H 3059 General Bill, By Scott
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 23
 to Title 13 so as to enact the "South Carolina Gaming and Economic Development
 Act" which provides for the manner in which certain dockside gaming activities
 may be conducted in specified counties of this State and includes provisions
 to provide for the imposition of a wagering tax and the manner in which it is
 imposed and distributed, to establish the South Carolina Gaming Commission, to
 provide the powers, duties, and functions of the Commission, to provide for
 the manner in which gaming licenses may be issued and the fees for these
 gaming licenses, to provide for other licenses in connection with gaming
 activities including suppliers' licenses and occupational licenses and for the
 fees for these other licenses, to provide for the applicability of other state
 and local taxes to gaming operations, to provide for civil and criminal
 penalties for violations of certain gaming provisions, and to provide that one
 hundred thousand dollars from the civil contingent fund shall be advanced to
 the South Carolina Gaming Commission for it's start-up costs.

   12/14/94  House  Prefiled
   12/14/94  House  Referred to Committee on Ways and Means
   01/10/95  House  Introduced and read first time HJ-23
   01/10/95  House  Referred to Committee on Ways and Means HJ-23

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 23 TO TITLE 13 SO AS TO ENACT THE "SOUTH CAROLINA GAMING AND ECONOMIC DEVELOPMENT ACT" WHICH PROVIDES FOR THE MANNER IN WHICH CERTAIN DOCKSIDE GAMING ACTIVITIES MAY BE CONDUCTED IN SPECIFIED COUNTIES OF THIS STATE AND INCLUDES PROVISIONS TO PROVIDE FOR THE IMPOSITION OF A WAGERING TAX AND THE MANNER IN WHICH IT IS IMPOSED AND DISTRIBUTED, TO ESTABLISH THE SOUTH CAROLINA GAMING COMMISSION, TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE COMMISSION, TO PROVIDE FOR THE MANNER IN WHICH GAMING LICENSES MAY BE ISSUED AND THE FEES FOR THESE GAMING LICENSES, TO PROVIDE FOR OTHER LICENSES IN CONNECTION WITH GAMING ACTIVITIES INCLUDING SUPPLIERS' LICENSES AND OCCUPATIONAL LICENSES AND FOR THE FEES FOR THESE OTHER LICENSES, TO PROVIDE FOR THE APPLICABILITY OF OTHER STATE AND LOCAL TAXES TO GAMING OPERATIONS, TO PROVIDE FOR CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS OF CERTAIN GAMING PROVISIONS, AND TO PROVIDE THAT ONE HUNDRED THOUSAND DOLLARS FROM THE CIVIL CONTINGENT FUND SHALL BE ADVANCED TO THE SOUTH CAROLINA GAMING COMMISSION FOR ITS START-UP COSTS.

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

SECTION 1. Title 13 of the 1976 Code is amended by adding:

Section 13-23-100. This chapter may be cited as the `South Carolina Gaming and Economic Development Act.'

Section 13-23-110. (A) The General Assembly finds that the continued economic development of South Carolina, particularly the development of the state's tourism industry, which is closely related to the state's coastal and other water resources, is important because economic development creates jobs, fosters the investment of capital, and enhances state and local revenues. For these reasons, the General Assembly finds that economic development benefits the general welfare of the state's citizens. It is the intent of the General Assembly, by enactment of this chapter, to encourage the development of the state's economy and to improve the general welfare of the state's citizens through the establishment of a regulatory mechanism for dockside gaming facilities. The development of dockside gaming facilities, with its accompanying job creation, capital investment, and flow of revenue to state and local governments, will result in many benefits to this State with no significant detriment to the citizens of this State. The General Assembly finds that a regulatory mechanism which requires the licensing and control of dockside gaming facilities, gaming employees, and manufacturers, suppliers, and distributors of gaming devices and associated equipment promotes the state's public policy of encouraging economic development while protecting the public health, safety and morals, good order, and general welfare of the state's citizens.

(B) The General Assembly finds that it has the inherent power to encourage economic development through the authorization and regulation of dockside gaming facilities. The General Assembly recognizes that Section 7 of Article XVII of the South Carolina Constitution prohibits the conducting or advertising or the sale of lottery tickets in this State. The General Assembly finds that Section 7 clearly contemplates, as indicated by the specific language contained therein, that a lottery involves the sale of tickets, advertising, and a drawing in order to determine the winner. In addition, the General Assembly finds that it has the inherent power to provide by law for the enforcement of Section 7. Therefore, in carrying out the General Assembly's duties under the Constitution and effectuating the intent of Section 7, the General Assembly finds that a lottery, as prohibited by the Constitution, does not include all forms of gaming but means any activity in which:

(1) the player or players pay or agree to pay something of value for chances, represented and differentiated by tickets, slips of paper, or other physical and tangible documentation upon which appear numbers, symbols, characters, or other distinctive marks used to identify and designate the winner or winners;

(2) the winning chance or chances are determined by a drawing or similar selection method based predominately upon the element of chance or random selection rather than upon the skill or judgment of the player or players;

(3) the holder or holders of the winning chance or chances receive a prize or something of valuable consideration; and

(4) the activity is conducted and participated in without regard to geographical location, with the player or players not being required to be present upon any particular premises or at any particular location in order to participate or to win.

(C) Obedient to the limitations found in the South Carolina Constitution and pursuant to the inherent power of the General Assembly to legislate on matters concerning the morals and policy of the people, the General Assembly declares that the provisions of this chapter must not be construed to legalize any form of gaming which is prohibited under the Constitution or the laws of this State. Nothing in this chapter shall be construed as encouraging the legalization of gaming in this State, except in those facilities licensed pursuant to this chapter.

(D) The General Assembly finds that the regulation of dockside gaming facilities is important in order to provide honest and competitive games, to ensure that the rights of the creditors of licensees are protected, and that gaming is free from criminal and corruptive elements. The General Assembly also finds that public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations, and activities related to the operation of dockside gaming facilities and the manufacture, distribution or supply of gaming devices and associated equipment. Therefore, it is the intent of the General Assembly, and the purpose of this chapter, to require the owners and operators of dockside gaming facilities, gaming employees, and all manufacturers, distributors, and suppliers of gaming devices and associated equipment to be licensed only after a thorough and complete investigation. In addition, after the issuance of any license, all licensees must be subject to the continued control and scrutiny of state regulatory authorities.

(E) It is the intent of the General Assembly that dockside gaming facilities, to the extent practicable, employ residents of South Carolina as gaming employees and other employees in the operation of their gaming establishments, that the construction of these facilities be publicly advertised and competitively bid, and that dockside gaming facilities utilize South Carolina resources, goods, and services in the operation of dockside gaming facilities to the extent possible or practicable.

(F) It is the intent of the General Assembly that persons issued a gaming license or supplier's license should hire minorities at least to the extent that the minority workforce in South Carolina is a part of the state's total workforce.

Section 13-23-120. As used in this chapter, unless the context clearly indicates otherwise:

(1) `Adjusted gross receipts' means:

(A) the total of all cash and property, including checks received by a licensee, whether collected or not, received by a licensee from gaming operations, minus

(B) the total of all cash paid out as winnings to patrons; and uncollectible gaming receivables, not to exceed the lesser of a reasonable provision for uncollectible patron checks received from gaming operations or two percent of the total of all sums, including checks, whether collected or not, less the amount paid out as winnings to patrons.

For purposes of this definition, a counter or personal check that is invalid or unenforceable under this chapter is considered cash received by the licensee from gaming operations.

(2) `Associated equipment' means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming or with any game that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems for monitoring slot machines, and devices for weighing or counting money.

(3) `Commission' means the South Carolina Gaming Commission.

(4) `Dockside gaming facility' means a floating facility built upon navigable water of this State for the purpose of conducting gaming activities pursuant to this chapter.

(5) `Finding of suitability' means an approval issued by the commission permitting a person to be involved directly or indirectly with a licensee and relates only to the specified involvement for which it is made.

(6) `Game' means those wagering games authorized by the commission, unless prohibited by Article XVII, Section 7 of this state's Constitution, and includes, but is not limited to, baccarat, twenty-one, poker, craps, slot machine, video game, roulette wheel, klondike table, faro layout, or keno layout.

(7) `Gaming' means to deal, operate, carry on, conduct, maintain, or expose for play any game.

(8) `Gaming device' means any mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming or any game which affects the result of a wager by determining win or loss. The term includes a system for processing information which can alter the normal criteria of random selection, which affects the operation of a game, or which determines the outcome of a game. The term does not include a system or device which affects a game solely by stopping its operation so that the outcome remains undetermined.

(9) `Gaming employee' means a person connected directly with that portion of a dockside gaming facility at which games are licensed to be conducted and includes:

(a) boxmen;

(b) cashiers;

(c) change personnel;

(d) counting room personnel;

(e) dealers;

(f) floormen;

(g) hosts or other persons empowered to extend credit or complimentary services;

(h) keno runners;

(i) keno writers;

(j) machine mechanics;

(k) security personnel;

(l) shift or pit bosses; and

(m) supervisors and managers.

The term also includes employees of manufacturers, distributors, or suppliers of slot machines, gaming devices, and associated equipment within this State whose duties are directly involved with the manufacture, repair, or distribution of slot machines, gaming devices and associated equipment. `Gaming employee' does not include hotel employees, entertainers, bartenders, cocktail waitresses, or other persons engaged in preparing or serving food or beverages unless acting in some other capacity.

(10) `Gaming license' means any license issued by the commission which authorizes the person named therein to engage in gaming.

(11) `Gross receipts' means the total amount of cash or other property received from wagering by gaming patrons and includes money exchanged for the purchase of chips, tokens, or electronic cards by gaming patrons.

(12) `Key executive' means an employee of a gaming licensee having the power to exercise a significant influence over decisions concerning any part of the gaming operations of the gaming licensee, or whose compensation exceeds an amount determined by the commission by regulation.

(13) `Navigable water' means those waters of the State which are navigable pursuant to the provisions of Section 49-1-10.

(14) `Occupational license' means any card, certificate, or permit issued by the commission, whether denominated as an occupational license, work permit, registration card or otherwise, authorizing the employment of the holder as a gaming employee.

(15) `Person' means a natural person or any corporation, association, firm, partnership, whether general or limited, trust, or other form of business association.

(16) `Slot machine' means any electronic or electromechanical device, contrivance, or machine which, upon insertion of a coin, token, or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash, premiums, merchandise, tokens, or anything of value, whether the payoff is made automatically from the machine or in any other manner.

(17 `Supplier's license' means any license issued by the commission which authorizes the licensee to manufacture, assemble, produce, program, sell, lease, market, offer or otherwise produce, distribute or make modifications to, any slot machine, gaming device, or associated equipment in this State or from a location outside this State for use by any licensee.

Section 13-23-130. (A) There is created the South Carolina Gaming Commission. The commission consists of five members appointed by the Governor with the advice and consent of the Senate, one of whom must be designated by the Governor as chairman. Of those initially appointed, the Governor must designate one to serve for a term of one year, one to serve for a term of two years, one to serve for a term of three years, and two to serve for a term of four years. After the initial appointments, members shall serve for terms of four years. All members serve until their successors are appointed and qualified. No member may serve more than two full terms. All terms end on July first of the term's last year. The Governor may remove a member only for cause. Vacancies on the commission must be filled in the same manner as the original appointment for the unexpired term.

(B) Each member must have a reasonable knowledge of the practice, procedure, and principles of gaming operations. At least one member must be experienced in law enforcement and criminal investigation, at least one member must be a certified public accountant experienced in accounting and auditing, and at least one member must be a lawyer licensed to practice law in South Carolina. In making these appointments, race, gender, and other demographic factors shall be considered by the Governor to ensure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the state's population.

(C) No person shall be appointed a member of the commission or continue to be a member of the commission if:

(1) the person is, or the person's spouse, child, or parent is employed by a member of the board of directors of or financially interested in any gaming operation subject to the jurisdiction of the commission;

(2) the person is not of good moral character; or

(3) the person has been convicted of, or is under indictment for, a felony under the laws of South Carolina, any other state, or the United States.

(D) Members of the commission shall receive the usual mileage and subsistence as authorized by law for members of state boards, commissions, and committees. Members shall receive as salary an amount equal to three hundred dollars for each meeting attended each month not to exceed one thousand five hundred dollars in any one month.

(E) Before entering upon the discharge of the duties of the office, each commission member must take the oath of office for public officials found in the Constitution and must give bond to the State of South Carolina in the sum of twenty-five thousand dollars. The cost of the bond must be paid by the commission from funds available to the commission.

Section 13-23-140. The commission must meet at least six times a year. All meetings of the commission are subject to the provisions of the Freedom of Information Act. A quorum for the commission is three members. To issue, revoke, or suspend a license under the provisions of this chapter requires the affirmative vote of at least three members. All other action may be taken by simple majority of the commission members, a quorum being present. Meetings may be called by the chairman or, upon at least forty-eight hours written notice of the date, time, and place of the meeting, by any two members. The commission must keep a complete and accurate record of all its meetings.

Section 13-23-150. The commission, upon the approval and with the consultation of the Governor, shall employ an executive director who shall have such authority and perform such duties as may be directed by the commission. The executive director also must be selected, after consultation with and approval by the Governor, upon the advice and consent of the Senate. The salary of the executive director must be fixed by the commission upon approval by the State Budget and Control Board and shall be as provided in the annual general appropriations act.

Section 13-23-160. The commission has all powers necessary and proper to fully and effectively execute the provisions of this chapter, including:

(1) to sue and be sued in its own name;

(2) to make and execute contracts and all other instruments and agreements necessary or convenient for the performance of its duties and the exercise of its powers and functions;

(3) to employ agents, advisers, consultants, and other employees, including attorneys, financial advisers, and other technical advisers and public accountants and to determine their duties and compensation;

(4) to designate employees who are to have the powers of other law enforcement officers of this State, including the powers of agents of the State Law Enforcement Division, when performing their duties, including the power of arrest;

(5) to procure insurance against any loss in connection with its assets or activities, including insurance against liability for its acts or the acts of its employees or agents;

(6) to receive and accept from any source aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this chapter subject to the conditions upon which the aid, grants, or contributions are made;

(7) to enter into agreements with any department, agency, or instrumentality of the United States or this State for the purpose of regulating and controlling dockside gaming facilities and to enforce the provisions of this chapter;

(8) to establish and revise, amend and repeal, and collect fees and charges in connection with any commission activity and to dispose of any revenue collected pursuant to this chapter in accordance with the provisions of this chapter;

(9) to investigate applicants for any license authorized to be issued under this chapter, to determine the eligibility of applicants for licenses, and to select from competing applicants for the issuance of a license the applicant which best serves the interests of the citizens of South Carolina;

(10) to exercise jurisdiction over and to supervise all dockside gaming facilities, games, and all persons at dockside gaming facilities where gaming operations are conducted;

(11) to promulgate regulations, in accordance with the Administrative Procedures Act, for the purpose of implementing and administering the provisions of this chapter and to prescribe regulations and conditions under which all gaming in this State must be conducted. When promulgating regulations, the commission must provide:

(a) for the prevention of practices detrimental to the public interest; and

(b) regulations which protect and enhance the credibility and integrity of dockside gaming facilities;

(12) to inspect and investigate dockside gaming facilities by entering the offices, facilities, or other places of business of a licensee where evidence of the compliance or noncompliance with the provisions of this chapter is likely to be found and to be present through its inspectors and agents any time gaming operations are conducted at any dockside gaming facility for the purpose of certifying the revenue thereof, receiving complaints from the public, and conducting other investigations into the conduct of the games and the maintenance of slot machines, gaming devices, and associated equipment;

(13) to review any licenses issued under the provisions of this chapter and to investigate alleged violations of this chapter or the regulations of the commission and to take appropriate disciplinary action against any licensee including the imposition of penalties for a violation or the institution of appropriate legal action for enforcement;

(14) to adopt standards for the licensing of all dockside gaming facilities, their owners and operators, gaming employees, manufacturers, distributors, suppliers, slot machines, gaming devices, and associated equipment;

(15) to adopt standards and conditions by which all licensees must conduct the activity for which a license is issued;

(16) to require that the records, including financial or other statements, of any licensee must be kept in the manner prescribed by the commission;

(17) to require any person involved in the ownership or management of a dockside gaming facility to submit financial statements including balance sheets and income statements, listings of the stockholders or other persons having a five percent or greater beneficial interest in the activities of each licensee, and any other information necessary to effectively administer and enforce the provisions of this chapter and the regulations, orders, and final decisions of the commission;

(18) to conduct hearings, issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other pertinent documents in accordance with Section 1-23-320(d), administer oaths and affirmations to witnesses, receive and weigh testimony, and issue orders when the commission considers it necessary to administer or enforce this chapter or the commission's regulations;

(19) to prescribe the forms which must be used by any licensee involved in the ownership or management of dockside gaming facilities as applications for employment for the dockside gaming facilities' employees;

(20) to issue, suspend, condition, or revoke any license authorized by this chapter, including renewal licenses, in any manner the commission may see fit so long as the commission's action is in compliance with the provisions of this chapter relating to administrative procedures;

(21) to suspend or condition any license authorized by this chapter without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by the licensee or the condition of the licensee's facilities; any suspension or condition must remain in effect until the commission determines that the cause for the suspension or condition has been abated; a license may be revoked upon a determination that the licensee has not made satisfactory progress toward abating the hazard;

(22) to eject or exclude, or authorize the ejection or exclusion of, any person from a dockside gaming facility when:

(a) the person is in violation of this chapter, regulations of the commission, or final orders of the commission; or

(b) the person's conduct or reputation is such that the person's presence within the dockside gaming facility, in the opinion of the commission, may call into question the honesty and integrity of the gaming operations or interfere with the orderly conduct thereof. Any person who is the subject of a commission ejection or exclusion order may request a hearing before the commission;

(23) to require the removal of a licensee or an employee of a licensee for a violation of this chapter or a commission regulation, or for engaging in a fraudulent practice;

(24) to establish minimum levels of insurance to be maintained by licensees; and

(25) to delegate the execution of any of its powers under this chapter for the purpose of administering and enforcing this chapter and the commission's regulations; and

(26) to take any other action as may be reasonable or appropriate to enforce this chapter and the commission's regulations.

Section 13-23-170. (A) The commission may seek, and must receive, the cooperation of the State Law Enforcement Division in conducting background investigations of any applicant for a license under this chapter and in enforcing the provisions of this chapter. Costs incurred by the State Law Enforcement Division as a result of such cooperation must be paid by the commission.

(B) Whenever the commission is authorized or required by law to consider some aspect of a person's criminal history, upon request and payment of fees by the commission, the State Law Enforcement Division is authorized to furnish, subject to positive identification, the person's criminal history record information, as is contained in state files, that is necessary to fulfill the request.

(C) The commission may review and rule upon any complaint by a licensee regarding any investigative procedures of the commission which are unnecessarily disruptive of gaming operations. The need to inspect and investigate is presumed at all times. The disruption of a licensee's operations must be proved by clear and convincing evidence which establishes that the procedures had no reasonable law enforcement purpose, or the procedures were so disruptive as to unreasonably inhibit gaming operations.

(D) In order to determine the applicant's suitability to receive a gaming license, a supplier's license, an occupational license, or if the commission is considering a finding of suitability, the applicant must be fingerprinted when required by the licensing provisions of this chapter and the fingerprints must be forwarded by the State Law Enforcement Division or processed through the State Law Enforcement Division to the Federal Bureau of Investigation for a national criminal history record check. The State Law Enforcement Division must provide the results of the national criminal history record check to the commission for its consideration in making the license decision.

Section 13-23-180. Records of the commission are subject to the following requirements:

(1) The Freedom of Information Act applies to records of the commission.

(2) In addition to the disclosure requirements of the Freedom of Information Act, the commission, on written request from any person, must provide information furnished by an applicant or licensee concerning the applicant or licensee, the applicant's or licensee's products, services or gaming enterprises, and the applicant's or licensee's business holdings, as follows:

(a) the name, business address, and business telephone number of any applicant or licensee;

(b) the identification of any applicant or licensee and if the applicant or licensee is not an individual, the state of incorporation or registration, the corporate officers, and the identity of all shareholders or participants in the corporation with a beneficial interest of five percent or more. If an applicant or licensee has a pending registration statement filed with the Securities and Exchange Commission, only the names of those persons or entities holding a beneficial interest of five percent or more must be provided;

(c) the identification of any business including, if applicable, the state of incorporation or registration, in which an applicant, licensee, or an applicant's or licensee's spouse or children has an equity interest of more than five percent. If an applicant or licensee is a corporation, partnership, or other business entity, the applicant or licensee must identify any other corporation, partnership, or business entity in which it has an equity interest of five percent or more including, if applicable, the state of incorporation or registration. An applicant or licensee is not required to provide this information if the applicant or licensee is a corporation, partnership, or other business entity that has a pending registration statement filed with the Securities and Exchange Commission;

(d) whether an applicant or licensee has been indicted, convicted, pleaded guilty or nolo contendere, or forfeited bail concerning any felony or misdemeanor criminal offense, except for traffic violations, under the laws of any jurisdiction including the date, name, and location of the court, the arresting and prosecuting agencies, the case number, offense, disposition, location, and length of incarceration;

(e) whether an applicant or licensee has had any license or certificate issued by a licensing authority in South Carolina or any other jurisdiction denied, restricted, suspended, revoked, or not renewed and a statement describing the facts and circumstances concerning the denial, restriction, suspension, revocation, or nonrenewal including the licensing authority, the date each action was taken, and the reason for each action;

(f) whether an applicant or licensee has ever filed or had filed against it a proceeding in bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt including the date of filing, name and location of the court, case number, and the disposition of the case;

(g) whether an applicant or licensee has filed, or been served with a complaint or other notice filed with any public body, regarding the delinquency in the payment of or a dispute over the filings concerning the payment of any tax required under federal, state, or local law including the amount, type of tax, the taxing agency, time periods involved, and disposition;

(h) the names and titles of all public officials or employees of any agency or department of state or local government in South Carolina, and family members of any public official or employee who, directly or indirectly, own any financial interest of five percent or more in, have any beneficial interest of five percent or more in, are the creditors of or hold five percent or more of any debt instrument issued by, or hold or have any interest in any contractual or service relationship with, an applicant or licensee. For purposes of this item, the term `family member' is defined as provided in Section 8-13-100(15);

(i) whether an applicant or licensee has made, directly or indirectly, any contribution, as defined in Section 8-13-1300(7), or other payments, to any candidate or officeholder in South Carolina, within three years from the date of filing the application, including the amount and the method of payment;

(j) the name and business telephone number of the counsel representing an applicant or licensee in matters before the commission;

(k) a description of any proposed or approved dockside gaming facility, including the type of facility, its location, expected economic benefit to the community, anticipated or actual number of employees, any statement from an applicant or licensee regarding compliance with federal and state affirmative action guidelines, projected or actual admissions, and projected or actual adjusted gross receipts;

(l) a description of the product or service to be supplied by an applicant for a supplier's license.

(3) Notwithstanding any other provision of law to the contrary, the commission, on written request from any person, also must provide:

(a) the amount of the wagering tax paid daily to the State of South Carolina by the holder of a gaming license;

(b) a copy of the written letter outlining the reasons for the denial of a license when the commission has denied an applicant a gaming license; and

(c) a copy of the letter outlining the reasons for the refusal to allow an applicant to withdraw an application when the commission has refused to allow an applicant to withdraw an application.

(4) Except as otherwise provided in this section, the commission must not disclose any information which would be barred from disclosure by Section 30-4-40.

(5) The commission may establish and collect charges for the actual cost of searching for or making copies of records subject to disclosure under this section and the Freedom of Information Act in accordance with Section 30-4-30(b).

Section 13-23-190. The commission must make an annual report to the Governor and the General Assembly no later than October thirty-first for the period ending June thirtieth of each year. The report must include an account of the commission's actions taken during the reporting period, its financial position and results of operation including a statement of receipts and disbursements, and any additional information or recommendations which the commission considers advisable.

Section 13-23-200. Pursuant to 15 U.S.C.A. Sections 1171-1178, the State of South Carolina, acting by and through the duly elected and qualified members of its General Assembly, does hereby in this section, and in accordance with and in compliance with the provisions of Section 1172 above referenced declare and proclaim that it is exempt from the provisions of Section 1172.

All shipments of gaming devices, including slot machines and any other machines or mechanical devices designated and manufactured primarily for use in connection with gaming, into this State, the registering, recording, and labeling of which has been duly had by the manufacturer or dealer thereof in accordance with Sections 1173 and 1174 above referenced, shall be considered legal shipments thereof into this State, so long as the shipments are made by or to the holder of or an applicant for a gaming or supplier's license issued as provided in this chapter.

Section 13-23-300. (A) No person may conduct games at a dockside gaming facility unless the commission has issued a gaming license to the person.

(B) The commission is authorized to issue not more than six gaming licenses in this State. A gaming license may be issued for a dockside gaming facility only in the counties of Charleston, Horry, Jasper, Orangeburg, and Richland. No more than two dockside gaming facilities may be located in any one county.

(C) A gaming license must not be issued to a person to conduct games at a dockside gaming facility in a county listed in subsection (B) unless the qualified electors of the county, or if the dockside gaming facility is located in a municipality, the qualified electors of the municipality, have conducted a referendum as provided in Section 13-23-320 and the results are favorable.

Section 13-23-310. (A) A qualified person may apply to the commission for a gaming license to conduct games at a dockside gaming facility. The application must be made on forms provided by the commission and the applicant must submit any information required by this chapter or as the commission prescribes. An application which contains material omissions or misrepresentations is cause for denial of a gaming license.

(B) Applications for a gaming license must be filed with the commission at such time as the commission may set for receiving applications.

(C) The commission's gaming license application form must provide for, at a minimum, the identity of the dockside gaming facility at which the gaming operation is to be conducted, the exact location of the facility including the identity of the navigable water on which the dockside gaming facility will be located, detailed information regarding the ownership and management of the applicant, and detailed personal information regarding the applicant.

(D) Applicants for a gaming license must submit with the application all documents, resolutions, and letters of support from the governing body that represents the municipality or county where the dockside gaming facility shall be located.

(E) In addition to information contained on the commission's gaming license application form, if not contained on the form, the gaming license applicant must disclose at the time of filing the gaming license application form the identify of every person, association, trust, or corporation who has or will have a greater than five percent direct or indirect pecuniary interest in the dockside gaming facility with respect to which the gaming license is sought. If the identity of the person, association, trust, or corporation with a five percent direct or indirect pecuniary interest is a trust, then the applicant must disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors with a five percent or more beneficial interest in the corporation; if a partnership, the names and addresses of all partners.

(F) Each gaming license applicant must submit with the gaming license application, on forms provided by the commission, two sets of the gaming license applicant's fingerprints.

(G) At the time of filing the gaming license application, the gaming license applicant must include certified checks for the following fees:

(1) a nonrefundable application fee of one hundred thousand dollars. The commission must use the fee to defray the costs associated with conducting a background investigation on the applicant and with processing the application. If the costs of investigating the applicant and processing the application exceed one hundred thousand dollars, the applicant must pay the additional amount to the commission;

(2) a nonrefundable fee set by the State Law Enforcement Division by regulation to defray the costs associated with the search and classification of fingerprints obtained by the commission with respect to the gaming license application. The commission must forward the fee to the division.

(H) The gaming license applicant must include in the gaming license application assurances that economic development will occur in the jurisdiction in which the dockside gaming facility shall be located, and that adequate infrastructure and site preparation will be provided to support the dockside gaming facility.

(I) The gaming license applicant must include in the gaming license application the identity of each dockside gaming facility the applicant intends to use and certify that the dockside gaming facility:

(1) is accessible to disabled persons;

(2) conforms to local architectural standards; and

(3) is or will be fully registered, licensed, and permitted in accordance with any applicable laws.

(J) The gaming license applicant must include in the gaming license application the applicant's certification that the applicant commits to a capital investment of at least seventy-five million dollars.

(K) Except as provided in Section 13-23-180, all information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the commission in the course of its review or investigation of a gaming license application is privileged, strictly confidential, and must be used only for the purpose of investigating and evaluating a gaming license applicant. The information, records, interviews, reports, statements, memoranda, or other data is not admissible as evidence or discoverable in any action of any kind in any court or before any tribunal, board, agency or person, except for any action considered necessary by the commission.

(L) A person who knowingly makes a false statement on a gaming license application is guilty of a misdemeanor and, upon conviction, must be punished by imprisonment for not more than one year or by a fine of not more than two thousand dollars, or both.

Section 13-23-320. (A) Upon receipt of a timely and complete gaming license application, the commission must begin a background investigation using the information in the gaming license application as a basis for a thorough investigation which the commission must conduct with respect to each applicant.

(B) The commission may request and must receive the assistance of the State Law Enforcement Division in conducting the background investigation on a gaming license applicant. The commission must reimburse the division, from the fee imposed by Section 13-23-310(G)(1), for any cost incurred in assisting the commission to conduct the investigation and evaluation of the gaming license applicant.

(C) Within ten days after receipt of the gaming license application, the commission must notify the governing body and election commission of the county in which the gaming license applicant intends to operate a dockside gaming facility if the dockside gaming facility shall be located in an unincorporated area of the county. If the dockside gaming facility shall be located in a municipality, then the notice must be provided to the governing body and election commission of the municipality. The notice must inform these entities of the receipt of the gaming license application. Upon receipt of the notice by these entities, the appropriate election commission must conduct a referendum not less than ninety nor more than one hundred twenty days after receiving the notice from the commission. If the time for conducting the referendum is within sixty days of a general election, then the referendum must be held at the time of the general election. The election commission must cause a notice of the referendum to be published in a newspaper of general circulation in the jurisdiction at least seven days before the referendum. The state election laws apply to the referendum mutatis mutandis. The question on the ballot must read substantially as follows: `Shall the South Carolina Gaming Commission be authorized to issue gaming licenses in this (county) (municipality)?'

The election commission must publish the results of the referendum and certify them to the commission. If a majority of the qualified electors voting in the referendum vote in favor of the issuance of gaming licenses in the jurisdiction, then the commission may issue a gaming license to the gaming license applicant, and any other gaming license applicant requesting a gaming license for the jurisdiction in subsequent years, if all other requirements of this chapter are met. The expenses of the referendum must be paid by the South Carolina Gaming Commission. The commission must assess the cost of the referendum conducted pursuant to the provisions of this subsection among the applicants for a license in the jurisdiction on a pro rata basis. The gaming license applicant must pay the assessment within thirty days of receipt. A referendum for this purpose may not be held in that jurisdiction more often than once in twenty-four months. The referendum provided for in this subsection is not required if the jurisdiction has conducted a referendum as provided in subsection (D).

(D) A county or municipal election commission must conduct a referendum on the question of whether the commission should be authorized to issue gaming licenses in the county or municipality upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the jurisdiction. In addition, the county or municipal election commission must conduct a referendum if the county or municipal governing body adopts a resolution requesting the election commission to conduct a referendum. The election commission must conduct the referendum in not less than ninety nor more than one hundred twenty days after receiving the petition or resolution. If the time for conducting the referendum is within sixty days of a general election, then the referendum must be held at the time of the general election. The election commission must cause a notice of the referendum to be published in a newspaper of general circulation in the jurisdiction at least seven days before the referendum. The state election laws apply to the referendum mutatis mutandis. The question on the ballot must read substantially as follows: `Shall the South Carolina Gaming Commission be authorized to issue gaming licenses in this (county) (municipality)?'

The election commission must publish the results of the referendum and certify them to the commission. If a majority of the qualified electors voting in the referendum vote in favor of the issuance of gaming licenses in the jurisdiction, then the commission may issue a gaming license to a gaming license applicant without conducting the referendum as provided in subsection (C) if all other requirements of this chapter are met. The expenses of this referendum must be paid by the South Carolina Gaming Commission if the commission has issued less than six gaming licenses and when there is an application for a gaming license in the jurisdiction in which the referendum is held. The commission must assess the cost of the referendum among the applicants for a license in the jurisdiction on a pro rata basis. Any assessment by the commission must be paid within thirty days of receipt. A referendum conducted as provided in this subsection may not be held in that jurisdiction more often than once in twenty-four months.

Section 13-23-330. (A) The commission may issue a gaming license to a gaming license applicant upon a determination by the commission that the gaming license applicant is eligible for a gaming license pursuant to the provisions of this chapter and the regulations of the commission. After a determination to award a gaming license, the gaming licensee must pay a license fee of twenty-five thousand dollars for the first year of operation to the commission before the commission may deliver the gaming license to the gaming licensee. Only one gaming operation may be authorized at a dockside gaming facility. The commission must not allow a person to manage more than two dockside gaming facilities.

(B) The commission must not issue a gaming license to a person if:

(1) the person has been convicted of a felony under the laws of this State, or convicted in another state of an offense that is a felony under the laws of this State, or convicted of a felony under the laws of the United States;

(2) the person has been convicted of any violation of Chapter 19 of Title 16 or substantially similar laws of any other jurisdiction;

(3) the person has submitted a gaming license application which contains false information;

(4) the person is a member of the commission;

(5) a person defined in (1), (2), (3), or (4) is an officer, director, or key executive of the firm or corporation;

(6) the person employs a person defined in (1), (2), (3), or (4) who participates in the management or operation of gaming operations authorized under this chapter;

(7) at the time of the initial approval of the gaming license, the location of the dockside gaming facility is within five hundred feet within a county and within three hundred feet in a municipality of a public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; or an establishment, other than a private dwelling, where religious services are usually conducted;

(8) the gaming license applicant has not committed to a capital investment of at least seventy-five million dollars; or

(9) a license of the person, firm, or corporation issued under this chapter, or a license to own or operate gaming facilities in any other jurisdiction, has been revoked.

(C) The applicant for a gaming license has the burden of proving:

(1) the applicant is a person of good character, honesty, and integrity;

(2) the applicant is a person whose prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this State or to the effective regulation and control of gaming;

(3) the applicant has adequate business probity, competence, and experience, in gaming or generally; and

(4) the proposed financing of the entire dockside gaming facility is adequate for the nature of the proposed operation and is from a suitable source.

(D) In determining whether to issue a gaming license to a gaming license applicant, the commission must consider:

(1) the character, reputation, experience, and financial integrity of the gaming license applicants and of any other or separate person that either:

(a) controls, directly or indirectly, the gaming license applicant, or

(b) is controlled, directly or indirectly, by the gaming license applicant or by a person which controls, directly or indirectly, the gaming license applicant;

(2) the nature and scope of the proposed dockside gaming facility;

(3) the highest prospective total revenue to be derived by the state and local governments from the dockside gaming facility;

(4) (a) the affirmative action plan of each applicant to recruit, train, and upgrade minorities in all employment classifications;

(b) the applicant's past and proposed minority procurement program;

(c) the participation, if any, by minorities resident in South Carolina in the ownership of the dockside gaming operation; and

(d) the applicant's past minority employment practices;

(5) the financial ability of the gaming license applicant to purchase and maintain adequate liability and casualty insurance;

(6) whether the gaming license applicant has adequate capitalization to provide and maintain, for the duration of a gaming license, a dockside gaming facility;

(7) the economic benefit which gaming confers on the area and the state; and

(8) the extent to which the gaming license applicant exceeds or meets other standards for the issuance of a gaming license which the commission may adopt by regulation.

(E) The commission must give added weight to a gaming license application that proposes to locate in an economically depressed area or that proposes to provide for significant economic development over a large geographic area.

(F) Each gaming license issued by the commission must specify the location of the dockside gaming facility, the place where gaming may be conducted within the dockside gaming facility, and the name of the person primarily responsible for the facility.

(G) The commission must make its decision on whether to issue a gaming license to the gaming license applicant not later than ninety days after the completion of the background investigation and the recommendation, if any, of the commission's executive director or one year from the date the gaming license application is filed with the commission, whichever occurs first. The commission must inform each gaming license applicant of the commission's decision.

(H) The commission may revoke a gaming license if the gaming licensee fails to begin regular gaming operations within twenty-four months of the commission's decision to issue a gaming license to the gaming license applicant if the commission determines that revocation is in the best interest of the State.

(I) Discrimination based on race, sex, color, creed, national origin, age, or disability may be grounds for the commission to deny the issuance or renewal of a gaming license or to revoke or suspend a gaming license.

Section 13-23-340. A gaming license must be renewed annually upon payment of a ten thousand dollars gaming license renewal fee and upon a determination by the commission that the gaming licensee is in compliance with this chapter and the commission's regulations, and that the gaming licensee remains eligible for a gaming license.

Section 13-23-350. Not later than thirty days after a gaming license is issued by the commission, the gaming licensee must post a bond in the sum of two hundred thousand dollars to the State of South Carolina. The bond must be used to guarantee that the gaming licensee faithfully makes the payments, keeps books and records, makes reports, and conducts games in conformity with this chapter and the commission's regulations. The bond must not be canceled by a surety on less than thirty days' notice in writing to the commission. If a bond is canceled and the gaming licensee fails to file a new bond with the commission in the required amount on or before the effective date of cancellation, the gaming license must be suspended until a new bond is filed with the commission. If a new bond is not filed within thirty days of the suspension, then the gaming license must be revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.

Section 13-23-360. Gaming must be conducted at dockside gaming facilities by gaming licensees in accordance with the following requirements and any other requirement that may be imposed by the commission by regulation or as a condition of a gaming license:

(A) Gaming licensees must:

(1) set the minimum and maximum wagers on games;

(2) allow agents of the commission and the State Law Enforcement Division to enter and inspect any dockside gaming facility at any time for the purpose of determining whether this chapter is being complied with;

(3) allow employees of the commission to be present at the dockside gaming facility or in or about adjacent facilities under the control of the licensee; and

(4) purchase or lease slot machines, gaming devices, and associated equipment customarily used in conducting games only from persons with a supplier's license issued under the provisions of this chapter.

(B) Gaming licensees must not:

(1) permit any form of wagering or games that are not authorized by the commission;

(2) receive wagers from a person that is not present at a licensed dockside gaming facility. No person present at a licensed dockside gaming facility shall place or attempt to place a wager on behalf of another person who is not present at the dockside gaming facility;

(3) permit a person under age twenty-one to be present in an area of a dockside gaming facility where gaming is being conducted, except for a person at least eighteen years of age who is an employee of the dockside gaming facility;

(4) permit an employee under age twenty-one to perform any function involved in gaming by the patrons; and

(5) permit a person under age twenty-one to make a wager.

(C) No gaming may be conducted with anything other than approved chips, tokens, electronic cards, or United States coin or currency.

Section 13-23-370. (A) All tokens, chips, or electronic cards used to make wagers must be purchased from a gaming licensee at places on the dockside gaming facility approved by the commission. Tokens, chips, or electronic cards must be used only for the purpose of making wagers on games.

(B) Tokens, chips, or electronic cards may be purchased from the gaming licensee by means of an agreement under which the gaming licensee extends credit to the patron.

(C) Notwithstanding any other provision of law to the contrary, a gaming licensee who extends credit to a dockside gaming facility patron pursuant to subsection (B) is expressly authorized to institute a cause of action to collect any amounts due and owing under the extension of credit, as well as the gaming licensee's costs, expenses, and reasonable attorney's fees incurred in collecting the amount due under the credit agreement.

Section 13-23-380. Not later than ninety days after the end of each quarter of each fiscal year, the gaming licensee must transmit to the commission an audit of the financial transactions and condition of the gaming licensee's total accounts. The audit must be conducted by a certified public accountant selected by the commission. Each certified public accountant must be registered or licensed in the State of South Carolina pursuant to Chapter 1 of Title 40. The compensation for each certified public accountant must be paid directly by the gaming licensee to the certified public accountant.

Section 13-23-390. By January thirtieth of each year, each gaming licensee must submit to the State Commission for Minority Affairs, created pursuant to Chapter 31 of Title 1, an annual report which must include the number of minorities employed by employment classification. The annual report must summarize the licensee's utilization of minority firms in the procurement of goods and services and must include the type of products and services procured, the percentage procured from minority firms as compared to total dollars expended to procure all goods and services by the licensee. Failure to provide the annual report to the State Commission on Minority Affairs may be grounds for the South Carolina Gaming Commission to deny the renewal of a gaming license.

Section 13-23-500. (A) No person may manufacture, assemble, produce, program, sell, lease, market, offer or otherwise produce, distribute, or make modifications to any slot machine, gaming device, and associated equipment unless the commission has issued a supplier's license to the person.

(B) All slot machines, gaming devices, and associated equipment used by a gaming licensee must be obtained from a person who has been issued a supplier's license by the commission. Nothing in this article shall be construed to prevent a gaming licensee from owning its own slot machines, gaming devices, and associated equipment.

Section 13-23-510. (A) A qualified person may apply to the commission for a supplier's license to provide slot machines, gaming devices, or associated equipment to holders of gaming licenses at dockside gaming facilities. The application must be made on forms provided by the commission and the applicant must submit any information required by this chapter or as the commission prescribes. An application which contains material omissions or misrepresentations is cause for denial of a supplier's license.

(B) The applicant for a supplier's license must furnish to the commission a list of all types of slot machines, gaming devices, and associated equipment the applicant proposes to make available to gaming licensees.

(C) The commission's supplier's license application form must provide for, at a minimum, the name of the proposed licensee, the location of the proposed operation, the gaming devices, associated equipment, and slot machines to be provided, and the names of all persons who have a beneficial interest of five or more percent in the business and the nature of the interest.

(D) In addition to information contained on the commission's supplier's license application form, if not contained on the form, the supplier's license applicant must disclose at the time of filing the supplier's license application form the identity of every person, who has or will have a greater than five percent direct or indirect pecuniary interest in the supplier with respect to which the supplier's license is sought. If the identity of the person with a five percent direct or indirect pecuniary interest is a trust, then the applicant must disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all directors and all stockholders with a five percent or more beneficial interest in the corporation; and, if a partnership, the names and addresses of all partners.

(E) Each applicant for a supplier's license must submit with the supplier's license application, on forms provided by the commission, two sets of the supplier's license applicant's fingerprints.

(F) At the time of filing the supplier's license application, the applicant must include checks for:

(1) a nonrefundable application fee of fifty thousand dollars. The commission must use the fee to defray the costs associated with conducting a background investigation on the applicant and with processing the application. If the costs of investigating the applicant and processing the application exceed fifty thousand dollars, the applicant must pay the additional amount to the commission;

(2) a nonrefundable fee set by the State Law Enforcement Division by regulation to defray the costs associated with the search and classification of fingerprints obtained by the commission with respect to the supplier's license application. The commission must forward the fee to the division.

(G) Except as provided in Section 13-23-180, all information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the commission in the course of its review or investigation of an applicant for a supplier's license is privileged, strictly confidential and must be used only for the purpose of investigating and evaluating a supplier's license applicant. The information, records, interviews, reports, statements, memoranda, or other data is not admissible as evidence or discoverable in any action of any kind in any court or before any tribunal, board, agency, or person, except for actions considered necessary by the commission.

(H) Any person who knowingly makes a false statement on a supplier's license application is guilty of a misdemeanor and, upon conviction, must be punished by imprisonment for not more than one year or a fine of not more than two thousand dollars, or both.

Section 13-23-520. (A) The commission may issue a supplier's license to an applicant upon a determination by the commission that the applicant is eligible for a supplier's license pursuant to the provisions of this chapter and the regulations of the commission. After a determination to award a supplier's license, the supplier's licensee must pay a license fee of ten thousand dollars for the first year of operation to the commission before the commission may deliver the supplier's license to the supplier's licensee.

(B) The commission must not issue a supplier's license to a person if:

(1) the person has been convicted of a felony under the laws of this State, or convicted in another state of an offense that is a felony under the laws of this State, or convicted of a felony under the laws of the United States;

(2) the person has been convicted of any violation of Chapter 19 of Title 16, or substantially similar laws of any other jurisdiction;

(3) the person has submitted an application for a license under this chapter which contains false information;

(4) the person is a member of the commission;

(5) the firm or corporation is one in which a person defined in (1), (2), (3), or (4), is an officer, director, or managerial employee;

(6) the person employs a person defined in (1), (2), (3), or (4) who participates in the management or operation of a dockside gaming facility authorized under this chapter;

(7) the license of the person, firm, or corporation issued under this chapter, or a gaming related license issued in any other jurisdiction, has been revoked.

(C) The applicant for a supplier's license has the burden of proving:

(1) the applicant is a person of good character, honesty, and integrity;

(2) the applicant is a person whose prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this state or to the effective regulation and control of gaming;

(3) the applicant has adequate business probity, competence, and experience, in gaming or generally; and

(4) the proposed financing of the applicant's business is adequate for the nature of the proposed operation and is from a suitable source.

(D) In determining whether to issue a supplier's license to a person, the commission must consider:

(1) the character, reputation, experience, and financial integrity of the applicant for a supplier's license and of any other or separate person that either:

(a) controls, directly or indirectly, the supplier's license applicant, or

(b) is controlled, directly or indirectly, by the supplier's license applicant or by a person which controls, directly or indirectly, the applicant for a supplier's license;

(2) the good faith affirmative action plan of each applicant to recruit, train, and upgrade minorities in all employment classifications;

(3) whether the applicant for a supplier's license has adequate capitalization to provide and maintain, for the duration of the supplier's license, a supplier's operation; and

(4) the extent to which the supplier's license applicant exceeds or meets other standards for the issuance of a supplier's license which the commission may adopt by regulation.

(E) Each supplier's license issued by the commission must specify the slot machines, gaming devices, and associated equipment that the licensee may provide to gaming licensees.

(F) The commission must make its decision on whether to issue a supplier's license to the applicant for a supplier's license not later than ninety days after the completion of the background investigation and the recommendation, if any, of the commission's executive director or one year from the date the application for a supplier's license is filed with the commission, whichever occurs first. The commission must inform each applicant for a supplier's license of the commission's decision.

Section 13-23-530. A supplier's license must be renewed annually upon payment of a renewal fee of five thousand dollars and a determination by the commission that the supplier continues to be eligible for a supplier's license and is in conformance with the requirements of this chapter.

Section 13-23-540. (A) A supplier must keep books and records for the furnishing of slot machines, gaming devices, and associated equipment to a gaming licensee which are separate and distinct from any other business that the supplier might operate.

(B) The person issued a supplier's license must file a quarterly return with the commission which lists and identifies all transactions involving slot machines, gaming devices, and associated equipment for the quarter.

(C) Each holder of a supplier's license must file an annual report with the commission listing its inventories of slot machines, gaming devices, and associated equipment.

(D) A supplier must permanently affix its name to all its slot machines, gaming devices, and associated equipment unless the commission determines that this requirement is not practical for a particular item.

Section 13-23-550. Any slot machines, gaming devices, and associated equipment provided by any licensed supplier may be repaired either at the dockside gaming facility or removed from the dockside gaming facility to a facility owned by the holder of a gaming or supplier's license.

Section 13-23-560. (A) The commission may determine the suitability, or may require the licensing, of any person who furnishes services or property to a gaming licensee under any arrangement pursuant to which the person receives payments based on earnings, profits, or receipts from gaming. The commission may require any such person to comply with the requirements of this chapter and with the regulations of the commission. If the commission determines that any such person is unsuitable, it may require the arrangement to be terminated.

(B) The commission may require the application of any person for a determination of suitability to be associated with a gaming licensee if the person:

(1) does business on the premises of a dockside gaming facility;

(2) is a junket representative or does business with a gaming licensee as a ticket purveyor, a tour operator, the operator of a bus program, or as the operator of any other type of travel program or promotion; or

(3) provides any goods or services to a gaming licensee for a compensation which the commission finds to be grossly disproportionate to the value of the goods or services.

(C) If the commission determines that the person is unsuitable to be associated with a gaming licensee, the association must be terminated. Any agreement which entitles a business other than gaming to be conducted on the premises, or entitles a person other than a gaming licensee to conduct business with the gaming licensee, is subject to termination upon a finding of unsuitability of the person associated therewith. Every such agreement must be considered to include a provision for its termination without liability on the part of the gaming licensee upon a finding by the commission that the person associated therewith is unsuitable to be associated with the gaming licensee. Failure expressly to include that condition in the agreement is not a defense in an action brought pursuant to this section to terminate the agreement. If the application is not presented to the commission within thirty days following demand or the unsuitable association is not terminated, the commission may pursue any remedy or combination of remedies provided in this chapter.

(D) A finding of suitability must not be granted by the commission unless the commission is satisfied that the person is:

(1) a person of good character, honesty, and integrity;

(2) a person whose prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this State or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; and

(3) in all other respects qualified to be found suitable consistent with the laws of this State.

(E) The commission must investigate the qualifications of each applicant for a finding of suitability before the finding is made by the commission. An applicant for a finding of suitability may be required to pay an application fee of not more than ten thousand dollars to defray the costs of the commission's investigation.

Section 13-23-570. Any slot machines, gaming devices, and associated equipment provided to a gaming licensee by a supplier licensed under this article must conform to any standards adopted by the commission by regulation. The commission may establish or employ a gaming laboratory to test slot machines, gaming devices, and associated equipment for compliance with applicable standards.

Section 13-23-700. No person may be employed by a dockside gaming facility as a gaming employee unless the commission has issued an occupational license to the person.

Section 13-23-710. (A) A qualified person may apply to the commission for an occupational license to be a gaming employee at a dockside gaming facility. The application must be made on forms provided by the commission and the applicant must submit any information required by this chapter or as the commission prescribes. An application which contains material omissions or misrepresentations is cause for denial of an occupational license.

(B) The commission's occupational license application form must provide for, at a minimum, whether the applicant has been issued prior gaming related licenses; whether the applicant has been licensed in any other state under any other name, and, if so, the name and whether or not a permit or license issued to the applicant in any other state has been suspended, restricted, or revoked and, if so, for what reason and period of time.

(C) Each applicant for an occupational license must submit with the application, on forms provided by the commission, two sets of the applicant's fingerprints.

(D) At the time of filing the occupational license application, the occupational license applicant must provide for the payment of the following fees:

(1) a nonrefundable application fee of fifty dollars. If the occupational license is for a person who is a key executive, then the fee is two hundred fifty dollars. The commission must use the fee to defray the costs associated with conducting a background investigation on the applicant and with processing the application; and,

(2) a nonrefundable fee set by the State Law Enforcement Division by regulation to defray the costs associated with the search and classification of fingerprints obtained by the commission with respect to the occupational license application. The commission must remit this portion of the fee to the division.

(E) A person who knowingly makes a false statement on an occupational license application is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than two hundred dollars or by imprisonment for not more than thirty days.

Section 13-23-720. Upon receipt of a complete occupational license application, the commission must begin a background investigation using the information in the occupational license application as a basis for an investigation which the commission must conduct with respect to each applicant. At a minimum, the background investigation must include a criminal records search and a fingerprint search and classification. If the occupational license applicant will hold a key executive position with the dockside gaming facility, then the occupational license applicant is subject to background investigations similar to those required of applicants for a gaming license.

Section 13-23-730. (A) The commission may issue an occupational license to an occupational license applicant upon a determination by the commission that the occupational license applicant is eligible for an occupational license pursuant to the provisions of this chapter and the regulations of the commission.

(B) The commission must not issue an occupational license to a person if:

(1) the person has been convicted of a felony, a violation of Chapter 19 of Title 16 or a similar statute of any other jurisdiction, or a crime involving dishonesty or moral turpitude;

(2) the person is not at least twenty-one years of age if the applicant will perform any function involved in gaming by patrons. Any applicant seeking an occupational license for a nongaming function must be at least eighteen years of age unless otherwise required by law;

(3) the person has not demonstrated a level of skill or knowledge which the commission determines to be necessary in order to conduct gaming at a dockside gaming facility; or,

(4) the person has not met standards for the holding of an occupational license as contained in the commission's regulations.

(C) The commission may in its discretion refuse to issue an occupational license to a person whose prior gaming related license or application therefor has been suspended, restricted, revoked, or denied for just cause in any other state. The commission may deny an occupational license to a person for any just cause.

(D) An occupational license is valid for a period of one year from the date of issuance.

Section 13-23-740. The commission may suspend, revoke, or place a condition on any occupational licensee:

(1) for violation of any provision of this chapter;

(2) for violation of any of the commission's regulations;

(3) for any cause which, if known to the commission, would have disqualified the applicant from receiving the license;

(4) for default in the payment of any obligation or debt due to the State of South Carolina; or

(5) for any other just cause.

Section 13-23-750. (A) Nothing in this chapter shall be interpreted to prohibit a gaming licensee from entering into an agreement with a public or private institution or school for the training of any occupational licensee. Any training offered by an institution or a school must be in accordance with a written agreement between the gaming licensee and the institution or school.

(B) Any training provided for occupational licensees may be conducted at either the dockside gaming facility or at an institution or a school with which a gaming licensee has entered into an agreement pursuant to subsection (A).

(C) Nothing in this chapter shall be interpreted to prohibit a gaming licensee from operating a school for the training of any occupational licensee.

Section 13-23-900. (A) Annually, by July first, each gaming licensee must pay to the commission a license fee of five hundred dollars for each table game at the gaming licensee's dockside gaming facility. The license fee is imposed on each table game offered for play on each day by the dockside gaming facility licensee during the year for which the fee is charged.

(B) For purposes of subsection (A), the number of table games offered for play on a day is equal to the maximum number of all table games that may be conducted in the space licensed for games at the dockside gaming facility on that day as authorized by the commission. The commission may audit a dockside gaming facility to determine compliance with this section.

(C) For purposes of subsection (A), table games include all games defined in Section 13-23-120(6) except for those games involving slot machines or other gaming devices subject to the fee imposed by subsection (D).

(D) Annually, by July first, each gaming licensee must pay to the commission a license fee of five hundred dollars for each slot machine or other gaming device offered by the gaming licensee at the gaming licensee's dockside gaming facility which is not subject to the license fee imposed by subsection (A). For purposes of determining the number of slot machines or other gaming devices offered by the gaming licensee, the number is equal to the total number of slot machines or other gaming devices that may be authorized for use in the space licensed for gaming by the commission on that day. The commission may audit the gaming licensee to determine compliance with this subsection.

(E) All revenues collected pursuant to this section must be deposited in the state general fund.

Section 13-23-910. A tax, at the rate of twelve percent, is imposed on the adjusted gross receipts received from games at dockside gaming facilities. The tax must be paid by the gaming licensee to the commission no later than the end of the next business day after the close of the business day when the wagers were made. Seventy-five percent of the revenue must be credited to the general fund of the State. If the dockside gaming facility is located in an unincorporated area of the county, then twenty-five percent of the revenue must be remitted monthly, by the commission, to the county in which the dockside gaming facility is located. If the dockside gaming facility is located within the boundaries of a municipality, then twenty percent of the revenue must be remitted monthly, by the commission, to the municipality in which the dockside gaming facility is located and five percent must be remitted to the county in which the dockside gaming facility is located. The gaming licensee must submit a monthly return to the commission on or before the twentieth day of the month following the month in which the wagering tax is due under this section.

Section 13-23-920. All sales, use, and excise taxes which apply to the sale of food and beverages in this State and all taxes imposed on the sale or use of tangible personal property apply to sales at the dockside gaming facility.

Section 13-23-930. Notwithstanding any other provision of law, no municipality, county, or other political subdivision may impose a tax or fee on any licensee under this chapter which is imposed exclusively upon the licensee.

Section 13-23-940. (A) A gaming licensee must keep books and records so as to clearly show the following:

(1) the total amount of gross receipts; and

(2) the total amount of the adjusted gross receipts.

(B) The gaming licensee must furnish to the commission returns, reports, and other information as the commission may require with respect to a licensee's activities on forms designed and supplied for this purpose by the commission. The returns, reports, and other information must be furnished at such times as provided in this article, and if not provided for in this article, at such times as the commission designates.

(C) The provisions of Section 13-23-180 apply to the disclosure of the books and records kept by a gaming licensee as provided by this section.

Section 13-23-950. To aid the commission in the collection and enforcement of the taxes imposed by Sections 13-23-900 and 13-23-910, the provisions of Chapter 54 of Title 12, relating to a uniform method of collection and enforcement of taxes levied and assessed by the Department of Revenue and Taxation, must be used by the commission to collect and enforce the provisions of this article, mutatis mutandi. For the purposes of applying Chapter 54 of Title 12, whenever the term `South Carolina Tax Commission' or `Department of Revenue and Taxation' is used, the term means, for purposes of this article, the South Carolina Gaming Commission.

Section 13-23-1100. The South Carolina Administrative Procedures Act applies to all regulations and procedures of the commission under this chapter except that forms established by the commission for use in administering the provisions of this chapter are not regulations as defined in Section 1-23-10(4).

Section 13-23-1110. It is the express intent, desire, and policy of the General Assembly that an applicant for any license authorized by this chapter, any holder of a license under this chapter, and any person seeking an affirmative act from the commission does not have any right of action to obtain or retain the license, permit, or to obtain the approval sought except as provided for and authorized by this chapter. Any license issued or approval obtained under this chapter is expressly declared by the General Assembly to be a pure and absolute revocable privilege, and is not a right, property or otherwise, under the Constitutions of the United States or this State. The General Assembly declares that a holder of any license does not acquire any vested interest or right in or under the license.

Section 13-23-1120. Upon order of the commission, an administrative law judge may be designated, as provided in Article 5 of Chapter 23 of Title 1, to hear and decide any matter that the commission may decide. The commission may limit the role of the administrative law judge to that of fact-finding and making recommendations to the commission. An appeal from a decision of the administrative law judge to the commission may be had in the manner provided in Section 1-23-610(A). An administrative law judge conducting a hearing under this section has all powers and rights granted to the commission in this chapter.

Appeals from decisions of the commission's affirming, denying, or modifying a decision of an administrative law judge in these cases shall be to the circuit court as provided in Section 1-23-610.

Section 13-23-1300. (A) A person is guilty of a misdemeanor and, upon conviction, must be punished by imprisonment for not more than one year or a fine of not more than five hundred dollars, or both, with each day of violation constituting a separate offense, for:

(1) operating a dockside gaming facility where gaming is conducted or to be conducted without a gaming license issued by the commission; or

(2) operating a dockside gaming facility where gaming is conducted other than in the manner specified by this chapter.

(B) A person is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not less than one hundred dollars nor more than two hundred dollars or imprisoned for not less than thirty days nor more than sixty days, or both, for:

(1) permitting a person under the age of twenty-one years to make a wager; or

(2) violating the provisions relating to the purchase of tokens, chips, or electronic cards in Section 13-23-370.

(C) A person wagering or accepting a wager at any location outside the boundaries of a dockside gaming facility is subject to the provisions and penalties in Section 16-19-40.

(D) A person is guilty of a felony and, upon conviction, must be punished by imprisonment for not more than ten years and a fine of not more than ten thousand dollars and, in addition, must be barred for life from dockside gaming facilities under the jurisdiction of the commission, if the person:

(1) offers, promises, or gives anything of value or benefit to a person who is connected with a dockside gaming facility including, but not limited to, an officer or employee of a gaming licensee or holder of an occupational license pursuant to an agreement or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to whom the offer, promise, or gift was made in order to affect or attempt to affect the outcome of a game, or to influence the official action of an agent or a member of the commission;

(2) solicits or knowingly accepts or receives a promise of anything of value or benefit while the person is connected with a dockside gaming facility including, but not limited to, an officer or employee of a gaming licensee, or holder of an occupational license, pursuant to an understanding or arrangement or with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a game, or to influence the official action of an agent or a member of the commission;

(3) uses or possesses, with the intent to use, a device to assist:

(a) in projecting the outcome of a game;

(b) in keeping track of the cards played;

(c) in analyzing the probability of the occurrence of an event relating to the game;

(d) in analyzing the strategy for playing or betting to be used in the game except as permitted by the commission;

(4) cheats at a game. For purposes of this item, `cheat' means to alter the selection of criteria which determine the result of a game or the amount or frequency of payment in a game;

(5) manufactures, sells, or distributes any cards, chips, dice, game, or device which is intended to be used to violate any provision of this chapter;

(6) alters or misrepresents the outcome of a game on which wagers have been made after the outcome is made sure but before it is revealed to the players;

(7) places a bet after acquiring knowledge, not available to all players, of the outcome of the game which is the subject of the bet or to aid a person in acquiring the knowledge for the purpose of placing a bet contingent on that outcome;

(8) claims, collects, or takes, or attempts to claim, collect, or take, money, or anything of value in or from the games, with intent to defraud, without having made a wager contingent on winning a game or claims, collects, or takes an amount won;

(9) uses counterfeit chips or tokens in a game;

(10) possesses any key or device designed for the purpose of opening, entering, or affecting the operation of a slot machine, gaming device, associated equipment, game, drop box, or an electronic or mechanical device connected with the game or for removing coins, tokens, chips, or other contents of a game. This item (10) does not apply to a gaming licensee or employee of a gaming licensee acting in furtherance of the employee's employment;

(11) fails to comply with or who evades or attempts to evade the provisions of Sections 13-23-900 and 13-23-910.

(E) The possession of more than one of the devices described in subsection (D), item (3), (5), or (10) creates a rebuttable presumption that the possessor intended to use the devices for cheating.

Section 13-23-1310. Any dockside gaming facility used for gaming in violation of this chapter is considered a gaming place in violation of Section 16-19-40. Every slot machine, gaming device, and associated equipment found in a dockside gaming facility in violation of this chapter is subject to seizure, confiscation, and destruction as provided in Section 16-19-120. Any supplier's slot machines, gaming devices, and associated equipment which are used by any person in an unauthorized gaming operation must be forfeited to the State.

Section 13-23-1320. (A) Any person who conducts a gaming operation without first obtaining a license to do so, or who continues to conduct such games after revocation of the gaming license, or any licensee who conducts or allows to be conducted any unauthorized games at a dockside gaming facility where it is authorized to conduct its dockside gaming operation, in addition to other penalties provided by law, is subject to a civil penalty to be imposed by the commission equal to the amount of gross receipts derived from gaming, whether unauthorized or authorized, conducted on that day as well as confiscation and forfeiture of all slot machines, gaming devices, and associated equipment used in the conduct of unauthorized games.

(B) The commission may impose civil penalties up to five thousand dollars against gaming employees, up to twenty-five thousand dollars against suppliers, and up to five thousand dollars or an amount equal to the daily gross receipts, whichever is larger, against holders of a gaming license, for each violation of any provision of this chapter, any regulation of the commission, any order of the commission, or any other action which, in the commission's discretion, is a detriment or impediment to gaming operations.

Section 13-23-1330. (A) The provisions of Chapter 19 of Title 16, relating to gambling and lotteries, do not apply to games and activities conducted pursuant to a gaming or other license issued by the commission.

(B) The provisions of Section 17-13-70, relating to warrants issued by mayors and aldermen; Chapter 1, Title 52, relating to circuses, carnivals, and other traveling shows; Article 1, Chapter 1, Title 32, relating to gambling contracts; Section 61-9-410(3), relating to gambling or games of chance upon the premises covered by the holder of a beer or wine license; Section 16-13-320, relating to swindling; Article 20, Chapter 21, Title 12, relating to the Video Game Machines Act; Article 19, Chapter 21, Title 12, relating to Coin-Operated Machines and devices and other amusements; and, Act 164 of 1993, Part II, Section 19, relating to video game machines, do not apply at dockside gaming facilities or to games or activities conducted in accordance with the provisions of this Chapter. (C) The provisions of South Carolina Coastal Council Regulations relating to Nonwater Dependent Structures, do not apply to any dockside gaming facility."

SECTION 3. The State Budget and Control Board must advance to the South Carolina Gaming Commission not more than one hundred thousand dollars from the Civil Contingent Fund for the purpose of providing start-up funds for the implementation of the South Carolina Gaming and Economic Development Act. The South Carolina Gaming Commission must reimburse the Civil Contingent Fund for any monies advanced to the commission form the fees and other revenues provided in the South Carolina Gaming and Economic Development Act.

SECTION 4. This act takes effect upon approval by the Governor.