ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal by the Respondents of a citation issued
by the South Carolina Department of Revenue for violations of the Video Game Machines Act
("Act"), S.C. Code Ann. Sec. 12-21-2804(A) (Supp. 1996), on June 13, 1996. The citation
issued to Respondents on that date was for violations of the provisions of the Act limiting the
licensing and use of five (5) Class III machines per single place or premise. S.C. Code Ann.
Section 12-21-2804(A); 27 S.C. Code Regs. Ann. 117-190. The Regulatory Violation and
Assessment Report sought revocation of ten (10) Class III licenses, that no licenses be issued for
the operation of machines at "The Sapphire Room" and "Royal Room 'G'" locations for a period
of six (6) months, and a monetary penalty in the amount of $5,000 each against each of the
Respondents. A final Agency Determination was issued by the Department sustaining the
imposition of the fines and penalties assessed in the violation report.
A hearing was scheduled in this matter before the Court on August 25, 1997. Prior to the
hearing, an agreement was reached with all parties resolving this matter on the following terms
and conditions:
1. The Coin Operated Device licenses on the machines in question expired on, or prior
to, May 30, 1997. The issue of license revocation is therefore moot and no longer at issue.
2. That B&L Enterprises, James R. McDonald d/b/a McDonald Amusements, and/or
Eugene H. Smith, Inc. agree not to operate or allow the operation of Class III machines in
rooms and or premises located at 901 Hwy. 17 South Business, Surfside Beach, South Carolina
for a period of six (6) months. The aforesaid six (6) month period is effective upon the signing
of this Order.
3. In consideration of the above, the Department agrees, pursuant to S.C. Code Ann
Section 12-4-320(3) (Supp. 1996) to waive the monetary penalties sought for this violation from
each of the Respondents in this case.
4. The parties further agree and understand that this is a compromise and settlement of a
contested penalty and is entered by the Department under the authority provided in S.C. Code
Ann. Section 12-4-320(3) to compromise such matters.
Having reviewed this agreement and settlement in compromise, and having questioned
the parties or their respective counsel regarding the terms thereof, I hereby ORDER its adoption
and dismiss the Petition in this matter with prejudice.
______________________________ ____________________________
Jeffrey M. Nelson, Esq. Richard A. Harpootlian, Esq.
Counsel for Regulatory Litigation Attorney for Respondents
Attorney for the Petitioner
IT IS SO ORDERED
______________________________
Stephen P. Bates
Administrative Law Judge
September 2, 1997 |