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Section 12-21-2772. As used in this article:

(1) `Associated equipment' means a proprietary device, machine, or part used in the manufacture or maintenance of a video game machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.

(2) `Commission Department' means the South Carolina Tax Commission Department of Revenue.

(3) `Distributor' means any person who buys and sells or leases video machines or associated equipment in this State. A distributor may also own, operate, service, or repair video machines in this State.

(4) `Licensed establishment' means an establishment owned or managed by a person who is licensed pursuant to Article 19 of this chapter for the location of coin-operated nonpayout video machines with a free play feature.

(5) `Machine' means an electronic video games machine that, upon insertion of cash, is available to play or simulate the play of games as authorized by the commission department utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash.

(6) `Manufacturer' means any person that manufactures or assembles and programs machines or associated replacement equipment authorized for sale or use in this State.

(7) `Net machine income' means money put into the machine minus money paid out in cash. `Gross machine income' means the sum of all cash/money put into the machine.

(8) `Machine owner' means any person, other than a distributor, who owns and operates, maintains, repairs, or services one or more machines in licensed establishments. For purposes of this article `owner/operator' is defined the same as `machine owner'.

(9) `Contraband device/equipment' or `gray area machine' means any unlicensed machine.

Section 12-21-2774. Each machine licensed under this chapter:

(1) may not have any means of manipulation that affect the random probabilities of winning a video game;

(2) shall have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;

(4) must be capable of being accessed on demand by telecommunication from a central computer for purposes of polling or reading device activities and for central computer remote shutdown of machine operations.

Section 12-21-2776. (A) All machines must be registered and licensed by the commission department under procedures and guidelines issued by the commission department.

(B) By July 1, 1995, all machines registered and licensed by the commission department must be equipped with a commission department approved metering device. Each machine owner, operator, or licensed establishment must establish and implement cash controls required by the commission department.

Section 12-21-2778. Each machine must be licensed pursuant to Article 19 of this chapter by the commission department before placement or operation on the premises of a licensed establishment. Each machine must have the license prominently displayed pursuant to Article 19 of this chapter.

Section 12-21-2780. A seal must be affixed to the commission department approved metering device which corresponds to the license as set forth in Section 12-21-2778.

Section 12-21-2782. The commission department shall promulgate rules and regulations regarding the types of machines and equipment that must be licensed and the costs associated with inspection. Notwithstanding the provisions of Section 12-21-2774(1), any machine of a type licensed as of July 1, 1993, in this State and which satisfies the conditions of Section 12-21-2776(B) may continue to operate for five years from July 1, 1993. This section may must not be construed as authorizing cash payouts for credits earned after the effective date of a referendum prohibiting such the payouts.

Section 12-21-2784. Each machine manufacturer, distributor, operator, and licensed establishment must be licensed by the commission department pursuant to Article 19 of this chapter and this article before a machine or associated equipment is manufactured, distributed, sold, or placed for public use in this State.

Section 12-21-2788. The commission department shall deny or revoke an establishment license for machine placement that does not meet the requirements of Section 12-21-2786 pursuant to the provisions of Section 12-54-90.

Section 12-21-2790. It is unlawful to tamper with a machine with intent to interfere with its proper operation. A person who violates this section is guilty of a felony and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars, or both.

Section 12-21-2791. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the cash payout for credits earned for free games to two thousand five hundred credits per for each player per for each location during any twenty-four hour period. The cash value of credits for each free game shall be is limited to five cents.

Section 12-21-2792. Skimming of machine proceeds is the intentional excluding, or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.

Section 12-21-2793. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 may must not be located within five hundred feet within a county and within three hundred feet in a municipality of a public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; or house of worship. The owner of any location operating in violation of the provisions of this section shall be is guilty of a misdemeanor and shall, upon conviction, must be fined not less than one hundred dollars and not nor more than two hundred dollars or imprisoned for not more than sixty days. Each day of operation shall constitute constitutes a separate violation.

The penalty imposed by this section shall is not be effective until after September 1, 1993. Any location relocating pursuant to this section may

The provisions of this section do not apply with respect to any location with machines with licenses issued before May 30, 1993.

Section 12-21-2794. A person who, with intent to manipulate the outcome, payoff, or operation of a machine by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both.

Section 12-21-2796. A machine owner or distributor who wilfully places a machine on location or who wilfully causes a machine to be operated without the state approved metering device is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.

Section 12-21-2798. The commission department shall promulgate rules and regulations pertaining to the machines and persons licensed by it.

Section 12-21-2802. Each machine licensed under this article or Article 19 must have a prominently displayed sign citing the penalties provided by Sections 12-21-2790, 12-21-2792, and 12-21-2794 on the wall above the machine or affixed prominently to the machine. The commission department shall make these signs available free of charge.

Section 12-21-2804. (A) No person shall may apply for, receive, maintain, or permit to be used, and the commission shall department may 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 department 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. However, during the period of July 1, 1994, and July 1, 1995, no person shall may 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 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

(B) No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(A)(3) may advertise in any manner for the playing of the machines nor may a person offer or allow to be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(A)(3).

(C) No person under twenty-one years of age may receive a payout as a result of the operation of the machines licensed under Section 12-21-2720(A)(3).

(D) No owner, operator, or marketer may be issued a permit by the commission department for machines pursuant to Section 12-21-2720(A)(3) unless the owner, operator, or marketer has been a resident of the State for two years. The commission department shall require a statement of residency to be filed with the commission department as part of the application process for permits issued under Section 12-21-2720(A)(3) on forms and in a manner the commission department considers appropriate.

(E) It is unlawful to operate machines licensed under Section 12-21-2720(A)(3) between the hours of midnight Saturday night and six o'clock a.m. Monday morning.

(F) A person violating subsections (A), (B), (D), or (E) of this section is subject to a fine 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, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both. 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 12-21-2806. The cash payouts authorized by Section 16-19-60 of the 1976 Code relating to coin-operated devices may only be continued in any county in South Carolina after June 30, 1995, if a majority of the qualified electors of the county voting in a statewide referendum at the time of the 1994 general election vote in favor of the continued regulation and issuance of these licenses. The State Election Commission must place the question contained herein on the general

If a majority of the qualified electors within a county vote to terminate cash payoffs for credits earned on coin-operated devices after July 1, 1995, the Tax Commission Department of Revenue shall refund to any person holding a license for the operation of coin-operated devices, on a pro-rata basis, the portion of any license fees previously paid the commission department for licenses which extend beyond July 1, 1995.

The question put before the voters shall read as follows:
`Shall cash payouts for credits earned on coin-operated video game machines remain legal and subject to licensure and regulation by the State of South Carolina after June 30, 1995?'

Section 12-21-2808. In addition to the referendum to be held at the 1994 general election, counties are authorized to hold a referendum to determine whether or not cash payoffs provided for under Section 16-19-60 of the 1976 Code relating to coin-operated devices shall be authorized. The counties are authorized to hold such a referendum in the manner provided in this section except that no such referendum may be held until the 1998 general election and may also be held in subsequent general elections as provided herein.

(1) The referendum must be held:

(a) upon the passage of an ordinance of the governing body of a county providing for a referendum if the ordinance is passed at least ninety days before a general election; or

(b) upon a petition so requesting filed with the county election commission more than ninety days before the general election containing the signatures of at least ten percent, but not more than two thousand five hundred, of the qualified electors of the county as of the time of the preceding general election.

(2) In any county in which cash payoffs are authorized by Section 16-19-60 of the 1976 Code relating to coin-operated devices at the time of the referendum provided for in this section, the question put before the voters shall read as follows:

(3) In any county in which, at the time of the referendum provided for in this section, cash payoffs as provided for by Section 16-19-60 of the 1976 Code relating to coin-operated devices are not authorized, the question put before the voters shall read as follows:

`Shall cash payoffs for credits earned on coin-operated video game machines be allowed and subject to licensure and regulation by the State of South Carolina?'

(4) If the result of the referendum provided for in this section is not in favor of a continuation of cash payoffs for credits earned on coin-operated devices within the county, Section 16-19-60 of the 1976 Code shall not apply within the county after July first of the year following the referendum.

(5) If the results of the referendum provided for in this section are to authorize cash payoffs relating to coin-operated devices, Section 16-19-60 shall apply within such county after January first of the year following the referendum.

(6) The state election laws apply to the referendum provided in this section, mutatis mutandis.

(7) If a majority of the qualified electors within a county vote to terminate cash payoffs for credits earned on coin-operated devices, in a referendum as authorized in this section, the Tax Commission Department of Revenue shall refund to any person holding a license for the operation of coin-operated devices on a pro rata basis, the portion of any license fees previously paid the commission department for licenses which extend beyond July first of the year after the referendum."

SECTION 40. Section 12-21-5020(4) of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"(4) `Commission Department' means the South Carolina Tax Commission Department of Revenue."

SECTION 41. Section 12-21-5030 of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"Section 12-21-5030. The commission department shall administer the provisions of this article. Payments required by this article must be made to the commission department on the form provided by it. Dealers are not

SECTION 42. Section 12-21-5040 of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"Section 12-21-5040. The commission department may promulgate regulations necessary to enforce this article. The commission department shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed."

SECTION 43. Section 12-21-6010 of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"Section 12-21-6010. Official stamps, labels, or other indicia to be affixed to all marijuana or controlled substances must be purchased from the commission department. The purchaser shall pay one hundred percent of face value for each stamp, label, or other indicia at the time of the purchase."

SECTION 44. Section 12-21-6040(A) of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"(A) The commission department or a public employee may not reveal facts contained in a report or return required by this article or any information obtained from a dealer. Information contained in a report or return or obtained from a dealer may must not be used against the dealer in a criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this article from the dealer making the return."

SECTION 45. Section 12-21-6050 of the 1976 Code, as added by Section 70, Part II, Act 164 of 1993, is amended to read:

"Section 12-21-6050. The commission department shall credit the proceeds of the tax levied by this article to the general fund of the State."

SECTION 46. Section 12-27-390 of the 1976 Code, as last amended by Section 15, Part II, Act 164 of 1993, is further amended to read:

"Section 12-27-390. (A) One percent of the proceeds from the gasoline tax imposed pursuant to Sections 12-27-230 and 12-27-240 must be transmitted to the Department of Wildlife and Marine Natural Resources to be placed to the credit of a special water recreational resources fund of the state treasury, and all balances in the fund must be carried forward each year so that no part of it reverts to the general fund of the State. All of the funds must be allocated based upon the number of boats or other watercraft registered in each county pursuant to law and expended, subject to the approval of a majority of the county legislative

(B) The governing body of any coastal county, upon recommendation of a majority of the legislative delegation, including a majority of the resident senators, shall refund to any person purchasing gasoline for use in commercial or charter fishing boats operated exclusively in the coastal waters of this State all or a portion of the state tax on the gasoline returned to the county pursuant to this section. The refund, if any, must be made pursuant to regulations established by the governing body of the county.

(C) The South Carolina Wildlife and Marine Resources Department of Natural Resources must be reimbursed for engineering, design, rehabilitation, and law enforcement costs incurred in the administration of the provisions of this section, but funds for law enforcement may not exceed one-third of revenues to the special water recreational resources fund. Funds for reimbursement must be transferred from funds collected under the provisions of this section."

SECTION 47. Section 12-27-400 of the 1976 Code, as last amended by Section 17, Part II, Act 497 of 1994, is further amended to read:

"Section 12-27-400. (A) The monies collected pursuant to Section 12-27-240 must be deposited with the State Treasurer and expended for purposes set forth in this section. The monies must be apportioned among the counties of the State in the following manner:

(1) one-third in the ratio which the land area of the county bears to the total land area of the State;

(2) one-third in the ratio which the population of the county bears to the total population of the State as shown by the latest official decennial census; and

(3) one-third in the ratio which the mileage of all rural roads in the county bears to the total rural road mileage in the State as shown by the latest official records of the Department of Transportation. The Department of Revenue and Taxation shall add a line in the sales, use, and local option sales tax return form for the collection of information regarding the number of gallons of gasoline sold in each county for use in making allocations of `C' funds as provided in this section. The Department of Revenue and Taxation shall submit the percentage of the

Upon request of a county transportation committee, the Department of Transportation shall continue to administer the funds allocated to the county.

(B) The funds expended must be approved by and used in furtherance of a countywide transportation plan adopted by a county transportation committee. The county transportation committee must be appointed by the county legislative delegation and must be made up of fair representation from municipalities and unincorporated areas of the county. The members of a county transportation committee, in performing its duties under this section, shall be allowed and paid from `C' fund revenues such subsistence expense and mileage as is paid to members of other state boards and commissions. County transportation committees may join in approving a regional transportation plan, and the funds must be used in furtherance of the regional transportation plan. This subsection does not prohibit the county legislative delegation from making project recommendations to the county transportation committee. A county transportation committee may expend from the funds allocated under this section an amount not to exceed one thousand dollars for reasonable administrative expenses directly related to the activities of the committee. Administrative expenses may include costs associated with copying, mailings, public notices, correspondence, and recordkeeping but do not include the payment of per diem or salaries for members of the committee.

(C) At least twenty-five percent of a county's apportionment of `C' funds must be expended on the state highway system for construction, improvements, and maintenance. The county transportation committee, at its discretion, may expend up to seventy-five percent of `C' construction funds for activities including, but not limited to, local paving or improving county roads, for street and traffic signs, and for other paving projects. Roads constructed of rock must consist of not less than one inch nor more than two and one-half inches of rock or its equivalent.

(D) The funds allocated to the county also may be used to issue county bonds or state highway bonds as provided in subsection (J) , pay directly for appropriate projects, including engineering, contracting, and project supervision, and match federal funds available for appropriate projects.

(E) All unexpended `C' funds allocated to a county remain in the account allocated to the county for the succeeding fiscal year and must be expended as provided in this section.

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