HBA-DMH H.B. 2479 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2479 By: Danburg Licensing & Administrative Procedures 3/20/2001 Introduced BACKGROUND AND PURPOSE In 1993 and 1995, the legislature amended Texas statutes to legalize certain coin-operated machines that award players prizes and novelties that have little value. Some owners and operators of amusement redemption machines, commonly referred to as eight liners, have taken advantage of the vagueness of these provisions. House Bill 2479 specifies limits for amusement redemption machines and requires the comptroller of public accounts to adopt rules to regulate these machines separately from coin-operated machines. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller of public accounts in SECTION 1 (Sections 2153.502 and 2153.503, Occupations Code) of this bill. ANALYSIS House Bill 2479 amends the Occupations Code to establish provisions for the regulation of amusement redemption machines. The bill requires the comptroller of public accounts (comptroller) to adopt rules for regulating the exhibition, display, operation, promotion, and use of amusement redemption machines. The bill provides that nothing in this chapter shall be construed to limit the authority of a political subdivision of this state to regulate the location of amusement redemption machines, as permitted for the purposes of zoning coin operated machines. The bill prohibits more than five amusement redemption machines from being operated on any premises or more than 30 amusement redemption machines from being operated at a premises on which bingo is regularly conducted in accordance with the Bingo Enabling Act pursuant to a commercial lessor license that was issued prior to January 1, 2001, and that has been in effect continuously since that date. The bill requires two or more locations where amusement redemption machines were lawfully operated under separate ownership and control prior to January 1, 2001, to be considered to be separate premises more than 200 feet from each other. The bill requires the comptroller to adopt rules for the enforcement and fair administration of restrictions on the number of amusement redemption machines. The bill sets forth provisions for amusement redemption machine permits, licenses, and fees. The bill makes tax permits for amusement redemption machines valid only to one address and increases the annual cost of a tax permit for each amusement redemption machine from $60 to $120. The bill requires amusement redemption machine license applicants to identify the address at which they will operate amusement redemption machines and to display their license in a conspicuous place. The bill increases the annual cost of a general business license for amusement redemption machines from the current minimum of $200 to a fixed $2,000. The bill provides that the exemption for certain owners or exhibitors of coin-operated machines does not apply to a person who owns or exhibits an amusement redemption machine. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.