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Title: Electronic Game Arcade Business Regulation Act Ch
Date: 2016.12.28
Legislative: 1.Promulgated on February 3, 2000
2.Amended on March 12, 2009
3.Amended on June 10, 2009
4.Amended on December 28, 2016
Content: CHAPTER I GENERAL PRINCIPLES

Article 1
This Act is duly codified to regulate the electronic game arcade businesses,
and to safeguard social peace, good custom, public safety as well as physical
and mental health of the people.

Article 2
Governing authorities as stated in this Act refer to the Ministry of Economic Affairs
in the central government, the centrally-governed city governments
in centrally-governed cities, and the county (city) governments in counties (cities).

Article 3
An electronic game arcade business as stated in this Act refers to
a profit-seeking enterprise that places electronic game arcades for education
and entertainment of non-specified persons.

Article 4
Electronic game arcades as stated in this Act refer to amusement machinery
that is controlled by use of electricity, electronics, computer, mechanics
or other similar methods to generate or display sounds, lights, images,
graphics or motions, or amusement machinery that controls injection of steel
balls or steel sheets by the aforesaid methods, except for machinery not built
in by images or graphics and solely provided for riding of children.
Electronic game arcades set forth in the preceding Paragraph may not contain
any design or device of gambling or offenses against morals, and are
categorized as follows:
(1)Education category.
(2)Steel ball category.
(3)Entertainment category.
The categorization standard set forth in the preceding Paragraph shall be established by the central
governing authority.

Article 5
Operations of electronic game arcade businesses are rated as follows:
(1)General rate: It refers to operations only placing education-category electronic game arcades for
the entertainment of children, teenagers and the general public.
(2)Restricted rate: It refers to operations placing steel-ball-category or entertainment-category, or
supplementally placing education-category electronic game arcades solely for the entertainment of
people over the age of eighteen.
An electronic game arcade business may not operate under mixed business rates in the same place of
business.
The standard for determining the same place of business as stated in the preceding Paragraph shall be
established by the central governing authority.

CHAPTER II REGISTRATION AND REVIEW

Article 6
A manufacturer, importer or software development vendor of electronic
game arcades shall apply with the central governing authority for issuance
of categorization review papers for the software before production or import;
it shall also apply with the central governing authority for inspection upon
shipping or importing, where the qualified products will be issued the
machinery category identification certificate,except for production of
electronic game machines exclusively for export.
For the inspection set forth in the preceding Paragraph, the central
governing  authority may entrust relevant organizations for assistance.
To perform the categorization review set forth in Paragraph 1, the central
governing authority shall establish a review committee, of which the
organization and review operating procedure shall be established by the
central governing authority.
The central governing authority shall finalize the decision regarding the
categorization review and announce the result of the categorization review
within thirty days from the day it accepts the review application.
The manufacturer or importer set forth in Paragraph 1 shall apply for
inspection on machine configuration in accordance with the Commodity Inspection Act.

Article 7
An operator of electronic game arcade business may not display or use
electronic game arcades that have not been reviewed, categorized and
announced by the central governing authority, and may not arbitrarily
modify electronic game arcades that have been reviewed and categorized.
For the electronic game arcades of which the machinery configuration or
software has been modified, it shall be considered a new machine model,
and shall immediately apply for inspection and categorization review
in accordance with pertinent rules.

Article 8
In the course of application to set up an electronic game arcade, its place
of business shall comply with the following rules:
(1)For the place of business that is located in an area where urban planning
is enforced, it shall comply with the Urban Planning Act and the rules
governing zoning of urban land; for the place of business in a non-urban-planning
area, it shall comply with the Area Planning Act and the rules governing control
on use of non-urban land.
(2)The structure and equipment of the building for the place of business
shall comply with construction laws and regulations.
(3)Fire safety equipment in the place of business shall comply with fire
safety laws and regulations.

Article 9
The place of business of an electronic game arcade business shall maintain
a distance of no shorter than fifty meters from any junior high or elementary
school, high school, vocational school, or hospital.
The distance set forth in the preceding Paragraph shall be linearly measured
against the closest two points between borderlines of the two construction sites.

Article 10
An operator of electronic game arcade business shall conduct company or
business registration; the name and business items of the company or
business shall clearly state that it is an electronic game arcade business.
The preceding Paragraph regarding the name also applies when the company
or business files for registration of change for increase of business items of
the electronic game arcade business.

Article 11
After an electronic game arcade business has completed company or
business registration in accordance with law, it shall fill an application,
attached by documents confirming that its place of business complies
with Article 8 Subparagraph (1) and Subparagraph (2), to apply for issuance
of the business rating certificate for electronic game arcade business and
conduct registration of the following matters with the governing authority
in the centrally-governed city or the county (city) before it may commence
operations:
(1)Name of the electronic game arcade business.
(2)Business rating.
(3)Machinery category.
(4)Representative, if the electronic game arcade business is organized
as a company; person-in-charge, if it is organized as a business.
(5)Manager of the place of business.
(6)Address and area of the place of business.
Only one electronic game arcade business may be set up under the same door plate.
When registered matters set forth in Subparagraphs of Paragraph 1 incur
any change, registration of change shall be completed in advance.
When the governing authority voids or revokes company or business
registration matters of an electronic game arcade business in accordance
with law, the authority shall simultaneously void or revoke its business
rating certificate for electronic game arcade business.

Article 12
For the person-in-charge or the manager of the place of business of
an electronic game arcade business that incurs any of the following
situations, he or she may not assume the position; for the said person that has
assumed the position, he or she shall certainly be dismissed:
(1)The person has no legal capacity, has limited legal capacity, or has been
declared under assistance.
(2)The person has committed a crime prescribed by
the Organized Crime Prevention Act or the Statute Governing the Control
and Prohibition of Gun, Cannonball and Knife, and has been convicted under
final and unappealable judgment.
(3)The person has committed a crime under Chapter XVI of the Criminal Code
regarding offenses against sexual autonomy, under Chapter XVI-1
of the Code regarding offenses against morals, under Chapter XVII Articles 240
to Article 243, Chapter XXI Article 268 or Chapter XXVI Article 298 Paragraph 2,
under the Child and Youth Sexual Transaction Prevention Act, or Child
and Youth Sexual Exploitation Prevention Act, where it has been less than
five years since he or she was convicted under final and unappealable judgment
with the sentence enforced or since he or she was granted a pardon, or where
he or she was declared a suspended-sentence that has not yet expired.
(4)The person has committed a crime under the Tobacco and Narcotics Clearance Act
or the Anesthetic Drug Regulation Act, where it has been less than five years
since he or she was convicted under final and unappealable judgment with
the sentence enforced or since he or she was granted a pardon, or where he or
she was declared a suspended-sentence that has not yet expired.
(5)The person has committed a crime under the Narcotics Hazard Prevention Act,
where it has been less than five years since he or she completed observation,
abstention, correction or mandatory treatment, or was convicted under final
and unappealable judgment with the sentence enforced or since he or she was
granted a pardon, or where he or she was declared a suspended-sentence that has
not yet expired.
(6)The person has been finally and unappealably sentenced for imprisonment
of not less than five years, where it has been less than five years since the sentence
was enforced or a pardon was granted.
(7)The person has operated an electronic game arcade business, where it has
been less than three years since its profit-seeking enterprise registration, business
rating certificate or business rating certificate for electronic game arcade business
was voided or revoked.
In any of the events provided by Subparagraphs of the preceding Paragraph,
the electronic game arcade business shall make improvement within fifteen days
from the day following the day the fact occurs; for the arcade business that fails
to make improvement by the specified deadline, the governing authority in
the centrally-governed city or the county (city) shall order it to make improvement
by another deadline; for the arcade business that fails to make improvement
by the deadline, its business rating certificate for electronic game arcade business
and company or business registration shall be revoked.

CHAPTER III REGULATION

Article 13
An electronic game arcade business that has been issued the business rating
certificate for electronic game arcade business shall purchase public accident
liability insurance for its place of business before commencing operations,
and shall renew the insurance within the period of operations; the required
insurance scope and coverage shall be set by the central governing authority.

Article 14
An electronic game arcade business may provide prizes for customers to
exchange or receive from directly handling the machine; the value of the
prize in a restricted-rate electronic game arcade for each exchange or receipt
may not exceed two thousand New Taiwan Dollars (NT$2,000); the value of
the prize in a general-rate electronic game arcade for each exchange or receipt
may not exceed one thousand New Taiwan Dollars (NT$1,000).
An electronic game arcade business that conducts exchange may not engage
in conduct under the following Subparagraphs:
(1)Provide cash, negotiable securities or other currencies as the prize.
(2)Purchase back the prize provided to the customer.
The value of the prize for exchange shall be based on the original purchasing
invoice held by the operator.
The governing authority may adjust the upper limit of the prize value year
by year based on commodity price fluctuation.
A non-for-profit public interest organization given approval of the central
governing authority may operate public interest buyout stores to buy out prizes
exchanged from restricted-rate electronic game locations.

Article 15
One who does not hold the business rating certificate for electronic game arcade
business in accordance with this Act may not operate any electronic game
arcade business.

Article 16
Any other profit-seeking enterprise that is not an electronic game arcade business
may not offer its place of business for other people to place electronic game
machines for operations.

Article 17
An operator that runs an electronic game arcade business shall abide by
the following items of rules:
(1)A general-rate electronic game arcade shall prohibit entry and stay of persons
under the age of fifteen during school hours and after 10 p.m.
(2)A restricted-rate electronic game arcade shall prohibit entry of persons under
the age of eighteen.
(3)It shall hang the business rating certificate for electronic game arcade business
on an obvious spot of the place of business.
(4)Marking business grade and age limit at the prominent place of entrance of
the business premises.
(5)It may not use real coins, credit cards, debit cards, cash cards, stored-value cards,
or other electromagnetic records or chips used for debiting, withdrawing,
transferring or paying on electronic game machines; the size, type or weight of
tokens for entertainment use may not be identical or similar to that of real coins.
(6)Activities involved with gambling, impairing decency or other criminal
conducts are not allowed.
In performing the requirements of the previous Paragraph, employees of
an electronic game arcade business may ask consumers to present proof of age.

Article 18
An electronic game arcade business or its place of business that voluntarily
ceases operations for over one month shall file a report with the governing authority
in the centrally-governed city or the county (city) before it ceases operations;
the same rule applies when it resumes operations.

Article 19
An electronic game arcade business that is dissolving or terminating operations shall
file a report with the governing authority in the centrally-governed city or the
county (city) within fifteen days from the day following the day the fact occurs,
and shall return for voidance the business rating certificate for electronic game
arcade business.

Article 20
The governing authority in a centrally-governed city or a county (city) may
periodically or non-periodically dispatch its personnel to inspect operations
of an electronic game arcade, and the person-in-charge of the electronic game
arcade business, the manager of the place of business or its employees may
not avoid, hinder or reject the inspection.
When the governing authority in a centrally-governed city or a county (city)
conducts the inspection set forth in the preceding Paragraph, it may invite related
agencies such as urban planning, construction regulation, fire safety,
environmental protection, and health to cooperate in the inspection, and may
seek assistance from the police department when necessary.
Personnel that conduct the inspection set forth in Paragraph 1 shall take the
initiative to present identification documentation.

Article 21
An electronic game arcade business may not place electronic game arcades that
have been banned via public announcement before this Act comes into force
for entertainment of customers.

CHAPTER IV PENAL PROVISIONS

Article 22
For any arcade business in violation of Article 15, the wrongdoer shall be
penalized by imprisonment of not more than one year or detention, or imposed
by or jointly imposed by a fine of not less than five hundred thousand New
Taiwan Dollars (NT$500,000) but not more than two million and five hundred
thousand New Taiwan Dollars (NT$2,500,000).

Article 23
For any manufacturer, importer or software development vendor of electronic
game arcades in violation of Article 6 Paragraph 1, its person-in-charge or the
wrongdoer shall be sanctioned by a fine of not less than two hundred
thousand New Taiwan Dollars (NT$200,000) but not more than one
million New Taiwan Dollars (NT$1,000,000).
For any business in violation of Article 6 Paragraph 5, it shall be sanctioned in
accordance with the Commodity Inspection Act.
For any arcade business in violation of Article 7 Paragraph 1, its person-in-charge
or the wrongdoer shall be sanctioned by a fine of not less than one hundred
thousand New Taiwan Dollars (NT$100,000) but not more than five hundred
thousand New Taiwan Dollars (NT$500,000).

Article 24
For any arcade business in violation of Article 11 Paragraph 2 or Paragraph 3
regarding application for registration of change, its person-in-charge shall be
sanctioned by a fine of not less than fifty thousand New Taiwan Dollars (NT$50,000)
but not more than two hundred and fifty thousand New Taiwan
Dollars (NT$250,000), and it shall be ordered to make improvement by
a specified deadline; for the arcade business that fails to make improvement
by the deadline, it may be sanctioned consecutively for each day of violation.

Article 25
For any arcade business that arbitrarily changes the business rate or machinery
category of the electronic game arcade, or operates under mixed business ratings,
its person-in-charge shall be sanctioned by a fine of not less than two hundred
thousand New Taiwan Dollars (NT$200,000) but not more than one
million New Taiwan Dollars (NT$1,000,000), and it shall be ordered to
make improvement by a specified deadline; for the arcade business that fails
to make improvement by the deadline and still continues to operate, its business
rating certificate for electronic game arcade business and all or part of
its company or business registration matters shall be revoked.

Article 26
For any arcade business in violation of Article 13 by failing to purchase
public accident liability insurance, failing to renew insurance upon expiration
of the insurance term, canceling insurance without cause after purchasing
insurance, or failing to meet the insurance scope or coverage required
by the central governing authority, its person-in-charge shall be sanctioned
by a fine of not less than two hundred thousand New Taiwan Dollars (NT$200,000)
but not more than one million New Taiwan Dollars (NT$1,000,000), and it
shall be ordered to make improvement by a specified deadline; for the
arcade business that fails to make improvement by the deadline, its business
rating certificate for electronic game arcade business and all or part of its
company or business registration matters shall be revoked.

Article 27
For any arcade business in violation of Article 14, its person-in-charge shall
be sanctioned by a fine of not less than two hundred thousand
New Taiwan Dollars (NT$200,000) but not more than one
million New Taiwan Dollars (NT$1,000,000); for the arcade business that is
suspected of involving in gambling, it shall be moved to the law enforcement
agency for further proceeding in accordance with law.
 
Article 28
For any arcade business in violation of Article 16, the wrongdoer shall be
sanctioned by a fine of not less than one hundred thousand New Taiwan
Dollars (NT$100,000) but not more than five hundred thousand New Taiwan Dollars (NT$500,000), and it shall be ordered to make improvement by a specified
deadline;for the arcade business that still fails to make improvement by the
deadline, it shall be sanctioned consecutively for each violation until it makes improvement.

Article 29
For any arcade business in violation of Article 17 Paragraph 1 Subparagraph (1)
or Subparagraph (2), its person-in-charge shall be sanctioned by a fine of not less
than two hundred thousand New Taiwan Dollars (NT$200,000) but not more
than one million New Taiwan Dollars (NT$1,000,000); for any arcade
business in violation of Article 17 Paragraph 1 Subparagraph (3) or Subparagraph (4),
its person-in-charge shall be sanctioned by a fine of not less than fifty
thousand New Taiwan Dollars (NT$50,000) but not more than two hundred
and fifty thousand New Taiwan Dollars (NT$250,000), and it shall be
ordered to make improvement by a specified deadline; for the arcade business
that still fails to make improvement by the deadline, it shall be sanctioned
consecutively for each violation until it makes improvement.

Article 30
For any arcade business in violation of Article 17 Paragraph 1 Subparagraph (5),
its person-in-charge shall be sanctioned by a fine of not less than one hundred
thousand New Taiwan Dollars (NT$100,000) but not more than five hundred
thousand New Taiwan Dollars (NT$500,000), and it shall be ordered
to make improvement by a specified deadline; for the arcade business that still
fails to make improvement by the deadline, it shall be sanctioned consecutively
for each violation until it makes improvement.

Article 31
For any arcade business in violation of Article 17 Paragraph 1 Subparagraph (6),
the governing authority in the centrally-governed city or the county (city) shall
order it to cease operations, and shall suspend accepting its application for
registration of change for company or business name and representative or
person-in-charge. For the arcade business that has been convicted under
final and unappealable judgment by the Court, its business rating certificate
for electronic game arcade business and all or part of its company or business
registration matters shall be revoked.

Article 32
For any arcade business in violation of Article 18, its person-in-charge
shall be sanctioned by a fine of not less than fifty thousand New Taiwan
Dollars (NT$50,000) but not more than two hundred and fifty thousand
New Taiwan Dollars (NT$250,000).

Article 33
For any arcade business in violation of Article 19, its person-in-charge shall
be sanctioned by a fine of not less than fifty thousand New Taiwan
Dollars (NT$50,000) but not more than two hundred and fifty thousand
New Taiwan Dollars (NT$250,000), and it shall be ordered to return
for voidance the business rating certificate for electronic game arcade business
by a specified deadline; for the arcade business that still fails to return the
certificate for voidance by the deadline, the certificate shall be voided
via public announcement.

Article 34
For any arcade business in violation of Article 20 Paragraph 1 that avoids, hinders or rejects the
inspection, its person-in-charge shall be sanctioned by a fine of not less than one hundred thousand New
Taiwan Dollars (NT$100,000) but not more than five hundred thousand New Taiwan Dollars
(NT$500,000).

Article 35
For any arcade business in violation of Article 21, its person-in-charge or the wrongdoer shall be
sanctioned by a fine of not less than five hundred thousand New Taiwan Dollars (NT$500,000) but not
more than two million and five hundred thousand New Taiwan Dollars (NT$2,500,000), and its business
rating certificate for electronic game arcade business and all or part of its company or business
registration matters shall be revoked, with its machinery simultaneously forfeited and destroyed; for the
arcade business that is suspected of involving in gambling or offenses against morals, it shall be moved
to the law enforcement agency for further proceeding in accordance with law.

Article 36
Unless provided by Article 23 Paragraph 2, the fine and forfeiture prescribed by this Act shall be executed
by governing authorities in centrally-governed cities and counties (cities).

Article 37
(Deleted)

CHAPTER V SUPPLEMENTARY PROVISIONS

Article 38
An electronic game arcade business that has already held the profit-seeking
enterprise registration certificate before the articles of this Act amended
on January 6, 2009 come into force shall apply for the business rating
certificate for electronic game arcade business in accordance with Article 11
within six months from the day of implementation of the amendment of this Act;
for the arcade business that fails to file the application by the specified deadline,
its registration of electronic game arcade business shall be revoked.

Article 39
This Act shall come into force on the day of promulgation.
For the articles of this Act amended on January 6, 2009, their date of
implementation shall be set by the Executive Yuan.