Current Status Introducing Body:Senate Bill Number:208 Primary Sponsor:Hayes Committee Number:06 Type of Legislation:GB Subject:Coin-operated devices Residing Body:Senate Current Committee:Judiciary Computer Document Number:EGM/18068DW.93 Introduced Date:19930114 Date of Last Amendment:19930325 Last History Body:Senate Last History Date:19930114 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Hayes Ryberg Wilson Russell J. Verne Smith Drummond Martin Thomas Gregory Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
208 House 19930330 Introduced, read first time, 25
referred to Committee
208 Senate 19930325 Amended, read third time,
sent to House
208 Senate 19930323 Debate interrupted
208 Senate 19930318 Made Special Order
208 Senate 19930309 Read second time, notice of
general amendments
208 Senate 19930224 Committee Report: Favorable 06
with amendment
208 Senate 19930114 Introduced, read first time, 06
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
AS PASSED BY THE SENATE
March 25, 1993
S. 208
Introduced by SENATORS Hayes, Ryberg, Wilson, Russell, J. Verne Smith, Drummond, Martin, Thomas and Gregory
S. Printed 3/26/93--S.
Read the first time January 14, 1993.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-2723 SO AS TO FURTHER REGULATE COIN-OPERATED MACHINES AND DEVICES LICENSED UNDER THE PROVISIONS OF SECTION 12-21-2720; TO REPEAL, EFFECTIVE JULY 1, 1994, SECTION 16-19-60 RELATING TO OPERATION OF COIN-OPERATED MACHINES WITH FREE PLAY FEATURE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 12-21-2703. No coin-operated machine licensed under the provisions of Section 12-21-2720(A)(3) may be operated at a location unless the location is licensed pursuant to the provisions of Chapter 36 of Title 12."
SECTION 2. Article 19, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2705. (A) (1) Coin-operated nonpayout machines with a free play feature may not be licensed or operated in a county after the expiration of existing licenses following a referendum in the county in which a majority approved prohibiting such machines in the county.
(2) In a county where coin-operated nonpayout machines with a free play feature have been prohibited, such machines may be licensed and operated after December thirty-first following a referendum in the county in which a majority approved the licensing and operation of such machines.
(B) (1) The governing body of a county may by ordinance provide for a referendum to be held on the question of prohibiting the licensing and operation of coin-operated nonpayout machines with a free play feature in the county. If such machines are prohibited in a county, the governing body may by ordinance provide for a referendum to be held on the quesion of allowing such machines to be licensed and operated in the county.
(2) A referendum must be held in the county on the question of prohibiting the licensing and operation of coin-operated nonpayout machines with a free play feature upon a petition so requesting filed with the county election commission more than ninety days before the general election containing the signatures of at least ten percent, but not more than two thousand five hundred, of the qualified electors of the county at the time of the last general election. Similarly, where the licensing and operation of such machines are prohibited in a county, a referendum must be held upon a petition filed with the county election commission requesting such machines to be allowed in the county. The same filing deadlines and signature requirements apply for these petitions.
(C) Referendums held pursuant to this section must be conducted by the county election commission at the time of the general election. The commission shall phrase the question in a manner that concisely states the issue. The state election laws apply to the referendum, mutatis mutandis. The commission shall certify and publish the results of the referendum. The county election commission shall forward a certified copy of the referendum result to the Tax Commission for any referendum where the result changes the legal status of coin-operated nonpayout machines with a free play feature in the county.
(D) The revenues from a license provided in Section 12-21-2720(A)(3) issued after June 1, 1995, must be remitted to the county in which the machine is licensed and divided among school districts in the county on a one hundred thirty-five day average daily membership basis. The proceeds of the license fees must be used for public school building purposes."
SECTION 3. Section 12-21-2720, as last amended by Part II, Section 10B, Act 501 of 1992, is further amended by adding:
"(C) In addition to any fees set forth under subsection (A)(3), there is imposed a one time non-refundable fee of five hundred dollars on all licenses issued on such machines for the period between July 1, 1993 and June 30, 1994. The revenue from this fee must be placed in a special account and used exclusively for the purchase of metering devices for the purpose of monitoring these machines on a twenty-four hour a day basis. The Tax Commission is responsible for administering this account and implementing, through regulations as approved by the General Assembly, its requirements."
SECTION 4. The 1976 Code is amended by adding:
"Section 12-21-2723. (A) No person may maintain or permit to be used on a single place or premises more than five machines licensed under Section 12-21-2720(A)(3). No machine may be licensed or relicensed in any location where the primary and substantial portion of the establishment's gross proceeds is from machines licensed under Section 12-21-2720(A)(3). The commission 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) No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(A)(3) may advertise in any manner for the playing of the machines nor may a person offer or allow to be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(A)(3).
(C) No person under twenty-one years of age may play the machines licensed under Section 12-21-2720(A)(3).
(D) No owner, operator, or marketer may be issued a permit by the South Carolina Tax Commission for machines pursuant to Section 12-21-2720(A)(3) unless the owner, operator, or marketer has been a resident of South Carolina for two years. The commission shall require a statement of residency to be filed with the commission as part of the application process for permits issued under Section 12-21-2720(A)(3) on forms and in a manner the commission considers appropriate.
(E) It shall not be lawful to operate machines licensed under Section 12-21-2720(A)(3) between the hours of midnight Saturday night and 6:00 a.m. Monday morning.
(F) A person violating subsections (A), (B), (D), or (E) of this section is subject to a fine of up to five thousand dollars to be imposed by the commission. 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."
Section 5. Section 12-21-2726 of the 1976 Code is amended to read:
"Section 12-21-2726. Every person who maintains for use or permits the use of, on any a place or premises occupied by him, any a machine subject to the license imposed by this article shall by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. 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. attached to the machine, or alternatively the person shall have in his possession and produce on demand a receipt for a cashier's check, money order, or certified check not more than thirty days old made payable to the order of the South Carolina Tax Commission showing thereon the name or model except that those machines described in and licensed as item (3) machines may by way of proof of licensing have a current license on display at the premises occupied by him showing only the following information: (1) the type of machine; (2) the number of machines; and (3) location showing the address of the machines. The owners of those machines described in and licensed as item (3) machines are specifically allowed to take advantage of those provisions of the United States Code which also authorize a tax credit for state-imposed taxes."
SECTION 6. Secton 12-21-2738 of the 1976 Code is amended to read:
"Section 12-21-2738. Any 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 machine, 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 Commission.
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."
SECTION 7. The 1976 Code is amended by adding:
"Section . Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the cash payout for credits earned for free games to two thousand five hundred credits per player per location during any twenty-four-hour period. The cash value of credits for each free game shall be limited to five cents."
SECTION 8. The 1976 Code is amended by adding:
"Section . 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. The owner of any location operating in violation of the provisions of this section shall be guilty of a misdemeanor and shall, upon conviction, be fined not less than one hundred dollars and not more than two hundred dollars or imprisoned for not more than sixty days. Each day of operation shall constitute a separate violation.
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."
SECTION 9. The cash payouts authorized by Section 16-19-60 of the 1976 Code relating to coin-operated devices may only be continued after June 30, 1995, if a majority of the qualified electors voting in a statewide referendum at the time of the 1994 general election vote in favor of the continued regulation and issuance of these licenses. The State Election Commission must place the question contained herein on the general election ballot in November of 1994. 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. If the result of this referendum is not in favor of a continuation of cash payouts or credits earned on coin-operated devices, Section 16-19-60 of the 1976 Code is repealed effective July 1, 1995.
The question put before the voters shall read as follows:
"Shall cash payouts for credits earned on coin-operated video machines remain legal and subject to licensure and regulation by the State of South Carolina after June 30, 1995?"
SECTION 10. This act is effective upon approval by the Governor, except the statement of residency required in Section 12-21-2723(D) of the 1976 Code applies to licenses issued after 1992. The South Carolina Tax Commission shall investigate and determine whether the residency requirement has been met for licenses issued in 1992.