South Carolina General Assembly
113th Session, 1999-2000

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Bill 3951

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COMMITTEE REPORT

April 22, 1999

H. 3951

Introduced by Reps. Harris, Jennings, Carnell, H. Brown and Law

S. Printed 4/22/99--H.

Read the first time April 20, 1999.

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 3951), to amend Section 61-4-580, as amended, Code of Laws of South Carolina, 1976, relating to prohibited acts in an establishment licensed to sell beer or wine, etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass:

HENRY E. BROWN, JR., for Committee.

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT1

This bill would have no impact on state or local revenues in FY 1999-00.

Explanation

This bill will exempt certain gaming promotions, contests, or sweepstakes from those games of chance otherwise prohibited in an establishment licensed to sell beer or wine in this State. In order to be exempt, these games of chance must be conducted in connection with the sale or promotion of a consumer product or service in which no entry fee or purchase is required of a participant and this no fee or purchase requirement is clearly disclosed. Such activities would include prize promotions at grocers and convenience stores. Since no financial consideration is required to enter, these games of chance do not constitute a lottery under current statutes. Since the bill does not change any existing fee or license, it is not expected to have an impact on state or local revenues.

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 BILL

TO AMEND SECTION 61-4-580, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROHIBITED ACTS IN AN ESTABLISHMENT LICENSED TO SELL BEER OR WINE, SO AS TO EXEMPT FROM THE PROHIBITION ON GAMBLING OR GAMES OF CHANCE PROMOTIONAL GAMES CONDUCTED IN CONNECTION WITH THE SALE OR PROMOTION OF A CONSUMER PRODUCT OR SERVICE IN WHICH NO ENTRY FEE OR PURCHASE IS REQUIRED OF A PARTICIPANT AND THIS NO FEE OR PURCHASE REQUIREMENT IS CLEARLY DISCLOSED.

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

SECTION 1. 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; except game promotions including contests, games of chance, or sweepstakes in which the elements of chance and prize are present and which comply with the following:

(a) the game promotion is conducted or offered in connection with the sale, promotion, or advertisement of a consumer product or service, or to enhance the brand or image of a supplier of consumer products or services;

(b) no purchase payment, entry fee, or proof of purchase is required as a condition of entering the game promotion or receiving a prize; and

(c) all materials advertising the game promotion clearly disclose that no purchase or payment is necessary to enter and provide details on the free method of participation."

SECTION 2. This act takes effect upon approval by the Governor.

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