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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. Carl Custer, d/b/a Mary's Hats & Gifts, et al

South Carolina Department of Revenue

South Carolina Department of Revenue

Carl Custer, d/b/a Mary's Hats & Gifts, and d/b/a CC Electronics, CC Electronics, Inc., both individually and d/b/a Little Reno d/b/a CC Entertainment, d/b/a Carl's Place, and d/b/a Anchors Aweigh, and James R. McDonald, Jr., d/b/a McDonald's Amusements




This matter came before the Court from an appeal of the Respondents of a citation issued by the Petitioner South Carolina Department of Revenue ("Department") against the Respondents by the South Carolina Law Enforcement Division for a violation of S.C. Code Ann. Section 12-21-2804(A) and Regulation 117-190 on July 10, 1999. The Regulatory violation and assessment report issued by the Department sought the imposition of $55,000.00 in fines, the revocation of 25 Class III machine licenses and the closure of the five rooms found to be in violation for a period of six months. A Final Agency Determination issued by the Department on January 4, 2000 sustained the fines and penalties.

This matter was transmitted to the Administrative Law Judge Division to for a contested case hearing on June 28, 2000. Prior to a hearing being scheduled in this matter, the parties informed the court that they had reached a compromise under the following terms and conditions:

1. Respondents admit to a violation of the single place or premise requirement contained in Section 12-21-2804(A) on or about July 10, 1999.

2. The Respondents agree to remove all Class III video game machines from the rooms doing business as Mary's Hats & Gifts, CC Entertainment, Little Reno, Carl's Place and Anchors Aweigh

and to refrain from operating any such machines on the premises of these rooms for a period of six months commencing on July 1, 2000.

3. The Respondent Carl Custer further agrees to pay a fine in the amount of $500 for each violation for a total fine of $2,500 and to make payment of such fine to the Department of Revenue within thirty (30) days of the date of this Order.

4. The Respondents CC Electronics and James R. McDonald Jr. agree to the revocation of the fourteen (14) Class III COD licenses in use at the above named five locations which expire on May 31, 2001 and to remit such licenses to the Department within thirty days of the date of this Order. The numbers of those licenses are: 3160871; 3160872; 3160873; 3160874; 3160875; 3161997; 3161999; 3161986; 3161987; 3161989; 3161992; 3162004; 3161991; and 3161995.

The remainder of the twenty-five licenses found to have been operating in violation of the statute are expired and the revocation of such is therefore considered moot for the purposes of this agreement.

4. In consideration for the above stated agreement and payment, the Department agrees to waive the remaining monetary fines and penalties sought against the Respondents in this action.

5. The parties agree and understand that this constitutes a final settlement of this matter.

Having reviewed this agreement and the terms thereof, I hereby ORDER its adoption and

dismiss the Petition in this matter with prejudice.

________________________________ _________________________________

Jeffrey M. Nelson Robert G. Rikard

Counsel for Regulatory Litigation Attorney for the Respondents

S.C. Department of Revenue Post Office Box 1090

P.O. Box 125 Columbia, S.C. 29202

Columbia,SC 29214 (803) 252-4848

(803) 898-5172



Hon. C. Dukes Scott

Administrative Law Judge

July 28, 2000

Columbia, SC

Brown Bldg.






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