ORDERS:
FINAL ORDER AND DECISION
I. Statement of the Case
Jack Schweier (Schweier) filed with the South Carolina Department of Revenue (DOR), an
application for an minibottle license and an on-premises beer and wine permit to be used at a non-profit private club located at 510 Highway 418, Fountain Inn, South Carolina. In addition Schweier
also filed with DOR a request for a retail liquor license to be used at the next door location of 508
Highway 418, Fountain Inn, South Carolina. DOR denied both applications on the ground that
Schweier was not a suitable person and lacked good moral character.
II. Issue
Is Schweier a suitable person to obtain a retail liquor license and does Schweier have the requisite
good moral character needed to receive a minibottle license and an on-premises beer and wine
permit?
III. Analysis
A. Findings of Fact
Based on the preponderance of the evidence, the following findings of fact are entered:
During the mid to late 1990's, Schweier lived in Florida. While in Florida, Schweier was convicted
of a DUI and of obstructing an arrest in 1996. In addition, in 1997, a law enforcement official found
Schweier in possession of one quarter of a gram of cocaine. As a result of that offense, Schweier
initially entered a PTI program. However, due to his father’s illness in South Carolina and
Schweier’s desire to assist him, Schweier chose not to complete the PTI program but instead to enter
a plea of guilty to possession of cocaine. He received a sentence of probation.
The probation sentence allowed Schweier to leave Florida but specifically required him to report
once a month by letter to his Florida probation officer. Schweier was in initial compliance with the
probation, but later failed to continue giving the monthly notice. As a result, Schweier was identified
by Florida as a fugitive from justice.
Upon coming to South Carolina, Schweier assisted his father during the father’s illness. In addition,
Schweier has performed plumbing duties for several customers and has done so in a professional and
courteous manner. Further, he is timely in his rent payments to his landlord and continues to
maintain helpful contacts with a friend in Florida who has suffered from cancer.
In 2004, Schweier filed an application with DOR seeking a retail liquor license and filed a separate
application seeking a minibottle license and a beer and wine permit for a non-profit private club.
The retail liquor license application asked if Schweier had a criminal record. He answered "no."
On the second application seeking a minibottle license and a beer and wine permit, the application
again asked if he had a criminal record. Schweier did not answer the question.
B. Conclusions of Law
Based on the foregoing Findings of Fact, I conclude the following as a matter of law:
After obtaining a license (see S.C. Code Ann § 61-6-1800 (Supp. 2003)), a nonprofit organization
may sell alcoholic liquors in minibottles. S.C. Code Ann. § 61-6-1600(A) (Supp. 2003). If the
license to be used by the organization will be held by an individual, that individual must be "of good
moral character." S.C. Code Ann § 61-6-1820(2) (Supp. 2003). Similarly, if the organization seeks
to also sell beer or wine, a beer and wine permit must be obtained (see S.C. Code Ann. § 61-4-500)
and must be issued to a holder who is "of good moral character." S.C. Code Ann. 61-4-520(1) (Supp.
2003). Likewise, to sell liquor at retail, a license is required (S.C. Code Ann. § 61-6-100(3) (Supp.
2003)) with the license holder being one "of good repute" (S.C. Code Ann. § 61-6-110(3) (Supp.
2003) as well as being a "suitable person." S.C. Code Ann. § 61-6-910(1) (Supp. 2003).
Under the facts of this case, Schweier fails to meet the requirements of being a "suitable person" to
hold a retail liquor license and fails to have the “good moral character” needed to hold either a
minibottle license or a beer and wine permit. In South Carolina, concealing or misstating one’s
criminal history on an application is highly significant and forms a basis for denying a requested
permit or license. Wall v. South Carolina Alcoholic Beverage Control Commission, 269 S.C. 13,
235 S.E.2d 806 (1977) (applicant seeking a beer and wine permit was an “unsuitable person” since
he had a criminal record but “had answered in the negative to a question on his sworn application
regarding whether he had a criminal record.”). Indeed, a failure to disclose information after being
specifically asked for such information is a basis for finding a lack of good moral character.
Godfather, Inc. v. City of Bloomington, 375 N.W.2d 68 (Minn. App. 1985) (there a failure to
disclose requested information on an application brought into question the applicant’s honesty and
supported a denial of a liquor license “because of a lack of good moral character.”).
Here, in completing the two applications involved in the instant case, Schweier misstated the truth
in one application, and in the other he failed to disclose the truth. The application for a retail liquor
license asked if Schweier had a criminal record. He misstated the truth by answering "no." Further,
on his second application seeking a minibottle license and a beer and wine permit, he was again
asked if he had a criminal record. On that application, Schweier left the question unanswered and
thus failed to disclose the truth. Such actions establish that Schweier is not a suitable person to hold
a liquor license and that he lacks the required degree of honesty required for good moral character.
As a separate grounds for denial of the licenses and permits sought, “it is a generally recognized
principle that a liquor license may be refused a person who has previously been convicted of a crime
or crimes, particularly a violation of the liquor laws.” Wall v. South Carolina Alcoholic Beverage
Control Commission, 269 S.C. 13, 235 S.E.2d 806 (1977). Similarly, committing a crime involving
moral turpitude indicates a lack of good moral character and forms a basis for denying a license or
permit. 48 C.J.S. Intoxicating Liquors § 105 (1981). Particularly noteworthy for the instant case,
a conviction for possession of cocaine is a crime of moral turpitude. State v. Major, 301 S.C. 181,
391 S.E.2d 235 (1990). Here, Schweier’s convictions involve both cocaine and alcohol.
In December 1996, Schweier was convicted of a DUI and of obstructing an arrest. Further, while
living in Florida in 1997, he entered a PTI program as the result of a law enforcement officer finding
Schweier in possession of one quarter of a gram of cocaine. However, Schweier did not complete
the PTI program. Instead, he entered a plea of guilty to possession of cocaine and received a
sentence of probation. While the terms of the probation allowed Schweier to leave Florida, the terms
specifically required him to report once a month by letter to his Florida probation officer. Schweier
failed to comply. Accordingly, Florida designated Schweier a fugitive from justice. Such crimes
and past actions are inconsistent with being a suitable person for a liquor license or with being a
person having good moral character.
IV. Order
Based upon the Findings of Fact and Conclusions of Law, it is hereby ordered:
DOR is directed to deny Jack Schweier's application for a minibottle license, an on-premises beer
and wine permit, and a retail liquor license for use at 508 and 510 Highway 418, Fountain Inn, South
Carolina.
AND IT IS SO ORDERED.
_________________________________
RAY N. STEVENS
Administrative Law Judge
Dated: September 30, 2004
Columbia, South Carolina |
