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HomeMy WebLinkAboutOrdinance 21500-10-2014 t I ORDINANCE NO. 21500-10-2014 AN ORDINANCE AMENDING ARTICLE II, "AMUSEMENTS," OF I CHAPTER 20, "LICENSES AND MISCELLANEOUS BUSINESS REGULATIONS" OF THE CODE OF THE CITY OF FORT WORTH, TO ADD DIVISION 6, ENTITLED "GAME ROOMS AND AMUSEMENT REDEMPTION MACHINES", TO REGULATE THE CONDUCT OF GAME ROOMS WITHIN THE CITY BY ESTABLISHING A LICENCSING AND REGULATORY PROCESS FOR GAME ROOMS AND AMUSEMENT REDEMPTION MACHINES; AND ADD AN OCCUPATION TAX; PROVIDING THAT THIS ORDINANCE SHALL BE r CUMULATIVE OF ALL ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE; PROVIDING FOR PUBLICATION; AND NAMING AN EFFECTIVE DATE. I WHEREAS, the City Council of the City of Fort Worth ("City Council") is concerned about the number of game rooms that have opened in the City of Fort Worth; and i WHEREAS, the City is expressly authorized to regulate game rooms operating amusement redemption machines such as eight liners by virtue of being a home rule municipality; and WHEREAS, licensing game rooms is a legitimate and reasonable means of regulation to ensure that operators of game rooms do not knowingly allow their establishments to be used as places of illegal activities such as gambling, personal and property crimes; and ! WHEREAS, game rooms that operate amusement redemption machines, such as but not limited to eight liners, can have a deleterious effect on both the existing businesses around them and the surrounding residential areas adjacent to them, causing increased crime, such as gambling,theft, criminal trespass, criminal mischief, and burglary; and I WHEREAS, game rooms that operate amusement redemption machines have objectionable operational characteristics, particularly when located within close proximity to each other, contributing to urban blight and downgrading the quality of life in the adjacent area; and I WHEREAS, the City Council desires to minimize and to control these adverse effects and thereby protect the health, safety, and welfare of the citizenry; protect citizens from increased crime; preserve the quality of life; preserve property values and character of surrounding neighborhoods and deter the spread of urban blight. Ordinance No.21500-10-2014 Page 1 of 13 I I I i I WHEREAS, the City Council has determined that it is the public's best interest and in support of the health, safety, and general welfare of the citizens of the City that game rooms 1 should be regulated through a licensing process in addition to the City's use of zoning as a regulator of game rooms. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. i The Code of Ordinances of Fort Worth, Texas is hereby amended by adding a new i division, Division 6, "Game Rooms and Amusement Redemption Machines," to Chapter 20, "Licenses and Miscellaneous Business Regulations," Article II, "Amusements," comprised of 1 Sections 20-105 through 20-120.2 which read as follows: i DIVISION 6. GAME ROOMS AND AMUSEMENT REDEMPTION MACHINES Sec. 20-105. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: i 6 Amusement Redemption Machine means any electronic, electromechanical, or mechanical ' contrivance, including sweepstake machines, designed, made, and adapted solely for bona fide amusement purposes, and that by operation of chance or a combination of skill affords the user, in additional to any right of replay, an opportunity to receive exclusively non-cash merchandise prizes, toys, or novelties, or a representation of a value redeemable for those items and is in compliance with Section 47.01(4)(b) of the Texas Penal Code. Amusement Redemption Machine does not include: f I 1. A machine that awards the user non-cash merchandise prizes, toys, or novelties solely t and directly from the machine, including claw, crane, or similar machines; nor 2. A machine from which the opportunity to receive non-cash merchandise prizes, toys, or novelties, or a representation of value redeemable for those items, varies depending upon the user's ability to throw, roll, flip, toss, hit, or drop a ball or other physical objects into the machine or a part thereof, including basketball, golf, bowling, or similar machines. A representation of value means cash paid under authority of sweepstakes contestants as ' 1� Ordinance No.21500-10-2014 Page 2 of 13 P �I f I i i provided by the Texas Business and Commerce Code, Section 43, or a gift certificate or gift card that is presented to a merchant in exchange for merchandise. Game room means a building, facility, or other place where one or more amusement redemption i machines are present. I Game room owner or owner means a person who has an ownership interest in a game room. City official means a police officer, code enforcement officer, fire marshal or building official of the city. J Licensee means any person, individual, firm, company, association, or corporation operating an amusement redemption machine game room in the city. Manager, operator or owner means an individual who supervises, manages, or participates in the performance of activities that contribute to the functioning of a game room, including but not I limited to, operating cash register/drawer, credit card transaction or some other depository on the i I premises of a game room, displays, delivers, or provides to a customer of a game room merchandise, goods, entertainment or other services, takes orders from a customer of a game room for merchandise, goods, entertainment or other services or acts as a door attendant to regulate entry of customers. Sec. 20-106. License required. ; i (a) No person shall maintain, display for patronage, or otherwise keep for operation by the patrons any amusement redemption machine without first obtaining a license from the City issued under the terms and conditions of this division. No license shall be issued until the occupation tax has been paid for each amusement redemption machine as required by this division. i (b) No person shall operate a game room in the city without first obtaining a license from the City, as required by this section. No license shall be issued until the occupation tax has been paid j by the game room owner for each amusement redemption machine within the premises, and the applicable game room license fee has been paid by the game room owner. j i Sec. 20-107. Occupation tax levied. j (a) Every person who owns controls exhibits displays, or permits to be exhibited or displayed � in this city any amusement redemption machine shall pay, and there is hereby levied on every amusement redemption machine except such as are exempted in this division, an annual occupation tax per machine equal to 25 percent of the occupation tax charged and collected by the state, which occupation tax is specifically authorized by Texas Occupations Code § 2153.451. Ordinance No.21500-10-2014 Page 3 of 13 1 i 1 I i I (b) Nothing in this section shall prevent the operator of the amusement redemption machines from paying the tax levied in this section for the account of the owner, but the payment of the tax by the operator or other person shall not relieve the owner from the responsibility of complying fI i with all provisions of this article. Sec. 20-108. Payment of occupation tax; receipt to be attached to amusement redemption machine. f (a) The occupation tax levied by this division shall be paid to the City. The City shall issue a j receipt reflecting payment of the occupation tax per machine. I (b) The receipt reflecting payment of the occupation tax shall be attached to the amusement redemption machine mentioned in the receipt and shall bear the serial number of the particular amusement redemption machine. 4 (c) It shall be unlawful for any person to operate, exhibit, or display any amusement redemption I. machine in the city without having attached thereto an occupation tax receipt. It shall also be unlawful for any occupation tax receipt issued for a certain amusement redemption machine to be transferred to any other amusement redemption machine. (d) The fee for issuing a replacement occupational tax receipt for one lost, destroyed or mutilated shall be 50 percent of the original occupation tax paid. Sec. 20-109. Payment of annual inspection and license fee; issuance of license. I An owner, operator, or lessee of an amusement redemption machine game room shall be required I to secure a license annually. A game room shall be required to secure a license by paying to the City an annual inspection and game room license fee in the amount adopted by the City Council per machine kept within and about the licensed premises. Upon payment of the fee and compliance with all licensing requirements, the license shall be issued by the City. i Sec. 20-110. Term of license; jurisdiction; scope. I A license issued for a game room under this division: iyy (a) Is an annual license which expires December 31St of each year unless it is suspended or cancelled earlier; (b) Is effective for a single place of business only; (c) Vests no property right in the licensee except to maintain, display for patronage, and permit I the use or skill or pleasure of amusement redemption machines in accordance with the terms and i conditions of this division; Ordinance No.21500-10-2014 Page 4 of 13 I I I I I i (d) Shall automatically expire if the licensee sells the property or the business, transfers equity to accomplish same, or otherwise disposes of amusement redemption machines; and (e) Is not assignable or transferable. k In addition, the city shall not refund any portion of a license fee after the license is issued, nor shall it prorate or reduce in amount any fee due to the City. Notwithstanding the foregoing, the i initial license issued to an existing game room following the adoption of the ordinance from which this division is derived and the game room's compliance with the requirements of this division shall not expire until December 31, 2014. Thereafter, any such license shall expire as provided herein-above. Sec. 20-111. Restrictions, regulations, controls, and limitations. C i (a) All building and fire code standards must be met. Inspection by building officials and the issuance of a certificate of occupancy shall be obtained before a license for an amusement redemption machine game room is issued. (b) Game rooms shall only be considered in existing Light Industrial ("I"), Medium Industrial ("J") or Heavy Industrial ("K") districts and the use must then be approved as a Planned Development("PD") District. I I (c) Only one game room shall be allowed on any lot or in any single building, structure or tenant space within a strip center. (d)No game room shall be situated within 1,000 feet of any church, school, residential district or use, hospital or any other game room. The distance shall be measured in a straight line without regard to intervening objects or structures and from the nearest property line of the game room seeking a license to the nearest property line of the church, school, residential district or use, hospital or any other game room or property line to district boundary, whichever is more restrictive. (e) All game rooms shall have all doors providing ingress and egress from the game room unlocked during the hours of operation. i (f) The hours of operation for game rooms shall be limited to the following hours: I (1)Monday through Thursday, open at 8:30 a.m. and close at 11:00 p.m.; and (2) Friday through Sunday, open at 8:30 a.m. and close at 12:00 a.m. (g) One parking space shall be provided for each two amusement redemption machines within the game room, plus one additional parking space for each employee per shift. j Ordinance No.21500-10-2014 Page 5 of 13 j I 0 I I i i (h) The owner, operator, or manager of the licensed premises must be present to supervise the operation of the game room. The game room shall not be left unattended. (i) Amusement redemption machines must be situated within the licensed premises as to be in full and open view, which entails being visible to all customers of the establishment. i (j) No person under the age of 18 years shall be permitted inside the building, structure, facility or space housing the game room. , (k) A sign stating that no one under the age of 18 is allowed inside the game room building shall be posted in plain sight immediately inside the entrance stating that: "No person under the age of 18 years shall be permitted inside the building, structure, facility or space housing the game room." (1) A game room operator must be a person who is at least 18 years of age. (m) The total number of amusement redemption machine allowed in one amusement redemption machine game room establishment shall be limited 30 amusement redemption machine games. Any back-up or replacement amusement redemption machine games shall be secured in a locked storage area or closet to which the patron is not allowed to enter and such machines shall not be connected to electricity or otherwise operational. The occupation tax on such back-up or replacement amusement redemption machine games shall be paid annually regardless of whether such machines are used by the game room's patrons. i (n)Nothing contained 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. 20-112. Application for game room license. A person desiring a license to operate a game room shall file a written application with the Code P Planning and Development Director or designee. A separate application must be filed for each location sought to be licensed. The application must be on a form provided by the City and the following information is required in the application: (a) Name, address, telephone number, and driver's license number of the applicant if the applicant is a natural person; i I (b)Name, address, telephone number and driver's license number of all persons who owns an in the game room; Ordinance No.21500-10-2014 Page 6 of 13 i i f f I I (c) Name, address, telephone number and driver's license number of all corporate officers, if I any, of the business; i (d)Name, address, telephone number of the business; (e) If incorporated, the name of the business registered with the Texas Secretary of State; f f (f) If a partnership, the name, address, telephone number and driver's license of each of the general and limited partners; (g) The trade name by which the applicant does business and a true and correct copy of the f I registration of the applicant's assumed name filed in the office of the county clerk, bearing the file mark or stamp that evidences its filing in that office; j (h) The street address of the premises; j (i) If applicant is not the owner of the premises, the applicant shall furnish the name, address, j and telephone number of the property owner; (j)Name, address, and telephone number of the operator of the premises to be licensed; i (k) Number of amusement redemption machines in the premises to be licensed and the serial number of each amusement redemption machine; (1) Whether a previous license of the applicant, or, if applicable, a corporate officer of the applicant, has been revoked within two years of filing of the application; (m) The previous occupation(s) of the applicant and, if applicable, all corporate officers and I partners of the applicant within the preceding five years; I (n) Name, address, and telephone number of an emergency contact person who can be reached after hours; (o) A floor plan of the amusement redemption machine game room interior depicting the layout of the amusement redemption machine game room interior specifically including, but not limited to, the location of all amusement redemption machines, coin-operated machines or devices, the manager's station(s), restroom facilities, kitchen and bar facilities, if any, and all areas to which patrons will not be permitted; and (p) Any other plans that may be required by this Code. (q) If the applicant has been convicted of any crime directly related to a game room, the date, i location, and nature of the offense and the penalty received. Ordinance No.21500-10-2014 i Page 7 of 13 I I i f ,i i (r) Each applicant shall sign a waiver authorizing the Chief of Police to request on behalf of the applicant criminal history reports from the Texas Department of Safety, the Texas Comptroller's Office or any appropriate federal agency. (s)A notarized statement, under oath, that: i I (1) All the facts contained in the application are true and correct; (2) The amusement redemption machines are not and will not be used as gambling devices; r (3) The location and operation of the game room will not violate any applicable deed restrictions; (4) The game room will be operated in accordance with all laws; Any failure to provide the documents required by this section shall be grounds for denial of the I application to which it applies. Sec. 20-113. Renewal of game room license. ! 4 (a) A license may be renewed for the following calendar year beginning October 1 of each year i by filing a completed application for each license and paying the applicable fee set forth in this article. A renewal application shall be subject to the same requirements in this section for a license application. (b) Upon the expiration of a license, the licensee shall be required to obtain a renewal of the expired license if the licensee wishes to continue operating an amusement redemption machine i game room. Failure to obtain the renewal within 30 days after expiration will require such person to pay an additional late fee in an amount equal to 20 percent of the fee actually due or 20 percent of the previous year's fee, whichever amount is greater, in order to obtain reinstatement of his license. Nothing herein authorizes the licensee to operate after the expiration of a license and before a renewal is effective I Sec. 20-114. Grounds for denial of license; applicants or licensees indebted to City. (a) The city shall refuse to approve issuance or renewal of a license for one or more of the following reasons: (1) Any failure to provide the information required by this division; i (2) A determination by the city that inaccurate, erroneous or incomplete information has been submitted; ! (3)A false statement as to a material matter made in an application for a license; Ordinance No.21500-10-2014 Page 8 of 13 ii ! i I (4) Revocation of a license, pursuant to this division, of the applicant or a co-owner or a corporate officer of the applicant within two years preceding the filing of the application; (5) Refusal or failure to pay the occupation tax on any amusement redemption machine; (6) Refusal or failure to pay the correct license fee amount; i (7) The applicant or a co-owner for such license has, within the past three years, been j convicted of any violation of this division; and/or (8) The applicant or a co-owner for such license has, within the past ten years, been convicted of a crime involving moral turpitude. (b) The City shall not issue or renew a license under this article and shall suspend or cancel a j license if it be determined that the applicant or licensee is indebted to the City for any fee, costs, I penalties, or delinquent taxes. Sec. 20-115. Suspension or revocation of license for violation of article. (a) Power and authority. If any individual,. company, corporation or association who owns, i operates, exhibits, or displays any amusement redemption machine(s) in an amusement redemption machine game room in this City shall violate any provision of this division, the City shall have the power and authority to suspend or revoke the license(s) issued hereunder to any of the foregoing by giving written notice, stating the reason justifying such suspension or revocation, and the license shall be suspended or revoked ten days from date of such notice. i (b) Suspension. The City Manager or his designee shall suspend a license for a period not to exceed 30 days if he determines that a licensee or an employee of a licensee has: 1 t (1)Violated or is not in compliance with any of the provisions of this article; (2) Refused to allow or interfered with an inspection of the amusement redemption machine game room premises; or (3) Demonstrated an inability to operate or manage an amusement redemption machine game room in a peaceful and law-abiding manner thus necessitating action by law enforcement officers. I (c) Revocation for continuing violations. The City Manager or his designee shall revoke a i license if a cause of suspension occurs and the license has been previously suspended within the I preceding twelve months. (d) Automatic revocation. The City Manager or his designee shall revoke a license if he determines that: Ordinance No.21500-10-2014 Page 9 of 13 i i I f I I (1) A licensee gave false or misleading information in the material submitted to the City during the application process; (2) A licensee or an employee of a licensee knowingly allowed the possession, use, or sale � of a controlled substance on the premises; or (3) A licensee or an employee of a licensee knowingly operated the amusement redemption { machine game room during a period of time when the licensee's license was suspended. (e) Effect of revocation. No license shall be issued within a period of one-year to anyone whose license has been revoked, except at the discretion of the City Council. If the license of an individual, company, corporation, or association owning, operating, or displaying amusement redemption machines in this city is cancelled, such individual, company, corporation or " association shall not operate, display or permit to be operated or displayed such amusement redemption machines in any amusement redemption machine game room until a new license is f granted. i Sec. 20-116. Appeal from denial, suspension or revocation of license. I I If the City refuses to approve the issuance of a license or the renewal of a license to an applicant, or suspends or revokes a license issued under this article, this action is final unless the applicant or licensee, within ten days after the receipt of written notice of the action, files a written appeal with the judge of the municipal court, who shall, within ten days after the appeal is filed, consider all the evidence in support of or against the action appealed, and render a decision, either sustaining or reversing the action. If the judge of the municipal court sustains the action of the City, the applicant or licensee may, within ten days of that decision, file a written appeal with the City Secretary to the City Council setting forth specific grounds for the appeal. Similarly, if the judge of the municipal court overturns the action of the City Manager or his designee, the City Manager may, within ten days of that decision, file a written appeal with the City Secretary to the City Council setting forth specific grounds for the appeal. The City council shall, within 30 days, grant a hearing to consider the action. The City Council has authority to sustain, reverse, or ! modify the action appealed. The decision of the City Council is final. I Sec. 20-117. Display of license; decal. (a) A license issued under this division for a game room shall be displayed at or near the entrance of the business premises, and such display shall be permanent and conspicuous. j (b) A decal shall be issued for every amusement redemption machine located in a licensed game room. (1) The decal for each amusement redemption machine is deemed personal to the machine and location for which it is issued. No decal attached to an amusement redemption machine shall be placed on another amusement redemption machines. No amusement Ordinance No.21500-10-2014 I Page 10 of 13 i " I I I redemption machine shall be moved to another location in the City without first I amending the license and obtaining a new decal for the machine. (2) The decal shall be permanently and conspicuously attached to a permanent surface of the amusement redemption machine. Decals not properly displayed will be invalid. (3) The decal shall include language stating the payout allowed for each amusement redemption machine pursuant to Texas Penal Code Section 47.01. (4) The decal shall be valid until the amusement redemption machine is moved from the location for which it is issued. Sec. 20-118. Replacement license. i A replacement license may be issued for one lost, destroyed, or mutilated, upon application on a form provided by the City. A replacement license shall have the word "REPLACEMENT" stamped across its face and shall bear the same number as the one it replaces. Sec. 20-119. Inspections; Recordkeeping. f (a) The premises in which such amusement redemption machines are located shall conform to all building codes and fire prevention codes of the City and the Fire Marshal of the City and his assistants and the chief building official or fire marshal may enter into the premises where such amusement redemption machines are located at any time during normal business hours for the purposes of inspecting said premises for fire hazards. (b)It shall be the duty of all owner, manager, or employee of a game room to provide any City � official with immediate unrestricted access during business hours to all areas of a game room and i to all amusement redemption machines. (c) Any City official may inspect a game room or an amusement redemption machine located in i the city to determine whether the game room or amusement redemption machine complies with this division and state laws. (d) The City shall have the authority to seal any coin-operated machine located in any amusement redemption machine game room for which the occupation tax has not been paid. A fee in the amount adopted by the City Council will be charged for the release of any machine sealed for non-payment of the occupation tax. (e) The City shall have the authority to seal any coin-operated machine located in any amusement redemption machine game room for which a license fee has not been paid. A fee in the amount adopted by the City Council will be charged for the release of any machine sealed for non-payment of said license fee. j i (f) The manager, operator, owner shall maintain accurate and legible records of the daily intake of cash/credit paid to play amusement redemption machines and maintain records of payouts j Ordinance No.21500-10-2014 Page 11 of 13 i I I r i I I including rights of replay, non-cash merchandise prizes, toys, or novelties, or a representation of a value redeemable for those items received by customers for play and approximate cost of such. The records or keys to the motherboard shall be presented to city officials upon request. A i refusal to comply with such requests shall be grounds for revocation of a license. A refusal to ! provide a key to the motherboard shall be a consent to damaging physical entry into the machine for the purpose of removal of the motherboard when such entry is otherwise authorized by law. Sec. 20-120. Responsibility of licensee. I A licensee hereunder shall not permit any of the following activities within the licensed premises: (a) The sale, purchase, possession or consumption of any alcoholic beverages as defined by the d Texas Alcoholic Beverage Code unless the premises is licensed under the provisions of said code for the sale,purchase, or possession of alcoholic beverages; II (b) The operation of any amusement redemption machine by a person younger than 18 years of age; i (c) Gambling by any person; (d) The possession of gambling materials; and (e)Unlawful or criminal activity of any kind. (f) The storing, display or exhibition on the premises of any amusement redemption machine where the license for the game room is expired or there is no permit. i Sec. 20-121. Violations of existing laws not authorized. This division shall not be construed to authorize or permit the keeping, exhibition, operation, I display, or maintenance of any machine that is prohibited by the constitution of this state or f Chapter 47 of the Texas Penal Code. SECTION 2. That this ordinance shall be cumulative of all other ordinances of the City of Fort Worth, Texas, and shall not repeal any of the provisions of such ordinances, except in those instances where provisions of such ordinances are in direct conflict with the provisions of this ordinance. SECTION 3. That all rights or remedies of the City of Fort Worth, Texas, are expressly saved as to any and all violations of the City Code, or any amendments thereto that have accrued at the time of the effective date of this ordinance; and as to such accrued violations, and all pending litigation, Ordinance No.21500-10-2014 I Page 12 of 13 I i i I 1 1 4 both civil and criminal, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. i SECTION 4. i That it is hereby declared to be the intention of the City Council that the sections, I paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared void, ineffective or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, ' clauses, sentences, paragraphs or sections of this ordinance, since the same would have been enacted by the City Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. i SECTION 5. i That any person, firm or corporation who violates, disobeys, omits, neglects or refuses to r comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Five Hundred Dollars ($500.00) for each offense. Each day that a violation exists shall constitute a separate offense. SECTION 6. That the City Secretary of the City of Fort Worth, Texas, is hereby directed to publish this ordinance for two (2) days in the official newspaper of the City of Fort Worth, Texas, as authorized by the V.T.C.A. Local Government Code Subsection 52.013. SECTION 7. I This ordinance shall take effect after adoption and publication as required by law. I i APPROVED AS TO FORM AND LEGALITY: _ ! By: IP/VYu Melinda Ramos, Assistant City Attorney MaWaAer,Uity Secretary i Adopted: October 14, 2014 Effective: DCtl�>bp r 2Z , 2z� i i Ordinance No.21500-10-2014 j Page 13 of 13 i i a 1 City of Fort Worth, Texas Mayor and Council Communication I' �'COUNCIL ACTION Approved on 10/14/2014 =Ordinance No T21500=1.0 201'4. F � � v DATE: Tuesday, October 14, 2014 REFERENCE NO.: G-18334 LOG NAME: 12GAMEROOMS SUBJECT: Adopt Ordinance Amending Chapter 20, Licenses and Miscellaneous Business Regulations, Article II, Amusements of the Code of the City of Fort Worth to Add Division 6, Game Rooms and Amusement Redemption Machines to Regulate the Conduct of Game Rooms (ALL COUNCIL DISTRICTS) I RECOMMENDATION: i It is recommended that the City Council adopt the attached ordinance amending Chapter 20, Licenses and Miscellaneous Business Regulations, Article II, Amusements of the Code of the City of Fort Worth, to Add Division 6, entitled game rooms and amusement redemption machines, to regulate the conduct of game rooms within the City by establishing a licensing and regulatory process for game rooms and amusement redemption machines. DISCUSSION: i A game room is a business operated solely for the purpose of amusement, operating gaming machines. Gaming machines, such as eight-liners, are coin-operated electronic gaming machines that resemble a i slot machine. A player"wins" if a horizontal, vertical or diagonal row of objects line up. There are multiple variants of gaming machines, including video reel, video keno and sweepstakes software. The cost to play varies and the prizes for winning vary. Gaming machines are legal in Texas if they meet the definition contained in Section 47.01(4) (B) of the Texas Penal Code. Under current law, a gaming machine is legal if it is used "only for bona fide amusement purposes, awards 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 10 times the amount charged to play the game or device once or$5, whichever is less." i According to the Police Department's Information Management Division, as of March 2014 there are i approximately 131 documented game rooms located within the City limits. The documented game rooms are brought to the Police Department's attention through numerous sources, including citizen complaints, officer discovery, and in some instances, the on-set of a criminal offense perpetrated against a patron of the game room itself. The clientele of game rooms range from the criminal element to the average citizen. The citizens are often older and known to carry cash, making them easy victims of robberies, assaults, and thefts. Game rooms that operate amusement redemption machines, such as but not limited to eight liners, can have a deleterious effect on both the existing businesses around them and the surrounding residential areas adjacent to them, causing increased crime, such as gambling, theft, criminal trespass, criminal mischief, and burglary. i Game rooms are allowed in all but one of the commercial zoning districts (ER, neighborhood commercial restricted) and all industrial zoning districts as an indoor amusement land use in the City. The City Council is considering the adoption of ZC-14-104, a text amendment to the Zoning Ordinance to limit to zoning Logname: 12GAMEROOMS Page 1 of 2 r district where allowed to a Planned Development District if already zoned Industrial; limiting the number of machines allowed to 30, requiring signage, transparency requirements, distance requirements from residential uses, districts, schools, hospitals, churches and other game rooms; requiring site plans, and prohibiting the use of gambling devices. A The City is expressly authorized to regulate game rooms operating amusement redemption machines such as eight liners and other coin-operated machines by virtue of being a home rule municipality and Texas Occupations Code Sections 2153.451-453. Licensing game rooms is a legitimate and reasonable means of regulation to ensure that operators of game rooms do not knowingly allow their establishments to be used as places of illegal activities such as gambling, personal and property crimes; minimize and control adverse effects protecting the health, safety, and welfare of the citizens; protect citizens from increased crime; preserve the quality of life; preserve property values and character of surrounding neighborhoods and deter the spread of urban blight. i The proposed Game Room ordinance will provide Staff with the tools to impose the following licensing regulations: • Yearly license and inspection fees; • License decals for each machine to include verbiage regarding legal payout from machines; • Requirement that the owner/operator keep records that are readily available for inspection which indicate the daily cash taken in and prizes awarded from each machine; i • Submission by the owner/operator to a criminal background check by the Police Department; • Requirement that the owner/operator must have and provide a key to motherboard when requested f by the Police; ' • Requirement that the owner/operator have a manager station; • Valid permit in order to locate or store machines on the premises; and • Requirement that doors be unlocked during business hours. It is recommended that the City Council determine that it is in the public's best interest and in support of i the health, safety, and general welfare of the citizens of the City that game rooms be regulated through a licensing process in addition to the City's use of zoning as a regulator of game rooms. i FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that this action will have a minimal impact on revenue. FUND CENTERS: TO Fund/Account/C enters FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Charles Daniels (6116) Originating Department Head: Sarah Fullenwider (7606) Additional Information Contact: Melinda Ramos (7631) i i i Logname: 12GAMEROOMS Page 2 of 2 I