By: Patrick  S.B. No. 433
         (In the Senate - Filed February 7, 2013; February 13, 2013,
  read first time and referred to Committee on Intergovernmental
  Relations; April 15, 2013, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 5, Nays 0;
  April 15, 2013, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 433 By:  Nichols
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the regulation of game rooms in certain counties;
  providing penalties; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 234, Local Government Code, is amended
  by adding Subchapter E to read as follows:
  SUBCHAPTER E.  GAME ROOMS
         Sec. 234.131.  DEFINITIONS. In this subchapter:
               (1)  "Amusement redemption machine" means any
  electronic, electromechanical, or mechanical contrivance designed,
  made, and adopted for bona fide amusement purposes that rewards the
  player exclusively with noncash merchandise, prizes, toys, or
  novelties, or a representation of value redeemable for those items,
  that have a wholesale value available from a single play of the game
  or device of not more than 10 times the amount charged to play the
  game or device once or $5, whichever amount is less.
               (2)  "Game room" means a for-profit business located in
  a building or place that contains six or more amusement redemption
  machines.
               (3)  "Game room owner" means a person who:
                     (A)  has an ownership interest in, or receives the
  profits from, a game room or an amusement redemption machine
  located in a game room;
                     (B)  is a partner, director, or officer of a
  business, company, or corporation that has an ownership interest in
  a game room or in an amusement redemption machine located in a game
  room;
                     (C)  is a shareholder that holds more than 10
  percent of the outstanding shares of a business, company, or
  corporation that has an ownership interest in a game room or in an
  amusement redemption machine located in a game room;
                     (D)  has been issued by the county clerk an
  assumed name certificate for a business that owns a game room or an
  amusement redemption machine located in a game room;
                     (E)  signs a lease for a game room;
                     (F)  opens an account for utilities for a game
  room;
                     (G)  receives a certificate of occupancy or
  certificate of compliance for a game room;
                     (H)  pays for advertising for a game room; or
                     (I)  signs an alarm permit for a game room.
               (4)  "Operator" means an individual who:
                     (A)  operates a cash register, cash drawer, or
  other depository on the premises of a game room or of a business
  where the money earned or the records of credit card transactions or
  other credit transactions generated in any manner by the operation
  of a game room or activities conducted in a game room are kept;
                     (B)  displays, delivers, or provides to, or takes
  orders from, a customer of a game room for merchandise, goods,
  entertainment, or other services offered on the premises of a game
  room;
                     (C)  acts as a door attendant to regulate entry of
  customers or other persons into a game room; or
                     (D)  supervises or manages other persons at a game
  room in the performance of an activity listed in this subdivision.
         Sec. 234.132.  APPLICABILITY. This subchapter applies only
  to a county:
               (1)  with a population of four million or more; or
               (2)  with a population of less than 25,000 that is
  adjacent to the Gulf of Mexico and is within 50 miles of an
  international border.
         Sec. 234.133.  AUTHORITY TO REGULATE. To promote the public
  health, safety, and welfare, the commissioners court of a county
  may regulate the operation of game rooms and may:
               (1)  restrict the location of game rooms to specified
  areas of the county, including the unincorporated area of the
  county;
               (2)  prohibit the location of a game room within the
  distance prescribed by the commissioners court of a school, regular
  place of religious worship, or residential neighborhood; or
               (3)  restrict the number of game rooms that may operate
  in a specified area of the county.
         Sec. 234.134.  LICENSES OR PERMITS. (a)  A county may
  require that an owner or operator of a game room obtain a license or
  permit or renew a license or permit on a periodic basis to operate a
  game room in the county. An application for a license or permit
  must be made in accordance with regulations adopted by the county.
         (b)  Regulations adopted under this section may provide for
  the denial, suspension, or revocation of a license or permit.
         (c)  A district court has jurisdiction of a suit that arises
  from the denial, suspension, or revocation of a license or other
  permit by a county.
         Sec. 234.135.  FEES. A county may impose a fee not to exceed
  $1,000 on an applicant for a license or permit or for the renewal of
  the license or permit required under this subchapter.  The fee must
  be based on the cost of processing the application and
  investigating the applicant.
         Sec. 234.136.  INSPECTION. (a)  A peace officer or county
  employee may inspect a business in the county to determine how many
  amusement redemption machines that are subject to regulation under
  this subchapter are located on the premises of the business.
         (b)  A peace officer or county employee may inspect any
  business in which six or more amusement redemption machines are
  located to determine whether the business is in compliance with
  this subchapter or regulations adopted under this subchapter.
         (c)  A person violates this subchapter if six or more
  amusement redemption machines are located on the premises of the
  business and the person fails to allow a peace officer or county
  employee to conduct an inspection under this section.
         Sec. 234.137.  INJUNCTION; CIVIL PENALTY. (a)  A county may
  sue in district court for an injunction to prohibit the violation or
  threatened violation of this subchapter or a regulation adopted
  under Section 234.133.
         (b)  A person who violates this subchapter or a regulation
  adopted under Section 234.133 is liable to the county for a civil
  penalty of not more than $10,000 for each violation. Each day a
  violation continues is considered a separate violation for purposes
  of assessing the civil penalty under this subsection.  A county may
  bring suit in district court to recover a civil penalty authorized
  by this subsection.
         (c)  The county is entitled to recover reasonable expenses
  incurred in obtaining injunctive relief, civil penalties, or both,
  under this section, including reasonable attorney's fees, court
  costs, and investigatory costs.
         Sec. 234.138.  CRIMINAL PENALTY. (a)  A person commits an
  offense if the person intentionally or knowingly operates a game
  room in violation of a regulation adopted under Section 234.133.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 234.139.  CUMULATIVE EFFECT. Authority under this
  subchapter is cumulative of other authority that a county has to
  regulate game rooms and does not limit that authority.
         Sec. 234.140.  EFFECT ON OTHER LAWS. (a)  This subchapter
  does not legalize any activity prohibited under the Penal Code or
  other state law.
         (b)  A person's compliance with this subchapter, including
  operating a game room under a license or permit issued under this
  chapter, is not a defense to prosecution for an offense under
  Chapter 47, Penal Code.
         (c)  A person who is subject to prosecution under Section
  234.138 and any other law may be prosecuted under either or both
  laws.
         SECTION 2.  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, 2013.
 
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