HomeMy WebLinkAboutORD 14-023ORDINANCE NO.14-023
ENTITLED AN ORDINANCE AMENDING CHAPTER 6 OF THE CODE OF
ORDINANCES OF BEAUMONT, TEXAS, BY ADDING ARTICLE 6.10
PROVIDING FOR THE LICENSING AND PERMITTING OF GAMING SITES
AND GAMING MACHINES BEING OPERATED IN THE CITY OF
BEAUMONT; PROVIDING FOR SEVERABILITY; PROVIDING FOR
REPEAL; PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE
DATE
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
THAT Chapter 6 of the Code of Ordinances be and the same is hereby amended by
adding a new Article 6.10 to read as follows:
ARTICLE 6.10 GAMING
Whereas, the necessity of this ordinance is to protect the public safety, health and
welfare of the citizens of the city of Beaumont; and,
Whereas, the City of Beaumont recognizes the Texas OCC Code Chapter 2153
provides facilities housing coin operated machines must be licensed by the State
Comptroller of Public Accounts and comply with state regulations; and,
Whereas, Section 2153.451 of the Texas OCC Code specifically authorizes a
municipality to impose an occupational tax on coin operated machines in this state; and,
Whereas, the Police Department has discovered there are gaming sites within the
city which operate in violation of state law providing for the permitting and licensing of coin
operated machines in this state.
Division 1. Generally
Sec. 6.10.001 Definitions.
For the purposes of this Article, the following definitions shall apply unless the context
clearly indicates or requires a different meaning:
Applicant. The applicant is the intended operator, occupant or owner of the gaming site
and/or gaming machines.
City Manager. The City Manager of the City of Beaumont or the designated representative
of the City Manager.
Chief Building Official. The Chief Building Official for the City of Beaumont or the
designated representative of the Chief Building Official.
Church. A building, in possession of a certificate of occupancy, in which persons regularly
assemble for purposes of religious worship, intended primarily for purposes connected with
such worship or for propagating a particular form of religious belief.
Coin Operated Machine. Any kind of machine or device operated by or with a coin or other
United States currency, metal slug, token, electronic card, or check including a skill or
pleasure coin operated machine.
Fire Chief. The Chief of the City of Beaumont Fire Department or the designated
representative of the Chief of the Fire Department.
Gaming Machine. Any coin operated machine or electronic, electromechanical or
mechanical contrivance designed, made, and adopted solely for bona fide amusement
purposes if the contrivance rewards the player exclusively with non-cash 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
ten (10) times the amount charged to play the game or device once or $5.00, whichever
is less. Not included in this definition is a machine used only for entertainment purposes,
as entertainment is defined in §372.1701 of the Texas Administrative Code.
Gaming Site. Any location that displays, exhibits, or maintains for public patronage –
through general admission or membership— any game machine.
Hospital. A building, in possession of a certificate of occupancy, where the primary
function is to provide medical and/or surgical treatment to sick or injured people and as
defined by the Texas Occupations Code Chapter 241.
Occupant. An individual who occupies or exercises direct control of the premises where
a gaming site is located.
Operator. The manager or other natural person principally in charge of the gaming site.
Owner. An individual who has an ownership interest in the premises of the gaming site or
receives an economic or monetary benefit from the gaming site.
Permit. A current, valid permit issued by the City Manager pursuant to the terms of this
Article to an operator of a gaming site.
Permit Holder. A person who has been issued a valid permit pursuant to this Article.
Police Chief. The Chief of Police of the City of Beaumont Police Department or the
designated representative of the Chief of Police.
School. A building, in possession of a certificate of occupancy, where persons regularly
assemble for the purpose of instruction or education together with the playgrounds, stadia
and other structures or grounds used in conjunction therewith. The term is limited to:
(1) public and private schools used for primary or secondary education, in which any
regular kindergarten or grades one through 12 classes are taught; and
(2) special educational facilities in which students who have physical or learning
disabilities receive specialized education in lieu of attending regular classes in
kindergarten or any of grades one through 12.
Skill or Pleasure Coin Operated Machine. Any kind of coin operated machine that
dispenses, or is used or is capable of being used to dispense or afford, amusement,
skill, or pleasure, or is operated for any purpose, other than for dispensing only
merchandise, music, or service. This includes:
(1) a marble machine, marble table machine, marble shooting machine, miniature
racetrack machine, miniature football machine, miniature golf machine,
miniature bowling machine, billiard or pool game, or machine or device that
dispenses merchandise or commodities or plays music in connection with or in
addition to dispensing skill or pleasure; and
(2) does not include an amusement machine designed exclusively for a child.
Sec. 6.10.002 Declaration of findings.
The necessity of the public interest forthe provisions and prohibitions hereinafter contained
and enacted is declared as a matter of legislative determination and public policy, and it
is further declared that the provisions and prohibitions contained in sections 6.10.001
through 6.10.021 are in the furtherance of and for the purpose of securing and promoting
the public health, comfort, convenience, safety, welfare and prosperity of the city and its
inhabitants.
Division 2. Permits
Sec. 6.10.003 Permit.
(a) It shall be unlawful for any operator, occupant or owner of the gaming site to
display, exhibit, or maintain for public patronage, or otherwise keep for operation by
the public, any gaming machine without first obtaining a permit issued under the
terms and conditions of this Article.
(b) It shall be unlawful for any operator, occupant or owner of the gaming site to
operate any gaming site located within the city unless the permit issued for that site
is posted at or near the principal public entrance to the gaming site in such a
manner that it will be conspicuous to patrons who enter the gaming site.
(c) In any prosecution under subsection (a) above, it shall be presumed that there was
no permit at the time of the alleged offense, unless a permit was then and there
posted as provided in subsection (b).
(d) A machine that provides the possibility, probability and/or certainty of dispensing a
non-cash prize, toy or novelty with a value of not more than ten (10) times the
amount charged to play the game or device once, or $5.00, whichever is less at the
time of play, but does not allow the player to amass or accumulate points, tokens
or any other method to accumulate credits towards larger or greater value non-cash
merchandise prizes, toys or novelties is exempt from the requirements of this
Article.
Sec. 6.10.004 Signage.
(a) Notwithstanding section 28.04.003 of the Code of Ordinances or any other city
ordinance, code or regulation to the contrary, it shall be unlawful for the operator,
occupant or owner of a gaming site not to clearly identify the site with a sign as
required by this Article.
(b) The sign displayed should be one provided by the City with a white background with
black Arial font lettering of 1.5 inches.
(c) The sign must clearly read "GAMING SITE" and may not include any
advertisements.
Sec. 6.10.005 Machine registration requirements.
Gaming machines, as defined in this Article, shall be registered as follows:
(a) The permit holder, owner, or operator is required to maintain on its gaming site a
complete inventory, along with serial numbers or equivalent identification, as set
forth in subsections (d) and (e) below at all times. The initial application for permit
shall include a certificate of the inventory, along with serial numbers or equivalent
identification, as set forth in subsections (d) and (e) below, of the machines that the
permit holder intends to put into operation when the gaming site begins its business
activities.
(b) Each renewal permit application shall contain a certificate of inspection of updated
inventory, along with serial numbers or equivalent identification, as set forth in
subsections (d) and (e) below, of the gaming machines that the permit holder
intends to put into operation when the gaming site begins its business activities
under the renewal license.
(c) Before a new gaming machine is put into operation at the gaming site, the permit
holder shall notify the Chief of Police of the addition of the machine to the inventory
and update its inventory accordingly.
(d) Upon review of the inventory of machines under subsections (a), (b) and (c) above,
the Chief of Police shall enter each machine into the gaming machine registry that
the City shall create. For each machine registered, the City Manager shall cause to
be issued and delivered to permit holder for each machine within seven (7) days of
the notification required under subsection (c) a numbered metal or plastic decal.
The registration decal for each machine shall be permanently affixed thereto and
in plain view at all times. Registration decals are not transferable. The failure of any
machine to display a current registration decal shall be a violation of this section and
subject to enforcement action by the City.
(e) The inventory of machines under subsections (a), (b) and (c) above shall provide
the following information: the manufacturer(s); the serial number(s); common name,
type or description of the game played on the machine. The registration decal shall
contain the inventory number of the machine.
Sec.6.10.006 Application; term.
(a) A permit issued under this Article does not vest any property rights in the applicant
or permit holder; except to display, exhibit, or maintain for public patronage the use
of any gaming machines in accordance with the terms and conditions of this Article.
(b) A gaming permit is non -transferable and non-refundable.
(c) A permit shall be issued for a twelve (12) month term beginning on the date of
issuance.
(d) Any false statement made by an applicant on the application shall subject the permit
to immediate suspension pending revocation and the applicant may be prosecuted
as a violation of section 37.10 of the Texas Penal Code (tampering with
governmental records), a third degree felony.
(e) An application for permit shall be made by the intended owner or operator of the
gaming site.
(f) The application shall be submitted with a fifty dollar ($50.00) processing fee for a
site with 5 or fewer machines to the City Manager on a form provided by the City for
such purpose. For a site with more than 5 machines, the application shall be
submitted with a one hundred dollar ($100.00) processing fee to the City Manager
on a form provided by the City for such purpose. The application must be completed
for each location sought to be permitted. The following information is required in the
application:
(1) Name, address, and telephone number of the applicant, including the trade
name by which applicant does business and the street address of the proposed
gaming site, and, if incorporated, the name registered with the Secretary of
State;
(2) Name, address, and telephone number of the operator of the gaming site to be
permitted;
(3) Number of gaming machines on the gaming site and serial number of each
machine;
(4) Whether a previous permit of the applicant, or, if applicable, a corporate officer
of the applicant, has been revoked within two (2) years of filing of the
application; and
(5) A statement that all the facts contained in the application are true and correct.
Sec.6.10.007 Renewal.
(a) An application for renewal must be submitted thirty (30) days before the expiration
date of the existing permit to the City Manager on a form provided by the City for
such purpose with a fifty dollar ($50.00) processing fee for a site with 5 or fewer
machines. For a site with more than 5 machines, the application for renewal shall
be submitted with a one hundred dollar ($100.00) processing fee to the City
Manager on a form provided by the City for such purpose.
(b) Applications for existing gaming sites submitted after the expiration date of the
previous permit will be considered and processed as a new applicant.
Sec.6.10.008 Grounds for denial or revocation.
(a) The City Manager shall refuse to approve the issuance or renewal of a permit or
shall revoke a permit for one or more of the following reasons:
(1) A false statement as to a material matter made in an application for a permit;
(2) Revocation of a permit, pursuant to this Article, of the applicant or corporate
officer of the applicant within two (2) years preceding the filing of the
application;
(3) The applicant or a co-owner for such permit has, within the past ten (10)
years, been convicted of a crime involving moral turpitude or gambling.
(d) The City Manager shall not issue or renew a permit under this Article and shall
suspend or revoke a permit if it is determined that the applicant or permit holder is
indebted to the City for any fee, costs, penalties, or delinquent taxes at the time of
application or renewal.
(e) The City Manager shall have the authority to deny or revoke all permits issued
under this provision for any violation of this Article by giving written notice, stating
the reason for denial or revocation, and same shall be cancelled ten (10) days from
the date of receipt of such notice.
(f) No permit shall be issued within a period of one (1) year to anyone whose permit
has been revoked, except at the discretion of the City Council.
Sec.6.10.009 Appeal from denial or revocation.
If the City Manager denies, refuses to approve the issuance of a permit or the renewal of
a permit to an applicant, or revokes a permit issued under this Article, this action is final
unless the applicant or permit holder, within ten (10) days after the receipt of written notice
of the action, files a written appeal to the City Council by delivering said notice to the City
Clerk setting forth specific grounds for the appeal. The City Council shall either hear the
appeal or select a hearing officer to preside over the appeal hearing. The City Council or
hearing officer shall within fourteen (14) days of the notice of appeal grant a hearing to
consider the action. The City Council and hearing officer have the authority to sustain,
reverse, or modify the action appealed. The decision of either the City Council or hearing
officer is final.
Sec. 6.10.010 Transfer of permit.
A permit issued under the provisions of this Article shall be specific to the site and personal
to the holder thereof and shall not be transferable or assignable.
Sec. 6.10.011 Replacement permits or decals.
(a) A replacement permit shall be issued to the original applicant for one lost,
destroyed, or mutilated after a written application is submitted with a fee of fifteen
dollars ($15.00) to the City Manager on a form provided by the City for such
purpose.
(b) A replacement permit shall bear the same expiration date as the one it replaces.
(c) A new or replacement decal issued to a permit holder shall be fifteen dollars
($15.00).
Sec. 6.10.012 Occupation tax.
(a) Every permit holder who controls, possesses, exhibits, or displays, or who permits
to be exhibited or displayed in the city for public patronage or operation by the
public, any gaming machine shall pay, and is hereby levied on each such gaming
machine, except those exempt under this Article, an annual occupation tax in the
amount equal to one-fourth (1/4) of the current state occupation tax. All occupation
taxes for gaming machines are payable annually in advance. The fee for issuing a
replacement occupation tax receipt for one lost, destroyed or mutilated shall be
fifteen dollars ($15.00).
(b) Since the tax is payable in advance on an annual calendar year basis, the following
pro rata tax rate schedule will be applicable to a gaming machine which is first
exhibited or displayed for commercial use within the city during any quarter of the
calendar year:
(1) First quarter: January 1 to March 31 - an amount equal to the applicable local
annual occupation tax;
(2) Second quarter: April 1 to June 30 - an amount equal to three-quarters (3/4)
of the applicable local annual occupation tax;
(3) Third quarter: July 1 to September 30 - an amount equal to one-half ('/2) of
the applicable local annual occupation tax; and
(4) Fourth quarter: October 1 to December 31 - an amount equal to one-quarter
(1/4) of the applicable local annual occupation tax.
In computing any tax payable under the aforesaid pro rata tax rate schedule,
amounts calculated thereunder shall be rounded to the next higher full cent amount as
required.
Division 3. Inspections
Sec.6.10.013 Inspections; compliance.
(a) The gaming site shall conform to all zoning ordinances, building codes and fire
prevention codes of the City and comply with all federal, state and local ordinances
and regulations relevant to the operations of a gaming site or gaming machine.
(b) The Fire Chief, the Chief Building Official, all law enforcement, or code enforcement
officials shall have the right to immediate access to the area of the gaming site
where such machines are located at any time during normal business hours or
when the site is occupied for the purpose of inspecting said gaming site and
enforcement of the terms of this Article and state law.
(c) An owner, operator, occupant, or any person who does not allow immediate access
to the area of the gaming site where such machines are located to officials for the
purpose of inspection or enforcement commits an offense.
Sec.6.10.014 Prohibited locations.
(a) No gaming sites shall be permitted to be placed within three hundred (300) feet of
any church, hospital or school.
(b) The measurement of the distance between the place of business and the church,
hospital or school shall be determined by measurements made in a straight line,
without regard to intervening structures or objects, from the nearest point on the
applicant's property line to the nearest point of the church, hospital or school
property line.
Sec.6.10.015 Responsibility of permit holder.
A permit holder hereunder shall not permit any of the following activities within the
permitted gaming site:
(a) The sale, purchase, possession or consumption of any alcoholic beverages as the
same is permitted by the Texas Alcoholic Beverage Code, unless the gaming site
is licensed under the provisions of said code and the ordinances of the City for the
sale, purchase, possession, or consumption of alcoholic beverages.
(b) The operation of any gaming machine by a person younger than twelve (12) years
of age except between the hours of 9:00 a.m. and 10:00 p.m.
(c) The operation of any gaming machine by any person twelve (12) years of age or
older and under seventeen (17) years of age except between the hours of 9:00 a.m.
and 11:00pm, Sunday through Thursday, and 9:00 a.m. and 12:00 a.m. (midnight),
Friday and Saturday.
Division 4. Enforcement
Sec. 6.10.016 Violations of existing laws not authorized.
Nothing herein shall be construed or have the effect to license, permit, authorize or legalize
any machine, device, table, or gaming machine, the keeping, exhibition, operation, display
or maintenance of which is illegal or in violation of any ordinance of the City, any section
of the Penal Code of this state, or the Constitution of this state.
Sec. 6.10.017 Penalties.
(a) It shall be unlawful for an owner, operator or permit holder to exhibit or display, or
permit to be exhibited or displayed for commercial use, any gaming machine which:
(1) Does not have properly attached thereto a decal evidencing payment of
applicable occupation tax and machine registration;
(2) Is located at any address or location other than the location listed for such
machine as shown in the records of the City; or
(3) Has affixed to it a decal other than the decal issued for such as shown in the
records of the City.
(d) Except as otherwise provided by this section, if it be shown that a person has
violated this Article, upon conviction, the defendant shall be punished by a fine of
not less than two hundred dollars ($200.00) nor more than one thousand dollars
($1,000.00).
(e) Upon second conviction for a violation of this Article, the defendant shall be
punished by a fine of not less than five hundred dollars ($500.00) nor more than one
thousand dollars ($1,000.00).
(f) Any violation charged pursuant to this section shall be independent of and may be
in addition to any administrative penalties which may be imposed regarding the
suspension, revocation or denial of any permit or license granted under this Article.
Sec. 6.10.018 Sealing machine for nonpayment; hearings.
(a) The Chief of Police shall seal, in a manner that will prevent further operation, any
gaming machine upon which the tax required by this Article has not been paid or upon
which the decal is not properly displayed. The owner or operator of any machine
subject to this Article shall be required to pay a fee equal to the maximum amount
permitted under §2153.453 of the Texas Occupations Code for the release of any
machine sealed, as provided herein, for nonpayment of the tax or for failure to
properly display the decal evidencing the payment of the tax and proper registration
of the machine. The current fee amount shall be five dollars ($5.00) for each sealed
machine. Upon proof of payment of the occupation tax provided for in section
6.10.012 of this Article, and the release fee, the Chief will remove the seal.
(b) Any owner desiring to contest the tax, fee, or penalty owed to the City to secure the
release of a sealed machine may request a hearing by delivering written notice to the
City Clerk setting forth the specifics of the challenge. The City Council shall either
hear the challenge or select a hearing officer to preside over the hearing. The City
Council or hearing officer shall within fourteen (14) days of the notice of challenge
grant a hearing to consider the action. The decision of either the City Council or
hearing officer is final.
Sec. 6.10.019 Penalty for removal of sealed machine.
It shall be unlawful to remove from the permitted site any machine that has been sealed
pursuant to section 6.10.018 of this Article. Whoever removes or causes to be removed
a machine that is sealed shall be guilty of a misdemeanor and, upon conviction, shall be
punished by a fine of not less than $100.00 and no more than $500.00.
Sec. 6.10.020 Injunctions.
(a) In addition to the fines and penalties provided in this Article, if it appears that a
person has violated or is violating or is threatening to violate any provisions of this
Article, the City Attorney may institute a civil suit in a court of competent jurisdiction
for injunctive relief to restrain the person from continuing the violation or threat of
violation.
(b) On application for injunctive relief and a finding that a person is violating or
threatening to violate any provision of this Article, the court shall grant such
injunctive relief as the facts may warrant.
Sec. 6.10.021 Strict enforcement; exemptions.
(a) All law enforcement personnel, inspectors, and other designated personnel shall
carry out the provisions of this Article and may issue citations for violations of this
Article. All law enforcement officers and representatives shall strictly enforce and
prosecute the provisions of this Article, and court officials shall see that this Article
receives strict interpretation and adjudication in a court of competent jurisdiction.
(b) A person in possession or control of a gaming machine is exempt from this Article
if:
(1) The gaming machine is maintained exclusively in a personal residence and
solely for personal use; or
(2) The gaming machine has been altered in such a way that it no longer
functions as a coin-operated machine and is not patronized for the purpose
of winning cash or cash value prizes; or
(3) The gaming machine is owned by, leased or rented to organizations
operated exclusively for charitable, educational, religious or benevolent
purposes. An organization with social or fraternal activities does not qualify.
(4) The gaming machines designed for and utilized exclusively by children are
expressly exempt from the tax levied in Division 2 hereof.
Section 8.
That if any section, subsection, sentence, clause of phrase of this ordinance, or the
application of same to a particular set of persons or circumstances, should for any reason
be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end, the various portions and provisions of this ordinance are
declared to be severable.
Rpnfinn Q
That all ordinances or parts of ordinances in conflict herewith are repealed to the extent
of the conflict only.
Section 10.
That any person who violates any provision of this ordinance shall, upon conviction,
be punished, as provided for herein.
Section 11.
This ordinance shall be effective from and after August 1, 2014.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10th day of
June, 2014.
r Becky Ames -