ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal of the Respondents Power Players, Inc.
and Riptide Construction of a citation issued by the Petitioner South Carolina Department of
Revenue ("Department") and the South Carolina Law Enforcement Division against the
Respondent for violations of S.C. Code Ann. Section 12-21-2748, 12-21-2802, and 12-21-2804(A) of the South Carolina Video Games Machine Act on November 22, 1996. The citation
issued to the Respondents alleged violations of the "single place or premise" provision of Section
12-21-2804(A) and the "separate employee" requirement contained in Regulation 117-190, as
well as a violation of the owner identification requirement of Section 12-21-2748 and the penalty
sign provision of Section 12-21-2802. The Regulatory violation and assessment report issued by
the Department sought the imposition of monetary fines against both Respondents, the revocation
of the thirteen (13) Class III COD licenses, and the closing of the two rooms found to be in
violation for a period of 6 months. A Final Agency Determination was issued by the Department
on November 9, 1998 which sustained the fine and penalties.
This matter was set for a contested case hearing before the Hon. Ralph K. Anderson, III
of the Administrative Law Judge Division on March 2, 1999. Prior to the hearing, the parties
requested that such be canceled on the basis of the parties having reached a Settlement
Agreement in the following particulars:
1. Respondents agree to pay a fine to the Department in the amount of $4,500.00 within
thirty (30) days of the signing of this Order. Respondents Power Players, Inc. and Riptide
Construction Company, Inc. are jointly and severally liable for the payment of this fine.
2. Respondent further agrees to close the rooms doing business as "Power Play II" and
"Power Play III", located at 208 S. Fraser Street, Georgetown, South Carolina, and as further
indicated on the attached Exhibit A, for a period of six months commencing on the date of the
signing of this Order.
3. The Department agrees and consents to lift any period of time remaining on the six
month suspension imposed and agreed to in Paragraph 2 should the South Carolina Supreme
Court render a final decision in the case of Gateway Enterprises, Inc. v. S. C. Dept. of Revenue,
argued before the Court in March 1998, which affirms the Order of the Circuit Court finding that
a six month moratorium on the operation of Class III video game machines is an inappropriate
penalty under the Video Game Machines Act.
4. As all of the Class III COD licenses in use at "Power Play II" and "Power Plat III" on
the date of the inspection last expired on May 31, 1998, the requested revocation of these
licenses is waived by the Department.
5. The Department further waives its request for the remainder of the monetary fine
initially sought in this action.
6. The parties agree and understand that this constitutes a final settlement of all issues
and violations presented before the Court in this matter.
Having reviewed this agreement, and having determined it to be a fair and equitable
settlement of the action herein, I hereby ORDER its adoption and dismiss the Petition in this
matter with prejudice.
_________________________ __________________________
Jeffrey M. Nelson, Esq. H. Buck Cutts, Esq.
Counsel for Regulatory Litigation Attorney for the Respondents
S.C. Department of Revenue 825 Fifth Avenue North
P.O. Box 125 Post Office Box 14520
Columbia, SC 29214 Surfside Beach, SC 29587
(803) 898-5172 (843) 238-3442
IT IS SO ORDERED
_________________________
Hon. Ralph K. Anderson, III
Administrative Law Judge
March 8, 1999
Columbia, SC |