Journal of the Senate
of the Second Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 9, 1996

Page Finder Index

| Printed Page 1870, Apr. 24 | Printed Page 1890, Apr. 24 |

Printed Page 1880 . . . . . Wednesday, April 24, 1996

Senator LEVENTIS from the Committee on Agriculture and Natural Resources submitted a favorable with amendment report on:

H. 3373 -- Reps. Seithel, Trotter, Wilder, Clyburn, Tripp, G. Brown, Hallman, Townsend, Bailey, Rice, Littlejohn, Herdklotz, Meacham, Jaskwhich, Elliott, Allison, Vaughn, Fulmer, McCraw, Whatley, Limehouse, Simrill, Shissias, Easterday, Breeland, L. Whipper, Harrell, Phillips, Haskins, Cato, A. Young, Stoddard, S. Whipper, Neilson, Sandifer, Davenport, Hines, Moody-Lawrence, Dantzler, Fleming, Lloyd, J. Brown, Limbaugh, Cain, Hodges, Boan, McKay, Walker, Beatty, Rhoad, Hutson, Spearman, Thomas, Cave, J. Young, T. Brown, Stille, Martin and Klauber: A BILL TO AMEND SECTION 47-1-160, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FINES PERTAINING TO CRUELTY TO ANIMALS, SO AS TO PROVIDE FOR DISTRIBUTION OF THE FINES TO ALL ANIMAL HUMANE SOCIETIES.

Ordered for consideration tomorrow.

CONCURRENCE

H. 3320 -- Reps. Cooper, Witherspoon, Meacham, Chamblee, Tripp, P. Harris, Cato, Trotter, Thomas, Townsend and Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-21-870, SO AS TO ENACT THE SOUTH CAROLINA PERSONAL WATERCRAFT AND BOATING SAFETY ACT OF 1996 AND TO PROVIDE PENALTIES FOR VIOLATIONS.

The House returned the Bill with amendments.

On motion of Senator McGILL, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

NONCONCURRENCE

S. 1081 -- Senators Drummond and Giese: A BILL TO AMEND SECTION 1-11-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC ENTITIES ELIGIBLE FOR PARTICIPATION IN THE STATE HEALTH AND DENTAL


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INSURANCE PLANS AND THE REQUIREMENTS FOR THIS PARTICIPATION, SO AS TO AUTHORIZE THE WITHHOLDING OF STATE FUNDS OTHERWISE DUE THESE ENTITIES SUFFICIENT TO COVER DELINQUENT PAYMENTS AND TO PROVIDE THE METHOD OF THE WITHHOLDING AND REMITTING OF THESE SUMS TO THE OFFICE OF INSURANCE SERVICES OF THE STATE BUDGET AND CONTROL BOARD.

The House returned the Bill with amendments.

On motion of Senator DRUMMOND, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

ORDERED ENROLLED FOR RATIFICATION

The following Bill was read the third time and having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:

H. 4754 -- Reps. Townsend and Cooper: A BILL TO AMEND SECTION 7-7-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN ANDERSON COUNTY, SO AS TO REDESIGNATE THE PRECINCTS AND ADD AN OFFICIAL DOCUMENT DESIGNATION WHICH IS KEPT ON FILE WITH THE DIVISION OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD AND DELETE A PROVISION CONCERNING THE ANNEXATION OF AREA TO THE CITY OF ANDERSON.

(By prior motion of Senator O'DELL)

THIRD READING BILLS

The following Bills were read the third time and ordered sent to the House of Representatives:

S. 944 -- Senators Greg Smith and Rose: A BILL TO DEVOLVE THE AUTHORITY FOR APPOINTMENTS AND BUDGETARY APPROVALS FOR CERTAIN OFFICES, BOARDS, AND COMMISSIONS FROM THE JOINT LEGISLATIVE DELEGATION


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REPRESENTING GEORGETOWN COUNTY TO THE GOVERNING BODY OF GEORGETOWN COUNTY.

(By prior motion of Senator GREG SMITH)

S. 972 -- Senator Bryan: A BILL TO PROVIDE FOR PAYMENT FOR THE ATTENDANCE OF MEETINGS BY THE LAURENS COUNTY TRANSPORTATION COMMITTEE.

(By prior motion of Senator BRYAN)

S. 604 -- Senator Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-114 SO AS TO PROVIDE THAT PASSENGER VANS OWNED OR OPERATED BY LOCAL CHAPTERS OF THE NATIONAL FEDERATION OF THE BLIND OF SOUTH CAROLINA MUST BE INSURED FOR MINIMUM AUTOMOBILE INSURANCE COVERAGES AT THE SAME STANDARD RATES AS ANY COMPARABLE PASSENGER VAN OWNED OR OPERATED BY ANY STATE AGENCY, AND REQUIRE THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO ENFORCE THESE PROVISIONS BY APPROPRIATE REGULATIONS, RULINGS, OR ORDERS.

(By prior motion of Senator SALEEBY, with unanimous consent)

S. 1176 -- Senator Hayes: A BILL TO AMEND TITLE 34, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BANKING AND FINANCIAL INSTITUTIONS BY ADDING CHAPTER 26 SO AS TO ENACT THE "SOUTH CAROLINA CREDIT UNION ACT OF 1996", WHICH PROVIDES FOR THE ORGANIZATION, OPERATION, AND SUPERVISION OF COOPERATIVE NONPROFIT THRIFT AND CREDIT ASSOCIATIONS KNOWN AS CREDIT UNIONS, AND TO PROVIDE FOR THEIR DUTIES, POWERS, AND FUNCTIONS; AND TO REPEAL CHAPTER 27 OF TITLE 34 RELATING TO COOPERATIVE CREDIT UNIONS.

Senator HAYES spoke on the Bill.

AMENDED, READ THE THIRD TIME, SENT TO THE HOUSE

S. 1219 -- Education Committee: A BILL TO AMEND SECTION 59-35-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO KINDERGARTEN PROGRAMS, SO AS TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 1996-97, THE BOARD OF TRUSTEES OF A DISTRICT SHALL IMPLEMENT FULL-DAY AS WELL AS HALF-DAY FIVE-YEAR-OLD KINDERGARTEN


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PROGRAMS, TO PROVIDE THAT PARENTS OF CHILDREN WHO ARE ELIGIBLE TO ATTEND FIVE-YEAR-OLD KINDERGARTEN MAY ELECT AT THEIR OPTION EITHER THE FULL-DAY OR HALF-DAY PROGRAM FOR THEIR CHILDREN, TO REQUIRE CERTAIN NOTICES FOR PURPOSES OF THESE KINDERGARTEN PROGRAMS, AND TO PROVIDE FOR THE MANNER IN WHICH CHILDREN ATTENDING THESE PROGRAMS SHALL BE COUNTED FOR PURPOSES OF COMPUTING AVERAGE DAILY MEMBERSHIP; AND TO AMEND THE 1976 CODE BY ADDING SECTION 59-35-20 SO AS TO PROVIDE PROCEDURES FOR SCHOOL DISTRICTS AND SCHOOLS TO OBTAIN WAIVERS FROM THE ABOVE REQUIREMENTS THAT FULL-DAY AND HALF-DAY FIVE-YEAR-OLD KINDERGARTEN PROGRAMS BE ESTABLISHED.

Senator SETZLER asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator SETZLER proposed the following amendment (S-EDUC\1219.1), which was adopted:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 59-35-10 of the 1976 Code is amended to read:
"Section 59-35-10. The board of trustees of each school district shall establish and provide kindergartens for children within its jurisdiction. All children in the five-year-old kindergarten program must be counted in the average daily membership of any public school district when public school funds are to be apportioned to the several school districts. State aid for the five-year-old kindergarten program must be distributed through the formula provided for in the 'Education Finance Act' (Act 163 of 1977).

Beginning with school year 1996-97, school districts which choose to offer an extended-day five-year-old kindergarten program shall be eligible for funding for the extended day equal to the EFA weight for a child attending a half-day five-year-old kindergarten program as funds are made available from the General Assembly. No local match is required for the extended-day funding. Local boards of trustees shall establish policies regarding priority of service in the extended-day program.


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Parents of children who are eligible to attend the extended-day five-year-old program must notify the district by January thirty-first of the year of the anticipated enrollment date, except that such notice for the 1996-97 school year only must be provided by July 15, 1996. Parents moving into the district after the notification date may apply for full-day kindergarten on a space available basis."/

Amend title to conform.

Senator SETZLER explained the amendment.

Senator FAIR spoke on the Bill.

There being no further amendments, the Bill was read the third time and ordered sent to the House of Representatives.

AMENDED, READ THE THIRD TIME

RETURNED TO THE HOUSE WITH AMENDMENTS

H. 4159 -- Ways and Means Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-3495 SO AS TO LIMIT THE DISTRIBUTION OF PROFITS DERIVED FROM THE GAME OF BINGO.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senators GREG SMITH, HAYES, RYBERG, DRUMMOND, RANKIN, ROSE and McCONNELL proposed the following amendment (4159R004.GS), which was adopted:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Article 24

Regulation of Bingo Games

Section 12-21-3910. This article may be cited as the Bingo Tax Act of 1996.

Section 12-21-3920. As used in this article:

(1) `Bingo' or `game' means a specific game of chance, commonly known as bingo, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers and symbols selected at random.


Printed Page 1885 . . . . . Wednesday, April 24, 1996

(2) `Department' means the South Carolina Department of Revenue and Taxation.

(3) `Card' means a printed or nonprinted design on which there are arranged five horizontal rows and five vertical columns forming twenty-five squares. Numbers are printed in twenty-four of the squares, and the term `free', `free square', or `free space' is printed in the square or space located in the center of the card. The five columns are denominated from left to right by the respective letters of the word `B-I-N-G-O'. Each square in the `B' column contains a number from one through fifteen inclusive; each square in the `I' column contains a number from sixteen through thirty inclusive; except for the center space which is marked as free, each square in the `N' column contains a number from thirty-one through forty-five inclusive; each square in the `G' column contains a number from forty-six through sixty inclusive; and each square in the `O' column contains a number from sixty-one through seventy-five inclusive. No number may appear twice on the same card.

(4) `Promoter' means an individual, corporation, partnership, or organization who is hired by a nonprofit organization to manage, operate, or conduct the licensee's bingo game. The person hired under written contract is considered the promoter.

(5) `Nonprofit organization' means a charitable, religious, or fraternal organization exempt from federal income taxation.

(6) `Session' means a consecutive series of games which must occur only between one o'clock p.m. and one o'clock a.m. No more than one session may occur during the permitted twelve-hour period. These limitations do not apply to games operated by state or county fairs.

(7) `Fair' means a recognized annual state or county fair. The fair must be recognized by the governing body of the county in which it is held, or in the case of the State, by the South Carolina Agricultural and Mechanical Society.

(8) `Ball' means a ball, disk, square, or other object upon which is printed a letter and number which corresponds to the letter and number of a square on a bingo card.

(9) `Cage' means a device, whether operated manually or by air blower, in which bingo balls are placed before the bingo game begins. (10) `Caller' means the house representative who is responsible for drawing bingo balls and announcing the configuration and the result of each drawing to the players.

(11) `Drawing' means the indiscriminate selection of a single ball from the cage.


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(12) `House' means the nonprofit organization and promoter licensed with the department.

(13) `Marker' means a device which indicates the number called.

(14) `Master-board' means the receptacle used by the house to display balls which are drawn during the bingo game.

(15) `Player' means one who participates in a game of bingo other than as an agent, promoter, or representative of the house.

(16) `Fund' means the Parks and Recreation Development Fund.

(17) `Building' means a structure surrounded by exterior walls or permanent firewalls.

(18) `Manufacturer' means a person who manufactures bingo cards for use in this State and who is approved by the department.

(19) `Distributor' means a person who brings or sells bingo cards in this State and who is approved by the department.

Section 12-21-3930. The game of bingo is not a lottery when:

(1) the nonprofit organization conducting the game has completed the application as described in Section 12-21-3940 and the application has been approved by the department;

(2) the promoter under contract with the nonprofit organization is licensed properly with the department;

(3) the nonprofit organization which is operated exclusively for charitable, religious, or fraternal purposes presents to the department upon application a certified copy of the statement issued by the Internal Revenue Service exempting it from federal income taxation;

(4) the game is conducted in accordance with the provisions of Sections 12-21-3990 and 12-21-4000 and approved cards are used.

Section 12-21-3940. (A) Before conducting a game of bingo, a nonprofit organization shall file with the department a written application in a form prescribed by the department, executed and notarized which must include:

(1) the name, address, and telephone number of the applicant and sufficient facts relating to its incorporation and organization to enable the department to determine whether it is an authorized organization;

(2) a copy of the organization's corporate charter and the Internal Revenue Service's statement exempting the applicant from federal income taxes;

(3) the names, addresses, and telephone numbers of the organization's officers;

(4) the place and time the applicant intends to conduct bingo under the license for which it applied;


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(5) the specific purpose to which the bingo net proceeds are to be devoted;

(6) the designation of a `promoter' as defined by this article;

(7) a copy of any contract or lease between a promoter and the nonprofit organization;

(8) the name, address, telephone number, birth date, and Social Security number of each person who will work at the proposed bingo games and receive compensation for the work, the nature of the work to be performed, and a statement as to whether or not the person has been convicted of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years;

(9) other information considered necessary by the department.

(B) Upon application for a license, the department has thirty days to approve or reject the application based on the requirements of this article.

(C) The nonprofit organization does not need to apply for renewal of the license as long as there are no changes in the operation or location of the game. Changes in information supplied on the original application must be forwarded to the department, in writing, within thirty days of the change. In the case of a change in the place and time, notice must be given thirty days before the change.

Section 12-21-3950. (A) A promoter under contract with a licensed nonprofit organization to manage, operate, or conduct a game shall file a written application for a promoter's license in a form prescribed by the department, executed and notarized, which must include:

(1) the name, address, telephone number, and Social Security number of the promoter or of each officer if the promoter is a corporation;

(2) a copy of the promoter's contract or lease with the nonprofit organization. A contract must exist between the sponsoring organization and the promoter detailing all expenses;

(3) the name, address, telephone numbers, and Social Security number of any person working for the promoter at the bingo game and receiving compensation for the work;

(4) a notarized statement as to whether or not the applicant for a promoter's license or any of his employees have been convicted of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years.

(B) Upon application for a license, the department has thirty days to approve or reject the application based on the requirements of this article.

(C) A promoter shall file a renewal application each year submitting any changes in information and documentation previously submitted as required by this section. The promoter is required to notify the


Printed Page 1888 . . . . . Wednesday, April 24, 1996

department, in writing, of any changes in the information supplied on the application within thirty days of the change.

(D) The license authorized by this section is for the privilege of engaging in business as a bingo promoter and must be purchased from the department at a cost of one thousand dollars a year.

A promoter shall obtain a promoter's license for each organization for which he operates bingo games.

Section 12-21-3960. The promoter and the nonprofit organization are jointly and severally liable for all taxes, penalties, interest, and fines imposed by this article and Chapter 54 of this title.

Section 12-21-3970. For each licensed nonprofit organization the promoter manages, operates, or conducts bingo, the promoter must purchase a promoter's license as provided in Section 12-21-3950 before operating or conducting bingo. No promoter is permitted more than five licenses. This license must be prominently displayed at the location where bingo is conducted.

Section 12-21-3980. (A) The promoter's license authorized by this article must not be transferred to another person, organization, entity, or corporation. The promoter's license, upon written application to the department, may be transferred to a new location for the remainder of the license period if the licensed nonprofit organization has applied for a location transfer as provided in subsection (B) of this section. The written application must be on a form prescribed by the department and must state, under penalties of perjury, that the information on the transfer application and the original license application is true and correct, or, in the case of the original application, is still valid and unchanged. No additional license fee is required with respect to the transfer of the location and the promoter may not conduct bingo at the new location until the new license is issued.

(B) The nonprofit organization's license authorized by this article must not be transferred to another nonprofit organization and is valid and continues in force so long as the nonprofit organization to which it is issued continues to conduct the bingo games at the location authorized by the license.
The nonprofit organization's license, upon written application to the department, may be transferred to a new location. The written application must be on a form prescribed by the department and must state, under penalties of perjury, that the information on the transfer application and the original license application is true and correct or, in the case of the original application, is still valid and unchanged. The nonprofit


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organization cannot operate at the new location until the new license is issued.

(C) No promoter or nonprofit organization may lease, sell, rent, lend to, or exchange with another person, organization, corporation, or other entity a promoter's or bingo license issued pursuant to this article.

Section 12-21-3990. (A) The game of bingo must be played in the following manner:

(1) Bingo is played by more than one player and a caller who is associated with the house. Each player must pay no more than face value for each card to be played during the course of a game and may purchase the card for a specified number of games. After the player has purchased a card or cards for a specified number of games, the house cannot require or accept an additional payment or consideration by the player in order to complete the specified number of games.

(2) Before each game begins, the caller shall announce to the players the configuration or configurations that will win the game. A configuration consists of a number of grids covered in the manner announced by the caller. Any method of playing the games is allowed if the method is announced before each game beginning including, but not limited to, wild card games.

(3) The prize must be awarded to the winner of that game without delay. For multiple winners, the prize must be divided equally among the winners. In the case of a merchandise prize, the cash value of the merchandise may be divided among the winners. Purchase receipts of merchandise awarded as prizes must be made available to players and the department for confirmation of value.

(4) The caller shall draw and announce numbers from the cage one at a time. If a player has a card with the called number on it, he may use a marker to cover the square which contains the number. After the number is announced, it must be indicated on the master-board by the caller.

(5) When a player covers sufficient squares on a card to achieve the winning configuration, he may indicate to the caller. The caller shall require that the player's card be checked against the master-board in the presence of the other players to determine if the squares were covered accurately. If it is determined by the caller that the player accurately has covered the squares and achieved the preannounced configuration, the player is declared the winner. If it is determined that the player has not covered the squares accurately and achieved the preannounced configuration, play continues in that game.


| Printed Page 1870, Apr. 24 | Printed Page 1890, Apr. 24 |

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