H 4365 Session 112 (1997-1998)
H 4365 General Bill, By Sheheen, Kirsh, Littlejohn, Miller and Stille
A BILL TO AMEND ARTICLE 24, CHAPTER 21 OF TITLE 12, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE BINGO TAX ACT OF 1996 WHICH REGULATES BINGO
GAMES, SO AS TO REVISE THE MANNER IN WHICH AND CONDITIONS UNDER WHICH THE GAME
OF BINGO IS CONDUCTED, LICENSED, AND REGULATED.
12/10/97 House Prefiled
12/10/97 House Referred to Committee on Ways and Means
01/13/98 House Introduced and read first time HJ-30
01/13/98 House Referred to Committee on Ways and Means HJ-30
A BILL
TO AMEND ARTICLE 24, CHAPTER 21 OF TITLE 12, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
BINGO TAX ACT OF 1996 WHICH REGULATES BINGO
GAMES, SO AS TO REVISE THE MANNER IN WHICH AND
CONDITIONS UNDER WHICH THE GAME OF BINGO IS
CONDUCTED, LICENSED, AND REGULATED.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 24, Chapter 21 of Title 12 of the 1976 Code
is amended to read:
"Article 24
Regulation of Bingo Games
Section 12-21-3910. This article may be cited as the Bingo Tax
Act of 1996.
Section 12-21-3920. As used in this article:
(1) 'Bingo' or 'game' means a specific game of chance, commonly
known as bingo, in which prizes are awarded on the basis of
designated numbers or symbols on a card conforming to numbers and
symbols selected at random.
(2) 'Department' means the South Carolina Department of
Revenue and Taxation.
(3) 'Card' means a printed or nonprinted design on which there are
arranged five horizontal rows and five vertical columns forming
twenty-five squares. Numbers are printed in twenty-four of the
squares, and the term 'free', 'free square', or 'free space' is printed in
the square or space located in the center of the card. The five
columns are denominated from left to right by the respective letters
of the word 'B-I-N-G-O'. Each square in the 'B' column contains a
number from one through fifteen inclusive; each square in the 'I'
column contains a number from sixteen through thirty inclusive;
except for the center space which is marked as free, each square in
the 'N' column contains a number from thirty-one through forty-five
inclusive; each square in the 'G' column contains a number from
forty-six through sixty inclusive; and each square in the 'O' column
contains a number from sixty-one through seventy-five inclusive. No
number may appear twice on the same card.
(4) 'Promoter' means an individual, corporation, partnership,
or organization who is hired by a nonprofit organization to manage,
operate, or conduct the licensee's bingo game. The person hired
under written contract is considered the promoter.
(5) 'Nonprofit Religious organization'
means an entity which is organized and operated exclusively for
charitable, religious, or fraternal purposes which is
exempt from federal income taxes pursuant to Internal Revenue Code
Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19).
(6)(5) 'Session' means a consecutive series of
games which must occur only between one o'clock p.m. and one
o'clock a.m. No more than one session may occur during the
permitted twelve-hour period. These limitations do not apply to
games operated by state or county fairs.
(7) 'Fair' means a recognized annual state or county
fair. The fair must be recognized by the governing body of the
county in which it is held, or in the case of the State, by the South
Carolina Agricultural and Mechanical Society.
(8)(6) 'Ball' means a ball, disk, square, or other
object upon which is printed a letter and number which corresponds
to the letter and number of a square on a bingo card.
(9)(7) 'Cage' means a device, whether operated
manually or by air blower, in which bingo balls are placed before the
bingo game begins.
(10)(8) 'Caller' means the house representative
who is responsible for drawing bingo balls and announcing the
configuration and the result of each drawing to the players.
(11)(9) 'Drawing' means the indiscriminate
selection of a single ball from the cage.
(12)(10) 'House' means the nonprofit
religious organization and promoter licensed with the
department.
(13)(11) 'Marker' means a device which indicates
the number called.
(14)(12) 'Master-board' means the receptacle
used by the house to display balls which are drawn during the bingo
game.
(15)(13) 'Player' means one who participates in
a game of bingo other than as an agent, promoter, or representative
of the house.
(16)(14) 'Fund' means the Parks and Recreation
Development Fund.
(17)(15) 'Building' means a structure surrounded
by exterior walls or permanent firewalls.
(18)(16) 'Manufacturer' means a person who
manufactures bingo cards for use in this State and who is approved
by the department.
(19)(17) 'Distributor' means a person who brings
or sells bingo cards in this State and who is approved by the
department.
Section 12-21-3930. The game of bingo is not a lottery when:
(1) the nonprofit religious organization
conducting the game has completed the application as described in
Section 12-21-3940 and the application has been approved by the
department;
(2) the promoter under contract with the nonprofit
organization is licensed properly with the department;
(3) (2) the nonprofit religious
organization presents to the department upon application a certified
copy of the statement issued by the Internal Revenue Service
exempting it from federal income taxation;
(4) (3) the game is conducted in accordance
with the provisions of Sections 12-21-3990 and 12-21-4000 and
approved cards are used.
Section 12-21-3940. (A) Before conducting a game of bingo,
a nonprofit organization shall file with the department a written
application in a form prescribed by the department, executed and
notarized which must include:
(1) the name, address, and telephone number of
the applicant and sufficient facts relating to its incorporation and
organization to enable the department to determine whether it is an
authorized organization;
(2) a copy of the organization's corporate charter
and the Internal Revenue Service's statement exempting the applicant
from federal income taxes;
(3) the names, addresses, and telephone
numbers of the organization's officers;
(4) the place and time the applicant intends to
conduct bingo under the license for which it applied;
(5) the specific purpose to which the bingo net
proceeds are to be devoted;
(6) the designation of a "promoter"
as defined by this article;
(7) a copy of any contract or lease between a
promoter and the nonprofit organization;
(8) the name, address, telephone number, birth
date, and Social Security number of each person who will work at the
proposed bingo games and receive compensation for the work, the
nature of the work to be performed, and a statement as to whether or
not the person has been convicted within the last twenty years of a
state or federal felony, gambling offense, criminal fraud, or a crime
that has a sentence of two or more years;
(9) other information considered necessary by
the department.
(B) Upon application for a license, the department has
thirty days to approve or reject the application based on the
requirements of this article.
(C)(B) The nonprofit religious
organization does not need to apply for renewal of the license as long
as there are no changes in the operation or location of the game.
Changes in information supplied on the original application must be
forwarded to the department, in writing, within thirty days of the
change. In the case of a change in the place and time, notice must be
given thirty days before the change.
Section 12-21-3950. (A) A promoter under
contract with a licensed nonprofit organization to manage, operate,
or conduct a game shall file a written application for a promoter's
license in a form prescribed by the department, executed and
notarized, which must include:
(1) the name, address, telephone number, and
Social Security number of the promoter or of each officer if the
promoter is a corporation;
(2) a copy of the promoter's contract or lease
with the nonprofit organization. A contract must exist between the
sponsoring organization and the promoter detailing all expenses;
(3) the name, address, telephone numbers, and
Social Security number of any person working for the promoter at the
bingo game and receiving compensation for the work;
(4) a notarized statement as to whether or not
the applicant for a promoter's license or any of his employees have
been convicted within the last twenty years of a state or federal
felony, gambling offense, criminal fraud, or a crime that has a
sentence of two or more years.
(B) Upon application for a license, the department
has thirty days to approve or reject the application based on the
requirements of this article.
(C) A promoter shall file a renewal application
each year submitting any changes in information and documentation
previously submitted as required by this section. The promoter is
required to notify the department, in writing, of any changes in the
information supplied on the application within thirty days of the
change.
(D) The license authorized by this section is for the
privilege of engaging in business as a bingo promoter and must be
purchased from the department at a cost of one thousand dollars a
year.
A promoter shall obtain a promoter's license for each
organization for which he operates bingo games.
Section 12-21-3955. If a nonprofit organization
intending to operate a Class AA or B license does not contract with
an outside promoter, the organization shall designate a member as the
promoter.
Section 12-21-3960. The promoter and the nonprofit
organization are jointly and severally religious organization
is liable for all taxes, penalties, interest, and fines imposed by
this article and Chapter 54 of this title.
Section 12-21-3970. For each licensed nonprofit organization
the promoter manages, operates, or conducts bingo, the promoter
must purchase a promoter's license as provided in Section
12-21-3950 before operating or conducting bingo. No promoter is
permitted more than five licenses. This license must be prominently
displayed at the location where bingo is conducted. A
religious organization which obtains a license to operate a game of
bingo may not employ a promoter or agent to manage, operate, or
conduct the game.
Section 12-21-3980. (A) The promoter's license authorized by
this article must not be transferred to another person, organization,
entity, or corporation. The promoter's license, upon written
application to the department, may be transferred to a new location
for the remainder of the license period if the licensed nonprofit
organization has applied for a location transfer as provided in
subsection (B) of this section. The written application must be on a
form prescribed by the department and must state, under penalties of
perjury, that the information on the transfer application and the
original license application is true and correct, or, in the case of the
original application, is still valid and unchanged. No additional
license fee is required with respect to the transfer of the location and
the promoter may not conduct bingo at the new location until the new
license is issued.
(B) The nonprofit religious
organization's license authorized by this article must not be
transferred to another nonprofit religious
organization and is valid and continues in force so long as the
nonprofit religious organization to which it is issued
continues to conduct the bingo games at the location authorized by
the license.
The nonprofit religious organization's license,
upon written application to the department, may not be
transferred to a new location. The written application must be on
a form prescribed by the department and must state, under penalties
of perjury, that the information on the transfer application and the
original license application is true and correct or, in the case of the
original application, is still valid and unchanged. The
nonprofit religious organization cannot operate at the
new location until the a new license is issued.
(C)(B) No promoter or nonprofit
religious organization may lease, sell, rent, lend to, or
exchange with another person, organization, corporation, or other
entity a promoter's or bingo license issued pursuant to this
article.
Section 12-21-3990. (A) The game of bingo must be played in the
following manner:
(1) Bingo is played by more than one player and a caller who is
associated with the house. Each player must pay no more than face
value for each card to be played during the course of a game and may
purchase the card for a specified number of games. After the player
has purchased a card or cards for a specified number of games, the
house cannot require or accept an additional payment or
consideration by the player in order to complete the specified number
of games.
(2) Before each game begins, the caller shall announce to the
players the configuration or configurations that will win the game.
A configuration consists of a number of grids covered in the manner
announced by the caller. Any method of playing the games is
allowed if the method is announced before each game beginning
including, but not limited to, wild card games.
(3) The prize must be awarded to the winner of that game
without delay. For multiple winners, the prize must be divided
equally among the winners. In the case of a merchandise prize, the
cash value of the merchandise may be divided among the winners.
Purchase receipts of merchandise awarded as prizes must be made
available to players and the department for confirmation of value.
(4) The caller shall draw and announce numbers from the cage
one at a time. If a player has a card with the called number on it, he
may use a marker to cover the square which contains the number.
After the number is announced, it must be indicated on the
master-board by the caller.
(5) When a player covers sufficient squares on a card to achieve
the winning configuration, he may indicate to the caller. The caller
shall require that the player's card be checked against the
master-board in the presence of the other players to determine if the
squares were covered accurately. If it is determined by the caller that
the player accurately has covered the squares and achieved the
preannounced configuration, the player is declared the winner. If it
is determined that the player has not covered the squares accurately
and achieved the preannounced configuration, play continues in that
game.
(6) All devices, including the master-board, used to show what
numbers have been called during a game must not be changed or
turned off until the winners are verified.
Section 12-21-4000. In addition to the manner of play prescribed
in Section 12-21-3990, the following procedures apply to the conduct
of the game:
(1) Before the beginning of the first game, all seventy-five balls
must be displayed openly on the master-board for the inspection of
the players.
(2) Only one set of seventy-five balls and only one
master-board is allowed in the room or area during the play of the
game.
(3) Only one bet or payment is to be paid for each card.
(4) No bets or payments may be made while a game is in
progress, except the sale of cards for subsequent games.
(5) Reserved.
(6) The house is required to identify the games for which a card
may be used before the card is purchased.
(7) Before the start of play, the caller shall announce to all
players the winning configuration of covered squares for that
particular game.
(8) The prize must be awarded to the first person who
successfully achieves the winning configuration of covered squares.
(9) Balls must be selected randomly by an indiscriminate
process.
(10) Only one number may be called at a time.
(11) All balls drawn remain on the master-board until the
conclusion of the game.
(12)(a) At least fifty ninety percent of
the gross proceeds of the sale of bingo cards taken in by the house
during a single session must be returned to the players in the form of
prizes. However, with respect to fair licenses, this requirement must
be met during the course of the fair.
(b) A bingo operation may take in only two times
more in gross proceeds than the prize for that session. Amounts in
excess of this limit are subject to a tax, in addition to any other bingo
license taxes and fees equal to the amount of the excess. These
excess proceeds tax must be remitted to the department on the
organization's quarterly bingo report and distributed as provided in
Section 12-21-4190. Failure to remit this excess proceeds tax to the
department shall result in immediate suspension of both the
promoter's license and the organization's license. The department,
after a conference with the promoter and organization, may
permanently revoke the license of the promoter or the nonprofit
organization, or both. If permanently revoked, the promoter,
nonprofit organization, or any partner or member of the organization
may no longer manage, conduct, or assist in any manner with a bingo
operation in this State.
(13) The playing of bingo is restricted to the premises designated
with the department by the sponsor organization.
(14) Bingo only may be played at the place designated by the
bingo licensee on its original or amended application.
Section 12-21-4010. The provisions of Sections
12-21-3930 through 12-21-3950 do not apply to the holder of a fair
bingo license. However, the department shall prescribe a separate
application form for fairs to obtain a license.
Section 12-21-4020. The following are the classes of bingo
licenses:
(1) CLASS AA: An organization operating a bingo
game offering prizes with a minimum payout of fifty thousand dollars
a session shall obtain a Class AA bingo license at a cost of four
thousand dollars. The prizes offered at any one session may not
exceed two hundred fifty thousand dollars. The holder of a Class AA
license may not conduct more than one bingo session a month.
(2) CLASS B: An organization operating a bingo
game offering prizes, which do not exceed eight thousand dollars a
session, shall obtain a Class B bingo license at a cost of one thousand
dollars. The holder of a Class B license may not conduct more than
three bingo sessions a week.
(3) CLASS C: An organization operating a bingo
game and offering prizes of twenty dollars or less a game during a
single session shall obtain a Class C bingo license at no cost.
However, the organization may offer a prize in cash or merchandise
of no more than one hundred fifty dollars for six jackpot games a
session.
(4) CLASS D: A person, organization, or
corporation desiring to conduct a bingo game at a fair as defined in
Section 12-21-3920 and who offers prizes for each game of no more
than fifty dollars in merchandise shall obtain only a temporary Class
D bingo license at a cost of one hundred dollars for not more than ten
days or two hundred dollars for more than ten days.
(5) The only type of license available in this State
is a CLASS E license:. An organization
which has a game of bingo and operates exclusively by bona fide
members who are residents of this State and who do so on a strictly
volunteer basis and whose gross bingo proceeds do not exceed forty
thousand dollars a calendar quarter, and where prizes do not exceed
four thousand dollars a session shall obtain a Class E license from the
department at a cost of five hundred dollars. If the gross bingo
proceeds for any calendar quarter exceed thirty thousand dollars, the
person or organization within ten days is required to obtain a Class
B license from the department and comply with all requirements of
a Class B license. The holder of a Class E license may not
conduct more than one bingo session a week. A holder of a Class
E license may impose a five dollar entrance fee. The entrance fees
collected are not required to be remitted as taxes and are not included
in gross proceeds for purposes of the prize limitations provided in
Section 12-21-4000(12).
Section 12-21-4030. (A) A promoter or
organization may not impose a charge, other than as provided in
subsection (B), on a player of more than the face value of each card
sold to play bingo.
(B)(1) A holder of a Class AA license shall impose
an entrance fee of eighteen dollars;
(2) A holder of a Class B license shall impose
an entrance fee of five dollars;
(3) A holder of a Class D or Class E license may
impose a five dollar entrance fee. The entrance fees collected are not
required to be remitted as taxes and are not included in gross
proceeds for purposes of the prize limitations provided in Section
12-21-4000(12)(a).
Section 12-21-4040. No nonprofit religious
organization may hold more than one bingo license
operate or cause the operation of bingo outside the county in
which it maintains a church facility and each church facility may
operate or cause the operation of only one game of bingo.
Section 12-21-4050. Only one nonprofit religious
organization may operate or cause the operation of bingo in a
building. This section applies to all buildings regardless of
ownership, of primary use, or of original use.
Section 12-21-4060. A person who has been convicted within the
last twenty years of violating a state or federal criminal statute
relating to gaming or gambling, or who has been convicted of any
other crime that has a sentence of two or more years, or where
applicable, whose promoter's license has been revoked by the
department is not permitted to manage or conduct a game or assist in
any manner with the bingo operation.
Section 12-21-4070. No license, as provided by this article, may
be issued to an a religious organization,
promoter, or individual that has not been domiciled in this State
for at least three years immediately preceding the license application.
In the case of the organization, the organization must also have been
active in this State for at least three years.
Section 12-21-4080. (A) Upon completion of the
session, the promoter shall deliver to the representative member of
the organization the gross proceeds from the session less the amount
paid out as prizes and collected as entrance fees.
(B) The representative member of the nonprofit
religious organization shall deposit the funds into the bingo
checking or savings account as described in Section 12-21-4090. For
purposes of this section, a member of the licensed nonprofit
religious organization is any individual who holds a full
membership in the organization as defined by the organization's
constitution, charter, articles of incorporation or by-laws and has
been a member of the organization for at least one year. The term
also includes those individuals who are members of an auxiliary or
recognized junior affiliate of the parent organization.
Section 12-21-4090. (A) The provisions of this section apply to
the licensed nonprofit religious organization which
is responsible for the special checking and savings accounts
established by this section.
(B) The religious organization shall control all deposits,
transfers, and disbursements from these accounts, including the
payment of compensation to the promoter and employees of the
promoter or organization working the bingo games.
(C) An A religious organization receiving an
annual license to conduct bingo shall establish and maintain one
regular checking account designated the 'bingo account' and also
may maintain an interest-bearing savings account designated the
'bingo savings account'. All funds derived from the conduct of
bingo, less the amount awarded as cash prizes, must be deposited in
the bingo account. No other funds may be deposited in the bingo
account. Deposits must be made no later than the next business day
following the day of the bingo occasion on which the receipts were
obtained. All accounts must be maintained in a financial institution
in this State.
(D) Funds from the bingo account must be withdrawn by
preprinted, consecutively-numbered checks or withdrawal slips,
jointly signed by a properly authorized representative of the licensed
nonprofit religious organization and
promoter and made payable to a person or organization. Checks
must be imprinted with the words 'Bingo Account' and must contain
the organization's bingo license number on the face of the check.
There also must be noted on the face of the check or withdrawal slip
the nature of the payment made. No check or slip may be made
payable to 'cash', 'bearer', or a fictitious payee. All checks, including
voided checks and slips, must be kept and accounted for.
(E) Funds received by the nonprofit religious
organization from the department as a result of the sale of bingo cards
must be deposited into a separate account and maintained separately
from bingo funds and the bingo account referenced in this section.
(F) Checks drawn on the bingo account must be for one or more
of the following purposes:
(1) payment of necessary and reasonable bona fide expenses
incurred and paid in connection with the conduct of bingo;
(2) payment of necessary and reasonable compensation
incurred and paid in connection with the conduct of bingo for
personnel and promoters managing and conducting the game;
(3) disbursement of net proceeds derived from the
conduct of bingo to charitable purposes or the purpose for which the
organization was established;
(4)(3) transfer of net proceeds derived from the
conduct of bingo to the bingo savings account pending a
disbursement to a charitable purpose.
(G) The disbursement of net proceeds on deposit in the bingo
savings account to a charitable purpose must be made by transferring
the intended disbursement back into the bingo account and then
withdrawing the amount by a check drawn on that account as
prescribed in this section.
(H) Proceeds given to a person or an organization for a charitable
purpose must not be used by the donee:
(1) to pay for services rendered or materials purchased in
connection with the conducting of bingo by the donor organization;
or
(2) for a cause, an act, or an activity that does not constitute a
charitable purpose or other purpose for which the organization was
established if the activity is conducted by the donor organization.
(I) Gross proceeds derived from the conduct of bingo must not be
commingled with other funds of the licensed organization.
(J) A licensed organization that has stopped conducting bingo and
has unexpended bingo funds shall disburse those funds to a charitable
purpose or other purposes for which the organization was established
within one year after the date it ceases to conduct bingo. However,
unexpended funds to be used for a building fund may be retained for
this purpose. The organization shall file a report with the department
showing the establishment of a building fund, the amount of money
from the special account to be retained for that purpose, and other
information the department may consider necessary. If the
organization is identified as a fictitious charity after originally
licensed, any payments due the charity revert to the general fund.
(K) Net proceeds must not be used directly or indirectly by a
licensed authorized nonprofit religious organization
to support or oppose a candidate or slate of candidates for public
office, to support or oppose a measure submitted to a vote of the
people, or to influence or attempt to influence legislation. The
records of these accounts are available for inspection, upon demand,
by the department.
Section 12-21-4100. (A) Each licensed nonprofit
religious organization conducting bingo games shall submit
quarterly to the department on the last day of the month following the
close of the calendar quarter a report under oath containing the
following information:
(1) the amount of the gross proceeds derived from the games;
(2) each item of expense incurred or paid;
(3) each item of an expenditure made or to be made, with a
detailed description of the merchandise purchased or the services
rendered;
(4) the net proceeds derived from the games;
(5) the use to which the proceeds have been or are to be applied;
(6) a list of prizes offered and given, with their respective
values;
(7) excess proceeds as provided in Section
12-21-4000(12)(b);
(8) number of players at each session;
(9) other information considered necessary by the department.
(B) Each licensed nonprofit religious organization
shall maintain records to substantiate the contents of each report.
(C) The department may revoke the license of an organization that
fails to file the reports and information required in this article.
Section 12-21-4110. The department shall perform all functions
incident to the administration, collection, enforcement, and operation
of the tax and regulations imposed under this article. Local law
enforcement officials are authorized to enforce the hours of
operation.
Section 12-21-4120. A person or religious organization
who is found in violation of the provisions of this article and assessed
additional taxes, penalties, fines, or interest is entitled to a conference
upon request.
Section 12-21-4130. The department may seize bingo
equipment or cards found in the possession of a promoter, a licensed
nonprofit organization, or player which have been manufactured,
altered, or changed in a manner so as to no longer make bingo a game
of chance as defined in this article.
Section 12-21-4140. A penalty of up to five thousand
hundred dollars and revocation of the license at the
discretion of the department may be imposed for a violation of this
article. Each violation and each day in violation of a provision of this
article constitutes a separate offense.
Section 12-21-4150. A person who poses as a bingo player or a
person who conspires to have a person pose as a bingo player with
the intent to defraud regular customers of the game, or a person who
is using unauthorized bingo supplies, is guilty of a felony and, upon
conviction, must be imprisoned not more than five years or fined not
more than five thousand dollars, or both.
Section 12-21-4160. The department or its designated agent or
representative may enter upon the premises where bingo is played or
the business premises of another person and examine books, papers,
records, memoranda, commodities, or other things bearing upon the
amount of taxes or fees payable or the proper conduct of a game and
secure from the taxpayer or other person information directly or
indirectly for the enforcement of this article.
Section 12-21-4170. The department, in its discretion, may
compromise a criminal or civil action arising under the
provisions of this article either before or after prosecution has begun.
Section 12-21-4180. The collection of the taxes and fees imposed
by this article must not be stayed or prevented by an injunction, writ,
or order issued by a court or its judge.
Section 12-21-4190. The department shall charge and retain
sixteen and one-half cents for each dollar of face value for each bingo
card sold except sales to Class C licensees pursuant to this
article. The revenue retained must be distributed as follows:
(1) twenty-six percent of the revenue must be distributed to the
sponsoring charity for which the bingo cards were purchased. The
department shall make the distribution to the sponsoring charity by
the last day of the next month following the month the revenue was
collected. Distributions under this subsection must be reduced by
any delinquent debts as defined in the Setoff Debt Collection Act;
(2) seventy-four percent pursuant to Section 12-21-4200.
Section 12-21-4200. The first nine hundred forty-eight thousand
dollars of the total revenues derived from the provisions of this article
which is collected from bingo within this State must be deposited
monthly in twelve equal amounts into an account in the Office of the
State Treasurer and called 'Division On Aging Senior Citizen Centers
Permanent Improvement Fund'. All interest earned on monies in the
Division on Aging Senior Citizen Centers Permanent Improvement
Fund must be credited to this fund. Of the remaining revenue:
(1) Seven and five one-hundredths percent of the annual
revenue derived from the provisions of Section 12-21-4190 (2) must
be deposited with the State Treasurer to be credited to the account of
the Division on Aging, Office of the Governor. This amount must be
allocated to each county for distribution in home community services
for the elderly as follows:
(a) One-half of the funds must be divided equally among the
forty-six counties.
(b) The remaining one-half must be divided based on the
percentage of the county's population age sixty and above in relation
to the total state population using the latest report of the United States
Bureau of the Census.
The aging service providers receiving these funds must be agencies
recognized by the Division on Aging of the Office of the Governor
and the area agencies on aging.
(2) Twenty and eight-tenths percent of the annual revenue
derived from the provisions of Section 12-21-4190(2) must be
deposited by the State Treasurer in a separate fund for the
Department of Parks, Recreation and Tourism entitled the Parks and
Recreation Development Fund. Interest earned by this fund must be
added to it and credited to its various accounts in the same proportion
that the annual allocation to each account bears to the total annual
distribution to the fund. Unexpended amounts in the various fund
accounts must be carried forward to succeeding fiscal years except as
provided in Section 51-23-30. Fund proceeds must be distributed as
provided in Chapter 23 of Title 51.
(3) Seventy-two and fifteen one-hundredths percent of the
annual revenue derived from the provisions of Section 12-21-4190(2)
must be deposited with the State Treasurer and credited to the general
fund.
Section 12-21-4210. Bingo cards may not be sold or transferred
between licensed organizations, between distributors, or between
manufacturers. All unused bingo cards may be returned to the
department for refund and destruction. The department is required to
refund only the amount retained by the department previously based
on the face value of each card and does not include the
manufacturer's price or transportation charges to the consignee at
destination and such additional charges.
Section 12-21-4220. Bingo cards shall meet the design and
requirements of the department. The use of the cards is evidence of
the payment of the license tax imposed upon bingo cards by this
article.
Section 12-21-4230. Manufacturers, promoters,
organizations, or distributors of bingo cards are required to furnish
bond in an amount approved by the department to ensure faithful
compliance with the regulations of the department.
Section 12-21-4240. Each manufacturer, distributor, or
organization, or promoter must be licensed to manufacture or
distribute, or use bingo cards. The department shall charge an annual
license fee of five thousand dollars for each manufacturer and two
thousand dollars for each distributor. A license issued by the
department under this section is renewable annually unless canceled
or terminated. No license issued under this section is transferable or
assignable.
Section 12-21-4250. A bingo card manufacturer may not be
licensed to operate a game as a bingo card distributor or as a
promoter. A bingo card distributor may not be a
manufacturer, or a licensed nonprofit
religious organization, or promoter. A licensed
nonprofit religious organization or a
promoter may not be a manufacturer or distributor.
Section 12-21-4260. A person or religious organization
licensed as a bingo manufacturer, distributor, or
organization, or promoter shall submit to a background
investigation. This includes each partner of a partnership and each
director and officer and all stockholders of ten percent or more in a
parent or subsidiary corporation of a bingo card manufacturer,
distributor, or organization, or promoter. The
department has sole discretion to issue a license based on the
background investigation.
Section 12-21-4270. Each licensed nonprofit
religious organization or promoter, in the name of a
licensed organization, may obtain bingo cards approved by the
department by making application and remitting sixteen and one-half
percent of the total face value of the cards to be purchased. Payment
to the State for the issuance of bingo cards must be made by certified
check within fifteen days of receipt of the application. Upon receipt
of the application, the department shall notify a licensed distributor,
who has purchased bingo cards from a licensed manufacturer that the
licensed distributor may release the face value of the bingo cards
requested to the licensed organization or promoter.
However, no additional bingo cards must be released until payment
is received for the prior application of bingo cards. The department
is required to set forth procedures to ensure that there is a crosscheck
between manufacturers, distributors, and licensed nonprofit
religious organizations or promoters. A quarterly
return is required by each manufacturer, distributor, and licensed
nonprofit religious organization or promoter
on or before the last day of the month following the close of the
calendar quarter outlining those items the department determines
necessary to verify the sale and distribution of bingo cards. The sale
of bingo cards and entrance fees as provided by Section
12-21-4030 law are not subject to the admissions tax
provided by Section 12-21-2420.
Section 12-21-4280. (A) The department may revoke a license
issued under this article if it finds that a licensed nonprofit
religious organization is not in compliance with the
exemption requirements of the Internal Revenue Code.
(B) A license revoked under this section must not be reissued until
a new application is made and the department determines that the
applicant is complying with the applicable provisions of the Internal
Revenue Code.
(C) The department may promulgate regulations to enforce this
section.
Section 12-21-4295. Proceeds after expenses derived from the
game of bingo within South Carolina must not be expended for the
benefit of charitable religious organizations located
outside this State."
SECTION 2. This act takes effect upon approval by the Governor.
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