§ 5-10. Coin-operated amusement machines.
(a)
Definitions. For the purpose of this section, the following definitions will apply:
(1)
Coin-operated amusement device shall mean any amusement machine or device operated by means of the insertion of a coin, token, or similar object, for the purpose of amusement or skill and for the playing of which a fee is charged. The term does not include vending machines in which are not incorporated gaming or amusement features, nor does the term include any coin-operated mechanical musical devices, nor any coin-operated amusement device designed exclusively for children under ten years of age.
(2)
Proprietor, or owner is hereby defined to be any person, firm, corporation, partnership, association, or club who, as the owner, lessee, or proprietor, has under his or its control any commercial establishment, place, or premises in or at which such device is placed or kept for use or play, or on exhibition for the purpose of use or play.
(3)
Commercial establishment shall mean and include any amusement establishment, office, store, restaurant, or business establishment which is designed for the purposes of carrying on of any trade, profession, or business.
(4)
Operator as used herein is hereby defined to be any person, firm, corporation, partnership, or association located within the city, who sets up for operation by another or leases or distributes for the purpose of operation by another, any coin-operated amusement device as herein defined, whether such setting up for operation, leasing, or distributing be for a fixed charge or rental or on the basis of a division of the income derived from such device or otherwise.
(b)
Gambling devices not permitted. Nothing in this section shall in any way be construed to authorize, license, or permit any gambling devices whatsoever, or any mechanism that has been judicially determined to be a gambling device, or in any way contrary to law, or that may be contrary to any future laws of the State of Texas.
(c)
General business license required for operators. It shall be unlawful for any operator engaged in the business to manufacture, own, buy, sell, rent, lease, trade, repair, maintain, service, import, transport, or exhibit any coin-operated amusement device to operate any such business from within the City of Terrell, provided such business is home-based in Terrell, until such person has applied for and been granted a general business license or combination, to do so and has paid the appropriate annual license fees to the city as provided for in the fee schedule found in Appendix 1 of this Code of Ordinances.
No part of any license fee shall be refunded after any license has been issued. In the event such license is not granted by the city, the city will retain $25.00 to cover administrative costs and may refund the balance.
A person who owns or exhibits coin-operated amusement machines is exempt from the licensing requirements if he operates or exhibits his machines exclusively on premises occupied by him and in connection with his business and he owns no machine subject to the occupation tax imposed by this section located on the business premises of another person, and has no financial interest, direct or indirect, in the coin-operated music, skill, or pleasure machine industry, except for the interest he owns in his machines used exclusively on premises occupied by him.
(d)
Application for general business license; revocation.
(1)
Application for a license as provided for above, shall be filed in writing with the city on a form(s) to be provided by the city and which shall at least specify:
a.
The name and home address of the applicant, and if a firm, corporation, partnership, or association, the principal officers thereof and their addresses;
b.
The name and address of the premises where the licensed devices are to be operated, together with the character of the business as carried on at such place;
c.
The trade name and general description of the device or devices to be permitted, the name of the manufacturer and the serial number, and, if the applicant is a proprietor, the number of devices to be permitted;
d.
A statement whether the applicant, proprietor, or any partner, associate, or any corporate officer has been convicted of a felony within the preceding ten years of filing for such application;
e.
The previous occupation of the applicant, proprietor and any partner, associate, or any corporate officer within the preceding five years; and
f.
Such other information or identification the city may from time to time require.
(2)
A license shall not be granted or renewed and may be revoked if any of the following conditions exist:
a.
A false statement has been made in the application for a license or renewal thereof;
b.
Conviction of the applicant, licensee, proprietor, or any partner, associate, or any corporate officer of a felony within the preceding ten years;
c.
The premises sought to be used does not comply with the city's zoning or building ordinances or any other ordinances of the city;
d.
The applicant, licensee, or proprietor violates any provision of this section;
e.
The applicant, licensee, proprietor, or any partner, associate, or any corporate officer is in arrears of any tax or other debt owed to the city. The debt of a wife shall be considered a debt by her husband and a debt of the husband shall be a debt of the wife;
f.
Nonpayment of any annual license fee or occupation tax as provided herein;
g.
Adequate and proper sanitary facilities are not provided for on the premises; and
h.
The premises is within 300 feet of any church, school, or hospital.
(e)
Issuance of general business license. Upon approval by the city manager and payment of any license fees and occupation tax on each coin-operated machine, the city secretary shall issue a license for establishment of business which shall be valid for one year and which shall not be assignable or transferable. Application and consideration of renewal permits shall be made in the same manner as an original application for a license.
(f)
Appeals. If the city manager refuses to approve the issuance of a license or the renewal of a license to an applicant, or revokes a license issued to a licensee, this action is final unless the applicant or licensee files a written appeal with the city secretary to the city council within ten days of such denial or revocation setting forth specific grounds for the appeal. The city council shall, within 45 days after receipt of such notice of appeal grant a hearing to consider the action. The city council may sustain, reverse, or modify the action appealed. Any person aggrieved by the decision of the city council may within ten days appeal the same to the district court in Kaufman County, Texas.
Notice, as used herein, shall mean correspondence U.S. Mail, certified, return receipt requested, to the address of the licensed premises or by letter over the signature of a permit committee member which has been served and read to a permittee, his agent, or attorney.
(g)
Occupation tax levied on all coin-operated amusement devices.
(1)
There is hereby levied on all coin-operated amusement machines, except those expressly exempted, an annual occupation tax of $7.50 for each machine operated in a commercial establishment within the City of Terrell. Every person who owns, controls, exhibits, displays, or who permits to be exhibited or displayed in this city any coin-operated amusement machine shall pay such tax; provided, however, that nothing herein shall prevent the proprietor from paying the tax levied for the account of the owner. Such occupation tax shall be paid to the city secretary who shall issue an occupation tax receipt in the form of a certificate, which shall be immediately affixed and displayed in a prominent place near the machines on the premises. Such certificate shall bear the number of machines being operated and for which the tax has been paid and the date of expiration. In no case shall any portion of the said tax be refunded.
(2)
Each machine upon which the occupation tax has been paid shall be registered with the city by the owner or proprietor and such registration shall contain the make, model, and serial number of each machine.
(3)
Every coin-operated amusement machine subject to the payment of the occupation tax levied herein and upon which tax has not been paid is hereby declared a public nuisance and may be sealed by the city to prevent its operation or use. A $5.00 fee is to be charged for the release of any machine sealed in addition to the payment of the occupation tax. Whoever shall break the seal, display, or remove from location any machine which the seal has been broken shall be guilty of a misdemeanor and shall be in violation of this section.
(h)
Hours of operation by minors.
(1)
It shall be unlawful for any owner, operator, or proprietor, manager, or employee to allow any person under the age of 17 years of age to play or operate a coin-operated amusement machine unless such person is accompanied by a parent or legal guardian during 8:30 a.m. and 2:30 p.m. on regular school days and after 11:00 p.m. on Sundays through Thursday during the school term.
(2)
It shall be unlawful for any owner, operator, proprietor, manager, or employee to allow any person under the age of 17 years of age to play or operate a coin-operated amusement machine unless such person is accompanied by a parent or legal guardian after midnight on any day except during the school term as provided for in subsection (1) above.
(3)
It shall be the duty of the owner, operator, proprietor, manager, or employee displaying coin-operated machines to affix and prominently display a sign on the premises near the machines, which sign shall read: "PLAY BY MINORS UNDER SEVENTEEN (17) YEARS OF AGE NOT ALLOWED AFTER 11:00 P.M. ON SCHOOL DAYS AND 12:00 MIDNIGHT ON ALL OTHER DAYS. ALSO PLAY BETWEEN THE HOURS OF 8:30 A.M. AND 2:30 P.M. ON REGULAR SCHOOL DAYS IS PROHIBITED UNLESS ACCOMPANIED BY PARENT OR GUARDIAN".
(i)
Persons under 19 years of age prohibited on premises selling and dispensing alcoholic beverages. No owner, operator, proprietor, manager, or employee of a commercial establishment shall knowingly or recklessly permit a patron who has not yet attained the age of 19 years to remain on the premises when said premises has been licensed by the Texas Alcoholic Beverage Commission to sell and dispense alcoholic beverages unless accompanied by his parents or legal guardian.
Editor's note— Effective September 1, 1986, the minimum age to possess or consume any alcoholic beverage was changed from 19 to 21 years of age or older.
(j)
Location of establishments. It shall be unlawful for any person who owns, controls, exhibits, displays, or who permits to be exhibited or displayed any coin-operated amusement device to be located within 300 feet of any school, church, or hospital.
(Ord. No. 1374, 11-6-84)