ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal of the above named Respondents of a citation issued by
the Petitioner South Carolina Department of Revenue ("Department") against the Respondents by the South
Carolina Law Enforcement Division for four (4) violations of S.C. Code Ann. Section 12-21-2804(A) and
Regulation 117-190 on May 25, 1999. The Regulatory violation and assessment report issued by the
Department sought the imposition of $5,000.00 fines against each of the Respondents for each of these
violations, that the ten Class III COD licenses in these four locations be revoked and that these four locations
be prohibited from the use of Class III machine licenses for a period of six months subsequent to such
revocation. A Final Agency Determination issued by the Department on August 31, 1999 sustained these
fines and penalties.
This matter was transmitted to the Administrative Law Judge Division for a contested case hearing on March
2, 2000. Prior to a hearing being scheduled in this matter, the parties informed the court that they had
reached a compromise under the following terms and conditions:
1. Respondents admit to violations of the single place or premise requirement of Section 12-21-2804(A) on
May 25, 1999 at Champions I, II, III, and IV.
2. The Respondent McDonald agrees to the revocation of eight (8) current Class III COD licenses, with
expiration dates of May 31, 2000 sought by the Department in this matter. These licenses will be turned
over to the Department of Revenue by the Respondents by not later than March 17, 2000.
3. The remaining twelve (12) Class III COD licenses at issue in this case expired on May 31, 1999. The
revocation of these licenses is, therefore, considered moot by the parties for the purposes of this settlement
and Order.
4. The Respondent Champions of Georgetown I, Inc. agrees to abstain and desist from the use of any Class
III video game licenses or machines at the three locations or premises located at 630 Fraser Street in
Georgetown, South Carolina which were operating as "Champions I", "Champions II", "Champions III",
and "Champions IV" as agreed to by the parties and as shown on the diagram of the location which is
attached hereto as Exhibit A. The six month prohibition on the use of Class III video game machines at
these locations shall commence on March 17, 2000 and end on September 17, 2000, or until such time as the
use of these machines is otherwise illegal under South Carolina law, whichever shall come first.
5. The Respondents James R. McDonald, III and Champions of Georgetown I, Inc. further agree to pay to
the Department of Revenue a fine in the amount of $2,000.00 by not later than March 31, 2000. Both
Respondents shall be jointly and severally liable for the payment of this fine.
6. Ini consideration for the above stated admission and voluntary revocation and room closures, the
Department agrees to wave the monetary fines and penalties sought in this action.
7. The parties agree and understand that this constitutes a final settlement of this matter.
Having rerviewed this agreement and the terms thereof, I hereby ORDER its adoption and dismiss the
Petition in this matter with prejudice.
Jeffrey M. Nelson Robert G. Rikard
Counsel for Regulatory Litigation Richard A. Harpootlian, P. A.
S.C. Department of Revenue Attorney for the Respondents
P. O. Box 125 P. O. Box 1090
Columbia, SC 29214 Col
__________________________________
RAY N. STEVENS
Administrative Law Judge
This 14th day of March, 2000
Columbia, South Carolina |
