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Current Status Bill Number:View additional legislative information at the LPITS web site.6 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19990112 Primary Sponsor:Land All Sponsors:Land, Elliott Drafted Document Number:l:\s-res\jcl\001part.whb.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Gaming Commission, Gambling, Coin- operated devices, license fees, criminal background reviews, Taxation History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 19990112 Introduced, read first time, 06 SF referred to Committee Senate 19981118 Prefiled, referred to Committee 06 SF Versions of This Bill
TO AMEND CHAPTER 21, TITLE 12, SOUTH CAROLINA CODE OF LAWS, 1976, RELATING TO VIDEO GAMING, BY ADDING SECTION 12-21-2755, SO AS TO PROVIDE FOR THE DISTRIBUTION OF REVENUE FROM THE LICENSE FEE IMPOSED BY SECTIONS 12-21-2720(A)(3), 12-21-2728(A)(3) AND 12-21-2723; BY ADDING SECTION 12-21-2723 SO AS TO IMPOSE ; TO AMEND SECTION 12-21-2720 TO ALLOW A COUNTY AND MUNICIPALITY TO LIMIT THE NUMBER OF MACHINES PER "STRUCTURE" AND TO ALLOW A LOCAL GOVERNMENT TO DEFINE THE TERM "STRUCTURE"; BY ADDING SECTION 12-21-2752 SO AS TO PROVIDE FOR CRIMINAL BACKGROUND REVIEWS FOR OWNERS AND OPERATORS OF VIDEO GAME MACHINES; BY ADDING SECTION 12-21-2753 SO AS TO PROVIDE FOR CRIMINAL BACKGROUND REVIEWS FOR PERSONS HOLDING RETAIL SALES TAX LICENSES FOR PLACES OR PREMISES WHERE VIDEO GAME MACHINES ARE LOCATED; TO AMEND TITLE 12 BY ADDING CHAPTER 22 SO AS TO CREATE THE GAMING COMMISSION, PROVIDE FOR ITS MEMBERSHIP AND ITS RESPONSIBILITIES; TO REPEAL SECTIONS 12-21-2804(G)(I), 12-21-2808, 12-21-2809, AND SECTION 6 OF ACT 53 OF 1997; AND TO AMEND SECTION 12-21-2738 SO AS TO PROVIDE THAT A FINE RELATING TO A VIOLATION OF A VIDEO GAME MACHINE LICENSED PURSUANT TO SECTION 12-21-2720(A)(3) MAY NOT BE SUSPENDED.
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 12-21-2755. (A) Notwithstanding any other provision of law, three thousand six hundred dollars of the fee imposed on each machine licensed pursuant to Section 12-21-2720(A)(3) must be distributed to the governing body of the county where the machine is located.
(B) Notwithstanding any other provision of law, all revenue derived from the fee imposed pursuant to Section 12-21-2728(A)(3) and the annual revenue derived from the fee imposed pursuant to Section 12-21-2723 must be credited as follows:
(1) two and one-half percent annually must be placed in a fund separate and distinct from the general fund of the State to be allocated to Department of Alcohol and Other Drug Abuse Services to be distributed in the same manner as funds are distributed pursuant to Section 6-27-40(B) and expended for treatment programs to assist individuals with gambling addiction;
(2) twenty million dollars annually must be placed in the Rural Infrastructure Development Fund (RIDF); and
(3) the remaining revenue must be credited to a special fund within the general fund of the state to be used for school building projects for elementary and secondary public education to be expended for capital improvement nonrecurring purposes. After December 31, 2000, if the voters approve the continuation of video gaming, the remaining revenue must be placed in the fund separate and distinct from the general fund for the state to be used as a debt service account to repay general obligation bonded indebtedness associated with elementary and secondary public education building projects.
(D) The Rural Infrastructure Development Fund (RIDF) is a separate and distinct fund within the South Carolina Infrastructure Revolving Loan Fund created pursuant to Section 11-40-50 of the Code of Laws and no portion of the payment required by this subsection may be retained by the department. Monies deposited to the RIDF shall be maintained in the fund from year to year and interest accruing on the RIDF balance shall be credited to the fund. The RIDF shall be used exclusively for projects, as defined in Chapter 40 of Title 11 of the Code of Laws, which have been approved by the Rural Infrastructure Development Council (RIDC). The RIDC shall be composed of seven (7) members, elected by a majority vote of the combined legislative delegations of Allendale, Bamberg, Chester, Clarendon, Colleton, Dillon, Edgefield, Hampton, Jasper, Lee, Marion, Marlboro, Orangeburg and Williamsburg counties."
SECTION 2. Article 19, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2723. (A) There is imposed .
(B) Revenues derived from the fee imposed in subsection (A) must be credited as provided in Section 12-21-2755."
SECTION 3. Section 12-21-2720 of the 1976 Code is amended to read:
"Section 12-21-2720. (A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the South Carolina Department of Revenue a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and four thousand dollars for each machine in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the C.O.D. license provisions of this section;
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or `flippers' operated by the player by which the course of the balls may be altered or changed. A machine required to be licensed under this item is exempt from the license fee if an admissions tax is imposed;
(3) a machine of the nonpayout type, in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or `flippers' operated by the player by which the course of the balls may be altered or changed.
(B) No municipality or county may limit the number of machines within the boundaries of the municipality or county. A municipality may by ordinance limit the number of machines that may be licensed per structure and may by ordinance define the term 'structure' for purposes of that ordinance. A person applying for or seeking to renew a license must submit an affidavit to the department that the location of the machine conforms to all local ordinances. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period.
(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A).
(D) A county may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period. A county may by ordinance limit the number of machines that may be licensed per structure and may by ordinance define the term 'structure' for purposes of that ordinance. A person applying for or seeking to renew a license must submit an affidavit to the department that the location of the machine conforms to all local ordinances.
(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."
SECTION 4. Section 12-21-2728 of the 1976 Code is amended by adding:
"(D) The license provided for in subsection (A)(3) for devices described in Section 12-21-2720(A)(3) shall not be issued unless and until the department and the licensee comply with Section 12-21-2752."
SECTION 5. A. Article 19, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2752. (A) The department shall issue a license pursuant to Section 12-21-2728 to own or operate devices described in Section 12-21-2720(A)(3) to an applicant upon a determination by the department that the applicant is eligible for a license to own or operate devices described in Section 12-21-2720(A)(3) pursuant to the provisions of this chapter and the regulations of the department.
(B) The application must be made on forms provided by the department and the applicant must submit any information required by this chapter or as the department prescribes. An application which contains material omissions or misrepresentations is cause for denial of a license to own or operate devices described in Section 12-21-2720(A)(3).
(C) The department's application form for a license to own or operate devices described in Section 12-21-2720(A)(3) must provide detailed information regarding the ownership and management of the applicant and detailed personal information regarding the applicant.
(D)(1) In addition to the information contained on the department's application form as provided in subsection (C), if not contained on the form, the applicant for a license to own or operate devices described in Section 12-21-2720(A)(3) must disclose at the time of filing the application form the identify of every person, association, partnership, trust, corporation, or other entity who has or will have a direct or indirect ownership interest in the machines for which the license is sought or with respect to the operation for which the license is sought.
(2) If the identity of the person, association, partnership, trust, corporation, or other entity 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 officers of the corporation and in addition all stockholders with a five percent or more beneficial interest in the corporation; if a partnership, the names and addresses of all partners.
(3) When partnerships or corporations are owned or controlled by other corporations or partnerships, the applicant must disclose any information required by the department to obtain fingerprints and criminal background checks for beneficial owners so that an applicant may not circumvent the purpose of this section. Failure to comply with a request of the department is grounds to deny or revoke a license.
(E) A person applying for a license to own or operate devices described in Section 12-21-2720(A)(3) and all persons for whom disclosure is required pursuant to this section must undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprinting review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal of a license to own or operate devices described in Section 12-21-2720(A)(3).
(F) At the time of filing the application for a license to own or operate devices described in Section 12-21-2720(A)(3), the applicant must include certified checks for the following fees:
(1) a non-refundable application fee of one hundred dollars. The department must use the fee to defray the costs associated with conducting a background investigation on the applicant and with processing the application;
(2) the fees imposed by the State Law Enforcement Division and the Federal Bureau of Investigation, respectively, for the purpose of conducting fingerprint reviews required by subsection (E) of this section;
(3) the license fee imposed pursuant to Section 12-21-2728(A)(3). The department must refund the license fee if the application is denied or the department is unable to process the application.
(G) Upon receipt of a timely and complete application for a license to own or operate devices described in Section 12-21-2720(A)(3), the department must begin a background investigation using the information in the application as a basis for a thorough investigation which the department must conduct with respect to each applicant.
(H) The department may request the assistance of the State Law Enforcement Division in conducting the background investigation on an applicant for a license to own or operate devices described in Section 12-21-2720(A)(3). The department must reimburse the State Law Enforcement Division, from the fee imposed by subsection (F)(1), for direct cost incurred in assisting the department with the investigation and evaluation of the applicant.
(I) The department must not issue a license to a person to own or operate devices described in Section 12-21-2720(A)(3) if:
(1) the person has been convicted within the last ten years of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years;
(2) the person has submitted an application which contains false information; or
(3) a person defined in (1) or (2) is an officer or director of the applicant.
(J) The applicant for a license to own or operate devices described in Section 12-21-2720(A)(3) must show that:
(1) the applicant is a person of good character, honesty, and integrity; and
(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 video gaming.
(K) The department must make its decision on whether to issue a license to the applicant not later than sixty days after the completion of the background investigation, including the fingerprint reviews, and the recommendation, if any, of the State Law Enforcement Division, or not later than one hundred eighty days from the date the application is filed with the department, whichever occurs first. The department must inform each applicant of the department's decision. A person may be issued a provisional operator's license upon receipt and review of the results of the State Law Enforcement Division fingerprint review if the results show no convictions of the crimes referenced in subsection (I)(1) for either the applicant or the persons subject to disclosure pursuant to Section 12-21-2752(D). Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the prospective licensee a written affirmation on a form provided by the department that neither the prospective licensee nor any person subject to disclosure pursuant to this section has not been convicted of any crime referenced in subsection (I)(1).
(L) A person licensed to own or operate devices described in Section 12-21-2720(A)(3) has an affirmative duty to maintain on file with the department a current and correct disclosure of the identity of those persons required to be disclosed in subsections (C) and (D). No person shall be allowed to have a direct or indirect ownership in machines for which a license has been issued or in an operation to which a license has been issued unless and until the licensee fingerprint reviews required by this section are completed."
B. Section 12-21-2752 shall apply with respect to all persons seeking initial licensure pursuant to Section 12-21-2728 for a period beginning on or after June 1, 1999. All persons who were licensed pursuant to Section 12-21-2728 to own or operate devices described in Section 12-21-2720(A)(3) on May 31, 1999, and who wish to continue to be licensed may apply for new licenses to be issued in accordance with Section 12-21-2752. A person with a valid license issued pursuant to Section 12-21-2728 to own or operate devices described in Section 12-21-2720(A)(3) on May 31, 1999, shall be issued a license to operate on a provisional basis pending the results of the fingerprint reviews of the person issued the license to own or operate devices described in Section 12-21-2720(A)(3) and the persons subject to disclosure under Section 12-21-2752.
SECTION 6. A. Title 12 of the 1976 Code is amended by adding:
"Section 12-21-2753. (A) Before any machines required to be licensed pursuant to Section 12-21-2720(A)(3) may be operated in a place or premises, the person required pursuant to Section 12-21-2703 to obtain the retail sales tax license for the place or premises must undergo:
(1) a background investigation conducted by the department; and
(2) a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprinting review to be conducted by the Federal Bureau of Investigation to determine any other criminal history.
(B) The department must develop an application form in which the applicant must provide information that the department deems necessary for purposes of its background investigation and the applicant must submit any information required by the department. The department may request the assistance of the State Law Enforcement Division in conducting the background investigation; provided, the department must reimburse the State Law Enforcement Division, from the fee imposed by subsection (C)(1), for direct costs incurred in assisting the department with the investigation of the applicant. An application that contains material omissions or misrepresentations is cause for denial of authorization to permit the operation of devices described in Section 12-21-2720(A)(3) at the place or premises.
(C) At the time the applicant seeks authorization for the placement of devices described in Section 12-21-2720(A)(3) at the place or premises, the applicant must include certified checks for the following fees:
(1) a non-refundable background investigation fee of one hundred dollars. The department must use the fee to defray the costs associated with conducting a background investigation on the applicant; and
(2) the fees imposed by the State Law Enforcement Division and the Federal Bureau of Investigation, respectively, for the purposes of conducting criminal history reviews.
(D) The department must not authorize the operation of devices described in Section 12-21-2720(A)(3) at the place or premises if:
(1) the person has been convicted within the last ten years of a state or federal felony, gambling offense, criminal fraud, or a crime that has a sentence of two or more years; or
(2) the person has submitted an application which contains false information.
(E) The applicant seeking authorization for the operation of devices described in Section 12-21-2720(A)(3) on the place or premises must show that:
(1) the applicant is a person of good character, honesty, and integrity; and
(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 video gaming.
(F) The department must make its decision on whether to authorize operation of devices described in Section 12-21-2720(A)(3) on the applicant's place or premises not later than sixty days after the completion of the background investigation, including the fingerprint reviews, and the recommendation, if any, of the State Law Enforcement Division, or not later than one hundred eighty days from the date the application is filed with the department, whichever occurs first. The department must inform each applicant of the department's decision. A person may be issued a provisional authorization upon receipt and review of the results of the State Law Enforcement Division fingerprint review if the results show no convictions of the crimes referenced in subsection (D)(1). Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the applicant a written affirmation on a form provided by the department that the has not been convicted of any crime referenced in subsection (D)(1).
(G) This section does not apply with respect to persons for whom background investigations and criminal history reviews are performed pursuant to Section 12-21-2752."
B. All persons with devices described in Section 12-21-2720(A)(3) at their place or premises on the effective date of this act must seek authorization in accordance with Section 12-21-2753; provided, that authorization for the operation of devices described in Section 12-21-2720(A)(3) is provisionally granted pending the results of the background investigations and fingerprint reviews.
SECTION 7. Title 12 of the 1976 Code is amended by adding:
Section 12-22-10. (A) The General Assembly finds that it has the inherent power to regulate coin-operated video game machines. 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.
(B) 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 as provided in this chapter.
Section 12-22-20. There is hereby created the South Carolina Gaming Commission which shall have the powers and duties prescribed in this chapter and the powers and duties previously conferred upon the Department of Revenue with respect to the licensure and regulation of coin-operated video game machines described in Section 12-21-2720(A)(3). Unless the context clearly indicates otherwise, any reference to `this chapter' shall also include the provisions of Article 19, Chapter, 21 Title 12 relating to coin-operated video game machines described in Section 12-21-2720(A)(3) and the provisions of Article 20, Chapter 21, Title 12.
Section 12-22-30. The congressional districts of this State shall serve as Gaming Commission districts of the State, designated by numbers corresponding to the numbers of the respective congressional districts. The Gaming Commission shall be composed of one member from each congressional district elected by the delegations of the congressional district and one member appointed by the Governor, upon the advice and consent of the Senate, from the State at large. Such elections or appointment, as the case may be, shall take into account race and gender so as to represent, to the greatest extent possible, all segments of the population of the State; however, consideration of these factors in making an appointment or in an election in no way creates a cause of action or basis for an employee grievance for a person appointed or elected or for a person who fails to be appointed or elected.
Section 12-22-40. (A) A county that is divided among two or more Gaming Commission districts, for purposes of electing a commission member, is deemed to be considered in the district which contains the largest number of residents from that county.
(B) No county within a Gaming Commission district shall have a resident commission member for more than one consecutive term and in no event shall any two persons from the same county serve as a commission member simultaneously except as provided hereinafter.
Section 12-22-50. Legislators residing in the congressional district shall meet upon written call of a majority of the members of the delegation of each district at a time and place to be designated in the call for the purpose of electing a commissioner to represent the district. A majority present, either in person or by written proxy, of the delegation from a given congressional district constitute a quorum for the purpose of electing a district commissioner. No person may be elected commissioner who fails to receive a majority vote of the respective members of the House of Representatives and a majority of the respective members of the Senate eligible to vote in the election.
The delegation must be organized by the election of a chairman and a secretary, and the delegations of each congressional district shall adopt such rules as they consider proper to govern the election. Any absentee may vote by written proxy. When the election is completed, the chairman and the secretary of the delegation shall immediately transmit the name of the person elected to the Secretary of State who shall issue to the person, after he has taken the usual oath of office, a certificate of election as commissioner. The Governor shall thereupon issue a commission to the person, and pending the issuance of the commission the certificate of election is sufficient warrant to the person to perform all of the duties and functions of his office as commissioner. Each commissioner shall serve until his successor is elected and qualified.
Section 12-22-60. (A) No later than March 31, 1999, commissioners must be elected by the legislative delegation of each congressional district. For the purposes of electing a commission member, a legislator shall vote only in the congressional district in which he resides. All commission members must serve for a term of office of four years which expires on March thirty-first of the appropriate year. Commissioners shall continue to serve until their successors are elected and qualify, provided that a commissioner may only serve in a hold-over capacity for a period not to exceed six months. Any vacancy occurring in the office of commissioner shall be filled by election in the manner provided in this chapter for the unexpired term only. No person is eligible to serve as a commission member who is not a resident of that district at the time of his appointment, except that the at-large commission member may be appointed from any county in the State regardless of whether another commissioner is serving from that county. Failure by a commission member to maintain residency in the district for which he is elected shall result in the forfeiture of his office. The at-large commission member, upon confirmation, shall serve as chairman of the commission.
(B) The terms of the initial members of the commission appointed from congressional districts are as follows:
(1) commission members appointed to represent odd-numbered congressional districts - two years; and
(2) commission members appointed to represent even-numbered congressional districts - four years.
(C) The at-large commissioner shall serve at the pleasure of the Governor.
Section 12-22-70. Each commission member, within fifteen days after his election or appointment, and before entering upon the discharge of the duties of his office, shall take, subscribe, and file with the Secretary of State the oath of office prescribed by the Constitution of the State and shall 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 12-22-80. (A) The commission may adopt an official seal for use on official documents.
(B) The commission shall adopt its own rules and procedures and may select such additional officers to serve such terms as the commission may designate.
(C) Commissioners must be reimbursed for official expenses as provided by law for members of state boards and commissions as established in the annual general appropriation act.
Section 12-22-90. (A) 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 coin-operated video game machine 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.
Section 12-22-100. The commission shall employ an executive director who shall have such authority and perform such duties as may be directed by the commission. The salary of the executive director must be fixed by the commission subject to the provisions contained in the annual general appropriations act.
Section 12-22-110. The commission has all powers necessary and proper to fully and effectively execute the provisions of this chapter related to the licensure and operation of coin-operated devices licensed pursuant to Section 12-21-2720(A)(3), 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 coin-operated video game machines and to enforce the provisions of this chapter;
(8) to investigate applicants for any license authorized to be issued under this chapter, to determine the eligibility of applicants for licenses;
(9) to exercise jurisdiction over and to supervise all coin-operated video game machines and all persons where machines are located;
(10) 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 the operation of coin-operated video game machines 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 coin-operated video game machines;
(11) to inspect and conduct investigations 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 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 coin-operated video game machines and associated equipment;
(12) 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;
(13) to require that the records, including financial or other statements, of any licensee must be kept in the manner prescribed by the commission;
(14) to require any person involved in the ownership or operation of coin-operated video game machines 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;
(15) 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;
(16) to prescribe the forms which must be used by any licensee involved in the ownership or operation of coin-operated video game machines;
(17) 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;
(18) 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;
(19) to eject or exclude, or authorize the ejection or exclusion of, any person from a place where coin-operated devices are licensed 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, in the opinion of the commission, may call into question the honesty and integrity of the operation of coin-operated video game machines 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;
(20) 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;
(21) to establish minimum levels of insurance to be maintained by licensees; and
(22) 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
(23) to take any other action as may be reasonable or appropriate to enforce this chapter and the commission's regulations."
SECTION 8. A. 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."
B. Sections 12-21-2804(G)(1), 12-21-2808, 12-21-2809 of the 1976 Code and SECTION 6 of Act 53 of 1997 are repealed.
C. Section 12-21-2738 of the 1976 Code is amended to read:
"Section 12-21-2738. A person who fails, neglects, or refuses to comply with the terms and provisions of this article or who fails to attach the required license to any machine, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the commission.
If the violation under this section relates to a machine licensed pursuant to Section 12-21-2720(A)(3), the applicable penalty amount is two thousand five hundred dollars, no part of which may be suspended, and one-half of this penalty must be deposited as provided in Section 12-21-2755(B)(3) to the credit of the general fund of the State and one-half must be retained by or forwarded to the law enforcement or administrative agency charging the violation."
SECTION 9. All proceedings pending and all rights and liabilities existing, acquired, or incurred at the time this act takes effect are saved.
SECTION 10. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 11. This act takes effect upon approval by the Governor. The Gaming Commission and the Department of Revenue shall have concurrent jurisdiction over the regulation of coin operated devices licensed pursuant to Section 3 of this act and/or Section 12-21-2720(A)(3) until July 31, 2000, after which the responsibilities formally held by the department regarding devices licensed pursuant to Section 12-21-2720(A)(3) shall be devolved to the Gaming Commission as provided in this act. Pending devolution, the Department of Revenue and its personnel must fully cooperate with the Gaming Commission and the department shall provide staff necessary to fully effectuate the provisions of this act.
This web page was last updated on Wednesday, December 9, 2009 at 9:03 A.M.