South Carolina General Assembly
113th Session, 1999-2000
Journal of the House of Representatives

Thursday, May 13, 1999
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 A.M.
Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark, as follows:

Eternal Father God, as we undertake the tasks of this day, we thank You for renewed energy gained by the rest of the past night. Help us through each moment of this day, that we waste none of its hours, soil none of its moments, neglect none of its opportunities, fail in none of its duties. May nothing take away our joy, nothing ruffle our peace, nothing make us bitter, resentful or cynical. May all who serve in the government of this State and this Nation be given a wisdom beyond their own. And to You, Lord, be glory and majesty both now and forever. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. LUCAS moved that when the House adjourns, it adjourn in memory of Bob Bass, former mayor of Hartsville, which was agreed to.

COMMITTEE APPOINTMENT

The following was received.

May 11, 1999
The Honorable Jimmy Bales
432D Blatt Building
Columbia, S.C. 29211

Dear Jimmy:

It is with pleasure that I appoint you to serve on the Agriculture, Natural Resources and Environmental Affairs Committee, effective May 11, 1999. This appointment is to fill the vacancy which occurred when Representative Bauer resigned from the House. I know that you will serve this committee with honor and distinction. If you have any questions, please do not hesitate to contact me.

I look forward to working with you this year.

Sincerely,
David H. Wilkins
Speaker of the House

Received as information.

COMMITTEE APPOINTMENT

The following was received.

May 11, 1999
The Honorable James M. Neal
422A Blatt Building
Columbia, S.C. 29211

Dear Jimmy:

It is with pleasure that I appoint you to serve on the Medical, Military, Public and Municipal Affairs Committee, effective May 11, 1999. This appointment is to fill the vacancy which occurred when Representative Bales was reassigned. I know that you will serve this committee with honor and distinction. If you have any questions, please do not hesitate to contact me.

I look forward to working with you this year.

Sincerely,
David H. Wilkins
Speaker of the House

Received as information.

HOUSE RESOLUTION

On motion of Rep. LEE, with unanimous consent, the following was taken up for immediate consideration:

H. 4090 (Word version) -- Reps. Lee, Allison, Cobb-Hunter, Gamble, Gilham, Hinson, Martin, Meacham, Miller, Moody-Lawrence, Neilson, Parks, Rodgers, Seithel, Stuart and Young-Brickell: A HOUSE RESOLUTION EXTENDING THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO NANCY RUTH MACE, THE FIRST FEMALE GRADUATE OF THE CITADEL, ON A DATE AND AT A TIME AS DETERMINED BY THE SPEAKER, FOR THE PURPOSE OF BEING RECOGNIZED AND HONORED BY THE HOUSE OF REPRESENTATIVES.

Be it resolved by the House of Representatives:

That the privilege of the floor of the House of Representatives be extended to Nancy Ruth Mace, the first female graduate of The Citadel, on a date and at a time as determined by the Speaker, for the purpose of being recognized and honored by the House of Representatives.

The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4091 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO COMMEND AND CONGRATULATE MR. WILLIE GREEN, JR., OF RICHLAND COUNTY ON THE OCCASION OF HIS RETIREMENT AS SINGLE FAMILY PROGRAM DIRECTOR FOR THE UNITED STATES DEPARTMENT OF AGRICULTURE'S FARMERS HOME ADMINISTRATION.
The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4092 (Word version) -- Reps. J. Smith and Lourie: A CONCURRENT RESOLUTION RECOGNIZING THE LIFE AND GOOD WORKS OF JOHN BERNARDIN, SR., OF COLUMBIA AND EXPRESSING THE APPRECIATION AND RESPECT OF THE GENERAL ASSEMBLY FOR THE CONTRIBUTIONS HE MADE TO THE MIDLANDS COMMUNITY, ESPECIALLY ITS MOST FRAGILE SECTOR, ITS NEEDY CHILDREN, DURING HIS LIFETIME.
The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4093 (Word version) -- Rep. Wilder: A CONCURRENT RESOLUTION TO REQUEST THE STATE HOUSE COMMITTEE TO SELECT AN APPROPRIATE SITE TO ERECT A SUITABLE MONUMENT ON THE STATE HOUSE GROUNDS TO RECOGNIZE ORGAN AND TISSUE DONORS AND TO REQUEST THE GIFT OF LIFE TRUST FUND OF SOUTH CAROLINA TO ASSUME THE COST OF PURCHASING AND INSTALLING THE MONUMENT, IF FUNDS ARE NOT OTHERWISE APPROPRIATED.
The Resolution was ordered referred to the Committee on Education and Public Works.

INTRODUCTION OF BILLS

The following Bills were introduced, read the first time, and referred to appropriate committees:

H. 4094 (Word version) -- Rep. Neal: A BILL TO AMEND SECTION 16-3-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUNISHMENT FOR MURDER, SO AS TO PROVIDE THAT A PERSON MAY NOT BE EXECUTED IF THE PERSON WAS UNDER EIGHTEEN YEARS OLD WHEN THE CRIME WAS COMMITTED AND TO DELETE THE MITIGATING CIRCUMSTANCE OF BEING UNDER THE AGE OF EIGHTEEN WHEN THE CRIME WAS COMMITTED.
Referred to Committee on Judiciary

H. 4095 (Word version) -- Reps. Neal, Howard and Scott: A BILL TO AMEND ACT 814 OF 1978, AS AMENDED, RELATING TO THE PER DIEM ALLOWANCE AND MILEAGE EXPENSE FOR TRUSTEES OF RICHLAND COUNTY SCHOOL DISTRICTS NUMBERS ONE AND TWO, SO AS TO INCREASE THE NUMBER OF MEETINGS PER YEAR FOR WHICH THE PER DIEM ALLOWANCE AND MILEAGE EXPENSE ARE AUTHORIZED TO BE PAID.
On motion of Rep. HOWARD, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 4096 (Word version) -- Reps. Neal, Scott, Bales, Breeland, Clyburn, Govan, Hayes, M. Hines, Inabinett, Mack, Martin and Rhoad: A BILL TO AMEND TITLE 48, CHAPTER 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-95 SO AS TO ENACT THE SOUTH CAROLINA NEIGHBORHOOD PROTECTION ACT; WHICH ESTABLISHES A CAUSE OF ACTION FOR AN OWNER OF PROPERTY ADVERSELY IMPACTED BY THE POLLUTION, IMPAIRMENT, OR DESTRUCTION OF NATURAL RESOURCES DUE TO THE USE OF AN ADJACENT PROPERTY.
Referred to Committee on Agriculture, Natural Resources and Environmental Affairs

H. 4097 (Word version) -- Rep. Neal: A BILL TO AMEND CHAPTER 25, TITLE 17, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JUDGMENT AND EXECUTION AGAINST PERSONS CONVICTED OF CRIME, BY ADDING ARTICLE 7 SO AS TO ENACT THE "SOUTH CAROLINA RACIAL JUSTICE ACT" WHICH PROHIBITS THE EXECUTION OF THE DEATH SENTENCE FOR ANY PERSON IF THE SENTENCE WAS IMPOSED BASED ON RACE; TO PROVIDE FOR ESTABLISHING AN INFERENCE THAT RACE WAS THE BASIS OF A DEATH SENTENCE; TO PROVIDE FOR THE REBUTTAL OF AN INFERENCE BY CLEAR AND CONVINCING EVIDENCE, AND TO PROVIDE FOR THE RETROACTIVE APPLICATION OF THIS ACT.
Referred to Committee on Judiciary

H. 4098 (Word version) -- Rep. Neal: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 121 TO TITLE 44 SO AS TO ENACT THE ENVIRONMENTAL BILL OF RIGHTS ACT; TO AUTHORIZE A CIVIL ACTION FOR DECLARATORY OR EQUITABLE RELIEF BROUGHT IN THE NAME OF THE STATE FOR THE PROTECTION OF AIR, WATER, LAND, AND OTHER NATURAL RESOURCES; TO PROVIDE EXCEPTIONS AND PROCEDURES; AND TO AUTHORIZE A CIVIL ACTION FOR DECLARATORY OR EQUITABLE RELIEF AGAINST THE STATE CHALLENGING ENVIRONMENTAL QUALITY STANDARDS PROMULGATED OR ISSUED BY THE STATE.
Referred to Committee on Agriculture, Natural Resources and Environmental Affairs

H. 4099 (Word version) -- Reps. Neal, Cobb-Hunter, Breeland, J. Hines, Howard, Lloyd, Seithel and Whipper: A BILL TO AMEND SECTION 48-1-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DECLARATION OF LEGISLATIVE PURPOSE UNDER THE POLLUTION CONTROL ACT, SO AS TO REVISE THIS STATEMENT OF PURPOSE; BY ADDING SECTION 44-1-25 SO AS TO REQUIRE AND PROVIDE PROCEDURES FOR THE GENERAL ASSEMBLY TO REVIEW THE QUALIFICATIONS OF THE GOVERNOR'S APPOINTEES TO THE BOARD OF HEALTH AND ENVIRONMENTAL CONTROL; BY ADDING SECTION 48-1-25 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO DEVELOP AND IMPLEMENT A LONG RANGE STRATEGY FOR PRESERVING AND PROTECTING THE STATE'S NATURAL RESOURCES AND TO REQUIRE THE DEPARTMENT TO PREPARE A DETAILED STATEMENT ON THE COSTS AND BENEFITS OF ACTIONS TO IMPLEMENT THIS STRATEGY; TO AMEND SECTION 44-1-20, AS AMENDED, RELATING TO THE CREATION OF THE DEPARTMENT AND BOARD OF HEALTH AND ENVIRONMENTAL CONTROL, SO AS TO PRESCRIBE CERTAIN FACTORS THAT MUST BE CONSIDERED IN APPOINTING MEMBERS TO THE BOARD; AND TO AMEND SECTION 48-1-50, RELATING TO THE POWERS OF THE DEPARTMENT UNDER THE POLLUTION CONTROL ACT, SO AS TO AUTHORIZE THE DEPARTMENT TO REVIEW AND CONSIDER THE PAST ENVIRONMENTAL COMPLIANCE HISTORY OF AN APPLICANT WHEN MAKING A PERMIT DECISION.
Referred to Committee on Agriculture, Natural Resources and Environmental Affairs

HOUSE RESOLUTION

The following was introduced:

H. 4100 (Word version) -- Rep. Wilkins: A HOUSE RESOLUTION EXPRESSING THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MR. AND MRS. ALEXANDER TALLEY DIAL ON THE OCCASION OF THEIR MARRIAGE.
The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4101 (Word version) -- Rep. W. McLeod: A CONCURRENT RESOLUTION TO CONGRATULATE THE NEWBERRY COLLEGE INDIANS BASEBALL TEAM FOR WINNING THE 1999 SOUTH ATLANTIC CONFERENCE BASEBALL CHAMPIONSHIP AND TO COMMEND THE TEAM FOR ITS OUTSTANDING SEASON.
The Concurrent Resolution was agreed to and ordered sent to the Senate.

HOUSE RESOLUTION

On motion of Rep. W. MCLEOD, with unanimous consent, the following was taken up for immediate consideration:

H. 4102 (Word version) -- Rep. W. McLeod: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO THE NEWBERRY COLLEGE INDIANS BASEBALL TEAM, COACHES, AND OFFICIALS OF NEWBERRY, SOUTH CAROLINA, ON TUESDAY, MAY 18, 1999, AT A TIME TO BE DETERMINED BY THE SPEAKER FOR THE PURPOSE OF BEING RECOGNIZED AND CONGRATULATED ON WINNING THE 1999 SOUTH ATLANTIC CONFERENCE BASEBALL CHAMPIONSHIP.

Be it resolved by the House of Representatives:

That the privilege of the floor of the House of Representatives be extended to the baseball team, coaches, and officials of Newberry College, Newberry, South Carolina, on Tuesday, May 18, 1999, at a time to be determined by the Speaker, for the purpose of being recognized and congratulated on winning the 1999 South Atlantic Conference Baseball Championship.

The Resolution was adopted.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows:

Allen                  Allison                Bailey
Bales                  Barfield               Barrett
Battle                 Beck                   Bowers
Breeland               Brown G.               Brown H.
Brown J.               Campsen                Carnell
Cato                   Chellis                Clyburn
Cooper                 Dantzler               Easterday
Edge                   Emory                  Fleming
Gamble                 Gilham                 Gourdine
Hamilton               Harrell                Harris
Harrison               Harvin                 Haskins
Hawkins                Hayes                  Hines J.
Hines M.               Hinson                 Howard
Inabinett              Jennings               Keegan
Kelley                 Kennedy                Kirsh
Klauber                Knotts                 Koon
Lanford                Law                    Leach
Lee                    Littlejohn             Lloyd
Loftis                 Lourie                 Lucas
Mack                   Maddox                 Martin
Mason                  McCraw                 McGee
McLeod M.              McLeod W.              McMahand
Meacham                Miller                 Neal J.M.
Neilson                Ott                    Parks
Phillips               Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Sandifer               Seithel
Sharpe                 Sheheen                Simrill
Smith D.               Smith J.               Smith R.
Stille                 Stuart                 Taylor
Townsend               Tripp                  Trotter
Vaughn                 Walker                 Webb
Whatley                Wilder                 Wilkes
Wilkins                Witherspoon            Woodrum

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Thursday, May 13.

John Altman                                 Harry Askins
Gilda Cobb-Hunter                      Bill Cotty
Ralph Davenport                        Greg Delleney
Jerry Govan                                 H.B. "Chip" Limehouse
Woodrow McKay                          Bessie Moody-Lawrence
Joseph Neal                                 Todd Rutherford
John Scott                                  Theodore Brown
Jackson Whipper
Total Present--117

LEAVE OF ABSENCE

The SPEAKER granted Rep. YOUNG-BRICKELL a leave of absence for the day.

LEAVE OF ABSENCE

The SPEAKER granted Rep. MCKAY a leave of absence for the remainder of the day.

STATEMENT OF ATTENDANCE

Rep. JENNINGS signed a statement with the Clerk that he came in after the roll call of the House and was present for the Session on Tuesday, May 11.

SENT TO THE SENATE

The following Bills and Joint Resolutions were taken up, read the third time, and ordered sent to the Senate:

H. 4082 (Word version) -- Reps. Stille, Carnell and Townsend: A BILL TO ABOLISH THE ABBEVILLE COUNTY BOARD OF EDUCATION AND DEVOLVE ITS POWERS AND DUTIES UPON THE BOARD OF TRUSTEES OF ABBEVILLE COUNTY SCHOOL DISTRICT 60, AND TO CHANGE THE NAME OF ABBEVILLE COUNTY SCHOOL DISTRICT 60 TO THE ABBEVILLE COUNTY SCHOOL DISTRICT EFFECTIVE JULY 1, 2000.

H. 4012 (Word version) -- Reps. Neal, J. Brown, Quinn, Bales, Cotty, Harrison, Lourie, Rutherford, F. Smith, J. Smith and Scott: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO ESTABLISH FORTY-FIVE MILE AN HOUR SPEED ZONES AND INSTALL FLASHING TRAFFIC SIGNALS AT CHURCHES LOCATED ON HIGHWAY 601 FROM THE KERSHAW COUNTY LINE TO HIGHWAY 378.

H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.

H. 3419 (Word version) -- Reps. Klauber, Cooper, Lanford, Fleming, Taylor, Limehouse, Altman, Knotts, Hawkins, Loftis, Sandifer, Harrison, Lucas, Robinson, Witherspoon, Hinson, Vaughn, Keegan, Riser, Wilkins, Young-Brickell and Cave: A BILL TO AMEND TITLE 31, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HOUSING AND REDEVELOPMENT BY ADDING CHAPTER 18 SO AS TO ENACT THE "SOUTH CAROLINA SHOOTING RANGE PROTECTION ACT OF 1999"; TO DEFINE "SHOOTING RANGE" AND "SUBSTANTIAL CHANGE IN USE"; TO REGULATE NUISANCE ACTIONS IN CONNECTION WITH THE ACQUISITION OF PROPERTY NEAR EXISTING SHOOTING RANGES, THE ESTABLISHMENT OF SHOOTING RANGES NEAR EXISTING PROPERTY, AND DORMANT SHOOTING RANGES; TO PROVIDE CONDITIONS AND LIMITATIONS FOR REGULATION OF NOISE CONTROL OF A SHOOTING RANGE BY COUNTY OR MUNICIPAL ORDINANCES; AND TO PROVIDE THAT THIS CHAPTER DOES NOT PROHIBIT A LOCAL GOVERNMENT FROM REGULATING THE LOCATION AND CONSTRUCTION OF A SHOOTING RANGE AFTER THE EFFECTIVE DATE OF THIS ACT.

H. 4067 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, STATE BOARD OF PHARMACY, RELATING TO FACILITY PERMIT CLASSIFICATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2426, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4072 (Word version) -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO ENVIRONMENTAL PROTECTION FEES, DESIGNATED AS REGULATION DOCUMENT NUMBER 2374, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4073 (Word version) -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO INDIVIDUAL RESIDENTIAL WELL AND IRRIGATION WELL PERMITTING, DESIGNATED AS REGULATION DOCUMENT NUMBER 2351, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

RETURNED TO THE SENATE WITH AMENDMENT

The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments:

S. 277 (Word version) -- Senators Thomas, Giese and Wilson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-1080 SO AS TO PROVIDE THAT SELLING URINE WITH THE INTENT TO DEFRAUD A DRUG SCREENING TEST IS A FELONY, AND TO PROVIDE A PENALTY.

H. 3804 -- AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 3804 (Word version) -- Reps. Knotts, Whatley, Seithel, Koon, McGee, Wilkins, Harrison, Allison, Altman, Askins, Bales, Barrett, Battle, Bauer, Beck, H. Brown, J. Brown, T. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Dantzler, Davenport, Delleney, Edge, Emory, Fleming, Gilham, Gourdine, Hamilton, Haskins, Hawkins, Hinson, Inabinett, Jennings, Keegan, Kennedy, Kirsh, Klauber, Law, Leach, Limehouse, Littlejohn, Lourie, Lucas, Mason, McCraw, M. McLeod, Meacham, Miller, Neal, Neilson, Ott, Phillips, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Sharpe, Sheheen, Simrill, D. Smith, J. Smith, Stuart, Taylor, Tripp, Trotter, Walker, Webb, Whipper, Wilder, Woodrum and Young-Brickell: A BILL TO AMEND CHAPTER 23, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WEAPONS, BY ADDING ARTICLE 7 SO AS TO PROVIDE DEFINITIONS RELATING TO BOMBS AND WEAPONS OF MASS DESTRUCTION, TO PROHIBIT MANUFACTURE, TRANSPORTATION, POSSESSION, OR USE OF BOMBS AND WEAPONS OF MASS DESTRUCTION, AND TO PROVIDE PENALTIES FOR VIOLATIONS.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name GGS\AMEND\22330DJC99), which was adopted.
Amend the bill, as and if amended, Section 16-23-710(15)(b), as contained in SECTION 1, by striking / than one-half ounce / on line 10, page 4, and inserting / fifty cubic centimeters /.
When amended, subitem (b) of Section 16-23-710 (15) reads:
/         "(b)     tear gas devices designed to be carried on or about the person which contain not more than fifty cubic centimeters of the chemical; or" /
Amend the bill further, as and if amended, Section 16-23-740, as contained in SECTION 1, by striking / misdemeanor / on line 4, page 6, and inserting / felony /.
When amended Section 16-23-740 reads:
/     "Section 16-23-740.         A person who knowingly hinders or obstructs an explosive ordinance technician, bomb technician, law enforcement officer, fire official, emergency management official, public safety officer, animal trained to detect destructive devices, or any robot or mechanical device designed for or utilized by a law enforcement officer, fire official, emergency management official, public safety officer, or bomb technician of this State or of the United States while in the detection, disarming, or destruction of a destructive device is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than five years." /
Amend the bill further, as and if amended, Section 16-23-750, as contained in SECTION 1, by striking / misdemeanor / on line 12, page 6, and inserting / felony /.
When amended Section 16-23-750 reads:
/     "Section 16-23-750.             A person who transmits a false alarm to the effect that a destructive device or hazardous substance of any nature has been placed where its explosion, detonation, or release would cause damage, injury, or death to human life or property, knowing the same to be false is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than five years." /
Amend the bill further, as and if amended, Section 16-23-770(c), as contained in SECTION 1, by striking / or / following the / ; / on page 7, line 37, and inserting / or / after / Act / on page 7, line 40, and by adding a new subitem numbered appropriately at the end of subsection (C) to read:
/         "(4)     small arms ammunition;

(5)     components of small arms ammunition;

(6)     ammunition reloading equipment;

(7)     the use of small arms propellant when used in war reenactments.

(D)     nor do the provisions of this article apply to the military or naval forces of the United States, to the duly organized military force of a state or territory, or to police or fire departments in this State when they are acting within their official capacities and in performance of their duties." /
When amended the undesignated paragraph on page 7, line 30, after subsection (C) reads:
/     "The provisions of this article do not apply to the lawful use of:

(1)     fertilizers, propellant activated devices, or propellant activated industrial tools manufactured, imported, distributed, or used for their intended purposes;

(2)     a pesticide which is manufactured, stored, transported, distributed, possessed, or used in accordance with Chapter 7, Title 2, the federal Insecticide, Fungicide, and Rodenticide Act and the Environmental Pesticide Control Act of 1972;

(3)     explosives, blasting agents, detonators, and other objects regulated and controlled by the South Carolina Explosives Control Act; or

(4)     small arms ammunition;

(5)     components of small arms ammunition;

(6)     ammunition reloading equipment;

(7)     the use of small arms propellant when used in war reenactments.

(D)     nor do the provisions of this article apply to the military or naval forces of the United States, to the duly organized military force of a state or territory, or to police or fire departments in this State when they are acting within their official capacities and in performance of their duties." /
Renumber sections to conform.
Amend totals and title to conform.

Rep. JENNINGS explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3804 -- ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. JENNINGS, with unanimous consent, it was ordered that H. 3804 be read the third time tomorrow.

S. 118 -- OBJECTION AND REQUESTS FOR DEBATE

The following Bill was taken up:

S. 118 (Word version) -- Senators Mescher and Reese: A BILL TO AMEND SECTION 47-5-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON THE SALE OF WILD CARNIVORES AS PETS, SO AS TO DELETE THE REFERENCE TO FERRETS, EXEMPT THEM FROM THE PROHIBITION, AND TO PROVIDE FOR NOTICES THAT FERRETS HAVE A PROPENSITY TO MAKE UNPROVOKED ATTACKS THAT CAUSE BODILY INJURY TO A HUMAN BEING.
Rep. RHOAD explained the Bill.

Reps. KIRSH, HINSON, CHELLIS and SEITHEL requested debate on the Bill.

Rep. SEITHEL moved to adjourn debate on the Bill until Tuesday, June 15.

Rep. HASKINS moved to table the motion, which was agreed to.

Rep. LAW objected to the Bill.

S. 591 -- DEBATE ADJOURNED

The following Bill was taken up:

S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.

The Agriculture, Natural Resources and Environmental Affairs Committee proposed the following Amendment No. 1 (Doc Name GJK\AMEND\20664DJC99):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION     1.     Chapter 1, Title 48 of the 1976 Code is amended by adding:

"Section 48-1-83.         (A)     The department shall not allow a depression in dissolved oxygen concentration greater than 0.10 mg/l in a naturally low dissolved oxygen waterbody unless the requirements of this section are all satisfied. The provisions of this section apply in addition to any standards for a dissolved oxygen depression in a naturally low dissolved oxygen waterbody promulgated by the department by regulation.

(B)     A party seeking a site specific effluent limit related to dissolved oxygen pursuant to this section must notify the department in writing of its intent to obtain the depression. Upon receipt of the written notice of this intent, the department shall within thirty days publish a public notice indicating the party seeking the dissolved oxygen depression and the specific site for which the dissolved oxygen depression is sought in addition to the department's usual public notice procedures. The notice shall be in the form of an advertisement in a newspaper of statewide circulation and in the local newspaper with the greatest general circulation in the affected area. If within thirty days of the publication of the public notice the department receives a request to hold a public hearing from at least twenty citizens or residents of the county or counties affected, the department shall conduct such a hearing. The hearing must be conducted at an appropriate location near the specific site for which the dissolved oxygen depression is sought and must be held within ninety days of the publication of the initial public notice by the department.

(C)     The party seeking a site specific effluent limit related to dissolved oxygen must conduct a study:

(1)     to determine natural dissolved oxygen conditions at the specific site for which the depression is sought. The study must use an appropriate reference site. The reference site is not restricted to the State but must have similar geography, environmental setting, and climatic conditions. However, if an appropriate reference site cannot be located, the party may use a site-specific dynamic water quality model or, if available, a site- specific multidimensional dynamic water quality model.

(2)     to assess the ability of aquatic resources at the specific site for which the dissolved oxygen depression is sought to tolerate the proposed dissolved oxygen depression.
(D)     The department shall provide the following agencies sixty days in which to review and provide comments on the design of the scientific study required in (C):

(1)     the United States Fish & Wildlife Service of the United States Department of the Interior;

(2)     the United States Geological Survey of the United States Department of the Interior; and

(3)     the National Ocean Service of the United States Department of Commerce and the National Marine Fisheries Service of the United States Department of Commerce.

The department and the Department of Natural Resources shall select and convene a science peer review committee to review the design of the study as required by subsection (C). The department, the Department of Natural Resources, and the Environmental Protection Agency must concur within sixty days on the final design before initiation of a study. Justification of any objection to the study design must be based solely on the greater weight of scientific considerations.

(E)     The department shall provide the following agencies sixty days to review and comment on the results of the studies required in (C):

(1)     the United States Fish and Wildlife Service of the United States Department of the Interior;

(2)     the United States Geological Survey of the United States Department of the Interior; and

(3)     the National Ocean Service of the United States Department of Commerce and the National Marine Fisheries Service of the United States Department of Commerce.

In order for a site specific effluent limit related to dissolved oxygen to be implemented pursuant to this section, the department, the Department of Natural Resources, and the Environmental Protection Agency must concur that the results of the study required in subsection (C) justify its implementation. In reaching a decision on the study results, the department, the Department of Natural Resources, and the Environmental Protection Agency must base their decisions on the greater weight of the scientific evidence taken as a whole."
SECTION     2.     This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals and title to conform.

Rep. DAVENPORT explained the amendment.

Rep. ROBINSON moved to adjourn debate on the Bill, which was agreed to.

LEAVE OF ABSENCE

The SPEAKER granted Rep. WEBB a temporary leave of absence.

S. 598 -- POINT OF ORDER

The following Bill was taken up:

S. 598 (Word version) -- Judiciary Committee: A BILL TO AMEND SECTIONS 1-3-250, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPEALS OF OFFICERS REMOVED BY THE GOVERNOR; 1-23-390, RELATING TO JUDICIAL REVIEW OF CERTAIN ADMINISTRATIVE PROCEDURES ACT APPEALS; 4-27-320, RELATING TO APPEALS OF CIRCUIT COURT DECISIONS INVOLVING COUNTY BOARD OF ADJUSTMENT CASES; 4-27-630, RELATING TO APPEALS OF CERTAIN COUNTY PLANNING CASES; 6-7-790, RELATING TO APPEALS OF ZONING DECISIONS; 6-29-850, RELATING TO APPEALS OF BOARD OF ZONING APPEALS DECISIONS; 6-29-940, RELATING TO APPEALS OF BOARD OF ARCHITECTURAL REVIEW DECISIONS; 14-11-85, RELATING TO APPEALS FROM FINAL JUDGMENTS ENTERED BY A MASTER-IN-EQUITY; 17-27-100, RELATING TO JUDICIAL REVIEWS OF POST-CONVICTION RELIEF DECISIONS; 20-7-2220, RELATING TO APPEALS OF FAMILY COURT DECISIONS PERTAINING TO THE COMMITMENT OR CUSTODY OF CHILDREN; 34-29-180, RELATING TO JUDICIAL REVIEW OF CONSUMER FINANCE LAW DECISIONS; 37-6-108, AS AMENDED, RELATING TO REVIEW OF ADMINISTRATIVE ENFORCEMENT ORDERS OF THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS; 37-6-415, RELATING TO JUDICIAL REVIEW OF CONTESTED CASES UNDER THE CONSUMER PROTECTION CODE; 39-37-100, RELATING TO JUDICIAL REVIEW OF CERTAIN DEPARTMENT OF AGRICULTURE DECISIONS; 41-31-630 AND 41-35-750, RELATING TO APPEAL OF CERTAIN EMPLOYMENT SECURITY COMMISSION DECISIONS; 42-17-40, AS AMENDED, RELATING TO APPEAL OF CERTAIN WORKERS' COMPENSATION COMMISSION AWARDS; 44-17-620, RELATING TO APPEALS OF PROBATE COURT ORDERS REGARDING THE COMMITMENT OF MENTALLY ILL PERSONS; 49-19-1080, RELATING TO APPEAL OF DRAINAGE AND WATER RECLAMATION DECISIONS; 57-5-1120, RELATING TO JUDICIAL REVIEW OF DEPARTMENT OF TRANSPORTATION DECISIONS PERTAINING TO PRIVATE DRIVEWAYS AND SIDE-ROAD ENTRANCES; 58-5-360, RELATING TO APPEALS OF PUBLIC SERVICE COMMISSION DECISIONS PERTAINING TO GAS, HEAT, WATER, AND SEWAGE COMPANIES; 58-9-1470, RELATING TO APPEALS OF ORDERS OF THE PUBLIC SERVICE COMMISSION PERTAINING TO TELEPHONE AND TELEGRAPH COMPANIES; 59-25-260, RELATING TO APPEALS OF STATE BOARD OF EDUCATION ORDERS PERTAINING TO TEACHERS; 59-25-480, RELATING TO APPEALS OF SCHOOL DISTRICT BOARD OF TRUSTEES' DECISIONS PERTAINING TO TEACHERS; AND 59-25-830, RELATING TO DECISIONS OF STATE BOARD OF EDUCATION PERTAINING TO DISCRIMINATION AGAINST TEACHERS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH THESE APPEALS OR REVIEWS MUST BE TAKEN INCLUDING AS PROVIDED BY THE SOUTH CAROLINA APPELLATE COURT RULES; TO AMEND SECTIONS 1-7-140, RELATING TO ANNUAL REPORTS TO THE GENERAL ASSEMBLY BY THE ATTORNEY GENERAL; 2-13-60, RELATING TO DUTIES OF THE CODE COMMISSIONER; 2-13-80, RELATING TO ANNUAL CUMULATIVE SUPPLEMENTS TO THE SOUTH CAROLINA CODE OF LAWS; 14-1-40, RELATING TO THE DEFINITION OF A CLERK FOR CERTAIN COURT PURPOSES; 14-8-210, RELATING TO REVIEW BY THE SUPREME COURT OF COURT OF APPEALS' DECISIONS; 15-1-60, RELATING TO THE DEFINITION OF A CLERK FOR PURPOSES OF CIVIL REMEDIES AND PROCEDURES; 15-1-260, RELATING TO PAYMENTS OF DEPOSITS IN LIEU OF BONDS; 15-17-550, RELATING TO ARREST AND BAIL APPEAL PROCEEDINGS; 17-4-70, RELATING TO DUTIES OF THE OFFICE OF APPELLATE DEFENSE; 17-15-200, RELATING TO PERSONS TO WHOM A DEPOSIT IN LIEU OF BOND OR RECOGNIZANCE MUST BE PAID; 18-1-20, RELATING TO CERTAIN DEFINITIONS IN REGARD TO CIVIL AND CRIMINAL APPEALS; 18-9-10, AS AMENDED, 18-9-30, 18-9-40, AND 18-9-270, ALL RELATING TO APPEALS TO THE SUPREME COURT; 27-40-800, RELATING TO LANDLORD AND TENANT APPEALS; 38-59-40, AS AMENDED, RELATING TO LIABILITY FOR ATTORNEYS' FEES WHERE AN INSURER HAS REFUSED TO PAY A CLAIM AND APPEALS THEREFROM; 38-63-90, RELATING TO AUTHORIZATION OF ATTORNEYS' FEES WHERE A LIFE INSURER REFUSES TO PAY A CLAIM AND APPEALS THEREFROM; 39-3-190, RELATING TO ENFORCEMENT OF TRUST AND MONOPOLY PROVISIONS BY THE ATTORNEY GENERAL; 42-1-650, RELATING TO LIMITATIONS ON CERTAIN WORKERS' COMPENSATION ACTIONS; 50-5-130, AS AMENDED, RELATING TO PROSECUTION OF FISH, GAME, AND WATERCRAFT VIOLATORS; 59-25-270, RELATING TO REVOCATION OR SUSPENSION OF TEACHERS' CERTIFICATES AND APPEALS THEREFROM; 62-1-308, AS AMENDED, RELATING TO APPEALS FROM THE PROBATE COURT UNDER THE SOUTH CAROLINA PROBATE CODE, SO AS TO INCLUDE REFERENCES THEREIN TO THE COURT OF APPEALS OR TO CLARIFY REFERENCES THEREIN TO THE COURT OF APPEALS OR OTHER COURTS; TO AMEND SECTIONS 1-7-40, RELATING TO APPEARANCES FOR THE STATE IN THE SUPREME COURT BY THE ATTORNEY GENERAL, SO AS TO CLARIFY A REFERENCE THEREIN TO THE SUPREME COURT; 14-1-70, RELATING TO THE LISTING OF THE COURTS OF JUSTICE IN THIS STATE, SO AS TO INCLUDE THE COURT OF APPEALS THEREIN AND DELETE VARIOUS OBSOLETE REFERENCES; 14-8-200, RELATING TO JURISDICTION OF THE COURT OF APPEALS, SO AS TO FURTHER PROVIDE FOR THIS JURISDICTION; 14-8-260, RELATING TO DETERMINATION OF CASES ASSIGNED TO THE COURT OF APPEALS, SO AS TO PROVIDE THAT THE SUPREME COURT SHALL SPECIFY BY RULE WHETHER OR NOT THE NOTICE OF APPEAL SHALL BE FILED INITIALLY WITH THE SUPREME COURT OR COURT OF APPEALS AND TO ESTABLISH PROCEDURES FOR THE FILING OF THESE NOTICES OF APPEAL; 15-51-42, RELATING TO APPROVAL OF SETTLEMENTS OF WRONGFUL DEATH OR SURVIVAL ACTIONS, SO AS TO SPECIFY THE PARTICULAR COURTS TO WHICH CERTAIN PETITIONS SHALL BE ADDRESSED; 18-9-150, RELATING TO DEPOSITS OR SURETY WHEN A JUDGMENT REQUIRES DELIVERY OF DOCUMENTS; 18-9-160, RELATING TO STAYING A JUDGMENT TO EXECUTE A CONVEYANCE; 18-9-220, RELATING TO WHEN NOTICE OF APPEAL STAYS LOWER COURT PROCEEDINGS, SO AS TO SPECIFY WHICH APPELLATE COURT IS ENTITLED TO ISSUE CERTAIN ORDERS OR ISSUE BINDING JUDGMENTS IN REGARD THERETO; TO REPEAL SECTIONS 14-8-540, RELATING TO PROCEDURES FOR APPEALS TO THE COURT OF APPEALS; 15-37-150, RELATING TO COSTS ON APPEAL TO THE SUPREME COURT; AND 17-4-90, RELATING TO WHEN TIME TO APPEAL COMMENCES IN CERTAIN CASES INVOLVING INDIGENT PERSONS.

POINT OF ORDER

Rep. HARRISON made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

ORDERED TO THIRD READING

The following Bills were taken up, read the second time, and ordered to a third reading:

H. 3764 (Word version) -- Reps. Sheheen, Harrison, Altman and Delleney: A BILL TO AMEND SECTION 14-1-215, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A RETIRED JUDGE OR JUSTICE BEING ASSIGNED BY THE CHIEF JUSTICE OF THE SUPREME COURT TO PRESIDE OVER CERTAIN CASES, SO AS TO PROVIDE THAT AN ACTIVE RETIRED JUDGE FROM THE CIRCUIT COURT HAS THE SAME POWERS AT CHAMBERS AS A JUDGE OF THE CIRCUIT COURT.
Rep. COTTY explained the Bill.

S. 577 (Word version) -- Senators McConnell, Leventis, Ryberg and Ford: A BILL TO AMEND SECTION 2-19-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JUDICIAL MERIT SELECTION COMMISSION, SO AS TO PROVIDE THAT A PERSON MAY NOT SEEK MORE THAN ONE JUDICIAL VACANCY AT THE SAME TIME.
Rep. COTTY explained the Bill.

S. 660 (Word version) -- Judiciary Committee: A BILL TO AMEND SECTION 43-35-85, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADULT PROTECTION, SO AS TO PROVIDE THAT ANY PERSON WHO KNOWINGLY AND WILFULLY ABUSES, NEGLECTS, OR EXPLOITS A VULNERABLE ADULT IS GUILTY OF A FELONY AND MUST BE IMPRISONED NOT MORE THAN FIVE YEARS, TO FURTHER PROVIDE THAT ANY PERSON WHO KNOWINGLY AND WILFULLY ABUSES OR NEGLECTS A VULNERABLE ADULT RESULTING IN GREAT BODILY INJURY IS GUILTY OF A FELONY AND MUST BE IMPRISONED NOT MORE THAN FIFTEEN YEARS, AND TO FURTHER PROVIDE THAT ANY PERSON WHO KNOWINGLY AND WILFULLY ABUSES OR NEGLECTS A VULNERABLE ADULT RESULTING IN DEATH IS GUILTY OF A FELONY AND MUST BE IMPRISONED NOT MORE THAN THIRTY YEARS; TO AMEND SECTION 16-1-90, RELATING TO CRIMES CLASSIFIED AS FELONIES, SO AS TO PROVIDE THAT ABUSE, OR NEGLECT OF A VULNERABLE ADULT RESULTING IN DEATH IS A CLASS A FELONY, TO FURTHER PROVIDE THAT ABUSE OR NEGLECT OF A VULNERABLE ADULT RESULTING IN GREAT BODILY INJURY IS A CLASS D FELONY, AND TO FURTHER PROVIDE THAT ABUSE, NEGLECT, OR EXPOITATION OF A VULNERABLE ADULT IS A CLASS F FELONY; AND TO ADD SECTION 16-3-1050, SO AS TO PROVIDE PENALTIES FOR ABUSE, NEGLECT, OR EXPLOITATION OF A VULNERABLE ADULT.
Rep. JENNINGS explained the Bill.

H. 3870 (Word version) -- Reps. J. Smith, Harrison, Altman, Bailey, Bales, Campsen, Dantzler, Davenport, Edge, Emory, Harvin, Hayes, Keegan, Kelley, Lloyd, Lourie, Mack, Martin, McGee, Ott, Sandifer, Sharpe and Stuart: A BILL TO AMEND CHAPTER 25, TITLE 17, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JUDGMENT AGAINST PERSONS CONVICTED OF CRIME, BY ADDING ARTICLE 5 SO AS TO ENACT THE "SOUTH CAROLINA NOTORIETY FOR PROFIT ACT" WHICH SHALL PROVIDE PROCEDURES FOR THE RECOVERY OF PROFITS OBTAINED OR GENERATED FROM THE COMMISSION OF A CRIME BY ELIGIBLE PERSONS OR BY THE STATE OFFICE OF VICTIM ASSISTANCE AND TO REPEAL SECTIONS 15-59-40 THROUGH 15-59-80, RELATING TO MONEYS PAID INTO COURT.
Rep. CAMPSEN explained the Bill.

H. 3764 -- ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. COTTY, with unanimous consent, it was ordered that H.3764 be read the third time tomorrow.

S. 577 -- ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. COTTY, with unanimous consent, it was ordered that S.577 be read the third time tomorrow.

S. 660 -- ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. JENNINGS, with unanimous consent, it was ordered that S.660 be read the third time tomorrow.

H. 3870 -- ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. CAMPSEN, with unanimous consent, it was ordered that H.3870 be read the third time tomorrow.

H. 3392 -- POINT OF ORDER

The following Bill was taken up:

H. 3392 (Word version) -- Reps. Gamble, Knotts, Whatley, Koon, Harrison and Riser: A BILL TO AMEND SECTION 23-11-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE QUALIFICATIONS NECESSARY TO OFFER AS A CANDIDATE FOR SHERIFF, SO AS TO PROVIDE THAT SERVICE AS A CORONER FOR TEN YEARS SATISFIES THE SAME REQUIREMENT AS TEN YEARS OF SERVICE AS A SUMMARY COURT JUDGE.
Rep. CAMPSEN explained the Bill.

POINT OF ORDER

Rep. GOVAN made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3858 -- POINT OF ORDER

The following Bill was taken up:

H. 3858 (Word version) -- Reps. Battle and M. Hines: A BILL TO AMEND SECTION 4-9-82, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TRANSFER OF THE ASSETS, PROPERTIES, AND RESPONSIBILITIES OF A PUBLIC SERVICE DISTRICT FOR THE DELIVERY OF CLINICAL MEDICAL SERVICES TO ANOTHER POLITICAL SUBDIVISION OR AN APPROPRIATE HEALTH CARE PROVIDER LOCATED WITHIN THE DISTRICT, SO AS TO DELETE THE REQUIREMENT THAT THE SERVICES MUST BE CLINICAL AND THAT THE TRANSFER MUST BE TO ANOTHER POLITICAL SUBDIVISION OR AN APPROPRIATE HEALTH CARE PROVIDER IN THE DISTRICT, LIMIT THE APPLICATION OF THIS SECTION TO A HOSPITAL PUBLIC SERVICE DISTRICT, PROVIDE THAT THE REFERENDUM REQUIREMENT IS NOT NECESSARY FOR A TRANSFER TO CERTAIN ENTITIES, AND PROVIDE THAT THE DISTRICT MAY BE DISSOLVED UPON THE COMPLETION OF THE TRANSFER AND ASSUMPTION OF THE RESPONSIBILITIES AND OBLIGATIONS OF THE DISTRICT.
Rep. CAMPSEN explained the Bill.

POINT OF ORDER

Rep. WILDER made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3641 -- REQUESTS FOR DEBATE WITHDRAWN

Reps. FLEMING, R. SMITH, HARRISON and HAWKINS withdrew their requests for debate on the following Bill:

H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.

S. 199 -- REQUEST FOR DEBATE WITHDRAWN

Rep. TRIPP withdrew his request for debate on the following Bill:

S. 199 (Word version) -- Senators J. Verne Smith, Wilson, Giese and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-2915 SO AS TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE A REGISTRATION STATEMENT FOR A RELIGIOUS DAY CARE CENTER WHEN REQUIREMENTS ARE MET AND TO REQUIRE THE CENTER OPERATOR TO DISPLAY THE REGISTRATION AND USE ITS REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2700, AS AMENDED, RELATING TO DEFINITIONS UNDER DAY CARE LICENSING, SO AS TO REVISE THE DEFINITIONS OF "CHILD DAY CARE FACILITIES", "GROUP DAY CARE HOME", AND "FAMILY DAY CARE HOME", AND TO ADD DEFINITIONS; TO AMEND SECTION 20-7-2780, RELATING TO LICENSES OF CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REQUIRE STATING THE LICENSE NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2860, AS AMENDED, RELATING TO FAMILY DAY CARE HOME REGISTRATIONS, SO AS TO REQUIRE STATING THE REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 20-7-2900, AS AMENDED, RELATING TO REGISTRATION OF CERTAIN CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE THEM TO COMPLY WITH INSPECTION PROCEDURES AND WITH REQUIREMENTS FOR FLOOR SPACE, CHILD-STAFF RATIOS, AND STAFF TRAINING; TO AMEND SECTION 20-7-2910, RELATING TO REGISTRATION AND INSPECTIONS OF CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE INSPECTIONS TO BE CONDUCTED BEFORE RENEWAL RATHER THAN ANNUALLY; TO AMEND SECTION 20-7-2920, AS AMENDED, RELATING TO INJUNCTIONS AGAINST CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REVISE CONDITIONS FOR SEEKING AN INJUNCTION AGAINST AN OPERATOR; AND TO AMEND SECTION 20-7-3030, RELATING TO DECLARATORY ORDERS OF THE DEPARTMENT OF SOCIAL SERVICES CONCERNING CONSTRUCTION OR RENOVATIONS OF A FACILITY, SO AS TO DELETE THE PROVISION PROHIBITING AN APPEAL OF THESE ORDERS AND REQUIRE THE DEPARTMENT TO PROVIDE CONSULTATION TO ADDRESS ISSUES OF COMPLIANCE.

H. 3826 -- REQUESTS FOR DEBATE WITHDRAWN

Reps. MCCRAW, NEILSON, J. HINES, WILDER, KLAUBER and TAYLOR withdrew their requests for debate on H. 3826; however, other objections and requests for debate remained on the Bill.

H. 3641 -- REQUEST FOR DEBATE WITHDRAWN

Rep. T. BROWN withdrew his request for debate on the following Bill:

H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.

H. 3826 -- OBJECTION AND REQUESTS FOR DEBATE WITHDRAWN

Reps. HAWKINS and CARNELL withdrew their request for debate and Rep. PHILLIPS withdrew his objection on the following Bill:

H. 3826 (Word version) -- Rep. Battle: A BILL TO AMEND CHAPTER 17, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OFFENSES AGAINST PUBLIC POLICY, BY ADDING SECTION 16-17-505, SO AS TO PROVIDE FOR THE OFFENSE OF SELLING OR HOLDING FOR SALE A PACKAGE OF CIGARETTES THAT VIOLATES FEDERAL LAW IN REGARD TO LABELS, PACKAGING, OR OTHER REQUIREMENTS, TO PROVIDE THAT THE ATTORNEY GENERAL MAY SEIZE AND DESTROY THE ILLEGAL PACKAGE, TO PROVIDE THAT THE DEPARTMENT OF REVENUE MAY REVOKE THE LICENSE TO SELL TOBACCO OF A PERSON WHO SELLS ILLEGAL CIGARETTE PACKAGES, TO PROVIDE THAT SELLING CIGARETTE PACKAGES IN VIOLATION OF THIS SECTION IS AN UNFAIR TRADE PRACTICE, AND TO PROVIDE PENALTIES FOR VIOLATIONS.

OBJECTION TO RECALL

Rep. SCOTT asked unanimous consent to recall H. 3197 from the Committee on Judiciary.
Rep. HARRISON objected.

SPEAKER PRO TEMPORE IN CHAIR
H. 3002 -- SENATE AMENDMENTS AMENDED AND INTERRUPTED DEBATE

The Senate amendments to the following Bill were taken up for consideration:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Edge, Robinson, Emory, McCraw, W. McLeod and J. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

Reps. WILKINS and SANDIFER proposed the following Amendment No. 2A (Doc Name GJK\AMEND\20696HTC99):
Amend the bill, as and if amended, by adding a new SECTION appropriately numbered to read:
/ SECTION     ____A.     (1)     A statewide referendum must be conducted November 2, 1999, to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission shall place the exact question contained in item (2) of this subsection on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.

(2)     The question put before the qualified electors in the referendum shall read:

"Shall cash payoffs for credits earned on video game machines continue to be allowed after June 30, 2000?

Yes     []
No     []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

(3)     In addition to all license taxes and fees imposed by the State on video games with a free play feature pursuant to Section 12-21-2720(A)(3) of the 1976 Code or any successor statute imposing such licenses and fees, there is imposed a one-time surcharge license fee of fifty dollars for each such licensed machine due and payable to the Department of Revenue on or before August 1, 1999. Failure to remit the surcharge in a timely manner is deemed failure to pay the license tax imposed pursuant to Section 12-21-2720(A)(3) or any successor statute. The revenues of this fee are appropriated to the State Election Commission to defray the expenses of the statewide referendum required by this act.
B.     Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:

"Section 12-21-2710.         It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
C.     Section 12-21-2712 of the 1976 Code is amended to read:

"Section 12-21-2712.         Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."
D.     (1)     Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:

"(3)     a machine of the nonpayout type, or 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."

(2)     Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"(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)."

(3)     Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F), which read:

"(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."
E.     Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 12-21-2726.         Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, each machine licensed pursuant to this section must be operated in a stand-alone fashion and may not be linked in any way to another coin-operated machine or device."
F.     Section 16-19-40 of the 1976 Code is amended to read:

"Section 16-19-40.     If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts, or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts, or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place, or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
G.     Section 16-19-50 of the 1976 Code is amended to read:

"Section 16-19-50.     Any person who shall set up, keep, or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts, and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."
H.     Section 12-21-2703 and 16-19-60 and Articles 20 and 22, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
I.     Notwithstanding any other effective date or repealers provided in this act, subsection A of this section takes effect upon approval by the Governor. Subsections B, C, D, E, F, G, and H take effect July 1, 2000, but only if a majority "no" vote is certified pursuant to the referendum held pursuant to subsection A of this section. When Chapter 22 of Title 12 of the 1976 Code as added by this act takes effect, the provisions of Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are suspended from the effective date of the new chapter until subsection H of this section is effective. If a majority 'yes' vote is certified, then subsections (B) through (H) do not take effect and Articles 19 and 20, Chapter 21 of Title 12 of the 1976 Code are repealed on that certification date./
Renumber sections to conform.
Amend totals and title to conform.

Rep. WILKINS moved to adjourn debate on the amendment, which was agreed to.

Reps. WILKINS, JENNINGS, HASKINS and ROBINSON proposed the following Amendment No. 3A (Doc Name COUNCIL\GJK\AMEND\20710SD99):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION     1.     Title 12 of the 1976 Code is amended by adding:

"CHAPTER 22
Coin-Operated Machines and Other Devices
Article 1
General Provisions

Section 12-22-10.     As used in this chapter, unless the context clearly requires otherwise:

(1)     'Director' means the Director of the Department of Revenue.

(2)     'Chief' means the Chief of the South Carolina State Law Enforcement Division.

(3)     'Division' means the South Carolina State Law Enforcement Division.

(4)     'Associated equipment' means a device, machine, replacement part, or part used in the manufacture, operation, or maintenance of a machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.

(5)     'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.

(6)     'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.

(7)     'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.

(8)     'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.

(9)     'Distributor' means any person who sells, buys and sells, or leases machines or associated equipment. A distributor may also own, operate, service, or repair machines in this State.

(10)     'Establishment' or 'location' means premises with machines.

(11)     'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash is available to play or simulate the play of games utilizing a video display and microprocessors in which the player may receive free games or credits that may be redeemed for cash. Each player station of a multiplayer unit is a separate machine.

(12)     'Machine owner' means any person, other than a distributor, who owns one or more machines.

(13)     'Machine operator' means any person who owns or manages an establishment with one or more machines.

(14)     'Manufacturer' means any person that manufactures, assembles, or programs machines, controllers, or associated equipment for sale or use in this State.

(15)     'Net machine income' means the amount of money that goes into the machine less payouts.

(16)     'Payout' means the total amount a player is paid at the end of play, regardless of the amount the player has deposited in the machine.

(17)     'Play' means the period of time from when money is put into the machine until cash out.

(18)     'Player' means a person who participates in the playing of a machine.

(19)     'Principal' of a business or entity means:

(a)     a person who is an officer of the business or entity which owns the business;

(b)     a partner, other than a limited partner who cannot exercise any management control;

(c)     a manager of a limited liability company which is managed by managers;

(d)     a member of a limited liability company which is managed by members;

(e)     a fiduciary, including personal representatives, trustees, guardians, committees and receivers, who manages, holds or controls title to or who is otherwise in direct or indirect control of the business;

(f)     a person who owns five percent or more of the total combined voting power of the business or entity;

(g)     a person who owns ten percent or more of the value of the business or entity; or

(h)     an employee who has daytoday operational management responsibilities for the business or entity.

(20)     'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division considers necessary to administer and enforce the provisions of this chapter.

(21)     'Type I Technician' means a person qualified to perform basic service, maintenance, and repair on machines.

(22)     'Type II Technician' means a person qualified to perform major machine repairs, configurations, communication, and diagnostic testing of machines.

(23)     'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.

Section 12-22-20.     Unless specifically granted to the division, the functions, duties, and powers set forth in this chapter are vested in the department. The department shall administer and enforce the provisions of this chapter, and may enter agreements with any agency or the division to execute the provisions of this chapter.

Section 12-22-30.     Except as provided in Section 1254240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is public information, except for proprietary information of the central computer monitoring system. The department may disclose information to the division and to other governmental entities in and outside of this State.

Section 12-22-40.     The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.

Section 12-22-50.     The department or the division may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.

Section 12-22-60.     The license fees, taxes, and penalties provided for in this chapter are a first preferred lien upon all property of the person charged. The department may execute on the lien.

Section 12-22-70.     The only forms of gambling which are legal in this State are bingo, played in accordance with Article 24 of Chapter 21 of Title 12, and games played on licensed machines operated in accordance with this chapter.

Section 12-22-80.     The department and the division have the right to examine all records of an applicant and the applicant's principals, those records under their control, and those records in which they have an interest to evaluate statements and documentation supplied with the application. All records must be retained for at least the period for which taxes may be assessed under Section 125485.

Section 12-22-90.     Any person otherwise subject to the provisions of this chapter, but who claims the benefit of an exemption from certain of its requirements in any manner, on or before September 1, 1999, shall notify the department in a statement made under penalty of perjury that he is claiming the benefits of a specific provision, shall state all reasons for claiming the benefits of the provision, and shall identify all licenses claimed to be related to that exemption. The person claiming the benefit of such a provision has the burden of proof and shall establish by clear and convincing evidence that he is entitled to the benefits claimed.

Section 12-22-100.     If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly declaring that it would have passed this chapter, 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Section 12-22-110.     (A)     The department shall require that every location and owner of each machine licensed therein maintain a log of payoffs for at least three years that shall include, at a minimum, the following:

(1)     a separate form or record of each person receiving a payoff;

(2)     the name and address of the person receiving the payoff;

(3)     the social security number of the person receiving the payoff;

(4)     a statement of the amount of the payoff;

(5)     the driver's license number or other official identification number of the person receiving the payoff, which must be independently verified by the operator prior to any payoff being made;

(6)     a signed certification by the machine operator or owner and the player, under penalty of perjury, that the information provided is complete and accurate; and

(7)     attachment to the log all validated tickets related to the payoffs.

(B)     The department by regulation may prescribe the form or format of the log required in subsection (A).

Article 3
Licensure

Section 12-22-310.     (A)     Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.

(B)     Before placement or operation, a machine must be licensed.

(C)     Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as provided in Section 12-22-330(K).

Section 12-22-320.     (A)     Every two years a manufacturer, distributor, machine owner, machine operator, establishment, type I technician, and type II technician, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application.             The fees are as follows:

(1)     Manufacturer                     $10,000

(2)     Distributor                         $15,000

(3)     Machine Owner                 $2,000

(4)     Machine Operator                 $2,000

(5)     Licensed Establishment             $1,000

(6)     Type I and Type II Technicians     $500

(B)     Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. The expiration dates are the last day of:

(1)     February in years which end in an:

(a)     odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley Counties;

(b)     even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg Counties;

(2)     May in years which end in an:

(a)     odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry Counties;

(b)     even number for Lancaster, Marion, Marlboro, Union, and York Counties;

(3)     August in years which end in an:

(a)     odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter Counties;

(b)     even number for Richland County;

(4)     November in years which end in an:

(a)     odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood Counties;

(b)     even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg Counties.

(5) If a license purchased is for less than twentythree months because of this section, the license tax must be prorated on a twentyfour month basis with each month representing one twentyfourth of the license fee imposed under this section and Section 12-22-340.

(C)     The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.

(D)     A license authorized in this section must not be issued until the department receives a completed background investigation showing that the standards provided for in Article 13 have been met by the applicant.

(E)     An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.

(F)     A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.

(G)     All licenses described in subsection (A) issued before the effective date of this chapter expire May 31, 2000.

Section 12-22-330.     (A)(1)     Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State. The machine owner shall pay a first time nonrefundable biennial fee of four thousand dollars for each machine license and thereafter on all renewals shall pay a nonrefundable fee for each machine license as follows:

Net Income of Machine in Twelve

Months Preceding License Date                     Biennial License Fee

Not more than $12,000                 $3,000

More than $12,000 but not more than $24,000     $4,000

More than $24,000 but not more than $48,000     $6,000

More than $48,000                     $8,000.

(2)     Except as provided in subsections (C) and (D) below, all licenses begin on June first and, except as provided in subsection (D), all licenses expire May thirty-first of the second year that the license is valid following the date of issue.

(B)     The machine owner shall purchase a separate license for each station in a multiplayer unit and each station counts as a separate machine when determining the number of machines.

(C)     If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(D)     As an alternative to the license required in subsection (A), a machine owner may be granted a nonrefundable seasonal license effective April first and expiring September thirtieth, following the date of issue. This license must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.

(E)     A municipality, by ordinance, may impose a license fee on machines in an amount not to exceed three hundred sixty dollars for the equivalent license period. A municipality may not limit the number of machines within the boundaries of the municipality.

(F)     A county, by ordinance, may impose a license fee on machines located in an unincorporated area of the county in an amount not to exceed three hundred sixty dollars for the equivalent license period.

(G)     A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.

(H)     A machine licensed under the provisions of subsection (A) must not be operated at an establishment unless the establishment is licensed pursuant to the provisions of this chapter and Chapter 36 of Title 12.

(I)     Upon application for a license to operate any machine, the department may presume that the operation of the machine is lawful. The issuance of a license by the department does not make lawful the operation of any machine, the operation of which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(J)     Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.

(K)(1)     A licensed machine owner may transfer a machine with its machine license only to another licensed machine owner. Notification for the transfer of the machine must be made to the department at least thirty days before the transfer. The notification of transfer must include a notarized statement of both parties identifying the machine by VGMID.

(2)     A licensed machine owner may transfer a machine license required by this section to any other machine owned by the machine owner if the department is notified before the transfer.

(L)     The machine owner shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.

(M)     Four hundred dollars of the license fee imposed in subsection (A) must be retained by the department and expended for the implementation and ongoing operation of the monitoring system, administration, enforcement of this chapter, or other programs and services as the department may determine necessary and appropriate.

(N)     No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application.

Section 12-22-340.     The department may issue an initial temporary license pending the approval of the application to any license applicant who has operated machines before the effective date of this chapter if the applicant signs a statement under penalty of perjury that he has no knowledge of any reason for denial of a license. The temporary license may be revoked.

Section 12-22-350.     Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.

Article 5
Imposition of Tax on Net Machine Income

Section 12-22-510.     (A)     In addition to the license fees, a tax of thirty percent of the net machine income of every machine is imposed on the machine owner.

(B)     In addition to the license fees and the tax in subsection (A), an additional tax is levied on the net machine income of every machine within an establishment which is within five hundred feet of another establishment in the same structure, and both establishments have machines with a same owner or principal. The tax is as follows:

(1)     five percent of net machine income beginning June 1, 2000; and

(2)     ten percent of net machine income beginning June 1, 2001; and

(3)     fifteen percent of net machine income beginning June 1, 2002.

(C)     The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.

Section 12-22-520.     (Reserved).

Section 12-22-530.     (A)     Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.

(B)     After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.

(C)     Unless the department determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:

(1)     name and address of location of the machine;

(2)     denomination, whether five cents, etc. of the game;

(3)     the name of the game;

(4)     the name of the individual or individuals collecting money from the machine and the owner of the machine;

(5)     the date or dates of collection;

(6)     the date of previous collection;

(7)     income number at commencement of the reporting period;

(8)     income number at the end of the reporting period;

(9)     beginning payout number;

(10)     ending payout number;

(11)     payout to players;

(12)     gross profit; and

(13)     the percentage of net profits divided between owner and the location and the formula by which those figures are calculated.

(D)     For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax.

Section 12-22-540.     As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-530. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.

Section 12-22-550.     An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.

Section 12-22-560.     (A)     Until a discrepancy under Section 12-22-550 is resolved, the department may not make credit adjustments. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.

(B)     A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.

Section 12-22-570.     The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed by this article. However, before depositing revenues to this account, the department shall retain its costs and the costs of the division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of this chapter. All interest earned on revenues placed into the account remain with the account and must be distributed as provided by the General Assembly.

Section 12-22-580.     Machine operators may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.

Section 12-22-590.     Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.
Article 7
Location Restrictions, Public Notice, and Signage

Section 12-22-810.     (A)     An establishment license must not be issued until the department determines that the location is proper. In determining whether 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;

(3)     the likelihood that large crowds will gather from time to time with attendant breaches of the peace;

(4)     the location of automatic teller machines as provided for in Section 12-22-840(6);

(5)     the adequacy of law enforcement protection;

(6)     the concentration in the area of other licensed establishments;

(7)     compliance with Section 12-22-840; and

(8)     all other pertinent information the department and division consider appropriate, or other information submitted for consideration.

(B)     An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.

(C)     The person applying for the establishment license closer than permitted under subsection (B) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:

(1)     state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;

(2)     tell an interested person where and when to send a written protest of the application;

(3)     be in bold print; and

(4)     cover a space at least eleven inches wide and eight and onehalf inches high.

(D)     The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.

(E)     The provisions of this section apply to all applications. However, establishments in existence on the effective date of this chapter are not subject to the distance restrictions of subsection (B) of this section and Section 12-22-840 while the license is held by the same person who held the license on March 31, 1999, and the licensee complies with Section 12-22-90.

Section 12-22-820.     (A)     Except as provided in subsection (B), machines must not be operated, or continue to operate, at any casino, casinostyle gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117190 of the South Carolina Code of Regulations. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.

(B)     All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117190 must:

(1)     on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;

(2)     advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;

(3)     once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of March 15, 1999, as provided in the statement required in item (5);

(4)     never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;

(5)     not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and

(6)     on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.

(C)     Any person claiming the provisions of subsection (B) has the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment is subject to all limitations of this section.

(D)(1)     No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.

(2)     After September 1, 1999, entities as described in this subsection are permitted to reapply for, and may be granted renewal of a license for a maximum of one biennial licensure period. After completing that period, a new license must not be issued.

Section 12-22-830.     (A)     A person residing in the county in which an establishment license is requested to be granted, or a person residing within five miles of the establishment for which an establishment license is requested, may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:

(1)     the name, address, and telephone number of the person filing the protest;

(2)     the name of the applicant for the establishment license and the address of the establishment sought to be licensed;

(3)     the specific reasons why the application should be denied; and

(4)     whether he wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.

(B)     Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.

(C)     If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.

Section 12-22-840.     (A)     A licensed establishment, including its employees and agents, may not:

(1)     maintain, possess, or otherwise allow on its premises more than five machines;

(2)     advertise, or allow advertising, in any manner for the playing of the machines except as provided in Section 12-22-860;

(3)     offer or allow to be offered any inducement to a person for the playing of machines;

(4)     allow anyone under the age of twenty-one to receive payouts as a result of playing machines;

(5)     operate machines between the hours of two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.

(6)     cash any business, personal, or employment checks of any individual or business;

(7)     make loans to any individual or business;

(8)     accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;

(9)     extend credit, in any manner, to a player;

(10)     be located within five hundred feet within a county, or within three hundred feet in a municipality, of a public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; or house of worship; or

(11)     allow playing of machines by a person in an intoxicated condition.

(B)     The distances in this article must be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; house of worship; or other establishments with machines.

(C)     No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under this chapter and its license or permit issued under Title 61.

Section 12-22-850.         (A)     The offering of an inducement as prohibited in Section 12-22-840 means any attempt to influence a person to play machines including, but not limited to:

(1)     free or discounted food or beverages;

(2)     free or discounted games other than credits won through authorized play;

(3)     prizes, either at the doors or through drawings or other means;

(4)     coupons offering any of the above; or

(5)     cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.

(B)     A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.

Section 12-22-860.     (A)     A licensed establishment may only advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.

(B)     Nothing in this section prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.

(C)     No person may advertise in a misleading or deceptive manner.

(D)     To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.

(E)     Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.

(F)     No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.

(G)     Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2000, if notice is given to the department as required in this chapter.

Section     12-22-870.     (A)     A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:

(1)     'A person must be twenty-one years of age to receive payouts from a video game machine.'

(2)     'It is illegal to offer inducements to a person to play video game machines.'

(3)     'All games are random. Games are set to issue a minimum theoretical payout of at least ninety percent.'

(4)     'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'

(5)     'Validated tickets may be redeemed for cash.'

(6)     'Violators are subject to civil and criminal penalties.'

(7)     'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'

(8)     'No payout of greater than one hundred twenty-five dollars at the end of play is allowed, regardless of the amount deposited in the machine.'

(B)     The sign required by subsection (A) must be placed on the wall behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.

(C)     Each machine licensed under this article must have a prominently displayed sign citing the penalties provided for tampering, skimming, and intentional manipulation as provided for in this article. The sign must be displayed on the wall above the machine or affixed prominently to the machine.

(D)     In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain 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 1XXXXXXXXXX FOR HELP WITH GAMBLING ADDICTION' in capital black letters not less than one inch in height and one-half inch in width. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.

Section 12-22-880.     (A)     A licensed establishment may not derive the primary and substantial portion of its proceeds from machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this section including, but not limited to, gross machine income by months, gross proceeds by month from all other sources, invoices for purchases, cash payouts by month, bank deposits, and all checking, savings, and similar account records.

(B)     The department shall revoke the establishment's license and all machine licenses in the establishment if the establishment is in violation of this section.

Section 12-22-890.     Each licensed establishment shall maintain on the premises a copy of this chapter for review by the public upon request.

Article 9
Machine Requirements

Section 12-22-1010     Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.

Section 12-22-1020.     (A)     All machines, location controllers and associated modems, computer chips, and any other part of a machine must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.

(B)     A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.

Section 12-22-1030.     (A)     Within ninety days after the effective date of this chapter, all machines must meet the following standards, and machine owners shall certify to the department, under oath, and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system. All machines must:

(1)     have games that are random and have a minimum payout of between ninety percent and ninetynine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;

(2)     be secure and accountable;

(3)     not operate in a misleading or deceptive manner;

(4)     not have any means of manipulation that affect the random probabilities of winning a game;

(5)     have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;

(6)     have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;

(7)     be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;

(8)     be capable of interfacing with a central computer monitoring system through a location controller;

(9)     when requested by the department after certification, be connected to the central computer monitoring system through a location controller;

(10)     meet the standards set by the department and those set forth in this chapter; and

(11)     not offer on the face of the machine or in any pay table the possibility of receiving a payout greater than one hundred twentyfive dollars at the end of play.

(B)     Machines not meeting the standards of this chapter, or the standards of the department, must not be licensed. The license of any machine which fails to maintain the standards of this chapter, or any standards of the department, must be revoked.

(C)     When the department approves the software and logic board of a machine, the division may use a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar technology must be done in the presence of a division employee.

Section 12-22-1040.     (A)     As part of the central computer monitoring system, each location operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.

(B)     This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.

(C)     The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.

(D)     Each location controller must be able to perform the following functions:

(1)     communicate with machines in an online environment;

(2)     store log entries of openings of machine game doors;

(3)     store log entries of openings of machine coin or currency doors;

(4)     authorize a machine to be taken offline from the location controller and store a log of this event;

(5)     disable a machine and store a log entry upon a game door open, and a coin door open;

(6)     store a log entry if machine is offline from the location controller;

(7)     store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;

(8)     store a log entry of reenabling a machine that has been disabled;

(9)     log entries which include a VGMID for each machine and date/time stamp;

(10)     communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;

(11)     have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;

(12)     have an internal clock;

(13)     be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;

(14)     be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobaccosmoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment;

(15)     be capable of validating tickets printed by a machine.

Section 12-22-1050.     The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.

Section 12-22-1060.     The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The department may also establish a state testing laboratory. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner.

Section 12-22-1070.     A machine owner shall notify the department before a machine is added, moved, replaced, or disconnected.

Section 12-22-1080.     The licensed establishment or machine owner shall notify the department before a location controller is added, moved, or disconnected.

Section 12-22-1090.     (A)     Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.

(B)     Whenever a machine is disabled during play of a game, the following must occur:

(1)     a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;

(2)     a countdown timer must be displayed; and

(3)     if the player completes the game, all payouts must be reported on a payouts ticket and no other games are allowed to be played on that machine;

(4)     if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the manufacturer's recommended play strategy, all payouts must be reported on a payouts ticket, and the machine then disabled.

Section 12-22-1100.     (A)     Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported outofstate until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.

Section 12-22-1110.     (A)     Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went online; and the bank account from which the taxes are withdrawn.

(B)     The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.

Section 12-22-1120.         (A)     No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:

(1)     allow more than two dollars to be risked, wagered, or played on any hand;

(2)     issue payouts of more than one hundred twenty-five dollars at the end of play;

(3)     require any minimum number of credits before issuance of a validated payouts ticket;

(4)     permit any player to receive a payout at the end of play greater than one hundred twenty-five dollars, regardless of the amount of money deposited into the machine;

(5)     produce at the completion of play validated tickets worth more than one hundred twenty-five dollars regardless of the amount deposited in the machine;

(6)     allow at the completion of play the production of multiple tickets with a collective value of greater than one hundred twenty-five dollars or any other schemes to evade the one hundred twenty-five dollar cash out limits provided above; or

(7)     offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than one hundred twenty-five dollars for a single play or hand at the time of cashing out.

(B)     The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) is found.

Section 12-22-1130.     A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:

(1)     the full name, address, and license number of the person or entity disposing of the machine;

(2)     the manufacturer's serial number of the machine;

(3)     the model number and description of the machine;

(4)     the manufacturer of the machine;

(5)     the VGMID of the machine;

(6)     the hard meter readings of the machine;

(7)     the licensed establishment at which the machine was located;

(8)     the proposed manner, time, and place of disposal.

Section 12-22-1140.     A machine must not simulate bingo or a slot machine.

Section 12-22-1150.     Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.

Section 12-22-1160.     All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.

Section 12-22-1170.     The department, in its discretion, may approve alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.

Section 12-22-1180.     The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than one hundred twenty-five dollars.

Article 13

Background Investigations

Section 12-22-1310.         (A)     The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.

(B)     The division shall:

(1)     promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;

(2)     provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;

(3)     investigate violations under this chapter and any regulations;

(4)     conduct continuing review of machine operations through onsite observation and other reasonable means, to assure compliance with this chapter;

(5)     receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;

(6)     exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;

(7)     have the authority to request and receive information, materials, and any other data from any person; and

(8)     report to the department any recommendations that promote more efficient operations of the division or the department.

(C)     In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:

(1)     inspect and examine all establishments where machines are operated;

(2)     inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;

(3)     inspect all equipment and supplies in, about, upon, or around the establishment;

(4)     seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;

(5)     inspect, examine, and audit all records pertaining to an applicant's operation;

(6)     seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.

(D)     The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.

(E)     The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.

Section 12-22-1320.         (A)     Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, service technicians, and their principals.

(B)     As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.

(C)     Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.

(D)     Each applicant and principal shall cooperate with the division and the department in the performance of their duties.

(E)     Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.

Section 12-22-1340.     (A)     The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:

(1)     a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:

(a)     any offense punishable by imprisonment for two or more years;

(b)     any gambling offense;

(c)     theft or any crime involving false statements or declarations.

(2)     a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;

(3)     omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;

(4)     association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;

(5)     failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;

(6)     that the applicant owes any federal or state delinquent taxes, penalties, or interest.

(B)     The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.

Section 12-22-1350.     (A)     Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.

(B)     Distributors, principals, machine owners, machine operators, and technicians, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.

Section 12-22-1360.         (A)     The applicant for a license shall provide detailed information regarding:

(1)     the ownership and management, including information on all principals;

(2)     a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;

(3)     federal registration with respect to gambling devices; and

(4)     any other information considered necessary by the department for the proper administration and enforcement of this chapter.

(B)     The department and the division are authorized to develop applications and other forms.

(C)     The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.

(D)     The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.

(E)     As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.

Section 12-22-1370.         (A)     The applicant shall provide the local governing authority information related to the application for any license issued under this chapter.

(B)     Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.

Section 12-22-1380.         (A)     The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.

(B)     The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.

(C)     The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.

(D)     The department or division shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.

Article 15
Penalties

Section 12-22-1510.     (A)     The department may revoke licenses required under this chapter held by any person who fails to comply with any provision of this chapter or any provision of a regulation pertaining to this chapter. In lieu of revocation of licenses, the department may suspend licenses. In addition, the department may impose a monetary penalty of not more than five thousand dollars for each failure to comply with a provision of this chapter or any provision of a regulation pertaining to this chapter. Each violation and each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.

(B)     With respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this section.

Section 12-22-1520.     (A)     A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if:

(1)     the person wilfully tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)     the person wilfully excludes, or takes any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;

(3)     the person wilfully manipulates the outcome, payoff, or operation of a machine;

(4)     the person wilfully launders or knowingly allows another to launder money through one or more machines;

(5)     the person knowingly possesses, owns, operates, or allows the operation of, a contraband machine, or contraband device, at any place within this State;

(6)     on or after September 1, 1999, or the ninetieth day following the effective date of this chapter, whichever is later, the person operates, or allows the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;

(7)     the person intentionally skims or excludes, or takes any action, in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines;

(8)     the person operates an establishment in this State for the playing of machines without having a license;

(9)     the person conducts business in this State as a machine or location controller manufacturer, a machine owner, or a distributor without having a license;

(10)     the person operates machines without having a machine license; or

(11)     the person managing or otherwise having the charge or care of a licensed establishment, or the owner of a video game machine, wilfully violates items (1), (2), (3), (4), (5), (6), (7), (8), (9), or (11) of Section 12-22-840(A), each being a separate offense under this section.

Section 12-22-1525.     Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 1617410.

Section 12-22-1530.     (A)     The following activities are criminal violations of this chapter:

(1)     refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State;

(2)     refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.

(B)     A violator is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than five hundred dollars or imprisonment of not more than thirty days, or both. Each failure to have a license required under this chapter constitutes a separate offense. Offenses under this item are triable in magistrate's court.

Section 12-22-1540.     (A)     The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1510:

(1)     tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)     excluding, or take any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;

(3)     manipulating the outcome, payoff, or operation of a machine;

(4)     possessing, owning, operating, or allowing the operation of, a contraband machine or device at any place within this State;

(5)     operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter; or

(6)     conspiring to subvert the provisions of this chapter.

Section 12-22-1550.     In addition to all other civil and criminal penalties, any person operating a contraband machine must be assessed a civil penalty in an amount equal to the statewide average of cash placed into a machine for the longer of its time of operation or twelve months.

Section 12-22-1560.     (A)     The department shall disable machines via the central computer monitoring system for the following reasons:

(1)     The establishment at which the machines are located has had its establishment license or retail sales tax license revoked or suspended.

(2)     The license assigned to the machine has been revoked or suspended.

(3)     The machine owner has had his machine owner's license revoked or suspended.

(4)     The machine license has expired and no new license has been issued by the expiration date.

(5)     The central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason must be enabled again as soon as the problem has been resolved.

(6)     The central computer monitoring system has disabled a machine, upon request, in order for it to be moved or relocated.

(B)     A machine disabled for revocation of licenses as set forth in item (1), (2), or (3) of subsection (A) of this section must not operate in this State for a period of five years from the date of the revocation. The fiveyear prohibition also applies to any part of the machine. Any machine, to include its parts, which is not allowed to operate in this State under the provisions of this section, must be stored by the owner in a facility approved by the department or division.

Section 12-22-1570.     (A)     Any person may bring a civil action for any violation of any of the provisions of this chapter. The case must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the case may seek any fine or penalty that the State may seek.

(B)     A copy of the complaint must be served on the Attorney General and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.

(C)     If the State joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twentyfive percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.

(D)     If the State does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twentyfive percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.

(E)     The State is not liable for expenses which a person incurs in bringing an action under this section.

(F)     No settlement may be entered without approval by the department.

(G)     Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.

Section 12-22-1580.     The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.

Section 12-22-1590.     In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.

Article 17
Arcade Game Machines and Other Devices

Section 12-22-1710.     Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.

Section 12-22-1720.     Every person required to obtain a license for any machine or device described in Section 12-22-1730 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.

Section 12-22-1730.     (A)     Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device 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 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 on which an admissions tax is imposed is exempt from the license provisions of this section;

(3)     a machine of the nonpayout type, inline pin game 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;

(4)     billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.

(B)     The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirtyfirst the second year of which the license is valid following the date of issue.

(C)     Machines which have multiplayer stations must have a separate license for each such station.

(D)     As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six month license is one-fourth the biennial license fee.

(E)     If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(F)     Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(G)     Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.

(H)     The department, upon notification by the licensee purchasing machines from another licensee, shall allow for the transfer of the license issued pursuant to subsection (A) upon sale of the machine and license to the new owner. Notification for the transfer of the machine must be made to the department at least five days before transfer of the machine. This notification of sale must include a notarized statement of both the purchaser and seller identifying the machine by serial identification number and machine license number.

(I)     The license issued pursuant to this section must be displayed conspicuously on the front of the machine on a permanent, nontransferable part of the machine before its operation commences. The license must always be a current and valid license.

Section 12-22-1740.     (A)     In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1730 shall obtain an owner's license biennially as follows:

(1)     fifty dollars for devices in Section 12-22-1730(A)(1) and (A)(4);

(2)     two hundred dollars for devices in Sections 12-22-1730(A)(2) and 12-22-1730(A)(3).

(B)     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)     The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(D)     Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.

(E)     The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.

Section 12-22-1750.     In lieu of the licenses required under Sections 12-22-1730 and 12-22-1740, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one twenty-fourth of the biennial license required under Sections 12-22-1730 and 12-22-1740. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.

Section 12-22-1760.     Machines or devices licensed pursuant to Section 12-22-1730(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.

Section 12-22-1770.     A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of five hundred dollars for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.

Section 12-22-1780.     In addition to the penalties provided in Section 12-22-1770, any machine or device not having the required license attached, or which is improperly licensed, may be seized and confiscated by the division, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may return the property seized and confiscated.

Section 12-22-1790.     Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twelve dollars and fifty cents.

Section 12-22-1800.     A person required to obtain a license for any machine or device described in Section 12-22-1730 must have attached to the machine or device information identifying the owner or operator of the machine or device. The identification must be placed on a part of the machine or device which is visible for inspection purposes. This identification is a condition precedent before the machine or device may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter and of Chapter 54 as applicable.

Section 12-22-1810.     If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee."
SECTION     2.         Section 12-60-3370 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Section 12603370.     (A)     Except as provided below, a taxpayer shall pay, or post a bond for, all taxes, including interest, penalties, and other amounts determined to be due by the Administrative Law Judge or DMV hearing officer before appealing the decision to the circuit court. For property tax cases covered by Section 12602140 or 12602550, the taxpayer need only pay the amount assessed under the appropriate section.

(B)     If the revocation or suspension of any license required under Chapter 22 of this title for the disabling of any video game machines via the central computer monitoring system is upheld by a decision of the Administrative Law Judge Division, then the person appealing the decision to the circuit court shall post a cash or surety bond with the department equal to three times the net machine income of the last two calendar quarters for the video game machines in question or in operation at the licensed establishment. As an alternative, the person appealing the decision may pay twice a month, to the department as a cash bond, the net machine income from the video game machines in question or in operation at the licensed establishment. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of any amount determined by the court to be due.

(C)     If the revocation or suspension of licenses or the disabling of machines is upheld upon appeal, the person subject to the revocation, suspension, or disabling is liable for and shall pay to the department an amount equal to the net machine income from the date of the decision by the Administrative Law Judge Division to the date of the final court order."
SECTION     3.         Section 614580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:

"(3)     permit gambling or games of chance not authorized by Chapter 22 of Title 12;"
SECTION     4.         Chapter 19, Title 16 of the 1976 Code is amended by adding:

"Section 16-19-65.     (A)     It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, inline pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

(B)     Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.

(C)     Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if satisfied that it is in violation of this section or any other law of this State, shall direct that it be immediately destroyed.

Section 16-19-66.     (A)     It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coinbox telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.

(B)     It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.

(C)     A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.

Section 16-19-67.     A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coinbox telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coinbox telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."
SECTION     5.         In accordance with Article 9, Chapter 22, Title 12 of the 1976 Code, the Department of Revenue may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in Chapter 22 of that title including the provisions of Section 12-22-1580 of the 1976 Code relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts 1 through 4 of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 of the 1976 Code apply for purposes of this section.

Part I
Technical standards for Machines and Location Controllers

(A)     Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.

(B)     Each machine must be capable of monitoring and storing the following items:

(1)     The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:

(a)     cash in, defined as money in dollars and cents;

(b)     credits purchased;

(c)     credits earned or won;

(d)     credits played;

(e)     credits paid;

(f)     cash paid.

(2)     The following security events and the time and date of such events:

(a)     game door open;

(b)     coinbill/drop door open;

(c)     power off/on;

(d)     off line/on line to the location controller;

(e)     game control board access (logic area).

(C)     Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.

(D)     Each machine is not allowed to operate if it is not connected in online mode to a location controller meeting the requirements set forth by the department.

(E)     A machine must collect the data required in Section 12-22-1040(C) of the 1976 Code and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event required in Section 12-22-1040(C) of the 1976 Code may reflect a time and date stamp and the VGMID of the machine.

(F)     A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.

(G)     A machine must be capable of being disabled by the central computer monitoring system or the location controller.

(H)     A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.

(I)     A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.

(J)     Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.

Part II
Hardware Specifications

(A)     A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.

(B)     A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.

(C)     A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.

(D)     The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.

(E)     Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.

(F)     The internal space of a machine must not be readily accessible when the front door is closed or sealed.

(G)     Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.

(H)     The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.

(I)     No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.

(J)     A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.

(K)     The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.

(L)     A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1580 relating to the time such penalties apply without regard to stays.

(M)     Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.

Part III

Software Requirements

(A)     Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.

(B)     Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.

(C)     Electronic meters also must record security events, with the time and dates, to include game door open, coinbill/drop door open, power off/on, off line/on line to the location controller, and game control board access.

(D)     No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.

(E)     Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:

(1)     each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chisquared analysis;

(2)     each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;

(3)     each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and

(4)     each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.
(F) All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner. (G)

Part IV
Multiplayer Unit Requirements

(A)     For purposes of this part, multiplayer units are divided into two general groups:

(1)     units that share some common components (Group I); and

(2)     units that share most components (Group II).

(B)     Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.

(C)     Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:

(1)     Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.

(2)     Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.

(D)     A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.

(1)     Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(2)     Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location controller and go directly to the dealer's station and then back to the location controller. All communications must be sent from the central system and the site controller exactly as detailed in the communications protocol. The dealer's station is responsible for handling all of the communications for the player stations. If the system asked for meters for station number one, the dealer's station is responsible for collecting and sending that data to the central system. The central system must behave exactly as if there are five separate machines. EPROM signature calculations must be performed over the dealer's station program code and transmitted back five times just as if there are five machines all running the same game code. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(E)     The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.
SECTION     6.         Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are repealed.
SECTION     7.     (1)     This section may be cited as the "Gambling Cruise Prohibition Act". It is the intent of the General Assembly in enacting this section to reenforce longstanding prohibitions on gambling by reiterating that the gambling offenses provided under the Constitution and laws of this State extend to any United States or foreign documented vessel where voyages begin and end in the waters of this State, consistent with the standards specified in 15 U.S.C. 1175(b)(2)(A), commonly referred to as the Johnson Act Amendments of 1992.
(2)     Chapter 19 of Title 16 of the 1976 Code is amended by adding:

"Section 16-19-170.     (A)     It is unlawful for a person to:

(1)     violate any provision of this chapter or any other provision of the laws or Constitution of this State prohibiting gambling, however described, on a United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity to be conducted, whether within or without the waters of the State;

(2)     manage, supervise, control, operate, or own any United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity which would violate any provision of this chapter or any other provisions of the laws or Constitution of this State prohibiting gambling, however described;

(3)     repair a gambling device on a United States or foreign documented vessel described in item (1) or (2) of this subsection, regardless of the location of the United States or foreign documented vessel when the repairs are made.

(B)     A person who violates any provision of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than five years or fined not more than twenty-five thousand dollars, or both. A violation under this section is a separate offense, and nothing in this section precludes prosecution for any other gambling offense."
(3)     If any provision of this section, including the provisions of Section 16-19-170 of the 1976 Code added by it, or the application of these provisions to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end, the provisions of this section are severable.
SECTION     8.         The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION     9.         Except where otherwise provided, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals to conform.
Amend title to Conform.

Rep. WILKINS explained the amendment.

Rep. WILKINS moved to adjourn debate on the amendment, which was agreed to.

Rep. KNOTTS proposed the following Amendment No. 4A (Doc Name DKA\AMEND\3539MM99):
Amend the bill, as and if amended, page 1, by deleting subsection (A) as contained in SECTION 1, and inserting:
/     (A)     A statewide referendum must be conducted to ascertain whether or not video game machine payouts will continue to be allowed in this State. At a special election to be held on the first Tuesday in November, 1999, the South Carolina Election Commission shall conduct a statewide referendum. The cost of this referendum shall be defrayed by video machine license fees. The State Election Commission must place the exact question contained in subsection (B) of this section on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner./
Amend further, page 1, subsection (B) as contained in SECTION 1, line 40, by deleting /2000/ and inserting /1999/.
Amend further, by deleting beginning on page 26, Section 12-22-780(A) as contained in SECTION 10, and inserting:

/ (A)     Any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than two dollars and must limit the amount in a single hand to credits equal to one hundred twenty-five dollars. /
Amend further, page 50, item (c) as contained in SECTION 28, lines 17 and 24, by deleting /2000/ and inserting /1999/.
Amend further, page 50, item (d) as contained in SECTION 28, line 28, by deleting /2000/ and inserting /1999/.
Renumber sections to conform.
Amend title to conform.

Rep. KNOTTS moved to adjourn debate on the amendment, which was agreed to.

Reps. KNOTTS, WHATLEY, WILKES, LAW, HAYES, RUTHERFORD and MILLER proposed the following Amendment No. 5A (Doc Name NBD\AMEND\11391MM99):
Amend the bill, as and if amended, page 1, by deleting subsection (A) as contained in SECTION 1, and inserting:
/     (A)     A statewide referendum must be conducted to ascertain whether or not video game machine payouts will continue to be allowed in this State. At a special election to be held on the first Tuesday in November, 1999, the South Carolina Election Commission shall conduct a statewide referendum. The cost of this referendum shall be defrayed by video machine license fees. The State Election Commission must place the exact question contained in subsection (B) of this section on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner./
Amend further, page 1, subsection (B) as contained in SECTION 1, line 40, by deleting /2000/ and inserting /1999/.
Amend further, by deleting beginning on page 26, Section 12-22-780(A) as contained in SECTION 10, and inserting:

/ (A)     Any licensed machine that provides payouts authorized pursuant to Section 16-19-60 must limit the amount bet or wagered on any single hand or single play to credits equal to not more than two dollars and must limit the amount in a single hand to credits equal to six hundred dollars. /
Amend further, page 50, item (c) as contained in SECTION 28, lines 17 and 24, by deleting /2000/ and inserting /1999/.
Amend further, page 50, item (d) as contained in SECTION 28, line 28, by deleting /2000/ and inserting /1999/.
Amend title to conform.

Rep. KNOTTS moved to adjourn debate on the amendment, which was agreed to.

SPEAKER IN CHAIR

Reps. HASKINS, ROBINSON, DELLENEY, SHEHEEN and CAMPSEN proposed the following Amendment No. 15A (Doc Name GJK\AMEND\20709SD99), which was adopted.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION     1.     Title 12 of the 1976 Code is amended by adding:

"CHAPTER 22
Coin-Operated Machines and Other Devices
Article 1
General Provisions

Section 12-22-10.     As used in this chapter, unless the context clearly requires otherwise:

(1)     'Director' means the Director of the Department of Revenue.

(2)     'Chief' means the Chief of the South Carolina State Law Enforcement Division.

(3)     'Division' means the South Carolina State Law Enforcement Division.

(4)     'Associated equipment' means a device, machine, replacement part, or part used in the manufacture, operation, or maintenance of a machine including, but not limited to, integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices.

(5)     'Background investigation' means the investigation conducted in accordance with Article 13 of this chapter.

(6)     'Central computer monitoring system' or similar term means the computing system administered by the department for communicating with and retrieving information from machines, and activating and disabling machines.

(7)     'Contraband machine,' or 'contraband device,' means a machine, location controller or its modem, the computer chips of a machine or location controller, or any other part of the machine, location controller or modem not meeting the requirements of this chapter. A 'machine' that does not meet the requirements of this chapter is a 'contraband machine' regardless of whether the machine issues payout tickets redeemable for cash.

(8)     'Disable' or 'disabling' means the process of executing a command from the central computer monitoring system or the location controller which causes a machine to cease functioning.

(9)     'Distributor' means any person who sells, buys and sells, or leases machines or associated equipment. A distributor may also own, operate, service, or repair machines in this State.

(10)     'Establishment' or 'location' means premises with machines.

(11)     'Machine' means a nonpayout electronic machine with a free play feature that, upon insertion of cash is available to play or simulate the play of games utilizing a video display and microprocessors in which the player may receive free games or credits that may be redeemed for cash. Each player station of a multi-player unit is a separate machine.

(12)     'Machine owner' means any person, other than a distributor, who owns one or more machines.

(13)     'Machine operator' means any person who owns or manages an establishment with one or more machines.

(14)     'Manufacturer' means any person that manufactures, assembles, or programs machines, controllers, or associated equipment for sale or use in this State.

(15)     'Net machine income' means the amount of money that goes into the machine less payouts.

(16)     'Payout' means the total amount a player is paid at the end of play, regardless of the amount the player has deposited in the machine.

(17)     'Play' means the period of time from when money is put into the machine until cash out.

(18)     'Player' means a person who participates in the playing of a machine.

(19)     'Principal' of a business or entity means:

(a)     a person who is an officer of the business or entity which owns the business;

(b)     a partner, other than a limited partner who cannot exercise any management control;

(c)     a manager of a limited liability company which is managed by managers;

(d)     a member of a limited liability company which is managed by members;

(e)     a fiduciary, including personal representatives, trustees, guardians, committees and receivers, who manages, holds or controls title to or who is otherwise in direct or indirect control of the business;

(f)     a person who owns five percent or more of the total combined voting power of the business or entity;

(g)     a person who owns ten percent or more of the value of the business or entity; or

(h)     an employee who has day-to-day operational management responsibilities for the business or entity.

(20)     'Records' means all paper or electronic accounts, bank account records, financial statements, business records, contracts, reports and returns, including tax information and returns, and other information the department or division considers necessary to administer and enforce the provisions of this chapter.

(21)     'Type I Technician' means a person qualified to perform basic service, maintenance, and repair on machines.

(22)     'Type II Technician' means a person qualified to perform major machine repairs, configurations, communication, and diagnostic testing of machines.

(23)     'Video Game Machine Identification Number' or 'VGMID' means the permanently assigned unique number issued by the department to identify a specific machine from first delivery in this State until destruction or removal from this State.

Section 12-22-20.     Unless specifically granted to the division, the functions, duties, and powers set forth in this chapter are vested in the department. The department shall administer and enforce the provisions of this chapter, and may enter agreements with any agency or the division to execute the provisions of this chapter.

Section 12-22-30.     Except as provided in Section 12-54-240, any information obtained by the department or division in the administration and enforcement of the provisions of this chapter is public information, except for proprietary information of the central computer monitoring system. The department may disclose information to the division and to other governmental entities in and outside of this State.

Section 12-22-40.     The department has sole and exclusive power to issue all licenses provided for in this chapter. The department has exclusive authority to establish the conditions or restrictions necessary for issuing, suspending, or revoking a license.

Section 12-22-50.     The department or the division may issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents and administer oaths and take testimony thereunder.

Section 12-22-60.     The license fees, taxes, and penalties provided for in this chapter are a first preferred lien upon all property of the person charged. The department may execute on the lien.

Section 12-22-70.     The only forms of gambling which are legal in this State are bingo, played in accordance with Article 24 of Chapter 21 of Title 12, and games played on licensed machines operated in accordance with this chapter.

Section 12-22-80.     The department and the division have the right to examine all records of an applicant and the applicant's principals, those records under their control, and those records in which they have an interest to evaluate statements and documentation supplied with the application. All records must be retained for at least the period for which taxes may be assessed under Section 12-54-85.

Section 12-22-90.     Any person otherwise subject to the provisions of this chapter, but who claims the benefit of an exemption from certain of its requirements in any manner, on or before September 1, 1999, shall notify the department in a statement made under penalty of perjury that he is claiming the benefits of a specific provision, shall state all reasons for claiming the benefits of the provision, and shall identify all licenses claimed to be related to that exemption. The person claiming the benefit of such a provision has the burden of proof and shall establish by clear and convincing evidence that he is entitled to the benefits claimed.

Section 12-22-100.     If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter for any reason is held to be unconstitutional or invalid, the holding does not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly declaring that it would have passed this chapter, 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 word hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Section 12-22-110.     (A)     The department shall require that every location and owner of each machine licensed therein maintain a log of payoffs for at least three years that shall include, at a minimum, the following:

(1)     a separate form or record of each person receiving a payoff;

(2)     the name and address of the person receiving the payoff;

(3)     the social security number of the person receiving the payoff;

(4)     a statement of the amount of the payoff;

(5)     the driver's license number or other official identification number of the person receiving the payoff, which must be independently verified by the operator prior to any payoff being made;

(6)     a signed certification by the machine operator or owner and the player, under penalty of perjury, that the information provided is complete and accurate; and

(7)     attachment to the log all validated tickets related to the payoffs.

(B)     The department by regulation may prescribe the form or format of the log required in subsection (A).

Article 3
Licensure

Section 12-22-310.     (A)     Before a machine or associated equipment is manufactured, distributed, sold, or placed for use in this State, the machine owner, machine operator, manufacturer, distributor, and establishment must be licensed by the department as provided for in this chapter.

(B)     Before placement or operation, a machine must be licensed.

(C)     Licenses issued as provided for in this chapter are the property of the department and must not be transferred, assigned to another person, or pledged as collateral, except as provided in Section 12-22-330(K).

Section 12-22-320.     (A)     Every two years a manufacturer, distributor, machine owner, machine operator, establishment, type I technician, and type II technician, engaging in business in this State, shall apply for and obtain from the department a license for the privilege of engaging in the business and shall pay the nonrefundable fee levied at the time of license application.             The fees are as follows:

(1)     Manufacturer         $10,000

(2)     Distributor         $15,000

(3)     Machine Owner         $2,000

(4)     Machine Operator         $2,000

(5)     Licensed Establishment         $1,000

(6)     Type I and Type II Technicians     $500

(B)     Biennial licenses for machine owners, machine operators, distributors, manufacturers, or establishments issued under this chapter expire according to the county where the principal place of business, as determined by the department, of the machine owner, machine operator, distributor, or manufacturer is situated or, in the case of an establishment license, the county where the establishment is situated. The expiration dates are the last day of:

(1)     February in years which end in an:

(a)     odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley Counties;

(b)     even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg Counties;

(2)     May in years which end in an:

(a)     odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry Counties;

(b)     even number for Lancaster, Marion, Marlboro, Union, and York Counties;

(3)     August in years which end in an:

(a)     odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter Counties;

(b)     even number for Richland County;

(4)     November in years which end in an:

(a)     odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood Counties;

(b)     even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg Counties.

(5) If a license purchased is for less than twenty-three months because of this section, the license tax must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under this section and Section 12-22-340.

(C)     The department, at its discretion and for the efficient administration of the law, may prorate licenses in any manner to implement or change the expiration date established in this section and to stagger the issuances of the licenses by county or by any other method considered appropriate by the department.

(D)     A license authorized in this section must not be issued until the department receives a completed background investigation showing that the standards provided for in Article 13 have been met by the applicant.

(E)     An application for a license may be denied or a license may be revoked if the applicant or licensee fails to pay any tax or fee administered by the department.

(F)     A license issued under this chapter is a privilege personal to the person to whom it was issued and is not a legal right.

(G)     All licenses described in subsection (A) issued before the effective date of this chapter expire May 31, 2000.

Section 12-22-330.     (A)(1)     Every machine owner making a machine available for play shall apply for and procure a license from the department for the privilege of making use of the machine in this State. The machine owner shall pay a first time nonrefundable biennial fee of four thousand dollars for each machine license and thereafter on all renewals shall pay a nonrefundable fee for each machine license as follows:

Net Income of Machine in Twelve

Months Preceding License Date                     Biennial License Fee

Not more than $12,000             $3,000

More than $12,000 but not more than $24,000     $4,000

More than $24,000 but not more than $48,000     $6,000

More than $48,000             $8,000.

(2)     Except as provided in subsections (C) and (D) below, all licenses begin on June first and, except as provided in subsection (D), all licenses expire May thirty-first of the second year that the license is valid following the date of issue.

(B)     The machine owner shall purchase a separate license for each station in a multi-player unit and each station counts as a separate machine when determining the number of machines.

(C)     If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(D)     As an alternative to the license required in subsection (A), a machine owner may be granted a nonrefundable seasonal license effective April first and expiring September thirtieth, following the date of issue. This license must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.

(E)     A municipality, by ordinance, may impose a license fee on machines in an amount not to exceed three hundred sixty dollars for the equivalent license period. A municipality may not limit the number of machines within the boundaries of the municipality.

(F)     A county, by ordinance, may impose a license fee on machines located in an unincorporated area of the county in an amount not to exceed three hundred sixty dollars for the equivalent license period.

(G)     A license may not be issued for the operation of a machine that is located, or intended to be located, on a watercraft or vessel plying the territorial waters of this State.

(H)     A machine licensed under the provisions of subsection (A) must not be operated at an establishment unless the establishment is licensed pursuant to the provisions of this chapter and Chapter 36 of Title 12.

(I)     Upon application for a license to operate any machine, the department may presume that the operation of the machine is lawful. The issuance of a license by the department does not make lawful the operation of any machine, the operation of which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(J)     Failure to obtain a machine license as required by this chapter makes the machine owner liable for the penalties imposed in this chapter.

(K)(1)     A licensed machine owner may transfer a machine with its machine license only to another licensed machine owner. Notification for the transfer of the machine must be made to the department at least thirty days before the transfer. The notification of transfer must include a notarized statement of both parties identifying the machine by VGMID.

(2)     A licensed machine owner may transfer a machine license required by this section to any other machine owned by the machine owner if the department is notified before the transfer.

(L)     The machine owner shall notify the department within thirty days of any change in its principals. Any addition to the machine owner's principals of a person not already determined to have met the qualifications of this chapter voids the license unless the addition has been approved in advance by the department. The department shall develop forms and procedures for notification and approval of any change.

(M)     Four hundred dollars of the license fee imposed in subsection (A) must be retained by the department and expended for the implementation and ongoing operation of the monitoring system, administration, enforcement of this chapter, or other programs and services as the department may determine necessary and appropriate.

(N)     No distributor, owner, or operator must be issued a license unless the distributor, owner, or operator has been a resident of the State for two years before the date of application.

Section 12-22-340.     The department may issue an initial temporary license pending the approval of the application to any license applicant who has operated machines before the effective date of this chapter if the applicant signs a statement under penalty of perjury that he has no knowledge of any reason for denial of a license. The temporary license may be revoked.

Section 12-22-350.     Appeals of department decisions, including appeals of penalties, or of denied, suspended, or revoked licenses, must be conducted in accordance with the South Carolina Revenue Procedures Act in Chapter 60 of this title.

Article 5
Imposition of Tax on Net Machine Income

Section 12-22-510.     (A)     In addition to the license fees, a tax of thirty percent of the net machine income of every machine is imposed on the machine owner.

(B)     In addition to the license fees and the tax in subsection (A), an additional tax is levied on the net machine income of every machine within an establishment which is within five hundred feet of another establishment in the same structure, and both establishments have machines with a same owner or principal. The tax is as follows:

(1)     five percent of net machine income beginning June 1, 2000; and

(2)     ten percent of net machine income beginning June 1, 2001; and

(3)     fifteen percent of net machine income beginning June 1, 2002.

(C)     The tax imposed by this section is effective beginning on the first day of the first month following the effective date of this chapter.

Section 12-22-520.     (Reserved).

Section 12-22-530.     (A)     Unless the department exempts a taxpayer from this requirement, the taxes in this article must be paid to the department by the machine owner through electronic transfer of funds. The machine owner shall furnish the department all information and bank authorization required to facilitate the timely payment of taxes due to the State. Machine owners shall provide the department thirty days' advance notice of any proposed bank account changes to ensure the uninterrupted electronic transfer of funds.

(B)     After notice to taxpayers, the department may draw upon the designated account to satisfy the tax indebtedness under this chapter on the twentieth day of the month following the month for which taxes accrued. The machine owner shall maintain an account balance in an amount sufficient to cover the amount drawn by the department. The failure to maintain an adequate balance in the account as required in this section authorizes the department to find the tax in jeopardy and to disable all licensed machines of the machine owner. Appeals are governed by the jeopardy assessment appeals procedures in Sections 12-60-910 and 12-60-920.

(C)     Unless the department determines that such reports are unnecessary, each machine owner, machine operator, and licensed establishment shall report to the department for each calendar quarter, by the twentieth of the month following end of the quarter, the following information for each machine:

(1)     name and address of location of the machine;

(2)     denomination, whether five cents, etc. of the game;

(3)     the name of the game;

(4)     the name of the individual or individuals collecting money from the machine and the owner of the machine;

(5)     the date or dates of collection;

(6)     the date of previous collection;

(7)     income number at commencement of the reporting period;

(8)     income number at the end of the reporting period;

(9)     beginning payout number;

(10)     ending payout number;

(11)     payout to players;

(12)     gross profit; and

(13)     the percentage of net profits divided between owner and the location and the formula by which those figures are calculated.

(D)     For machines connected to the central computer monitoring system, the department shall determine the tax on net machine income as of the last day of each month. The department shall notify the machine owner in the form of a billing statement of the amount of tax the department shall draw from the designated account to satisfy the net machine income tax.

Section 12-22-540.     As an interim procedure to collect the taxes in this article between the effective date of this chapter and when a machine is connected to the central computer monitoring system, the department shall develop forms and procedures to facilitate the return and payment of these taxes. This interim procedure also must be used during any period when the central computer monitoring system is unable to determine taxes as provided in Section 12-22-530. The taxes are due and payable and the return is due on or before the twentieth day of the month following the month in which the taxes accrue.

Section 12-22-550.     An owner shall report to the department any discrepancies in tax between the department's statement and each machine's mechanical and electronic meter readings.

Section 12-22-560.     (A)     Until a discrepancy under Section 12-22-550 is resolved, the department may not make credit adjustments. The owner shall submit to the department the maintenance log that includes current mechanical meter readings and the audit ticket that contains electronic meter readings generated by the machine's software for each machine that reflects a discrepancy. Electronic accounting meters must not be cleared without an authorized department or division employee present. Any discrepancies that cannot be resolved because the meter was cleared in an unauthorized manner must be resolved in favor of the State.

(B)     A licensed establishment may return to a player money which the player deposited into the machine for which the machine did not permit play and would not print a validated payout ticket; and in this event shall obtain and record the date, time, amount, and licensed machine number of the refund, and the name, addresses, telephone number, social security number, and driver's license identification number and state, of that player. Thereafter, the taxpayer may file a claim for refund for any taxes paid under this chapter on the amount returned to the player in accordance with Chapter 60 of this title, but in addition to the information required by Section 12-60-470, the taxpayer shall file the information required to be maintained by the licensed establishment under this subsection.

Section 12-22-570.         The State Treasurer shall create a designated account for the deposit of the tax, penalties, and interest imposed by this article. However, before depositing revenues to this account, the department shall retain its costs and the costs of the division. The department and the division may retain, carry forward, and expend the funds withheld for the enforcement and administration costs of this chapter. All interest earned on revenues placed into the account remain with the account and must be distributed as provided by the General Assembly.

Section 12-22-580.     Machine operators may only redeem tickets for credits awarded on licensed machines located in that licensed establishment. A ticket must be validated by the location controller before any payout is made.

Section 12-22-590.     Each county or municipality, by ordinance, may determine the zoning of locations for the operation of machines. The zoning restrictions may not be less restrictive than this chapter.

Article 7
Location Restrictions, Public Notice, and Signage

Section 12-22-810.     (A)     An establishment license must not be issued until the department determines that the location is proper. In determining whether 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;

(3)     the likelihood that large crowds will gather from time to time with attendant breaches of the peace;

(4)     the location of automatic teller machines as provided for in Section 12-22-840(6);

(5)     the adequacy of law enforcement protection;

(6)     the concentration in the area of other licensed establishments;

(7)     compliance with Section 12-22-840; and

(8)     all other pertinent information the department and division consider appropriate, or other information submitted for consideration.

(B)     An establishment license must not be issued if the location is within one hundred feet of another licensed establishment. However, an existing location which operates machines before March 31, 1999, is not governed by the provisions of this subsection while the location continues to be operated in accordance with the single place or premise regulation and the operation of the location continues in the name of the current licensed machine operator. Notwithstanding the provisions of this subsection, the department may issue an establishment license after notice and the procedures in this section if the department otherwise determines that the location is a proper one.

(C)     The person applying for the establishment license closer than permitted under subsection (B) shall place a notice at least once a week for three consecutive weeks in a newspaper or newspapers most likely to provide notice to interested citizens of the county, city, or community in which the person seeks to locate the proposed establishment. The department shall determine which newspaper or newspapers meet the requirements of this section based on available circulation figures. If a newspaper is published within the county and historically has been the newspaper where legal notices are published, the advertisements published in that newspaper meet the requirements of this section. Notice also must be given by displaying a sign for fifteen consecutive days at the site of the proposed establishment. The sign shall:

(1)     state that a license for the operation of machines is being sought and that the establishment will be able to issue cash payouts from these machines;

(2)     tell an interested person where and when to send a written protest of the application;

(3)     be in bold print; and

(4)     cover a space at least eleven inches wide and eight and one-half inches high.

(D)     The department shall determine whether the location is a proper one. Any protestor or the applicant may appeal the department's determination.

(E)     The provisions of this section apply to all applications. However, establishments in existence on the effective date of this chapter are not subject to the distance restrictions of subsection (B) of this section and Section 12-22-840 while the license is held by the same person who held the license on March 31, 1999, and the licensee complies with Section 12-22-90.

Section 12-22-820.     (A)     Except as provided in subsection (B), machines must not be operated, or continue to operate, at any casino, casino-style gaming operations, video gaming mall, or combination of single place or premises, as that term was applied in Regulation 117-190 of the South Carolina Code of Regulations. In determining whether an establishment violates this section, the department shall consider whether more than one licensed establishment operates within a single structure, unless the distance between the licensed establishments exceeds one hundred feet and the licensed establishments are not owned by the same person, do not have any of the same principals, and the owner of one is not a principal of another licensed establishment. Licenses denied under this section are subject to review under Section 12-60-1310.

(B)     All establishments which conducted business as a casino or otherwise within a structure which before March 15, 1999, contained more than one single place or premise in accordance with Regulation 117-190 must:

(1)     on or before September 1, 1999, conduct business as a single operation and be licensed as a single licensed establishment to maintain on the premises more than five licensed machines;

(2)     advise the department of the machine and establishment licenses currently issued for the structure, and return the establishment licenses to the department at the time the new license for the single licensed establishment is approved by the department and issued;

(3)     once licensed as a single establishment, never have licenses for any number of machines greater than the total number of machines licensed in the structure as of March 15, 1999, as provided in the statement required in item (5);

(4)     never increase the number of machines permitted by this section after any reduction in the number of machines at the licensed establishment. However a reduction, as that term is used in this subsection, does not include the routine removal and replacement of machines for maintenance, repair, service, or similar purpose;

(5)     not allow the operation of an automated teller machine or similar machine that dispenses money on the premises of the licensed establishment; and

(6)     on or before August 1, 1999, file with the department a sworn statement stating the reasons why it is entitled to the benefits conferred by this subsection and the number of existing machine licenses.

(C)     Any person claiming the provisions of subsection (B) has the burden of proof and must establish by clear and convincing evidence that he is entitled to operate the structure as a single licensed establishment with more than five licensed machines. Any transferee of an interest in such an establishment is subject to all limitations of this section.

(D)(1)     No entity or entities of whatever description or kind which, before March 15, 1999, conducted business as a casino or otherwise through and by a combination, confederation, or aggregation of 'single place or premises' as that term before March 15, 1999, was interpreted and applied by the Department of Revenue in regulation may operate or continue to operate except as provided in this subsection.

(2)     After September 1, 1999, entities as described in this subsection are permitted to re-apply for, and may be granted renewal of a license for a maximum of one biennial licensure period. After completing that period, a new license must not be issued.

Section 12-22-830.     (A)     A person residing in the county in which an establishment license is requested to be granted, or a person residing within five miles of the establishment for which an establishment license is requested, may, before seven days after the last published notice, protest the issuance of the license if a written protest is filed with the department setting forth:

(1)     the name, address, and telephone number of the person filing the protest;

(2)     the name of the applicant for the establishment license and the address of the establishment sought to be licensed;

(3)     the specific reasons why the application should be denied; and

(4)     whether he wishes to attend and offer testimony before a contested case hearing before the Administrative Law Judge Division.

(B)     Upon receipt of a timely filed protest, seeking a contested hearing before the Administrative Law Judge Division, the department may not issue the establishment license but shall forward the file and its determination to the Administrative Law Judge Division.

(C)     If the protestant expresses no desire to attend a contested hearing and offer testimony, the protest is considered invalid, and the department shall continue to process the application and make its determination of whether all other statutory requirements for the license are met.

Section 12-22-840.     (A)     A licensed establishment, including its employees and agents, may not:

(1)     maintain, possess, or otherwise allow on its premises more than five machines;

(2)     advertise, or allow advertising, in any manner for the playing of the machines except as provided in Section 12-22-860;

(3)     offer or allow to be offered any inducement to a person for the playing of machines;

(4)     allow anyone under the age of twenty-one to receive payouts as a result of playing machines;

(5)     operate machines between the hours of two o'clock a.m. and six o'clock a.m. and between two o'clock a.m. Sunday and six o'clock a.m. Monday.

(6)     cash any business, personal, or employment checks of any individual or business;

(7)     make loans to any individual or business;

(8)     accept a credit card or debit card from a player for the exchange or purchase of game credits or for advancement of coins or currency;

(9)     extend credit, in any manner, to a player;

(10)     be located within five hundred feet within a county, or within three hundred feet in a municipality, of a public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; or house of worship; or

(11)     allow playing of machines by a person in an intoxicated condition.

(B)     The distances in this article must be computed by determining the shortest distance between the nearest property line of the licensed establishment and the nearest property line of the public or private elementary, middle, or secondary school; a public or private kindergarten; a public playground or park; a public vocational or trade school or technical educational center; a public or private college or university; house of worship; or other establishments with machines.

(C)     No establishment which holds a minibottle license or an on premises consumption beer and wine permit may be a licensed establishment under this chapter unless machines located in such an establishment are in a separate room surrounded by finished, permanent walls. Consumption of alcoholic liquor, beer, or wine in this separate room is prohibited and is grounds for revocation of the license issued the establishment under this chapter and its license or permit issued under Title 61.

Section 12-22-850.         (A)     The offering of an inducement as prohibited in Section 12-22-840 means any attempt to influence a person to play machines including, but not limited to:

(1)     free or discounted food or beverages;

(2)     free or discounted games other than credits won through authorized play;

(3)     prizes, either at the doors or through drawings or other means;

(4)     coupons offering any of the above; or

(5)     cash other than authorized payouts.
These specified inducements are not exclusive. Other attempts to influence a person to play a machine are prohibited.

(B)     A licensed establishment that engages in activities other than the operation of machines may not offer any inducement unless the licensed establishment is able to prove that the inducements offered are not directed at machine players and that the offerings are part of the normal business practice of similar activities in this State.

Section 12-22-860.     (A)     A licensed establishment may only advertise, or allow the advertising of, the playing of machines by utilizing a single green square not exceeding four by four feet which may be placed alone on any side of the building in which the licensed establishment is located.

(B)     Nothing in this section prevents a licensed establishment from advertising other goods and services except as otherwise prohibited by law.

(C)     No person may advertise in a misleading or deceptive manner.

(D)     To protect the public from misleading, deceptive, or aggressive sales practices, no person shall advertise the playing of machines or a business regulated under this chapter in any manner that suggests winning, money, or wealth.

(E)     Due to the pervasiveness of the medium and the children in the audience, no person may advertise the playing of machines in any broadcast medium between the hours of 5:00 a.m. and 11:00 p.m.

(F)     No person shall advertise in any manner for the playing of machines within one thousand feet of a public or private school, daycare center, kindergarten, residence, park, playground, or church.

(G)     Signs and nonbroadcast advertising in existence on the effective date of this chapter are not subject to the provisions of this section until July 1, 2000, if notice is given to the department as required in this chapter.

Section     12-22-870.     (A)     A licensed establishment must have posted and visible to the public at least one sign with the following words printed on it:

(1)     'A person must be twenty-one years of age to receive payouts from a video game machine.'

(2)     'It is illegal to offer inducements to a person to play video game machines.'

(3)     'All games are random. Games are set to issue a minimum theoretical payout of at least ninety percent.'

(4)     'This establishment maintains a copy of the video game machine laws on the premises for review by players at their request.'

(5)     'Validated tickets may be redeemed for cash.'

(6)     'Violators are subject to civil and criminal penalties.'

(7)     'Violations may be reported to South Carolina Law Enforcement Division or your local law enforcement agency.'

(8)     'No payout of greater than one hundred twenty-five dollars per player per location during any twenty-four hour period is allowed, regardless of the amount deposited in the machine.'

(B)     The sign required by subsection (A) must be placed on the wall behind the machine, but must be visible and readable by the person playing the machine. Each letter on the sign must be at least two inches high.

(C)     Each machine licensed under this article must have a prominently displayed sign citing the penalties provided for tampering, skimming, and intentional manipulation as provided for in this article. The sign must be displayed on the wall above the machine or affixed prominently to the machine.

(D)     In addition to all other signs required under this section, a white warning label must be prominently and permanently affixed to each machine. The label must contain 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. The toll free number to be inserted on the label must be provided by the South Carolina Department of Alcohol and Other Drug Abuse Services.

Section 12-22-880.     (A)     A licensed establishment may not derive the primary and substantial portion of its proceeds from machines. A licensed establishment which receives more than fifty percent of its total gross proceeds from machines violates this prohibition. This fifty percent requirement must be maintained each calendar quarter of the calendar year. The department may require reports to be filed as to the amount of gross proceeds at the licensed establishment that are from activities other than machines. Each licensed establishment must maintain records on the premises that show compliance with this section including, but not limited to, gross machine income by months, gross proceeds by month from all other sources, invoices for purchases, cash payouts by month, bank deposits, and all checking, savings, and similar account records.

(B)     The department shall revoke the establishment's license and all machine licenses in the establishment if the establishment is in violation of this section.

Section 12-22-890.     Each licensed establishment shall maintain on the premises a copy of this chapter for review by the public upon request.

Article 9
Machine Requirements

Section 12-22-1010.     Before a machine may be connected or remain connected to the central computer monitoring system, the machine must have a current and valid machine license. The machine owner and machine operator, and the establishment at which the machine is located must have current and valid licenses as required by this chapter.

Section 12-22-1020.     (A)     All machines, location controllers and associated modems, computer chips, and any other part of a machine must be verifiably of a make, model, and software version certified by the department or a testing lab selected by the department before the items may be possessed, owned, operated, or allowed to operate at any place within this State.

(B)     A person may not possess, own, operate, or allow the operation of a contraband machine or device at any place within this State.

Section 12-22-1030.     (A)     Within ninety days after the effective date of this chapter, all machines must meet the following standards, and machine owners shall certify to the department, under oath, and in a form prescribed by the department, that the machines are prepared for connection to the central computer monitoring system. All machines must:

(1)     have games that are random and have a minimum payout of between ninety percent and ninety-nine percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory at optimal play;

(2)     be secure and accountable;

(3)     not operate in a misleading or deceptive manner;

(4)     not have any means of manipulation that affect the random probabilities of winning a game;

(5)     have one or more mechanisms that accept only coins or cash in the form of bills. The mechanisms must be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means;

(6)     have one or more metering devices that keep a record of (a) all cash inserted or deposited into the machine; (b) credits played, (c) credits won, (d) validated cash ticket amounts, and (e) other information prescribed by the department. Cash records must include total coins and bills accepted and total credit generated by coin and bill acceptors;

(7)     be capable of being accessed on demand by telecommunication through a location controller from the central computer monitoring system for purposes of polling or reading device activities and for central computer remote enabling or disabling of machine operations;

(8)     be capable of interfacing with a central computer monitoring system through a location controller;

(9)     when requested by the department after certification, be connected to the central computer monitoring system through a location controller;

(10)     meet the standards set by the department and those set forth in this chapter; and

(11)     not offer on the face of the machine or in any pay table the possibility of receiving a payout greater than one hundred twenty-five dollars per player per location during any twenty-four hour period.

(B)     Machines not meeting the standards of this chapter, or the standards of the department, must not be licensed. The license of any machine which fails to maintain the standards of this chapter, or any standards of the department, must be revoked.

(C)     When the department approves the software and logic board of a machine, the division may use a prescribed security seal process to guard against any unauthorized tampering or changes to the erasable programmable read only memory (EPROM) chip or chips, or future, similar such technology. Any repair, replacement, or adjustment to the machine's EPROM chips or similar technology must be done in the presence of a division employee.

Section 12-22-1040.     (A)     As part of the central computer monitoring system, each location operating machines must provide a location controller and modem meeting department requirements. Each location controller must be capable of receiving, storing, and transmitting to the central computer monitoring system all information received from and required of machines. Each location controller shall be capable of supporting at least five machines.

(B)     This section applies to those location controllers which participate in the system as separate hardware entities and any head of string location controller which meets the specifications of this section.

(C)     The cost for purchasing, leasing, and installing, the location controller is the responsibility of the licensed establishment in which the machines are located.

(D)     Each location controller must be able to perform the following functions:

(1)     communicate with machines in an on-line environment;

(2)     store log entries of openings of machine game doors;

(3)     store log entries of openings of machine coin or currency doors;

(4)     authorize a machine to be taken off-line from the location controller and store a log of this event;

(5)     disable a machine and store a log entry upon a game door open, and a coin door open;

(6)     store a log entry if machine is off-line from the location controller;

(7)     store a log entry for machine tampering if the signal received from the machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;

(8)     store a log entry of reenabling a machine that has been disabled;

(9)     log entries which include a VGMID for each machine and date/time stamp;

(10)     communicate to the central computer system the information which has been gathered from the machines and any log entries stored during the period using a protocol provided by the department or designated agent;

(11)     have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated machines linked to the location controller. The data must be stored immediately in a manner that allows, on demand, real time access by the central computer monitoring system. Access to data stored in the location controller must be restricted to authorized entry from the central computer monitoring system and other authorized inquiry only access that has been preapproved by the department;

(12)     have an internal clock;

(13)     be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the machines or to the central computer monitoring system. This requirement extends to the location controller as well as its associated communication device, and cabling between the controller, the machines, and communication device;

(14)     be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions. Locations using a location controller that is not constructed so as to operate in these environments and that fail to operate properly are not allowed to operate machines until the location controller is repaired or replaced so as to operate in such a suboptimal environment;

(15)     be capable of validating tickets printed by a machine.

Section 12-22-1050.     The department may set standards for machines, modems, location controllers, the central computer monitoring system, and associated equipment including, but not limited to, technical standards, hardware specifications, software specifications, and standards relating to multiplayer units. Applicants must meet these standards before any license may be issued. The department may revise technical standards as is necessary providing sufficient time for compliance by licensees. The technical standards established by the department must, to the extent possible, within the limitation of this chapter, maximize competition among manufacturers.

Section 12-22-1060.     The burden of proof that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements is the responsibility of the manufacturer or machine owner. The department may require the manufacturer or machine owner to obtain a certification from an approved laboratory indicating that the machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The cost of this certification is the responsibility of the manufacturer or machine owner. The department shall provide a list of approved laboratories. The department may also review a laboratory to determine if the laboratory should be added or removed from the department's list of approved laboratories. The department may contract with a testing laboratory to ensure and certify that a machine, game, location controller, modem, or any part of a machine meets the required standards and requirements. The department may also establish a state testing laboratory. Payment of the cost of testing by the laboratory is the responsibility of the manufacturer or machine owner.

Section 12-22-1070.     A machine owner shall notify the department before a machine is added, moved, replaced, or disconnected.

Section 12-22-1080.     The licensed establishment or machine owner shall notify the department before a location controller is added, moved, or disconnected.

Section 12-22-1090.     (A)     Each location controller must be programmed automatically to disable the play of all machines connected to the location controller, if the location controller has not been polled by the central computer monitoring system for the purpose of collecting meter and event data, for a period to be determined by the department, but not less than seventy-two hours. The machine must be enabled when communication has been restored.

(B)     Whenever a machine is disabled during play of a game, the following must occur:

(1)     a message must appear on the screen warning the player that the machine is about to be disabled and the player must be informed that one minute remains to complete the game;

(2)     a count-down timer must be displayed; and

(3)     if the player completes the game, all payouts must be reported on a payouts ticket and no other games are allowed to be played on that machine;

(4)     if the player has not completed the game in the minute allotted, then the machine shall complete the hand according to the manufacturer's recommended play strategy, all payouts must be reported on a payouts ticket, and the machine then disabled.

Section 12-22-1100.     (A)     Each machine placed in operation in this State must have affixed by the manufacturer a VGMID assigned by the department. Each machine owner shall notify the department in writing of the receipt of a machine. Manufacturers, distributors, and machine owners shall make machines and associated equipment available for inspection by the department or division. No machine may be transported out-of-state until the VGMID has been removed. No one other than an authorized department or division employee shall remove the VGMID. For qualifying machines already located in the State, the department shall assign, and the division shall affix, the VGMID. The VGMID must be programmed into the machine and serves as the machine's unique identifier for purposes of logging events and reporting play statistics.

Section 12-22-1110.     (A)     Every machine owner shall maintain records for each machine showing the manufacturers' serial number; model and type of machine; the VGMID; the license number; the location's name, address, and telephone number; the machine operator; the date the machine entered this State; the date it entered the location; the date the machine went on-line; and the bank account from which the taxes are withdrawn.

(B)     The machine owner shall maintain information relating to the payment of any money or compensation paid to any persons to operate the machine. Information required by this section must be available on demand for inspection by a representative of the department or division.

Section 12-22-1120.     (A)     No person may possess, own, operate, maintain for use or operation, or allow the operation of, any machines that:

(1)     allow more than two dollars to be risked, wagered, or played on any one play or hand;

(2)     issue payouts of more than one hundred twenty-five dollars per player per location during any twenty-four hour period;

(3)     require any minimum number of credits before issuance of a validated payouts ticket;

(4)     permit any player to receive a payout greater than one hundred twenty-five dollars per player per location during any twenty-four hour period, regardles of the amount of money deposited into the machine;

(5)     produce validated tickets worth more than one hundred twenty-five dollars per player per location during any twenty-four hour period regardless of the amount deposited in the machine;

(6)     allow the production of multiple tickets with a collective value of greater than one hundred twenty-five dollars per player per location during any twenty-four hour period or any other schemes to evade the one hundred twenty-five dollars per player per location during any twenty-four hour period limitation; or

(7)     offer on the face of the machine or in any pay table the possibility of receiving a payout of greater than one hundred twenty-five dollars per player per location during any twenty-four hour period.

(B)     The department shall revoke for five years all licenses of the machine owner, machine operator, machines, and the establishment, where any machine violating subsection (A) is found.

Section 12-22-1130.     A machine must be disposed of in a manner that makes it incapable of use or operation in any video game or other gaming or amusement activity. A machine may not be disposed of until notice has been given to the department as provided in this section. An owner desiring to dispose of an unsaleable or damaged machine shall notify the department in writing before disposal and provide the following information in a manner as directed by the department:

(1)     the full name, address, and license number of the person or entity disposing of the machine;

(2)     the manufacturer's serial number of the machine;

(3)     the model number and description of the machine;

(4)     the manufacturer of the machine;

(5)     the VGMID of the machine;

(6)     the hard meter readings of the machine;

(7)     the licensed establishment at which the machine was located;

(8)     the proposed manner, time, and place of disposal.

Section 12-22-1140.     A machine must not simulate bingo or a slot machine.

Section 12-22-1150.     Each machine must contain a single printing mechanism capable of printing an original ticket and retaining an exact copy which is subject to inspection by the department. Tickets must contain any information the department determines to be reasonable for the efficient administration of this chapter. The department shall provide manufacturers information as to the information needed on a ticket and the placement of information on the ticket.

Section 12-22-1160.     All machines, location controllers, and the central computer monitoring system selected by the department must perform correctly before, during, and after the year 2000, with no error in functioning or data caused by failure to correctly interpret and utilize data contained within date fields within the system.

Section 12-22-1170.     The department, in its discretion, may approve alternative technical provisions provided that the technology maintains the security, account information, and integrity of the machines, location controllers, and central computer monitoring system.

Section 12-22-1180.     The central computer monitoring system shall delete prior to the completion of play and the printing of validated tickets all credits or their equivalents with a value of greater than one hundred twenty-five dollars.

Article 13

Background Investigations

Section 12-22-1310.         (A)     The division shall conduct background investigations on those persons associated with the operation of machines as provided in this chapter. A background investigation is defined as a security, criminal, and credit investigation of a person associated with the operation of machines or a principal connected to that business. The division shall conduct the investigations and inspections it considers necessary to fulfill its responsibilities under this chapter.

(B)     The division shall:

(1)     promptly and in a reasonable order, investigate all applications, enforce the provisions of this chapter, and provide to the department all information to allow the department to issue or deny the license;

(2)     provide the department with all information necessary for all actions under this chapter and for all proceedings involving enforcement of the provisions of this chapter or any regulations;

(3)     investigate violations under this chapter and any regulations;

(4)     conduct continuing review of machine operations through on-site observation and other reasonable means, to assure compliance with this chapter;

(5)     receive and take appropriate action on any referral from any law enforcement agency or the department relating to any evidence of a violation of this chapter and regulations;

(6)     exchange fingerprint data with, and receive criminal history information from, the Federal Bureau of Investigation or other law enforcement agencies;

(7)     have the authority to request and receive information, materials, and any other data from any person; and

(8)     report to the department any recommendations that promote more efficient operations of the division or the department.

(C)     In connection with the responsibilities under this chapter, the division or the department and their employees and agents may:

(1)     inspect and examine all establishments where machines are operated;

(2)     inspect and examine where machines or equipment are manufactured, sold, distributed, or serviced;

(3)     inspect all equipment and supplies in, about, upon, or around the establishment;

(4)     seize and remove from such establishments and impound any machines, equipment, or supplies for the purposes of examination and inspection;

(5)     inspect, examine, and audit all records pertaining to an applicant's operation;

(6)     seize, impound or assume physical control of any book, record, ledger, machine, and boxes and their contents.

(D)     The division may obtain warrants for the inspection and seizure of any property possessed, controlled, or otherwise held by any applicant or principal.

(E)     The division may inspect any applicant or licensee for compliance with the provisions of this chapter and regulations and to investigate any violations.

Section 12-22-1320.         (A)     Investigations must be conducted on manufacturers, distributors, establishment owners, machine owners, machine operators, service technicians, and their principals.

(B)     As a condition of receiving a license under the provisions of this chapter, each applicant and principal shall agree that the division and the department have unrestricted access and the right to inspect any premises under the control of the applicant or principal in which occurs any activity related to the provisions of this chapter.

(C)     Each applicant and principal, by signature of his application, grants the division the authority to access state, national, and international information for validation of information contained on the application. Any information found at the state, national, or international level which would prevent the applicant from obtaining any license required under this chapter must be used to do so.

(D)     Each applicant and principal shall cooperate with the division and the department in the performance of their duties.

(E)     Each applicant with submission of an application shall submit a valid fingerprint card for every principal or others affiliated with the operation of the licensed business.

Section 12-22-1340.     (A)     The department shall deny a license if a background investigation of any applicant or principal of an applicant reveals any of the following:

(1)     a conviction within fifteen years before the date of the application in any jurisdiction for any of the following offenses:

(a)     any offense punishable by imprisonment for two or more years;

(b)     any gambling offense;

(c)     theft or any crime involving false statements or declarations.

(2)     a determination of liability for, or an agreement that he was liable for, a civil judgment based in whole or in part upon conduct described in item (1) of this subsection;

(3)     omission of any material facts to the division or the department during initial or subsequent background investigations or a misstatement, or untrue statements, of material facts with respect to such investigation;

(4)     association with persons or businesses of known criminal background, or persons of disreputable character, that may adversely affect the general credibility, security, integrity, honesty, fairness, or reputation of the State or to the effective regulation of video poker;

(5)     failure to cooperate with any legislative investigative committees or other officially constituted body acting on behalf of the United States or any state, county, or municipality which seeks to investigate crimes related to gambling, corruption of public officials, or any organized criminal activities;

(6)     that the applicant owes any federal or state delinquent taxes, penalties, or interest.

(B)     The department or division may require any person to appear and testify before the department's or division's agents with regard to any manner within their jurisdiction. This testimony must be under oath and may embrace any matters which the department or the division considers relevant to the discharge of their official duties. Any person required to appear and testify has the right to be represented by counsel. Any testimony taken may be used by the department as evidence in any proceeding or matter then before the division or the department. Failure to appear and testify, unless excused, constitutes grounds for termination of application and may constitute revocation of current licenses.

Section 12-22-1350.     (A)     Each applicant shall bear all risks of unintentional adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of any material or information obtained by the department or division pursuant to action on an application.

(B)     Distributors, principals, machine owners, machine operators, and technicians, and any other persons the division or the department considers necessary have an affirmative duty to maintain on file with the department and the division current and correct disclosure of all principals and all material facts required for licensure.

Section 12-22-1360.         (A)     The applicant for a license shall provide detailed information regarding:

(1)     the ownership and management, including information on all principals;

(2)     a detailed history and explanation of gambling activities and licenses in other jurisdictions of the applicant and all principals;

(3)     federal registration with respect to gambling devices; and

(4)     any other information considered necessary by the department for the proper administration and enforcement of this chapter.

(B)     The department and the division are authorized to develop applications and other forms.

(C)     The forms must require the applicant to disclose any present or previous experience or involvement with machines as a manufacturer, distributor, machine owner, machine operator, technicians, or employees. Present or previous experience or involvement includes the control of gambling devices as a machine owner or machine operator; employment with the machine owner or machine operator gambling devices; employment in establishments where gambling is offered to the public; and conviction of violation of federal, state, or local gaming laws in any jurisdiction.

(D)     The applicant shall submit proof with the application that he does not owe any federal or state delinquent taxes, penalties, or interest.

(E)     As a condition of receiving a license under the provisions of this chapter, each licensee shall agree that the division, the department, and their agents and employees, shall have unrestricted access and the right to inspect any premises under the control of the licensee in which any activity relating to the provisions of this chapter is conducted.

Section 12-22-1370.         (A)     The applicant shall provide the local governing authority information related to the application for any license issued under this chapter.

(B)     Each applicant shall immediately make available for inspection, by any department or division employee, all records and the establishments where machines are placed or operated, or where machines, devices, or equipment are manufactured, sold, serviced, or distributed.

Section 12-22-1380.         (A)     The applicant shall file a duplicate application with the department. The department shall forward one of the applications to the division. No time limit is imposed on the division for completion of its investigation. The division shall return the background investigation to the department.

(B)     The department shall determine whether the applicant owes any delinquent taxes, fines, penalties, or interest.

(C)     The department may not issue any license until the background investigations are concluded. The department shall make affirmative determination that the applicant is qualified and the applicable license or associated fees have been paid before issuing any license.

(D)     The department or division shall notify the applicant by mail if an application is incomplete. The notification must be sent to the address on the application. The notification must state the deficiencies in the application. If after the second notice of an incomplete application the applicant has not responded, the department shall consider the application withdrawn.

Article 15
Penalties

Section 12-22-1510.     (A)     The department may revoke licenses required under this chapter held by any person who fails to comply with any provision of this chapter or any provision of a regulation pertaining to this chapter. In lieu of revocation of licenses, the department may suspend licenses. In addition, the department may impose a monetary penalty of not more than five thousand dollars for each failure to comply with a provision of this chapter or any provision of a regulation pertaining to this chapter. Each violation and each day in violation of a provision of this chapter or any provision of a regulation pertaining to this chapter constitutes a separate offense.

(B)     With respect to any failure to comply with any provisions of this chapter occurring at a licensed establishment, the machine operator and the machine owner are both liable for any penalty and are both subject to revocation and suspensions as provided in this section.

Section 12-22-1520.     (A)     A person is guilty of a felony and, upon conviction, the person must be fined not more than twenty-five thousand dollars or imprisoned not more than five years, or both, if:

(1)     the person wilfully tampers with a machine, location controller, or associated equipment with intent to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)     the person wilfully excludes, or takes any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;

(3)     the person wilfully manipulates the outcome, payoff, or operation of a machine;

(4)     the person wilfully launders or knowingly allows another to launder money through one or more machines;

(5)     the person knowingly possesses, owns, operates, or allows the operation of, a contraband machine, or contraband device, at any place within this State;

(6)     on or after September 1, 1999, or the ninetieth day following the effective date of this chapter, whichever is later, the person operates, or allows the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter;

(7)     the person intentionally skims or excludes, or takes any action, in an attempt to exclude anything or its value from the deposit, counting, collection, or computation of revenues from machines;

(8)     the person operates an establishment in this State for the playing of machines without having a license;

(9)     the person conducts business in this State as a machine or location controller manufacturer, a machine owner, or a distributor without having a license;

(10)     the person operates machines without having a machine license; or

(11)     the person managing or otherwise having the charge or care of a licensed establishment, or the owner of a video game machine, wilfully violates items (1), (2), (3), (4), (5), (6), (7), (8), (9), or (11) of Section 12-22-840(A), each being a separate offense under this section.

Section 12-22-1525.     Conspiring to subvert the provisions of this chapter is a conspiracy as defined and punished in Section 16-17-410.

Section 12-22-1530.     (A)     The following activities are criminal violations of this chapter:

(1)     refusing or otherwise preventing the inspection or examination by the department, the division, or any law enforcement officer, of any establishment, and any premises used for the manufacture, distribution, or storage of machines within this State;

(2)     refusing or otherwise preventing the examination by the department or division of revenue, payouts, or net machine income, records or equipment of any licensed or unlicensed machine owner, machine operator, manufacturer, distributor, or establishment.

(B)     A violator is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than five hundred dollars or imprisonment of not more than thirty days, or both. Each failure to have a license required under this chapter constitutes a separate offense. Offenses under this item are triable in magistrate's court.

Section 12-22-1540.     (A)     The following activities are additional civil violations of this chapter subject to the penalties in Section 12-22-1510:

(1)     tampering with a machine, location controller, or any other part, device, or system to interfere with its proper operation or the proper operation of the central computer monitoring system;

(2)     excluding, or take any action in an attempt to exclude, anything or its value from the deposit, counting, collection, or computation of revenues, free games, or credits from machines;

(3)     manipulating the outcome, payoff, or operation of a machine;

(4)     possessing, owning, operating, or allowing the operation of, a contraband machine or device at any place within this State;

(5)     operating, or allowing the operation of, machines that are not connected to the central computer monitoring system in accordance with this chapter; or

(6)     conspiring to subvert the provisions of this chapter.

Section 12-22-1550.     In addition to all other civil and criminal penalties, any person operating a contraband machine must be assessed a civil penalty in an amount equal to the statewide average of cash placed into a machine for the longer of its time of operation or twelve months.

Section 12-22-1560.     (A)     The department shall disable machines via the central computer monitoring system for the following reasons:

(1)     The establishment at which the machines are located has had its establishment license or retail sales tax license revoked or suspended.

(2)     The license assigned to the machine has been revoked or suspended.

(3)     The machine owner has had his machine owner's license revoked or suspended.

(4)     The machine license has expired and no new license has been issued by the expiration date.

(5)     The central computer monitoring system has registered a violation of system integrity by a machine. A machine disabled for this reason must be enabled again as soon as the problem has been resolved.

(6)     The central computer monitoring system has disabled a machine, upon request, in order for it to be moved or relocated.

(B)     A machine disabled for revocation of licenses as set forth in item (1), (2), or (3) of subsection (A) of this section must not operate in this State for a period of five years from the date of the revocation. The five-year prohibition also applies to any part of the machine. Any machine, to include its parts, which is not allowed to operate in this State under the provisions of this section, must be stored by the owner in a facility approved by the department or division.

Section 12-22-1570.     (A)     Any person may bring a civil action for any violation of any of the provisions of this chapter. The case must be brought in the name of the State, and may be filed in any state court of competent jurisdiction. The person bringing the case may seek any fine or penalty that the State may seek.

(B)     A copy of the complaint must be served on the Attorney General and the director, by the person bringing the action, either of whom may elect to join any action brought by the person.

(C)     If the State joins with an action brought by a person under this section, the State, in addition to other fines or penalties, may request the suspension or revocation of licenses. The person shall receive at least fifteen percent but not more than twenty-five percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to litigating the action. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.

(D)     If the State does not join with the action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and revocation. The amount must not be less than twenty-five percent and must not be more than forty percent of the proceeds of the action or settlement, and must be paid out of the proceeds. The person also shall receive an additional amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs, to be paid by the defendant.

(E)     The State is not liable for expenses which a person incurs in bringing an action under this section.

(F)     No settlement may be entered without approval by the department.

(G)     Any determination in an action under this section that a licensee has violated a provision of this chapter is grounds for revocation of those licenses and the department may bring a subsequent action for suspension or revocation.

Section 12-22-1580.     The penalties authorized by this chapter are effective immediately upon imposition and may not be stayed by any administrative or judicial action.

Section 12-22-1590.     In any action under this chapter, no person may raise as a defense that he acted on the advice of his certified public accountant, unless he proves that he supplied that accountant with a copy of this chapter and all relevant regulations.

Article 17
Arcade Game Machines and Other Devices

Section 12-22-1710.     Cash payouts are not permitted with respect to the games played on machines and other devices licensed under this article. The provisions of the other articles do not apply to the machines and devices licensed under this article.

Section 12-22-1720.     Every person required to obtain a license for any machine or device described in Section 12-22-1730 shall maintain records showing the manufacturer's serial number, model or type of machine, and the location of the machine. The taxpayer shall maintain information relating to the payment of any monies or compensation made to any persons as part of a lease or contractual agreement to operate the machine on the premises of the person. Information required by this section must be available on demand for inspection by a representative of the department.

Section 12-22-1730.     (A)     Every person who owns and operates, or places for use in another person's place or premises for a share of any revenue, one or more of the following machines or devices shall apply for and procure from the department a license effective for two years for the privilege of making use of the machine or device in this State. The person shall pay for the license a nonrefundable fee of fifty dollars for each machine or device in items (1) and (4), two hundred dollars for each machine or device in item (2), and two thousand dollars for each machine or device 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 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 on which an admissions tax is imposed is exempt from the license provisions of this section;

(3)     a machine of the nonpayout type, in-line pin game 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;

(4)     billiard or pocket billiard table, foosball table, bowling lane table, or skeeball table operated for profit.

(B)     The license must be purchased in advance on or before the first day of June every two years or before making a machine available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(C)     Machines which have multiplayer stations must have a separate license for each such station.

(D)     As an alternative to the license required in subsection (A), a person may be granted a nonrefundable seasonal license beginning April first and expiring September thirtieth, following the date of issue, which must not be prorated. The fee for this six-month license is one-fourth the biennial license fee.

(E)     If the license required in subsection (A) is purchased after June thirtieth, the license fee must be prorated on a twenty-four month basis with each month representing one twenty-fourth of the license fee imposed under subsection (A).

(F)     Upon application being made for a license to operate any machine, the department may presume that the operation of the machine is lawful, but the issuance by the department of a license does not make lawful the operation of any machine which is unlawful under the laws of this State. When a license has been issued, the sum paid for the license must not be refunded notwithstanding that the operation of the machine or apparatus is prohibited.

(G)     Failure to obtain a license as required by this article makes the person liable for the penalties imposed in this article.

(H)     The department, upon notification by the licensee purchasing machines from another licensee, shall allow for the transfer of the license issued pursuant to subsection (A) upon sale of the machine and license to the new owner. Notification for the transfer of the machine must be made to the department at least five days before transfer of the machine. This notification of sale must include a notarized statement of both the purchaser and seller identifying the machine by serial identification number and machine license number.

(I)     The license issued pursuant to this section must be displayed conspicuously on the front of the machine on a permanent, nontransferable part of the machine before its operation commences. The license must always be a current and valid license.

Section 12-22-1740.     (A)     In addition to all other licenses required by this article, a person required to obtain a license for any machine or device described in Section 12-22-1730 shall obtain an owner's license biennially as follows:

(1)     fifty dollars for devices in Section 12-22-1730(A)(1) and (A)(4);

(2)     two hundred dollars for devices in Sections 12-22-1730(A)(2) and 12-22-1730(A)(3).

(B)     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)     The license may be purchased in advance on or before the first day of June every two years or before making a machine or device available for play. All licenses expire May thirty-first the second year of which the license is valid following the date of issue.

(D)     Failure to pay taxes to the State is grounds for the cancellation of the license provided in this section.

(E)     The provisions of this section do not apply to any person with a current and valid machine owner's license issued under Article 3 of this chapter.

Section 12-22-1750.     In lieu of the licenses required under Sections 12-22-1730 and 12-22-1740, the department may issue a temporary license to persons making application to operate machines or devices required to be licensed under this article at a recognized county or state fair. The temporary license fee is the total amount of license fees required on all machines or devices for which application is made, based upon one-twenty-fourth of the biennial license required under Sections 12-22-1730 and 12-22-1740. The license is valid for the specific location designated on the license and the number of machines for which application was made and expires when the designated fair officially ends.

Section 12-22-1760.     Machines or devices licensed pursuant to Section 12-22-1730(A)(1), (A)(2), and (A)(4) are not subject to confiscation for a violation of Section 16-19-30, 16-19-40, 16-19-50, or 16-19-130.

Section 12-22-1770.     A person who fails, neglects, or refuses to comply with the provisions of this article, or who fails to attach the required license to any machine or device as required under this article, is subject to a penalty of five hundred dollars for each failure, and the penalty may be assessed and collected by the department. This penalty may be deposited to the credit of the general fund of the State.

Section 12-22-1780.     In addition to the penalties provided in Section 12-22-1770, any machine or device not having the required license attached, or which is improperly licensed, may be seized and confiscated by the division, its agents or employees, and sold at public auction after thirty days' advertisement. Upon payment of the license required, the department may return the property seized and confiscated.

Section 12-22-1790.     Municipalities and counties may levy a license tax on the business tax taxed under this article but in no case may the tax exceed twelve dollars and fifty cents.

Section 12-22-1800.     A person required to obtain a license for any machine or device described in Section 12-22-1730 must have attached to the machine or device information identifying the owner or operator of the machine or device. The identification must be placed on a part of the machine or device which is visible for inspection purposes. This identification is a condition precedent before the machine or device may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of this chapter and of Chapter 54 as applicable.

Section 12-22-1810.     If an unlicensed machine is seized by law enforcement as a prohibited machine under the laws of this State, the department shall assess a penalty equal to the amount of the license fee."
SECTION     2.         Section 12-60-3370 of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Section 12-60-3370.     (A)     Except as provided below, a taxpayer shall pay, or post a bond for, all taxes, including interest, penalties, and other amounts determined to be due by the Administrative Law Judge or DMV hearing officer before appealing the decision to the circuit court. For property tax cases covered by Section 12-60-2140 or 12-60-2550, the taxpayer need only pay the amount assessed under the appropriate section.

(B)     If the revocation or suspension of any license required under Chapter 22 of this title for the disabling of any video game machines via the central computer monitoring system is upheld by a decision of the Administrative Law Judge Division, then the person appealing the decision to the circuit court shall post a cash or surety bond with the department equal to three times the net machine income of the last two calendar quarters for the video game machines in question or in operation at the licensed establishment. As an alternative, the person appealing the decision may pay twice a month, to the department as a cash bond, the net machine income from the video game machines in question or in operation at the licensed establishment. A cash bond must be held by the State Treasurer, without interest, as surety conditioned upon prompt payment of any amount determined by the court to be due.

(C)     If the revocation or suspension of licenses or the disabling of machines is upheld upon appeal, the person subject to the revocation, suspension, or disabling is liable for and shall pay to the department an amount equal to the net machine income from the date of the decision by the Administrative Law Judge Division to the date of the final court order."
SECTION     3.         Section 61-4-580(3) of the 1976 Code, as added by Act 415 of 1996, is amended to read:

"(3)     permit gambling or games of chance not authorized by Chapter 22 of Title 12;"
SECTION     4.         Chapter 19, Title 16 of the 1976 Code is amended by adding:

"Section 16-19-65.     (A)     It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games or chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Article 9, Chapter 22 of Title 12, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

(B)     Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both.

(C)     Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by this section must be seized by any law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if satisfied that it is in violation of this section or any other law of this State, shall direct that it be immediately destroyed.

Section 16-19-66.     (A)     It is unlawful for a person to operate, cause to operate, or attempt to operate an automatic vending machine, slot machine, coin-box telephone, or other receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service by means of a slug or any false, counterfeited, mutilated, sweated, or foreign coin, or by any means not lawfully authorized by the owner, lessee, or licensee of the receptacle.

(B)     It is unlawful for a person to take, obtain, or receive from or in connection with any receptacle designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service any goods, wares, merchandise, gas, electric current, or other article of value or the use or enjoyment of any telephone or telegraph facilities, or service, or of any musical instrument, phonograph, or other property, without depositing in and surrendering to the receptacle lawful coin of the United States of America in the amount required by the owner, lessee, or licensee of the receptacle.

(C)     A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than two years.

Section 16-19-67.     A person who, with intent to cheat or defraud the owner, lessee, licensee, or other person entitled to the content of an automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance designed to receive lawful coin of the United States of America in connection with the sale, use, or enjoyment of property or service or who, knowing that the same is intended for unlawful use, manufactures for sale, or sells or gives away any slug, device, or substance intended or calculated to be placed or deposited in the automatic vending machine, slot machine, coin-box telephone, or other receptacle, depository, or contrivance is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years."
SECTION     5.         In accordance with Article 9, Chapter 22, Title 12 of the 1976 Code, the Department of Revenue may set the standards for video game machines, modems, location controllers, software, hardware, the central computer monitoring system, and associated equipment. Failure to comply with these standards subjects the violator to the civil and criminal penalties, including fines, suspensions, and revocations established in Chapter 22 of that title including the provisions of Section 12-22-1580 of the 1976 Code relating to the time such penalties apply without regard to stays. Until the department adopts such standards, the standards provided in Parts 1 through 4 of this section must apply and must be met before issuance of a license. The definitions provided in Section 12-22-10 of the 1976 Code apply for purposes of this section.

Part I
Technical standards for Machines and Location Controllers

(A)     Each machine must be able to connect to a monitoring system via a serial communications port to a location controller meeting the requirements set forth by the department and using a communications protocol provided by the department or its designated agent.

(B)     Each machine must be capable of monitoring and storing the following items:

(1)     The cumulative total of the following for each twenty-four hour period, from 12:00 a.m. to 12:00 a.m., which may be recorded as a "snapshot" of the specified counters at the beginning and ending of each twenty-four hour period:

(a)     cash in, defined as money in dollars and cents;

(b)     credits purchased;

(c)     credits earned or won;

(d)     credits played;

(e)     credits paid;

(f)     cash paid.

(2)     The following security events and the time and date of such events:

(a)     game door open;

(b)     coin-bill/drop door open;

(c)     power off/on;

(d)     off line/on line to the location controller;

(e)     game control board access (logic area).

(C)     Each machine must contain Erasable Programmable Read Only Memory (EPROM) containing all game logic, and contain RAM (Random Access Memory) containing all counters and meters in electronic format, or such other technology as may later be designated by the department.

(D)     Each machine is not allowed to operate if it is not connected in on-line mode to a location controller meeting the requirements set forth by the department.

(E)     A machine must collect the data required in Section 12-22-1040(C) of the 1976 Code and communicate this information to a location controller for storage until requested by the central computer monitoring system. Each security event required in Section 12-22-1040(C) of the 1976 Code may reflect a time and date stamp and the VGMID of the machine.

(F)     A machine automatically must disable itself if communication is lost from the location controller. A machine must store this event. A machine must report a disabling event to the location controller when communication is restored.

(G)     A machine must be capable of being disabled by the central computer monitoring system or the location controller.

(H)     A machine must be capable of being enabled by the central computer monitoring system or by location controller once it has been enabled by the central computer monitoring system.

(I)     A machine must be protected from unauthorized interference or tampering by any person or external device so as to not corrupt or suspend the communication signals or transmitted data required for the proper functioning of the machine and the associated location controller.

(J)     Each machine must have a surge protector installed on the line that feeds power to the machine and must meet the requirements of the department.

Part II
Hardware Specifications

(A)     A machine must have electrical and mechanical parts and design principles that do not subject a player to physical hazards.

(B)     A machine must have a battery backup or an equivalent for the electronic meters and be capable of maintaining accurate information required by law and regulation for one hundred eighty days after power is discontinued from the machine. The backup device must be kept within the locked logic board compartment of the machine.

(C)     A machine must have an on/off switch that controls the electrical current used in the operation of the machine and must be in an accessible place within the interior of the machine.

(D)     The operation of each machine must not be adversely affected by static discharge or other electromagnetic interference.

(E)     Each machine must have one coin acceptor, either electronic or mechanical, one bill acceptor, either electronic or mechanical, or one of each. Approval letters and test reports of the coin and bill acceptors from other state or federal jurisdictions must be submitted to the department. All coin and bill acceptors are subject to approval by the department.

(F)     The internal space of a machine must not be readily accessible when the front door is closed or sealed.

(G)     Logic boards and software EPROMs and RAM must be in a separate, locked and sealed area within the machine and must only be accessible only in accordance with guidelines established by the department. The area must be sealed by, and accessible to, the division.

(H)     The cash and coin compartment must be contained in a locked area within or attached to the machine. This compartment must be accessible by the machine owner or machine operator.

(I)     No switches of any kind, to include but not limited to hardware and software switches, must be installed that alter the pay tables or payout percentages in the operation of a game below the minimum payback of ninety percent, within standard rounding, in which the theoretical payout percentage is determined using standard methods of probability theory. Switches or other devices may be installed to control graphic routines, speed of play, and sound.

(J)     A single printing mechanism must be capable of printing an original ticket and retaining an exact, legible copy within the machine. The ticket must record the number of credits, the value of the credit, and a validation number, when credits accrued are printed on a ticket for validation.

(K)     The printed ticket is the only allowable method for issuing payouts. Hoppers are prohibited.

(L)     A clearly visible identification plate must appear on the front exterior of the machine that contains the manufacturer, the manufacturer's serial number, the model number, the VGMID, and the name of the machine owner. This plate must not be removed. This identification is a condition precedent before the machines may be operated on location. Failure to comply with this requirement subjects the violator to the penalty and enforcement provisions of Chapter 22 of Title 12 of the 1976 Code including the provision of Section 12-22-1580 relating to the time such penalties apply without regard to stays.

(M)     Equipment must be installed in a manner that enables a machine to communicate with the department's central computer monitoring system via the location controller using a communications protocol provided to each manufacturer of machines and location controllers provided by the department or its designated agent.

Part III

Software Requirements

(A)     Each machine must maintain electronic accounting meters at all times, regardless of whether the machine is being supplied with power. Each meter must be capable of maintaining totals no less than eight digits in length for the information required by the law and by regulation of the department.

(B)     Electronic meters must record the cumulative total of cash in, credits purchased, credits paid, credits earned/won, cash paid, and credits played, per each twenty-four hour period, from 12:00 a.m. to 12:00 a.m. This information may be recorded as a snapshot of the specified counters at the beginning and ending of each twenty-four hour period.

(C)     Electronic meters also must record security events, with the time and dates, to include game door open, coin-bill/drop door open, power off/on, off line/on line to the location controller, and game control board access.

(D)     No machine may have a mechanism that an error will cause the electronic accounting meters to automatically clear. Clearing of the electronic accounting meters may be completed only after notification and approval by the department and supervised by the division.

(E)     Each machine must have a random number generator that determines the occurrence of a specific card or a specific number to be displayed on the video screen. A selection process is considered random if it meets all the following requirements:

(1)     each card position or each number position satisfies the ninety-nine percent confidence limit using the standard chi-squared analysis;

(2)     each card or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card or number position is considered random if it meets the ninety-nine percent confidence level with regard to the runs test or any similar pattern testing statistic;

(3)     each card or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test". Each pair of card or number positions is considered random if they meet the ninety-nine percent confidence level using standard correlation analysis; and

(4)     each card or number position meets the serial correlation test, meaning that it is independently chosen without reference to the same card or number position in the previous game. Each card or number position is considered random if it meets the ninety-nine percent confidence level using standard serial correlation analysis.

(F)     All costs associated with the machines, to include upgrades or retrofits, in order for such machines to meet the requirements of the laws and regulations of this State are the responsibility of the machine owner.

Part IV
Multiplayer Unit Requirements

(A)     For purposes of this part, multiplayer units are divided into two general groups:

(1)     units that share some common components (Group I); and

(2)     units that share most components (Group II).

(B)     Group I and Group II units are based on the common principal that they both try to accurately mimic live table play. Both groups may consist of a number of player stations, generally either three or five player units per machine, and some type of dealer display. Both groups of games allow the players to wager on the next hand to be played and the object of the game, and the payout table is based on the player beating the dealer's hand. The player stations and dealer draw from a common deck of cards. Neither of these groups contains any program routines that allow the player or device to gain an unfair advantage or to cheat the device or player.

(C)     Group I and Group II units share common elements. The following define the difference in the two groups of multiplayer units:

(1)     Group I Units: Group I units have individual logic boards containing player station EPROMs and RAM containing all meter and event information for the individual station, as well as master logic boards in the dealer station containing master meters and the random number generation software used commonly by all of the player stations.

(2)     Group II Units: Group II units often do not have any game or logic boards in the individual player stations. The program and game memory are stored in the dealer's station. The player's stations are generally "Dumb Terminals" containing player input buttons and coin or bill acceptors. This group of terminals sends and receives all information directly from the dealer's station. Generally, these stations do not have separate power switches. All electrical leads are fed from the dealer's station to the individual player's station and all game display information is shown on the common video display. The dealer's station controls the operation of the game including the random number generator, all meter information, all display functions, all communications with the central system, all event detection and storage logic, and all processor units and EPROMs used for the game. Individual terminals are not in "direct" communication with the central system, but rather use the dealer's station as a "head of string" device for each of the individual stations. The dealer's station contains all individual station meters as well as master meters for the entire group.

(D)     A multiplayer unit must be handled in one of two ways, depending on whether it is a Group I machine or a Group II machine. Implementation of either method does not require modifications of the communications protocol or operational changes for either the department or the individual locations. Both methods may be handled entirely in the program code of the individual machines.

(1)     Group I unit stations as described above must be wired as if they are separate machines. Each player station must have an optical connection and each station is responsible for its own communications. All meter and event data must be stored on the individual stations and be transmitted to the system on demand. EPROM signature calculations must include the dealer's station code, but each station must perform individual calculations and transmit the results independently of each other. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(2)     Group II games must be set up with a dedicated phone line and location controller in the same manner as every other licensed establishment in the State. The fiber optics must leave the location controller and go directly to the dealer's station and then back to the location controller. All communications must be sent from the central system and the site controller exactly as detailed in the communications protocol. The dealer's station is responsible for handling all of the communications for the player stations. If the system asked for meters for station number one, the dealer's station is responsible for collecting and sending that data to the central system. The central system must behave exactly as if there are five separate machines. EPROM signature calculations must be performed over the dealer's station program code and transmitted back five times just as if there are five machines all running the same game code. All security, accounting, cash ticket, and event reporting functions must be supported in full.

(E)     The department may handle on an individual basis, any type of multiplayer units that does not fit in either category Group I or Group II. Other multiplayer units are required to meet all applicable programming, communications, and security rules and regulations.
SECTION     6.         Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are repealed.
SECTION     7.     (1)     This section may be cited as the "Gambling Cruise Prohibition Act". It is the intent of the General Assembly in enacting this section to reenforce long-standing prohibitions on gambling by reiterating that the gambling offenses provided under the Constitution and laws of this State extend to any United States or foreign documented vessel where voyages begin and end in the waters of this State, consistent with the standards specified in 15 U.S.C. 1175(b)(2)(A), commonly referred to as the Johnson Act Amendments of 1992.
(2)     Chapter 19 of Title 16 of the 1976 Code is amended by adding:

"Section 16-19-170.     (A)     It is unlawful for a person to:

(1)     violate any provision of this chapter or any other provision of the laws or Constitution of this State prohibiting gambling, however described, on a United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity to be conducted, whether within or without the waters of the State;

(2)     manage, supervise, control, operate, or own any United States or foreign documented vessel that embarks from any point within the State, and disembarks at the same or another point within the State, during which time the person intentionally causes or knowingly permits gambling activity which would violate any provision of this chapter or any other provisions of the laws or Constitution of this State prohibiting gambling, however described;

(3)     repair a gambling device on a United States or foreign documented vessel described in item (1) or (2) of this subsection, regardless of the location of the United States or foreign documented vessel when the repairs are made.

(B)     A person who violates any provision of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than five years or fined not more than twenty-five thousand dollars, or both. A violation under this section is a separate offense, and nothing in this section precludes prosecution for any other gambling offense."
(3)     If any provision of this section, including the provisions of Section 16-19-170 of the 1976 Code added by it, or the application of these provisions to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end, the provisions of this section are severable.
SECTION     8.         The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION     9.         Except where otherwise provided, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals to conform.
Amend title to conform.

Rep. DELLENEY explained the amendment.
Rep. HASKINS spoke in favor of the amendment.

Rep. WHATLEY moved to table the amendment.

Rep. MEACHAM demanded the yeas and nays, which were taken, resulting as follows:

Yeas 45; Nays 65

Those who voted in the affirmative are:

Allen                  Askins                 Bailey
Barfield               Breeland               Brown G.
Brown T.               Chellis                Clyburn
Cobb-Hunter            Dantzler               Gourdine
Harrison               Harvin                 Hayes
Hines J.               Hines M.               Howard
Inabinett              Keegan                 Kelley
Kennedy                Knotts                 Law
Lee                    Lloyd                  Mack
Maddox                 McLeod M.              McMahand
Moody-Lawrence         Ott                    Parks
Pinckney               Quinn                  Rhoad
Rutherford             Scott                  Seithel
Smith J.               Stuart                 Whatley
Whipper                Wilkes                 Woodrum

Total--45

Those who voted in the negative are:

Allison                Altman                 Bales
Barrett                Battle                 Beck
Bowers                 Brown H.               Campsen
Carnell                Cato                   Cooper
Cotty                  Davenport              Delleney
Easterday              Edge                   Emory
Fleming                Gamble                 Gilham
Hamilton               Harrell                Harris
Haskins                Hawkins                Jennings
Kirsh                  Klauber                Koon
Lanford                Leach                  Littlejohn
Loftis                 Lourie                 Lucas
Mason                  McCraw                 McGee
McLeod W.              Meacham                Miller
Neal J.M.              Neilson                Phillips
Rice                   Riser                  Robinson
Rodgers                Sandifer               Sharpe
Sheheen                Simrill                Smith D.
Smith R.               Stille                 Taylor
Townsend               Tripp                  Trotter
Vaughn                 Walker                 Wilder
Wilkins                Witherspoon

Total--65

So, the House refused to table the amendment.

Rep. WILKES spoke against the amendment.
Rep. WILKES spoke against the amendment.
Rep. LANFORD spoke in favor of the amendment.
Rep. LANFORD spoke in favor of the amendment.

The question then recurred to the adoption of the amendment.

Rep. KIRSH demanded the yeas and nays, which were taken, resulting as follows:

Yeas 69; Nays 40

Those who voted in the affirmative are:

Allison                Altman                 Bales
Barrett                Battle                 Beck
Bowers                 Brown H.               Campsen
Cato                   Cooper                 Davenport
Delleney               Easterday              Edge
Emory                  Fleming                Gamble
Gilham                 Hamilton               Harrell
Harris                 Harrison               Haskins
Hawkins                Jennings               Kirsh
Klauber                Knotts                 Koon
Lanford                Leach                  Limehouse
Littlejohn             Loftis                 Lourie
Lucas                  Martin                 Mason
McCraw                 McGee                  McLeod W.
Meacham                Miller                 Moody-Lawrence
Neal J.M.              Neilson                Phillips
Quinn                  Rice                   Riser
Robinson               Rodgers                Sandifer
Sheheen                Simrill                Smith D.
Smith J.               Smith R.               Stille
Taylor                 Townsend               Tripp
Trotter                Vaughn                 Walker
Wilder                 Wilkins                Witherspoon

Total--69

Those who voted in the negative are:

Allen                  Askins                 Bailey
Barfield               Breeland               Brown G.
Brown T.               Chellis                Clyburn
Cobb-Hunter            Cotty                  Dantzler
Gourdine               Harvin                 Hayes
Hines J.               Hines M.               Hinson
Howard                 Inabinett              Keegan
Kelley                 Kennedy                Law
Lee                    Lloyd                  Mack
Maddox                 McLeod M.              Ott
Parks                  Rhoad                  Rutherford
Scott                  Seithel                Stuart
Whatley                Whipper                Wilkes
Woodrum

Total--40

So, the amendment was adopted.

Rep. EDGE moved that the House do now adjourn.

Rep. SIMRILL demanded the yeas and nays, which were taken, resulting as follows:

Yeas 8; Nays 92

Those who voted in the affirmative are:

Edge                   Hines M.               Jennings
Littlejohn             Lloyd                  McMahand
Parks                  Wilkes

Total--8

Those who voted in the negative are:

Allen                  Allison                Altman
Askins                 Bales                  Barfield
Barrett                Beck                   Bowers
Breeland               Brown G.               Brown H.
Campsen                Cato                   Chellis
Clyburn                Cobb-Hunter            Cotty
Davenport              Delleney               Easterday
Emory                  Gamble                 Gilham
Govan                  Hamilton               Harrell
Harris                 Harrison               Harvin
Haskins                Hawkins                Hayes
Hinson                 Howard                 Keegan
Kelley                 Kennedy                Kirsh
Klauber                Knotts                 Koon
Lanford                Law                    Leach
Lee                    Limehouse              Loftis
Lourie                 Lucas                  Mack
Maddox                 Martin                 Mason
McCraw                 McGee                  McLeod M.
McLeod W.              Meacham                Miller
Moody-Lawrence         Neal J.M.              Neilson
Ott                    Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Rutherford             Sandifer
Scott                  Seithel                Sharpe
Sheheen                Simrill                Smith J.
Smith R.               Stille                 Stuart
Taylor                 Townsend               Trotter
Vaughn                 Walker                 Whatley
Whipper                Wilder                 Wilkins
Witherspoon            Woodrum

Total--92

So, the House refused to adjourn.

Reps. HASKINS, WILKINS and SANDIFER proposed the following Amendment No. 20A (Doc Name KGH\AMEND\15710HTC99), which was adopted.
Amend the bill, as and if amended, by designating SECTIONS 1 through 6 as Part A, SECTION 7 as Part B, and SECTION 8 as Part C.
Amend further, as and if amended, by inserting after Part C:

/ Part D

Referendum and Effective Dates

SECTION     9A.     (1)     A statewide referendum must be conducted November 2, 1999, to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission shall place the exact question contained in item (2) of this subsection on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.

(2)     The question put before the qualified electors in the referendum shall read:

"Shall cash payoffs for credits earned on video game machines continue to be allowed after June 30, 2000?

Yes     []
No     []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

(3)     In addition to all license taxes and fees imposed by the State on video games with a free play feature pursuant to Section 12-21-2720(A)(3) of the 1976 Code or Chapter 22, Title 12 of the 1976 Code imposing such licenses and fees, there is imposed a one-time surcharge license fee of fifty dollars for each such licensed machine due and payable to the Department of Revenue on or before August 1, 1999. Failure to remit the surcharge in a timely manner is deemed failure to pay the license tax imposed pursuant to Section 12-21-2720(A)(3) or Chapter 22 of Title 12 of the 1976 Code. The revenues of this fee are appropriated to the State Election Commission to defray the expenses of the statewide referendum required by this act.
B.     Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:

"Section 12-21-2710.         It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
C.     Section 12-21-2712 of the 1976 Code is amended to read:

"Section 12-21-2712.         Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."
D.     (1)     Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:

"(3)     a machine of the nonpayout type, or 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."

(2)     Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"(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)."

(3)     Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F), which read:

"(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."
E.     Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 12-21-2726.         Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, each machine licensed pursuant to this section must be operated in a stand-alone fashion and may not be linked in any way to another coin-operated machine or device."
F.     Section 16-19-40 of the 1976 Code is amended to read:

"Section 16-19-40.     If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts, or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts, or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of be fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place, or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
G.     Section 16-19-50 of the 1976 Code is amended to read:

"Section 16-19-50.     Any person who shall set up, keep, or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts, and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."
H.     Section 12-21-2703 and 16-19-60 and Article 20, Chapter 21 and 22 of Title 12, all of the 1976 Code, are repealed.
I.     Except where otherwise stated, Parts A, B, and C of this act take effect upon approval by the Governor. Subsections B, C, D, E, F, G, and H of this section take effect July 1, 2000, but only if a majority "no" vote is certified pursuant to the referendum held pursuant to subsection A of this section. When Chapter 22 of Title 12 of the 1976 Code as added by Part A of this act takes effect, the provisions of Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are suspended from the effective date of the new chapter until subsection H of this section is effective. If a majority 'yes' vote is certified, then subsections (B) through (H) do not take effect and Articles 19 and 20, Chapter 21 of Title 12 of the 1976 Code are repealed on that certification date. /
Renumber sections to conform.
Amend totals and title to conform.

Rep. HASKINS explained the amendment.
Rep. HASKINS spoke in favor of the amendment.
Rep. COBB-HUNTER spoke against the amendment.
Rep. COTTY spoke in favor of the amendment.

ACTING SPEAKER CATO IN CHAIR

Rep. WILKINS spoke in favor of the amendment.

Rep. BALES moved to table the amendment.

Rep. MEACHAM demanded the yeas and nays, which were taken, resulting as follows:

Yeas 35; Nays 77

Those who voted in the affirmative are:

Allen                  Bailey                 Bales
Bowers                 Breeland               Brown T.
Clyburn                Cobb-Hunter            Dantzler
Gourdine               Govan                  Harvin
Hayes                  Hines J.               Howard
Inabinett              Jennings               Kelley
Kennedy                Kirsh                  Lee
Lloyd                  Mack                   Maddox
McLeod W.              Miller                 Moody-Lawrence
Parks                  Pinckney               Rhoad
Rutherford             Scott                  Stille
Whipper                Wilder

Total--35

Those who voted in the negative are:

Allison                Altman                 Askins
Barfield               Barrett                Battle
Beck                   Brown G.               Brown H.
Campsen                Cato                   Chellis
Cooper                 Cotty                  Davenport
Delleney               Easterday              Edge
Emory                  Fleming                Gamble
Gilham                 Hamilton               Harrell
Harris                 Harrison               Haskins
Hawkins                Hines M.               Hinson
Keegan                 Klauber                Knotts
Koon                   Lanford                Law
Leach                  Limehouse              Littlejohn
Loftis                 Lourie                 Lucas
Martin                 Mason                  McCraw
McGee                  McLeod M.              Meacham
Neal J.M.              Neilson                Ott
Phillips               Quinn                  Rice
Riser                  Robinson               Rodgers
Sandifer               Seithel                Sharpe
Sheheen                Simrill                Smith D.
Smith J.               Smith R.               Stuart
Taylor                 Townsend               Tripp
Trotter                Vaughn                 Walker
Whatley                Wilkes                 Wilkins
Witherspoon            Woodrum

Total--77

So, the House refused to table the amendment.

The question then recurred to the adoption of the amendment, which was agreed to.

SPEAKER IN CHAIR

Rep. COBB-HUNTER proposed the following Amendment No. 23A (Doc Name KGH\AMEND\15706HTC99), which was tabled.
Amend the bill, as and if amended, by adding a new SECTION appropriately numbered to read:
/ SECTION     ____A.     (1)     A statewide referendum must be conducted at the time of the general election of 2000 to ascertain whether or not video game machine payouts will continue to be allowed in this State. The State Election Commission shall place the exact question contained in item (2) of this subsection on the referendum ballot. The state election laws shall apply to the referendum, mutatis mutandis. The State Board of Canvassers shall publish the results of the referendum and certify them to the Secretary of State, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Code Commissioner.

(2)     The question put before the qualified electors in the referendum shall read:

"Shall cash payoffs for credits earned on video game machines continue to be allowed after December 31, 2000?

Yes     []
No     []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
B.     Section 12-21-2710 of the 1976 Code, as amended by Act 155 of 1997, is further amended to read:

"Section 12-21-2710.         It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, or any video game machine with a free play feature operated by a slot in which is deposited a coin or thing of value, or other device operated by a slot in which is deposited a coin or thing of value for the play of poker, blackjack, keno, lotto, bingo, or craps, or any machine or device licensed pursuant to Section 12-21-2720 and used for gambling or any punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.

Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."
C.     Section 12-21-2712 of the 1976 Code is amended to read:

"Section 12-21-2712.     Any vending or slot machine, punch board, or other device pertaining to games of chance prohibited by Section 12-21-2710 must be seized by any officer of the law law enforcement officer and at once taken before any magistrate of the county in which the machine, board, or device is seized who shall immediately examine it, and if he is satisfied that it is in violation of Section 12-21-2710 or any other law of this State, he shall direct that it be immediately destroyed."
D.     (1)     Section 12-21-2720(A)(3) of the 1976 Code, as last amended by Section 148, Act 181 of 1993, is further amended to read:

"(3)     a machine of the nonpayout type, or 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."

(2)     Section 12-21-2720(C) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"(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)."

(3)     Section 12-21-2720 of the 1976 Code, as last amended by Act 155 of 1997, is further amended by deleting subsections (E) and (F), which read:

"(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."
E.     Section 12-21-2726 of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"Section 12-21-2726.         Every person who maintains for use or permits the use of, on a place or premises occupied by him, a machine subject to the license imposed by this article by way of proof of licensing must have a current license displayed conspicuously on the front of the machine. Except for the provisions of Sections 12-21-2774 and 12-21-2776, each machine licensed pursuant to this section must be operated in a stand-alone fashion and may not be linked in any way to another coin-operated machine or device."
F.     Section 16-19-40 of the 1976 Code is amended to read:

"Section 16-19-40.     If any person shall play at any tavern, inn, store for the retailing of spirituous liquors or in any house used as a place of gaming, barn, kitchen, stable or other outhouse, street, highway, open wood, race field or open place at (a) any game with cards or dice, (b) any gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (c) any roley-poley table, (d) rouge et noir, (e) any faro bank or (f) any other table or bank of the same or the like kind under any denomination whatsoever or (g) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes, except the games of billiards, bowls, backgammon, chess, draughts, or whist when there is no betting on any such game of billiards, bowls, backgammon, chess, draughts, or whist or shall bet on the sides or hands of such as do game, upon being convicted thereof, before any magistrate, shall be imprisoned for a period of not over thirty days or shall suffer a fine of fined not over one hundred dollars, and every person so keeping such tavern, inn, retail store, public place, or house used as a place for gaming or such other house shall, upon being convicted thereof, upon indictment, be imprisoned for a period not exceeding twelve months and forfeit a sum not exceeding two thousand dollars, for each and every offense."
G.     Section 16-19-50 of the 1976 Code is amended to read:

"Section 16-19-50.     Any person who shall set up, keep, or use any (a) gaming table, commonly called A, B, C, or E, O, or any gaming table known or distinguished by any other letters or by any figures, (b) roley-poley table, (c) table to play at rouge et noir, (d) faro bank or (e) any other gaming table or bank of the like kind or of any other kind for the purpose of gaming, or (f) any machine or device licensed pursuant to Section 12-21-2720 and used for gambling purposes except the games of billiards, bowls, chess, draughts, and backgammon, upon being convicted thereof, upon indictment, shall forfeit a sum not exceeding five hundred dollars and not less than two hundred dollars."
H.     Section 12-21-2703 and 16-19-60 and Articles 20 and 22, Chapter 21 of Title 12, all of the 1976 Code, are repealed.
I.     Notwithstanding any other effective date or repealers provided in this act, subsection A of this section takes effect upon approval by the Governor. Subsections B, C, D, E, F, G, and H take effect January 1, 2001, but only if a majority "no" vote is certified pursuant to the referendum held pursuant to subsection A of this section. When Chapter 22 of Title 12 of the 1976 Code as added by this act takes effect, the provisions of Articles 19 and 20, Chapter 21, Title 12 of the 1976 Code are suspended from the effective date of the new chapter until subsection H of this section is effective. If a majority 'yes' vote is certified, then subsections (B) through (H) do not take effect and Articles 19 and 20, Chapter 21 of Title 12 of the 1976 Code are repealed on that certification date. /
Renumber sections to conform.
Amend totals and title to conform.

Rep. COBB-HUNTER explained the amendment.
Rep. LOURIE spoke in favor of the amendment.

Rep. ALTMAN moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:

Yeas 58; Nays 56

Those who voted in the affirmative are:

Allison                Altman                 Barfield
Barrett                Beck                   Brown H.
Campsen                Cato                   Chellis
Cooper                 Cotty                  Davenport
Easterday              Edge                   Fleming
Gilham                 Hamilton               Harrell
Harrison               Haskins                Hawkins
Hinson                 Keegan                 Kelley
Klauber                Koon                   Lanford
Law                    Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Martin                 Mason                  McGee
Meacham                Quinn                  Rice
Riser                  Robinson               Rodgers
Sandifer               Sharpe                 Simrill
Smith D.               Smith R.               Stille
Stuart                 Taylor                 Townsend
Tripp                  Trotter                Vaughn
Walker                 Wilkins                Witherspoon
Woodrum

Total--58

Those who voted in the negative are:

Allen                  Askins                 Bailey
Bales                  Battle                 Bowers
Breeland               Brown G.               Brown J.
Brown T.               Clyburn                Cobb-Hunter
Dantzler               Delleney               Emory
Gamble                 Gourdine               Govan
Harris                 Harvin                 Hayes
Hines J.               Hines M.               Howard
Inabinett              Jennings               Kennedy
Kirsh                  Knotts                 Lee
Lloyd                  Lourie                 Mack
Maddox                 McCraw                 McLeod M.
McLeod W.              Miller                 Moody-Lawrence
Neal                   Neal J.M.              Neilson
Ott                    Parks                  Phillips
Pinckney               Rhoad                  Rutherford
Scott                  Seithel                Sheheen
Smith J.               Whatley                Whipper
Wilder                 Wilkes

Total--56

So, the amendment was tabled.

AMENDMENT NO. 23A -- MOTION TO RECONSIDER REJECTED

Rep. DAVENPORT moved to reconsider the vote whereby Amendment No. 23A was tabled.

Rep. FLEMING moved to table the motion to reconsider.

Rep. COBB-HUNTER demanded the yeas and nays, which were taken, resulting as follows:

Yeas 54; Nays 57

Those who voted in the affirmative are:

Allison                Altman                 Barfield
Barrett                Beck                   Brown H.
Campsen                Cato                   Chellis
Cotty                  Davenport              Delleney
Easterday              Edge                   Fleming
Gilham                 Hamilton               Harrell
Harrison               Haskins                Hawkins
Keegan                 Klauber                Koon
Lanford                Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Martin                 Mason                  McCraw
Meacham                Quinn                  Rice
Riser                  Robinson               Rodgers
Sandifer               Sharpe                 Simrill
Smith D.               Smith R.               Stille
Taylor                 Townsend               Tripp
Trotter                Vaughn                 Walker
Wilkins                Witherspoon            Woodrum

Total--54

Those who voted in the negative are:

Allen                  Askins                 Bailey
Bales                  Battle                 Bowers
Breeland               Brown G.               Brown J.
Brown T.               Clyburn                Cobb-Hunter
Dantzler               Emory                  Gamble
Gourdine               Govan                  Harris
Harvin                 Hayes                  Hines J.
Hines M.               Hinson                 Howard
Inabinett              Jennings               Kennedy
Kirsh                  Knotts                 Law
Lee                    Lloyd                  Lourie
Mack                   Maddox                 McLeod M.
McLeod W.              Miller                 Moody-Lawrence
Neal                   Neal J.M.              Neilson
Ott                    Parks                  Phillips
Pinckney               Rhoad                  Rutherford
Scott                  Seithel                Sheheen
Smith J.               Stuart                 Whatley
Whipper                Wilder                 Wilkes

Total--57

So, the House refused to table the motion to reconsider.

SPEAKER PRO TEMPORE IN CHAIR

Rep. RICE moved to adjourn debate on the motion to reconsider.

Rep. COBB-HUNTER moved to table the motion to adjourn debate on the motion to reconsider.

Rep. FLEMING demanded the yeas and nays, which were taken, resulting as follows:

Yeas 58; Nays 55

Those who voted in the affirmative are:

Allen                  Askins                 Bailey
Bales                  Battle                 Bowers
Breeland               Brown G.               Brown J.
Brown T.               Clyburn                Cobb-Hunter
Dantzler               Emory                  Gamble
Gourdine               Govan                  Harris
Harvin                 Hayes                  Hines J.
Hines M.               Hinson                 Howard
Inabinett              Jennings               Kelley
Kennedy                Kirsh                  Knotts
Law                    Lee                    Lloyd
Lourie                 Mack                   Maddox
McLeod M.              McLeod W.              Miller
Moody-Lawrence         Neal                   Neal J.M.
Neilson                Ott                    Parks
Phillips               Pinckney               Rhoad
Rutherford             Scott                  Seithel
Sheheen                Smith J.               Stuart
Whatley                Whipper                Wilder
Wilkes

Total--58

Those who voted in the negative are:

Allison                Altman                 Barfield
Barrett                Beck                   Brown H.
Campsen                Cato                   Chellis
Cotty                  Davenport              Delleney
Easterday              Edge                   Fleming
Gilham                 Hamilton               Harrell
Harrison               Haskins                Hawkins
Keegan                 Klauber                Koon
Lanford                Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Martin                 Mason                  McCraw
McGee                  Meacham                Quinn
Rice                   Riser                  Robinson
Rodgers                Sandifer               Sharpe
Simrill                Smith D.               Smith R.
Stille                 Taylor                 Townsend
Tripp                  Trotter                Vaughn
Walker                 Wilkins                Witherspoon
Woodrum

Total--55

So, the motion to adjourn debate on the motion to reconsider was tabled.

The question then recurred to the motion to reconsider the vote whereby Amendment No. 23A was tabled.

Rep. WILKINS demanded the yeas and nays, which were taken, resulting as follows:

Yeas 53; Nays 59

Those who voted in the affirmative are:

Allen                  Askins                 Bailey
Bales                  Battle                 Bowers
Breeland               Brown G.               Brown J.
Brown T.               Clyburn                Cobb-Hunter
Dantzler               Emory                  Gamble
Gourdine               Govan                  Harris
Harvin                 Hayes                  Hines J.
Hines M.               Howard                 Inabinett
Jennings               Kennedy                Kirsh
Lee                    Lloyd                  Lourie
Mack                   Maddox                 McLeod M.
McLeod W.              Miller                 Moody-Lawrence
Neal                   Neal J.M.              Neilson
Ott                    Parks                  Phillips
Pinckney               Rhoad                  Rutherford
Scott                  Seithel                Sheheen
Smith J.               Stuart                 Whipper
Wilder                 Wilkes

Total--53

Those who voted in the negative are:

Allison                Altman                 Barfield
Barrett                Beck                   Brown H.
Campsen                Cato                   Chellis
Cooper                 Cotty                  Davenport
Delleney               Easterday              Edge
Fleming                Gilham                 Hamilton
Harrell                Haskins                Hawkins
Hinson                 Keegan                 Klauber
Knotts                 Koon                   Lanford
Law                    Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Martin                 Mason                  McCraw
McGee                  Meacham                Quinn
Rice                   Riser                  Robinson
Rodgers                Sandifer               Sharpe
Simrill                Smith D.               Smith R.
Stille                 Taylor                 Townsend
Tripp                  Trotter                Vaughn
Walker                 Whatley                Wilkins
Witherspoon            Woodrum

Total--59

So, the motion to reconsider was rejected.

Rep. MEACHAM moved that the House do now adjourn.

Rep. BAILEY demanded the yeas and nays, which were taken, resulting as follows:

Yeas 72; Nays 39

Those who voted in the affirmative are:

Allison                Altman                 Askins
Bailey                 Barfield               Beck
Breeland               Brown G.               Brown J.
Campsen                Cato                   Chellis
Clyburn                Cobb-Hunter            Cotty
Dantzler               Easterday              Edge
Emory                  Fleming                Gilham
Gourdine               Govan                  Hamilton
Harrell                Harrison               Harvin
Haskins                Hawkins                Hines J.
Hines M.               Howard                 Jennings
Kelley                 Kennedy                Kirsh
Klauber                Knotts                 Lanford
Leach                  Lee                    Limehouse
Littlejohn             Lloyd                  Lucas
Mack                   Maddox                 Martin
Mason                  McGee                  McMahand
Meacham                Neal J.M.              Neilson
Ott                    Parks                  Phillips
Pinckney               Rhoad                  Rodgers
Rutherford             Scott                  Simrill
Smith D.               Smith J.               Smith R.
Stille                 Townsend               Tripp
Vaughn                 Witherspoon            Woodrum

Total--72

Those who voted in the negative are:

Allen                  Bales                  Barrett
Battle                 Bowers                 Brown H.
Brown T.               Cooper                 Davenport
Delleney               Gamble                 Harris
Hayes                  Hinson                 Inabinett
Keegan                 Koon                   Law
Loftis                 Lourie                 McCraw
McLeod W.              Miller                 Moody-Lawrence
Neal                   Quinn                  Rice
Riser                  Robinson               Sandifer
Seithel                Sheheen                Stuart
Taylor                 Trotter                Walker
Whatley                Wilder                 Wilkes

Total--39

So, the motion to adjourn was agreed to.

Further proceedings were interrupted by adjournment, the pending question being consideration of amendments.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4079 (Word version) -- Reps. Neilson, Lucas and J. Hines: A CONCURRENT RESOLUTION CONGRATULATING SONOCO PRODUCTS COMPANY OF HARTSVILLE, IN DARLINGTON COUNTY, ON THE OCCASION OF THE ONE HUNDREDTH ANNIVERSARY OF THE FOUNDING OF THE COMPANY AND EXPRESSING TO ITS FOUNDING FAMILY, MANAGERS, AND EMPLOYEES THE APPRECIATION OF ALL SOUTH CAROLINIANS TO THIS GLOBAL PACKAGING COMPANY FOUNDED AND BASED IN HARTSVILLE FOR THE IMMEASURABLE CONTRIBUTIONS TO THE DEVELOPMENT OF THE ECONOMY OF THIS STATE AND ON BEHALF OF ALL SOUTH CAROLINIANS WISHING CONTINUED SUCCESS FOR THIS PIONEER COMPANY THAT HAS DONE SO MUCH FOR THIS STATE AND ITS PEOPLE.

H. 4091 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO COMMEND AND CONGRATULATE MR. WILLIE GREEN, JR., OF RICHLAND COUNTY ON THE OCCASION OF HIS RETIREMENT AS SINGLE FAMILY PROGRAM DIRECTOR FOR THE UNITED STATES DEPARTMENT OF AGRICULTURE'S FARMERS HOME ADMINISTRATION.

H. 4092 (Word version) -- Reps. J. Smith and Lourie: A CONCURRENT RESOLUTION RECOGNIZING THE LIFE AND GOOD WORKS OF JOHN BERNARDIN, SR., OF COLUMBIA AND EXPRESSING THE APPRECIATION AND RESPECT OF THE GENERAL ASSEMBLY FOR THE CONTRIBUTIONS HE MADE TO THE MIDLANDS COMMUNITY, ESPECIALLY ITS MOST FRAGILE SECTOR, ITS NEEDY CHILDREN, DURING HIS LIFETIME.

H. 4101 (Word version) -- Rep. W. McLeod: A CONCURRENT RESOLUTION TO CONGRATULATE THE NEWBERRY COLLEGE INDIANS BASEBALL TEAM FOR WINNING THE 1999 SOUTH ATLANTIC CONFERENCE BASEBALL CHAMPIONSHIP AND TO COMMEND THE TEAM FOR ITS OUTSTANDING SEASON.

ADJOURNMENT

At 1:12 P.M. the House in accordance with the motion of Rep. LUCAS adjourned in memory of Bob Bass, former mayor of Hartsville, to meet at 10:00 A.M. tomorrow.

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