S*0207(Rat #0119, Act #0053 of 1997)  General Bill, By Hayes, Drummond, Fair, 
Gregory, Holland, Lander, Martin, Moore, Russell, Ryberg, Short, J.V. Smith, 
Thomas and Wilson

Similar(H 3288)
 A BILL TO AMEND SECTION 16-19-60, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE NONAPPLICATION OF THE GAMBLING OFFENSES TO COIN-OPERATED
 NONPAYOUT MACHINES WITH A FREE PLAY FEATURE, SO AS TO CLARIFY THAT THIS
 PROVISION DOES NOT PROHIBIT REGULATION OF THESE MACHINES, INCLUDING THEIR
 PROHIBITION, PURSUANT TO THE VIDEO GAMES MACHINES ACT AND ITS COUNTY OPTION
 PROVISIONS; TO AMEND SECTION 12-21-2738, AS AMENDED, RELATING TO PENALTIES FOR
 LICENSING VIOLATIONS OF COIN-OPERATED DEVICES, SO AS TO DELETE THE NO
 SUSPENSION REQUIREMENT FOR PENALTIES IMPOSED ON LICENSE VIOLATIONS FOR DEVICES
 WITH A FREE PLAY FEATURE; TO AMEND SECTION 12-21-2791, RELATING TO LIMITATIONS
 ON PAYOUTS ON MACHINES AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT, SO AS TO
 DELETE REFERENCES TO GAMBLING PROVISIONS; TO AMEND SECTION 12-21-2804,
 RELATING TO REGULATION OF VIDEO MACHINES, SO AS TO PROVIDE CIVIL PENALTIES FOR
 MACHINES LOCATED IN COUNTIES WHERE PAYOUTS ARE PROHIBITED, INCLUDING MONETARY
 PENALTIES, LICENSE REVOCATION, AND SEIZURE OF MACHINES, PROVIDE FOR THESE
 PENALTIES TO APPLY IMMEDIATELY AND PROVIDE THE SOLE REMEDY FOR THESE
 PENALTIES; TO AMEND SECTION 12-21-2808, RELATING TO REFERENDUMS ALLOWED IN
 COUNTIES ON CONTINUING OR PROHIBITING CASH PAYOUTS, SO AS TO DELETE RE

   01/21/97  Senate Introduced and read first time SJ-11
   01/21/97  Senate Referred to Committee on Finance SJ-11
   02/20/97  Senate Committee report: Favorable Finance SJ-15
   03/11/97  Senate Amended SJ-20
   03/11/97  Senate Read second time SJ-20
   03/11/97  Senate Ordered to third reading with notice of
                     amendments SJ-20
   03/26/97  Senate Read third time and sent to House SJ-27
   04/01/97  House  Introduced and read first time HJ-20
   04/01/97  House  Referred to Committee on Ways and Means HJ-21
   04/24/97  House  Committee report: Favorable with amendment Ways
                     and Means HJ-7
   04/29/97  House  Debate adjourned until Wednesday, April 30, 1997 HJ-83
   04/30/97  House  Debate adjourned until Thursday, May 1, 1997 HJ-35
   05/01/97  House  Debate adjourned until Tuesday, May 6, 1997 HJ-25
   05/06/97  House  Debate interrupted HJ-29
   05/07/97  House  Requests for debate-Rep(s). Kelley, Keegan,
                     Easterday, Witherspoon, Hawkins, R. Smith,
                     McMahand, Hamilton, Leach, Sheheen, Campsen,
                     Loftis, Battle, Seithel, Clyburn, Bailey,
                     Knotts, Law, Carnell, Woodrum & Miller HJ-42
   05/14/97  House  Amended HJ-89
   05/14/97  House  Read second time HJ-101
   05/14/97  House  Roll call Yeas-98  Nays-1 HJ-101
   05/15/97  House  Debate adjourned until Wednesday, May 21, 1997 HJ-83
   05/21/97  House  Read third time and returned to Senate with
                     amendments HJ-39
   05/22/97  Senate House amendment amended SJ-19
   05/22/97  Senate Returned to House with amendments SJ-19
   05/29/97  House  Concurred in Senate amendment and enrolled HJ-35
   06/04/97         Ratified R 119
   06/06/97         Signed By Governor
   06/06/97         Effective date 11/01/97
   06/13/97         Copies available
   06/13/97         Act No. 53

AN ACT TO AMEND SECTION 16-19-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NONAPPLICATION OF THE GAMBLING OFFENSES TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE, SO AS TO CLARIFY THAT THIS PROVISION DOES NOT PROHIBIT REGULATION OF THESE MACHINES, INCLUDING THEIR PROHIBITION, PURSUANT TO THE VIDEO GAMES MACHINES ACT AND ITS COUNTY OPTION PROVISIONS; TO AMEND SECTION 12-21-2738, AS AMENDED, RELATING TO PENALTIES FOR LICENSING VIOLATIONS OF COIN-OPERATED DEVICES, SO AS TO DELETE THE NO SUSPENSION REQUIREMENT FOR PENALTIES IMPOSED ON LICENSE VIOLATIONS FOR DEVICES WITH A FREE PLAY FEATURE; TO AMEND SECTION 12-21-2791, RELATING TO LIMITATIONS ON PAYOUTS ON MACHINES AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS; TO AMEND SECTION 12-21-2804, RELATING TO REGULATION OF VIDEO MACHINES, SO AS TO PROVIDE CIVIL PENALTIES FOR MACHINES LOCATED IN COUNTIES WHERE PAYOUTS ARE PROHIBITED, INCLUDING MONETARY PENALTIES, LICENSE REVOCATION, AND SEIZURE OF MACHINES, PROVIDE FOR THESE PENALTIES TO APPLY IMMEDIATELY AND PROVIDE THE SOLE REMEDY FOR THESE PENALTIES; TO AMEND SECTION 12-21-2808, RELATING TO REFERENDUMS ALLOWED IN COUNTIES ON CONTINUING OR PROHIBITING CASH PAYOUTS, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS, DELETE OBSOLETE PROVISIONS, AND MAKE OTHER TECHNICAL REVISIONS; TO AMEND SECTION 12-21-2809, RELATING TO THE PROHIBITIONS ON LICENSING AND LOCATING MACHINES IN NONPAYOUT COUNTIES, SO AS TO DELETE CRIMINAL PENALTIES FOR VIOLATIONS AND SUBJECT VIOLATORS TO THE CIVIL PENALTIES PROVIDED BY THIS ACT AND TO PROVIDE THAT THE PENALTY EXTENDS TO OWNING OR POSSESSING THESE MACHINES; TO PROVIDE THAT COUNTIES IN WHICH A MAJORITY "NO" VOTE WAS CERTIFIED IN THE REFERENDUM PROVIDED PURSUANT TO SECTION 12-21-2806 ARE DEEMED TO HAVE MADE THAT CHOICE PURSUANT TO SECTION 12-21-2808, AS AMENDED BY THIS ACT, WITH AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO ISSUE PRORATED REFUNDS FOR MACHINES LICENSED IN SUCH COUNTIES; AND TO REPEAL SECTION 12-21-2806, RELATING TO THE INITIAL REFERENDUM ON CONTINUING CASH PAYOUTS.

Be it enacted by the General Assembly of the State of South Carolina:

Regulation

SECTION 1. 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."

Payouts

SECTION 2. Section 12-21-2791 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2791. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts shall limit the cash payout for credits earned for free games to two thousand five hundred credits a player a location during any twenty-four hour period. The cash value of credits for each free game is limited to five cents."

Penalties

SECTION 3. Section 12-21-2804 of the 1976 Code, as added by Act 164 of 1993, is amended by adding at the end:

"(G)(1) In addition to any other penalties provided by law, the department, for a violation of Section 12-21-2808(E) or Section 12-21-2809, may:

(a) impose a civil penalty in an amount not to exceed five thousand dollars on the owner of the machine, or the person who obtained, or was required to obtain, the retail sales tax license for the place or premises pursuant to Section 12-21-2703, or both; and

(b) revoke the license of the machine giving rise to the violation and any other machine licensed to the same holder in any county where such machines are prohibited pursuant to Section 12-21-2809; and

(c) seize the offending machine and dispose of it as contraband.

(2) The penalties authorized by this subsection are effective immediately upon imposition and may not be stayed by any administrative or judicial action. The sole remedy available under this subsection is a hearing before the Administrative Law Judge Division on the question of the legality of the machine under Section 12-21-2809 and the reasonableness of the penalties imposed. Further appeals are as provided in Section 12-60-3380."

Referendum

SECTION 4. Section 12-21-2808 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2808. (A) Counties may hold a referendum to determine whether or not cash payoffs are allowed for the operation of machines as defined in this article. The counties are authorized to hold this referendum in the manner provided in this section except that no such referendum may be held except at the time of the general election.

(B) The referendum must be held:

(1) upon the passage of an ordinance of the governing body of a county providing for a referendum if the ordinance is passed at least ninety days before a general election; or

(2) upon a petition so requesting filed with the county election commission more than ninety days before the general election containing the signatures of at least ten percent, but not more than two thousand five hundred, of the qualified electors of the county as of the time of the preceding general election.

(C) In a county in which cash payoffs are permitted, at the time of the referendum provided for in this section, the question put before the voters shall read as follows:

'Shall cash payoffs for credits earned on coin-operated video game machines continue to be allowed in this county?'

(D) In a county in which, at the time of the referendum provided for in this section, cash payoffs are not authorized, the question put before the voters shall read as follows:

'Shall cash payoffs for credits earned on coin-operated video game machines be allowed in this county?'

(E) If the result of the referendum provided for in this section is not in favor of a continuation of cash payoffs for credits earned on coin-operated devices within the county, cash payouts are prohibited within the county after June thirtieth of the year following the referendum.

(F) If the results of the referendum provided for in this section are to authorize cash payoffs, such payoffs are permitted, subject to the regulations of this article, within such county beginning January first of the year following the referendum.

(G) The state election laws apply to the referendum provided in this section, mutatis mutandis.

(H) If a majority of the qualified electors within a county vote to terminate cash payoffs for credits earned on coin-operated devices, in a referendum as authorized in this section, the department shall refund to any person holding a license for the operation of coin-operated devices on a pro rata basis, the portion of any license fees previously paid the department for licenses which extend beyond July first of the year after the referendum."

Prohibition

SECTION 5. Section 12-21-2809 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2809. (A) In a county in which a majority of the qualified electors vote or have voted to terminate cash payoffs for credits earned on coin-operated devices in a referendum authorized by Section 12-21-2808, the department shall not issue any license for coin-operated devices as defined in Section 12-21-2720(A)(3) and a person may not own or possess these machines in the county other than for purposes of storage, maintenance, or transportation.

(B) A person who owns or possesses any coin-operated device in violation of subsection (A) of this section is subject to the penalties provided in Section 12-21-2804(G)."

Referendum; refunds

SECTION 6. A majority "no" vote certified in a county pursuant to the former provisions of Section 12-21-2806 of the 1976 Code is deemed nunc pro tunc a certification of a majority "no" vote pursuant to Section 12-21-2808(C) of the 1976 Code as amended by this act. In these counties, the Department of Revenue may issue a prorated refund of the license fee imposed pursuant to Section 12-21-2720(A)(3) for a machine located in the county on the effective date of this act.

Repeal

SECTION 7. Section 12-21-2806 of the 1976 Code is repealed.

Penalties

SECTION 8. A. Section 12-21-2738 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 12-21-2738. A person who fails, neglects, or refuses to comply with the terms and provisions of this article or who fails to attach the required license to any machine, 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 commission.

If the violation under this section relates to a machine licensed pursuant to Section 12-21-2720(A)(3), the applicable penalty amount is two thousand five hundred dollars, and one-half of this penalty must be deposited to the credit of the general fund of the State and one-half must be retained by or forwarded to the law enforcement or administrative agency charging the violation."

B. Notwithstanding any other effective dates provided in this act, this section is effective upon approval by the Governor.

Time effective

SECTION 9. Upon approval by the Governor, this act takes effect November 1, 1997.

Approved the 6th day of June, 1997.