H 3276 General Bill, By Kirsh, Elliott and D.E. McTeer
 A Bill to amend Section 12-21-2726, as amended, Code of Laws of South
 Carolina, 1976, relating to proof of licensing of coin-operated machines and
 devices, so as to provide that proof of licensing is the conspicuous display
 of the license at the machine location; to amend Section 12-21-2738, relating
 to penalties for violations of licensing laws for coin-operated machines and
 devices, so as to provide that failure to have the appropriate licenses on
 display constitutes a violation and that each machine in excess of the
 appropriate license displayed is a separate violation; and to repeal Section
 12-21-2732, relating to the attachment of licenses to machines.

   01/22/91  House  Introduced and read first time HJ-13
   01/22/91  House  Referred to Committee on Ways and Means HJ-13
   04/10/91  House  Committee report: Favorable with amendment Ways
                     and Means HJ-29
   04/18/91  House  Debate adjourned until Tuesday, April 23, 1991 HJ-4
   04/23/91  House  Amended HJ-247
   04/23/91  House  Read second time HJ-248
   04/24/91  House  Reconsider vote whereby read second time HJ-10
   04/24/91  House  Amended HJ-15
   04/24/91  House  Read second time HJ-17
   04/25/91  House  Objection by Rep. McCain, Rama, R. Young, Cork,
                     Fulmer, Corning, Burriss, HJ-64
   04/25/91  House  Objection by Rep. Bennett, Jennings, Snow &
                     Gonzales HJ-64
   04/25/91  House  Read third time and sent to Senate HJ-83
   04/25/91  Senate Introduced and read first time SJ-21
   04/25/91  Senate Referred to Committee on Finance SJ-22

AMENDED

April 24, 1991

H. 3276

Introduced by REPS. Kirsh, McTeer and D. Elliott

S. Printed 4/24/91--H.

Read the first time January 22, 1991.

A BILL

TO AMEND SECTION 12-21-2726, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROOF OF LICENSING OF COIN-OPERATED MACHINES AND DEVICES, SO AS TO PROVIDE THAT PROOF OF LICENSING IS THE CONSPICUOUS DISPLAY OF THE LICENSE AT THE MACHINE LOCATION; TO AMEND SECTION 12-21-2738, RELATING TO PENALTIES FOR VIOLATIONS OF LICENSING LAWS FOR COIN-OPERATED MACHINES AND DEVICES, SO AS TO PROVIDE THAT FAILURE TO HAVE THE APPROPRIATE LICENSES ON DISPLAY CONSTITUTES A VIOLATION AND THAT EACH MACHINE IN EXCESS OF THE APPROPRIATE LICENSE DISPLAYED IS A SEPARATE VIOLATION; TO AMEND SECTION 12-21-2720, AS AMENDED, RELATING TO LICENSES FOR COIN OPERATED DEVICES OR MACHINES, SO AS TO PROVIDE THAT A MUNICIPALITY OR COUNTY MAY NOT LIMIT THE NUMBER OF MACHINES WITHIN ITS BOUNDARIES; TO AMEND SECTION 12-21-2746, RELATING TO THE LEVY OF AN ADDITIONAL LOCAL LICENSE TAX, SO AS TO SPECIFICALLY DESIGNATE PREMISES WHICH ARE SUBJECT TO THE TAX AND PROCEDURES FOR LICENSING; AND TO REPEAL SECTION 12-21-2732, RELATING TO THE ATTACHMENT OF LICENSES TO MACHINES, AND SECTION 16-19-60, RELATING TO THE PROVISIONS THAT SECTIONS 16-19-40 (UNLAWFUL GAMES AND BETTING) AND 16-19-50 (KEEPING UNLAWFUL GAMING TABLES) DO NOT EXTEND TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE AND TO THE PROVISION THAT SECTION 16-19-60 DOES NOT AUTHORIZE THE LICENSING, POSSESSION, OR OPERATION OF A MACHINE WHICH DISBURSES MONEY TO THE PLAYER.

Amend Title To Conform

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

SECTION 1. Section 12-21-2726 of the 1976 Code is amended to read:

"Section 12-21-2726. Every person owning or operating who maintains for use or permits the use of, on any place or premises occupied by him, any machine subject to the license imposed by this article shall by way of proof of licensing have a current license attached to the machine, or alternatively the person shall have in his possession and produce on demand a receipt for a cashier's check, money order, or certified check not more than thirty day old made payable to the order of the South Carolina Tax Commission showing thereon the name or model except that those machines described in and licensed as item (3) machines may by way of proof of licensing have a current license on display at the premises occupied by him showing only the following information:

(1) the type of machine;

(2) the number of machines; and

(3) location showing the address of the machines. The owners of those machines described in and licensed as item (3) machines are specifically allowed to take advantage of those provisions of the United States Code which also authorize a tax credit for state-imposed taxes. For inspection purposes, the license must be conspicuously displayed at the location where the machine is being operated."

SECTION 2. Section 12-21-2738 of the 1976 Code is amended to read:

"Section 12-21-2738. Any A person who:

(1) fails, neglects, or refuses to comply with the terms and provisions of the article; or who

(2) fails to attach the required license to any an machine, apparatus, billiard, or pocket billiard table,; as herein required, or

(3) fails to display conspicuously the required license where a machine is being operated; if subject to a penalty of fifty five hundred dollars for each failure, and the penalty must be assessed and collected by the commission.

For purposes of the violation established pursuant to item (3) of this section, each machine by type in excess of the appropriate license displayed constitutes a separate violation.

In addition to the penalty provided in this section, an unlicensed machine is considered to have been on the location as of June first of the licensing period and the full annual license amount must be collected."

SECTION 3. Section 12-21-2732 of the 1976 Code is repealed.

SECTION 4. The last paragraph of Section 12-21-2720 of the 1976 Code, as last amended by Act 170, Part II, Section 3A, Act 170 of 1987, is further amended to read:

"Municipalities may increase the amount charged as license for the operation of the machines over the maximum amounts allowed before March 28, 1956, by a sum not to exceed twenty percent. No municipality or county may limit the number of machines within the boundaries of the municipality or county."

SECTION 5. Section 12-21-2746 of the 1976 Code is amended to read:

"Section 12-21-2746. (A) Municipalities and counties may, by ordinance, 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. premises which house (1) machines for the playing of games or amusements which have a free play feature operated by a slot in which is deposited a coin or other thing of value and the machines are of the nonpayout pin table type with levers or flippers operated by the player by which the course of the balls can be altered or changed or (2) machines of the nonpayout type, in-line pin games, or video games with free play feature operated by a slot in which is deposited any coin or other thing of value. Municipalities and counties may impose the license only if the described machines already comply with all of the other provisions of this article. If both the county and municipality pass ordinances to license the premises, the county may not charge a license tax within the incorporated area of the county.

The license fee which the municipalities or counties may charge under this section may not exceed fifty dollars for the machines described in item (2) of Section 12-21-2720 and may not exceed one hundred dollars for the machines described in item (3) of Section 12-21-2720.

(B) In every municipality and county which by ordinance provides for the licensing of premises as authorized by this section, it is required that the premises license fee must be paid and that the premises license must be issued by the municipality or the county, regardless of whether all other provisions of this article have been satisfied. Without a properly issued premises license, the presence of the described machines on the premises is unlawful. Further, if an issued premises license is revoked for any reason by the municipality or county which issued it, the presence of the described machines on the premises is unlawful.

(C) If a licensee under this section or his agent is convicted of violating any of the gambling laws of this State, the premises license issued pursuant to the authority of this section must be revoked for one year for a first offense and for two years for a second and every subsequent offense.

Any person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than six months, or both.

(D) The other provisions of this article are applicable to the premises license authorized and issued under this section."

SECTION 6. Sections 12-21-2732 and 16-19-60 of the 1976 Code are repealed.

SECTION 7. This act is effective upon approval by the Governor but is effective for licenses issued after May 31, 1992.