The extra session of the General Assembly of the State of South Carolina, begun and holden at Columbia on the fifth Tuesday in June, being the 29th day of the month.

Pursuant to the Executive Order of the Governor, the members of the Senate assembled this day in the Senate Chamber at 12 o'clock Noon.

Executive Order No. 99-32

WHEREAS, the video gaming legislation pending before the General Assembly of the State of South Carolina is a matter of great importance to the citizens of this State; and
WHEREAS, the General Assembly has been unable to agree on comprehensive video gaming legislation; and
WHEREAS, Article IV, Section 19 of the South Carolina Constitution states inter alia:
The Governor may on extraordinary occasions convene the General Assembly in extra session.
and,
WHEREAS, being mindful of the duties and responsibilities placed on me by the Constitution and laws of this State; and in determining that there exists an extraordinary occasion requiring me to convene the General Assembly in extra session prior to the next regular session of the General Assembly.
NOW, THEREFORE, pursuant to the powers conferred upon me by the Constitution and Statutes of the State of South Carolina, and by the power vested in me by Article IV, Section 19 of the Constitution of the State of South Carolina, I hereby call an extra session of the General Assembly of South Carolina to convene at the State House in Columbia on Tuesday, June 29, 1999, at Noon.
GIVEN UNDER MY HAND AND THE GREAT SEAL OF THE STATE OF SOUTH CAROLINA, THIS 24th DAY OF JUNE, 1999.
/s/JIM HODGES
Governor
ATTEST:
/s/JAMES M. MILES
Secretary of State

The Senate was called to order by the PRESIDENT, the Honorable Robert L. Peeler.

The proceedings were opened with prayer by the Chaplain, the Reverend George E. Meetze, of Columbia, S.C., as follows:

Beloved, hear the words of the Psalmist in Psalm 68 (v. 8):

"Surely for Your sake have I suffered reproach, and shame has covered my face.

I have become a stranger to my own kindred, an alien to my father's children."
Let us pray.

Good Lord, we remember in Greek mythology that it was Sisyphus, king of Corinth, who was condemned in Hades eternally to push a stone to the top of a hill, and it always rolled down again short of the top.

Help us to recover and regroup, and with renewed strength try once more to achieve our goals and gain the summit of success in our responsibilities in these chambers. Lord, give us more skill, more tact and more tenacity.

We join our hearts in hallowed petition in the words of Johannes Zwick in the fifteenth century:

"O God, the star of dawning day, give us that light for which we pray.

Your holy flame within us glow, that we do not lack of grace may know."

Amen.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

The following appointment was transmitted by the Honorable James H. Hodges:

Initial Appointment, Lancaster County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:

Lee R. Deese, 3301 Lee Deese Road, Kershaw, S.C. 29067 VICE T. J. Gardner (resigned)

At 7:05 P.M., Senator HUTTO requested a leave of absence until 2:00 P.M. tomorrow.

At 7:05 P.M., Senator WASHINGTON requested a leave of absence until 4:00 P.M. tomorrow.

At 7:05 P.M., Senator PASSAILAIGUE requested a leave of absence until 4:00 P.M. tomorrow.

At 7:05 P.M., Senator RYBERG requested a leave of absence until 6:00 P.M. Tuesday.

At 7:05 P.M., Senator RAVENEL requested a leave of absence for the balance of this session.

On motion of Senator J. VERNE SMITH, at 7:05 P.M., Senator LEATHERMAN was granted a leave of absence for the balance of the week.

At 12:20 P.M., Senator DRUMMOND asked unanimous consent that the Senate not proceed to consideration of matters within items 6-12 under the Order of Business provided in Rule 32, thereby remaining "in the box" for the duration of the extra session.

At 12:20 P.M., on motion of Senator DRUMMOND, the Senate receded from business until 2:00 P.M.

At 12:20 P.M., Senator ELLIOTT asked unanimous consent to be recorded as voting in favor of the Report of the Committee of Conference on H. 3002 if a roll call is ordered.

There was no objection.

The following were introduced:

S. 911 (Word version) -- Senators Courson, Alexander, Anderson, Bauer, Branton, Bryan, Cork,, Courtney, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hayes, Holland, Hutto, Jackson, Land, Leatherman, Leventis, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Rankin, Ravenel, Reese, Russell, Ryberg, Saleeby, Setzler, Short, J. Verne Smith, Thomas, Waldrep, Washington and Wilson: A JOINT RESOLUTION A JOINT RESOLUTION RATIFYING A PROPOSED AMENDMENT TO THE CONSTITUTION OF THE UNITED STATES OF AMERICA RELATING TO THE DESECRATION OF THE AMERICAN FLAG.

Senator COURSON explained the Joint Resolution.

Read the first time and referred to the Committee on Judiciary.

S. 912 (Word version) -- Senators Passailaigue, McConnell, Washington, Ford, Mescher, Ravenel, Branton, and Grooms: A SENATE RESOLUTION TO COMMEND AND EXPRESS DEEP APPRECIATION TO MR. FRANK O. HUNT FOR HIS MANY YEARS OF DEDICATED SERVICE AND OUTSTANDING INVESTIGATIVE REPORTING IN THE CHARLESTON AREA, UPON HIS RETIREMENT FROM WCIV-TV.

The Senate Resolution was adopted.

S. 913 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO RECOGNIZE MRS. BARBARA B. STONE, EXECUTIVE DIRECTOR OF THE GREENVILLE COUNTY DISABILITIES AND SPECIAL NEEDS BOARD, FOR HER THIRTY YEARS OF CONTRIBUTIONS TO THE BOARD ON THE OCCASION OF HER RETIREMENT.

The Concurrent Resolution was adopted, ordered sent to the House.

S. 914 (Word version) -- Senator Land: A CONCURRENT RESOLUTION APPLAUDING THE ACE CLUB OF MANNING ELEMENTARY SCHOOL IN CLARENDON COUNTY FOR ITS OUTSTANDING EFFORTS IN CARING FOR THE ENVIRONMENT AND CONGRATULATING THE CLUB MEMBERS ON THEIR RECOGNITION AS CHAMPIONS OF THE ENVIRONMENT FOR 1998 AND 1999 AND AS WINNERS OF THE 1999 EAGLES ENVIRONMENTAL AWARD.

The Concurrent Resolution was adopted, ordered sent to the House.

H. 4264 (Word version) -- Reps. Wilkins, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION COMMENDING AND THANKING BARBARA L. HAYNES OF COLUMBIA FOR HER MANY YEARS OF DEDICATED SERVICE TO THE STATE AS AN EMPLOYEE OF THE LEGISLATIVE COUNCIL, AND WISHING HER HAPPINESS UPON HER RETIREMENT.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4265 (Word version) -- Reps. Wilkins, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO CONGRATULATE AND COMMEND EVELYN GEORGIANA MOONEYHAM OF COLUMBIA FOR MORE THAN THIRTY YEARS OF OUTSTANDING SERVICE TO THE STATE OF SOUTH CAROLINA, TO EXPRESS THE GENUINE AND DEEP APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY FOR HER DEDICATED SERVICE ON BEHALF OF THE PEOPLE OF SOUTH CAROLINA AS PART OF THE LEGISLATIVE PROCESS, ESPECIALLY FOR HER LOYALTY AND TIRELESS EFFORTS WHILE WORKING WITH THE SENATE JUDICIARY COMMITTEE AND THE SOUTH CAROLINA LEGISLATIVE COUNCIL, AND TO EXTEND BEST WISHES TO HER ON THE OCCASION OF HER RETIREMENT FROM PUBLIC SERVICE.

The Concurrent Resolution was adopted, ordered returned to the House.

The Senate reassembled at 2:00 P.M., and was called to order by the PRESIDENT.

At 2:00 P.M., on motion of Senator PEELER, the Senate receded from business until 3:00 P.M.

At 3:05 P.M., the Senate resumed.

At 3:05 P.M., on motion of Senator HOLLAND, the Senate receded from business until 3:20 P.M.

At 3:25 P.M., the Senate resumed.

At 3:25 P.M., on motion of Senator MARTIN, the Senate receded from business until 4:00 P.M.

At 4:05 P.M., the Senate resumed.

Senator MOORE was recognized to update the Senate on the progress the conferees had made on potential modifications to the Free Conference Report on H. 3002.

On motion of Senator MOORE, with unanimous consent, Senators HAYES, PASSAILAIGUE and MOORE were granted leave to be counted in any quorum calls while meeting with the House conferees on H. 3002.

At 5:05 P.M., on motion of Senator HOLLAND, the Senate receded from business subject to the Call of the Chair.

At 7:00 P.M., the Senate resumed.

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

Senator MOORE asked unanimous consent to make a motion to reconsider the vote whereby the Senate adopted the Free Conference Report.

There was no objection.

On motion of Senator MOORE, with unanimous consent, the Free Conference Report was withdrawn.

Senator MOORE, with unanimous consent, moved that the second Report of Free Conference be adopted with the Journal reflecting the same roll call vote as was taken on the adoption of the first report, unless a member notifies the Desk that he or she wishes to vote differently.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Cork
Courson                   Courtney                  Elliott
Ford                      Giese                     Glover
Gregory*                  Grooms                    Hayes
Holland                   Hutto                     Jackson
Land                      Leatherman*               Leventis
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Passailaigue              Patterson
Peeler                    Rankin                    Ravenel
Reese                     Russell*                  Saleeby
Setzler                   Short                     Smith, J. Verne
Thomas*                   Waldrep                   Washington
Wilson *

Ryberg                    Drummond                  Fair

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

A new Report of Free Conference was submitted and adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 05/18/99--H.)

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

SECTION   1.   Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:

"Section 12-21-2710.   It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."

SECTION   2.   Section 12-21-2712 of the 1976 Code is amended to read:

"Section 12-21-2712.   Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."

SECTION   3.   A. Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:

"(3)   a machine of the nonpayout type, or in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed."

B.   Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"(C)   The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A)."

C.   Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F), which read:

"(E)   The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.

(F)   Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."

SECTION   4.   Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 12-21-2726.   Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, each machine licensed pursuant to this section must be operated in a stand-alone fashion and may not be linked in any way to another coin-operated machine or device."

SECTION   5.   Section 16-19-40 of the 1976 Code is amended to read:

"Section 16-19-40.   If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts, or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts, or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place, or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."

SECTION   6.   Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (M) which reads:

"(M)   A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title 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 in addition may be fined not more than twenty-five thousand dollars."

SECTION   7.   Section 16-19-50 of the 1976 Code is amended to read:

"Section 16-19-50.   Any person who shall set up, keep, or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts, and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."

SECTION   8.   Section 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.

SECTION   9.   (1) A statewide referendum must be conducted November 2, 1999, to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission shall place the exact question contained in item (2) of this subsection on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.

(2) The question put before the qualified electors in the referendum shall read:

"Shall cash payouts for credits earned on video game machines continue to be allowed after June 30, 2000?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

(3) The State Election Commission shall place the following explanation of the referendum question on the ballot:

"A majority 'yes' vote shall mean that cash payouts for credits earned on video game machines shall continue to be allowed, with an increase in the legal payout to $500 per payout and with additional taxes and regulation.

A majority 'no' vote shall mean that cash payouts for credits earned on video game machines shall not be allowed after June 30, 2000."

(4)   In addition to all license taxes and fees imposed by the State on video games with a free play feature pursuant to Section 12-21-2720(A)(3) of the 1976 Code imposing such licenses and fees, there is imposed a one-time surcharge license fee of fifty dollars for each such licensed machine due and payable to the Department of Revenue on or before September 1, 1999. Failure to remit the surcharge in a timely manner is deemed failure to pay the license tax imposed pursuant to Section 12-21-2720(A)(3). The revenues of this fee shall be used to defray the expenses of the statewide referendum required by this act.

SECTION   10.   Title 12 of the 1976 Code is amended by adding:

Section 12-22-10. As used in this chapter, unless the context clearly requires otherwise:

(1)   'Director' means the Director of the Department of Revenue.

(2)   'Chief' means the Chief of the South Carolina State Law Enforcement Division.

(3)   'Division' means the South Carolina State Law Enforcement Division.

(4)   'Associated equipment' means parts and components that affect win and loss or that communicate, display, or affect the number of credits won, lost, or played.

(5)   'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.

(6)   'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.

(7)   'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.

(8)   'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.

(9)   'Distributor' means any person who sells, buys and sells, gives, loans, or is the lessee or the lessor of machines. A distributor may also:

(a)   service or repair machines in this State;

(b)   own machines which are not placed into operation in an establishment without obtaining a machine owner's license;

(c)   own machines which are placed into operation in an establishment only if a machine owner's license is obtained; and

(d)   operate machines which are placed into operation in an establishment only if a machine operator's license is obtained.

(10)   'Establishment' or 'location' means premises with machines.

(11)   'Gross machine income' means the amount of money that goes into the machine.

(12)   'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash or coin, is available to play or simulate the play of games utilizing a video display and microprocessors, in which the player may receive free games or credits that are redeemed for cash except as prohibited by this chapter. Each player station of a multi-player unit is a separate machine.

(13)   'Machine owner' means any person, other than a distributor, who owns one or more machines.

(14)   'Machine operator' means any person who owns, operates, or manages an establishment with one or more machines.

(15)   'Manufacturer' means any person that manufactures, assembles, or programs machines or controllers for sale or use in this State.

(16)   'Net machine income' means the amount of money that goes into the machine less payouts.

(17)   'Payback' means the theoretical percentage of return to a player.

(18)   'Payout' means the total amount a player is paid at the end of a play period, regardless of the amount the player has deposited in the machine.

(19)   'Person' means any individual, partnership, corporation, association, entity, or organization of any type.

(20) 'Play period' means the period of time from when money is put into the machine until payout.

(21)   'Player' means a person who participates in the playing of a machine.

(22)(a)   'Principal' means:

(i)     every person;

(ii)   an association;

(iii)   all partners of a partnership, limited partnership, or limited liability partnership;

(iv)   all members of a limited liability company, or if the company is a manager-managed company, all members and managers;

(v)   trust and its beneficiaries;

(vi)   corporation, its directors, officers, and stockholders with a ten percent or more direct or beneficial interest or any person or entity that receives more than ten percent of the net income; or

(vii)   an employee who has day-to-day operational management responsibilities for the business or entity; which has or will have a direct or indirect ownership interest in a machine or machines, a manufacturer, a machine owner, distributor, a machine operator or the establishment for which the applicant seeks a new or renewal license.

(b)   'Indirect ownership interest' includes, but is not limited to, a loan or extension of credit or forgiving of a loan of ten thousand dollars or more, made to or for the benefit of an applicant or licensee. 'Indirect ownership interest' does not include a loan or extension of credit made by a state or federally chartered financial institution or a restricted or supervised lender licensed under South Carolina law. Multiple loans of less than ten thousand dollars may not be used to evade the requirements of this chapter and such activity is grounds for revocation of any and all licenses issued pursuant to Section 12-22-320 held by the applicant.

(c)   If a corporation is a member of a controlled group of corporations, as defined in 26 U.S.C. 1563, or a member of an affiliated group of corporations, as defined in 26 U.S.C 1504, and at least one member of the group of corporations is a publicly-held corporation, then only the corporation which engages in the business or activity required to be licensed pursuant to this chapter is considered a principal for purposes of this chapter, along with its directors, officers, and stockholders as described in subitem (a)(vi).

(d)   For purposes of item (c) of this subsection, 'publicly held corporation' means a corporation:

(i)     whose shares are traded on a national exchange; and

(ii)   whose total assets at the end of the corporation's most recent fiscal quarter exceeded one billion dollars.

(23)   'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division reasonably considers necessary to administer and enforce the provisions of this chapter.

(23)   'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.

Section 12-22-20.   (A)   Unless specifically granted to the division, the department has all powers necessary and proper to execute fully and effectively the provisions of this chapter including, but not limited to, the power:

(1)   to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;

(2)   to prescribe the forms which must be used by any licensee involved in the manufacturing, ownership, distribution or operation of machines or an establishment or other coin-operated devices licensed pursuant to this chapter;

(3)   to suspend any license authorized by this chapter without notice or hearing upon a determination that a licensee is willfully violating the provisions of this chapter, prima facie evidence of which is sufficient after written notice by the department has been sent to the licensee regarding a violation of this chapter and the violation has not been cured within a reasonable time as directed by the department in that written communication; any suspension must remain in effect until the department determines that the cause for the suspension has been cured or abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress to implement necessary corrective measures;

(4)   to suspend any license authorized by this chapter without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by the licensee or the condition of the licensee's facilities; any suspension must remain in effect until the department determines that the cause for the suspension has been abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress toward abating the hazard;

(5) to adopt regulations in accordance with the Administrative Procedures Act; and

(6)   to take any other action as may be reasonable or appropriate to enforce this chapter.

(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.

Section 12-22-30.   Except as provided in Section 12-54-240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is public information, except for proprietary information. The department may disclose information to the division and to other governmental entities in and outside of this State.

Section 12-22-40. The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.

Section 12-22-50. The department may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.

Section 12-22-60. All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.

Section 12-22-70. All records of a licensee must be kept in the manner prescribed by the department. All records shall be retained for at least the period for which taxes may be assessed under Section 12-54-85.

Section 12-22-80. All applicants and their principals shall provide access for the department and division to all of the applicant's financial records pertaining to the financing of the applicant in order to evaluate statements and documentation supplied with the application in connection with background investigations.

Section 12-22-90. (A) The director, the employees of the department, the chief, and the employees of the division, may not directly or indirectly, individually, or as a member of a partnership, or as a shareholder with a one percent or more direct or beneficial interest in a corporation, have a financial or ownership interest in:

(1) a testing laboratory chosen by the department pursuant to this chapter Section 12-22-960;

(2) a machine;

(3) a machine owner;

(4) a machine operator;

(5) a manufacturer;

(6) a distributor; or

(7) an establishment.

(B) The director, the employees of the department, the chief, and the employees of the division may not directly or indirectly receive income from, receive a loan fund from, or be forgiven from repaying any loan from a testing laboratory or any person or business entity issued a license pursuant to Section 12-22-320.

Section 12-22-310. (A)   Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.

(B)   Before placement or operation, a machine must be licensed.

(C)   Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as otherwise provided in this chapter. Any transfer of a business, or a change of ownership, possession, or control of an interest in a business holding a license issued under Section 12-22-320 must be conducted in accordance with Section 12-22-350. Any transfer of a machine, or a change of ownership, possession, or control of a machine licensed under Section 12-22-330 must be conducted in accordance with Section 12-22-350.

Section 12-22-320. (A)(1) Every two years a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application. The fees are as follows:

(a)   manufacturer, ten thousand dollars;

(b)   distributor, ten thousand dollars; and

(c)   owner, two thousand dollars.

(2)   There is no licensing fee imposed upon:

(a)   a person licensed as a machine operator; or

(b)   an establishment.

(B)(1)   A licensed manufacturer who is also engaged in business as a machine owner, distributor, or machine operator, shall obtain a separate license for each activity for which a license is required.

(2)   A licensed machine owner who is also engaged in business as a manufacturer, distributor, or machine operator, shall obtain a separate license for each activity for which a license is required.

(3)   A licensed distributor who is also engaged in business as a manufacturer, machine owner, or machine operator, shall obtain a separate license for each activity for which a license is required.

(4)   A machine operator may operate more than one establishment under the same machine operator's license but shall obtain a separate establishment license for each establishment in which machines are maintained.

(5)   Each licensed establishment shall have a licensed machine operator.

(C)   At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to subsection (A).

(D)   Biennial licenses issued under this chapter for machine owners, machine operators, distributors, and manufacturers expire according to the county of the licensee's principal place of business. For nonresident licensees, licenses expire according to the county where the licensee's registered agent is located. For establishments, the license expires according to the county where the establishment is located. The expiration dates are the last day of:

(1)   February in years which end in an:

(a)   odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley Counties;

(b)   even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg Counties;

(2)   May in years which end in an:

(a)   odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry Counties;

(b)   even number for Lancaster, Marion, Marlboro, Union, and York Counties;

(3)   August in years which end in an:

(a)   odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter Counties;

(b)   even number for Richland County;

(4)   November in years which end in an:

(a)   odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood Counties;

(b)   even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg Counties.

If a license purchased will be for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(E)   The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuance of the licenses by county or by any other method considered appropriate by the department.

(F)   A license authorized in this section shall not be issued unless and until the department has completed its background investigation.

(G)   An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.

(H)   A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.

Section 12-22-330. (A) (1) Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State.

(2)   The machine owner shall pay a biennial fee of four thousand dollars for each machine license. The machine owner shall apply for and obtain from the department the license required by this section before the first day of June every two years or before doing an act taxable under this chapter. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(3)   A license for a machine shall be issued only to a person who has been licensed pursuant to Section 12-22-320 for use at a licensed establishment. No machine may be operated without a license.

(B)   As an alternative to the license required in subsection (A), a person may be granted a nonrefundable license beginning April first and to expire September thirtieth, following the date of issue, which may not be prorated. The fee for this six-month license is one-fourth the biennial license fee.

(C)   If a license required in subsection (A) is purchased after June thirtieth, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(D)   The owner or operator of any machine which has multi-player stations shall purchase a separate license for each such station and any such multi-player station counts as a machine or device when determining the number of machines or devices authorized for licensure under this chapter.

(E)   A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.

(F)   No machine may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.

(G)   Upon application being made for a license to operate any machine or apparatus under this chapter, the department may presume that the operation of the machine or apparatus is lawful and when a license has been issued for the operation thereof, the sum paid for the license may not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(H)   The issuance of a license under the provisions of this chapter by the department does not make lawful the operation of any gambling machine or device, the operation of which is made unlawful under the laws of this State.

(I)   Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.

(J)   A person with a license issued pursuant to this chapter shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.

(K)   No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application. If the distributor, owner, or operator has more than one principal, then only the principal in whose name the license is issued as provided in Section 12-22-1110(A)(2) must be a resident of the State for two years before the date of application.

Section 12-22-340. (A)   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, other than those referred to in Article 15, in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-330(A) for the equivalent license period.

(B)   No county may limit the number of machines within the boundaries of a county. A county may by ordinance impose a license fee on machines, other than those referred to in Article 15, located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-330(A) for the equivalent license period.

Section 12-22-350. (A)   (1) The department and the division must be given within ten business days written notice of:

(a)   any termination of a business, transfer of a business, or a change of ownership, possession, or control of an interest in a business holding a license issued under Section 12-22-320; and

(b)   any transfer of a machine, or a change of ownership, possession, or control of a machine licensed pursuant to Section 12-22-330.

(2)   The transfer of ten percent or more of a sole proprietorship, partnership interest, limited partnership interest, or corporate stock is considered a change in ownership. An indirect ownership interest that would compel the disclosure and background information required of a principal for an initial application must be disclosed to the department pursuant to this provision.

(3)   Anyone whose interest in the business has ended must immediately surrender to the department any licenses in his possession related to that business or machine. Failure to surrender a license as required by this subsection is justification for revocation of any and all licenses issued by the department and held by the licensee.

(B)(1) A person who acquires an interest in a business which holds licenses issued under this chapter, upon initiating the application process for a biennial license issued under Section 12-22-330, may be issued a temporary license by the department at the time of the acquisition if the applicant or location for which the temporary license is sought is not considered by the department to be ineligible under the provisions of this chapter or the applicant currently holds a valid license previously issued pursuant to this chapter, or the applicant has had a criminal history background check conducted by the division within the past thirty days.

(2) A temporary license issued pursuant to item (1) of this subsection is valid until a biennial license is approved or disapproved by the department, but in no case is it valid for more than one hundred eighty days from the date of issuance. The department may revoke a temporary license if the applicant fails to pursue the biennial license in a timely manner. The department shall collect a fee of twenty-five dollars for each temporary license.

(C) (1) Following notice as provided in subsection (A), a machine license issued pursuant to Section 12-22-330 may be transferred from one person licensed pursuant to Section 12-22-320 to another person licensed pursuant to Section 12-22-320. Any machine license transferred in accordance with this subsection shall remain in effect for the remainder of the period for which the license was issued to the transferor. All records relating to the ownership of the machine shall be revised to reflect the identity of the new owner.

(2) A machine license shall not be transferred to any person who is not licensed pursuant to Section 12-22-320.

(3) If a machine is proposed to be transferred to a person who is not licensed pursuant to this chapter, then the machine shall not be used in an establishment until the transferee is licensed as a machine owner pursuant to this chapter.

Section 12-22-360. Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.

Section 12-22-510.   (A) In addition to the license fees, a tax of twenty-five percent of the net machine income of every machine is imposed on the machine owner.

(B)   The tax imposed by this section must be collected and remitted to the department by the machine owner. The machine owner shall be responsible for collecting and remitting any portion of the tax imposed by this section which is agreed in any manner to be paid by any other person, including the machine operator, distributor, or the owner, lessee, or manager of an establishment at which the machine is operated or offered for operation.

(C)   The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.

Section 12-22-520.   (A) Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.

(B)   After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.

(C) Each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:

(1)   name and address of location of the machine;

(2)   denomination, whether five cents, etc. of the game;

(3)   the name of the game;

(4)   the name of the individual(s) collecting money from the machine and the owner of the machine;

(5)   the date(s) of collection;

(6)   the date of previous collection;

(7)   income number at commencement of the reporting period;

(8)   income number at the end of the reporting period;

(9)   beginning payout number;

(10)   ending payout number;

(11)   payout to players;

(12)   gross profit;

(13)   the percentage of net profits divided between owner and the location and the formula by which those figures are calculated; and

(14)   the name, address, telephone number, and information regarding any refunds to players.

(D)   For purposes of the reporting requirements of this section, a person who has a security interest, lease agreement, or similar financing arrangement in a machine is not considered a machine owner.

(E)   For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax.

Section 12-22-530. (A)   On or before the twentieth day of the month following the end of each month, every person subject to the tax imposed by this section shall render to the department, on a form or in a manner prescribed by it, the tax due and payable and a true and correct statement showing the net machine income for the reporting period together with other information the department may require. A return is timely filed if the return is mailed and postmarked on or before the due date.

(B)   As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-520. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.

Section 12-22-540. (A) The taxpayer shall report to the department any discrepancies in the department's statement of taxes based on a machine's mechanical and electronic meter readings, or otherwise. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Until a discrepancy is resolved, the department shall not make credit adjustments. Electronic accounting meters shall not be cleared outside the presence of an authorized department or division employee. Any discrepancies that cannot be resolved because of unauthorized meter clearing shall be resolved in favor of the State. The burden of proving a discrepancy is upon the taxpayer.

(B)   A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.

Section 12-22-550. Failure to remit taxes imposed under this chapter shall result in immediate disabling of the machines and is justification for the revocation of the machine license and machine owner's license.

Section 12-22-560. (A)(1)   All revenue derived from the tax imposed pursuant to Section 12-22-510, except as herein provided, must be credited to a fund separate and distinct in the general fund to be known as the Video Machine Income Fund. No appropriations credited to this fund may be authorized prior to July 1, 2000.

(B)   Until June 30, 2000, the department may retain six hundred dollars per machine license fee to be expended as follows: four hundred dollars per machine license fee shall be expended by the department and used exclusively for administration and enforcement of this chapter, and two hundred dollars per machine license fee shall be transferred to the division and used exclusively for administration and enforcement of this chapter. Beginning July 1, 2000, and effective beginning with the general appropriation act for the fiscal year 2000-2001, the General Assembly in the annual general appropriation act shall appropriate to the department funds in an amount not to exceed four hundred dollars per machine license fee to be used exclusively for administration and enforcement of this chapter.

Section 12-22-710. (A)   A licensed establishment, including its employees and agents, may not:

(1)   maintain, possess, or otherwise allow on its premises more than five machines, except as provided in Section 12-22-740;

(2)   advertise, or allow advertising, in any manner for the playing of the machines, except as provided in Section 12-22-760;

(3)   offer or allow to be offered any inducement to a person for the playing of machines;

(4)   allow anyone under the age of twenty-one to play machines;

(5)   allow anyone under the age of twenty-one to receive payouts as a result of playing machines;

(6)   operate machines between the hours of two o'clock Sunday morning and six o'clock a.m. Monday morning;

(7)   violate valid local zoning ordinances;

(8)   cash any business, personal, or employment checks of any individual or business;

(9)   make loans to any individual or business;

(10)   accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;

(11)   be located within five hundred feet, or within three hundred feet in a municipality, of any of these locations: a public or private elementary, middle, or secondary school; a public or private kindergarten or daycare; 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; or a subdivision which has a covenant that prohibits the location of a commercial enterprise within the subdivision;

(12)   knowingly allow playing of machines by a person in an intoxicated condition; or

(13)   extend credit, in any manner, to a player. A machine operator or licensed establishment shall not allow an agent or any employee of the operator or establishment to provide a loan or extension of credit to a player.

(B)   A machine owner or operator or any other person shall not at the location of the licensed establishment:

(1)   engage in business as a Level I or Level II check cashing service, as defined in Section 34-41-10;

(2)   engage in business as a deferred presentment service, as defined in Section 34-39-120;

(3)   make restricted loans, as defined in Section 37-3-501(3);

(4)   make supervised loans, as defined in Section 37-3-501(1); or

(5)   make loans on the security of a motor vehicle certificate of title.

(C)   The distances in this article shall be measured in a straight line, without regard to intervening structures or objects, from the nearest property line of the lot on which a building or structure is used as a licensed establishment to the nearest property line of the location in subsection (A)(11) of this section or Section 12-22-720(B).

(D)   Except as otherwise provided herein, the provisions of this section apply to all applicants and licensees. However, the distance requirements set forth in this subsection (A) do not apply to:

(1)   an establishment which operated or allowed the operation of machines for which licenses were issued before May 30, 1993; or

(2)   an establishment which:

(a)   operated or allowed the operation of machines for which licenses were issued on or after May 30, 1993, and which were in operation on the effective date of this chapter; and

(b)   was in compliance with the distance requirements in effect prior to the enactment of this chapter.

(E)   Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.

Section 12-22-720.   (A)   An establishment license must not be issued until the department determines that the location is in compliance with Section 12-22-710.

(B)(1)   The department shall not issue an establishment license to a new establishment that is closer than one hundred feet to an existing establishment even if the applicant has different principals than the existing licensed establishment(s) or where a licensure application for another establishment is pending.

(2)   For purposes of this section:

(a)   'new establishment' means an establishment which did not have machines on May 31, 1999; and

(b)   an 'existing establishment' means:

(i)     an establishment which is licensed at the time of the application for a license for a new establishment; or

(ii)   an establishment which had machines on May 31, 1999, and which is under the control of the same person who was licensed for the location under the provisions of Chapter 36, Title 12 on May 31, 1999.

(3)   Notwithstanding the provisions of item (1) of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.

(C)(1)   The person applying for the establishment license closer than permitted under subsection (B)(1) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:

(a)   state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;

(b)   tell an interested person where and when to send a written protest of the application;

(c)   be in bold print; and

(d)   cover a space at least eleven inches wide and eight and one-half inches high.

(2)   A person residing in the county in which an establishment license is requested to be granted pursuant to subsection (B)(3), or a person residing within five miles of the establishment for which an establishment license is requested pursuant to subsection (B)(3), may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:

(a)   the name, address, and telephone number of the person filing the protest;

(b)   the name of the applicant for the establishment license and the address of the establishment sought to be licensed;

(c)   the specific reasons why the application should be denied; and

(d)   whether the protestant wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.

(3)   Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.

(4)   If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.

(5)   The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.

Section 12-22-730. The department must issue regulations to strictly enforce the provisions of this chapter so as to prevent the licensure of an establishment or establishments that would allow machine operators to circumvent the prohibition against more than five machines being located on any premises. Nothing in this section, and the terms as they are defined in this chapter, shall be construed to be unenforceable because of the pendency of, or the failure to issue, any regulations by the department. This chapter must be liberally construed to supercede any regulation in existence after the effective date of this act that would impede the department in any way from strictly enforcing the provisions of this chapter regarding the prohibition against more than five machines being licensed on the same premises.

Section 12-22-740. (A)(1) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino. For purposes of this chapter, the term 'casino' shall mean both of the following:

(a) any two or more 'single places or premises', as that term was defined, applied, and interpreted in Regulation 117-190 on or before May 31, 1999, that are located within a single structure; and

(b) beginning December 1, 1999, any two or more establishments located within one hundred feet of each other that have establishment licenses issued to the same person or a person who has the same principals.

(2) In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.

(B)(1) A casino shall not operate or continue to operate except as provided in this subsection. No casino shall continue to operate as a casino unless on May 31, 1999:

(a) machines were both licensed and in operation within each 'single place or premises' as that term was defined, applied, and interpreted in Regulation 117-190 on or before May 31, 1999; and

(b) each single place or premises within the casino met the qualifications of Regulation 117-190 and a certificate of occupancy, if otherwise required by law , has been issued for the structure within which two or more single places or premises are located.

(2) After December 1, 1999, each casino authorized to operate after May 31, 1999, shall be permitted to re-apply for and may be granted renewal of licenses that, notwithstanding any other provision of the law, must expire and may not be renewed after July 1, 2004. Pursuant to Sections 1, 9, and 11 of Article V, the General Assembly provides that the Magistrate, Circuit and Appellate Courts do not have jurisdiction to extend the termination date of July 1, 2004, and may not enjoin the enforcement of this subsection by the department or the division. Nothing in this subsection shall be construed to affect the jurisdiction of the state courts regarding other provisions of this chapter.

(3)(a)   After July 1, 2004, casinos may continue to operate within a county if the county governing body, prior to July 1, 2004, adopts an ordinance authorizing the operation of casinos.

(b) An ordinance adopted pursuant to this item may not authorize the operation of a casino if the casino was not in operation on May 31, 1999.

(4)   If the provisions of item (3) are declared unconstitutional by a final order of a court of competent jurisdiction, then the provisions of Section 12-22-710(A)(1) shall apply in the entire state.

(C)   All casinos authorized to operate after May 31, 1999:

(1)   on or before January 1, 2000, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;

(2)   advise the department of the machine licenses currently issued and the licenses currently issued for each single place or premises within the structure and return the licenses for each single place or premises to the department at the time the new license for the single licensed establishment is approved by the department and issued;

(3)   once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of May 31, 1999, as asserted in the statement required in item (5);

(4)   never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment; provided, that a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose; and

(5)   on or before January 1, 2000, file with the department a sworn statement asserting any and all reasons why it is entitled to the benefits conferred by this subsection (B).

(D)   Any person claiming the benefits of subsection (B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment shall be subject to all limitations of this section.

Section 12-22-750.     (A)   The offering of an inducement as prohibited in Section 12-22-710(A)(3) means any attempt to influence a person to play machines including, but not limited to:

(1)   free or discounted food or beverages;

(2)   free or discounted games other than credits won through authorized play;

(3)   prizes, either at the doors or through drawings or other means;

(4)   coupons offering any of the above;

(5)   cash other than authorized payouts; or

(6)   jackpots or other progressive winnings schemes.

These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.

(B)   A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.

Section 12-22-760. (A) A licensed establishment or licensed machine operator or any employee or agent of the licensee, may only advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed on any side or sides of the building in which the licensed establishment is located.

(B)   Nothing in this section prevents a licensed establishment from advertising goods and services, other than the playing of machines, except as otherwise prohibited by law.

(C)   No person may advertise in a misleading or deceptive manner.

(D)   To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.

(E)   Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any electronic, broadcast or print medium.

(F)   No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.

(G)   Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2000, if notice is given to the department as required in this chapter.

(H)   A machine owner, manufacturer, or distributor may advertise his enterprise but may not sponsor, promote, or otherwise advertise the playing of games and may not advertise on behalf of a machine operator or licensed establishment.

Section 12-22-770. (A) A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:

(1)   'A person must be twenty-one years of age to play a video game machine or receive payouts from a video game machine.'

(2)   'It is illegal to offer inducements to a person to play video game machines.'

(3)   'All games are random. Games are set to issue a minimum theoretical payout of between ninety and ninety-nine percent.'

(4)   'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'

(5)   'Validated tickets may be redeemed for cash.'

(6)   'Violators are subject to civil and criminal penalties.'

(7)   'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'

(8)   'No payout of greater than five hundred dollars is allowed, regardless of the amount deposited in the machine.'

(B)   The sign required by subsection (A) must be placed behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.

(C)   Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided for violations of Sections 12-22-1330(1), 12-22-1330(2), and 12-22-1360 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.

(D)   In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.

Section 12-22-780. (A) Any person who would otherwise be subject to the restrictions of this chapter but who seeks to use the provisions of Sections 12-22-710(D), 12-22-710(E)(2), 12-22-740(B), or 12-22-760(G), must, on or before January 1, 2000:

(1)   notify the department in a statement made under penalties of perjury that he is eligible to use the provision;

(2)   state the specific and detailed reasons for claiming the privileges of the specific provision claimed; and

(3)   identify all licenses associated with the claim.

(B)   The person claiming the benefit of Sections 12-22-710(D), 12-22-710(E)(2), 12-22-740(B), or 12-22-760(G) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.

Section 12-22-910. (A) Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.

(B)   Each machine or device licensed pursuant to this chapter must be operated in a stand-alone fashion and may not be linked in any way to another machine, except as otherwise provided in this chapter.

(C)   Any machine which is not connected to the central computer monitoring system after February 1, 2000, shall be considered to be illegal and a contraband machine.

Section 12-22-920.   (A)   All machines, location controllers and associated modems, and computer chips must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.

(B)   A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.

Section 12-22-930. (A) Not later than December 1, 1999:

(1) each machine must meet standards provided in subsection (B) of this section and the machine owner shall certify to the department, under oath and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system; or

(2) each machine owner must certify to the department, under oath and in a form prescribed by the department, that he has ordered all location controllers and associated modems, computer chips, associated equipment, software, hardware, and any other equipment required by this chapter in order for his machines to be connected to the central computer monitoring system.

(B) Not later than December 1, 1999, and subject to the provisions of subsection (A)(2), all machines and equipment must:

(1)   have games that are random and have a minimum theoretical payback of between ninety percent and ninety-nine percent, within standard rounding, in which the theoretical payback percentage is determined using standard methods of probability theory at optimal play;

(2)   be secure and accountable;

(3)   not operate in a misleading or deceptive manner;

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

(5)   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;

(6)   have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;

(7)   be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;

(8)   be capable of interfacing with a central computer monitoring system through a location controller;

(9)   when required by the department after certification, be connected to the central computer monitoring system through a location controller; and

(10)   meet the standards set by the department and those set forth in this chapter.

(C)(1)   Machines not meeting the standards of this chapter, or the standards of the department, shall not be licensed. The license of any machine which fails to maintain the standards of this chapter shall be revoked.

(2)   The department shall connect licensed machines at licensed establishments meeting the requirements of this section to the central computer monitoring system as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of this section , no later than February 1, 2000. A machine owner who provides the certification provided in subsection(A) may provide payouts as provided in Section 12-22-1020 beginning on December 1, 1999. A machine owner who provides the certification provided in subsection (A)(2) shall provide the certification provided in subsection (A)(1) by February 1, 2000; if the certification is not provided on that date, the machine shall be disabled and the machine owner shall be subject to the penalties provided in this chapter.

(D)   When the department approves the software and logic board of a machine, the division must require the use of a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar such technology must be done in the presence of an employee of the division.

Section 12-22-940.   (A)   As part of the central computer monitoring system, each establishment operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.

(B)   This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.

(C)   The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.

(D)   Each location controller must be able to perform the following functions:

(1)   communicate with machines in an on-line environment;

(2)   store log entries of openings of machine game doors;

(3)   store log entries of openings of machine coin or currency doors;

(4)   authorize a machine to be taken off-line from the location controller and store a log of this event;

(5)   disable a machine and store a log entry upon a game door open, and a coin door open;

(6)   store a log entry if machine is off-line from the location controller;

(7)   store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;

(8)   store a log entry of reenabling a machine that has been disabled;

(9)   log entries which include a VGMID for each machine and date/time stamp;

(10)   communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;

(11)   have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;

(12)   have an internal clock;

(13)   be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;

(14)   be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment; and

(15)   be capable of validating tickets printed by a machine.

Section 12-22-950.   The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.

Section 12-22-960.   The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The department may also establish a state testing laboratory. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner. Approval of the machine by the department is prima facie evidence that the machine meets the required standards and requirements.

Section 12-22-970. A machine owner shall notify the department before a machine is added, replaced, disconnected, or transferred to another establishment.

Section 12-22-980.   The licensed establishment or machine owner shall notify the department before a location controller is added, disconnected, or transferred to another establishment.

Section 12-22-990.   (A)   Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.

(B)   Whenever a machine is disabled during play of a game, the following must occur:

(1)   a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;

(2)   a count-down timer must be displayed;

(3)   if the player completes the game, all payouts must be reported on a payout ticket and no other games are allowed to be played on that machine; and

(4)   if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the manufacturer's recommended play strategy, all payouts must be reported on a payout ticket, and the machine then disabled.

Section 12-22-1000.   Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.

Section 12-22-1010.   (A) Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went on-line; and the bank account from which the taxes are withdrawn.

(B)   The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.

Section 12-22-1020.   (A) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:

(1)   allow more than three dollars in credits to be bet, risked, wagered, or played on any hand;

(2)   issue payouts of more than five hundred dollars to a player, regardless of the amount of money deposited into the machine;

(3)   require any minimum number of credits before issuance of a validated payout ticket;

(4)   permit any player to receive a payout greater than five hundred dollars, regardless of the amount of money deposited into the machine;

(5)   produce at the completion of the play period validated tickets worth more than five hundred dollars regardless of the amount deposited in the machine;

(6)   allow at the completion of the play period the production of multiple tickets with a collective value of greater than five hundred dollars or engage in any other schemes to evade the five hundred dollars payout limitation; or

(7)   offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than five hundred dollars at the completion of the play period.

(B)(1) Any licensed machine that provides payouts must limit the amount bet, risked, wagered or played on any hand to three dollars and the payout must be limited to credits equal to five hundred dollars.

(2) When a player earns credits equaling or exceeding five hundred dollars:

(a) the machine must: temporarily disable that player station, immediately delete all credits or their equivalents with a value greater than five hundred dollars, immediately report on a payout ticket payable to that player or player station, reset to zero or 'game over'; and

(b) that player or another player at that player station may not continue to play until more cash or coin is deposited into the machine.

(3) The machine must be programmed so that other players of a multi-player unit are not affected if one or more players is issued a payout ticket pursuant to this provision.

(4)   The central computer monitoring system shall monitor the deletion prior to the completion of the play period and the printing of validated payout tickets all credits or their equivalents with a value of greater than five hundred dollars.

(C)   A machine operator may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.

(D)   At the time the player presents a payout ticket to the machine operator or his agent for a cash payout, the machine operator or his agent shall require the person presenting the payout ticket to write or otherwise have placed on the payout ticket the person's name, address, and telephone number. Upon the provision of the payout ticket with the above required information, and upon presentation of a form of verifiable identification as approved by the department, the machine operator or his agent may make a cash payout. The payout tickets redeemed by the machine operator or his agent shall be retained by the machine operator or his agent in the same manner and for the same period as other records are required by this chapter.

(E)   Any person offering money, prize, bonus or anything of value for earning credits above what is printed on a payout ticket is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years and may be fined not more than twenty-five thousand dollars.

(F)   A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of revocation of the establishment, operator, or owner license for five years and may be fined an amount not to exceed one thousand dollars per violation.

Section 12-22-1030.   A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:

(1)   the full name, address, and license number of the person or entity disposing of the machine;

(2)   the manufacturer's serial number of the machine;

(3)   the model number and description of the machine;

(4)   the manufacturer of the machine;

(5)   the VGMID of the machine;

(6)   the hard meter readings of the machine;

(7)   the licensed establishment at which the machine was located; and

(8)   the proposed manner, time, and place of disposal.

Section 12-22-1040.   A machine must not simulate bingo or a slot machine.

Section 12-22-1050.   Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.

Section 12-22-1060. All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.

Section 12-22-1070. (A)   The department shall disable machines via the central computer monitoring system for the following reasons:

(1)   the establishment license or retail sales tax license at the establishment where the machines are located has been revoked or suspended;

(2)   the license of the machine has been revoked or suspended;

(3)   the machine owner's license has been revoked or suspended;

(4)   the machine operator's license has been revoked or suspended;

(5)   the establishment license, machine license, machine owner's license, or machine operator's license has expired;

(6)   the central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason will be enabled again as soon as the problem has been resolved;

(7)   the machine owner or the machine operator has requested that the machine be disabled for any reason, such as relocation, upgrading, or repair; or

(8)   the bank account from which taxes are paid has insufficient funds to pay the entire tax due upon the due date.

(B)(1)   All persons who have notified the department of an ownership or lien interest in a machine shall be notified of a proceeding to revoke licenses that may result in disabling under this section. A licensee whose machine, and any part of the machine, is disabled for reasons in (A)(1), (A)(2), (A)(3), or (A)(4) shall not be licensed or permitted to operate in this State for five years from the date of revocation.

(2)   A machine, and any part of the machine, shall not operate in this State for five years from the date of revocation, if the machine is disabled for the reasons stated in:

(a)   subsection (A)(1)or (A)(4), if the machine owner and the person holding the establishment license are the same person; or

(b)   subsections (A) (2) or (A)(3).

(C)   All persons who have notified the department of an ownership interest in an establishment shall be notified of a proceeding to revoke licenses that may result in disabling under Section (A)(1). If machines are disabled at an establishment for the reason in (A)(1), the establishment may not operate, or allow the operation of, machines for five years from the date of the revocation or suspension.

Section 12-22-1080. The department, in its discretion, may approve, effective upon publication in the State Register, alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.

Section 12-22-1110. (A)(1) The department may issue licenses only to qualifying persons. Licenses may be issued only to a person who is a principal of the business seeking the license.

(2)   If the applicant for a license has more than one principal, the entity shall designate a principal of good moral character, over the age of twenty-one, and a resident of this State for two years, who is deemed the applicant under this article and in whose name the license must be held on behalf of the business. The business entity may substitute a principal if the individual is of good moral character, over the age of twenty-one, and a resident of this State for two years, upon notice in writing of the substitution to the department.

(B)   On a form provided by the department and in a manner provided by the department, the applicant for a license must provide detailed information regarding:

(1)   the ownership and management of the entity seeking the license, including the name, address, and social security number of each principal as defined in Section 12-22-10(22);

(2)   a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;

(3)   federal registration with respect to gambling devices;

(4)   the information compelled to be disclosed pursuant to this chapter;

(5)   licenses currently held pursuant to this chapter and those licenses held pursuant to Chapter 21 of Title 12 within one year of the date that the application is filed;

(6)   information that may be required by the department, such as voter registration, to prove the two-year residency requirement;

(7)   in the case of an application for a machine operator or establishment license, the street address and name of any business containing machines that are within a one hundred foot radius of where the applicant intends to locate its machines, if the address and name are reasonably ascertainable to the applicant; and

(8)   any other information deemed necessary by the department for the proper administration and enforcement of this chapter.

(C)   The department and the division are authorized to develop applications and other forms.

(D)   The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.

(E)   The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.

(F)   As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.

(G)   An application which contains material omissions or misrepresentations is cause for denial, suspension, or revocation of a license and disabling of all machines of that licensee.

(H)   Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.

Section 12-22-1120.   Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.

Section 12-22-1130. (A)   The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. The division shall return the background investigation to the department.

(B)   Unless the time requirements for issuing a license are waived by the applicant, the department must make its decision on whether to issue a license to the applicant not later than sixty days after the completion of the background investigation, including the fingerprint reviews, and the recommendation, if any, of the division, or not later than one hundred eighty days from the date a complete application is filed with the department, whichever occurs first. The department must inform each applicant of the department's decision.

(C)   The department shall determine whether the applicant owes any delinquent state taxes, fines, penalties, or interest.

(D)   The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.

(E)   The department shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.

Section 12-22-1140.   (A)   The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.

(B)   The division shall:

(1)   promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;

(2)   provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;

(3)   investigate violations under this chapter and any regulations;

(4)   conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with this chapter;

(5)   receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;

(6)   exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies; and

(7)   have the authority to request and receive information, materials, and any other data from any person.

(C)(1)   A person applying for a license or required under this article to undergo a criminal history background check shall undergo a state fingerprint review to be conducted by the division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection may be required upon subsequent applications.

(2)   When the applicant has principals it must disclose any information required by the department to obtain fingerprints and criminal background checks for the principals so that an applicant may not circumvent the purpose of this section.

(3)   Each applicant with submission of an application shall submit a valid fingerprint card for every principal of the business seeking to be licensed.

(4)   At the time of filing the application, the applicant must include certified checks for the fees imposed by the State Law Enforcement Division and the Federal Bureau of Investigation, respectively, for the purpose of conducting fingerprint reviews required by item (1) of this subsection.

(D)   In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:

(1)   inspect and examine all establishments where machines are operated;

(2)   inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;

(3)   inspect all equipment and supplies in, about, upon, or around the establishment;

(4)   seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;

(5)   inspect, examine, and audit all records pertaining to an applicant's operation; and

(6)   seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.

(E)   The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.

(F)   The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.

Section 12-22-1150.   (A)   Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, and their principals.

(B)   As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.

(C)   Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.

(D)   Each applicant and principal shall cooperate with the division and the department in the performance of their duties.

Section 12-22-1160. (A)   The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:

(1)   a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:

(a)   any offense punishable by imprisonment for two or more years;

(b)   any gambling offense;

(c)   theft or any crime involving false statements or declarations;

(d)   a criminal offense involving fraudulent activity or defined as a fraud;

(2)   a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;

(3)   omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;

(4)   association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;

(5)   failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;

(6)   that the applicant owes any federal, state, or local delinquent taxes, penalties, or interest; or

(7)   except for a manufacturer, the applicant has not been a resident of the State for two years.

(B)   The applicant for a license required by this chapter, and all principals of the applicant, must file with the application a sworn statement, under penalties of perjury, affirming that:

(1)   the person is not attempting to obtain a license on behalf of any undisclosed person or entity;

(2)   the person is of good character, honesty, and integrity;

(3)   the person's prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this State or to the effective regulation and control of video gaming; and

(4)   all information provided in the application is true.

Section 12-22-1170. Distributors, principals, machine owners, and machine operators, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.

Section 12-22-1180. Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.

Section 12-22-1310. (A) A person who fails, neglects, or refuses to comply with the terms and provisions of this chapter or who fails to attach the required license to any machine or device, is subject to a penalty of two thousand five hundred dollars for each failure, and the penalty must be assessed and collected by the department. This penalty must be deposited in the same manner as other monies collected pursuant to this chapter.

(B)   Except as provided in Section 12-22-1320, with respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this chapter.

Section 12-22-1320. (A)(1) Except as provided in item (2) of this subsection, the department may revoke the licenses of establishments, machine owners, machine operators, and machines used in the establishment and impose a monetary penalty of not less than one thousand dollars and not more than ten thousand dollars on each of the owners of such licenses for each failure to comply with a provision of Section 12-22-710, or any provision of a regulation pertaining to Section 12-22-710.

(2) With respect to violations of Section 12-22-710(A)(4), the department may revoke the license of the establishment where the violation occurred.

(B)   Any establishment violating a provision of Section 12-22-710 or any provision of a regulation pertaining to Section 12-22-710 may have its privilege for operating or allowing the operation of video game machines suspended as follows:

(1)   upon the first violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to six months;

(2)   upon the second violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to one year;

(3)   upon the third or subsequent violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to eighteen months.

(G)(1)   The department, upon a determination that the violation is willful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction of a willful violation, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.

(2)   Beginning on July 1, 2004, this subsection shall not apply to violations of Section 12-22-710(A)(1).

Section 12-22-1330. A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if the person willfully:

(1)   tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)   manipulates the outcome, payoff, or operation of a machine;

(3)   launders or knowingly allows another to launder money through one or more machines;

Section 12-22-1340. The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1310:

(1)   tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)   operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;

(3)   refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State; and

(4)   refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.

Section 12-22-1350.   (A)   A person in possession of, or operating, or allowing the operation of a contraband machine or contraband device at any place within this State is subject to a civil penalty of not more than ten thousand dollars per machine or piece of associated equipment.

(B)   When the department or division deems it necessary in connection with subsection (A), it may require the owner of a machine, device, or associate equipment to obtain a certification from an approved testing laboratory that the machine or a game or associate equipment meets the standards and requirements of this chapter. The cost of this certification is the responsibility of the owner of the machine, device, or associated equipment.

(C)   Contraband machines, contraband devices, or contraband associate equipment may be seized by any law enforcement officer of the State or any of its political subdivisions who shall appear before any magistrate of the county in which the machine, device, or associated equipment was seized. If the magistrate is satisfied that the item is contraband, the magistrate shall direct that it be destroyed. The magistrate, at his discretion, may order an examination of the item, in person before the magistrate or by an approved testing laboratory, to assist in the determination as to whether the item is contraband.

Section 12-22-1360. 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 more than ten years, and must be fined not more than twenty-five thousand dollars, or both.

Section 12-22-1370.     No machine owner, manufacturer, distributor, machine operator, or any principal may have any financial interest whatsoever or any loans or business relationship with a testing laboratory or any contractual relationship with a testing laboratory except for a contract for the providing of testing services. Any person who violates the provisions of this section is guilty of a felony and upon conviction must be imprisoned for not more than ten years, and in addition may be fined not more than twenty-five thousand dollars.

Section 12-22-1380.     (A)   In addition to any other penalties, any machine or device not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the department, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.

(B)   The owner or person from whom the property is seized may at any time within five days after the seizure repossess the property by filing with the department a bond in cash or a bond executed by a surety company authorized to do business in this State in double the amount of the tax and penalties due. Within ten days thereafter the person must bring action in a court of competent jurisdiction to have the seizure set aside; otherwise, the bond so filed must be declared forfeited by the department.

Section 12-22-1390. (A) When the department or the division is notified in writing that an establishment, owner or distributor is or has been in violation of this chapter and that one or more persons have notice or knowledge of a violation, the department or division shall have thirty days from the date of the receipt of the notice to initiate and enforcement action consistent with this chapter.

(B) If the department or division affirmatively declines to act or fails to initiate an enforcement action for the alleged violation within thirty days, the person or persons who have knowledge of the alleged violation may serve written notice upon the department of their intention to file a request for a proceeding to enforce the provisions of this chapter in the name of the department or division.

(C) Within thirty days of the receipt of the notice from the person or persons with knowledge of the alleged violation, the department or division shall forward the notice of intent to file a request for a proceeding to the Office of the Attorney General who shall determine:

(1) if the person or persons with knowledge of the violation has sufficient knowledge, expertise and experience to adequately represent the interests of the State, the department and the division in the action;

(2) if the person or persons with knowledge of the violation are willing to advance all costs and expenses to be incurred in the proceeding; and

(3) that the Office of the Attorney General will not pursue the enforcement of the alleged violation.

Upon written certification of the Office of the Attorney General that these conditions have been met, the person or persons with knowledge of the alleged violation may proceed to commence a civil action for any violation of any of the provisions of this chapter.

(D) If the Office of the Attorney General denies certification and fails to pursue enforcement within sixty days of notice or fails to act on a person's notice within thirty days of receipt, the person or persons with knowledge of a violation of this chapter may move to commence a civil action as provided herein.

(E) The civil action must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the civil action may seek any fine or penalty that the State may seek.

(F) A copy of the complaint must be served on the Attorney General if he is not bringing the action, and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.

(G) If the State, as determined by the Attorney General and the Governor acting together, joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twenty-five percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable hourly attorney's fees and costs, to be paid by the defendant.

(H) If the State, as determined by the Attorney General and the Governor acting together, does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twenty-five percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable hourly attorney's fees and costs, to be paid by the defendant.

(I) The State is not liable for expenses which a person incurs in bringing an action under this section.

(J) No settlement may be entered without approval by the department.

(K) Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.

Section 12-22-1400.   Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 16-17-410.

Section 12-22-1410. Each violation or each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.

Section 12-22-1420.   The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.

Section 12-22-1430.   In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.

Section 12-22-1510. Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.

Section 12-22-1520.   Every person required to obtain a license for any machine or device described in Section 12-22-1530 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.

Section 12-22-1530.   (A)   Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device in item (3):

(1)   a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;

(2)   a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;

(3)   a machine of the nonpayout type, in-line pin game operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed;

(4)   billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.

(B)   The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(C)   Machines which have multiplayer stations must have a separate license for each such station.

(D)   As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.

(E)   If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(F)   Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(G)   Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.

(H)   Every person who maintains for use, or permits the use, on any place or premises occupied by him, any devices subject to the license imposed by subsection (A) of this section must attach the proper state license to a permanent, nontransferable part of the machine before its operation is commenced.

Section 12-22-1540.   (A)   In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1530 shall obtain an owner's license biennially as follows:

(1)   fifty dollars for devices in Section 12-22-1530(A)(1) and (A)(4);

(2)   two hundred dollars for devices in Sections 12-22-1530(A)(2) and 12-22-1530(A)(3).

(B)   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)   The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(D)   Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.

(E)   The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.

Section 12-22-1550.   In lieu of the licenses required under Sections 12-22-1530 and 12-22-1540, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-1530 and 12-22-1540. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.

Section 12-22-1560.   Machines or devices licensed pursuant to Section 12-22-1530(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.

Section 12-22-1570.   A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of five hundred dollars for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.

Section 12-22-1580. In addition to the penalties above provided, any machine, apparatus, billiard, or pocket billiard table not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the department, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.

Section 12-22-1590.   Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twenty-five dollars.

Section 12-22-1600.   Any person who owns or operates machines or devices described in Section 12-22-1530 must have attached to the machine or device information identifying the owner of the machine or device. The identification must be placed on an area of the machine or device which is visible for inspection purposes. This identification is a condition precedent must be attached before the machines or devices may be operated on location or in an establishment. Intentional or willful failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter.

Section 12-22-1610.   If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee.

Section 12-22-1700. In accordance with this chapter, the department may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in this chapter including the provisions relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts A through D of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 apply for purposes of this section.

(A)   Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.

(B)   Each machine must be capable of monitoring and storing the following items:

(1)   The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:

(a)   cash in, defined as money in dollars and cents;

(b)   credits purchased;

(c)   credits earned or won;

(d)   credits played;

(e)   credits paid;

(f)   cash paid.

(2)   The following security events and the time and date of such events:

(a)   game door open;

(b)   coin-bill/drop door open;

(c)   power off/on;

(d)   off line/on line to the location controller;

(e)   game control board access (logic area).

(C)   Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.

(D)   Each machine is not allowed to operate if it is not connected in on-line mode to a location controller meeting the requirements set forth by the department.

(E)   A machine must collect the data required in this chapter and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event listed in this chapter may reflect a time and date stamp and the VGMID of the machine.

(F)   A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.

(G)   A machine must be capable of being disabled by the central computer monitoring system or the location controller.

(H)   A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.

(I)   A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.

(J)   Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.

(A)   A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.

(B)   A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.

(C)   A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.

(D)   The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.

(E)   Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.

(F)   The internal space of a machine must not be readily accessible when the front door is closed or sealed.

(G)   Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.

(H)   The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.

(I)   No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.

(J)   A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.

(K)   The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.

(L)   A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1380 relating to the time such penalties apply without regard to stays.

(M)   Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.

(A)   Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.

(B)   Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.

(C)   Electronic meters also must record security events, with the time and dates, to include game door open, coin-bill/drop door open, power off/on, off line/on line to the location controller, and game control board access.

(D)   No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.

(E)   Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:

(1)   each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chi-squared analysis;

(2)   each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;

(3)   each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and

(4)   each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.

(F)   All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner.

(A)   For purposes of this part, multiplayer units are divided into two general groups:

(1)   units that share some common components (Group I); and

(2)   units that share most components (Group II).

(B)   Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.

(C)   Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:

(1)   Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.

(2)   Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.

(D)   A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.

(1)   Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(2)   Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location controller and go directly to the dealer's station and then back to the location controller. All communications must be sent from the central system and the site controller exactly as detailed in the communications protocol. The dealer's station is responsible for handling all of the communications for the player stations. If the system asked for meters for station number one, the dealer's station is responsible for collecting and sending that data to the central system. The central system must behave exactly as if there are five separate machines. EPROM signature calculations must be performed over the dealer's station program code and transmitted back five times just as if there are five machines all running the same game code. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(E)   The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.

SECTION   11.   Section 12-54-40(H) of the 1976 Code is amended to read:

"(H)     A person who:

(1)   must obtain a license or purchase stamps for identification purposes, and who fails to obtain or display the license properly, or fails to affix the stamps properly; or

(2)   to must comply with statutory provisions and fails to do so, is subject to a penalty of not less than fifty dollars nor more than five hundred dollars for each failure. For failure to obtain or display a license as prescribed in Sections 12-21-2720 and 12-21-2730 12-22-320, the penalty is fifty two hundred dollars for each failure to comply."

SECTION   12.   Section 12-54-40(M) of the 1976 Code is amended to read:

"(M)   A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title 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 in addition may be fined not more than twenty-five thousand dollars. A machine owner or distributor, as defined in Chapter 22 of this title, who willfully places a machine on location, or who willfully allows or causes a machine to be operated, that does not accurately record the information required under Chapter 22 of this title 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 in addition may be fined not more than twenty-five thousand dollars."

SECTION   13.   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 regulation of video games pursuant to Article 20, Chapter 21 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."

SECTION   14.   Chapter 19, Title 16 of the 1976 Code is amended by adding:

"Section 16-19-65.     (A)   It is unlawful for any person to keep or operate on his premises or permit to be kept or operated on his premises within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

(B)   Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.

(C)   Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if satisfied that it is in violation of this section or any other law of this State, shall direct that it be immediately destroyed.

Section 16-19-66.   (A)   It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.

(B)   It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.

(C)   A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.

Section 16-19-67.   A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin or currency of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."

SECTION   15.   Subitem (3) of Section 61-4-580 of the 1976 Code is amended to read:

"(3)   permit gambling or games of chance which is not authorized by Chapter 22 of Title 12."

SECTION   16.   (A)   The provisions of Chapter 22, Title 12 as added by this act apply to any and all licenses to be issued on or after December 1, 1999.

(B)(1)   By January 31, 2000, a person who is licensed pursuant to Section 12-21-2728(A)(3) on November 30, 1999, for a license period which expires on May 31, 2000, shall apply for a new license to be issued in accordance with Chapter 22, Title 12. The person may continue to do business under the license issued under Section 12-21-2728(A)(3) until the Department of Revenue makes a determination regarding whether the person should be licensed under the provisions of Chapter 22, Title 12.

(2)(a)   Upon a favorable licensing determination, the department shall issue a new license with an expiration date in the year 2002 established in accordance with the provisions of Section 12-22-320(D).

(b)   The license fees shall be prorated based upon the expiration date for the new license and any unused portion of the license fee for the license which expires on May 31, 2000, shall be applied towards payment of the fee for the new license.

(C)(1)   By July 31, 2000, a person who is licensed pursuant to Section 12-21-2728(A)(3) on November 30, 1999, for a license period which expires on May 31, 2001, shall apply for a new license to be issued in accordance with Chapter 22, Title 12. The person may continue to do business under the license issued under Section 12-21-2728(A)(3) until the Department of Revenue makes a determination regarding whether the person should be licensed under the provisions of Chapter 22, Title 12.

(2)(a)   Upon a favorable licensing determination, the department shall issue a new license with an expiration date in the year 2003 established in accordance with the provisions of Section 12-22-320(D).

(b)   The license fees shall be prorated based upon the expiration date for the new license and any unused portion of the license fee for the license which expires on May 31, 2001, shall be applied towards payment of the fee for the new license.

(3)   Upon an unfavorable licensing determination, the department shall revoke the license issued pursuant to Section 12-21-2728(A)(3) and shall issue a prorated refund to the person for the remainder of the license period.

(D)   By December 31, 1999, a person who is required to be licensed as a machine operator and who is engaged in business at a location that is licensed pursuant to Chapter 36, Title 12 on November 30, 1999, shall apply for a machine operator's license issued pursuant to the provisions of Chapter 22, Title 12.

(E)   By December 31, 1999, a person who is required to be licensed as a machine operator shall apply for an establishment license issued pursuant to the provisions of Chapter 22, Title 12 for a location that is licensed pursuant to Chapter 36, Title 12 on November 30, 1999.

(F)   A machine license issued pursuant to Section 12-21-2720(A)(3) shall continue in effect until the expiration of the original license period provided a machine must meet all requirements imposed by Chapter 22 of Title 12 when these requirements take effect.

(G) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.

SECTION   17.   A.   The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 16. To the extent that regulations promulgated pursuant to the authority of Articles 19 and 20, Chapter 21, Title 12 are not inconsistent with Section 10, those regulations remain in effect until and unless otherwise modified or repealed pursuant to the Administrative Procedures Act.

B.   Articles 19 and 20, Chapter 21, Title 12 are repealed effective December 31, 2000.

SECTION   18.   Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:

"Section 32-1-60.   Beginning on the effective date of this section, the provisions of Sections 32-1-10, 32-1-20, and 32-1-30 apply only to those gambling activities not authorized by law.

SECTION   19.   Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-2805. (A) When the department or the division is notified in writing that an establishment, owner or distributor is or has been in violation of this article or Article 19 of this chapter and that one or more persons have notice or knowledge of a violation, the department or division shall have thirty days from the date of the receipt of the notice to initiate and enforcement action consistent with this chapter.

(B) If the department or division affirmatively declines to act or fails to initiate an enforcement action for the alleged violation within thirty days, the person or persons who have knowledge of the alleged violation may serve written notice upon the department of their intention to file a request for a proceeding to enforce the provisions of this chapter in the name of the department or division.

(C) Within thirty days of the receipt of the notice from the person or persons with knowledge of the alleged violation, the department or division shall forward the notice of intent to file a request for a proceeding to the Office of the Attorney General who shall determine:

(1) if the person or persons with knowledge of the violation has sufficient knowledge, expertise and experience to adequately represent the interests of the State, the department and the division in the action;

(2) if the person or persons with knowledge of the violation are willing to advance all costs and expenses to be incurred in the proceeding; and

(3) that the Office of the Attorney General will not pursue the enforcement of the alleged violation.

Upon written certification of the Office of the Attorney General that these conditions have been met, the person or persons with knowledge of the alleged violation may proceed to commence a civil action for any violation of any of the provisions of this chapter.

(D) If the Office of the Attorney General denies certification and fails to pursue enforcement within sixty days of notice or fails to act on a person's notice within thirty days of receipt, the person or persons with knowledge of a violation of this chapter may move to commence a civil action as provided herein.

(E) The civil action must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the civil action may seek any fine or penalty that the State may seek.

(F) A copy of the complaint must be served on the Attorney General if he is not bringing the action, and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.

(G) If the State, as determined by the Attorney General and the Governor acting together, joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twenty-five percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable hourly attorney's fees and costs, to be paid by the defendant.

(H) If the State, as determined by the Attorney General and the Governor acting together, does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twenty-five percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable hourly attorney's fees and costs, to be paid by the defendant.

(I) The State is not liable for expenses which a person incurs in bringing an action under this section.

(J) No settlement may be entered without approval by the department.

(K) Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.

SECTION   20.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   21.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION   22.   (A) It is the intent of the General Assembly in providing for the statewide referendum required by this act to allow an affirmative vote of the qualified electors of this State to serve as a trigger for the operation of an effective clause, as contained in this act, duly passed by the General Assembly. The result of the referendum is a contingency that is certain, based on the result of a referendum, and will thereby cause some parts of this act to take effect and others not to take effect. All provisions in this act are enactments of the General Assembly that meet the formalities of an act required under Article III of the Constitution of this State which provides for the legislative power in the government of this State. While Article III does not provide for a referendum as part of the legislative process, neither does it prohibit a referendum in which the result is a certain contingency that determines which parts of an act take effect. As the legislative power of the General Assembly is limited only by that which is specifically prohibited in the Constitution of this State and the Constitution of the United States, the General Assembly finds that the referendum required pursuant to this act is a valid exercise of the legislative power of this State.

(B) The General Assembly by enactment of this act has no intent to enact any provision allowed by 15 U.S.C. 1175, commonly referred to as the Johnson Act, or to create any state enactment authorized by the Johnson Act.

(C) It is the intent of the General Assembly that the provisions of this act shall not be construed to:

(1) affect any pending lawsuit, as prescribed in SECTION 21; or

(2) affect any provision of current law, unless or until it is specifically modified or expressly repealed as provided in this act.

SECTION   23.   Upon approval by the Governor, this act shall take effect in the following manner:

(A)   Parts II, IV, V, and VI take effect upon approval by the Governor;

(B)   Article 9 of Chapter 22, Title 12, as added in Part III, Section 10, takes effect July 1, 1999, except that Sections 12-22-1020 and 12-22-1030 take effect when the remaining provisions of Part III take effect as provided in subsection (E). If the remaining provisions of Part III do not take effect as provided in subsection (E), then Article 9 of Chapter 22, Title 12 is repealed on the date that the State Board of Canvassers certifies a majority "no" vote in the referendum provided in Part II of this act. Sections 12-22-730 and 12-22-740 and subsections (19) and (22) of Section 12-22-10, as added in Part III, Section 10, take effect June 1, 1999. If the remaining provisions of Part III do not take effect, then Sections 12-22-730 and 12-22-740 and subsections (19) and (22) of Section 12-22-10 are repealed on the date that the State Board of Canvassers certifies a majority "no" vote in the referendum provided in Part II of this act;

(C)   Part I takes effect July 1, 2000;

(D)   If Part I takes effect, the South Carolina Department of Revenue, upon application, shall refund to any person holding a license for the operation of video game machines, on a pro rata basis, the portion of any license fee previously paid to the department for licenses that extend beyond June 30, 2000;

(E)   If the State Board of Canvassers certifies a majority "yes" vote in the referendum provided in Part II of this act, then Part I does not take effect, and the remaining provisions of Part III take effect on December 1, 1999, and Section 19 of Part IV is repealed, except that the provisions of Section 21 shall apply to any pending civil actions brought under Section 12-21-2805./

Amend title to conform.

/s/ Thomas Moore                  /s/ Terry Haskins
/s/ Wes Hayes                     /s/ Greg Delleney
/s/ Ernie Passailaigue            /s/ Rick Quinn
On Part of the Senate.             On Part of the House.

, and a message was sent to the House accordingly.

Senators RYBERG, DRUMMOND and FAIR desired to be recorded as voting against the adoption of the Free Conference Report.

S. 910 (Word version) -- Senators McConnell, Courson, Jackson, Washington, Ford, Matthews, J. Verne Smith and Reese: A CONCURRENT RESOLUTION TO THANK THE MEMBERS OF THE SELECTION RECOMMENDATION COMMITTEE OF THE AFRICAN-AMERICAN HISTORY MONUMENT COMMISSION FOR THEIR DEDICATION TO SEEING THAT THE CONTRIBUTIONS OF AFRICAN-AMERICANS TO THIS STATE RECEIVE OVERDUE RECOGNITION ON THE STATE HOUSE GROUNDS.

Returned with concurrence.

Received as information.

S. 913 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO RECOGNIZE MRS. BARBARA B. STONE, EXECUTIVE DIRECTOR OF THE GREENVILLE COUNTY DISABILITIES AND SPECIAL NEEDS BOARD, FOR HER THIRTY YEARS OF CONTRIBUTIONS TO THE BOARD ON THE OCCASION OF HER RETIREMENT.

Returned with concurrence.

Received as information.

S. 914 (Word version) -- Senator Land: A CONCURRENT RESOLUTION APPLAUDING THE ACE CLUB OF MANNING ELEMENTARY SCHOOL IN CLARENDON COUNTY FOR ITS OUTSTANDING EFFORTS IN CARING FOR THE ENVIRONMENT AND CONGRATULATING THE CLUB MEMBERS ON THEIR RECOGNITION AS CHAMPIONS OF THE ENVIRONMENT FOR 1998 AND 1999 AND AS WINNERS OF THE 1999 EAGLES ENVIRONMENTAL AWARD.

Returned with concurrence.

Received as information.

Having received a favorable report from the Lancaster County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Lancaster County Magistrate, with term to commence April 30, 1998, and to expire April 30, 2002:

Lee R. Deese, 3301 Lee Deese Road, Kershaw, S.C. 29067 VICE T. J. Gardner (resigned)

At 7:05 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 12:00 Noon.

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