SB254: SB254 "Georgia Hemp Farming Act,"; delta-9-THC in consumable hemp products; provide milligram limits

This bill, as substituted by the House Committee on Regulated Industries, amends the Georgia Lottery for Education Act (O.C.G.A. Chapter 27 of Title 50), which governs coin operated amusement machines like pinball, claw machines, and jukeboxes found in bars, arcades, and convenience stores. It clarifies what counts as a 'bona fide coin operated amusement machine' and a 'Class A machine,' sets dollar limits on noncash prizes those machines can pay out, and allows location owners to run billiards and darts tournaments with gift card prizes. The bill also changes how the Georgia Lottery Corporation disciplines license holders, requiring a progressive system of warnings, fines, and suspensions rather than jumping straight to revocation. It restricts who can collect proceeds from machine play, requires the corporation to study redemption data by July 1, 2027, and moves appeals of corporation decisions and license disputes to the Metro Atlanta Business Case Division of the Superior Court of Fulton County. The law would take effect as soon as the Governor signs it. Notably, although the bill's title in the legislative record references hemp and delta-9-THC limits, the actual substitute text provided contains no hemp or THC provisions; it is entirely about coin operated amusement machine regulation.

• Clarifies the legal definition of a 'bona fide coin operated amusement machine' and a 'Class A machine' under the Georgia Lottery for Education Act (O.C.G.A. § 50-27-70).
• Allows location owners or operators to hold billiards and darts tournaments on their premises and award gift card prizes, while barring other licensees from organizing or funding those tournaments.
• Sets a $50 wholesale value cap on direct machine prizes and a $2 per-play cap on prizes redeemable through gift cards, and requires progressive discipline (warning, fine, suspension, then revocation) for violations.
• Restricts who may receive proceeds from machine play, generally limiting it to master licensees, their employees, location owners, and location operators.
• Moves appeals from Georgia Lottery Corporation decisions and hearing officer rulings on licensee disputes to the Metro Atlanta Business Case Division of the Superior Court of Fulton County.
• Requires the corporation to study, by July 1, 2027, how often lottery products, gift cards, and replays are used as machine winnings and report findings to the General Assembly.

The bill affects businesses that operate coin operated amusement machines such as bars, convenience stores, and arcades, along with the master licensees who supply the machines, the Georgia Lottery Corporation which regulates them, and customers who play these machines for prizes or take part in billiards and darts tournaments at those locations.

Business owners who host these machines would face clearer rules on prize limits and a more predictable, staged discipline process instead of abrupt license revocation. Disputes between licensees would move to a specialized Fulton County court division, and machine players would see capped noncash payouts under the new limits.

• Section 1 revises the definitions of 'bona fide coin operated amusement machine' and 'Class A machine' in O.C.G.A. § 50-27-70, listing specific machine types covered.
• Section 2 adds a new subsection letting location owners or operators run billiards and darts tournaments with gift card prizes, and restricts who can collect machine play proceeds without holding a master license.
• Section 3 sets, starting July 1, 2026, that only replays and gift cards may be used as prizes for Class A machines, and replays, lottery products, and gift cards for Class B machines, with escalating penalties for violations.
• Section 3 also requires a corporation study, due by July 1, 2027, on redemption patterns and machine tampering, reported to the General Assembly.
• Section 4 establishes a progressive discipline scheme (warning, fine, suspension, then suspension/revocation) for license violations under O.C.G.A. § 50-27-73.
• Section 5 moves appeals of Georgia Lottery Corporation or chief executive officer actions to the Metro Atlanta Business Case Division of the Superior Court of Fulton County.
• Section 9 changes how disputes between master licensees and location owners or operators are resolved, including appeal of hearing officer decisions to the same Fulton County court division.
• Section 10 sets the effective date as the date the Governor signs the bill or it otherwise becomes law.

1. 2026-03-18House Committee Favorably Reported By Substitute (House)
2. 2025-04-04House Withdrawn, Recommitted (House)
3. 2025-03-28House Committee Favorably Reported By Substitute (House)
4. 2025-03-11House Second Readers (House)
5. 2025-03-10House First Readers (House)
6. 2025-03-06Senate Passed/Adopted By Substitute (Senate)
7. 2025-03-06Senate Third Read (Senate)
8. 2025-03-03Senate Read Second Time (Senate)

• Bill Cowsert (R, SD-046)Primary sponsor
• Alan Powell (R, HD-033)

1. PassedSenate voteMarch 6, 2025

   29 yea, 27 nay

   Adoption Of Amendment #1 By The Senator From The 29th: Senate Vote #169

2. FailedSenate voteMarch 6, 2025

   27 yea, 29 nay

   Motion To Reconsider Amendment #1: Senate Vote #170

3. PassedSenate voteMarch 6, 2025

   42 yea, 14 nay

   Passage By Substitute: Senate Vote #171

• coin operated amusement machines
• Georgia Lottery Corporation
• gaming regulation
• licensing disputes
• billiards and darts tournaments