S 947 Session 112 (1997-1998)
S 0947 General Bill, By Ryberg, Alexander, Anderson, Bryan, Courson, Drummond,
Fair, Giese, Gregory, Grooms, Hayes, Holland, Lander, Leatherman, Martin,
McGill, O'Dell, Reese, Russell, J.V. Smith, Thomas, Waldrep and Wilson
Similar(H 4577)
A BILL TO AMEND SECTIONS 12-21-2710, AS AMENDED, 12-21-2712, 12-21-2720, AS
AMENDED, AND 12-21-2726, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
COIN-OPERATED MACHINES OR DEVICES, SO AS TO EXTEND THE PROHIBITION ON SLOT
MACHINES AND OTHER MACHINES OR DEVICES PERTAINING TO GAMES OF CHANCE TO VIDEO
GAMES WITH A FREE PLAY FEATURE OR ANY OTHER COIN-OPERATED MACHINE OR DEVICE
USED FOR GAMBLING, TO EXTEND THE SEIZURE AND DESTRUCTION PROVISIONS APPLICABLE
TO GAMES OF CHANCE TO THESE EXPANDED PROHIBITIONS, TO CONFORM EXISTING
LICENSING REQUIREMENTS FOR COIN-OPERATED MACHINES AND DEVICES TO THESE
EXPANDED PROHIBITIONS AND TO DELETE REFERENCES TO PROVISIONS OF LAW REPEALED
BY THIS SECTION; TO AMEND SECTION 12-54-40, AS AMENDED, RELATING TO TAX CRIMES
AND PENALTIES, SO AS TO DELETE THE OFFENSE OF OPERATING AN UNMETERED VIDEO
GAME WITH A FREE PLAY FEATURE; TO AMEND SECTIONS 16-19-40 AND 16-19-50,
RELATING TO THE OFFENSE OF GAMBLING, SO AS TO EXTEND THESE OFFENSES
SPECIFICALLY TO PLAYING OR MAINTAINING ANY LICENSED COIN-OPERATED MACHINE OR
DEVICE USED FOR GAMBLING PURPOSES; TO PROVIDE FOR A ONE-YEAR LICENSE PERIOD
FOR VIDEO GAMES WITH A FREE PLAY FEATURE FOR LICENSES ISSUED FOR A PERIOD
BEGINNING AFTER MAY 31, 1998, AT A FEE OF FOUR THOUSAND DOLLARS; AND TO REPEAL
SECTIONS 12-21-2703, 16-19-60, AND ARTICLE 20, CHAPTER 21 OF TITLE 12,
RELATING RESPECTIVELY TO THE RETAIL LICENSE REQUIREMENT FOR A LOCATION WITH
VIDEO GAMES WITH A FREE PLAY FEATURE, THE EXEMPTION OF VIDEO GAMES WITH A FREE
PLAY FEATURE FROM THE GAMBLING OFFENSES, AND THE VIDEO GAMES MACHINES ACT.
01/27/98 Senate Introduced and read first time SJ-337
01/27/98 Senate Referred to Committee on Finance SJ-337
02/11/98 Senate Committee report: Majority favorable, minority
unfavorable Finance SJ-9
03/05/98 Senate Set for special order- Chairman's Slot SJ-12
03/10/98 Senate Set for int. deb. on 3/24 at noon-after 4688 is
disposed of SJ-33
03/24/98 Senate Debate interrupted SJ-35
03/25/98 Senate Debate interrupted SJ-18
03/26/98 Senate Debate interrupted SJ-1
03/27/98 Senate Debate interrupted SJ-17
03/31/98 Senate Debate interrupted SJ-26
04/01/98 Senate Debate interrupted SJ-22
04/02/98 Senate Debate interrupted SJ-40
04/07/98 Senate Debate interrupted SJ-16
04/08/98 Senate Adjourned debate until after budget or court
decision SJ-35
05/12/98 Senate Debate adjourned SJ-18
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 11, 1998
S. 947
Introduced by Senators Ryberg, Hayes, Gregory, Drummond,
Holland, J. Verne Smith, Leatherman, Bryan, Courson, Giese,
Thomas, Wilson, Russell, McGill, O'Dell, Reese, Lander, Martin,
Waldrep, Alexander, Fair, Grooms and Anderson
S. Printed 2/11/98--S.
Read the first time January 27, 1998.
THE COMMITTEE ON FINANCE
To whom was referred a Bill (S. 947), to amend Sections
12-21-2710, as amended, 12-21-2712, 12-21-2720, as amended, and
12-21-2726, Code of Laws of South Carolina, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass:
Majority favorable. Minority unfavorable.
JOHN DRUMMOND ERNEST L. PASSAILAIGUE, JR.
For Majority. For Minority.
STATEMENT OF ESTIMATED FISCAL
IMPACT
The loss to the General Fund Revenue in FY 1998-99 will be
$61,000,000.
This bill prohibits video poker machines after June 1, 1999. It also
ceases the selling of biennial and prorated licenses of such machines
after May 31, 1998. These actions will reduce BEA's November 10,
1997 estimate by $61,000,000. This bill, however, does allow for
one-year licenses to be sold after May 31, 1998 for new machines at
a flat fee of $4,000 to expire on June 1, 1999. It is estimated that the
cost of these licenses will be so high that there will only be an
insignificant number purchased, resulting in no measurable revenue
gain. The BEA will meet on February 12, 1998 to reconsider this
estimate in light of the new regulations that have been submitted to
the General Assembly, pending court cases and updated information
on the purchases of licenses.
Approved By:
William C. Gillespie
S.C. Board of Economic Advisors
A BILL
TO AMEND SECTIONS 12-21-2710, AS AMENDED, 12-21-2712,
12-21-2720, AS AMENDED, AND 12-21-2726, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO
COIN-OPERATED MACHINES OR DEVICES, SO AS TO
EXTEND THE PROHIBITION ON SLOT MACHINES AND
OTHER MACHINES OR DEVICES PERTAINING TO GAMES OF
CHANCE TO VIDEO GAMES WITH A FREE PLAY FEATURE
OR ANY OTHER COIN-OPERATED MACHINE OR DEVICE
USED FOR GAMBLING, TO EXTEND THE SEIZURE AND
DESTRUCTION PROVISIONS APPLICABLE TO GAMES OF
CHANCE TO THESE EXPANDED PROHIBITIONS, TO
CONFORM EXISTING LICENSING REQUIREMENTS FOR
COIN-OPERATED MACHINES AND DEVICES TO THESE
EXPANDED PROHIBITIONS AND TO DELETE REFERENCES
TO PROVISIONS OF LAW REPEALED BY THIS SECTION; TO
AMEND SECTION 12-54-40, AS AMENDED, RELATING TO
TAX CRIMES AND PENALTIES, SO AS TO DELETE THE
OFFENSE OF OPERATING AN UNMETERED VIDEO GAME
WITH A FREE PLAY FEATURE; TO AMEND SECTIONS
16-19-40 AND 16-19-50, RELATING TO THE OFFENSE OF
GAMBLING, SO AS TO EXTEND THESE OFFENSES
SPECIFICALLY TO PLAYING OR MAINTAINING ANY
LICENSED COIN-OPERATED MACHINE OR DEVICE USED
FOR GAMBLING PURPOSES; TO PROVIDE FOR A ONE-YEAR
LICENSE PERIOD FOR VIDEO GAMES WITH A FREE PLAY
FEATURE FOR LICENSES ISSUED FOR A PERIOD
BEGINNING AFTER MAY 31, 1998, AT A FEE OF FOUR
THOUSAND DOLLARS; AND TO REPEAL SECTIONS
12-21-2703, 16-19-60, AND ARTICLE 20, CHAPTER 21 OF
TITLE 12, RELATING RESPECTIVELY TO THE RETAIL
LICENSE REQUIREMENT FOR A LOCATION WITH VIDEO
GAMES WITH A FREE PLAY FEATURE, THE EXEMPTION OF
VIDEO GAMES WITH A FREE PLAY FEATURE FROM THE
GAMBLING OFFENSES, AND THE VIDEO GAMES MACHINES
ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. 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 2. Section 12-21-2712 of the 1976 Code is amended to
read:
"Section 12-21-2712. Any vending or slot machine,
punch board, or other device pertaining to games of
chance prohibited by Section 12-21-2710 must be seized by any
officer of the law law enforcement officer and at
once taken before any magistrate of the county in which the machine,
board, or device is seized who shall immediately examine it, and if
he is satisfied that it is in violation of Section 12-21-2710 or
any other law of this State, he shall direct that it be
immediately destroyed."
SECTION 3. (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 4. Section 12-21-2726 of the 1976 Code, as last
amended by Act 164 of 1993, is further amended to read:
"Section 12-21-2726. Every person who maintains for use
or permits the use of, on a place or premises occupied by him, a
machine subject to the license imposed by this article by way of proof
of licensing must have a current license displayed conspicuously on
the front of the machine. Except for the provisions of Sections
12-21-2774 and 12-21-2776, each machine licensed pursuant to this
section must be operated in a stand-alone fashion and may not be
linked in any way to another coin-operated machine or
device."
SECTION 5. 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 6. 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 7. Section 16-19-50 of the 1976 Code is amended to
read:
"Section 16-19-50. Any person who shall set up, keep or use
any (a) gaming table, commonly called A, B, C, or E, O, or any
gaming table known or distinguished by any other letters or by any
figures, (b) roley-poley table, (c) table to play at rouge et noir, (d)
faro bank or (e) any other gaming table or bank of the like
kind or of any other kind for the purpose of gaming, or (f) any
machine or device licensed pursuant to Section 12-21-2720 and used
for gambling purposes except the games of billiards, bowls,
chess, draughts and backgammon, upon being convicted thereof,
upon indictment, shall forfeit a sum not exceeding five hundred
dollars and not less than two hundred dollars."
SECTION 8. Notwithstanding any other provision of law, any
license required for the use of a video game with a free play feature
described in Section 12-21-2720(A)(3) of the 1976 Code issued for
a license period beginning after May 31, 1998, is valid only through
May 31, 1999, and the fee for this license is four thousand dollars.
SECTION 9. Sections 12-21-2703 and 16-19-60 and Article 20,
Chapter 21 of Title 12, all of the 1976 Code, are repealed.
SECTION 10. Section 8 of this act takes effect upon approval by
the Governor. The remaining provisions take effect June 1, 1999.
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