House Bill 1197
By: Representatives Powell of the 33rd, Jasperse of the 11th, Wilkerson of the 38th, Oliver of
the 84th, Carpenter of the 4th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 27 of Title 50 of the Official Code of Georgia Annotated, the "Georgia
Lottery for Education Act," so as to authorize certain billiards and darts tournaments and the
prizes therefor; to provide for definitions; to provide for the promulgation of certain rules and
regulations; to provide that progressive discipline shall be used to sanction violations; to
require the Georgia Lottery Corporation to provide certain data; to provide that appeals from
the decision of a hearing officer of the corporation shall be to the Metro Atlanta Business
Case Division of the Superior Court of Fulton County; to provide for the resolution of certain
disputes between master licensees and location owners or location operators; to provide for
an effective date; to provide for related matters; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 27 of Title 50 of the Official Code of Georgia Annotated, the "Georgia Lottery for
Education Act," is amended in Code Section 50-27-71, relating to license fees, issuance of
license, display of license, control number, duplicate certificates, application for license or
renewal, and penalty for noncompliance, by adding a new subsection to read as follows:
<ins>"(p)(1) As used in this subsection, the term:
(A) 'Billiards' shall have the same meaning set forth in paragraph (3) of Code
Section 43-8-1.
(B) 'Darts' means any one of the games played with two or more players who, using
their bare hands, throw small sharp pointed missiles which are known as darts at a
target which is known as a dartboard to accumulate points.
(2) A location owner or a location operator shall be authorized to conduct billiards or
darts tournaments on the premises for which such licensee has a contract for the
installation of bona fide coin operated amusement machines. Such tournaments may be
conducted on bona fide coin operated amusement machines or noncoin operated devices.
The licensee may award prizes to the winners of such tournaments, but such prizes shall
be limited to gift cards or other forms of noncash redemption.
(3) The corporation shall be authorized to promulgate such rules and regulations as are
necessary to implement the provisions of this subsection."
</ins> SECTION 2.
Said chapter is further amended by revising paragraph (2) of subsection (a) of Code
Section 50-27-71.1, relating to gift cards and redemption, and adding a new subsection to
read as follows:
"(2) On and after July 1, 2026:
(A) Only replays and nonreloadable and reloadable gift cards shall be allowed as a
legal form of redemption for Class A machines in addition to any other form of
redemption allowed by law or authorized by the corporation; and
(B) Only replays, lottery products, and nonreloadable and reloadable gift cards shall
be allowed as a legal form of redemption for Class B machines and no other form of
redemption shall be allowed. Any location owner or location operator that provides for
the redemption of products or services, other than replays and lottery products, that are
not on a gift card shall, in addition to any other penalties provided by law, receive a
warning for the first violation and shall be punished by civil penalties for any
subsequent violations that shall be imposed by the corporation in amounts that are
proportional to any amounts inappropriately redeemed; provided, however, that nothing
in this subparagraph shall be construed to eliminate or reduce any administrative
penalty related to a violation of Code Section 16-12-35. <ins>Discipline shall be progressive
in nature to include a warning on the first offense; a fine on the second offense; a
suspension and fine on the third offense; and a suspension, revocation, fine, or
combination thereof on the fourth and subsequent offenses. All violations considered
in one enforcement action shall constitute a single violation for the purpose of assessing
disciplinary penalties."
"(e) Not later than July 1, 2027, the corporation in conjunction with and in cooperation
with the Bona Fide Coin Operated Amusement Machine Operator Advisory Board shall
implement a system for location owners and location operators to track and report to the
corporation the number and amounts of each form of lottery product issued as noncash
redemption for successful plays of bona fide coin operated amusement machines. Such
tracking shall be performed through a digital accounting and point of sale system or other
systems. The data to be reported shall be included in the reports under Code
Section 50-27-84 and shall include, but not be limited to, the number and amounts of each
form of lottery product issued as noncash redemption for successful plays of bona fide coin
operated amusement machines, gift cards, and replays."
</ins> SECTION 3.
Said chapter is further amended by revising subsection (c) of Code Section 50-27-73, relating
to refusal to issue or renew license, revocation or suspension, hearing, and limitation on
issuance of licenses, as follows:
"(c)(1) The corporation may refuse to issue or renew a manufacturer, distributor, or
master license or may revoke or suspend a manufacturer, distributor, or master license
issued under this chapter if:
<ins>(1)(A)</ins> The licensee or applicant has intentionally violated a provision of this chapter
or a regulation promulgated under this chapter;
<ins>(2)(B)</ins> The licensee or applicant has intentionally failed to provide requested
information or answer a question, intentionally made a false statement in or in
connection with his or her application or renewal, or omitted any material or requested
information;
<ins>(3)(C)</ins> The licensee or applicant used coercion to accomplish a purpose or to engage
in conduct regulated by the corporation;
<ins>(4)(D)</ins> A master licensee or applicant allows the use of its master license certificate or
per machine permit stickers by any other business entity or person that 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 corporation may
fine the licensee as follows:
<del>(A)(i)</del> One thousand dollars for each improper use of a per machine permit sticker;
and
<del>(B)(ii)</del> Twenty-five thousand dollars for each improper use of a master license
certificate.
In addition, the corporation is authorized to seize the machines in question and assess
the master license and permit fees as required by law and to assess the costs of such
seizure to the owner or operator of the machines;
<ins>(5)(E)</ins> Failure to suspend or revoke the license would be contrary to the intent and
purpose of this article;
<ins>(6)(F)</ins> The licensee or applicant has engaged in unfair methods of competition and
unfair or deceptive acts or practices as provided in Code Section 50-27-87.1; or
<ins>(7)(G)</ins> Any applicant, or any person, firm, corporation, legal entity, or organization
having any interest in any operation for which an application has been submitted, fails
to meet any obligations imposed by the tax laws or other laws or regulations of this
state.
<ins>(2) Except as provided in subparagraph (D) of paragraph (1) of this subsection, discipline
shall be progressive in nature to include a warning on the first offense; a fine on the
second offense; a suspension and fine on the third offense; and a suspension, revocation,
fine, or combination thereof on the fourth and subsequent offenses. All violations
considered in one enforcement action shall constitute a single violation for the purpose
of assessing disciplinary penalties."
</ins> SECTION 4.
Said chapter is further amended by revising Code Section 50-27-76, relating to judicial
review of action by corporation or chief executive officer, as follows:
"50-27-76.
(a) Appeal by an affected person from all actions of the corporation <del>or chief executive
officer</del> shall be to the <ins>Metro Atlanta Business Case Division of the</ins> Superior Court of
Fulton County. The review shall be conducted by the court and shall be confined to the
record.
(b) The court shall not substitute its judgment for that of the corporation <del>or chief executive
officer</del> as to the weight of the evidence on questions of fact committed to the discretion of
the corporation <del>or chief executive officer.</del> The court may affirm the decision of the
corporation <del>or chief executive officer</del> in whole or in part; the court shall reverse or remand
the case for further proceedings if substantial rights of the appellant have been prejudiced
because the corporation's <del>or chief executive officer's</del> findings, inferences, conclusions, or
decisions are:
(1) In violation of constitutional or statutory provisions;
(2) In excess of the statutory authority of the corporation <del>or chief executive officer;
</del> (3) Made upon unlawful procedures;
(4) Affected by other error of law;
(5) Not reasonably supported by substantial evidence in view of the reliable and
probative evidence in the record as a whole; or
(6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted
exercise of discretion."
SECTION 5.
Said chapter is further amended by revising subsection (c) of Code Section 50-27-81, relating
to administration of article, as follows:
"(c) The chief executive officer <del>may</del> <ins>shall</ins> delegate to an authorized <del>representative any
</del> <ins>hearing officer the</ins> authority given to the chief executive officer by this article, including
the conduct of investigations, imposing of fees and fines, and the holding of hearings."
SECTION 6.
Said chapter is further amended by revising subsection (a) of Code Section 50-27-82, relating
to criminal violations, investigations, seizure and confiscation of machines, repossession, and
sealing of machines, 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 article or any rule and regulation promulgated under
this article, the corporation may investigate the violation and may seek sanctions, including
late fees of $50.00 for failure to pay timely permit sticker fees, $125.00 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. <ins>Discipline shall be progressive in
nature to include a warning on the first offense; a fine on the second offense; a suspension
and fine on the third offense; and a suspension, revocation, fine, or combination thereof on
</ins>
<ins>the fourth and subsequent offenses. All violations considered in one enforcement action
shall constitute a single violation for the purpose of assessing disciplinary penalties."
</ins> SECTION 7.
Said chapter is further amended by revising subsection (a) of Code Section 50-27-85, relating
to penalties for violations by location owners or operators, as follows:
"(a)(1) Except as specifically provided in this article, for single or repeated violations of
this article by a location owner or location operator who offers one or more bona fide
coin operated amusement machines for play by the public, the corporation may impose
the following penalties on such a location owner or location operator:
<ins>(1)(A)</ins> A civil fine in an amount specified in rules and regulations promulgated in
accordance with this article; or
<ins>(2)(B)</ins> 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.
<ins>(2) Discipline shall be progressive in nature to include a warning on the first offense; a
fine on the second offense; a suspension and fine on the third offense; and a suspension,
revocation, fine, or combination thereof on the fourth and subsequent offenses. All
violations considered in one enforcement action shall constitute a single violation for the
purpose of assessing disciplinary penalties."
</ins> SECTION 8.
Said chapter is further amended by revising paragraphs (1) and (5) of subsection (c) of Code
Section 50-27-102, relating to role of corporation, implementation and certification,
separation of funds and accounting, and disputes, as follows:
"(c)(1) As a condition of the license issued pursuant to this article, no master licensee or
location owner or location operator shall replace or remove a Class A machine or Class B
machine from a location until the master licensee and location owner or location operator
certify to the corporation that there are no disputes regarding any agreement, distribution
of funds, or other claim between the master licensee and location owner or location
operator; provided, however, that this certification shall not be required if a master
licensee is replacing its own Class A machine or Class B machine at a location. If either
the master licensee or location owner or location operator is unable to make the
certification required by this Code section, the corporation shall refer the dispute to a
hearing officer as set forth in this subsection. <ins>If a master licensee certifies that there is
a dispute with a location owner or location operator, which certification causes the
continued generation of revenue from the master licensee's Class A or Class B machine
subject to the alleged dispute pending a decision on the dispute, and, after the hearing
officer's or court's determination, the location owner or location operator is the prevailing
party and the hearing officer or court finds that the action was brought by the master
licensee without substantial justification or was brought for delay or harassment, the
hearing officer or court shall, in addition to any other remedy provided for in this article,
order that any revenues received by or due to the master licensee as a result of the master
licensee's certification of the dispute shall not be kept by the master licensee but shall be
paid to the corporation and the hearing officer or court shall also award the costs of the
proceeding and attorney fees to the location owner or location operator and against the
master licensee. However, if, after the hearing officer's or court's determination, the
master licensee is the prevailing party and the hearing officer or court finds that the action
was defended by the location owner or location operator without substantial justification
or was defended for delay or harassment, the hearing officer or court shall, in addition to
any other remedy provided for in this article, order that any revenues received by or due
to the location owner or location operator as a result of the master licensee's certification
of the dispute shall not be kept by the location owner or location operator but shall be
paid to the corporation and the hearing officer or court shall also award the costs of the
</ins>
<ins>proceeding and attorney fees to the master licensee and against the location owner or
location operator. As used in this paragraph, the term 'without substantial justification'
means substantially frivolous, substantially groundless, or substantially vexatious.
Applicants for licenses shall submit all disputes against existing or previous licensees
under this article, including master licensees, location owners, location operators,
manufacturers, and distributors, to a hearing officer under this paragraph."
</ins> "(5) The decision of the hearing officer may be appealed to the chief executive officer
<del>or his or her designee</del> <ins>Metro Atlanta Business Case Division of the Superior Court of
Fulton County</ins> . The <del>chief executive officer</del> <ins>court</ins> shall not reverse a finding of fact of the
hearing officer if any evidence supports the hearing officer's conclusion. The <del>chief
executive officer</del> <ins>court</ins> shall not reverse a conclusion of law of the hearing officer unless
it was clearly erroneous, arbitrary, and capricious or exceeded the hearing officer's
jurisdiction. <del>The decision of the chief executive officer may be appealed to the Superior
Court of Fulton County, which court shall not reverse the chief executive officer's
findings of fact unless it is against the weight of the evidence as set forth in Code Section
5-5-21, and the chief executive officer's legal conclusions shall not be set aside unless
there is an error of law."
</del> SECTION 9.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 10.
All laws and parts of laws in conflict with this Act are repealed.