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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. Ace Music Co. of Spartanburg, Inc.

South Carolina Department of Revenue

South Carolina Department of Revenue

Ace Music Co. of Spartanburg, Inc.




This matter was initiated by a citation issued by the South Carolina Department of Revenue ("Department") against Respondent for a violation of the Video Game Machines Act [S.C. Code Ann. Section 12-21-2804(A) (Supp. 1997)]. On January 12, 1998, Respondent was cited for operating machines licensed pursuant to S.C. Code Ann. Section 12-21-2720(A)(3) (Supp. 1997) (commonly referred to as "Class III machines and licenses"), in a location under suspension (See South Carolina Dep't of Rev. v. Ace Music Company of Spartanburg, Inc., et al, Docket No. 97-ALJ-0309-CC (October 20, 1997). A Department Determination was issued sustaining the imposition of the violation. The determination sought revocation of Respondent's four Class III machine licenses, that no licenses will be allowed for use in the location for a period of six months and a $20,000.00 monetary penalty ($5,000.00 for each Class III machine Respondent operated in violation of the suspension). The other licenses charged by the Department for this violation failed to respond to the Department Determination. They are not parties to this action.

Prior to the hearing, the parties entered into an agreement resolving the matter.

That agreement is incorporated in this Order

The agreement between the parties is as follows:

1. Respondent admits the violation of operating under suspension on January 12, 1998. Respondent further agrees to the revocation of the Class III licenses in use at Ace Game Room #3, license numbers as follows: 3934405, 3809416, 3809417, and 3809418. Respondent agrees to surrender license no. 3934405 to the Department no later than 5:00 on July 22, 1998. As the remaining licenses have expired, the Department does not require their surrender.

2. Respondent further agrees not to operate or allow the operation of any Class III machines at the location Ace Game Room #3, 2601 E. Main Street, Spartanburg, South Carolina, for a period of six months from July 22, 1998 (this location is accurately depicted on the attached diagram).

3. Respondent further agrees to remit to the Department a monetary fine in the amount of $10,000.00, no later than 5:00 pm, on July 22, 1998.

3. In consideration of the above, the Department agrees to waive the remaining monetary penalties sought for this violation as to Respondent.

I find this agreement to be fair and equitable, approve such agreement, and hereby Order its adoption. As Respondent no longer requires a hearing on this matter, I also Order this matter Dismissed with Prejudice.



Honorable Stephen P. Bates

Administrative Law Judge

August 10, 1998

Columbia, South Carolina



Carol I. McMahan

Attorney for Petitioner


O.W. Bannister, Jr.

Attorney for Respondent.

Brown Bldg.






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