H 3288 Session 112 (1997-1998)
H 3288 General Bill, By Simrill, Boan, Delleney, J.H. Hodges, Kirsh, McCraw and
Meacham
Similar(S 207)
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 12-21-2791, RELATING TO LIMITATIONS ON PAYOUTS ON
MACHINES AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT, SO AS TO DELETE
REFERENCES TO GAMBLING PROVISIONS AND CLARIFY THAT THIS PROVISION IS DIRECTED
AT A PERSON; 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.
01/23/97 House Introduced and read first time HJ-1
01/23/97 House Referred to Committee on Ways and Means HJ-2
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 12-21-2791,
RELATING TO LIMITATIONS ON PAYOUTS ON MACHINES
AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT,
SO AS TO DELETE REFERENCES TO GAMBLING
PROVISIONS AND CLARIFY THAT THIS PROVISION IS
DIRECTED AT A PERSON; 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:
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 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 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 A person
who operates or allows the operation of coin-operated
machines pursuant to Section 12-21-2720(A)(3) which provides
payouts authorized pursuant to Section 16-19-60 shall limit
the cash payout for credits earned for free games to two thousand
five hundred credits per a player per
a location during any twenty-four hour period. The cash
value of credits for each free game shall be is
limited to five cents."
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."
SECTION 4. Section 12-21-2808 of the 1996 Code, as added by
Act 164 of 1993, is amended to read:
"Section 12-21-2808. (A) In addition to the
referendum to be held at the 1994 general election, Counties
are authorized to may hold a referendum to
determine whether or not cash payoffs are allowed for the
operation of machines as defined in this article provided
for under Section 16-19-60 of the 1976 Code relating to
coin-operated devices shall be authorized. The counties are
authorized to hold such a this referendum in the
manner provided in this section except that no such referendum
may be held until the 1998 general election and may also be
held in subsequent general elections as provided herein
except at the time of the general election.
(1) (B) The referendum must be held:
(a) 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
(b) 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.
(2) (C) In any a county in
which cash payoffs are authorized by Section 16-19-60 of the
1976 Code relating to coin-operated devices
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
remain legal and subject to licensure and regulation by the
State of South Carolina?'
Yes []
No []
(3) (D) In any a county in
which, at the time of the referendum provided for in this section,
cash payoffs as provided for by Section 16-19-60 of the 1976
Code relating to coin-operated devices 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 and subject
to licensure and regulation by the State of South Carolina?'
Yes []
No []
(4) (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, Section 16-19-60 of the 1976 Code shall not apply
cash payouts are prohibited within the county after
July first June thirtieth of the year following the
referendum.
(5) (F) If the results of the referendum
provided for in this section are to authorize cash payoffs
relating to coin-operated devices, Section 16-19-60 shall
apply, such payoffs are permitted, subject to the
regulations of this article, within such county after
beginning January first of the year following the
referendum.
(6) (G) The state election laws apply to the
referendum provided in this section, mutatis mutandis.
(7) (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 Tax Commission 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 commission department
for licenses which extend beyond July first of the year after the
referendum."
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 pay-offs
for credits earned on coin-operated devices in a referendum
authorized by Sections 12-21-2806 or 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
it is unlawful for a person to may not own
or possess these machines in the county other than for
purposes of storage, maintenance, or transportation.
(B) A person who operates owns or possesses
any coin-operated device in violation of subsection (A) of this
section is guilty of a misdemeanor and, upon conviction, must
be fined not more than two thousand dollars or imprisoned for not
more than thirty days. Violations charged under this section must
be tried in magistrate's court subject to the penalties
provided in Section 12-21-2804(G)."
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.
SECTION 7. Section 12-21-2806 of the 1976 Code is repealed.
SECTION 8. This act takes effect on the first day of the second
month following approval by the Governor.
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