Opinion ID: 1270103
Heading Depth: 3
Heading Rank: 2

Heading: Must the machines be operational to violate the law?

Text: Appellant asserts that due to the sophisticated nature of modern video machines, a machine cannot be illegal unless it is fully operational. In Squires v. South Carolina Law Enforcement Division, 249 S.C. 609, 155 S.E.2d 859 (1967), we held based on the predecessor statute to § 12-21-2710 that gambling devices need not be operational or in complete repair before they are subject to seizure and destruction. Moreover, component parts, subassemblies, and dies and molds used to make such parts are also subject to seizure and destruction. Id. at 613, 155 S.E.2d 859. Appellant argues Squires is outdated and should be overruled. We disagree. The substance of appellant's argument is that in the 1960s, when the predecessor statute to § 12-21-2710 was enacted, slot machines were readily identifiable. Today, with the advent of the computer, a video game machine is simply a box containing a computer which can be configured to play a variety of games, from poker to pac-man; therefore, the machine itself should not be considered illegal. Although slot machines have changed since the 1960s, the substance of the statute has not. The relevant portions of the current version outlaw the same conduct as its predecessor. See id. at 611, 153 S.E.2d at 860 (Section 5-621 of the Code makes it unlawful for any person to keep on his premises any slot machine or other device pertaining to games of chance of whatever name and kind.). The legislature is presumed to be aware of this Court's interpretation of its statutes: Whitner v. State, 328 S.C. 1, 492 S.E.2d 777 (1997), cert. denied, 523 U.S. 1145, 118 S.Ct. 1857, 140 L.Ed.2d 1104 (1998) (there is a basic presumption the legislature has knowledge of judicial decisions construing legislation when later statutes are enacted concerning related subjects). If the General Assembly considered Squires outdated, it could have changed the statute to outlaw only the operation, not the mere possession, of gambling machines when it last amended the statute in 1997. See One Coin-Operated Video Game Machine, 321 S.C. at 181, 467 S.E.2d at 446 (Because we are adhering to our earlier interpretation of a statute, the General Assembly is free to correct any misinterpretation on our part.) (emphasis in original). The plain language of the statute makes clear the legislature's intent to outlaw mere possession of such machines. The statute makes it unlawful for any person to keep on his premises or operate certain gambling machines. S.C.Code Ann. § 12-21-2710 (Supp.1998) (emphasis added); see also State v. Appley, 207 S.C. 284, 288, 35 S.E.2d 835, 836 (1945) (possession of a machine is a violation in itself, separate from the crime of operation). The circuit court correctly ruled possession of these machines is illegal, regardless of their intended use or operation.
The State asserts the machines are contraband per se, such that their possession, without more, constitutes a violation. Appellant asserts that coin-operated video games are not inherently illegal, so the machines are therefore only derivative contraband. We conclude the machines are contraband per se. We have never explicitly used the terms contraband per se or derivative contraband. However, we recognized the theoretical distinction in Medlock v. 1985 Ford F-150 Pick Up VIN 1FTDF15YGFNA22049, 308 S.C. 68, 417 S.E.2d 85 (1992), where we differentiated between controlled substances or other items which are the subject matter of the crime itself and property normally used for lawful purposes. Other states have found gambling machines to be contraband per se under their statutes and have allowed their forfeiture regardless of their use or operability. See, e.g., People ex rel. Waller v. Seeburg Slot Machines, 267 Ill.App.3d 119, 204 Ill.Dec. 567, 641 N.E.2d 997 (1994) (contraband per se ), State v. One Hundred Fifty-Eight Gaming Devices, 304 Md. 404, 499 A.2d 940 (1985) (contraband per se); see also State v. Madere, 352 So.2d 666 (La.1977) (contraband, same result), Bell v. State, 212 Ark. 337, 205 S.W.2d 714 (1947) (contraband, same result), State v. Four Bell Fruit Gum Slot Machines, 196 Okla. 44, 162 P.2d 539 (1945) (contraband, same result). These illegal gambling machines cannot be considered derivative contraband because they are themselves the subject of the statute's prohibition. In light of the statute's clear proscription of mere possession of the machines, see supra part I.B.1, the machines are clearly contraband per se.
Appellant next argues the legislature has indicated its intent that owners of illegal machines may legally store them. Appellant bases its argument on the proceedings surrounding the 1993 county-by-county referendum on video poker, later invalidated by this Court. See Martin v. Condon, 324 S.C. 183, 478 S.E.2d 272 (1996). A second round of referenda was authorized to comport with our Martin decision. In the context of these referenda, the General Assembly enacted § 12-21-2809, which provided: In a county in which a majority of the qualified electors vote or have voted to terminate cash payoffs for credits earned on coin-operated devices in a referendum authorized by Section 12-21-2808, the department shall not issue any license for coin-operated devices as defined in Section 12-21-2720(A)(3) and a person may not own or possess these machines in the county other than for purposes of storage, maintenance, or transportation. S.C.Code Ann. § 12-21-2809 (Supp.1998). Appellant argues this statute demonstrates the legislature's intent to provide a safe harbor for storage of gambling machines declared unlawful. We disagree. The class protected by the statute consists of owners of machines which become illegal as a result of a particular referendum. The machines at issue in this case did not become illegal as a result of that referendum, therefore possession of these illegal machines is not protected. Furthermore, as discussed above, § 12-21-2710 clearly makes mere possession of described machines unlawful. If the statute is clear on its face, we will not look beyond it for the legislature's intent. See Abell v. Bell, 229 S.C. 1, 91 S.E.2d 548 (1956) (if legislative intent is clearly apparent on the face of a statute, the court may not embark upon a search for it).
Appellant argues its reliance on expert advice regarding storage of the machines makes its possession of them lawful. We disagree. After this Court's decisions in State v. One Coin-Operated Video Game Machine, 321 S.C. 176, 467 S.E.2d 443 (1996) and State v. Four Video Slot Machines, 317 S.C. 397, 453 S.E.2d 896 (1995), appellant contacted the Solicitor of the Thirteenth Judicial Circuit requesting guidance regarding storage of illegal machines. In a memorandum to counsel for appellant and respondents, Solicitor Joseph Watson stated he informed appellant and others he would allow them to conditionally possess the machines as follows: 1. The machines would be warehoused, and not stored in any established business. 2. The computer chips would be removed so that even in storage the machines would not be operable. 3. I placed no time limit on such storage, although it was my understanding that these machines would be retooled to become legal video poker machines in the future. Appellant argues its reliance on the Solicitor's advice makes its possession of the machines lawful. The reliance defense is designed to refute the government's proof that the defendant intended to commit the offense. United States v. Miller, 658 F.2d 235, 237 (4th Cir.1981). Its essential elements are: (a) full disclosure of all pertinent facts to an expert, and (b) good faith reliance on the expert's advice. Id. The reliance defense is inapplicable here. Appellant is not being prosecuted under § 12-21-2710, so its intent is not at issue. Even if appellant were subject to criminal charges for possession of the illegal machines, intent is not an element of the statute. The Solicitor's advice does not make possession of these illegal machines lawful.