ORDERS:
CONSENT ORDER
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 for a violation of the Video Games Machines Act ("Act"),
S.C. Code Ann. Sec. 12-21-2804(C) (Supp. 1999) occurring on November 16, 1999. The citation issued to Respondents on
that date was for a violation of that provision of the Act prohibiting cash payouts to persons under the age of 21 as the result
of the operation of machines licensed under S.C. Code Ann. Section 12-21-2702(A)(3). Specifically, the Department alleged
that an employee of the Respondent AKS Lounge made a cash payout of $23.65 to an Underage Cooperating Individual
("UCI") at a business owned by an licensed to the Respondent AKS Lounge and doing business as Brenda's Gameroom on
that date in violation of Section 12-21-2804(C).
The Regulatory Violation and Assessment Report issued by the Department for this violation sought the revocation of the
Respondent AKS Lounge's, d/b/a Brenda's Gameroom, retail sales tax license and the revocation of the four Class III Coin-operated Device licenses in operation in this room and held by the Respondents Chong Sou, Inc. And New China, Inc. A
Final Agency Determination was issued by the Department sustaining the imposition of the penalty assessed in the violation
report against the Respondents.
A hearing was scheduled in this matter before the Court on July 27, 2000. Prior to the hearing, an agreement was reached
between the parties resolving the matter on the following terms and conditions:
1. The Respondents New China, Inc. And Chong Sou, Inc. Agree to the revocation of the four (4) Class III licenses in use at
the location on November 16, 1999. These licenses were voluntarily returned by Respondents to the Department of
Revenue on May 30, 2000.
2. The Respondent AKS Lounge, Inc. agrees to cease and desist from the use of any and all Class III video game machines
at the location and premises doing business as "Brenda's Gameroom" located at 1310 Remount Road in North Charleston,
South Carolina for a period of six months from the date of this Order.
3. The Respondent AKS Lounge, Inc. further agrees to the voluntary revocation of Retail Sales Tax License Number 010-59649-2, issued to AKS Lounge for the operation of a location under the name "Brenda's Gameroom", and to remit the
license to the Department within fifteen days of the date of this Order.
4. The Department agrees, pursuant to S.C. Code Ann. Section 12-4-320(3) (Supp. 1999), to waive any and all remaining
penalties or fines from this violation.
Having reviewed this agreement and settlement in compromise, I hereby ORDER its adoption and dismiss the Petition in this
matter with prejudice.
___________________________ _____________________________
Jeffrey M. Nelson Gaines W. Smith
Counsel for Regulatory Litigation ATTORNEY FOR THE RESPONDENTS
P.O. Box 125 P.O. Box 578
Columbia, SC 29214 Charleston, SC 29402
(803)898-5172 (843) 722-7773
IT IS SO ORDERED.
______________________________
JOHN D. GEATHERS
Administrative Law Judge
Columbia, South Carolina
July 6, 2000 |
