H 3873 Session 112 (1997-1998)
H 3873 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 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, 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.
04/09/97 House Introduced and read first time HJ-44
04/09/97 House Referred to Committee on Ways and Means HJ-45
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:
"CHAPTER 23
South Carolina Gaming and Economic Development
Act
Article 1
General Provisions
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 license'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.
Article 3
Gaming Licenses
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.
Article 5
Supplier's Licenses
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.
Article 7
Occupational Licenses
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.
Article 9
Taxes
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 mutandis. 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.
Article 11
Administrative Procedures
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.
Article 13
Criminal and Civil Penalties
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; or
(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.
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