Current Status Bill Number:3288 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970123 Primary Sponsor:Simrill All Sponsors:Simrill, Kirsh, Meacham, Hodges, Boan, McCraw and Delleney Drafted Document Number:jic\5300htc.97 Companion Bill Number:207 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Coin-operated devices, counties, nonpayout machines, referendum; Gambling
Body Date Action Description Com Leg Involved
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House 19970123 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 16-19-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NONAPPLICATION OF THE GAMBLING OFFENSES TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE, SO AS TO CLARIFY THAT THIS PROVISION DOES NOT PROHIBIT REGULATION OF THESE MACHINES, INCLUDING THEIR PROHIBITION, PURSUANT TO THE VIDEO GAMES MACHINES ACT AND ITS COUNTY OPTION PROVISIONS; TO AMEND SECTION 12-21-2791, RELATING TO LIMITATIONS ON PAYOUTS ON MACHINES AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS AND CLARIFY THAT THIS PROVISION IS DIRECTED AT A PERSON; TO AMEND SECTION 12-21-2804, RELATING TO REGULATION OF VIDEO MACHINES, SO AS TO PROVIDE CIVIL PENALTIES FOR MACHINES LOCATED IN COUNTIES WHERE PAYOUTS ARE PROHIBITED, INCLUDING MONETARY PENALTIES, LICENSE REVOCATION, AND SEIZURE OF MACHINES, PROVIDE FOR THESE PENALTIES TO APPLY IMMEDIATELY AND PROVIDE THE SOLE REMEDY FOR THESE PENALTIES; TO AMEND SECTION 12-21-2808, RELATING TO REFERENDUMS ALLOWED IN COUNTIES ON CONTINUING OR PROHIBITING CASH PAYOUTS, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS, DELETE OBSOLETE PROVISIONS, AND MAKE OTHER TECHNICAL REVISIONS; TO AMEND SECTION 12-21-2809, RELATING TO THE PROHIBITIONS ON LICENSING AND LOCATING MACHINES IN NONPAYOUT COUNTIES, SO AS TO DELETE CRIMINAL PENALTIES FOR VIOLATIONS AND SUBJECT VIOLATORS TO THE CIVIL PENALTIES PROVIDED BY THIS ACT AND TO PROVIDE THAT THE PENALTY EXTENDS TO OWNING OR POSSESSING THESE MACHINES; TO PROVIDE THAT COUNTIES IN WHICH A MAJORITY "NO" VOTE WAS CERTIFIED IN THE REFERENDUM PROVIDED PURSUANT TO SECTION 12-21-2806 ARE DEEMED TO HAVE MADE THAT CHOICE PURSUANT TO SECTION 12-21-2808, AS AMENDED BY THIS ACT, WITH AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO ISSUE PRORATED REFUNDS FOR MACHINES LICENSED IN SUCH COUNTIES; AND TO REPEAL SECTION 12-21-2806, RELATING TO THE INITIAL REFERENDUM ON CONTINUING CASH PAYOUTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 16-19-60 of the 1976 Code is amended to read:
"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 shall extend to coin-operated nonpayout machines with a free play feature; provided, that nothing herein shall authorize the licensing, possession, or operation of any machine which disburses money to the player. Nothing in this section prohibits regulation of video games pursuant to Article 20 of Title 12, the Video Games Machines Act, including the prohibition on payoffs and location of these machines in counties where such payouts and machines are prohibited under the local option provisions of that article."
SECTION 2. Section 12-21-2791 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2791. Any location which A person who operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the cash payout for credits earned for free games to two thousand five hundred credits per a player per a location during any twenty-four hour period. The cash value of credits for each free game shall be is limited to five cents."
SECTION 3. Section 12-21-2804 of the 1976 Code, as added by Act 164 of 1993, is amended by adding at the end:
"(G)(1) In addition to any other penalties provided by law, the department, for a violation of Section 12-21-2808(E) or Section 12-21-2809, may:
(a) impose a civil penalty in an amount not to exceed five thousand dollars on the owner of the machine, or the person who obtained, or was required to obtain, the retail sales tax license for the place or premises pursuant to Section 12-21-2703, or both; and
(b) revoke the license of the machine giving rise to the violation and any other machine licensed to the same holder in any county where such machines are prohibited pursuant to Section 12-21-2809; and
(c) seize the offending machine and dispose of it as contraband.
(2) The penalties authorized by this subsection are effective immediately upon imposition and may not be stayed by any administrative or judicial action. The sole remedy available under this subsection is a hearing before the Administrative Law Judge Division on the question of the legality of the machine under Section 12-21-2809 and the reasonableness of the penalties imposed. Further appeals are as provided in Section 12-60-3380."
SECTION 4. Section 12-21-2808 of the 1996 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2808. (A) In addition to the referendum to be held at the 1994 general election, Counties are authorized to may hold a referendum to determine whether or not cash payoffs are allowed for the operation of machines as defined in this article provided for under Section 16-19-60 of the 1976 Code relating to coin-operated devices shall be authorized. The counties are authorized to hold such a this referendum in the manner provided in this section except that no such referendum may be held until the 1998 general election and may also be held in subsequent general elections as provided herein except at the time of the general election.
(1) (B) The referendum must be held:
(a) upon the passage of an ordinance of the governing body of a county providing for a referendum if the ordinance is passed at least ninety days before a general election; or
(b) upon a petition so requesting filed with the county election commission more than ninety days before the general election containing the signatures of at least ten percent, but not more than two thousand five hundred, of the qualified electors of the county as of the time of the preceding general election.
(2) (C) In any a county in which cash payoffs are authorized by Section 16-19-60 of the 1976 Code relating to coin-operated devices permitted, at the time of the referendum provided for in this section, the question put before the voters shall read as follows:
'Shall cash payoffs for credits earned on coin-operated video game machines continue to be allowed in this county remain legal and subject to licensure and regulation by the State of South Carolina?'
(3) (D) In any a county in which, at the time of the referendum provided for in this section, cash payoffs as provided for by Section 16-19-60 of the 1976 Code relating to coin-operated devices are not authorized, the question put before the voters shall read as follows:
'Shall cash payoffs for credits earned on coin-operated video game machines be allowed in this county and subject to licensure and regulation by the State of South Carolina?'
(4) (E) If the result of the referendum provided for in this section is not in favor of a continuation of cash payoffs for credits earned on coin-operated devices within the county, Section 16-19-60 of the 1976 Code shall not apply cash payouts are prohibited within the county after July first June thirtieth of the year following the referendum.
(5) (F) If the results of the referendum provided for in this section are to authorize cash payoffs relating to coin-operated devices, Section 16-19-60 shall apply, such payoffs are permitted, subject to the regulations of this article, within such county after beginning January first of the year following the referendum.
(6) (G) The state election laws apply to the referendum provided in this section, mutatis mutandis.
(7) (H) If a majority of the qualified electors within a county vote to terminate cash payoffs for credits earned on coin-operated devices, in a referendum as authorized in this section, the Tax Commission department shall refund to any person holding a license for the operation of coin-operated devices on a pro rata basis, the portion of any license fees previously paid the commission department for licenses which extend beyond July first of the year after the referendum."
SECTION 5. Section 12-21-2809 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 12-21-2809. (A) In a county in which a majority of the qualified electors vote or have voted to terminate cash pay-offs for credits earned on coin-operated devices in a referendum authorized by Sections 12-21-2806 or Section 12-21-2808, the department shall not issue any license for coin-operated devices as defined in Section 12-21-2720(A)(3) and it is unlawful for a person to may not own or possess these machines in the county other than for purposes of storage, maintenance, or transportation.
(B) A person who operates owns or possesses any coin-operated device in violation of subsection (A) of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two thousand dollars or imprisoned for not more than thirty days. Violations charged under this section must be tried in magistrate's court subject to the penalties provided in Section 12-21-2804(G)."
SECTION 6. A majority "no" vote certified in a county pursuant to the former provisions of Section 12-21-2806 of the 1976 Code is deemed nunc pro tunc a certification of a majority "no" vote pursuant to Section 12-21-2808(C) of the 1976 Code as amended by this act. In these counties, the Department of Revenue may issue a prorated refund of the license fee imposed pursuant to Section 12-21-2720(A)(3) for a machine located in the county on the effective date of this act.
SECTION 7. Section 12-21-2806 of the 1976 Code is repealed.
SECTION 8. This act takes effect on the first day of the second month following approval by the Governor.