Indicates Matter Stricken
Indicates New Matter
The House assembled at 10:00 A.M.
Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark, as follows:
Almighty God, as we turn to waiting tasks, give to us who serve in this chamber the wisdom and the desire sufficient for this day. Through the toiling hours, in tense and testing times, keep our minds attuned to the way You would have us to go. Strengthen our weakness, calm our anxieties, and save us from cynicism. When we have done faithfully the work You would have us to do, may we leave the results to Your higher judgement, and take supreme satisfaction of having done our best. To You, Lord, we give our praise and thanksgiving. Amen.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.
After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.
Rep. H. BROWN moved that when the House adjourns, it adjourn in memory of Carl T. Floyd of Goose Creek, which was agreed to.
The following was received.
Memorandum To: Clerk of the House
Clerk of the Senate
Re: Committee Hearings, May 5, 1999
The Committee to Screen Candidates for Boards of Trustees of State Colleges and Universities finds the following candidates for Boards of Trustees qualified. Background reports from the State Law Enforcement Division show no felony charges against any of the candidates.
1st District, Seat 1 Mr. George D. Anderson (Myrtle Beach)
3rd District, Seat 6* Ms. Patricia C. Edmonds (Greenwood)
Mr. Joel E. Hill (Seneca)
* unexpired term
On motion of Rep. PHILLIPS, with unanimous consent, the report was ordered printed in the Journal.
The following was received.
Columbia, S.C., May 4, 1999
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to H. 3158:
H. 3158 (Word version) -- Reps. Campsen, Knotts, R. Smith, Loftis, Barfield, Tripp, Altman, Wilder, Easterday, Edge, Leach, Harrison, Robinson, Wilkins, J. Brown, Miller, Hamilton, Barrett, Rice, Cato, J. Smith, Delleney, Gilham, Lourie, Rhoad, Bailey, Sharpe, Kirsh, Bales, Jennings, M. Hines, Neilson, Kennedy, Ott, Cobb-Hunter, Hayes, Gourdine, J. Hines, Inabinett, Breeland, Lee, Moody-Lawrence, F. Smith, McMahand, Mack, Maddox, Riser, Simrill and Sandifer: A BILL TO AMEND TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF GOVERNMENT, BY ADDING CHAPTER 32 SO AS TO ENACT THE "SOUTH CAROLINA RELIGIOUS FREEDOM ACT" UNDER WHICH THE STATE OF SOUTH CAROLINA AND ANY POLITICAL SUBDIVISION OF THE STATE IS PROHIBITED FROM BURDENING A PERSON'S CONSTITUTIONAL EXERCISE OF RELIGION EXCEPT UNDER CERTAIN CONDITIONS AND UNDER WHICH A PERSON WHOSE EXERCISE OF RELIGION HAS BEEN BURDENED IN VIOLATION OF THIS CHAPTER MAY ASSERT THAT VIOLATION AS A CLAIM OR DEFENSE IN A JUDICIAL PROCEEDING AND OBTAIN APPROPRIATE RELIEF AGAINST THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
President
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:
H. 3928 (Word version) -- Rep. Cato: A BILL TO AMEND SECTION 38-33-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF HEALTH MAINTENANCE ORGANIZATIONS, SO AS TO PROVIDE THAT THOSE POWERS INCLUDE THE OFFERING OF AN OUT-OF NETWORK COVERAGE UNDER A POINT OF SERVICE OPTION, AND PROVIDE FOR THE PROMULGATION OF REGULATIONS; AND TO AMEND SECTION 38-33-80, AS AMENDED, RELATING TO THE PROVISION THAT EVERY ENROLLEE IN A HEALTH MAINTENANCE ORGANIZATION IS ENTITLED TO EVIDENCE OF COVERAGE, SO AS TO PROVIDE THAT FOR A POINT OF SERVICE OPTION OFFERED JOINTLY BY A HEALTH MAINTENANCE ORGANIZATION AND AN INSURER, ONLY ONE EVIDENCE OF COVERAGE IS REQUIRED.
Ordered for consideration tomorrow.
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report on:
H. 3865 (Word version) -- Reps. Cato, Mason, Cobb-Hunter, Knotts, Scott, Trotter, Cooper, Allison, Breeland, G. Brown, H. Brown, J. Brown, Davenport, Emory, Fleming, Harrison, Kelley, Kirsh, Klauber, Lanford, Lee, Littlejohn, Martin, M. McLeod, Meacham, Miller, Neilson, Rhoad, Riser, Robinson, Sandifer, Sharpe, R. Smith, Stille, Stuart, Townsend, Tripp, Walker, Whipper, Witherspoon, Simrill and Harvin: A BILL TO AMEND SECTIONS 34-26-300, 34-26-310, 34-26-500, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FORMATION OF CREDIT UNIONS AND PERSONS WHO ARE ELIGIBLE TO BE MEMBERS THEREOF SO AS TO FURTHER PROVIDE FOR THOSE PERSONS WHO MAY FORM A CREDIT UNION AND WHO MAY BE MEMBERS OF A CREDIT UNION; AND TO AMEND SECTION 34-26-860, AS AMENDED, RELATING TO LOANS MADE BY CREDIT UNIONS SECURED BY REAL ESTATE SO AS TO ADD VACATION HOMES TO THE AUTHORIZED LIST OF HOMES ON WHICH SECURED LOANS MAY BE MADE.
Ordered for consideration tomorrow.
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:
H. 3735 (Word version) -- Rep. Bailey: A BILL TO AMEND CHAPTER 79, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA REGULATION OF BURGLAR AND FIRE ALARM SYSTEM BUSINESSES ACT, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE REGULATION OF THE ALARM SYSTEM INDUSTRY.
Ordered for consideration tomorrow.
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:
H. 3908 (Word version) -- Rep. Bailey: A BILL TO AMEND CHAPTER 29, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNIFORM STANDARDS CODE FOR MANUFACTURED HOUSING, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONS AND OCCUPATIONS ADMINISTERED UNDER THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO PROVIDE FOR THE LICENSURE AND REGULATION OF MANUFACTURED HOME MANUFACTURERS, RETAIL DEALERS, SALES PERSONS, CONTRACTORS, INSTALLERS, AND REPAIRERS.
Ordered for consideration tomorrow.
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:
S. 398 (Word version) -- Senator Setzler: A BILL TO AMEND TITLE 40, CHAPTER 22 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROFESSIONAL ENGINEERS AND LAND SURVEYORS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK OF TITLE 40, CHAPTER 1 FOR BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF ENGINEERS AND LAND SURVEYORS INCLUDING, BUT NOT LIMITED TO, AUTHORIZING THE BOARD TO REGULATE CROSS-BORDER ENGINEERING.
Ordered for consideration tomorrow.
Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:
S. 337 (Word version) -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: A BILL TO AMEND CERTAIN PROVISIONS OF CHAPTER 29 OF TITLE 34 AND CHAPTERS 1, 2, 3, AND 4 OF TITLE 37 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONSUMER CREDIT TRANSACTIONS, SO AS TO, AMONG OTHER THINGS, REQUIRE THAT THE AMOUNT OF LIFE INSURANCE COVERAGE BE BASED UPON NET COVERAGE PLUS SIX MONTHLY PAYMENTS FOR LOANS WITH A TERM IN EXCESS OF SIXTY MONTHS; REQUIRE THE DEFINITION OF DISABILITY TO BE BASED UPON THE INSURED'S OWN OCCUPATION ON THE DATE OF DISABILITY FOR THE FIRST YEAR AND AN OCCUPATION WITH SUBSTANTIALLY EQUIVALENT REMUNERATION THEREAFTER; LOWER THE RATES FOR CREDIT LIFE INSURANCE; ADD A PROVISION RELATING TO UNFAIR CLAIMS PRACTICES; REQUIRE THAT CREDIT INSURANCE BE PORTABLE; REQUIRE THAT A POLICY MAY NOT BE CONTESTED UNLESS THE MISREPRESENTATION DIRECTLY CONTRIBUTES TO THE CONTINGENCY OR EVENT BY WHICH THE CLAIM ARISES; LOWER THE MAXIMUM PREMIUM FOR NON-FILING INSURANCE; ENHANCE CONSUMER DISCLOSURES; PROHIBIT NON-FILING INSURANCE AS A PERMITTED CHARGE FOR PURCHASE MONEY SECURITY INTEREST LOANS BEYOND APRIL 1, 2000; PROHIBIT A CHARGE FOR AND FILING OF A UCC SECURITY FORM FOR COLLATERAL THAT CANNOT BE USED AS SECURITY FOR A LOAN PURSUANT TO LAW; AND TO REQUIRE THAT IT MUST BE THE CONSUMER'S CHOICE TO PURCHASE INSURANCE FOR LESS THAN THE LENGTH OF THE LOAN.
Ordered for consideration tomorrow.
Rep. J. BROWN, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report on:
S. 454 (Word version) -- Senator Land: A BILL TO AMEND SECTION 40-36-260, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSURE OF OCCUPATIONAL THERAPISTS AND OCCUPATIONAL THERAPY ASSISTANTS, SO AS TO CLARIFY AND REVISE THE REQUIREMENTS FOR REINSTATEMENT OF INACTIVE LICENSES IN THE PRACTICE OF OCCUPATIONAL THERAPY.
Ordered for consideration tomorrow.
Rep. J. BROWN, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report on:
S. 333 (Word version) -- Senator Setzler: A BILL TO AMEND SECTION 40-30-180, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSE RENEWAL FOR MASSAGE/BODY WORK THERAPISTS SO AS TO EXEMPT FROM CONTINUING EDUCATION THERAPISTS WHO HAVE BEEN IN PRACTICE FOR TWENTY-FIVE YEARS CONTINUOUSLY; TO AMEND SECTION 40-30-190 RELATING TO PROMULGATION OF REGULATIONS CONCERNING CONTINUING EDUCATION REQUIREMENTS SO AS TO CLARIFY THESE REQUIREMENTS.
Ordered for consideration tomorrow.
Rep. J. BROWN, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report on:
S. 679 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, OFFICE OF STATE FIRE MARSHAL, RELATING TO FIRE PREVENTION AND LIFE SAFETY REGARDING BUILDINGS, USE OF HAZARDOUS SUBSTANCES, EXPLOSIVES, SERVICE STATIONS, LIQUEFIED PETROLEUM GAS, TENTS, GRANDSTANDS AND AIR-SUPPORTED STRUCTURES, FIRE EXTINGUISHERS, LOCAL DETENTION FACILITIES, AND PROXIMATE AUDIENCE PYROTECHNICS DESIGNATED AS REGULATION DOCUMENT NUMBER 2410, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Ordered for consideration tomorrow.
Rep. J. BROWN, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report with amendments on:
S. 199 (Word version) -- Senators J. Verne Smith, Wilson, Giese and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-2915 SO AS TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE A REGISTRATION STATEMENT FOR A RELIGIOUS DAY CARE CENTER WHEN REQUIREMENTS ARE MET AND TO REQUIRE THE CENTER OPERATOR TO DISPLAY THE REGISTRATION AND USE ITS REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2700, AS AMENDED, RELATING TO DEFINITIONS UNDER DAY CARE LICENSING, SO AS TO REVISE THE DEFINITIONS OF "CHILD DAY CARE FACILITIES", "GROUP DAY CARE HOME", AND "FAMILY DAY CARE HOME", AND TO ADD DEFINITIONS; TO AMEND SECTION 20-7-2780, RELATING TO LICENSES OF CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REQUIRE STATING THE LICENSE NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2860, AS AMENDED, RELATING TO FAMILY DAY CARE HOME REGISTRATIONS, SO AS TO REQUIRE STATING THE REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2900, AS AMENDED, RELATING TO REGISTRATION OF CERTAIN CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE THEM TO COMPLY WITH INSPECTION PROCEDURES AND WITH REQUIREMENTS FOR FLOOR SPACE, CHILD-STAFF RATIOS, AND STAFF TRAINING; TO AMEND SECTION 20-7-2910, RELATING TO REGISTRATION AND INSPECTIONS OF CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE INSPECTIONS TO BE CONDUCTED BEFORE RENEWAL RATHER THAN ANNUALLY; TO AMEND SECTION 20-7-2920, AS AMENDED, RELATING TO INJUNCTIONS AGAINST CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REVISE CONDITIONS FOR SEEKING AN INJUNCTION AGAINST AN OPERATOR; AND TO AMEND SECTION 20-7-3030, RELATING TO DECLARATORY ORDERS OF THE DEPARTMENT OF SOCIAL SERVICES CONCERNING CONSTRUCTION OR RENOVATIONS OF A FACILITY, SO AS TO DELETE THE PROVISION PROHIBITING AN APPEAL OF THESE ORDERS AND REQUIRE THE DEPARTMENT TO PROVIDE CONSULTATION TO ADDRESS ISSUES OF COMPLIANCE.
Ordered for consideration tomorrow.
Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report on:
H. 3810 (Word version) -- Rep. Sheheen: A BILL TO AMEND SECTION 2-15-61, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ACCESS OF THE LEGISLATIVE AUDIT COUNCIL TO STATE AGENCY RECORDS, SO AS TO GRANT SUBPOENA POWERS TO THE COUNCIL AND TO PROVIDE THAT THE COUNCIL'S INFORMATION REQUESTS BE SENT TO THE CHIEF ADMINISTRATIVE OFFICER OF THE AGENCY BEING EXAMINED AND THAT WILFUL NONCOMPLIANCE WITH THAT REQUEST IS MISFEASANCE IN OFFICE; TO AMEND SECTION 2-15-120, AS AMENDED, RELATING TO THE CONFIDENTIALITY OF RECORDS OF THE LEGISLATIVE AUDIT COUNCIL, SO AS TO PROVIDE THAT AUDIT WORKING PAPERS ARE CONFIDENTIAL AND NOT SUBJECT TO PUBLIC DISCLOSURE AND TO PROVIDE THAT THE GENERAL ASSEMBLY, ITS STAFF, AND OTHER ENTITIES ARE SUBJECT TO THE CONFIDENTIALITY REQUIREMENTS AND PENALTIES WHILE PERFORMING AUDIT COMPLIANCE REVIEW DUTIES.
Ordered for consideration tomorrow.
Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report with amendments on:
H. 3826 (Word version) -- Rep. Battle: A BILL TO AMEND CHAPTER 17, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OFFENSES AGAINST PUBLIC POLICY, BY ADDING SECTION 16-17-505, SO AS TO PROVIDE FOR THE OFFENSE OF SELLING OR HOLDING FOR SALE A PACKAGE OF CIGARETTES THAT VIOLATES FEDERAL LAW IN REGARD TO LABELS, PACKAGING, OR OTHER REQUIREMENTS, TO PROVIDE THAT THE ATTORNEY GENERAL MAY SEIZE AND DESTROY THE ILLEGAL PACKAGE, TO PROVIDE THAT THE DEPARTMENT OF REVENUE MAY REVOKE THE LICENSE TO SELL TOBACCO OF A PERSON WHO SELLS ILLEGAL CIGARETTE PACKAGES, TO PROVIDE THAT SELLING CIGARETTE PACKAGES IN VIOLATION OF THIS SECTION IS AN UNFAIR TRADE PRACTICE, AND TO PROVIDE PENALTIES FOR VIOLATIONS.
Ordered for consideration tomorrow.
The following was taken up for immediate consideration:
H. 4034 (Word version) -- Rep. Wilkins: A HOUSE RESOLUTION EXTENDING THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO THE HONORABLE PETER BEATTIE, PREMIER OF THE STATE OF QUEENSLAND, AUSTRALIA, AND HIS PARTY, ON A DATE AND AT A TIME AS DETERMINED BY THE SPEAKER, FOR THE PURPOSE OF BEING RECOGNIZED AND HONORED BY THE HOUSE OF REPRESENTATIVES.
Be it resolved by the House of Representatives:
That the privilege of the floor of the House of Representatives be extended to the Honorable Peter Beattie, Premier of the State of Queensland, Australia, and his party, on a date and at a time as determined by the Speaker, for the purpose of being recognized and honored by the House of Representatives.
The Resolution was adopted.
The following was introduced:
H. 4035 (Word version) -- Rep. Wilkins: A CONCURRENT RESOLUTION RECOGNIZING THE HONORABLE PETER BEATTIE, PREMIER OF THE STATE OF QUEENSLAND, AUSTRALIA, AND WELCOMING HIM TO THE STATE OF SOUTH CAROLINA DURING HIS VISIT OF MAY 11-12, 1999.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4036 (Word version) -- Rep. G. Brown: A CONCURRENT RESOLUTION TO COMMEND BILL PINKNEY, A NATIVE OF DALZELL WHO NOW LIVES IN SUMTER, FOR HIS EXTRAORDINARILY SUCCESSFUL FORTY-SIX YEAR MUSICAL AND ENTERTAINMENT CAREER AS A VOCAL ARTIST AND AS THE CO-FOUNDER OF THE ORIGINAL "DRIFTERS".
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4037 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING MRS. LEOLA BROWN OF RICHLAND COUNTY ON THE OCCASION OF MOTHER'S DAY FOR HER EXCEPTIONAL DEVOTION TO HER FAMILY, FRIENDS, AND CHURCH.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
On motion of Rep. PHILLIPS, with unanimous consent, the following was taken up for immediate consideration:
S. 760 (Word version) -- Senators Wilson, Glover, Giese and Bryan: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 12, 1999, AS THE TIME FOR THE HOUSE OF REPRESENTATIVES AND THE SENATE TO MEET IN JOINT SESSION IN THE HALL OF THE HOUSE OF REPRESENTATIVES FOR THE PURPOSE OF ELECTING MEMBERS OF THE BOARDS OF TRUSTEES OF THE CITADEL, COASTAL CAROLINA UNIVERSITY, LANDER UNIVERSITY, SOUTH CAROLINA STATE UNIVERSITY, WIL LOU GRAY OPPORTUNITY SCHOOL, AND WINTHROP UNIVERSITY TO SUCCEED THOSE MEMBERS WHOSE TERMS EXPIRE IN 1999 OR WHOSE POSITIONS OTHERWISE MUST BE FILLED; AND TO ESTABLISH A PROCEDURE REGARDING NOMINATIONS AND NOMINATING AND SECONDING SPEECHES FOR THE CANDIDATES FOR THESE OFFICES DURING THE JOINT SESSION.
Be it resolved by the Senate, the House of Representatives concurring:
(1) That the House of Representatives and the Senate meet in joint session in the Hall of the House of Representatives at 12:00 noon, on Wednesday, May 12, 1999, for the purpose of electing members of the boards of trustees of The Citadel, Coastal Carolina University, Lander University, South Carolina State University, the Wil Lou Gray Opportunity School, and Winthrop University to succeed those members whose terms expire in 1999, or whose positions otherwise must be filled.
(2) That all nominations be made by the Chairman of the Joint Legislative Committee which screened the candidates for the above offices and that no further nominating nor any seconding speeches be made during the joint session by members of the General Assembly on behalf of any of the candidates.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
The following Bills were introduced, read the first time, and referred to appropriate committees:
H. 4038 (Word version) -- Rep. Howard: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-41-257 SO AS TO REQUIRE CERTAIN RETAIL MOTOR FUEL OUTLETS TO PROVIDE BULLET-PROOF GLASS AS A SHIELD AND PROTECTION FOR THEIR EMPLOYEE-ATTENDANTS.
Referred to Committee on Judiciary
H. 4039 (Word version) -- Reps. Stille and Barrett: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION BY ADDING CHAPTER 151 SO AS TO PROVIDE THAT THE UNIVERSITY OF SOUTH CAROLINA-AIKEN, A FOUR-YEAR REGIONAL BRANCH OF THE UNIVERSITY OF SOUTH CAROLINA, SHALL BECOME CAROLINA AIKEN UNIVERSITY ON JULY 1, 1999, AND SHALL BE A SEPARATE AND DISTINCT INSTITUTION OF HIGHER LEARNING OF THE STATE OF SOUTH CAROLINA, TO PROVIDE FOR A BOARD OF TRUSTEES WHICH SHALL GOVERN THE UNIVERSITY, TO PROVIDE FOR THE BOARD'S POWERS, DUTIES, AND FUNCTIONS, TO AUTHORIZE THE UNIVERSITY TO ISSUE REVENUE BONDS, AND TO PROVIDE FOR CERTAIN TRANSITIONAL PROVISIONS, INCLUDING THE TRANSFER OF PERSONNEL, ASSETS, AND LIABILITIES, TO PROVIDE FOR THE ISSUANCE OF STATE INSTITUTION BONDS TO REFUND OTHER STATE INSTITUTION BONDS ISSUED ON BEHALF OF THE UNIVERSITY OF SOUTH CAROLINA, AND TO PROVIDE FOR THE APPLICABILITY TO CAROLINA AIKEN UNIVERSITY OF CERTAIN PROVISIONS RELATING TO HIGHER EDUCATION BUDGETARY AND COST-RELATED MATTERS.
Referred to Committee on Education and Public Works
H. 4040 (Word version) -- Reps. Stille, Barrett, Davenport, Klauber, Leach, Littlejohn, Loftis, Mason, Taylor and Walker: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 59-53-25, 59-53-26, AND 59-53-27 SO AS TO PROVIDE THAT THE UNIVERSITY OF SOUTH CAROLINA LANCASTER CAMPUS, SALKEHATCHIE CAMPUS, UNION CAMPUS, BEAUFORT CAMPUS, AND SUMTER CAMPUS SHALL BE TRANSFERRED TO THE STATE BOARD FOR TECHNICAL AND COMPREHENSIVE EDUCATION AND ADMINISTERED AS TWO-YEAR INSTITUTIONS UNDER THE AUTHORITY OF THE STATE BOARD, TO PROVIDE FOR AN AREA COMMISSION FOR EACH OF THESE INSTITUTIONS, TO PROVIDE FOR THE MEMBERSHIP, POWERS, DUTIES, AND FUNCTIONS OF EACH AREA COMMISSION, AND TO PROVIDE FOR TRANSITIONAL PROVISIONS TO ACCOMPLISH THE ABOVE TRANSFERS.
Referred to Committee on Education and Public Works
H. 4041 (Word version) -- Reps. Stille, Allison and Barrett: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION BY ADDING CHAPTER 153 SO AS TO PROVIDE THAT THE UNIVERSITY OF SOUTH CAROLINA-SPARTANBURG, A FOUR-YEAR REGIONAL BRANCH OF THE UNIVERSITY OF SOUTH CAROLINA, SHALL BECOME CAROLINA SPARTANBURG UNIVERSITY ON JULY 1, 1999, AND SHALL BE A SEPARATE AND DISTINCT INSTITUTION OF HIGHER LEARNING OF THE STATE OF SOUTH CAROLINA, TO PROVIDE FOR A BOARD OF TRUSTEES WHICH SHALL GOVERN THE UNIVERSITY, TO PROVIDE FOR THE BOARD'S POWERS, DUTIES, AND FUNCTIONS, TO AUTHORIZE THE UNIVERSITY TO ISSUE REVENUE BONDS, AND TO PROVIDE FOR CERTAIN TRANSITIONAL PROVISIONS, INCLUDING THE TRANSFER OF PERSONNEL, ASSETS, AND LIABILITIES, TO PROVIDE FOR THE ISSUANCE OF STATE INSTITUTION BONDS TO REFUND OTHER STATE INSTITUTION BONDS ISSUED ON BEHALF OF THE UNIVERSITY OF SOUTH CAROLINA, AND TO PROVIDE FOR THE APPLICABILITY TO CAROLINA SPARTANBURG UNIVERSITY OF CERTAIN PROVISIONS RELATING TO HIGHER EDUCATION BUDGETARY AND COST-RELATED MATTERS.
Referred to Committee on Education and Public Works
H. 4044 (Word version) -- Rep. Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-101-390 SO AS TO PROHIBIT PROVISIONAL FRESHMEN OR PROVISIONAL TRANSFER STUDENTS FROM ATTENDING STATE FOUR-YEAR HIGHER EDUCATION INSTITUTIONS BEGINNING WITH THE FALL TERM OF 2000 AND THEREAFTER.
Referred to Committee on Education and Public Works
H. 4045 (Word version) -- Rep. Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-101-345 SO AS TO PROVIDE A TWENTY-FIVE PERCENT TUITION SURCHARGE ON STUDENTS WHO TAKE MORE THAN ONE HUNDRED FORTY CREDIT HOURS TO COMPLETE A BACCALAUREATE DEGREE IN A FOUR-YEAR PROGRAM AT ANY STATE-SUPPORTED COLLEGE OR UNIVERSITY OF THIS STATE OR MORE THAN ONE HUNDRED TEN PERCENT OF THE CREDIT HOURS NECESSARY TO COMPLETE A BACCALAUREATE DEGREE IN ANY PROGRAM DESIGNATED BY THE COMMISSION ON HIGHER EDUCATION AS A FIVE-YEAR PROGRAM AT ANY STATE-SUPPORTED COLLEGE OR UNIVERSITY OF THIS STATE.
Referred to Committee on Ways and Means
H. 4046 (Word version) -- Rep. Stille: A BILL TO AMEND SECTION 56-5-6540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A VIOLATION OF THE MANDATORY USE OF A SEAT BELT PROVISION, SO AS TO ELIMINATE A LAW ENFORCEMENT OFFICER'S ABILITY TO CITE A MOTOR VEHICLE DRIVER FOR A VIOLATION OF THIS PROVISION SOLELY IN CONJUNCTION WITH A CHECKPOINT ESTABLISHED TO STOP ALL DRIVERS ON A ROAD.
Referred to Committee on Education and Public Works
H. 4047 (Word version) -- Rep. Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-6245 SO AS TO PROVIDE THAT A MOTOR VEHICLE DRIVEN BY A PERSON WHO IS NOT A LICENSED DRIVER, WHOSE LICENSE TO DRIVE HAS BEEN CANCELED, SUSPENDED, OR REVOKED, OR WHO IS UNINSURED, MUST BE IMPOUNDED, TO PROVIDE THAT THE IMPOUNDMENT COSTS MUST BE BORNE BY THE DRIVER, AND TO PROVIDE THAT THIS PROVISION DOES NOT APPLY TO VEHICLES OWNED BY RENTAL CAR COMPANIES.
Referred to Committee on Judiciary
H. 4048 (Word version) -- Rep. Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-101-365 SO AS TO REQUIRE FULL-TIME UNDERGRADUATE FACULTY OF STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING, BEGINNING WITH THE 1999 FALL SEMESTER, TO TEACH A REQUIRED NUMBER OF CREDIT HOURS EACH SEMESTER, AND TO PROVIDE EXCEPTIONS.
Referred to Committee on Education and Public Works
H. 4049 (Word version) -- Rep. Altman: A BILL TO REPEAL ACT 1595 OF 1972 RELATING TO THE CHARLESTON COUNTY PARK, RECREATION AND TOURIST DISTRICT AND TO DEVOLVE THE DISTRICT'S ASSETS, LIABILITIES, DUTIES, AND RESPONSIBILITIES TO THE GOVERNING BODY OF CHARLESTON COUNTY.
Referred to Committee on Charleston Delegation
H. 4050 (Word version) -- Rep. Bailey: A BILL TO AMEND SECTION 6-4-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALLOCATIONS TO AND PERMITTED USES BY MUNICIPALITIES AND COUNTIES OF THE STATE TWO PERCENT SALES TAX ON ACCOMMODATIONS, SO AS TO PROVIDE A DEFINITION FOR "HIGH CONCENTRATION OF TOURISM ACTIVITY".
Referred to Committee on Ways and Means
The following was introduced:
H. 4042 (Word version) -- Reps. McMahand and Wilkins: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING THE PHYLLIS WHEATLEY ASSOCIATION FOR EIGHTY YEARS OF SERVICE TO THE GREENVILLE COMMUNITY AND SURROUNDING AREAS.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4043 (Word version) -- Reps. Knotts, Gamble, Koon, Riser and Stuart: A HOUSE RESOLUTION TO EXPRESS THE CONGRATULATIONS OF THE MEMBERS OF THE HOUSE OF REPRESENTATIVES OF THE STATE OF SOUTH CAROLINA TO MATT R. MAYER OF LEXINGTON COUNTY ON BEING INDUCTED INTO THE RARE GROUP OF INDIVIDUALS WHO HAVE ACHIEVED THE RANK OF EAGLE SCOUT.
The Resolution was adopted.
The roll call of the House of Representatives was taken resulting as follows:
Allison Altman Askins Bailey Bales Barfield Barrett Battle Beck Bowers Breeland Brown G. Brown H. Brown T. Campsen Carnell Cato Chellis Clyburn Cobb-Hunter Cooper Dantzler Delleney Easterday Edge Emory Fleming Gamble Gilham Gourdine Govan Hamilton Harrell Harris Harrison Harvin Haskins Hawkins Hayes Hines J. Hines M. Hinson Howard Inabinett Jennings Keegan Kelley Kirsh Klauber Knotts Koon Law Leach Lee Limehouse Littlejohn Lloyd Loftis Lourie Lucas Mack Maddox Martin Mason McCraw McGee McKay McLeod W. McMahand Meacham Neilson Ott Parks Phillips Rhoad Rice Riser Robinson Rodgers Sandifer Scott Seithel Sharpe Sheheen Smith D. Smith R. Stille Stuart Taylor Vaughn Walker Webb Whatley Wilder Wilkes Wilkins Witherspoon Woodrum Young-Brickell
I came in after the roll call and was present for the Session on Wednesday, May 5.
Donald Allen Joe Brown Bill Cotty Ralph Davenport Fletcher Smith James Smith Kenneth Kennedy Steve Lanford E.B. "Mac" McLeod Vida Miller Joseph Neal Clementa Pinckney Richard Quinn Todd Rutherford Gary Simrill Ronald Townsend Daniel Tripp Jackson Whipper
LEAVE OF ABSENCE
The SPEAKER granted Rep. CANTY a leave of absence due to personal reasons.
The SPEAKER granted Rep. MOODY-LAWRENCE a leave of absence due to illness.
Reps. SEITHEL and HAMILTON signed a statement with the Clerk that they came in after the roll call of the House and were present for the Session on Tuesday, May 4.
Rep. SANDIFER and the Oconee Delegation presented to the House the Seneca High School "Lady Cats" Varsity Basketball Team, the 1999 Class AAA Champions, their coaches and other school officials.
Rep. HARVIN presented to the House the Scott's Branch Boys High School Basketball Team, the 1999 Class 1A Champion, their coaches and other school officials.
Announcement was made that Dr. Stephen Grant of Aiken is the Doctor of the Day for the General Assembly.
In accordance with House Rule 5.2 below:
"5.2 Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."
Bill Number: H. 3367 (Word version)
Date: REMOVE:
05/05/99 LOFTIS
The following Joint Resolution was taken up, read the second time, and ordered to a third reading:
H. 4029 (Word version) -- Rep. Hayes: A JOINT RESOLUTION TO DISSOLVE THE DILLON COUNTY APPLIED TECHNOLOGY CENTER BOARD AND PROVIDE THAT ALL ITS POWERS, DUTIES, AND RESPONSIBILITIES ARE DEVOLVED UPON THE COUNTY BOARD OF EDUCATION OF DILLON COUNTY.
The following Bill was taken up, read the third time, and ordered sent to the Senate:
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.
The following Bills were read the third time, passed and having received three readings in both Houses, it was ordered that the title of each be changed to that of an Act and that they be enrolled for Ratification:
S. 543 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 22-2-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JURY AREAS FOR MAGISTRATES' COURTS ESTABLISHED FOR LANCASTER COUNTY, SO AS TO PROVIDE FOR A COUNTYWIDE JURY AREA.
S. 758 (Word version) -- Senators Patterson, Courson, Giese and Jackson: A BILL TO AMEND SECTION 7-7-465, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN RICHLAND COUNTY, SO AS TO ESTABLISH NEW PRECINCTS AND RENAME CERTAIN EXISTING PRECINCTS.
The following Bill was taken up:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name DKA\AMEND\3491MM99):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. (A) The General Assembly finds that the State is undergoing tremendous economic and population growth. As this growth occurs, local governments find it difficult to marshal the financial resources to fund the public facilities needed to provide essential government services. The General Assembly further finds that an additional source of revenue needs to be made available to municipalities and counties to address growth issues. Fundamental fairness dictates that:
(1) the new revenue be spread fairly and equitably to those to whom the growth is attributable;
(2) existing and new residents and businesses pay for their proportionate shares of facilities they use; and
(3) growth and development not be unduly burdened or inhibited.
Public input and scrutiny of the imposition of a fee to accomplish these goals before its adoption by the local government is essential.
(B) In the enactment of this legislation authorizing the imposition of a local development impact fee, it is the General Assembly's intent to:
(1) avoid paying for the same service or improvement twice;
(2) provide for an efficient and economical process for adoption of the fee; and
(3) avoid inappropriate burdens on fee payors.
SECTION 2. Chapter 1, Title 6 of the 1976 Code is amended by adding:
Section 6-1-910. This article may be cited as the 'South Carolina Development Impact Fee Act'.
Section 6-1-920. As used in this article:
(1) 'Affordable housing' means housing affordable to families whose incomes do not exceed eighty percent of the median income for the service area or areas within the jurisdiction of the governmental entity.
(2) 'Capital improvements' means improvements with a useful life of five years or more, by new construction or other action, which increase the service capacity of a public facility.
(3) 'Capital improvements plan' means a plan that identifies capital improvements for which development impact fees may be used as a funding source.
(4) 'Connection charges' and 'hookup charges' mean charges for the actual cost of connecting a property to a public water or public sewer system, limited to labor and materials involved in making pipe connections, installation of water meters, and other actual costs.
(5) 'Developer' means an individual or corporation, partnership, or other entity undertaking development.
(6) 'Development' means construction or installation of a new building or structure, or a change in use of a building or structure, any of which creates additional demand and need for public facilities. A building or structure shall include, but not be limited to, modular buildings and manufactured housing. 'Development' does not include alterations made to existing single-family homes.
(7) 'Development approval' means a document from a governmental entity which authorizes the commencement of a development.
(8) 'Development impact fee' or 'impact fee' means a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements. The term does not include:
(a) a charge or fee to pay the administrative, plan review, or inspection costs associated with permits required for development;
(b) connection or hookup charges;
(c) amounts collected from a developer in a transaction in which the governmental entity has incurred expenses in constructing capital improvements for the development if the owner or developer has agreed to be financially responsible for the construction or installation of the capital improvements;
(d) fees authorized by Article 3 of this chapter.
(9) 'Fee payor' means the individual or legal entity that pays or is required to pay a development impact fee.
(10) 'Governmental entity' means a county, as provided in Chapter 9, Title 4, and a municipality, as defined in Section 5-1-20.
(11) 'Incidental benefits' are benefits which accrue to a property as a secondary result or as a minor consequence of the provision of public facilities to another property.
(12) 'Land use assumptions' means a description of the service area and projections of land uses, densities, intensities, and population in the service area over at least a ten-year period.
(13) 'Level of service' means a measure of the relationship between service capacity and service demand for public facilities. (14) 'Local planning commission' means the entity created pursuant to Article 1, Chapter 29, Title 6.
(15) 'Project' means a particular development on an identified parcel of land.
(16) 'Proportionate share' means that portion of the cost of system improvements determined pursuant to Section 6-1-990 which reasonably relates to the service demands and needs of the project.
(17) 'Public facilities' means:
(a) water supply production, treatment, laboratory, engineering, administration, storage, and transmission facilities;
(b) waste water collection, treatment, laboratory, engineering, administration, and disposal facilities;
(c) solid waste and recycling collection, treatment, and disposal facilities;
(d) roads, streets, and bridges including, but not limited to, rights-of-way and traffic signals;
(e) storm water transmission, retention, detention, treatment, and disposal facilities and flood control facilities;
(f) public safety facilities, including law enforcement, fire, emergency medical and rescue, and street lighting facilities.
(g) capital equipment and vehicles, with an individual unit purchase price of not less than one hundred thousand dollars including, but not limited to, equipment and vehicles used in the delivery of public safety services, emergency preparedness services, collection and disposal of solid waste, and storm water management and control.
(18) 'Service area' means, based on sound planning or engineering principles, or both, a defined geographic area in which specific public facilities provide service to development within the area defined.
(19) 'Service unit' means a standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements.
(20) 'System improvements' means capital improvements to public facilities which are designed to provide service to a service area.
(21) 'System improvement costs' means costs incurred for construction or reconstruction of system improvements, including design, acquisition, engineering, and other costs attributable to the improvements, and also including the costs of providing additional public facilities needed to serve new growth and development. System improvement costs do not include:
(a) construction, acquisition, or expansion of public facilities other than capital improvements identified in the capital improvements plan;
(b) repair, operation, or maintenance of existing or new capital improvements;
(c) upgrading, updating, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental, or regulatory standards;
(d) upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development;
(e) administrative and operating costs of the governmental entity; or
(f) principal payments and interest or other finance charges on bonds or other indebtedness except financial obligations issued by or on behalf of the governmental entity to finance capital improvements identified in the capital improvements plan.
Section 6-1-930. (A) (1) Only a governmental entity that has a comprehensive plan, as provided in Chapter 29 of this title, and which complies with the requirements of this article may impose a development impact fee. If a governmental entity has not adopted a comprehensive plan, but has adopted a capital improvements plan which substantially complies with the requirements of this article, then it may impose a development impact fee. A governmental entity may not impose an impact fee, regardless of how it is designated, except as provided in this article.
(2) Before imposing a development impact fee on residential units, a governmental entity shall prepare a report which estimates the effect of recovering capital costs through impact fees on the availability of affordable housing within the political jurisdiction of the governmental entity.
(B)(1) An impact fee may be imposed and collected by the governmental entity only upon the passage of an ordinance approved by a positive majority, as defined in Article 3 of this chapter.
(2) The amount of the development impact fee must be based on actual improvement costs or reasonable estimates of the costs, supported by sound engineering studies.
(3) An ordinance authorizing the imposition of a development impact fee must:
(a) establish a procedure for timely processing of applications for determinations by the governmental entity of development impact fees applicable to all property subject to impact fees and for the timely processing of applications for individual assessment of development impact fees, credits, or reimbursements allowed or paid under this article;
(b) include a description of acceptable levels of service for system improvements; and
(c) provide for the termination of the impact fee.
(C) A governmental entity shall prepare and publish an annual report describing the amount of all impact fees collected, appropriated, or spent during the preceding year by category of public facility and service area.
(D) Payment of an impact fee may result in an incidental benefit to property owners or developers within the service area other than the fee payor, except that an impact fee that results in benefits to property owners or developers within the service area, other than the fee payor, in an amount which is greater than incidental benefits is prohibited.
Section 6-1-940. A governmental entity imposing an impact fee must provide in the impact fee ordinance the amount of impact fee due for each unit of development in a project for which an individual building permit or certificate of occupancy is issued. The governmental entity is bound by the amount of impact fee specified in the ordinance and may not charge higher or additional impact fees unless the number of service units increases or the scope of the development changes and the amount of additional impact fees is limited to the amount attributable to the additional service units or change in scope of the development. The impact fee ordinance must:
(1) include an explanation of the calculation of the impact fee, including an explanation of the factors considered pursuant to this article;
(2) specify the system improvements for which the impact fee is intended to be used;
(3) inform the developer that he may pay a project's proportionate share of system improvement costs by payment of impact fees according to the fee schedule as full and complete payment of the developer's proportionate share of system improvements costs;
(4) inform the fee payor that:
(a) he may negotiate and contract for facilities or services with the governmental entity in lieu of the development impact fee as defined in Section 6-1-1050;
(b) he has the right of appeal, as provided in Section 6-1-1030;
(c) the impact fee must be paid no earlier than the time of issuance of the building permit.
Section 6-1-950. (A) The governing body of a governmental entity begins the process for adoption of an ordinance imposing an impact fee by enacting a resolution directing the local planning commission to conduct the studies and to recommend an impact fee ordinance, developed in accordance with the requirements of this article.
(B) Upon receipt of the resolution enacted pursuant to subsection (A), the local planning commission shall develop, within the time designated in the resolution, and make recommendations to the governmental entity for a capital improvements plan and impact fees by service unit. The local planning commission shall prepare and adopt its recommendations in the same manner and using the same procedures as those used for developing recommendations for a comprehensive plan as provided in Article 3, Chapter 29, Title 6, except as otherwise provided in this article. The commission shall review and update the capital improvements plan and impact fees in the same manner and on the same review cycle as the governmental entity's comprehensive plan or elements of it.
Section 6-1-960. (A) The local planning commission shall recommend to the governmental entity a capital improvements plan which may be adopted by the governmental entity by ordinance. The recommendations of the commission are not binding on the governmental entity, which may amend or alter the plan. After reasonable public notice, a public hearing must be held before final action to adopt the ordinance approving the capital improvements plan. The notice must be published not less than thirty days before the time of the hearing in at least one newspaper of general circulation in the county. The notice must advise the public of the time and place of the hearing, that a copy of the capital improvements plan is available for public inspection in the offices of the governmental entity, and that members of the public will be given an opportunity to be heard.
(B) The capital improvements plan must contain:
(1) a general description of all existing public facilities, and their existing deficiencies, within the service area or areas of the governmental entity, a reasonable estimate of all costs, and a plan to develop the funding resources, including existing sources of revenues, related to curing the existing deficiencies including, but not limited to, the upgrading, updating, improving, expanding, or replacing of these facilities to meet existing needs and usage;
(2) an analysis of the total capacity, the level of current usage, and commitments for usage of capacity of existing public facilities, which must be prepared by a qualified professional using generally accepted principles and professional standards;
(3) a description of the land use assumptions;
(4) a definitive table establishing the specific service unit for each category of system improvements and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, agricultural, and industrial;
(5) a description of all system improvements and their costs necessitated by and attributable to new development in the service area, based on the approved land use assumptions, to provide a level of service not to exceed the level of service currently existing in the community or service area;
(6) the total number of service units necessitated by and attributable to new development within the service area based on the land use assumptions and calculated in accordance with generally accepted engineering or planning criteria;
(7) the projected demand for system improvements required by new service units projected over a reasonable period of time not to exceed twenty years;
(8) identification of all sources and levels of funding available to the governmental entity for the financing of the system improvements; and
(9) a schedule setting forth estimated dates for commencing and completing construction of all improvements identified in the capital improvements plan.
(C) Changes in the capital improvements plan must be approved in the same manner as approval of the original plan.
Section 6-1-970. The following structures or activities are exempt from impact fees:
(1) rebuilding the same amount of floor space of a structure that was destroyed by fire or other catastrophe;
(2) remodeling or repairing a structure that does not result in an increase in the number of service units;
(3) replacing a residential unit, including a manufactured home, with another residential unit on the same lot, if the number of service units does not increase;
(4) placing a construction trailer or office on a lot during the period of construction on the lot;
(5) constructing an addition on a residential structure which does not increase the number of service units;
(6) adding uses that are typically accessory to residential uses, such as a tennis court or a clubhouse, unless it is demonstrated clearly that the use creates a significant impact on the system's capacity; and
(7) all or part of a particular development project if:
(a) the project is determined to create affordable housing; and
(b) public policy which supports the exemption is contained in the governmental entity's comprehensive plan; and
(c) exempt development's proportionate share of system improvements is funded through a revenue source other than development impact fees.
Section 6-1-980. (A) The impact fee for each service unit may not exceed the amount determined by dividing the costs of the capital improvements by the total number of projected service units that potentially could use the capital improvement. If the number of new service units projected over a reasonable period of time is less than the total number of new service units shown by the approved land use assumptions at full development of the service area, the maximum impact fee for each service unit must be calculated by dividing the costs of the part of the capital improvements necessitated by and attributable to the projected new service units by the total projected new service units.
(B) An impact fee must be calculated in accordance with generally accepted accounting principles.
Section 6-1-990. (A) The impact fee imposed upon a fee payor may not exceed a proportionate share of the costs incurred by the governmental entity in providing system improvements to serve the new development. The proportionate share is the cost attributable to the development after the governmental entity reduces the amount to be imposed by the following factors:
(1) appropriate credit, offset, or contribution of money, dedication of land, or construction of system improvements; and
(2) all other sources of funding the system improvements including funds obtained from economic development incentives or grants secured which are not required to be repaid.
(B) In determining the proportionate share of the cost of system improvements to be paid, the governmental entity imposing the impact fee must consider the:
(1) cost of existing system improvements resulting from new development within the service area or areas;
(2) means by which existing system improvements have been financed;
(3) extent to which the new development contributes to the cost of system improvements;
(4) extent to which the new development is required to contribute to the cost of existing system improvements in the future;
(5) extent to which the new development is required to provide system improvements, without charge to other properties within the service area or areas;
(6) time and price differentials inherent in a fair comparison of fees paid at different times; and
(7) availability of other sources of funding system improvements including, but not limited to, user charges, general tax levies, intergovernmental transfers, and special taxation.
Section 6-1-1000. A developer required to pay a development impact fee may not be required to pay more than his proportionate share of the costs of the project, including the payment of money or contribution or dedication of land, or to oversize his facilities for use of others outside of the project without fair compensation or reimbursement.
Section 6-1-1010. (A) Revenues from all development impact fees must be maintained in one or more interest-bearing accounts. Accounting records must be maintained for each category of system improvements and the service area in which the fees are collected. Interest earned on development impact fees must be considered funds of the account on which it is earned, and must be subject to all restrictions placed on the use of impact fees pursuant to the provisions of this article.
(B) Expenditures of development impact fees must be made only for the category of system improvements and within or for the benefit of the service area for which the impact fee was imposed as shown by the capital improvements plan and as authorized in this article. Impact fees may not be used for:
(a) a purpose other than system improvement costs to create additional improvements to serve new growth;
(b) a category of system improvements other than that for which they were collected; or
(c) the benefit of service areas other than the area for which they were imposed.
Section 6-1-1020. (A) An impact fee must be refunded to the owner of record of property on which a development impact fee has been paid if:
(1) the impact fees have not been expended within three years of the date they were scheduled to be expended on a first-in, first-out basis; or
(2) a building permit or permit for installation of a manufactured home is denied.
(B) When the right to a refund exists, the governmental entity shall send a refund to the owner of record within ninety days after it is determined by the entity that a refund is due.
(C) A refund must include the pro rata portion of interest earned while on deposit in the impact fee account.
(D) A person entitled to a refund has standing to sue for a refund pursuant to this article if there has not been a timely payment of a refund pursuant to subsection (B) of this section.
Section 6-1-1030. (A) A governmental entity which adopts a development impact fee ordinance shall provide for administrative appeals by the developer or fee payor.
(B) A fee payor may pay a development impact fee under protest. A fee payor making the payment is not estopped from exercising the right of appeal provided in this article, nor is the fee payor estopped from receiving a refund of an amount considered to have been illegally collected. Instead of making a payment of an impact fee under protest, a fee payor, at his option, may post a bond or submit an irrevocable letter of credit for the amount of impact fees due, pending the outcome of an appeal.
(C) A governmental entity which adopts a development impact fee ordinance shall provide for mediation by a qualified independent party, upon voluntary agreement by both the fee payor and the governmental entity, to address a disagreement related to the impact fee for proposed development. Participation in mediation does not preclude the fee payor from pursuing other remedies provided for in this section or otherwise available by law.
Section 6-1-1040. A governmental entity may provide in a development impact fee ordinance the method for collection of development impact fees including, but not limited to:
(1) additions to the fee for reasonable interest and penalties for nonpayment or late payment;
(2) withholding of the certificate of occupancy, or building permit if no certificate of occupancy is required, until the development impact fee is paid;
(3) withholding of utility services until the development impact fee is paid; and
(4) imposing liens for failure to pay timely a development impact fee.
Section 6-1-1050. A fee payor and developer may enter into an agreement with a governmental entity, including an agreement entered into pursuant to the South Carolina Local Government Development Agreement Act, providing for payments instead of impact fees for facilities or services. That agreement may provide for the construction or installation of system improvements by the fee payor or developer and for credits or reimbursements for costs incurred by a fee payor or developer including interproject transfers of credits or reimbursement for project improvements which are used or shared by more than one development project. An impact fee may not be imposed on a fee payor or developer who has entered into an agreement as described in this section.
Section 6-1-1060. (A) The provisions of this article do not repeal existing laws authorizing a governmental entity to impose fees or require contributions or property dedications for capital improvements. A development impact fee adopted in accordance with existing laws before the enactment of this article is not affected until termination of the development impact fee. A subsequent change or reenactment of the development impact fee must comply with the provisions of this article. Requirements for developers to pay in whole or in part for system improvements may be imposed by governmental entities only by way of impact fees imposed pursuant to the ordinance.
(B) Notwithstanding another provision of this article, property for which a valid building permit or certificate of occupancy has been issued or construction has commenced before the effective date of a development impact fee ordinance is not subject to additional development impact fees.
Section 6-1-1070. (A) If the proposed system improvements include the improvement of public facilities under the jurisdiction of another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, an agreement between the governmental entity and other unit of government must specify the reasonable share of funding by each unit. The governmental entity authorized to impose impact fees may not assume more than its reasonable share of funding joint improvements, nor may a governmental entity which is not authorized to impose impact fees do so unless the expenditure is pursuant to an agreement under Section 6-1-1050 of this section.
(B) A governmental entity may enter into an agreement with another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, that has the responsibility of providing the service for which an impact fee may be imposed. The determination of the amount of the impact fee for the contracting governmental entity must be made in the same manner and is subject to the same procedures and limitations as provided in this article. The agreement must provide for the collection of the impact fee by the governmental entity and for the expenditure of the impact fee by another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public services district unless otherwise provided by contract.
Section 6-1-1080. (A) The provisions of this chapter do not apply to a development impact fee imposed by a governmental entity for water or waste water utilities, or both, except that for a governmental entity to impose a development impact fee for water or waste water utilities, or both, the governmental entity must:
(1) have a capital improvements plan before imposition of the development impact fee; and
(2) prepare a report to be made public before imposition of the development impact fee, which shall include, but not be limited to, an explanation of the basis, use, calculation, and method of collection of the development impact fee; and
(3) enact the fee in accordance with the requirements of Article 3 of this chapter.
(B) This section does not create, grant, or confer any new or additional taxing authority to a governmental entity for water or waste water utilities, or both of them.
Section 6-1-1090. A county development impact fee ordinance imposed in an area which is annexed by a municipality is not affected by this article until the development impact fee terminates, unless the municipality assumes any liability which is to be paid with the impact fee revenue."
SECTION 3. This act takes effect upon approval by the Governor. /
Amend title to conform.
Rep. R. SMITH explained the amendment.
Reps. SIMRILL and KIRSH objected to the Bill.
Reps. HAWKINS, FLEMING, R. SMITH, KEEGAN, HARRISON and T. BROWN requested debate on the Bill.
Rep. SCOTT moved to adjourn debate upon the following Joint Resolution, which was adopted:
H. 4012 (Word version) -- Reps. Neal, J. Brown, Quinn, Bales, Cotty, Harrison, Lourie, Rutherford, F. Smith, J. Smith and Scott: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO ESTABLISH FORTY-FIVE MILE AN HOUR SPEED ZONES AND INSTALL FLASHING TRAFFIC SIGNALS AT CHURCHES LOCATED ON HIGHWAY 601 FROM THE KERSHAW COUNTY LINE TO HIGHWAY 378.
The following Bill was taken up, read the second time, and ordered to a third reading:
H. 3894 (Word version) -- Rep. D. Smith: A BILL TO AMEND SECTION 9-8-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDITED SERVICE AND TRANSFER OF CREDITED SERVICE FOR PURPOSES OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO CONFORM THE VESTING REQUIREMENT FOR TRANSFERRING CREDITED SERVICE TO THE SOUTH CAROLINA RETIREMENT SYSTEM FOR A JUDGE OR SOLICITOR WHO ON TERMINATION DOES NOT QUALIFY FOR A BENEFIT UNDER THE JUDICIAL SYSTEM FROM TWELVE YEARS TO THE CURRENT REQUIREMENT FOR VESTING UNDER THE JUDICIAL RETIREMENT SYSTEM OF TEN YEARS FOR JUDGES AND EIGHT YEARS FOR SOLICITORS.
Rep. RISER explained the Bill.
The following Bill was taken up:
H. 3128 (Word version) -- Reps. Cotty, Edge, Moody-Lawrence and Meacham: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-23-435 SO AS TO PROVIDE THAT IT IS UNLAWFUL TO DISCHARGE A FIREARM WITHIN A RADIUS OF ONE-HALF MILE OF A SCHOOL UNDER CERTAIN CIRCUMSTANCES, AND TO PROVIDE A PENALTY.
Rep. COTTY explained the Bill.
Reps. RICE, LOFTIS, HINSON, LAW and HASKINS requested debate on the Bill.
The motion of Rep. J. BROWN to reconsider the vote whereby the following Bill was given a third reading was taken up:
S. 728 (Word version) -- Medical Affairs Committee: A BILL TO AMEND TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEALTH, BY ADDING CHAPTER 76, THE "SOUTH CAROLINA AUTOMATED EXTERNAL DEFIBRILLATOR ACT".
Rep. SCOTT moved to adjourn debate on the motion to reconsider until Tuesday, May 11, which was agreed to.
Rep. W. MCLEOD asked unanimous consent to recall H. 3497 from the Committee on Education and Public Works.
Rep. HINSON objected.
Rep. HAMILTON asked unanimous consent to recall H. 4000 from the Committee on Education and Public Works.
Rep. HINSON objected.
Rep. RODGERS asked unanimous consent to recall H. 3077 from the Committee on Ways and Means.
Rep. COBB-HUNTER objected.
Rep. LIMEHOUSE asked unanimous consent to recall H. 3883 from the Committee on Agriculture, Natural Resources and Environmental Affairs.
Rep. INABINETT objected.
Rep. FLEMING asked unanimous consent to recall H. 3701 from the Committee on Judiciary.
Rep. COBB-HUNTER objected.
Debate was resumed on the Senate amendments to the following Bill, the pending question being the consideration of amendments:
H. 3696 (Word version) -- Ways and Means Committee: THE GENERAL APPROPRIATION BILL (Abbreviated Title)
Rep. COBB-HUNTER proposed the following Amendment No. 4A (Doc Name DKA\AMEND\3494MM99), which was tabled.
Amend the bill, as and if amended, PART II, by adding an appropriately numbered SECTION to read:
TO AMEND TITLE 59 OF THE 1976 CODE, RELATING TO EDUCATION, BY ADDING CHAPTER 146 SO AS TO ENACT THE "STATE SCHOOL FACILITIES BOND ACT" AUTHORIZING THE ISSUANCE OF SCHOOL FACILITIES BONDS AS GENERAL OBLIGATION BONDS OF THE STATE OF SOUTH CAROLINA AND TO PRESCRIBE THE TERMS, CONDITIONS, USES, AND DISTRIBUTION OF THE BONDS AND THEIR PROCEEDS.
Title 59 of the 1976 Code is amended by adding:
Section 59-146-10. This chapter may be cited as the 'State School Facilities Bond Act'.
Section 59-146-20. The General Assembly finds that, for the benefit of the people of the State, the increase of their commerce, welfare and prosperity, and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the full opportunity to learn and to develop their intellectual and mental capacities; that it is essential that school districts of this State be provided with adequate educational facilities and appropriate additional means to assist the youth in achieving the required levels of learning and development of their intellectual and mental capacities; and that it is the purpose of this chapter to provide a measure of assistance to enable school districts in this State to provide the facilities and structures which are needed to accomplish the purposes of this chapter, all to the public benefit and good, to the extent and manner provided in this chapter.
Section 59-146-30. As used in this chapter:
(1) 'Department' means the State Department of Education.
(2) 'School district' means a public body corporate and politic operating as a school district pursuant to Chapter 17, Title 59.
(3) 'School facilities' means only those facilities defined as 'school facilities' in Section 59-144-30.
(4) 'State Board' means the State Board of Education.
(5) 'State school facilities bonds' means general obligation bonds of the State of South Carolina issued under the authority of this chapter.
Section 59-146-40. In order to obtain funds for allocation to school districts for school facilities, there must be issued state school facilities bonds as prescribed by this chapter.
Section 59-146-50. The maximum principal amount of state school facilities bonds issued pursuant to this chapter may not exceed seven hundred fifty million dollars except that this limitation does not apply to state school facilities bonds issued for the purpose of refunding prior issues of state school facilities bonds. Of the funds appropriated in Section 67 in Part IA, in the Annual General Appropriations Act for Fiscal Year 1999-2000 for capital improvement bonds debt service, the first seven hundred thousand dollars must be used to pay debt service on bonds issued pursuant to this chapter during fiscal year 1999-2000 as necessary. It is the intent of the General Assembly for the Department of Education to allocate seven hundred fifty million dollars pursuant to Section 59-144-100 and to inform each school district of its individual allocation. Further, it is the intent of the General Assembly that not more than two hundred fifty million dollars of state school facilities bonds be issued in fiscal year 1999-2000. The authority to issue bonds pursuant to this chapter expires four years from the effective date of this chapter. The four-year limitation, however, does not apply to bonds issued to retire bond anticipation notes.
Section 59-146-60. The State Board of Education, by resolution, shall notify the State Budget and Control Board of the following:
(1) the amount required for allocation to local school districts for school facilities for the next fiscal year;
(2) a tentative time schedule setting the period of time during which the sum requested must be expended;
(3) a debt service table showing the semi-annual or annual principal and interest requirements for all state school facilities bonds outstanding; and
(4) the total amount of all state school facilities bonds issued.
This notification must be presented to the Budget and Control Board by March first of each year.
Section 59-146-70. Following the receipt of the notification presented pursuant to Section 59-146-60, the State Budget and Control Board, by resolution duly adopted, shall effect the issuance of state school facilities bonds, or pending their issuance, effect the issuance of bond anticipation notes pursuant to Chapter 17 of Title 11.
Section 59-146-80. In order to effect the issuance of state school facilities bonds, the State Budget and Control Board shall adopt a resolution providing for the issuance of state school facilities bonds pursuant to the provisions of this chapter. The authorizing resolution must include:
(1) schedules of the aggregate of all general obligation debt of the State, excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, together with certificates of the State Treasurer and State Auditor evidencing compliance with the provisions of paragraph 6(c) of Section 13 of Article X of the South Carolina Constitution;
(2) a schedule showing the aggregate of state school facilities bonds issued, the purposes for which they were issued, the annual or semi-annual payments required to retire the state school facilities bonds, the interest on them, and the amount of special funds applicable to the retirement of the outstanding state school facilities bonds;
(3) the amount of state school facilities bonds to be issued; and
(4) a schedule showing future annual or semi-annual principal requirements and estimated annual or semi-annual interest requirements on the state school facilities bonds to be issued.
Section 59-146-90. The state school facilities bonds must bear the date and mature at the time that the resolution provides except that state school facilities bonds may not mature more than thirty years from its date of issue. The state school facilities bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase, and contain other provisions determined by the State Budget and Control Board before their issuance. The bonds may bear interest payable at the times and at the rates determined by the State Budget and Control Board.
Section 59-146-100. All state school facilities bonds issued pursuant to this chapter are exempt from taxation as provided in Section 12-2-50.
Section 59-146-110. All state school facilities bonds issued pursuant to this chapter must be signed by the Governor and the State Treasurer. The Governor and the State Treasurer may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the state school facilities bonds executed and authenticated is valid notwithstanding changes in officers or seal occurring after the execution or authentication.
Section 59-146-120. For the payment of the principal and interest on all state school facilities bonds issued and outstanding pursuant to this chapter, there is pledged the full faith, credit, and taxing power of the State of South Carolina, and in accordance with the provisions of paragraph (4) of Section 13 of Article X of the South Carolina Constitution, the General Assembly shall allocate on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the debt authorized by this chapter.
Section 59-146-130. State school facilities bonds must be sold by the Governor and the State Treasurer upon sealed proposals after publication of notice of the sale one or more times at least seven days before the sale in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The state school facilities bonds may be awarded only to the lowest interest cost bidder, but the right is reserved to reject all bids and to readvertise the state school facilities bonds for sale. For the purpose of bringing about successful sales of the bonds, the State Budget and Control Board may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. All expenses incident to the sale of the bonds must be paid from the proceeds of the sale of the bonds.
Section 59-146-140. The proceeds of the sale of state school facilities bonds must be received by the State Treasurer and applied to the purposes for which they were issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds, and the premium, if any, must be used to discharge the payment of the first installment of principal to become due on the bonds, but the purchasers of the bonds in no way are liable for the proper application of the proceeds to the purposes for which they are intended.
Section 59-146-150. It is lawful for all executors, administrators, guardians, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this chapter.
Section 59-146-160. The proceeds received from the issuance of state school facilities bonds, after deducting the costs of issuance, must be allocated to the school districts in the same manner and for the same purposes as provided in Section 59-144-100 and the first paragraph of Section 59-144-30.
Section 59-146-170. The responsibilities and duties of the State Department of Education and State Board of Education are as outlined in Sections 59-144-120, 59-144-130, and 59-144-140.
Section 59-146-180. To qualify for the funds pursuant to this chapter, each school district must meet the requirements of this chapter and guidelines promulgated in this connection. Funds must be withheld from districts when inappropriate reporting of facilities' needs is found or when inappropriate use of funds is documented." /
Renumber sections to conform.
Amend totals and title to conform.
Rep. COBB-HUNTER explained the amendment.
Rep. HAYES spoke in favor of the amendment.
Rep. HARRELL spoke against the amendment.
Rep. KENNEDY spoke in favor of the amendment.
Rep. HARRELL spoke against the amendment.
Rep. HARRELL moved to table the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Easterday Edge Fleming Gilham Govan Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Klauber Knotts Koon Law Leach Limehouse Littlejohn Loftis Lucas Martin Mason McGee McKay Meacham Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Simrill Smith D. Smith R. Stille Taylor Townsend Tripp Vaughn Walker Webb Whatley Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Delleney Emory Gamble Gourdine Harris Harvin Hayes Hines J. Hines M. Howard Inabinett Jennings Kennedy Lee Lloyd Lourie Mack Maddox McCraw McLeod W. McMahand Miller Neilson Ott Parks Phillips Pinckney Rhoad Rutherford Scott Sheheen Smith J. Stuart Whipper Wilder Wilkes
So, the amendment was tabled.
Reps. KOON, RHOAD and J. SMITH proposed the following Amendment No. 5A (Doc Name PT\AMEND\1497DW99), which was tabled.
Amend the bill, as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION at the end to read:
TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, OF THE 1976 CODE, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-EIGHT THE YEARS OF CREDITABLE SERVICE REQUIRED TO RETIRE AT ANY AGE WITHOUT PENALTY; TO AMEND SECTIONS 9-1-1515, 9-1-1660, AND 9-1-1770, AS AMENDED, AND 9-1-1850, AS AMENDED, RELATING TO EARLY RETIREMENT OPTIONS, ELECTION OF A BENEFIT ON THE INSERVICE DEATH OF A MEMBER, AND AMOUNTS DUE ESTATES OF DECEASED MEMBERS UNDER THE GROUP LIFE INSURANCE PLAN, SO AS TO PROVIDE THAT THE ELECTION OF A MEMBER WITH TWENTY-FIVE YEARS CREDITED SERVICE TO BUY SUFFICIENT CREDIT FOR SERVICE RETIREMENT APPLIES TO THE SOUTH CAROLINA RETIREMENT SYSTEM, UPDATE THE BENEFIT ELECTION OPTION ON THE INSERVICE DEATH OF A MEMBER TO REFLECT OTHER CHANGES SINCE ORIGINAL ENACTMENT, AND TO CONFORM THESE OPTIONS AND BENEFITS TO SERVICE RETIREMENT AFTER TWENTY-EIGHT YEARS CREDITABLE SERVICE AT ANY AGE WITHOUT PENALTY AS PROVIDED IN THIS ACT; AND TO AMEND SECTION 9-1-1220, AS AMENDED, RELATING TO EMPLOYER CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE EMPLOYER CONTRIBUTION RATE BY EIGHT TENTHS OF ONE PERCENT.
A. Section 9-1-1220 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding at the end:
"Effective January 1, 2000, the State Budget and Control Board shall increase the employer contribution rate for the South Carolina Retirement System by eight tenths of one percent."
B. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:
"Any A member may retire upon written application to the board system setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-eight or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."
C. Section 9-1-1515 of the 1976 Code, as added by Act 559 of 1990, is amended to read:
"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty twenty-eight.
(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty twenty-eight years' creditable service had he not retired, whichever is earlier.
(D)(1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:
(a) the date the member attains age sixty, or
(b) the date the member would have thirty twenty-eight years' creditable service had he not retired.
(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board."
D. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:
"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and
(3) If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.
Upon retirement from service on or after July 1, 1989 1999, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.
If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.
(B) Upon retirement from service on or after July 1, 1989 1999, a Class Two member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section."
E. Section 9-1-1660 of the 1976 Code is amended to read:
"Section 9-1-1660. (1) The person nominated by a member to receive the full amount of his accumulated contributions in the event of his death before retirement may, if such the member dies after the attainment of age sixty-five sixty or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 2 of Section 9-1-1620. For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.
(2) Any A person otherwise eligible under subsection (1) of this section to elect to receive an allowance who has attained age sixty-five sixty or after the accumulation of thirty twenty-eight years of creditable service or after the attainment of age sixty with twenty fifteen or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, make the election provided for in subsection (1). The monthly payments under Option 2 to the person date from the time of the repayment of the accumulated contributions to the system."
F. The last paragraph of Section 9-1-1770 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:
"Upon the death of a retired member on or after July 1, 1985 after 1999, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a death benefit of one thousand dollars if the retired member had ten years of creditable service but less than twenty years, two thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-eight, and three thousand dollars if the retired member had at least thirty twenty-eight years of creditable service at the time of retirement, provided the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."
G. Section 9-1-1850 of the 1976 Code, as last amended by Act 420 of 1994, is further amended to read:
"Section 9-1-1850. (A)(1) A member who has at least twenty-five years of creditable service in any retirement the system provided in this title chapter may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system South Carolina Retirement System the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:
Years to be Percentage of
Credited Salary
(a) not more than one year 58 percent
(b) over one year but
not more than two years 54 percent for each year
(c) over two years
but not more than
three years 50 percent for each year
(d) over three years,
but not more than
four years 46 percent for each year
(e) over four years 42 percent for each year
(2) The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.
(3) Any service credit purchased under this subsection qualifies the member for retirement, and the member must retire within ninety days after the purchase.
(B) As an alternative to the option provided in subsection (A), the member, if he has at least twenty-five years of creditable service, may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by him as an employee or member upon paying into his retirement system, during the ensuing number of years he wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after the member's retirement, he shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement, and the member must retire within ninety days subsequent to electing the option provided by subsection (B). The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes determining the member's average final compensation.
The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty twenty-eight years of service."
H. This section takes effect January 1, 2000./
Renumber sections to conform.
Amend totals and title to conform.
Rep. KOON moved to table the amendment, which was agreed to.
Reps. CARNELL, COBB-HUNTER and WEBB proposed the following Amendment No. 6A (Doc Name pt\amend\1492std99.doc), which was tabled.
Amend the bill, as and if amended, PART II, by adding an appropriately numbered SECTION to read:
TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED BY THIS ACT.
A. Item (f) of Section 3 of Act 1377 of 1968, as last amended by Section 1, Act 139 of 1997, is further amended by adding:
A. Colleges and Universities
(a) Commission on Higher Education
University Center
McAlister Square 7,500,000
(b) The Citadel
Padget-Thomas Hall
Replacement 8,000,000
(c) Clemson University
Long Hall 4,000,000
Littlejohn Coliseum 9,000,000
(d) University of Charleston
Physical Education Center 12,000,000
Simons Center for the Arts 3,000,000
(e) Coastal Carolina University
Humanities and Fine Arts Building 5,601,500
(f) Francis Marion University
Energy Facility Upgrade 525,000
(g) Lander University
Renovation of Campus
Electronic Communications infrastructure 988,000
Student Center Facility 7,000,000
(h) South Carolina State University
Hodge Hall Science Building 10,000,000
Lowman Hall 6,000,000
Deferred Maintenance
- Phase One 7,500,000
-Phase Two 4,000,000
(i) University of South Carolina
Columbia (including Medical School)
School of Public Health 3,500,000
Arena 7,500,000
Wellness and Fitness Center 2,000,000
School of Law-New Building 5,000,000
(j) USC - Aiken Campus
Student Activities Center 3,000,000
(k) USC - Beaufort Campus
New River Facility 1,000,000
(l) USC - Spartanburg Campus
Def. Maint. 2,000,000
(m) USC Sumter Campus
Alice Drive Baptist Church-Acquisition 1,500,000
(n) Winthrop University
Sciences Equipment 1,900,000
(o) Medical University of South Carolina
Hollings Cancer Center-Expansion 10,000,000
Oncology Center 7,000,000
B. State Technical and Comprehensive Education
(a) Technical System
Education and Training
Equipment 13,000,000
(b) Aiken Technical College
Health and Sciences
Building 5,325,000
(c) Central Carolina Techinical College
EF Dubose Career Center 9,611,309
(d) Denmark Technical College
Library 2,000,000
(e) Horry-Georgetown Technical College Library/Student Center 7,136,224
(f) Midlands Technical College
Information Tech Center NE Campus 5,280,000
(g) Orangeburg-Calhoun Technical College Library, Cafeteria, and Student Service Area 4,256,000
(h) Piedmont Technical College
Laurens County Higher
Education Center 4,000,000
Edgefield County Center Renovation 900,000
(i) Spartanburg Technical College
Student Services Building 5,700,000
(j) Trident Technical College
Industrial/Economic
Development Center 3,000,000
Electro Mech Lab 800,000
(k) York Technical College
Building C Expansion 2,100,000
Machine Tools Technology Center 1,000,000
(l) Williamsburg County Technical College Roof Replacement
- Buildings A & B 600,000
Computer Equipment and Software 599,723
C. OTHER EDUCATIONAL AGENCIES
(a) Governor's School for Science and Math
Renovation of Facility 6,000,000
(b) School for the Deaf and Blind
Walker Hall Renovation 11,920,000
Building Repairs 4,132,550
(c) Wil Lou Gray
Roof System 1,000,000
Flooring 1,000,000
D. OTHER AGENCIES
(a) Budget and Control Board
Deferred Maintenance 4,281,193
(b) Clemson PSA
Agriculture and Life Science Complex 10,000,000
Edisto Center 4,000,000
(c) Department of Commerce
Lake Marion Water Agency 8,000,000
Spartanburg Renaissance Center 4,000,000
(d) Departmental Mental Health
Greenville Mental Health Center 5,985,000
Kershaw/Santee/Wateree Center 2,300,000
Greenwood Beckman Health Center 4,700,000
(e) Department of Natural Resources
Florence HQ Building 500,000
Greenwood HQ Building 500,000
(f) State Library
Cherokee County Library 500,000
Clinton Public Library 200,000
Dillon County Library 1,000,000
Florence County - Lake City Library 850,000
(g) Williamsburg County Greenville Senior
Citizens Center 150,000
B. The Code Commissioner is directed to conform the aggregate principal indebtedness on state capital improvement bonds authorized to be issued as provided by law to reflect the amount of such bonds authorized by the provisions of this section.
C. In order for each agency or institution of Higher Education to receive the allocation provided in this section, it must commit at least five thousand dollars from Part 1 of the fiscal 1999-00 General Appropriations Act to pay for the initial a and e cost. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. CARNELL explained the amendment.
Rep. H. BROWN spoke against the amendment.
Rep. KIRSH spoke against the amendment.
Rep. KIRSH moved to table the amendment.
Rep. SCOTT demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Koon Leach Limehouse Littlejohn Loftis Martin Mason McGee McKay McLeod M. Meacham Neilson Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Simrill Smith D. Smith R. Stille Townsend Tripp Vaughn Walker Wilkes Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Hines M. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Lloyd Lourie Lucas Mack Maddox McCraw McLeod W. McMahand Miller Ott Parks Phillips Pinckney Rhoad Rutherford Scott Sheheen Smith J. Stuart Taylor Webb Whatley Whipper Wilder
So, the amendment was tabled.
Reps. KOON, RHOAD and J. SMITH proposed the following Amendment No. 7A (Doc Name PT\AMEND\1501DW99):
Amend the bill, as and if amended, by Part II, Permanent Provisions, by adding an appropriately numbered SECTION at the end to read:
TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-EIGHT THE YEARS OF CREDITABLE SERVICE REQUIRED TO RETIRE AT ANY AGE WITHOUT PENALTY; TO AMEND SECTIONS 9-1-1515, 9-1-1660, AND 9-1-1770, AS AMENDED, AND 9-1-1850, AS AMENDED, RELATING TO EARLY RETIREMENT OPTIONS, ELECTION OF A BENEFIT ON THE INSERVICE DEATH OF A MEMBER, AND AMOUNTS DUE ESTATES OF DECEASED MEMBERS UNDER THE GROUP LIFE INSURANCE PLAN, SO AS TO PROVIDE THAT THE ELECTION OF A MEMBER WITH TWENTY-FIVE YEARS CREDITED SERVICE TO BUY SUFFICIENT CREDIT FOR SERVICE RETIREMENT APPLIES TO THE SOUTH CAROLINA RETIREMENT SYSTEM, UPDATE THE BENEFIT ELECTION OPTION ON THE INSERVICE DEATH OF A MEMBER TO REFLECT OTHER CHANGES SINCE ORIGINAL ENACTMENT, AND TO CONFORM THESE OPTIONS AND BENEFITS TO SERVICE RETIREMENT AFTER TWENTY-EIGHT YEARS CREDITABLE SERVICE AT ANY AGE WITHOUT PENALTY AS PROVIDED IN THIS ACT; TO AMEND SECTIONS 9-1-1810 AND 9-11-310, RELATING TO THE ANNUAL COST OF LIVING ADJUSTMENT AUTHORIZED FOR RETIREES AND BENEFICIARIES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS' RETIREMENT SYSTEM AND THE METHOD OF CALCULATING THE ADJUSTMENT, SO AS TO MAKE MANDATORY THE PAYMENT OF AMOUNTS UP TO ONE PERCENT CALCULATED UNDER THE ADJUSTMENT FORMULA, AND TO DELETE OBSOLETE PROVISIONS, AND TO CONFORM IN BOTH SECTIONS REFERENCES TO THE CONSUMER PRICE INDEX USED IN CALCULATING THE COST OF LIVING ADJUSTMENT; AND TO AMEND SECTION 9-1-1220, AS AMENDED, RELATING TO EMPLOYER CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE EMPLOYER CONTRIBUTION RATE BY ONE AND ONE-HALF PERCENT.
A. Section 9-1-1220 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding at the end:
"Effective June 30, 2000, the State Budget and Control Board shall increase the employer contribution rate for the South Carolina Retirement System by one and one-half percent."
B. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:
"Any A member may retire upon written application to the board system setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-eight or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."
C. Section 9-1-1515 of the 1976 Code, as added by Act 559 of 1990, is amended to read:
"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty twenty-eight.
(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty twenty-eight years' creditable service had he not retired, whichever is earlier.
(D)(1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:
(a) the date the member attains age sixty, or
(b) the date the member would have thirty twenty-eight years' creditable service had he not retired.
(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board."
D. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:
"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and
(3) If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.
Upon retirement from service on or after July 1, 1989 June 30, 1999, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.
If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.
(B) Upon retirement from service on or after July 1, 1989 June 30, 1999, a Class Two member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section."
E. Section 9-1-1660 of the 1976 Code is amended to read:
"Section 9-1-1660. (1) The person nominated by a member to receive the full amount of his accumulated contributions in the event of his death before retirement may, if such the member dies after the attainment of age sixty-five sixty or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 2 of Section 9-1-1620. For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.
(2) Any A person otherwise eligible under subsection (1) of this section to elect to receive an allowance who has attained age sixty-five sixty or after the accumulation of thirty twenty-eight years of creditable service or after the attainment of age sixty with twenty fifteen or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, make the election provided for in subsection (1). The monthly payments under Option 2 to the person date from the time of the repayment of the accumulated contributions to the system."
F. The last paragraph of Section 9-1-1770 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:
"Upon the death of a retired member on or after July 1, 1985 after 1999, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a death benefit of one thousand dollars if the retired member had ten years of creditable service but less than twenty years, two thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-eight, and three thousand dollars if the retired member had at least thirty twenty-eight years of creditable service at the time of retirement, provided the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."
G. Section 9-1-1810 of the 1976 Code is amended to read:
"Section 9-1-1810. As of the end of each calendar year commencing with the year ending December 31, 1969, the increase in the ratio of the Consumer Price Index to the index as of December 31, 1968, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances shall commence commences the July first immediately following the December thirty-first that the increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances after the first five increases shall become is effective only if the additional liabilities, on account because of the increase in allowances, do not require an increase in the total employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."
H. Section 9-1-1850 of the 1976 Code, as last amended by Act 420 of 1994, is further amended to read:
"Section 9-1-1850. (A)(1) A member who has at least twenty-five years of creditable service in any retirement the system provided in this title chapter may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system South Carolina Retirement System the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:
Years to be Percentage of
Credited Salary
(a) not more
than one year 58 percent
(b) over one year but
not more than two years
54 percent for each year
(c) over two years
but not more than
three years 50 percent for each year
(d) over three years,
but not more than
four years 46 percentfor each year
(e) over four years 42 percent for each year
(2) The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.
(3) Any service credit purchased under this subsection qualifies the member for retirement, and the member must retire within ninety days after the purchase.
(B) As an alternative to the option provided in subsection (A), the member, if he has at least twenty-five years of creditable service, may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by him as an employee or member upon paying into his retirement system, during the ensuing number of years he wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after the member's retirement, he shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement, and the member must retire within ninety days subsequent to electing the option provided by subsection (B). The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes determining the member's average final compensation.
The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty twenty-eight years of service."
I. Section 9-11-310 of the 1976 Code is amended to read:
"Section 9-11-310. As of the end of each calendar year commencing with the year ending December 31, 1974, the increase in the ratio of the Consumer Price Index to such the index as of December 31, 1973, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three percent, the retirement allowance, exclusive of any part thereof derived from accumulated additional contributions, of each beneficiary in receipt of an allowance as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances must commence commences the July first immediately following the December thirty-first that the increase in ratio was determined.
Beginning with the calendar year ending December 31, 1981, all All increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances after the first five such increases shall become becomes effective only if the additional liabilities on account of the increase in allowances do not require an increase in the employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, must, when and if payable, must be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index (all items United States city average), for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics."
J. This section takes effect June 30, 2000./
Renumber sections to conform.
Amend totals and title to conform.
Rep. KOON explained the amendment.
Rep. M. MCLEOD moved to reconsider the vote whereby Amendment No. 6A was tabled and the motion was noted.
Rep. KOON moved to adjourn debate on the amendment, which was agreed to.
Rep. EDGE proposed the following Amendment No. 8A (Doc Name PSD\AMEND\7443AC99), which was adopted.
Amend the bill, as and if amended, Part II, Permanent Provisions by adding an appropriately numbered SECTION to read:
TO AMEND THE 1976 CODE BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
A. This act may be cited as the "Gambling Cruise Prohibition Act". It is the intent of the General Assembly in enacting this act to reinforce 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 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.
B. Chapter 19 of Title 16 of the 1976 Code is amended by adding:
"Section 16-19-170. (A) It is unlawful for a person to:
(1) violate any provision of this chapter or any other provision of the laws or Constitution of this State prohibiting gambling, however described, on a United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity to be conducted, whether within or without the waters of the State;
(2) manage, supervise, control, operate, or own any United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity which would violate any provision of this chapter or any other provisions of the laws or Constitution of this State prohibiting gambling, however described;
(3) repair a gambling device on a United States or foreign documented vessel described in item (1) or (2) of this subsection, regardless of the location of the United States or foreign documented vessel when the repairs are made.
(B) A person who violates any provision of this section 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. A violation under this section is a separate offense, and nothing in this section precludes prosecution for any other gambling offense."
C. 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.
C. This act takes effect upon approval by the Governor.
Renumber sections to conform.
Amend totals and title to conform.
Rep. EDGE explained the amendment.
Rep. KIRSH raised a Point of Order that Amendment No. 8A was out of order as it was not germane to the Bill in that it did not relate to a line item in Part IA of the Appropriations Bill.
Rep. EDGE stated that a letter from the Department of Revenue certified that the casino boats were to submit admissions tax revenue and there existed in Section 71 of the Appropriations Bill line items of 15 million dollars for admission taxes and therefore did relate to a line item in the budget.
SPEAKER WILKINS overruled the Point of Order.
Rep. EDGE continued speaking.
The amendment was then adopted.
Reps. ROBINSON, DELLENEY, EASTERDAY and RICE proposed the following Amendment No. 9A, which was adopted.
Amend the bill, as and if amended, Part II, by adding the following appropriately numbered section to read:
/ SECTION ____. A. Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2720. (A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices, in addition to the license required pursuant to Section 12-21-2784(A)(4) as applicable, shall apply for and procure from the South Carolina Department of Revenue a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and four thousand dollars an amount as provided in subsection (G) for each machine in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the C.O.D. license provisions of this section.;.
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or "flippers" operated by the player by which the course of the balls may be altered or changed. A machine required to be licensed under this item is exempt from the license fee if an admissions tax is imposed.;
(3) a machine of the nonpayout type, in-line pin game, or video game with free play feature machine as defined in Section 12-21-2772(5) operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed.
(B) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of three thousand six hundred the license amount less four hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period, but not less than three hundred sixty dollars.;
(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A).
(D) A county may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six the license amount less four hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period, but not less than three hundred sixty dollars.
(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee fees imposed in subsection (A) (G) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate.
(G) The machine owner of machines as defined in Section 12-21-2772(5) which have never been licensed shall pay a nonrefundable license fee for each machine of four thousand dollars. The machine owner of previously licensed machines shall pay a nonrefundable renewal license fee as follows:
Net Income of Machine in Twelve Biennial
Months Preceding License Date License Fee
Not more than $12,000 $3,000
More than $12,000 but not more than $24,000 $4,000
More than $24,000 but not more than $48,000 $6,000
More than $48,000 $8,000."
B. The 1976 Code is amended by adding:
"Section 12-21-2777. (A) In addition to license fees for machines licensed pursuant to Section 12-21-2720(A)(3), a tax of ten percent of the gross machine income of every machine is imposed on the machine owner.
(B) Unless the department exempts a taxpayer from this requirement, the taxes in this subsection must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this section on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.
(D) Unless the General Assembly determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents or other denomination, of the game;
(3) the name of the game;
(4) the name of the individual or individuals collecting money from the machine and the owner of the machine;
(5) the date or dates of collection;
(6) the date of previous collection;
(7) income number at commencement of the reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) payout to players;
(12) gross income of each machine.
(E) For machines connected to the central computer monitoring system, the department shall determine the tax on gross machine income on the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the tax due.
(F) As an interim procedure to collect the taxes in this section between the effective date of this section and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine these taxes due. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.
(G) An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.
(H)(1) Until a discrepancy under subsection (G) is resolved, the department may not make credit adjustments. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.
(2) A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.
(I) The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed on machines. However, before depositing revenues to this account, the department shall retain its costs and the costs of the State Law Enforcement Division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of Articles 19 and 20 of this chapter. All interest earned on revenues placed into the account remain with the account.
(J) Revenue deposited in this account must be distributed in a fiscal year as follows:
(1) four million dollars must be distributed to the South Carolina Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the sum allocated by this item must provide local gambling addiction services in each county. Distribution to each local county office for gambling addiction treatment must be made in accordance with the following formula:
(a) one-half of the funds based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December thirty-first of the preceding year;
(b) one-half of the funds based on the ratio of the population of each county to the total population of the State;
(2) of amounts remaining in this account, and as the General Assembly shall provide by law, sums must be provided for local law enforcement for enforcement of this article and Article 19 of this chapter and the remainder must be appropriated for nonrecurring purposes.
C. Section 12-21-2782 of the 1976 Code, as last amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2782. All video game machines licensed under Section 12-21-2720(A)(3), no later than December 31, 1998 September 1, 1999, or ninety days after the effective date of this September 1, 1999, provision, whichever is later, must:
(1) have games that are random and have a minimum payback of at least eighty percent in which the theoretical payout percentage is determined using standard methods of probability theory;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner; and
(4) be capable of interfacing with a computerized monitoring system to be selected by the department.
The technical standards established by the department must be designed so as to maximize competition in the market place among manufacturers.
Machines not meeting the standards of this section or regulation of the department may not be licensed. The license of any machine which fails to maintain the standards of this section or regulation of the department must be revoked."
D. Section 12-21-2784 of the 1976 Code, as added by Act 164 of 1993, is further amended to read:
"Section 12-21-2784. (A) Each machine manufacturer, distributor, operator, and licensed establishment must be licensed by the commission department pursuant to Article 19 of this chapter or this article, as applicable, and this article before a machine or associated equipment is manufactured, distributed, sold, or placed for public use in this State. The biennial fees for these licenses are as follows:
Every two years a manufacturer, distributor, machine operator, and establishment engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application. The fees are as follows:
(1) Manufacturer $10,000
(2) Distributor $15,000
(3) Machine Operator $2,000
(4) Licensed Establishment $1,000
(B) If a license purchased is for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under this section and Section 12-21-2728(A)(3).
(C) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.
(D) A license authorized in this section or Section 12-21-2728(A)(3) must not be issued until the department receives a completed background investigation showing that the standards provided for in Section 12-21-2805 have been met by the applicant.
(E) An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.
(F) A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right."
E. Section 12-21-2786 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2786. The placement of machines in licensed establishments is subject to the provisions of Article 19 of this chapter and the rules and regulations promulgated by the commission. (A) An establishment license must not be issued until the department determines that the location is proper. In determining whether 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;
(3) the likelihood that large crowds will gather from time to time with attendant breaches of the peace;
(4) the adequacy of law enforcement protection;
(5) the concentration in the area of other licensed establishments;
(6) compliance with this article; and
(7) all other pertinent information the department and division consider appropriate, or other information submitted for consideration.
(B) An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.
(C) The person applying for the establishment license closer than permitted under subsection (B) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:
(1) state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;
(2) tell an interested person where and when to send a written protest of the application;
(3) be in bold print; and
(4) cover a space at least eleven inches wide and eight and one-half inches high.
(D) The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.
(E) The provisions of this section apply to all applications. However, establishments in existence on the effective date of this section are not subject to the distance restrictions of this section and Section 12-21-2793 while the license is held by the same person who held the license on March 31, 1999.
(F) Notwithstanding any other provisions of law, a municipality or county, by ordinance, may regulate the location within the municipality or county of a licensed establishment by means of zoning or other ordinances generally applicable to classes of business activity. Before a machine may be licensed or relicensed, the owner of the machine must obtain a location license from the appropriate local government for a fee of one hundred dollars stating the licensed establishment is in compliance with all local ordinances, which must be issued by the local government upon its determination that machines in that establishment will conform to all local ordinances. The Department of Revenue may not issue an establishment license for any location which has not been issued a local location license. If a machine is relocated from the establishment for which the location license is issued, the Department of Revenue must revoke the license it has issued. A machine on which these games are played may be confiscated as contraband by the appropriate law enforcement agency when it is determined by the local agency enforcing the ordinance that the machine is placed in violation of the ordinance. A machine may be disposed of after it is confiscated as contraband after a hearing in a magistrate's court in the case of a county violation and before a municipal court in the case of municipal violation. The only two issues which may be raised at the hearing are whether or not:
(1) the machine is licensed under Section 12-21-2720(A)(3); and
(2) the location of the licensed establishment is prohibited by ordinance."
F. Section 12-21-2791 of the 1976 Code, as last amended by Act 53 of 1997, is further amended to read:
"Section 12-21-2791. (A) Any location licensed establishment which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts shall limit the cash payout for credits earned for free games to two thousand five hundred credits a player a location during any twenty-four hour period. The cash value of credits for each free game is limited to five cents and any person employed or working therein shall not allow more than two dollars to be risked, wagered, or played on any one play or hand.
B)(1) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:
(a) issue payouts of more than one hundred twenty-five dollars per day per location; or
(b) require any minimum number of credits before issuance of a validated payout ticket; or
(c) permit any player to receive a payout at the end of play greater than one hundred twenty-five dollars, regardless of the amount of money deposited into the machine; or
(d) produce at the completion of play validated tickets worth more than one hundred twenty-five dollars, regardless of the amount deposited in the machine; or
(e) allow at the completion of play the production of multiple tickets with a collective value of greater than one hundred twenty-five dollars or any other schemes to evade the one hundred twenty-five dollars per hand and cash out limits provided above.
(2) The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than one hundred twenty-five dollars.
(C) The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) and (B) is found."
(D)(1) The owner of each machine licensed pursuant to Section 12-21-2720(A)(3) shall keep or cause to have kept at the licensed establishment where the machine is located a record or log book with the following:
(a) the license number of that machine, its location and the name, address, and social security or tax identification number of the owner thereof;
(b) the name, address, and social security number of any individual to whom a cash payout is made regarding payout credits, or free games from that machine. If the individual is not an American citizen or is otherwise lawfully without a social security number, the record or log book shall so state attested to by that individual's signature. The responsibility for determining whether or not the individual is lawfully without a social security number rests with the owner of the machine or his agent. In this event, other identifying information as required by regulation of the department shall be obtained.
(c) the amount of the cash payout to that individual and his signature in the record or log book acknowledging receipt of same;
(d) the name and address of the owner or other person who was financially responsible for the cash payout; and
(e) a written certification made under penalty of perjury in the record or log book by the owner of the machine or his agent that the number of free games or credits on the machine as a result of that player's payout was reset at zero after the cash payout.
(2) The provisions of item (1) of this subsection are in addition to any other requirements provided by law and are imposed on the owner of the licensed machine who along with his agents or operators on the premises where the machine is located shall be charged with a violation of this subsection if a violation occurs. Violations of this subsection shall be punished as provided in Section 12-21-2804(F) and the machine confiscated in the manner provided by law. Failure to keep a record or log book in the manner required herein is also deemed a violation of this subsection.
(E) The department beginning September 1, 1999, or ninety days after the effective date of this subsection, whichever is later, may require the computer monitoring systems of all licensed machines to delete the number of free games or credits reflected on the machine as a result of a player's payout if the player receives a cash payout for these free games or credits."
G. Section 12-21-2802 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2802. (A) Each machine licensed machine under this article or Article 19 must have a prominently displayed sign citing the penalties provided by Sections 12-21-2790, 12-21-2792, and 12-21-2794 on the wall above the machine or affixed prominently to the machine. Every licensed establishment shall have at least one sign prominently posted and visible to the players stating: 'NO PAYMENT GREATER THAN ONE HUNDRED TWENTY-FIVE IS ALLOWED REGARDLESS OF THE AMOUNT DEPOSITED IN THE MACHINES.' The commission department shall make these signs available free of charge.
(B) In addition to all other signs required under this section, a machine owner must obtain from the department for a fee of one hundred dollars a white warning label that must be prominently and permanently affixed to each machine. The label must contain the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services. The revenue of this fee must be credited to the Department of Alcohol and Other Drug Abuse Services for gambling addiction treatment programs."
H. Section 12-21-2804 of the 1976 Code, as last amended by Act 53 of 1997, is further amended to read:
"Section 12-21-2804. (A)(1) No person shall apply for, receive, maintain, or permit to be used, and the commission department shall not allow to be maintained, permits or licenses for the operation of more than eight machines authorized under Section 12-21-2720(A)(3) at a single place or premises for the period beginning July 1, 1993, and ending July 1, 1994. After July 1, 1994, the commission department may not issue nor authorize to be maintained any licenses or permits for more than five machines authorized under Section 12-21-2720(A)(3) at a single place or premises. Any licenses or permits issued for the operation of machines authorized under Section 12-21-2720(A)(3) during the period of July 1, 1993, and July 1, 1994, for a two-year period shall continue in effect after July 1, 1994, provided that during the period of July 1, 1994, and July 1, 1995, no person shall maintain at a single place or premises more than eight machines authorized under Section 12-21-2720(A)(3). In addition after July 1, 1999, the department is authorized to issue licenses for machines under Section 12-21-2720(A)(3) only in accordance with the provisions of subsection (H).
(2) 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) licensed establishment that derives the primary and substantial portion of its proceeds from these machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this provision including, but not limited to, gross machine income by months, gross proceeds by month from all other sources, invoices for purchases, cash payouts by month, bank deposits, and all checking, savings, and similar account records. The term "gross proceeds" from the machines means the establishment's portion.
(3) The commission department 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)(1) 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 or 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) except as permitted in items (2) or (3) of this subsection.
(2) The offering of inducements, defined as any attempt to influence a person to play machines including, but not limited to, the following are prohibited:
(a) free or discounted food or beverages;
(b) free or discounted games other than credits won through authorized play;
(c) prizes, either at the doors or through drawings or other means;
(d) coupons offering any of the above; or
(e) cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are also prohibited.
A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.
(3)(a) A licensed establishment may advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.
(b) Nothing in this item prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.
(c) No person may advertise in a misleading or deceptive manner.
(d) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated hereunder in any manner that suggests winning, money, or wealth.
(e) Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.
(f) No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.
(g) Signs and nonbroadcast advertising in existence on the effective date of this item are not subject to the provisions of this item until July 1, 2001, if notice is given to the department in the manner it requires.
(C)(1) A licensed establishment including its employees and agents, may not:
(a) No allow any person under twenty-one years of age may to receive a payout as a result of the operation of the machines licensed under Section 12-21-2720(A)(3).;
(b) cash any business, personal, or employment checks of any individual or business;
(c) make loans to any individual or business;
(d) accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(e) extend credit, in any manner, to a player; or
(f) allow playing of machines by a person in an intoxicated condition.
(2) No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under Articles 19 and 20 of this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under Articles 19 and 20 of this chapter and its license or permit issued under Title 61.
(D) No owner, operator, or marketer may be issued a permit by the commission department for machines pursuant to Section 12-21-2720(A)(3) unless the owner, operator, or marketer has been a resident of the State for two years. The commission department shall require a statement of residency to be filed with the commission department as part of the application process for permits issued under Section 12-21-2720(A)(3) on forms and in a manner the commission department considers appropriate. Background investigations as provided for in Section 12-21-2805 are also required.
(E) It is unlawful to operate machines licensed under Section 12-21-2720(A)(3) between the hours of midnight Saturday night and six o'clock a.m. Monday morning two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.
(F) A person violating subsections subsection (A), (B), (C), (D), or (E), or (H) of this section is subject to a fine of up to five thousand dollars to be imposed by the commission department for each violation. 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. The commission department shall also revoke the any licenses of any person issued pursuant to the provisions of Article 19 of this chapter for a violation of subsection (C) of this section. Revocation is pursuant to the procedures set forth in Section 12-54-90.
(G)(1) In addition to any other penalties provided by law, the department, for a violation of Section 12-21-2808(E) or Section 12-21-2809, may:
(a) impose a civil penalty in an amount not to exceed five thousand dollars on the owner of the machine, or the person who obtained, or was required to obtain, the retail sales tax license for the place or premises pursuant to Section 12-21-2703, or both; and
(b) revoke the license of the machine giving rise to the violation and any other machine licensed to the same holder in any county where such machines are prohibited pursuant to Section 12-21-2809; and
(c) seize the offending machine and dispose of it as contraband.
(2) The penalties authorized by this subsection are effective immediately upon imposition and may not be stayed by any administrative or judicial action. The sole remedy available under this subsection is a hearing before the Administrative Law Judge Division on the question of the legality of the machine under Section 12-21-2809 and the reasonableness of the penalties imposed. Further appeals are as provided in Section 12-60-3380.
(H)(1) Except as provided in item (2) of this subsection, machines must not be operated, or continue to operate, at any casino, casino-style gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117-190 of the South Carolina Code of Regulations. In determining whether an establishment violates this subsection, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this subsection are subject to review under Section 12-60-1310.
(2) All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117-190 must:
(a) on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(b) advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(c) once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of March 15, 1999, as provided in the statement required in subitem (d);
(d) never increase the number of machines permitted by this subsection after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used herein, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;
(e) not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and
(f) on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.
(3) Any person claiming the provisions of item (2) of this subsection has the burden of proof and must establish by clear and convincing evidence that he is entitled_to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment is subject to all limitations of this subsection.
(4)(a) No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(b) After September 1, 1999, entities as described in this subsection are permitted to re-apply for, and may be granted renewal of a license for a maximum of one biennial licensure period under the provisions of this subsection. After completing that period, a new license must not be issued under this subsection."
I. The 1976 Code is amended by adding:
"Section 12-21-2805. (A)(1) The State Law Enforcement Division shall conduct background investigations on those persons associated with the operation of machines licensed pursuant to Section 12-21-2720(A)(3) and the licenses required pursuant to Section 12-21-2784. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of these machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this section.
(2) The division shall:
(a) promptly and in a reasonable order, investigate all applications, enforce the provisions of Articles 19 and 20 of this chapter, and provide to the department all information to allow the department to issue or deny the license;
(b) provide the department with all information necessary for all actions under Articles 19 and 20 this chapter and for all proceedings involving enforcement of the provisions of Articles 19 and 20 of this chapter or any regulations;
(c) investigate violations under Articles 19 and 20 of this chapter and any regulations;
(d) conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with Articles 19 and 20 of this chapter;
(e) receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of Articles 19 and 20 of this chapter and regulations;
(f) exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;
(g) have the authority to request and receive information, materials, and any other data from any person; and
(h) report to the department any recommendations that promote more efficient operations of the division or the department.
(3) In connection with the responsibilities under Articles 19 and 20 of this chapter, the division or the department and their employees and agents may:
(a) inspect and examine all establishments where machines are operated;
(b) inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;
(c) inspect all equipment and supplies in, about, upon, or around the establishment;
(d) seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;
(e) inspect, examine, and audit all records pertaining to an applicant's operation;
(f) seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.
(4) The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.
(5) The division may inspect any applicant or licensee for compliance with the provisions of Articles 19 and 20 of this chapter and regulations and to investigate any violations.
(B)(1) Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, and their principals.
(2) As a condition of receiving a license under the provisions of Articles 19 and 20 of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of Articles 19 and 20 of this chapter.
(3) Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under Articles 19 and 20 of this chapter must be used to do so.
(4) Each applicant and principal shall cooperate with the division and the department in the performance of their duties.
(5) Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.
(C)(1) The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:
(a) a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:
(i) any offense punishable by imprisonment for two or more years;
(ii) any gambling offense;
(iii) theft or any crime involving false statements or declarations.
(b) a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described above;
(c) omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;
(d) association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;
(e) failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;
(f) that the applicant owes any federal or state delinquent taxes, penalties, or interest.
(2) The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.
(D)(1) Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.
(2) Distributors, principals, machine owners, machine operators, and technicians, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.
(E)(1) The applicant for a license shall provide detailed information regarding:
(a) the ownership and management, including information on all principals;
(b) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(c) federal registration with respect to gambling devices; and
(d) any other information considered necessary by the department for the proper administration and enforcement of Articles 19 and 20 of this chapter.
(2) The department and the division are authorized to develop applications and other forms.
(3) The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.
(4) The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.
(5) As a condition of receiving a license under the provisions of Articles 19 and 20 of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of Articles 19 and 20 of this chapter is conducted.
(F)(1) The applicant shall provide the local governing authority information related to the application for any license issued under Articles 19 and 20 of this chapter.
(2) Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.
(G)(1) The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.
(2) The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.
(3) The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.
(4) The department or division shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn."
J. Section 61-4-580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(3) permit gambling or games of chance not authorized by Article 20, Chapter 21 of Title 12;"
K. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this act, the General Assembly declaring that it would have passed this act, and 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
L. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
M. This section takes effect July 1, 1999, or as otherwise stated. Machines licensed for a period ending May 31, 2001, continue to be valid until the expiration of their term. /
Renumber sections to conform.
Amend title to conform.
Rep. ROBINSON explained the amendment.
Rep. HAYES spoke against the amendment.
Rep. JENNINGS spoke against the amendment.
Rep. YOUNG-BRICKELL spoke against the amendment.
Rep. DELLENEY spoke in favor of the amendment.
Rep. HASKINS spoke in favor of the amendment.
Rep. WILKES spoke against the amendment.
The question then recurred to the adoption of the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Bales Barrett Beck Brown H. Campsen Cato Cooper Cotty Davenport Delleney Easterday Edge Emory Fleming Gamble Gilham Hamilton Harrell Harris Haskins Hawkins Hines M. Kirsh Klauber Koon Lanford Leach Limehouse Littlejohn Loftis Lucas Mason McCraw McKay McMahand Meacham Neal Phillips Quinn Rice Riser Robinson Rodgers Sandifer Sharpe Sheheen Simrill Smith D. Smith F. Smith R. Stille Townsend Tripp Vaughn Walker Wilkins
Those who voted in the negative are:
Askins Bailey Barfield Battle Bowers Breeland Brown G. Brown T. Carnell Chellis Clyburn Cobb-Hunter Dantzler Gourdine Govan Harrison Harvin Hayes Hines J. Hinson Howard Inabinett Jennings Keegan Kelley Kennedy Knotts Law Lee Lloyd Lourie Mack Maddox McGee McLeod M. McLeod W. Miller Neilson Ott Parks Pinckney Rhoad Rutherford Scott Seithel Smith J. Stuart Taylor Webb Whatley Whipper Wilder Wilkes Woodrum Young-Brickell
So, the amendment was adopted.
Rep. J. SMITH proposed the following Amendment No. 10A (Doc Name DKA\AMEND\3507MM99), which was tabled.
Amend the bill, as and if amended, PART II, by striking SECTION 52 and inserting:
TO AMEND SECTION 9-1-1515, OF THE 1976 CODE, RELATING TO EARLY RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEMS, SO AS TO REDUCE THE EARLY RETIREMENT AGE FROM FIFTY-FIVE TO FIFTY YEARS AND TO ELIMINATE THE SPECIAL BENEFIT REDUCTION FACTOR APPLIED TO THE BENEFITS PAID AN EARLY RETIREE WHEN THE MEMBER, BEFORE RETIRING, MAKES A LUMP SUM PAYMENT TO THE SYSTEM IN AN AMOUNT EQUAL TO TWENTY PERCENT OF THE MEMBER'S EARNABLE COMPENSATION FOR EACH YEAR OF CREDITABLE SERVICE LESS THAN THIRTY OR THE AVERAGE OF THE MEMBER'S TWELVE HIGHEST CONSECUTIVE FISCAL QUARTERS OF COMPENSATION AT THE TIME OF PAYMENT, WHICHEVER IS LARGER, AND TO REQUIRE THE MEMBER TO RETIRE NOT MORE THAN NINETY DAYS AFTER THE PAYMENT.
A. Section 9-1-1515(A) and (B) of the 1976 Code, as added by Act 559 of 1990, is amended to read:
"(A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five fifty years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his the member's early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty. However, a member's early retirement allowance is not reduced if the member pays into the system, in a lump sum payment before the member's retirement, an amount equal to twenty percent of the member's earnable compensation or the average of the member's twelve highest consecutive fiscal quarters of compensation at the time of payment, whichever is greater, prorated for periods less than one year for each year of creditable service less than thirty. The member's retirement must occur not more than ninety days after the date of the payment."
B. This section takes effect July 1, 1999, and applies with respect to members of the South Carolina Retirement Systems electing early retirement pursuant to Section 9-1-1515 of the 1976 Code on and after that date. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. J. SMITH explained the amendment.
Rep. J. SMITH moved to table the amendment, which was agreed to.
Rep. J. SMITH proposed the following Amendment No. 11A (Doc Name DKA\AMEND\3508MM99):
Amend the bill, as and if amended, Part IB, item (1) Department of Education, subsection (B) of Paragraph 72.83, by inserting an appropriately lettered subitem to read:
/ ( ) School Safety Officers $10,000,000 /
Reletter subitems and renumber sections to conform.
Amend totals and title to conform.
Rep. J. SMITH moved to adjourn debate on the amendment, which was agreed to.
Rep. CARNELL proposed the following Amendment No. 12A (Doc Name BBM\AMEND\9301SOM99), which was ruled out of order.
Amend the bill, as and if amended, Part II, by adding an appropriately numbered SECTION to read:
TO AMEND SECTION 9-9-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE GENERAL ASSEMBLY RETIREMENT SYSTEM AND THE AGE AT WHICH A RETIRED MEMBER OF THE GENERAL ASSEMBLY WHO WORKS IN A CORRELATED SYSTEM MAY ELECT TO RECEIVE RETIREMENT BENEFITS FROM THE GENERAL ASSEMBLY, SO AS TO CHANGE THE AGE AT WHICH THE ELECTION MAY OCCUR.
A. Section 9-9-40(3) of the 1976 Code, as amended by Act 497 of 1994, is further amended to read:
"(3) As used in this item 'correlated system' shall mean one or more of the following:
(a) South Carolina Retirement System;
(b) South Carolina Police Officers' Retirement System;
(c) Retirement System for members of the General Assembly of the State of South Carolina.
If a member of a correlated system ceases to occupy a position covered under the system and if, within the protective period and under the conditions set forth in the correlated system for continuation of membership therein, he accepts a position covered by another correlated system, he shall notify the director of each system of the employment, and his membership in the first system is continued so long as his membership in the other system continues. Service credited to the members under the provisions of the first system is considered service credits for the purpose of determining eligibility for benefits, but not the benefit amount, under the other system. A benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that system, and is payable at the times and subject to the age and service conditions set forth. A member is not eligible to receive retirement payments so long as he is employed in a position covered by the South Carolina Retirement System or the South Carolina Police Officers' Retirement System. Notwithstanding the provisions of this paragraph, a member of the Retirement System for Members of the General Assembly who is (1) at least sixty-five sixty-two years of age, (2) not currently serving in the General Assembly, and (3) eligible to receive retirement benefits from the General Assembly System but for the member's current employment covered by a correlated system may elect to receive retirement benefits from the General Assembly System."
B. This section takes effect July 1, 1999. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. CARNELL explained the amendment.
Rep. COTTY spoke against the amendment.
Rep. KIRSH raised a Point of Order that Amendment No. 12A was out of order as it was not germane to the Bill in that it did not relate to a line item in Part IA of the Appropriations Bill.
SPEAKER WILKINS sustained the Point of Order and ruled the amendment out of order.
Rep. J. SMITH proposed the following Amendment No. 13A (Doc Name PT\AMEND\1502DW99), which was tabled.
Amend the bill, as and if amended, PART II, by adding a new SECTION appropriately numbered to read:
TO AMEND TITLE 12 OF THE 1976 CODE RELATING TO TAXATION, BY ADDING CHAPTER 22 SO AS TO PROVIDE FOR THE REGULATION, LICENSING, TAXATION, AND CIVIL AND CRIMINAL ENFORCEMENT OF VIDEO GAME MACHINES WITH A FREE PLAY FEATURE, ARCADE GAME MACHINES, AND OTHER DEVICES INCLUDING PROVISIONS TO VEST PRIMARY ENFORCEMENT AND REGULATORY POWERS IN THE DEPARTMENT OF REVENUE AND THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION, TO PROVIDE FOR LICENSE FEES ON MACHINE MANUFACTURERS, DISTRIBUTORS, TECHNICIANS, OWNERS, AND OPERATORS, TO PROVIDE LICENSE FEES FOR MACHINES AND LICENSED ESTABLISHMENTS, TO PROVIDE FOR AN IMPOSITION OF TAXES ON NET MACHINE INCOME AND ON PLAYER PAYOUTS, TO PROVIDE FOR THE USE OF REVENUES GENERATED BY THIS CHAPTER, TO PROVIDE FOR LOCATION RESTRICTIONS AND CASINO PROHIBITIONS AND THE PHASING OUT OF EXISTING CASINOS, TO PROVIDE FOR PUBLIC NOTICE AND OTHER NOTIFICATION PROVISIONS TO THE GENERAL PUBLIC, TO PROVIDE FOR THE MANNER IN WHICH AND REQUIREMENTS UNDER WHICH THESE MACHINES MAY BE PLAYED INCLUDING PROHIBITING THE OFFERING OF INDUCEMENTS, THE REGULATION OF ADVERTISING, AND CERTAIN LIMITATIONS ON BETS AND PAYOUTS, TO PROVIDE FOR TECHNICAL STANDARDS AND SPECIFICATIONS FOR THESE MACHINES AND THEIR EQUIPMENT, TO PROVIDE FOR BACKGROUND INVESTIGATIONS OF PERSONS ASSOCIATED WITH THE OPERATION OF THESE MACHINES AND THE ACTIONS THE DEPARTMENT MAY TAKE AS A RESULT OF THE BACKGROUND INVESTIGATIONS, TO PROVIDE PROCEDURES FOR LICENSE REVOCATIONS AND PENALTIES, TO PERMIT CIVIL ACTIONS UNDER SPECIFIED CONDITIONS FOR CERTAIN VIOLATIONS, TO PROVIDE CRIMINAL PENALTIES FOR CERTAIN VIOLATIONS, TO PROVIDE FOR THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MAY ALSO LICENSE AND TAX THESE MACHINES, AND TO PROVIDE FOR SEPARATE REQUIREMENTS FOR THE REGULATION, LICENSING, TAXATION, AND ENFORCEMENT OF ARCADE GAME MACHINES AND OTHER AMUSEMENT DEVICES INCLUDING A PROVISION THAT PROHIBITS CASH PAYOUTS; TO AMEND SECTION 12-60-3370, RELATING TO BOND REQUIRED PRIOR TO A TAXPAYER APPEAL TO CIRCUIT COURT, SO AS TO REQUIRE A BOND OF A PERSON APPEALING CERTAIN VIDEO GAME MACHINE VIOLATIONS TO THE CIRCUIT COURT AND TO PROVIDE CIVIL MONETARY SANCTIONS IF THE APPEAL IS UNSUCCESSFUL; TO AMEND SECTION 61-4-580, RELATING TO PROHIBITED ACTS REGARDING BEER AND WINE, SO AS TO PROVIDE THAT ACTIVITIES AUTHORIZED BY CHAPTER 22 OF TITLE 12 ABOVE ON THE PREMISES OF ESTABLISHMENTS LICENSED TO SELL BEER AND WINE ARE NOT A PROHIBITED ACT IN ESTABLISHMENTS PERMITTED FOR OFF PREMISES CONSUMPTION AND TO REQUIRE A SEPARATE ROOM FOR MACHINES IN PREMISES WITH ON PREMISES CONSUMPTION PERMITS AND LICENSES AND TO PROHIBIT THE CONSUMPTION OF ALCOHOLIC LIQUORS, BEER, AND WINE IN THIS SEPARATE ROOM AND TO PROVIDE FOR REVOCATION OF LICENSES AND PERMITS FOR VIOLATIONS; TO ADD SECTIONS 16-19-65, 16-19-66, AND 16-19-67 SO AS TO MAKE IT UNLAWFUL FOR ANY PERSON TO KEEP CERTAIN TYPES OF GAME OR SLOT MACHINES ON HIS PREMISES, TO MAKE IT UNLAWFUL FOR ANY PERSON TO OPERATE SUCH MACHINES, TO MAKE IT UNLAWFUL FOR ANY PERSON TO CHEAT OR DEFRAUD THE OWNER OF A LAWFUL MACHINE OF ITS CONTENTS, TO PROVIDE PENALTIES FOR VIOLATIONS AND AUTHORIZE THE SEIZURE OF UNLAWFUL MACHINES, TO PROVIDE STANDARDS FOR VIDEO GAME MACHINES, MODEMS, LOCATION CONTROLLERS, SOFTWARE, HARDWARE, THE CENTRAL COMPUTER MONITORING SYSTEM, AND ASSOCIATED EQUIPMENT UNTIL THE DEPARTMENT OF REVENUE ADOPTS SUCH STANDARDS PURSUANT TO CHAPTER 22 OF TITLE 12 ABOVE; AND TO REPEAL ARTICLE 19, CHAPTER 21 OF TITLE 12 RELATING TO COIN-OPERATING MACHINES, DEVICES, AND OTHER AMUSEMENTS AND ARTICLE 20, CHAPTER 21 OF TITLE 12 RELATING TO THE VIDEO GAME MACHINES ACT.
1. Title 12 of the 1976 Code is amended by adding:
Section 12-22-10. As used in this chapter, unless the context clearly requires otherwise:
(1) 'Director" means the Director of the Department of Revenue.
(2) 'Chief' means the Chief of the South Carolina State Law Enforcement Division.
(3) 'Division' means the South Carolina State Law Enforcement Division.
(4) 'Associated equipment' means a device, machine, replacement part, or part used in the manufacture, operation, or maintenance of a machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.
(5) 'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.
(6) 'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.
(7) 'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.
(8) 'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.
(9) 'Distributor' means any person who sells, buys and sells, or leases machines or associated equipment. A distributor may also own, operate, service, or repair machines in this State.
(10) 'Establishment' or 'location' means premises with machines.
(11) 'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash is available to play or simulate the play of games utilizing a video display and microprocessors in which the player may receive free games or credits that may be redeemed for cash. Each player station of a multi-player unit is a separate machine.
(12) 'Machine owner' means any person, other than a distributor, who owns one or more machines.
(13) 'Machine operator' means any person who owns or manages an establishment with one or more machines.
(14) 'Manufacturer' means any person that manufactures, assembles, or programs machines, controllers, or associated equipment for sale or use in this State.
(15) 'Net machine income' means the amount of money that goes into the machine less payouts.
(16) 'Payout' means the total amount a player is paid at the end of play, regardless of the amount the player has deposited in the machine.
(17) 'Player' means a person who participates in the playing of a machine.
(18) 'Principal' of a business or entity means:
(a) a person who is an officer of the business or entity which owns the business;
(b) a partner, other than a limited partner who cannot exercise any management control;
(c) a manager of a limited liability company which is managed by managers;
(d) a member of a limited liability company which is managed by members;
(e) a fiduciary, including personal representatives, trustees, guardians, committees and receivers, who manages, holds or controls title to or who is otherwise in direct or indirect control of the business;
(f) a person who owns five percent or more of the total combined voting power of the business or entity;
(g) a person who owns ten percent or more of the value of the business or entity; or
(h) an employee who has day-to-day operational management responsibilities for the business or entity.
(19) 'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division considers necessary to administer and enforce the provisions of this chapter.
(20) 'Type I Technician' means a person qualified to perform basic service, maintenance, and repair on machines.
(21) 'Type II Technician' means a person qualified to perform major machine repairs, configurations, communication, and diagnostic testing of machines.
(22) 'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.
Section 12-22-20. Unless specifically granted to the division, the functions, duties, and powers set forth in this chapter are vested in the department. The department shall administer and enforce the provisions of this chapter, and may enter agreements with any agency or the division to execute the provisions of this chapter.
Section 12-22-30. Except as provided in Section 12-54-240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is public information, except for proprietary information of the central computer monitoring system. The department may disclose information to the division and to other governmental entities in and outside of this State.
Section 12-22-40. The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.
Section 12-22-50. The department or the division may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.
Section 12-22-60. The license fees, taxes, and penalties provided for in this chapter are a first preferred lien upon all property of the person charged. The department may execute on the lien.
Section 12-22-70. The only forms of gambling which are legal in this State are bingo, played in accordance with Article 24 of Chapter 21 of Title 12, and games played on licensed machines operated in accordance with this chapter.
Section 12-22-80. The department and the division have the right to examine all records of an applicant and the applicant's principals, those records under their control, and those records in which they have an interest to evaluate statements and documentation supplied with the application. All records must be retained for at least the period for which taxes may be assessed under Section 12-54-85.
Section 12-22-90. Any person otherwise subject to the provisions of this chapter, but who claims the benefit of an exemption from certain of its requirements in any manner, on or before September 1, 1999, shall notify the department in a statement made under penalty of perjury that he is claiming the benefits of a specific provision, shall state all reasons for claiming the benefits of the provision, and shall identify all licenses claimed to be related to that exemption. The person claiming the benefit of such a provision has the burden of proof and shall establish by clear and convincing evidence that he is entitled to the benefits claimed.
Section 12-22-100. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly declaring that it would have passed this chapter, and 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Section 12-22-110. (A) The department shall require that every location and owner of each machine licensed herein to maintain a log of payoffs of the Maximum amount of five hundred dollars for at least three years that shall include, at a minimum, the following:
(1) a separate form or record of each person receiving a payoff;
(2) the name and address of the person receiving the payoff;
(3) the social security number of the person receiving the payoff;
(4) a statement of the amount of the payoff;
(5) the driver's license number or other official identification number of the person receiving the payoff, which must be independently verified by the operator prior to any payoff being made;
(6) a signed certification by the machine operator or owner and the player, under penalty of perjury, that the information provided is complete and accurate; and
(7) attachment to the log all validated tickets related to the payoffs.
(B) The department by regulation may prescribe the form or format of the log required in subsection (A).
Section 12-22-310. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine must be licensed.
(C) Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as provided in Section 12-22-330(K).
Section 12-22-320. (A) Every two years a manufacturer, distributor, machine owner, machine operator, establishment, type I technician, and type II technician, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application. The fees are as follows:
(1) Manufacturer $10,000
(2) Distributor $15,000
(3) Machine Owner $2,000
(4) Machine Operator $2,000
(5) Licensed Establishment $1,000
(6) Type I and Type II Technicians $500
(B) Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. The expiration dates are the last day of:
(1) February in years which end in an:
(a) odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;
(b) even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;
(2) May in years which end in an:
(a) odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;
(b) even number for Lancaster, Marion, Marlboro, Union, and York counties;
(3) August in years which end in an:
(a) odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;
(b) even number for Richland County;
(4) November in years which end in an:
(a) odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;
(b) even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.
(5) If a license purchased is for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under this section and Section 12-22-340.
(C) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.
(D) A license authorized in this section must not be issued until the department receives a completed background investigation showing that the standards provided for in Article 13 have been met by the applicant.
(E) An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.
(F) A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.
(G) All licenses described in subsection (A) issued before the effective date of this chapter expire May 31, 2000.
Section 12-22-330. (A)(1) Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State. The machine owner shall pay a first time nonrefundable biennial fee of four thousand dollars for each machine license and thereafter on all renewals shall pay a nonrefundable fee for each machine license as follows:
Net Income of Machine in Twelve
Months Preceding License Date Biennial License Fee
Not more than $12,000 $3,000
More than $12,000 but not more than $24,000 $4,000
More than $24,000 but not more than $48,000 $6,000
More than $48,000 $8,000.
(2) Except as provided in subsections (C) and (D) below, all licenses begin on June first and, except as provided in subsection (D), all licenses expire May thirty-first of the second year that the license is valid following the date of issue.
(B) The machine owner shall purchase a separate license for each station in a multi-player unit and each station counts as a separate machine when determining the number of machines.
(C) If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(D) As an alternative to the license required in subsection (A), a machine owner may be granted a nonrefundable seasonal license effective April first and expiring September thirtieth, following the date of issue. This license must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(E) A municipality, by ordinance, may impose a license fee on machines in an amount not to exceed three hundred sixty dollars for the equivalent license period. A municipality may not limit the number of machines within the boundaries of the municipality.
(F) A county, by ordinance, may impose a license fee on machines located in an unincorporated area of the county in an amount not to exceed three hundred sixty dollars for the equivalent license period.
(G) A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.
(H) A machine licensed under the provisions of subsection (A) must not be operated at an establishment unless the establishment is licensed pursuant to the provisions of this chapter and Chapter 36 of Title 12.
(I) Upon application for a license to operate any machine, the department may presume that the operation of the machine is lawful. The issuance of a license by the department does not make lawful the operation of any machine, the operation of which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(J) Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.
(K)(1) A licensed machine owner may transfer a machine with its machine license only to another licensed machine owner. Notification for the transfer of the machine must be made to the department at least thirty days before the transfer. The notification of transfer must include a notarized statement of both parties identifying the machine by VGMID.
(2) A licensed machine owner may transfer a machine license required by this section to any other machine owned by the machine owner if the department is notified before the transfer.
(L) The machine owner shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.
(M) Four hundred dollars of the license fee imposed in subsection (A) must be retained by the department and expended for the implementation and ongoing operation of the monitoring system, administration, enforcement of this chapter, or other programs and services as the department may determine necessary and appropriate.
(N) No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application.
Section 12-22-340. The department may issue an initial temporary license pending the approval of the application to any license applicant who has operated machines before the effective date of this chapter if the applicant signs a statement under penalty of perjury that he has no knowledge of any reason for denial of a license. The temporary license may be revoked.
Section 12-22-350. Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.
Imposition of Tax on Net Machine Income and Payouts Tax
Section 12-22-510. (A) In addition to the license fees, a tax of thirty percent of the net machine income of every machine is imposed on the machine owner.
(B) In addition to the license fees and the tax in subsection (A), an additional tax is levied on the net machine income of every machine within an establishment which is within five hundred feet of another establishment in the same structure, and both establishments have machines with a same owner or principal. The tax is as follows:
(1) five percent of net machine income beginning June 1, 2000; and
(2) ten percent of net machine income beginning June 1, 2001; and
(3) fifteen percent of net machine income beginning June 1, 2002.
(C) An entertainment tax of seven percent on a player's payouts is imposed on the machine owner.
(D) The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.
Section 12-22-520. For the tax imposed by Section 12-22-510(C), each machine owner shall withhold seven percent of payouts from the player.
Section 12-22-530. (A) Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.
(B) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.
(C) Unless the department determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents, etc. of the game;
(3) the name of the game;
(4) the name of the individual or individuals collecting money from the machine and the owner of the machine;
(5) the date or dates of collection;
(6) the date of previous collection;
(7) income number at commencement of the reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) payout to players;
(12) gross profit; and
(13) the percentage of net profits divided between owner and the location and the formula by which those figures are calculated.
(D) For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income and the tax on payouts as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax and the entertainment tax.
Section 12-22-540. As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-530. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.
Section 12-22-550. An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.
Section 12-22-560. (A) Until a discrepancy under Section 12-22-550 is resolved, the department may not make credit adjustments. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.
(B) A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.
Section 12-22-570. (A) The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed by this article. However, before depositing revenues to this account, the department shall retain its costs and the costs of the division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of this chapter. All interest earned on revenues placed into the account remain with the account and must be distributed in accordance with this section.
(B) Revenue deposited in this account must be distributed in a fiscal year as follows:
(1) four million dollars must be distributed to the South Carolina Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the sum allocated by this item must provide local gambling addiction services in each county. Distribution to each local county office for gambling addiction treatment must be made in accordance with the following formula:
(a) one-half of the funds based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December thirty-first of the preceding year;
(b) one-half of the funds based on the ratio of the population of each county to the total population of the State;
(2) of amounts remaining in this account, and as the General Assembly shall provide by law, not less than twenty percent must be used for local infrastructure needs including, but not limited to, water and sewer service projects, with the balance used for education projects.
Section 12-22-580. Machine operators may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.
Section 12-22-590. Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.
Section 12-22-810. (A) An establishment license must not be issued until the department determines that the location is proper. In determining whether 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;
(3) the likelihood that large crowds will gather from time to time with attendant breaches of the peace;
(4) the location of automatic teller machines as provided for in Section 12-22-840(6);
(5) the adequacy of law enforcement protection;
(6) the concentration in the area of other licensed establishments;
(7) compliance with Section 12-22-840; and
(8) all other pertinent information the department and division consider appropriate, or other information submitted for consideration.
(B) An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.
(C) The person applying for the establishment license closer than permitted under subsection (B) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:
(1) state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;
(2) tell an interested person where and when to send a written protest of the application;
(3) be in bold print; and
(4) cover a space at least eleven inches wide and eight and one-half inches high.
(D) The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.
(E) The provisions of this section apply to all applications. However, establishments in existence on the effective date of this chapter are not subject to the distance restrictions of subsection (B) of this section and Section 12-22-840 while the license is held by the same person who held the license on March 31, 1999, and the licensee complies with Section 12-22-90.
Section 12-22-820. (A) Except as provided in subsection (B), machines must not be operated, or continue to operate, at any casino, casino-style gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117-190 of the South Carolina Code of Regulations. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.
(B) All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117-190 must:
(1) on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(2) advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(3) once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of March 15, 1999, as provided in the statement required in item (5);
(4) never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;
(5) not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and
(6) on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.
(C) Any person claiming the provisions of subsection (B) has the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment is subject to all limitations of this section.
(D)(1) No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(2) After September 1, 1999, entities as described in this subsection are permitted to re-apply for, and may be granted renewal of a license for a maximum of one biennial licensure period. After completing that period, a new license must not be issued.
Section 12-22-830. (A) A person residing in the county in which an establishment license is requested to be granted, or a person residing within five miles of the establishment for which an establishment license is requested, may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:
(1) the name, address, and telephone number of the person filing the protest;
(2) the name of the applicant for the establishment license and the address of the establishment sought to be licensed;
(3) the specific reasons why the application should be denied; and
(4) whether he wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.
(B) Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.
(C) If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.
Section 12-22-840. (A) A licensed establishment, including its employees and agents, may not:
(1) maintain, possess, or otherwise allow on its premises more than five machines;
(2) advertise, or allow advertising, in any manner for the playing of the machines except as provided in Section 12-22-850;
(3) offer or allow to be offered any inducement to a person for the playing of machines;
(4) allow anyone under the age of twenty-one to receive payouts as a result of playing machines;
(5) operate machines between the hours of two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.
(6) cash any business, personal, or employment checks of any individual or business;
(7) make loans to any individual or business;
(8) accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(9) extend credit, in any manner, to a player;
(10) be located within five hundred feet within a county, or 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; or
(11) allow playing of machines by a person in an intoxicated condition.
(B) The distances in this article must be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the 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; house of worship; or other establishments with machines.
(C) No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under this chapter and its license or permit issued under Title 61.
Section 12-22-850. (A) The offering of an inducement as prohibited in Section 12-22-840 means any attempt to influence a person to play machines including, but not limited to:
(1) free or discounted food or beverages;
(2) free or discounted games other than credits won through authorized play;
(3) prizes, either at the doors or through drawings or other means;
(4) coupons offering any of the above; or
(5) cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.
(B) A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.
Section 12-22-860. (A) A licensed establishment may advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.
(B) Nothing in this section prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.
(C) No person may advertise in a misleading or deceptive manner.
(D) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.
(E) Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 A.M. and 11:00 P.M.
(F) No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.
(G) Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2001, if notice is given to the department as required in this chapter.
Section 12-22-870. (A) A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:
(1) 'A person must be twenty-one years of age to receive payouts from a video game machine.'
(2) 'It is illegal to offer inducements to a person to play video game machines.'
(3) 'All games are random. Games are set to issue a minimum theoretical payout of at least ninety percent.'
(4) 'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'
(5) 'Validated tickets may be redeemed for cash.'
(6) 'Seven percent is withheld on all payouts.'
(7) 'Violators are subject to civil and criminal penalties.'
(8) 'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'
(9) 'No payout of greater than five hundred dollars is allowed, regardless of the amount deposited in the machine.'
(B) The sign required by subsection (A) must be placed on the wall behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.
(C) Each machine licensed under this article must have a prominently displayed sign citing the penalties provided for tampering, skimming, and intentional manipulation as provided for in this article. The sign must be displayed on the wall above the machine or affixed prominently to the machine.
(D) In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.
Section 12-22-880. (A) A licensed establishment may not derive the primary and substantial portion of its proceeds from machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this section including, but not limited to, gross machine income by months, gross proceeds by month from all other sources, invoices for purchases, cash payouts by month, bank deposits, and all checking, savings, and similar account records.
(B) The department shall revoke the establishment's license and all machine licenses in the establishment if the establishment is in violation of this section.
Section 12-22-890. Each licensed establishment shall maintain on the premises a copy of this chapter for review by the public upon request.
Section 12-22-1010 Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.
Section 12-22-1020. (A) All machines, location controllers and associated modems, computer chips, and any other part of a machine must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.
(B) A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.
Section 12-22-1030. (A) Within ninety days after the effective date of this chapter, all machines must meet the following standards, and machine owners shall certify to the department, under oath, and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system. All machines must:
(1) have games that are random and have a minimum payout of between ninety percent and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner;
(4) not have any means of manipulation that affect the random probabilities of winning a game;
(5) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;
(6) have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;
(7) be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;
(8) be capable of interfacing with a central computer monitoring system through a location controller;
(9) when requested by the department after certification, be connected to the central computer monitoring system through a location controller;
(10) meet the standards set by the department and those set forth in this chapter; and
(11) not offer on the face of the machine or in any pay table the possibility of receiving a payout greater than five hundred dollars for a single play or hand or at the time of cashing out.
(B) Machines not meeting the standards of this chapter, or the standards of the department, must not be licensed. The license of any machine which fails to maintain the standards of this chapter, or any standards of the department, must be revoked.
(C) When the department approves the software and logic board of a machine, the division may use a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar technology must be done in the presence of a division employee.
Section 12-22-1040. (A) As part of the central computer monitoring system, each location operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.
(B) This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.
(C) The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.
(D) Each location controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) store log entries of openings of machine game doors;
(3) store log entries of openings of machine coin or currency doors;
(4) authorize a machine to be taken off-line from the location controller and store a log of this event;
(5) disable a machine and store a log entry upon a game door open, and a coin door open;
(6) store a log entry if machine is off-line from the location controller;
(7) store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;
(8) store a log entry of reenabling a machine that has been disabled;
(9) log entries which include a VGMID for each machine and date/time stamp;
(10) communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;
(11) have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;
(12) have an internal clock;
(13) be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;
(14) be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment;
(15) be capable of validating tickets printed by a machine.
Section 12-22-1050. The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.
Section 12-22-1060. The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The department may also establish a state testing laboratory. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner.
Section 12-22-1070. A machine owner shall notify the department before a machine is added, moved, replaced, or disconnected.
Section 12-22-1080. The licensed establishment or machine owner shall notify the department before a location controller is added, moved, or disconnected.
Section 12-22-1090. (A) Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following must occur:
(1) a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;
(2) a count-down timer must be displayed; and
(3) if the player completes the game, all payouts must be reported on a payouts ticket and no other games are allowed to be played on that machine;
(4) if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the manufacturer's recommended play strategy, all payouts must be reported on a payouts ticket, and the machine then disabled.
Section 12-22-1100. (A) Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-1110. (A) Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went on-line; and the bank account from which the taxes are withdrawn.
(B) The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.
Section 12-22-1120. (A) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:
(1) allow more than five dollars to be risked, wagered, or played on any one play or hand; or
(2) issue payouts of more than five hundred dollars on any one play or hand;
(3) require any minimum number of credits before issuance of a validated payouts ticket;
(4) permit any player to receive a payout at the end of play greater than five hundred dollars, regardless of the amount of money deposited into the machine;
(5) produce at the completion of play validated tickets worth more than five hundred dollars regardless of the amount deposited in the machine;
(6) allow at the completion of play the production of multiple tickets with a collective value of greater than five hundred dollars or any other schemes to evade the five hundred dollars per hand and cash out limits provided above; or
(7) offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than five hundred dollars for a single play or hand or at the time of cashing out.
(B) The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) is found.
Section 12-22-1130. A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:
(1) the full name, address, and license number of the person or entity disposing of the machine;
(2) the manufacturer's serial number of the machine;
(3) the model number and description of the machine;
(4) the manufacturer of the machine;
(5) the VGMID of the machine;
(6) the hard meter readings of the machine;
(7) the licensed establishment at which the machine was located;
(8) the proposed manner, time, and place of disposal.
Section 12-22-1140. A machine must not simulate bingo or a slot machine.
Section 12-22-1150. Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.
Section 12-22-1160. All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.
Section 12-22-1170. The department, in its discretion, may approve alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.
Section 12-22-1180. The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than five hundred dollars.
Section 12-22-1310. (A) The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.
(B) The division shall:
(1) promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;
(2) provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;
(3) investigate violations under this chapter and any regulations;
(4) conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with this chapter;
(5) receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;
(6) exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;
(7) have the authority to request and receive information, materials, and any other data from any person; and
(8) report to the department any recommendations that promote more efficient operations of the division or the department.
(C) In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:
(1) inspect and examine all establishments where machines are operated;
(2) inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;
(3) inspect all equipment and supplies in, about, upon, or around the establishment;
(4) seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;
(5) inspect, examine, and audit all records pertaining to an applicant's operation;
(6) seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.
(D) The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.
(E) The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.
Section 12-22-1320. (A) Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, service technicians, and their principals.
(B) As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.
(C) Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.
(D) Each applicant and principal shall cooperate with the division and the department in the performance of their duties.
(E) Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.
Section 12-22-1340. (A) The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:
(1) a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:
(a) any offense punishable by imprisonment for two or more years;
(b) any gambling offense;
(c) theft or any crime involving false statements or declarations.
(2) a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;
(3) omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;
(4) association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;
(5) failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;
(6) that the applicant owes any federal or state delinquent taxes, penalties, or interest.
(B) The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.
Section 12-22-1350. (A) Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.
(B) Distributors, principals, machine owners, machine operators, and technicians, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.
Section 12-22-1360. (A) The applicant for a license shall provide detailed information regarding:
(1) the ownership and management, including information on all principals;
(2) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(3) federal registration with respect to gambling devices; and
(4) any other information considered necessary by the department for the proper administration and enforcement of this chapter.
(B) The department and the division are authorized to develop applications and other forms.
(C) The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.
(D) The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.
(E) As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.
Section 12-22-1370. (A) The applicant shall provide the local governing authority information related to the application for any license issued under this chapter.
(B) Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.
Section 12-22-1380. (A) The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.
(B) The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.
(C) The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.
(D) The department or division shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.
Section 12-22-1510. (A) The department may revoke licenses required under this chapter held by any person who fails to comply with any provision of this chapter or any provision of a regulation pertaining to this chapter. In lieu of revocation of licenses, the department may suspend licenses. In addition, the department may impose a monetary penalty of not more than five thousand dollars for each failure to comply with a provision of this chapter or any provision of a regulation pertaining to this chapter. Each violation and each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.
(B) With respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this section.
Section 12-22-1520. (A) A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if:
(1) the person wilfully tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) the person wilfully excludes, or takes any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;
(3) the person wilfully manipulates the outcome, payoff, or operation of a machine;
(4) the person wilfully launders or knowingly allows another to launder money through one or more machines;
(5) the person knowingly possesses, owns, operates, or allows the operation of, a contraband machine, or contraband device, at any place within this State;
(6) on or after September 1, 1999, or the nineteenth day following the effective date of this chapter, whichever is later, the person operates, or allows the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;
(7) the person intentionally skims or excludes, or takes any action, in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines;
(8) the person operates an establishment in this State for the playing of machines without having a license;
(9) the person conducts business in this State as a machine or location controller manufacturer, a machine owner, or a distributor without having a license;
(10) the person operates machines without having a machine license; or
(11) the person managing or otherwise having the charge or care of a licensed establishment, or the owner of a video game machine, wilfully violates items (1), (2), (3), (4), (5), (6), (7), (8), (9), or (11) of Section 12-22-840(A), each being a separate offense under this section.
Section 12-22-1525. Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 16-17-410.
Section 12-22-1530. (A) The following activities are criminal violations of this chapter:
(1) refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State;
(2) refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.
(B) A violator is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than or imprisonment of not more than thirty days, or both. Each failure to have a license required under this chapter constitutes a separate offense. Offenses under this item are triable in magistrate's court.
Section 12-22-1540. (A) The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1510:
(1) tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) excluding, or take any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;
(3) manipulating the outcome, payoff, or operation of a machine;
(4) possessing, owning, operating, or allowing the operation of, a contraband machine or device at any place within this State;
(5) operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter; or
(6) conspiring to subvert the provisions of this chapter.
Section 12-22-1550. In addition to all other civil and criminal penalties, any person operating a contraband machine must be assessed a civil penalty in an amount equal to the statewide average of cash placed into a machine for the longer of its time of operation or twelve months.
Section 12-22-1560. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) The establishment at which the machines are located has had its establishment license or retail sales tax license revoked or suspended.
(2) The license assigned to the machine has been revoked or suspended.
(3) The machine owner has had his machine owner's license revoked or suspended.
(4) The machine license has expired and no new license has been issued by the expiration date.
(5) The central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason must be enabled again as soon as the problem has been resolved.
(6) The central computer monitoring system has disabled a machine, upon request, in order for it to be moved or relocated.
(B) A machine disabled for revocation of licenses as set forth in item (1), (2), or (3) of subsection (A) of this section must not operate in this State for a period of five years from the date of the revocation. The five-year prohibition also applies to any part of the machine. Any machine, to include its parts, which is not allowed to operate in this State under the provisions of this section, must be stored by the owner in a facility approved by the department or division.
Section 12-22-1570. (A) Any person may bring a civil action for any violation of any of the provisions of this chapter. The case must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the case may seek any fine or penalty that the State may seek.
(B) A copy of the complaint must be served on the Attorney General and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.
(C) If the State joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twenty-five percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.
(D) If the State does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twenty-five percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.
(E) The State is not liable for expenses which a person incurs in bringing an action under this section.
(F) No settlement may be entered without approval by the department.
(G) Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.
Section 12-22-1580. The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.
Section 12-22-1590. In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.
Section 12-22-1710. Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.
Section 12-22-1720. Every person required to obtain a license for any machine or device described in Section 12-22-1730 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.
Section 12-22-1730. (A) Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(3) a machine of the nonpayout type, in-line pin game operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed;
(4) billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.
(B) The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(C) Machines which have multiplayer stations must have a separate license for each such station.
(D) As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(E) If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(F) Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(G) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.
(H) The department, upon notification by the licensee purchasing machines from another licensee, shall allow for the transfer of the license issued pursuant to subsection (A) upon sale of the machine and license to the new owner. Notification for the transfer of the machine must be made to the department at least five days before transfer of the machine. This notification of sale must include a notarized statement of both the purchaser and seller identifying the machine by serial identification number and machine license number.
(I) The license issued pursuant to this section must be displayed conspicuously on the front of the machine on a permanent, nontransferable part of the machine before its operation commences. The license must always be a current and valid license.
Section 12-22-1740. (A) In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1730 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Section 12-22-1730(A)(1) and (A)(4);
(2) two hundred dollars for devices in Sections 12-22-1730(A)(2) and 12-22-1730(A)(3).
(B) 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) The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(D) Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.
(E) The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.
Section 12-22-1750. In lieu of the licenses required under Sections 12-22-1730 and 12-22-1740, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-1730 and 12-22-1740. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.
Section 12-22-1760. Machines or devices licensed pursuant to Section 12-22-1730(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-1770. A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.
Section 12-22-1780. In addition to the penalties provided in Section 12-22-1770, any machine or device not having the required license attached, or which is improperly licensed, may be seized and confiscated by the division, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may return the property seized and confiscated.
Section 12-22-1790. Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twelve dollars and fifty cents.
Section 12-22-1800. A person required to obtain a license for any machine or device described in Section 12-22-1730 must have attached to the machine or device information identifying the owner or operator of the machine or device. The identification must be placed on a part of the machine or device which is visible for inspection purposes. This identification is a condition precedent before the machine or device may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter and of Chapter 54 as applicable.
Section 12-22-1810. If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee."
2. Section 12-60-3370 of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"Section 12-60-3370. (A) Except as provided below, a taxpayer shall pay, or post a bond for, all taxes, including interest, penalties, and other amounts determined to be due by the Administrative Law Judge or DMV hearing officer before appealing the decision to the circuit court. For property tax cases covered by Section 12-60-2140 or 12-60-2550, the taxpayer need only pay the amount assessed under the appropriate section.
(B) If the revocation or suspension of any license required under Chapter 22 of this title for the disabling of any video game machines via the central computer monitoring system is upheld by a decision of the Administrative Law Judge Division, then the person appealing the decision to the circuit court shall post a cash or surety bond with the department equal to three times the net machine income of the last two calendar quarters for the video game machines in question or in operation at the licensed establishment. As an alternative, the person appealing the decision may pay twice a month, to the department as a cash bond, the net machine income from the video game machines in question or in operation at the licensed establishment. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of any amount determined by the court to be due.
(C) If the revocation or suspension of licenses or the disabling of machines is upheld upon appeal, the person subject to the revocation, suspension, or disabling is liable for and shall pay to the department an amount equal to the net machine income from the date of the decision by the Administrative Law Judge Division to the date of the final court order."
3. Section 61-4-580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(3) permit gambling or games of chance not authorized by Chapter 22 of Title 12;"
4. Chapter 19, Title 16 of the 1976 Code is amended by adding:
"Section 16-19-65. (A) It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
(B) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than or imprisoned for a period of not more than one year, or both.
(C) Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if satisfied that it is in violation of this section or any other law of this State, shall direct that it be immediately destroyed.
Section 16-19-66. (A) It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.
(B) It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.
(C) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.
Section 16-19-67. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."
5. In accordance with Article 9, Chapter 22, Title 12 of the 1976 Code, the Department of Revenue may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in Chapter 22 of that title including the provisions of Section 12-22-1580 of the 1976 Code relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts 1 through 4 of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 of the 1976 Code apply for purposes of this section.
Technical standards for Machines and Location Controllers
(A) Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.
(B) Each machine must be capable of monitoring and storing the following items:
(1) The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:
(a) cash in, defined as money in dollars and cents;
(b) credits purchased;
(c) credits earned or won;
(d) credits played;
(e) credits paid;
(f) cash paid.
(2) The following security events and the time and date of such events:
(a) game door open;
(b) coin-bill/drop door open;
(c) power off/on;
(d) off line/on line to the location controller;
(e) game control board access (logic area).
(C) Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.
(D) Each machine is not allowed to operate if it is not connected in on-line mode to a location controller meeting the requirements set forth by the department.
(E) A machine must collect the data required in Section 12-22-1040(C) of the 1976 Code and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event required in Section 12-22-1040(C) of the 1976 Code may reflect a time and date stamp and the VGMID of the machine.
(F) A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.
(G) A machine must be capable of being disabled by the central computer monitoring system or the location controller.
(H) A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.
(I) A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.
(J) Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.
(A) A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.
(B) A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.
(C) A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.
(D) The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.
(E) Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.
(F) The internal space of a machine must not be readily accessible when the front door is closed or sealed.
(G) Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.
(H) The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.
(I) No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.
(J) A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.
(K) The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.
(L) A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1580 relating to the time such penalties apply without regard to stays.
(M) Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.
(A) Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.
(B) Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.
(C) Electronic meters also must record security events, with the time and dates, to include game door open, coin-bill/drop door open, power off/on, off line/on line to the location controller, and game control board access.
(D) No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.
(E) Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:
(1) each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chi-squared analysis;
(2) each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;
(3) each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and
(4) each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.
(F) All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner.
(A) For purposes of this part, multiplayer units are divided into two general groups:
(1) units that share some common components (Group I); and
(2) units that share most components (Group II).
(B) Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.
(C) Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:
(1) Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.
(2) Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.
(D) A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.
(1) Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.
(2) Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location controller and go directly to the dealer's station and then back to the location controller. All communications must be sent from the central system and the site controller exactly as detailed in the communications protocol. The dealer's station is responsible for handling all of the communications for the player stations. If the system asked for meters for station number one, the dealer's station is responsible for collecting and sending that data to the central system. The central system must behave exactly as if there are five separate machines. EPROM signature calculations must be performed over the dealer's station program code and transmitted back five times just as if there are five machines all running the same game code. All security, accounting, cash ticket, and event reporting functions must be supported in full.
(E) The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.
6. Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are repealed.
7. The repeal or amendment by this section of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this section, all laws repealed or amended by this section must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this section, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
8. Except where otherwise provided, this section takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. J. SMITH moved to table the amendment, which was agreed to.
Rep. STILLE proposed the following Amendment No. 14A (Doc Name PT\AMEND\1504SD99), which was rejected.
Amend the amendment of Representative Jennings (Doc No. Anabell\Librarys\HouseDesk\Council\GJK\Amend\20636SD99), as and if amended, by adding a new Section 12-22-120 immediately after Section 12-22-110 on page 7 to read:
/ Section 12-22-120. Video game machines licensed pursuant to the provisions of this chapter may only be played with an electronic microprocessing card in the manner the department shall require by regulation. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. STILLE explained the amendment.
The question then recurred to the adoption of the amendment.
Rep. STILLE demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Barrett Campsen Carnell Cato Cooper Delleney Easterday Edge Emory Fleming Gamble Gilham Hamilton Harris Haskins Hawkins Hines M. Kirsh Klauber Koon Lanford Leach Littlejohn Loftis Maddox Martin Mason McCraw McLeod W. Meacham Neal Phillips Rice Robinson Sandifer Scott Sheheen Simrill Smith D. Stille Townsend Tripp Vaughn Walker Webb Wilder
Those who voted in the negative are:
Allen Askins Bailey Barfield Battle Beck Bowers Breeland Brown G. Brown H. Brown T. Chellis Clyburn Cobb-Hunter Cotty Dantzler Davenport Harrell Harrison Harvin Hayes Hines J. Hinson Howard Inabinett Jennings Keegan Kelley Kennedy Knotts Law Lee Limehouse Lloyd Lourie Mack McGee McLeod M. Miller Ott Parks Rhoad Rutherford Seithel Sharpe Smith F. Smith J. Smith R. Taylor Whatley Whipper Wilkes Woodrum Young-Brickell
So, the amendment was rejected.
Rep. J. SMITH proposed the following Amendment No. 15A (Doc Name BBM\AMEND\9306AC99), which was adopted.
Amend the bill, as and if amended, Part IB, item (1) Department of Education, subsection (B) of Paragraph 72.83, by inserting an appropriately lettered subitem to read:
/ ( ) School Safety Officers $14,000,000 /
Reletter subitems and renumber sections to conform.
Amend totals and title to conform.
Rep. J. SMITH explained the amendment.
Rep. HARRELL spoke against the amendment.
Rep. H. BROWN spoke against the amendment.
Rep. FLEMING moved to table the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barrett Beck Brown H. Campsen Chellis Dantzler Easterday Fleming Gilham Hamilton Harrell Harrison Hawkins Hinson Keegan Kelley Kirsh Koon Leach Limehouse Littlejohn Loftis Mason McGee McKay Meacham Rice Riser Robinson Rodgers Sandifer Smith R. Stuart Tripp Vaughn Walker Webb Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Allen Bailey Bales Battle Bowers Breeland Brown G. Carnell Cato Clyburn Cobb-Hunter Davenport Delleney Emory Gamble Gourdine Govan Harris Harvin Haskins Hayes Hines J. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Lloyd Lourie Lucas Mack McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Scott Seithel Sharpe Sheheen Simrill Smith F. Smith J. Stille Taylor Whatley Whipper Wilder Wilkes
So, the House refused to table the amendment.
The question then recurred to the adoption of the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allen Askins Bailey Bales Battle Beck Bowers Breeland Brown G. Carnell Cato Clyburn Cobb-Hunter Davenport Delleney Emory Gamble Gourdine Govan Harris Harvin Haskins Hawkins Hayes Hines J. Hines M. Howard Inabinett Jennings Kennedy Klauber Knotts Lanford Lee Lloyd Lourie Lucas Mack Maddox Mason McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Rutherford Sandifer Scott Seithel Sharpe Sheheen Simrill Smith F. Smith J. Stille Stuart Taylor Whatley Whipper Wilder Wilkes
Those who voted in the negative are:
Allison Altman Barfield Barrett Brown H. Campsen Chellis Cotty Dantzler Easterday Edge Fleming Gilham Hamilton Harrell Harrison Hinson Keegan Kelley Kirsh Koon Law Leach Limehouse Littlejohn Loftis Martin McGee McKay Meacham Quinn Rice Riser Robinson Rodgers Smith D. Smith R. Townsend Tripp Vaughn Walker Wilkins Witherspoon Woodrum Young-Brickell
So, the amendment was adopted.
Reps. YOUNG-BRICKELL, KNOTTS, QUINN and HAYES proposed the following Amendment No. 16A, which was tabled.
SECTION 2. Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2710. It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
SECTION 3. Section 12-21-2712 of the 1976 Code is amended to read:
"Section 12-21-2712. Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."
SECTION 4. (A) Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:
"(3) a machine of the nonpayout type, or in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed."
(B) Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A)."
(C) Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, if further amended by deleting subsections (E) and (F), which read:
"(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."
SECTION 5. Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:
"Section 12-21-2726. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, 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."
SECTION 6. Section 12-54-40 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsection (g) which reads:
"(g) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."
SECTION 7. Section 16-19-40 of the 1976 Code is amended to read:
"Section 16-19-40. If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
SECTION 8. Section 16-19-50 of the 1976 Code is amended to read:
"Section 16-19-50. Any person who shall set up, keep or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."
SECTION 9. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 10. Title 12 of the 1976 Code is amended by adding:
Section 12-22-100. As used in this chapter, unless the context indicates otherwise:
(1) 'Director' means the Director of the Department.
(2) 'Chief' means the Chief of the Division.
(3) 'Division' means the South Carolina State Law Enforcement Division.
(4) 'Associated equipment' means a device, machine, replacement part, or part used in the manufacture, operation, or maintenance of a machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.
(5) 'Background investigation' means the investigation conducted in accordance with Article 5 of this chapter.
(6) 'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.
(7) 'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues winnings tickets redeemable for cash.
(8) 'Device' means a coin-operated device described in Sections 12-22-320(A)(1) and (A)(2) and 12-22-325.
(9) 'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.
(10) 'Distributor' means any person who sells, buys and sells, or leases machines or associated equipment. A distributor may also own, operate, service, or repair machines in this State.
(11) 'Establishment' or 'location' means premises with machines.
(12) 'Gross machine income' means the amount of money that goes into the machine.
(13) 'Gross profits' means the amount of money that goes into the machine less
winnings.
(14) 'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash or coin, is available to play or simulate the play of games utilizing a video display and microprocessors in which the player may receive free games or credits that may be redeemed for cash. Each player station of a multi-player unit is a separate machine.
(15) 'Machine owner' means any person, other than a distributor, who owns one or more machines.
(16) 'Machine operator' means any person who owns, operates or manages an establishment with one or more machines.
(17) 'Manufacturer' means any person that manufactures, assembles, or programs machines, controllers, or associated equipment for sale or use in this State.
(18) 'Player' means a person who participates in the playing of a machine.
(19) 'Principal' means every person; association; all partners of a partnership; trust and its beneficiaries; corporation, its directors, officers, and stockholders with a ten percent or more direct or beneficial interest; or other entity who has or will have a direct or indirect ownership interest in the applicant, the machines, or the establishment for which license is sought.
(20) 'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division reasonably considers necessary to administer and enforce the provisions of this chapter.
(21) 'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.
(22) 'Winnings' means amounts printed on validated tickets from a licensed machine which may be paid to a player.
Section 12-22-110. (A) Unless specifically granted to the Division, the Department has all powers necessary and proper to fully and effectively execute the provisions of this chapter including, but not limited to, the power:
(1) notwithstanding 12-54-240, to enter into agreements with any department, agency, or instrumentality of the United States or this State for the purpose of regulating and controlling coin-operated devices and to enforce the provisions of this chapter and may disclose information to the division and to other governmental entities in and outside South Carolina;
(2) to investigate applicants for any license authorized to be issued under this chapter and to determine the eligibility of applicants for licenses;
(3) to exercise jurisdiction over and to supervise all coin-operated devices;
(4) to inspect and conduct investigations by entering the offices, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with the provisions of this chapter is likely to be found and to be present through its inspectors and agents any time gaming operations are conducted for the purpose of certifying the revenue thereof, receiving complaints from the public, and conducting other investigations into the conduct of the games and the maintenance of machines;
(5) to review any licenses issued under the provisions of this chapter and to investigate alleged violations of this chapter and to take appropriate disciplinary action against any licensee including the imposition of penalties for a violation, disabling of machines, suspension of licenses, or revocation of licenses, or the institution of appropriate legal action for enforcement;
(6) to require that the records of any licensee must be kept in the manner prescribed by the Department. All records shall be retained for at least the period for which taxes may be assessed under Section 12-54-85;
(7) to require of applicants and their principals access for the department and division to all of the applicant's financial records pertaining to the financing of the applicant in order to evaluate statements and documentation supplied with the application in connection with background investigations;
(8) to require any person to submit any information necessary to effectively administer and enforce the provisions of this chapter;
(9) to issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents in accordance with Chapter 4 of Title 12, to administer oaths and affirmations to witnesses, and receive and weigh testimony;
(10) to prescribe the forms which must be used by any licensee involved in the ownership or operation of coin-operated devices;
(11) to issue, deny the issuance of, suspend, or revoke any license authorized by this chapter, so long as the Department's action is in compliance with the provisions of this Chapter 60 of Title 12;
(12) to suspend any license authorized by this chapter without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by the licensee or the condition of the licensee's facilities; any suspension must remain in effect until the Department determines that the cause for the suspension has been abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress toward abating the hazard;
(13) to delegate the execution of any of its powers under this chapter for the purpose of administering and enforcing this chapter;
(14) to establish hours of operation for enrollment and support of machines connected to the central computer monitoring system and to charge reasonable fees for services provided outside the hours of 8:30 a.m. to 5:00 p.m., Monday through Friday.
(15) to adopt regulations in accordance with the Administrative Procedures Act; and
(16) to take any other action as may be reasonable or appropriate to enforce this chapter.
(B) Notwithstanding subsection (A), any law enforcement officer has the authority to enforce any criminal provision of this chapter.
Section 12-22-120. The director, the employees of the department, the chief, and the employees of the division, may not directly or indirectly, individually, or as a member of a partnership, or as a shareholder of a corporation, have a financial or ownership interest in any machine, machine owner, manufacturer, distributor, or establishment.
Section 12-22-125. Any person who would otherwise be subject to the provisions of this chapter, but who claims the benefit of an exemption from certain of its requirements in any manner must, on or before September 1, 1999, notify the department in a statement made under penalties of perjury that he is claiming the benefits of a specific provision, must state all reasons for claiming the benefits of the provision, and must identify all licenses claimed to be related to that exemption. The person claiming the benefit of such a provision shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to the benefits claimed.
Section 12-22-300. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, establishment, and distributor shall be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine shall be licensed.
Section 12-22-310. (A) At the time provided for in Section 12-22-345, a manufacturer, distributor, machine owner, machine operator, and establishment, engaging in business in this State, shall apply for and obtain from the department biennially a license for the privilege of engaging in the business and shall pay the fee levied at the time of license application. The fee is two thousand dollars.
(B) Except as provided in Article 5, a license authorized in this section shall not be issued unless and until the department has completed its background investigation.
Section 12-22-315. (A) The department may issue licenses authorized under this chapter to qualifying applicants.
(B) If application is made for a license under this chapter, all principals are deemed to be the applicants under this chapter.
( C) The department may not issue a license under this chapter to any applicant unless the applicant and all principals meet the requirements this chapter.
Section 12-22-320. (A) Every person who owns, or maintains for use, or permits the use of on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in South Carolina and shall pay for the license a tax of fifty dollars for each device in item (1), two hundred dollars for each machine in item (2), and four thousand dollars for each device in item (3):
(1) a device for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A device on which an admissions tax is imposed is exempt from the coin operated device license provisions of this section;
(2) a device for the playing of amusements or video games, without free play feature, devices of the crane type operated by a slot in which is deposited a coin or thing of value and a device for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the device is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A device required to be licensed under this item is exempt from the license fee if an admissions tax is imposed; and
(3) a machine of the nonpayout type, in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except devices of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed.
(B) The owner or operator of any machine which is exempt by Section 16-19-60 which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine or device when determining the number of machines or devices authorized for licensure under Section 12-22-800(A).
(C) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this chapter.
(D) Failure to remit taxes to the State is justification for the cancellation of the license provided in this section.
(E) The department shall not issue a license for the operation of a machine which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) A license for a machine included in Section 12-22-320(A)(3) shall be issued only to a person who has been licensed pursuant to Section 12-22-310 for use at a licensed establishment. No machine included in Section 12-22-320(A)(3) may be operated without a license.
(G) No machine licensed under the provisions of Section 12-22-320(A)(3) may be operated at an establishment unless the establishment is licensed pursuant to the provisions of Chapter 36 of Title 12.
Section 12-22-325. (A) Every person owning or operating a billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table for profit shall apply for and procure from the department a license for the privilege of operating the table and pay for the license a biennial tax of fifty dollars for each table owned or operated.
(B) Every person who maintains for use, or permits the use, on any place or premises occupied by him, any devices subject to the license imposed by subsection (A) of this section shall see that the proper state license is attached to a permanent, nontransferable part of the device before its operation is commenced.
Section 12-22-330. (A) In addition to all other licenses required by this chapter, a person who owns devices described in Sections 12-22-320(A)(1), (A)(2), and 12-22-325 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Sections 12-22-320(A)(1) and 12-22-325; and
(2) two hundred dollars for devices in Section 12-22-320(A)(2).
(B) Only one license is required pursuant to this section 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.
(C) The licenses provided by this section are subject to Section 12-22-345 and are a condition precedent to engaging in or the continuing operation of machines or devices described in this chapter.
Section 12-22-335. Every person required to obtain a license required under Section 12-22-320(A)(3) shall maintain records showing the manufacturers' serial number, model, or type of machine and the VGMID.
Section 12-22-340. In lieu of the license required under Sections 12-22-320(A)(1) and (2), 12-22-325, and 12-22-330 the Department may issue a temporary license to persons making application to operate devices defined in Sections 12-22-320 (A)(1), (A)(2) and 12-22-335 at a recognized county or state fair. The temporary license is the total amount of license fees required on all devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-320(A)(1) and (2), 12-22-325 and 12-22-330. The license is valid for the specific location designated on the license and the number of devices for which application was made and expires when the designated fair officially ends.
Section 12-22-345. (A) Every person subject to payment of tax under Sections 12-22-320 and 12-22-325, in advance on or before the first day of June every two years or before doing an act taxable under this article, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the tax levied for it. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(B) As an alternative to the license required in subsection (A), a person may be granted a
nonrefundable license beginning April first and to expire September thirtieth, following the date
of issue, which may not be prorated. The fee for this six-month license is one-fourth the biennial
license fee.
( C) If a license required in subsection (A) is purchased after June thirtieth, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under Sections 12-22-320 and 12-22-325.
(D) Biennial licenses for machine owners, machine operators, distributors, manufacturers or establishments issued under this chapter expire according to the county where the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. The expiration dates are the last day of:
(1) February in years which end in an:
(a) odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;
(b) even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;
(2) May in years which end in an:
(a) odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;
(b) even number for Lancaster, Marion, Marlboro, Union, and York counties;
(3) August in years which end in an:
(a) odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;
(b) even number for Richland County;
(4) November in years which end in an:
(a) odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;
(b) even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.
If a license purchased will be for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under Sections 12-22-310 and 12-22-330.
(E) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method deemed appropriate by the department.
(F) All licensees issued to establishments prior to the effective date of this act are revoked. All licensees issued to persons pursuant to Section 12-22-345(D) shall expire at the time stated in Section 12-22-345(D).
Section 12-22-500. (A) The department shall issue the license required by Section 12-22-310 to the applicant upon a determination by the department that the applicant is eligible for the license pursuant to the provisions of this chapter.
(B) The application must be made on forms provided by the department and the applicant must submit any information required by this chapter. An application which contains material omissions or misrepresentations is cause for denial, suspension, or revocation of a license and disabling of all machines of that owner.
(C)The applicant for a license must provide detailed information regarding:
(1) the ownership and management, including information on all principals;
(2) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(3) federal registration with respect to gambling devices; and
(4) any other information deemed necessary by the department for the proper administration and enforcement of this chapter.
(D)(1) In addition to the information contained on the department's application form as provided in subsection (C), if not contained on the form, the applicant for a license must disclose at the time of filing the application form the identity and address of every principal.
(3) When the applicant has principals it must disclose any information required by the department to obtain fingerprints and criminal background checks for the principals so that an applicant may not circumvent the purpose of this section. Failure to comply with a reasonable request of the department is grounds to deny or revoke a license.
(E) A person applying for a license or is required under this article to undergo a criminal history background check shall undergo a state fingerprint review to be conducted by the division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection may be required upon subsequent applications.
(F) A person with a license issued pursuant to this chapter has an affirmative duty to maintain on file with the department a current and correct disclosure of the identity of and updated information on all those persons and principals required to be disclosed in subsections (C) and (D).
(G) At the time of filing the application for a license, the applicant must pay the fee imposed pursuant to Section 12-22-310.
Section 12-22-505. (A) Upon receipt of a timely and complete application for a license required by Sections 12-22-300 and 12-22-310, the department or its designee must begin a background investigation using the information in the application as a basis for a thorough investigation which the department must conduct with respect to each applicant.
(B) The department may request the assistance of the division in conducting the background investigation on an applicant.
(C) The department must not issue, or must revoke, a license pursuant to Sections 12-22-300 and 12-22-310 if the person, applicant, or principal of the applicant:
(1) has been convicted within the last fifteen years of a state or federal felony; gambling offense; criminal fraud; or a crime with a sentence of two or more years; or
(2) has had a gambling license in another jurisdiction revoked; or
(3) has submitted an application which contain material information which is false; or
(4) the person was determined to be liable for, or agreed that he was liable for, a civil judgment based in whole or in part upon criminal conduct which carries a penalty of imprisonment for two or more years, or violations of gambling laws, or consumer fraud; or
(5) has any outstanding tax or fee liability with the department; or
(6) the applicant for a machine license under Section 12-22-320(A)(3) has not been a resident of the State for two years.
(D) The applicant for a license required by this chapter, and all principals of the applicant, must file with the application a sworn statement, under penalties of perjury, affirming that:
(1) the person is not attempting to obtain a license on behalf of any undisclosed person or entity;
(2) the person is of good character, honesty, and integrity; and
(3) the person's prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this State or to the effective regulation and control of video gaming.
Section 12-22-510. The department must make its decision on whether to issue a license to the applicant not later than sixty days after the completion of the background investigation, including the fingerprint reviews, and the recommendation, if any, of the division, or not later than one hundred eighty days from the date a complete application is filed with the department, whichever occurs first. The department must inform each applicant of the department's decision. A person must be issued a provisional license upon receipt and review of the results of the division fingerprint review if the results show no convictions of the crimes referenced in Section 12-22-505(C)(1) for either the applicant or the principals. Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the prospective licensee a written affirmation on a form provided by the department that neither the prospective licensee nor any principal has been convicted of any crime referenced in Section 12-22-505(C)(1).
Section 12-22-515. (A) The department must be given within ten business days written notice of termination of a business, transfer of a business, or a change of ownership, possession, or control of an interest in a business holding a license or an establishment licensed under this chapter. The transfer of ten percent or more of corporate stock is considered a change in ownership. Anyone whose interest in the business has ended must immediately surrender to the department any licenses in his possession related to that business. Failure to surrender a license as required by this subsection is justification for revocation of any and all licenses issued by the department and held by the licensee.
(B) A person who acquires an interest in a business which holds licenses issued under this chapter, upon initiating the application process for a biennial license issued under Section 12-22-310, may be issued a temporary license by the department at the time of the acquisition if the applicant or location for which the temporary license is sought is not considered by the department to be a ineligible under the provisions of this chapter or the applicant currently holds a valid license previously issued pursuant to this chapter, or the applicant has had a criminal history background check conducted by the division within the past thirty days.
( C) A temporary license issued pursuant to subsection (B) is valid until a biennial or regular license is approved or disapproved by the department, but in no case is it valid for more than one hundred eighty days from the date of issuance. The department may revoke a temporary license if the applicant fails to pursue the biennial license in a timely manner. The department shall collect a fee of twenty-five dollars for each temporary license.
Section 12-22-700. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine or device subject to the license imposed by this chapter by way of proof of licensing must have a current license displayed conspicuously on the front of the machine or device. Each machine or device licensed pursuant to this chapter must be operated in a stand-alone fashion and may not be linked in any way to another machine or device.
Section 12-22-705. Any person who owns or operates machines or devices described in Sections 12-22-320 and 12-22-325 must have attached to the machine or device information identifying the owner of the machine or device. The identification must be placed on an area of the machine or device which is visible for inspection purposes. This identification is a condition precedent before the machines or devices may be operated on location. Intentional or willful failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter.
Section 12-22-710. Every person required to obtain a license pursuant to Sections 12-22-320 and 12-22-325 shall maintain records showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered the State; the date it entered the location; and the date the machine went on-line. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department. The licensee shall be provided a reasonable time in which to provide the information demanded.
Section 12-22-715. Before a machine may be connected, or remain connected, to the central computer monitoring system, the machine shall have a current and valid machine license. The machine owner and the machine operator and the establishment shall have current and valid licenses as required by this chapter.
Section 12-22-720. (A) All machines, location controllers and associated modems, computer chips, and any other part of a machine shall be verifiably of a make, model, and software version, certified by the department or a testing lab selected by the department before such items may be possessed, owned, operated, or allowed to operate at any place within this State. The department must implement this subsection in a manner so as to maximize competition in the market place.
(B) A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.
Section 12-22-725. (A) Within 90 days from enactment, all machines shall meet the following standards, and machine owners shall certify to the department, under oath and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system:
(1) have games that are random and have games which have minimum payout of between ninety and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner;
(4) not have any means of manipulation that affect the random probabilities of winning a game;
(5) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms shall be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;
(6) have one or more metering devices that keep a record of: all cash inserted or deposited into the machine; credits played; credits won; validated cash ticket amounts; and other information prescribed by the department. Cash records shall include total coins and bills accepted and total credit generated by coin and bill acceptors.
(7) shall be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;
(8) be capable of interfacing with a central computer monitoring system through a location controller;
(9) when requested by the department after certification, be connected to the central computer monitoring system through a location controller; and
(10) meet the standards set by the department.
(B)(1) Machines not meeting the standards of this chapter, or the standards of the department, shall not be licensed. The license of any machine which fails to maintain the standards of this chapter shall be revoked.
(2) The department shall connect licensed machines at licensed establishments meeting the requirements of this section as soon as is practicable after receipt of certification from the machine owner that a machine meets the standards of subsection (A) by 150 days after enactment but no later than December 1, 1999.
( C) When the department approves the software and logic board of a machine, the division may use a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar such technology must be done in the presence of an employee of the division.
(D) The department is authorized to revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must be designed so as to maximize competition in the market place among manufacturers.
Section 12-22-730. The department is authorized to set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment, including, but not limited to, technical standards, hardware specificationsand software specifications. Applicants must meet these standards before any license may be issued.
Section 12-22-735. The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements, is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner.
Section 12-22-740. (A) Each location controller must be programmed so as to automatically disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department of not less than seventy-two hours. The machine shall be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following shall occur:
(1) A message will appear on the screen warning the player that the machine is about to be disabled and the player will be informed that one minute remains to complete the game.
(2) A count down timer will be displayed.
(3) If the player completes the game, all credits will be reported on a winnings ticket and no other games will be allowed to be played on that machine.
(4) If the player has not completed the game in the minute allotted, then the machine will complete the hand according to the manufacturer's recommended play strategy, all credits will be reported on a winnings ticket, and the machine will be disabled.
Section 12-22-745. Each machine placed in operation in the state shall have, affixed by the manufacturer, a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the machine owner shall affix, the VGMID. The VGMID shall be programmed into the machine and shall serve as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-750. A machine shall be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until such notice has been given to the department. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing prior to disposal and provide the following information in a manner as directed by the department:
(1) The full name, address, and license number of the person or entity disposing of the machine;
(2) The manufacturer's serial number of the machine;
(3) The model number and description of the machine;
(4) The manufacturer of the machine;
(5) The VGMID of the machine;
(6) The hard meter readings of the machine;
(7) The licensed establishment at which the machine was located;
(8) The proposed manner, time, and place of disposal.
Section 12-22-755. A machine shall not simulate bingo.
Section 12-22-760. Each machine shall contain a single printing mechanism capable of printing an original ticket and retaining an exact copy. Tickets shall contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.
Section 12-22-765. All machines, location controllers, and the central computer monitoring system selected by the department shall perform correctly before, during, and after the Year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.
Section 12-22-770. The department, in its discretion, may approve alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.
Section 12-22-775. (A) As part of the central computer monitoring system required under this article, each location operating machines licensed under 12-22-320 (A)(3) must provide a location controller and modem meeting requirements set forth by this section and by the department. Each location controller must be capable of receiving, storing, and transmitting to the department's central computer monitoring system all information received from, and required of, machines as set forth in Section 12-22-725. Each location controller must be capable of supporting at least five video game machines. This section applies to those location controllers which participate in the central computer monitoring system as separate hardware entities, and any 'head of string' location controller which meets the specifications of this section. The cost for purchasing or leasing, as well as the cost of installing, the location controller is the responsibility of the establishment in which the machines are located.
(B) In addition to the above requirement, each location controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) when authorized parties open machine game door, store a log entry of this event;
(3) when authorized parties open machine coin or currency door, store a log entry of this event;
(4) authorize machine to be taken off-line from the location controller;
(5) disable machine and store a log entry under the following circumstances:
(a) unauthorized game door open; and
(b) unauthorized coin or currency door open;
(6) a log entry if machine is off-line from the location controller without prior authorization;
(7) store a log entry if machine tampering is detected. Detection of tampering occurs if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the central computer monitoring system.
(8) re-enable a machine which has been disabled and store a log entry of this event;
(9) log entries which include a unique identification number for each machine and date/time stamp;
(10) have capability for communicating to the central computer monitoring system the information which has been gathered from the machines and log any entries stored during the period;
(11) have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department, provided that the department must allow access by the owner or operator of the machine to retrieve information for record keeping and related legitimate business purposes;
(12) have an internal clock;
(13) be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system, and this requirement extends to the location controller as well as its associated communication device, cabling between the controller and the machines, and communication device;
(14) be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions; and
(15) be capable of validating tickets printed by a machine.
Section 12-22-780. Any machine licensed pursuant to Section 12-22-320(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the amount bet or wagered on any single hand or single play to credits equal to not more than ten dollars. Any location violating this section shall be subject to revocation of the license of the machine and may be fined an amount not to exceed one thousand dollars.
Section 12-22-785. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) The establishment license at the establishment where the machines are located has been revoked;
(2) The license of the machine has been revoked;
(3) The machine owner's license has been revoked;
(4) The machine operator's license has been revoked;
(5) The establishment license, machine license, machine owner's license, or machine operator's license has expired.
(6) The central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason will be enabled again as soon as the problem has been resolved.
(7) The machine owner or the machine operator has requested that the machine be disabled for any reason, such as relocation, upgrading or repair.
(8) The bank account from which taxes are paid has insufficient funds to pay the entire tax due upon the due date.
(B)(1) All persons who have notified the department of an ownership or lien interest in a machine shall be notified of a proceeding to revoke licenses that may result in disabling under this section.
(2) A machine, and any part of the machine, shall not operate in this State for five years from the date of revocation, if the machine is disabled for the reasons stated in:
(a) subsection (A)(1)or (A)(4), if the machine owner and the person holding the establishment license are the same person; or
(b) subsection (A) (2) or (A)(3).
(3) The machine shall be sold for use out-of-state, or stored or destroyed in a manner approved by the department.
(C) All persons who have notified the department of an ownership interest in an establishment shall be notified of a proceeding to revoke licenses that may result in disabling under section (A)(1). If machines are disabled at an establishment for the reason in (A)(1), the establishment may not operate, or allow the operation of, machines for five years from the date of the revocation or suspension.
Section 12-22-790. (A) A person in possession of, or operating, or allowing the operation of, a contraband machine, contraband device, or contraband associated equipment at any place within this State, is subject to a civil penalty of not more than ten thousand dollars a machine or piece of associated equipment.
(B) When the department or division deems it necessary in connection with subsection (A), it may require the owner of a machine, device, or associate equipment to obtain a certification from an approved laboratory that the machine or a game or associate equipment meets the standards and requirements of this chapter. The cost of this certification is the responsibility of the owner of the machine, device, or associated equipment.
(C) Contraband machines, contraband devices, or contraband associate equipment may be seized by any law enforcement officer of the State or any of its political subdivisions who shall appear before any magistrate of the county in which the machine, device or associated equipment was seized. If the magistrate is satisfied that the item is contraband the magistrate shall direct that it be destroyed. The magistrate, at his discretion, may order an examination of the item, in person before the magistrate or by an approved laboratory, to assist in the determination as to whether the item is contraband.
Section 12-22-793. A person who knowingly possesses, owns, operates, or allows the operation, of a contraband machine, contraband device, or contraband associated equipment at any place within this State is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned for not more than five years, or both.
Section 12-22-795. (A) Each machine licensed under this chapter must have a prominently displayed sign citing the penalties provided by Sections 12-22-935, 12-22-940, and 12-22-945 on the wall above the machine or affixed prominently to the machine. The department may provide sample language for these signs.
(B) A licensed establishment shall have posted and visible to the public at least one sign with the following words printed thereon:
(1) 'A person shall be twenty-one years of age to receive winnings from a video game machine.'
(2) 'It is illegal to offer inducements to a person to play video game machines.'
(3) 'All games are random. Games are set to issue a minimum theoretical payout of between ninety and ninety-nine percent.'
(4) 'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'
(5) 'Validated tickets may be redeemed for cash.'
(6) 'Violations are subject to civil and criminal penalties.'
(7) 'Violations may be reported to S.C. State Law Enforcement Division or your local law enforcement agency.'
(C) The sign required subsection (B) shall be visible and readable by the person playing the machine. Each letter on the sign shall be a minimum of two inches high.
Section 12-22-800. (A) A licensed establishment may not, and the department shall not issue a license to an establishment if it does:
(1) maintain, possess, or otherwise allow on its premises more than five machines, except as provided in Section 12-22-815;
(2) advertise, or allow advertising, in any manner for the playing of the machines except as provided in Section 12-22-810;
(3) offer or allow to be offered any inducement as prohibited in Section 12-22-805 to a person to play machines or for the playing of machines;
(4) knowingly pay to anyone under the age of twenty-one winnings as a result of playing machines;
(5) operate machines between the hours of two o'clock Sunday morning and six o'clock Monday morning;
(6) be located within five hundred feet, or within three hundred feet in a municipality, of any of these locations: a public or private elementary, middle, or secondary school; a public or private kindergarten or daycare; 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; or
(7) make loans or extend credit to a player for the purpose of playing machines.
(B) The distances in this article shall be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the location in (A)(7).
(C) The distance requirements set forth in this section do not apply to establishments which operated or allowed the operation of machines and were licensed under former Section 12-21-2784 as of July 1, 1999, provided the establishment is operated by the same person who held the license on July 1, 1999.
(D) The department may revoke the licenses of establishments, machine owners, machine operators, and machines used in the establishment and impose a monetary penalty of not less than one thousand dollars and not more than ten thousand dollars on each of the owners of such licenses for each failure to comply with a provision of this section, or any provision of a regulation pertaining to this section.
(E) Any establishment violating a provision of this section or any provision of a regulation pertaining to this section may have its privilege for operating or allowing the operation of video game machines suspended as follows:
(1) Upon the first violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to six months;
(2) Upon the second violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to one year:
(3) Upon the third or subsequent violation, the privilege for operating or allowing the operation of machines is suspended for a period of up to eighteen months.
(F) The department, 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.
(G) Each violation or each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.
Section 12-22-805. (A) No person may offer or allow to be offered any special inducement to a person for the playing of machines.
(B) A licensed establishment that engages in activities other than the operation of machines shall not offer any inducement unless the licensed establishment is able prove to that the inducements offered are not directed at machine players and that the offerings are part of the normal practice of similar business activities in the state.
Section 12-22-810. (A) A licensed establishment may advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.
(B) Nothing in this section prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.
(C) No person may advertise in a misleading or deceptive manner.
(D) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.
(E) Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.
(F) No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.
(G) Signs and non-broadcast advertising in existence on the date of enactment are not subject to the provisions of this section until July 1, 2001 provided notice is given to the department as required in this chapter.
Section 12-22-815. (A) Except as provided in subsection (B), machines shall not be operated or continue to operate at any casino, casino-style gaming operations, video gaming mall, or combination of 'single place or premises' as that term was applied in Regulation 117-190. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between such licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.
(B) All establishments which conducted business as a casino or otherwise within a structure which prior to July 1, 1999, contained more than one 'single place or premises' in accordance with department Regulation 117-190 must:
(1) on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(2) advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(3) once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of June 30, 1999, as asserted in the statement required in (5);
(4) never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment; provided that a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose; and
(5) on or before July 1, 1999, file with the department a sworn statement asserting any and all reasons why it is entitled to the benefits conferred by this subsection (B).
(C) Any person claiming the provisions of subsection (B) shall have the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment shall be subject to all limitations of this section.
Section 12-22-900. (A) It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and any video game with a free play feature which meet the technical requirements provided for in Section 12-22-725 and Section 12-22-775, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
(B) Any person violating the provisions of this section shall be tried before the magistrate and is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year or both.
Section 12-22-905. (A) Any machine, board, or other device prohibited by Section 12-22-900 must be seized by any law enforcement officer of the law and at the option of the magistrate taken before any magistrate of the county in which the machine, board, or device is seized who may examine it, take testimony, and if satisfied that it is in violation of Section 12-22-900 or any other law of this State, direct that it be immediately destroyed.
(B) Coin-operated machines or devices licensed pursuant to Section 12-22-320 are not subject to confiscation under this section due to any violation of Sections 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-910. (A) It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.
(B) It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.
(C) A person who violates the provisions of this section shall be tried before the magistrate and is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.
Section 12-22-915. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the contents of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years.
Section 12-22-920. The issuance of a license under the provisions of this chapter by the department does not make lawful the operation of any gambling machine or device, the operation of which is made unlawful under the laws of this State.
Section 12-22-925. A person who fails, neglects, or refuses to comply with the terms and provisions of this chapter or who fails to attach the required license to any machine, device, 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 department. If the violation under this section relates to a machine licensed pursuant to Section 12-22-320(A)(3), the applicable penalty amount is two thousand five hundred dollars. This penalty must be deposited in the same manner as other monies collected pursuant to this chapter.
Section 12-22-930. (A) In addition to the penalties above provided, any machine, apparatus, billiard, or pocket billiard table not having attached thereto the required license, or which is improperly licensed, must be seized and confiscated by the department, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may, within its discretion, return any property so seized and confiscated and compromise any penalty assessed.
(B) The owner or person from whom the property is seized may at any time within five days after the seizure repossess the property by filing with the department a bond in cash or a bond executed by a surety company authorized to do business in this State in double the amount of the tax and penalties due. Within ten days thereafter the person must bring action in a court of competent jurisdiction to have the seizure set aside; otherwise the bond so filed must be declared forfeited by the department.
Section 12-22-935. It is unlawful to tamper with a machine with intent to interfere with its proper operation. A person who violates this section is guilty of a felony and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars, or both.
Section 12-22-940. Skimming of machine proceeds is the intentional excluding, or the taking of any action in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines. Whoever commits skimming of machine proceeds is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and may be fined not more than twenty-five thousand dollars.
Section 12-22-945. A person who, with intent to manipulate the outcome, payoff, or operation of a machine by physical tampering or any other means is guilty of a felony and, upon conviction, must be imprisoned not less than one year nor more than five years or fined not more than one thousand dollars, or both.
Section 12-22-950. Upon application being made for a license to operate any machine or apparatus under this chapter, the department may presume that the operation of the machine or apparatus is lawful and when a license has been issued for the operation thereof the sum paid for the license may not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
Section 12-22-1100. (A) In addition to the license fees there is imposed on the machine owner for each machine licensed under Section 12-22-320(A)(3), a tax of fifteen percent (15%) of the net machine income. Prior to the implementation of the central monitoring system, the player shall receive full credit for all money placed into a machine. When the central monitoring system is in place as certified by the department, a player may only receive credits on the machine equal to ninety percent (90%) of the number of credits allowed according to the amount of money that goes into the machine.
(B) The tax imposed by this section must be collected and remitted to the department by the machine owner. The machine owner shall be responsible for collecting and remitting any portion of the tax imposed by this section which is agreed in any manner to be paid by any other person, including the machine operator, distributor, or the owner, lessee, or manager of a place of business at which the machine is operated or offered for operation.
(C) On or before the twentieth day of the month following the end of each month, every person subject to the tax imposed by this section shall render to the department, on a form or in a manner prescribed by it, the tax due and payable and a true and correct statement showing the sum of all gross machine income and gross profits for the reporting period together with other information the department may require. A return is timely filed if the return is mailed and postmarked on or before the due date.
(D) The tax imposed by this section is effective beginning on the first day of the first month following enactment.
(E) Revenues derived from the tax imposed in this section must be credited as provided in Section 12-22-1110.
(F) All fees, taxes, and penalties imposed in this chapter are a first lien upon any and all property of the person charged therewith.
(G) Failure to remit taxes imposed under this chapter shall result in immediate disabling of the machines and is justification for the revocation of the machine license and machine owner's license.
Section 12-22-1105. (A) For any person owing twenty thousand dollars or more in connection with any return or reporting period, the tax imposed by this chapter shall be paid to the department through electronic transfer of funds.
(B)The taxpayer shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due. The taxpayer shall provide the department with thirty days advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds. The taxpayer shall maintain a balance in the account sufficient to cover the amount of the tax on the due dates. The failure to maintain an adequate balance authorizes the department to find the tax in jeopardy and to disable all machines licensed to that taxpayer. Appeals from a jeopardy assessment shall be governed by Title 12, Chapter 60.
(C) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter.
(D) The taxpayer shall report to the department any discrepancies in the department's statement of taxes based on a machine's mechanical and electronic meter readings or otherwise. Until a discrepancy is resolved, the department shall not make credit adjustments. Electronic accounting meters shall not be cleared outside the presence of an authorized department or division employee. Any discrepancies that cannot be resolved because of unauthorized meter clearing shall be resolved in favor of the State. The burden of proving a discrepancy is upon the taxpayer.
(E) A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated winnings ticket; and in such event shall record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state of that player. Thereafter the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Title 12, Chapter 60, but in addition to the information required by Section 12-60-470 the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.
Section 12-22-1110. (A) Notwithstanding any other provision of law, all revenue derived from the fees and taxes imposed pursuant to this chapter must be credited as provided in subsection (B).
(B) Annually, monies derived from the tax imposed pursuant to Section 12-22-1100 shall be applied in the following order:
(1) an amount set by the General Assembly in the general appropriation act for the department and division to administer and enforce the provisions of this chapter;
(2) an amount equal to $3,600 per license issued during the current fiscal year pursuant to Section 12-22-320(A)(3) shall be remitted to the general fund of the State;
(3) an amount set by the General Assembly in the general appropriation act for the Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the dollars allocated by this item shall provide local gambling addiction services in each county. Distribution of the dollars to each local county office for gambling addiction treatment shall be made in accordance with the following formula:
(a) one-half of the funds, based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December 31 of the preceding year; and
(b) one-half of the funds, based on the ratio of the population of each county to the total population of the State.
(4) all remaining revenue shall be credited in the following manner:
(a) fifty percent to a special fund within the state treasury to be used for education improvements that supplement, not supplant, current funding initiatives for kindergarten, elementary and primary education. These education initiatives would include: issuance of bonds supporting debt service for school construction and maintenance, performance funding for higher education, and scholarships, including need-based scholarships, tuition income tax credits and tuition grants to private institutions, as provided herein or approved by the General Assembly. Provided, however, that a minimum of ten million dollars annually must be allocated for scholarships, need-based scholarships, tuition tax credits and tuition grants; a minimum of ten million dollars annually must be allocated for performance funding for higher education; and a minimum of ten million dollars annually must be allocated for technical education which may be expended, among other things, for tech-special schools and construction or facility maintenance;
(b) twenty-five percent to a special fund within the state treasury to be used for economic initiatives as provided in subsection (C); and
(c) twenty-five percent to a special fund to be established in the state treasury and to be known as the Local Match Tax Relief Fund as provided in subsection (D).
(C) Annually, the monies credited to a special fund established within subsection (B)(3)(b) shall be applied in the following order:
(1) twenty million dollars must be placed in the Rural Infrastructure Development Fund (RIDF);
(2) twenty million dollars must be distributed among the counties that are not participants of the RIDF. Distribution of the monies to each county shall be made based on the ratio of the number of licensed machines located in each county to the total licensed machines in the counties not listed in subsection (E), as of December 31 of the preceding year. The monies distributed must be used for one of the following purposes:
(a) local paving or improving county roads, for street and traffic signs, and for other paving projects;
(b) projects involving mass transit, light rail, monorail, or monobeam;
(c) activities relating to the operations of a port; or
(d) beach renourishment;
(3) an amount set by the General Assembly in the general appropriation act to reimburse counties or municipalities for losses or revenue caused by the election of the annual permit option pursuant to Section 61-6-2010;
(4) five million dollars must be distributed to the Department of Commerce to be used for grants or loans for projects involving mass transit, light rail, monorail, or monobeam construction; and
(5) the remaining funds must be distributed to the Coordinating Council for Economic Development, to be used to provide competitive grants and loans: to redevelopment authorities, community development banks, to local governmental entities involved in economic development or industrial recruitment or tourism-related activities, or for transportation projects, including mass transit, light rail, monorail, or monobeam.
(D) The monies credited to the special fund established in subsection (B)(3)(c) must annually be allocated to separate county accounts, one each established in the name of the forty-six counties. The monies must be divided and allocated to the various county accounts based on a ratio equal to the total number of machines licensed in a county divided by the total number of machines licensed statewide at close of the preceding calendar year or fiscal year as determined by the State Treasurer. Allocations in the fund may be drawn on by a county and distributed by the State Treasurer under the following conditions:
(1) the county governing body must hold at least one public hearing to inform the public that funds have been allocated in the Local Match Tax Relief Fund and are available for distribution to the county;
(2) the county must certify to the State Treasurer that it has held the required public hearing and that it has set aside an amount of funds equal to the maximum amount the county is eligible to receive, or any portion thereof, from the Local Match Tax Relief Fund and which will be used for no other purpose but to match the allocation from the fund;
(3) the aggregate of the state allocation from the fund and the local match shall be used for the exclusive purpose of maintaining or reducing the ad valorem tax on real and/or personal property; and
(4) any allocation in a fiscal year which has not been drawn in accordance with the provisions of this item as of January 31 of the succeeding year shall revert to the general fund and must be appropriated exclusively for tax relief as the General Assembly may direct.
(E) The Rural Infrastructure Development Fund (RIDF) is a separate and distinct fund within the South Carolina Infrastructure Revolving Loan Fund created pursuant to Section 11-40-50 and no portion of the payment required by this section may be retained by the department. Monies deposited to the RIDF shall be maintained in the fund from year to year and interest accruing on the RIDF balance shall be credited to the fund. The RIDF shall be used exclusively for projects, as defined in Chapter 40 of Title 11, which have been approved by the Rural Infrastructure Development Council (RIDC). The RIDC shall be composed of seven (7) members, elected by a majority vote of the combined legislative delegations of Allendale, Bamberg, Chester, Clarendon, Colleton, Dillon, Edgefield, Hampton, Jasper, Lee, Marion, Marlboro, Orangeburg and Williamsburg counties.
Section 12-22-1120. Unless and until the department determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents, etc. of the game;
(3) the name of the game;
(4) the name of the individual(s) collecting money from the machine and the owner of the machine;
(5) the date(s) of collection;
(6) the date of previous collection;
(7) income number at commencement of the reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) payout to players;
(12) gross profit; and
(13) the percentage of net profits divided between owner and the location and the formula by which those figures are calculated.
Section 12-22-1300. (A) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to Section 12-22-320(A)(3) in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-320(A) for the equivalent license period.
(B) No county may limit the number of machines within the boundaries of a county. A county may by ordinance impose a license fee on machines licensed pursuant to Section 12-22-320(A)(3) located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to Section 12-22-320(A) for the equivalent license period.
Section 12-22-1305. Municipalities and counties may levy a license tax on the business taxed under this article, but in no case may a tax so levied exceed one-half of the amount levied by the State before March 28, 1956."
SECTION 11. Articles 19 and 20, Chapter 21, Title 12 are repealed. To the extent that regulations promulgated pursuant to the authority of Articles 19 and 20, Chapter 21, Title 12, are not inconsistent with Section 10, those regulations remain in effect until and unless otherwise modified or repealed pursuant to the Administrative Procedures Act.
SECTION 12. Section 16-19-60 of the 1976 Code is amended to read:
"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 shall extend to coin-operated nonpayout machines with a free play feature; provided, that nothing herein shall authorize the licensing, possession, or operation of any machine which disburses money to the player. Nothing in this section prohibits regulation of video games pursuant to Article 20, Chapter 21 of Title 12, the Video Games Machines Act, including the prohibition on payoffs and location of these machines in counties where such payouts and machines are prohibited under the local option provisions of that article."
SECTION 13. Section 12-54-40(H) of the 1976 Code is amended to read:
"(H) A person who:
(1) must obtain a license or purchase stamps for identification purposes, and who fails to obtain or display the license properly, or fails to affix the stamps properly; or
(2) to must comply with statutory provisions and fails to do so, is subject to a penalty of not less than fifty dollars nor more than five hundred dollars for each failure. For failure to obtain or display a license as prescribed in Sections 12-22-320 and 12-22-325 12-21-2720 and 12-21-2730, the penalty is fifty two hundred dollars for each failure to comply."
SECTION 14. Section 12-54-40(M) of the 1976 Code is amended to read:
"(M) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars. A machine owner or distributor, as defined in Chapter 22 of this title, who wilfully places a machine on location, or who wilfully allows or causes a machine to be operated, that does not accurately record the information required under Chapter 22 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars.
SECTION 15. Section 12-54-240(A) of the 1976 Code is amended to read:
"(A) Except in accordance with proper judicial order or as otherwise provided by law it is unlawful for a person to divulge or make known in any manner any particulars set forth or disclosed in any report or return required under Chapters 6, 8, 11, 13, 16, 20, 22 or 36 of this title. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. If the offender is an officer or an employee of the State, he must be dismissed from office and is disqualified from holding any public office in this State for a period of five years thereafter. If the offender is an officer or employee of a company retained by the State on an independent contract basis under subsection (B)(3) of this section or Section 12-4-350, the contract is immediately terminated and the company is not eligible to contract with the State for this purpose for a period of five years thereafter."
SECTION 16. Article 1, Chapter 1, Title 32 of the 1976 Code is amended by adding:
"Section 32-1-60. The provisions of Sections 32-1-10, 32-1-20, and 32-1-30 do not apply to loses arising from the play of machines licensed pursuant to Section 12-22-320 (A)(3)."
SECTION 17. Sub-item (3) of Section 61-4-580 of the 1976 Code is amended to read:
"(3) permit gambling or games of chance which is not authorized by Chapter 22 of Title 12."
SECTION 18. The provisions Chapter 22 of Title 12 as added by this act apply to any and all licenses to be issued on or after July 1, 1999. All persons who are licensed pursuant to Section 12-21-2728(A)(3) to own devices described in Section 12-21-2720(A)(3) on the effective date of this act are considered licensed under the provisions of Chapter 22 of Title 12 as added by this act until the time when the license would have expired as originally issued. Thereafter, the person shall apply for new licenses to be issued in accordance with Articles 3 and 5, Chapter 22, Title 12 as added by this act.
SECTION 19. Section 61-6-2010(A) of the 1976 Code is amended to read:
"(A) In addition to the provisions of Section 61-6-2000, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department must also offer the option of an annual fifty-two week temporary permit for a non-refundable fee of three thousand dollars per year. The department in its sole discretion shall specify the terms and conditions of the permit."
SECTION 20. Section 61-6-2010 of the 1976 Code is amended by adding:
"(D) Through the State Aid to Subdivisions authorized by Chapter 27 of Title 6, the State shall reimburse the county or municipality for any loss of revenue to the county or municipality caused by the election of the annual permit option authorized in subsection (A)."
SECTION 21. 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 this chapter, and 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 22. Except as may be otherwise provided in this act, this act takes effect upon approval by the Governor except that: (a) Part II takes effect December 31, 2000, only if the State Election Commission certifies, as provided in Section 2(A), that a majority of the qualified electors voting in the referendum voted "no". If Part II of this act takes effect, the South Carolina Department of Revenue, upon application, shall issue pro rata refunds of license fees on machines licensed pursuant to Section 12-21-2720(A)(3) as of December 31, 2000; and (b) Sections 10 and 11 are effective July 1, 1999, provided, however, Sections 10 and 11 are repealed December 31, 2000, if the State Election Commission certifies, as provided in Section 2(A), that a majority of the qualified electors voting in the referendum voted "no". /
Renumber sections to conform
Rep. YOUNG-BRICKELL moved to table the amendment, which was agreed to.
Rep. COBB-HUNTER proposed the following Amendment No. 17A (Doc Name DKA\AMEND\3504SD99), which was tabled.
Amend the bill, as and if amended, Part IB, by striking subitem (a), item (1), subsection (B) of Paragraph 72.83, which reads:
/ (a) School Building Funds $20,000,000 /
and inserting:
/(a)1. School Safety Officers $14,000,000
2. School Building Funds 300,000 /
Amend further, as and if amended, by inserting a new item to be appropriately numbered immediately after item (1), subsection (B) of paragraph 72.83, to read:
/ ( ) State Treasurer-Transfer
for General Obligation Bond
Debt Servicer for Fiscal
Year 1999-2000 $5,700,000 /
Renumber sections to conform.
Amend totals and title to conform.
Rep. COBB-HUNTER moved to table the amendment, which was agreed to.
Rep. COBB-HUNTER proposed the following Amendment No. 18A (Doc Name DKA\AMEND\3502SD99), which was tabled.
Amend the bill, as and if amended, Part IB, Section 72, by adding a new paragraph to be appropriately numbered to read:
/ 72.__ Notwithstanding any other provision of law, in the event no revenue above fifty million dollars derived from regulations, licensing fees, or taxation of coin-operated devices licensed pursuant to Section 12-21-2720(A)(3) of the 1976 Code is available to fund the items listed in subsection (B) of Paragraph 72.83, the first $18,700,000 above the Board of Economic Advisor's estimate of surplus general fund revenues for fiscal year 1998-99 is transferred to a fund separate and distinct from the state general fund and used in priority order as follows:
(1) State Department of Education
School Safety Officers $14,000,000
(2) State Treasurer
State General Obligation
Bond Debt Service $ 4,700,000 /
Renumber sections to conform.
Amend totals and title to conform.
Rep. COBB-HUNTER moved to table the amendment, which was agreed to.
Reps. J. SMITH and LOURIE proposed the following Amendment No. 19A (Doc Name ggs\amend\22325sd99.doc), which was tabled.
Amend the bill, as and if amended, Part II, by adding a new section to be appropriately numbered which shall read:
TO PROVIDE FOR A STATEWIDE REFERENDUM AT THE SAME TIME AS THE 2000 GENERAL ELECTION TO DETERMINE IF THE QUALIFIED ELECTORS OF THE STATE FAVOR KEEPING VIDEO POKER GAMBLING LEGAL AND TO MAKE VIDEO POKER GAMBLING ILLEGAL IF A MAJORITY "NO" VOTE IS CERTIFIED ON THAT QUESTION, AND TO ACCOMPLISH THE PURPOSE OF MAKING VIDEO POKER GAMBLING ILLEGAL UNDER THAT CIRCUMSTANCE BY AMENDING SECTIONS 12-21-2710, AS AMENDED, 12-21-2712, 12-21-2720, AS AMENDED, AND 12-21-2726, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COIN-OPERATED MACHINES OR DEVICES, SO AS TO EXTEND THE PROHIBITION ON SLOT MACHINES AND OTHER MACHINES OR DEVICES PERTAINING TO GAMES OF CHANCE TO VIDEO GAMES WITH A FREE PLAY FEATURE OR ANY OTHER COIN-OPERATED MACHINE OR DEVICE USED FOR GAMBLING, TO EXTEND THE SEIZURE AND DESTRUCTION PROVISIONS APPLICABLE TO GAMES OF CHANCE TO THESE EXPANDED PROHIBITIONS, TO CONFORM EXISTING LICENSING REQUIREMENTS FOR COIN-OPERATED MACHINES AND DEVICES TO THESE EXPANDED PROHIBITIONS AND TO DELETE REFERENCES TO PROVISIONS OF LAW REPEALED BY THIS SECTION; TO AMEND SECTION 12-54-40, AS AMENDED, RELATING TO TAX CRIMES AND PENALTIES, SO AS TO DELETE THE OFFENSE OF OPERATING AN UNMETERED VIDEO GAME WITH A FREE PLAY FEATURE; TO AMEND SECTIONS 16-19-40 AND 16-19-50, RELATING TO THE OFFENSE OF GAMBLING, SO AS TO EXTEND THESE OFFENSES SPECIFICALLY TO PLAYING OR MAINTAINING ANY LICENSED COIN-OPERATED MACHINE OR DEVICE USED FOR GAMBLING PURPOSES; TO REPEAL SECTIONS 12-21-2703, 16-19-60, AND ARTICLE 20, CHAPTER 21 OF TITLE 12, RELATING RESPECTIVELY TO THE RETAIL LICENSE REQUIREMENT FOR A LOCATION WITH VIDEO GAMES WITH A FREE PLAY FEATURE, THE EXEMPTION OF VIDEO GAMES WITH A FREE PLAY FEATURE FROM THE GAMBLING OFFENSES, AND THE VIDEO GAMES MACHINES ACT.
2. In lieu of the schedule of the notice requirements provided pursuant to Section 7-13-35 of the 1976 Code, the State Election Commission shall provide the notices required by that section on dates four weeks and two weeks respectively before the date of the referendum provided by this Part I.
4. Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:
"Section 12-21-2710. It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
5. Section 12-21-2712 of the 1976 Code is amended to read:
"Section 12-21-2712. Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."
6. (A) Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:
"(3) a machine of the nonpayout type, or in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed."
(B) Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A)."
(C) Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F) which read:
"(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."
7. Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:
"Section 12-21-2726. Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, 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."
8. Section 12-54-40 of the 1976 Code, as last amended by Act 387 of 1998, is further amended by deleting subsection (M) which reads:
"(M) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."
9. Section 16-19-40 of the 1976 Code is amended to read:
"Section 16-19-40. If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts or whist, or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
10. Section 16-19-50 of the 1976 Code is amended to read:
"Section 16-19-50. Any person who shall set up, keep or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."
11. Sections 12-21-2703 and 16-19-60 and Article 20, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
12. The State election Commission during fiscal year 1999-2000 shall expend funds appropriated to it in Part I of this act to pay for the costs of having to prepare the ballots regarding this referendum, the costs of advertising this referendum as required in fiscal year 1999-2000, and other costs necessary to be expended in fiscal year 1999-2000 in order to prepare for this referendum.
13. Upon the effective date of this Part II, the Department of Revenue, upon application, shall issue prorated refunds of the license tax paid on machines licensed pursuant to Section 12-21-2720(A)(3) of the 1976 Code.
14. Part I of this section takes effect upon approval by the Governor.
15. Part II of this section takes effect on June 30, 2000, but Part II does not take effect unless a majority "no" vote is certified by the State Election Commission on the question as contained in Part I of this section.
Renumber sections to conform.
Amend totals and title to conform.
Rep. LOURIE explained the amendment.
Rep. GOVAN moved to reconsider the vote whereby Amendment No. 4A was tabled and the motion was noted.
Rep. LOURIE continued speaking.
Rep. HARRELL raised a Point of Order that Amendment No. 19A was out of order in that it did not relate to the fiscal year provided for in the Bill.
Rep. LOURIE argued contra.
SPEAKER WILKINS overruled the Point of Order.
Rep. HARRELL raised a Point of Order that Sections 1 and 3 of Amendment No. 19A were out of order in that they did not relate to the fiscal year provided for in the Bill.
SPEAKER WILKINS sustained the Point of Order and ordered that Sections 1 and 3 be stricken from the amendment.
Rep. LOURIE moved to table the amendment, which was agreed to.
Reps. JENNINGS and ALLEN proposed the following Amendment No. 3A (Doc Name GJK\AMEND\20636SD99), which was tabled.
Amend the bill, as and if amended, PART II, by adding a new SECTION appropriately numbered to read:
TO AMEND TITLE 12 OF THE 1976 CODE RELATING TO TAXATION, BY ADDING CHAPTER 22 SO AS TO PROVIDE FOR THE REGULATION, LICENSING, TAXATION, AND CIVIL AND CRIMINAL ENFORCEMENT OF VIDEO GAME MACHINES WITH A FREE PLAY FEATURE, ARCADE GAME MACHINES, AND OTHER DEVICES INCLUDING PROVISIONS TO VEST PRIMARY ENFORCEMENT AND REGULATORY POWERS IN THE DEPARTMENT OF REVENUE AND THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION, TO PROVIDE FOR LICENSE FEES ON MACHINE MANUFACTURERS, DISTRIBUTORS, TECHNICIANS, OWNERS, AND OPERATORS, TO PROVIDE LICENSE FEES FOR MACHINES AND LICENSED ESTABLISHMENTS, TO PROVIDE FOR AN IMPOSITION OF TAXES ON NET MACHINE INCOME AND ON PLAYER PAYOUTS, TO PROVIDE FOR THE USE OF REVENUES GENERATED BY THIS CHAPTER, TO PROVIDE FOR LOCATION RESTRICTIONS AND CASINO PROHIBITIONS AND THE PHASING OUT OF EXISTING CASINOS, TO PROVIDE FOR PUBLIC NOTICE AND OTHER NOTIFICATION PROVISIONS TO THE GENERAL PUBLIC, TO PROVIDE FOR THE MANNER IN WHICH AND REQUIREMENTS UNDER WHICH THESE MACHINES MAY BE PLAYED INCLUDING PROHIBITING THE OFFERING OF INDUCEMENTS, THE REGULATION OF ADVERTISING, AND CERTAIN LIMITATIONS ON BETS AND PAYOUTS, TO PROVIDE FOR TECHNICAL STANDARDS AND SPECIFICATIONS FOR THESE MACHINES AND THEIR EQUIPMENT, TO PROVIDE FOR BACKGROUND INVESTIGATIONS OF PERSONS ASSOCIATED WITH THE OPERATION OF THESE MACHINES AND THE ACTIONS THE DEPARTMENT MAY TAKE AS A RESULT OF THE BACKGROUND INVESTIGATIONS, TO PROVIDE PROCEDURES FOR LICENSE REVOCATIONS AND PENALTIES, TO PERMIT CIVIL ACTIONS UNDER SPECIFIED CONDITIONS FOR CERTAIN VIOLATIONS, TO PROVIDE CRIMINAL PENALTIES FOR CERTAIN VIOLATIONS, TO PROVIDE FOR THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MAY ALSO LICENSE AND TAX THESE MACHINES, AND TO PROVIDE FOR SEPARATE REQUIREMENTS FOR THE REGULATION, LICENSING, TAXATION, AND ENFORCEMENT OF ARCADE GAME MACHINES AND OTHER AMUSEMENT DEVICES INCLUDING A PROVISION THAT PROHIBITS CASH PAYOUTS; TO AMEND SECTION 12-60-3370, RELATING TO BOND REQUIRED PRIOR TO A TAXPAYER APPEAL TO CIRCUIT COURT, SO AS TO REQUIRE A BOND OF A PERSON APPEALING CERTAIN VIDEO GAME MACHINE VIOLATIONS TO THE CIRCUIT COURT AND TO PROVIDE CIVIL MONETARY SANCTIONS IF THE APPEAL IS UNSUCCESSFUL; TO AMEND SECTION 61-4-580, RELATING TO PROHIBITED ACTS REGARDING BEER AND WINE, SO AS TO PROVIDE THAT ACTIVITIES AUTHORIZED BY CHAPTER 22 OF TITLE 12 ABOVE ON THE PREMISES OF ESTABLISHMENTS LICENSED TO SELL BEER AND WINE ARE NOT A PROHIBITED ACT IN ESTABLISHMENTS PERMITTED FOR OFF PREMISES CONSUMPTION AND TO REQUIRE A SEPARATE ROOM FOR MACHINES IN PREMISES WITH ON PREMISES CONSUMPTION PERMITS AND LICENSES AND TO PROHIBIT THE CONSUMPTION OF ALCOHOLIC LIQUORS, BEER, AND WINE IN THIS SEPARATE ROOM AND TO PROVIDE FOR REVOCATION OF LICENSES AND PERMITS FOR VIOLATIONS; TO ADD SECTIONS 16-19-65, 16-19-66, AND 16-19-67 SO AS TO MAKE IT UNLAWFUL FOR ANY PERSON TO KEEP CERTAIN TYPES OF GAME OR SLOT MACHINES ON HIS PREMISES, TO MAKE IT UNLAWFUL FOR ANY PERSON TO OPERATE SUCH MACHINES, TO MAKE IT UNLAWFUL FOR ANY PERSON TO CHEAT OR DEFRAUD THE OWNER OF A LAWFUL MACHINE OF ITS CONTENTS, TO PROVIDE PENALTIES FOR VIOLATIONS AND AUTHORIZE THE SEIZURE OF UNLAWFUL MACHINES, TO PROVIDE STANDARDS FOR VIDEO GAME MACHINES, MODEMS, LOCATION CONTROLLERS, SOFTWARE, HARDWARE, THE CENTRAL COMPUTER MONITORING SYSTEM, AND ASSOCIATED EQUIPMENT UNTIL THE DEPARTMENT OF REVENUE ADOPTS SUCH STANDARDS PURSUANT TO CHAPTER 22 OF TITLE 12 ABOVE; AND TO REPEAL ARTICLE 19, CHAPTER 21 OF TITLE 12 RELATING TO COIN-OPERATING MACHINES, DEVICES, AND OTHER AMUSEMENTS AND ARTICLE 20, CHAPTER 21 OF TITLE 12 RELATING TO THE VIDEO GAME MACHINES ACT.
1. Title 12 of the 1976 Code is amended by adding:
Section 12-22-10. As used in this chapter, unless the context clearly requires otherwise:
(1) 'Director" means the Director of the Department of Revenue.
(2) 'Chief' means the Chief of the South Carolina State Law Enforcement Division.
(3) 'Division' means the South Carolina State Law Enforcement Division.
(4) 'Associated equipment' means a device, machine, replacement part, or part used in the manufacture, operation, or maintenance of a machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.
(5) 'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.
(6) 'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.
(7) 'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.
(8) 'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.
(9) 'Distributor' means any person who sells, buys and sells, or leases machines or associated equipment. A distributor may also own, operate, service, or repair machines in this State.
(10) 'Establishment' or 'location' means premises with machines.
(11) 'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash is available to play or simulate the play of games utilizing a video display and microprocessors in which the player may receive free games or credits that may be redeemed for cash. Each player station of a multi-player unit is a separate machine.
(12) 'Machine owner' means any person, other than a distributor, who owns one or more machines.
(13) 'Machine operator' means any person who owns or manages an establishment with one or more machines.
(14) 'Manufacturer' means any person that manufactures, assembles, or programs machines, controllers, or associated equipment for sale or use in this State.
(15) 'Net machine income' means the amount of money that goes into the machine less payouts.
(16) 'Payout' means the total amount a player is paid at the end of play, regardless of the amount the player has deposited in the machine.
(17) 'Player' means a person who participates in the playing of a machine.
(18) 'Principal' of a business or entity means:
(a) a person who is an officer of the business or entity which owns the business;
(b) a partner, other than a limited partner who cannot exercise any management control;
(c) a manager of a limited liability company which is managed by managers;
(d) a member of a limited liability company which is managed by members;
(e) a fiduciary, including personal representatives, trustees, guardians, committees and receivers, who manages, holds or controls title to or who is otherwise in direct or indirect control of the business;
(f) a person who owns five percent or more of the total combined voting power of the business or entity;
(g) a person who owns ten percent or more of the value of the business or entity; or
(h) an employee who has day-to-day operational management responsibilities for the business or entity.
(19) 'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division considers necessary to administer and enforce the provisions of this chapter.
(20) 'Type I Technician' means a person qualified to perform basic service, maintenance, and repair on machines.
(21) 'Type II Technician' means a person qualified to perform major machine repairs, configurations, communication, and diagnostic testing of machines.
(22) 'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.
Section 12-22-20. Unless specifically granted to the division, the functions, duties, and powers set forth in this chapter are vested in the department. The department shall administer and enforce the provisions of this chapter, and may enter agreements with any agency or the division to execute the provisions of this chapter.
Section 12-22-30. Except as provided in Section 12-54-240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is public information, except for proprietary information of the central computer monitoring system. The department may disclose information to the division and to other governmental entities in and outside of this State.
Section 12-22-40. The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.
Section 12-22-50. The department or the division may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.
Section 12-22-60. The license fees, taxes, and penalties provided for in this chapter are a first preferred lien upon all property of the person charged. The department may execute on the lien.
Section 12-22-70. The only forms of gambling which are legal in this State are bingo, played in accordance with Article 24 of Chapter 21 of Title 12, and games played on licensed machines operated in accordance with this chapter.
Section 12-22-80. The department and the division have the right to examine all records of an applicant and the applicant's principals, those records under their control, and those records in which they have an interest to evaluate statements and documentation supplied with the application. All records must be retained for at least the period for which taxes may be assessed under Section 12-54-85.
Section 12-22-90. Any person otherwise subject to the provisions of this chapter, but who claims the benefit of an exemption from certain of its requirements in any manner, on or before September 1, 1999, shall notify the department in a statement made under penalty of perjury that he is claiming the benefits of a specific provision, shall state all reasons for claiming the benefits of the provision, and shall identify all licenses claimed to be related to that exemption. The person claiming the benefit of such a provision has the burden of proof and shall establish by clear and convincing evidence that he is entitled to the benefits claimed.
Section 12-22-100. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly declaring that it would have passed this chapter, and 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Section 12-22-110. (A) The department shall require that every location and owner of each machine licensed herein to maintain a log of payoffs of the maximum amount of one hundred twenty-five dollars for at least three years that shall include, at a minimum, the following:
(1) a separate form or record of each person receiving a payoff;
(2) the name and address of the person receiving the payoff;
(3) the social security number of the person receiving the payoff;
(4) a statement of the amount of the payoff;
(5) the driver's license number or other official identification number of the person receiving the payoff, which must be independently verified by the operator prior to any payoff being made;
(6) a signed certification by the machine operator or owner and the player, under penalty of perjury, that the information provided is complete and accurate; and
(7) attachment to the log all validated tickets related to the payoffs.
(B) The department by regulation may prescribe the form or format of the log required in subsection (A).
Section 12-22-310. (A) Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.
(B) Before placement or operation, a machine must be licensed.
(C) Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as provided in Section 12-22-330(K).
Section 12-22-320. (A) Every two years a manufacturer, distributor, machine owner, machine operator, establishment, type I technician, and type II technician, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application. The fees are as follows:
(1) Manufacturer $10,000
(2) Distributor $15,000
(3) Machine Owner $2,000
(4) Machine Operator $2,000
(5) Licensed Establishment $1,000
(6) Type I and Type II Technicians $500
(B) Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. The expiration dates are the last day of:
(1) February in years which end in an:
(a) odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;
(b) even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;
(2) May in years which end in an:
(a) odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;
(b) even number for Lancaster, Marion, Marlboro, Union, and York counties;
(3) August in years which end in an:
(a) odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;
(b) even number for Richland County;
(4) November in years which end in an:
(a) odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;
(b) even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.
(5) If a license purchased is for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under this section and Section 12-22-340.
(C) The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.
(D) A license authorized in this section must not be issued until the department receives a completed background investigation showing that the standards provided for in Article 13 have been met by the applicant.
(E) An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.
(F) A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.
(G) All licenses described in subsection (A) issued before the effective date of this chapter expire May 31, 2000.
Section 12-22-330. (A)(1) Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State. The machine owner shall pay a first time nonrefundable biennial fee of four thousand dollars for each machine license and thereafter on all renewals shall pay a nonrefundable fee for each machine license as follows:
Net Income of Machine in Twelve
Months Preceding License Date Biennial License Fee
Not more than $12,000 $3,000
More than $12,000 but
not more than $24,000 $4,000
More than $24,000 but not
more than $48,000 $6,000
More than $48,000 $8,000.
(2) Except as provided in subsections (C) and (D) below, all licenses begin on June first and, except as provided in subsection (D), all licenses expire May thirty-first of the second year that the license is valid following the date of issue.
(B) The machine owner shall purchase a separate license for each station in a multi-player unit and each station counts as a separate machine when determining the number of machines.
(C) If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(D) As an alternative to the license required in subsection (A), a machine owner may be granted a nonrefundable seasonal license effective April first and expiring September thirtieth, following the date of issue. This license must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(E) A municipality, by ordinance, may impose a license fee on machines in an amount not to exceed three hundred sixty dollars for the equivalent license period. A municipality may not limit the number of machines within the boundaries of the municipality.
(F) A county, by ordinance, may impose a license fee on machines located in an unincorporated area of the county in an amount not to exceed three hundred sixty dollars for the equivalent license period.
(G) A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.
(H) A machine licensed under the provisions of subsection (A) must not be operated at an establishment unless the establishment is licensed pursuant to the provisions of this chapter and Chapter 36 of Title 12.
(I) Upon application for a license to operate any machine, the department may presume that the operation of the machine is lawful. The issuance of a license by the department does not make lawful the operation of any machine, the operation of which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(J) Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.
(K)(1) A licensed machine owner may transfer a machine with its machine license only to another licensed machine owner. Notification for the transfer of the machine must be made to the department at least thirty days before the transfer. The notification of transfer must include a notarized statement of both parties identifying the machine by VGMID.
(2) A licensed machine owner may transfer a machine license required by this section to any other machine owned by the machine owner if the department is notified before the transfer.
(L) The machine owner shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.
(M) Four hundred dollars of the license fee imposed in subsection (A) must be retained by the department and expended for the implementation and ongoing operation of the monitoring system, administration, enforcement of this chapter, or other programs and services as the department may determine necessary and appropriate.
(N) No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application.
Section 12-22-340. The department may issue an initial temporary license pending the approval of the application to any license applicant who has operated machines before the effective date of this chapter if the applicant signs a statement under penalty of perjury that he has no knowledge of any reason for denial of a license. The temporary license may be revoked.
Section 12-22-350. Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.
Section 12-22-510. (A) In addition to the license fees, a tax of thirty percent of the net machine income of every machine is imposed on the machine owner.
(B) In addition to the license fees and the tax in subsection (A), an additional tax is levied on the net machine income of every machine within an establishment which is within five hundred feet of another establishment in the same structure, and both establishments have machines with a same owner or principal. The tax is as follows:
(1) five percent of net machine income beginning June 1, 2000; and
(2) ten percent of net machine income beginning June 1, 2001; and
(3) fifteen percent of net machine income beginning June 1, 2002.
(C) An entertainment tax of seven percent on a player's payouts is imposed on the machine owner.
(D) The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.
Section 12-22-520. For the tax imposed by Section 12-22-510(C), each machine owner shall withhold seven percent of payouts from the player.
Section 12-22-530. (A) Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.
(B) After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.
(C) Unless the department determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents, etc. of the game;
(3) the name of the game;
(4) the name of the individual or individuals collecting money from the machine and the owner of the machine;
(5) the date or dates of collection;
(6) the date of previous collection;
(7) income number at commencement of the reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) payout to players;
(12) gross profit; and
(13) the percentage of net profits divided between owner and the location and the formula by which those figures are calculated.
(D) For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income and the tax on payouts as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax and the entertainment tax.
Section 12-22-540. As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-530. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.
Section 12-22-550. An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.
Section 12-22-560. (A) Until a discrepancy under Section 12-22-550 is resolved, the department may not make credit adjustments. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.
(B) A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.
Section 12-22-570. (A) The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed by this article. However, before depositing revenues to this account, the department shall retain its costs and the costs of the division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of this chapter. All interest earned on revenues placed into the account remain with the account and must be distributed in accordance with this section.
(B) Revenue deposited in this account must be distributed in a fiscal year as follows:
(1) four million dollars must be distributed to the South Carolina Department of Alcohol and Other Drug Abuse Services for the development of a program for the treatment of individuals with addictions to gambling. Ninety-five percent of the sum allocated by this item must provide local gambling addiction services in each county. Distribution to each local county office for gambling addiction treatment must be made in accordance with the following formula:
(a) one-half of the funds based on the ratio of the number of licensed machines located in each county to the total licensed machines statewide, as of December thirty-first of the preceding year;
(b) one-half of the funds based on the ratio of the population of each county to the total population of the State;
(2) of amounts remaining in this account, and as the General Assembly shall provide by law, not less than twenty percent must be used for local infrastructure needs including, but not limited to, water and sewer service projects, with the balance used for education projects.
Section 12-22-580. Machine operators may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.
Section 12-22-590. Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.
Section 12-22-810. (A) An establishment license must not be issued until the department determines that the location is proper. In determining whether 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;
(3) the likelihood that large crowds will gather from time to time with attendant breaches of the peace;
(4) the location of automatic teller machines as provided for in Section 12-22-840(6);
(5) the adequacy of law enforcement protection;
(6) the concentration in the area of other licensed establishments;
(7) compliance with Section 12-22-840; and
(8) all other pertinent information the department and division consider appropriate, or other information submitted for consideration.
(B) An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.
(C) The person applying for the establishment license closer than permitted under subsection (B) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:
(1) state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;
(2) tell an interested person where and when to send a written protest of the application;
(3) be in bold print; and
(4) cover a space at least eleven inches wide and eight and one-half inches high.
(D) The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.
(E) The provisions of this section apply to all applications. However, establishments in existence on the effective date of this chapter are not subject to the distance restrictions of subsection (B) of this section and Section 12-22-840 while the license is held by the same person who held the license on March 31, 1999, and the licensee complies with Section 12-22-90.
Section 12-22-820. (A) Except as provided in subsection (B), machines must not be operated, or continue to operate, at any casino, casino-style gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117-190 of the South Carolina Code of Regulations. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.
(B) All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117-190 must:
(1) on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;
(2) advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;
(3) once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of March 15, 1999, as provided in the statement required in item (5);
(4) never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;
(5) not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and
(6) on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.
(C) Any person claiming the provisions of subsection (B) has the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment is subject to all limitations of this section.
(D)(1) No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.
(2) After September 1, 1999, entities as described in this subsection are permitted to re-apply for, and may be granted renewal of a license for a maximum of one biennial licensure period. After completing that period, a new license must not be issued.
Section 12-22-830. (A) A person residing in the county in which an establishment license is requested to be granted, or a person residing within five miles of the establishment for which an establishment license is requested, may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:
(1) the name, address, and telephone number of the person filing the protest;
(2) the name of the applicant for the establishment license and the address of the establishment sought to be licensed;
(3) the specific reasons why the application should be denied; and
(4) whether he wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.
(B) Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.
(C) If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.
Section 12-22-840. (A) A licensed establishment, including its employees and agents, may not:
(1) maintain, possess, or otherwise allow on its premises more than five machines;
(2) advertise, or allow advertising, in any manner for the playing of the machines except as provided in Section 12-22-850;
(3) offer or allow to be offered any inducement to a person for the playing of machines;
(4) allow anyone under the age of twenty-one to receive payouts as a result of playing machines;
(5) operate machines between the hours of two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.
(6) cash any business, personal, or employment checks of any individual or business;
(7) make loans to any individual or business;
(8) accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;
(9) extend credit, in any manner, to a player;
(10) be located within five hundred feet within a county, or 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; or
(11) allow playing of machines by a person in an intoxicated condition.
(B) The distances in this article must be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the 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; house of worship; or other establishments with machines.
(C) No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under this chapter and its license or permit issued under Title 61.
Section 12-22-850. (A) The offering of an inducement as prohibited in Section 12-22-840 means any attempt to influence a person to play machines including, but not limited to:
(1) free or discounted food or beverages;
(2) free or discounted games other than credits won through authorized play;
(3) prizes, either at the doors or through drawings or other means;
(4) coupons offering any of the above; or
(5) cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.
(B) A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.
Section 12-22-860. (A) A licensed establishment may advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.
(B) Nothing in this section prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.
(C) No person may advertise in a misleading or deceptive manner.
(D) To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.
(E) Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.
(F) No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.
(G) Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2001, if notice is given to the department as required in this chapter.
Section 12-22-870. (A) A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:
(1) 'A person must be twenty-one years of age to receive payouts from a video game machine.'
(2) 'It is illegal to offer inducements to a person to play video game machines.'
(3) 'All games are random. Games are set to issue a minimum theoretical payout of at least ninety percent.'
(4) 'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'
(5) 'Validated tickets may be redeemed for cash.'
(6) 'Seven percent is withheld on all payouts.'
(7) 'Violators are subject to civil and criminal penalties.'
(8) 'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'
(9) 'No payout of greater than one hundred twenty-five dollars is allowed, regardless of the amount deposited in the machine.'
(B) The sign required by subsection (A) must be placed on the wall behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.
(C) Each machine licensed under this article must have a prominently displayed sign citing the penalties provided for tampering, skimming, and intentional manipulation as provided for in this article. The sign must be displayed on the wall above the machine or affixed prominently to the machine.
(D) In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.
Section 12-22-880. (A) A licensed establishment may not derive the primary and substantial portion of its proceeds from machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this section including, but not limited to, gross machine income by months, gross proceeds by month from all other sources, invoices for purchases, cash payouts by month, bank deposits, and all checking, savings, and similar account records.
(B) The department shall revoke the establishment's license and all machine licenses in the establishment if the establishment is in violation of this section.
Section 12-22-890. Each licensed establishment shall maintain on the premises a copy of this chapter for review by the public upon request.
Section 12-22-1010 Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.
Section 12-22-1020. (A) All machines, location controllers and associated modems, computer chips, and any other part of a machine must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.
(B) A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.
Section 12-22-1030. (A) Within ninety days after the effective date of this chapter, all machines must meet the following standards, and machine owners shall certify to the department, under oath, and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system. All machines must:
(1) have games that are random and have a minimum payout of between ninety percent and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner;
(4) not have any means of manipulation that affect the random probabilities of winning a game;
(5) have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;
(6) have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;
(7) be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;
(8) be capable of interfacing with a central computer monitoring system through a location controller;
(9) when requested by the department after certification, be connected to the central computer monitoring system through a location controller;
(10) meet the standards set by the department and those set forth in this chapter; and
(11) not offer on the face of the machine or in any pay table the possibility of receiving a payout greater than one hundred twenty-five dollars for a single play or hand or at the time of cashing out.
(B) Machines not meeting the standards of this chapter, or the standards of the department, must not be licensed. The license of any machine which fails to maintain the standards of this chapter, or any standards of the department, must be revoked.
(C) When the department approves the software and logic board of a machine, the division may use a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar technology must be done in the presence of a division employee.
Section 12-22-1040. (A) As part of the central computer monitoring system, each location operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.
(B) This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.
(C) The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.
(D) Each location controller must be able to perform the following functions:
(1) communicate with machines in an on-line environment;
(2) store log entries of openings of machine game doors;
(3) store log entries of openings of machine coin or currency doors;
(4) authorize a machine to be taken off-line from the location controller and store a log of this event;
(5) disable a machine and store a log entry upon a game door open, and a coin door open;
(6) store a log entry if machine is off-line from the location controller;
(7) store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;
(8) store a log entry of reenabling a machine that has been disabled;
(9) log entries which include a VGMID for each machine and date/time stamp;
(10) communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;
(11) have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;
(12) have an internal clock;
(13) be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;
(14) be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment;
(15) be capable of validating tickets printed by a machine.
Section 12-22-1050. The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.
Section 12-22-1060. The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The department may also establish a state testing laboratory. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner.
Section 12-22-1070. A machine owner shall notify the department before a machine is added, moved, replaced, or disconnected.
Section 12-22-1080. The licensed establishment or machine owner shall notify the department before a location controller is added, moved, or disconnected.
Section 12-22-1090. (A) Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.
(B) Whenever a machine is disabled during play of a game, the following must occur:
(1) a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;
(2) a count-down timer must be displayed; and
(3) if the player completes the game, all payouts must be reported on a payouts ticket and no other games are allowed to be played on that machine;
(4) if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the manufacturer's recommended play strategy, all payouts must be reported on a payouts ticket, and the machine then disabled.
Section 12-22-1100. (A) Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.
Section 12-22-1110. (A) Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went on-line; and the bank account from which the taxes are withdrawn.
(B) The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.
Section 12-22-1120. (A) No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:
(1) allow more than two dollars to be risked, wagered, or played on any one play or hand; or
(2) issue payouts of more than one hundred twenty-five dollars on any one play or hand;
(3) require any minimum number of credits before issuance of a validated payouts ticket;
(4) permit any player to receive a payout at the end of play greater than one hundred twenty-five dollars, regardles of the amount of money deposited into the machine;
(5) produce at the completion of play validated tickets worth more than one hundred twenty-five dollars regardless of the amount deposited in the machine;
(6) allow at the completion of play the production of multiple tickets with a collective value of greater than one hundred twenty-five dollars or any other schemes to evade the one hundred twenty-five dollars per hand and cash out limits provided above; or
(7) offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than one hundred twenty-five dollars for a single play or hand or at the time of cashing out.
(B) The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) is found.
Section 12-22-1130. A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:
(1) the full name, address, and license number of the person or entity disposing of the machine;
(2) the manufacturer's serial number of the machine;
(3) the model number and description of the machine;
(4) the manufacturer of the machine;
(5) the VGMID of the machine;
(6) the hard meter readings of the machine;
(7) the licensed establishment at which the machine was located;
(8) the proposed manner, time, and place of disposal.
Section 12-22-1140. A machine must not simulate bingo or a slot machine.
Section 12-22-1150. Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.
Section 12-22-1160. All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.
Section 12-22-1170. The department, in its discretion, may approve alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.
Section 12-22-1180. The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than one hundred twenty-five dollars.
Section 12-22-1310. (A) The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.
(B) The division shall:
(1) promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;
(2) provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;
(3) investigate violations under this chapter and any regulations;
(4) conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with this chapter;
(5) receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;
(6) exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;
(7) have the authority to request and receive information, materials, and any other data from any person; and
(8) report to the department any recommendations that promote more efficient operations of the division or the department.
(C) In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:
(1) inspect and examine all establishments where machines are operated;
(2) inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;
(3) inspect all equipment and supplies in, about, upon, or around the establishment;
(4) seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;
(5) inspect, examine, and audit all records pertaining to an applicant's operation;
(6) seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.
(D) The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.
(E) The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.
Section 12-22-1320. (A) Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, service technicians, and their principals.
(B) As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.
(C) Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.
(D) Each applicant and principal shall cooperate with the division and the department in the performance of their duties.
(E) Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.
Section 12-22-1340. (A) The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:
(1) a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:
(a) any offense punishable by imprisonment for two or more years;
(b) any gambling offense;
(c) theft or any crime involving false statements or declarations.
(2) a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;
(3) omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;
(4) association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;
(5) failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;
(6) that the applicant owes any federal or state delinquent taxes, penalties, or interest.
(B) The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.
Section 12-22-1350. (A) Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.
(B) Distributors, principals, machine owners, machine operators, and technicians, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.
Section 12-22-1360. (A) The applicant for a license shall provide detailed information regarding:
(1) the ownership and management, including information on all principals;
(2) a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;
(3) federal registration with respect to gambling devices; and
(4) any other information considered necessary by the department for the proper administration and enforcement of this chapter.
(B) The department and the division are authorized to develop applications and other forms.
(C) The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.
(D) The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.
(E) As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.
Section 12-22-1370. (A) The applicant shall provide the local governing authority information related to the application for any license issued under this chapter.
(B) Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.
Section 12-22-1380. (A) The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.
(B) The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.
(C) The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.
(D) The department or division shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.
Section 12-22-1510. (A) The department may revoke licenses required under this chapter held by any person who fails to comply with any provision of this chapter or any provision of a regulation pertaining to this chapter. In lieu of revocation of licenses, the department may suspend licenses. In addition, the department may impose a monetary penalty of not more than five thousand dollars for each failure to comply with a provision of this chapter or any provision of a regulation pertaining to this chapter. Each violation and each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.
(B) With respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this section.
Section 12-22-1520. (A) A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if:
(1) the person wilfully tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) the person wilfully excludes, or takes any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;
(3) the person wilfully manipulates the outcome, payoff, or operation of a machine;
(4) the person wilfully launders or knowingly allows another to launder money through one or more machines;
(5) the person knowingly possesses, owns, operates, or allows the operation of, a contraband machine, or contraband device, at any place within this State;
(6) on or after September 1, 1999, or the nineteenth day following the effective date of this chapter, whichever is later, the person operates, or allows the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;
(7) the person intentionally skims or excludes, or takes any action, in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines;
(8) the person operates an establishment in this State for the playing of machines without having a license;
(9) the person conducts business in this State as a machine or location controller manufacturer, a machine owner, or a distributor without having a license;
(10) the person operates machines without having a machine license; or
(11) the person managing or otherwise having the charge or care of a licensed establishment, or the owner of a video game machine, wilfully violates items (1), (2), (3), (4), (5), (6), (7), (8), (9), or (11) of Section 12-22-840(A), each being a separate offense under this section.
Section 12-22-1525. Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 16-17-410.
Section 12-22-1530. (A) The following activities are criminal violations of this chapter:
(1) refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State;
(2) refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.
(B) A violator is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than five hundred dollars or imprisonment of not more than thirty days, or both. Each failure to have a license required under this chapter constitutes a separate offense. Offenses under this item are triable in magistrate's court.
Section 12-22-1540. (A) The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1510:
(1) tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;
(2) excluding, or take any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;
(3) manipulating the outcome, payoff, or operation of a machine;
(4) possessing, owning, operating, or allowing the operation of, a contraband machine or device at any place within this State;
(5) operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter; or
(6) conspiring to subvert the provisions of this chapter.
Section 12-22-1550. In addition to all other civil and criminal penalties, any person operating a contraband machine must be assessed a civil penalty in an amount equal to the statewide average of cash placed into a machine for the longer of its time of operation or twelve months.
Section 12-22-1560. (A) The department shall disable machines via the central computer monitoring system for the following reasons:
(1) The establishment at which the machines are located has had its establishment license or retail sales tax license revoked or suspended.
(2) The license assigned to the machine has been revoked or suspended.
(3) The machine owner has had his machine owner's license revoked or suspended.
(4) The machine license has expired and no new license has been issued by the expiration date.
(5) The central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason must be enabled again as soon as the problem has been resolved.
(6) The central computer monitoring system has disabled a machine, upon request, in order for it to be moved or relocated.
(B) A machine disabled for revocation of licenses as set forth in item (1), (2), or (3) of subsection (A) of this section must not operate in this State for a period of five years from the date of the revocation. The five-year prohibition also applies to any part of the machine. Any machine, to include its parts, which is not allowed to operate in this State under the provisions of this section, must be stored by the owner in a facility approved by the department or division.
Section 12-22-1570. (A) Any person may bring a civil action for any violation of any of the provisions of this chapter. The case must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the case may seek any fine or penalty that the State may seek.
(B) A copy of the complaint must be served on the Attorney General and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.
(C) If the State joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twenty-five percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.
(D) If the State does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twenty-five percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.
(E) The State is not liable for expenses which a person incurs in bringing an action under this section.
(F) No settlement may be entered without approval by the department.
(G) Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.
Section 12-22-1580. The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.
Section 12-22-1590. In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.
Section 12-22-1710. Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.
Section 12-22-1720. Every person required to obtain a license for any machine or device described in Section 12-22-1730 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.
Section 12-22-1730. (A) Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A machine on which an admissions tax is imposed is exempt from the license provisions of this section;
(3) a machine of the nonpayout type, in-line pin game operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed;
(4) billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.
(B) The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(C) Machines which have multiplayer stations must have a separate license for each such station.
(D) As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.
(E) If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).
(F) Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.
(G) Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.
(H) The department, upon notification by the licensee purchasing machines from another licensee, shall allow for the transfer of the license issued pursuant to subsection (A) upon sale of the machine and license to the new owner. Notification for the transfer of the machine must be made to the department at least five days before transfer of the machine. This notification of sale must include a notarized statement of both the purchaser and seller identifying the machine by serial identification number and machine license number.
(I) The license issued pursuant to this section must be displayed conspicuously on the front of the machine on a permanent, nontransferable part of the machine before its operation commences. The license must always be a current and valid license.
Section 12-22-1740. (A) In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1730 shall obtain an owner's license biennially as follows:
(1) fifty dollars for devices in Section 12-22-1730(A)(1) and (A)(4);
(2) two hundred dollars for devices in Sections 12-22-1730(A)(2) and 12-22-1730(A)(3).
(B) 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) The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.
(D) Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.
(E) The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.
Section 12-22-1750. In lieu of the licenses required under Sections 12-22-1730 and 12-22-1740, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-1730 and 12-22-1740. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.
Section 12-22-1760. Machines or devices licensed pursuant to Section 12-22-1730(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.
Section 12-22-1770. A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of five hundred dollars for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.
Section 12-22-1780. In addition to the penalties provided in Section 12-22-1770, any machine or device not having the required license attached, or which is improperly licensed, may be seized and confiscated by the division, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may return the property seized and confiscated.
Section 12-22-1790. Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twelve dollars and fifty cents.
Section 12-22-1800. A person required to obtain a license for any machine or device described in Section 12-22-1730 must have attached to the machine or device information identifying the owner or operator of the machine or device. The identification must be placed on a part of the machine or device which is visible for inspection purposes. This identification is a condition precedent before the machine or device may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter and of Chapter 54 as applicable.
Section 12-22-1810. If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee."
2. Section 12-60-3370 of the 1976 Code, as added by Act 60 of 1995, is amended to read:
"Section 12-60-3370. (A) Except as provided below, a taxpayer shall pay, or post a bond for, all taxes, including interest, penalties, and other amounts determined to be due by the Administrative Law Judge or DMV hearing officer before appealing the decision to the circuit court. For property tax cases covered by Section 12-60-2140 or 12-60-2550, the taxpayer need only pay the amount assessed under the appropriate section.
(B) If the revocation or suspension of any license required under Chapter 22 of this title for the disabling of any video game machines via the central computer monitoring system is upheld by a decision of the Administrative Law Judge Division, then the person appealing the decision to the circuit court shall post a cash or surety bond with the department equal to three times the net machine income of the last two calendar quarters for the video game machines in question or in operation at the licensed establishment. As an alternative, the person appealing the decision may pay twice a month, to the department as a cash bond, the net machine income from the video game machines in question or in operation at the licensed establishment. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of any amount determined by the court to be due.
(C) If the revocation or suspension of licenses or the disabling of machines is upheld upon appeal, the person subject to the revocation, suspension, or disabling is liable for and shall pay to the department an amount equal to the net machine income from the date of the decision by the Administrative Law Judge Division to the date of the final court order."
3. Section 61-4-580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(3) permit gambling or games of chance not authorized by Chapter 22 of Title 12;"
4. Chapter 19, Title 16 of the 1976 Code is amended by adding:
"Section 16-19-65. (A) It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
(B) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.
(C) Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if satisfied that it is in violation of this section or any other law of this State, shall direct that it be immediately destroyed.
Section 16-19-66. (A) It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.
(B) It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.
(C) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.
Section 16-19-67. A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."
5. In accordance with Article 9, Chapter 22, Title 12 of the 1976 Code, the Department of Revenue may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in Chapter 22 of that title including the provisions of Section 12-22-1580 of the 1976 Code relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts 1 through 4 of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 of the 1976 Code apply for purposes of this section.
(A) Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.
(B) Each machine must be capable of monitoring and storing the following items:
(1) The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:
(a) cash in, defined as money in dollars and cents;
(b) credits purchased;
(c) credits earned or won;
(d) credits played;
(e) credits paid;
(f) cash paid.
(2) The following security events and the time and date of such events:
(a) game door open;
(b) coin-bill/drop door open;
(c) power off/on;
(d) off line/on line to the location controller;
(e) game control board access (logic area).
(C) Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.
(D) Each machine is not allowed to operate if it is not connected in on-line mode to a location controller meeting the requirements set forth by the department.
(E) A machine must collect the data required in Section 12-22-1040(C) of the 1976 Code and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event required in Section 12-22-1040(C) of the 1976 Code may reflect a time and date stamp and the VGMID of the machine.
(F) A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.
(G) A machine must be capable of being disabled by the central computer monitoring system or the location controller.
(H) A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.
(I) A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.
(J) Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.
(A) A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.
(B) A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.
(C) A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.
(D) The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.
(E) Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.
(F) The internal space of a machine must not be readily accessible when the front door is closed or sealed.
(G) Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.
(H) The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.
(I) No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.
(J) A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.
(K) The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.
(L) A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1580 relating to the time such penalties apply without regard to stays.
(M) Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.
(A) Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.
(B) Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.
(C) Electronic meters also must record security events, with the time and dates, to include game door open, coin-bill/drop door open, power off/on, off line/on line to the location controller, and game control board access.
(D) No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.
(E) Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:
(1) each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chi-squared analysis;
(2) each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;
(3) each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and
(4) each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.
(F) All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner.
(A) For purposes of this part, multiplayer units are divided into two general groups:
(1) units that share some common components (Group I); and
(2) units that share most components (Group II).
(B) Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.
(C) Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:
(1) Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.
(2) Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.
(D) A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.
(1) Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.
(2) Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location controller and go directly to the dealer's station and then back to the location controller. All communications must be sent from the central system and the site controller exactly as detailed in the communications protocol. The dealer's station is responsible for handling all of the communications for the player stations. If the system asked for meters for station number one, the dealer's station is responsible for collecting and sending that data to the central system. The central system must behave exactly as if there are five separate machines. EPROM signature calculations must be performed over the dealer's station program code and transmitted back five times just as if there are five machines all running the same game code. All security, accounting, cash ticket, and event reporting functions must be supported in full.
(E) The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.
6. Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are repealed.
7. The repeal or amendment by this section of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this section, all laws repealed or amended by this section must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this section, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
8. Except where otherwise provided, this section takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. JENNINGS moved to table the amendment, which was agreed to.
Reps. KOON, RHOAD and J. SMITH proposed the following Amendment No. 7A, (Doc Name PT\AMEND\1501DW99), which was tabled.
Amend the bill, as and if amended, by Part II, Permanent Provisions, by adding an appropriately numbered SECTION at the end to read:
TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-EIGHT THE YEARS OF CREDITABLE SERVICE REQUIRED TO RETIRE AT ANY AGE WITHOUT PENALTY; TO AMEND SECTIONS 9-1-1515, 9-1-1660, AND 9-1-1770, AS AMENDED, AND 9-1-1850, AS AMENDED, RELATING TO EARLY RETIREMENT OPTIONS, ELECTION OF A BENEFIT ON THE INSERVICE DEATH OF A MEMBER, AND AMOUNTS DUE ESTATES OF DECEASED MEMBERS UNDER THE GROUP LIFE INSURANCE PLAN, SO AS TO PROVIDE THAT THE ELECTION OF A MEMBER WITH TWENTY-FIVE YEARS CREDITED SERVICE TO BUY SUFFICIENT CREDIT FOR SERVICE RETIREMENT APPLIES TO THE SOUTH CAROLINA RETIREMENT SYSTEM, UPDATE THE BENEFIT ELECTION OPTION ON THE INSERVICE DEATH OF A MEMBER TO REFLECT OTHER CHANGES SINCE ORIGINAL ENACTMENT, AND TO CONFORM THESE OPTIONS AND BENEFITS TO SERVICE RETIREMENT AFTER TWENTY-EIGHT YEARS CREDITABLE SERVICE AT ANY AGE WITHOUT PENALTY AS PROVIDED IN THIS ACT; TO AMEND SECTIONS 9-1-1810 AND 9-11-310, RELATING TO THE ANNUAL COST OF LIVING ADJUSTMENT AUTHORIZED FOR RETIREES AND BENEFICIARIES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS' RETIREMENT SYSTEM AND THE METHOD OF CALCULATING THE ADJUSTMENT, SO AS TO MAKE MANDATORY THE PAYMENT OF AMOUNTS UP TO ONE PERCENT CALCULATED UNDER THE ADJUSTMENT FORMULA, AND TO DELETE OBSOLETE PROVISIONS, AND TO CONFORM IN BOTH SECTIONS REFERENCES TO THE CONSUMER PRICE INDEX USED IN CALCULATING THE COST OF LIVING ADJUSTMENT; AND TO AMEND SECTION 9-1-1220, AS AMENDED, RELATING TO EMPLOYER CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE EMPLOYER CONTRIBUTION RATE BY ONE AND ONE-HALF PERCENT.
A. Section 9-1-1220 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding at the end:
"Effective June 30, 2000, the State Budget and Control Board shall increase the employer contribution rate for the South Carolina Retirement System by one and one-half percent."
B. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:
"Any A member may retire upon written application to the board system setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-eight or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."
C. Section 9-1-1515 of the 1976 Code, as added by Act 559 of 1990, is amended to read:
"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty twenty-eight.
(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty twenty-eight years' creditable service had he not retired, whichever is earlier.
(D)(1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:
(a) the date the member attains age sixty, or
(b) the date the member would have thirty twenty-eight years' creditable service had he not retired.
(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board."
D. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:
"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and
(3) If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.
Upon retirement from service on or after July 1, 1989 June 30, 1999, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.
If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.
(B) Upon retirement from service on or after July 1, 1989 June 30, 1999, a Class Two member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section."
E. Section 9-1-1660 of the 1976 Code is amended to read:
"Section 9-1-1660. (1) The person nominated by a member to receive the full amount of his accumulated contributions in the event of his death before retirement may, if such the member dies after the attainment of age sixty-five sixty or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 2 of Section 9-1-1620. For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.
(2) Any A person otherwise eligible under subsection (1) of this section to elect to receive an allowance who has attained age sixty-five sixty or after the accumulation of thirty twenty-eight years of creditable service or after the attainment of age sixty with twenty fifteen or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, make the election provided for in subsection (1). The monthly payments under Option 2 to the person date from the time of the repayment of the accumulated contributions to the system."
F. The last paragraph of Section 9-1-1770 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:
"Upon the death of a retired member on or after July 1, 1985 after 1999, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a death benefit of one thousand dollars if the retired member had ten years of creditable service but less than twenty years, two thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-eight, and three thousand dollars if the retired member had at least thirty twenty-eight years of creditable service at the time of retirement, provided the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."
G. Section 9-1-1810 of the 1976 Code is amended to read:
"Section 9-1-1810. As of the end of each calendar year commencing with the year ending December 31, 1969, the increase in the ratio of the Consumer Price Index to the index as of December 31, 1968, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances shall commence commences the July first immediately following the December thirty-first that the increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances after the first five increases shall become is effective only if the additional liabilities, on account because of the increase in allowances, do not require an increase in the total employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."
H. Section 9-1-1850 of the 1976 Code, as last amended by Act 420 of 1994, is further amended to read:
"Section 9-1-1850. (A)(1) A member who has at least twenty-five years of creditable service in any retirement the system provided in this title chapter may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system South Carolina Retirement System the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:
Years to be Percentage of
Credited Salary
(a) not more
than one year 58 percent
(b) over one year but
not more than two years
54 percent for each year
(c) over two years
but not more than
three years
50 percent for each year
(d) over three years,
but not more than
four years
46 percentfor each year
(e) over four years
42 percent for each year
(2) The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.
(3) Any service credit purchased under this subsection qualifies the member for retirement, and the member must retire within ninety days after the purchase.
(B) As an alternative to the option provided in subsection (A), the member, if he has at least twenty-five years of creditable service, may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by him as an employee or member upon paying into his retirement system, during the ensuing number of years he wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after the member's retirement, he shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement, and the member must retire within ninety days subsequent to electing the option provided by subsection (B). The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes determining the member's average final compensation.
The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty twenty-eight years of service."
I. Section 9-11-310 of the 1976 Code is amended to read:
"Section 9-11-310. As of the end of each calendar year commencing with the year ending December 31, 1974, the increase in the ratio of the Consumer Price Index to such the index as of December 31, 1973, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three percent, the retirement allowance, exclusive of any part thereof derived from accumulated additional contributions, of each beneficiary in receipt of an allowance as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances must commence commences the July first immediately following the December thirty-first that the increase in ratio was determined.
Beginning with the calendar year ending December 31, 1981, all All increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances after the first five such increases shall become becomes effective only if the additional liabilities on account of the increase in allowances do not require an increase in the employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, must, when and if payable, must be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index (all items United States city average), for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics."
J. This section takes effect June 30, 2000./
Renumber sections to conform.
Amend totals and title to conform.
Rep. KOON moved to table the amendment, which was agreed to.
Rep. KOON moved to reconsider the vote whereby Amendment No. 5A was tabled and the motion was noted.
Rep. J. SMITH proposed the following Amendment No. 11A (Doc Name DKA\AMEND\3508MM99), which was tabled.
Amend the bill, as and if amended, Part IB, item (1) Department of Education, subsection (B) of Paragraph 72.83, by inserting an appropriately lettered subitem to read:
/ ( ) School Safety Officers $10,000,000 /
Reletter subitems and renumber sections to conform.
Amend totals and title to conform.
Rep. J. SMITH moved to table the amendment, which was agreed to.
The motion of Rep. M. MCLEOD to reconsider the vote whereby Amendment No. 6A was tabled was taken up.
Rep. EASTERDAY moved to table the motion to reconsider.
Rep. CARNELL demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cotty Dantzler Davenport Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Koon Lanford Law Leach Littlejohn Loftis Martin Mason McGee McKay Meacham Quinn Rice Robinson Rodgers Sandifer Seithel Simrill Smith D. Smith R. Stille Townsend Tripp Vaughn Walker Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Allen Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Limehouse Lloyd Lourie Lucas Maddox McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Riser Rutherford Scott Sheheen Smith J. Stuart Taylor Webb Whatley Whipper Wilder Wilkes
So, the House refused to table the motion to reconsider.
The question then recurred to the motion to reconsider.
Rep. FLEMING demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allen Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Limehouse Lloyd Lourie Lucas Mack Maddox McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Rutherford Scott Sheheen Smith F. Smith J. Stille Stuart Taylor Webb Whatley Whipper Wilder Wilkes
Those who voted in the negative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Davenport Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Koon Lanford Law Leach Littlejohn Loftis Martin Mason McGee McKay Meacham Quinn Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Simrill Smith D. Smith R. Townsend Tripp Vaughn Walker Wilkins Witherspoon Woodrum Young-Brickell
So, the motion to reconsider was agreed to.
Rep. FLEMING moved that the House do now adjourn.
Rep. SHEHEEN demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Barrett Bowers Cotty Easterday Fleming Gilham Hamilton Haskins Leach Littlejohn Loftis Rice Rodgers Sandifer Townsend Tripp Vaughn Young-Brickell
Those who voted in the negative are:
Allen Allison Altman Askins Bailey Bales Barfield Battle Beck Breeland Brown G. Brown H. Brown T. Campsen Carnell Cato Chellis Clyburn Cobb-Hunter Cooper Dantzler Davenport Delleney Edge Emory Gamble Gourdine Govan Harrell Harris Harrison Harvin Hawkins Hayes Hines J. Hinson Howard Inabinett Jennings Keegan Kelley Kennedy Kirsh Klauber Knotts Koon Lanford Law Lee Limehouse Lloyd Lourie Lucas Mack Martin Mason McCraw McGee McLeod M. McLeod W. McMahand Meacham Miller Neal Neilson Ott Parks Phillips Pinckney Quinn Riser Robinson Rutherford Scott Seithel Sharpe Sheheen Simrill Smith D. Smith F. Smith J. Smith R. Stille Stuart Taylor Walker Webb Whatley Whipper Wilder Wilkes Witherspoon Woodrum
So, the House refused to adjourn.
Rep. HASKINS moved to table the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Koon Lanford Law Leach Littlejohn Loftis Lucas Martin Mason McGee McKay Meacham Neilson Quinn Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Simrill Smith D. Smith R. Townsend Tripp Vaughn Walker Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Allen Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Davenport Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Limehouse Lloyd Lourie Mack Maddox McCraw McLeod M. McLeod W. McMahand Miller Neal Ott Parks Phillips Pinckney Rhoad Rutherford Scott Sheheen Smith F. Smith J. Stille Stuart Taylor Webb Whatley Whipper Wilder Wilkes
So, the House refused to table the amendment.
The question then recurred to the adoption of the amendment.
Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allen Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Howard Inabinett Jennings Kennedy Klauber Knotts Lee Limehouse Lloyd Lourie Mack Maddox McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Rutherford Scott Smith F. Smith J. Stille Stuart Taylor Webb Whatley Whipper Wilder Wilkes
Those who voted in the negative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Davenport Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Koon Lanford Law Leach Littlejohn Loftis Lucas Martin Mason McGee McKay Meacham Quinn Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Sheheen Simrill Smith D. Smith R. Townsend Tripp Vaughn Walker Wilkins Witherspoon Woodrum Young-Brickell
So, the amendment was rejected.
The motion of Rep. GOVAN to reconsider the vote whereby Amendment No. 4A was tabled was taken up.
Rep. HASKINS moved to table the motion to reconsider.
Rep. BAILEY demanded the yeas and nays, which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Barfield Barrett Beck Brown H. Campsen Cato Chellis Cooper Cotty Dantzler Easterday Edge Fleming Gilham Hamilton Harrell Harrison Haskins Hawkins Hinson Keegan Kelley Kirsh Klauber Knotts Koon Lanford Law Leach Limehouse Littlejohn Loftis Lucas Martin Mason McGee McKay Meacham Quinn Rice Riser Robinson Rodgers Sandifer Seithel Sharpe Simrill Smith D. Smith R. Taylor Townsend Tripp Vaughn Walker Webb Whatley Wilkins Witherspoon Woodrum Young-Brickell
Those who voted in the negative are:
Allen Askins Bailey Bales Battle Bowers Breeland Brown G. Brown T. Carnell Clyburn Cobb-Hunter Davenport Delleney Emory Gamble Gourdine Govan Harris Harvin Hayes Hines J. Howard Inabinett Jennings Kennedy Lee Lloyd Lourie Mack Maddox McCraw McLeod M. McLeod W. McMahand Miller Neal Neilson Ott Parks Phillips Pinckney Rhoad Rutherford Scott Sheheen Smith F. Smith J. Stille Stuart Whipper Wilder Wilkes
So, the motion to reconsider was tabled.
The motion of Rep. KOON to reconsider the vote whereby Amendment No. 5A was tabled was taken up.
Rep. KIRSH moved to table the motion to reconsider, which was agreed to.
The Senate amendments, as amended, were then agreed to and the Bill was ordered returned to the Senate.
Rep. COBB-HUNTER moved that the House recur to the morning hour, which was agreed to by a division vote of 56 to 37.
The following was introduced:
H. 4051 (Word version) -- Reps. Inabinett, Bailey, Battle, Beck, Bowers, Breeland, T. Brown, Campsen, Chellis, Clyburn, Dantzler, Gilham, Gourdine, Harrison, Harvin, Hayes, J. Hines, M. Hines, Howard, Kennedy, Koon, Lee, Lloyd, Mason, McCraw, Miller, Neal, Parks, Phillips, Rhoad, Riser, Rutherford, Scott, Seithel, F. Smith, Stuart, Townsend, Whipper and Witherspoon: A HOUSE RESOLUTION TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES BY ADDING RULE 7.8 SO AS TO PROVIDE A PROCEDURE FOR A REPRESENTATIVE, WHO IS GRANTED AN EXCUSED ABSENCE FOR THE LEGISLATIVE DAY WHEN ELECTIONS FOR OFFICES ELECTED BY THE GENERAL ASSEMBLY IN JOINT SESSION ARE CONDUCTED, TO CAST HIS VOTE IN THOSE SCHEDULED ELECTIONS BY ABSENTEE BALLOT BEFORE THE ELECTION DAY.
The Resolution was ordered referred to the Committee on Rules.
On motion of Rep. QUINN, with unanimous consent, the following was taken up for immediate consideration:
H. 4052 (Word version) -- Rep. Quinn: A CONCURRENT RESOLUTION TO DECLARE THE MONTH OF AUGUST, 1999, AS "SCHOOL VIOLENCE AWARENESS MONTH" IN SOUTH CAROLINA IN ORDER TO RAISE PUBLIC AWARENESS OF THIS INCREASING PROBLEM IN OUR STATE, AND TO REQUEST THE ATTORNEY GENERAL TO PROVIDE A REPORT TO THE GENERAL ASSEMBLY ON THE STATUS OF SCHOOL VIOLENCE AND OTHER SCHOOL CRIME IN SOUTH CAROLINA.
Whereas, school crime has been on the rise in the State of South Carolina; and
Whereas, one of the primary functions of state government is to promote public safety and provide for public education; and
Whereas, the General Assembly desires to promote public safety for the citizens of our State in part by focusing on the problem of school violence; and
Whereas, parents, members of the General Assembly, law enforcement officials, and school officials need to be educated on the issue of school violence and other criminal activities; and
Whereas, increased public awareness is needed to prevent school violence. Now, therefore,
Be it resolved by the House of Representatives, the Senate concurring:
That, by this resolution, the South Carolina General Assembly declares the month of August, 1999, as "School Violence Awareness Month" in South Carolina in order to raise public awareness of this increasing problem in our State.
Be it further resolved that the Attorney General is requested to provide a report to the General Assembly by January 1, 2000, on the status of school violence and other school criminal activities in an effort to assist the General Assembly in promoting school safety.
Be it further resolved that a copy of this resolution be forwarded to the Attorney General.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4053 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO COMMEND MS. FRANCES PRATT WADE OF RICHLAND COUNTY FOR HER LIFETIME OF FAITHFUL AND DEVOTED SERVICE TO HER CHURCH, FAMILY, AND FELLOWMAN ON THE OCCASION OF MOTHER'S DAY.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following Bills and Joint Resolution were introduced, read the first time, and referred to appropriate committees:
H. 4054 (Word version) -- Reps. Koon, Knotts, Riser, Hamilton, Inabinett, Leach, Lloyd, Neilson and Whipper: A BILL TO AMEND SECTION 20-7-1780, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONFIDENTIALITY OF ADOPTION HEARINGS AND RECORDS, AND CIRCUMSTANCES UNDER WHICH THE IDENTITIES OF AN ADOPTEE, THE BIOLOGICAL PARENTS, AND THE SIBLINGS OF THE ADOPTEE MUST BE DISCLOSED, SO AS TO DELETE THE REQUIREMENT THAT AFFIDAVITS OF THE ADOPTEE, THE BIOLOGICAL PARENTS, AND SIBLINGS MUST BE ON FILE AUTHORIZING DISCLOSURE AND TO REQUIRE ADOPTION AGENCIES TO DISCLOSE UPON WRITTEN REQUEST WHEN AN ADOPTEE IS TWENTY-ONE YEARS OF AGE OR OLDER.
Referred to Committee on Judiciary
H. 4055 (Word version) -- Reps. Keegan and Kelley: A BILL TO AMEND SECTION 7-7-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN HORRY COUNTY, SO AS TO REDESIGNATE AND RENAME CERTAIN PRECINCTS, DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED, AND PROVIDE THAT POLLING PLACES FOR THESE PRECINCTS MUST BE DETERMINED BY THE HORRY COUNTY BOARD OF REGISTRATION AND ELECTIONS WITH THE APPROVAL OF A MAJORITY OF THE HORRY COUNTY LEGISLATIVE DELEGATION.
Rep. KEEGAN asked unanimous consent to have the Bill placed on the Calendar without reference.
Rep. WITHERSPOON objected.
Referred to the Horry County Delegation
H. 4056 (Word version) -- Rep. Davenport: A BILL TO AMEND SECTION 20-7-6605, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF TERMS USED IN THE JUVENILE JUSTICE CODE, SO AS TO REVISE THE DEFINITION OF CHILD TO INCLUDE PERSONS UNDER EIGHTEEN YEARS OF AGE IN THE CASE OF STATUS OFFENSES; TO AMEND SECTION 20-7-7807 RELATING TO SUSPENSION AND REVOCATION OF A DRIVER'S LICENSE AS PART OF THE FAMILY COURT'S DISPOSITIONAL AUTHORITY IN ADJUDICATING DELINQUENTS, SO AS TO APPLY THIS AUTHORITY TO CERTAIN JUVENILES UP TO AGE EIGHTEEN; TO AMEND SECTIONS 59-65-10 AND 59-65-30, BOTH AS AMENDED, AND BOTH RELATING TO COMPULSORY SCHOOL ATTENDANCE, SO AS TO REQUIRE CHILDREN TO ATTEND SCHOOL UNTIL REACHING THE AGE OF EIGHTEEN RATHER THAN AGE SEVENTEEN.
Referred to Committee on Judiciary
H. 4057 (Word version) -- Reps. Cobb-Hunter, Breeland, Maddox and Phillips: A BILL TO AMEND CHAPTER 56, TITLE 33, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO THE SOLICITATION OF CHARITABLE FUNDS ACT, SO AS TO REVISE THE CONTENT BY, INTER ALIA, ADDING CERTAIN DISCLOSURE REQUIREMENTS, DEFINITIONS OF AFFECTED SOLICITORS, PENALTIES FOR VIOLATIONS, AND TECHNICAL CHANGES.
Referred to Committee on Judiciary
H. 4058 (Word version) -- Rep. Davenport: A JOINT RESOLUTION TO CREATE A TASK FORCE TO STUDY THE MERIT AND FEASIBILITY OF TRANSFERRING TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL THE LICENSING AND REGULATORY AUTHORITY FOR CHILD DAY CARE FROM THE DEPARTMENT OF SOCIAL SERVICES AND THE INSPECTION RESPONSIBILITY OF THE STATE FIRE MARSHAL AND TO REQUIRE THE TASK FORCE TO REPORT TO THE GOVERNOR AND GENERAL ASSEMBLY BEFORE JANUARY 1, 2000, AT WHICH TIME THE TASK FORCE IS ABOLISHED.
Referred to Committee on Medical, Military, Public and Municipal Affairs
H. 4059 (Word version) -- Rep. Davenport: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-8-80 SO AS TO REQUIRE THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, IN COOPERATION WITH THE SOUTH CAROLINA BUILDING CODES COUNCIL, TO ESTABLISH A CERTIFICATION PROGRAM FOR THE TRAINING OF BUILDING CODES ENFORCEMENT OFFICERS.
Referred to Committee on Labor, Commerce and Industry
Reps. SCOTT, PINCKNEY AND KEEGAN withdrew their requests for debate on H. 4017; however, other requests for debate remained on the Bill.
On motion of Rep. HAMILTON, with unanimous consent, the following Bill was ordered recalled from the Committee on Education and Public Works:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn and Young-Brickell: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 75 SO AS TO ENACT THE "SOUTH CAROLINA EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999" WHICH AUTHORIZES THE STATE DEPARTMENT OF EDUCATION TO GRANT WAIVERS TO SCHOOLS AND SCHOOL DISTRICTS FROM SPECIFIED STATE STATUTORY AND REGULATORY EDUCATIONAL REQUIREMENTS UNDER CERTAIN CONDITIONS.
Rep. PINCKNEY asked unanimous consent to recall S. 70 from the Committee on Judiciary.
Rep. HARRISON objected.
Rep. SCOTT asked unanimous consent to recall H. 3005 from the Committee on Ways and Means.
Rep. RICE objected.
Rep. HASKINS moved that the House do now adjourn, which was agreed to.
The Senate returned to the House with concurrence the following:
H. 3324 (Word version) -- Rep. Harris: A CONCURRENT RESOLUTION REQUESTING THE SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION TO DESIGNATE THE BRIDGE ON S.C. 52 NORTH OF CHERAW IN CHESTERFIELD COUNTY AS THE "GILBERT 'GIL' FRANKLIN HALMA BRIDGE."
H. 4031 (Word version) -- Reps. G. Brown, Canty, M. McLeod, Neal and Woodrum: A CONCURRENT RESOLUTION TO EXTEND THE DEEPEST SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE FAMILY AND FRIENDS OF CLAYTON LOWDER, SR., FROM SUMTER COUNTY.
H. 4032 (Word version) -- Reps. Lourie, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO EXTEND THE BEST WISHES AND HEARTFELT CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE RICHLAND NORTHEAST HIGH SCHOOL'S MODEL UNITED NATIONS TEAM AND THEIR FACULTY ADVISER AND SPONSOR, MS. LYN WASHINGTON, ON CAPTURING THE FIRST PLACE GOLD MEDAL AWARD OF DISTINCTION AT THE NATIONAL HIGH SCHOOL MODEL UNITED NATIONS CONFERENCE HELD ANNUALLY IN NEW YORK CITY.
At 1:00 P.M. the House in accordance with the motion of Rep. H. BROWN adjourned in memory of Carl T. Floyd of Goose Creek, to meet at 10:00 A.M. tomorrow.
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