South Carolina General Assembly
117th Session, 2007-2008

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Bill 1057


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A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-2700 SO AS TO DEFINE, SPECIFICALLY AND WITH EXAMPLES AND EXCLUSIONS, "A BONA FIDE SOUTH CAROLINA OPERATED REDEMPTION MACHINE", TO PROVIDE FOR CRIMINAL PENALTIES FOR REWARDING PLAYERS WITH ITEMS OTHER THAN FREE REPLAYS OR NONCASH MERCHANDISE; TO AMEND SECTIONS 12-21-2720, AS AMENDED, 12-21-2722, 12-21-2728, 12-21-2738, AND 12-21-2748, ALL RELATING TO THE LICENSING, OWNERSHIP, AND OPERATION OF COIN-OPERATED AMUSEMENT MACHINES, ALL SO AS TO PROVIDE FOR THE LICENSING OF THE LOCATION, OWNER-OPERATOR, AND MACHINE ITSELF IN CONNECTION WITH A BONA FIDE SOUTH CAROLINA OPERATED REDEMPTION MACHINE; AND TO REPEAL SECTION 12-21-2730, RELATING TO THE BILLIARD, FOOSBALL, SKEEBALL, OR BOWLING LANE TABLES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 19, Chapter 21, Title 12 is amended by adding:

"Section 12-21-2700.    (A)    For purposes of this article:

(1)    'An element of skill' means the presence of the following factors, alone or in combination with one another: a learned power of doing a thing competently; a particular craft, art, ability, strategy or tactic; a developed or acquired aptitude or ability; a coordinated set of actions including, but not limited to, hand-eye coordination, dexterity, fluency, or coordination in the execution of learned physical or mental tasks; technical proficiency or expertise; development of implementation of strategy or tactics in order to achieve a goal; or knowledge of the means or methods of accomplishing a task. The term 'an element of skill' refers to a particular craft, coordinated effort, art, ability, strategy or tactic employed by the player to affect in some way the outcome of the game played on a bona fide South Carolina operated redemption machine as defined below.

(2)    'Bona fide South Carolina operated redemption machine' means every machine and device of any kind or character used by the public to provide redemption or entertainment which requires the payment of or the insertion of a bill, other money, token, ticket, or similar object and the result of whose operation depends in whole or in part upon the skill of the player, whether or not it affords an award to a successful player, and which legally can be shipped interstate according to federal law. A bona fide South Carolina operated redemption machine includes, but is not limited to, the following: pinball machine, console machine, crane machine, claw machine, bowling machine, novelty arcade game, foosball, miniature racetrack, football or golf machine, shuffleboard game, skeeball machine, air hockey machine, trivia machine, simulator game, maze game, racing game, or other redemption machine that may be operated legally in South Carolina. Further, the term includes a machine used by the public to provide music and whose operation requires the payment of or the insertion of a bill, other money, token, ticket, or similar object, such as a jukebox or other similar music machine.

(3)    The term 'bona fide South Carolina operated redemption machine' does not include the following:

(a)    coin-operated washing machines or dryers, vending machines that dispense products or services for payment of money, gas and electric meters, pay telephones, pay toilets, cigarette vending machines, coin-operated scales, coin-operated gumball machines, coin-operated parking meters, coin-operated massage beds, or coin-operated television sets;

(b)    a game or device classified by the United States government as requiring a federal gaming tax stamp under applicable provisions of the Internal Revenue Code;

(c)    a machine prohibited by Section 12-21-2710, 16-19-40, or 16-19-50.

(4)    'Business owner or business operator' means an owner or operator of a business where one or more bona fide South Carolina operated redemption machines are available for commercial use and play by the public.

(5)    'Department' means the South Carolina Department of Revenue.

(6)    'Director' means the director of the South Carolina Department of Revenue.

(7)    'Location license' means the certificate an owner of a bona fide South Carolina operated redemption machine must purchase in the amount of five hundred dollars per year and display in the owner's or operator's place of business where the machine is located for commercial use by the public for play in order to legally operate the machine in the State.

(8)    'Net receipts' means the entire amount of monies received from the public for play of a bona fide South Carolina operated redemption machine, less expenses for noncash redemption of winnings from the redemption machine and less the amount of monies refunded to the public for malfunction of the redemption machine.

(9)    'Operator' means any person, individual, firm, company, association, corporation or other business entity that exhibits, displays, or permits to be exhibited or displayed, in a place of business other than his own, a bona fide South Carolina operated redemption machine in this State.

(10)    'Owner' means any person, individual, firm, company, association, corporation or other business entity owning a bona fide South Carolina operated redemption machine in this State.

(11)    'Permit fee' means the annual charge for each machine, in the amount of one hundred dollars, which an owner of a bona fide South Carolina operated redemption machine in commercial use must purchase and display in either the owner's or operator's place of business in order to legally operate the machine in the State.

(12)    'Sticker' means the decal issued for a bona fide South Carolina operated redemption machine to show proof of payment of the permit fee.

(B)    A bona fide South Carolina operated redemption machine may reward the player exclusively with both free replays and noncash merchandise, prizes, toys, or novelties, each of which:

(1)    is contained within the game itself; and

(2)    has a value of not more than fifty cents for a single play of the game.

(C)    The player of the bona fide South Carolina operated redemption machine must:

(1)    be able to control the timing of the use of the claw or grasping device to attempt to pick up or grasp a prize, toy, or novelty;

(2)    be made aware of the total time that the machine allows during a game for the player to maneuver the claw or grasping device into a position to attempt to pick up or grasp a prize, toy, or novelty; and

(3)    be aware that the claw or grasping device is not of a size, design, or shape that prohibits picking up or grasping a prize, toy, or novelty contained within the machine.

(D)    A player of a bona fide South Carolina operated redemption machine may accumulate winnings for the successful play of the bona fide South Carolina operated redemption machine through tokens, vouchers, points, or tickets. Points may be accrued on the machine. A player may carry over points on one play to subsequent plays.

(E)(1)    A person owning or possessing an amusement game or device or a person employed by or acting on behalf of that person who gives to another person money for noncash merchandise, prize, toy, gift certificate, or novelty received as a reward in playing the amusement game is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars for each offense.

(2)    A person owning or possessing an amusement game or a person employed by or acting on behalf of that person who gives to another person money as a reward for the successful play or winning of the amusement game or device is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than six months, or both, for each offense.

(3)    A gift certificate, token, voucher, ticket, or other evidence of winnings must be redeemable only at the premises on which the game is located. It is unlawful for a person to provide to another person as a reward for play on the game a gift certificate, token, voucher, ticket, or other evidence of winning which is redeemable or exchangeable for anything of value at any other premises. It is unlawful for a person at a premises other than those on which the game is located to give anything of value to another person for a gift certificate, token, voucher, ticket, or other evidence of winning received by the other person from play on the game. A person who violates this item is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than six months, or both, for each offense."

SECTION    2.    Section 12-21-2720(A) of the 1976 Code is amended to read:

"(A)    Every A 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); and two hundred dollars for each machine in item (4):

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

(4)    a bona fide South Carolina operated redemption machine, as described in Section 12-21-2700."

SECTION    3.    Section 12-21-2722 of the 1976 Code is amended to read:

"Section 12-21-2722.    In lieu Instead of the license required under pursuant to Sections 12-21-2720, and 12-21-2728, and 12-21-2730 the department may issue a temporary license to persons making application to operate machines defined in Sections Section 12-21-2720 and 12-21-2730 at a recognized county or state fair. The temporary license is the total amount of license fees required on all machines for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-21-2720, and 12-21-2728, and 12-21-2730. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends."

SECTION    4.    Section 12-21-2728(A) of the 1976 Code is amended to read:

"(A)    In addition to all other licenses required by this chapter, a person who owns or operates devices described in Sections Section 12-21-2720 and 12-21-2730 shall obtain an operator's license biennially as follows:

(1)    fifty dollars for devices in Sections 12-21-2720(A)(1) and 12-21-2730;

(2)    two hundred dollars for devices in Section 12-21-2720(A)(2);

(3)    two thousand dollars for devices in Section 12-21-27    20(A)(3); and

(4)(a)    two thousand dollars for the owner or operator of devices described in Section 12-21-2720(A)(4); and

(b)    one thousand dollars for each location where those devices are located."

SECTION    5.    Section 12-21-2738 of the 1976 Code is amended to read:

"Section 12-21-2738.    (A)    A person who fails, neglects, or refuses to comply with the terms and provisions of this article or who fails to attach the required license to any a machine, apparatus, billiard, or pocket billiard table, or device 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.

(B)    If the violation under this section relates to a machine licensed pursuant to Section 12-21-2720(A)(3), the applicable penalty amount is two thousand five hundred dollars. This penalty must be deposited to the credit of the general fund of the State."

SECTION    6.    Section 12-21-2748 of the 1976 Code is amended to read:

"Section 12-21-2748.    (A)    Any A person who owns or operates devices described in Sections Section 12-21-2720 and 12-21-2730 must have attached to the machine information identifying the owner or operator of the machine. The identification must be placed on an area of the machine which is visible for inspection purposes. This identification is a condition precedent before to the machines may be being operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter and of Chapter 54 as applicable.

(B)    In addition, a person who owns and operates a bona fide South Carolina operated redemption machine as described in Section 12-21-2700 and as provided in Section 12-21-2720(A)(4), as a condition precedent to that operation and the application for licenses for that purpose, shall:

(1)    have been a legal resident of this State for at least ten years; and

(2)    submit to a criminal background check that reveals no felony convictions during the immediately preceding twenty years."

SECTION    7.    Section 12-21-2730 of the 1976 Code is repealed.

SECTION    8.    This act takes effect upon approval by the Governor.

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