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Acting Governor folds to AG
After issuing an executive directive to the Department of Revenue and Taxation to renew the licenses of more than 972 amusement devices determined by the Office of the Attorney General as illegal gambling devices, Acting Governor Mike Cruz has since revoked that directive.
It was on June 30 the licenses for the devices were to expire. The controversial order was given to Rev and Tax by the Acting Governor on the very same day the licenses were to expire. The Acting Governor defended his directive by stating that it wasn’t an issue of gambling but rather he felt that there were certain constitutional rights that were being violated, “it’s an issue of fairness and due process,” the Acting Governor told KUAM on July 1.
According to a copy of a demand letter dated July 3 issued by the Office of the Attorney General, Rev and Tax was ordered to revoke the licenses issued to Guam Music Inc. (the largest supplier of Liberty machines on Guam) and D&D Games, “Although you had given a non-renewal notice to Guam Music Inc. and D&D games for certain devices owned by these companies, you reversed that decision on or about July 1, 2008 and allowed these companies to license their gambling devices. The renewal of the licenses for these devices was improper,” the letter stated.
As KUAM News reported amusement devices owned by Guam Music Inc. and D&D games were the only licenses that were renewed because they were the only two companies that had filed an appeal to Rev and Tax’s non-renewal policy with the General License Board. Other licenses for similar games were not renewed because owners of the devices had not filed an appeal, “The Attorney General also demands the DRT seize and confiscate any devices being operated without a license as referenced herein. This would include those devices that do not now have licenses because the licenses were not renewed pursuant to your May 30, 2008 non-renewal notice,” the letter stated.
The demand letter which was signed by Deputy Attorney General Patrick Mason warned that if the Department of Revenue and Taxation does not enforce Guam’s laws as it relates to gambling devices the Office of the Attorney General will take appropriate action to compel DRT to perform its regulatory duties.
After the demand letter was issued, a meeting was held today with the Acting Governor’s Office and the Department of Revenue and Taxation. As a result, the Lt. Governor instructed the agency to issue a notice of intent to revoke the licenses issued to Guam Music Inc. and D&D Games.
The Attorney General’s Office will assist with this process and noted, via an inquiry from KUAM, that it is the intent of the Government of Guam, that should any issue arise regarding the legality of these devices, that it be addressed and resolved in the adjudication or legal process.
We should note that on the day the licenses were not to be renewed; Guam Music Inc. via their attorneys Randy Cunliffe and the Lujan, Aguigui, and Perez Law firm filed a motion for a temporary restraining order against Rev and Tax. An ex-parte hearing was held before Superior Court Judge Pro-Tem Robert Klitzkie on June 30. Judge Klitzkie had ordered that the machines were to remain inoperable until he holds a hearing on July 10. Guam Music Inc. Attorney Randy Cunliffe said he had filed a motion to dismiss the case, because the acting Governor’s directive negated the need to continue pursuing legal action because all their licenses were renewed.
In the meantime, the General License Board’s Administrative Hearing Officer Anthony Camacho has scheduled a hearing on Guam Music Inc. and D&D Games appeal for August 1.
Read the Rev & tax demand letter
Read the gambling release
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