HBA-DMH H.B. 2479 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2479
By: Danburg
Licensing & Administrative Procedures
3/20/2001
Introduced



BACKGROUND AND PURPOSE 

In 1993 and 1995, the legislature amended Texas statutes  to legalize
certain coin-operated machines that award players prizes and novelties that
have little value.  Some owners and operators of amusement redemption
machines, commonly referred to as eight liners, have taken advantage of the
vagueness of these provisions.  House Bill 2479 specifies limits for
amusement redemption machines and requires the comptroller of public
accounts to adopt rules to regulate these machines separately from
coin-operated machines. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated  
to the comptroller of public accounts in SECTION 1 (Sections 2153.502 and
2153.503, Occupations Code) of this bill. 

ANALYSIS

House Bill 2479 amends the Occupations Code to establish provisions for the
regulation of amusement redemption machines.  The bill requires the
comptroller of public accounts (comptroller) to adopt rules for regulating
the exhibition, display, operation, promotion, and use of amusement
redemption machines. The bill provides that nothing in this chapter shall
be construed to limit the authority of a political subdivision of this
state to regulate the location of amusement redemption machines, as
permitted for the purposes of zoning coin operated machines.   

The bill prohibits more than five amusement redemption machines from being
operated on any premises or more than 30 amusement redemption machines from
being operated at a premises on which bingo is regularly conducted in
accordance with the Bingo Enabling Act pursuant to a commercial lessor
license that was issued prior to January 1, 2001, and that has been in
effect continuously since that date.  The bill requires two or more
locations where amusement redemption machines were lawfully operated under
separate ownership and control prior to January 1, 2001, to be considered
to be separate premises more than 200 feet from each other.  The bill
requires the comptroller to adopt rules for the enforcement and fair
administration of restrictions on the number of amusement redemption
machines.   

The bill sets forth provisions for amusement redemption machine permits,
licenses, and fees.  The bill makes tax permits for amusement redemption
machines valid only to one address and increases the annual cost of a tax
permit for each amusement redemption machine from $60 to $120.  The bill
requires amusement redemption machine license applicants to identify the
address at which they will operate amusement redemption machines and to
display their license in a conspicuous place.  The bill increases the
annual cost of a general business license for amusement redemption machines
from the current minimum of $200 to a fixed $2,000.  The bill provides that
the exemption for certain owners or exhibitors of coin-operated machines
does not apply to a person who owns or exhibits an amusement redemption
machine.   



 EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.