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

26 LC 28 0754S The House Committee on Regulated Industries offers the following substitute to SB 254: A BILL TO BE ENTITLED AN ACT To amend Chapter 27 of Title 50 of the Official Code of Georgia Annotated, the "Georgia1 Lottery for Education Act," so as to authorize certain billiards and darts tournaments and the2 prizes therefor; to clarify the definition of what constitutes a bona fide coin operated3 amusement machine and a Class A machine; to provide limitations on who may receive4 proceeds from the play of bona fide coin operated amusement mac hines; to provide for5 definitions; to provide for the promulgation of certain rules and regulations; to provide that6 progressive discipline shall be used to sanction violations; to require the Georgia Lottery7 Corporation to provide certain data; to provide that appeals fr om the decision of a hearing8 officer of the corporation shall be to the Metro Atlanta Busine ss Case Division of the9 Superior Court of Fulton County; to provide for the resolution of certain disputes between10 master licensees and location owners or location operators; to provide for an effective date;11 to provide for related matters; to repeal conflicting laws; and for other purposes.12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 S. B. 254 (SUB) - 1 - 26 LC 28 0754S SECTION 1.14 Chapter 27 of Title 50 of the Official Code of Georgia Annotated, the "Georgia Lottery for15 Education Act," is amended in Code Section 50-27-70, relating t o legislative findings and16 definitions, by revising subparagraph (b)(2)(A) and paragraph ( 3) of subsection (b) as17 follows:18 "(A) 'Bona fide coin operated amusement machine' means every machine of any kind19 or character used by the public to provide amusement or entertainment whose operation20 requires the payment of or the insertion of a coin, bill, other money, token, ticket, card,21 or similar object and the result of whose operation depends in whole or in part upon the22 skill of the player, whether or not it affords an award to a successful player pursuant to23 subsections (b) through (g) of Code Section 16-12-35, and which can be legally shipped24 interstate according to federal law and notwithstanding the fact that the machine may25 be used for other functions or operations unrelated to such amusement or entertainment26 purposes. Examples of bona fide coin operated amusement machines include, but are27 expressly not limited to, the following:28 (i) Pinball machines;29 (ii) Console machines;30 (iii) Video games;31 (iv) Crane machines;32 (v) Claw machines;33 (vi) Pusher machines;34 (vii) Bowling machines;35 (viii) Novelty arcade games;36 (ix) Foosball or table soccer machines;37 (x) Miniature racetrack, football, or golf machines;38 (xi) Target or shooting gallery machines;39 (xii) Basketball machines;40 S. B. 254 (SUB) - 2 - 26 LC 28 0754S (xiii) Shuffleboard games;41 (xiv) Kiddie ride games;42 (xv) Skeeball machines;43 (xvi) Air hockey machines;44 (xvii) Roll down machines;45 (xviii) Trivia machines;46 (xix) Laser games;47 (xx) Simulator games;48 (xxi) Virtual reality machines;49 (xxii) Maze games;50 (xxiii) Racing games;51 (xxiv) Coin operated pool tables or coin operated billiard tab les as defined in52 paragraph (3) of Code Section 43-8-1; and53 (xxv) Any other similar amusement machine which can be legally operated in54 Georgia.55 The term also means a machine of any kind or character used by the public to provide56 music whose operation requires the payment of or the insertion of a coin, bill, other57 money, token, ticket, card, or similar object such as jukeboxes or other similar types of58 music machines."59 "(3) 'Class A machine' means a bona fide coin operated amusement machine that is not60 a Class B machine, does not allow a successful player to carry over points won on one61 play to a subsequent play or plays, and:62 (A) Provides no reward to a successful player;63 (B) Rewards a successful player only with free replays or additional time to play;64 (C) Rewards a successful player with noncash merchandise, priz es, toys, gift65 certificates, or novelties in compliance with the provisions of subsection (c) or66 paragraph (1) of subsection (d) of Code Section 16-12-35, and d oes not reward a67 S. B. 254 (SUB) - 3 - 26 LC 28 0754S successful player with any item prohibited as a reward in subsection (i) of Code Section68 16-12-35 or any reward redeemable as an item prohibited as a reward in subsection (i)69 of Code Section 16-12-35;70 (D) Rewards a successful player with points, tokens, tickets, or other evidence of71 winnings that may be e xchanged only for items listed in subpara graph (C) of this72 paragraph; or73 (E) Rewards a successful player with any combination of items listed in74 subparagraphs (B), (C), and (D) of this paragraph.75 Notwithstanding the provisions of Code Section 16-12-35 or any other Code section to76 the contrary, the permitted noncash redemption award per play f or a Class A machine77 shall not exceed a wholesale va lue of $50.00 if the redemption is for a prize, toy, or78 novelty that can be redeemed directly from such machine. If a machine rewards players79 with reloadable or nonreloadable gift cards pursuant to Code Section 50-27-71.1 directly80 from such machine or rewards players with tickets or other evidence of winning which81 can be redeemed for reloadable or nonreloadable gift cards or which may be otherwise82 redeemed for any approved redemption external to such machine, the permitted noncash83 redemption award per play shall not exceed a wholesale value of $2.00 per play of such84 machine. Any coin operated amusement machine that provides redemptions that are not85 in accordance with this paragraph shall be designated as a Class B machine and shall be86 subject to all requirements of Class B machines set forth in this article."87 SECTION 2.88 Said chapter is further amended in Code Section 50-27-71, relating to license fees, issuance89 of license, display of license, control number, duplicate certificates, application for license90 or renewal, and penalty for noncompliance, by adding new subsections to read as follows:91 S. B. 254 (SUB) - 4 - 26 LC 28 0754S "(p)(1) As used in this subsection, the term:92 (A) 'Billiards' shall have the same meaning set forth in parag raph (3) of Code93 Section 43-8-1.94 (B) 'Darts' means any one of the games played with two or more players who, using95 their bare hands, throw small sharp pointed missiles which are known as darts at a96 target which is known as a dartboard to accumulate points.97 (2) A location owner or a location operator shall be authorize d to conduct billiards or98 darts tournaments on the premises for which such licensee has a contract for the99 installation of bona fide coin operated amusement machines. Such tournaments may be100 conducted on bona fide coin operated amusement machines or noncoin operated devices. 101 The licensee may award prizes to the winners of such tournaments, but such prizes shall102 be limited to gift cards or other forms of noncash redemption. No other licensee shall103 participate in the organization or conducting of such billiards or darts tournaments nor104 shall any other licensee make contributions to or finance, in w hole or in part, such105 billiards or darts tournaments.106 (3) The corporation shall be authorized to promulgate such rules and regulations as are107 necessary to implement the provisions of this subsection.108 (q) No person holding a manufacturer's license or distributor' s license shall receive any109 proceeds from the play of Class A or Class B bona fide coin operated amusement machines110 unless such person also holds a master license. With the exception of the corporation, only111 persons holding a master license, an employee of such master li cense holder, a location112 owner, or a location operator may receive proceeds from the play of such machines."113 SECTION 3.114 Said chapter is further amended by revising paragraph (2) of su bsection (a) of Code115 Section 50-27-71.1, relating to gift cards and redemption, and adding a new subsection to116 read as follows:117 S. B. 254 (SUB) - 5 - 26 LC 28 0754S "(2) On and after July 1, 2026:118 (A) Only replays and nonreloadable and reloadable gift cards s hall be allowed as a119 legal form of redemption for Class A machines in addition to an y other form of120 redemption allowed by law or authorized by the corporation; and121 (B) Only replays, lottery products, and nonreloadable and reloadable gift cards shall122 be allowed as a legal form of redemption for Class B machines a nd no other form of123 redemption shall be allowed. Any location owner or location operator that provides for124 the redemption of products or services, other than replays and lottery products, that are125 not on a gift card shall, in addition to any other penalties pr ovided by law, receive a126 warning for the first violation and shall be punished by civil penalties for any127 subsequent violations that shall be imposed by the corporation in amounts that are128 proportional to any amounts inappropriately redeemed; provided, however, that nothing129 in this subparagraph shall be construed to eliminate or reduce any administrative130 penalty related to a violation of Code Section 16-12-35. Discipline shall be progressive131 in nature to include a warning on the first offense; a fine on the second offense; a132 suspension and fine on the third offense; and a suspension, rev ocation, fine, or133 combination thereof on the fourth and subsequent offenses. All violations considered134 in one enforcement action shall constitute a single violation for the purpose of assessing135 disciplinary penalties."136 "(e) Not later than July 1, 2027, the corporation in conjunctio n with and in cooperation137 with the Bona Fide Coin Operated Amusement Machine Operator Adv isory Board shall138 undertake a study of and make written recommendations to the General Assembly on the139 following subject matters:140 (1) The number and amounts of each form of lottery product iss ued as noncash141 redemption for successful plays of bona fide coin operated amusement machines;142 (2) The number and amounts of gift cards and replays redeemed for successful plays of143 bona fide coin operated amusement machines;144 S. B. 254 (SUB) - 6 - 26 LC 28 0754S (3) The nature and amount of tampering with bona fide coin ope rated amusement145 machines by location licensees and other third parties; and146 (4) The number and amounts of unredeemed winnings for successful plays of bona fide147 coin operated amusement machines."148 SECTION 4.149 Said chapter is further amended by revising subsection (c) of Code Section 50-27-73, relating150 to refusal to issue or renew license, revocation or suspension, hearing, and limitation on151 issuance of licenses, as follows:152 "(c)(1) The corporation may refuse to issue or renew a manufacturer, distributor, or153 master license or may revoke or suspend a manufacturer, distrib utor, or master license154 issued under this chapter if:155 (1)(A) The licensee or applicant has intentionally violated a provision of this chapter156 or a regulation promulgated under this chapter;157 (2)(B) The licensee or applicant has intentionally failed to provide requested158 information or answer a question, intentionally made a false st atement in or in159 connection with his or her application or renewal, or omitted any material or requested160 information;161 (3)(C) The licensee or applicant used coercion to accomplish a purpose or to engage162 in conduct regulated by the corporation;163 (4)(D) A master licensee or applicant allows the use of its master license certificate or164 per machine permit stickers by any other business entity or person that owns or operates165 bona fide coin operated amusement machines available for commer cial use and166 available to the public for play. If such unauthorized use occurs, the corporation may167 fine the licensee as follows:168 (A)(i) One thousand dollars for each improper use of a per machine permit sticker;169 and170 S. B. 254 (SUB) - 7 - 26 LC 28 0754S (B)(ii) Twenty-five thousand dollars for each improper use of a maste r license171 certificate.172 In addition, the corporation is authorized to seize the machines in question and assess173 the master license and permit fees as required by law and to as sess the costs of such174 seizure to the owner or operator of the machines;175 (5)(E) Failure to suspend or revoke the license would be contrary to the intent and176 purpose of this article;177 (6)(F) The licensee or applicant has engaged in unfair methods of co mpetition and178 unfair or deceptive acts or practices as provided in Code Section 50-27-87.1; or179 (7)(G) Any applicant, or any person, firm, corporation, legal entity , or organization180 having any interest in any operation for which an application has been submitted, fails181 to meet any obligations imposed by the tax laws or other laws o r regulations of this182 state.183 (2) Except as provided in subparagraph (D) of paragraph (1) of this subsection, discipline184 shall be progressive in nature to include a warning on the firs t offense; a fine on the185 second offense; a suspension and fine on the third offense; and a suspension, revocation,186 fine, or combination thereof on the fourth and subsequent offen ses. All violations187 considered in one enforcement action shall constitute a single violation for the purpose188 of assessing disciplinary penalties."189 SECTION 5.190 Said chapter is further amended by revising Code Section 50-27- 76, relating to judicial191 review of action by corporation or chief executive officer, as follows:192 "50-27-76.193 (a) Appeal by an affected person from all actions of the corpo ration or chief executive194 officer shall be to the Metro Atlanta Business Case Division of the Superior Court of195 S. B. 254 (SUB) - 8 - 26 LC 28 0754S Fulton County. The review shall be conducted by the court and shall be confined to the196 record.197 (b) The court shall not substitute its judgment for that of the corporation or chief executive198 officer as to the weight of the evidence on questions of fact committed to the discretion of199 the corporation or chief executive officer . The court may affirm the decision of the200 corporation or chief executive officer in whole or in part; the court shall reverse or remand201 the case for further proceedings if substantial rights of the appellant have been prejudiced202 because the corporation's or chief executive officer's findings, inferences, conclusions, or203 decisions are:204 (1) In violation of constitutional or statutory provisions;205 (2) In excess of the statutory authority of the corporation or chief executive officer;206 (3) Made upon unlawful procedures;207 (4) Affected by other error of law;208 (5) Not reasonably supported by substantial evidence in view o f the reliable and209 probative evidence in the record as a whole; or210 (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted211 exercise of discretion."212 SECTION 6.213 Said chapter is further amended by revising subsection (c) of Code Section 50-27-81, relating214 to administration of article, as follows:215 "(c) The chief executive officer may shall delegate to an authorized representative any216 hearing officer the authority given to the chief executive officer by this article, including217 the conduct of investigations, imposing of fees and fines, and the holding of hearings."218 S. B. 254 (SUB) - 9 - 26 LC 28 0754S SECTION 7.219 Said chapter is further amended by revising subsection (a) of Code Section 50-27-82, relating220 to criminal violations, investigations, seizure and confiscation of machines, repossession, and221 sealing of machines, as follows:222 "(a) If any owner or operator of any bona fide coin operated amusement machine in this223 state shall violate any provision of this article or any rule and regulation promulgated under224 this article, the corporation may investigate the violation and may seek sanctions, including225 late fees of $50.00 for failure to pay timely permit sticker fees, $125.00 for failure to pay226 timely the master license fee, suspension or revocation of a license, seizure of equipment,227 interest penalty, and debarment for repeat offenders. Discipli ne shall be progressive in228 nature to include a warning on the first offense; a fine on the second offense; a suspension229 and fine on the third offense; and a suspension, revocation, fine, or combination thereof on230 the fourth and subsequent offenses. All violations considered in one enforcement action231 shall constitute a single violation for the purpose of assessing disciplinary penalties."232 SECTION 8.233 Said chapter is further amended by revising subsection (a) of Code Section 50-27-85, relating234 to penalties for violations by location owners or operators, as follows:235 "(a)(1) Except as specifically provided in this article, for single or repeated violations of236 this article by a location owner or location operator who offer s one or more bona fide237 coin operated amusement machines for play by the public, the corporation may impose238 the following penalties on such a location owner or location operator:239 (1)(A) A civil fine in an amount specified in rules and regulations promulgated in240 accordance with this article; or241 (2)(B) For a third or subsequent offense, a suspension or revocation of the privilege of242 offering one or more bona fide coin operated amusement machines for play by the243 public.244 S. B. 254 (SUB) - 10 - 26 LC 28 0754S (2) Discipline shall be progressive in nature to include a warning on the first offense; a245 fine on the second offense; a suspension and fine on the third offense; and a suspension,246 revocation, fine, or combination thereof on the fourth and subs equent offenses. All247 violations considered in one enforcement action shall constitute a single violation for the248 purpose of assessing disciplinary penalties."249 SECTION 9.250 Said chapter is further amended by revising paragraphs (1) and (5) of subsection (c) of Code251 Section 50-27-102, relating to role of corporation, implementat ion and certification,252 separation of funds and accounting, and disputes, as follows:253 "(c)(1) As a condition of the license issued pursuant to this article, no master licensee or254 location owner or location operator shall replace or remove a Class A machine or Class B255 machine from a location until the master licensee and location owner or location operator256 certify to the corporation that there are no disputes regarding any agreement, distribution257 of funds, or other claim between the master licensee and locati on owner or location258 operator; provided, however, that this certification shall not be required if a master259 licensee is replacing its own Class A machine or Class B machine at a location. If either260 the master licensee or location owner or location operator is u nable to make the261 certification required by this Code section, the corporation sh all refer the dispute to a262 hearing officer as set forth in this subsection. If a master licensee certifies that there is263 a dispute with a location owner or location operator, which cer tification causes the264 continued generation of revenue from the master licensee's Class A or Class B machine265 subject to the alleged dispute pending a decision on the disput e, and, after the hearing266 officer's or court's determination, the location owner or location operator is the prevailing267 party and the hearing officer or court finds that the action wa s brought by the master268 licensee without substantial justification or was brought for d elay or harassment, the269 hearing officer or court shall, in addition to any other remedy provided for in this article,270 S. B. 254 (SUB) - 11 - 26 LC 28 0754S order that any revenues received by or due to the master licensee as a result of the master271 licensee's certification of the dispute shall not be kept by the master licensee but shall be272 paid to the corporation and the hearing officer or court shall also award the costs of the273 proceeding and attorney fees to the location owner or location operator and against the274 master licensee. However, if, after the hearing officer's or c ourt's determination, the275 master licensee is the prevailing party and the hearing officer or court finds that the action276 was defended by the location owner or location operator without substantial justification277 or was defended for delay or harassment, the hearing officer or court shall, in addition to278 any other remedy provided for in this article, order that any revenues received by or due279 to the location owner or location operator as a result of the master licensee's certification280 of the dispute shall not be kept by the location owner or locat ion operator but shall be281 paid to the corporation and the hearing officer or court shall also award the costs of the282 proceeding and attorney fees to the master licensee and against the location owner or283 location operator. As used in this paragraph, the term 'without substantial justification'284 means substantially frivolous, substantially groundless, or sub stantially vexatious. 285 Applicants for licenses shall submit all disputes against exist ing or previous licensees286 under this article, including master licensees, location owners , location operators,287 manufacturers, and distributors, to a hearing officer under this paragraph."288 "(5) The decision of the hearing officer may be appealed to the chief executive officer289 or his or her designee Metro Atlanta Business Case Division of the Superior Court of290 Fulton County. The chief executive officer court shall not reverse a finding of fact of the291 hearing officer if any evidence supports the hearing officer's conclusion. The chief292 executive officer court shall not reverse a conclusion of law of the hearing officer unless293 it was clearly erroneous, arbitrary, and capricious or exceeded the hearing officer's294 jurisdiction. The decision of the chief executive officer may be appealed to the Superior295 Court of Fulton County, which court shall not reverse the chief executive officer's296 findings of fact unless it is against the weight of the evidence as set forth in Code Section297 S. B. 254 (SUB) - 12 - 26 LC 28 0754S 5-5-21, and the chief executive officer's legal conclusions sha ll not be set aside unless298 there is an error of law."299 SECTION 10.300 This Act shall become effective upon its approval by the Governor or upon its becoming law301 without such approval.302 SECTION 11.303 All laws and parts of laws in conflict with this Act are repealed.304 S. B. 254 (SUB) - 13 -