HomeMy WebLinkAboutOrdinance - 2019-O0037 - Amending 8.04 - Gamerooms - 03/26/2019 First Reading Second Reading
March 12,2019 March 26, 2019
Item No. 8.7 Item No. 7.16
ORDINANCE NO. 2019-00037
AN ORDINANCE AMENDING ARTICLE 8.04 OF THE CODE OF ORDINANCES
OF THE CITY OF LUBBOCK, TEXAS WITH REGARD TO COIN-OPERATED
MACHINES; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City of Lubbock finds and determines that:
1. Between 2015 and 2018,the City of Lubbock has issued game room Operator's
Permits and coin-operated machine decals as follows:
2015 — 53 permits and 2,275 decals
2016—41 permits and 1,997 decals
2017—41 permits and 1,965 decals
2018—47 permits and 2,700 decals
2. During the same time period, the Lubbock Police Department has encountered
more than a 100% increase in calls and responses to locations operating game
rooms as indicated below:
2015 — 129 calls
2016— 127 calls
2017— 189 calls
2018—273 calls
3. Law enforcement agencies in Lubbock executed search warrants on businesses
displaying coin-operated machines, with probable cause to believe that illegal
activities were being conducted involving the machines, including offenses set
forth in Chapter 47 of the Texas Penal Code (Gambling); Chapter 34 of the
Texas Penal Code (Money Laundering); Chapter 71 of the Texas Penal Code
(Organized Crime).
4. In the course of these investigations, evidence of additional illegal activities
were discovered, including offenses involving the manufacture, possession or
delivery of a controlled substance in penalty groups 1, 1A, 2, 3, or 4, or the
delivery of marihuana, as more fully described in Chapter 481 of the Texas
Health & Safety Code; and crimes of moral turpitude.
5. The owners of businesses whose illegal gambling devices and assets have been
seized by law enforcement agencies often reopen a game room and resume
operating their illegal businesses, often at the same location.
6. The owners of illegal gambling businesses structure their businesses in ways
which hinder law enforcement agencies trying to prevent, deter, or disrupt
illegal gambling activities by shielding the identities of the actual owners of the
businesses.
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7. The owners of illegal gambling businesses take steps to delay, frustrate, or
hinder the enforcement of Texas' gambling laws.
8. The owners of illegal gambling businesses attempt to launder the proceeds of
their illegal activities to prevent those assets from being seized and forfeited by
law enforcement agencies working on behalf of the State of Texas.
9. It is deemed to be in the best interests of the health, safety, and welfare of the
citizens of Lubbock to adopt these regulations,NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT Chapter 8, Article 8.04 of the Code of Ordinances of the City of
Lubbock is hereby amended to read as follows:
Division 1. Generally
Sec. 8.04.001 Definitions
The following words, terms and phrases as used in this article are defined as follows:
Applicant means any person, firm, company, association, or corporation that applies for an
Operator's Game Room Permit under this Article. The term "applicant" shall include each
member of a partnership when the applicant is a partnership. If a member of the applicant
partnership is not a person, the applicant shall include those persons holding a ten-percent or
greater interest in the entity which constitutes that member of the partnership applicant. The
term "applicant" shall include each officer, director and holder of a ten-percent or greater
interest of a corporation, firm or association when the applicant is a corporation, firm or
association. If the holder of a ten-percent or greater interest in a corporation,firm or association
applicant is not a person, the applicant shall include those persons holding a ten-percent or
greater interest in the entity which holds a ten-percent or greater interest in the corporation,
firm or association which is the applicant. When a permit is issued under this article, the
Applicant becomes the permit holder.
Chief ofpolice means the chief of police of the City of Lubbock or his designated agent.
Coin-operated machine means every machine or device of any kind or character, which is
operated by or with credits or points which have been purchased with anything of value,
including coins,slugs,tokens,paper money,checks,credit or debit cards,or stored value cards,
whether those points or credits are purchased directly at the machine or at a central station or
terminal, or are transferred to the machine by means of an electronic or electromagnetic card.
"Music coin-operated machines"and"skill or pleasure coin-operated machines"as those terms
are hereinafter defined shall be included in such term.
Music coin-operated machine means every machine or device of any kind or character that
dispenses or vends or that is used for dispensing or vending music and is operated by or with
coins, metal slugs, paper money, tokens, checks,or credit or debit cards.
Operator means any person, firm, company, association, or corporation which exhibits,
displays or permits to be exhibited or displayed, in a place of business, any coin-operated
machine in the city.
Person includes any natural person, association of natural persons, trustee, receiver,
partnership, corporation, organization, or the manager, agent, servant, or employee of any of
them.
Service coin-operated machine means every pay toilet, pay telephone, and all other machines
which dispense service only and not merchandise, music, skill, or pleasure.
Skill or pleasure coin-operated machine means every coin-operated machine of any kind or
character whatsoever, when such machine or machines dispenses or are used or are capable of
being used or operated for amusement or pleasure or when such machines are operated for the
purpose of dispensing or affording skill or pleasure or for any other purpose other than the
dispensing or vending of merchandise or music or service exclusively, as those terms are
defined in this section.
Sec. 8.04.002 Illegal machines
Nothing contained in this article shall be construed or have the effect to license, permit,
authorize or legalize any machine, device, table or coin-operated machine, the keeping,
exhibition,operation,displaying or maintenance of which is illegal or in violation of any article
of the Penal Code of this state or the constitution of this state.
Secs. 8.04.003-8.04.030 Reserved
Division 2. Occupation Tax on Coin-Operated Machines*
Sec. 8.04.031 Fees - Amount; registration
(a) Every Operator who exhibits or displays or who permits to be exhibited or displayed
in the city.any coin-operated machine shall pay an annual occupation tax on each coin-
operated machine. All associated fees shall be set by the current fiscal budget of the
city. If no fee is established by budget ordinance,a minimum fee of fifteen dollars($15)
occupation tax per machine shall be required.
(b) All occupation taxes for coin-operated machines are payable in advance. Prior to
payment of the tax every Operator shall register each machine by make, model, and
serial number with the city secretary or designated agent.
(c) Every Operator shall register each spare circuit board or control module by make,
model, and serial number with the city secretary or designated agent, although no
additional occupation tax will be levied against circuit boards or control modules which
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are not actually in service. Every Operator shall notify the city secretary or designated
agent if and when the circuit board or control module for a coin-operated machine is
placed into service.
Sec. 8.04.032 Exemptions
Gas meters,pay telephones,pay toilets,food vending machines,confection vending machines,
beverage vending machines, merchandise vending machines, motor vehicle fuel pumps or
recharging stations,and cigarette vending machines which are now subject to an occupation or
gross receipts tax,stamp vending machines,and"service coin-operated machines,"as that term
is defined, are expressly exempt from the tax levied herein, and the other provisions of this
article.
Sec. 8.04.033 Issuance and display of decal as evidence of payment
(a) The decal issued by the city secretary to evidence payment of the tax levied herein shall
be securely attached with its own adhesive to a fixed part of the coin-operated machine.
The decal shall be affixed to the machine in a manner prescribed by the city secretary.
(b) During the last quarter of each year,Operators shall pay the occupation tax, register the
machines taxed, and receive a decal for each coin-operated machine to be within the
city on January 1 of the following year.
Sec. 8.04.034 Sealing machine for nonpayment
The chief of police may seal any such machine upon which the tax has not been paid in a
manner that will prevent further operation. The city secretary shall charge a fee of five dollars
($5.00) for the release of any machine sealed for nonpayment of tax. The fee shall be paid to
the city secretary by cashier's check or money order. It shall be unlawful to break the seal
affixed in the name of the city or exhibit, display or remove from location any machine on
which the seal has been broken.
Sec. 8.04.035-8.04.060 Reserved
Division 3. Operator's Game Room Permit--
Sec. 8.04.061 Required; fee; renewal
(a) Any Operator whose business operates six (6) or more skill or pleasure coin-operated
machines or any Operator whose principal business is the operation of skill or pleasure
coin-operated machines, without regard to number, shall obtain an Operator's Game
Room Permit from the city secretary.
(b) All associated fees for obtaining an Operator's Game Room Permit shall be set by the
current fiscal budget of the city. If no fee is established by budget ordinance, a
minimum fee of five hundred dollars ($500.00) for the administrative costs of
processing the Operator's Game Room Permit shall be required.
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(c) Each time the location of a machine is changed, the Operator shall notify the city
secretary of the change by filing an amendment to the Operator's Game Room Permit
application within ten (10)days of the change.
(d) An application for the renewal of an Operator's Game Room Permit must be made to
the city secretary by December 31 of each year.
Sec. 8.04.062 Application
(a) An Operator's Game Room Permit application may be obtained at the city secretary's
office.
(b) The Applicant shall be required to furnish the following information:
(1) The name of the Applicant's business and the address of the location where the
machines are to be located.
(2) The date of birth and full legal name, including any and all names by which the
person has been known during the last five (5) years, of the Applicant and of
each person included within the definition of Applicant as set forth at section
8.04.001 of this article.
(3) If the Applicant is a corporation, the exact corporate name, state of
incorporation and principal place of business for the corporation.
(4) The current residence address and telephone number of the Applicant and of
each person included within the definition of Applicant as set forth at section
8.04.001 of this article.
(5) A copy of the driver's license, state identification card, or other forms of
identification acceptable to the city secretary and sufficient to establish the truth
and accuracy of the information provided in the application of the Applicant
and of each person included within the definition of Applicant as set forth
at section 8.04.001 of this article.
(6) The name and home address of a Local Agent if the Applicant is not a resident
of the City of Lubbock. If the Applicant is a resident of the City of Lubbock,
the Applicant may serve as the Local Agent or designate a separate individual
as the Local Agent. A copy of the Local Agent's driver's license, state
identification card, or other forms of identification acceptable to the city
secretary and sufficient to establish the truth and accuracy of the information
provided in the application.
(7) All felony and misdemeanor convictions,except for Class-C traffic offenses,of
the Applicant and of each person included within the definition of Applicant as
set forth at section 8.04.001 of this article, and of the Local Agent, including.
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but not limited to, any of the offenses as described at section 8.04.064(d)(5) of
this article.
(8) The maximum number of skill or pleasure coin-operated machines to be located
at the business.
(9) The landline telephone number for the address of the location where the
machines are to be located.
(10) The application shall be signed under penalty of perjury by the applicant,
attesting to the truth and accuracy of the information provided, including each
document attached to the application.
(c) Only one Operator's Game Room Permit may be issued for a single location.
(d) The Operator shall have a continuing duty, during the term of any Operator's Game
Room Permit or renewal thereof, to notify the city secretary of any change in the
information required to be submitted on the application for the Operator's Game Room
Permit.
(e) Issuance of an Operator's Game Room Permit by the city secretary is contingent on the
verification of the application information with assistance of other city departments as
appropriate, including, without limitation, the police, planning and zoning, code
enforcement, fire marshal,environmental health, and building inspection departments.
Sec. 8.04.063 Inspections
An Applicant or permit holder shall permit representatives of the police department, building
inspection department, fire department, code enforcement department and environmental
health department of the city to inspect the premises of the game room business for the purpose
of ensuring compliance with the law and this ordinance at any time that the premises are
occupied by one or more persons.
Sec. 8.04.064 Issuance or Denial
(a) The chief of police shall investigate said application and the background of the
Applicant. At his or her discretion, the chief of police shall be assisted in his
investigation by the building official, environmental health officer, code enforcement
officer, and/or the fire marshal. Within forty-five (45) days after receipt by the city
secretary of the fully completed application for the permit, including all attachments or
submissions as may be required, the chief of police shall report the results of the
investigation to the city secretary.
(b) Within sixty (60) days after receipt by the city secretary of the fully completed
application for the permit,including all attachments or submissions as may be required,
the city secretary shall inform the Applicant by certified mail, return receipt requested,
or by email if elected by the Applicant, as to the approval or denial of said permit.
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(c) The city secretary shall issue a permit to the Applicant which shall be valid only as to
the game room activities described in the application and approved on the face of the
permit, unless one or more of the following conditions exists:
(1) The location of the game room business or enterprise is or would be in violation
of chapter 40 of the Code of Ordinances of the City of Lubbock, Texas.
(2) The Applicant has failed to make full disclosure, or to supply all of the
information requested on the application, or the application is otherwise
incomplete.
(3) The Applicant has provided false, fraudulent or untruthful information on the
application, or is attempting to acquire the permit under false pretenses.
(4) The application or the establishment or the venture does not meet one or more
of the requirements of this article.
(5) The correct permit fee has not been tendered to the city and, in the case of a
check or bank draft, honored with payment upon presentation.
(G) The structure, configuration or layout of the premises, as proposed by the
Applicant, if permitted, would not comply with all applicable laws, including,
but not limited to,the city building,zoning, fire prevention and protection, and
health ordinances and regulations.
(7) The Applicant or the manager or any other person principally in charge of the
operation of the business is under eighteen(18)years of age,or is under twenty-
one(2 1)years of age and the sale or consumption of alcoholic beverages would
be an aspect of the venture.
(8) The Applicant has not demonstrated that the Applicant owns, leases or
otherwise has or continues to have the lawful right to occupy and use the
premises for the purpose stated in the application.
(9) The Applicant has been a permit holder,owner or an employee with managerial
responsibilities for a game room business when the permit for such business has
been denied or revoked, within two (2) years preceding the date of the
application.
(d) The city secretary shall not issue a permit to the Applicant which shall be valid only as
to the game room activities described in the application and approved on the face of
the permit, unless:
(1) The parking ratio of one parking space per fifty (50) square feet of gross floor
area is provided on the development lot.
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(2) The legal description of the property of the business where the machines will
be located is provided.
(3) The name of the owner of the property where the business is located is provided.
(4) A copy of the lease or rental agreement is provided, if the property is leased or
rented.
(5) The Applicant and of each person included within the definition of Applicant
as set forth at section 8.04.001 of this article,and the Local Agent, has not been
convicted of any offense set forth in Chapter 47 of the Texas Penal Code
(Gambling);Chapter 34 of the Texas Penal Code(Money Laundering); Chapter
71 of the Texas Penal Code (Organized Crime); any offense involving the
manufacture,possession or delivery of a controlled substance in penalty groups
1, 1A,2,3,or 4,or the delivery of marihuana,as more fully described in Chapter
481 of the Texas Health& Safety Code; or any crime of moral turpitude.
(e) A business that existed on or before November 3, 1982,and has remained in continuous
operation shall be permitted to obtain an Operator's Game Room Permit under this
division without complying with subsection (d)(1), provided that no structural
alterations are made except those required by law or ordinance. Compliance with
subsection (d)(1) of this section shall be required when an exempted business is added
to or enlarged. This requirement may be satisfied upon the granting of a variance by
the zoning board of adjustment.
(f) When a permit is issued to the Applicant, each person included within the definition of
Applicant as set forth at section 8.04.001 of this article shall be considered to be a
permit holder.
Sec. 8.04.065 Suspension
(a) The chief of police may suspend a permit for a period not to exceed thirty (30)days if
he determines that a permit holder or any employee of a permit holder has violated or
is not in compliance with this article; or that a condition exists which would be grounds
for denial of an application for a permit under this article.
(b) The chief of police shall inform the permit holder by certified mail, return receipt
requested, of the suspension of a permit and of the permit holder's right to appeal as set
forth at section 8.04.067 of this article. Written notice of the suspension of a permit
shall be posted in a conspicuous place on the business premises. The chief of police
shall inform the city secretary of the suspension.
Sec. 8.04.066 Revocation
(a) Any Operator's Game Room Permit issued under this division shall be subject to
revocation by the city secretary for the following reasons:
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(1) The correct Operator's Game Room Permit fee has not been tendered to the city
secretary, in the case of a check or bank draft, honored with payment upon
presentation;
(2) Failure to comply with the requirements of this article.
(3) Operation of the coin-operated machines in a manner which violates the law.
(4) Any condition which would make the Applicant, Operator or Local Agent
ineligible to receive an Operator's Game Room Permit, including, without
limitation, conviction of any offense set forth in Chapter 47 of the Texas Penal
Code (Gambling); Chapter 34 of the Texas Penal Code (Money Laundering);
Chapter 71 of the Texas Penal Code (Organized Crime); any offense involving
the manufacture, possession or delivery of a controlled substance in penalty
groups 1, IA, 2, 3, or 4, or the delivery of marihuana, as more fully described
in Chapter 481 of the Texas Health & Safety Code; or any crime of moral
turpitude.
(b) The chief of police or any other representatives of the police department, building
inspection department, fire department, code enforcement department and
environmental health department of the city shall inform the city secretary of an
Applicant's or Operator's failure to comply with the requirements of this article.
Sec. 8.04.067 Appeal of denial or revocation or suspension
Any Applicant or Operator whose Operator's Game Room Permit is denied or revoked
pursuant to the provisions of this division may appeal such denial or revocation to the City of
Lubbock Permit and License Appeal Board in accordance with chapter 2, article 2.03, division
3, section 2.03.071 et seq., of the Lubbock Code of Ordinances.
Secs. 8.04.068-8.04.070 Reserved
Division 4. Additional Requirements for Operators of Skill or Pleasure Coin-Operated
Machines
Sec. 8.04.071 Restrictions on Prizes
(a) Any Operator who operates skill or pleasure coin-operated machines or any business
whose principal business is the operation of skill or pleasure coin-operated machines,
if such business awards any prizes or things of value, shall not:
(1) operate the machines in violation of the law.
(2) award any prize which includes cash.
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(b) Any Operator who operates skill or pleasure coin-operated machines or any business
whose principal business is the operation of skill or pleasure coin-operated machines,
if such business awards any prizes or things of value, shall:
(1) maintain for public inspection a contemporaneous list of any prizes to be
awarded which includes the wholesale value of each prize or prize category.
Sec. 8.04.072 Premises and Operational Requirements
(a) The Operator shall not restrict the view into the area of the business in which the skill
or pleasure coin-operated machines are located by obscuring any windows opening into
the area with paint or opaque coverings.
(b) The Operator shall not restrict public access to enter the business through the use of
locking mechanisms on the entry doors during regular business hours.
(c) The Operator shall permit the city secretary or designated agent, and officers of any
law enforcement agency, to enter during regular business hours, for the purpose of
inspection or for the preservation of the peace.
(d) The Operator shall maintain a list of current employees, including each employee's
name, home address, and date of birth. The list is to be made available during regular
business hours for inspection by the city secretary or designee, and law enforcement
officers.
(e) The Operator shall maintain a working telephone landline on the premises where the
machines are to be located.
Sec. 8.04.073 Prohibited Locations
No business exhibiting skill or pleasure coin-operated machines shall be located within 300
feet of a school, church, or hospital.
SECTION 2. THAT violation of any provision of this ordinance shall be deemed a
misdemeanor punishable as provided by Section 1.01.004 of the Code of Ordinances of the
City of Lubbock, Texas.
SECTION 3. THAT should any paragraph, sentence, clause, phrase or word of this
Ordinance be declared unconstitutional or invalid for any reason, the remainder of this
Ordinance shall not be affected thereby.
SECTION 4. THAT the City Secretary of the City of Lubbock, Texas, is hereby
authorized and directed to cause publication of the descriptive caption of this Ordinance as an
alternative means of publication provided by law.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 12th day of March , 2019.
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Passed by the City Council on second reading this 26th day of March , 2419.
Lj"'��
DANIEL M. POPE, MAYOR
ATTEST:
Reb ca Garza, City S cr ary
APPROVED AS TO CONTENT:
Gre evens, Chief of Police
APPROVED AS TO RM:
Ryan - rooke, Assistant City Attorney
2019 Game Roan Ordinance 3.1.19
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