Both the Nexus 5 and 7 have Android 5.1.1
For clarity, the correct nomenclature is “sleep,” not “screen time out.” --From the Android interface’s title.
Also of note: the power button works correctly w/ sound stopping on the device being manually put to sleep via the button and with no special code required to handle this.
However, on previous Android versions I did have this issue… Sound failing to be stopped on the power button presses. Additionally, My Nexus 4 with Android Jelly bean… All works as expected without additional code needed.
So my guess is this may be platform specific?
Hey Rob Miracle? Time to live up to your name! 
The relevant code is:
function setVolumeMute( isMute ) if isMute then print("Mute Audio") audio.pause( sound.channels.music1 ) audio.pause( sound.channels.music2 ) elseif not isMute then print("Unmute Audio") audio.resume( sound.channels.music1 ) audio.resume( sound.channels.music2 ) end end local function playMusic() audio.setVolume( sound.channels.musicVolume, { channel = sound.channels.music1 } ) audio.setVolume( sound.channels.musicVolume, { channel = sound.channels.music2 } ) clipDuration[1] = audio.getDuration( sound.fx[soundToPlay .. "01"] ) local function playAfterDelay() audio.play( sound.fx[soundToPlay .. "02"], { channel = sound.channels.music2, loops = -1 } ) end audio.play( sound.fx[soundToPlay .. "01"], { channel = sound.channels.music1 } ) sound.soundTimer = timer.performWithDelay( clipDuration[1], playAfterDelay ) end