Current Status Bill Number:3962 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970410 Primary Sponsor:Edge All Sponsors:Edge, Kelley, Witherspoon, T. Brown, Trotter, Keegan and Barfield Drafted Document Number:dka\4328mm.97 Residing Body:House Current Committee:Judiciary Committee 25 HJ Subject:Coin-operated devices, premises licenses for, regulation of machines; Gambling, Taxation, Political Subdivisions
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19970410 Introduced, read first time, 25 HJ
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-2729 SO AS TO PROVIDE NOTICE REQUIREMENTS AND PROCEDURES FOR PROTESTING ISSUING OF PREMISES LICENSE FOR VIDEO GAMES WITH A FREE PLAY FEATURE AND PROVIDE PENALTIES FOR VIOLATIONS; BY ADDING SECTION 12-21-2805 SO AS TO ALLOW COUNTIES AND MUNICIPALITIES TO REGULATE VIDEO GAMES WITH A FREE PLAY FEATURE; TO AMEND SECTION 16-19-60, RELATING TO THE EXEMPTION FROM APPLICATION OF THE GAMBLING OFFENSES TO COIN-OPERATED DEVICES WITH A FREE PLAY FEATURE, SO AS TO CLARIFY THAT THIS SECTION DOES NOT PROHIBIT STATE OR LOCAL REGULATION OF THESE MACHINES; TO AMEND SECTIONS 12-21-2720, AS AMENDED, AND 12-21-2746, RELATING TO COIN-OPERATED DEVICE LICENSES AND COUNTY AND MUNICIPAL BUSINESS LICENSE TAXES ON COIN-OPERATED DEVICES, SO AS TO ALLOW COUNTIES AND MUNICIPALITIES TO IMPOSE LOCAL LICENSE FEES ON GAMES WITH A FREE PLAY FEATURE, AND TO DELETE THE PROHIBITION ON MUNICIPAL REGULATION OF THE NUMBER OF MACHINES; TO AMEND SECTION 12-21-2804, RELATING TO THE REGULATION OF VIDEO MACHINES, SO AS TO PROHIBIT LICENSING OF MACHINES IN LOCATIONS WHERE MORE THAN FIFTY PERCENT OF GROSS PROCEEDS IS FROM MACHINES, TO DELETE OBSOLETE LANGUAGE, TO PROVIDE A CIVIL PENALTY FOR ENFORCEMENT, REDUCE THE CRIMINAL PENALTIES AND PUT THE JURISDICTION TO TRY THESE OFFENSES IN THE MAGISTRATES COURTS; TO AMEND SECTION 12-21-2728, AS AMENDED, RELATING TO MACHINE OPERATORS' LICENSES, SO AS TO PROVIDE FOR CIVIL AND CRIMINAL PENALTIES TO ENFORCE THIS LICENSE REQUIREMENT; AND TO AMEND SECTION 12-21-2791, RELATING TO THE LIMITATION ON PAYMENTS FOR A TWENTY-FOUR HOUR PERIOD, SO AS TO PROVIDE CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 19, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2729. (A) The person applying for the license required by Section 12-21-2728(B) must place a notice at least once a week for three consecutive weeks in a newspaper of general circulation in the area in which the person seeks to locate the proposed single place or premises.
(B) The person applying for the license required by Section 12-21-2728(B) must also place a notice by displaying a sign for fifteen consecutive days at the site of the proposed single place or premises. The sign must:
(1) state that a license for the operation of gaming machines is being sought and that the establishment will be able to issue cash payouts for winnings from these machines;
(2) tell an interested person where to send a written protest of the application;
(3) be in bold print;
(4) cover a space at least eleven inches wide and eight and one-half inches high;
(5) be posted and removed by an agent of the department.
(C) If the department receives any protests to the issuance of the license under Section 12-21-2728(B) for the proposed single place or premises, the matter becomes a contested case under Section 1-23-380. Any person filing a protest is a party to the action.
(D) A person required to obtain the license required by Section 12-21-2728(B) who operates a location without the license required by Section 12-21-2728(B) or after the license required by Section 12-21-2728(B) has been revoked, and any principle of an entity who allows the operation of a location without the license required by Section 12-21-2728(B) or after the license required by Section 12-21-2728(B) has been revoked, is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than two hundred dollars or imprisonment not exceeding thirty days, or both. Offenses under this subsection are triable in magistrates court."
SECTION 2. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2805. Counties and municipalities by ordinance may not prohibit machines in the jurisdiction but may impose regulations on machines located within their jurisdiction more restrictive than those provided in this article including, but not limited to, number of machines in a single place or premises, limits on payouts, hours of operation, age of players, proximity requirements, and further definitions of single place or premises. In addition to establishing criminal penalties as provided by law for violations of these ordinances, a county or municipality also may provide by ordinance for enforcement by means of civil penalties and seizure of machines operating in violation of ordinances. The jurisdiction of counties with respect to this section extends only to unincorporated areas of the county."
SECTION 3. Section 16-19-60 of the 1976 Code is amended to read:
"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 shall extend to coin-operated nonpayout machines with a free play feature; provided, that nothing herein shall authorize the licensing, possession, or operation of any machine which disburses money to the player. Nothing in this section prohibits the regulation of video games pursuant to Article 20 of Title 12, the Video Games Machines Act, including the prohibition on payoffs and location of these machines in counties where such payouts and machines are prohibited under the local option provisions of that article and the regulation of these machines by county or municipal ordinances as provided in that article. Nothing in state law shall be deemed to preempt city or county regulation of video game machines."
SECTION 4. Subsection (B) of Section 12-21-2720 of the 1976 Code, as last amended by Act 164 of 1993, are further amended to read:
"(B) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of the license fee imposed pursuant to subsection (A) for the equivalent license period."
SECTION 5. Section 12-21-2746 of the 1976 Code is amended to read:
"Section 12-21-2746. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a tax so levied exceed one-half of the amount levied by the State before March 28, 1956."
SECTION 6. Subsections (A) and (F) of Section 12-21-2804 of the 1976 Code, as added by Act 164 of 1993, are amended to read:
"(A) No person shall apply for, receive, maintain, or permit to be used, and the commission department shall not allow to be maintained, permits or licenses for the operation of more than eight machines authorized under Section 12-21-2720(A)(3) at a single place or premises for the period beginning July 1, 1993, and ending July 1, 1994. After July 1, 1994, the commission may not issue nor authorize to be maintained any licenses or permits for more than five machines authorized under Section 12-21-2720(A)(3) at a single place or premises. Any licenses or permits issued for the operation of machines authorized under Section 12-21-2720(A)(3) during the period of July 1, 1993, and July 1, 1994, for a two-year period shall continue in effect after July 1, 1994, provided that during the period of July 1, 1994, and July 1, 1995, no person shall maintain at a single place or premises more than eight machines authorized under Section 12-21-2720(A)(3). No machine may be licensed or relicensed in any location where the primary and substantial portion more than fifty percent of the establishment's gross proceeds is from machines licensed under Section 12-21-2720(A)(3). The commission department shall revoke the licenses of machines located in an establishment which fails to meet the requirements of this section. No license may be issued for a machine in an establishment in which a license has been revoked for a period of six months from the date of the revocation. The term 'gross proceeds' from the machines means the establishment's portion.
(F) A person violating subsections (A), (B), (D), or (E) of this section is subject to a fine civil penalty of up to five thousand dollars to be imposed by the commission department. The commission department, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution,. A criminal violation under this section is a misdemeanor, and, upon conviction, the person must be fined not more than ten thousand two hundred dollars or imprisoned not more than two years thirty days, or both. Offenses under this section are triable in magistrates court. The commission department shall revoke the licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section. Revocation is pursuant to the procedures set forth in Section 12-54-90."
SECTION 7. Section 12-21-2728 of the 1976 Code, as last amended by Act 501 of 1992, is further amended to read:
"Section 12-21-2728. (A)(1) In addition to all other licenses required by this chapter, a person who owns or operates devices described in Sections 12-21-2720 and 12-21-2730 shall obtain an operator's license biennially as follows:
(1)(a) fifty dollars for devices in Sections 12-21-2720(A)(1) and 12-21-2730;
(2)(b) two hundred dollars for devices in Section 12-21-2720(A)(2);
(3)(c) two thousand dollars for devices in Section 12-21-2720(A)(3).
(B)(2) Only one license is required regardless of the number or type of devices owned or operated, and the cost of that license is the highest fee enumerated in this section for a device owned or operated.
(C)(3) The licenses provided by this section are subject to Section 12-21-2734 and are a condition precedent to engaging in or the continuing operation of machines described in this chapter. Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(B)(1) The department, in addition to assessing the machine owner the civil penalty under Section 12-21-2804(F) for a violation of Section 12-21-2804(A), shall assess the licensee under this subsection a separate civil penalty not to exceed five thousand dollars for a violation at the licensee's location of Section 12-21-2804(A). The department, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the licensee must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.
(2) If a person's operator license is revoked under the provisions of Section 12-54-90 or if a person is convicted under the provisions of Section 12-21-2729, the person may not be issued a license for a period of two years and the person may not have a financial interest, either direct or indirect, in any business in which the owner of the business is required to obtain a license under this subsection."
SECTION 8. Section 12-21-2791 of the 1976 Code, as added by Act 164 of 1993, is further amended by adding a paragraph at the end to read:
"A person who pays, or allows the payment to, a player of a cash payout in which the cash value for a free game exceeds five cents or in which the total number of credits earned for free games exceeds two thousand five hundred credits for that location for any twenty-four hour period is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than two hundred dollars or imprisonment not exceeding thirty days, or both. Offenses under this section are triable in magistrates court. In addition, the department may assess a civil penalty of up to two thousand five hundred dollars and may revoke the owner/operator license for the single place or premises."
SECTION 9. This act takes effect June 1, 1997.