ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal of the Respondent 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. § 12-21-2804(C) (Supp. 1999) occurring on June 7, 1999. The citation issued to Respondents on that date was
for a violation of that provision of the Act prohibiting cash payouts to persons under the age of 21 as the result of the
operation of machines licensed under S.C. Code Ann. § 12-21-2720(A)(3). Specifically, the Department alleged that an
employee of the Respondent made a cash payout of $15.50 to an Underage Cooperating Individual (UCI) at a business
owned by and licensed to the Respondent and doing business as "Room 6" on that date in violation of Section 12-21-2804(C).
The Regulatory Violation and Assessment Report issued by the Department for this violation sought the revocation of the
Respondent Kokomo's retail sales tax license for Room 6 and the revocation of the five Class III coin-operated device
(COD) licenses in operation in this room. The COD licenses were, and are, held by a third party who is not a party to this
action. A Final Agency Determination was issued by the Department sustaining the imposition of the penalty assessed in the
violation report against the Respondent Kokomo's.
A hearing was scheduled in this matter before the Court on March 15, 2000. Prior to the hearing, an agreement was reached
between the parties resolving this matter on the following terms and conditions:
1. The Respondent Kokomo's, Inc., agrees to cease and desist from the use of any and all Class III video game machines at
the location and premises doing business as "Room 6" at 1420 Charleston Highway in West Columbia, South Carolina, for a
period of six months from the date of this Order.
2. The Respondent Kokomo's, Inc., further agrees to the voluntary revocation of Retail Sales Tax License Number
03231639-7, issued to Kokomo's, Inc., for the operation of a location under the trade name "Room 6," and to remit the
license to the Department within fifteen days of the date of this Order.
3. The Department agrees, pursuant to S.C. Code Ann. § 12-21-320(3) (Supp. 1999) to waive any and all remaining
penalties or fines resulting from this violation.
Having reviewed this agreement and settlement in compromise, I hereby ORDER its adoption and dismiss the Petition in this
matter with prejudice.
___________________________ ___________________________
Jeffrey M. Nelson John G. O'Day
Counsel for Regulatory Litigation Attorney for Kokomo's, Inc.
P.O. Box 125 P.O. Box 5709
Columbia, S.C. 29214 West Columbia, S.C. 29171
(803) 898-5172 (803) 796-9160
AND IT IS SO ORDERED.
___________________________
Ralph King Anderson, III
Administrative Law Judge
Columbia, South Carolina
March 24, 2000 |
