South Carolina General Assembly
113th Session, 1999-2000
Journal of the Senate


Printed Page 1273 . . . . . Tuesday, April 13, 1999

Tuesday, April 13, 1999
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear words from the first book of the Bible, Genesis, Chapter 2 (v. 15):

"The Lord God took the man and put him in the Garden of Eden to

till it and keep it."
Let us pray.

Lord God, gracious God, we know that springtime doesn't just happen. We know that spring is more than a beautiful season of the year. We know that spring is a WITNESS of our God's INTENTIONS!

Lord, we are made glad by knowing that it is not Your plan for the earth to remain dead, dismal, dreary and cold; and that with the spring comes the plowing and seed-planting, and the warm sunshine and the rain. Yes, Lord, the PROMISE of harvest and full barns!

Our morning petition is this: may the renewal of life about us remind us of God's renewal of life within us, the springtime of the soul!

Make us good workers in our garden of duty today, that our lives may bloom and bear fruit to our people's good... and Your glory!
Amen.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

Doctor of the Day

Senator McCONNELL introduced Dr. Roy Nickles of Charleston, S.C., Doctor of the Day.

Leave of Absence

At 2:30 P.M., Senator GIESE requested a leave of absence until 3:15 P.M.


Printed Page 1274 . . . . . Tuesday, April 13, 1999

Leave of Absence

At 7:20 P.M., Senator COURSON requested a leave of absence from 6:00-9:00 P.M. on Wednesday, April 14, 1999.

RECALLED

S. 670 (Word version) -- Senator Elliott: A BILL TO AMEND SECTION 50-11-355, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE HUNTING OF DEER NEAR RESIDENCES SO AS TO PROVIDE THAT A LANDOWNER HUNTING ON HIS OWN LAND, HIS LICENSEE, OR A PERSON TAKING DEER PURSUANT TO A DEPARTMENT PERMIT ARE EXEMPT FROM THE PROHIBITION AGAINST HUNTING WITHIN THREE HUNDRED YARDS OF A RESIDENCE.

Senator ELLIOTT asked unanimous consent to recall the Bill from the Committee on Fish, Game and Forestry.

There was no objection.

The Bill was ordered placed on the Calendar.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 712 (Word version) -- Senator Alexander: A CONCURRENT RESOLUTION TO OFFER THE CONGRATULATIONS AND BEST WISHES OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THOMAS SIDNEY BASS, HEAD FOOTBALL COACH OF SENECA HIGH SCHOOL, ON THE OCCASION OF HIS RETIREMENT AND ON BEING NAMED THE 1999 RECIPIENT OF THE DISTINGUISHED COACH AWARD FROM THE SOUTH CAROLINA FOOTBALL COACHES ASSOCIATION.

The Concurrent Resolution was adopted, ordered sent to the House.

S. 713 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION TO HONOR MRS. MARY M. LAW FOR HER 41 YEARS OF DEDICATED, LOYAL SERVICE TO THE SOUTH CAROLINA BOARD OF REGISTRATION FOR PROFESSIONAL ENGINEERS AND LAND SURVEYORS.

The Concurrent Resolution was adopted, ordered sent to the House.


Printed Page 1275 . . . . . Tuesday, April 13, 1999

H. 3477 (Word version) -- Reps. Neilson, Seithel, Sharpe, J. Brown, J. Smith, R. Smith, Rhoad, Lucas, Davenport, Lee, Mason, Altman, Keegan, Harrison, McCraw, Clyburn, J. Hines, Bales, Lourie, Lanford, Bauer and Tripp: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 43-21-190 SO AS TO CREATE A MODEL LEGISLATURE ON AGING ISSUES TO BE ADMINISTERED BY THE SOUTH CAROLINA SILVER HAIRED LEGISLATURE, INC.; TO PROVIDE FOR THE PURPOSES OF THE LEGISLATURE; AND TO PROVIDE THAT MEMBERS MUST BE SELECTED BY THE SOUTH CAROLINA SILVER HAIRED LEGISLATURE IN COORDINATION WITH THE STATE'S NETWORK OF AGING PROGRAMS.

Read the first time and referred to the Committee on Medical Affairs.

H. 3677 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO PROPOSE AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, SO AS TO DELETE REFERENCES TO THE PROHIBITION ON LOTTERIES, THEIR ADVERTISING, AND TICKET SALES AND TO PROVIDE THAT LOTTERIES MAY BE CONDUCTED ONLY BY THE STATE AND TO PROVIDE FOR THE USE OF THE REVENUES DERIVED FROM THE LOTTERIES.

Read the first time and referred to the Committee on Finance.

H. 3897 (Word version) -- Rep. Lucas: A CONCURRENT RESOLUTION CONGRATULATING MS. NANCY ELIZABETH "LIBBY" BAKER OF THE CHESTERFIELD COUNTY SCHOOL DISTRICT ON BEING NAMED "1999 SOUTH CAROLINA TEACHER OF THE YEAR".

The Concurrent Resolution was adopted, ordered returned to the House.

H. 3898 (Word version) -- Rep. Askins: A CONCURRENT RESOLUTION RECOGNIZING AND SALUTING MARY M. LAW UPON HER RETIREMENT AS EXECUTIVE DIRECTOR OF SCBRPELS.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 3899 (Word version) -- Reps. J. Brown, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown,


Printed Page 1276 . . . . . Tuesday, April 13, 1999

H. 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, 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 DECLARE MAY, 1999, AS STROKE AWARENESS MONTH IN SOUTH CAROLINA AND TO URGE ALL CITIZENS TO EDUCATE THEMSELVES REGARDING THE RISK FACTORS FOR STROKE AND HEART DISEASE AND TO RECOGNIZE THE SIGNS AND SYMPTOMS OF THESE CONDITIONS.

The Concurrent Resolution was introduced and referred to the Committee on Invitations.

H. 3188--CONFERENCE COMMITTEE APPOINTED

H. 3188 (Word version) -- Reps. Knotts, Edge, Rodgers, Whatley and Simrill: A BILL TO AMEND SECTION 56-5-1520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPEED LIMITS, SO AS TO PROVIDE THAT THE MAXIMUM SPEED LIMIT ON AN INTERSTATE HIGHWAY IS SEVENTY MILES AN HOUR; AND TO REPEAL SECTION 56-5-1510, RELATING TO THE STATE'S FIFTY-FIVE MILE AN HOUR MAXIMUM SPEED LIMIT AND FEDERAL LAWS THAT PERMIT THE STATE TO SET SPEED LIMITS GREATER THAN FIFTY-FIVE MILES AN HOUR.

The PRESIDENT Pro Tempore appointed Senators BRYAN, RAVENEL and HUTTO of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.


Printed Page 1277 . . . . . Tuesday, April 13, 1999

AMENDED AND ADOPTED

S. 700 (Word version) -- Senator McConnell: A SENATE RESOLUTION TO AMEND RULE 19 RELATING TO THE SELECTION OF COMMITTEES SO AS TO PROVIDE THAT THE PRESIDENT PRO TEMPORE IS DESIGNATED TO ESTABLISH A TIME FOR COMMITTEE SELECTION AFTER A SPECIAL ELECTION AND TO CLARIFY THE PROVISIONS RELATING TO SELECTIONS MADE ON THE FIRST AND SECOND ROUND.

Pursuant to the motion made by Senator HOLLAND on Thursday, April 8, 1999, the Senate proceeded to a consideration of the Senate Resolution. The question being the adoption of the Resolution.

Senator McCONNELL spoke on the Resolution.

Amendment No. 1

Senator PEELER proposed the following Amendment No. 1 (700R001.HSP), which was adopted:

Amend the resolution, as and if amended, page 2, line 4, by deleting the words / and 50 / and inserting:

/     50 and 51     /

Amend the resolution further, as and if amended, page 2, line 11, by deleting / 45, / and inserting:

/     and 45     /

Amend the resolution further, as and if amended, page 2, line 12, by deleting the words:

/     and 51       /

Renumber sections to conform.

Amend title to conform.

Senator PEELER explained the amendment.

The amendment was adopted.

Amendment No. 2

Senator McCONNELL proposed the following Amendment No. 2 (RUL.007.001), which was adopted:

Amend the senate resolution, as and if amended, page 3, line 2, by inserting after the word /Tempore./ the following:


Printed Page 1278 . . . . . Tuesday, April 13, 1999

/     In the case of a special election, the President Pro Tempore must call a session for the purpose of committee selections within three statewide days after a Senator elected in a special election has taken the oath of office.   /

Amend the senate resolution further, as and if amended, page 3, line 25, by inserting after the word /designation/ the following:

/     within the timeframe     /

Amend title to conform.

Senator McCONNELL explained the amendment.

Senator McCONNELL moved that the amendment be adopted.

The amendment was adopted.

Senator McCONNELL spoke on the Resolution.

The Senate Resolution was adopted, as amended.

Call of the Senate

At 12:27 P.M., Senator McCONNELL moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Cork
Courson                   Courtney                  Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hayes                     Holland
Hutto                     Jackson                   Land
Leatherman                Leventis                  Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     O'Dell
Passailaigue              Patterson                 Peeler
Rankin                    Ravenel                   Reese
Ryberg                    Saleeby                   Setzler
Short                     Smith, J. Verne           Thomas
Waldrep                   Washington                Wilson


Printed Page 1279 . . . . . Tuesday, April 13, 1999

Recorded Presence

Senator RUSSELL recorded his presence subsequent to the Call of the Senate.

Selection of Standing Committees

On motion of Senator DRUMMOND, the Senate proceeded to the Selection of Committees.

COMMITTEE SELECTIONS
APRIL 13, 1999

DRUMMOND, JOHN

First Round Selection           Second Round Selection

Finance, Chmn.

Fish, Game and Forestry

Interstate Cooperation, Chmn.

Labor, Commerce and Industry

Rules

HOLLAND, DON

First Round Selection           Second Round Selection

Corrections and Penology         General Committee

Ethics

Fish, Game and Forestry

Judiciary, Chmn.

Rules

SALEEBY, ED

First Round Selection           Second Round Selection

Banking and Insurance, Chmn.

Education

Ethics

Judiciary

Labor, Commerce and Industry

SMITH, J. VERNE

First Round Selection           Second Round Selection

Ethics

Finance

Interstate Cooperation

Labor, Commerce and


Printed Page 1280 . . . . . Tuesday, April 13, 1999

Industry, Chmn.

Medical Affairs

Rules

LAND, JOHN

First Round Selection           Second Round Selection

Agriculture and Natural           Rules

Resources

Ethics

Finance

Fish, Game and Forestry

Transportation, Chmn.

SETZLER, NIKKI

First Round Selection           Second Round Selection

Banking and Insurance           Agriculture and Natural Resources

Education, Chmn.

Finance

Interstate Cooperation

Labor, Commerce and

Industry

LEATHERMAN, HUGH

First Round Selection           Second Round Selection

Banking and Insurance           Fish, Game and Forestry

Ethics, Chmn.

Finance

Interstate Cooperation

Labor, Commerce and Industry

Transportation

LEVENTIS, PHIL

First Round Selection           Second Round Selection

Agriculture and Natural           Fish, Game & Forestry

Resources, Chmn.

Ethics

Finance

Labor, Commerce and Industry

Transportation


Printed Page 1281 . . . . . Tuesday, April 13, 1999

McCONNELL, GLENN

First Round Selection           Second Round Selection

Banking and Insurance           Agriculture and Natural

Ethics                         Resources

Judiciary

Labor, Commerce and Industry

Rules, Chmn.

MOORE, TOM

First Round Selection           Second Round Selection

General                       Fish, Game and Forestry

Judiciary

Labor, Commerce and Industry

Medical Affairs, Chmn.

PEELER, HARVEY

First Round Selection           Second Round Selection

Education                     Agriculture and Natural Resources

Ethics

Finance

Fish, Game and Forestry, Chmn.

Medical Affairs

BRYAN, JAMES

First Round Selection           Second Round Selection

Corrections and Penology         Rules

Education

Judiciary

Medical Affairs

COURSON, JOHN

First Round Selection           Second Round Selection

Banking and Insurance           General Committee

Education

Ethics

Finance

Invitations, Chmn.

Medical Affairs


Printed Page 1282 . . . . . Tuesday, April 13, 1999

GIESE, WARREN

First Round Selection           Second Round Selection

Corrections and Penology         Fish, Game and Forestry

Education

Ethics

Finance

Medical Affairs

MATTHEWS, JOHN

First Round Selection           Second Round Selection

Agriculture and Natural           Rules

Resources

Banking and Insurance

Education

Finance

Invitations

THOMAS, DAVID

First Round Selection           Second Round Selection

Banking and Insurance           General Committee

Corrections and

Penology, Chmn.

Finance

Medical Affairs

WILSON, JOE

First Round Selection           Second Round Selection

Education                     Corrections and Penology

General, Chmn.

Invitations

Judiciary

Transportation

PATTERSON, KAY

First Round Selection           Second Round Selection

Banking and Insurance           Rules

Corrections and Penology

Finance

Invitations

Transportation


Printed Page 1283 . . . . . Tuesday, April 13, 1999

RUSSELL, JOHN

First Round Selection           Second Round Selection

Banking and Insurance           Rules

Education

General

Invitations

Judiciary

McGILL, YANCEY

First Round Selection           Second Round Selection

Agriculture and Natural           Rules

Resources

Finance

Fish, Game and Forestry

Invitations

Transportation

O'DELL, BILLY

First Round Selection           Second Round Selection

Finance                       Agriculture and Natural Resources

General

Invitations

Labor, Commerce and Industry

Transportation

PASSAILAIGUE, ERNIE

First Round Selection           Second Round Selection

Banking and Insurance           Fish, Game and Forestry

Finance

Invitations

Labor, Commerce and Industry

Transportation

WASHINGTON, McKINLEY

First Round Selection           Second Round Selection

Banking and Insurance           Corrections and Penology

Education

Finance

General

Invitations


Printed Page 1284 . . . . . Tuesday, April 13, 1999

REESE, GLENN

First Round Selection           Second Round Selection

Banking and Insurance           Agriculture and Natural Resources

Finance

Interstate Cooperation

Invitations

Labor, Commerce and Industry

Rules

HAYES, WES

First Round Selection           Second Round Selection

Banking and Insurance           Corrections and Penology

Education

Finance

Medical Affairs

COURTNEY, TY

First Round Selection           Second Round Selection

Banking and Insurance           Agriculture and Natural Resources   General

Judiciary

Labor, Commerce and Industry

CORK, HOLLY

First Round Selection           Second Round Selection

Agriculture and Natural           General

Resources

Education

Judiciary

Medical Affairs

ELLIOTT, DICK

First Round Selection           Second Round Selection

Fish, Game and Forestry         Rules

Judiciary

Labor, Commerce and Industry

Transportation


Printed Page 1285 . . . . . Tuesday, April 13, 1999

FORD, ROBERT

First Round Selection           Second Round Selection

Banking and Insurance           Rules

Corrections and Penology

Judiciary

Labor, Commerce and Industry

GLOVER, MAGGIE

First Round Selection           Second Round Selection

Agriculture and Natural           Rules

Resources

Corrections and Penology

Education

Judiciary

GREGORY, GREG

First Round Selection           Second Round Selection

Corrections and Penology         Rules

Fish, Game and Forestry

General

Judiciary

JACKSON, DARRELL

First Round Selection           Second Round Selection

Agriculture and Natural           Rules

Resources

Banking and Insurance

Judiciary

Medical Affairs

MARTIN, LARRY

First Round Selection           Second Round Selection

Banking and Insurance           Corrections and Penology

General

Judiciary

Rules


Printed Page 1286 . . . . . Tuesday, April 13, 1999

MESCHER, WILLIAM

First Round Selection           Second Round Selection

Education                     Corrections and Penology

General

Judiciary

Labor, Commerce and Industry

RANKIN, LUKE

First Round Selection           Second Round Selection

Banking and Insurance           Rules

Education

Judiciary

Transportation

RYBERG, GREG

First Round Selection           Second Round Selection

Corrections and Penology

Judiciary

Labor, Commerce and Industry

Transportation

SHORT, LINDA

First Round Selection           Second Round Selection

Education

General

Medical Affairs

Transportation

WALDREP, ROBERT

First Round Selection           Second Round Selection

Agriculture and Natural

Resources

Corrections and Penology

Education

Fish, Game and Forestry


Printed Page 1287 . . . . . Tuesday, April 13, 1999

ALEXANDER, THOMAS

First Round Selection           Second Round Selection

General

Labor, Commerce and Industry

Medical Affairs

Transportation

FAIR, MICHAEL L.

First Round Selection           Second Round Selection

Corrections and Penology

General

Medical Affairs

Transportation

HUTTO, C. BRADLEY

First Round Selection           Second Round Selection

Agriculture and Natural

Resources

Fish, Game and Forestry

Medical Affairs

Transportation

ANDERSON, RALPH

First Round Selection           Second Round Selection

Corrections and Penology

Education

Medical Affairs

Transportation

RAVENEL, ARTHUR

First Round Selection           Second Round Selection

Agriculture and Natural

Resources

Fish, Game and Forestry

General

Transportation

BRANTON, BILL

First Round Selection           Second Round Selection

Fish, Game and Forestry

Labor, Commerce and Industry


Printed Page 1288 . . . . . Tuesday, April 13, 1999

Medical Affairs

Transportation

GROOMS, LARRY

First Round Selection           Second Round Selection

Agriculture and Natural

Resources

Corrections and Penology

Fish, Game and Forestry

Medical Affairs

BAUER, ANDRÉ

First Round Selection           Second Round Selection

Agriculture and Natural

Resources

Fish, Game and Forestry

General

Medical Affairs

STANDING COMMITTEES OF THE SENATE
APRIL 13, 1999

AGRICULTURE AND NATURAL RESOURCES
Leventis, Phil, Chairman
Land, John C., III
Setzler, Nikki
Peeler, Harvey S., Jr.
Matthews, John W., Jr.
McGill, J. Yancey
O'Dell, William H.
Cork, Holly
Glover, Maggie W.
Jackson, Darrell
Waldrep, Robert L., Jr.
Reese, Glenn G.
Hutto, C. Bradley
Ravenel, Arthur
McConnell, Glenn F.


Printed Page 1289 . . . . . Tuesday, April 13, 1999

Grooms, Larry R.

Courtney, C. Tyrone

Bauer, André

BANKING AND INSURANCE
Saleeby, Edward E., Chairman
Leatherman, Hugh K.
McConnell, Glenn F.
Setzler, Nikki
Courson, John E.
Matthews, John W., Jr.
Courtney, C. Tyrone
Thomas, David L.
Patterson, Kay
Passailaigue, Ernest L., Jr.
Reese, Glenn G.
Hayes, Robert W., Jr.
Russell, John R.
Jackson, Darrell
Martin, Larry A.
Rankin, Luke
Washington, McKinley
Ford, Robert

CORRECTIONS AND PENOLOGY
Thomas, David L., Chairman
Bryan, James E., Jr.
Giese, Warren K.
Wilson, Joe
Patterson, Kay
Ford, Robert
Glover, Maggie W.
Gregory, Greg
Ryberg, Greg
Hayes, Robert W., Jr.
Fair, Michael L.
Anderson, Ralph
Waldrep, Robert L.
Martin, Larry A.
Mescher, William
Holland, Donald H.


Printed Page 1290 . . . . . Tuesday, April 13, 1999

Grooms, Larry R.

Washington, McKinley, Jr.

EDUCATION
Setzler, Nikki, Chairman
Saleeby, Edward E.
Bryan, James E., Jr.
Giese, Warren K.
Matthews, John W., Jr.
Wilson, Joe
Courson, John E.
Russell, John R.
Washington, McKinley, Jr.
Hayes, Robert W., Jr.
Cork, Holly
Glover, Maggie W.
Mescher, William C.
Rankin, Luke A.
Short, Linda H.
Waldrep, Robert L., Jr.
Anderson, Ralph
Peeler, Harvey S., Jr.

ETHICS
Leatherman, Hugh K., Sr., Chairman
Saleeby, Edward E.
Land, John C., III
Holland, Donald H.
McConnell, Glenn F.
Peeler, Harvey S., Jr.
Courson, John E.
Giese, Warren K.
Smith, J. Verne
Leventis, Phil P.

FINANCE
Drummond, John, Chairman
Smith, J. Verne
Land, John C., III
Setzler, Nikki
Leatherman, Hugh K.


Printed Page 1291 . . . . . Tuesday, April 13, 1999

Leventis, Phil
Peeler, Harvey S., Jr.
Giese, Warren K.
Thomas, David L.
Patterson, Kay
McGill, J. Yancey
Courson, John E.
Matthews, John W., Jr.
O'Dell, William H.
Passailaigue, Ernest L., Jr.
Washington, McKinley, Jr.
Reese, Glenn G.
Hayes, Robert W., Jr.

FISH, GAME AND FORESTRY
Peeler, Harvey S., Jr., Chairman
Drummond, John
Holland, Donald H.
Land, John C., III
McGill, J. Yancey
Passailaigue, Ernest L., Jr.
Elliott, Dick
Gregory, Greg
Waldrep, Robert L., Jr.
Moore, Thomas L.
Giese, Warren K.
Leatherman, Hugh
Hutto, C. Bradley
Ravenel, Arthur
Branton, William S., Jr.
Grooms, Larry R.
Leventis, Phil
Bauer, André

GENERAL COMMITTEE
Wilson, Joe, Chairman
Holland, Donald H.
Moore, Thomas L.
Thomas, David L.
O'Dell, William H.
Washington, McKinley


Printed Page 1292 . . . . . Tuesday, April 13, 1999

Courtney, C. Tyrone
Russell, John R.
Martin, Larry A.
Mescher, William
Short, Linda H.
Alexander, Thomas C.
Fair, Michael L.
Gregory, Greg
Ravenel, Arthur
Courson, John E.
Cork, Holly
Bauer, André

INTERSTATE COOPERATION
Drummond, John, Chairman
Smith, J. Verne
Setzler, Nikki G.
Leatherman, Hugh K.
Reese, Glenn G.

INVITATIONS
Courson, John E., Chairman
Wilson, Joe
Matthews, John W., Jr.
Patterson, Kay
Russell, John R.
O'Dell, William H.
Passailaigue, Ernest L., Jr.
McGill, J. Yancey
Washington, McKinley
Reese, Glenn G.

JUDICIARY
Holland, Donald H., Chairman
Saleeby, Edward E.
McConnell, Glenn F.
Bryan, James E., Jr.
Wilson, Joe
Moore, Thomas L.
Russell, John R.
Courtney, C. Tyrone


Printed Page 1293 . . . . . Tuesday, April 13, 1999

Cork, Holly
Ford, Robert
Glover, Maggie W.
Gregory, Greg
Jackson, Darrell
Martin, Larry A.
Mescher, William
Rankin, Luke
Elliott, Dick
Ryberg, Greg

LABOR, COMMERCE AND INDUSTRY
Smith, J. Verne, Chairman
Drummond, John
Saleeby, Edward E.
Setzler, Nikki
Leventis, Phil
McConnell, Glenn F.
Moore, Thomas L.
O'Dell, William H.
Passailaigue, Ernest L., Jr.
Reese, Glenn G.
Courtney, C. Tyrone
Elliott, Dick
Ford, Robert
Mescher, William
Ryberg, Greg
Alexander, Thomas C.
Leatherman, Hugh
Branton, William S., Jr.

MEDICAL AFFAIRS
Moore, Thomas L., Chairman
Smith, J. Verne
Peeler, Harvey S., Jr.
Bryan, James E., Jr.
Courson, John E.
Giese, Warren K.
Thomas, David L.
Hayes, Robert W., Jr.
Cork, Holly


Printed Page 1294 . . . . . Tuesday, April 13, 1999

Jackson, Darrell
Short, Linda H.
Alexander, Thomas C.
Fair, Michael L.
Hutto, C. Bradley
Anderson, Ralph
Branton, William S., Jr.
Grooms, Larry R.
Bauer, André

RULES
McConnell, Glenn F., Chairman
Smith, J. Verne
Drummond, John
Bryan, James E., Jr.
Reese, Glenn G.
Holland, Donald H.
Martin, Larry A.
Rankin, Luke
Matthews, John W., Jr.
Russell, John R.
McGill, J. Yancey
Patterson, Kay
Ford, Robert
Glover, Maggie
Land, John C., III
Jackson, Darrell
Elliott, Dick
Gregory, Greg

TRANSPORTATION
Land, John C., III, Chairman
Leatherman, Hugh K.
Leventis, Phil
Wilson, Joe
Patterson, Kay
McGill, J. Yancey
O'Dell, William H.
Elliott, Dick
Rankin, Luke
Ryberg, Greg


Printed Page 1295 . . . . . Tuesday, April 13, 1999

Short, Linda H.
Alexander, Thomas C.
Fair, Michael L.
Hutto, C. Bradley
Ravenel, Arthur
Anderson, Ralph
Passailaigue, Ernie
Branton, William S., Jr.

ACTING PRESIDENT PRESIDES

At 1:03 P.M., Senator MARTIN assumed the Chair.

Expression of Personal Interest

Senator RAVENEL rose for an Expression of Personal Interest.

PRESIDENT PRESIDES

At 1:07 P.M., the PRESIDENT assumed the Chair.

Expression of Personal Interest

Senator McCONNELL rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator COURSON rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator FORD rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator DRUMMOND rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator PASSAILAIGUE rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator WASHINGTON rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator GIESE rose for an Expression of Personal Interest.


Printed Page 1296 . . . . . Tuesday, April 13, 1999

Expression of Personal Interest

Senator PATTERSON rose for an Expression of Personal Interest.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

OBJECTION

Senator MOORE objected to consideration of the uncontested Bills on the Statewide Calendar.

THE SENATE PROCEEDED TO THE MOTION PERIOD.

MADE SPECIAL ORDER

H. 3276 (Word version) -- Reps. Wilkins, Cato, Bailey, Barrett, Battle, G. Brown, H. Brown, Carnell, Cobb-Hunter, Easterday, Gamble, Harrell, Harrison, Jennings, Keegan, Kelley, Kirsh, Klauber, Mason, McGee, McKay, Quinn, Sandifer, Sharpe, D. Smith, R. Smith, Tripp, Young-Brickell, Leach, Whatley, Meacham, Law, Seithel, Woodrum, Trotter, Fleming, Chellis, Walker, Loftis, Altman, Riser, Stille, Rodgers, Rice, Bauer, Beck, Edge, Dantzler, Maddox, Cooper, Lanford, Martin, Hamilton, Campsen, Phillips, Lee, Gilham, Robinson and Simrill: A BILL TO AMEND CHAPTER 9 OF TITLE 58, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TELEPHONE, TELEGRAPH, AND EXPRESS COMPANIES, BY ADDING ARTICLE 20 SO AS TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH AMOUNTS MAY BE CHARGED BY MUNICIPALITIES TO TELECOMMUNICATIONS COMPANIES FOR THE USE OF THE PUBLIC RIGHTS-OF-WAY AND FOR BUSINESS LICENSE TAXES IN ORDER TO ENSURE THAT SUCH CHARGES ARE IMPOSED ON A COMPETITIVELY NEUTRAL AND NONDISCRIMINATORY BASIS, TO LIMIT OR RESTRICT THE IMPOSITION OF CERTAIN OTHER FEES AND TAXES ON TELECOMMUNICATIONS COMPANIES BY MUNICIPALITIES; AND TO PROVIDE FOR RELATED PROCEDURAL AND OTHER MATTERS.

On behalf of the Chairmen's Committee, Senator MOORE moved that the Bill be made a Special Order.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 7


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AYES

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Cork
Courson                   Courtney                  Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Hayes                     Holland                   Jackson
Land                      Leatherman                Martin
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Passailaigue
Patterson                 Peeler                    Rankin
Reese                     Ryberg                    Saleeby
Setzler                   Short                     Smith, J. Verne
Thomas                    Washington                Wilson

Total--39

NAYS

Grooms                    Hutto                     Leventis
Matthews                  Ravenel                   Russell
Waldrep

Total--7

The Bill was made a Special Order.

MOTION FOR SPECIAL ORDER FAILED

S. 661 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND TITLE 37 OF THE SOUTH CAROLINA CODE OF LAWS, 1976, RELATING TO THE CONSUMER PROTECTION CODE, BY ADDING CHAPTER 17, "SOUTH CAROLINA TITLE LENDERS ACT", WHICH ESTABLISHES A LICENSURE AND REGULATION FRAMEWORK FOR TITLE LENDERS.

In Senator SALEEBY's absence, Senator MOORE moved that the Bill be made a Special Order.

Senator McCONNELL spoke on the Bill.

By a division vote of 14-9, the motion did not receive the necessary vote and the motion to make the Bill a Special Order failed.


Printed Page 1298 . . . . . Tuesday, April 13, 1999

RECALLED, READ THE SECOND TIME

S. 706 (Word version) -- Senators Holland and Leventis: A BILL TO AMEND ACT 355 OF 1994, RELATING TO THE LOCAL GOVERNMENT COMPREHENSIVE PLANNING ENABLING ACT OF 1994 AND THE EFFECTIVE DATE OF THE REPEAL OF VARIOUS STATE AND LOCAL PROVISIONS OF LAW PERTAINING TO PLANNING AND ZONING BY LOCAL GOVERNMENTAL ENTITIES, SO AS TO EXTEND FROM MAY 3, 1999, UNTIL DECEMBER 31, 1999, THE EFFECTIVE DATE OF THE REPEAL OF THESE STATE AND LOCAL PROVISIONS OF LAW AND THE DATE BY WHICH ALL LOCAL PLANNING PROGRAMS MUST BE IN CONFORMITY WITH THE LOCAL GOVERNMENT COMPREHENSIVE PLANNING ENABLING ACT OF 1994.

Senator HOLLAND asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.

There was no objection.

Senator HOLLAND asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

Senator HOLLAND asked unanimous consent to give the Bill a second reading.

There was no objection.

The Bill was read the second time and ordered placed on the third reading Calendar.

POINT OF ORDER

Senator FAIR raised a Point of Order that the Motion Period was not the proper Order of Business at the present time.

The PRESIDENT overruled the Point of Order and stated that Senator MOORE had objected to a Call of the Uncontested Calendar and the Senate was properly in the Motion Period.

OBJECTION

Senator FAIR moved that the Senate proceed to a Call of the Uncontested Calendar.

Senator MOORE objected.


Printed Page 1299 . . . . . Tuesday, April 13, 1999

MOTION ADOPTED

On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.

THE SENATE PROCEEDED TO THE ADJOURNED DEBATES.

CARRIED OVER

S. 11 (Word version) -- Senators Drummond, Elliott, Leventis, Rankin, Reese and Short: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO ASSESSMENT RATIOS AND CLASSES OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO CREATE A NEW CLASS OF PERSONAL PROPERTY REQUIRED TO BE TITLED BY A STATE OR FEDERAL AGENCY, NOT INCLUDING UNITS OF MANUFACTURED HOUSING, ASSESSED AT TEN AND ONE-HALF PERCENT OF FAIR MARKET VALUE OR SOME PERCENTAGE LESS THAN TEN AND ONE-HALF PERCENT BUT NOT LESS THAN SIX PERCENT SET BY THE GOVERNING BODY OF THE COUNTY IN CONSULTATION WITH ALL PROPERTY TAXING ENTITIES IN THE COUNTY; AND PROPOSING AN AMENDMENT TO SECTION 4, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO REASSESSMENT OF REAL PROPERTY, SO AS TO ALLOW A COUNTY GOVERNING BODY TO LIMIT THE INCREASE IN REAL PROPERTY VALUE TO FIFTEEN PERCENT AS A RESULT OF A COUNTYWIDE REASSESSMENT AND EQUALIZATION AND TO PROVIDE CERTAIN EXCEPTIONS TO THIS LIMITATION.

The Senate proceeded to a consideration of the Joint Resolution. The question being the third reading of the Joint Resolution.

Under the provisions of Rule 14, Senator MOORE moved to carry over the Joint Resolution, with Senator PASSAILAIGUE retaining the floor.

The Joint Resolution was carried over, with Senator PASSAILAIGUE retaining the floor.


Printed Page 1300 . . . . . Tuesday, April 13, 1999

CARRIED OVER

S. 3 (Word version) -- Senators Rankin, Elliott, Moore, Drummond, Holland, Saleeby, J. Verne Smith, Land, Setzler, Leventis, Bryan, Matthews, Patterson, McGill, O'Dell, Passailaigue, Washington, Reese, Ford, Glover, Jackson, Lander, Short, Hutto, Anderson, Elliott, Ryberg, Giese, Wilson, Fair, Hayes, Leatherman and Russell: A BILL TO AMEND CHAPTER 19, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRIMES AND OFFENSES, BY ADDING SECTION 16-19-180 SO AS TO PROHIBIT THE OPERATION OF CASINO GAMBLING ON BOATS, SHIPS, OR OTHER WATERCRAFT WHICH EMBARK, SAIL, AND DISEMBARK WITHIN SOUTH CAROLINA'S BORDERS.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment (JUD0003.005) proposed by Senators RYBERG and BRYAN and previously printed in the Journal of Thursday, March 25, 1999.

Under the provisions of Rule 14, Senator MOORE moved to carry over the Bill, with Senator McCONNELL retaining the floor.

The Bill was carried over, with Senator McCONNELL retaining the floor.

THE SENATE PROCEEDED TO THE SPECIAL ORDER.

AMENDMENT PROPOSED, DEBATE INTERRUPTED

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING 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.


Printed Page 1301 . . . . . Tuesday, April 13, 1999

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Judiciary.

Motion Adopted

Senator LAND asked unanimous consent to make a motion that staff be granted leave to be admitted to the floor of the Senate Chamber while H. 3002 was under debate.

There was no objection and the motion was adopted.

Senator LAND spoke on the Bill.

ACTING PRESIDENT PRESIDES

At 2:28 P.M., Senator MARTIN assumed the Chair.

Senator LAND continued speaking on the Bill.

On motion of Senator LAND, with unanimous consent, Amendment No. P-1 was taken up for immediate consideration.

Amendment No. P-1

Senators PASSAILAIGUE, LAND and McCONNELL proposed the following Amendment No. P-1 (3002R008.ELP):

Amend the committee report, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:

/   Part I

SECTION 1.   (A)   A statewide referendum must be conducted at the time of the general election in 2000 to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission must place the exact question contained in subsection (B) of this section on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.

(B)   The question put before the qualified electors in the referendum shall read:

"Shall cash payoffs for credits earned on video game machines continue to be allowed after December 31, 2000?


Printed Page 1302 . . . . . Tuesday, April 13, 1999

  Yes [ ]

No [ ]

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check for cross mark in the square after the word 'No'."

  Part II

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


Printed Page 1303 . . . . . Tuesday, April 13, 1999

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, 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."

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


Printed Page 1304 . . . . . Tuesday, April 13, 1999

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


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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.

  Part III

SECTION   10.   Title 12 of the 1976 Code is amended by adding:

  "CHAPTER 22

Article 1

General

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.


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(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.


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(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;


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(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


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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.

  Article 3

Licenses

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


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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


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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


Printed Page 1312 . . . . . Tuesday, April 13, 1999

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


Printed Page 1313 . . . . . Tuesday, April 13, 1999

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).

  Article 5

Background Investigations

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.


Printed Page 1314 . . . . . Tuesday, April 13, 1999

(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:


Printed Page 1315 . . . . . Tuesday, April 13, 1999

(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


Printed Page 1316 . . . . . Tuesday, April 13, 1999

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.

  Article 7

Video Game Restrictions

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.


Printed Page 1317 . . . . . Tuesday, April 13, 1999

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


Printed Page 1318 . . . . . Tuesday, April 13, 1999

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 specifications and 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


Printed Page 1319 . . . . . Tuesday, April 13, 1999

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


Printed Page 1320 . . . . . Tuesday, April 13, 1999

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 Section 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


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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


Printed Page 1322 . . . . . Tuesday, April 13, 1999

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.


Printed Page 1323 . . . . . Tuesday, April 13, 1999

(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.


Printed Page 1324 . . . . . Tuesday, April 13, 1999

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 by 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;


Printed Page 1325 . . . . . Tuesday, April 13, 1999

(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.


Printed Page 1326 . . . . . Tuesday, April 13, 1999

(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


Printed Page 1327 . . . . . Tuesday, April 13, 1999

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.

  Article 9

Illegal Devices and Acts

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


Printed Page 1328 . . . . . Tuesday, April 13, 1999

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.


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(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


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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.

  Article 11

Taxation

Section 12-22-1100.     (A)   In addition to the license fees paid pursuant to Section 12-22-320(A)(3), there is imposed a tax of twenty percent (20%) of the gross profits upon the owner of each machine licensed under Section 12-22-320(A)(3). The gross profits tax imposed under this subsection must be collected until the gross machine income tax provided for in subsection (B) is implemented by the department.

(B)   Upon implementation of the central monitoring system provided under Section 12-22-725, the department shall provide for all machines licensed under Section 12-22-320(A)(3) to register only ninety percent (90%) of the value of the coin or currency deposited by the player. The


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remaining ten percent (10%) of the value of the coin or currency deposited by the player shall be collected as a gross machine income tax, which is imposed in addition to the license fee paid pursuant to Section 12-22-320(A)(3).

(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


Printed Page 1332 . . . . . Tuesday, April 13, 1999

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;


Printed Page 1333 . . . . . Tuesday, April 13, 1999

(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;


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(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.

(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.


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(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.

  Article 13

Miscellaneous

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


Printed Page 1336 . . . . . Tuesday, April 13, 1999

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.

  Part IV

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."


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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)."


Printed Page 1338 . . . . . Tuesday, April 13, 1999

SECTION   17.   Subitem (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


Printed Page 1339 . . . . . Tuesday, April 13, 1999

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.

Amend title to conform.

Senator LAND argued in favor of the adoption of the amendment.

Motion Adopted

With Senator LAND retaining the floor, Senator MOORE asked unanimous consent for Senators SALEEBY, ELLIOTT, CORK, JACKSON and MOORE to attend a subcommittee meeting, be counted in any quorum calls, and be given an opportunity to vote on any roll calls.

There was no objection and the motion was adopted.

Senator LAND argued in favor of the adoption of the amendment.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment.

Motion Adopted

With Senator PASSAILAIGUE retaining the floor, Senator McCONNELL asked unanimous consent for Senators BRYAN, GLOVER and McCONNELL to attend a subcommittee meeting, be counted in any quorum calls, and be given an opportunity to vote from the balcony.


Printed Page 1340 . . . . . Tuesday, April 13, 1999

There was no objection and the motion was adopted.

Senator PASSAILAIGUE continued arguing in favor of the adoption of the amendment.

PRESIDENT PRESIDES

At 4:07 P.M., the PRESIDENT assumed the Chair.

Senator PASSAILAIGUE continued arguing in favor of the adoption of the amendment.

RECALLED

S. 659 (Word version) -- Senators McGill, Elliott, Land, Leatherman, Glover, Saleeby and Rankin: A BILL TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 47 SO AS TO ENACT THE "TOBACCO ESCROW FUND ACT" PROVIDING FOR THE ESTABLISHMENT OF A RESERVE FUND TO GUARANTEE AN EVENTUAL SOURCE OF RECOVERY FROM TOBACCO PRODUCT MANUFACTURERS WHO ARE NOT A PARTY TO THE MASTER SETTLEMENT AGREEMENT BETWEEN THIS STATE AND OTHER TOBACCO PRODUCT MANUFACTURERS, TO REQUIRE NONPARTICIPATING TOBACCO PRODUCT MANUFACTURERS TO PLACE FUNDS INTO AN ESCROW ACCOUNT, BASED ON THE NUMBER OF TOBACCO PRODUCT UNITS SOLD, FOR WITHDRAWAL TO PAY A FUTURE JUDGMENT OR SETTLEMENT, TO PROVIDE FOR ANNUAL CERTIFICATION OF COMPLIANCE, AND TO ESTABLISH ENFORCEMENT PROCEDURES AND CIVIL PENALTIES, INCLUDING PAYMENT OF ATTORNEY'S FEES AND COSTS, FINES, AND AN INJUNCTION OF CIGARETTE SALES IN THE STATE.

Senator McGILL asked unanimous consent to recall the Bill from the Committee on Finance.

There was no objection.

Objection

Senator McGILL asked unanimous consent to give the Bill a second reading.

Senator RYBERG objected.


Printed Page 1341 . . . . . Tuesday, April 13, 1999

Senator PASSAILAIGUE continued arguing in favor of the adoption of Amendment No. P-1 to H. 3002.

Senator LAND spoke on the amendment.

Senator RYBERG argued contra to the amendment.

ACTING PRESIDENT PRESIDES

At 5:02 P.M., Senator MARTIN assumed the Chair.

Senator RYBERG continued arguing contra to the amendment.

Point of Quorum

Senator HAYES made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator RYBERG argued contra to the amendment.

ACTING PRESIDENT PRESIDES

At 7:45 P.M., Senator HUTTO assumed the Chair.

Senator RYBERG continued arguing contra to the amendment.

ACTING PRESIDENT PRESIDES

At 9:45 P.M., Senator MOORE assumed the Chair.

Senator RYBERG continued arguing contra to the amendment.

Senator LEVENTIS spoke on the Bill.

Senator HAYES argued contra to the amendment.

ACTING PRESIDENT PRESIDES

At 11:05 P.M., Senator MCGILL assumed the Chair.

Senator HAYES argued contra to the amendment.

  RECESS

At 12:03 A.M., with Senator HAYES retaining the floor, on motion of Senator MOORE, with unanimous consent, the Senate receded from business not to exceed five minutes.

At 12:07 A.M., the Senate resumed.


Printed Page 1342 . . . . . Tuesday, April 13, 1999

On motion of Senator MOORE, with unanimous consent, debate was interrupted by adjournment, Senator HAYES retaining the floor.

MOTION ADOPTED

On motion of Senators WILSON, SETZLER, RYBERG, BAUER, HUTTO and MATTHEWS, with unanimous consent, the Senate stood adjourned out of respect to the memory of Col. Clarence Edgar Stuart (Ret'd.) of Pelion, S.C., beloved husband of Representative Elsie Rast Stuart.

ADJOURNMENT

At 12:08 A.M., on motion of Senator MOORE, the Senate adjourned to meet tomorrow at 9:30 A.M.

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