84R5989 GCB-F
By: Kuempel H.B. No. 1830
A BILL TO BE ENTITLED
AN ACT
relating to the regulation and permitting of amusement redemption
game rooms; authorizing fees; creating a civil penalty and criminal
offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 234.131, Local Government Code, as added
by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, Regular
Session, 2013, is amended by adding Subdivisions (1-a), (1-b),
(1-c), (5), (6), (7), and (8) to read as follows:
(1-a) "Applicant" means a person, owner, corporation,
partnership, or other business entity required to submit a game
room application.
(1-b) "Current fire inspection report" means a fire
inspection report issued by a fire department not earlier than the
60th day immediately preceding the date an application for issuance
or renewal of a game room is filed.
(1-c) "Gambling device" has the meaning assigned by
Section 47.01, Penal Code.
(5) "Peace officer" has the meaning assigned by
Article 2.12, Code of Criminal Procedure.
(6) "Public building" means a building used by
federal, state, or local government that is open to the general
public.
(7) "Regulation" means a regulation adopted by a
county in this state for the operation of a game room.
(8) "School" means a facility, including all attached
playgrounds, dormitories, stadiums, and other appurtenances that
are part of the facility, used for the primary purpose of
instruction or education, including primary or secondary schools,
colleges, and universities, both public and private.
SECTION 2. Section 234.134, Local Government Code, as added
by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, Regular
Session, 2013, is amended to read as follows:
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 own
or 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.
SECTION 3. Subchapter E, Chapter 234, Local Government
Code, as added by Chapter 1284 (H.B. 2123), Acts of the 83rd
Legislature, Regular Session, 2013, is amended by adding Sections
234.1341 and 234.1342 to read as follows:
Sec. 234.1341. PERMIT APPLICATION. (a) An owner or
operator of a game room may not operate, use, or maintain any game
room in a county that requires an owner or operator to obtain a
permit under Section 234.134 unless the owner or operator holds a
permit issued under this subchapter.
(b) An applicant shall file a completed application with the
county sheriff's office of the county in which the proposed game
room will be located. The application shall be filed on the form
provided by the office or on an accurate and legible copy of that
form. The applicant must apply in person at the office.
(c) The sheriff's office shall post a copy of the
application form and the permit fee amount on the county's Internet
website. The office shall establish the hours for submission of
applications under this section.
(d) The game room administrator of the sheriff's office
shall mail notice of receipt of a completed application or notice of
deficiencies in an application to the applicant not later than the
10th day after the date the application is received by the office.
(e) Each application must be accompanied by:
(1) an annual inspection report showing compliance
with any correction ordered by the sheriff's office or a fire safety
official;
(2) a copy of the certification of occupancy or
certification of compliance issued by the building official as
appropriate for the proposed game room;
(3) a diagram or floor plan that is prepared by a
licensed architect or engineer, includes designed occupancy load,
and is reviewed by the county clerk;
(4) for a game room operating under an assumed name, a
copy of the assumed name certificate filed in the county clerk's
office that includes the file mark or stamp evidencing its filing;
(5) a nonrefundable application fee in the amount
established by the county commissioners court; and
(6) a copy of the applicant's government-issued photo
identification.
(f) An applicant's failure to provide the information or
documents or pay the fee required by this section or a determination
by the sheriff's office that inaccurate, erroneous, or incomplete
information has been submitted is grounds for denial or revocation
of the application.
Sec. 234.1342. PERMIT RENEWAL. (a) A permit holder may
annually renew the permit not earlier than 60 days before the date a
permit expires by filing a completed application for the permit
with the game room permit administrator of the sheriff's office and
paying the applicable fee. A renewal application is subject to the
same requirements as a permit application.
(b) If the sheriff's office denies a game room permit, the
office shall give the applicant written notice of the basis for
denial.
SECTION 4. Section 234.135, Local Government Code, as added
by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, Regular
Session, 2013, is amended to read as follows:
Sec. 234.135. FEES; ISSUANCE OF PERMIT; PREMISES
REQUIREMENTS. (a) 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.
(b) An applicant shall pay the permit fees imposed under
this section to the sheriff's office. On completion of the
application process, the game room administrator of the sheriff's
office shall give the applicant a signed receipt. The receipt
constitutes a permit to operate the game room until the first
anniversary of the date the permit is issued.
(c) A person who holds a permit issued under this section
must meet and comply with all requirements of law applicable to the
game room premises or any activity conducted on the game room
premises. The issuance of a permit under this section does not
excuse the permit holder, the permit holder's agents or employees,
or any patrons of the game room for a violation of this subchapter
or other law.
SECTION 5. Section 234.136, Local Government Code, as added
by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, Regular
Session, 2013, is amended to read as follows:
Sec. 234.136. INSPECTION BY LAW ENFORCEMENT OFFICER.
(a) A peace officer or county employee may inspect a business in
the county to determine the number of amusement redemption machines
subject to regulation under this subchapter that are located on the
premises of the business. A peace officer is authorized to inspect
any business for a violation of this subchapter. This section does
not authorize a right of entry otherwise prohibited by law. A peace
officer may enter a business under this section with consent, with a
warrant, or under exigent circumstances. A game room permit granted
under this subchapter gives peace officers implied consent under
this section to enter the premises of the game room.
(a-1) A business for which a game room permit has not been
issued under this subchapter that holds itself out as a game room,
by sign, advertisement, word-of-mouth, offering of memberships, or
any other means, is subject to inspection by a peace officer.
Refusal to allow a peace officer entry to inspect the premises of
the game room may be considered in establishing probable cause for
the issuance of a search warrant to inspect for violations of this
subchapter.
(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 or to
inspect records required under Section 234.1362.
(c) A person violates this subchapter if the person fails to
allow a peace officer or county employee to conduct an inspection of
a game room, an amusement redemption machine, or records required
under Section 234.1362 or this section.
SECTION 6. Subchapter E, Chapter 234, Local Government
Code, as added by Chapter 1284 (H.B. 2123), Acts of the 83rd
Legislature, Regular Session, 2013, is amended by adding Sections
234.1361, 234.1362, 234.1363, 234.1364, 234.1365, 234.1366, and
234.1367 to read as follows:
Sec. 234.1361. DISPLAY OF GAME ROOM PERMITS. An owner or
operator of a game room shall display a current game room permit on
the game room premises. The permit must be displayed in plain sight
in a common area accessible to the public without entrance to a
controlled area of the business.
Sec. 234.1362. RECORDS REQUIRED. (a) An owner or operator
of a game room shall maintain on the premises:
(1) a record for each employee that includes:
(A) the employee's name, address, date of birth,
state identification number or social security number, job
function, and W-2 or W-4 form;
(B) a copy of the employee's application to work
with the game room and a copy of the employee's I-9 filed for
employment eligibility verification with the Department of
Homeland Security; and
(C) a photograph of the employee;
(2) a daily register that includes the name, date of
birth, state identification number or social security number, and
job function of each employee present at the establishment that
day; and
(3) a copy of the county and state tax record forms for
each amusement redemption machine on the premises that includes the
name of the manufacturer, the serial number, the type of machine,
and the serial number of the tax permit for a coin-operated machine
and, if applicable, the serial number for the county tax permit,
with the year of expiration for any tax permit.
(b) An owner or operator who violates Subsection (a) shall
be assessed a civil penalty of not more than $10,000 for each record
required under this section that is missing.
(c) The game room shall preserve the daily register required
by Subsection (a)(2) for at least 90 days after the date the
register was made. An owner or operator who violates this
subsection may be assessed an administrative penalty in the amount
of $500 for each register required to be preserved that is missing.
Sec. 234.1363. PROHIBITED EMPLOYMENT. (a) An owner or
operator of a game room may not knowingly employ any person who has
been previously convicted of, or entered a plea of nolo contendere
or guilty or received deferred adjudication for, an offense
involving any conduct involving gambling violations prohibited
under Chapter 47, Penal Code.
(b) An owner or operator of a game room shall conduct a
criminal background check on each potential employee.
(c) Failure to comply with this section is a violation and
punishable by a civil penalty assessed against an owner or operator
not to exceed $10,000 per prohibited employee working at the game
room and per employee working at the game room without being
subjected to a criminal background check.
(d) Each day a violation of this section continues or occurs
constitutes a separate violation for purposes of imposing a penalty
under Section 234.137.
Sec. 234.1364. AMUSEMENT REDEMPTION MACHINES; PERMITS AND
VIOLATIONS. (a) An owner or operator of a game room shall obtain
from the county a permit for each amusement redemption machine on
the game room premises in accordance with Chapter 2153, Occupations
Code.
(b) The owner or operator of a game room shall pay an annual
fee in an amount equal to 25 percent of the state's annual fee per
machine.
(c) Each amusement redemption machine permit application
shall specify on the application the physical location of the
amusement redemption machine.
(d) If a permit is not obtained for an amusement redemption
machine, the county tax assessor-collector's office shall lock the
machine, and it may not be used until the owner purchases a permit
for the machine by paying a $100 permit fee and a $5 release fee per
machine.
(e) If a county compliance officer is not allowed entrance
to a game room during business hours, a civil penalty not to exceed
$10,000 for each date of denial will be assessed on the owner or
operator of the game room.
(f) A county may assess a civil penalty under Section
234.137 on the owner or operator of a game room for each machine:
(1) that is not registered with a valid current year
video tax stamp decal prominently displayed on the machine; and
(2) used for illegal gambling.
(g) If a law enforcement agency determines through
investigation that a game room is operating in violation of Chapter
47, Penal Code, every amusement redemption machine or gambling
device in the game room is considered in violation. A civil penalty
not to exceed $10,000 per machine or device may be assessed on the
owner or operator of the game room.
(h) It is not a defense to prosecution under this section
that the owner is not doing business in the owner's name, is not
leasing property in the owner's name, or only has an ownership
interest in the business.
Sec. 234.1365. GROUNDS FOR DENIAL, REVOCATION, OR
SUSPENSION OF PERMIT. (a) Any violation of this subchapter or
regulations adopted under this subchapter or failure to meet all
requirements of this subchapter and regulations adopted under this
subchapter is grounds for denial, revocation, or suspension of a
permit to operate a game room. If a game room's permit has been
revoked, denied, or suspended, the game room may not be operated
during the pendency of any appeal from the revocation, denial, or
suspension.
(b) The sheriff shall deny a game room permit on a finding by
the sheriff that the applicant:
(1) has been previously convicted of any of the
following offenses:
(A) gambling, gambling promotion, keeping a
gambling place, communicating gambling information, possession of
gambling devices or equipment, or possession of gambling
paraphernalia under Chapter 47, Penal Code;
(B) forgery, credit card abuse, or commercial
bribery under Chapter 32, Penal Code;
(C) any criminal offense under Chapter 34, Penal
Code;
(D) criminal attempt, conspiracy, or
solicitation to commit any of the offenses listed in Paragraphs
(A)-(C) or any other offense under the laws of another state or of
the United States that, if committed in this state, would have been
punishable as one or more of the offenses; or
(E) a criminal offense under Subchapter B,
Chapter 352, if:
(i) less than two years have elapsed since
the later of the date of conviction or the date of release from
confinement imposed for the conviction of a misdemeanor offense; or
(ii) less than five years have elapsed
since the later of the date of conviction or the date of release
from confinement for the conviction of a felony offense;
(2) makes a misleading statement in the application
for the game room permit;
(3) is younger than 18 years of age;
(4) has had a game room permit revoked within the
180-day period immediately preceding the date the application was
filed;
(5) is delinquent in the payment to the county of
taxes, fees, fines, or penalties assessed or imposed regarding the
operation of a game room;
(6) failed to pay the application or renewal fee
required by this subchapter; or
(7) has not had the required fire and life safety
inspection by a fire safety official within 60 days immediately
preceding the date the application was filed.
(c) The sheriff may initiate a proceeding to revoke or
suspend a game room permit if:
(1) any person commits on the premises of the game room
an offense listed in Subsection (b)(1);
(2) the applicant provides false, fraudulent, or
untruthful information on the original or renewal application;
(3) the game room permit should not have been issued
under the requirements of this subchapter or regulations adopted
under this subchapter;
(4) the owner or operator of the game room fails to
comply with corrections ordered by a fire safety official with
authority to conduct fire and life safety inspections in the county
in which the game room is located; or
(5) the owner is convicted of an offense listed in
Subsection (b)(1).
(d) The sheriff may not issue a game room permit or
temporary game room permit until final disposition of any case
involving an offense listed in Subsection (b)(1) that is pending or
arises during the application process.
Sec. 234.1366. REVOCATION OR SUSPENSION OF PERMIT. (a) If
an event providing a basis for revocation or suspension of a game
room permit under Section 234.1365 occurs, the sheriff shall send
to the game room permit holder or the holder's designated agent a
written notice of revocation or suspension. The notice must set out
the reasons for the action. The revocation or suspension is final on
the fifth day after the date notice is issued.
(b) The game room permit holder or the holder's designated
agent may appear before a hearing examiner appointed by the
commissioners court of the county in which the game room is located
on written request submitted to the sheriff not less than the 10th
business day after the date the notice is delivered.
(c) The hearing examiner may not have participated in any
investigation of the alleged grounds for the revocation or
suspension. The hearing must be held not later than the 14th
business day after the date the request for hearing is submitted.
(d) The game room permit holder and the sheriff are entitled
to present evidence, cross-examine witnesses, and be represented by
legal counsel. The rules of evidence for a civil, nonjury trial
apply to the hearing.
(e) If the facts presented at the hearing support a finding
that grounds exist for revoking or suspending a game room permit,
the hearing examiner may request that the parties present relevant
evidence to show whether suspension or revocation of the game room
permit is more appropriate. Reasonable conditions may be attached
to a game room permit by the hearing examiner based on the evidence
presented at the hearing.
(f) If the hearing examiner determines that a game room
permit should be revoked, the hearing examiner shall issue a
written order revoking the game room permit that is effective
immediately.
(g) If the hearing examiner determines based on the nature
of the violations that a suspension instead of a revocation is
appropriate, operation of the game room permit may be suspended for
a period not to exceed six months. The hearing examiner shall issue
a written order suspending the game room permit and attaching any
applicable conditions that is effective on the date the owner
receives notice.
(h) On a finding that Section 234.1365(c)(3), (4), or (5)
has been violated, the hearing examiner shall revoke the game room
permit.
(i) Revocation takes effect immediately on notice by the
sheriff, subject to reinstatement following an appeal, if:
(1) immediate action is required to protect the public
from injury or imminent danger; or
(2) a game room permit was issued based on a
misrepresentation in the application, and the game room permit
would not have been issued otherwise.
Sec. 234.1367. HEARING. (a) An applicant may file a written
request for a hearing with the sheriff's office's game room permit
administrator not later than the 20th day after the date of the
denial, revocation, or suspension. The applicant waives the right
to a hearing if the request is not timely received by the
administrator.
(b) The applicant may reapply for a game room permit if the
applicant makes the changes necessary for the proposed game room to
be in compliance with this subchapter and regulations adopted under
this subchapter.
(c) The decision of the hearing examiner is final. The
losing party may appeal the decision by filing a petition in a
district court in the county not later than the 30th day after the
date of the decision. Judicial review is under the substantial
evidence rule, and the judgment of the district court may be
appealed, as in other civil cases.
SECTION 7. Section 234.132, Local Government Code, as added
by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, Regular
Session, 2013, is repealed.
SECTION 8. Subchapter E, Chapter 234, Local Government
Code, as added by Chapter 1377 (H.B. 1127), Acts of the 83rd
Legislature, Regular Session, 2013, is repealed.
SECTION 9. This Act takes effect September 1, 2015.