hb1230.html

08 LC 28 3978

House Bill 1230

By: Representatives Lindsey of the 54th, Lucas of the 139th, Barnard of the 166th, Oliver of the 83rd, Ehrhart of the 36th, and others

A BILL TO BE ENTITLED
AN ACT

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 change the definition of a gambling device; to clarify that provisions relating to the possession, manufacture, or transfer of gambling devices are not applicable to certain materials, equipment, devices, or machines; to revise a provision relating to seizure and destruction of gambling devices; to provide that provisions relating to seizure and disposal of property apply to gambling devices and alleged gambling devices; to provide for seizure of gambling devices and alleged gambling devices in certain circumstances; to revise definitions and requirements relating to bona fide coin operated amusement machines; to delete a provision relating to amusement machines that provide only free replays as reward for successful play; to provide that rewards for successful play of such machines shall not be exchangeable or redeemable for cash, alcoholic beverages, tobacco products, or firearms; to change provisions defining unlawful acts relating to such machines and penalties therefor; to change provisions relating to exchange or redemption of evidence of winnings; to provide for certain language on gift certificates awarded for successful play and for penalties; to limit the number of such machines to nine in a business location and to provide for exceptions and penalties; to provide that statutes prohibiting gambling do not apply to certain games at certain amusement or recreational establishments; to amend Chapter 17 of Title 48 of the Official Code of Georgia Annotated, relating to coin operated amusement machines, so as to revise definitions; to provide that video or mechanical games, machines, or devices for the play of card games or variations of such games are not bona fide coin operated amusement machines; to provide for the powers and duties of the state revenue commissioner; to provide for rules and regulations; to provide for classes of machines, location permits, fees, procedures for collection and refunds, display of certificates, contents of certificates and stickers, duplicate permits, and late fees; to provide for the terms and conditions of location permits and annual fees for additional machines; to provide that applications for licenses and permits are open to public inspection; to provide for issuance, renewal, denial, suspension, and revocation of such permits; to provide for hearings and delivery of certain orders of the commissioner; to provide for the continued validity of prior existing obligations to the state; to provide that this Act shall not affect offenses committed or prosecutions begun under preexisting law; to change provisions relating to the maximum percentage of income derived from bona fide coin operated amusement machines; to provide for penalties for business owners or operators in certain circumstances; to provide for regulation of bona fide coin operated amusement machines by counties and municipal corporations in certain circumstances; to provide a list of authorized provisions for an ordinance of a local government; to amend Code Section 50-18-72 of the Official Code of Georgia Annotated, relating to when public disclosure of public records is not required, so as to provide an exemption from public inspection for records of names and addresses of persons or entities holding location permits; to provide that such records may be inspected by representatives of law enforcement agencies and local governments; to provide that this Act shall not be construed to prohibit the offering of certain lottery games; to provide for related matters; to provide an effective date; 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 revising paragraph (2) of Code Section 16-12-20, relating to definitions, as follows:

"(2) 'Gambling device' means:

(A) Any any contrivance which for a consideration affords the player an opportunity to obtain money or other thing of value, the award of which is determined by chance even though accompanied by some skill, whether or not the prize is automatically paid by contrivance; provided, however, that a bona fide coin operated amusement machine, as defined in Code Section 48-17-1, is not a gambling device if the machine provides rewards for successful play of such machine in compliance with the provisions of Code Section 16-12-35.

(B) Any slot machine or any simulation or variation thereof;

(C) Any matchup or lineup game machine or device, operated for any consideration, in which two or more numerals, symbols, letters, or icons align in a winning combination on one or more lines vertically, horizontally, diagonally, or otherwise, without assistance by the player. Use of skill stops shall not be considered assistance by the player; or

(D) Any video game machine or device, operated for any consideration, for the play of poker, blackjack, any other card game, or keno or any simulation or variation of any of the foregoing, including, but not limited to, any game in which numerals, numbers, or any pictures, representations, or symbols are used as an equivalent or substitute for cards in the conduct of such game.

Any item described in subparagraph (B), (C), or (D) of this paragraph shall be a prohibited gambling device subject to and prohibited by this part, notwithstanding any inference to the contrary in any other law of this state."

SECTION 2.

Said part is further amended by revising Code Section 16-12-24, relating to possession, manufacture, or transfer of gambling device or parts, by adding a new subsection to read as follows:

"(c) In accordance with Code Section 16-12-35, this Code section shall not apply to the manufacturing, processing, selling, possessing, or transporting of:

(1) Any printed materials, equipment, devices, or other materials used or designated for use in a legally authorized lottery;

(2) Any gaming equipment, devices, or other materials used or designated for use only in jurisdictions in which the use of such items is legal; and

(3) Any bona fide coin operated amusement machine, as defined in Code Section 48-17-1, provided that the machine and any rewards provided by the machine for successful play of the machine do not violate the provisions of Code Section 16-12-35."

SECTION 3.

Said part is further amended by revising Code Section 16-12-30, relating to seizure and destruction of gambling devices, as follows:

"16-12-30.

(a) Except as provided in subsection (b) of Code Section 16-12-24, every gambling device is declared to be contraband and subject to seizure and confiscation by any state or local authority within whose jurisdiction the same may be found a game, machine, or device that is or is alleged or believed to be a gambling device may be seized by a state or local law enforcement authority within whose jurisdiction such alleged gambling device may be found. Every such seizure shall be subject to the provisions of Code Section 16-12-32.

(b) At such time as there shall be a final judgment entered in any case or cases in which a seized gambling device is necessary evidence or at such time as the state shall determine that the continued physical existence of the seized gambling device is no longer necessary, the same shall be turned over by that person having custody of the device to the sheriff of the county wherein the device was confiscated. The sheriff shall within ten days after receiving the device destroy the same in the presence of the district attorney of the circuit in which such county is located and shall forward to the state revenue commissioner a certificate so stating which shall include the serial number of the device so destroyed."

SECTION 4.

Said part is further amended by revising subsection (a) of Code Section 16-12-32, relating to seizure and disposition of property used in or derived from violation of article, as follows:

"(a) As used in this Code section, 'property' means any personal property of any type, tangible or intangible, including but not limited to vehicles, conveyances, aircraft, watercraft, funds, other things of value or choses in action or any interest in such property, but shall not include a gambling device subject to seizure and destruction under Code Section 16-12-30 and including any game, machine, or device that is or is alleged or believed to be a gambling device as defined in Code Section 16-12-20."

SECTION 5.

Said part is further amended by revising Code Section 16-12-35, relating to the applicability of criminal statutes relating to gambling, as follows:

"16-12-35.

(a) 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 it is not necessary for a player to take an action to achieve a successful outcome on a coin operated amusement machine, such machine does not meet the 'some skill' requirement of this Code section. Any amusement 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.

(b) 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 or any item described as a gambling device in subparagraph (B), (C), or (D) of paragraph (2) of Code Section 16-12-20 Reserved.

(c)(1) Nothing in this part shall apply to a A crane game machine or device meeting the requirements of paragraph (2) of this subsection shall be a bona fide coin operated amusement machine.

(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. Tobacco products, firearms, and items the sale of which is regulated by Title 3 shall not be awarded as rewards for successful play of the machine. 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; and

(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 A coin operated game or device designed and manufactured only for bona fide amusement purposes which involves some skill in its operation shall be a bona fide coin operated amusement machine if it rewards the player a successful player of such a machine 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. Tobacco products, firearms, and items the sale of which is regulated by Title 3 shall not be awarded as rewards for successful play of the machine;

(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 or any item described as a gambling device in subparagraph (B), (C), or (D) of paragraph (2) of Code Section 16-12-20.

(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 such points on one play to subsequent plays. A player may redeem accumulated points, tokens, vouchers, or tickets for noncash merchandise, prizes, toys, gift certificates, or novelties so long as the amount of points, 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;

(5) Any person to receive money from a person owning or possessing a bona fide coin operated amusement machine 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 for the return of any merchandise purchased with such a gift certificate; or

(7) Any person to receive money as a reward for the successful play or winning of any bona fide coin operated amusement machine 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 and second violations of subsection (e) of this Code section shall be punished as high and aggravated misdemeanors. Third 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 $50,000.00, or both.

(g) Reserved.

(h)(1) Any gift certificates, tokens, vouchers, tickets, or other evidence of winnings awarded under subsection (c) or (d) of this Code section must be redeemable only at the premises on which the game or device is located. It shall be unlawful for any person to provide to any other person as a reward for play on any such game or device any gift certificate, token, voucher, ticket, or other evidence of winning which is redeemable or exchangeable for any thing of value at any other premises. It shall be unlawful for any person at any premises other than those on which the game or device is located to give any thing of value to any other person for any gift certificate, token, voucher, ticket, or other evidence of winning received by such other person from play on such game or device. Any person who violates this subsection shall be guilty of a misdemeanor of a high and aggravated nature 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 $5,000.00 FINE OR 12 MONTHS IN PRISON, OR BOTH, FOR THE FIRST AND SECOND OFFENSES AND ARE MORE SEVERE FOR ADDITIONAL OFFENSES.'

(2) Violation of this subsection shall be a misdemeanor.

(i)(1) The merchandise, prizes, toys, gift certificates, novelties, or rewards which may be awarded under subsection (c) or (d) of this Code section may not include or be redeemable or exchangeable for any firearms, alcohol, or tobacco or any lottery ticket or other item enabling participation in any lottery. Any person who violates this subsection shall be guilty of a misdemeanor of a high and aggravated nature Except as authorized by a local ordinance, no business owner or business operator shall offer more than nine bona fide coin operated amusement machines to the public for play in the same business location.

(2) Violation of this subsection shall be a misdemeanor.

(j) 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. This part shall not be applicable to a coin operated amusement machine if the machine and any rewards provided by the machine for successful play of such machine comply with this Code section."

SECTION 6.

Said part is further amended by adding a new Code section to read as follows:

"16-12-35.1.

(a) As used in this Code section, the term 'amusement or recreational establishment' means an open-air establishment frequented by the public for amusement or recreation. Such an establishment may be traveling or fixed in location.

(b) Nothing in this part shall apply to any game that:

(1) Uses neither electricity nor any electronic components;

(2) Is available to the public for play at an amusement or recreational establishment;

(3) Involved the use of eye-hand coordination or physical strength or both eye-hand coordination and physical strength on the part of a successful player; and

(4) Rewards a successful player exclusively with:

(A) Noncash merchandise, prizes, toys, gift certificates, or novelties;

(B) Points, tokens, vouchers, tickets, or other evidence of winnings that may be exchanged for rewards set out in subparagraph (A) of this paragraph; or

SECTION 7.

Chapter 17 of Title 48 of the Official Code of Georgia Annotated, relating to taxation of bona fide coin operated amusement machines, is amended by revising Code Section 48-17-1, relating to definitions, as follows:

"48-17-1.

As used in this chapter, the term:

(1) 'Applicant' or 'licensee' means owner as defined in this Code section including an owner´s 'Applicant,' 'licensee,' or 'holder of a license or permit' includes an entity´s officers, directors, shareholders, individuals, members of any association or other entity not specified, and, when applicable in context, the business entity itself.

(2)(A) 'Bona fide coin operated amusement machine' means:

(A)(i) 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 if a successful result of whose operation in operating such machine depends in whole or in part upon the skill of exercise of some skill, as defined in Code Section 16-12-35, by the player, whether or not it the machine affords an award to a successful player pursuant to subsections (b) through (g) of Code Section 16-12-35, and which can be legally shipped interstate according to federal law. Any rewards provided by such a machine shall comply with the provisions of Code Section 16-12-35. Examples of bona fide coin operated amusement machines include, but are expressly not limited to, the following:

(i)(I) Pinball machines;

(ii)(II) Console machines;

(iii)(III) Video games;

(iv)(IV) Crane machines;

(v)(V) Claw machines;

(vi)(VI) Pusher machines;

(vii)(VII) Bowling machines;

(viii)(VIII) Novelty arcade games;

(ix)(IX) Foosball or table soccer machines;

(x)(X) Miniature racetrack, football, or golf machines;

(xi)(XI) Target or shooting gallery machines;

(xii)(XII) Basketball machines;

(xiii)(XIII) Shuffleboard games;

(xiv)(XIV) Kiddie ride games;

(xv)(XV) Skeeball machines;

(xvi)(XVI) Air hockey machines;

(xvii)(XVII) Roll down machines;

(xviii)(XVIII) Trivia machines;

(xix)(XIX) Laser games;

(xx)(XX) Simulator games;

(xxi)(XXI) Virtual reality machines;

(xxii)(XXII) Maze games;

(xxiii)(XXIII) Racing games;

(XXIV) Matchup games or lineup games that offer no reward for successful play unless the player, after the game begins, takes a specific action that actually affects the outcome of the game;

(xxiv)(XXV) Coin operated pool tables or coin operated billiard tables as defined in paragraph (3) of Code Section 43-8-1; and

(xxv)(XXVI) Any other similar amusement machine which can be legally operated in Georgia; and

(B)(ii) Every machine of any kind or character used by the public to provide music whose operation requires the payment of or the insertion of a coin, bill, other money, token, ticket, or similar object such as jukeboxes or other similar types of music machines.

(B) The term 'bona fide coin operated amusement machine' does not include the following:

(i) Any video game machine or device for the play of poker, blackjack, any other card game, or any variation of the foregoing:

(i)(ii) Coin operated washing machines or dryers;

(ii)(iii) Vending machines which for payment of money dispense products or services;

(iii)(iv) Gas and electric meters;

(iv)(v) Pay telephones;

(v)(vi) Pay toilets;

(vi)(vii) Cigarette vending machines;

(vii)(viii) Coin operated scales;

(viii)(ix) Coin operated gumball machines;

(ix)(x) Coin operated parking meters;

(x)(xi) Coin operated television sets which provide cable or network programming;

(xi)(xii) Coin operated massage beds; and

(xiii) Games defined by subsection (b) of Code Section 16-12-35.1; and

(xii)(xiv) Machines which are not legally permitted to be operated in Georgia.

(2.1) 'Business owner or business operator' means an owner or operator of a business where one or more bona fide coin operated amusement machines are available for commercial use and play by the public.

(2.2) 'Class A machine' means a bona fide coin operated amusement machine that is not a Class B machine and:

(A) Provides no reward for successful play;

(B) Rewards a successful player with free replays or additional time to play;

(D) Rewards a successful player with points, tokens, tickets, or other evidence of winnings that may be exchanged only for items listed in subparagraph (C) of this paragraph; or

(E) Rewards a successful player with any combination of items listed in subparagraphs (B), (C), and (D) of this paragraph.

(2.3) 'Class B machine' means a bona fide coin operated amusement machine that:

(A) Is a matchup or lineup game; and

(B) Rewards a successful player as provided in subparagraph (C), (D), or (E) of paragraph (2.2) of this Code section.

(3) 'Commissioner' means the state revenue commissioner.

(3.1) 'Location permit' means the certificate which every business owner or business operator must purchase and display in the location where one or more bona fide coin operated amusement machines are available for commercial use by the public for play in order to operate legally the machine or machines in this state.

(3.2) 'Location permit fee' means the fee paid to obtain the location permit.

(4) 'Master license' means the certificate which every owner of a bona fide coin operated amusement machine must purchase and display in the owner´s or operator´s place of business where the machine is located for commercial use by the public for play in order to legally operate the machine in the state.

(4.1) 'Net receipts' means the entire amount of moneys received from the public for play of an amusement machine, minus the amount of expenses for noncash redemption of winnings from the amusement machine, and minus the amount of moneys refunded to the public for malfunction of the amusement machine.

(5) 'Operator' means any person, individual, firm, company, association, corporation, or other business entity who exhibits, displays, or permits to be exhibited or displayed, in a place of business other than his own, any bona fide coin operated amusement machine in this state.

(6) 'Owner' means any person, individual, firm, company, association, corporation, or other business entity owning any bona fide coin operated amusement machine in this state.

(7) 'Permit fee' means the annual per machine charge which every owner of a bona fide coin operated amusement machine in commercial use must purchase and display in either the owner´s or operator´s place of business pay in order to legally operate the machine in the state.

(8) 'Sticker' means the decal issued for every bona fide coin operated amusement machine to show proof of payment of the permit fee."

SECTION 8.

Said chapter is further amended by adding a new Code section to read as follows:

"48-17-1.1.

The commissioner is authorized and empowered, subject to the provisions of this chapter, to act in the name of and on behalf of this state to institute any action or judicial proceeding to collect any license fees, location permit fees, or other fees or taxes on bona fide coin operated amusement machines that are due to the state and to take other actions authorized by this chapter with regard to licensees, applicants, and owners or possessors of bona fide coin operated amusement machines."

SECTION 9.

Said chapter is further amended by revising Code Section 48-17-2, relating to license fees, as follows:

"48-17-2.

(a) Every owner, except an owner holding a bona fide coin operated amusement machine solely for personal use or resale, who offers others the opportunity to play for a charge, whether directly or indirectly, any bona fide coin operated amusement machine shall pay annual master license fees as follows:

(1) Level one license. For Class A machines:

(A) For five or fewer machines, the owner shall pay a master license fee of $250.00. (B) In the event such owner acquires a sixth or greater number of machines during a calendar year which require a certificate for lawful operation under this chapter so that the total number of machines owned does not exceed 60 machines or more, such owner shall pay an additional master license fee of $1,250.00;

(2) Level two license. (A) For six or more machines but not more than 60 machines, the owner shall pay a master license fee of $1,500.00.

(B) For six or more machines but not more than 60 machines, the owner shall pay a master license fee of $1,500.00. In the event such owner acquires a sixty-first or greater number of machines during a calendar year which require a certificate for lawful operation under this chapter, such owner shall pay an additional master license fee of $1,000.00; or

(C)(3) Level three license. For 61 or more machines, the owner shall pay a master license fee of $2,500.00; and

(2) For any number of Class B machines, the owner shall pay a master license fee of $5,000.00.

The cost of the license shall be paid to the commissioner by company check, cash, cashier´s check, or money order. Upon said payment, the commissioner shall issue a master license certificate to the owner. The master license fee levied by this chapter Code section shall be collected by the commissioner on an annual basis, provided that an owner may purchase a six-month master license during the calendar year for $175.00 for a level one license, $1,050.00 for a level two license, or $1,750.00 for a level three license for one-half the applicable annual fee. For the year 2008 only, the amount of the master license fee shall be calculated by dividing the amount of the annual fee by 12 and multiplying the quotient by the number of months remaining in the year when the license is issued. The commissioner may establish procedures for master license collection and set due dates for these license payments. No refund or credit of the master license charge levied by this chapter Code section may be allowed to any owner who ceases the operation of bona fide coin operated amusement machines prior to the end of any calendar year.

(a.1) Every business owner or business operator, as defined in Code Section 48-17-1, shall pay an annual location permit fee for each bona fide coin operated amusement machine offered to the public for play. The annual location permit fee shall be $10.00 for each Class A machine and $125.00 for each Class B machine. The location permit fee shall be paid to the commissioner by company check, cash, cashier´s check, or money order. Upon payment, the commissioner shall issue a location permit certificate that shall state the number of bona fide coin operated amusement machines permitted for each class without further description or identification of specific machines. The commissioner may establish procedures for location permit fee collection and set due dates for payment of such fees. For the year 2008 only, the amount of the location permit fee shall be calculated by dividing the amount of the annual fee by 12 and multiplying the quotient by the number of months remaining in the year when the license is issued. No refund or credit of the location permit fee shall be allowed to any business owner or business operator who ceases to offer bona fide coin operated amusement machines to the public for commercial use prior the end of any calendar year.

(b) A copy of an owner´s master license and the business owner´s or business operator´s location permit shall be prominently displayed at all locations where the owner has and business owner or business operator have bona fide coin operated amusement machines available for commercial use and for play by the public to evidence the payment of the fee fees levied under this Code section.

(c) Each master license and each location permit shall not list the name and address of the owner but shall have a control number which corresponds with the control number issued on the permit sticker to allow for effective monitoring of the licensing and permit system or business owner or business operator, as applicable.

(d) The commissioner may provide a duplicate original master license certificate or location permit certificate if the original master license certificate has been lost, stolen, or destroyed. The fee for a duplicate original master license certificate is $100.00. If the original master license certificate is lost, stolen, or destroyed, a sworn, written statement must be submitted explaining the circumstances by which the master license certificate was lost, stolen, or destroyed and including the number of the lost, stolen, or destroyed master license certificate, if applicable, before a duplicate original master license certificate can be issued. A master license certificate for which a duplicate master license certificate has been issued is void.

(d.1) Each master license issued for bona fide coin operated amusement machines shall include the following:

'GEORGIA LAW PROHIBITS GIVING OR RECEIPT OF MONEY FOR WINNING A GAME OR GAMES ON THIS AMUSEMENT MACHINE; GIVING OR RECEIPT OF MONEY FOR FREE REPLAYS WON ON THIS AMUSEMENT MACHINE; GIVING OR RECEIPT OF MONEY FOR ANY MERCHANDISE, PRIZE, TOY, GIFT CERTIFICATE, OR NOVELTY WON ON THIS AMUSEMENT MACHINE; OR AWARDING ANY MERCHANDISE, PRIZE, TOY, GIFT CERTIFICATE, OR NOVELTY OF A VALUE EXCEEDING $5.00 FOR A SINGLE PLAY OF THIS MACHINE.'

(e) A master license or permit issued under this chapter Code section:

(1) Is effective for a single business entity;

(2) Vests no property or right in the licensee holder of the license or permit except to conduct the licensed or permitted business during the period the license or permit is in effect;

(3) Is nontransferable, nonassignable by and between owners or business owners and business operators, and not subject to execution; and

(4) Expires upon the death of an individual licensee holder of a license or permit or upon the dissolution of any other licensee holder of a license or permit.

(f) An application for the renewal of a license or permit must be made to the commissioner by December 1 of each year.

(g) Acceptance of a master license or permit issued under this chapter Code section constitutes consent by the licensee and the business owner or business operator of the business where bona fide coin operated amusement machines are available for commercial use and for play by the public that the commissioner or his the commissioner´s agents may freely enter the licensed business premises where the licensed and permitted machines are located during normal business hours for the purpose of ensuring compliance with this chapter.

(h) An application for a master license or permit to do business under this chapter shall contain a complete statement regarding the ownership of the business to be licensed or the business where the permitted machines are to be located. This statement of ownership shall specify the same information that is required of by the application to secure a sales tax number for the State of Georgia.

(i) The An application for a master license shall be accompanied by either the annual or semiannual fee plus the required permit fee due for each machine. Additional per machine permits can be purchased during the year if needed by the owner. An application for a location permit shall be accompanied by either the annual or semiannual location permit fee.

(j) The statement of ownership information which is contained in the application will be treated in the same manner as sales tax information records maintained by the department An application is subject to public inspection.

(k) A renewal application filed on or after January 1, but before the master license or permit expires, shall be accompanied by a late fee of $125.00. If an owner´s master license has been expired for more than 90 days, the owner may not renew the master license. A master license or location permit that has been expired for more than 90 days may not be renewed. In such a case, the owner shall obtain a new master license or the business owner or business operator shall obtain a new location permit, as applicable, by complying with the requirements and procedures for obtaining an original master license or location permit.

(l) An owner A holder of a license or location permit who properly completes the application and remits all fees with it by the due date may continue to operate bona fide coin operated amusement machines after the expiration date if its license or permit renewal has not been issued, unless the licensee holder of the license or permit is notified by the commissioner prior to the license expiration date of a problem with the license renewal."

SECTION 10.

Said chapter is further amended by revising Code Section 48-17-3, relating to refund of license, as follows:

"48-17-3.

(a) No refund is allowed for fees for a master license or location permit except as follows:

(1) The owner holder of the license or permit makes a written request to the commissioner for a refund prior to the beginning of the calendar year for which it was purchased;

(2) The owner holder of the license or permit makes a written request prior to the issuance of the master license or registration location permit certificate;

(3) The owner holder of the license or permit makes a written request for a refund claiming the master license or registration location permit certificate was mistakenly purchased due to reliance on incorrect information from the commissioner;

(4) The processing of the master license or location permit is discontinued; or

(5) The issuance of the master license or location permit is denied.

(b) Before a refund will be allowed if the renewal of a master license or location permit is denied, the commissioner shall verify that the applicant has no machines in operation and does not possess any machines except those that are exempt from the fees. If a master license or location permit is not issued, the commissioner may retain $100.00 to cover administrative costs.

(c) No refund will be allowed if the owner holder of the license or permit has an existing liability for any other fees or taxes due. Any refund will be applied to the existing liability due."

SECTION 11.

Said chapter is further amended by revising Code Section 48-17-4, relating to refusal to issue or renew license, as follows:

"48-17-4.

(a) The commissioner shall not renew a master license or location permit for a business under this chapter and shall suspend for any period of time or cancel a master license or location permit if the commissioner finds that the applicant or licensee holder of a license or permit is indebted to the state for any fees, costs, penalties, or delinquent fees.

(b) The commissioner shall not issue or renew a license for a business under this chapter if the applicant does not designate and maintain an office in this state or if the applicant does not permit inspection by the commissioner of his the place of business or of all records which the applicant or licensee holder of a license or permit is required to maintain.

(c) The commissioner may refuse to issue or renew a master license or location permit or may revoke or suspend a master license or location permit issued under this chapter if:

(1) The licensee or applicant or holder of a license or permit has intentionally violated a provision of this chapter, or a regulation promulgated under this chapter, or any provision of Chapter 12 of Title 16;

(2) The licensee or applicant or holder of a license or permit has intentionally failed to answer a question or has intentionally made a false statement in or in connection with his or her application or renewal;

(3) The licensee or applicant or holder of a license or permit used coercion to accomplish a purpose or to engage in conduct regulated by the commissioner;

(4) A licensee or applicant that An applicant or holder of a license or permit allows the use of its master license certificate, location permit, or per machine permit stickers by any other business entity or person who owns or operates bona fide coin operated amusement machines available for commercial use and available to the public for play. If such unauthorized use occurs, the commissioner may fine the licensee holder of a license or permit as follows:

(A) One hundred and fifty dollars for each improper use of a per machine permit sticker; and

(B) One thousand dollars for each improper use of a master license certificate or location permit.

In addition, the commissioner is authorized to seize the machines in question and assess the master license fee, and permit fees, and location permit fees as required by law and to assess the costs of such seizure to the owner or operator of the machines holder of a license or permit; or

(5) Failure to suspend or revoke the license or location permit would be contrary to the intent and purpose of this chapter.

(d) The commissioner, on the request of a licensee holder of a license or permit or applicant for a license or location permit, shall conduct a hearing to ascertain whether a licensee or the applicant for a license or location permit or holder of a license or permit has engaged in conduct which would be grounds for revocation, suspension, or refusal to issue or renew a license or location permit."

SECTION 12.

Said chapter is further amended by revising Code Section 48-17-5, relating to right to notice and hearing, as follows:

"48-17-5.

(a) An applicant or licensee holder of a license or permit is entitled to at least 30 days´ written notice and, if requested, a hearing in the following instances:

(1) After an application for an original or renewal license or location permit has been refused;

(2) Before the commissioner may revoke a license or location permit; or

(3) Before the commissioner may invoke any other sanctions provided by this chapter. For purposes of this paragraph, sanctions shall not include:

(A) Issuance of a citation;

(B) Imposition of a late fee, penalty fee, or interest penalty under subsection (k) of Code Section 48-17-2, Code Section 48-17-11, or subsection (a) of Code Section 48-17-13; or

(b) The written notice provided by this Code section may be served personally by the commissioner or an authorized representative or sent by United States certified mail or statutory overnight delivery addressed to the applicant, licensee, or registration certificate or holder of a license or permit at its last known address. In the event that notice cannot be effected by either of these methods after due diligence, the commissioner may prescribe any reasonable method of notice calculated to inform a person of average intelligence and prudence of the commissioner´s action, including publishing the notice in a newspaper of general circulation in the area in which the applicant, licensee, or registration certificate or holder of a license or permit conducts its business activities. The written notice shall state with particularity the basis upon which the commissioner is taking the proposed actions."

SECTION 13.

Said chapter is further amended by revising Code Section 48-17-6, relating to delivery of order refusing application or imposing sanction, as follows:

"48-17-6.

(a) The commissioner shall deliver to the applicant or licensee holder of a license or permit a written copy of the order refusing an application or renewal application, revoking a master license or location permit, or imposing any other sanction provided in this chapter issued after any required hearing.

(b) Delivery of the commissioner´s order may be given by:

(1) Personal service upon an individual applicant or licensee holder of a license or permit;

(2) Personal service upon any officer, director, partner, trustee, or receiver, as the case may be;

(3) Personal service upon the person in charge of the business premises, temporarily or otherwise, of the applicant or licensee holder of a license or permit;

(4) Sending such notice by United States certified mail or statutory overnight delivery addressed to the business premises of the applicant or licensee holder of a license or permit; or

(5) Posting notice upon the outside door of the business premises of the applicant or licensee holder of a license or permit.

SECTION 14.

Said chapter is further amended by revising Code Section 48-17-9, relating to payment and collection of annual permit fee, as follows:

"48-17-9.

(a) Every owner, except an owner holding a coin operated machine solely for personal use or resale, who offers others the opportunity to play for a charge, whether direct or indirect, any bona fide coin operated amusement machine shall pay a uniform an annual permit fee of $25.00 per for each bona fide coin operated amusement machine in the amount of $25.00 for each Class A machine and $125.00 for each Class B machine. The fee shall be paid to the commissioner by company check, cash, cashier´s check, or money order. Upon payment, the commissioner shall issue a sticker for each $25.00 payment for each coin operated machine. The annual fees levied by this chapter will shall be collected by the commissioner on an annual basis. The commissioner may establish procedures for annual collection and set due dates for the fee payments. No refund or credit of the annual fee levied by this chapter shall be allowed to any owner who ceases the exhibition or display of any coin operated machine prior to the end of any calendar year.

(b) The sticker issued by the commissioner to evidence the payment of the fee under this Code section shall be securely attached to the machine. Owners may transfer stickers from one machine to another and from location to location so long as all machines in commercial use available for play by the public have a sticker and the owner uses the stickers only for machines that it owns.

(c) Each permit sticker shall not list the name of the owner but shall have a control number which corresponds with the control number issued on the master license certificate to allow for effective monitoring of the licensing and permit system. Permit stickers are only required for bona fide coin operated amusement machines in commercial use available to the public for play at a location.

(d) Each permit sticker issued for a bona fide coin operated amusement machine which rewards a winning player exclusively with free replays, noncash redemption merchandise, prizes, toys, gift certificates, or novelties; or points, tokens, tickets, or other evidence of winnings that may be exchanged for free replays or noncash redemption merchandise, prizes, toys, gift certificates, or novelties, in accordance with the provisions of subsections (b) through (d) of Code Section 16-12-35 shall include the following:

'GEORGIA LAW PROHIBITS THE PAYMENT OR RECEIPT OF ANY MONEY FOR REPLAYS OR MERCHANDISE AWARDED FOR PLAYING THIS MACHINE. O.C.G.A. SECTION 16-12-35.'

(d)(e) The commissioner may provide a duplicate permit sticker if a valid permit sticker has been lost, stolen, or destroyed. The fee for a duplicate permit sticker shall be $10.00. If a permit sticker is lost, stolen, or destroyed, a sworn, written statement must be submitted explaining the circumstances by which the permit sticker was lost, stolen, or destroyed and including the number of the lost, stolen, or destroyed permit before a replacement permit can be issued. A permit for which a duplicate permit sticker has been issued is void."

SECTION 15.

Said chapter is further amended by revising Coded Section 48-17-11, relating to permit fees for additional machines, as follows:

"48-17-11.

If an owner purchases or receives additional coin operated machines during the calendar year, the $25.00 applicable annual 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 equal to twice the applicable annual permit fee shall be assessed by the commissioner for every machine in operation without a permit sticker."

SECTION 16.

Said chapter is further amended by revising subsections (a) and (g) of Code Section 48-17-13, relating to criminal violations, as follows:

"(a) If any owner or operator of any bona fide coin operated amusement machine in this state shall violate any provision of this chapter or any rule and regulation promulgated under this chapter, the commissioner may investigate the violation and may seek sanctions, including late fees of $50.00 equal to twice the applicable annual permit fee for failure to pay timely permit sticker fees, $125.00 $500.00 for failure to pay timely the master license fee, suspension or revocation of a license, seizure of equipment, interest penalty, and debarment for repeat offenders."

"(g) The commissioner or an authorized representative of the commissioner may seal in a manner that will prevent its full operation any such bona fide coin operated amusement machine that is in commercial use available to the public for play whose master license or sticker under this chapter has been suspended or revoked, upon which the fee has not been paid, or that is not registered with the commissioner under this chapter. Whoever shall break the seal affixed by the commissioner or an authorized representative of the commissioner without the commissioner´s approval or whoever shall provide in commercial use available to the public for play any such bona fide coin operated amusement machine after said seal has been broken without the commissioner´s approval or whoever shall remove any bona fide coin operated amusement machine from a location after the same has been sealed by the commissioner shall be guilty of a misdemeanor. The commissioner shall charge a reasonable fee of $75.00 for the release of any bona fide coin operated amusement machine which is sealed. The fee shall be paid to the commissioner."

SECTION 17.

Said chapter is further amended by revising Code Section 48-17-14, relating to validity of prior existing obligations to state, as follows:

"48-17-14.

(a) All taxes, fees, penalties, and interest accruing to the State of Georgia under any other provision of this title as it existed prior to January 1, 1993, the effective date of the amendment of this Code section shall be and remain valid and binding obligations to the State of Georgia for all taxes, penalties, and interest accruing under the provisions of prior or preexisting laws and all such taxes, penalties, and interest now or hereafter becoming delinquent to the State of Georgia prior to January 1, 1993, the effective date of the amendment of this Code section are expressly preserved and declared to be legal and valid obligations to the state.

(b) The enactment and amendment of this chapter shall not affect offenses committed or prosecutions begun under any preexisting law, but any such offenses or prosecutions may be conducted under the law as it existed at the time of the commission of the offense.

(c) Nothing in this chapter shall be construed or have the effect to license, permit, authorize, or legalize any machine, device, table, or bona fide coin operated amusement machine the keeping, exhibition, operation, display, or maintenance of which is in violation of the laws or Constitution of this state."

SECTION 18.

Said chapter is further amended by revising Code Section 48-17-15, relating to limitation on percent of annual income derived from machines, as follows:

"48-17-15.

(a) In this Code section and in Code Section 48-17-17, 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 a business at any one business location from the sale of goods and services and the commission earned at any one business location on the sale of goods and 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 and 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 Class B bona fide coin operated amusement machine or machines are situated from such Class B bona fide coin operated amusement machines that provide for noncash redemption as described in subsection (c) or (d) of Code Section 16-12-35.

(c) For each business location which offers to the public one or more Class B bona fide coin operated amusement machines, the business owner or business operator shall prepare a monthly verified report setting out separately the gross retail receipts from the Class B bona fide coin operated amusement machines and the gross retail receipts for 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 holder of a license or permit, refuse to issue or renew a location permit or master license, or may revoke or suspend a location permit or master license for single or repeated violations of subsection (a) (b) of this Code section."

SECTION 19.

Said chapter is further amended by adding new Code sections to read as follows:

"48-17-16.

(a) For single or repeated violations of this chapter by a business owner or business operator who offers one or more bona fide coin operated amusement machines for play by the public, the commissioner may impose the following penalties on such a business owner or business operator:

(1) A civil fine in an amount specified in rules and regulations promulgated in accordance with this chapter; or

(2) For a third or subsequent offense, a suspension or revocation of the privilege of offering one or more bona fide coin operated amusement machines for play by the public.

(b) Before a penalty is imposed in accordance with this Code section, a business owner or