81R15812 T

By: Gutierrez H.B. No. 4018

A BILL TO BE ENTITLED

AN ACT

relating to local option elections to legalize or prohibit the operation of amusement redemption machines and imposing a fee on amusement redemption machines; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 17, Election Code, is amended by adding Chapter 502 to read as follows:

CHAPTER 502. LOCAL OPTION ELECTIONS ON OPERATION OF AMUSEMENT

REDEMPTION MACHINES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 502.001. DEFINITION. In this chapter, "Machine" means an "Amusement redemption machine" which is a contrivance described by Section 47.01(4)(B), Penal Code but expressly includes electronic, electromechanical, or mechanical contrivances commonly referred to as "Eight-Liners" for which a maximum cash redemption value for any individual pay out does not exceed two thousand dollars ($2,000).

[Sections 502.002-502.020 reserved for expansion]

SUBCHAPTER B. MANNER OF CALLING ELECTION

Sec. 502.021. ELECTION TO BE HELD. On proper petition by the required number of voters of a county, justice precinct, or municipality in the county, the commissioners court shall order a local option election in that political subdivision to determine whether the operation of amusement redemption machines shall be legalized or prohibited in the political subdivision.

Sec. 502.022. QUALIFICATIONS FOR NEW POLITICAL SUBDIVISION TO HOLD ELECTION. A political subdivision must have been in existence for at least 18 months before a local option election to legalize or prohibit the operation of amusement redemption machines in the political subdivision may be held.

Sec. 502.023. APPLICATION FOR PETITION. (a) On written application of 10 or more qualified voters of any county, justice precinct, or municipality that includes proof of publication of the application in a newspaper of general circulation in that political subdivision not earlier than the 30th day before the date the petition is filed, the county clerk of the county shall issue to the applicants a petition to be circulated among the qualified voters of the political subdivision for the signatures of the qualified voters requesting that a local option election be called to determine whether the operation of amusement redemption machines shall be legalized or prohibited in the political subdivision.

(b) Not later than the fifth day after the date the petition is issued, the county clerk shall notify the secretary of state that the petition has been issued.

Sec. 502.024. HEADING, STATEMENT, AND ISSUE ON APPLICATION FOR PETITION TO LEGALIZE. (a) An application for a petition seeking an election to legalize the operation of amusement redemption machines must include the heading: "Application for Local Option Election Petition to Legalize the Operation of Amusement Redemption Machines."

(b) The application must contain the following statement of the issue to be voted on, immediately preceding the signatures of the applicants: "It is the purpose and intent of the applicants whose signatures appear on this application to legalize the operation of amusement redemption machines in (name of political subdivision)."

Sec. 502.025. HEADING, STATEMENT, AND ISSUE ON APPLICATION FOR PETITION TO PROHIBIT. (a) An application for a petition seeking an election to prohibit the operation of amusement redemption machines must include the heading: "Application for Local Option Election Petition to Prohibit the Operation of Amusement Redemption Machines."

(b) The application must contain the following statement of the issue to be voted on, immediately preceding the signatures of the applicants: "It is the purpose and intent of the applicants whose signatures appear on this application to prohibit the operation of amusement redemption machines in (name of political subdivision)."

Sec. 502.026. PETITION REQUIREMENTS. A petition must include the date the petition is issued by the county clerk and be serially numbered. Each page of the petition must bear the same date and serial number and the actual seal of the county clerk rather than a facsimile of that seal.

Sec. 502.027. HEADING AND STATEMENT ON PETITION TO LEGALIZE. (a) Each page of the petition for a local option election seeking to legalize the operation of amusement redemption machines must include the heading: "Petition for Local Option Election to Legalize the Operation of Amusement Redemption Machines."

(b) The petition must contain the following statement of the issue to be voted on, immediately preceding the signatures of the petitioners: "It is the purpose and intent of the petitioners whose signatures appear on this petition to legalize the operation of amusement redemption machines in (name of political subdivision)."

Sec. 502.028. HEADING AND STATEMENT ON PETITION TO PROHIBIT. (a) Each page of the petition for a local option election seeking to prohibit the operation of amusement redemption machines must include the heading: "Petition for Local Option Election to Prohibit the Operation of Amusement Redemption Machines."

(b) The petition must contain the following statement of the issue to be voted on, immediately preceding the signatures of the petitioners: "It is the purpose and intent of the petitioners whose signatures appear on this petition to prohibit the operation of amusement redemption machines in (name of political subdivision)."

Sec. 502.029. OFFENSE: MISREPRESENTATION OF PETITION. (a) A person commits an offense if the person misrepresents the purpose or effect of a petition issued under this chapter.

(b) An offense under this section is a Class B misdemeanor.

Sec. 502.030. COPIES OF PETITION. (a) The county clerk shall provide the number of copies of the petition required by the applicants provided the number of pages does not exceed one page for every 10 registered voters in the county, justice precinct, or municipality. Each copy must bear the date, number, and seal on each page as required on the original petition.

(b) The county clerk shall keep a copy of each petition and a record of the applicants for the petition.

Sec. 502.031. VERIFICATION OF PETITION. (a) The voter registrar of the county shall check the names of the signers of petitions and the voting precincts in which the signers reside to determine whether the signers were qualified voters of the county, justice precinct, or municipality at the time the petition was issued. The registrar may use a statistical sampling method to verify the signatures, except that on written request from a citizen of the political subdivision for which an election is sought, the registrar shall verify each signature on the petition. The citizen requesting the verification shall pay the reasonable cost of the verification. The registrar shall certify to the commissioners court the number of qualified voters signing the petition.

(b) A petition signature may not be counted unless:

(1) the signature is the actual signature of the purported signer;

(2) the petition contains in addition to the signature:

(A) the signer's printed name;

(B) the signer's date of birth;

(C) if the territory from which signatures must be obtained is situated in more than one county, the county of registration;

(D) the signer's residence address; and

(E) the date of signing; and

(3) the petition complies with any other applicable requirements prescribed by law.

(c) The use of ditto marks or abbreviations does not invalidate a signature if the required information is reasonably ascertainable.

(d) The omission of the state from the signer's residence address does not invalidate a signature unless the political subdivision from which the signature is obtained is situated in more than one state. The omission of the zip code from the address does not invalidate a signature.

(e) The signature is the only entry on the petition that is required to be in the signer's handwriting.

(f) A signer may withdraw the signer's signature by deleting the signature from the petition or by filing with the voter registrar an affidavit requesting that the signature be withdrawn from the petition. A signer may not withdraw the signature from a petition on or after the date the petition is received by the registrar. A withdrawal affidavit filed by mail is considered to be filed at the time of its receipt by the registrar. The withdrawal of a signature nullifies the signature on the petition and places the signer in the same position as if the signer had not signed the petition.

Sec. 502.032. REQUIREMENTS TO ORDER ELECTION. (a) The commissioners court, at its next regular session on or after the 30th day after the date the petition is filed, shall order a local option election to be held on the issue set out in a petition that complies with the requirements of Subsection (b).

(b) The petition must:

(1) be filed with the voter registrar not later than the 60th day after the date the petition is issued; and

(2) bear the signatures of a number of qualified voters of the political subdivision equal to at least 35 percent of the registered voters in the subdivision who voted in the most recent gubernatorial election.

(c) A voter whose name appears on the list of registered voters with the notation "S," or a similar notation, shall be excluded from the computation of the number of registered voters of a particular territory.

Sec. 502.033. RECORD IN MINUTES. The commissioners court shall enter in its minutes the date a petition is presented, the names of the signers, and the action taken with respect to the petition.

Sec. 502.034. ISSUES TO APPEAR IN ORDER FOR ELECTION. (a) The election order must state in its heading and text whether the local option election to be held is for the purpose of legalizing or prohibiting the operation of amusement redemption machines as set out in the issue recited in the application and petition.

(b) The order must state the issue to be voted on in the election.

Sec. 502.035. BALLOT. The ballot in an election to legalize or prohibit the operation of amusement redemption machines shall be prepared to permit voting for or against "The legal operation of amusement redemption machines in (name of political subdivision)."

Sec. 502.036. EVIDENCE OF VALIDITY. The commissioners court election order is prima facie evidence of compliance with all provisions necessary to give the order validity or to give the commissioners court jurisdiction to make the order valid.

Sec. 502.037. FREQUENCY OF ELECTIONS. A local option election on a particular issue may not be held in a political subdivision until after the first anniversary of the date of the most recent local option election in that political subdivision on that issue.

[Sections 502.038-502.100 reserved for expansion]

SUBCHAPTER C. HOLDING OF ELECTION

Sec. 502.101. APPLICABILITY OF ELECTION CODE. Except as provided by this chapter, the officers holding a local option election shall hold the election in the manner provided by this code.

Sec. 502.102. ELECTION PRECINCTS. (a) County election precincts shall be used for a local option election to be held in an entire county or in a justice precinct.

(b) Election precincts established by the governing body of the municipality for its municipal elections shall be used for a local option election to be held in a municipality. If the governing body has not established precincts for its municipal elections, the commissioners court shall prescribe the election precincts for the local option election under the law governing establishment of precincts for municipal elections.

Sec. 502.103. ISSUE ON BALLOT. (a) The issue ordered to appear on the ballot for an election ordered by the commissioners court must be the same as the issue applied for and set out in the petition.

(b) The ballot must include the language required under Section 502.035.

Sec. 502.104. COUNTY PAYMENT OF ELECTION EXPENSES. The county shall pay the expense of holding a local option election authorized by this chapter in the county, justice precinct, or municipality in that county except that:

(1) if an election is to be held only within the corporate limits of a municipality located wholly within the county, the county may require the municipality to reimburse the county for all or part of the expenses of holding the local option election;

(2) county payment of the expense of an election to legalize the operation of amusement redemption machines is limited to the holding of one election in a political subdivision during a one-year period; and

(3) county payment of the expense of an election to prohibit the operation of amusement redemption machines is limited to the holding of one election in a political subdivision during a one-year period.

Sec. 502.105. DEPOSIT REQUIRED FOR CERTAIN ELECTIONS; OFFENSE. (a) If a county is not required to pay the expense of a local option election under Section 502.104, the county clerk shall require the applicants for a petition for a local option election to make a deposit before the issuance of the petition.

(b) The deposit must be in the form of a cashier's check in an amount equal to 25 cents per voter listed on the current list of registered voters residing in the county, justice precinct, or municipality where the election is to be held.

(c) The money received shall be deposited in the county's general fund. A refund may not be made to the applicants regardless of whether the petition is returned to the county clerk or the election is ordered.

(d) The county clerk may not issue a petition to the applicants unless a deposit required by this chapter is made.

(e) A person who violates Subsection (d) commits an offense. An offense under this subsection is a misdemeanor punishable by:

(1) a fine of not less than $200 nor more than $500;

(2) confinement in the county jail for not more than 30 days; or

(3) both the fine and confinement.

Sec. 502.106. ELECTION IN CERTAIN MUNICIPALITIES. (a) This section applies only to an election to legalize or prohibit the operation of amusement redemption machines in a municipality that is located in more than one county.

(b) An election to which this section applies shall be conducted by the municipality instead of the counties. For the purposes of an election conducted under this section, a reference in this chapter to:

(1) the county is considered to refer to the municipality;

(2) the commissioners court is considered to refer to the governing body of the municipality;

(3) the county clerk or voter registrar is considered to refer to the secretary of the municipality or, if the municipality does not have a secretary, to the person performing the functions of a secretary of the municipality; and

(4) the county judge is considered to refer to the mayor of the municipality or, if the municipality does not have a mayor, to the presiding officer of the governing body of the municipality.

(c) The municipality shall pay the expense of the election.

(d) An action to contest the election under Section 502.155 may be brought in the district court of any county in which the municipality is located.

[Sections 502.107-502.150 reserved for expansion]

SUBCHAPTER D. PROCEDURE FOLLOWING ELECTION

Sec. 502.151. DECLARATION OF RESULT. (a) On completing the canvass of the election returns, the commissioners court shall make an order declaring the result and cause the clerk of the commissioners court to record the order as provided by law.

(b) In a legalization election, if a majority of the votes cast favor the issue "the legal operation of amusement redemption machines" in the political subdivision, the operation of amusement redemption machines within the boundaries of the political subdivision is legal on the entering of the court's order. The legalization remains in effect until changed by a subsequent local option election held under this code.

(c) In a prohibitory election, if a majority of the votes cast do not favor the issue "the legal operation of amusement redemption machines" in the political subdivision, the court's order must state that the operation of amusement redemption machines within the boundaries of the political subdivision is prohibited effective on the 30th day after the date the order is entered. The prohibition remains in effect until changed by a subsequent local option election held under this chapter.

(d) The local option status of a political subdivision does not change as a result of the election if:

(1) in an election described by Subsection (c), less than a majority of the votes cast do not favor the issue; and

(2) in an election described by Subsection (b), less than a majority of the votes cast favor the issue.

Sec. 502.152. ORDER PRIMA FACIE EVIDENCE. The order of the commissioners court declaring the result of the election is prima facie evidence that all provisions of law have been complied with in giving notice of and holding the election, counting and returning the votes, and declaring the result of the election.

Sec. 502.153. CERTIFICATION OF RESULT. Not later than the third day after the date the result of a local option election has been declared, the county clerk shall certify the result to the secretary of state. The clerk may not charge a fee for this service.

Sec. 502.154. POSTING ORDER PROHIBITING OPERATION. (a) A commissioners court order declaring the result of a local option election and prohibiting the operation of amusement redemption machines within the boundaries of a political subdivision must be published by posting the order at three public places in the county or other political subdivision in which the election was held.

(b) The posting of the order shall be recorded in the minutes of the commissioners court by the county judge. The entry in the minutes or a copy certified under the hand and seal of the county clerk is prima facie evidence of the posting.

Sec. 502.155. ELECTION CONTEST. (a) The enforcement of local option laws in the political subdivision in which an election is being contested is not suspended during an election contest.

(b) The result of an election contest finally settles all questions relating to the validity of that election. A person may not call the legality of that election into question again in any other suit or proceeding.

(c) If an election contest is not timely instituted, it is conclusively presumed that the election is valid and binding in all respects on all courts.

[Sections 502.156-502.200 reserved for expansion]

SUBCHAPTER E. MISCELLANEOUS LOCAL OPTION PROVISIONS

Sec. 502.201. LOCAL OPTION STATUS OF AREA. (a) In a criminal prosecution, all trial courts of this state shall take judicial notice of whether the operation of amusement redemption machines is legal or prohibited in an area.

(b) In an information, complaint, or indictment, an allegation that the operation of amusement redemption machines is prohibited in an area is sufficient, but a different status of the area may be urged and proved as a defense.

Sec. 502.202. CHANGE OF STATUS. Except as provided in Section 502.203, an authorized voting unit that has exercised or may exercise the right of local option retains the status adopted until that status is changed by a subsequent local option election in the same authorized voting unit.

Sec. 502.203. PREVAILING STATUS: RESOLUTION OF CONFLICTS. To ensure that each voter has the maximum possible control over the status of the operation of amusement redemption machines in the area where the voter resides:

(1) the status that resulted from or is the result of a duly called election for a municipality prevails against the status that resulted from or is the result of an election in a justice precinct or county in which the municipality or any part of the municipality is contained; and

(2) the status that resulted from or is the result of an election for a justice precinct prevails against the status that resulted from or is the result of an election in a municipality in which the justice precinct is wholly contained or in a county in which the justice precinct is located.

Sec. 502.204. CHANGE IN PRECINCT BOUNDARIES. (a) When a local option status is in effect as the result of the vote in a justice precinct, the status shall remain in effect until the status is changed as the result of a vote in the same territory that constituted the precinct when the status was established. If the boundaries of the justice precinct have changed since the status was established, the commissioners court shall, for purposes of a local option election, define the boundaries of the original precinct. A local option election may be held within the territory defined by the commissioners court as constituting the original precinct.

(b) Nothing in this section is intended to affect the operation of Section 502.203.

(c) Section 502.104, relating to the payment of local option election expenses, applies to elections held in a territory that is defined in accordance with Subsection (a).

SECTION 2. Chapter 2153, Occupations Code, is amended by adding Subchapter K to read as follows:

SUBCHAPTER K. LICENSE FOR OPERATION OF AMUSEMENT REDEMPTION

MACHINES

Sec. 2153.501. APPLICABILITY. Unless otherwise provided, the provisions of this chapter governing licenses and registration certificates, including penalties and enforcement provisions, apply to a Vendor license and Machine license issued under this subchapter in a political subdivision that has elected to legalize the operation of amusement redemption machines per Chapter 502 of the Elections Code.

Sec. 2153.502. DEFINITIONS. For purposes of this subchapter:

(1) "Machine" means an "Amusement redemption machine" which is a contrivance described by Section 47.01(4)(B), Penal Code but expressly includes electronic, electromechanical, or mechanical contrivances commonly referred to as "Eight-Liners" for which a maximum cash redemption value for any individual pay out cannot exceed two thousand dollars ($2,000).

(2) "Vendor License" means a license issued by the Comptroller of Public Accounts to a person who rents or leases amusement redemption machines to other persons.

(3) "Machine license" - a license issued by the Comptroller of Public Accounts for each Amusement Redemption Machine.

(4) "Premise operator" - a person who operates any amusement redemption machine ("Machine") on any premises.

(5) "Operate" includes displaying, exhibiting, or placing in service.

(6) "Premises" means the area under a common roof or over a common foundation and includes the area where an Amusement Redemption Machine-licensee operates his business.

Sec. 2153.503. VENDOR LICENSE. (a) A person may not rent or lease any amusement redemption machine ("Machine") to another person unless he or she holds a vendor license issued by the Comptroller of Public Accounts ("Comptroller").

(b) An applicant for a Vendor license must file with the Comptroller an application that includes:

(1) the name and address of the applicant;

(2) the name and address of any agent or assignee;

(3) proof of registration with the Secretary of State; and

(4) a statement that the information contained in the application is true and correct.

(5) an application for a Vendor's license must be accompanied by a nonrefundable application fee in the form of a cashier's check, money order, personal check, or other method of payment authorized by the comptroller in an amount equal to the annual renewal fee for a Vendor license.

(c) The initial non-refundable fee to obtain a vendor's license shall be $100,000.

(d) A vendor-licensee shall maintain a record of the location of each amusement redemption machine including:

(1) the make, type, and serial number of the machine as described on its electronic circuit board;

(2) the date the machine was placed in operation; and

(3) the dates of the first and most recent registration of the machine.

(e) All records must be available at all times and be maintained in a format prescribed by the State Comptroller of Public Accounts.

(f) The Vendor license holder and the premise operator must allow the comptroller or a peace officer to enter and inspect the premises where amusement redemption machines are located at any time during hours of operation to ensure compliance with this subchapter.

Sec. 2153.504. MANDATORY DENIAL OR REVOCATION OF VENDOR LICENSE. (a) The comptroller may not issue a Vendor license if the comptroller finds that the license applicant is prohibited from holding a general business license.

(b) The comptroller may not issue or renew a Vendor license if the applicant fails to comply with Section 2153.503.

(c) The comptroller shall revoke the Vendor license of a license holder who refuses to allow the comptroller or a peace officer to enter or inspect a premise where the Amusement Redemption Machine is located, as required by this subchapter.

(d) The comptroller may not issue a Vendor license to a person who has had a Vendor or Machine license revoked under this subsection.

Sec. 2153.505. INFORMATION FROM VENDOR LICENSE APPLICATION. (a) Notwithstanding Section 2153.101 and following the issuance of a Vendor license under this subchapter, the following information in the Vendor license application is a public record and must be posted on the comptroller's Internet website not later than the 10th business day after the date the Vendor license is issued:

(1) the Vendor license number;

(2) the name of the Vendor license holder; and

(3) the physical address of the Vendor license holder.

(b) The comptroller shall provide a method to allow a visitor to the comptroller's Internet website to retrieve by county or municipality the license information posted under Subsection (a).

Sec. 2153.506. MACHINE LICENSE. (a) A person may not operate any amusement redemption machine ("Machine") on any premises unless the person holds a license issued for each Machine under this subchapter for the premises.

(b) A person must hold one license for each Machine located on the premises in addition to any other license or registration certificate the person is required to hold under any other lawful provision.

(c) An applicant for a Machine license must file with the State Comptroller an application that includes:

(1) the name and address of the applicant;

(2) the physical address, including the county, of the premises at which the amusement redemption machines will be operated;

(3) the name and address of the owner of the premises at which the amusement redemption machines will be operated;

(4) the maximum number of amusement redemption machines to be operated on the premises (not to exceed five (5) per premise);

(5) a statement indicating whether the amusement redemption machines to be operated on the premises will be owned, leased, or rented by the applicant;

(6) proof that amusement redemption machines are not leased or rented and proof that the name, address, and general business license or registration certificate number of the person who owns the amusement redemption machines matches the name and address of the Premises business operator;

(7) a financial interest statement that includes the name and residence address of any person, other than a person disclosed under Subdivision (6), who has a financial interest in the operation of the machines on the premises, including the nature, type, and extent of the financial interest; and

(8) a statement that the information contained in the application is true and correct.

(d) A person who submits an application for a Machine license consents to an inspection of the premises where Machines are operated by the comptroller or a peace officer at any time during the Machine's hours of operation to ensure compliance with this subchapter.

Sec. 2153.507. FEES. (a) The annual license fee for each Machine shall be $500.

(b) An application for a Machine license must be accompanied by a nonrefundable application fee in the form of a cashier's check, money order, personal check, or other method of payment authorized by the comptroller in an amount equal to the annual Machine license fee.

Sec. 2153.508. REQUIRED MACHINE LICENSE HOLDER RECORDS. (a) A Machine license holder shall, at all times, prominently display the holder's license at the premises which shall reflect the total number of Machines licensed to be on the Premises for that year.

(b) A Machine license holder shall maintain, on the premises, a record of each amusement redemption machine located on the premises to which the Machine license applies, including:

(1) the make, type, and serial number of the machine as described on its electronic circuit board;

(2) the date the machine was placed in operation;

(3) the dates of the first and most recent registration of the machine;

(4) any change in ownership of the machine.

(5) a daily audit log for each Machine that accurately reflects all daily activity of the Machine; and

(6) a daily maintenance log that accurately reflects any repair/maintenance performed on a Machine.

(c) The Machine license holder must allow the comptroller or a peace officer to enter and inspect the premises where Machines are operated at any time during hours of operation to ensure compliance with this subchapter.

(d) All records must be available at all times and be maintained in a format prescribed by the State Lottery Commission and or the State Comptroller.

Sec. 2153.509. MANDATORY DENIAL OR REVOCATION OF MACHINE LICENSE. (a) The comptroller may not issue a Machine license if the comptroller finds that the license applicant or any person required to be listed on the financial interest statement under Section 2153.506 (c)(7) is prohibited from holding a general business license under Section 2153.3062.

(b) The comptroller may not issue or renew a Machine license if the applicant fails to comply with Section 2153.506.

(c) The comptroller shall revoke the Machine license of a license holder who refuses to allow the comptroller or a peace officer to enter or inspect the premises where machines are operated as required by this subchapter.

(d) The comptroller may not issue a Machine license to a person who has had a Machine license revoked (without subsequent reinstatement) under this subsection.

Sec. 2153.510. INFORMATION FROM MACHINE LICENSE APPLICATION. (a) Notwithstanding Section 2153.101 and following the issuance of a Machine license under this subchapter, the following information in the Machine license application is a public record and must be posted on the comptroller's Internet website not later than the 10th business day after the date the Machine license is issued:

(1) the Machine license number;

(2) the name of the Machine license holder;

(3) the physical address, including the county, of the premises designated in the Machine license; and

(4) the names of any person included in the financial interest statement required under Section 2153.506.

(b) The comptroller shall provide a method to allow a visitor to the comptroller's Internet website to retrieve by county or municipality the license information posted under Subsection (a).

Sec. 2153.511. CRIMINAL PENALTY. (a) A person commits an offense if the person:

(1) knowingly operates or allows the operation of more than five amusement redemption machines on a single premises;

(2) knowingly operates or allows the operation of amusement redemption machines on a premise for which a machine license is not in effect; or

(3) fails to display a Machine license as required by Section 2153.506.

(4) fails to maintain records as required in Section 2153.503 or 2153.508.

(b) An offense under this section is a state jail felony, except that an offense under this section is a third degree felony if it is shown on the trial of the offense that at the time the offense was committed the person possessed on the premises one or more devices in violation of Section 47.06, Penal Code.

(c) It is presumed that a person intended to commit an offense under this section if:

(1) any amusement redemption machines are operated by the person on premises for which a Machine license is not prominently displayed;

(2) an amusement redemption machine operated on the premises is not included in the records maintained under Section 2153.503 and 2153.505; or

(3) the records required under Section 2153.503(d) are not available for inspection by the comptroller or a peace officer during the hours of operation of the premises.

Sec. 2153.512. REGULATION OF PREMISES AND OPERATIONS. (a) The Texas State Lottery Commission ("the Commission") shall adopt rules applicable to the regulation and operation of Premises where amusement redemption machines are located as the Commission finds necessary for the protection of the health, safety, morals, and general welfare of this state and for the reputation of the State's gaming industry. For the purposes of this Act, the Premises shall be permitted to operate within the geographic boundaries of a Texas county only after the subject county commissioners have called vote and authorized the subject Premises to operate within its boundaries.

(b) Premises shall not be located within 1000 feet of a school, church, or park.

(c) Premises shall use only non-digital signs, not to exceed 4'x8' in size.

(d) Alternatively to subsections (a-c), premises may default to the standards and specifications of size, location, and signage permitted under the Unified Development Code of any municipality lawfully incorporated in the State of Texas that may exist in a county authorizing the premises to operate within its jurisdiction.

Sec. 2153.513. ANNUAL BUSINESS AUDIT BY TEXAS STATE LOTTERY COMMISSION. (a) The Texas State Lottery Commission shall perform annual business operations audits on any Machine licensees.

(b) The audits shall be consistent with rules promulgated by the Commission.

(c) Failure of a licensee to cooperate with the Commission may result in the revocation of any and all licenses at the sole discretion of the Commission.

(d) Notwithstanding the discretion of the Commission, a licensee may appeal findings of the Commission to a District Court with jurisdiction over the subject Premises.

Sec. 2153.514. ALLOCATION OF FEES AND REVENUE. (a) The State shall be allocated the entirety of the Vendor and Machine license application fee for maintenance of the state run program.

(b) The State shall be allocated the entirety of the annual vendor and machine renewal fees.

(c) The County in which the premise is located shall be allocated 40% of a Vendor licensee's post audit gross revenue share.

(d) Failure of a licensee to allocate 40% of the revenue share to the county in which the premises is located may result in a revocation of any or all of licensee's licenses at the sole discretion of the Commission.

Sec. 2153.515. AMUSEMENT REDEMPTION MACHINE AUDIT BY TEXAS STATE LOTTERY COMMISSION. (a) Machines shall be at all times capable of real time electronic interface for future and/or real time downloading and auditing by the Commission; and (b) Machines must be of the type that is at all times subject to manual audit and accounting to the Commission. (c) a Machine incapable of being audited by the Commission shall have its Machine license revoked until such time as the Commission reinstates the license in its sole discretion.

Sec. 2153.516. CONSTRUCTION; APPLICABILITY OF OTHER LAWS. (a) Nothing in this chapter may be construed to implicitly repeal or modify existing state laws with respect to gambling, except that gaming devices or slot machines are not prohibited by another law if conducted as authorized under this chapter.

(b) To the extent of any inconsistency between Chapter 2003, Government Code, and this chapter or a commission rule governing gaming devices, this chapter or the lottery commission rule controls in all matters related to gaming devices, including hearings before the State Office of Administrative Hearings.

SECTION 3. Section 2153.153, Occupations Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) In addition to the information prescribed by Subsection (a), an application for a general business, import, or repair license must include a statement indicating whether a machine associated with the application is an amusement redemption machine.

SECTION 4. This Act takes effect September 1, 2009.