78R8340 YDB-D
By: Flores H.B. No. 2440
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of a tax on a prize awarded for play of a
coin-operated amusement gaming machine.
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. OTHER TAXES
Sec. 2153.501. TAX ON AMUSEMENT GAMING MACHINE PRIZES. (a)
In this section, "coin-operated amusement gaming machine":
(1) means a device described by Section 47.01(4)(B),
Penal Code, that would constitute a gambling device under Section
47.01(4), Penal Code, if it were not excluded from the definition of
gambling device by Section 47.01(4)(B); and
(2) does not include:
(A) a machine that awards the user noncash
merchandise prizes, toys, or novelties solely and directly from the
machine, including claw, crane, or similar machines; or
(B) a machine from which the opportunity to
receive a prize or a representation of value redeemable for a prize
varies depending on 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.
(b) A machine covered by this section must be certified as a
coin-operated amusement gaming machine by the comptroller or a
competent private testing service that has contracted with the
comptroller to certify machines as coin-operated amusement gaming
machines.
(c) A tax is imposed on each cash or cash equivalent prize
awarded from play of a coin-operated amusement gaming machine to be
collected by the operator of the machine on behalf of the
comptroller. The amount of the tax is a percentage of the value of a
prize subject to the tax equal to the percentage of the sales price
of a taxable item that constitutes the sales tax rate imposed under
Chapter 151, Tax Code.
(d) Sections 2153.404 and 2153.407 apply to the tax imposed
by this section.
SECTION 2. Chapter 47, Penal Code, is amended by adding
Section 47.11 to read as follows:
Sec. 47.11. CERTIFICATION OF MACHINES. A person may not
claim a defense, affirmative defense, or exception to prosecution
for an offense under this chapter on the ground that a device was
excluded from the definition of gambling device by Section
47.01(4)(B) unless:
(1) at the time of the conduct the device was certified
as a coin-operated amusement gaming machine under Section 2153.501,
Occupations Code;
(2) the device awards the user noncash merchandise
prizes, toys, or novelties solely and directly from the machine,
including claw, crane, or similar machines; or
(3) the device is a device from which the opportunity
to receive a prize or a representation of value redeemable for a
prize varies depending on 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.
SECTION 3. (a) Not later than January 1, 2004, the
comptroller shall establish procedures to certify coin-operated
amusement gaming machines or contract with a competent private
testing service to certify coin-operated amusement gaming machines
as required by Section 2153.501, Occupations Code, as added by this
Act.
(b) Notwithstanding Section 2153.501, Occupations Code, as
added by this Act, a tax is not imposed on a prize awarded from play
of a coin-operated amusement gaming machine until March 1, 2004.
SECTION 4. (a) Section 47.11, Penal Code, as added by this
Act applies only to an offense committed on or after March 1, 2004.
For purposes of this section, an offense is committed before that
date if any element of the offense occurs before that date.
(b) An offense committed before March 1, 2004, is covered by
the law in effect when the offense was committed, and the former law
is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2003, except
that Section 2 of this Act takes effect March 1, 2004.