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SECTION 6. Subchapter E,
Chapter 234, Local Government Code, as added by Chapter 1284 (H.B. 2123),
Acts of the 83rd Legislature, Regular Session, 2013, is amended by adding
Sections 234.1361, 234.1362, 234.1363, 234.1364, 234.1365, 234.1366, and
234.1367 to read as follows:
Sec. 234.1361. DISPLAY OF
GAME ROOM PERMITS. An owner or operator of a game room shall display a
current game room permit on the game room premises. The permit must be
displayed in plain sight in a common area accessible to the public without
entrance to a controlled area of the business.
Sec. 234.1362. RECORDS
REQUIRED. (a) An owner or operator of a game room shall maintain on the
premises:
(1) a record for each
employee that includes:
(A) the employee's name,
address, date of birth, state identification number or social security
number, job function, and W-2 or W-4 form;
(B) a copy of the
employee's application to work with the game room and a copy of the
employee's I-9 filed for employment eligibility verification with the
Department of Homeland Security; and
(C) a photograph of the
employee;
(2) a daily register that
includes the name, date of birth, state identification number or social
security number, and job function of each employee present at the
establishment that day; and
(3) a copy of the county
and state tax record forms for each amusement redemption machine on the
premises that includes the name of the manufacturer, the serial number, the
type of machine, and the serial number of the tax permit for a
coin-operated machine and, if applicable, the serial number for the county
tax permit, with the year of expiration for any tax permit.
(b) An owner or operator
who violates Subsection (a) shall be assessed a civil penalty of not more
than $10,000 for each record required under this section that is missing.
(c) The game room shall
preserve the daily register required by Subsection (a)(2) for at least 90
days after the date the register was made. An owner or operator who
violates this subsection may be assessed an administrative penalty in the
amount of $500 for each register required to be preserved that is missing.
Sec. 234.1363. PROHIBITED
EMPLOYMENT. (a) An owner or operator of a game room may not knowingly
employ any person who has been previously convicted of, or entered a plea
of nolo contendere or guilty or received deferred adjudication for, an
offense involving any conduct involving gambling violations prohibited
under Chapter 47, Penal Code.
(b) An owner or operator
of a game room shall conduct a criminal background check on each potential
employee.
(c) Failure to comply
with this section is a violation and punishable by a civil penalty assessed
against an owner or operator not to exceed $10,000 per prohibited employee
working at the game room and per employee working at the game room without
being subjected to a criminal background check.
(d) Each day a violation
of this section continues or occurs constitutes a separate violation for
purposes of imposing a penalty under Section 234.137.
Sec. 234.1364. AMUSEMENT
REDEMPTION MACHINES; PERMITS AND VIOLATIONS. (a) An owner or operator of a
game room shall obtain from the county a permit for each amusement
redemption machine on the game room premises in accordance with Chapter
2153, Occupations Code.
(b) The owner or operator
of a game room shall pay an annual fee in an amount equal to 25 percent of
the state's annual fee per machine.
(c) Each amusement
redemption machine permit application shall specify on the application the
physical location of the amusement redemption machine.
(d) If a permit is not
obtained for an amusement redemption machine, the county tax assessor-collector's
office shall lock the machine, and it may not be used until the owner
purchases a permit for the machine by paying a $100 permit fee and a $5
release fee per machine.
(e) If a county
compliance officer is not allowed entrance to a game room during business
hours, a civil penalty not to exceed $10,000 for each date of denial will
be assessed on the owner or operator of the game room.
(f) A county may assess a
civil penalty under Section 234.137 on the owner or operator of a game room
for each machine:
(1) that is not
registered with a valid current year video tax stamp decal prominently
displayed on the machine; and
(2) used for illegal
gambling.
(g) If a law enforcement
agency determines through investigation that a game room is operating in
violation of Chapter 47, Penal Code, every amusement redemption machine or
gambling device in the game room is considered in violation. A civil
penalty not to exceed $10,000 per machine or device may be assessed on the
owner or operator of the game room.
(h) It is not a defense
to prosecution under this section that the owner is not doing business in
the owner's name, is not leasing property in the owner's name, or only has
an ownership interest in the business.
Sec. 234.1365. GROUNDS
FOR DENIAL, REVOCATION, OR SUSPENSION OF PERMIT. (a) Any violation of
this subchapter or regulations adopted under this subchapter or failure to
meet all requirements of this subchapter and regulations adopted under this
subchapter is grounds for denial, revocation, or suspension of a permit to
operate a game room. If a game room's permit has been revoked, denied, or
suspended, the game room may not be operated during the pendency of any
appeal from the revocation, denial, or suspension.
(b) The sheriff shall
deny a game room permit on a finding by the sheriff that the applicant:
(1) has been previously
convicted of any of the following offenses:
(A) gambling, gambling
promotion, keeping a gambling place, communicating gambling information,
possession of gambling devices or equipment, or possession of gambling
paraphernalia under Chapter 47, Penal Code;
(B) forgery, credit card
abuse, or commercial bribery under Chapter 32, Penal Code;
(C) any criminal offense
under Chapter 34, Penal Code;
(D) criminal attempt, conspiracy,
or solicitation to commit any of the offenses listed in Paragraphs (A)-(C)
or any other offense under the laws of another state or of the United
States that, if committed in this state, would have been punishable as one
or more of the offenses; or
(E) a criminal offense
under Subchapter B, Chapter 352, if:
(i) less than two years
have elapsed since the later of the date of conviction or the date of
release from confinement imposed for the conviction of a misdemeanor
offense; or
(ii) less than five years
have elapsed since the later of the date of conviction or the date of
release from confinement for the conviction of a felony offense;
(2) makes a misleading
statement in the application for the game room permit;
(3) is younger than 18
years of age;
(4) has had a game room
permit revoked within the 180-day period immediately preceding the date the
application was filed;
(5) is delinquent in the
payment to the county of taxes, fees, fines, or penalties assessed or
imposed regarding the operation of a game room;
(6) failed to pay the
application or renewal fee required by this subchapter; or
(7) has not had the
required fire and life safety inspection by a fire safety official within
60 days immediately preceding the date the application was filed.
(c) The sheriff may
initiate a proceeding to revoke or suspend a game room permit if:
(1) any person commits on
the premises of the game room an offense listed in Subsection (b)(1);
(2) the applicant
provides false, fraudulent, or untruthful information on the original or
renewal application;
(3) the game room permit
should not have been issued under the requirements of this subchapter or
regulations adopted under this subchapter;
(4) the owner or operator
of the game room fails to comply with corrections ordered by a fire safety
official with authority to conduct fire and life safety inspections in the
county in which the game room is located; or
(5) the owner is
convicted of an offense listed in Subsection (b)(1).
(d) The sheriff may not
issue a game room permit or temporary game room permit until final
disposition of any case involving an offense listed in Subsection (b)(1)
that is pending or arises during the application process.
Sec. 234.1366. REVOCATION
OR SUSPENSION OF PERMIT. (a) If an event providing a basis for revocation
or suspension of a game room permit under Section 234.1365 occurs, the
sheriff shall send to the game room permit holder or the holder's
designated agent a written notice of revocation or suspension. The notice
must set out the reasons for the action. The revocation or suspension is
final on the fifth day after the date notice is issued.
(b) The game room permit
holder or the holder's designated agent may appear before a hearing
examiner appointed by the commissioners court of the county in which the
game room is located on written request submitted to the sheriff not less
than the 10th business day after the date the notice is delivered.
(c) The hearing examiner
may not have participated in any investigation of the alleged grounds for
the revocation or suspension. The hearing must be held not later than the
14th business day after the date the request for hearing is submitted.
(d) The game room permit
holder and the sheriff are entitled to present evidence, cross-examine
witnesses, and be represented by legal counsel. The rules of evidence for a
civil, nonjury trial apply to the hearing.
(e) If the facts
presented at the hearing support a finding that grounds exist for revoking
or suspending a game room permit, the hearing examiner may request that the
parties present relevant evidence to show whether suspension or revocation
of the game room permit is more appropriate. Reasonable conditions may be
attached to a game room permit by the hearing examiner based on the evidence
presented at the hearing.
(f) If the hearing
examiner determines that a game room permit should be revoked, the hearing
examiner shall issue a written order revoking the game room permit that is
effective immediately.
(g) If the hearing
examiner determines based on the nature of the violations that a suspension
instead of a revocation is appropriate, operation of the game room permit
may be suspended for a period not to exceed six months. The hearing
examiner shall issue a written order suspending the game room permit and
attaching any applicable conditions that is effective on the date the owner
receives notice.
(h) On a finding that
Section 234.1365(c)(3), (4), or (5) has been violated, the hearing
examiner shall revoke the game room permit.
(i) Revocation takes
effect immediately on notice by the sheriff, subject to reinstatement
following an appeal, if:
(1) immediate action is
required to protect the public from injury or imminent danger; or
(2) a game room permit
was issued based on a misrepresentation in the application, and the game
room permit would not have been issued otherwise.
Sec. 234.1367. HEARING.
(a) An applicant may file a written request for a hearing with the
sheriff's office's game room permit administrator not later than the 20th
day after the date of the denial, revocation, or suspension. The applicant
waives the right to a hearing if the request is not timely received by the
administrator.
(b) The applicant may
reapply for a game room permit if the applicant makes the changes
necessary for the proposed game room to be in compliance with this
subchapter and regulations adopted under this subchapter.
(c) The decision of the
hearing examiner is final. The losing party may appeal the decision by
filing a petition in a district court in the county not later than the 30th
day after the date of the decision. Judicial review is under the
substantial evidence rule, and the judgment of the district court may be
appealed, as in other civil cases.
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