Printed Page 3490, May 30
| Printed Page 3510, May 30
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Printed Page 3490, May 30
| Printed Page 3510, May 30
| Renumber sections to conform.
Renumber subsections to conform.
Amend title to conform.
Senator HUTTO explained the amendment.
Senator HUTTO moved that the amendment be adopted.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Boan Bryan Cork Courson Courtney Drummond Elliott Fair Ford Giese Glover Gregory Hayes Holland Hutto Jackson Land Lander Leatherman Leventis Martin Matthews McConnell McGill Mescher Moore O'Dell Passailaigue Patterson Peeler Rankin Reese Richter Rose Russell Ryberg Saleeby Setzler Short Smith, G. Smith, J.V. Thomas Waldrep Washington Wilson
The amendment was adopted.
H. 4557 -- Rep. Kirsh: 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 AMEND SECTION 12-8-530, AS AMENDED, RELATING TO INCOME TAX WITHHOLDING, SO AS TO EXEMPT BINGO PRIZES AND WINNINGS FROM WITHHOLDING, 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.
Senator GREG SMITH asked unanimous consent to make a motion to take up the Bill for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.
Senator GREG SMITH proposed the following Amendment No. 1 (JIC\6107HTC.96), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Chapter 21, Title 12 of the 1976 Code is amended by adding:
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 an entity which is organized and operated exclusively for charitable, religious, or fraternal purposes which is exempt from federal income taxes pursuant to Internal Revenue Code Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19).
(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.
(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 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:
(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 within the last twenty years 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;
(4) a notarized statement as to whether or not the applicant for a promoter's license or any of his employees have been convicted within the last twenty years 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 12-21-3955. If a nonprofit organization intending to operate a Class AA or B license does not contract with an outside promoter, the organization shall designate a member as the promoter.
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
(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.
(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) Reserved.
(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
(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 eight 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
(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 of more than 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 within the last twenty years 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
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