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.