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COMMITTEE REPORT
January 30, 2002
H. 3009
Introduced by Reps. Campsen, Wilder, Altman, Davenport, Walker, Simrill, Meacham-Richardson, J. Young, McGee, Sandifer, Stille, Cotty, Harrison and Wilkins
S. Printed 1/30/02--H.
Read the first time January 9, 2001.
To whom was referred a Bill (H. 3009) to amend the Code of Laws of South Carolina, 1976, by adding Section 16-19-170 enacting the "Gambling Cruise Prohibition Act", etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. This act may be cited as the "Gambling Cruise Prohibition Act". It is the intent of the General Assembly in enacting this act to prohibit gambling on any United States or foreign documented vessel in this State and on any United States or foreign documented vessel conducting voyages that begin and end in this State, consistent with the standards specified in 15 U.S.C. 1175(b), commonly referred to as the Johnson Act Amendments of 1992. It is the purpose of this act clearly and unequivocally to prohibit gambling activities on so-called "cruises to nowhere" as provided in 15 U.S.C. 1175. The passage of this act should in no way be construed or interpreted to mean that existing laws prohibiting gambling in this State do not apply to the so-called "cruises to nowhere" described in this act.
SECTION 2. Chapter 19, Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1) 'Vessel' means every kind of watercraft used or capable of being used as a means of transportation on or in water, as well as any ship, boat, barge, or other watercraft or any other structure capable of floating on or in the water.
(2) 'Gambling' or 'gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker, blackjack machines, keeno, or any other video gambling machine, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.
(3) For purposes of this section, an 'intervening stop' occurs when a vessel departs the jurisdictional waters of this State and sails into United States or international waters, and between the time the vessel departs the jurisdictional waters of this State and the time it returns to the jurisdictional waters of this State, the vessel docks at a port of call in another state or possession of the United States or foreign country and remains in that port for a period of time sufficient to allow passengers the opportunity to disembark the vessel for sightseeing, shopping, or other tourism-related activities at that port.
(B)(1) It is unlawful for a person to use any gambling device or engage in gambling aboard a vessel within the jurisdiction of this State.
(2) It is unlawful for a person to own, keep, operate, manage, or maintain any gambling device on a vessel within the jurisdiction of this State unless:
(a) the vessel is engaged in a voyage that begins and ends in this State and makes an intervening stop; and
(b) any gambling that occurs aboard the vessel occurs only outside the jurisdictional waters of this State.
(C) It is unlawful for a person to use any gambling device or engage in gambling aboard a vessel that is on a voyage if:
(a) the voyage begins and ends in this State; and
(b) during the voyage the vessel does not make an intervening stop.
(D) It is unlawful for a person to own, keep, operate, manage, or maintain a vessel that transports persons to another vessel for the purpose of engaging in gambling if the transportation begins and ends within the jurisdiction of this State and neither the vessel providing such transportation nor the vessel on which the use of any gambling device occurs makes an intervening stop.
(E)(1) A person who violates subsections (B)(1) or (C) is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. Nothing in this section precludes prosecution for any other applicable gambling offense.
(2) A person who violates subsections (B)(2) or (D) is guilty of a misdemeanor and, upon conviction, must be fined not more than two thousand dollars or imprisoned for not more than one year. Nothing in this section precludes prosecution for any other applicable gambling offense."
SECTION 3. 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 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 4. This act takes effect July 1, 2002. /
Renumber sections to conform.
Amend totals and title to conform.
JAY LUCAS for Committee.
REVENUE IMPACT1
This bill is expected to lose an estimated $156,000 in state and local revenue in FY2001-02.
Explanation
This bill would extend the prohibition on gambling provided under the State Constitution to any craft in which voyages begin and end in the waters of this State. This bill would further prohibit an individual to manage, supervise, control, operate, or own any craft that knowingly violates any provision of the State Constitution that prohibits gambling. Currently, there are two casino boat operations sailing out of Little River - the Victori Casino and the Stardancer. According to officials with the Department of Revenue, nearly $156,000 in tax revenue has been collected from the two operators from February 1999 to January 2001. Most of this tax revenue comes from the individual income tax withholdings of employees working for the cruise lines. This bill is expected to lose an estimated $156,000 in state and local revenue in FY2001-02.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
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 OR THE REPAIR OF GAMBLING DEVICES ON A VESSEL IN A VOYAGE THAT BEGINS AND ENDS WITHIN THIS STATE AND PROHIBIT THE OPERATION OF A VESSEL THAT TRANSPORTS PERSONS TO ANOTHER VESSEL FOR THE PURPOSE OF GAMBLING IF BOTH THE TRANSPORTING VESSEL AND THE VESSEL ON WHICH A GAMBLING DEVICE IS USED OR REPAIRED BEGINS AND ENDS ITS VOYAGE IN THIS STATE, AND TO PROVIDE DEFINITIONS AND PENALTIES FOR VIOLATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the "Gambling Cruise Prohibition Act". It is the intent of the General Assembly in enacting this act to reenforce long-standing prohibitions on gambling by reiterating that the gambling offenses provided under the Constitution and laws of this State extend to any United States or foreign documented vessel in this State or to any United States or foreign documented vessel where voyages begin and end in the waters of this State, consistent with the standards specified in 15 U.S.C. 1175(b)(2)(A), commonly referred to as the Johnson Act Amendments of 1992. It is the purpose of this act clearly and unequivocally to prohibit gambling activities on so-called "cruises to nowhere" as provided in 15 U.S.C. 1175. The passage of this act should in no way be construed or interpreted to mean that existing laws prohibiting gambling in this State do not apply to the so-called "cruises to nowhere" described in this act.
SECTION 2. Chapter 19, Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) As used in this section:
(1)(a) 'Vessel' means a boat, ship, casino boat, watercraft, or barge, of United States or foreign documentation, 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.
(b) 'Vessel' includes a boat, ship, watercraft, or barge without gambling devices that transports persons to another vessel for the purpose of gambling or for the repair of any gambling device if the transportation begins and ends in this State and neither the vessel providing such transportation nor the vessel on which the repair or use of any gambling device occurs makes an intervening stop within the boundaries of another state or possession of the United States or a foreign country.
(2) 'Gambling' or 'gambling device' means a game of chance and includes, but is not limited to, slot machines, punch boards, video poker or blackjack machines, keeno, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.
(3) For purposes of this section, an 'Intervening stop' occurs when a vessel departs the jurisdictional waters of this State and sails into United States or international waters on a voyage or segment of a voyage, and between the time the vessel departs the jurisdictional waters of this State and the time it returns to the jurisdictional waters of this State, each of the following occurs:
(a) a person repairs or uses any gambling device aboard the vessel; and
(b) the vessel docks at a port of call in another state or possession of the United States or foreign country and remains in that port for at least six hours so as to allow passengers the opportunity to disembark the vessel for sightseeing, shopping, or other tourism-related activities at that port.
(B) It is unlawful for a person to repair or use any gambling device on a vessel in this State.
(C)(1) It is unlawful for a person to repair or use any gambling device on a vessel that is on a voyage or segment of a voyage if:
(a) the voyage or segment begins and ends in this State; and
(b) 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.
(2) It is unlawful for a person to operate a vessel as defined in subsection (A)(1)(b).
(D) A person who violates either subsection (B) or (C)(1) or (2) is guilty of a felony and, upon conviction, must be imprisoned for not more than five years or fined not more than twenty-five thousand dollars, or both, for each offense. Nothing in this section precludes prosecution for any other applicable gambling offense."
SECTION 3. If any provision of this act, including the provisions of Section 16-19-170 of the 1976 Code added by it, 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 4. This act takes effect July 1, 2001.
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