H 3952 General Bill, By Loftis, Allison, Altman, Barrett, Beck, H. Brown, 
J. Brown, T. Brown, Campsen, Canty, Cato, Chellis, Clyburn, Cooper, Davenport, 
Delleney, Easterday, Emory, Fleming, Gilham, Govan, Hamilton, Harrell, Harris, 
Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kirsh, 
Klauber, Koon, Lanford, Leach, Lee, Littlejohn, Lourie, Lucas, Maddox, Martin, 
Mason, McCraw, McGee, McKay, McMahand, Meacham, Moody-Lawrence, J.H. Neal, 
Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Scott, Sharpe, Simrill, 
D. Smith, F. Smith, R. Smith, Stille, Taylor, Trotter, Vaughn, Tripp, Walker, 
Webb, Wilkins, Witherspoon, Woodrum and Young-Brickell
 A BILL TO AMEND SECTION 12-21-2772, AS AMENDED, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO VIDEO POKER DEFINITIONS, SO AS TO DEFINE "WARNING
 LABEL"; TO AMEND SECTION 12-21-2774, AS AMENDED, RELATING TO STANDARDS FOR
 LICENSED VIDEO GAME MACHINES, SO AS TO REQUIRE THAT ALL LICENSED VIDEO GAME
 MACHINES MUST DISPLAY A WARNING LABEL ADVISING THAT GAMBLING CAN BE ADDICTIVE
 AND PROVIDING A TOLL FREE NUMBER FOR HELP WITH GAMBLING ADDICTION; BY ADDING
 SECTION 12-21-1227, RELATING TO THE COST OF THE WARNING LABEL SO AS TO
 ESTABLISH AND PROVIDE FOR THE USE OF A SPECIAL GAMBLER'S ADDICTION FUND; TO
 AMEND SECTION 12-21-2802, RELATING TO DISPLAY OF SIGNS ON LICENSED MACHINES,
 SO AS TO REQUIRE MACHINE OWNERS AND OWNERS OF LICENSES TO PROVIDE HANDOUTS
 WITH CERTAIN QUESTIONS AND INFORMATION PERTAINING TO GAMBLING ADDICTION.

   04/20/99  House  Introduced and read first time HJ-28
   04/20/99  House  Referred to Committee on Ways and Means HJ-29

TO AMEND SECTION 12-21-2772, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VIDEO POKER DEFINITIONS, SO AS TO DEFINE "WARNING LABEL"; TO AMEND SECTION 12-21-2774, AS AMENDED, RELATING TO STANDARDS FOR LICENSED VIDEO GAME MACHINES, SO AS TO REQUIRE THAT ALL LICENSED VIDEO GAME MACHINES MUST DISPLAY A WARNING LABEL ADVISING THAT GAMBLING CAN BE ADDICTIVE AND PROVIDING A TOLL FREE NUMBER FOR HELP WITH GAMBLING ADDICTION; BY ADDING SECTION 12-21-1227, RELATING TO THE COST OF THE WARNING LABEL SO AS TO ESTABLISH AND PROVIDE FOR THE USE OF A SPECIAL GAMBLER'S ADDICTION FUND; TO AMEND SECTION 12-21-2802, RELATING TO DISPLAY OF SIGNS ON LICENSED MACHINES, SO AS TO REQUIRE MACHINE OWNERS AND OWNERS OF LICENSES TO PROVIDE HANDOUTS WITH CERTAIN QUESTIONS AND INFORMATION PERTAINING TO GAMBLING ADDICTION.

Whereas, the State of South Carolina is actively engaged in raising revenue by licensing video game machines and taxing the proceeds of video games, especially video poker machines; and

Whereas, in truth and in fact, the playing of a video poker machine is a form of gambling; and gambling in any form, including playing video poker machines, can and often does result in a compulsive addiction, or the inability to stop gambling, in some people; and

Whereas, for those people for whom gambling results in an addiction, the inability to stop gambling, including the inability to stop playing video poker machines, often results in the abuse and neglect of children and dependent family members, the inability to meet financial obligations, monetary losses that inevitably lead to financial devastation, broken homes, loss of employment, criminal acts, and, on occasion, death or suicide attempts; and

Whereas, compulsive gambling, including the inability to stop playing video poker machines, is a progressive disease not unlike an addiction to alcohol or drugs, that remains hidden until it begins to exclude other activities from the compulsive gambler's life and the gambler becomes unable to function without gambling; and

Whereas, the American Psychiatric Association lists "Pathological (Compulsive) Gambling" as a diagnosable and treatable illness; and, with properly trained counselors and treatment facilities, there is hope for the compulsive gambler and his family; and

Whereas, just as workers' compensation is paid to injured workers as part of the cost of doing business, so long as the State of South Carolina looks to licensing machines used in gambling and taxing gambling revenues, the cost of educating the public, training counselors, and treatment of those persons who become compulsive gamblers ought to be borne as part of the cost of the gambling business. Now, therefore,

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

SECTION 1. Section 12-21-2772 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by adding:

"(10) 'Warning label' means a white label containing the phrase 'WARNING: GAMBLING CAN BE ADDICTIVE' in capital black letters not less than two and one-half inches in height and one and one-half inches in width, followed by the phrase 'CALL 1-XXX-XXX-XXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width."

SECTION 2. Section 12-21-2774 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by adding:

"(5) must have a legible warning label prominently and permanently affixed to the machine."

SECTION 3. Chapter 21, Title 12, of the 1976 Code is amended by adding:

"Section 12-21-1227. (A) The warning label required to be displayed and permanently affixed to a machine licensed under this chapter must be purchased by the owner of the machine from the department. The cost of the label is one hundred dollars plus cost to the department for producing the label. The department shall retain the cost for producing the warning label. The department must deposit the additional one hundred dollar fee for the warning label with the State Treasurer. The State Treasurer must maintain the fees received from the department from the sale of warning labels in a special fund to be named and known as the Gambler's Addiction Fund.

(B) Utilizing existing public health facilities, mental health facilities, and community mental health facilities, the Gambler's Addiction Fund may only be used:

(1) to educate the public about gambling addiction and the impact of gambling addiction upon persons who become addicted to gambling and their families;

(2) to train, certify, and license qualified gambling addiction counselors and public health and mental health professionals concerning treatment of persons addicted to gambling and persons impacted by the gambling addiction; and

(3) to provide counseling free of charge for persons addicted to gambling and to persons who are members of the family of a person addicted to gambling who are impacted by the gambler's addiction."

SECTION 4. Section 12-21-2802 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2802. (A) Each machine licensed under this article or Article 19 must have a prominently displayed sign citing the penalties provided by Sections 12-21-2790, 12-21-2792, and 12-21-2794 on the wall above the machine or affixed prominently to the machine. The commission shall make these signs available free of charge.

(B) Each machine owner and the owner of a licensed establishment must have available for free distribution to persons who frequent licensed establishments or who play a machine a legible, eight and one-half by eleven inch paper handout containing the following twenty questions and information in not less than twelve point type:

(1) Do you lose time from work due to gambling?

(2) Does gambling make your home life unhappy?

(3) Does gambling affect your reputation?

(4) Do you ever feel remorse after gambling?

(5) Do you ever gamble to get money to pay debts or to otherwise solve financial difficulties?

(6) Does gambling cause a decrease in your ambition or efficiency?

(7) After losing, do you feel you must return as soon as possible to win back your losses?

(8) After a win, do you have a strong urge to return and win more?

(9) Do you often gamble until your last dollar is gone?

(10) Do you ever borrow to finance your gambling?

(11) Do you ever sell anything to finance gambling?

(12) Are you reluctant to use gambling money for normal expenditures?

(13) Does gambling make you careless about the welfare of your family?

(14) Do you ever gamble longer than you planned?

(15) Do you ever gamble to escape worry or trouble?

(16) Do you ever commit, or consider committing, an illegal act to finance your gambling?

(17) Does gambling cause you to have difficulty sleeping?

(18) Do arguments, disappointments, or frustrations create within you an urge to gamble?

(19) Do you have an urge to celebrate good fortune by a few hours of gambling?

(20) Do you ever consider self-destruction as a result of your gambling?

SECTION 5. The director of the Department of Revenue and the Code Commissioner are authorized and directed by this section to replace the 'XXX-XXX-XXXX' in the preceding sentence and in Section 4 of this act with the correct digits for a toll free number on the warning label and in the Code of Laws, respectively, when a toll fee number for help with gambling addiction is established and available for publication.

SECTION 6. This act takes effect upon approval by the Governor.