HB31EX2.html

To revise provisions relating to bona fide coin operated amusement machines; 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 certain bona fide coin operated amusement machines are not contraband; to provide a definition; to prohibit the award of certain items as prizes; to provide that evidence of winnings from such machines shall not be exchangeable or redeemable for money, cash, or its equivalent in this state or any other jurisdiction; to change penalties for giving money for free replays on certain amusement machines, for giving money for noncash prizes for playing certain amusement machines, and for giving money for successful play of certain amusement machines; to provide penalties for any person who gives to any other person money for any noncash merchandise, prize, toy, gift certificate, or novelty received for playing a bona fide coin operated amusement machine; to provide penalties for the receipt of money for such free replays, for such noncash prizes, and for such successful play; to provide that giving or receiving any money for a gift certificate awarded for successful play is unlawful and to provide for penalties; to provide for seizure of such amusement machines in certain circumstances; to provide for a civil action for forfeiture and for venue, procedures, parties, notice, and disposition of such action; to require certain notice to be printed on gift certificates awarded for successful play; to amend Chapter 17 of Title 48 of the Official Code of Georgia Annotated, relating to taxation of bona fide coin operated amusement machines, so as to provide for notice of certain criminal provisions on master licenses and permit stickers issued for bona fide coin operated amusement machines; to change provisions relating to master licenses; to provide for refusal to issue or renew a master license or for suspension or revocation of a master license for violation of provisions relating to gambling; to provide that hearings relating to licensing of bona fide coin operated amusement machines are not subject to provisions relating to the Office of State Administrative Hearings; to authorize the commissioner to impose certain penalties for violation of Code Section 16-12-35 by certain business owners and business operators who are not licensees or applicants for licenses; to provide for verified monthly reports of gross retail receipts from bona fide coin operated amusement machines and total gross retail receipts from a business location in certain circumstances; to authorize audits; to provide penalties for violations by business owners or business operators who are not licensees or applicants for licenses; to provide for definitions; to prohibit local governments from prohibiting licensed bona fide coin operated amusement machines or limiting the number of such machines; to provide for exceptions; to authorize certain regulation of amusement machines by local governments, specified penalties for violations, and civil actions for injunctions in certain circumstances; to provide for an exemption for offering by the Georgia Lottery Corporation of games determined by the Georgia Lottery Corporation to be otherwise authorized by the Constitution and laws of this state; to provide for related matters; to provide for effective dates; to repeal conflicting laws; and for other purposes.

Said part is further amended in Code Section 16-12-35, relating to the applicability of the part prohibiting gambling, by striking in their entirety subsections (a.1), (c), (d), (e), (f), and (g) and inserting in lieu thereof the following:
"(a.1) As used in this Code section, the term:
(1) 'Single play' or 'one play' means the completion of a sequence of a game where the player receives a score and from the score the player can secure free replays, merchandise, points, tokens, vouchers, tickets, or other evidence of winnings as set forth in subsection (c) or (d) of this Code section.
(2) 'Some ~~'some~~ skill' means any presence of the following factors, alone or in combination with one another:
~~(1)~~(A) A learned power of doing a thing competently;
~~(2)~~(B) A particular craft, art, ability, strategy, or tactic;
~~(3)~~(C) A developed or acquired aptitude or ability;
~~(4)~~(D) A coordinated set of actions, including, but not limited to, eye-hand coordination;
~~(5)~~(E) Dexterity, fluency, or coordination in the execution of learned physical or mental tasks or both;
~~(6)~~(F) Technical proficiency or expertise;
~~(7)~~(G) Development or implementation of strategy or tactics in order to achieve a goal; or
~~(8)~~(H) 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. Any amusement game, including any video card game, which does not require some skill, is subject to the provisions of this article prohibiting gambling, even if prizes are limited as provided in subsections (c) and (d) of this Code section."
"(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 and is not exchangeable or redeemable in any manner in this state or in any other state, jurisdiction, or foreign country for money, cash, or any equivalent thereof. The machine is prohibited from awarding as a reward for successful play any item the sale of which is regulated by Title 3, any tobacco products, or any firearms. 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) 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 and is not exchangeable or redeemable in any manner in this state or in any other state, jurisdiction, or foreign country for money, cash, or any equivalent thereof. The machine is prohibited from awarding as a reward for successful play any item the sale of which is regulated by Title 3, any tobacco products, or any firearms;
(C) Points, tokens, vouchers, tickets, or other evidence of winnings which may be exchanged only 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) It shall be unlawful for:
(1) Any person ~~who gives~~ to give 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)~~(2) 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 give 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)~~(3) 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 give 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.~~
(4) Any person to receive money from another person for one or more free replays on a bona fide coin operated amusement machine as defined in Code Section 48-17-1;
(5) Any person to receive money from a person owning or possessing a bona fide coin operated amusement machine as defined in Code Section 48-17-1 or any person employed by or acting on behalf of any such person for any noncash merchandise, prize, toy, gift certificate, or novelty received as a reward in playing any such bona fide coin operated amusement machine;
(6) Any person to receive any money for a gift certificate received as a reward in playing any bona fide coin operated amusement machine; or
(7) Any person to receive money as a reward for the successful play or winning of any bona fide coin operated amusement machine as defined in Code Section 48-17-1 from any person owning or possessing such bona fide coin operated amusement machine or any person employed by or acting on behalf of any such person.
(f) The first violation of subsection (e) of this Code section shall be a misdemeanor; provided, however, that a first offense involving a transfer of more than $10.00 in a single transaction or in the aggregate shall be a felony offense punishable by imprisonment for not less than one and not more than three years or a fine not to exceed $10,000.00, or both. Second and subsequent offenses shall be felony offenses punishable by imprisonment for not less than one and not more than five years or a fine not to exceed $20,000.00, or both.
(g) Upon the arrest of any person charged with a violation of subsection (e) of this Code section or subsequent to such a violation, any peace officer may seize one or more machines or games which are alleged to have been used in such violation. Such seizure shall be reported to the district attorney of the county where the machine or game was seized within ten days of such seizure. Within 30 days after receipt of notice of such a seizure, the district attorney shall cause to be filed in the superior court of the county in which the machine or game was seized an action against the property so seized and provide notice of such action to all persons having an interest in or right affected by the seizure or sale of such property. Otherwise, the civil action and disposition of the machine or game shall be governed by the provisions of subsections (e), (f), (g), and (h) of Code Section 16-12-32.
(h) Each gift certificate awarded for successful play on a bona fide coin operated amusement machine in accordance with subsection (c) or (d) of this Code section shall have printed on it the following:
'GEORGIA LAW PROHIBITS EXCHANGING OR REDEEMING THIS CERTIFICATE FOR MONEY, CASH, OR ANY EQUIVALENT, INCLUDING CHANGE IN MONEY OR CASH AS PART OF AN EXCHANGE FOR MERCHANDISE. CRIMINAL PENALTIES MAY INCLUDE A $1,000.00 FINE OR ONE YEAR IN PRISON, OR BOTH, FOR THE FIRST OFFENSE AND ARE MORE SEVERE FOR ADDITIONAL OFFENSES.'"

Said chapter is further amended by striking in its entirety Code Section 48-17-15, relating to the limitation on percent of annual income derived from machines and revocation or suspension of license for violations, and inserting in lieu thereof the following:
"48-17-15.
(a) In this Code section and in Code Section 48-17-16, the term:
(1) 'Business location' means any structure, vehicle, or establishment where a business is conducted.
(2) 'Gross retail receipts' means the total revenue derived by the business at any one business location from the sale of goods or services and the commission earned at any one business location on the sale of goods or services but does not include revenue from the sale of goods or services for which the business will receive only a commission. Revenue from the sale of goods or services at wholesale is not included.
~~(a)~~(b) No business owner or business operator shall derive more than 50 percent of such business owner´s or business operator´s ~~annual income from~~ monthly gross retail receipts for the business location in which the bona fide coin operated amusement machine or machines are situated from bona fide coin operated amusement machines that provide for ~~noncash redemption as described in subsection (c) or (d) of Code Section 16-12-35~~ reward of successful play with any noncash merchandise, prizes, toys, gift certificates, or novelties; provided, however, that this subsection shall not apply to any bona fide coin operated amusement machine which rewards successful play solely with free replays.
(c) For each business location which offers to the public one or more bona fide coin operated amusement machines, as defined in Code Section 48-17-1, the business owner or business operator shall prepare a monthly verified report setting out separately the gross retail receipts from the bona fide coin operated amusement machines and the gross retail receipts from the business location. Upon request, the business owner or business operator shall supply such monthly reports to the commissioner. The department is authorized to audit any records for any such business location.
~~(b)~~(d) In accordance with the provisions of Code Section 48-17-4 and the procedures set out in Code Sections 48-17-5 and 48-17-6, the commissioner may fine an applicant or licensee, refuse to issue or renew a master license, or ~~may~~ revoke or suspend a master license for single or repeated violations of subsection ~~(a)~~(b) of this Code section.
(e) As a penalty for violation of the provisions of subsection (b) or (c) of this Code section, the commissioner may:
(1) Fine:
(A) A business owner who is not an applicant for a license or a licensee; and
(B) A business operator who is not an applicant for a license or a licensee; or
(2) Issue an order barring a person described in paragraph (1) of this subsection from offering any bona fide coin operated amusement machine to the public for commercial use at the business location which was the site or subject of the violation for a period not to exceed six months; or
(3) Fine as provided in paragraph (1) of this subsection and issue an order as provided in paragraph (2) of this subsection.
Before a penalty is imposed in accordance with this subsection, a business owner or business operator is entitled to at least 30 days´ written notice and, if requested, a hearing. Such written notice may be served in the manner provided for written notices to applicants for licenses and licensees in subsection (b) of Code Section 48-17-5, and an order imposing a penalty may be delivered in the manner provided for delivery of the commissioner´s orders to applicants for licenses or licensees in Code Section 48-17-6."

Said chapter is further amended by inserting a new Code section to be designated Code Section 48-17-16 to read as follows:
"48-17-16.
(a) Providing that the owner and possessor of a bona fide coin operated amusement machine, as defined in Code Section 48-17-1, have complied with the provisions of this chapter, the governing authority of the county or municipal corporation where such a bona fide coin operated amusement machine is located is not authorized to:
(1) Prohibit the possession, use, or offering to the public of such a bona fide coin operated amusement machine in any lawful business; or
(2) Restrict the number of bona fide coin operated amusement machines in any lawful business, except as otherwise provided in paragraphs (1) and (13) of subsection (b) of this Code section.
(b) The governing authority of any county or municipal corporation is authorized to enact and enforce an ordinance which includes but is not limited to any or a combination of the following provisions:
(1) Prohibiting the commercial offering to the public of more than six bona fide coin operated amusement machine which rewards the player exclusively with noncash merchandise, prizes, toys, gift certificates, or novelties at any business location;
(2) Requiring the owner or operator of a business location which offers to the public any bona fide coin operated amusement machine which rewards the player exclusively as described in subsection (d) of Code Section 16-12-35 to inform all employees of the prohibitions and penalties set out in subsections (e) and (f) of Code Section 16-12-35;
(3) Requiring the owner or possessor of any bona fide coin operated amusement machine which rewards the player exclusively as described in subsection (d) of Code Section 16-12-35 to inform each business owner or business operator of the business location where such machine is located of the prohibitions and penalties set out in subsections (e) and (f) of Code Section 16-12-35;
(4) Providing for fines and the suspension or revocation of a license granted by such local governing authority to manufacture, distribute, or sell alcoholic beverages or for the suspension or revocation of any other license granted by such local governing authority as a penalty for conviction of the owner or operator of a business location of a violation of subsection (e) of Code Section 16-12-35, or both; provided, however, that a municipal corporation is not authorized to impose any penalty greater than the maximum penalty authorized by such municipal corporation´s charter. An ordinance providing for the suspension or revocation of a license shall conform to the due process guidelines for granting, refusal, suspension, or revocation of a license for the manufacture, distribution, or sale of alcoholic beverages set out in subsection (b) of Code Section 3-3-2;
(5)(A) Providing that, after the arrest of the owner or operator of a business location or an employee or agent of such an owner or operator for a violation of subsection (e) of Code Section 16-12-35, the prosecuting attorney of the county or municipal corporation, as the case may be, is authorized to seek an order of the superior court enjoining the owner and operator of the business location from offering to the public any bona fide coin operated amusement machine at the business location where the violation occurred for up to 90 days; and
(B) Providing that, after the conviction of the owner or operator of a business location or an employee or agent of such an owner or operator for a violation of subsection (e) of Code Section 16-12-35, the prosecuting attorney of the county or municipal corporation, as the case may be, is authorized to seek an order of the superior court enjoining the owner and operator of the business location from offering to the public any bona fide coin operated amusement machine at the business location where the violation occurred for up to 90 days;
(6) Requiring any business owner or business operator subject to Code Section 48-17-15 to provide to the local governing authority a copy of each verified monthly report prepared in accordance with such Code section and incorporating the provisions of such Code section in the ordinance;
(7) Requiring the business owner or business operator of any business location which offers to the public one or more bona fide coin operated amusement machines to post prominently a notice including the words set forth in subsection (d.1) of Code Section 48-17-2 for inclusion on a master license for bona fide coin operated amusement machines or words which are substantially similar;
(8) Providing for restrictions relating to distance from specified structures or uses, so long as those distance requirements are no more restrictive than such requirements applicable to the sale of alcoholic beverages;
(9) Requiring, as a condition for doing business in the jurisdiction, disclosure by the business owner or business operator of the name and address of the owner of the bona fide coin operated amusement machine or machines;
(10) Prohibiting the award for successful play of bona fide coin operated amusement machines of gift certificates redeemable at any business location other than the location where the prize was won;
(11) Providing for penalties, including fines or suspension or revocation of a license as provided in paragraph (4) of this subsection, or both, for a violation of any ordinance enacted pursuant to this subsection; provided, however, that a municipal corporation is not authorized to impose any penalty greater than the maximum penalty authorized by such municipal corporation´s charter;
(12) Providing for any or all of the penalties authorized by paragraph (6) of this subsection for violation of Code Section 48-17-15;
(13) Requiring an arcade permit for any business commercially offering to the public more than six bona fide coin operated amusement machines which provide for noncash redemption in a single location; and denying such an arcade permit on any grounds which are not arbitrary or capricious;
(14) Imposing age restrictions on players of certain bona fide coin operated amusement machines; and
(15) Imposing other reasonable restrictions, not in actual conflict with this chapter or Code Section 16-12-35, concerning the commercial offering to the public of bona fide coin operated amusement machines."