78R4001 EMT-F
By: Hupp H.B. No. 1407
A BILL TO BE ENTITLED
AN ACT
relating to the exhibition of amusement redemption machines by
certain nonprofit organizations and others where approved by local
option.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2153, Occupations Code, is amended by
adding Subchapter K to read as follows:
SUBCHAPTER K. AMUSEMENT REDEMPTION MACHINES
Sec. 2153.501. DEFINITIONS. In this subchapter:
(1) "Amusement redemption machine" means a skill or
pleasure coin-operated machine that by operation of chance or a
combination of skill and chance affords the user an opportunity to
receive a prize, or a representation of value redeemable for a
prize, but does not include a machine:
(A) that awards the user noncash merchandise
prizes, toys, or novelties solely and directly from the machine,
including claw, crane, or similar machines; or
(B) from which the opportunity to receive noncash
merchandise prizes, toys, or novelties, or a representation of
value redeemable for those items, varies depending upon the user's
ability to throw, roll, flip, toss, hit, or drop a ball or other
physical object into the machine or a part of the machine, including
basketball, skeeball, golf, bowling pusher, or similar machines.
(2) "Authorized organization" has the meaning
assigned by Section 2001.002.
(3) "Coin-operated machine" includes a machine or
device operated by the payment or insertion of paper currency or any
other consideration.
(4) "Political subdivision" means a county, justice
precinct, or municipality.
(5) "Representation of value" includes a gift
certificate or gift card that is presented to a merchant in exchange
for merchandise.
(6) "User" means an individual who for consideration
operates an amusement redemption machine for the opportunity to win
a prize.
Sec. 2153.502. LICENSING OF AUTHORIZED ORGANIZATIONS TO
EXHIBIT AMUSEMENT REDEMPTION MACHINES. (a) The comptroller may
issue to an authorized organization a license under Section
2153.152 that authorizes the holder to exhibit an amusement
redemption machine to a user of the machine as provided by this
subchapter.
(b) A license issued under Section 2153.152 does not
authorize the holder to exhibit an amusement redemption machine to
a user of the machine unless the license holder is an authorized
organization and:
(1) the authorized organization holds a license issued
under this subchapter;
(2) the amusement redemption machine is located in a
political subdivision in which an election has been held under this
subchapter authorizing the use of amusement redemption machines and
that authorization is still in effect in that location; and
(3) the amusement redemption machine is owned by the
authorized organization or leased by the organization from a person
authorized by law to lease the amusement redemption machine to the
organization.
(c) An authorized organization that holds a license to
conduct bingo under Chapter 2001 is entitled to a license under this
subchapter if the organization:
(1) provides proof to the comptroller that the license
to conduct bingo is in effect; and
(2) pays the applicable license fees and registration
fees under this subchapter for the amusement redemption machines to
be exhibited under the license.
(d) A license issued under Subsection (c) expires on the
61st day after the date on which the authorized organization ceases
to hold an active license to conduct bingo issued under Chapter
2001. This subsection does not prohibit the organization from
obtaining a separate license under this subchapter before the
license issued under Subsection (c) expires.
(e) The comptroller may not issue a license under this
subchapter to an authorized organization if an officer or director
of the organization has been convicted of a felony, criminal fraud,
a gambling or gambling-related offense, or a crime of moral
turpitude if less than 10 years has elapsed since the termination of
a sentence, parole, mandatory supervision, or community
supervision served for the offense.
(f) An authorized organization may not exhibit an amusement
redemption machine under a license issued under this subchapter to
a user who is younger than 18 years of age.
Sec. 2153.503. FEES. (a) Notwithstanding Section
2153.157, the registration fee for an amusement redemption machine
that is exhibited to users under this subchapter is $350 per year.
(b) In addition to the license fees required by Section
2153.154, the comptroller shall collect an annual license fee
applicable to each license holder described in Section 2153.152 who
owns one or more amusement redemption machines. The annual license
fee under this subsection is $10,000 per 100 machines or any
fraction of 100 machines owned by the license holder.
(c) In addition to any other fee authorized by this chapter,
the comptroller may set and collect a fee necessary to cover any
additional costs of determining the eligibility of an applicant for
a license under this subchapter.
Sec. 2153.504. LOCAL OPTION AUTHORIZATION OR PROHIBITION
ELECTIONS. The governing body of a county, justice precinct, or
municipality:
(1) shall order and hold an election under this
subchapter in the appropriate political subdivision if the
governing body is presented with a petition for an election that
meets the requirements of this subchapter; and
(2) may order and hold an election on its own motion.
Sec. 2153.505. ELECTION PETITIONS. (a) A petition for an
election to authorize amusement redemption machines under this
subchapter must have a statement substantially as follows preceding
the space reserved for signatures on each page: "This petition is to
require that an election be held in (name of political subdivision)
to authorize amusement redemption machines for charitable purposes
under Chapter 2153, Occupations Code."
(b) A petition for an election to prohibit amusement
redemption machines under this subchapter must have a statement
substantially as follows preceding the space reserved for
signatures on each page: "This petition is to require that an
election be held in (name of political subdivision) to prohibit
amusement redemption machines for charitable purposes authorized
under Chapter 2153, Occupations Code."
(c) A petition is valid for purposes of Section 2153.504
only if it is signed by a number of registered voters of the
political subdivision that exceeds 10 percent of the number of
registered voters who voted in the political subdivision in the
most recent general election for state and county officers, or the
number of registered voters specified in the document governing the
administration of the political subdivision, whichever is less. If
boundaries of the political subdivision do not coincide with
boundaries of election precincts in effect for that general
election, the officer verifying the petition may use a reasonable
method to estimate the number of registered voters who voted in that
election in the political subdivision.
(d) A signer must enter beside the signer's signature the
date of signing the petition. A signature may not be counted if the
signer fails to enter the date or if the date of signing is earlier
than the 90th day before the date the petition is submitted to the
governing body.
(e) In addition to the signature and date of signing, the
petition must include each signer's:
(1) current voter registration number;
(2) printed name; and
(3) residence address, including zip code.
(f) Not later than the fifth day after the date the
governing body receives a petition for an election, the governing
body shall submit the petition for verification to the county clerk
if the petition is applicable to a county or justice precinct or to
the municipal secretary if the petition is applicable to a
municipality.
(g) The officer to whom the petition is submitted for
verification shall determine whether the petition is signed by the
required number of registered voters of the political subdivision
in which the election is requested.
(h) Not later than the 30th day after the date the petition
is submitted to the officer for verification, the officer shall
certify in writing to the governing body whether the petition is
valid. If the officer determines that the petition is invalid, the
officer shall state all reasons for the determination.
Sec. 2153.506. ELECTION ORDER. If the officer responsible
for certifying a petition determines that a petition is valid, the
governing body shall:
(1) order that an election be held in the appropriate
political subdivision on the next uniform election day provided by
Section 41.001(a), Election Code, that occurs not earlier than the
45th day after the date of the officer's certification; and
(2) notify the comptroller by certified mail, return
receipt requested, that an election has been ordered.
Sec. 2153.507. BALLOT PROPOSITIONS. (a) In an election to
authorize amusement redemption machines under this subchapter in a
political subdivision, the ballot shall be prepared to provide for
voting for or against the proposition: "Authorizing the operation
of amusement redemption machines for charitable purposes as
authorized by Chapter 2153, Occupations Code, in (name of political
subdivision)."
(b) In an election to prohibit amusement redemption
machines under this subchapter in a political subdivision, the
ballot shall be prepared to provide for voting for or against the
proposition: "Prohibiting the operation of amusement redemption
machines for charitable purposes as authorized by Chapter 2153,
Occupations Code, in (name of political subdivision)."
Sec. 2153.508. EFFECT OF ELECTION. (a) The governing body
of a political subdivision in which an amusement redemption machine
election has been held shall not later than the 10th day after the
date of the election give written notification to the comptroller
of the results of the election.
(b) If a majority of the qualified voters voting on the
question in an authorization election vote in favor of
authorization, amusement redemption machines are authorized
throughout the political subdivision beginning on the 10th day
after the date the result of the election is officially declared,
except as otherwise provided as to a part of the political
subdivision for which Subsection (g) requires a contrary status.
(c) If a majority of the qualified voters voting on the
question in a prohibitory election vote in favor of prohibition,
amusement redemption machines are prohibited throughout the
political subdivision beginning on the 10th day after the date the
result of the election is officially declared, except as otherwise
provided as to a part of the political subdivision for which
Subsection (g) requires a contrary status.
(d) If a majority of the qualified voters voting on the
question in an authorization election do not favor authorization,
or if a majority of the qualified voters voting on the question in a
prohibitory election do not favor prohibition, the election has no
effect on the status under this subchapter of the political
subdivision in which the election is held.
(e) If as a result of the election amusement redemption
machines are authorized in the political subdivision, the governing
body shall furnish the comptroller with a map prepared by the
governing body indicating the boundaries of the political
subdivision in which amusement redemption machines are authorized.
(f) In determining whether amusement redemption machines
under this subchapter are authorized in an area, the rules provided
by this section apply. Amusement redemption machines are
authorized in an area only as the result of a successful election
held under this subchapter.
(g) To the extent that the results of local option elections
held by different types of political subdivisions conflict with
regard to the same territory, the relative dates of the elections
are of no consequence and the following rules apply:
(1) the status of an area as determined by a municipal
election prevails over a contrary status as determined by a justice
precinct or county election; and
(2) the status of an area as determined by a justice
precinct election prevails over the contrary status of the area as
determined by a county election.
(h) If two or more local option elections held at the
justice precinct level apply to the same territory, the most recent
election prevails.
(i) If a municipality has established a status by a
municipal election, territory annexed to the municipality after
that status is established assumes the status under this subchapter
of the rest of the municipality. Territory detached from the
municipality assumes the status the territory would have had if it
had never been a part of the municipality. If the detached
territory is added to another municipality that has established a
status by a municipal election, the territory assumes the status of
the municipality to which it is added.
(j) The addition of territory to or detachment of territory
from a justice precinct does not affect the status under this
subchapter of the added or detached territory.
SECTION 2. Section 47.02(c), Penal Code, is amended to read
as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1) was permitted under Chapter 2001, Occupations
Code;
(2) was permitted under Chapter 2002, Occupations
Code;
(3) consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
Government Code);
(4) was permitted under the Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes); [or]
(5) consisted entirely of participation in a drawing
for the opportunity to participate in a hunting, fishing, or other
recreational event conducted by the Parks and Wildlife Department;
or
(6) was authorized under Subchapter K, Chapter 2153,
Occupations Code, or a license issued under that subchapter.
SECTION 3. Section 47.06(f), Penal Code, is amended to read
as follows:
(f) It is a defense to prosecution under Subsection (a) or
(c) that the person owned, manufactured, transferred, or possessed
the gambling device, equipment, or paraphernalia for the sole
purpose of shipping it:
(1) within this state to a location at which amusement
redemption machines may be exhibited under a license issued under
Subchapter K, Chapter 2153, Occupations Code, if the item is an
amusement redemption machine as defined by that subchapter or a
component part of or supply for use in an amusement redemption
machine as defined by that subchapter; or
(2) to another jurisdiction where the possession or
use of the device, equipment, or paraphernalia was legal.
SECTION 4. Section 47.09, Penal Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code; [or]
(C) the Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes); or
(D) Subchapter K, Chapter 2153, Occupations
Code, or a license issued under that subchapter;
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
(c) The defense provided by Subsection (a)(1)(D) does not
apply to conduct committed in accordance with a license issued
under Subchapter K, Chapter 2153, Occupations Code, if the actor
obtained the license by false pretense, false statement, or
material omission made in the license application or other manner.
SECTION 5. This Act does not attempt to supersede federal
law or the Texas Constitution. If this Act is declared
unconstitutional by a final judgment of a court with appropriate
jurisdiction, this Act has no effect.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.