c) A person violates this subchapter if six or more
amusement redemption machines are located on the premises of the
business and the person fails to allow a peace officer or county
employee to conduct an inspection under this section.
Sec. 234.137. INJUNCTION; CIVIL PENALTY. (a) A county may
sue in district court for an injunction to prohibit the violation or
threatened violation of this subchapter or a regulation adopted
under Section 234.133.
(b) A person who violates this subchapter or a regulation
adopted under Section 234.133 is liable to the county for a civil
penalty of not more than $10,000 for each violation. Each day a
violation continues is considered a separate violation for purposes
of assessing the civil penalty under this subsection. A county may
bring suit in district court to recover a civil penalty authorized
by this subsection.
(c) The county is entitled to recover reasonable expenses
incurred in obtaining injunctive relief, civil penalties, or both,
under this section, including reasonable attorney's fees, court
costs, and investigatory costs.
Sec. 234.138. CRIMINAL PENALTY. (a) A person commits an
offense if the person intentionally or knowingly operates a game
room in violation of a regulation adopted under Section 234.133.
(b) An offense under this section is a Class A misdemeanor.
Sec. 234.139. CUMULATIVE EFFECT. Authority under this
subchapter is cumulative of other authority that a county has to
regulate game rooms and does not limit that authority.
Sec. 234.140. EFFECT ON OTHER LAWS. (a) This subchapter
does not legalize any activity prohibited under the Penal Code or
other state law.
(b) A person's compliance with this subchapter, including
operating a game room under a license or permit issued under this
chapter, is not a defense to prosecution for an offense under
Chapter 47, Penal Code.
(c) A person who is subject to prosecution under Section
234.138 and any other law may be prosecuted under either or both
laws.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
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