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.)

AMENDED

March 3, 1999

H. 3626

Introduced by Ways and Means Committee

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

Read the first time March 2, 1999.

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.

Amend Title To Conform

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 $300,000,000 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 and any person having a financial interest in the business;

(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, including, but not limited to, criteria by which licenses will be denied or revoked on the basis of information obtained in background checks as provided in Item (1);

(6) no person under the age of twenty-one is allowed to play the machines or receive any compensation or pay-out from the machines.

(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.

(C) the Dept of Revenue is directed to implement not later than May 31, 1999 the monitoring requirements for video games with a free play feature.

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

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