South Carolina General Assembly
115th Session, 2003-2004

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Bill 3986

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

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COMMITTEE REPORT

April 23, 2003

H. 3986

Introduced by Rep. Cooper

S. Printed 4/23/03--H.

Read the first time April 9, 2003.

            

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 3986) to amend the Code of Laws of South Carolina, 1976, by adding Sections 12-21-4007 and 12-21-4009 so as to add specifications for a site system and electronic bingo dabber, etc., respectfully

REPORT:

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

Amend the bill, as and if amended, Section 12-21-4007(A)(2)(i), SECTION 1, page 3, by striking subitem (i) in its entirety and inserting:

/     (i)     must not be a video lottery machine, or be used in any other capacity as a video gaming machine as prohibited by Sections 12-21-2710, 16-19-40, and 16-19-50. No game other than bingo, such as puzzles, solitaire, poker, blackjack, may be played using an electronic dabber. /

Amend further, Section 12-21-4009, SECTION 1, page 3, by inserting after / play / on line 40 / in the location licensed for bingo play pursuant to law /.

When amended Section 12-21-4009 reads:

/ Section 12-21-4009.    The use of an electronic or mechanical device designed for a bingo game authorized pursuant to this chapter must be limited to a bingo promoter and the promoter's employees or any other person authorized by law to conduct bingo only in order to facilitate bingo play in the location licensed for bingo play pursuant to law, and this machine must not dispense as a prize coins or currency. The operation of the bingo games excludes machines and lottery games, including video poker lottery games, prohibited by Sections 12-21-2710, 16-19-40, and 16-19-50. /

Amend further, Section 12-21-4120, SECTION 7, page 6, by inserting after the period on line 13 a new sentence to read:

/ A response or any failure to respond is not grounds for estoppel nor does it grant any rights to the organization or promoter seeking a clarification. /

When amended the section reads:

/ "Section 12-21-4120.    Any An organization or a promoter seeking clarification on the play of or operation of a bingo game shall submit to the department's bingo regulatory section a written request seeking a determination as to whether or not a certain or specific action constitutes a violation. A conference may be requested upon the receipt of the clarification request. The department shall respond, in writing, to the party requesting the clarification, citing specific statutes which disqualify an action and, when applicable, citing actions that are authorized pursuant to the laws of this State. A response or any failure to respond is not grounds for estoppel nor does it grant any rights to the organization or promoter seeking a clarification. Any An organization or a promoter found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request." /

Amend further by adding appropriately numbered SECTIONS to read:

/ SECTION __.    Section 12-21-3940 of the 1976 Code is amended by adding a new subsection to read:

"(D)    A license must not be issued for conducting a game of bingo at an establishment holding a license pursuant to the provisions of Section 61-6-1820."

SECTION    __.    Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-4011.    Notwithstanding any provision of law, federally-recognized Indian tribes authorized to conduct bingo games in South Carolina may use hardwire technology for bingo play. Nothing in this section may be construed to allow video poker play and the prohibitions regarding video poker in Sections 12-21-2710, 16-19-40, and 16-19-50 apply." /

Renumber sections to conform.

Amend title to conform.

ROBERT W. HARRELL, JR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill is expected to have no impact on general fund revenue in FY 2003-04.

Explanation

This bill revises various provisions for bingo gaming. It adds new language in Section 6 to change the way the $8,000 cap on prizes per session for Class B games is measured. This change would allow payoffs for a session to exceed the $8,000 maximum, so long as the total distribution in a quarter does not exceed the $480,000 maximum.

Since this bill would only change the method of computing the cap and not the fees, the BEA expects adoption of this bill would have no impact on general fund revenue in FY 2003-04.

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 THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-21-4007 AND 12-21-4009 SO AS TO ADD SPECIFICATIONS FOR A SITE SYSTEM AND ELECTRONIC BINGO DABBER AND PROVIDE FOR THE LIMITED USE OF AN ELECTRONIC OR MECHANICAL DEVICE DESIGNED FOR A BINGO GAME; TO AMEND SECTION 12-21-3920, AS AMENDED, RELATING TO DEFINITIONS USED IN CONNECTION WITH PLAYING BINGO, SO AS TO CHANGE THE DEFINITION OF "CARD" TO COMPLY WITH PROVISIONS WHEN AN ELECTRONIC DABBER IS USED; TO AMEND SECTION 12-21-3990, AS AMENDED, RELATING TO THE MANNER OF PLAYING BINGO, SO AS TO CHANGE THE TIME THE AMOUNT OF THE PRIZE MUST BE ANNOUNCED AND THE AMOUNT OF THE PRIZE; TO AMEND SECTION 12-21-4000, AS AMENDED, RELATING TO BINGO PROCEDURES AND THE VARIOUS CLASSES OF A BINGO LICENSE, SO AS TO CLARIFY ON WHICH BASIS THE AMOUNT OF THE PRIZE IS CALCULATED AND PROVIDE FOR THE REGULATION OF PROMOTIONS CONDUCTED DURING A BINGO SESSION; AND TO AMEND SECTIONS 12-21-4020 AND 12-21-4120, BOTH AS AMENDED, RELATING TO THE RIGHT TO A CONFERENCE FOLLOWING A VIOLATION, SO AS TO REQUIRE THE DEPARTMENT OF REVENUE TO RESPOND IN WRITING AND SPECIFY WHAT INFORMATION MUST BE INCLUDED IN THE RESPONSE.

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

SECTION    1.    Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-4007.    (A)    A site system and an electronic dabber must meet the following specifications:

(1)    A site system must:

(a)    record a nonresetable electronic consecutive six digit receipt number for each transaction;

(b)    issue a player a receipt for each transaction containing the:

(i)     name of a site or organization;

(ii)     date and time of transaction;

(iii)     number of electronic bingo card images downloaded or activated;

(iv)     selling price of a card or package, gross proceeds, and receipt number; and

(v)     serial number of device issued to a player;

(c)    print a summary report for each session containing:

(i)     the date and time of the report;

(ii)    the name of site;

(iii)    the date of the session;

(iv)        the sequential session number;

(v)        the number of transactions;

(vi)        the number of voided transactions;

(vii)    the number of electronic bingo card images downloaded or activated;

(viii)    the number of devices used;

(ix)        the total gross proceeds; and

(x)     any other information required by the department.

(2)    An electronic dabber:

(a)    must be a portable hand-held unit and must not be wired directly to a site system;

(b)    must be used in conjunction with a bingo ticket purchased from the house which entitles the player to mark his cards electronically rather than using paper cards and marking them manually;

(c)    must have no more than one hundred eighty faces to be played on each game when used in a class 'B' game and no more than three hundred faces to be played on each game when used in a class 'AA' game;

(d)    must require a player to manually enter each bingo number called;

(e)    must display a player's best card or a winning card and alert only that player through an audio or video method, or both, that the player has a winning card;

(f)    must erase automatically all stored cards at the end of the last game of a session or when the device is turned off;

(g)    must be downloaded or activated with new cards at the beginning of each session;

(h)    must be used only for one unit for each player, at any time during the bingo session. A player may purchase additional cards to be marked manually, but not for use with an electronic dabber; and

(i)     must not be a video lottery machine, or be used in any other capacity as a video gaming machine. No game other than bingo, such as puzzles, solitaire, poker, blackjack, may be played using an electronic dabber.

(B)    The department's representatives may examine and inspect any site system or electronic dabber related equipment. The examination and inspection must include immediate access to the electronic dabber and unlimited inspection of all parts, equipment, and associated systems.

(C)    A player may exchange a defective electronic dabber for another provided a disinterested player verifies that the electronic dabber is not functioning.

(D)    The bingo ticket as defined in Section 12-21-3920(3) must be perforated and allows both the player and the house to retain a copy. The ticket must be sold at face value. Only the number of faces printed on the bingo ticket may be downloaded or activated into the electronic dabber, no more or less, and at no time may bingo cards be sold for use with an electronic dabber and bingo ticket in matching face value or for any other purpose. The bingo tickets must be purchased on a bingo voucher only through a distributor licensed in this State.

(E)    After completion of each session the organization shall generate an activity report containing the number of electronic dabbers used in the session along with the house receipts for each bingo ticket sold. This report must be printed and maintained with the daily reports of the bingo session held.

Section 12-21-4009.    The use of an electronic or mechanical device designed for a bingo game authorized pursuant to this chapter must be limited to a bingo promoter and the promoter's employees or any other person authorized by law to conduct bingo only in order to facilitate bingo play, and this machine must not dispense as a prize coins or currency. The operation of the bingo games excludes machines and lottery games, including video poker lottery games, prohibited by Sections 12-21-2710, 16-19-40, and 16-19-50."

SECTION    2.    Section 12-21-3920(3) of the 1976 Code is amended to read:

"(3)    'Card' means a printed or nonprinted design on which there are arranged five horizontal rows and five vertical columns forming twenty-five squares. Numbers are printed in twenty-four of the squares, and the term 'free', 'free square', or 'free space' is printed in the square or space located in the center of the card. The five columns are denominated from left to right by the respective letters of the word 'B-I-N-G-O'. Each square in the 'B' column contains a number from one through fifteen inclusive; each square in the 'I' column contains a number from sixteen through thirty inclusive; except for the center space which is marked as free, each square in the 'N' column contains a number from thirty-one through forty-five inclusive; each square in the 'G' column contains a number from forty-six through sixty inclusive; and each square in the 'O' column contains a number from sixty-one through seventy-five inclusive. No A number may not appear twice on the same card. A nonprinted design is a bingo ticket for use only with an electronic dabber. The bingo ticket is a perforated two-part ticket and must bear a sequential serial ticket number, the South Carolina state seal, denomination, number of faces authorized for download or activation, and the Department of Revenue issued organization license number. The ticket must have designated blanks for entry of the date sold and electronic dabber unit number supplied. Bingo tickets must be printed and sold only by distributors licensed by the department."

SECTION    3.    Section 12-21-3920 of the 1976 Code is amended by adding:

"(20)    'Electronic dabber" means a hand-held electronic device that allows a player to store, display, and mark bingo card faces that have been downloaded or activated as authorized by the bingo ticket. All electronic dabbers must be tested and approved by an independent testing facility to be determined by the department within forty-five days of a written request.

(21)    'Site system' means a computer accounting system commonly referred to as a point of sale system used in conjunction with electronic dabbers. This computer software must be used at a site by an organization which allows a bingo ticket purchased from a licensed distributor to authorize the download or activation of faces into the electronic dabbers, accounts for gross proceeds, and provides accounting information on all activity for one year from the end of the quarter in which the activity occurred. All site systems and electronic dabbers must be tested and approved by an independent testing facility to be determined by the department within forty-five days of written request."

SECTION    4.    Section 12-21-3990(A)(2) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:

"(2)    Before each game begins, the caller shall announce to the players the configuration or configurations that will win the game. A configuration consists of a number of grids covered in the manner announced by the caller. Any method of playing the games is allowed if the method is announced before each game's beginning including, but not limited to, wild card games. In addition, at the conclusion of each game anytime before the conclusion of the game, the prize, specifically stating the dollar amount or value of merchandise awarded to the winner or winners for the game completed, must be announced before the next game begins."

SECTION    5.    Section 12-21-4000(8) of the 1976 Code is amended to read:

"(8)    The prize must be awarded to the first person who successfully achieves the winning configuration of covered squares. All winning configurations must be verified using an electronic verifying system and must be displayed on the monitor for all players to see."

SECTION    6.    Section 12-21-4020(2) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:

"(2) CLASS B:    An organization operating a bingo game offering prizes, which do not exceed eight thousand dollars a session averaged on a quarterly basis, shall obtain a Class B bingo license at a cost of one thousand dollars. The holder of a Class B license may not conduct more than five bingo sessions a week."

SECTION    7.    Section 12-21-4120 of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:

"Section 12-21-4120.    Any An organization or a promoter seeking clarification on the play of or operation of a bingo game shall submit to the department's bingo regulatory section a written request seeking a determination as to whether or not a certain or specific action constitutes a violation. A conference may be requested upon the receipt of the clarification request. The department shall respond, in writing, to the party requesting the clarification, citing specific statutes which disqualify an action and, when applicable, citing actions that are authorized pursuant to the laws of this State. Any An organization or a promoter found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request."

SECTION    8.    Upon approval by the Governor, this act takes effect July 2, 2003.

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