ORDERS:
CONSENT ORDER
This is a contested case initiated by the Department of Revenue ("Department") following
Respondents' request that Department withdraw its order dated March 10, 1998 which revoked ten
(10) Class III licenses, fined each of the Respondents $5,000 and prohibited the operation of Class
III video game machines at the subject locations for six (6) months from the date of revocation of the
licenses for operating more than five (5) Class III video game machines at a single place or premise
in violation of Section 12-212804(a). The Order was issued because more than thirty (30) days
elapsed following the date the Department's Final Determination was delivered to the attorney for
Respondents who initially protested the subject violation. Respondents claim that the Order is not
enforceable because the Department failed to mail the Final Determination directly to them.
Respondents assert that the Revenue Procedures Act requires that notice be mailed directly to the
individual taxpayer, and not just the attorney who initially filed a protest of the violation.
Prior to the hearing on this matter, the parties worked out an agreement resolving the
matter. That agreement is incorporated into this Order. The agreement between the parties is
as follows:
1. Respondents agree to comply with the Order of March 10, 1998, a copy of which is
attached hereto and incorporated herein;
2. Petitioners and Respondents agree that as a matter of clarification of the March 10,
1998 Order that Respondents shall not operate or allow the operations of any Class
III machines at the two game rooms depicted in the shaded area on the attached
diagram, at 4725 Augusta Road, Greenville, South Carolina, for a period of six
months from May 24, 1998, the date the licenses were surrendered to the
Department. ' Nothing herein shall prohibit the operation of Class III licensed
machines in any other area on the attached diagram in accordance with the S.C. Video Game
Machines Act and applicable regulations.
3. Respondents agree to remit payment to the Department of Revenue by close of
business, May 15, 1998.
_____________________________
' The Department of Revenue's Order states that the Respondents shall be prohibited from operating Class III
machines at 4723 Augusta Rd., Greenville, S.C. See Order page 3. The parties agree that the correct address
for the sanction is 4725 Augusta Rd., Greenville, S.C. There is a related business at 4723 Augusta Rd. but
that business was not cited during the inspection at issue.
I find the above settlement to be fair and equitable, approve such settlement, and hereby ORDER its adoption.
This Court retains continuing jurisdiction to enforce this Order. As the parties no longer require a hearing on
this matter, I also ORDER this matter dismissed with prejudice.
IT IS SO ORDERED.
_____________________
ALISON RENEE LEE
Administrative Law Judge
May 13, 1998
Columbia, South Carolina
WE SO CONSENT:
__________________
Carol I. McMahan
Attorney for Petitioner
__________________
James M. Griffin
Attorney for Respondents
SOUTH CAROLINA DEPARTMENT OF REVENUE
IN THE MATTER OF:
Total Computer System, Inc. d/lo/a Cleats
4723 Augusta Rd.
Greenville, South Carolina 29611
R. P. Social Club, Inc. d/lo/a Cleats Godivas
4725 Augusta Rd.
Greenville, South Carolina 29605-1525
S & R Services, Inc.
311 N Washington Ave.
Greenville, South Carolina 29611-4523
_______
ORDER
_______
On February 21, 1997, R.P. Social Club, Inc. d/lo/a Cleats Godivas, S & R Services, Inc.,
and Total Computer Systems, Lnc. d/lo/a Cleats were cited by the South Carolina Law
Enforcement Division ("SLED") for violation of S.C. Code Ann. Sections 12-21-2804(A) and 23 S.C.
Code Ann. Regs. 117-190 for failure to satisfy the "single place or premises" requirements.
By letter dated June 9, 1997, mailed to R.P. Social Club, Inc., 4725 Augusta Rd., Greenville, South
Carolina 29605-1525; S & R Services, Inc., 311 N. Washington Ave., Greenville, South Carolina
29611-4523; and Total Computer Systems, Inc., 4723 Augusta Rd., Greenville, South Carolina 29605-1525; Davis R. Brown, Jr., Revenue Manager, notified these entities that the Department of Revenue
was seeking to revoke the following Class III video poker licenses [issued pursuant to S.C. Code Ann.
§ 12-21-2720 (A)(3) (Supp. 1996)]: 3804408, 3804409, 3804410, 3804411, 3804412, 032999,
3804108, 3804109, 3804110, and 3804116. These entities were also notified that each entity would
be assessed penalties in the amount of $5,000.00 each, for a total of $ 15,000.00, for these violations.
They were further notified that a six month suspension of licensing would apply at the location at issue.
The parties were given the opportunity to protest the revocation and penalties by providing to this
agency, in writing, within thirty (30) days, a protest containing specific information as outlined within
the letter.
By letter dated July 1, 1997, David E. gelding, attorney for the parties, protested the violation and
advised the Department that the licensees contended that the common area for the Class III video
games machines at the location complied with Section 12-21-2804(A), and that there were employees
on the premises at the time of the inspection. Mr. gelding also stated the licensees felt that the proposed
assessment was "arbitrary and capricious."
On August 14, 1997, Carol I. McMahan, Counsel for Regulatory Litigation, by certified mail,
informed Mr. Belding that the Department sustained the proposed revocation of ten Class III licenses
and penalties of $5,000.00 against each entity, for total penalties of $ 15,000.00. Mr. Belding was
advised that if his clients disagreed with the findings stated within the letter, he may request, in
writing, a hearing before the Administrative Law Judge Division.
As of today, Mr. Belding nor any of the cited licensees have requested a hearing before the
Administrative Law Judge Division.
IT IS THEREFORE ORDERED:
(A) That the following ten Class III licenses shall be revoked: 3804408, 3804409, 3804410,
3804411, 3804412, 032999, 3804108, 3804109, 3804110, and 3804116, and that no licenses will be
used at the locations known as Cleats and Cleats Godivas, 4723 Augusta Rd., Greenville, South
Carolina for a period of six months.
(B) That the ten Class III video poker licenses, if not expired, shall be surrendered to an agent
of the South Carolina Law Enforcement Division upon delivery of this Order.
(C) That R.P. Social Club, Inc., dib/a Cleats Godivas, S & R Services, Inc., and Total Computer
Systems, Inc., d/lo/a Cleats shall each pay the penalty of $5,000.00 for violation of S.C. Code Section
12-21-2804(A) (Supp. 1996).
(D) That one copy of this Order shall be conspicuously posted on the premises at a place
designated by an agent of the South Carolina Law Enforcement Division.
(E) That the agent serving the Order shall return the licenses to the Department of Revenue.
(F) That a copy of this Order shall be served upon David E. Belding, R.P. Social Club, Inc.,
S & R Services, Inc., and Total Computer Systems, Inc.
_____________________
E. Gregorie Frampton
Administrator
_______________, 1998 |
