Panel gives favorable report to sweepstakes bill after tabling Rutherford amendment

The South Carolina House Judiciary Committee gave Senate Bill 3 — described in committee as a "sweepstakes" bill — a favorable report after a contentious debate that included an amendment from Representative Rutherford that the panel tabled by a recorded vote.

Mr. Bannister, reporting for the Constitutional Law Subcommittee, told the committee the bill clarifies existing code language to make clear there is no exception for electronic gambling machines that some operators had argued fell under sweepstakes exemptions. "This clarifies that a gambling device does not fall into that exception," he said.

Supporters and critics debated the bill's reach. Mr. Murphy raised concerns that certain language could be read to prohibit raffles at organizations that hold beer-and-wine permits, asking whether groups such as the Shriners, Lions Club or Rotary would be barred from selling raffle tickets. Mr. Bannister responded that the provision being discussed applies to permit holders and that a separate charitable-raffles bill aimed at 501(c)(3) fundraisers is expected to address other concerns.

Representative Rutherford proposed an amendment intended to bind law enforcement to magistrate-court determinations that a machine is permissible until a higher court reverses that decision. Rutherford argued the change would prevent what he described as "judge shopping" and repeated seizures of equipment in cases where lower courts had found the machines lawful. "If a magistrate court determines that a machine is permissible under the code, then that decision is binding on law enforcement," he said, urging the committee to adopt the amendment to give business owners certainty.

Other members questioned whether the amendment was necessary given the bill's primary effect of outlawing the targeted machines. Ms. Funderbar asked how the amendment could be relevant if the bill made the machines illegal. The chair then called a motion to table the Rutherford amendment; following a division and show-of-hands vote, the committee recorded the amendment as tabled by a vote of 14 to 6.

After tabling the amendment and further discussion, the committee voted to give S.3 a favorable report; the chair announced the favorable report on S.3 by a recorded vote of 14 to 6.

The committee record shows the bill was advanced out of committee; the transcript contains no further scheduling information about subsequent floor action.