S 672 Session 112 (1997-1998)
S 0672 General Bill, By Rankin
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
12-21-2729 SO AS TO IMPOSE REQUIREMENTS FOR THE ISSUE OF THE PREMISES'
LICENSES REQUIRED PURSUANT TO THIS ACT AND PROVIDE A CIVIL PENALTY FOR
VIOLATIONS; TO AMEND SECTION 12-21-2728, AS AMENDED, RELATING TO OPERATOR'S
LICENSES FOR COIN-OPERATED DEVICES, SO AS TO REQUIRE AN OWNER/OPERATOR'S
LICENSE ANNUALLY FOR ANY BUSINESS IN WHICH ARE LOCATED VIDEO GAMES WITH A FREE
PLAY FEATURE FOR BUSINESSES IN ANY COUNTY IN WHICH AT LEAST NINE HUNDRED
THOUSAND DOLLARS IN ACCOMMODATIONS TAXES HAVE BEEN COLLECTED IN ANY FISCAL
YEAR AND PROVIDE CIVIL PENALTIES FOR VIOLATIONS, AND TO PROVIDE FOR THE
SEVERABILITY OF THE PROVISIONS OF THIS ACT.
04/17/97 Senate Introduced and read first time SJ-5
04/17/97 Senate Referred to Committee on Finance SJ-5
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 12-21-2729 SO AS TO IMPOSE
REQUIREMENTS FOR THE ISSUE OF THE PREMISES'
LICENSES REQUIRED PURSUANT TO THIS ACT AND
PROVIDE A CIVIL PENALTY FOR VIOLATIONS; TO AMEND
SECTION 12-21-2728, AS AMENDED, RELATING TO
OPERATOR'S LICENSES FOR COIN-OPERATED DEVICES, SO
AS TO REQUIRE AN OWNER/OPERATOR'S LICENSE
ANNUALLY FOR ANY BUSINESS IN WHICH ARE LOCATED
VIDEO GAMES WITH A FREE PLAY FEATURE FOR
BUSINESSES IN ANY COUNTY IN WHICH AT LEAST NINE
HUNDRED THOUSAND DOLLARS IN ACCOMMODATIONS
TAXES HAVE BEEN COLLECTED IN ANY FISCAL YEAR AND
PROVIDE CIVIL PENALTIES FOR VIOLATIONS, AND TO
PROVIDE FOR THE SEVERABILITY OF THE PROVISIONS OF
THIS ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 19, Chapter 21, Title 12 of the 1976 Code is
amended by adding:
"Section 12-21-2729. (A) The department may not issue a
license required under Section 12-21-2728(B) to any person unless
the person, or in case of a partnership, corporation, limited liability
company, or similar entity, all principals of the entity, is of good
moral character. To be of good moral character, the person may not
have been, within the past ten years, convicted of a state or federal
offense relating to gaming or gambling or a crime that has a sentence
of imprisonment of two or more years or have had revoked any
license issued under this article as a principal of a business or entity.
A principal of a business or entity means a person who is described
in any one or more of the following items:
(1) An officer of the business or entity which owns the business;
(2) A partner, other than a limited partner, who cannot exercise
any management control;
(3) A manager of a limited liability company which is managed
by managers; and
(4) A member of a limited liability company which is not
managed by members.
(B) The department may not issue a license under Section
12-21-2728(B) unless the location of the proposed single place or
premises is a proper location. In determining whether or not a
location is a proper one, the following factors may be considered:
(1) the location's proximity to residences;
(2) the location's proximity to houses of worship, schools,
playgrounds, parks, and daycare centers, regardless of the
requirements of Section 12-21-2793;
(3) the likelihood that large crowds will gather from time to
time with attendant breaches of the peace;
(4) adequate police protection;
(5) the concentration in the area of other establishments,
whether existing or proposed, for the operation of devices described
in Section 12-21-2720(A)(3), regardless of the requirements of
Section 12-21-2804(A);
(6) all other pertinent information deemed appropriate or
submitted for consideration.
(C) The person applying for the license required by Section
12-21-2728(B) must place a notice at least once a week for three
consecutive weeks in a newspaper of general circulation in the area
in which the person seeks to locate the proposed single place or
premises.
(D) The person applying for the license required by Section
12-21-2728(B) must also place a notice by displaying a sign for
fifteen consecutive days at the site of the proposed single place or
premises. The sign must:
(1) state that a license for the operation of gaming machines is
being sought and that the establishment will be able to issue cash
payouts for winnings from these machines;
(2) tell an interested person where to send a written protest of
the application;
(3) be in bold print;
(4) cover a space at least eleven inches wide and eight and
one-half inches high;
(5) be posted and removed by an agent of the department.
(E) If the department receives any protests to the issuance of the
license under Section 12-21-2728(B) for the proposed single place or
premises, the matter becomes a contested case under Section
1-23-380. Any person filing a protest is a party to the action.
(F) A person required to obtain the license required by Section
12-21-2728(B) who operates a location without the license required
by Section 12-21-2728(B), or after the license required by Section
12-21-2728(B) has been revoked and any principle of an entity who
allows the operation of a location without the license required by
Section 12-21-2728(B), or after the license required by Section
12-21-2728(B) has been revoked is subject to the civil penalty
provided in Section 12-21-2804(F)."
SECTION 2. Section 12-21-2728 of the 1976 Code, as last
amended by Act 501 of 1992, is further amended to read:
"Section 12-21-2728. (A)(1) In addition to all other
licenses required by this chapter, a person who owns or operates
devices described in Sections 12-21-2720 and 12-21-2730 shall
obtain an operator's license biennially as follows:
(1)(a) fifty dollars for devices in Sections
12-21-2720(A)(1) and 12-21-2730;
(2)(b) two hundred dollars for devices in
Section 12-21-2720(A)(2);
(3)(c) two thousand dollars for devices in
Section 12-21-2720(A)(3).
(B)(2) Only one license is required regardless of
the number or type of devices owned or operated, and the cost of that
license is the highest fee enumerated in this section for a device
owned or operated.
(C)(3) The licenses provided by this section are
subject to Section 12-21-2734 and are a condition precedent to
engaging in or the continuing operation of machines described in this
chapter. Failure to remit taxes to the State is justification for the
cancellation of the license provided in this section.
(B)(1) In addition to the retail sales tax license required by
Section 12-21-2703 and all other licenses required by law, a person
who owns a business where devices described in Section
12-21-2720(A)(3) are located and available for play and which is
located in a county in which at least nine hundred thousand dollars in
revenues from the tax imposed pursuant to Section 12-36-2630(3)
was collected in any one fiscal year must apply for and obtain an
owner/operator license annually for each single place or premises
located in the county.
The license must be renewed before January first of each year.
No device described in Section 12-21-2720(A)(3) may be placed in
the single place or premises until the license required in this
subsection (B) has been issued by the department.
The department, in addition to assessing the machine owner the
civil penalty under Section 12-21-2804(F) for a violation of Section
12-21-2804(A), shall assess the licensee under this subsection a
separate civil penalty not to exceed five thousand dollars for a
violation of Section 12-21-2804(A) at the licensee's location.
(2) If a person's owner/operator license is revoked under the
provisions of Section 12-54-90 or if a person is penalized under the
provisions of Section 12-21-2729, the person may not be issued an
owner/operator license for a period of two years and the person may
not have a financial interest, either direct or indirect, in any business
in which the owner of the business is required to obtain an
owner/operator license under this subsection.
(3) The licenses provided by this subsection are a condition
precedent to engaging in or continuing in the operation of devices
described in Section 12-21-2720(A)(3).
(4) The license imposed by this subsection may not be
transferred to another person or entity or to any other single place or
premises."
SECTION 3. If any provision of this act or its application is held
invalid, the invalidity shall not affect other provisions or applications
of the act which can be given effect without the invalid provision or
application, and to this end, the provisions of this act are severable.
SECTION 4. This act takes effect on the first day of the third
month following approval by the Governor.
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