HB1197: HB1197 Georgia Lottery for Education Act; authorize certain billiards and darts tournaments and prizes

26 LC 28 0734 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 "Georgia1 Lottery for Education Act," so as to authorize certain billiards and darts tournaments and the2 prizes therefor; to provide for definitions; to provide for the promulgation of certain rules and3 regulations; to provide that progressive discipline shall be us ed to sanction violations; to4 require the Georgia Lottery Corporation to provide certain data; to provide that appeals from5 the decision of a hearing officer of the corporation shall be t o the Metro Atlanta Business6 Case Division of the Superior Court of Fulton County; to provide for the resolution of certain7 disputes between master licensees and location owners or location operators; to provide for8 an effective date; to provide for related matters; to repeal co nflicting laws; and for other9 purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Chapter 27 of Title 50 of the Official Code of Georgia Annotated, the "Georgia Lottery for13 Education Act," is amended in Code Section 50-27-71, relating to license fees, issuance of14 license, display of license, control number, duplicate certificates, application for license or15 renewal, and penalty for noncompliance, by adding a new subsection to read as follows:16 H. B. 1197 - 1 - 26 LC 28 0734 "(p)(1) As used in this subsection, the term:17 (A) 'Billiards' shall have the same meaning set forth in parag raph (3) of Code18 Section 43-8-1.19 (B) 'Darts' means any one of the games played with two or more players who, using20 their bare hands, throw small sharp pointed missiles which are known as darts at a21 target which is known as a dartboard to accumulate points.22 (2) A location owner or a location operator shall be authorize d to conduct billiards or23 darts tournaments on the premises for which such licensee has a contract for the24 installation of bona fide coin operated amusement machines. Such tournaments may be25 conducted on bona fide coin operated amusement machines or noncoin operated devices. 26 The licensee may award prizes to the winners of such tournaments, but such prizes shall27 be limited to gift cards or other forms of noncash redemption.28 (3) The corporation shall be authorized to promulgate such rules and regulations as are29 necessary to implement the provisions of this subsection."30 SECTION 2.31 Said chapter is further amended by revising paragraph (2) of su bsection (a) of Code32 Section 50-27-71.1, relating to gift cards and redemption, and adding a new subsection to33 read as follows:34 "(2) On and after July 1, 2026:35 (A) Only replays and nonreloadable and reloadable gift cards s hall be allowed as a36 legal form of redemption for Class A machines in addition to an y other form of37 redemption allowed by law or authorized by the corporation; and38 (B) Only replays, lottery products, and nonreloadable and reloadable gift cards shall39 be allowed as a legal form of redemption for Class B machines a nd no other form of40 redemption shall be allowed. Any location owner or location operator that provides for41 the redemption of products or services, other than replays and lottery products, that are42 H. B. 1197 - 2 - 26 LC 28 0734 not on a gift card shall, in addition to any other penalties pr ovided by law, receive a43 warning for the first violation and shall be punished by civil penalties for any44 subsequent violations that shall be imposed by the corporation in amounts that are45 proportional to any amounts inappropriately redeemed; provided, however, that nothing46 in this subparagraph shall be construed to eliminate or reduce any administrative47 penalty related to a violation of Code Section 16-12-35. Discipline shall be progressive48 in nature to include a warning on the first offense; a fine on the second offense; a49 suspension and fine on the third offense; and a suspension, rev ocation, fine, or50 combination thereof on the fourth and subsequent offenses. All violations considered51 in one enforcement action shall constitute a single violation for the purpose of assessing52 disciplinary penalties."53 "(e) Not later than July 1, 2027, the corporation in conjunctio n with and in cooperation54 with the Bona Fide Coin Operated Amusement Machine Operator Adv isory Board shall55 implement a system for location owners and location operators to track and report to the56 corporation the number and amounts of each form of lottery prod uct issued as noncash57 redemption for successful plays of bona fide coin operated amus ement machines. Such58 tracking shall be performed through a digital accounting and point of sale system or other59 systems. The data to be reported shall be included in the repo rts under Code60 Section 50-27-84 and shall include, but not be limited to, the number and amounts of each61 form of lottery product issued as noncash redemption for successful plays of bona fide coin62 operated amusement machines, gift cards, and replays."63 SECTION 3.64 Said chapter is further amended by revising subsection (c) of Code Section 50-27-73, relating65 to refusal to issue or renew license, revocation or suspension, hearing, and limitation on66 issuance of licenses, as follows:67 H. B. 1197 - 3 - 26 LC 28 0734 "(c)(1) The corporation may refuse to issue or renew a manufacturer, distributor, or68 master license or may revoke or suspend a manufacturer, distrib utor, or master license69 issued under this chapter if:70 (1)(A) The licensee or applicant has intentionally violated a provision of this chapter71 or a regulation promulgated under this chapter;72 (2)(B) The licensee or applicant has intentionally failed to provide requested73 information or answer a question, intentionally made a false st atement in or in74 connection with his or her application or renewal, or omitted any material or requested75 information;76 (3)(C) The licensee or applicant used coercion to accomplish a purpose or to engage77 in conduct regulated by the corporation;78 (4)(D) A master licensee or applicant allows the use of its master license certificate or79 per machine permit stickers by any other business entity or person that owns or operates80 bona fide coin operated amusement machines available for commer cial use and81 available to the public for play. If such unauthorized use occurs, the corporation may82 fine the licensee as follows:83 (A)(i) One thousand dollars for each improper use of a per machine permit sticker;84 and85 (B)(ii) Twenty-five thousand dollars for each improper use of a maste r license86 certificate.87 In addition, the corporation is authorized to seize the machines in question and assess88 the master license and permit fees as required by law and to as sess the costs of such89 seizure to the owner or operator of the machines;90 (5)(E) Failure to suspend or revoke the license would be contrary to the intent and91 purpose of this article;92 (6)(F) The licensee or applicant has engaged in unfair methods of co mpetition and93 unfair or deceptive acts or practices as provided in Code Section 50-27-87.1; or94 H. B. 1197 - 4 - 26 LC 28 0734 (7)(G) Any applicant, or any person, firm, corporation, legal entity , or organization95 having any interest in any operation for which an application has been submitted, fails96 to meet any obligations imposed by the tax laws or other laws o r regulations of this97 state.98 (2) Except as provided in subparagraph (D) of paragraph (1) of this subsection, discipline99 shall be progressive in nature to include a warning on the firs t offense; a fine on the100 second offense; a suspension and fine on the third offense; and a suspension, revocation,101 fine, or combination thereof on the fourth and subsequent offen ses. All violations102 considered in one enforcement action shall constitute a single violation for the purpose103 of assessing disciplinary penalties."104 SECTION 4.105 Said chapter is further amended by revising Code Section 50-27- 76, relating to judicial106 review of action by corporation or chief executive officer, as follows:107 "50-27-76.108 (a) Appeal by an affected person from all actions of the corpo ration or chief executive109 officer shall be to the Metro Atlanta Business Case Division of the Superior Court of110 Fulton County. The review shall be conducted by the court and shall be confined to the111 record.112 (b) The court shall not substitute its judgment for that of the corporation or chief executive113 officer as to the weight of the evidence on questions of fact committed to the discretion of114 the corporation or chief executive officer . The court may affirm the decision of the115 corporation or chief executive officer in whole or in part; the court shall reverse or remand116 the case for further proceedings if substantial rights of the appellant have been prejudiced117 because the corporation's or chief executive officer's findings, inferences, conclusions, or118 decisions are:119 (1) In violation of constitutional or statutory provisions;120 H. B. 1197 - 5 - 26 LC 28 0734 (2) In excess of the statutory authority of the corporation or chief executive officer;121 (3) Made upon unlawful procedures;122 (4) Affected by other error of law;123 (5) Not reasonably supported by substantial evidence in view o f the reliable and124 probative evidence in the record as a whole; or125 (6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted126 exercise of discretion."127 SECTION 5.128 Said chapter is further amended by revising subsection (c) of Code Section 50-27-81, relating129 to administration of article, as follows:130 "(c) The chief executive officer may shall delegate to an authorized representative any131 hearing officer the authority given to the chief executive officer by this article, including132 the conduct of investigations, imposing of fees and fines, and the holding of hearings."133 SECTION 6.134 Said chapter is further amended by revising subsection (a) of Code Section 50-27-82, relating135 to criminal violations, investigations, seizure and confiscation of machines, repossession, and136 sealing of machines, as follows:137 "(a) If any owner or operator of any bona fide coin operated amusement machine in this138 state shall violate any provision of this article or any rule and regulation promulgated under139 this article, the corporation may investigate the violation and may seek sanctions, including140 late fees of $50.00 for failure to pay timely permit sticker fees, $125.00 for failure to pay141 timely the master license fee, suspension or revocation of a license, seizure of equipment,142 interest penalty, and debarment for repeat offenders. Discipli ne shall be progressive in143 nature to include a warning on the first offense; a fine on the second offense; a suspension144 and fine on the third offense; and a suspension, revocation, fine, or combination thereof on145 H. B. 1197 - 6 - 26 LC 28 0734 the fourth and subsequent offenses. All violations considered in one enforcement action146 shall constitute a single violation for the purpose of assessing disciplinary penalties."147 SECTION 7.148 Said chapter is further amended by revising subsection (a) of Code Section 50-27-85, relating149 to penalties for violations by location owners or operators, as follows:150 "(a)(1) Except as specifically provided in this article, for single or repeated violations of151 this article by a location owner or location operator who offer s one or more bona fide152 coin operated amusement machines for play by the public, the corporation may impose153 the following penalties on such a location owner or location operator:154 (1)(A) A civil fine in an amount specified in rules and regulations promulgated in155 accordance with this article; or156 (2)(B) For a third or subsequent offense, a suspension or revocation of the privilege of157 offering one or more bona fide coin operated amusement machines for play by the158 public.159 (2) Discipline shall be progressive in nature to include a warning on the first offense; a160 fine on the second offense; a suspension and fine on the third offense; and a suspension,161 revocation, fine, or combination thereof on the fourth and subs equent offenses. All162 violations considered in one enforcement action shall constitute a single violation for the163 purpose of assessing disciplinary penalties."164 SECTION 8.165 Said chapter is further amended by revising paragraphs (1) and (5) of subsection (c) of Code166 Section 50-27-102, relating to role of corporation, implementat ion and certification,167 separation of funds and accounting, and disputes, as follows:168 "(c)(1) As a condition of the license issued pursuant to this article, no master licensee or169 location owner or location operator shall replace or remove a Class A machine or Class B170 H. B. 1197 - 7 - 26 LC 28 0734 machine from a location until the master licensee and location owner or location operator171 certify to the corporation that there are no disputes regarding any agreement, distribution172 of funds, or other claim between the master licensee and locati on owner or location173 operator; provided, however, that this certification shall not be required if a master174 licensee is replacing its own Class A machine or Class B machine at a location. If either175 the master licensee or location owner or location operator is u nable to make the176 certification required by this Code section, the corporation sh all refer the dispute to a177 hearing officer as set forth in this subsection. If a master licensee certifies that there is178 a dispute with a location owner or location operator, which cer tification causes the179 continued generation of revenue from the master licensee's Class A or Class B machine180 subject to the alleged dispute pending a decision on the disput e, and, after the hearing181 officer's or court's determination, the location owner or location operator is the prevailing182 party and the hearing officer or court finds that the action wa s brought by the master183 licensee without substantial justification or was brought for d elay or harassment, the184 hearing officer or court shall, in addition to any other remedy provided for in this article,185 order that any revenues received by or due to the master licensee as a result of the master186 licensee's certification of the dispute shall not be kept by the master licensee but shall be187 paid to the corporation and the hearing officer or court shall also award the costs of the188 proceeding and attorney fees to the location owner or location operator and against the189 master licensee. However, if, after the hearing officer's or c ourt's determination, the190 master licensee is the prevailing party and the hearing officer or court finds that the action191 was defended by the location owner or location operator without substantial justification192 or was defended for delay or harassment, the hearing officer or court shall, in addition to193 any other remedy provided for in this article, order that any revenues received by or due194 to the location owner or location operator as a result of the master licensee's certification195 of the dispute shall not be kept by the location owner or locat ion operator but shall be196 paid to the corporation and the hearing officer or court shall also award the costs of the197 H. B. 1197 - 8 - 26 LC 28 0734 proceeding and attorney fees to the master licensee and against the location owner or198 location operator. As used in this paragraph, the term 'without substantial justification'199 means substantially frivolous, substantially groundless, or sub stantially vexatious. 200 Applicants for licenses shall submit all disputes against exist ing or previous licensees201 under this article, including master licensees, location owners , location operators,202 manufacturers, and distributors, to a hearing officer under this paragraph."203 "(5) The decision of the hearing officer may be appealed to the chief executive officer204 or his or her designee Metro Atlanta Business Case Division of the Superior Court of205 Fulton County . The chief executive officer court shall not reverse a finding of fact of the206 hearing officer if any evidence supports the hearing officer's conclusion. The chief207 executive officer court shall not reverse a conclusion of law of the hearing officer unless208 it was clearly erroneous, arbitrary, and capricious or exceeded the hearing officer's209 jurisdiction. The decision of the chief executive officer may be appealed to the Superior210 Court of Fulton County, which court shall not reverse the chief executive officer's211 findings of fact unless it is against the weight of the evidence as set forth in Code Section212 5-5-21, and the chief executive officer's legal conclusions sha ll not be set aside unless213 there is an error of law."214 SECTION 9.215 This Act shall become effective upon its approval by the Governor or upon its becoming law216 without such approval.217 SECTION 10.218 All laws and parts of laws in conflict with this Act are repealed.219 H. B. 1197 - 9 -