Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, in addition to the modern press, it will give us deeper insight to read some of the Old Testament about the Middle East. Hear a few words from Second Kings, Chapter 19 (v. 16):
"Incline Your ear, O Lord, and hear; Open Your eyes, O Lord, and
see; Hear the words of Sennacherib, which he has sent to mock
(You) the living God."
Let us pray.
Our Father, it is awe that we feel as we live our days and see how history has a way of repeating itself.
Hezekiah and his Israelites called on God to "hear their prayers" and "see the terror" inflicted by the acts and words of Sennacherib.
But over and over God's people do not "hear" and "obey" Him.
Father, we would do well to hear and heed the Word of God, when over and over we read the words, "he that has ears to hear, let him hear" the words of conscience and the words of Jesus.
Help us to hear and obey!
Amen.
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
South Carolina Senate
P. O. Box 142
Columbia, SC 29201
Any individual wanting to provide input or receive copies of the plans may contact: Ms. Vivian C. Anthony, Director, Human Resources & JTPA (864) 467-7150.
Sincerely,
/s/ Vivian C. Anthony
Director
South Carolina Senate
P. O. Box 142
Columbia, SC 29201
In accordance with the Workforce Investment Act of 1998 (Public Law 105-220), the Greenville County Workforce Investment Board is in the process of completing the Formal Area Designation Petition. Any individual wanting to provide input into this process may contact Ms. Vivian C. Anthony, Director at Human Resources & JTPA, by calling (864) 467-7150.
Sincerely,
/s/ Vivian C. Anthony
Director
Senator GIESE introduced Dr. Pierre G. Jaffe of Columbia, S.C., Doctor of the Day.
At 12:00 A.M., Senator LEVENTIS requested a leave of absence from 6:00 P.M. - 12:00 A.M.
At 12:00 P.M., Senator COURTNEY requested a leave of absence for Senator SHORT until 5:00 P.M.
At 3:45 P.M., Senator JACKSON requested a leave of absence beginning at 5:00 P.M. for the balance of the day.
At 4:10 P.M., Senator FAIR requested a leave of absence for the balance of the day.
At 10:10 P.M., Senator HOLLAND requested a leave of absence for the balance of the day.
At 6:00 P.M., the leave of absence granted to Senator HUTTO from 6:30 - 12:00 A.M. was rescinded.
On motion of Senator BRYAN, with unanimous consent, the Privilege of the Chamber to that area behind the rail was extended to the Laurens District 55 High School Lady Raiders Basketball Team, their coach, school principal and school district superintendent.
On motion of Senator COURSON, with unanimous consent, the Privilege of the Floor was extended to Head Coach Travis Langford, Principal Tara Dean of Laurens District 55 High School and Superintendent Dr. Ed Taylor for the purpose of the presentation of a Concurrent Resolution.
The following were introduced:
S. 785 (Word version) -- Senators Fair, Thomas, Peeler, Giese, Matthews, Mescher, Drummond, Wilson and Hayes: A BILL TO ENACT THE "SOUTH CAROLINA SCHOOL SAFETY ACT OF 1999" INCLUDING
Read the first time and referred to the Committee on Education.
S. 786 (Word version) -- Senator McGill: A BILL TO AMEND ACT 295 OF 1985, RELATING TO THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF WILLIAMSBURG COUNTY, SO AS TO REVISE THE PER DIEM MEMBERS OF THE BOARD RECEIVE FOR EACH MEETING.
Read the first time and ordered placed on the local and uncontested Calendar.
On motion of Senator McGILL, with unanimous consent, S. 786 was ordered to receive a second and third reading on the next two consecutive legislative days.
H. 3118 (Word version) -- Reps. Haskins, Edge, Robinson, Harrison, Simrill, Sandifer and Vaughn: A BILL TO AMEND SECTION 41-27-410, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EMPLOYMENT SECURITY ADMINISTRATIVE CONTINGENCY ASSESSMENT, SO AS TO PROVIDE THAT THE CONTRIBUTION RATE MEANS THE CONTRIBUTION BASE RATE; TO AMEND SECTION 41-31-10, RELATING TO THE GENERAL RATE OF CONTRIBUTION FOR EMPLOYMENT SECURITY PURPOSES, SO AS TO PROVIDE THAT, FOR CALENDAR YEAR 2000 AND THEREAFTER, EMPLOYERS SUBJECT TO THE PAYMENT OF CONTRIBUTIONS ARE SUBJECT ALSO TO AN ADJUSTMENT OVER AND ABOVE THEIR BASE RATE IF SO REQUIRED BY SECTION 41-31-80; TO AMEND SECTION 41-31-40, RELATING TO RATE COMPUTATION PERIODS AND THE MINIMUM CONTRIBUTION FOR THE FIRST TWENTY-FOUR MONTHS
Read the first time and referred to the Committee on Labor, Commerce and Industry.
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Read the first time and referred to the Committee on Judiciary.
H. 3393 (Word version) -- Reps. Law, H. Brown and Young-Brickell: A BILL TO AMEND CHAPTER 23, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WATERCRAFT AND MOTOR TITLING, BY ADDING SECTION 50-23-295 SO AS TO PROVIDE THAT A CERTIFICATE OF TITLE TO WATERCRAFT MAY NOT BE TRANSFERRED IF THE DEPARTMENT OF NATURAL RESOURCES HAS NOTICE THAT PROPERTY TAXES ARE OWED ON THE WATERCRAFT OR OUTBOARD MOTOR.
Read the first time and referred to the Committee on Fish, Game and Forestry.
H. 3404 (Word version) -- Reps. W. McLeod and Scott: A BILL TO PROVIDE FOR NONPARTISAN ELECTIONS FOR MEMBERS OF THE ALLENDALE COUNTY BOARD OF EDUCATION TO BE HELD AT THE TIME OF THE GENERAL ELECTION BEGINNING IN 2000; TO PROVIDE PROCEDURES WHEREBY A PERSON MAY
Read the first time and ordered placed on the local and uncontested Calendar without reference.
H. 3522 (Word version) -- Rep. Altman: A BILL TO AMEND SECTION 59-123-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ORGANIZATION AND POWERS OF THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA, SO AS TO AUTHORIZE THE BOARD TO PURCHASE, SELL, OR LEASE REAL AND PERSONAL PROPERTY FOR ITS AUTHORIZED PURPOSES UNDER CERTAIN CONDITIONS.
Read the first time and referred to the Committee on Education.
H. 3620 (Word version) -- Reps. J. Smith, Allen, Bailey, Bales, Battle, Bowers, Breeland, J. Brown, T. Brown, Carnell, Cobb-Hunter, Emory, Gourdine, Harris, Hayes, M. Hines, Howard, Inabinett, Jennings, Kennedy, Lee, Lourie, Mack, Maddox, McCraw, M. McLeod, W. McLeod, McMahand, Miller, Moody-Lawrence, Neal, Neilson, Ott, Phillips, Pinckney, Rhoad, Sheheen, Whipper, Wilder, Wilkes, Lloyd, Scott and J. Hines: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 152 SO AS TO ENACT THE "SOUTH CAROLINA FIRST STEPS TO SCHOOL READINESS ACT" WHICH INCLUDES PROVISIONS FOR EXPANDED PARENTAL AND MATERNITY CARE, ADDITIONAL NUTRITION AND HEALTH CARE FOR CHILDREN, AND INCENTIVES FOR APPROPRIATE PRESCHOOL PROGRAMS; TO AMEND ARTICLE 17, CHAPTER 7, TITLE 20 OF THE 1976 CODE, RELATING TO THE CHILDREN'S TRUST FUND OF SOUTH CAROLINA, SO AS TO CHANGE THE NAME OF THE FUND TO CHILDREN'S FIRST STEPS TRUST FUND, PROVIDE THAT IT SHALL OVERSEE THE FIRST STEPS TO SCHOOL READINESS ACT, AND FURTHER PROVIDE FOR ITS GOVERNING BOARD, FUNCTIONS, DUTIES, AND FUNDING; TO ADD SECTIONS 43-1-240, 43-3-120, AND 44-1-280 SO AS TO PROVIDE THAT THE DEPARTMENT OF
Read the first time and referred to the Committee on Education.
H. 3649 (Word version) -- Rep. Tripp: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "NEW JOB" FOR PURPOSES OF CLAIMING THE JOB TAX CREDIT, SO AS TO INCLUDE A JOB REINSTATED AFTER THE EMPLOYER HAS REBUILT A FACILITY DUE TO INVOLUNTARY CONVERSION, BY EMINENT DOMAIN OR CONDEMNATION, OF A PRIOR EXISTING FACILITY; AND TO AMEND SECTIONS 12-10-30, AS AMENDED, AND 12-10-35, BOTH RELATING TO QUALIFICATION OF A BUSINESS PURSUANT TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO CONFORM CRITERIA TO INCLUDE THE DEFINITION OF "NEW JOB" AS A JOB CREATED OR REINSTATED PURSUANT TO SECTION 12-6-3360.
Read the first time and referred to the Committee on Finance.
H. 3779 (Word version) -- Reps. Dantzler and Law: A BILL TO AMEND SECTION 41-18-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN THE SOUTH CAROLINA AMUSEMENT RIDERS SAFETY CODE, SO AS TO REVISE THE DEFINITION OF "SERIOUS INJURY" TO INCLUDE DEATH, IMMEDIATE INPATIENT HOSPITALIZATION, FRACTURES, AND DISFIGUREMENTS.
Read the first time and referred to the Committee on Labor, Commerce and Industry.
H. 3835 (Word version) -- Rep. Robinson: A BILL TO AMEND ARTICLE 1, CHAPTER 54, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLECTION AND ENFORCEMENT OF TAXES LEVIED BY THE DEPARTMENT OF REVENUE, BY ADDING SECTIONS 12-54-43 SO AS TO PROVIDE FOR CIVIL PENALTIES AND 12-54-44 SO AS TO PROVIDE FOR CRIMINAL PENALTIES; TO AMEND SECTIONS 4-12-30, AS AMENDED, AND 4-29-67, AS AMENDED, BOTH RELATING TO A PROJECT PAYING A FEE IN LIEU OF PROPERTY TAXES, SO AS TO DEFINE "REPLACEMENT PROPERTY" AS REPLACING THE OLDEST PROPERTY IN THE PROJECT SUBJECT TO THE FEE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO A PROJECT PAYING A FEE IN LIEU OF PROPERTY TAXES, SO AS TO ADD CERTAIN CROSS REFERENCES; TO AMEND SECTION 6-1-320, RELATING TO LIMITATIONS ON MILLAGE RATE INCREASES, SO AS TO REFERENCE THE CALENDAR YEAR INSTEAD OF THE FISCAL YEAR AND TO PROVIDE FOR COMPUTATION OF THE ROLLBACK MILLAGE; TO AMEND SECTION 11-1-10, RELATING TO OFFICIAL RECEIPTS FOR MONIES COLLECTED, SO AS TO LIMIT RELEASE OF DOCUMENTS BY THE DEPARTMENT OF REVENUE; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO PROVISIONS OF THE INTERNAL REVENUE CODE NOT ADOPTED BY THE STATE, SO AS TO ADOPT SECTION 6015; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOB TAX CREDIT, SO AS TO DESCRIBE SPECIFICALLY THE DATA USED TO RANK AND DESIGNATE THE STATE'S COUNTIES AS THE AVAILABLE PER CAPITA INCOME DATA AND UNEMPLOYMENT RATE DATA FROM THE LAST THREE YEARS AND THE DATA USED FOR DETERMINATION OF THE PER CAPITA INCOME OF A COUNTY AS THE LATEST AVAILABLE DATA AND TO PROVIDE FOR THE PASS THROUGH OF THE UNUSED CREDIT TO MEMBERS OF CERTAIN ENTITIES CLAIMING THE CREDIT; TO AMEND SECTION 12-6-4910, RELATING TO THOSE TAXPAYERS REQUIRED TO FILE INCOME TAX RETURNS, SO AS TO REFERENCE THE DEDUCTION FOR RETIREMENT INCOME;
Read the first time and referred to the Committee on Finance.
H. 3888 (Word version) -- Rep. Cato: A BILL TO AMEND SECTION 31-3-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMMISSIONERS OF MUNICIPAL HOUSING
Read the first time and referred to the Committee on Labor, Commerce and Industry.
H. 3904 (Word version) -- Rep. Lanford: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 153 SO AS TO PROVIDE FOR THE INVESTMENT OF ENDOWMENT FUNDS OF STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING, PROVIDE FOR DEFINITIONS, FIDUCIARY DUTIES, INVESTMENT PLANS, AND RESPONSIBILITIES, PROVIDE FOR THE USE OF AN ANNUAL PLAN SUBMITTED BY THE STATE RETIREMENT SYSTEM INVESTMENT PANEL IN DETERMINING EACH INSTITUTION'S INVESTMENT PLAN, TO DESIGNATE THE BOARD OF TRUSTEES OF EACH INSTITUTION OF HIGHER LEARNING AS TRUSTEE FOR THE FUNDS HELD BY THE STATE TREASURER AND THE STATE TREASURER AS THE AGENT OF EACH TRUSTEE FOR THE PURPOSE OF CARRYING OUT THE APPROVED INVESTMENT PLAN OF EACH RESPECTIVE INSTITUTION OF HIGHER LEARNING, PROVIDE FOR THE TRUSTEE'S POWERS AND DUTIES, PROVIDE FOR CERTAIN INVESTMENT CONSIDERATIONS WHICH MUST BE FOLLOWED BY THE TRUSTEE, AND PROVIDE FOR THE LIABILITY OF A TRUSTEE WHO BREACHES HIS DUTY IMPOSED BY CHAPTER 153 OF TITLE 59; BY ADDING SECTIONS 11-5-245 AND 11-5-260 SO AS TO PROVIDE FOR REPORTS FROM THE STATE TREASURER TO THE RESPECTIVE BOARDS OF TRUSTEES ON A PERIODIC BASIS, AND TO AUTHORIZE THE STATE TREASURER TO INVEST THESE ENDOWMENT FUNDS HELD BY HIM IN EQUITY SECURITIES FOR EACH RESPECTIVE INSTITUTION AS DIRECTED BY ITS BOARD OF TRUSTEES; AND TO AMEND SECTIONS 30-4-40 AND 30-4-70, BOTH AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE AND MEETINGS WHICH MAY BE CLOSED FOR PURPOSES OF THE FREEDOM OF INFORMATION ACT, SO AS TO EXEMPT RECORDS RELATING TO INVESTMENTS OR OTHER FINANCIAL MATTERS OF THE ENDOWMENT INVESTMENT
Read the first time and referred to the Committee on Education.
H. 3911 (Word version) -- Reps. Robinson, D. Smith, Kelley, Barrett, Allison, Easterday, Wilkins, H. Brown, Harrell, Woodrum, Simrill, Allen, Altman, Barfield, Beck, Campsen, Cato, Cooper, Dantzler, Davenport, Edge, Fleming, Gamble, Gilham, Hamilton, Harrison, Haskins, Hinson, Keegan, Knotts, Leach, Limehouse, Littlejohn, Loftis, Lucas, Maddox, Martin, Mason, McGee, Meacham, Rice, Riser, Rodgers, Sandifer, Sharpe, R. Smith, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Witherspoon and Young-Brickell: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO PHASE IN AN EXEMPTION FOR FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD, TO PROVIDE THAT GENERAL FUND REVENUES MUST BE CREDITED TO THE EIA FUND IN FISCAL YEARS 1999-00 THROUGH 2003-04 TO ENSURE THAT EIA REVENUES ATTRIBUTABLE TO FOOD SALES ARE NOT LESS THAN SUCH REVENUES IN FISCAL YEAR 1998-99, AND TO PROVIDE FOR THE APPLICATION OF LOCAL SALES AND USE TAXES ON SALES AND CONSUMPTION OF THESE FOOD ITEMS REGARDLESS OF THE STATE EXEMPTION FOR THESE ITEMS.
Read the first time and referred to the Committee on Finance.
H. 3994 (Word version) -- Reps. Barfield, Edge, Keegan, Kelley and Witherspoon: A BILL TO AMEND SECTION 7-7-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN HORRY COUNTY, SO AS TO REDESIGNATE THESE PRECINCTS, DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED, AND
Read the first time and referred to the Committee on Judiciary.
H. 4001 (Word version) -- Reps. Jennings and Harris: A BILL TO AMEND ACT 256 OF 1981, AS AMENDED, RELATING TO THE SCHOOL DISTRICT OF MARLBORO COUNTY, SO AS TO REQUIRE CANDIDATES FOR THE SCHOOL BOARD TO FILE THE WRITTEN NOTICE OF CANDIDACY BY AUGUST FIRST OF EACH GENERAL ELECTION YEAR RATHER THAN THIRTY DAYS BEFORE THE ELECTION.
Read the first time and ordered placed on the local and uncontested Calendar without reference.
H. 4018 (Word version) -- Reps. Scott, 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, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, 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, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION DESIGNATING MAY 2, 1999, AS "SARAH ANN POTEE OWENS STATE PRAYER DAY", IN RECOGNITION OF MRS. SARAH ANN POTEE OWENS' EFFORTS TO ESTABLISH A SPECIAL DAY OF PRAYER TO ADDRESS OUR NATION'S CRIME PROBLEM.
The Concurrent Resolution was introduced and referred to the Committee on Invitations.
Columbia, S.C., April 29, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
S. 620 (Word version) -- Senators Martin, J. Verne Smith, Bryan, Giese, Leventis, Wilson, Alexander, Waldrep and Courson: A JOINT RESOLUTION TO PROHIBIT THE DEPARTMENT OF PUBLIC SAFETY FROM SELLING, OR OTHERWISE FURNISHING, SOCIAL SECURITY NUMBERS, DIGITIZED PHOTOGRAPHS, AND DIGITIZED SIGNATURES, AND TO PROHIBIT ANY PRIVATE PERSON OR ENTITY FROM USING AN ELECTRONICALLY-STORED VERSION OF THE PHOTOGRAPH, SOCIAL SECURITY NUMBER, OR SIGNATURE OF ANY PERSON FOR ANY PURPOSE, WHEN SUCH ELECTRONICALLY-STORED INFORMATION WAS OBTAINED FROM A DRIVER'S LICENSE RECORD.
and has ordered the Joint Resolution Enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., April 29, 1999
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
S. 36 (Word version) -- Senators Waldrep, Elliott, Ryberg and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-20-25 SO AS TO REQUIRE A PERSON SERVING IN AN OFFICE ELECTED BY THE GENERAL ASSEMBLY WHO IS NOT SEEKING REELECTION TO GIVE WRITTEN NOTICE OF SUCH TO THE JOINT COMMITTEE FOR THE REVIEW OF CANDIDATES.
and has ordered the Bill Enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
H. 3158 (Word version) -- Reps. Campsen, Knotts, R. Smith, Loftis, Barfield, Tripp, Altman, Wilder, Easterday, Edge, Leach, Harrison, Robinson, Wilkins, J. Brown, Miller, Hamilton, Barrett, Rice, Cato, J. Smith, Delleney, Gilham, Lourie, Rhoad, Bailey, Sharpe, Kirsh, Bales, Jennings, M. Hines, Neilson, Kennedy, Ott, Cobb-Hunter, Hayes, Gourdine, J. Hines, Inabinett, Breeland, Lee, Moody-Lawrence, F. Smith, McMahan, Mack, Maddox, Riser, Simrill and Sandifer: A BILL TO AMEND TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF GOVERNMENT, BY ADDING CHAPTER 32 SO AS TO ENACT THE "SOUTH CAROLINA RELIGIOUS FREEDOM ACT" UNDER WHICH THE STATE OF SOUTH CAROLINA AND ANY POLITICAL SUBDIVISION OF THE STATE IS PROHIBITED FROM BURDENING A PERSON'S CONSTITUTIONAL EXERCISE OF RELIGION EXCEPT UNDER CERTAIN CONDITIONS AND UNDER WHICH A PERSON WHOSE EXERCISE OF RELIGION HAS BEEN BURDENED IN VIOLATION OF THIS CHAPTER MAY ASSERT THAT VIOLATION AS A CLAIM OR DEFENSE IN A JUDICIAL PROCEEDING AND OBTAIN APPROPRIATE RELIEF AGAINST THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE.
The House returned the Bill with amendments.
On motion of Senator BRYAN, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
H. 3697 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1998-99.
The House returned the Joint Resolution with amendments.
On motion of Senator DRUMMOND, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.
S. 760 (Word version) -- Senators Wilson, Glover, Giese and Bryan: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 12, 1999, AS THE TIME FOR THE HOUSE OF REPRESENTATIVES AND THE SENATE TO MEET IN JOINT SESSION IN THE HALL OF THE HOUSE OF REPRESENTATIVES FOR THE PURPOSE OF ELECTING MEMBERS OF THE BOARDS OF TRUSTEES OF THE CITADEL, COASTAL CAROLINA UNIVERSITY, LANDER UNIVERSITY, SOUTH CAROLINA STATE UNIVERSITY, WIL LOU GRAY OPPORTUNITY SCHOOL, AND WINTHROP UNIVERSITY TO SUCCEED THOSE MEMBERS WHOSE TERMS EXPIRE IN 1999, OR WHOSE POSITIONS OTHERWISE MUST BE FILLED; AND TO ESTABLISH A PROCEDURE REGARDING NOMINATIONS AND NOMINATING AND SECONDING SPEECHES FOR THE CANDIDATES FOR THESE OFFICES DURING THE JOINT SESSION.
The Concurrent Resolution was adopted, ordered sent to the House.
H. 3324 (Word version) -- Rep. Harris: A CONCURRENT RESOLUTION REQUESTING THE SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION TO DESIGNATE THE BRIDGE ON S.C. 52 NORTH OF CHERAW IN CHESTERFIELD COUNTY AS THE "GILBERT 'GIL' FRANKLIN HALMA BRIDGE."
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3082 (Word version) -- Reps. Townsend, Walker, Delleney, J. Brown, Stuart, Harrison, Allison, J. Hines, Edge, Robinson, Rodgers, Cato, Wilkins, Sandifer, Moody-Lawrence, Lourie, J. Smith, F. Smith, Rutherford, Maddox, Allen, Ott, Harvin, Kennedy, Jennings, Bales, Hayes, W. McLeod, Simrill, Knotts and Webb: A BILL TO AMEND CHAPTER 63 OF TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUPILS, BY ADDING ARTICLE 13 SO AS TO PROVIDE THE CONDITIONS, REQUIREMENTS, AND PROCEDURES UNDER WHICH LOCAL SCHOOL BOARDS OF
On motion of Senator ANDERSON, with unanimous consent, the Bill was carried over.
S. 421 (Word version) -- Senators McConnell and Passailaigue: A BILL TO AMEND SECTION 59-149-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELIGIBILITY FOR A LIFE SCHOLARSHIP, SO AS TO PROVIDE THAT A PERSON WHO WAS ON ACTIVE DUTY WITH THE UNITED STATES ARMED FORCES ON OR AFTER MAY, 1995, ALSO IS ELIGIBLE FOR THESE SCHOLARSHIPS.
On motion of Senator DRUMMOND, with unanimous consent, the Bill was carried over.
On motion of Senator McCONNELL, with unanimous consent, the members of the Judicial Screening Committee were granted leave to attend a meeting of the committee and be permitted to vote from the balcony.
At 12:34 P.M., on motion of Senator DRUMMOND, the Senate receded from business until 2:00 P.M.
The Senate reassembled at 2:04 P.M., and was called to order by the PRESIDENT.
At 2:04 P.M., on motion of Senator MOORE, the Senate receded from business until 2:20 P.M.
At 2:25.M., the Senate resumed.
Senator ALEXANDER rose for an Expression of Personal Interest.
THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.
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.
The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.
At 2:32 P.M., Senator LAND asked unanimous consent to make a motion under Rule 3b to send for the absent members.
There was no objection and Rule 3b was invoked.
Senator MOORE spoke on the Bill.
At 2:35 P.M., Senator DRUMMOND assumed the Chair.
Senator MOORE spoke on the Bill.
At 2:53 P.M., the PRESIDENT assumed the Chair.
Senator MOORE spoke on the Bill.
At 3:53 P.M., Senator DRUMMOND assumed the Chair.
Senator MOORE spoke on the Bill.
At 4:19 P.M., on motion of Senator LAND, with unanimous consent, the Senate receded from business until 5:30 P.M., provided the Senators could depart the Senate Chamber for their offices in the Gressette Building with the provisions of Rule 3b still in effect.
Debate was interrupted by the recess.
The Senate reassembled at 5:32 P.M., and was called to order by the PRESIDENT.
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.
The Senate resumed consideration of the Bill. The question being the third reading of the Bill.
At 5:33 P.M., on motion of Senator HAYES, the Senate receded from business until 5:40 P.M.
At 5:44 P.M., the Senate resumed.
At 5:44 P.M., on motion of Senator MARTIN, the Senate receded from business not to exceed ten minutes.
At 6:00 P.M., the Senate resumed.
At 6:00 P.M., on motion of Senator HAYES, the Senate receded from business not to exceed ten minutes.
At 6:10 P.M., the Senate resumed.
Senator MOORE spoke on the Bill.
At 6:22 P.M., on motion of Senator MOORE, the Senate receded from business until 7:30 P.M.
At 8:00 P.M., the Senate resumed.
At 8:00 P.M., on motion of Senator COURSON, the Senate receded from business not to exceed ten minutes.
At 8:30 P.M., the Senate resumed.
At 8:30 P.M., on motion of Senator MOORE, the Senate receded from business not to exceed fifteen minutes.
At 8:50 P.M., the Senate resumed.
Senator MOORE spoke on the Bill.
At 8:50 P.M., Senator MOORE moved under Rule 15A to bring debate to a close on the entire matter of H. 3002 at 10:00 P.M.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Bauer Branton Bryan Cork Courson Courtney Drummond Ford Glover Holland Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Anderson Elliott Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
In accordance with Rule 15A, the requisite number of votes had been given and the motion to set 10:00 P.M. as the time certain to vote on the entire matter of H. 3002 was adopted.
I voted to bring debate to a close on H. 3002. I do not support the compromise on video poker that has been proposed, but this matter must be brought to a close. We have spent four weeks on this issue, and at this point we need to vote and move on to the important educational issues before us. There are amendments on the desk to improve this Bill.
Senator DRUMMOND spoke on the Bill.
Senators PASSAILAIGUE and MOORE proposed the following Amendment No. P3B (3002R037.ELP), which was adopted:
Amend the amendment, as and if amended, by striking it in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:
SECTION 1. (A) A statewide referendum must be conducted at the time of the general election in 2000 to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission must place the exact question contained in subsection (B) of this section 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.
(B) The question put before the qualified electors in the referendum shall read:
"Shall cash payoffs for credits earned on video game machines continue to be allowed after December 31, 2000?
No [ ]
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'."
SECTION 2. 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
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 3. 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 4. (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
(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 5. 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 6. Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (g) which reads:
"(g) 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 16-19-40 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 8. 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 9. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 10. Title 12 of the 1976 Code is amended by adding:
Article 1
General
Section 12-22-100. As used in this chapter, unless the context indicates otherwise:
(1) `Director' means the director of the department.
(2) `Chief' means the chief of the 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 5 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 winnings 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) `Gross profits' means the amount of money that goes into the machine less winnings.
(13) `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, or as defined in Section 12-22-320(A), 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.
(14) `Machine owner' means any person, other than a distributor, who owns one or more machines.
(15) `Machine operator' means any person who owns, operates, or manages an establishment with one or more machines.
(16) `Manufacturer' means any person that manufactures, assembles, or programs machines or controllers for sale or use in this State.
(17) `Player' means a person who participates in the playing of a machine.
(18) `Principal' means every person; association; all partners of a partnership, limited partnership, or limited liability partnership; all members of a limited liability company; trust and its beneficiaries; 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 other entity who 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. '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 12-22-300 held by the applicant.
(19) `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
(20) `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.
(21) `Winnings' means the amount printed on a validated ticket from a licensed machine that must, subject to the limitations imposed by this chapter, be paid to a player.
Section 12-22-110. (A) Unless specifically granted to the division, the department has all powers necessary and proper to fully and effectively execute the provisions of this chapter including, but not limited to, the power:
(1) notwithstanding Section 12-54-240, to enter into agreements with any department, agency, or instrumentality of the United States or this State for the purpose of regulating persons or entities licensed under this chapter and controlling coin-operated devices or machines and to enforce the provisions of this chapter and may disclose information to the division and to other governmental entities in and outside South Carolina;
(2) to investigate applicants for any license authorized to be issued under this chapter and to determine the eligibility of applicants for licenses;
(3) to exercise jurisdiction over and to supervise all machines or coin-operated devices;
(4) to inspect and conduct investigations by entering the offices, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with the provisions of this chapter is likely to be found and to be present through its inspectors and agents any time gaming operations are conducted for the purpose of certifying the revenue thereof, receive and conduct investigations regarding complaints from the public, and conduct other investigations into the conduct of the games and the operation and maintenance of machines;
(5) to review any licenses issued under the provisions of this chapter and to investigate alleged violations of this chapter and to take appropriate disciplinary action against any licensee including the imposition of penalties for a violation, disabling of machines, suspension of licenses, or revocation of licenses, or the institution of appropriate legal action for enforcement;
(6) to require that the records of any licensee must be kept in the manner prescribed by the department. All records shall be retained for
(7) to require of applicants and their principals 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;
(8) to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;
(9) to issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents in accordance with Chapter 4 of Title 12, to administer oaths and affirmations to witnesses, and receive and weigh testimony;
(10) 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;
(11) to issue, deny the issuance of, suspend, or revoke any license authorized by this chapter, so long as the department's action is in compliance with the provisions of this Chapter 60 of Title 12;
(12) to suspend any license authorized by this chapter without notice or hearing upon a determination that a licensee is wilfully 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;
(13) 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;
(14) to establish hours of operation for enrollment and support of machines connected to the central computer monitoring system and to
(15) to adopt regulations in accordance with the Administrative Procedures Act; and
(16) to take any other action as may be reasonable or appropriate to enforce this chapter.
Notwithstanding any provision of this section or any other provision of law, the administration or execution of any of the powers granted to the department under this chapter may not be delegated or transferred without prior approval of the General Assembly through an act or joint resolution.
(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.
Section 12-22-120. The director, the employees of the department, the chief, the employees of the division, a machine owner, a machine operator, a manufacturer, a distributor, or an establishment may not, directly or indirectly, individually, or as a member of a partnership, or as a shareholder of a corporation, have a financial or ownership interest in a testing laboratory chosen by the department pursuant to Section 12-22-720. 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 12-22-300.
Licenses
Section 12-22-300. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, establishment, and distributor shall be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine must be licensed.
Section 12-22-310. (A) At the time provided for in Section 12-22-345, a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department biennially a license for the privilege of engaging in business. There are hereby imposed the following biennial fees for licenses required to be obtained under this chapter:
(1) manufacturer, two thousand dollars;
(2) owner, two thousand dollars;
(3) distributor, two thousand dollars; and
(4) establishment, two thousand dollars.
There is no licensing fee imposed upon a person licensed as a machine operator.
(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) Except as provided in Article 5, a license authorized in this section shall not be issued unless and until the department has completed its background investigation.
Section 12-22-315. (A) The department may issue licenses authorized under this chapter to qualifying applicants.
(B) The department may not issue a license under this chapter to an applicant unless the applicant and all principals meet the requirements of this chapter.
Section 12-22-320. (A) Every person who owns, or maintains for use, or permits the use of on a place or premises occupied by him, 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 device in South Carolina and shall pay for the license a tax of fifty dollars for each device in item (1), two hundred dollars for each device in item (2), and four thousand dollars for each machine in item (3):
(1) a device 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 device on which an admissions tax is imposed is exempt from the coin-operated device license provisions of this section;
(2) a device for the playing of amusements or video games, without a free play feature, or devices of the crane type operated by a slot in which is deposited a coin or thing of value and a device 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 device 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 device required to be licensed under this item is exempt from the license fee if an admissions tax is imposed; and
(3) a machine of the nonpayout type, in-line pin game, or video game with a free play feature operated by a slot in which is deposited a coin or thing of value except devices 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) The owner or operator of any machine which is exempt by Section 16-19-60 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 Section 12-22-800(A).
(C) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this chapter.
(D) Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(E) The department shall not issue a license for the operation of a machine which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) A license for a machine included in Section 12-22-320(A)(3) shall be issued only to a person who has been licensed pursuant to Section 12-22-310 for use at a licensed establishment. No machine included in Section 12-22-320(A)(3) may be operated without a license.
(G) No machine included in Section 12-22-320(A)(3) may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.
Section 12-22-325. (A) Every person owning or operating a billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table for profit shall apply for and procure from the department a license for the privilege of operating the table and pay for the license a biennial tax of fifty dollars for each table owned or operated.
(B) 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 shall see that the proper state license is attached to a permanent, nontransferable part of the device before its operation is commenced.
Section 12-22-330. (A) In addition to all other licenses required by this chapter, a person who owns devices described in Sections 12-22-320(A)(1), (A)(2), and 12-22-325 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Sections 12-22-320(A)(1) and 12-22-325; and
(2) two hundred dollars for devices in Section 12-22-320(A)(2).
(B) Only one license is required pursuant to this section 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.
(C) The licenses provided by this section are subject to Section 12-22-345 and are a condition precedent to engaging in or the continuing operation of devices described in this chapter.
Section 12-22-335. Each person required to obtain a license for machines included in Section 12-22-320 (A)(3) shall maintain records showing the manufacturer's serial number, model, or type of machine and the VGMID.
Section 12-22-340. In lieu of the license required under Sections 12-22-320(A)(1) and (2), 12-22-325, and 12-22-330 the department may issue a temporary license to persons making application to operate devices defined in Sections 12-22-320 (A)(1) and (A)(2) and 12-22-335 at a recognized county or state fair. The temporary license is the total amount of license fees required on all devices for which application is made, based upon one twenty-fourth of the biennial license required under Sections 12-22-320(A)(1) and (A)(2), 12-22-325, and 12-22-330. The license is valid for the specific location designated on the license and the number of devices for which application was made and expires when the designated fair officially ends.
Section 12-22-345. (A) Every person subject to payment of tax under Sections 12-22-320 and 12-22-325, in advance of or before the first day of June every two years or before doing an act taxable under this article, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the tax levied for it. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(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 Sections 12-22-320 and 12-22-325.
(D) Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the licensee's registered agent is located or the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. 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 Sections 12-22-310 and 12-22-330.
Background Investigations
Section 12-22-500. (A) The department shall issue the license required by Section 12-22-310 to the applicant upon a determination by the department that the applicant and each principal of the applicant is eligible for the license pursuant to the provisions of this chapter.
(B) The application must be made on forms provided by the department and the applicant and each principal of the applicant must submit any information required by this chapter. 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.
(C) 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 12-22-100(18);
(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 Section 12-22-505;
(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; and
(6) any other information deemed necessary by the department for the proper administration and enforcement of this chapter.
In the case of an application for a machine operator or establishment license:
(a) 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
(b) information that may be required by the department, such as voter registration, to prove the two-year residency requirement.
(D)(1) In addition to the information contained on the department's application form as provided in subsection (C), the applicant for a license must disclose, at the time of filing the application form, the identity and address of every principal.
(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. Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.
(E) 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.
(F) A person with a license issued pursuant to this chapter has an affirmative duty to notify the department within thirty days of any material changes in required information provided to the department including, but not limited to, current and correct disclosure of all principals.
(G) At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to Section 12-22-310.
Section 12-22-505. (A) Upon receipt of a timely and complete application for a license required by Sections 12-22-300 and 12-22-310, the department or division must begin a thorough background investigation of each applicant and each principal of the applicant.
(B) The department may request the assistance of the division in conducting the background investigation on an applicant and each principal of the applicant.
(C) The department must not issue, or must revoke, a license pursuant to Sections 12-22-300 and 12-22-310 if the person, applicant, or principal of the applicant:
(1) has been convicted within the last fifteen years of:
(a) a state or federal felony offense;
(b) a gambling offense;
(c) a criminal offense involving fraudulent activity or defined as a fraud; or
(d) a criminal offense with a sentence of not less than two years; or
(2) has had a gambling license in another jurisdiction revoked; or
(3) has intentionally or wilfully submitted an application which contains material information which is false; or
(4) the person was determined within the last fifteen years to be liable for, or agreed that he was liable for, a civil judgment based in whole or in part upon criminal conduct which carries a penalty of imprisonment for two or more years, or violations of gambling laws, or consumer fraud; or
(5) has any outstanding tax or fee liability with the department; or
(6) the applicant for a license for a machine included in Section 12-22-320(A)(3) has not been a resident of the State for two years.
(D) 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 12-22-510. 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. A person must be issued a provisional license upon receipt and review of the results of the division fingerprint review if the results show no convictions of the crimes referenced in Section 12-22-505(C)(1) for either the applicant or the principals. Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the prospective licensee a written affirmation on a form provided by the department that neither the prospective licensee nor any principal has been convicted of any crime referenced in Section 12-22-505(C)(1).
Section 12-22-515. (A) The department must be given within ten business days written notice of 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 or an establishment licensed
(B) 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 12-22-310, 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.
(C) A temporary license issued pursuant to subsection (B) 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.
Video Game Restrictions
Section 12-22-700. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine or device subject to the license imposed by this chapter by way of proof of licensing must have a current license displayed conspicuously on the front of the machine or device. 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 or device.
Section 12-22-705. Any person who owns or operates machines or devices described in Sections 12-22-320 and 12-22-325 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
Section 12-22-710. (A) Every person required to obtain a license pursuant to Sections 12-22-320 and 12-22-325 shall maintain records showing, as applicable:
(1) the manufacturers' serial number;
(2) model and type of machine or device;
(3) the VGMID;
(4) the license number;
(5) the establishment's or the location's name, address, and telephone number;
(6) the machine owner;
(7) the machine operator;
(8) the date the machine entered the State;
(9) the date the machine entered the location; and
(10) the date the machine went on-line.
(B) The licensee 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.
(C) Information required by this section must be available on demand for inspection by a representative of the department. The licensee shall be provided a reasonable time in which to provide the information demanded.
Section 12-22-715. Before a machine may be connected, or remain connected, to the central computer monitoring system, the machine shall have a current and valid machine license. The machine owner and the machine operator and the establishment shall have current and valid licenses as required by this chapter.
Section 12-22-720. (A)(1) All machines, location controllers and associated modems, and computer chips, shall be verifiably of a make, model, and software version, certified by the department or a testing laboratory selected by the department before such items may be possessed, owned, operated, or allowed to operate at any place within this State.
(2) 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
(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 12-22-725. (A) Within ninety days from enactment, all machines shall meet the following standards, and machine owners 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 and:
(1) have games that are both random and which have a minimum gross payout of between ninety and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) do not operate in a misleading or deceptive manner;
(3) do not have any means of manipulation that affect the random probabilities of winning a game;
(4) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits by the use of a credit card or debit card, and to prevent the obtaining of credits without paying or by stringing, slamming, drilling, or other means;
(5) have one or more metering devices that keep a record of: all cash inserted or deposited into the machine; credits played; credits won; validated cash ticket amounts; and other information prescribed by the department and which transmit the information to a machine controller. Cash records shall include total coins and bills accepted and total credit generated by coin and bill acceptors;
(6) are accessible from the central computer monitoring system on demand by telecommunication through a machine or location controller for purposes of polling or reading device activities, the uploading of data required to be recorded and stored pursuant to Section 12-22-775, and for central computer remote enabling or disabling of machine operations;
(7) be capable of interface with a central computer monitoring system through a machine or location controller;
(8) be designed, fitted, or retrofitted as may be the case necessary to establish a secure communication connection between the machine and the central computer monitoring system through a machine or location controller on or before the machine is certified to operate pursuant to this item; and
(9) meet the standards set by the department.
(B)(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 as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of subsection (A) within 150 days after enactment but no later than December 1, 1999.
(C) 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.
(D) The department is authorized to 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 limitations of this chapter, maximize competition among manufacturers.
Section 12-22-730. The department is authorized to 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 multi-player units. Applicants must meet these standards before any license may be issued.
Section 12-22-735. 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 testing 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
Section 12-22-740. (A) Each location controller must be programmed so as to automatically 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 of not less than seventy-two hours. The machine shall be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following shall occur:
(1) A message will appear on the screen warning the player that the machine is about to be disabled and the player will be informed that one minute remains to complete the game.
(2) A count down timer will be displayed.
(3) If the player completes the game, all credits will be reported on a winnings ticket and no other games will be allowed to be played on that machine.
(4) If the player has not completed the game in the minute allotted, then the machine will complete the hand according to the manufacturer's recommended play strategy, all credits will be reported on a winnings ticket, and the machine will be disabled.
Section 12-22-745. Each machine placed in operation in the State shall 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 machine owner shall affix, the
Section 12-22-750. A machine may not be disposed of until such notice has been given to the department. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing prior to 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;
(8) the proposed manner, time, and place of disposal.
A machine shall be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity.
Section 12-22-755. A machine shall not simulate bingo.
Section 12-22-760. Each machine shall contain a single printing mechanism capable of printing an original ticket and retaining an exact copy. Tickets shall 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 12-22-765. All machines, location controllers, and the central computer monitoring system selected by the department shall 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 12-22-770. 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 12-22-775. (A) As part of the central computer monitoring system required under this article, each location operating machines included in Section 12-22-320 (A)(3) must install a sufficient
(B) In addition to the any other requirements, each controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) recognize, record, and store as a separate and distinguishable entry each occurrence of an authorized or unauthorized breach, unlocking, or opening of any machine compartment or door;
(3) disable any or all machines and record and store an entry which records that the disabling was required by:
(a) an unauthorized game door opening;
(b) an unauthorized coin or currency door opening; or
(c) an attempt to tamper with or modify any location controller or modem or cabling or other form of connectivity which connects a machine to a controller or one controller to another controller.
(4) immediately notify the central computer and record and store entry when a machine is taken off-line from the location controller without prior authorization;
(5) recognize, record, and store as a separate and distinguishable entry each occurrence where machine tampering is detected. Detection of tampering occurs if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the central computer monitoring system;
(6) re-enable a machine which has been disabled and record and store an entry of this event;
(7) all entries required to be recorded and stored by any controller must include a unique identification number which identifies the machine or controller which created the record and which denotes the date and time of the creation of the entry;
(8) have secure communications established with the central computer monitoring system and periodically upload to the central computer on a basis directed by the department, all entries which have been recorded and stored as of the close of the first reporting period and at the close of each subsequent reporting period thereafter;
(9) have sufficient capacity to store for a minimum of five days or for the period of time equal to the reporting period established by the department, whichever is greater, data containing all required entries created and stored in a machine or location controller. The data must be stored immediately in a manner that allows on demand, real time access by the central computer monitoring system. Data stored in a machine or location controller may only be accessed by the department from the central computer monitoring system, provided that the department may, at the request of the owner or operator of the machine for a reasonable charge, make a copy of the data available in electronic or such other form as the owner or operator requests, provided, further, that no owner or operator may be authorized or given access to any location or machine controller;
(10) have an internal clock, which may only be set, reset, or adjusted by and from the central computer;
(11) be designed and manufactured in such a manner so as to be protected from unauthorized interference or tampering by any person or external device or force, to corrupt or alter data or corrupt or suspend communication signals or the transmission of data from a machine to a controller, from a machine controller to a location controller, or from a location controller to the central computer monitoring system, and this requirement extends to all associated communication devices and cabling or other forms of connectivity between the controller and the machines and communication devices;
(12) 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; and
(13) be capable of validating tickets printed by a machine.
Section 12-22-780. (A) Any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than three dollars and the payout must be limited to credits equal
(B) Notwithstanding any other provision of law, at the time the player presents a winnings ticket to the machine operator or his agent for a cash payout, the machine operator or his agent shall require the person presenting the winnings ticket to write or otherwise have placed on the winnings ticket the person's name, address, and telephone number. Upon the provision of the winnings 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 winnings 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.
(C) Any person offering money, prize, bonus, or anything of value for winning credits above what is printed on a winnings 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.
(D) A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of suspension or revocation of the establishment, operator, or owner license and may be fined an amount not to exceed one thousand dollars per violation.
Section 12-22-785. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) the establishment license at the establishment where the machines are located has been revoked;
(2) the license of the machine has been revoked;
(3) the machine owner's license has been revoked;
(4) the machine operator's license has been revoked;
(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;
(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) subsection (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 12-22-790. (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 a 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
Section 12-22-793. A person who knowingly possesses, owns, operates, or allows the operation of a contraband machine, contraband device, or contraband associated equipment at any place within this State is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned for not more than five years, or both.
Section 12-22-795. (A) Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided by Sections 12-22-935, 12-22-940, and 12-22-945 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.
(B) A licensed establishment shall have posted and visible to the public at least one sign with the following words printed thereon:
(1) 'A person shall be twenty-one years of age to receive winnings 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) `Violations are subject to civil and criminal penalties.'
(7) `Violations may be reported to S.C. State Law Enforcement Division or your local law enforcement agency.'
(C) The sign required by subsection (B) shall be visible and readable by the person playing the machine. Each letter on the sign shall be a minimum of two inches high.
Section 12-22-800. (A) A licensed establishment or a machine operator may not engage in any of the conduct specified in subsection (B). If a violation of subsection (B) has occurred, the department shall refuse to issue or may revoke or immediately suspend a license for an establishment or to a machine operator who has engaged in such conduct.
(B) A machine operator or licensed establishment is engaged in unlawful conduct if it:
(1) maintains, possesses, or otherwise allows on its premises more than five machines, except as provided in Section 12-22-815;
(2) advertises, or allows advertising, in any manner for the playing of the machines except as provided in Section 12-22-810;
(3) offers or allows to be offered any inducement as prohibited in Section 12-22-805 to a person to play machines or for the playing of machines;
(4) allows anyone under the age of twenty-one to receive winnings as a result of playing machines;
(5) operates machines between the hours of two o'clock Sunday morning and six o'clock a.m. Monday morning;
(6) violates valid local zoning ordinances;
(7) is 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 a house of worship;
(8) allows the operation of a machine, as defined in this chapter, which accepts for the playing of games anything of value other than coin or cash, including, but not limited to, credit cards, debit cards, or stored value cards;
(9) accepts a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(10) requires a minimum amount of credits below which a cash payout will not be paid for a valid winnings ticket; or
(11) allows a loan or extension of credit 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. A machine owner or operator or any other person shall not at the location of the licensed establishment:
(a) engage in business as a Level I or Level II check cashing service, as defined in Section 34-41-10;
(b) engage in business as a deferred presentment service, as defined in Section 34-39-120;
(c) make restricted loans, as defined in Section 37-3-501(3);
(d) make supervised loans, as defined in Section 37-3-501(1); or
(e) make loans on the security of a motor vehicle certificate of title.
(B) The distances in this article shall be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the location in (A)(7).
(C) The distance requirements set forth in this section do not apply to establishments which operated or allowed the operation of machines for which licenses were issued before May 30, 1993, provided the establishment is operated by the same person who held the license on July 1, 1999.
(D) 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 this section, or any provision of a regulation pertaining to this section.
(F) Any establishment violating a provision of this section or any provision of a regulation pertaining to this section 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) The department, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.
(H) 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 12-22-805. (A) No person may offer or allow to be offered any inducement to a person for the playing of machines. An `inducement' is defined to be anything of value, whether tangible or
(B) Subject to the limitations of (A), a licensed establishment or other person licensed pursuant to Section 12-22-300(A) or any employee or agent of the licensee, may not offer any inducement unless the offeror is able to prove in writing to the department that the inducement is offered to all patrons, not directed toward players, and is part of the normal practices of similar business activities in the State, such as reduced beverage or food prices during specific periods of the day that are limited in duration. The department may approve an inducement valued at not more than one dollar per item so long as the test provided in this subsection is met. No inducement may be offered without prior written approval of the department.
Section 12-22-810. (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 place any misleading or deceptive language on the green square.
(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 or other advertising in existence on the date of enactment are not subject to the provisions of this section until January 1, 2000, provided notice is given to the department as required in Section 12-33-820. Signs affixed to a building or affixed to real estate on the same lot as the licensed establishment in existence on the date of enactment are not subject to the provisions of this section until January 1, 2002,
(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 12-22-815. (A)(1) 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. The department may disapprove a licensure application if a new establishment is closer than one hundred feet from 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. 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.
(2) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino, casino-style gaming operations, video gaming mall, or combination of 'single place or premises' as that term was applied in Regulation 117-190. 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 such 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.
(3) 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.
(4) Licenses denied under this section are subject to review under Section 12-60-1310.
(B)(1) No entity or entities of whatever description or kind which, prior to May 31, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term prior to May 31, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(2) After June 30, 1999, entities as described in item (1) of this subsection shall be permitted to re-apply for and may be granted renewal of a license 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, entities as described in item (1) of this subsection may continue to operate within a county if the county governing body, prior to July 1, 2004, adopts an ordinance authorizing the operation of such entities.
(b) If a county governing body adopts an ordinance as described in subitem (a), the revenue derived from the tax imposed pursuant to Section 12-22-1100 on entities described in this subsection shall be remitted by the State Treasurer to the county.
(c) An ordinance adopted pursuant to this item may not authorize the operation of an entity described in item (1) of this subsection if the entity was not in operation on May 31, 1999.
(C) All establishments which conducted business as a casino or otherwise within a structure which prior to May 31, 1999, contained more than one 'single place or premises' in accordance with department Regulation 117-190 must:
(1) on or before July 31, 1999, 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 and establishment licenses currently issued for the structure and return the establishment
(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 subitem (6);
(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;
(5) on or before July 31, 1999, 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 provisions 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 12-22-820. (A) Any person who would otherwise be subject to the restrictions of Section 12-22-800 but who seeks to use the provisions of Section 12-22-810(G) or 12-22-815(B), must, on or before September 1, 1999:
(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 Section 12-22-810(G) or 12-22-815(B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.
Illegal Devices and Acts
Section 12-22-900. (A) 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, 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
(B) Any person violating the provisions of this section shall be tried before the magistrate and 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 12-22-905. (A) Any machine, board, or other device prohibited by Section 12-22-900 must be seized by any law enforcement officer of the law and at the option of the magistrate taken before any magistrate of the county in which the machine, board, or device is seized who may examine it, take testimony, and, if satisfied that it is in violation of Section 12-22-900 or any other law of this State, direct that it be immediately destroyed.
(B) Coin-operated machines or devices licensed pursuant to Section 12-22-320 are not subject to confiscation under this section due to any violation of Sections 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-910. (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 shall be tried before the magistrate and 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 12-22-915. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the contents of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin 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 12-22-920. 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.
Section 12-22-925. 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, device, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the department. If the violation under this section relates to a machine included in Section 12-22-320(A)(3), the applicable penalty amount is two thousand five hundred dollars. This penalty must be deposited in the same manner as other monies collected pursuant to this chapter.
Section 12-22-930. (A) 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.
(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
Section 12-22-935. It is unlawful to tamper with a machine with intent to interfere with its proper operation. A person who violates this section is guilty of a felony and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars, or both.
Section 12-22-940. Skimming of machine proceeds is the intentional excluding or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.
Section 12-22-945. A person who, with intent to manipulate the outcome, payoff, or operation of a machine by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both.
Section 12-22-950. 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.
Taxation
Section 12-22-1100. (A) In addition to any license fees, there is imposed on the machine owner for each machine licensed included in Section 12-22-320(A)(3), a tax of twenty percent (20%) of the gross profits.
(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,
(C) 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 sum of all gross profits 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.
(D) The tax imposed by this section is effective beginning on the first day of the first month following enactment.
(E) Revenues derived from the tax imposed in this section must be credited as provided in Section 12-22-1110.
(F) All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.
(G) 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 12-22-1105. (A) For any person owing twenty thousand dollars or more in connection with any return or reporting period, the tax imposed by this chapter shall be paid to the department through electronic transfer of funds.
(B) The taxpayer shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due. The taxpayer shall provide the department with thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds. The taxpayer shall maintain a balance in the account sufficient to cover the amount of the tax on the due dates. The failure to maintain an adequate balance authorizes the department to find the tax in jeopardy and to disable all machines licensed to that taxpayer. Appeals from a jeopardy assessment shall be governed by Title 12, Chapter 60.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter.
(D) 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. 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
(E) A licensed establishment may refund a patron's money when the machine malfunctions and 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 winnings ticket; and, in such event shall 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 Title 12, Chapter 60, 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 12-22-1110. (A)(1) All revenue derived from the tax imposed pursuant to Section 12-22-1100, 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 January 31, 2001. In addition to funds appropriated for the purposes provided in items (2) and (3) of this subsection, after January 31, 2001, funds may be appropriated from the fund for the following purposes:
(a) fifty percent must be used for education initiatives;
(b) twenty-five percent must be used for economic development initiatives and priority must be given to the sixteen counties deemed to be the least developed counties among the counties designated as least developed pursuant to Section 12-6-3360; and
(c) twenty-five percent must be used for tax relief.
(2) From the tax imposed pursuant to Section 12-22-1100, three million dollars is annually appropriated to the division which must be used exclusively for administration and enforcement of the provisions of this chapter.
(3) Four million dollars is annually appropriated to the Department of Alcohol and Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the dollars allocated by this item shall provide local gambling addiction services in each county. Distribution of the dollars to each local county office for gambling addiction treatment shall be made in accordance with the following formula:
(a) one-half of the funds, based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December 31 of the preceding year; and
(b) one-half of the funds, based on the ratio of the population of each county to the total population of the State.
(B) Of the fee imposed pursuant to Section 12-22-320(A)(3), the department may retain up to four hundred dollars per license fee to be used exclusively for administration and enforcement of this chapter.
Section 12-22-1120. 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, social security number, and information regarding any refunds to players.
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.
Miscellaneous
Section 12-22-1300. (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 included in Section 12-22-320(A)(3) in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-320(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 included in Section 12-22-320(A)(3) 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 12-22-320(A) for the equivalent license period.
Section 12-22-1305. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a tax so levied exceed one-half of the amount levied by the State before March 28, 1956."
SECTION 11. The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 17. All proceedings pending and all rights and liabilities existing, acquired, or accrued relating to the application of Articles 19 and 20, Chapter 21, Title 12 at the time of this act takes effect are saved. 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.
SECTION 12. 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 13. 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 12-22-320 and 12-22-325 12-21-2720
SECTION 14. 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 wilfully places a machine on location, or who wilfully 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 15. Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:
"Section 32-1-60. The provisions of Sections 32-1-10, 32-1-20, and 32-1-30 do not apply to losses arising from the play of machines licensed pursuant to included in Section 12-22-320 (A)(3)."
SECTION 16. 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 17. (A) The provisions of Chapter 22 of Title 12 as added by this act apply to any and all licenses to be issued on or after July 1, 1999.
(B)(1) By August 31, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2000, and who is located in a county described in Section 12-22-345(D)(1) or 12-22-345(D)(2) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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
(2)(a) Upon a favorable licensing determination, the department shall issue a new license with an expiration date established in accordance with the provisions of Section 12-22-345(D)(1) and 12-22-345(D)(2).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on February 28, 2002, or May 31, 2002, as applicable. If the license is issued for a period ending in an odd-numbered year, the initial license period for the new license shall expire on February 28, 2001, or May 31, 2001, as applicable.
(c) 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 toward 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.
(C)(1) By November 30, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2001, and who is located in a county described in Section 12-22-345(D)(3) or 12-22-345(D)(4) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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 established in accordance with the provisions of Section 12-22-345(D)(3) and 12-22-345(D)(4).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on August 31, 2002, or November 30, 2002, as applicable. If the license is issued for a period ending in an odd-numbered year, the initial license period for the new license shall expire on August 31, 2001, or November 30, 2001, as applicable.
(c) The license fees shall be prorated based upon the expiration date for the new license and any unused portion of the
(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 August 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 June 30, 1999, shall apply for a machine operator's license issued pursuant to the provisions of Chapter 22, Title 12.
(E) By August 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 June 30, 1999.
(F) A machine license issued pursuant to Section 12-22-21-2720(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.
SECTION 18. Gambling activities prohibited by statutory laws and by the Constitution of this State are prohibited on vessels where voyages begin and end in waters of this State, consistent with the standards specified in 15 U.S.C. 1175, commonly referred to as the Johnson Act. Except as otherwise provided herein, this act prohibits gambling activities on so-called "cruises to nowhere".
SECTION 19. Chapter 19 of Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1) `Vessel' means a boat, ship, casino boat, watercraft, or barge kept, operated, or maintained for the purpose of gambling, with one or more gaming establishments aboard, that carries or operates gambling devices for the use of its passengers or otherwise provides facilities for the purpose of gambling, whether within or without the jurisdiction of this State, and whether it is anchored, berthed, lying to, or navigating and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.
(2) `Gambling' or `gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker or black jack machines, keeno, roulette, craps, or any other
(B) Except as provided in Section 22, it is unlawful for any person to repair or use any gambling device on a vessel that is on a voyage or segment of a voyage if:
(1) the voyage or segment begins and ends in this State; and
(2) during which the vessel does not make an intervening stop within the boundaries of another state or possession of the United States or a foreign country.
(C) The following voyages and segments are lawful if the voyage or segment includes or consists of a segment:
(1) that begins and ends in this State;
(2) that is part of a voyage to another state or possession of the United States or to a foreign country; and
(3) in which the vessel reaches the other state or foreign country within three days after leaving the state in which the segment begins."
SECTION 20. A violation of 16-19-170 is not a criminal offense, but is a violation for which a civil penalty, not to exceed twenty-five thousand dollars for each violation, may be imposed by the Department of Revenue.
SECTION 21. The provisions of this act do not apply to (1) a commercial passenger vessel which has dining facilities and sleeping or stateroom accommodations for every passenger and whose voyage extends for a period in excess of twelve hours or (2) a commercial passenger vessel which operates in international waters conducting general cruise business from ports outside the State and which sails during a twelve-month period to other ports outside the State or to another country.
SECTION 22. (A) Notwithstanding the provisions of Section 16-19-170: (1) the governing body of a coastal county by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the unincorporated area of the county; and (2) the governing body of a municipality by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the municipality.
(B) Except as provided in subsection (C), the county election commission or the municipal election commission, as appropriate, shall place the question contained in this subsection on the general election ballot in November 2000 in a coastal county in which the county governing body or the municipal governing body, as appropriate, has suspended application of the gambling prohibition provided for in
The question put before the voters shall read:
"Shall the prohibition against gambling, however described, on a vessel that embarks and disembarks within South Carolina be reinstated in __________municipality/county?
No [ ]
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'."
(C) In lieu of the referendum held at the time of the general election, but otherwise subject to the requirements of subsection (B), a referendum may be held at a date to be determined by the local governing body.
(D) For purposes of this section, a "coastal county" means Beaufort, Berkeley, Charleston, Colleton, Horry, Jasper, or Georgetown county.
SECTION 23. Nothing in this act shall be construed to repeal or modify any other provision of law relating to gambling. This section does not repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3).
SECTION 24. The General Assembly recognizes that certain "cruises to nowhere" are lawful by virtue of the application of 15 U.S.C. 1175. However, effective November 15, 2000, nothing in this act prohibits or otherwise limits a county or city by ordinance, from setting vessel weight restrictions and docking restrictions as long as these restrictions are reasonably and rationally related to public safety, navigation safety, depth of water, the preservation of historical areas, or general planning considerations pursuant to Chapter 7 of Title 6.
SECTION 25. 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
SECTION 26. Upon approval by the Governor, this act shall take effect in the following manner:
(a) Parts VI and VII take effect upon approval by the Governor;
(b) Parts I and IV take effect July 1, 1999;
(c) Part II takes effect December 31, 2000, only if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "No" . If Part II of this act takes effect, the South Carolina Department of Revenue, upon application, shall issue pro rata refunds of license fees on machines licensed pursuant to Section 12-21-2720(A)(3) or a machine described in Section 12-22-320(A)(3) as of December 31, 2000;
(d) Part III takes effect July 1, 1999, but the department and the division are directed to take all necessary steps to implement the provisions on the effective date. Part III is repealed December 31, 2000, if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "No";
(e) Part V takes effect upon approval by the Governor, such that so called "cruises to nowhere", except as authorized herein, are unlawful pursuant to Section 16-19-170(B) upon the effective date of this section and cannot be made unlawful under SECTION 22 until the results of the referendum are certified to the Secretary of State. /
Renumber sections to conform.
Amend title to conform.
Senator MOORE explained the amendment.
Senator MOORE moved that the amendment be adopted.
Senators HAYES and MARTIN argued contra to the adoption of the amendment.
Senator PASSAILAIGUE argued in favor of the adoption of the amendment.
Senator MOORE spoke on the amendment.
Senator GREGORY argued contra to the adoption of the amendment.
Senator HAYES moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Bryan Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
Alexander Bauer Branton Cork Courson Courtney Elliott Ford Glover Holland Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The Senate refused to table the amendment.
The question then was the adoption of the amendment.
The amendment was adopted.
Senator MOORE proposed the following Amendment No. PP7A (3002R035.TLM), which was ruled out of order:
Amend the amendment, as and if amended, by striking Amendment #P-7A in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:
SECTION 1. (A) A statewide referendum must be conducted at the time of the general election in 2000 to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission must place the exact question contained in subsection (B) of this section 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.
(B) The question put before the qualified electors in the referendum shall read:
"Shall cash payoffs for credits earned on video game machines continue to be allowed after December 31, 2000?
No [ ]
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'."
SECTION 2. 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
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 3. 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 4. (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 5. 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 6. Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (g) which reads:
"(g) 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 16-19-40 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
SECTION 8. 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 9. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 10. Title 12 of the 1976 Code is amended by adding:
Article 1
General
Section 12-22-100. As used in this chapter, unless the context indicates otherwise:
(1) `Director' means the director of the department.
(2) `Chief' means the chief of the 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 5 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 winnings 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) `Gross profits' means the amount of money that goes into the machine less winnings.
(13) `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, or as defined in Section 12-22-320(A), in which the player may receive free games or credits that are redeemed for cash
(14) `Machine owner' means any person, other than a distributor, who owns one or more machines.
(15) `Machine operator' means any person who owns, operates, or manages an establishment with one or more machines.
(16) `Manufacturer' means any person that manufactures, assembles, or programs machines or controllers for sale or use in this State.
(17) `Player' means a person who participates in the playing of a machine.
(18) `Principal' means every person; association; all partners of a partnership, limited partnership, or limited liability partnership; all members of a limited liability company; trust and its beneficiaries; 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 other entity who 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. '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 12-22-300 held by the applicant.
(19) `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.
(20) `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.
(21) `Winnings' means the amount printed on a validated ticket from a licensed machine that must, subject to the limitations imposed by this chapter, be paid to a player.
Section 12-22-110. (A) Unless specifically granted to the division, the department has all powers necessary and proper to fully and effectively execute the provisions of this chapter including, but not limited to, the power:
(1) notwithstanding Section 12-54-240, to enter into agreements with any department, agency, or instrumentality of the United States or this State for the purpose of regulating persons or entities licensed under this chapter and controlling coin-operated devices or machines and to enforce the provisions of this chapter and may disclose information to the division and to other governmental entities in and outside South Carolina;
(2) to investigate applicants for any license authorized to be issued under this chapter and to determine the eligibility of applicants for licenses;
(3) to exercise jurisdiction over and to supervise all machines or coin-operated devices;
(4) to inspect and conduct investigations by entering the offices, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with the provisions of this chapter is likely to be found and to be present through its inspectors and agents any time gaming operations are conducted for the purpose of certifying the revenue thereof, receive and conduct investigations regarding complaints from the public, and conduct other investigations into the conduct of the games and the operation and maintenance of machines;
(5) to review any licenses issued under the provisions of this chapter and to investigate alleged violations of this chapter and to take appropriate disciplinary action against any licensee including the imposition of penalties for a violation, disabling of machines, suspension of licenses, or revocation of licenses, or the institution of appropriate legal action for enforcement;
(6) to require that the records of any 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;
(7) to require of applicants and their principals 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;
(8) to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;
(9) to issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents in accordance with Chapter 4 of Title 12, to administer oaths and affirmations to witnesses, and receive and weigh testimony;
(10) 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;
(11) to issue, deny the issuance of, suspend, or revoke any license authorized by this chapter, so long as the department's action is in compliance with the provisions of this Chapter 60 of Title 12;
(12) to suspend any license authorized by this chapter without notice or hearing upon a determination that a licensee is wilfully 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;
(13) 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;
(14) to establish hours of operation for enrollment and support of machines connected to the central computer monitoring system and to charge reasonable fees for services provided outside the hours of 8:30 a.m. to 5:00 p.m., Monday through Friday;
(15) to adopt regulations in accordance with the Administrative Procedures Act; and
(16) to take any other action as may be reasonable or appropriate to enforce this chapter.
Notwithstanding any provision of this Section or any other provision of law, the administration or execution of any of the powers granted to the department under this chapter may not be delegated or transferred
(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.
Section 12-22-120. 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 of a corporation, have a financial or ownership interest in a testing laboratory chosen by the department pursuant to Section 12-22-720, machine, machine owner, machine operator, manufacturer, distributor, or establishment. 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 12-22-300.
Licenses
Section 12-22-300. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, establishment, and distributor shall be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine must be licensed.
Section 12-22-310. (A) At the time provided for in Section 12-22-345, a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department biennially a license for the privilege of engaging in business. There are hereby imposed the following biennial fees for licenses required to be obtained under this chapter:
(1) manufacturer, two thousand dollars;
(2) owner, two thousand dollars;
(3) distributor, two thousand dollars; and
(4) establishment, two thousand dollars.
There is no licensing fee imposed upon a person licensed as a machine operator.
(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) Except as provided in Article 5, a license authorized in this section shall not be issued unless and until the department has completed its background investigation.
Section 12-22-315. (A) The department may issue licenses authorized under this chapter to qualifying applicants.
(B) The department may not issue a license under this chapter to an applicant unless the applicant and all principals meet the requirements of this chapter.
Section 12-22-320. (A) Every person who owns, or maintains for use, or permits the use of on a place or premises occupied by him, 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 device in South Carolina and shall pay for the license a tax of fifty dollars for each device in item (1), two hundred dollars for each device in item (2), and four thousand dollars for each machine in item (3):
(1) a device 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 device on which an admissions tax is imposed is exempt from the coin operated device license provisions of this section;
(2) a device for the playing of amusements or video games, without free play feature, or devices of the crane type operated by a slot in which is deposited a coin or thing of value and a device 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 device 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
(3) a machine of the nonpayout type, 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 devices 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) The owner or operator of any machine which is exempt by Section 16-19-60 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 Section 12-22-800(A).
(C) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this chapter.
(D) Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(E) The department shall not issue a license for the operation of a machine which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) A license for a machine included in Section 12-22-320(A)(3) shall be issued only to a person who has been licensed pursuant to Section 12-22-310 for use at a licensed establishment. No machine included in Section 12-22-320(A)(3) may be operated without a license.
(G) No machine included in Section 12-22-320(A)(3) may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.
Section 12-22-325. (A) Every person owning or operating a billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table for profit shall apply for and procure from the department a license for the privilege of operating the table and pay for the license a biennial tax of fifty dollars for each table owned or operated.
(B) 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 shall see that the proper state license is attached to a permanent, nontransferable part of the device before its operation is commenced.
Section 12-22-330. (A) In addition to all other licenses required by this chapter, a person who owns devices described in Sections
(1) fifty dollars for devices in Sections 12-22-320(A)(1) and 12-22-325; and
(2) two hundred dollars for devices in Section 12-22-320(A)(2).
(B) Only one license is required pursuant to this section 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.
(C) The licenses provided by this section are subject to Section 12-22-345 and are a condition precedent to engaging in or the continuing operation of devices described in this chapter.
Section 12-22-335. Each person required to obtain a license for machines included in Section 12-22-320 (A)(3) shall maintain records showing the manufacturer's serial number, model, or type of machine and the VGMID.
Section 12-22-340. In lieu of the license required under Sections 12-22-320(A)(1) and (2), 12-22-325, and 12-22-330 the department may issue a temporary license to persons making application to operate devices defined in Sections 12-22-320 (A)(1) and (A)(2) and 12-22-335 at a recognized county or state fair. The temporary license is the total amount of license fees required on all devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-320(A)(1) and (A)(2), 12-22-325 and 12-22-330. The license is valid for the specific location designated on the license and the number of devices for which application was made and expires when the designated fair officially ends.
Section 12-22-345. (A) Every person subject to payment of tax under Sections 12-22-320 and 12-22-325, in advance of or before the first day of June every two years or before doing an act taxable under this article, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the tax levied for it. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(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
(D) Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the licensee's registered agent is located or the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. 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 Sections 12-22-310 and 12-22-330.
Background Investigations
Section 12-22-500. (A) The department shall issue the license required by Section 12-22-310 to the applicant upon a determination by the department that the applicant and each principal of the applicant is eligible for the license pursuant to the provisions of this chapter.
(B) The application must be made on forms provided by the department and the applicant and each principal of the applicant must submit any information required by this chapter. 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.
(C) 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 12-22-100(18);
(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 Section 12-22-505;
(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; and
(6) any other information deemed necessary by the department for the proper administration and enforcement of this chapter.
In the case of an application for a machine operator or establishment license:
(a) 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
(b) information that may be required by the department, such as voter registration, to prove the two-year residency requirement.
(D)(1) In addition to the information contained on the department's application form as provided in subsection (C), the applicant for a license must disclose, at the time of filing the application form, the identity and address of every principal.
(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. Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.
(E) 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.
(F) A person with a license issued pursuant to this chapter has an affirmative duty to notify the department within thirty days of any material changes in required information provided to the department including, but not limited to, current and correct disclosure of all principals.
(G) At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to Section 12-22-310.
Section 12-22-505. (A) Upon receipt of a timely and complete application for a license required by Sections 12-22-300 and 12-22-310, the department or division must begin a thorough background investigation of each applicant and each principal of the applicant.
(B) The department may request the assistance of the division in conducting the background investigation on an applicant and each principal of the applicant.
(C) The department must not issue, or must revoke, a license pursuant to Sections 12-22-300 and 12-22-310 if the person, applicant, or principal of the applicant:
(1) has been convicted within the last fifteen years of:
(a) a state or federal felony offense;
(b) a gambling offense;
(c) a criminal offense involving fraudulent activity or defined as a fraud; or
(d) a criminal offense with a sentence of not less than two years; or
(2) has had a gambling license in another jurisdiction revoked; or
(3) has intentionally or wilfully submitted an application which contains material information which is false; or
(4) the person was determined within the last fifteen years to be liable for, or agreed that he was liable for, a civil judgment based in whole or in part upon criminal conduct which carries a penalty of imprisonment for two or more years, or violations of gambling laws, or consumer fraud; or
(5) has any outstanding tax or fee liability with the department; or
(6) the applicant for a license for a machine included in Section 12-22-320(A)(3) has not been a resident of the State for two years.
(D) 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 12-22-510. 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. A person must be issued a provisional license upon receipt and review of the results of the division fingerprint review if the results show no convictions of the crimes referenced in Section 12-22-505(C)(1) for either the applicant or the principals. Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the prospective licensee a written affirmation on a form provided by the department that neither the prospective licensee nor any principal has been convicted of any crime referenced in Section 12-22-505(C)(1).
Section 12-22-515. (A) The department must be given within ten business days written notice of 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 or an establishment licensed under this chapter. 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. Anyone whose interest in the business has ended must immediately surrender to the
(B) 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 12-22-310, 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.
(C) A temporary license issued pursuant to subsection (B) 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.
Video Game Restrictions
Section 12-22-700. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine or device subject to the license imposed by this chapter by way of proof of licensing must have a current license displayed conspicuously on the front of the machine or device. 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 or device.
Section 12-22-705. Any person who owns or operates machines or devices described in Sections 12-22-320 and 12-22-325 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 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 12-22-710. (A) Every person required to obtain a license pursuant to Sections 12-22-320 and 12-22-325 shall maintain records showing, as applicable:
(1) the manufacturers' serial number;
(2) model and type of machine or device;
(3) the VGMID;
(4) the license number;
(5) the establishment's or the location's name, address, and telephone number;
(6) the machine owner;
(7) the machine operator;
(8) the date the machine entered the State;
(9) the date the machine entered the location; and
(10) the date the machine went on-line.
(B) The licensee 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.
(C) Information required by this section must be available on demand for inspection by a representative of the department. The licensee shall be provided a reasonable time in which to provide the information demanded.
Section 12-22-715. Before a machine may be connected, or remain connected, to the central computer monitoring system, the machine shall have a current and valid machine license. The machine owner and the machine operator and the establishment shall have current and valid licenses as required by this chapter.
Section 12-22-720. (A)(1) All machines, location controllers and associated modems, and computer chips, shall be verifiably of a make, model, and software version, certified by the department or a testing laboratory selected by the department before such items may be possessed, owned, operated, or allowed to operate at any place within this State.
(2) 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 subitem is guilty of a felony and upon conviction must be imprisoned for not less than one year, nor more than ten years,
(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 12-22-725. (A) Within ninety days from enactment, all machines shall meet the following standards, and machine owners 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 and:
(1) have games that are both random and which have a minimum gross payout of between ninety and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) do not operate in a misleading or deceptive manner;
(3) do not have any means of manipulation that affect the random probabilities of winning a game;
(4) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits by the use of a credit card or debit card, and to prevent the obtaining of credits without paying or by stringing, slamming, drilling, or other means;
(5) have one or more metering devices that keep a record of: all cash inserted or deposited into the machine; credits played; credits won; validated cash ticket amounts; and other information prescribed by the department and which transmit the information to a machine controller. Cash records shall include total coins and bills accepted and total credit generated by coin and bill acceptors;
(6) are accessible from the central computer monitoring system on demand by telecommunication through a machine or location controller for purposes of polling or reading device activities, the uploading of data required to be recorded and stored pursuant to Section 12-22-775 and for central computer remote enabling or disabling of machine operations;
(7) be capable of interface with a central computer monitoring system through a machine or location controller;
(8) be designed, fitted or retrofitted as may be the case necessary to establish a secure communication connection between the machine and the central computer monitoring system through a machine or location controller on or before the machine is certified to operate pursuant to this item; and
(9) meet the standards set by the department.
(B)(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 as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of subsection (A) within 150 days after enactment but no later than December 1, 1999.
(C) 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.
(D) The department is authorized to 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 limitations of this chapter, maximize competition among manufacturers.
Section 12-22-730. The department is authorized to 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 multi-player units. Applicants must meet these standards before any license may be issued.
Section 12-22-735. 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 testing 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 testing 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 testing laboratories. The department may contract with a testing laboratory to ensure and certify
Section 12-22-740. (A) Each location controller must be programmed so as to automatically 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 of not less than seventy-two hours. The machine shall be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following shall occur:
(1) A message will appear on the screen warning the player that the machine is about to be disabled and the player will be informed that one minute remains to complete the game.
(2) A count down timer will be displayed.
(3) If the player completes the game, all credits will be reported on a winnings ticket and no other games will be allowed to be played on that machine.
(4) If the player has not completed the game in the minute allotted, then the machine will complete the hand according to the manufacturer's recommended play strategy, all credits will be reported on a winnings ticket, and the machine will be disabled.
Section 12-22-745. Each machine placed in operation in the State shall 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 machine owner shall affix, the VGMID. The VGMID shall be programmed into the machine and shall serve as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-750. A machine may not be disposed of until such notice has been given to the department. An owner desiring to dispose
(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;
(8) the proposed manner, time, and place of disposal.
A machine shall be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity.
Section 12-22-755. A machine shall not simulate bingo.
Section 12-22-760. Each machine shall contain a single printing mechanism capable of printing an original ticket and retaining an exact copy. Tickets shall 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 12-22-765. All machines, location controllers, and the central computer monitoring system selected by the department shall 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 12-22-770. 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 12-22-775. (A) As part of the central computer monitoring system required under this article, each location operating machines included in Section 12-22-320 (A)(3) must install a sufficient number of approved location or machine controllers and modem or modems which meet all requirements set forth by this section and by the department. Each machine controller must be capable of receiving, storing, and transmitting to another controller and/or the department's central computer monitoring system all information received from, and
(B) In addition to the any other requirements, each controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) recognize, record and store as a separate and distinguishable entry, each occurrence of an authorized or unauthorized breach, unlocking or opening of any machine compartment or door;
(3) disable any or all machines and record and store an entry which records that the disabling was required by:
(a) an unauthorized game door opening;
(b) an unauthorized coin or currency door opening; or
(c) an attempt to tamper with or modify any location controller or modem or cabling or other form of connectivity which connects a machine to a controller or one controller to another controller.
(4) immediately notify the central computer and record and store entry when a machine is taken off-line from the location controller without prior authorization;
(5) recognize, record and store as a separate and distinguishable entry, each occurrence where machine tampering is detected. Detection of tampering occurs if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the central computer monitoring system;
(6) re-enable a machine which has been disabled and record and store an entry of this event;
(7) all entries required to be recorded and stored by any controller must include a unique identification number which identifies the machine or controller which created the record and which denotes the date and time of the creation of the entry;
(8) have secure communications established with the central computer monitoring system and periodically upload to the central computer on a basis directed by the department, all entries which have
(9) have sufficient capacity to store for a minimum of five days or for the period of time equal to the reporting period established by the department, whichever is greater, data containing all required entries created and stored in a machine or location controller. The data must be stored immediately in a manner that allows on demand, real time access by the central computer monitoring system. data stored in a machine or location controller may only be accessed by the department from the central computer monitoring system, provided that the department may, at the request of the owner or operator of the machine for a reasonable charge, make a copy of the data available in electronic or such other form as the owner or operator requests, provided further that no owner or operator may be authorized or given access to any location or machine controller;
(10) have an internal clock, which may only be set, reset or adjusted by and from the central computer;
(11) be designed and manufactured in such a manner so as to be protected from unauthorized interference or tampering by any person or external device or force, to corrupt or alter data or corrupt or suspend communication signals or the transmission of data from a machines to a controller, from a machine controller to a location controller or from a location controller to the central computer monitoring system, and this requirement extends to all associated communication devices and cabling or other forms of connectivity between the controller and the machines and communication devices;
(12) 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; and
(13) be capable of validating tickets printed by a machine.
Section 12-22-780. (A) Any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than three dollars and the payout must be limited to credits equal to nine hundred dollars. When a player earns credits equaling nine hundred dollars, the machine must: temporarily disable that player or player station, immediately report on a winnings ticket payable to that player or player station, the machine must reset to zero or `game over' and that player or another player at that player station may not continue to play until more cash or coin is deposited into the machine. The machine must be programmed so that other players of a multi-
(B) Notwithstanding any other provision of law, at the time the player presents a winnings ticket to the machine operator or his agent for a cash payout, the machine operator or his agent shall require the person presenting the winnings ticket to write or otherwise have placed on the winnings ticket the person's name, address, and telephone number. Upon the provision of the winnings 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 winnings 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.
(C) Any person offering money, prize, bonus or anything of for winning credits above what is printed on a winnings 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.
(D) A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of suspension or revocation of the establishment, operator, or owner license and may be fined an amount not to exceed one thousand dollars per violation.
Section 12-22-785. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) the establishment license at the establishment where the machines are located has been revoked;
(2) the license of the machine has been revoked;
(3) the machine owner's license has been revoked;
(4) the machine operator's license has been revoked;
(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;
(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) subsection (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 12-22-790. (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 a 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 12-22-793. A person who knowingly possesses, owns, operates, or allows the operation, of a contraband machine, contraband
Section 12-22-795. (A) Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided by Sections 12-22-935, 12-22-940, and 12-22-945 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.
(B) A licensed establishment shall have posted and visible to the public at least one sign with the following words printed thereon:
(1) 'A person shall be twenty-one years of age to receive winnings 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) `Violations are subject to civil and criminal penalties.'
(7) `Violations may be reported to S.C. State Law Enforcement Division or your local law enforcement agency.'
(C) The sign required by subsection (B) shall be visible and readable by the person playing the machine. Each letter on the sign shall be a minimum of two inches high.
Section 12-22-800. (A) A licensed establishment or a machine operator may not engage in any of the conduct specified in subsection (B). If a violation of subsection (B) has occurred, the department shall refuse to issue or may revoke or immediately suspend a license for an establishment or to a machine operator who has engaged in such conduct.
(B) A machine operator or licensed establishment is engaged in unlawful conduct if it:
(1) maintains, possesses, or otherwise allows on its premises more than five machines, except as provided in Section 12-22-815;
(2) advertises, or allows advertising, in any manner for the playing of the machines except as provided in Section 12-22-810;
(3) offers or allows to be offered any inducement as prohibited in Section 12-22-805 to a person to play machines or for the playing of machines;
(4) allows anyone under the age of twenty-one to receive winnings as a result of playing machines;
(5) operates machines between the hours of two o'clock Sunday morning and six o'clock a.m. Monday morning;
(6) violates valid local zoning ordinances;
(7) is 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;
(8) allows the operation of a machine, as defined in this chapter, which accepts for the playing of games any thing of value other than coin or cash, including, but not limited to, credit cards, debit cards, or stored value cards;
(9) accepts a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(10) requires a minimum amount of credits below which a cash payout will not be paid for a valid winning ticket; or
(11) allows a loan or extension of credit 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. A machine owner or operator or any other person shall not at the location of the licensed establishment:
(a) engage in business as a Level I or Level II check cashing service, as defined in Section 34-41-10;
(b) engage in business as a deferred presentment service, as defined in Section 34-39-120;
(c) make restricted loans, as defined in Section 37-3-501(3);
(d) make supervised loans, as defined in Section 37-3-501(1); or
(e) make loans on the security of a motor vehicle certificate of title.
(B) The distances in this article shall be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the location in (A)(7).
(C) The distance requirements set forth in this section do not apply to establishments which operated or allowed the operation of machines for which licenses were issued before May 30, 1993, provided the
(D) 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 this section, or any provision of a regulation pertaining to this section.
(F) Any establishment violating a provision of this section or any provision of a regulation pertaining to this section 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) The department, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.
(H) 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 12-22-805. (A) No person may offer or allow to be offered any inducement to a person for the playing of machines. An `inducement' is defined to be anything of value, whether tangible or intangible, or any benefit, having a monetary value in excess of one dollar except the amount printed on a valid winnings ticket.
(B) Subject to the limitations of (A), a licensed establishment or other person licensed pursuant to Section 12-22-300(A) or any employee or agent of the licensee, may not offer any inducement unless the offeror is able to prove in writing to the department that the inducement is offered to all patrons, not directed toward players, and is part of the normal practices of similar business activities in the State, such as reduced beverage or food prices during specific periods of the
Section 12-22-810. (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 place any misleading or deceptive language on the green square.
(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 or other advertising in existence on the date of enactment are not subject to the provisions of this section until January 1, 2000, provided notice is given to the department as required in Section 12-33-820. Signs affixed to a building or affixed to real estate on the same lot as the licensed establishment in existence on the date of enactment are not subject to the provisions of this section until January 1, 2002, provided notice is given to the department as required in Section 12-33-820.
(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 12-22-815. (A)(1) 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
(2) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino, casino-style gaming operations, video gaming mall, or combination of 'single place or premises' as that term was applied in Regulation 117-190. 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 such 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.
(3) 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.
(4) Licenses denied under this section are subject to review under Section 12-60-1310.
(B)(1) No entity or entities of whatever description or kind which, prior to May 31, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term prior to May 31, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(2) After June 30, 1999, entities as described in item (1) of this subsection shall be permitted to re-apply for and may be granted renewal of a license 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, entities as described in item (1) of this subsection this subsection may continue to operate within a county if the county governing body, prior to July 1, 2004, adopts an ordinance authorizing the operation of such entities.
(b) If a county governing body adopts an ordinance as described in subitem (a), the revenue derived from the tax imposed pursuant to Section 12-22-1100 on entities described in this subsection shall be remitted by the State Treasurer to the county.
(c) An ordinance adopted pursuant to this item may not authorize the operation of an entity described in item (1) of this subsection if the entity was not in operation on May 31, 1999.
(C) All establishments which conducted business as a casino or otherwise within a structure which prior to May 31, 1999, contained more than one 'single place or premises' in accordance with department Regulation 117-190 must:
(1) on or before July 31, 1999, 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 and establishment licenses currently issued for the structure and return the establishment licenses 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 (6);
(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
(5) on or before July 31, 1999, 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 provisions 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 12-22-820. (A) Any person who would otherwise be subject to the restrictions of Section 12-22-800 but who seeks to use the provisions of Section 12-22-810(G) or 12-22-815(B), must, on or before September 1, 1999:
(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 Section 12-22-810(G) or 12-22-815(B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.
Illegal Devices and Acts
Section 12-22-900. (A) 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, 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 any video game with a free play feature which meet the technical requirements provided for in Section 12-22-725 and Section 12-22-775, 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 shall be tried before the magistrate and 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 12-22-905. (A) Any machine, board, or other device prohibited by Section 12-22-900 must be seized by any law enforcement officer of the law and at the option of the magistrate taken before any magistrate of the county in which the machine, board, or device is seized who may examine it, take testimony, and if satisfied that it is in violation of Section 12-22-900 or any other law of this State, direct that it be immediately destroyed.
(B) Coin-operated machines or devices licensed pursuant to Section 12-22-320 are not subject to confiscation under this section due to any violation of Sections 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-910. (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 shall be tried before the magistrate and 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 12-22-915. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the contents of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or
Section 12-22-920. 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.
Section 12-22-925. 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, device, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the department. If the violation under this section relates to a machine included in Section 12-22-320(A)(3), the applicable penalty amount is two thousand five hundred dollars. This penalty must be deposited in the same manner as other monies collected pursuant to this chapter.
Section 12-22-930. (A) 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.
(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 12-22-935. It is unlawful to tamper with a machine with intent to interfere with its proper operation. A person who violates this section is guilty of a felony and, upon conviction, must be imprisoned
Section 12-22-940. Skimming of machine proceeds is the intentional excluding or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.
Section 12-22-945. A person who, with intent to manipulate the outcome, payoff, or operation of a machine by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both.
Section 12-22-950. 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.
Taxation
Section 12-22-1100. (A) In addition to any license fees, there is imposed on the machine owner for each machine licensed included in Section 12-22-320(A)(3), a tax of twenty percent (20%) of the gross profits.
(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) 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 sum of all gross profits 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.
(D) The tax imposed by this section is effective beginning on the first day of the first month following enactment.
(E) Revenues derived from the tax imposed in this section must be credited as provided in Section 12-22-1110.
(F) All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.
(G) 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 12-22-1105. (A) For any person owing twenty thousand dollars or more in connection with any return or reporting period, the tax imposed by this chapter shall be paid to the department through electronic transfer of funds.
(B) The taxpayer shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due. The taxpayer shall provide the department with thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds. The taxpayer shall maintain a balance in the account sufficient to cover the amount of the tax on the due dates. The failure to maintain an adequate balance authorizes the department to find the tax in jeopardy and to disable all machines licensed to that taxpayer. Appeals from a jeopardy assessment shall be governed by Title 12, Chapter 60.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter.
(D) 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. 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.
(E) A licensed establishment may refund a patron's money when the machine malfunctions and 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 winnings ticket; and in such event shall 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
Section 12-22-1110. (A)(1) All revenue derived from the tax imposed pursuant to Section 12-22-1100, 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 January 31, 2001. In addition to funds appropriated for the purposes provided in items (2) and (3) of this subsection, after January 31, 2001, funds may be appropriated from the fund for the following purposes:
(a) fifty percent must be used for education initiatives;
(b) twenty-five percent must be used for economic development initiatives and priority must be given to the sixteen counties deemed to be the least developed counties among the counties designated as least developed pursuant to Section 12-6-3360; and
(c) twenty-five percent must be used for tax relief.
(2) From the tax imposed pursuant to Section 12-22-1100, three million dollars is annually appropriated to the division which must be used exclusively for administration and enforcement of the provisions of this chapter.
(3) Four million dollars is annually appropriated to the Department of Alcohol and Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the dollars allocated by this item shall provide local gambling addiction services in each county. Distribution of the dollars to each local county office for gambling addiction treatment shall be made in accordance with the following formula:
(a) one-half of the funds, based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December 31 of the preceding year; and
(b) one-half of the funds, based on the ratio of the population of each county to the total population of the State.
(B) Of the fee imposed pursuant to Section 12-22-320(A)(3), the department may retain up to four hundred dollars per license fee to be used exclusively for administration and enforcement of this chapter.
Section 12-22-1120. 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, social security number, and information regarding any refunds to players.
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.
Miscellaneous
Section 12-22-1300. (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 included in Section 12-22-320(A)(3) in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-320(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 included in Section 12-22-320(A)(3) 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 12-22-320(A) for the equivalent license period.
Section 12-22-1305. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a
SECTION 11. The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 17. All proceedings pending and all rights and liabilities existing, acquired, or accrued relating to the application of Articles 19 and 20, Chapter 21, Title 12 at the time of this act takes effect are saved. 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.
SECTION 12. 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 13. 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 12-22-320 and 12-22-325 12-21-2720 and 12-21-2730, the penalty is fifty two hundred dollars for each failure to comply."
SECTION 14. 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
SECTION 15. Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:
"Section 32-1-60. The provisions of Sections 32-1-10, 32-1-20, and 32-1-30 do not apply to losses arising from the play of machines licensed pursuant to included in Section 12-22-320 (A)(3)."
SECTION 16. Sub-item (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 17. (A) The provisions of Chapter 22 of Title 12 as added by this act apply to any and all licenses to be issued on or after July 1, 1999.
(B)(1) By August 31, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2000, and who is located in a county described in Section 12-22-345(D)(1) or 12-22-345(D)(2) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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 established in accordance with the provisions of Section 12-22-345(D)(1) and 12-22-345(D)(2).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on February 28, 2002 or May 31, 2002, as applicable. If the
(c) 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.
(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.
(C)(1) By November 30, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2001, and who is located in a county described in Section 12-22-345(D)(3) or 12-22-345(D)(4) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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 established in accordance with the provisions of Section 12-22-345(D)(3) and 12-22-345(D)(4).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on August 31, 2002 or November 30, 2002, as applicable. If the license is issued for a period ending in an odd-numbered year, the initial license period for the new license shall expire on August 31, 2001 or November 30, 2001, as applicable.
(c) 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 August 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 June 30, 1999, shall apply
(E) By August 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 June 30, 1999.
(F) A machine license issued pursuant to Section 12-22-21-2720(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.
SECTION 18. Gambling activities prohibited by statutory laws and by the Constitution of this State are prohibited on vessels where voyages begin and end in waters of this State, consistent with the standards specified in 15 U.S.C. 1175, commonly referred to as the Johnson Act. Except as otherwise provided herein, this act prohibits gambling activities on so-called "cruises to nowhere".
SECTION 19. Chapter 19 of Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1) `Vessel' means a boat, ship, casino boat, watercraft, or barge kept, operated, or maintained for the purpose of gambling, with one or more gaming establishments aboard, that carries or operates gambling devices for the use of its passengers or otherwise provides facilities for the purpose of gambling, whether within or without the jurisdiction of this State, and whether it is anchored, berthed, lying to, or navigating and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.
(2) `Gambling' or `gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker or black jack machines, keeno, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.
(B) Except as provided in Section 22, it is unlawful for any person to repair or use any gambling device on a vessel that is on a voyage or segment of a voyage if:
(1) the voyage or segment begins and ends in this State; and
(2) during which the vessel does not make an intervening stop within the boundaries of another state or possession of the United States or a foreign country.
(C) The following voyages and segments are lawful if the voyage or segment includes or consists of a segment:
(1) that begins and ends in this State;
(2) that is part of a voyage to another state or possession of the United States or to a foreign country; and
(3) in which the vessel reaches the other state or foreign country within three days after leaving the state in which the segment begins."
SECTION 20. A violation of 16-19-170 is not a criminal offense, but is a violation for which a civil penalty, not to exceed twenty-five thousand dollars for each violation, may be imposed by the Department of Revenue.
SECTION 21. The provisions of this act do not apply to (1) a commercial passenger vessel which has dining facilities and sleeping or stateroom accommodations for every passenger and whose voyage extends for a period in excess of twelve hours or (2) a commercial passenger vessel which operates in international waters conducting general cruise business from ports outside the State and which sails during a twelve month period to other ports outside the State or to another country.
SECTION 22. (A) Notwithstanding the provisions of Section 16-19-170: (1) the governing body of a coastal county by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the unincorporated area of the county; and (2) the governing body of a municipality by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the municipality.
(B) Except as provided in subsection (C), the county election commission or the municipal election commission, as appropriate, shall place the question contained in this subsection on the general election ballot in November 2000 in a coastal county in which the county governing body or the municipal governing body, as appropriate, has suspended application of the gambling prohibition provided for in Section 16-19-170 by ordinance within ninety days before the 2000 general election. The state election laws 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. If the result of a referendum is in favor of reinstating the gambling prohibition within the county or municipality, Section 16-19-170 applies in that county or municipality after the result of the referendum is certified to the Secretary of State.
The question put before the voters shall read:
"Shall the prohibition against gambling, however described, on a vessel that embarks and disembarks within South Carolina be reinstated in __________municipality/county?
No [ ]
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'."
(C) In lieu of the referendum held at the time of the general election, but otherwise subject to the requirements of subsection (B), a referendum may be held at a date to be determined by the local governing body.
(D) For purposes of this section, a "coastal county" means Beaufort, Berkeley, Charleston, Colleton, Horry, Jasper, or Georgetown county.
SECTION 23. Nothing in this act shall be construed to repeal or modify any other provision of law relating to gambling. This section does not repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3).
SECTION 24. The General Assembly recognizes that certain "cruises to nowhere" are lawful by virtue of the application of 15 U.S.C. 1175. However, effective November 15, 2000, nothing in this act prohibits or otherwise limits a county or city by ordinance, from setting vessel weight restrictions and docking restrictions as long as these restrictions are reasonably and rationally related to public safety, navigation safety, depth of water, the preservation of historical areas, or general planning considerations pursuant to Chapter 7 of Title 6.
SECTION 25. 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 26. Upon approval by the Governor, this act shall take effect in the following manner:
(a) Parts VI and VII take effect upon approval by the Governor;
(b) Parts I and IV take effect July 1, 1999;
(c) Part II takes effect December 31, 2000, only if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "no" . If Part II of this act takes effect, the South Carolina Department of Revenue, upon application, shall issue pro rata refunds of license fees on machines licensed pursuant to Section 12-21-2720(A)(3) or a machine described in Section 12-22-320(A)(3) as of December 31, 2000;
(d) Part III takes effect July 1, 1999, but the Department and the Division are directed to take all necessary steps to implement the provisions on the effective date. Part III is repealed December 31, 2000, if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "no";
(e) Part V takes effect upon approval by the Governor, such that so called "cruises to nowhere", except as authorized herein, are unlawful pursuant to Section 16-19-170(B) upon the effective date of this section and cannot be made unlawful under SECTION 22 until the results of the referendum are certified to the Secretary of State. /
Renumber sections to conform.
Amend title to conform.
Senator MOORE explained the amendment.
Senator HAYES raised a Point of Order that the amendment was out of order inasmuch as it is an amendment to the third degree.
The PRESIDENT sustained the Point of Order.
The amendment was ruled out of order.
Senators RYBERG, FAIR, MARTIN, GROOMS, LEATHERMAN, WILSON, HAYES, GREGORY proposed the following Amendment No. P7A (GGS\22324SD99), which was ruled out of order:
Amend the Report of the Committee on Judiciary, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION __. A. 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."
B. 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."
C. (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."
D. 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."
E. Section 12-54-40 of the 1976 Code, as last amended by Act 387 of 1998, 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
F. 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."
G. 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."
H. Notwithstanding any other provision of law, any license required for the use of a video game with a free play feature described in Section 12-21-2720(A)(3) of the 1976 Code issued for a license period beginning after May 31, 1999, is valid only through May 31, 2000, and the fee for this license is four thousand dollars.
I. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
J. Subsection H of this act takes effect upon approval by the Governor. The remaining provisions take effect June 1, 2000. /
Renumber sections to conform.
Amend title to conform.
Senator McCONNELL raised a Point of Order that the amendment was out of order inasmuch as it is an amendment to the third degree.
Senator HAYES spoke on the Point of Order.
The PRESIDENT sustained the Point of Order.
The amendment was ruled out of order.
The Committee on Judiciary proposed the following amendment (JUD3002.003), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/ SECTION 1. Gambling activities prohibited by statutory laws and by the Constitution of this State are prohibited on vessels where voyages begin and end in waters of this State, consistent with the standards specified in 15 U.S.C. 1175, commonly referred to as the Johnson Act. Except as otherwise provided herein, this act prohibits gambling activities on so-called "cruises to nowhere".
SECTION 2. Chapter 19 of Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1) `Vessel' means a boat, ship, casino boat, watercraft, or barge kept, operated, or maintained for the purpose of gambling, with one or more gaming establishments aboard, that carries or operates gambling devices for the use of its passengers or otherwise provides facilities for the purpose of gambling, whether within or without the jurisdiction of this State, and whether it is anchored, berthed, lying to, or navigating and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.
(2) `Gambling' or `gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker or black jack machines, keeno, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.
(B) Except as provided in Section 3, it is unlawful for any person to repair or use any gambling device on a vessel that is on a voyage or segment of a voyage if:
(1) the voyage or segment begins and ends in this State; and
(2) during which the vessel does not make an intervening stop within the boundaries of another state or possession of the United States or a foreign country.
(C) The following voyages and segments are lawful if the voyage or segment includes or consists of a segment:
(1) that begins and ends in this State;
(2) that is part of a voyage to another state or possession of the United States or to a foreign country; and
(3) in which the vessel reaches the other state or foreign country within three days after leaving the state in which the segment begins."
SECTION 3. A violation of 16-19-170 is not a criminal offense, but is a violation for which a civil penalty, not to exceed twenty-five thousand dollars for each violation, may be imposed by the Department of Revenue.
SECTION 4. (A) Notwithstanding the provisions of Section 16-19-170: (1) the governing body of a coastal county by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the unincorporated area of the county; and (2) the governing body of a municipality by ordinance may suspend the application of the gambling prohibitions provided for in Section 16-19-170 for the municipality.
(B) The county election commission or the municipal election commission, as appropriate, shall place the question contained in this subsection on the ballot in November 2000 in a coastal county in which the county governing body or the municipal governing body, as appropriate, has suspended application of the gambling prohibition provided for in Section 16-19-170 by ordinance within ninety days before the 2000 general election. The state election laws 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. If the result of a referendum is in favor of reinstating the gambling prohibition within the county or municipality, Section1 16-19-170 applies in that county or municipality after the result of the referendum is certified to the Secretary of State.
The question put before the voters shall read:
"Shall the prohibition against gambling, however described, on a vessel that embarks and disembarks within South Carolina be reinstated in __________municipality/county?"
(C) For purposes of this section, a 'coastal county' means Beaufort, Berkeley, Charleston, Colleton, Horry, Jasper, or Georgetown county.
SECTION 5. Nothing in this act shall be construed to repeal or modify any other provision of law relating to gambling. This section does not repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3).
SECTION 6. If any provision of this act or the application of these provisions to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end, the provisions of this act are severable.
SECTION 7. This act takes effect upon approval by the Governor. /
Amend title to conform.
The amendment was adopted.
Senator MOORE proposed the following Amendment No. 2P (3002R034.TLM), which replaced Amendment No. 2:
Amend the amendment, as and if amended, by striking Amendment 2 in its entirety and inserting:
/ Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:
SECTION 1. (A) A statewide referendum must be conducted at the time of the general election in 2000 to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission must place the exact question contained in subsection (B) of this section 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.
(B) The question put before the qualified electors in the referendum shall read:
"Shall cash payoffs for credits earned on video game machines continue to be allowed after December 31, 2000?
No [ ]
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'."
SECTION 2. 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 3. 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
SECTION 4. (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 5. 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
SECTION 6. Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (g) which reads:
"(g) 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 16-19-40 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 8. 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 9. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 10. Title 12 of the 1976 Code is amended by adding:
Article 1
General
Section 12-22-100. As used in this chapter, unless the context indicates otherwise:
(1) `Director' means the director of the department.
(2) `Chief' means the chief of the 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 5 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 winnings 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) `Gross profits' means the amount of money that goes into the machine less winnings.
(13) `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, or as defined in Section 12-22-320(A), 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.
(14) `Machine owner' means any person, other than a distributor, who owns one or more machines.
(15) `Machine operator' means any person who owns, operates, or manages an establishment with one or more machines.
(16) `Manufacturer' means any person that manufactures, assembles, or programs machines or controllers for sale or use in this State.
(17) `Player' means a person who participates in the playing of a machine.
(18) `Principal' means every person; association; all partners of a partnership, limited partnership, or limited liability partnership; all members of a limited liability company; trust and its beneficiaries; 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 other entity who 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.
(19) `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.
(20) `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.
(21) `Winnings' means the amount printed on a validated ticket from a licensed machine that must, subject to the limitations imposed by this chapter, be paid to a player.
Section 12-22-110. (A) Unless specifically granted to the division, the department has all powers necessary and proper to fully and effectively execute the provisions of this chapter including, but not limited to, the power:
(1) notwithstanding Section 12-54-240, to enter into agreements with any department, agency, or instrumentality of the United States or this State for the purpose of regulating persons or entities licensed under this chapter and controlling coin-operated devices or machines and to enforce the provisions of this chapter and may disclose information to the division and to other governmental entities in and outside South Carolina;
(2) to investigate applicants for any license authorized to be issued under this chapter and to determine the eligibility of applicants for licenses;
(3) to exercise jurisdiction over and to supervise all machines or coin-operated devices;
(4) to inspect and conduct investigations by entering the offices, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with the provisions of this chapter is
(5) to review any licenses issued under the provisions of this chapter and to investigate alleged violations of this chapter and to take appropriate disciplinary action against any licensee including the imposition of penalties for a violation, disabling of machines, suspension of licenses, or revocation of licenses, or the institution of appropriate legal action for enforcement;
(6) to require that the records of any 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;
(7) to require of applicants and their principals 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;
(8) to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;
(9) to issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents in accordance with Chapter 4 of Title 12, to administer oaths and affirmations to witnesses, and receive and weigh testimony;
(10) 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;
(11) to issue, deny the issuance of, suspend, or revoke any license authorized by this chapter, so long as the department's action is in compliance with the provisions of this Chapter 60 of Title 12;
(12) to suspend any license authorized by this chapter without notice or hearing upon a determination that a licensee is wilfully 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
(13) 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;
(14) to establish hours of operation for enrollment and support of machines connected to the central computer monitoring system and to charge reasonable fees for services provided outside the hours of 8:30 a.m. to 5:00 p.m., Monday through Friday;
(15) to adopt regulations in accordance with the Administrative Procedures Act; and
(16) to take any other action as may be reasonable or appropriate to enforce this chapter.
Notwithstanding any provision of this section or any other provision of law, the administration or execution of any of the powers granted to the department under this chapter may not be delegated or transferred without prior approval of the General Assembly through an act or joint resolution.
(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.
Section 12-22-120. The director, the employees of the department, the chief, the employees of the division, a machine owner, a machine operator, a manufacturer, a distributor, or an establishment may not, directly or indirectly, individually, or as a member of a partnership, or as a shareholder of a corporation, have a financial or ownership interest in a testing laboratory chosen by the department pursuant to Section 12-22-720. 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 12-22-300.
Licenses
Section 12-22-300. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the
(B) Before placement or operation, a machine must be licensed.
Section 12-22-310. (A) At the time provided for in Section 12-22-345, a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department biennially a license for the privilege of engaging in business. There are hereby imposed the following biennial fees for licenses required to be obtained under this chapter:
(1) manufacturer, two thousand dollars;
(2) owner, two thousand dollars;
(3) distributor, two thousand dollars; and
(4) establishment, two thousand dollars.
There is no licensing fee imposed upon a person licensed as a machine operator.
(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) Except as provided in Article 5, a license authorized in this section shall not be issued unless and until the department has completed its background investigation.
Section 12-22-315. (A) The department may issue licenses authorized under this chapter to qualifying applicants.
(B) The department may not issue a license under this chapter to an applicant unless the applicant and all principals meet the requirements of this chapter.
Section 12-22-320. (A) Every person who owns, or maintains for use, or permits the use of on a place or premises occupied by him, 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 device in South Carolina and shall pay for the license a tax of fifty dollars for each device in item (1), two hundred dollars for each device in item (2), and four thousand dollars for each machine in item (3):
(1) a device 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 device on which an admissions tax is imposed is exempt from the coin-operated device license provisions of this section;
(2) a device for the playing of amusements or video games, without a free play feature, or devices of the crane type operated by a slot in which is deposited a coin or thing of value and a device 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 device 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 device required to be licensed under this item is exempt from the license fee if an admissions tax is imposed; and
(3) a machine of the nonpayout type, in-line pin game, or video game with a free play feature operated by a slot in which is deposited a coin or thing of value except devices 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) The owner or operator of any machine which is exempt by Section 16-19-60 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 Section 12-22-800(A).
(C) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this chapter.
(D) Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(E) The department shall not issue a license for the operation of a machine which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) A license for a machine included in Section 12-22-320(A)(3) shall be issued only to a person who has been licensed pursuant to Section 12-22-310 for use at a licensed establishment. No machine included in Section 12-22-320(A)(3) may be operated without a license.
(G) No machine included in Section 12-22-320(A)(3) may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.
Section 12-22-325. (A) Every person owning or operating a billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table for profit shall apply for and procure from the department a license for the privilege of operating the table and pay for the license a biennial tax of fifty dollars for each table owned or operated.
(B) 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 shall see that the proper state license is attached to a permanent, nontransferable part of the device before its operation is commenced.
Section 12-22-330. (A) In addition to all other licenses required by this chapter, a person who owns devices described in Sections 12-22-320(A)(1), (A)(2), and 12-22-325 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Sections 12-22-320(A)(1) and 12-22-325; and
(2) two hundred dollars for devices in Section 12-22-320(A)(2).
(B) Only one license is required pursuant to this section 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.
(C) The licenses provided by this section are subject to Section 12-22-345 and are a condition precedent to engaging in or the continuing operation of devices described in this chapter.
Section 12-22-335. Each person required to obtain a license for machines included in Section 12-22-320 (A)(3) shall maintain records showing the manufacturer's serial number, model, or type of machine and the VGMID.
Section 12-22-340. In lieu of the license required under Sections 12-22-320(A)(1) and (2), 12-22-325, and 12-22-330 the department may issue a temporary license to persons making application to operate devices defined in Sections 12-22-320 (A)(1) and (A)(2) and 12-22-335 at a recognized county or state fair. The temporary license is the total amount of license fees required on all devices for which application is
Section 12-22-345. (A) Every person subject to payment of tax under Sections 12-22-320 and 12-22-325, in advance of or before the first day of June every two years or before doing an act taxable under this article, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the tax levied for it. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(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 Sections 12-22-320 and 12-22-325.
(D) Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the licensee's registered agent is located or the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. 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 Sections 12-22-310 and 12-22-330.
Background Investigations
Section 12-22-500. (A) The department shall issue the license required by Section 12-22-310 to the applicant upon a determination by the department that the applicant and each principal of the applicant is eligible for the license pursuant to the provisions of this chapter.
(B) The application must be made on forms provided by the department and the applicant and each principal of the applicant must submit any information required by this chapter. 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.
(C) 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 12-22-100(18);
(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 Section 12-22-505;
(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; and
(6) any other information deemed necessary by the department for the proper administration and enforcement of this chapter.
In the case of an application for a machine operator or establishment license:
(a) 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
(b) information that may be required by the department, such as voter registration, to prove the two-year residency requirement.
(D)(1) In addition to the information contained on the department's application form as provided in subsection (C), the applicant for a license must disclose, at the time of filing the application form, the identity and address of every principal.
(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. Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.
(E) 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.
(F) A person with a license issued pursuant to this chapter has an affirmative duty to notify the department within thirty days of any material changes in required information provided to the department including, but not limited to, current and correct disclosure of all principals.
(G) At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to Section 12-22-310.
Section 12-22-505. (A) Upon receipt of a timely and complete application for a license required by Sections 12-22-300 and 12-22-310, the department or division must begin a thorough background investigation of each applicant and each principal of the applicant.
(B) The department may request the assistance of the division in conducting the background investigation on an applicant and each principal of the applicant.
(C) The department must not issue, or must revoke, a license pursuant to Sections 12-22-300 and 12-22-310 if the person, applicant, or principal of the applicant:
(1) has been convicted within the last fifteen years of:
(a) a state or federal felony offense;
(b) a gambling offense;
(c) a criminal offense involving fraudulent activity or defined as a fraud; or
(d) a criminal offense with a sentence of not less than two years; or
(2) has had a gambling license in another jurisdiction revoked; or
(3) has intentionally or wilfully submitted an application which contains material information which is false; or
(4) the person was determined within the last fifteen years to be liable for, or agreed that he was liable for, a civil judgment based in whole or in part upon criminal conduct which carries a penalty of imprisonment for two or more years, or violations of gambling laws, or consumer fraud; or
(5) has any outstanding tax or fee liability with the department; or
(6) the applicant for a license for a machine included in Section 12-22-320(A)(3) has not been a resident of the State for two years.
(D) 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 12-22-510. 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
Section 12-22-515. (A) The department must be given within ten business days written notice of 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 or an establishment licensed under this chapter. 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. Anyone whose interest in the business has ended must immediately surrender to the department any licenses in his possession related to that business. 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) 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 12-22-310, 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.
(C) A temporary license issued pursuant to subsection (B) 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.
Video Game Restrictions
Section 12-22-700. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine or device subject to the license imposed by this chapter by way of proof of licensing must have a current license displayed conspicuously on the front of the machine or device. 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 or device.
Section 12-22-705. Any person who owns or operates machines or devices described in Sections 12-22-320 and 12-22-325 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 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 12-22-710. (A) Every person required to obtain a license pursuant to Sections 12-22-320 and 12-22-325 shall maintain records showing, as applicable:
(1) the manufacturers' serial number;
(2) model and type of machine or device;
(3) the VGMID;
(4) the license number;
(5) the establishment's or the location's name, address, and telephone number;
(6) the machine owner;
(7) the machine operator;
(8) the date the machine entered the State;
(9) the date the machine entered the location; and
(10) the date the machine went on-line.
(B) The licensee 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.
(C) Information required by this section must be available on demand for inspection by a representative of the department. The licensee shall be provided a reasonable time in which to provide the information demanded.
Section 12-22-715. Before a machine may be connected, or remain connected, to the central computer monitoring system, the machine shall have a current and valid machine license. The machine owner and the machine operator and the establishment shall have current and valid licenses as required by this chapter.
Section 12-22-720. (A)(1) All machines, location controllers and associated modems, and computer chips, shall be verifiably of a make, model, and software version, certified by the department or a testing laboratory selected by the department before such items may be possessed, owned, operated, or allowed to operate at any place within this State.
(2) 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 subitem 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.
(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 12-22-725. (A) Within ninety days from enactment, all machines shall meet the following standards, and machine owners 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 and:
(1) have games that are both random and which have a minimum gross payout of between ninety and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) do not operate in a misleading or deceptive manner;
(3) do not have any means of manipulation that affect the random probabilities of winning a game;
(4) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits by the use of a credit card or debit card and to prevent the obtaining of credits without paying or by stringing, slamming, drilling, or other means;
(5) have one or more metering devices that keep a record of: all cash inserted or deposited into the machine; credits played; credits won; validated cash ticket amounts; and other information prescribed by the department and which transmit the information to a machine controller. Cash records shall include total coins and bills accepted and total credit generated by coin and bill acceptors;
(6) are accessible from the central computer monitoring system on demand by telecommunication through a machine or location controller for purposes of polling or reading device activities, the uploading of data required to be recorded and stored pursuant to Section 12-22-775, and for central computer remote enabling or disabling of machine operations;
(7) be capable of interface with a central computer monitoring system through a machine or location controller;
(8) be designed, fitted, or retrofitted as may be the case necessary to establish a secure communication connection between the machine and the central computer monitoring system through a machine or location controller on or before the machine is certified to operate pursuant to this item; and
(9) meet the standards set by the department.
(B)(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 as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of subsection (A) within 150 days after enactment but no later than December 1, 1999.
(C) 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.
(D) The department is authorized to 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 limitations of this chapter, maximize competition among manufacturers.
Section 12-22-730. The department is authorized to 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 multi-player units. Applicants must meet these standards before any license may be issued.
Section 12-22-735. 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 testing 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 testing 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 testing 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. 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 12-22-740. (A) Each location controller must be programmed so as to automatically 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 of not less than seventy-two hours. The machine shall be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following shall occur:
(1) A message will appear on the screen warning the player that the machine is about to be disabled and the player will be informed that one minute remains to complete the game.
(2) A count down timer will be displayed.
(3) If the player completes the game, all credits will be reported on a winnings ticket and no other games will be allowed to be played on that machine.
(4) If the player has not completed the game in the minute allotted, then the machine will complete the hand according to the manufacturer's recommended play strategy, all credits will be reported on a winnings ticket, and the machine will be disabled.
Section 12-22-745. Each machine placed in operation in the State shall 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 machine owner shall affix, the VGMID. The VGMID shall be programmed into the machine and shall serve as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-750. A machine may not be disposed of until such notice has been given to the department. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing prior to 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;
(8) the proposed manner, time, and place of disposal.
A machine shall be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity.
Section 12-22-755. A machine shall not simulate bingo.
Section 12-22-760. Each machine shall contain a single printing mechanism capable of printing an original ticket and retaining an exact copy. Tickets shall 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
Section 12-22-765. All machines, location controllers, and the central computer monitoring system selected by the department shall 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 12-22-770. 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 12-22-775. (A) As part of the central computer monitoring system required under this article, each location operating machines included in Section 12-22-320 (A)(3) must install a sufficient number of approved location or machine controllers and modem or modems which meet all requirements set forth by this section and by the department. Each machine controller must be capable of receiving, storing, and transmitting to another controller and/or the department's central computer monitoring system all information received from, and required of, machines as set forth in Section 12-22-725. Each location controller must be capable of monitoring the number of machine controllers at the location at which it is installed and each machine controller must be capable of monitoring at least five video game machines. This section applies to all location controllers required by Section 12-22-725 which operate as a separate device with direct machine connections or as a separate device operating as a master controller or 'head of string' location controller, each of which must meet the specifications of this section. The cost for purchasing or leasing, as well as the cost of installing, a machine or location controller is the responsibility of the establishment in which the machines are located.
(B) In addition to the any other requirements, each controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) recognize, record, and store as a separate and distinguishable entry each occurrence of an authorized or unauthorized breach, unlocking, or opening of any machine compartment or door;
(3) disable any or all machines and record and store an entry which records that the disabling was required by:
(a) an unauthorized game door opening;
(b) an unauthorized coin or currency door opening; or
(c) an attempt to tamper with or modify any location controller or modem or cabling or other form of connectivity which connects a machine to a controller or one controller to another controller.
(4) immediately notify the central computer and record and store entry when a machine is taken off-line from the location controller without prior authorization;
(5) recognize, record, and store as a separate and distinguishable entry each occurrence where machine tampering is detected. Detection of tampering occurs if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the central computer monitoring system;
(6) re-enable a machine which has been disabled and record and store an entry of this event;
(7) all entries required to be recorded and stored by any controller must include a unique identification number which identifies the machine or controller which created the record and which denotes the date and time of the creation of the entry;
(8) have secure communications established with the central computer monitoring system and periodically upload to the central computer on a basis directed by the department, all entries which have been recorded and stored as of the close of the first reporting period and at the close of each subsequent reporting period thereafter;
(9) have sufficient capacity to store for a minimum of five days or for the period of time equal to the reporting period established by the department, whichever is greater, data containing all required entries created and stored in a machine or location controller. The data must be stored immediately in a manner that allows on demand, real time access by the central computer monitoring system. Data stored in a machine or location controller may only be accessed by the department from the central computer monitoring system, provided that the department may, at the request of the owner or operator of the machine for a reasonable charge, make a copy of the data available in electronic or such other form as the owner or operator requests, provided, further, that no owner or operator may be authorized or given access to any location or machine controller;
(10) have an internal clock, which may only be set, reset, or adjusted by and from the central computer;
(11) be designed and manufactured in such a manner so as to be protected from unauthorized interference or tampering by any person or external device or force, to corrupt or alter data or corrupt or suspend
(12) 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; and
(13) be capable of validating tickets printed by a machine.
Section 12-22-780. (A) Any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than three dollars and the payout must be limited to credits equal to nine hundred dollars. When a player earns credits equaling nine hundred dollars, the machine must: temporarily disable that player or player station, immediately report on a winnings ticket payable to that player or player station, the machine must reset to zero or `game over' and, that player or another player at that player station may not continue to play until more cash or coin is deposited into the machine. 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 winnings ticket pursuant to this provision.
(B) Notwithstanding any other provision of law, at the time the player presents a winnings ticket to the machine operator or his agent for a cash payout, the machine operator or his agent shall require the person presenting the winnings ticket to write or otherwise have placed on the winnings ticket the person's name, address, and telephone number. Upon the provision of the winnings 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 winnings 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.
(C) Any person offering money, prize, bonus, or anything of value for winning credits above what is printed on a winnings 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.
(D) A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of suspension or revocation of the establishment, operator, or owner license and may be fined an amount not to exceed one thousand dollars per violation.
Section 12-22-785. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) the establishment license at the establishment where the machines are located has been revoked;
(2) the license of the machine has been revoked;
(3) the machine owner's license has been revoked;
(4) the machine operator's license has been revoked;
(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;
(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) subsection (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 12-22-790. (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 a 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 12-22-793. A person who knowingly possesses, owns, operates, or allows the operation of a contraband machine, contraband device, or contraband associated equipment at any place within this State is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned for not more than five years, or both.
Section 12-22-795. (A) Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided by Sections 12-22-935, 12-22-940, and 12-22-945 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.
(B) A licensed establishment shall have posted and visible to the public at least one sign with the following words printed thereon:
(1) 'A person shall be twenty-one years of age to receive winnings 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) `Violations are subject to civil and criminal penalties.'
(7) `Violations may be reported to S.C. State Law Enforcement Division or your local law enforcement agency.'
(C) The sign required by subsection (B) shall be visible and readable by the person playing the machine. Each letter on the sign shall be a minimum of two inches high.
Section 12-22-800. (A) A licensed establishment or a machine operator may not engage in any of the conduct specified in subsection (B). If a violation of subsection (B) has occurred, the department shall refuse to issue or may revoke or immediately suspend a license for an establishment or to a machine operator who has engaged in such conduct.
(B) A machine operator or licensed establishment is engaged in unlawful conduct if it:
(1) maintains, possesses, or otherwise allows on its premises more than five machines, except as provided in Section 12-22-815;
(2) advertises, or allows advertising, in any manner for the playing of the machines except as provided in Section 12-22-810;
(3) offers or allows to be offered any inducement as prohibited in Section 12-22-805 to a person to play machines or for the playing of machines;
(4) allows anyone under the age of twenty-one to receive winnings as a result of playing machines;
(5) operates machines between the hours of two o'clock Sunday morning and six o'clock a.m. Monday morning;
(6) violates valid local zoning ordinances;
(7) is 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; a house of worship;
(8) allows the operation of a machine, as defined in this chapter, which accepts for the playing of games anything of value other than coin or cash, including, but not limited to, credit cards, debit cards, or stored value cards;
(9) accepts a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(10) requires a minimum amount of credits below which a cash payout will not be paid for a valid winnings ticket; or
(11) allows a loan or extension of credit 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. A machine owner or operator or any other person shall not at the location of the licensed establishment:
(a) engage in business as a Level I or Level II check cashing service, as defined in Section 34-41-10;
(b) engage in business as a deferred presentment service, as defined in Section 34-39-120;
(c) make restricted loans, as defined in Section 37-3-501(3);
(d) make supervised loans, as defined in Section 37-3-501(1); or
(e) make loans on the security of a motor vehicle certificate of title.
(B) The distances in this article shall be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the location in (A)(7).
(C) The distance requirements set forth in this section do not apply to establishments which operated or allowed the operation of machines for which licenses were issued before May 30, 1993, provided the establishment is operated by the same person who held the license on July 1, 1999.
(D) 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 this section, or any provision of a regulation pertaining to this section.
(F) Any establishment violating a provision of this section or any provision of a regulation pertaining to this section 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) The department, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both.
(H) 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 12-22-805. (A) No person may offer or allow to be offered any inducement to a person for the playing of machines. An `inducement' is defined to be anything of value, whether tangible or intangible, or any benefit, having a monetary value in excess of one dollar except the amount printed on a valid winnings ticket.
(B) Subject to the limitations of (A), a licensed establishment or other person licensed pursuant to Section 12-22-300(A) or any employee or agent of the licensee, may not offer any inducement unless the offeror is able to prove in writing to the department that the inducement is offered to all patrons, not directed toward players, and is part of the normal practices of similar business activities in the State, such as reduced beverage or food prices during specific periods of the day that are limited in duration. The department may approve an inducement valued at not more than one dollar per item so long as the test provided in this subsection is met. No inducement may be offered without prior written approval of the department.
Section 12-22-810. (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 place any misleading or deceptive language on the green square.
(D) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a
(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 or other advertising in existence on the date of enactment are not subject to the provisions of this section until January 1, 2000, provided notice is given to the department as required in Section 12-33-820. Signs affixed to a building or affixed to real estate on the same lot as the licensed establishment in existence on the date of enactment are not subject to the provisions of this section until January 1, 2002, provided notice is given to the department as required in Section 12-33-820.
(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 12-22-815. (A)(1) 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. The department may disapprove a licensure application if a new establishment is closer than one hundred feet from 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. 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.
(2) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino, casino-style gaming operations, video gaming mall, or combination of 'single place or premises' as that term was applied in Regulation 117-190. In
(3) 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.
(4) Licenses denied under this section are subject to review under Section 12-60-1310.
(B)(1) No entity or entities of whatever description or kind which, prior to May 31, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term prior to May 31, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(2) After June 30, 1999, entities as described in item (1) of this subsection shall be permitted to re-apply for and may be granted renewal of a license 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, entities as described in item (1) of this subsection may continue to operate within a county if the county governing body, prior to July 1, 2004, adopts an ordinance authorizing the operation of such entities.
(b) If a county governing body adopts an ordinance as described in subitem (a), the revenue derived from the tax imposed
(c) An ordinance adopted pursuant to this item may not authorize the operation of an entity described in item (1) of this subsection if the entity was not in operation on May 31, 1999.
(C) All establishments which conducted business as a casino or otherwise within a structure which prior to May 31, 1999, contained more than one 'single place or premises' in accordance with department Regulation 117-190 must:
(1) on or before July 31, 1999, 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 and establishment licenses currently issued for the structure and return the establishment licenses 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 subitem (6);
(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;
(5) on or before July 31, 1999, 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 provisions 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 12-22-820. (A) Any person who would otherwise be subject to the restrictions of Section 12-22-800 but who seeks to use the provisions of Section 12-22-810(G) or 12-22-815(B), must, on or before September 1, 1999:
(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 Section 12-22-810(G) or 12-22-815(B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.
Illegal Devices and Acts
Section 12-22-900. (A) 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, 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 any video game with a free play feature which meet the technical requirements provided for in Section 12-22-725 and Section 12-22-775, 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 shall be tried before the magistrate and 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 12-22-905. (A) Any machine, board, or other device prohibited by Section 12-22-900 must be seized by any law enforcement officer of the law and at the option of the magistrate taken before any magistrate of the county in which the machine, board, or device is seized who may examine it, take testimony, and, if satisfied that it is in violation of Section 12-22-900 or any other law of this State, direct that it be immediately destroyed.
(B) Coin-operated machines or devices licensed pursuant to Section 12-22-320 are not subject to confiscation under this section due to any violation of Sections 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-910. (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
(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 shall be tried before the magistrate and 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 12-22-915. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the contents of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin 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 12-22-920. 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.
Section 12-22-925. 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, device, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the department. If the violation under this section relates to a machine included in Section 12-22-320(A)(3), the applicable penalty
Section 12-22-930. (A) 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.
(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 12-22-935. It is unlawful to tamper with a machine with intent to interfere with its proper operation. A person who violates this section is guilty of a felony and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars, or both.
Section 12-22-940. Skimming of machine proceeds is the intentional excluding or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.
Section 12-22-945. A person who, with intent to manipulate the outcome, payoff, or operation of a machine by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both.
Section 12-22-950. 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
Taxation
Section 12-22-1100. (A) In addition to any license fees, there is imposed on the machine owner for each machine licensed included in Section 12-22-320(A)(3), a tax of twenty percent (20%) of the gross profits.
(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) 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 sum of all gross profits 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.
(D) The tax imposed by this section is effective beginning on the first day of the first month following enactment.
(E) Revenues derived from the tax imposed in this section must be credited as provided in Section 12-22-1110.
(F) All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.
(G) 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 12-22-1105. (A) For any person owing twenty thousand dollars or more in connection with any return or reporting period, the tax imposed by this chapter shall be paid to the department through electronic transfer of funds.
(B) The taxpayer shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due. The taxpayer shall provide the department with thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds. The taxpayer shall maintain a balance in the account sufficient to cover the amount of the tax on the
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter.
(D) 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. 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.
(E) A licensed establishment may refund a patron's money when the machine malfunctions and 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 winnings ticket; and, in such event shall 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 Title 12, Chapter 60, 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 12-22-1110. (A)(1) All revenue derived from the tax imposed pursuant to Section 12-22-1100, 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 January 31, 2001. In addition to funds appropriated for the purposes provided in items (2) and (3) of this subsection, after January 31, 2001, funds may be appropriated from the fund for the following purposes:
(a) fifty percent must be used for education initiatives;
(b) twenty-five percent must be used for economic development initiatives and priority must be given to the sixteen counties deemed to be the least developed counties among the counties designated as least developed pursuant to Section 12-6-3360; and
(c) twenty-five percent must be used for tax relief.
(2) From the tax imposed pursuant to Section 12-22-1100, three million dollars is annually appropriated to the division which must be used exclusively for administration and enforcement of the provisions of this chapter.
(3) Four million dollars is annually appropriated to the Department of Alcohol and Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the dollars allocated by this item shall provide local gambling addiction services in each county. Distribution of the dollars to each local county office for gambling addiction treatment shall be made in accordance with the following formula:
(a) one-half of the funds, based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December 31 of the preceding year; and
(b) one-half of the funds, based on the ratio of the population of each county to the total population of the State.
(B) Of the fee imposed pursuant to Section 12-22-320(A)(3), the department may retain up to four hundred dollars per license fee to be used exclusively for administration and enforcement of this chapter.
Section 12-22-1120. 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, social security number, and information regarding any refunds to players.
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.
Miscellaneous
Section 12-22-1300. (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 included in Section 12-22-320(A)(3) in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-320(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 included in Section 12-22-320(A)(3) 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 12-22-320(A) for the equivalent license period.
Section 12-22-1305. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a tax so levied exceed one-half of the amount levied by the State before March 28, 1956."
SECTION 11. The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 17. All proceedings pending and all rights and liabilities existing, acquired, or accrued relating to the application of Articles 19 and 20, Chapter 21, Title 12 at the time of this act takes effect are saved. 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.
SECTION 12. 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,
SECTION 13. 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 12-22-320 and 12-22-325 12-21-2720 and 12-21-2730, the penalty is fifty two hundred dollars for each failure to comply."
SECTION 14. 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 wilfully places a machine on location, or who wilfully 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 15. Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:
"Section 32-1-60. The provisions of Sections 32-1-10, 32-1-20, and 32-1-30 do not apply to losses arising from the play of machines included in Section 12-22-320 (A)(3)."
SECTION 16. 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 17. (A) The provisions of Chapter 22 of Title 12 as added by this act apply to any and all licenses to be issued on or after July 1, 1999.
(B)(1) By August 31, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2000, and who is located in a county described in Section 12-22-345(D)(1) or 12-22-345(D)(2) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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 established in accordance with the provisions of Section 12-22-345(D)(1) and 12-22-345(D)(2).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on February 28, 2002, or May 31, 2002, as applicable. If the license is issued for a period ending in an odd-numbered year, the initial license period for the new license shall expire on February 28, 2001, or May 31, 2001, as applicable.
(c) 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 toward 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.
(C)(1) By November 30, 1999, a person who is licensed pursuant to Section 12-21-2728(A)(3) on July 1, 1999, for a license period which expires on May 31, 2001, and who is located in a county described in Section 12-22-345(D)(3) or 12-22-345(D)(4) shall apply for a new license to be issued in accordance with Articles 3 and 5 of 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 established in accordance with the provisions of Section 12-22-345(D)(3) and 12-22-345(D)(4).
(b) If the license is issued for a period ending in an even-numbered year, the initial license period for the new license shall expire on August 31, 2002, or November 30, 2002, as applicable. If the license is issued for a period ending in an odd-numbered year, the initial license period for the new license shall expire on August 31, 2001, or November 30, 2001, as applicable.
(c) 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 toward 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 August 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 June 30, 1999, shall apply for a machine operator's license issued pursuant to the provisions of Chapter 22, Title 12.
(E) By August 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 June 30, 1999.
(F) A machine license issued pursuant to Section 12-22-21-2720(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.
SECTION 18. Gambling activities prohibited by statutory laws and by the Constitution of this State are prohibited on vessels where voyages begin and end in waters of this State, consistent with the standards specified in 15 U.S.C. 1175, commonly referred to as the Johnson Act. Except as otherwise provided herein, this act prohibits gambling activities on so-called "cruises to nowhere".
SECTION 19. Chapter 19 of Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1) `Vessel' means a boat, ship, casino boat, watercraft, or barge kept, operated, or maintained for the purpose of gambling, with one or more gaming establishments aboard, that carries or operates gambling devices for the use of its passengers or otherwise provides facilities for the purpose of gambling, whether within or without the jurisdiction of this State, and whether it is anchored, berthed, lying to, or navigating and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.
(2) `Gambling' or `gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker or black jack machines, keeno, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.
(B) Except as provided in Section 22, it is unlawful for any person to repair or use any gambling device on a vessel that is on a voyage or segment of a voyage if:
(1) the voyage or segment begins and ends in this State; and
(2) during which the vessel does not make an intervening stop within the boundaries of another state or possession of the United States or a foreign country.
(C) The following voyages and segments are lawful if the voyage or segment includes or consists of a segment:
(1) that begins and ends in this State;
(2) that is part of a voyage to another state or possession of the United States or to a foreign country; and
(3) in which the vessel reaches the other state or foreign country within three days after leaving the state in which the segment begins."
SECTION 20. A violation of 16-19-170 is not a criminal offense, but is a violation for which a civil penalty, not to exceed twenty-five thousand dollars for each violation, may be imposed by the Department of Revenue.
SECTION 21. The provisions of this act do not apply to (1) a commercial passenger vessel which has dining facilities and sleeping or stateroom accommodations for every passenger and whose voyage extends for a period in excess of twelve hours or (2) a commercial passenger vessel which operates in international waters conducting general cruise business from ports outside the State and which sails during a twelve-month period to other ports outside the State or to another country.
SECTION 22. (A) Notwithstanding the provisions of Section 16-19-170: (1) the governing body of a coastal county by ordinance may
(B) Except as provided in subsection (C), the county election commission or the municipal election commission, as appropriate, shall place the question contained in this subsection on the general election ballot in November 2000 in a coastal county in which the county governing body or the municipal governing body, as appropriate, has suspended application of the gambling prohibition provided for in Section 16-19-170 by ordinance within ninety days before the 2000 general election. The state election laws 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. If the result of a referendum is in favor of reinstating the gambling prohibition within the county or municipality, Section 16-19-170 applies in that county or municipality after the result of the referendum is certified to the Secretary of State.
The question put before the voters shall read:
"Shall the prohibition against gambling, however described, on a vessel that embarks and disembarks within South Carolina be reinstated in __________municipality/county?
No [ ]
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'."
(C) In lieu of the referendum held at the time of the general election, but otherwise subject to the requirements of subsection (B), a referendum may be held at a date to be determined by the local governing body.
(D) For purposes of this section, a "coastal county" means Beaufort, Berkeley, Charleston, Colleton, Horry, Jasper, or Georgetown county.
SECTION 23. Nothing in this act shall be construed to repeal or modify any other provision of law relating to gambling. This section does not repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3).
SECTION 24. The General Assembly recognizes that certain "cruises to nowhere" are lawful by virtue of the application of 15
SECTION 25. 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 26. Upon approval by the Governor, this act shall take effect in the following manner:
(a) Parts VI and VII take effect upon approval by the Governor;
(b) Parts I and IV take effect July 1, 1999;
(c) Part II takes effect December 31, 2000, only if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "No" . If Part II of this act takes effect, the South Carolina Department of Revenue, upon application, shall issue pro rata refunds of license fees on machines licensed pursuant to Section 12-21-2720(A)(3) or a machine described in Section 12-22-320(A)(3) as of December 31, 2000;
(d) Part III takes effect July 1, 1999, but the department and the division are directed to take all necessary steps to implement the provisions on the effective date. Part III is repealed December 31, 2000, if the State Election Commission certifies, as provided in Section 1(A), that a majority of the qualified electors voting in the referendum voted "No";
(e) Part V takes effect upon approval by the Governor, such that so called "cruises to nowhere", except as authorized herein, are unlawful pursuant to Section 16-19-170(B) upon the effective date of this section and cannot be made unlawful under SECTION 22 until the results of the referendum are certified to the Secretary of State. /
Renumber sections to conform.
Amend title to conform.
which was adopted and struck the contents of Amendment No. 2 which reads as follows:
Senators RYBERG, FAIR, MARTIN, GROOMS, LEATHERMAN, WILSON, HAYES and GREGORY proposed the following Amendment No. 2 (KGH\ 15554HTC99):
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION __. A. 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."
B. 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
C. (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."
D. 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
E. Section 12-54-40 of the 1976 Code, as last amended by Act 387 of 1998, 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."
F. 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."
G. 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)
H. Notwithstanding any other provision of law, any license required for the use of a video game with a free play feature described in Section 12-21-2720(A)(3) of the 1976 Code issued for a license period beginning after May 31, 1999, is valid only through May 31, 2000, and the fee for this license is four thousand dollars.
I. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
J. Subsection H of this act takes effect upon approval by the Governor. The remaining provisions take effect June 1, 2000. /
Renumber sections to conform.
Amend title to conform.
Senator MOORE explained Amendment No. P2.
Senator RYBERG argued contra to the adoption of the amendment.
Senator MOORE moved that the amendment be adopted.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bauer Branton Cork Courson Courtney Elliott Ford Glover Holland Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Anderson Bryan Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was adopted.
We voted for this amendment because it provides for a referendum on banning video poker in November 2000, and also escrows any expenditure of video poker money until after the referendum by the people in November 2000. The House of Representatives has voted twice this session not to ban video poker; therefore, the only way it will ever be banned is in a referendum by the people of South Carolina. Until this referendum, we must pass comprehensive regulation of video poker.
I voted in favor of the adoption of Amendment No. 2P because I believe that this is the best opportunity to put the issue before the qualified voters of this State for final resolution.
Senator HAYES proposed the following Amendment No. 7 (3002R003.RWH) which was adopted:
Amend the bill, as and if amended, PART IV, by striking SECTION 17 in its entirety
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved that the amendment be adopted.
The amendment was adopted.
Senator HAYES proposed the following Amendment No. 9 (3002R005.RWH), which was tabled:
Amend the bill, as and if amended, PART IV, by striking SECTION 15 in its entirety.
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Bryan Cork Courson Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Waldrep Washington
Alexander Anderson Drummond Fair * Giese Gregory Grooms Hayes Holland Leatherman Martin Russell
Ryberg Smith, J. Verne Thomas Wilson
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senator HAYES proposed the following Amendment No. 10 (3002R006.RWH), which was tabled:
Amend the bill, as and if amended, PART III, SECTION 10, by striking Section 12-22-780 and inserting:
/Section 12-22-780. Any machine licensed pursuant to Section 12-22-320(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the amount bet or wagered on any single hand or single play to credits equal to not more than ten dollars. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-320(A)(3) which provides payouts shall limit the cash payout for credits earned for free games to two thousand five hundred credits a player a location during any twenty-four hour period. The cash value of credits for each free game is limited to five cents. Any location violating this section shall be subject to revocation of the license of the machine and may be fined an amount not to exceed one thousand dollars./
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Cork Courson Courtney Elliott
Ford Glover Holland Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Anderson Bryan Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
This amendment was an attempt by those who entered into a compromise to renege on that compromise. Although the limit in the Senator Moore amendment was greater than that I may have wanted, it was part of a deal struck to move toward some regulation and appropriate taxation. These elements have been lacking over the past few years because of those self-same folks who proposed the amendment. They would not allow us to get to a vote.
Senators HAYES and SHORT proposed the following Amendment No. 11 (3002R007.RWH), which was withdrawn:
Amend the bill, as and if amended, PART III, SECTION 10, in Article 13 of Chapter 22 of Title 12, by inserting immediately after Section 12-22-1305:
/ Section 12-22-1310. Notwithstanding any other provisions of law, a municipality or county, by ordinance, may regulate the location within the municipality or county of video games with a free play feature licensed pursuant to Section 12-22-320(A)(3) by means of zoning or other ordinances generally applicable to classes of business activity, provided that any such ordinance must have been adopted prior to January 1, 1999. Before a machine may be licensed or relicensed, the owner of the machine must obtain a location license from the appropriate local government for a fee of one hundred dollars stating the machine is in compliance with all local ordinances, which must be issued by the local government upon its determination that machines in that location will conform to all local ordinances. The Department of Revenue may not issue a license for any machine destined for a location which has not been issued a local location license. If a machine is relocated from the location for which the location license is issued, the Department of Revenue must revoke the license it has issued. A machine on which these games are played may be confiscated as contraband by the appropriate law enforcement agency when it is determined by the local agency enforcing the ordinance that the machine is placed in violation of the ordinance. A machine may be disposed of after it is confiscated as contraband after a hearing in a magistrate's court in the case of a county violation, and before a municipal court in the case of municipal violation. The only two issues which may be raised at the hearing are whether or not: (1) the machine is licensed under Section 12-22-320(A)(3) and (2) the location of the machine is prohibited by ordinance. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND spoke on the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Courtney Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Ravenel Reese Saleeby Setzler Washington
Alexander Bryan Cork Courson Drummond Elliott Giese Gregory Grooms Hayes Leatherman Martin Peeler Rankin Russell Ryberg Short Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
The PRESIDENT voted "no."
The Senate refused to table the amendment. The question then was the adoption of the amendment.
On motion of Senator LAND, with unanimous consent, the amendment was carried over and subsequently withdrawn.
Senator ALEXANDER proposed the following Amendment No. 13 (3002R011.TCA), which was adopted:
Amend the bill, as and if amended, by amending Section 12-22-725, as contained in Part III of the bill, by striking subitem (A)(4) and inserting:
"(4) have one or more mechanisms that accept only coins or cash in denominations of twenty, ten, five, or one dollar bills. The machine must be programmed to accept a combination of bills totaling not more than one hundred dollars at any time before a game is played by a player of the machine or a player at the play station calculating credits for that player. After the player has played one or more games, the machine may allow the deposit of additional coins or currency of the same denominations not exceeding one hundred dollars. The mechanisms shall be designed to prevent obtaining credits by the use of a credit card or debit card and to prevent the obtaining of credits without paying or by stringing, slamming, drilling, or other means; /
Renumber sections to conform.
Amend title to conform.
Senator ALEXANDER explained the amendment.
The amendment was adopted.
Senator ALEXANDER proposed the following Amendment No. 21 (3002R018.TCA), which was adopted, subsequently reconsidered and withdrawn:
Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:
/ SECTION ___. Section 12-21-2793 of the 1976 Code is amended to read:
"Section 12-21-2793. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 may not be located within five hundred feet within a county and within three hundred feet in a municipality of a public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; or house of worship; or a subdivision which has a covenant that prohibits the location of a commercial enterprise within the subdivision. The owner of any location operating in violation of the provisions of this section shall be guilty of a misdemeanor and shall,
The penalty imposed by this section shall not be effective until after September 1, 1993. Any location relocating pursuant to this section may apply to the Tax Commission for the reissuance of a license without charge.
The provisions of this section do not apply with respect to any location with machines with licenses issued before May 30, 1993." /
Renumber sections to conform.
Amend title to conform.
Senator ALEXANDER explained the amendment.
Senator LAND moved that the amendment be adopted.
The amendment was adopted but was subsequently reconsidered and withdrawn.
Senator PEELER proposed the following Amendment No. 22A (3002R031A.HSP), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered new SECTION at the end to read:
/ SECTION _____. (A) A statewide referendum must be conducted at the time of the general election in 2000 to ascertain whether or not payments on pari-mutuel wagers involving horse racing will be authorized in this State in accordance with statutes adopted by the General Assembly. The State Election Commission must place the verbatim question contained in subsection (B) of this section 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 of the Senate, the President Pro Tempore of the Senate, and the Code Commissioner.
(B) The question put before the qualified electors in the referendum shall read:
"Shall payments on pari-mutuel wagers involving horse racing be allowed after December 31, 2000, in accordance with statutes adopted by the General Assembly?
No [ ]
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'."
(C) Upon certification of a majority "Yes" vote on the question concerning pari-mutuel wagers, the General Assembly is authorized to adopt statutes concerning payments on such wagers. No pari-mutuel wagers on horse racing shall be lawful until the statutes are adopted. /
Renumber sections to conform.
Amend title to conform.
Senator PEELER explained the amendment.
Senator PEELER moved that the amendment be adopted.
Senator MARTIN moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bauer Bryan Cork Drummond Elliott Giese Gregory Grooms Hayes Leatherman Leventis Martin McGill Moore O'Dell Rankin Russell Setzler Short Smith, J. Verne Thomas
Branton Courson Courtney Ford Glover Hutto Land Matthews McConnell Mescher Passailaigue Patterson Peeler Ravenel Reese
Ryberg Saleeby Waldrep Washington Wilson
Anderson (Present) Aye
Holland (Absent) Nay
The amendment was laid on the table.
Senators HAYES, RYBERG, ANDERSON, BRYAN, DRUMMOND, FAIR, GIESE, GREGORY, GROOMS, LEATHERMAN, MARTIN, RUSSELL, J. VERNE SMITH, THOMAS, WALDREP and WILSON proposed the following Amendment No. 23 (NBD\11374HTC), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
PART I
(1) The State Election Commission shall conduct a statewide referendum at the time of the 2000 general election to determine if the qualified electors of the State favor keeping video poker gambling legal. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the General Assembly, the director of the Department of Revenue, and the Code Commissioner. The referendum question must read as follows:
"Do you favor keeping video poker gambling legal?
No [ ]"
(2)(A) The referendum required by this question must be conducted by the State Election Commission using funds appropriated to it for its operations in the annual general appropriations act for fiscal year 2000-2001, the surcharge license tax imposed pursuant to this Part, and any other funds available to the commission regardless of the purpose of their appropriation.
(B) There is imposed a license tax surcharge of fifty dollars a machine for each machine licensed pursuant to Section 12-21-2720(A)(3) of the 1976 Code as of July 1, 2000, due and payable to the Department of Revenue on or before August 1, 2000. Failure to
(3) 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."
(4) 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
(5) Section 12-21-2720 of the 1976 Code is amended to read:
"Section 12-21-2720. (A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the South Carolina Department of Revenue a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and four thousand dollars for each machine 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 C.O.D. 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 required to be licensed under this item is exempt from the license fee if an admissions tax is imposed.
(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) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period.
(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
(D) A county may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section 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 subsection (A) for the equivalent license period.
(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."
(6) 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."
(7) Section 12-54-40 of the 1976 Code, as last amended by Act 387 of 1998, 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."
(8) 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."
(9) 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."
(10) Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
(11) Upon the effective date of this Part II, the Department of Revenue, upon application, shall issue prorated refunds of the license tax paid on machines licensed pursuant to Section 12-21-2720(A)(3) of the 1976 Code.
(12) A. Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2720. (A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the South Carolina Department of Revenue a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and four thousand dollars for each machine 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 C.O.D. 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 required to be licensed under this item is exempt from the license fee if an admissions tax is imposed.;
(3) a machine of the nonpayout type, in-line pin game, or video game with free play feature machine as defined in Section 12-21-2772(5) 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) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of three thousand six hundred the license amount less four hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period, but not less than three hundred sixty dollars.;
(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).
(D) A county may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six the license amount less four hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period, but not less than three hundred sixty dollars.
(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 fees imposed in subsection (A) (G) 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.
(G) The machine owner of machines as defined in Section 12-21-2772(5) which have never been licensed shall pay a nonrefundable license fee for each machine of four thousand dollars. The machine owner of previously licensed machines shall pay a nonrefundable renewal license fee as follows:
Net Income of Machine in Twelve Biennial
Months Preceding License Date License Fee
Not more than $12,000 $3,000
More than $12,000 but not more than $24,000 $4,000
More than $24,000 but not more than $48,000 $6,000
More than $48,000 $8,000."
B. The 1976 Code is amended by adding:
"Section 12-21-2777. (A) In addition to license fees for machines licensed pursuant to Section 12-21-2720(A)(3), a tax of ten percent of the gross machine income of every machine is imposed on the machine owner.
(B) Unless the department exempts a taxpayer from this requirement, the taxes in this subsection 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.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this section 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.
(D) Unless the General Assembly determines that such reports are unnecessary, 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 or other denomination, of the game;
(3) the name of the game;
(4) the name of the individual or individuals collecting money from the machine and the owner of the machine;
(5) the date or dates 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 income of each machine.
(E) For machines connected to the central computer monitoring system, the department shall determine the tax on gross machine income on 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 tax due.
(F) As an interim procedure to collect the taxes in this section between the effective date of this section 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
(G) An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.
(H)(1) Until a discrepancy under subsection (G) is resolved, the department may not make credit adjustments. 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. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.
(2) 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.
(I) The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed on machines. However, before depositing revenues to this account, the department shall retain its costs and the costs of the State Law Enforcement Division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of Articles 19 and 20 of this chapter. All interest earned on revenues placed into the account remain with the account.
(J) Revenue deposited in this account must be distributed in a fiscal year as follows:
(1) four million dollars must be distributed to the South Carolina Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with
(a) one-half of the funds based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December thirty-first of the preceding year;
(b) one-half of the funds based on the ratio of the population of each county to the total population of the State;
(2) of amounts remaining in this account, and as the General Assembly shall provide by law, sums must be provided for local law enforcement for enforcement of this article and Article 19 of this chapter and the remainder must be appropriated for nonrecurring purposes.
C. Section 12-21-2782 of the 1976 Code, as last amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2782. All video game machines licensed under Section 12-21-2720(A)(3), no later than December 31, 1998 September 1, 1999, or ninety days after the effective date of this September 1, 1999, provision, whichever is later, must:
(1) have games that are random and have a minimum payback of at least eighty percent in which the theoretical payout percentage is determined using standard methods of probability theory;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner; and
(4) be capable of interfacing with a computerized monitoring system to be selected by the department.
The technical standards established by the department must be designed so as to maximize competition in the market place among manufacturers.
Machines not meeting the standards of this section or regulation of the department may not be licensed. The license of any machine which fails to maintain the standards of this section or regulation of the department must be revoked."
D. Section 12-21-2784 of the 1976 Code, as added by Act 164 of 1993, is further amended to read:
"Section 12-21-2784. (A) Each machine manufacturer, distributor, operator, and licensed establishment must be licensed by the commission department pursuant to Article 19 of this chapter or this article, as applicable, and this article before a machine or associated
Every two years a manufacturer, distributor, 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:
(1) Manufacturer $10,000
(2) Distributor $15,000
(3) Machine Operator $2,000
(4) Licensed Establishment $1,000
(B) If a license purchased is 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 this section and Section 12-21-2728(A)(3).
(C) 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.
(D) A license authorized in this section or Section 12-21-2728(A)(3) must not be issued until the department receives a completed background investigation showing that the standards provided for in Section 12-21-2805 have been met by the applicant.
(E) 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.
(F) A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right."
E. Section 12-21-2786 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2786. The placement of machines in licensed establishments is subject to the provisions of Article 19 of this chapter and the rules and regulations promulgated by the commission. (A) An establishment license must not be issued until the department determines that the location is proper. In determining whether a location is a proper one, the following factors may be considered:
(1) the location's proximity to residences;
(2) the location's proximity to houses of worship, schools, playgrounds, parks, and daycare centers;
(3) the likelihood that large crowds will gather from time to time with attendant breaches of the peace;
(4) the adequacy of law enforcement protection;
(5) the concentration in the area of other licensed establishments;
(6) compliance with this article; and
(7) all other pertinent information the department and division consider appropriate, or other information submitted for consideration.
(B) An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions 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) The person applying for the establishment license closer than permitted under subsection (B) 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:
(1) 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;
(2) tell an interested person where and when to send a written protest of the application;
(3) be in bold print; and
(4) cover a space at least eleven inches wide and eight and one-half inches high.
(D) The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.
(E) The provisions of this section apply to all applications. However, establishments in existence on the effective date of this section are not subject to the distance restrictions of this section and Section 12-21-2793 while the license is held by the same person who held the license on March 31, 1999.
(F) Notwithstanding any other provisions of law, a municipality or county, by ordinance, may regulate the location within the municipality or county of a licensed establishment by means of zoning or other ordinances generally applicable to classes of business activity. Before a machine may be licensed or relicensed, the owner of the machine must obtain a location license from the appropriate local government for a fee of one hundred dollars stating the licensed establishment is in compliance with all local ordinances, which must be issued by the local government upon its determination that machines in that establishment will conform to all local ordinances. The Department of Revenue may not issue an establishment license for any location which has not been issued a local location license. If a machine is relocated from the establishment for which the location license is issued, the Department of Revenue must revoke the license it has issued. A machine on which these games are played may be confiscated as contraband by the appropriate law enforcement agency when it is determined by the local agency enforcing the ordinance that the machine is placed in violation of the ordinance. A machine may be disposed of after it is confiscated as contraband after a hearing in a magistrate's court in the case of a county violation and before a municipal court in the case of municipal violation. The only two issues which may be raised at the hearing are whether or not:
(1) the machine is licensed under Section 12-21-2720(A)(3); and
(2) the location of the licensed establishment is prohibited by ordinance."
F. Section 12-21-2791 of the 1976 Code, as last amended by Act 53 of 1997, is further amended to read:
"Section 12-21-2791. (A) Any location licensed establishment which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts shall limit the cash payout for credits earned for free games to two thousand five hundred credits a player a location during any twenty-four hour period. The cash value of credits for each free game is limited to five cents and any person employed or working therein shall not allow more than two dollars to be risked, wagered, or played on any one play or hand.
(B)(1) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:
(a) issue payouts of more than one hundred twenty-five dollars per day per location; or
(b) require any minimum number of credits before issuance of a validated payout ticket; or
(c) permit any player to receive a payout at the end of play greater than one hundred twenty-five dollars, regardless of the amount of money deposited into the machine; or
(d) produce at the completion of play validated tickets worth more than one hundred twenty-five dollars, regardless of the amount deposited in the machine; or
(e) allow at the completion of play the production of multiple tickets with a collective value of greater than one hundred twenty-five dollars or any other schemes to evade the one hundred twenty-five dollars per hand and cash out limits provided above.
(2) The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than one hundred twenty-five dollars.
(C) The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) and (B) is found.
(D)(1) The owner of each machine licensed pursuant to Section 12-21-2720(A)(3) shall keep or cause to have kept at the licensed establishment where the machine is located a record or log book with the following:
(a) the license number of that machine, its location and the name, address, and social security or tax identification number of the owner thereof;
(b) the name, address, and social security number of any individual to whom a cash payout is made regarding payout credits, or free games from that machine. If the individual is not an American citizen or is otherwise lawfully without a social security number, the record or log book shall so state attested to by that individual's signature. The responsibility for determining whether or not the individual is lawfully without a social security number rests with the owner of the machine or his agent. In this event, other identifying information as required by regulation of the department shall be obtained;
(c) the amount of the cash payout to that individual and his signature in the record or log book acknowledging receipt of same;
(d) the name and address of the owner or other person who was financially responsible for the cash payout; and
(e) a written certification made under penalty of perjury in the record or log book by the owner of the machine or his agent that the number of free games or credits on the machine as a result of that player's payout was reset at zero after the cash payout.
(2) The provisions of item (1) of this subsection are in addition to any other requirements provided by law and are imposed on the owner of the licensed machine who along with his agents or operators on the premises where the machine is located shall be charged with a violation of this subsection if a violation occurs. Violations of this subsection shall be punished as provided in Section 12-21-2804(F) and the machine confiscated in the manner provided by law. Failure to keep a record or log book in the manner required herein is also deemed a violation of this subsection.
(E) The department beginning September 1, 1999, or ninety days after the effective date of this subsection, whichever is later, may require the computer monitoring systems of all licensed machines to delete the number of free games or credits reflected on the machine as a result of a player's payout if the player receives a cash payout for these free games or credits."
G. Section 12-21-2802 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2802. (A) Each machine licensed machine under this article or Article 19 must have a prominently displayed sign citing the penalties provided by Sections 12-21-2790, 12-21-2792, and 12-21-2794 on the wall above the machine or affixed prominently to the machine. Every licensed establishment shall have at least one sign prominently posted and visible to the players stating: 'NO PAYMENT GREATER THAN ONE HUNDRED TWENTY-FIVE IS ALLOWED REGARDLESS OF THE AMOUNT DEPOSITED IN THE MACHINES.' The commission department shall make these signs available free of charge.
(B) In addition to all other signs required under this section, a machine owner must obtain from the department for a fee of one hundred dollars a white warning label that 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
H. Section 12-21-2804 of the 1976 Code, as last amended by Act 53 of 1997, is further amended to read:
"Section 12-21-2804. (A)(1) No person shall apply for, receive, maintain, or permit to be used, and the commission department shall not allow to be maintained, permits or licenses for the operation of more than eight machines authorized under Section 12-21-2720(A)(3) at a single place or premises for the period beginning July 1, 1993, and ending July 1, 1994. After July 1, 1994, the commission department may not issue nor authorize to be maintained any licenses or permits for more than five machines authorized under Section 12-21-2720(A)(3) at a single place or premises. Any licenses or permits issued for the operation of machines authorized under Section 12-21-2720(A)(3) during the period of July 1, 1993, and July 1, 1994, for a two-year period shall continue in effect after July 1, 1994, provided that during the period of July 1, 1994, and July 1, 1995, no person shall maintain at a single place or premises more than eight machines authorized under Section 12-21-2720(A)(3). In addition after July 1, 1999, the department is authorized to issue licenses for machines under Section 12-21-2720(A)(3) only in accordance with the provisions of subsection (H).
(2) No machine may be licensed or relicensed in any location where the primary and substantial portion of the establishment's gross proceeds is from machines licensed under Section 12-21-2720(A)(3) licensed establishment that derives the primary and substantial portion of its proceeds from these machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this provision including, but not limited to, gross machine income by months, gross proceeds by
(3) The commission department shall revoke the licenses of machines located in an establishment which fails to meet the requirements of this section. No license may be issued for a machine in an establishment in which a license has been revoked for a period of six months from the date of the revocation. The term "gross proceeds" from the machines means the establishment's portion.
(B)(1) No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(A)(3) may advertise in any manner for the playing of the machines nor may a person or offer or allow to be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(A)(3) except as permitted in items (2) or (3) of this subsection.
(2) The offering of inducements, defined as any attempt to influence a person to play machines including, but not limited to, the following are prohibited:
(a) free or discounted food or beverages;
(b) free or discounted games other than credits won through authorized play;
(c) prizes, either at the doors or through drawings or other means;
(d) coupons offering any of the above; or
(e) cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are also prohibited.
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.
(3)(a) A licensed establishment may 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 alone on any side of the building in which the licensed establishment is located.
(b) Nothing in this item prevents a licensed establishment from advertising other goods and services 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 hereunder 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 broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.
(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 item are not subject to the provisions of this item until July 1, 2001, if notice is given to the department in the manner it requires.
(C)(1) A licensed establishment including its employees and agents, may not:
(a) No allow any person under twenty-one years of age may to receive a payout as a result of the operation of the machines licensed under Section 12-21-2720(A)(3).;
(b) cash any business, personal, or employment checks of any individual or business;
(c) make loans to any individual or business;
(d) 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;
(e) extend credit, in any manner, to a player; or
(f) allow playing of machines by a person in an intoxicated condition.
(2) No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under Articles 19 and 20 of this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under Articles 19 and 20 of this chapter and its license or permit issued under Title 61.
(D) No owner, operator, or marketer may be issued a permit by the commission department for machines pursuant to Section 12-21-2720(A)(3) unless the owner, operator, or marketer has been a
(E) It is unlawful to operate machines licensed under Section 12-21-2720(A)(3) between the hours of midnight Saturday night and six o'clock a.m. Monday morning two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.
(F) A person violating subsections subsection (A), (B), (C), (D), or (E), or (H) of this section is subject to a fine of up to five thousand dollars to be imposed by the commission department for each violation. The commission, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both. The commission department shall also revoke the any licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section. Revocation is pursuant to the procedures set forth in Section 12-54-90.
(G)(1) In addition to any other penalties provided by law, the department, for a violation of Section 12-21-2808(E) or Section 12-21-2809, may:
(a) impose a civil penalty in an amount not to exceed five thousand dollars on the owner of the machine, or the person who obtained, or was required to obtain, the retail sales tax license for the place or premises pursuant to Section 12-21-2703, or both; and
(b) revoke the license of the machine giving rise to the violation and any other machine licensed to the same holder in any county where such machines are prohibited pursuant to Section 12-21-2809; and
(c) seize the offending machine and dispose of it as contraband.
(2) The penalties authorized by this subsection are effective immediately upon imposition and may not be stayed by any administrative or judicial action. The sole remedy available under this subsection is a hearing before the Administrative Law Judge Division on the question of the legality of the machine under Section 12-21-2809
(H)(1) Except as provided in item (2) of this subsection, machines must not be operated, or continue to operate, at any casino, casino-style gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117-190 of the South Carolina Code of Regulations. In determining whether an establishment violates this subsection, 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 subsection are subject to review under Section 12-60-1310.
(2) All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117-190 must:
(a) on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(b) advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(c) 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 March 15, 1999, as provided in the statement required in subitem (d);
(d) never increase the number of machines permitted by this subsection after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used herein, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;
(e) not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and
(f) on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.
(3) Any person claiming the provisions of item (2) of this subsection has 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 is subject to all limitations of this subsection.
(4)(a) No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(b) After September 1, 1999, entities as described in this subsection are permitted to re-apply for, and may be granted renewal of a license for a maximum of one biennial licensure period under the provisions of this subsection. After completing that period, a new license must not be issued under this subsection."
I. The 1976 Code is amended by adding:
"Section 12-21-2805. (A)(1) The State Law Enforcement Division shall conduct background investigations on those persons associated with the operation of machines licensed pursuant to Section 12-21-2720(A)(3) and the licenses required pursuant to Section 12-21-2784. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of these machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this section.
(2) The division shall:
(a) promptly and in a reasonable order, investigate all applications, enforce the provisions of Articles 19 and 20 of this chapter, and provide to the department all information to allow the department to issue or deny the license;
(b) provide the department with all information necessary for all actions under Articles 19 and 20 this chapter and for all proceedings involving enforcement of the provisions of Articles 19 and 20 of this chapter or any regulations;
(c) investigate violations under Articles 19 and 20 of this chapter and any regulations;
(d) conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with Articles 19 and 20 of this chapter;
(e) receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of Articles 19 and 20 of this chapter and regulations;
(f) exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;
(g) have the authority to request and receive information, materials, and any other data from any person; and
(h) report to the department any recommendations that promote more efficient operations of the division or the department.
(3) In connection with the responsibilities under Articles 19 and 20 of this chapter, the division or the department and their employees and agents may:
(a) inspect and examine all establishments where machines are operated;
(b) inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;
(c) inspect all equipment and supplies in, about, upon, or around the establishment;
(d) seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;
(e) inspect, examine, and audit all records pertaining to an applicant's operation;
(f) seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.
(4) The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.
(5) The division may inspect any applicant or licensee for compliance with the provisions of Articles 19 and 20 of this chapter and regulations and to investigate any violations.
(B)(1) Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, and their principals.
(2) As a condition of receiving a license under the provisions of Articles 19 and 20 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 Articles 19 and 20 of this chapter.
(3) 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 Articles 19 and 20 of this chapter must be used to do so.
(4) Each applicant and principal shall cooperate with the division and the department in the performance of their duties.
(5) Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.
(C)(1) The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:
(a) a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:
(i) any offense punishable by imprisonment for two or more years;
(ii) any gambling offense;
(iii) theft or any crime involving false statements or declarations.
(b) 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 above;
(c) 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;
(d) 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;
(e) 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;
(f) that the applicant owes any federal or state delinquent taxes, penalties, or interest.
(2) The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.
(D)(1) 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.
(2) Distributors, principals, machine owners, machine operators, and technicians, 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.
(E)(1) The applicant for a license shall provide detailed information regarding:
(a) the ownership and management, including information on all principals;
(b) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(c) federal registration with respect to gambling devices; and
(d) any other information considered necessary by the department for the proper administration and enforcement of Articles 19 and 20 of this chapter.
(2) The department and the division are authorized to develop applications and other forms.
(3) 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
(4) The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.
(5) As a condition of receiving a license under the provisions of Articles 19 and 20 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 Articles 19 and 20 of this chapter is conducted.
(F)(1) The applicant shall provide the local governing authority information related to the application for any license issued under Articles 19 and 20 of this chapter.
(2) 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.
(G)(1) The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.
(2) The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.
(3) 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.
(4) The department or division 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."
J. Section 61-4-580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(3) permit gambling or games of chance not authorized by Article 20, Chapter 21 of Title 12;"
K. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this act, the General Assembly declaring that it would have passed this act, 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
L. 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.
M. Machines licensed for a period ending May 31, 2001, continue to be valid until the expiration of their term.
(13) Unless otherwise stated, Parts I and III of this section take effect upon approval by the Governor.
(14) Part II of this section takes effect on June 30, 2001, but Part II does not take effect unless a majority "no" vote is certified by the State Election Commission on the question as contained in Part I of this section. If Part II takes effect as provided herein, the provisions of Section 12-21-2720 of the 1976 Code as amended in Part II take effect and supercede the amendments to Section 12-21-2720 as contained in Part III. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator PASSAILAIGUE moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Cork Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Bryan Courson Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senators HAYES, RYBERG, ANDERSON, BRYAN, DRUMMOND, FAIR, GIESE, GREGORY, GROOMS, LEATHERMAN, MARTIN, RUSSELL, J. VERNE SMITH,
Amend the bill, as and if amended, by adding an appropriately numbered section to read:
/ SECTION __. A. 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."
B. 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."
C. (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."
D. 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."
E. Section 12-54-40 of the 1976 Code, as last amended by Act 387 of 1998, 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."
F. 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."
G. 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
H. Notwithstanding any other provision of law, any license required for the use of a video game with a free play feature described in Section 12-21-2720(A)(3) of the 1976 Code issued for a license period beginning after May 31, 1999, is valid only through May 31, 2000, and the fee for this license is four thousand dollars.
I. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
J. Subsection H of this section takes effect upon approval by the Governor. The remaining provisions take effect June 1, 2000. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Bauer Branton Cork Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Washington
Alexander Bryan Courson Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Setzler Short
Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
To have voted for a ban at this point would be to kill any hope of regulation and taxation of the video poker industry this year. The House has already voted against a ban twice this year and, therefore, the only realistic chance for a ban is through a public referendum. Also, we would be reaching across a referendum and undoing what the people had done at the polls. This Bill gives the public a chance to ban in a referendum in the Year 2000. It is important now to get the compromise amendment passed as it is the only hope for any regulation.
Senators HAYES, RYBERG, ANDERSON, BRYAN, DRUMMOND, FAIR, GIESE, GREGORY, GROOMS, LEATHERMAN, MARTIN, RUSSELL, J. VERNE SMITH, THOMAS, WALDREP and WILSON proposed the following Amendment No. 25 (BBM\9317HTC99), which was tabled:
Amend the bill, as and if amended, by adding an appropriately numbered section to read:
/ SECTION ___. A. The 1976 Code is amended by adding:
"Section 12-21-2777. (A) In addition to license fees for machines licensed pursuant to Section 12-21-2720(A)(3), a tax of ten percent of the gross machine income of every machine is imposed on the machine owner. For purposes of this section, 'gross machine income' means the sum of all cash/money put into the machine.
(B) Unless the department exempts a taxpayer from this requirement, the taxes in this subsection 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.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this section 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.
(D) Unless the department determines that such reports are unnecessary, 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 or other denomination, of the game;
(3) the name of the game;
(4) the name of the individual or individuals collecting money from the machine and the owner of the machine;
(5) the date or dates 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 income of each machine.
(E) For machines connected to the central computer monitoring system, the department shall determine the tax on gross machine income on 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
(F) As an interim procedure to collect the taxes in this section between the effective date of this section 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 these taxes due. 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.
(G) An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.
(H)(1) Until a discrepancy under subsection (G) is resolved, the department may not make credit adjustments. 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. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.
(2) 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 winnings 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.
(I) The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed on machines. However, before depositing revenues to this account, the department shall retain its costs and the costs of the State Law Enforcement Division. The department and the division may retain, carry forward,
(J) Revenue deposited in this account must be distributed in a fiscal year as follows:
(1) four million dollars must be distributed to the South Carolina Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the sum allocated by this item must provide local gambling addiction services in each county. Distribution to each local county office for gambling addiction treatment must be made in accordance with the following formula:
(a) one-half of the funds based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December thirty-first of the preceding year;
(b) one-half of the funds based on the ratio of the population of each county to the total population of the State;
(2) of amounts remaining in this account, and as the General Assembly shall provide by law, sums must be provided for local law enforcement for enforcement of this article and Article 19 of this chapter and the remainder must be appropriated for nonrecurring purposes."
B. This section takes effect upon approval by the Governor and the tax imposed by this section is effective beginning with the first day of the first month following that date. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator BRYAN spoke on the amendment.
Senators MOORE and PASSAILAIGUE spoke on the amendment.
Senator PASSAILAIGUE moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Alexander Bauer Cork Courtney Elliott Ford Glover Hutto Land
Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Rankin Reese Saleeby Washington
Branton Bryan Courson Drummond Giese Gregory Grooms Hayes Leatherman Leventis Martin Peeler Ravenel Russell Ryberg Short Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
The amendment was laid on the table.
Senator HAYES proposed the following Amendment No. 27 (PSD\ 7467SD99), which was tabled:
Amend the bill, as and if amended, by adding a new subsection (D) to Section 12-22-310 of the 1976 Code to read:
"(D) No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under this chapter and its license or permit issued under Title 61."
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Bauer Branton Cork Courson Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Waldrep Washington
Alexander Bryan Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senator BRYAN proposed the following Amendment No. 28 (BBM\ 9330HTC99), which was tabled:
Amend the bill, as and if amended, Part III, SECTION 10, Section 12-22-1110, by striking subsection (A)(1) and inserting:
/ (A)(1) All revenue derived from the tax imposed pursuant to Section 12-22-1100, 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 may be made from this fund before the referendum on video poker. /
Renumber sections to conform.
Amend title to conform.
Senator BRYAN explained the amendment.
Senator PASSAILAIGUE moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Cork Courtney Elliott Ford Glover Hutto Land Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Bauer Branton Bryan Courson Drummond Fair * Giese Gregory Grooms Hayes Leatherman Leventis Martin Russell
Ryberg Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senator HAYES proposed the following Amendment No. 33 (PSD\ 7473SOM99), which was tabled:
Amend the bill, as and if amended, by striking Section 12-22-800(B)(5) and inserting:
/ operates the machine between the hours of two o'clock a.m. and six-thirty o'clock a.m. on Tuesday through Saturday mornings and between two o'clock a.m. Sunday morning to six o'clock a.m. Monday morning; /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Cork Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson
Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Bryan Courson Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senator HAYES proposed the following Amendment No. 43 (BBM\ 9326SOM99), which was tabled:
Amend the bill, as and if amended, by striking Section 12-22-725(B)(2) and inserting:
/ (2) The department shall connect licensed machines at licensed establishments meeting the requirements of this section as soon as practicable after receipt of certification from the machine owner that a machine meets the standards of subsection (A) no later than September 1, 1999. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND spoke on the amendment.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bauer Branton Cork Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Rankin Ravenel Reese Saleeby Setzler Short Washington
Bryan Courson Drummond Fair * Giese Gregory Grooms Hayes Leatherman Martin Peeler Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senators MARTIN and WALDREP proposed the following Amendment No. 45 (3002R024.LAM), which was tabled:
Amend the bill, as and if amended, by striking Section 12-22-780, and inserting in lieu thereof the following:
/ "Section 12-22-780. (A)(1) Until December 31, 2000, any location which operates or allows the operation of coin-operated machines pursuant to Section 12-22-320(A)(3) which provides payouts shall limit the cash payout for credits earned for free games to two thousand five hundred credits a player a location during any twenty-four hour period. The cash value of credits for each free game is limited to five cents.
(2) After December 31, 2000, any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than three dollars and the payout must be limited to credits equal to nine hundred dollars. When a player earns credits equaling nine hundred dollars, the machine must: temporarily disable that player or player station, immediately report on a winnings ticket payable to that player or player station, the machine must reset to zero or `game over' and that player or another player at that player station may not continue to play until more cash or coin is deposited into the machine. 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 winnings ticket pursuant to this provision.
(B) Each machine operator shall maintain on the premises of each licensed establishment a record of each cash payout exceeding two hundred fifty dollars. The record for each payout shall fully identify the person receiving the cash payout by name, address, telephone number, social security number, and a form of verificable identification as approved by the department. The record shall also indicate the number of the credits at the conclusion of play, the amount of credits for which cash payment is made, the amount of cash paid out, and the number of credits deleted. The record shall also include all relevant documentation such as the payout slips printed by the machine.
Each person receiving a cash payout and each employee dispensing a cash payout shall provide a sworn statement to be included in the record and, signed under penalty of perjury, affirming that the information provided in the record is correct and complete. Each employee who is authorized to make payouts shall, at the end of each work shift, provide a sworn statement, signed under penalty of perjury,
(C) Any person offering money, prize, bonus or anything of for winning credits above what is printed on a winnings 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.
(D) A person licensed pursuant to this chapter violating this section shall also be subject to a civil penalty of suspension or revocation of the establishment, operator, or owner license and may be fined an amount not to exceed one thousand dollars per violation." /
Renumber sections to conform.
Amend title to conform.
Senator MARTIN explained the amendment.
Senator MARTIN moved that the amendment be adopted.
Senator LAND moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Bauer Branton Cork Courson Courtney Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Alexander Bryan Drummond Fair * Giese Gregory Grooms Hayes Leatherman
Martin Russell Ryberg Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Having voted on the prevailing side, Senator ALEXANDER asked unanimous consent to reconsider the vote whereby Amendment No. 21 was previously adopted.
There was no objection.
On motion of Senator ALEXANDER, with unanimous consent, Amendment No. 21 was withdrawn.
On motion of Senator ALEXANDER, with unanimous consent, Amendment No. 47 was substituted for Amendment No. 21, taken up for immediate consideration and adopted.
Senator ALEXANDER proposed the following Amendment No. 47 (3002R18A.TCA), which was adopted:
Amend the bill, as and if amended, by striking Section 12-22-800(B)(7) and inserting in lieu thereof the following:
/ (7) is 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; a house of worship; or a subdivision
Renumber sections to conform.
Amend title to conform.
Senator ALEXANDER explained the amendment.
The amendment was adopted.
On motion of Senator LAND, with unanimous consent, Amendment No. 5 was perfected with Amendment No. 5A as follows:
Senator HAYES proposed the following Amendment No. 5A (3002R039.RWH), which was adopted:
Amend the bill, as and if amended, in Section 12-22-100, by striking item (21) and inserting the following:
/ (21) `Winnings' means the amount printed on a validated ticket from a licensed machine that must, subject to the limitations imposed by this chapter, be paid to a player, which means the value of the credit at the end of play. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
Senator LAND moved that the amendment be adopted.
The amendment was adopted.
Senator HAYES proposed the following Amendment No. 29A (3002R041.RWH), which was adopted:
Amend the bill, as and if amended, by striking SECTION 11 in it its entirety and inserting in lieu thereof:
/ SECTION 11. The application of Articles 19 and 20, Chapter 21, Title 12 is suspended prospectively, except as provided in Section 17. 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. /
Amend the bill further, as and if amended, by striking SECTION 25 in its entirety and inserting in lieu thereof:
/ SECTION 25. (A) 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.
(B) All proceedings pending and all rights and liabilities existing, acquired, or accrued at the time of this act relating to the application of Articles 19 and 20, Chapter 21, Title 12 or any provision of Titles 16, 32, or 61 are saved by this act. /
Renumber sections to conform.
Amend title to conform.
Senator LAND moved that the amendment be adopted.
The amendment was adopted.
On motion of Senator RANKIN, with unanimous consent, Amendment No. 48A was taken up for immediate consideration.
Senator RANKIN proposed the following Amendment No. 48A (3002R040.LAR), which was adopted:
Amend the bill, as and if amended, by adding appropriately numbered new SECTIONS at the end to read:
/ SECTION ____. The operator of a gambling boat vessel, the operation of which would be unlawful in this State, except for the exclusions provided in 15 U.S.C. 1175, and as otherwise provided in this act, shall comply with all of the following:
(1) the applicable provisions of Chapter 8 of Title 12;
(2) the Safety of Life at Sea (SOLAS) standards and requirements normally applicable in international waters;
(3) the passengers must be at least twenty-one years of age.
SECTION ___. A person engaged in the business of operating gambling boat voyages must pay a tax on the business at the rate of six dollars per each passenger who embarks on a gambling boat voyage in
Renumber sections to conform.
Amend title to conform.
Senator RANKIN explained the amendment.
Senator RANKIN moved that the amendment be adopted.
The amendment was adopted.
The question then was the third reading of H. 3002.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Bauer Branton Bryan Cork Courson Courtney Drummond Elliott Ford Glover Hutto Land Leventis Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Ravenel Reese Saleeby Setzler Short Washington
Fair * Giese Gregory Grooms Hayes Leatherman Martin Russell Ryberg
Smith, J. Verne Thomas Waldrep Wilson
Anderson (Present) Nay
Holland (Absent) Aye
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.
The elimination of the $125 per day cap in favor of a $900 per bet limit should enable this Bill, as amended, to be legitimately known as the Video Poker Relief Act of 1999. This Bill will effectively deregulate the statutory limitation on the video poker industry and further induce South Carolinians who gamble to wager even more on the 35,000 plus video poker machines. Hopefully, the House of Representatives will refuse to enact these liberal gambling initiatives.
On motion of Senators COURSON, GIESE and WILSON, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Raymond John Rossi of Columbia, S.C.
At 11:41 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M.
This web page was last updated on Friday, June 26, 2009 at 9:43 A.M.