By Danburg                                            H.B. No. 2479
         77R6946 E                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of amusement redemption machines.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 2153, Occupations Code, is amended by
 1-5     adding Subchapter K to read as follows:
 1-6                SUBCHAPTER K.  AMUSEMENT REDEMPTION MACHINES
 1-7           Sec. 2153.501.  AMUSEMENT REDEMPTION MACHINE DEFINED.  (a)
 1-8     An amusement redemption machine is a skill or pleasure
 1-9     coin-operated machine that is designed, made, and adapted solely
1-10     for bona fide amusement purposes, and that by operation of chance
1-11     or a combination of skill and chance affords the user, in addition
1-12     to any right of replay, an opportunity to receive exclusively
1-13     noncash merchandise prizes, toys, or novelties, or a representation
1-14     of value redeemable for those items, that have a wholesale value
1-15     from a single play of the machine of not more than 10 times the
1-16     amount charged to play the machine once or $5, whichever is less.
1-17           (b)  An amusement redemption machine does not include:
1-18                 (1)  a machine that awards the user noncash merchandise
1-19     prizes, toys, or novelties solely and directly from the machine,
1-20     including claw, crane, or similar machines; nor
1-21                 (2)  a machine from which the opportunity to receive
1-22     noncash merchandise prizes, toys, or novelties, or a representation
1-23     of value redeemable for those items, varies depending upon the
1-24     user's ability to throw, roll, flip, toss, hit, or drop a ball or
 2-1     other physical object into the machine or a part thereof, including
 2-2     basketball, skeeball, golf, bowling, pusher, or similar machines.
 2-3           (c)  For purposes of this section:
 2-4                 (1)  A coin-operated machine includes a machine or
 2-5     device operated by the payment or insertion of paper currency or
 2-6     any other consideration.
 2-7                 (2)  A representation of value includes a gift
 2-8     certificate or gift card that is presented to a merchant in
 2-9     exchange for merchandise.
2-10           Sec. 2153.502.  REGULATORY AUTHORITY.  (a)  The comptroller
2-11     shall adopt rules for regulating the exhibition, display,
2-12     operation, promotion, and use of amusement redemption machines.
2-13           (b)  Nothing in this chapter shall be construed to limit the
2-14     authority of a political subdivision of this state to regulate the
2-15     location of amusement redemption machines, as permitted under
2-16     Section 2153.452.
2-17           Sec. 2153.503.  RESTRICTIONS ON NUMBER OF AMUSEMENT
2-18     REDEMPTION MACHINES.  (a)  No more than five amusement redemption
2-19     machines may be operated on any premises other than a premises
2-20     described in Subsection (b).
2-21           (b)  No more than 30 amusement redemption machines may be
2-22     operated at a premises on which bingo is regularly conducted in
2-23     accordance with Chapter 2001 pursuant to a commercial lessor
2-24     license that was issued prior to January 1, 2001, and has been in
2-25     effect continuously since that date.
2-26           (c)  Notwithstanding this section, two or more locations
2-27     where amusement redemption machines were lawfully operated under
 3-1     separate ownership and control prior to January 1, 2001, shall be
 3-2     considered to be separate premises more than 200 feet from each
 3-3     other, regardless of the distance from each other or whether they
 3-4     are located under a common roof or foundation.
 3-5           (d)  The comptroller shall adopt rules for the enforcement
 3-6     and fair administration of this section, including criteria that
 3-7     applicants must demonstrate to prove that the requirements of
 3-8     Subsection (c) are satisfied.
 3-9           (e)  For purposes of this section:
3-10                 (1)  "Premises" means any facility located under a
3-11     common roof or located over a common foundation, and includes any
3-12     area within 200 feet of such common roof or foundation.
3-13                 (2)  An amusement redemption machine designed to be
3-14     operated simultaneously by more than one user shall count as one
3-15     machine multiplied by the number of possible simultaneous users.
3-16           Sec. 2153.504.  ADDITIONAL PERMIT PROVISIONS APPLICABLE TO
3-17     AMUSEMENT REDEMPTION MACHINES. (a)  A permit issued for any
3-18     amusement redemption machine shall state the physical street
3-19     address designated by the licensee on the application therefor, and
3-20     shall be valid only while affixed to such machine at such address.
3-21           (b)  The comptroller shall not issue a permit for any
3-22     amusement redemption machines that may cause any premises to exceed
3-23     the limitations in Section 2153.503.
3-24           (c)  The occupation fee imposed under Section 2153.401 is
3-25     $120 per year for each amusement redemption machine.
3-26           Sec. 2153.505.  ADDITIONAL GENERAL BUSINESS LICENSE
3-27     PROVISIONS APPLICABLE TO AMUSEMENT REDEMPTION MACHINES. (a)  An
 4-1     application for a license under this subchapter shall, in addition
 4-2     to the information required by Section 2153.153, include the
 4-3     physical street address at which any amusement redemption machine
 4-4     is or will be located.
 4-5           (b)  A licensee shall display his license at all times in a
 4-6     conspicuous place in the location where any amusement redemption
 4-7     machines are operated.
 4-8           (c)  The annual fee for a general business license imposed
 4-9     under Section 2153.154(a) is $2,000 for an applicant with any
4-10     number of amusement redemption machines.
4-11           Sec. 2153.506.  OWNERS OR EXHIBITORS OF AMUSEMENT REDEMPTION
4-12     MACHINES NOT EXEMPT. The exemption in Section 2153.008 does not
4-13     apply to a person who owns or exhibits an amusement redemption
4-14     machine.
4-15           SECTION 2.  This Act takes effect immediately if it receives
4-16     a vote of two-thirds of all the members elected to each house, as
4-17     provided by Section 39, Article III, Texas Constitution.  If this
4-18     Act does not receive the vote necessary for immediate effect, this
4-19     Act takes effect September 1, 2001.