Loading...
HomeMy WebLinkAboutPO 6355: CHAPTER 22, GAMING SITES, OPERATION OF AMUSEMENT GAMING MACHINES WITHIN CITY LIMITS P. 0. 6355 SNSh ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ARTHUR AMENDING "CHAPTER 22 — BUSINESSES" OF THE PORT ARTHUR CODE OF ORDINANCES BY ADDING "DIVISION XI -- GAMING SITES AND GAMING MACHINES" TO PROVIDE FOR REGULATION OF THE OPERATION OF AMUSEMENT GAMING MACHINES WITHIN CITY LIMITS WHEREAS,the City of Port Arthur is a home rule municipality having the authority to utilize its police power regulation of the health, safety, and general welfare of the public; and WHEREAS,the Port Arthur City Council desires to regulate gaming sites and gaming machines in order to prevent illegal operation of amusement gaming machines— more commonly known as "eight liners"—in the interest of protecting the health, safety, and welfare of the citizens of Port Arthur; and WHEREAS, Section 47.01(4)(B) of the Texas Penal Code provides that a gaming machine is legal if it is used"for bona fide amusement purposes"that"rewards the player exclusively with noncash merchandise prizes, toys, 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 is less"; and WHEREAS,the laws of the State of Texas, including those found in Chapter 51 of the Texas Local Government Code and the Port Arthur City Charter,provide the City authority to adopt ordinances for the good,peace, order and welfare of the municipality; and WHEREAS, the City Council finds it in the public interest to adopt regulations for gaming sites and gaming machines as described herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: SECTION 1. The findings and recitations set out in the preamble to this Ordinance are found to be true and correct and they are hereby adopted by the City Council and made a part hereof for all purposes. READ, ADOPTED AND APPROVED on this day of A.D., 2015, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers , NOES: . Deloris "Bobbie" Prince, Mayor ATTEST: City Secretary APPROVED AS TO FORM: —?C‘..,; / ty Atto ey APPROVED FOR ADMINISTRATION: City Manager CHAPTER 22 --BUSINESSES ARTICLE XI. -- GAMING SITES AND GAMING MACHINES Division 1. Generally 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: Applicant—The applicant is the intended operator, occupant, or owner of the gaming site and/or gaming machines. Coin-operated machine—Any kind of machine or device operated by or with a coin or other United States currency, metal slug,token, electronic card, or check including a skill or pleasure coin-operated machine. Gaming machine—Commonly referred to as an"eight liner," any coin-operated machine or electronic, electromechanical or mechanical contrivance designed, made, and adopted solely for bona fide amusement purposes if the contrivance rewards the player exclusively with non-cash 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 ten(10)times the amount charged to play the game or device once or$5.00, whichever is less. Not included in this definition is a machine used only for entertainment purposes, as entertainment is defined in section 372.1701 of the Texas Administrative Code. Gaming site—Any location that displays, exhibits, or maintains for public patronage - through general admission or membership - any gaming machine. Occupant—An individual who occupies or exercises direct control of the premises where a gaming site is located. Operator—The manager or other natural person principally in charge of the gaming site. Owner—An individual who has an ownership interest in the premises of the gaming site or receives an economic or monetary benefit from the gaming site. Permit—A current, valid permit issued by the city manager pursuant to the terms of this article to an operator of a gaming site. Permit holder—A person who has been issued a valid permit pursuant to this article. Skill or pleasure coin-operated machine—Any kind of coin-operated machine that dispenses, or is used or is capable of being used to dispense or afford, amusement, skill, or pleasure, or is operated for any purpose, other than for dispensing only merchandise, music, or service. This includes: (1) A marble machine, marble table machine, marble shooting machine, miniature racetrack machine, miniature football machine, miniature golf machine, miniature bowling machine, billiard or pool game, or machine or device that dispenses merchandise or commodities or plays music in connection with or in addition to dispensing skill or pleasure; and (2) Does not include an amusement machine designed exclusively for a child. Sec. 22-602 Declaration of findings The necessity of the public interest for the provisions and prohibitions hereinafter contained and enacted is declared as a matter of legislative determination and public policy, and it is further declared that the provisions and prohibitions contained in this article are in the furtherance of and for the purpose of securing and promoting the public health, comfort, convenience, safety, welfare and prosperity of the city and its citizens. Sec. 22-603 Severability It is hereby declared to be the intention of the City Council the divisions, sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable and if any division, phrase, clause, sentence, paragraph or section of this Ordinance should be declared invalid by the final judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining divisions, phrases, clauses, sentences, paragraphs, or sections of this Ordinance. Secs. 22-604—22-610 Reserved Division 2. Requirements: Permits, Taxes, & Fees Sec. 22-611 Permit (a) It shall be unlawful for any operator, occupant or owner of the gaming site to display, exhibit, or maintain for public patronage, or otherwise keep for operation by the public, any gaming machine without first obtaining a permit issued under the terms and conditions of this article. (b) It shall be unlawful for any operator, occupant or owner of the gaming site to operate any gaming site located within the city unless the permit issued for that site is posted at or near the principal public entrance to the gaming site in such a manner that it will be conspicuous to patrons who enter the gaming site. (c) In any prosecution under subsection(a) above, it shall be presumed that there was no permit at the time of the alleged offense, unless a permit was then and there posted as provided in subsection(b). (d) A machine that provides the possibility,probability and/or certainty of dispensing a non-cash prize, toy or novelty with a value of not more than ten(10)times the amount charged to play the game or device once, or $5.00, whichever is less at the time of play, but does not allow the player to amass or accumulate points,tokens or any other method to accumulate credits towards larger or greater value non-cash merchandise prizes, toys or novelties is exempt from the requirements of this article. Sec. 22-612 Signage (a) Notwithstanding any other city ordinance, code or regulation to the contrary, it shall be unlawful for the operator, occupant or owner of a gaming site not to clearly identify the site with a sign as required by this article. (b) The sign displayed should be one provided by the city with a white background with black Arial font lettering of 1.5 inches. (c) The sign must clearly read"GAMING SITE" and may not include any advertisements. Sec. 22-613 Transparent, uncovered windows required (a) Every gaming site shall have transparent, unobstructed windows or open space on at least one side so that the area is open to view by the general public passing by on a street. The owner, occupant, or operator of a gaming site shall not permit any obstruction of such public view by the use of drawn shades, blinds,partitions,tinting or other structure or obstructions. (b) The requirements of 22-613(a) may be waived or modified by the Chief building official if the gaming site owner can demonstrate: (1) The gaming site is located within a structure deemed a historic landmark, or the structure is within a historic district and deemed to have architectural or historical significance; and compliance with the unobstructed view requirement shall require alterations to the structure that will have a substantially detrimental effect on its historical or architectural features. Sec.22-614 Machine registration requirements Gaming machines, as defined in this article, shall be registered as follows: (a) The permit holder, owner, or operator is required to maintain on its gaming site a complete inventory, along with serial numbers or equivalent identification, as set forth in subsections (d) and(e)below at all times. The initial application for permit shall include a certificate of the inventory, along with serial numbers or equivalent identification, as set forth in subsections (d) and(5) below, of the machines that the permit holder intends to put into operation when the gaming site begins its business activities. (b) Each renewal permit application shall contain a certificate of inspection of updated inventory, along with serial numbers or equivalent identification, as set forth in subsections (d) and (e) below, of the gaming machines that the permit holder intends to put into operation when the gaming site begins its business activities under the renewal license. (c) Before a new gaming machine is put into operation at the gaming site, the permit holder shall notify the chief of police of the addition of the machine to the inventory and update its inventory accordingly. (d) Upon review of the inventory of machines under subsections (a), (b) and (c) above, the chief of police shall enter each machine into the gaming machine registry that the city shall create. For each machine registered,the city manager shall cause to be issued and delivered to permit holder for each machine within seven(7) days of the notification required under subsection (c) a numbered metal or plastic decal. The registration decal for each machine shall be permanently affixed thereto and in plain view at all times. Registration decals are not transferable. The failure of any machine to display a current registration decal shall be a violation of this section and subject to enforcement action by the city. (e) The inventory of machines under subsections (a), (b) and (c) above shall provide the following information: the manufacturer(s); the serial number(s); common name,type or description of the game played on the machine. The registration decal shall contain the inventory number of the machine. Sec. 22-615 Application; term (a) A permit issued under this article does not vest any property rights in the applicant or permit holder; except to display, exhibit, or maintain for public patronage the use of any gaming machines in accordance with the terms and conditions of this article. (b) A gaming permit is non-transferable and non-refundable. (c) A permit shall be issued for a twelve (12)month term beginning on the date of issuance. (d) Any false statement made by an applicant on the application shall subject the permit to immediate suspension pending revocation and the applicant may be prosecuted as a violation of section 37.10 of the Texas Penal Code (tampering with governmental records), a third degree felony. (e) An application for permit shall be made by the intended owner or operator of the gaming site. (f) The application shall be submitted with a fifty dollar($50.00)processing fee for a site with 5 or fewer machines to the city manager on a form provided by the city for such purpose. For a site with more than 5 machines,the application shall be submitted with a one hundred dollar ($100.00)processing fee to the city manager on a form provided by the city for such purpose. The application must be completed for each location sought to be permitted. The following information is required in the application: (1) Name, address, and telephone number of the applicant, including the trade name by which applicant does business and the street address of the proposed gaming site, and, if incorporated, the name registered with the Secretary of State; (2) Name, address, and telephone number of the operator of the gaming site to be permitted; (3) Number of gaming machines on the gaming site and serial number of each machine; (4) Whether a previous permit of the applicant, or, if applicable, a corporate officer of the applicant, has been revoked within two (2) years of filing of the application; and (5) A statement that all the facts contained in the application are true and correct. Sec. 22-616 Renewal (a) An application for renewal must be submitted thirty (30) days before the expiration date of the existing permit to the city manager on a form provided by the city for such purpose with a fifty dollar($50.00)processing fee for a site with 5 or fewer machines. For a site with more than 5 machines, the application for renewal shall be submitted with a one hundred dollar($100.00)processing fee to the city manager on a form provided by the city for such purpose. (b) Applications for existing gaming sites submitted after the expiration date of the previous permit will be considered and processed as a new applicant. Sec. 22-617 Grounds for denial or revocation (a) The city manager shall refuse to approve the issuance or renewal of a permit or shall revoke a permit for one or more of the following reasons: (1) A false statement as to a material matter made in an application for a permit; (2) Revocation of a permit, pursuant to this article, of the applicant or corporate officer of the applicant within two (2)years preceding the filing of the application; (3) The applicant or a co-owner for such permit has, within the past ten(10) years, been convicted of a crime involving moral turpitude or gambling. (b) The city manager shall not issue or renew a permit under this article and shall suspend or revoke a permit if it is determined that the applicant or permit holder is indebted to the city for any fee, costs, penalties, or delinquent taxes at the time of application or renewal. (c) The city manager shall have the authority to deny or revoke all permits issued under this provision for any violation of this article by giving written notice, stating the reason for denial or revocation, and same shall be cancelled ten(10) days from the date of receipt of such notice. (d) No permit shall be issued within a period of one (1) year to anyone whose permit has been revoked, except at the discretion of the city council. Sec. 22-618 Appeal from denial or revocation If the city manager denies, refuses to approve the issuance of a permit or the renewal of a permit to an applicant, or revokes a permit issued under this article,this action is final unless the applicant or permit holder, within ten(10) days after the receipt of written notice of the action, files a written appeal to the city council by delivering said notice to the city secretary setting forth specific grounds for the appeal. The city council shall either hear the appeal or select a hearing officer to preside over the appeal hearing. The city council or hearing officer shall within fourteen (14) days of the notice of appeal grant a hearing to consider the action. The city council and hearing officer have the authority to sustain, reverse, or modify the action appealed. The decision of either the city council or hearing officer is final. Sec. 22-619 Transfer of permit A permit issued under the provisions of this article shall be specific to the site and personal to the holder thereof and shall not be transferable or assignable. Sec. 22-620 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 a fee of fifteen dollars ($15.00)to the city manager on a form provided by the city for such purpose. (b) A replacement permit shall bear the same expiration date as the one it replaces. (c) A new or replacement decal issued to a permit holder shall be fifteen dollars ($15.00). Sec. 22-621 Occupation tax (a) Every permit holder who controls,possesses, exhibits, or displays, or who permits to be exhibited or displayed in the city for public patronage or operation by the public, any gaming machine shall pay, and is hereby levied on each such gaming machine, except those exempt under this article, an annual occupation tax in the amount equal to one-fourth(1/4) 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 lost, destroyed or mutilated shall be fifteen dollars ($15.00). Sec. 22-622 Regulatory Enforcement License Fee (a) An owner, operator, or lessee of an amusement machine game room shall be required to secure a regulatory enforcement license annually. An amusement redemption machine game room shall be required to secure a regulatory enforcement license by paying to the City an annual inspection and regulatory enforcement license fee of $600.00 for each amusement redemption gaming machine. The regulatory license fee is implemented to cover the costs to issue the licenses, regulate the amusement redemption machine game rooms, and to determine whether the provisions of this article are complied with. Secs. 22-623 —22-630 Reserved Division 3. Inspections Sec. 22-631 Inspections; compliance (a) The gaming site shall conform to all zoning ordinances, building codes and fire prevention codes of the city and comply with all federal, state and local ordinances and regulations relevant to the operations of a gaming site or gaming machine. (b) The fire chief,the chief building official, all law enforcement, or code enforcement officials shall have the right to immediate access to the area of the gaming site where such machines are located at any time during normal business hours or when the site is occupied for the purpose of inspecting said gaming site and enforcement of the terms of this article and state law. (c) An owner, operator, occupant, or any person who does not allow immediate access to the area of the gaming site where such machines are located to officials for the purpose of inspection or enforcement commits an offense. Sec. 22-632 Prohibited locations (a) No gaming sites shall be permitted to be placed within three hundred (300) feet of any church, hospital or school. (b) The measurement of the distance between the place of business and the church, hospital or school shall be determined by measurements made in a straight line, without regard to intervening structures or objects, from the nearest point on the applicant's property line to the nearest point of the church, hospital or school property line. Sec. 22-633 Responsibility of permit holder (a) A permit holder hereunder shall not permit any of the following activities within the permitted gaming site: (1) The sale, purchase, possession or consumption of any alcoholic beverages as the same is permitted by the Texas Alcoholic Beverage Code, unless the gaming site is licensed under the provisions of said code 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 twelve (12) years of age except between the hours of 9:00 a.m. and 10:00 p.m. (3) The operation of any gaming machine by any person twelve (12) years of age or older and under seventeen (17) years of age except between the hours of 9:00 a.m. and 11:00 p.m., Sunday through Thursday, and 9:00 a.m. and 12:00 a.m. (midnight), Friday and Saturday. Secs. 22-634 —22-640 Reserved Division 4. Enforcement Sec. 22-641 Violations of existing laws not authorized Nothing herein shall be construed or have the effect to license, permit, authorize or legalize any machine, device, table, or gaming machine, the keeping, exhibition, operation, display or maintenance of which is illegal or in violation of any ordinance of the city, any section of the Penal Code or the Constitution of the State of Texas. Sec. 22-642 Offense & Penalties (a) It shall be unlawful for an owner, operator or permit holder to exhibit or display, or permit to be exhibited or displayed for commercial use, any gaming machine which: (1) Does not have properly attached thereto a decal evidencing payment of applicable occupation tax, enforcement fee, and machine registration; (2) Is located at any address or location other than the location listed for such machine as shown in the records of the city; or (3) Has affixed to it a decal other than the decal issued for such as shown in the records of the city. (b) Except as otherwise 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 two hundred dollars ($200.00)nor more than one thousand dollars ($1,000.00). (c) Upon second conviction for a violation of this article, the defendant shall be punished by a fine of not less than five hundred dollars ($500.00) nor more than one thousand dollars ($1,000.00). (d) Proof of a culpable mental state is not required for a conviction of an offense under this Ordinance. (e) Each day a violation occurs shall be deemed a separate Class C misdemeanor offense under this section. (d) Any violation charged pursuant to this section shall be independent of and may be in addition to any administrative penalties which may be imposed regarding the suspension, revocation or denial of any permit or license granted under this article. Sec. 22-643 Sealing machine for nonpayment; hearings (a) The chief of police shall seal, in a manner that will prevent further operation, any gaming machine upon which the tax required by this article has not been paid or upon which the decal is not properly displayed. The owner or operator of any machine subject to this article shall be required to pay a fee equal to the maximum amount permitted under section 2153.453 of the Texas Occupations Code for the release of any machine sealed, as provided herein, for nonpayment of the tax or for failure to properly display the decal evidencing the payment of the tax and proper registration of the machine. The current fee amount shall be five dollars ($5.00) for each sealed machine. Upon proof of payment of the occupation tax provided for in Section 22-621 and the regulatory enforcement license fee provided for in Section 22-622 of this article, and the release fee, the chief will remove the seal. (b) Any owner desiring to contest the tax, fee, or penalty owed to the city to secure the release of a sealed machine may request a hearing by delivering written notice to the city clerk setting forth the specifics of the challenge. The city council shall either hear the challenge or select a hearing officer to preside over the hearing. The city council or hearing officer shall within fourteen(14) days of the notice of challenge grant a hearing to consider the action. The decision of either the city council or hearing officer is final. Sec. 22-644 Penalty for removal of sealed machine It shall be unlawful to remove from the permitted site any machine that has been sealed pursuant to Section 22-643 of this article. Whoever removes or causes to be removed a machine that is sealed shall be guilty of a Class C misdemeanor and, upon conviction, shall be punished by a fine of not less than$100.00 and no more than $500.00. Sec. 22-645 Injunctions (a) In addition to the fines and penalties provided in this article, if it appears that a person has violated or is violating or is threatening to violate any provisions of this article,the city attorney may institute a civil suit in a court of competent jurisdiction for injunctive relief to restrain the person from continuing the violation or threat of violation. (b) On application for injunctive relief and a finding that a person is violating or threatening to violate any provision of this article, the court shall grant such injunctive relief as the facts may warrant. Sec. 22-646 Strict enforcement; exemptions (a) All law enforcement personnel, inspectors, and other designated personnel shall carry out the provisions of this article and may issue citations for violations of this article. All law enforcement officers and representatives shall strictly enforce and prosecute the provisions of this article, and court officials shall see that this article receives strict interpretation and adjudication in a court of competent jurisdiction. (b) A person in possession or control of a gaming machine is exempt from this article if: (1) The gaming machine is maintained exclusively in a personal residence and solely for personal use; or (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 owned by, leased or rented to organizations operated exclusively for charitable, educational, religious or benevolent purposes. An organization with social or fraternal activities does not qualify; (4) The gaming machines designed for and utilized exclusively by children are expressly exempt from the tax and enforcement fee levied in Division 2 hereof.