South Carolina General Assembly
113th Session, 1999-2000

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Bill 3626

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

INTRODUCED

March 2, 1999

H. 3626

Introduced by Ways and Means Committee

S. Printed 3/2/99--H.

Read the first time March 2, 1999.

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT1

This resolution will have no impact on state or local revenue.

Explanation

This resolution directs the Department of Revenue (DOR) to make a recommendation for the imposition of a tax rate and develop regulations to impose fees on video poker machines or on the owners, distributors and operators of video poker machines. The tax or fees imposed by these regulations would be in addition to the license fees currently charged. The resolution requires that the proposed regulations and the fees currently imposed must generate, in total, at least $200,000,000 annually. There will, however, be no impact on revenues prior to the recommendation by the DOR.

Approved By:

William C. Gillespie

Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.

A JOINT RESOLUTION

TO DIRECT THE DEPARTMENT OF REVENUE TO PROMULGATE STRICT AND COMPREHENSIVE REGULATIONS NECESSARY TO REGULATE THE OPERATION OF VIDEO GAME MACHINES WITH A FREE PLAY FEATURE INCLUDING A RECOMMENDATION FOR THE IMPOSITION OF A TAX RATE AND REGULATIONS TO IMPOSE FEES ON SUCH MACHINES OR ON THE OWNERS, DISTRIBUTORS, OR OPERATORS THEREOF IN AN AMOUNT NECESSARY TO GENERATE REVENUE IN THE AGGREGATE OF AT LEAST TWO HUNDRED MILLION DOLLARS ANNUALLY, AND TO PROVIDE FOR THE PROCEDURES UNDER WHICH THE REGULATIONS MUST BE PROMULGATED INCLUDING A PROVISION THAT THEY MUST BE SUBMITTED TO THE GENERAL ASSEMBLY BY APRIL 1, 1999, AND ARE DEEMED APPROVED ON JUNE 3, 1999, IF THE GENERAL ASSEMBLY HAS NOT ENACTED A JOINT RESOLUTION PRIOR TO THIS DATE APPROVING OR DISAPPROVING SUCH REGULATIONS.

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

SECTION 1. (A) Notwithstanding any other provision of law, the Department of Revenue is directed to promulgate strict and comprehensive regulations necessary to regulate the operation of video game machines with a free play feature licensed pursuant to Section 12-21-2720(A)(3) of the 1976 Code including a recommendation for the imposition of a tax rate and regulations to impose fees on such machines or on the owners, distributors, and operators thereof in an amount necessary to generate, in addition to those fees and taxes already provided by law, revenue in the aggregate of at least two hundred million dollars annually. These regulations must include, but are not limited to, the following:

(1) a requirement for background checks for video gaming industry employees, owners, distributors, and operators;

(2) a requirement for a minimum payout percentage for such machines as a function of the amount of money inserted into the machine;

(3) limitations on video gaming industry advertising of whatever form;

(4) a requirement for the electronic collection of the taxes so generated;

(5) any other regulations the department deems necessary for the proper regulation, supervision, and taxation of the video gaming industry.

(B) Notwithstanding the provisions of the Administrative Procedures Act, the following procedures apply with regard to the promulgation of the regulations required by subsection (A). The drafting notice and public notice requirements of the Administrative Procedures Act are waived and the department is directed to promulgate these regulations and submit them to the General Assembly for approval on or before April 1, 1999. If a committee to which the regulations are assigned determines that any changes are necessary in these regulations, the department must withdraw and resubmit the amended regulations within twenty days. These regulations are deemed to be approved on June 3, 1999, unless the General Assembly enacts a Joint Resolution approving these regulations at an earlier date or a Joint Resolution disapproving these regulations is introduced in the General Assembly on or before June 3, 1999, by the committee to which the regulations are assigned. In promulgating these regulations the department shall stipulate that these regulations shall have an effective date of July 1, 1999. All other provisions of the Administrative Procedures Act shall apply to the promulgation of these regulations mutatis mutandis.

SECTION 2. This joint resolution takes effect upon approval by the Governor.

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