South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
SCDOR vs. Sam H. Furman and Furman Games, Inc.

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
South Carolina Department of Revenue

Respondents:
Sam H. Furman and Furman Games, Inc.
 
DOCKET NUMBER:
98-ALJ-17-0134-CC

APPEARANCES:
n/a
 

ORDERS:

CONSENT ORDER

This matter came before the Court from an appeal of the Respondents Sam H. Furman and Furman Games, Inc. Of a citation issued by the Petitioner South Carolina Department of Revenue ("Department") against the Respondent for a violation of the Video Games Machines Act ("Act"), S.C. Code Ann. Section 12-21-2804(A) (Supp. 1997) on February 6, 1997. The citation issued to Respondents on that date was for a violation of that provision of the Act prohibiting the operation of more than 5 machines at a "single place or premise" as further defined in S.C. Code of Regulations Reg. 117-190. Specifically, the Department found, based on an inspection and Preliminary Findings Report of the South Carolina Law Enforcement Division, that Respondents had failed to meet the "separate employee" and firewall requirements of the aforestated statute and regulation. The Regulatory Violation and Assessment Report sought the imposition of $5,000.00 monetary penalties against the Respondents, the revocation of 10 Class III Coin Operated Device Licenses, and to close the two locations in which the machines were operated fore a period of six months. Five of the COD licenses in dispute expired May 31, 1997. The remaining five will expire May 31, 1998. A final Agency Determination was issued by the Department sustaining the imposition of the penalty assessed in the violation report.



A hearing was scheduled in this matter before the Court on May 18, 1998. Prior to the hearing the parties consented to resolve this matter on the following terms and conditions:



1. The Respondents agree to pay a fine of $2,000.00 and to make payment of the fine to the Department within 30 days of the date of this Order.



2. The Department agrees, pursuant to S.C. Code Ann. Section 12-4-320(3) (Supp. 1996) to waive the remaining monetary penalties sought for this violation from the Respondents.



3. As the 10 licenses at issue are all either currently expired, or will expire on May 31, 1998, the issue of license revocation is considered moot by the parties for purposes of this agreement. The parties request the Court herein to consider the issue of license revocation on the ten license Class III video game machines contained within the "Far Side" and "Furman Games" locations to be a live issue only for the purpose of rendering a final decision on the issue of the Department's requested six month closure of these two locations.



4. The parties further agree to, and hereby request, a supplemental order or addendum to this Consent Order from the Court herein on the sole remaining issue of the Department's requested six month closure of the two cited locations under the provision of S.C. Code Ann. Section 12-21-2804(A). For the purposes of this issue, and the necessarily related issued of the revocation of the ten Class III COD licenses within those locations, the parties stipulate to the following facts:



a. That on February 6, 1997 the Respondents had a sufficient number

of employees within the building located at 1137B Reynolds Avenue to staff both "The Far Side" and "Furman Games" locations and that such employees were within the general vicinity of such locations but were not on the premises, or "within the four walls", of such locations at the time of the inspection by South Carolina Law Enforcement Officers.



b. That the aforesaid two businesses are both owned and operated by the Respondents Sam H. Furman and Furman Games, Inc.



c. That the video poker (Class III video game machines) located in these two locations on February 6, 1997 were licensed to the Respondent Furman Games, Inc. And the licenses numbers of these machines were as follows:

The Far Side Furman Games

033298 (exp. 5/31/97) 033463 (exp. 5/31/97)

035753 (exp. 5/31/97) 033296 (exp. 5/31/97)

035806 (exp. 5/31/97) 3809484 (exp. 5/31/98)

3809183 (Exp. 5/31/98) 3809485 (exp. 5/31/98)

3809481 (exp. 5/31/98 3809481 (exp. 5/31/98)



5. The parties agree and understand that this is a compromise and settlement of a contested penalty 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, 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 Richard A. Harpootlian

Counsel for Regulatory Litigation Attorney for Respondents

P. O. Box 125 P. O. Box 1090

Columbia, SC 29214 Columbia, SC 29202

(803) 737-4426 (803) 252-4848

IT IS SO ORDERED.





RAY N. STEVENS

Administrative Law Judge



July 2nd, 1998

Columbia, South Carolina



NOTE: Consent Order prepared by Petitioner's attorney, Jeffrey M. Nelson.


Brown Bldg.

 

 

 

 

 

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