HomeMy WebLinkAboutPO 7412: CODE OF ORDINANCES AMENDING CHAPTER 22. BUSINESSES, ARTICLEXI. GAME ROOM •
P.O.7412
RPC 04/22/2026
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS, CODE OF ORDINANCES
AMENDING CHAPTER 22. BUSINESSES, ARTICLE XI. GAME ROOMS AND GAMING
MACHINES, SECTIONS 22-601 THROUGH 22-650 IN ITS ENTIRETY BY PROHIBITING
AMUSEMENT REDEMPTION MACHINES AND GAME ROOMS WITHIN THE CITY LIMITS
OF THE CITY OF PORT ARTHUR,TEXAS;PROVIDING A PENALTY CLAUSE;PROVIDING
A SAVINGS AND SEVERABILITY CLAUSE; AND PROVIDING FOR PUBLICATION AND
AN EFFECTIVE DATE.
WHEREAS,the City of Port Arthur,Texas(City)is a home-rule municipality acting under its charter adopted
by the electorate pursuant to Article XI,Section 5 of the Texas Constitution and Chapter 9 of the Texas Local
Government Code;and
WHEREAS,the City Council previously adopted Ordinance No. 17-15 providing for the regulation of game
rooms and gaming machines in the City of Port Arthur,Texas;and
WHEREAS,in City of Fort Worth v.Rylie,563 S.W.3d 346,352(Tex.App.2018),rev'd 602 S.W.3d 459(Tex.
2020),the Second Court of Appeals concluded that electronic gaming machines, amusement redemption
machines that include games that are more commonly referred to as "eight-liners"were unconstitutional
because they are illegal lotteries as they require consideration for a chance to win a prize, and that city
ordinances regulating such machines were not preempted by the Texas Occupations Code;and
WHEREAS,the Texas Supreme Court declined to hear an appeal of the case cited above;and
WHEREAS,game rooms that operate amusement redemption machines, such as but not limited to eight
liners, can have a deleterious effect on both the existing business around them and the surrounding
residential areas adjacent to them, causing increased crime, such as gambling, theft, criminal trespass,
criminal mischief, and burglary;and
WHEREAS, game rooms that operate amusement redemption machines have objectionable operational
characteristics contributing to urban blight and downgrading the quality of life in the adjacent area;and
WHEREAS, the City Council desires to minimize these adverse effects and thereby protect the health,
safety, and welfare of the citizenry; protect citizens from increased crime; preserve the quality of life;
preserve property values and character surrounding neighborhoods and deter the spread of urban blight;
and
WHEREAS, the City Council believes that amusement redemption machines including but not limited to
eight-liner machines and game rooms are detrimental to the health, safety, and welfare of the citizens of
Port Arthur.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS:
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SECTION 1. That the facts and opinions in the preamble are true and correct and are hereby
incorporated for all purposes.
SECTION 2. The governing body of the City hereby amends Chapter 22. Businesses, Article XI. Game
Rooms and Gaming Machines,Sections 22-601 through 2-650 in its entirety as shown in attached Exhibit A
and hereby adopts and replaces it with new language as Chapter 22. Businesses,Article XI. Gaming Sites
and Gaming Machines, Section 22-601 through 22-603,which is hereby incorporated for all purposes into
the City of Port Arthur,Texas,Code of Ordinances as attached in Exhibit B.
SECTION 3. Savings Clause.This Ordinance shall be cumulative of all other ordinances of the City and
shall not repeal any of the provisions of those ordinances except in those instances where the provisions of
those ordinances are in direct conflict with the provisions of this Ordinance. Provided, however, that the
repeal of such ordinances or part of such ordinances, and the amendments and changes made by this
Ordinance,shall not affect any right, property, or claim which was or is vested in the City, or any act done,
or right accruing or accrued,or established,or any suit,action or proceeding had or commenced before the
time when this Ordinance shall take effect; nor shall said repeals, amendments or changes affect any
offense committed,or any penalty or forfeiture incurred,or any suit or prosecution pending at the time when
this Ordinance shall take effect under any of the ordinances or sections thereof or repealed, amended or
changed; and to that extent and for that purpose the provisions of each ordinances or parts of such
ordinances shall be deemed to remain and continue in full force and effect.
SECTION 4. Severability Clause. That should any part, sentence, or phrase of this Ordinance is
determined to be unlawful,void, or unenforceable, the validity of the remaining portions of this Ordinance
shall not be adversely affected. No portion of this Ordinance shall fail or become inoperative by reason of
the invalidity of any other part. All provisions of this Ordinance are declared to be severable.
SECTION 5. Effective Date. This Ordinance shall be published at least once within ten days after its
final passage in the official newspaper of the City and shall become effective immediately upon date of
publication.
Read,Adopted and Approved,this the 5th day of May 2026 AD, at a Regular Meeting of the City Council of
the City of Port Arthur,Texas by the following vote:AYES:
Mayor:
Councilmembers:
NOES:
Charlotte M. Moses, Mayor
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ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO LEGAL FORM: APPROVED AS TO ADMINISTRATI! :
OlOr
Roxann Pais Cotroneo,City Attorney Ronald Bu on,C'Ve, City Manager
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Exhibit A
CI IAPTER 22. BUSINESSES
ARTICLE
v, GAME ROOMS AND GAMING MACI IINCS
DIVISION 1. IN GENERAL
Sec.22-G01. Definitions.
the amount charged to--pi ,er$5.
number.
{5) Signs a tease for a game room;
{G) Opens an account for utilities for a game room,
{8) Pays for advertising for a game room;or
{0) Signs an alarm permit for a game room.
Tex.Admin.Code§372.1701.
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•
•
•
•
•
{2) Displays,delivers,
its-see-of tri-e-bui-tdint
•
other than for dispensing only merchandise,music,or service.This includes.
machine or device that dispenses merchandise or commodities or plays music its eennee
Sec.22 GB•'L-Bc
citizens.
Sec.22-G03.Severability.
,
,
paragraphs,or sections of this article.
Secs.22-G04-22-G10. Reserved.
DIVISION 2. REQUIREMENTS
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•
{b) It shall be unlawful for any operator, permit holder or owner of the gaming site to operate any gaming
site.
be required and is not considered to be a renewal.
in the city.
or his designee and shall contain such information as he shall require.Any failure to provide the information
required by this section or a determination is made that inaccurate, erroneous or incomplete information
r ust tom-ply-with aR building et-des-anti rafting regulations of the city, at
the time of the submission of the application for a permit.
(2) Each application shall also be accompanied by.
a. A copy of a certificate of occupancy issued by the building official as appropriate for the proposed
game room,
b. In the case of a game room to be operated under an assumed name, a true and correct copy of the
evidences its filing in that office; and
Secretary of State corporate filing documents, bearing the file mark or stamp that evidence filing with the
Texas Secretary of State.
d. Non-refundable fees)as listed in tilt-fee-stheifferle-erf-ssetiern-2-2--6-27
denial.
{g) Each application received under this section will be investigated to determine whether-the--permit
holder applicant,owner and operators of a game room have been convicted of any of the following offenses.
keeping a gambling place, communicating gambling information,
V.T.C.A, Penal Code ch.47,
,
offense to the laws of another state or of the United States that,if committed in this state,would haven
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{5) A criminal offense as described in V.T.C.A,Local Government Code ch.3G2, subch. B; and
.
denial,revocation,or suspension of a game room licence:
Sec. 22-G12.Signage.
Arial font lettering.
Sec.22-G13.Transparent, uncovered windows required.
operator of a gaming site shall not permit any obstruction of such public view by the use of drawn shades,
listed in section 22-G35.
{1) The site holds a valid,current on-premise license under V.T.C.A,Alcoholic Beverage Code tit.3,subt.
;
door.
Sec.22-G14. Machine registration requirements.
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along with serial numbers or equivalent identification, as set forth in subsections (4) and (5) below at alt
d
Registration decals are not transferable.The failure of any machine to display a current registration decal
played on the machine.The registration decal shall contain the inventory number of the machine.
itropetatiqn-at-a-garrrifit site:
Sec. 22-G15.Site plan required.
modifications to the site have been made or gaming machines have been added.The drawing or site plan
must-i-n-eitttfe-the-foliqwitt-el-eta-Rat
{1) Overall view of the property;
{2) Parkingspoteb-fettl r,
{3) Floor plan of building3;
{5) Windows and doors,
{G) Dimensions of building,windows,and doors.
Sec.22-G1 G. Prohibited locations.
buildings, 7-100, schedule of uses.
existing planned school, rcgutar place of religious worship, hespitat;-er
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"Planned" means that steps have becn taken toward the facility's or structure's-development including but
not limited to a permit received,a plat approved,design work started,a bond received,or an oree oved
above.
permit is allowed to lapse,then the game room will be considered a new game room and not exempt from
Gec. 22-G17.Operating hours of gaming machines.
a.m. Each hour and/or portion of an hour that a gaming machine is accessible and operational during
(d) The owner,permit holder and operator(s)of a game room that operate a game room in violation of this
sec.22-G18.Certificate of occupancy—Annual requirement.
occupancy issued for that site is posted at or near the principal public entrance to the gaming site in such a
(b) A certificate of occupancy issued by the city must be renewed annually and must accompany the
occupancy.
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room,
{4) In the caae of corporate ownership, a copy of the certificate of incorporation;
applicant:
a Who is named in public filings with the Texas Secretary of State and/or county clerk as either an officer
1. I am applying for a Pcrmit on behalf of the Permit-tee and I have actual knowledge -of of
will do so under my direction and control, and I further acknowledge that I may be held criminally liable for
illegal activity associated with the Game Room under this permit, including gambling,gambling promotion,
1m
a. Who is.
1. The property owner;or
2. If the property owner is a business organization, a natural
the rermittee and I have actual knowledge of the-operation of
a Game Room under this p rson operating a Game Room under this permit
will do so under my direction and control, and I further acknowledge that I may be held criminally liable for
illegal activity associated with the Game Room under this permit, including gambling,gambling promotion,
or keeping a gambling place under Chapter 47 of the P rating an unauthorized Came Room
under Chapter 22 of the City Code; and other applicable penal statutes.
{0) A site plan as set forth in section 22-G1,,
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22-G27,
suspension pending revocation and the applicant may be prosecuted as a violation of V.T.C.A., Penal Code
§37.10, (tampering with governmental records), a third degree felony.
e room memberships.
(a) It shall be the duty of the owner, permit holder and operator to ensure compliance with this
subsection.
(L)—Gen re rutin n(ten pre'iibited for any purpose.
try to a game room and/or prohibit the participation in any activity
inside a game room by a patron through the requirement of a game room membership.
issue membership cards to an .
issued is considered a separate violation. Each individual subjected to any check-in procedure prior to
cntering or before exiting a game room is considered a separate violation. Each day a violation occurs or
continues to occur is considered a separate violation.
(g) Any violation of this subsection is grounds for denial, revocation, or suspension of a game room
permit.
DIVISION 3. PENALTIES, FEES AND OTI ICR PROVISIONS
(1) A false statement as to a material matter made in an application for a permit,
offenses listed in subsection 22-G11(h).
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{b) initial application or renewal of a permit will be denied or an existing permit will be revoked if it is
,
ernder this provision shall be denied to an owner or
occupant who has been found in violation of this article for a period of two years.
Code may request a hearing before a hearing panel designated by the city manager in accordance with the
following procedures.
or citation.The applicant waives the right to hearing if the request is not timely received by the city manager.
(2} The issue before the hearing panel shall be whether or not the proposcd or existing game room
complies with the requirements of this article.
game room license if changes are made to bring the proposed game room into compliance with this article.
A new application will be required in this instance.
(4} If the hearing panel determines a game room has committed a violation within the effective permit
period,the game room license will be revoked.
Sec.22-G22.Transfer of permit.
A permit issued under the provisions of this article shall be specific to the site and personal to the holder
thereof-a-ri-d-sital-Fhtt-be-traftsfe-r-a-b-le-e-r-ass-ign-abie:
Sec. 22-G23. Replacement permits or decals.
{a) A replacement permit shall be issued to the original applicant for one lost, destroyed, or mutilated
after a written application is submitted with the fee listed in the fee schedule in section 22-G27 on a form
provided by the city for such purpose.
Sec.22-G24. Occupation tax.
Every permit holder
hereby levied on each such gaming machine,except those exempt under this article, an annual occupation
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tax in the amount equal to one-fourth of the current state occupation tax.All occupation taxes for gaming
machines are payable annually in advance.The fee for issuing a replacement occupation tax receipt for one
a-rcgula-tarry-cnferecrcnt license by paying to the city an annual inspection and regulatory enforcement
license fee as listed in the fee schedule in section 22-G27 for each amusement redemption gaming
amusementaii e rooms, and to determine whether thc-previsions of this article arc
et-hip-tied with.The annual term for all gaming machines within a gaming site shall have an expiration date
Sec.22-G2G. ID badges—Owners and operators.
All owners,permit holders and operators of an amusement machine game room shall be required to securc
Itl an ID badge issued from the city annually following the completion of the required background checks as
described in subsection 22-G11(g). ID badge fees are listed in section 22-G27, fee schedule. Owner and
22-G35.
Sec.22-G27.Fee schedule.
Description Reference rcc
Application fee Sec. 22-G11 $1,000.00
Renewal fee Sec.22-G10 $1,000.00
Occupation tax per machine Sec.22 G10(h)
Sec. 22-G24 $1 5.00
Replacement decals Sec. 22-G23 $1 5.00
Regulatory enforcement license fee per machine Sec.22-G25 $400.00
Initial ID badge fee Sec.22-G2G $50.00
Replacement for lost ID badge fee Sec. 22-G2G $25.00
DIVISION 4. ENFORCEMENT
Sec. 22-620.Violations of existing laws not authorized.
,
device, table, or gaming machine, the keeping, exhibition, operation, display, or maintenance of which
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State of Texas.
Sec.22-G20 Inspections, compliance.
enforcement officer with immediatc-arrrestred-aeeess during business hours to all areas of a game room
and to all amusement redemption machines.
{b) The gaming site shall conform to all zoning ordinances, building codes and fire prevention codes of
gaming site where such machines are located to officials for the purpose of inspection or enforcement
commits an offense.See penalty fees,section 22-G35.
knowledge or effort during business hours or any other hours of operation.
Sec.22-G30. Responsibility of permit holder.
A permit holder hereunder strati rret permit arty-ofwithin the permitted gaming site
{1) The sale,purchase, possession,or consumption of any alcoholic beverages as the same is permitted
and the ordinances of the city for the sale,purchase,possession,or consumption of alcoholic beverages.
{2) The operation of any gaming machine by a person younger than 17 years of age.
Sec.22-G31. Sealing machine for nonpayment.
seal, in a manner that will prevent further operation, a
e decal is not properly displayed.
sealed and any outstanding enforc herein, for nonpayment of the tax,
{b) Any owner desiring to contest the tax, cnforcemcnt fcc, or pcnalty owed to the city to secure the
release of a scaled machine rearh gas-de.-GI rilJed-i,rset tiv,I: ^ Tr
Sec.22-G32. Penalty for removal of sealed machine.
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Sec.22-G33.Injunctions.
(a) In addition to the fines and penalties provided in this article, if it appears that a person has violated or
in a court of competent jurisdiction for injunctive-retie€-to restrain the person from continuing the violation
Sec.22-G34.Strict enforcement;exemptions.
sill-^cc that this article receives strict interpretation and adjudication in a court of competent jurisdiction.
{b) A person in possession or controlmpt from this article if.
{2) The gaming machine has been altered in such a way that it no longer functions as a coin-operated
machine and is not patronized for the purpose of winning cash or cash value prizes;or
{3) The gaming machine-is-owr --by,leased, or rcriteef--to-ergai otiens- crated--cxefusivciy for
charitable,educational,religious, or benevolent purposes.An organization with social or fraternal activities
{4) The gaming machines designed for and utilized exclusively by children are expressly exempt from the
administrative penalties which may be imposed regarding the suspension,revocation or denial of any permit
Secs.22-G3G-22-G30.Reserved.
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Exhibit B
ARTICLE Xl. GAMING SITES AND GAMING MACHINES
Sec.22-601. Definitions
For the purposes of this article.the following definitions shall apply unless the context clearly indicates or
requires a different meaning:
Accessory gaming. A building. facility, or other place that contains five or less amusement redemption
machines and is considered accessory to a business with an existing certificate of occupancy on record
with the city. Accessory gaming shall be in strict compliance with the regulations of this Article unless
otherwise specified.
Amu`PmP -.Pm tion machines. Any electronic, electromechanical, or mechanical contrivance
designed. made and adopted for bona fide amusement purposes that by operation of chance or a
combination of chance and skill 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$5.00.whichever is less.
Game room.A building.facility,or other place that contains amusement redemption machines.
Gaming machine. See amusement redemption machine.
Sec.22-602. Gaming Prohibited.
Amusement redemption machines, accessory gaming. gaming machines, and game rooms are hereby
prohibited from being operated within the city limits of the city.
Sec.22-603. Penalties.
(a) Except other provided by this section. if it be shown that a person has violated this article, upon
conviction,the defendant shall be punished by a fine of not less than$200.00
(b) Upon second conviction for a violation of this article.the defendant shall be punishable by a fine of
not less than$500.00
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