---
title: HB 903. Georgia Administrative Procedure Act shall apply to all executive branch agencies; provide
collection: bills
id: 2025-2026/hb903
cite_as: HB 903, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb903
md_url: https://georgiacommons.org/bills/2025-2026/hb903.md
text_url: https://georgiacommons.org/bills/2025-2026/hb903/text
source_url: https://www.legis.ga.gov/legislation/71976
date: 2026-03-25
status: engrossed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb902.md
next: https://georgiacommons.org/bills/2025-2026/hb904.md
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omitted: votes and history
omitted_chars: 582
omitted_url: https://georgiacommons.org/bills/2025-2026/hb903.md?full=1
bill_number: HB 903
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-11
last_action: Senate Read Second Time
sponsors:
  - Alan Powell
  - William Werkheiser
  - Steve Tarvin
  - Rick Jasperse
  - Lauren McDonald
  - Bill Cowsert
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB903/2025
upstream_id: 2019388
summaries_model: claude-sonnet-5
topic_tags:
  - coin operated amusement machines
  - Georgia Lottery Corporation
  - gambling regulation
  - licensing disputes
  - arcade games
---

# HB 903. Georgia Administrative Procedure Act shall apply to all executive branch agencies; provide

## Text

The Senate Committee on Judiciary offered the following
substitute to HB 903:
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 clarify the definition of what constitutes a bona fide coin operated
amusement machine and a Class A machine; to provide limitations on who may receive
proceeds from the play of bona fide coin operated amusement machines; 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 50-27-70, relating to legislative findings and
definitions, by revising subparagraph (b)(2)(A) and paragraph (3) of subsection (b) as
follows:
"(A) 'Bona fide coin operated amusement machine' means 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, card,
or similar object and the result of whose operation depends in whole or in part upon the
skill of the player, whether or not it 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 <ins>and notwithstanding the fact that the machine may
be used for other functions or operations unrelated to such amusement or entertainment
purposes.</ins> Examples of bona fide coin operated amusement machines include, but are
expressly not limited to, the following:
(i) Pinball machines;
(ii) Console machines;
(iii) Video games;
(iv) Crane machines;
(v) Claw machines;
(vi) Pusher machines;
(vii) Bowling machines;
(viii) Novelty arcade games;
(ix) Foosball or table soccer machines;
(x) Miniature racetrack, football, or golf machines;
(xi) Target or shooting gallery machines;
(xii) Basketball machines;
(xiii) Shuffleboard games;
(xiv) Kiddie ride games;
(xv) Skeeball machines;
(xvi) Air hockey machines;
(xvii) Roll down machines;
(xviii) Trivia machines;
(xix) Laser games;
(xx) Simulator games;
(xxi) Virtual reality machines;
(xxii) Maze games;
(xxiii) Racing games;
(xxiv) Coin operated pool tables or coin operated billiard tables as defined in
paragraph (3) of Code Section 43-8-1; and
(xxv) Any other similar amusement machine which can be legally operated in
Georgia.
The term also means a 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, card, or similar object such as jukeboxes or other similar types of
music machines."
"(3) 'Class A machine' means a bona fide coin operated amusement machine that is not
a Class B machine, does not allow a successful player to carry over points won on one
play to a subsequent play or plays, and:
(A) Provides no reward to a successful player;
(B) Rewards a successful player only with free replays or additional time to play;
(C) Rewards a successful player with noncash merchandise, prizes, toys, gift
certificates, or novelties in compliance with the provisions of subsection (c) or
paragraph (1) of subsection (d) of Code Section 16-12-35, and does not reward a
successful player with any item prohibited as a reward in subsection (i) of Code Section
16-12-35 or any reward redeemable as an item prohibited as a reward in subsection (i)
of Code Section 16-12-35;
(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.
Notwithstanding the provisions of Code Section 16-12-35 or any other Code section to
the contrary, the permitted noncash redemption award per play for a Class A machine
shall not exceed a wholesale value of $50.00 <ins>if the redemption is for a prize, toy, or
novelty that can be redeemed directly from such machine. If a machine rewards players
with reloadable or nonreloadable gift cards pursuant to Code Section 50-27-71.1 directly
from such machine or rewards players with tickets or other evidence of winning which
can be redeemed for reloadable or nonreloadable gift cards or which may be otherwise
redeemed for any approved redemption external to such machine, the permitted noncash
redemption award per play shall not exceed a wholesale value of $2.00 per play of such
machine. Any coin operated amusement machine that provides redemptions that are not
in accordance with this paragraph shall be designated as a Class B machine and shall be
subject to all requirements of Class B machines set forth in this article."
</ins> SECTION 2.
Said chapter is further 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 new subsections 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. No other licensee shall
participate in the organization or conducting of such billiards or darts tournaments nor
shall any other licensee make contributions to or finance, in whole or in part, such
billiards or darts tournaments.
(3) The corporation shall be authorized to promulgate such rules and regulations as are
necessary to implement the provisions of this subsection.
(q) No person holding a manufacturer's license or distributor's license shall receive any
proceeds from the play of Class A or Class B bona fide coin operated amusement machines
unless such person also holds a master license. With the exception of the corporation, only
persons holding a master license, an employee of such master license holder, a location
owner, or a location operator may receive proceeds from the play of such machines."
</ins> SECTION 3.
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
undertake a study of and make written recommendations to the General Assembly on the
following subject matters:
(1) The number and amounts of each form of lottery product issued as noncash
redemption for successful plays of bona fide coin operated amusement machines;
(2) The number and amounts of gift cards and replays redeemed for successful plays of
bona fide coin operated amusement machines;
</ins>
<ins>(3) The nature and amount of tampering with bona fide coin operated amusement
machines by location licensees and other third parties; and
(4) The number and amounts of unredeemed winnings for successful plays of bona fide
coin operated amusement machines."
</ins> SECTION 4.
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 5.
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 6.
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 7.
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
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 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 9.
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,
</ins>
<ins>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
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
</del>
<del>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 10.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 11.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

A Senate substitute for HB 903 rewrites Georgia's coin operated amusement machine law, allowing billiards and darts tournaments with prizes, setting new redemption limits, requiring progressive discipline for violations, and moving appeals to a specialized Fulton County court division.

### Plain-language summary

This bill amends the Georgia Lottery for Education Act (O.C.G.A. Chapter 27 of Title 50), which regulates coin operated amusement machines like pinball, claw machines, and video games found in bars and arcades. It clarifies what counts as a 'bona fide coin operated amusement machine' and a 'Class A machine,' allows the multi-use function of machines, and lets location owners run billiards or darts tournaments on their premises with gift-card prizes, as long as no other licensee helps organize or fund them.
The bill sets new noncash redemption caps: up to $50 wholesale value per play for machines that pay out prizes directly, but only $2 per play for machines tied to gift cards or other external redemptions. It restricts who can collect machine proceeds to master licensees, their employees, location owners, and location operators. It requires the Georgia Lottery Corporation to use a progressive discipline system (warning, then fine, then suspension and fine, then suspension or revocation) for violations, mandates a 2027 study on redemption and tampering data, moves appeals of corporation decisions to the Metro Atlanta Business Case Division of the Fulton County Superior Court, and creates a process for resolving disputes between master licensees and location owners, including attorney fee awards for frivolous claims. It takes effect when signed by the Governor.

### What it does

- Clarifies that a coin operated amusement machine still counts as such even if it performs other unrelated functions, and updates the Class A machine definition.
- Authorizes location owners or operators to hold billiards or darts tournaments on their premises, with prizes limited to gift cards or other noncash redemption.
- Caps noncash redemption value per play at $50 wholesale for direct prizes but only $2 for machines linked to gift cards or external redemption.
- Restricts who may receive proceeds from machine play to master licensees, their employees, location owners, and location operators.
- Requires the Georgia Lottery Corporation to apply progressive discipline (warning, fine, suspension and fine, then suspension/revocation) across multiple violation types.
- Moves appeals from Georgia Lottery Corporation decisions to the Metro Atlanta Business Case Division of the Fulton County Superior Court and creates a dispute-resolution process between master licensees and location owners with possible attorney fee awards.

### Who it affects

Businesses and individuals in Georgia's coin operated amusement machine industry, including master licensees, distributors, manufacturers, location owners and operators (bars, arcades, convenience stores), the Georgia Lottery Corporation, and the Fulton County Superior Court, which gains a new specialized docket for these appeals.

### Why it matters

The bill changes how much money players can win from arcade-style machines, how licensees can be disciplined for violations, and where legal disputes over machine licenses get resolved. Location owners could host tournaments with prizes, while stricter redemption caps and required progressive discipline could change day-to-day enforcement across the state's amusement machine industry.

### Key provisions

- Section 1 revises the definitions of 'bona fide coin operated amusement machine' and 'Class A machine' in Code Section 50-27-70, adding multi-function machines and setting differing redemption caps of $50 and $2 depending on redemption type.
- Section 2 adds new subsections to Code Section 50-27-71 authorizing billiards and darts tournaments with gift-card prizes and restricting who may receive machine proceeds to license holders, their employees, location owners, and operators.
- Section 3 amends Code Section 50-27-71.1 to limit legal redemption forms after July 1, 2026 and requires progressive discipline for violations, plus a study due by July 1, 2027 on redemption data and machine tampering.
- Section 4 restructures Code Section 50-27-73's license revocation grounds and adds a progressive discipline requirement, except for unauthorized use of license certificates or permit stickers.
- Section 5 moves appeals of Georgia Lottery Corporation actions from the chief executive officer process to the Metro Atlanta Business Case Division of the Fulton County Superior Court under Code Section 50-27-76.
- Section 6 changes the chief executive officer's authority to delegate hearing duties from optional ('may') to mandatory ('shall') under Code Section 50-27-81.
- Section 9 amends Code Section 50-27-102 to create a formal dispute process between master licensees and location owners, including cost and attorney fee awards against parties found to have acted without substantial justification.
- Section 10 makes the Act effective upon the Governor's signature or upon it becoming law without signature.

## Status

- Status: Engrossed (2026-02-11)
- Last action: Senate Read Second Time (2026-03-25)
- Sponsors: Alan Powell, William Werkheiser, Steve Tarvin, Rick Jasperse, Lauren McDonald, Bill Cowsert
- Official page: https://www.legis.ga.gov/legislation/71976

> The history, votes, and amendments (582 characters) are at https://georgiacommons.org/bills/2025-2026/hb903.md?full=1