Current Status Bill Number:672 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970417 Primary Sponsor:Rankin All Sponsors:Rankin Drafted Document Number:kgh\15140htc.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Coin-operated devices, premises' licenses, annual owner license requirements; Gambling, Taxation, Political Subdivisions
Body Date Action Description Com Leg Involved
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Senate 19970417 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-2729 SO AS TO IMPOSE REQUIREMENTS FOR THE ISSUE OF THE PREMISES' LICENSES REQUIRED PURSUANT TO THIS ACT AND PROVIDE A CIVIL PENALTY FOR VIOLATIONS; TO AMEND SECTION 12-21-2728, AS AMENDED, RELATING TO OPERATOR'S LICENSES FOR COIN-OPERATED DEVICES, SO AS TO REQUIRE AN OWNER/OPERATOR'S LICENSE ANNUALLY FOR ANY BUSINESS IN WHICH ARE LOCATED VIDEO GAMES WITH A FREE PLAY FEATURE FOR BUSINESSES IN ANY COUNTY IN WHICH AT LEAST NINE HUNDRED THOUSAND DOLLARS IN ACCOMMODATIONS TAXES HAVE BEEN COLLECTED IN ANY FISCAL YEAR AND PROVIDE CIVIL PENALTIES FOR VIOLATIONS, AND TO PROVIDE FOR THE SEVERABILITY OF THE PROVISIONS OF THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 19, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2729. (A) The department may not issue a license required under Section 12-21-2728(B) to any person unless the person, or in case of a partnership, corporation, limited liability company, or similar entity, all principals of the entity, is of good moral character. To be of good moral character, the person may not have been, within the past ten years, convicted of a state or federal offense relating to gaming or gambling or a crime that has a sentence of imprisonment of two or more years or have had revoked any license issued under this article as a principal of a business or entity.
A principal of a business or entity means a person who is described in any one or more of the following items:
(1) An officer of the business or entity which owns the business;
(2) A partner, other than a limited partner, who cannot exercise any management control;
(3) A manager of a limited liability company which is managed by managers; and
(4) A member of a limited liability company which is not managed by members.
(B) The department may not issue a license under Section 12-21-2728(B) unless the location of the proposed single place or premises is a proper location. In determining whether or not a location is a proper one, the following factors may be considered:
(1) the location's proximity to residences;
(2) the location's proximity to houses of worship, schools, playgrounds, parks, and daycare centers, regardless of the requirements of Section 12-21-2793;
(3) the likelihood that large crowds will gather from time to time with attendant breaches of the peace;
(4) adequate police protection;
(5) the concentration in the area of other establishments, whether existing or proposed, for the operation of devices described in Section 12-21-2720(A)(3), regardless of the requirements of Section 12-21-2804(A);
(6) all other pertinent information deemed appropriate or submitted for consideration.
(C) The person applying for the license required by Section 12-21-2728(B) must place a notice at least once a week for three consecutive weeks in a newspaper of general circulation in the area in which the person seeks to locate the proposed single place or premises.
(D) The person applying for the license required by Section 12-21-2728(B) must also place a notice by displaying a sign for fifteen consecutive days at the site of the proposed single place or premises. The sign must:
(1) state that a license for the operation of gaming machines is being sought and that the establishment will be able to issue cash payouts for winnings from these machines;
(2) tell an interested person where to send a written protest of the application;
(3) be in bold print;
(4) cover a space at least eleven inches wide and eight and one-half inches high;
(5) be posted and removed by an agent of the department.
(E) If the department receives any protests to the issuance of the license under Section 12-21-2728(B) for the proposed single place or premises, the matter becomes a contested case under Section 1-23-380. Any person filing a protest is a party to the action.
(F) A person required to obtain the license required by Section 12-21-2728(B) who operates a location without the license required by Section 12-21-2728(B), or after the license required by Section 12-21-2728(B) has been revoked and any principle of an entity who allows the operation of a location without the license required by Section 12-21-2728(B), or after the license required by Section 12-21-2728(B) has been revoked is subject to the civil penalty provided in Section 12-21-2804(F)."
SECTION 2. Section 12-21-2728 of the 1976 Code, as last amended by Act 501 of 1992, is further amended to read:
"Section 12-21-2728. (A)(1) In addition to all other licenses required by this chapter, a person who owns or operates devices described in Sections 12-21-2720 and 12-21-2730 shall obtain an operator's license biennially as follows:
(1)(a) fifty dollars for devices in Sections 12-21-2720(A)(1) and 12-21-2730;
(2)(b) two hundred dollars for devices in Section 12-21-2720(A)(2);
(3)(c) two thousand dollars for devices in Section 12-21-2720(A)(3).
(B)(2) Only one license is required regardless of the number or type of devices owned or operated, and the cost of that license is the highest fee enumerated in this section for a device owned or operated.
(C)(3) The licenses provided by this section are subject to Section 12-21-2734 and are a condition precedent to engaging in or the continuing operation of machines described in this chapter. Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(B)(1) In addition to the retail sales tax license required by Section 12-21-2703 and all other licenses required by law, a person who owns a business where devices described in Section 12-21-2720(A)(3) are located and available for play and which is located in a county in which at least nine hundred thousand dollars in revenues from the tax imposed pursuant to Section 12-36-2630(3) was collected in any one fiscal year must apply for and obtain an owner/operator license annually for each single place or premises located in the county.
The license must be renewed before January first of each year.
No device described in Section 12-21-2720(A)(3) may be placed in the single place or premises until the license required in this subsection (B) has been issued by the department.
The department, in addition to assessing the machine owner the civil penalty under Section 12-21-2804(F) for a violation of Section 12-21-2804(A), shall assess the licensee under this subsection a separate civil penalty not to exceed five thousand dollars for a violation of Section 12-21-2804(A) at the licensee's location.
(2) If a person's owner/operator license is revoked under the provisions of Section 12-54-90 or if a person is penalized under the provisions of Section 12-21-2729, the person may not be issued an owner/operator license for a period of two years and the person may not have a financial interest, either direct or indirect, in any business in which the owner of the business is required to obtain an owner/operator license under this subsection.
(3) The licenses provided by this subsection are a condition precedent to engaging in or continuing in the operation of devices described in Section 12-21-2720(A)(3).
(4) The license imposed by this subsection may not be transferred to another person or entity or to any other single place or premises."
SECTION 3. If any provision of this act or its application is held invalid, the invalidity shall not affect other provisions or applications of the 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 on the first day of the third month following approval by the Governor.