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TO AMEND SECTION 12-21-4020, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CLASSES OF BINGO LICENSES, SO AS TO LIMIT GROSS PROCEEDS FOR A CLASS C BINGO GAME TO ONE HUNDRED THOUSAND DOLLARS A CALENDAR QUARTER, TO REQUIRE PAYMENT OF TAX AND APPLICATION FOR A CLASS B LICENSE IF THE GROSS PROCEEDS EXCEED THAT AMOUNT IN ANY QUARTER, AND TO PROVIDE THAT IF AN OPERATOR HAS BEEN GRANTED A CLASS C LICENSE TO OPERATE BINGO GAMES FOR A NONPROFIT ORGANIZATION, ANOTHER CLASS C LICENSE MAY NOT BE GRANTED TO THAT OPERATOR IF HE APPLIES FOR A LICENSE WITH ANOTHER NONPROFIT ORGANIZATION UNTIL SIX MONTHS HAS ELAPSED FROM THE APPLICATION OF THIS LICENSE TO OPERATE BINGO GAMES FOR ANOTHER NONPROFIT ORGANIZATION; AND TO AMEND SECTION 12-21-4210, AS AMENDED, RELATING TO SALE OR TRANSFER OF BINGO CARDS, SO AS TO PROVIDE FOR A DEPARTMENT AUDIT OF A LICENSEE CONVERTING FROM A CLASS C TO A CLASS B LICENSE TO DETERMINE THE TAX OWED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-21-4020(3) of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"(3) CLASS C: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session shall obtain a Class C bingo license at no cost. However, the organization may offer a prize in cash or merchandise of no more than one hundred fifty dollars for six jackpot games a session. An organization operating a Class C bingo game may not exceed gross bingo proceeds of one hundred thousand dollars a calendar quarter. If the gross bingo proceeds for any calendar quarter exceeds that amount, the organization shall notify the department within ten days of the end of the quarter, pay the license fee for a Class B license, and have the license converted by the department from a Class C license to a Class B license. In any calendar quarter in which a Class C licensed organization's bingo gross proceeds exceed one hundred thousand dollars, the organization shall pay to the department a tax of sixteen and one-half percent of the gross bingo proceeds for that quarter. This tax must be distributed as directed by Section 12-21-4190(B). The department, in its discretion, may allow certain Class C licenses to use hard bingo cards instead of the paper cards required by this article.
To qualify to play on hard cards, a bingo game conducted by a Class C license must meet the following criteria:
(a) be operated solely only by volunteers;
(b) the person managing, conducting, or operating the bingo game must not be paid or otherwise be compensated and must be a designated member of the organization;
(c) remuneration, including wages or other compensation, must not be made to any individual or corporation;
(d) all equipment used to operate a game of bingo, including chairs, tables, and other equipment, must be owned by the charity;
(e) the organization may lease the building directly from the owner of the building or own the building in which the game of bingo is played. The organization may not lease or sublease the building from a person who is not the owner;
(f) the only expenses allowed to be paid from the proceeds of the game are utility bills, prizes, purchases of cards, payments for the lease of a building, purchases of equipment required to operate a game of bingo, and the charitable purposes of the organization;
(g) one hundred percent of the net proceeds from the operation of the game must be used for charitable purposes.;
(h) if an operator has been granted a Class C license to operate bingo games for a nonprofit organization, another Class C license may not be granted to that operator if he applies for a license with another nonprofit organization until six months has elapsed from the application of this license to operate bingo games for another nonprofit organization."
SECTION 2. Section 12-21-4210 of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"Section 12-21-4210. Bingo cards may not be sold or transferred between licensed organizations, between distributors, or between manufacturers. All unused bingo cards may be returned to the department for refund and destruction. The department shall audit all cards held by a Class C licensee that converts to a Class B license, and the licensee shall pay a tax to the department of sixteen and one-half percent of the face value of the cards held. This tax must be distributed as directed by Section 12-21-4190(B). The department may not issue additional bingo cards to the licensee until this tax is paid. The department is required to refund only the amount retained by the department previously based on the face value of each card and does not include the manufacturer's price or transportation charges to the consignee at destination and such additional charges. If an organization operating a bingo game ceases operation within fifteen days from the purchase of the last voucher and the voucher remains outstanding, the department shall accept the returned paper and credit the value of returned paper against the outstanding voucher. The organization then shall pay the balance of the voucher less the value of returned paper."
SECTION 3. This act takes effect upon approval by the Governor.
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