H 4159 Session 111 (1995-1996)
H 4159(Rat #0382) General Bill, By House Ways and Means
A Bill to amend Chapter 21, Title 12, Code of Laws of South Carolina, 1976,
relating to business license taxes, by adding Article 24 enacting the Bingo
Tax Act of 1996 so as to regulate the game of bingo and provide civil and
criminal penalties for violations; to amend Section 12-6-1140, as amended,
relating to deductions from South Carolina taxable income for purposes of the
state income tax, so as to allow the deduction of bingo prizes and winnings;
to provide that all current bingo licenses expire after September 30, 1997, to
save proceedings underway on October 1, 1997, and provide for their
disposition under former law; to repeal Article 23, Chapter 21, Title 12,
relating to bingo regulation; and to provide that the Bingo Tax Act of 1996
takes effect October 1, 1997.-amended title
04/26/95 House Introduced, read first time, placed on calendar
without reference HJ-15
05/03/95 House Debate adjourned HJ-75
05/03/95 House Reconsidered HJ-77
05/03/95 House Debate adjourned until Thursday, May 4, 1995 HJ-77
05/04/95 House Amended HJ-24
05/04/95 House Read second time HJ-24
05/04/95 House Unanimous consent for third reading on next
legislative day HJ-24
05/05/95 House Read third time and sent to Senate HJ-1
05/09/95 Senate Introduced and read first time SJ-10
05/09/95 Senate Referred to Committee on Finance SJ-10
05/24/95 Senate Recalled from Committee on Finance SJ-15
05/24/95 Senate Retaining place on calendar recommitted to
Committee on Finance SJ-15
03/20/96 Senate Committee report: Favorable Finance SJ-20
03/21/96 Senate Read second time SJ-25
03/21/96 Senate Ordered to third reading with notice of
amendments SJ-25
04/24/96 Senate Amended SJ-56
04/24/96 Senate Read third time and returned to House with
amendments SJ-56
05/01/96 House Concurred in Senate amendment and enrolled HJ-64
05/14/96 Ratified R 382
05/20/96 Vetoed by Governor
05/22/96 House Debate adjourned on veto message HJ-82
05/23/96 House Debate adjourned on veto consideration until
Tuesday, May 28, 1996 HJ-27
05/28/96 House Debate adjourned on veto consideration until
Wednesday, May 29, 1996 HJ-50
05/29/96 House Debate adjourned on veto consideration until
Thursday, May 30, 1996 HJ-84
05/30/96 House Debate adjourned until Friday, May 31, 1996 HJ-22
06/12/96 House Veto sustained Yeas-61 Nays-0 HJ-11
(Rxxx, H4159)
AN ACT TO AMEND CHAPTER 21, TITLE 12, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO BUSINESS LICENSE
TAXES, BY ADDING ARTICLE 24 ENACTING THE BINGO TAX
ACT OF 1996 SO AS TO REGULATE THE GAME OF BINGO AND
PROVIDE CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS;
TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO
DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR
PURPOSES OF THE STATE INCOME TAX, SO AS TO ALLOW THE
DEDUCTION OF BINGO PRIZES AND WINNINGS; TO PROVIDE
THAT ALL CURRENT BINGO LICENSES EXPIRE AFTER
SEPTEMBER 30, 1997, TO SAVE PROCEEDINGS UNDERWAY ON
OCTOBER 1, 1997, AND PROVIDE FOR THEIR DISPOSITION
UNDER FORMER LAW; TO REPEAL ARTICLE 23, CHAPTER 21,
TITLE 12, RELATING TO BINGO REGULATION; AND TO
PROVIDE THAT THE BINGO TAX ACT OF 1996 TAKES EFFECT
OCTOBER 1, 1997.
Be it enacted by the General Assembly of the State of South
Carolina:
Bingo Tax Act of 1996
SECTION 1. Chapter 21, Title 12 of the 1976 Code is amended by
adding:
"Article 24
Regulation of Bingo Games
Section 12-21-3910. This article may be cited as the Bingo Tax Act
of 1996.
Section 12-21-3920. As used in this article:
(1) `Bingo' or `game' means a specific game of chance, commonly
known as bingo, in which prizes are awarded on the basis of designated
numbers or symbols on a card conforming to numbers and symbols
selected at random.
(2) `Department' means the South Carolina Department of Revenue
and Taxation.
(3) `Card' means a printed or nonprinted design on which there are
arranged five horizontal rows and five vertical columns forming
twenty-five squares. Numbers are printed in twenty-four of the squares,
and the term `free', `free square', or `free space' is printed in the square
or space located in the center of the card. The five columns are
denominated from left to right by the respective letters of the word
`B-I-N-G-O'. Each square in the `B' column contains a number from
one through fifteen inclusive; each square in the `I' column contains a
number from sixteen through thirty inclusive; except for the center space
which is marked as free, each square in the `N' column contains a
number from thirty-one through forty-five inclusive; each square in the
`G' column contains a number from forty-six through sixty inclusive; and
each square in the `O' column contains a number from sixty-one through
seventy-five inclusive. No number may appear twice on the same
card.
(4) `Promoter' means an individual, corporation, partnership, or
organization who is hired by a nonprofit organization to manage, operate,
or conduct the licensee's bingo game. The person hired under written
contract is considered the promoter.
(5) `Nonprofit organization' means a charitable, religious, or fraternal
organization exempt from federal income taxation.
(6) `Session' means a consecutive series of games which must occur
only between one o'clock p.m. and one o'clock a.m. No more than one
session may occur during the permitted twelve-hour period. These
limitations do not apply to games operated by state or county fairs.
(7) `Fair' means a recognized annual state or county fair. The fair
must be recognized by the governing body of the county in which it is
held, or in the case of the State, by the South Carolina Agricultural and
Mechanical Society.
(8) `Ball' means a ball, disk, square, or other object upon which is
printed a letter and number which corresponds to the letter and number of
a square on a bingo card.
(9) `Cage' means a device, whether operated manually or by air
blower, in which bingo balls are placed before the bingo game begins. (10) `Caller' means the house representative who is responsible for
drawing bingo balls and announcing the configuration and the result of
each drawing to the players.
(11) `Drawing' means the indiscriminate selection of a single ball from
the cage.
(12) `House' means the nonprofit organization and promoter licensed
with the department.
(13) `Marker' means a device which indicates the number called.
(14) `Master-board' means the receptacle used by the house to display
balls which are drawn during the bingo game.
(15) `Player' means one who participates in a game of bingo other
than as an agent, promoter, or representative of the house.
(16) `Fund' means the Parks and Recreation Development Fund.
(17) `Building' means a structure surrounded by exterior walls or
permanent firewalls.
(18) `Manufacturer' means a person who manufactures bingo cards for
use in this State and who is approved by the department.
(19) `Distributor' means a person who brings or sells bingo cards in
this State and who is approved by the department.
Section 12-21-3930. The game of bingo is not a lottery when:
(1) the nonprofit organization conducting the game has completed the
application as described in Section 12-21-3940 and the application has
been approved by the department;
(2) the promoter under contract with the nonprofit organization is
licensed properly with the department;
(3) the nonprofit organization which is operated exclusively for
charitable, religious, or fraternal purposes presents to the department
upon application a certified copy of the statement issued by the Internal
Revenue Service exempting it from federal income taxation;
(4) the game is conducted in accordance with the provisions of
Sections 12-21-3990 and 12-21-4000 and approved cards are used.
Section 12-21-3940. (A) Before conducting a game of bingo, a
nonprofit organization shall file with the department a written application
in a form prescribed by the department, executed and notarized which
must include:
(1) the name, address, and telephone number of the applicant and
sufficient facts relating to its incorporation and organization to enable the
department to determine whether it is an authorized organization;
(2) a copy of the organization's corporate charter and the Internal
Revenue Service's statement exempting the applicant from federal income
taxes;
(3) the names, addresses, and telephone numbers of the
organization's officers;
(4) the place and time the applicant intends to conduct bingo under
the license for which it applied;
(5) the specific purpose to which the bingo net proceeds are to be
devoted;
(6) the designation of a `promoter' as defined by this article;
(7) a copy of any contract or lease between a promoter and the
nonprofit organization;
(8) the name, address, telephone number, birth date, and Social
Security number of each person who will work at the proposed bingo
games and receive compensation for the work, the nature of the work to
be performed, and a statement as to whether or not the person has been
convicted of a state or federal felony, gambling offense, criminal fraud,
or a crime that has a sentence of two or more years;
(9) other information considered necessary by the department.
(B) Upon application for a license, the department has thirty days to
approve or reject the application based on the requirements of this
article.
(C) The nonprofit organization does not need to apply for renewal of
the license as long as there are no changes in the operation or location of
the game. Changes in information supplied on the original application
must be forwarded to the department, in writing, within thirty days of the
change. In the case of a change in the place and time, notice must be
given thirty days before the change.
Section 12-21-3950. (A) A promoter under contract with a licensed
nonprofit organization to manage, operate, or conduct a game shall file a
written application for a promoter's license in a form prescribed by the
department, executed and notarized, which must include:
(1) the name, address, telephone number, and Social Security
number of the promoter or of each officer if the promoter is a
corporation;
(2) a copy of the promoter's contract or lease with the nonprofit
organization. A contract must exist between the sponsoring organization
and the promoter detailing all expenses;
(3) the name, address, telephone numbers, and Social Security
number of any person working for the promoter at the bingo game and
receiving compensation for the work;
(4) a notarized statement as to whether or not the applicant for a
promoter's license or any of his employees have been convicted of a state
or federal felony, gambling offense, criminal fraud, or a crime that has a
sentence of two or more years.
(B) Upon application for a license, the department has thirty days to
approve or reject the application based on the requirements of this
article.
(C) A promoter shall file a renewal application each year submitting
any changes in information and documentation previously submitted as
required by this section. The promoter is required to notify the
department, in writing, of any changes in the information supplied on the
application within thirty days of the change.
(D) The license authorized by this section is for the privilege of
engaging in business as a bingo promoter and must be purchased from
the department at a cost of one thousand dollars a year.
A promoter shall obtain a promoter's license for each organization for
which he operates bingo games.
Section 12-21-3960. The promoter and the nonprofit organization are
jointly and severally liable for all taxes, penalties, interest, and fines
imposed by this article and Chapter 54 of this title.
Section 12-21-3970. For each licensed nonprofit organization the
promoter manages, operates, or conducts bingo, the promoter must
purchase a promoter's license as provided in Section 12-21-3950 before
operating or conducting bingo. No promoter is permitted more than five
licenses. This license must be prominently displayed at the location
where bingo is conducted.
Section 12-21-3980. (A) The promoter's license authorized by this
article must not be transferred to another person, organization, entity, or
corporation. The promoter's license, upon written application to the
department, may be transferred to a new location for the remainder of the
license period if the licensed nonprofit organization has applied for a
location transfer as provided in subsection (B) of this section. The
written application must be on a form prescribed by the department and
must state, under penalties of perjury, that the information on the transfer
application and the original license application is true and correct, or, in
the case of the original application, is still valid and unchanged. No
additional license fee is required with respect to the transfer of the
location and the promoter may not conduct bingo at the new location
until the new license is issued.
(B) The nonprofit organization's license authorized by this article
must not be transferred to another nonprofit organization and is valid and
continues in force so long as the nonprofit organization to which it is
issued continues to conduct the bingo games at the location authorized by
the license.
The nonprofit organization's license, upon written application to the
department, may be transferred to a new location. The written
application must be on a form prescribed by the department and must
state, under penalties of perjury, that the information on the transfer
application and the original license application is true and correct or, in
the case of the original application, is still valid and unchanged. The
nonprofit organization cannot operate at the new location until the new
license is issued.
(C) No promoter or nonprofit organization may lease, sell, rent, lend
to, or exchange with another person, organization, corporation, or other
entity a promoter's or bingo license issued pursuant to this article.
Section 12-21-3990. (A) The game of bingo must be played in the
following manner:
(1) Bingo is played by more than one player and a caller who is
associated with the house. Each player must pay no more than face value
for each card to be played during the course of a game and may purchase
the card for a specified number of games. After the player has purchased
a card or cards for a specified number of games, the house cannot require
or accept an additional payment or consideration by the player in order to
complete the specified number of games.
(2) Before each game begins, the caller shall announce to the
players the configuration or configurations that will win the game. A
configuration consists of a number of grids covered in the manner
announced by the caller. Any method of playing the games is allowed if
the method is announced before each game beginning including, but not
limited to, wild card games.
(3) The prize must be awarded to the winner of that game without
delay. For multiple winners, the prize must be divided equally among
the winners. In the case of a merchandise prize, the cash value of the
merchandise may be divided among the winners. Purchase receipts of
merchandise awarded as prizes must be made available to players and the
department for confirmation of value.
(4) The caller shall draw and announce numbers from the cage one
at a time. If a player has a card with the called number on it, he may use
a marker to cover the square which contains the number. After the
number is announced, it must be indicated on the master-board by the
caller.
(5) When a player covers sufficient squares on a card to achieve
the winning configuration, he may indicate to the caller. The caller shall
require that the player's card be checked against the master-board in the
presence of the other players to determine if the squares were covered
accurately. If it is determined by the caller that the player accurately has
covered the squares and achieved the preannounced configuration, the
player is declared the winner. If it is determined that the player has not
covered the squares accurately and achieved the preannounced
configuration, play continues in that game.
(6) All devices, including the master-board, used to show what
numbers have been called during a game must not be changed or turned
off until the winners are verified.
Section 12-21-4000. In addition to the manner of play prescribed in
Section 12-21-3990, the following procedures apply to the conduct of the
game:
(1) Before the beginning of the first game, all seventy-five balls must
be displayed openly on the master-board for the inspection of the
players.
(2) Only one set of seventy-five balls and only one master-board is
allowed in the room or area during the play of the game.
(3) Only one bet or payment is to be paid for each card.
(4) No bets or payments may be made while a game is in progress,
except the sale of cards for subsequent games.
(5) Before the start of play, the caller shall announce to all players
the prize to be awarded for that game.
(6) The house is required to identify the games for which a card may
be used before the card is purchased.
(7) Before the start of play, the caller shall announce to all players
the winning configuration of covered squares for that particular game.
(8) The prize must be awarded to the first person who successfully
achieves the winning configuration of covered squares.
(9) Balls must be selected randomly by an indiscriminate process.
(10) Only one number may be called at a time.
(11) All balls drawn remain on the master-board until the conclusion
of the game.
(12)(a) At least fifty percent of the gross proceeds of the sale of
bingo cards taken in by the house during a single session must be
returned to the players in the form of prizes. However, with respect to
fair licenses, this requirement must be met during the course of the
fair.
(b) A bingo operation may take in only two times more in gross
proceeds than the prize for that session. Amounts in excess of this limit
are subject to a tax, in addition to any other bingo license taxes and fees
equal to the amount of the excess. These excess proceeds tax must be
remitted to the department on the organization's quarterly bingo report
and distributed as provided in Section 12-21-4190. Failure to remit this
excess proceeds tax to the department shall result in immediate
suspension of both the promoter's license and the organization's license.
The department, after a conference with the promoter and organization,
may permanently revoke the license of the promoter or the nonprofit
organization, or both. If permanently revoked, the promoter, nonprofit
organization, or any partner or member of the organization may no
longer manage, conduct, or assist in any manner with a bingo operation
in this State.
(13) The playing of bingo is restricted to the premises designated with
the department by the sponsor organization.
(14) Bingo only may be played at the place designated by the bingo
licensee on its original or amended application.
Section 12-21-4010. The provisions of Sections 12-21-3930 through
12-21-3950 do not apply to the holder of a fair bingo license. However,
the department shall prescribe a separate application form for fairs to
obtain a license.
Section 12-21-4020. The following are the classes of bingo
licenses:
(1) CLASS AA: An organization operating a bingo game offering
prizes with a minimum payout of fifty thousand dollars a session shall
obtain a Class AA bingo license at a cost of four thousand dollars. The
prizes offered at any one session may not exceed two hundred fifty
thousand dollars. The holder of a Class AA license may not conduct
more than one bingo session a month.
(2) CLASS B: An organization operating a bingo game offering
prizes, which do not exceed twelve thousand dollars a session, shall
obtain a Class B bingo license at a cost of one thousand dollars. The
holder of a Class B license may not conduct more than three bingo
sessions a week.
(3) CLASS C: An organization operating a bingo game and offering
prizes of twenty dollars or less a game during a single session shall
obtain a Class C bingo license at no cost. However, the organization
may offer a prize in cash or merchandise of no more than one hundred
fifty dollars for six jackpot games a session.
(4) CLASS D: A person, organization, or corporation desiring to
conduct a bingo game at a fair as defined in Section 12-21-3920 and who
offers prizes for each game of no more than fifty dollars in merchandise
shall obtain only a temporary Class D bingo license at a cost of one
hundred dollars for not more than ten days or two hundred dollars for
more than ten days.
(5) CLASS E: An organization which has a game of bingo and
operates exclusively by bona fide members who are residents of this State
and who do so on a strictly volunteer basis and whose gross bingo
proceeds do not exceed forty thousand dollars a calendar quarter, and
where prizes do not exceed four thousand dollars a session shall obtain a
Class E license from the department at a cost of five hundred dollars. If
the gross bingo proceeds for any calendar quarter exceed thirty thousand
dollars, the person or organization within ten days is required to obtain a
Class B license from the department and comply with all requirements of
a Class B license. The holder of a Class E license may not conduct more
than one bingo session a week.
Section 12-21-4030. (A) A promoter or organization may not impose
a charge, other than as provided in subsection (B), on a player other than
at least the face value of each card sold to play bingo.
(B)(1) A holder of a Class AA license shall impose an entrance fee of
eighteen dollars;
(2) A holder of a Class B license shall impose an entrance fee of
five dollars.
(3) A holder of a Class D or Class E license may impose a five
dollar entrance fee. The entrance fees collected are not required to be
remitted as taxes and are not included in gross proceeds for purposes of
the prize limitations provided in Section 12-21-4000(12)(a).
Section 12-21-4040. No nonprofit organization may hold more than
one bingo license.
Section 12-21-4050. Only one nonprofit organization may operate or
cause the operation of bingo in a building. This section applies to all
buildings regardless of ownership, of primary use, or of original use.
Section 12-21-4060. A person who has been convicted of violating a
state or federal criminal statute relating to gaming or gambling, or who
has been convicted of any other crime that has a sentence of two or more
years, or where applicable, whose promoter's license has been revoked by
the department is not permitted to manage or conduct a game or assist in
any manner with the bingo operation.
Section 12-21-4070. No license, as provided by this article, may be
issued to an organization, promoter, or individual that has not been
domiciled in this State for at least three years immediately preceding the
license application. In the case of the organization, the organization must
also have been active in this State for at least three years.
Section 12-21-4080. (A) Upon completion of the session, the
promoter shall deliver to the representative member of the organization
the gross proceeds from the session less the amount paid out as prizes
and collected as entrance fees.
(B) The representative member of the nonprofit organization shall
deposit the funds into the bingo checking or savings account as described
in Section 12-21-4090. For purposes of this section, a member of the
licensed nonprofit organization is any individual who holds a full
membership in the organization as defined by the organization's
constitution, charter, articles of incorporation or by-laws and has been a
member of the organization for at least one year. The term also includes
those individuals who are members of an auxiliary or recognized junior
affiliate of the parent organization.
Section 12-21-4090. (A) The provisions of this section apply to the
licensed nonprofit organization which is responsible for the special
checking and savings accounts established by this section.
(B) The organization shall control all deposits, transfers, and
disbursements from these accounts, including the payment of
compensation to the promoter and employees of the promoter or
organization working the bingo games.
(C) An organization receiving an annual license to conduct bingo shall
establish and maintain one regular checking account designated the `bingo
account' and also may maintain an interest-bearing savings account
designated the `bingo savings account'. All funds derived from the
conduct of bingo, less the amount awarded as cash prizes, must be
deposited in the bingo account. No other funds may be deposited in the
bingo account. Deposits must be made no later than the next business
day following the day of the bingo occasion on which the receipts were
obtained. All accounts must be maintained in a financial institution in
this State.
(D) Funds from the bingo account must be withdrawn by preprinted,
consecutively-numbered checks or withdrawal slips, jointly signed by a
properly authorized representative of the licensed nonprofit organization
and promoter and made payable to a person or organization. Checks
must be imprinted with the words `Bingo Account' and must contain the
organization's bingo license number on the face of the check. There also
must be noted on the face of the check or withdrawal slip the nature of
the payment made. No check or slip may be made payable to `cash',
`bearer', or a fictitious payee. All checks, including voided checks and
slips, must be kept and accounted for.
(E) Funds received by the nonprofit organization from the department
as a result of the sale of bingo cards must be deposited into a separate
account and maintained separately from bingo funds and the bingo
account referenced in this section.
(F) Checks drawn on the bingo account must be for one or more of
the following purposes:
(1) payment of necessary and reasonable bona fide expenses
incurred and paid in connection with the conduct of bingo;
(2) payment of necessary and reasonable compensation incurred
and paid in connection with the conduct of bingo for personnel and
promoters managing and conducting the game;
(3) disbursement of net proceeds derived from the conduct of bingo
to charitable purposes or the purpose for which the organization was
established;
(4) transfer of net proceeds derived from the conduct of bingo to
the bingo savings account pending a disbursement to a charitable
purpose.
(G) The disbursement of net proceeds on deposit in the bingo savings
account to a charitable purpose must be made by transferring the intended
disbursement back into the bingo account and then withdrawing the
amount by a check drawn on that account as prescribed in this
section.
(H) Proceeds given to a person or an organization for a charitable
purpose must not be used by the donee:
(1) to pay for services rendered or materials purchased in
connection with the conducting of bingo by the donor organization;
or
(2) for a cause, an act, or an activity that does not constitute a
charitable purpose or other purpose for which the organization was
established if the activity is conducted by the donor organization.
(I) Gross proceeds derived from the conduct of bingo must not be
commingled with other funds of the licensed organization.
(J) A licensed organization that has stopped conducting bingo and has
unexpended bingo funds shall disburse those funds to a charitable
purpose or other purposes for which the organization was established
within one year after the date it ceases to conduct bingo. However,
unexpended funds to be used for a building fund may be retained for this
purpose. The organization shall file a report with the department
showing the establishment of a building fund, the amount of money from
the special account to be retained for that purpose, and other information
the department may consider necessary. If the organization is identified
as a fictitious charity after originally licensed, any payments due the
charity revert to the general fund.
(K) Net proceeds must not be used directly or indirectly by a licensed
authorized nonprofit organization to support or oppose a candidate or
slate of candidates for public office, to support or oppose a measure
submitted to a vote of the people, or to influence or attempt to influence
legislation. The records of these accounts are available for inspection,
upon demand, by the department.
Section 12-21-4100. (A) Each licensed nonprofit organization
conducting bingo games shall submit quarterly to the department on the
last day of the month following the close of the calendar quarter a report
under oath containing the following information:
(1) the amount of the gross proceeds derived from the games;
(2) each item of expense incurred or paid;
(3) each item of an expenditure made or to be made, with a
detailed description of the merchandise purchased or the services
rendered;
(4) the net proceeds derived from the games;
(5) the use to which the proceeds have been or are to be
applied;
(6) a list of prizes offered and given, with their respective
values;
(7) excess proceeds as provided in Section 12-21-4000(12)(b);
(8) number of players at each session;
(9) other information considered necessary by the department.
(B) Each licensed nonprofit organization shall maintain records to
substantiate the contents of each report.
(C) The department may revoke the license of an organization that
fails to file the reports and information required in this Article.
Section 12-21-4110. The department shall perform all functions
incident to the administration, collection, enforcement, and operation of
the tax and regulations imposed under this article. Local law
enforcement officials are authorized to enforce the hours of operation.
Section 12-21-4120. A person who is found in violation of the
provisions of this article and assessed additional taxes, penalties, fines, or
interest is entitled to a conference upon request.
Section 12-21-4130. The department may seize bingo equipment or
cards found in the possession of a promoter, a licensed nonprofit
organization, or player which have been manufactured, altered, or
changed in a manner so as to no longer make bingo a game of chance as
defined in this article.
Section 12-21-4140. A penalty of up to five thousand dollars and
revocation of the license at the discretion of the department may be
imposed for a violation of this article. Each violation and each day in
violation of a provision of this article constitutes a separate offense.
Section 12-21-4150. A person who poses as a bingo player or a
person who conspires to have a person pose as a bingo player with the
intent to defraud regular customers of the game, or a person who is using
unauthorized bingo supplies, is guilty of a felony and, upon conviction,
must be imprisoned not more than five years or fined not more than five
thousand dollars, or both.
Section 12-21-4160. The department or its designated agent or
representative may enter upon the premises where bingo is played or the
business premises of another person and examine books, papers, records,
memoranda, commodities, or other things bearing upon the amount of
taxes or fees payable or the proper conduct of a game and secure from
the taxpayer or other person information directly or indirectly for the
enforcement of this article.
Section 12-21-4170. The department, in its discretion, may
compromise a criminal or civil action arising under the provisions of this
article either before or after prosecution has begun.
Section 12-21-4180. The collection of the taxes and fees imposed by
this article must not be stayed or prevented by an injunction, writ, or
order issued by a court or its judge.
Section 12-21-4190. The department shall charge and retain sixteen
and one-half cents for each dollar of face value for each bingo card sold
except sales to Class C licensees pursuant to this article. The revenue
retained must be distributed as follows:
(1) twenty-six percent of the revenue must be distributed to the
sponsoring charity for which the bingo cards were purchased. The
department shall make the distribution to the sponsoring charity by the
last day of the next month following the month the revenue was
collected. Distributions under this subsection must be reduced by any
delinquent debts as defined in the Setoff Debt Collection Act;
(2) seventy-four percent pursuant to Section 12-21-4200.
Section 12-21-4200. The first nine hundred forty eight thousand
dollars of the total revenues derived from the provisions of this article
which is collected from bingo within this State must be deposited
monthly in twelve equal amounts into an account in the Office of the
State Treasurer and called `Division On Aging Senior Citizen Centers
Permanent Improvement Fund'. All interest earned on monies in the
Division on Aging Senior Citizen Centers Permanent Improvement Fund
must be credited to this fund. Of the remaining revenue:
(1) Seven and five one-hundredths percent of the annual revenue
derived from the provisions of Section 12-21-4190(2) must be deposited
with the State Treasurer to be credited to the account of the Division on
Aging, Office of the Governor. This amount must be allocated to each
county for distribution in home community services for the elderly as
follows:
(a) One-half of the funds must be divided equally among the
forty-six counties.
(b) The remaining one-half must be divided based on the
percentage of the county's population age sixty and above in relation to
the total state population using the latest report of the United States
Bureau of the Census.
The aging service providers receiving these funds must be agencies
recognized by the Division on Aging of the Office of the Governor and
the area agencies on aging.
(2) Twenty and eight-tenths percent of the annual revenue derived
from the provisions of Section 12-21-4190(2) must be deposited by the
State Treasurer in a separate fund for the Department of Parks,
Recreation and Tourism entitled the Parks and Recreation Development
Fund. Interest earned by this fund must be added to it and credited to its
various accounts in the same proportion that the annual allocation to each
account bears to the total annual distribution to the fund. Unexpended
amounts in the various fund accounts must be carried forward to
succeeding fiscal years except as provided in Section 51-23-30. Fund
proceeds must be distributed as provided in Chapter 23 of Title 51.
(3) Seventy-two and fifteen one-hundredths percent of the annual
revenue derived from the provisions of Section 12-21-4190(2) must be
deposited with the State Treasurer and credited to the general fund.
Section 12-21-4210. Bingo cards may not be sold or transferred
between licensed organizations, between distributors, or between
manufacturers. All unused bingo cards may be returned to the
department for refund and destruction. The department is required to
refund only the amount retained by the department previously based on
the face value of each card and does not include the manufacturer's price
or transportation charges to the consignee at destination and such
additional charges.
Section 12-21-4220. Bingo cards shall meet the design and
requirements of the department. The use of the cards is evidence of the
payment of the license tax imposed upon bingo cards by this article.
Section 12-21-4230. Manufacturers, promoters, organizations, or
distributors of bingo cards are required to furnish bond in an amount
approved by the department to ensure faithful compliance with the
regulations of the department.
Section 12-21-4240. Each manufacturer, distributor, organization, or
promoter must be licensed to manufacture or distribute, or use bingo
cards. The department shall charge an annual license fee of five
thousand dollars for each manufacturer and two thousand dollars for each
distributor. A license issued by the department under this section is
renewable annually unless canceled or terminated. No license issued
under this section is transferable or assignable.
Section 12-21-4250. A bingo card manufacturer may not be licensed
to operate a game, as a bingo card distributor, or as a promoter. A bingo
card distributor may not be a manufacturer, a licensed nonprofit
organization, or promoter. A licensed nonprofit organization or a
promoter may not be a manufacturer or distributor.
Section 12-21-4260. A person licensed as a bingo manufacturer,
distributor, organization, or promoter shall submit to a background
investigation. This includes each partner of a partnership and each
director and officer and all stockholders of ten percent or more in a
parent or subsidiary corporation of a bingo card manufacturer, distributor,
organization, or promoter. The department has sole discretion to issue a
license based on the background investigation.
Section 12-21-4270. Each licensed nonprofit organization or
promoter, in the name of a licensed organization, may obtain bingo cards
approved by the department by making application and remitting sixteen
and one-half percent of the total face value of the cards to be purchased.
Payment to the State for the issuance of bingo cards must be made by
certified check within fifteen days of receipt of the application. Upon
receipt of the application, the department shall notify a licensed
distributor, who has purchased bingo cards from a licensed manufacturer
that the licensed distributor may release the face value of the bingo cards
requested to the licensed organization or promoter. However, no
additional bingo cards must be released until payment is received for the
prior application of bingo cards. The department is required to set forth
procedures to ensure that there is a crosscheck between manufacturers,
distributors, and licensed nonprofit organizations or promoters. A
quarterly return is required by each manufacturer, distributor, and
licensed nonprofit organization or promoter on or before the last day of
the month following the close of the calendar quarter outlining those
items the department determines necessary to verify the sale and
distribution of bingo cards. The sale of bingo cards and entrance fees
provided by Section 12-21-4030 are not subject to the admissions tax
provided by Section 12-21-2420.
Section 12-21-4280. (A) The department may revoke a license issued
under this article if it finds that a licensed nonprofit organization is not in
compliance with the exemption requirements of the Internal Revenue
Code.
(B) A license revoked under this section must not be reissued until a
new application is made and the department determines that the applicant
is complying with the applicable provisions of the Internal Revenue
Code.
(C) The department may promulgate regulations to enforce this
section.
Section 12-21-4295. Proceeds after expenses derived from the game
of bingo within South Carolina must not be expended for the benefit of
charitable organizations located outside this State."
Bingo prizes deductible
SECTION 2. Section 12-6-1140 of the 1976 Code, as added by Act
76 of 1995, is further amended by adding an appropriately lettered item
to read:
"( ) Bingo prizes and winnings as allowed under the game of
bingo provided in Article 24, Chapter 21 of this title."
Licenses to expire
SECTION 3. Regardless of the date of issue and license period, all
bingo licenses issued pursuant to Article 23, Chapter 21, Title 12 of the
1976 Code expire after September 30, 1997.
Proceedings saved
SECTION 4. All proceedings pending and rights and liabilities
existing, acquired, or incurred at the time this act takes effect are saved
and may be consummated according to the law in force when they were
commenced. This act may not be construed to affect any prosecution
pending or begun before the effective date of this act.
Article repealed
SECTION 5. Article 23, Chapter 21, Title 12 of the 1976 Code is
repealed.
Time effective
SECTION 6. This act takes effect October 1, 1997.
In the Senate House
____________________________________________.
______________________________________________
President of the Senate
______________________________________________
Speaker of the House of Representatives
Approved the ____________ day of ________________________,
1996.
______________________________________________
Governor
Printer's Date -- May 15, 1996 -- S.
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