S 0417  General Bill, By J.M.Waddell, J.C.Hayes, Leatherman and I.E.Lourie
 A Bill to amend Section 12-21-2726, as amended, Code of Laws of South
 Carolina, 1976, relating to proof of licensing of coin-operated machines and
 devices, so as to provide that proof of licensing is the conspicuous display
 of the license at the machine location; to amend Section 12-21-2738, relating
 to penalties for violations of licensing laws for coin-operated machines and
 devices, so as to provide that failure to have the appropriate licenses on
 display constitutes a violation and that each machine in excess of the
 appropriate license displayed is a separate violation; and to repeal Section
 12-21-2732, relating to the attachment of licenses to machines.
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   01/09/91  Senate Introduced and read first time SJ-19
   01/09/91  Senate Referred to Committee on Finance SJ-19
   02/13/91  Senate Committee report: Favorable with amendment
                     Finance SJ-14
   02/14/91  Senate Amended SJ-20
   02/14/91  Senate Read second time SJ-21
   02/14/91  Senate Ordered to third reading with notice of
                     amendments SJ-21
   02/19/91  Senate Read third time and sent to House SJ-12
   02/20/91  House  Introduced and read first time HJ-17
   02/20/91  House  Referred to Committee on Judiciary HJ-18
   04/10/91  House  Recalled from Committee on Judiciary HJ-26
   04/10/91  House  Committed to Committee on Ways and Means HJ-26
   04/24/91  House  Recalled from Committee on Ways and Means HJ-44
   05/08/91  House  Objection by Rep.  Cork, McGinnis, Beatty,
                     Gonzales, Fulmer, Holt, HJ-28
   05/08/91  House  Objection by Rep.  R. Young, Burriss, White,
                     Sharpe, Rama & Snow HJ-28
   05/15/91  House  Special order, set for  Wednesday, May 15, 1991
                     at 11:00 a.m. (Under H 4003) HJ-23
   05/15/91  House  Amended HJ-115
   05/15/91  House  Read second time HJ-129
   05/15/91  House  Roll call Yeas-091  Nays-012 HJ-129
   05/16/91  House  Read third time and returned to Senate with
                     amendments HJ-29
   05/23/91  Senate Carried over SJ-8
   06/04/91  Senate Debate interrupted SJ-17
   06/06/91  Senate Debate interrupted SJ-35
   03/03/92  Senate Recommitted to Fin. retaining a place in adjourn
                     debat SJ-18
   03/03/92  Senate ...(for our info.)  public hearing March 17 2:30
   04/23/92  Senate Debate adjourned SJ-39
   04/28/92  Senate Debate adjourned
   05/05/92  Senate Set for consideration to exclusion all others;
                     adj deb SJ-17
   05/06/92  Senate Debate adjourned SJ-22
   05/20/92  Senate Debate adjourned SJ-47
   05/27/92  Senate Debate adjourned SJ-115
   05/28/92  Senate House amendment amended SJ-50
   05/28/92  Senate Returned to House with amendments SJ-93
   06/03/92  House  Non-concurrence in Senate amendment HJ-108
   06/04/92  Senate Senate insists upon amendment and conference
                     committee appointed  Land, Matthews, Hayes SJ-57
   06/04/92  House  Conference committee appointed  Reps. Hodges,
                     Fair & Wilkes HJ-37

HOUSE AMENDMENTS AMENDED

May 28, 1992

S. 417

Introduced by SENATORS Waddell, Leatherman, Lourie and Hayes

S. Printed 5/28/92--S.

Read the first time January 9, 1991.

A BILL

TO AMEND SECTION 12-21-2726, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROOF OF LICENSING OF COIN-OPERATED MACHINES AND DEVICES, SO AS TO PROVIDE THAT PROOF OF LICENSING IS THE CONSPICUOUS DISPLAY OF THE LICENSE AT THE MACHINE LOCATION; TO AMEND SECTION 12-21-2738, RELATING TO PENALTIES FOR VIOLATIONS OF LICENSING LAWS FOR COIN-OPERATED MACHINES AND DEVICES, SO AS TO PROVIDE THAT FAILURE TO HAVE THE APPROPRIATE LICENSES ON DISPLAY CONSTITUTES A VIOLATION AND THAT EACH MACHINE IN EXCESS OF THE APPROPRIATE LICENSE DISPLAYED IS A SEPARATE VIOLATION; AND TO REPEAL SECTION 12-21-2732, RELATING TO THE ATTACHMENT OF LICENSES TO MACHINES.

Amend Title To Conform

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

SECTION 1. The 1976 Code is amended by adding:

"Section 12-21-2723. (A) No person may maintain or permit to be used on a single place or premises more than nine machines licensed under Section 12-21-2720(3).

(B) No person who maintains a place or premises for the operation of machines licensed under Section 12-21-2720(3) may advertise in any manner for the playing of the machines nor may a person offer or allow to be offered any special inducement to a person for the playing of machines permitted under Section 12-21-2720(3).

(C) No person under twenty-one years of age may play the machines licensed under Section 12-21-2720(3).

(D) No owner, operator, or marketer may be issued a permit by the South Carolina Tax Commission for machines pursuant to Section 12-21-2720(3) unless the owner, operator, or marketer has been a resident of South Carolina for one year. The commission shall require a statement of residency to be filed with the commission as part of the application process for permits issued under Section 12-21-2720(3) on forms and in a manner the commission considers appropriate.

(E) After June 1, 1993, the commission shall not issue a permit to any owner, operator, or marketer for a machine pursuant to Section 12-21-2730(3) unless the machine is equipped with a device or counter for determining the amount of profit a machine has generated.

(F) A person violating subsections (A), (B), or (D) of this section is subject to a fine of up to five thousand dollars to be imposed by the commission. The commission, upon a determination that the violation is wilful, may refer the violation to the Attorney General or to the appropriate circuit solicitor for criminal prosecution, and, upon conviction, the person must be fined not more than ten thousand dollars or imprisoned not more than two years, or both."

SECTION 2. The last paragraph of Section 12-21-2720 of the 1976 Code is amended to read:

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

SECTION 3. Section 12-21-2726 of the 1976 Code, as last amended by Act 170 of 1987, is further amended to read:

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

(1) the type of machine;

(2) the number of machines; and

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

SECTION 4. Section 12-21-2738 of the 1976 Code is amended to read:

"Section 12-21-2738. Any (A) A person who may not:

(1) fail, neglect, or refuse to comply with the terms and provisions of this article; or who

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

(3) fail to display conspicuously the required license where a machine is being operated.

(B) A person who violates subsection (A) is subject to a penalty of fifty five hundred dollars for each failure, and the penalty must be assessed and collected by the commission.

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

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

SECTION 5. A. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-238. The South Carolina taxable income of a resident individual who has attained the age of sixty-five years is exempt from the tax imposed pursuant to Section 12-7-210 beginning with the taxable year in which he attains the age of sixty-five years as follows:

(1) for taxable years beginning in 1993, twenty percent of taxable income is exempt;

(2) for taxable years beginning in 1994, forty percent of taxable income is exempt;

(3) for taxable years beginning in 1995, sixty percent of taxable income is exempt;

(4) for taxable years beginning in 1996, eighty percent of the taxable income is exempt;

(5) for taxable years beginning after 1996, one hundred percent of taxable income is exempt. The South Carolina taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that South Carolina taxable income attributable to the eligible spouse is eligible for the exemption. The commission shall prescribe the method of allocation."

B. Upon the approval by the Governor, this section is effective for taxable years beginning after 1992.

SECTION 6. Section 12-21-2720 of the 1976 Code, as last amended by Part II, Section 14A, Act 171 of 1991, is further amended by adding a paragraph at the end to read:

"Notwithstanding any other provision of this article, no license may be issued pursuant to this article for any place or premises in which a majority of the gross income generated by the establishment is derived from any machine or machines described in item (3) of this section."

SECTION 7. This act is effective upon approval by the Governor, except Sections 3 and 4 are effective for licenses issued after May 31, 1993, and except the statement of residency required in Section 12-21-2723(D) of the 1976 Code in Section 1 applies to licenses issued after 1992. The South Carolina Tax Commission shall investigate and determine whether the residency requirement has been met for licenses issued in 1992.