ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal of the Respondent American
Amusement Company of a citation by the Petitioner South Carolina Department of Revenue
("Department") against the American Amusement Company and Globe Video Company for
an alleged violation of the Video Games Machines Act ("Act"), S.C. Code Ann. § 12-21-2804(A)(Supp. 1996) on August 29, 1996. The citation issued on that date was for a
violation of that provision of the Act limiting the licensing and use of five (5) Class III
machines per single place or premise. S.C. Code Ann. § 12-21-2804(A); 27 S.C. Code Regs
Ann. 117-190. The Regulatory Violation and Assessment Report sought revocation of five
(5) Class III licenses 3809836, 3809837, 3809838, 3809839, 3809840 issued to the
Respondent American Amusement and located in the Globe Video room at 114-A
Glassmaster Road, Lexington, SC 29072 ("Globe Video room"), that no licenses be issued
for the operation of machines in the Globe Video Room for a period of six (6) months, and
the imposition of $5,000.00 monetary penalties against Globe Video Company and American
Amusement. A final Agency Determination was issued by the Department sustaining the
imposition of the fines and penalties assessed in the violation report and further concluding
that a $5,000.00 penalty should also be imposed against Four Queens Management, Inc. For
an identical violation of 12-21-2804(A) at Planet Vegas, 114 Glassmaster Road, Lexington,
SC 29072, ("Planet Vegas") that no licenses should be issued for a period of six months for
the operation of machines as Planet Vegas, and that the five licenses located in Planet Vegas
should be revoked. In an amended prehearing statement filed 8/4/97, the Department stated
that it was only requesting revocation of five (5) Class III licenses issued to the Respondent
American Amusement and located in the Globe Video room, that no licenses be issued for
the operation of machines in the Globe Video room for a period of six (6) months, and the
imposition of $5,000.00 monetary penalties against Globe Video Company and American
Amusement. The Department no longer sought a $5,000.00 fine or any penalty against Four
Queens Management, Inc. or American Amusement for the alleged violation at Planet Vegas.
A hearing was scheduled in this matter before the Court on December 2, 1997.
Prior to the hearing, an agreement was reached between the parties resolving this matter on
the following terms and conditions:
1. The Class III licenses in dispute, 3809836, 3809837, 3809838, 3809839,
3809840, are revoked as of December 1, 1997, and will be submitted to the Department by
December 1, 1997.
2. Respondents further agree to not place, maintain, or operate any Class III
video games machines in the Globe Video room for a period of six (6) months commencing
on December 1, 1997. The Department agrees that from the date of this Order until
December 1, 1997 that the Respondents are and shall be allowed to continue to operate any
video game machines currently located in the Globe Video room; provided; however, that
Respondents otherwise follow and obey all statutes and regulations pertaining to the
licensing and operation of such machines.
3. The Department agrees, pursuant to S.C. Code Ann. § 12-4-320(3) (Supp.
1996) to waive the remaining monetary penalties sought for this violation from the
Respondents.
4. The parties further agree and understand that this is a compromise and
settlement of a contested penalty, is not an admission of guilt by the Respondents, and is
entered by the Department under the authority provided it in S.C. Code Ann. 12-4-320(3) to
compromise such matters.
Having reviewed this agreement and settlement in compromise, I hereby ORDER
its adoption and dismiss the Petition in this matter with prejudice.
_______________________________ _____________________________
Carol I. McMahan Zoe Sanders Nettles
Counsel for Regulatory Litigation Attorney for Respondents American
P.O. Box 125 Amusement, Globe Video Company,
Columbia, SC 29214 Four Queens Management
(803) 898-5163 Company, Inc., LAM, Inc. d/b/a
Ashleigh Place d/b/a Scott's Place
IT IS SO ORDERED.
_____________________________________
The Honorable Stephen P. Bates
Administrative Law Judge
Columbia, South Carolina
November 12, 1997 |