C SB431 127907
User Manual: SB431
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Senate Bill 431
By: Senators Hill of the 32nd and Loudermilk of the 52nd
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 10-1-393, relating to unfair or deceptive practices in consumer
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transactions unlawful, so as to further define unlawful lotteries with regard to promotions;2
to amend Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to3
offenses against public health and morals, so as to revise a definition; to provide for the4
applicability of certain provisions to certain games and devices; to revise the prohibition5
regarding certain noncash redemption items; to amend Title 48 of the Official Code of6
Georgia Annotated, relating to revenue and taxation, so as to revise definitions relating to7
coin operated amusement machines; to provide an exception from a limitation on the8
allowable number of such machines at the same location; to authorize local governments to9
adopt any combination of a list of ordinance provisions relating to bona fide coin operated10
amusement machines; to provide for related matters; to provide for an effective date and11
applicability; to repeal conflicting laws; and for other purposes.12
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13
SECTION 1.14
Code Section 10-1-393, relating to unfair or deceptive practices in consumer transactions15
unlawful, is amended in paragraph (16) of subsection (b) by revising subparagraph (N) and16
adding a new subparagraph to read as follows:17
"(N) Any promotion involving an element of chance which does not conform with the18
provisions of this paragraph shall be considered an unlawful lottery as defined in Code19
Section 16-12-20. Except as provided in Code Section 16-12-35 and Chapter 17 of20
Title 48, any promotion involving an element of chance which involves the playing of21
a game on a computer, mechanical device, or electronic device at a place of business22
in this state shall be considered an unlawful lottery as defined in Code Section 16-12-2023
and shall not be permitted under this chapter. Any promotion involving the playing of24
a no-skill game on a computer, mechanical device, or electronic device at a place of25
business in this state shall be considered an unlawful lottery as defined in Code26
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Section 16-12-20. The administrator may seek and shall receive the assistance of the27
prosecuting attorneys of this state in the commencement and prosecution of persons28
who promote and sponsor promotions which constitute an unlawful lottery;29
(N.1) All prizes offered and awarded shall be noncash prizes only and shall not be30
redeemable for cash;".31
SECTION 2.32
Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to offenses against33
public health and morals, is amended by revising paragraph (4) of Code Section 16-12-20,34
relating to definitions, as follows:35
"(4) 'Lottery' means any scheme or procedure whereby one or more prizes are distributed36
by chance among persons who have paid or promised consideration for a chance to win37
such prize, whether such scheme or procedure is called a pool, lottery, raffle, gift, gift38
enterprise, sale, policy game, or by some other name. Except as otherwise provided in39
Code Section 16-12-35, a lottery shall also include the payment of cash or other40
consideration or the payment for merchandise or services and the option to participate in41
or play, even if others can participate or play for free, a no skill game or to participate for42
cash, other consideration, other evidence of winnings, or other noncash prizes by lot or43
in a finite pool on a computer, mechanical device, or electronic device whereby the player44
is able to win a cash or noncash prize, other consideration, or other evidence of winnings.45
A lottery shall also include the organization of chain letter or pyramid clubs as provided46
in Code Section 16-12-38. A lottery shall not mean a:47
(A) Promotional giveaway or contest which conforms with the qualifications of a48
lawful promotion specified in paragraph (16) of subsection (b) of Code49
Section 10-1-393;50
(B) Scheme whereby a business gives away prizes to persons selected by lot if such51
prizes are made on the following conditions:52
(i) Such prizes are conducted as advertising and promotional undertakings in good53
faith solely for the purpose of advertising the goods, wares, and merchandise of such54
business; and55
(ii) No person to be eligible to receive such prize shall be required to:56
(I) Pay any tangible consideration to the operator of such business in the form of57
money or other property or thing of value;58
(II) Purchase any goods, wares, merchandise, or anything of value from such59
business; or60
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(III) Be present or be asked to participate in a seminar, sales presentation, or any
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other presentation, by whatever name denominated, in order to win such prizes; or62
and63
(iii) The prizes awarded shall be noncash prizes and cannot be awarded based upon64
the playing of a game on a computer, mechanical device, or electronic device at a65
place of business in this state;66
(C) Raffle authorized under Code Section 16-12-22.1; or67
(D) National or regional promotion, contest, or sweepstakes conducted by any68
corporation or wholly owned subsidiary or valid franchise of such corporation, either69
directly or through another entity, provided that, at the time of such promotion, contest,70
or sweepstakes, such corporation:71
(i) Is registered under the federal Securities Exchange Act of 1934; and72
(ii) Has total assets of not less than $100 million.73
The provisions of this part shall not be applicable to games offered by the Georgia74
Lottery Corporation pursuant to Chapter 27 of Title 50."75
SECTION 3.76
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is77
amended by revising paragraphs (2.2) and (2.3) of Code Section 48-17-1, relating to78
definitions relative to coin operated amusement machines, as follows:79
"(2.2) 'Class A machine' means a bona fide coin operated amusement machine that is not80
a Class B machine, does not allow a successful player to carry over points won on one81
play to a subsequent play or plays, and:82
(A) Provides no reward to a successful player; or83
(B) Rewards a successful player only with free replays or additional time to play;84
(C) Rewards a successful player with noncash merchandise, prizes, toys, gift85
certificates, or novelties in compliance with the provisions of subsection (c) or86
paragraph (1) of subsection (d) of Code Section 16-12-35, and does not reward a87
successful player with any item prohibited as a reward in subsection (i) of Code88
Section 16-12-35 or any reward redeemable as an item prohibited as a reward in89
subsection (i) of Code Section 16-12-35;90
(D) Rewards a successful player with points, tokens, tickets, or other evidence of91
winnings that may be exchanged only for items listed in subparagraph (C) of this92
paragraph; or93
(E) Rewards a successful player with any combination of items listed in94
subparagraphs (B), (C), and (D) of this paragraph.95
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(2.3) 'Class B machine' means a bona fide coin operated amusement machine that
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rewards a successful player with any combination of items listed in subparagraphs97
(d)(1)(B) and (d)(1)(C) of Code Section 16-12-35 allows a successful player to accrue98
points on the machine and carry over points won on one play to a subsequent play or99
plays in accordance with paragraph (2) of subsection (d) of Code Section 16-12-35 and:100
(A) Rewards a successful player in compliance with the provisions of paragraphs (1)101
and (2) of subsection (d) of Code Section 16-12-35; and102
(B) Does not reward a successful player with any item prohibited as a reward in103
subsection (i) of Code Section 16-12-35 or any reward redeemable as an item104
prohibited as a reward in subsection (i) of Code Section 16-12-35."105
SECTION 4.106
Said title is further amended by adding a new Code section to read as follows:107
"48-17-17.108
In addition to the state regulatory provisions regarding bona fide coin operated amusement109
machines contained in Code Section 16-12-35 and this chapter, the governing authority of110
any county or municipal corporation shall be authorized to enact and enforce an ordinance111
which includes any or all of the following provisions:112
(1) Prohibiting the offering to the public of more than nine Class B bona fide coin113
operated amusement machines that reward the player exclusively with noncash114
merchandise, prizes, toys, gift certificates, or novelties at the same business location;115
(2) Requiring the owner or operator of a business location which offers to the public any116
bona fide coin operated amusement machine that rewards the player exclusively as117
described in subsection (d) of Code Section 16-12-35 to inform all employees of the118
prohibitions and penalties set out in subsections (e), (f), and (g) of Code119
Section 16-12-35;120
(3) Requiring the owner or possessor of any bona fide coin operated amusement machine121
that rewards the player exclusively as described in subsection (d) of Code122
Section 16-12-35 to inform each business owner or business operator of the business123
location where such machine is located of the prohibitions and penalties set out in124
subsections (e), (f), and (g) of Code Section 16-12-35;125
(4) Providing for the suspension or revocation of a license granted by such local126
governing authority to manufacture, distribute, or sell alcoholic beverages or for the127
suspension or revocation of any other license granted by such local governing authority128
as a penalty for conviction of the business owner or business operator of a violation of129
subsection (e), (f), or (g) of Code Section 16-12-35, or both. An ordinance providing for130
the suspension or revocation of a license shall conform to the due process guidelines for131
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granting, refusal, suspension, or revocation of a license for the manufacture, distribution,
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or sale of alcoholic beverages set out in subsection (b) of Code Section 3-3-2;133
(5) Providing for penalties, including fines or suspension or revocation of a license as134
provided in paragraph (4) of this subsection, or both, for a violation of any ordinance135
enacted pursuant to this subsection; provided, however, that a municipal corporation shall136
not be authorized to impose any penalty greater than the maximum penalty authorized by137
such municipal corporation's charter;138
(6) Requiring any business owner or business operator subject to paragraph (1) of139
subsection (b) of Code Section 48-17-15 to provide to the local governing authority a140
copy of each verified monthly report prepared in accordance with such Code section,141
incorporating the provisions of such Code section in the ordinance, and providing for any142
and all of the penalties authorized by subsection (d) of Code Section 48-17-15;143
(7) Requiring the business owner or business operator of any business location which144
offers to the public one or more bona fide coin operated amusement machines to post145
prominently a notice including the following or substantially similar language:146
'GEORGIA LAW PROHIBITS PAYMENT OR RECEIPT OF MONEY FOR147
WINNING A GAME OR GAMES ON THIS AMUSEMENT MACHINE; PAYMENT148
OR RECEIPT OF MONEY FOR FREE REPLAYS WON ON THIS AMUSEMENT149
MACHINE; PAYMENT OR RECEIPT OF MONEY FOR ANY MERCHANDISE,150
PRIZE, TOY, GIFT CERTIFICATE, OR NOVELTY WON ON THIS AMUSEMENT151
MACHINE; OR AWARDING ANY MERCHANDISE, PRIZE, TOY, GIFT152
CERTIFICATE, OR NOVELTY OF A VALUE EXCEEDING $5.00 FOR A SINGLE153
PLAY OF THIS MACHINE.';154
(8) Providing for restrictions relating to distance from specified structures or uses so long155
as those distance requirements are no more restrictive than such requirements applicable156
to the sale of alcoholic beverages;157
(9) Requiring as a condition for doing business in the jurisdiction disclosure by the158
business owner or business operator of the name and address of the owner of the bona159
fide coin operated amusement machine or machines;160
(10) Requiring that all bona fide coin operated amusement machines are placed and kept161
in plain view and accessible to any person who is at the business location; and162
(11) Requiring a business that offers one or more bona fide coin operated amusement163
machines to the public for play to post its business license or occupation tax certificate."164
SECTION 5.165
This Act shall become effective upon its approval by the Governor or upon its becoming law166
without such approval and shall apply to conduct that occurs on and after such date. It is not167
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the intention of this Act to abate any prosecution undertaken for conduct occurring under the
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law in effect prior to such date, and any offense committed before the effective date of this169
Act shall be prosecuted and punished under the statutes in effect at the time the offense was170
committed.171
SECTION 6.172
All laws and parts of laws in conflict with this Act are repealed.173
