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.