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01 LC 21 6078

Senate Bill 18
By: Senators Beatty of the 47th, Cheeks of the 23rd, Cagle of the 49th and Mullis of the 53rd




A BILL TO BE ENTITLED
AN ACT

To amend Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling, so as to provide that coin operated video games which display images of ordinary playing cards and video games which operate in the manner of slot machines whereby the goal is to match two or more like images shall not be considered to be designed and manufactured for bona fide amusement purposes only and shall be considered gambling devices subject to the provisions of said part; to provide that any coin operated game or device which is involved in a violation of Code Section 16-12-35 shall be considered a gambling device, declared to be contraband, and subject to seizure and confiscation by any state or local authority within whose jurisdiction the same may be found as provided in Code Section 16-12-30; to provide that any person who commits a violation of certain provisions of Code Section 16-12-35 after having previously been convicted of a violation of any such provisions of said Code section shall be guilty of a felony; to provide penalties; to amend Chapter 17 of Title 48 of the Official Code of Georgia Annotated, relating to coin operated amusement machines, so as to change a certain reference; to change the definition of a certain term; to provide that the state revenue commissioner shall refuse to issue or renew a master license and shall revoke a master license issued under said chapter for certain violations of Code Section 16-12-35; to change the penalty fee for coin operated amusement machines in operation without a permit sticker; to provide for law enforcement agencies to notify the state revenue commissioner of arrests for violations of Code Section 16-12-35; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to gambling, is amended by striking in its entirety Code Section 16-12-35, relating to the applicability of said part, and inserting in lieu thereof a new Code Section 16-12-35 to read as follows:
"16-12-35.
(a) Any other laws to the contrary notwithstanding, this part shall not be applicable to the manufacturing, processing, selling, possessing, or transporting of any printed materials, equipment, devices, or other materials used or designated for use in a legally authorized lottery nor shall it be applicable to the manufacturing, processing, selling, possessing, or transporting of any gaming equipment, devices, or other materials used or designated for use only in jurisdictions in which the use of such items is legal. This part shall in no way prohibit communications between persons in this state and persons involved with such legal lotteries or gaming devices relative to such printed materials, equipment, devices, or other materials or prohibit demonstrations of same within this state.
(a.1) As used in this Code section, the term 'some skill' means any presence of the following factors, alone or in combination with one another:
(1) A learned power of doing a thing competently;
(2) A particular craft, art, ability, strategy, or tactic;
(3) A developed or acquired aptitude or ability;
(4) A coordinated set of actions, including, but not limited to, eye-hand coordination;
(5) Dexterity, fluency, or coordination in the execution of learned physical or mental tasks or both;
(6) Technical proficiency or expertise;
(7) Development or implementation of strategy or tactics in order to achieve a goal; or
(8) Knowledge of the means or methods of accomplishing a task.
The term 'some skill' refers to a particular craft, coordinated effort, art, ability, strategy, or tactic employed by the player to affect in some way the outcome of the game played on a bona fide coin operated amusement machine as defined in paragraph (2) of Code Section 48-17-1. If a player can take no action to affect the outcome of the game, the bona fide coin operated amusement machine does not meet the 'some skill' requirement of this Code section.
(b) Except as otherwise provided in subsection (e) of this Code section, nothing Nothing in this part shall apply to a coin operated game or device designed and manufactured for bona fide amusement purposes only which may by application of some skill entitle the player to earn replays of the game or device at no additional cost and to discharge the accumulated free replays only by reactivating the game or device for each accumulated free replay or by reactivating the game or device for a portion or all of the accumulated free plays in a single play. This subsection shall not apply, however, to any game or device classified by the United States government as requiring a federal gaming tax stamp under applicable provisions of the Internal Revenue Code.
(c)(1) Nothing in this part shall apply to a crane game machine or device meeting the requirements of paragraph (2) of this subsection.
(2) A crane game machine or device acceptable for the purposes of paragraph (1) of this subsection shall meet the following requirements:
(A) The machine or device must be designed and manufactured only for bona fide amusement purposes and must involve at least some skill in its operation;
(B) The machine or device must reward a winning player exclusively with free replays or merchandise contained within the machine itself and such merchandise must be limited to noncash merchandise, prizes, toys, gift certificates, or novelties, each of which has a wholesale value not exceeding $5.00. A player may be rewarded with both free replays and noncash merchandise, prizes, toys, or novelties for a single play of the game or device as provided in this Code section;
(C) The player of the machine or device must be able to control the timing of the use of the claw or grasping device to attempt to pick up or grasp a prize, toy, or novelty;
(D) The player of the machine or device must be made aware of the total time which the machine or device allows during a game for the player to maneuver the claw or grasping device into a position to attempt to pick up or grasp a prize, toy, or novelty;
(E) The claw or grasping device must not be of a size, design, or shape that prohibits picking up or grasping a prize, toy, or novelty contained within the machine or device; and
(F) The machine or device must not be classified by the United States government as requiring a federal gaming stamp under applicable provisions of the Internal Revenue Code.
(d)(1) Except as otherwise provided in subsection (e) of this Code section, nothing Nothing in this part shall apply to a coin operated game or device designed and manufactured only for bona fide amusement purposes which involves some skill in its operation if it rewards the player exclusively with:
(A) Free replays;
(B) Merchandise limited to noncash merchandise, prizes, toys, gift certificates, or novelties, each of which has a wholesale value of not more than $5.00 received for a single play of the game or device;
(C) Points, tokens, vouchers, tickets, or other evidence of winnings which may be exchanged for rewards set out in subparagraph (A) of this paragraph or subparagraph (B) of this paragraph or a combination of rewards set out in subparagraph (A) and subparagraph (B) of this paragraph; or
(D) Any combination of rewards set out in two or more of subparagraph (A), (B), or (C) of this paragraph.
This subsection shall not apply, however, to any game or device classified by the United States government as requiring a federal gaming stamp under applicable provisions of the Internal Revenue Code.
(2) A player of bona fide coin operated amusement games or devices described in paragraph (1) of this subsection may accumulate winnings for the successful play of such bona fide coin operated amusement games or devices through tokens, vouchers, points, or tickets. Points may be accrued on the machine or device. A player may carry over points on one play to subsequent plays. A player may redeem accumulated tokens, vouchers, or tickets for noncash merchandise, prizes, toys, gift certificates, or novelties so long as the amount of tokens, vouchers, or tickets received does not exceed $5.00 for a single play.
(e) Coin operated video games which display images of ordinary playing cards and video games which operate in the manner of slot machines whereby the goal is to match two or more like images shall not be considered to be designed and manufactured for bona fide amusement purposes only and shall be considered gambling devices subject to the provisions of this part.
(f) Notwithstanding any other provisions of this Code section, any coin operated game or device which is involved in a violation of this Code section shall be considered a gambling device, declared to be contraband, and subject to seizure and confiscation by any state or local authority within whose jurisdiction the same may be found as provided in Code Section 16-12-30.
(e)(g) Any person who gives to any other person money for free replays on coin operated games or devices described in subsection (b), (c), or (d) of this Code section shall be guilty of a misdemeanor.
(f)(h) Except as otherwise provided in subsection (j) of this Code section, any Any person owning or possessing an amusement game or device described in subsection (c) or (d) of this Code section or any person employed by or acting on behalf of any such person who gives to any other person money for any noncash merchandise, prize, toy, gift certificate, or novelty received as a reward in playing any such amusement game or device shall be guilty of a misdemeanor.
(g)(i) Except as otherwise provided in subsection (j) of this Code section, any Any person owning or possessing an amusement game or device described in subsection (b), (c), or (d) of this Code section or any person employed by or acting on behalf of any such person who gives to any other person money as a reward for the successful play or winning of any such amusement game or device shall be guilty of a misdemeanor of a high and aggravated nature.
(j) Any person who commits a violation of subsection (g), (h), or (i) of this Code section after having previously been convicted of any violation under such subsections shall be guilty of a felony and, upon conviction thereof, shall be punished by imprisonment for not less than one nor more than five years or by a fine not to exceed $10,000.00, or both."

SECTION 2.
Chapter 17 of Title 48 of the Official Code of Georgia Annotated, relating to coin operated amusement machines, is amended by striking in its entirety subparagraph (A) of paragraph (2) of Code Section 48-17-1, relating to definitions applicable to said chapter, and inserting in lieu thereof a new subparagraph (A) to read as follows:
"(A) Every machine of any kind or character used by the public to provide amusement or entertainment whose operation requires the payment of or the insertion of a coin, bill, other money, token, ticket, or similar object and the result of whose operation depends in whole or in part upon the skill of the player, whether or not it affords an award to a successful player pursuant to subsections (b) through (g)(j) of Code Section 16-12-35, and which can be legally shipped interstate according to federal law. Examples of bona fide coin operated amusement machines include, but are expressly not limited to, the following:
(i) Pinball machines;
(ii) Console machines;
(iii) Video games, except video games which display images of ordinary playing cards and video games which operate in the manner of slot machines whereby the goal is to match two or more like images and which are considered gambling devices pursuant to subsection (e) of Code Section 16-12-35;
(iv) Crane machines;
(v) Claw machines;
(vi) Pusher machines;
(vii) Bowling machines;
(viii) Novelty arcade games;
(ix) Foosball or table soccer machines;
(x) Miniature racetrack, football, or golf machines;
(xi) Target or shooting gallery machines;
(xii) Basketball machines;
(xiii) Shuffleboard games;
(xiv) Kiddie ride games;
(xv) Skeeball machines;
(xvi) Air hockey machines;
(xvii) Roll down machines;
(xviii) Trivia machines;
(xix) Laser games;
(xx) Simulator games;
(xxi) Virtual reality machines;
(xxii) Matchup or lineup games which require the player to use skill stops to complete the game;
(xxiii) Maze games;
(xxiv) Racing games;
(xxv) Coin operated pool tables or coin operated billiard tables as defined in paragraph (3) of Code Section 43-8-1; and
(xxvi) Any other similar amusement machine which can be legally operated in Georgia; and".

SECTION 3.
Said chapter is further amended by adding at the end of Code Section 48-17-4, relating to the authority of the state revenue commissioner to refuse to issue or renew a license or to revoke or suspend a license, a new subsection (e) to read as follows:
"(e)(1) The commissioner shall refuse to issue or renew a master license and shall revoke a master license issued under this chapter if the licensee or applicant has been convicted of a violation of Code Section 16-12-35 on or after July 1, 2002.
(2) The commissioner shall refuse to issue or renew a master license and shall revoke a master license issued under this chapter if the licensee or applicant has had two or more employees convicted of a violation of Code Section 16-12-35 on or after July 1, 2002, or has had one employee convicted twice of a violation of Code Section 16-12-35 on or after July 1, 2002."

SECTION 4.
Said chapter is further amended by striking in its entirety Code Section 48-17-11, relating to permit fees for additional coin operated amusement machines and penalty fees, and inserting in lieu thereof a new Code Section 48-17-11 to read as follows:
"48-17-11.
If an owner purchases or receives additional coin operated machines during the calendar year, the $25.00 permit fee shall be paid to the commissioner and the sticker shall be affixed to the machine or placed at the location where the machine is located before the machine may be legally operated. A penalty fee of $50.00 $100.00 shall be assessed by the commissioner for every machine in operation without a permit sticker."

SECTION 5.
Said chapter is further amended by adding at the end of Code Section 48-17-12, relating to administration of said chapter, a new subsection (d) to read as follows:
"(d) A local law enforcement agency shall notify the commissioner of any arrest for a violation of Code Section 16-12-35."

SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.