South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

CAPTION:
Valley M. Henry, d/b/a 378 East Game room vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Valley M. Henry, d/b/a 378 East Game room

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
96-ALJ-17-0181-CC

APPEARANCES:
Valley M. Henry (Pro Se)
S.C. Department of Revenue and Taxation

Respondent (Not present at the hearing)

Don B. Edgeworth, Protestant (Pro Se)
 

ORDERS:

ORDER AND DECISION

This matter comes before me pursuant to S.C. Code Ann. § 61-1-55 (Supp. 1995) and S.C. Code Ann. §§ 1 -23-310, et seq. (Supp. 1995) for a hearing on the application of Valley M. Henry. Petitioner seeks an on-premises beer and wine permit (AI 107361) for a social club/game room located at 904 East Myrtle Beach Highway, Scranton, South Carolina.

After timely notice to the parties and the Protestant, a hearing was held at the Administrative Law Judge Division in Columbia, South Carolina. The Protestant of record, Don B. Edgeworth, appeared at the hearing. The Protestant did not move to intervene as a party. The issues considered at the hearing were: (1) the Petitioner's eligibility to hold a beer and wine permit; (2) the suitability of the proposed business location; and, (3) the nature of the proposed business activity. The on-premises beer and wine permit is hereby granted with specific restrictions.

FINDINGS OF FACT

Having carefully considered all testimony and arguments presented at the hearing of this matter, and taking into account the credibility and accuracy of the evidence, I make the following Findings of Fact by a preponderance of the evidence:

1. Petitioner seeks an on-premises beer and wine permit for a social club/game room located at 904 East Myrtle Beach Highway, Scranton, South Carolina, which is located in Florence County.

2. Petitioner's application to the South Carolina Department of Revenue and Taxation ("Department") was made a part of the record by reference.

3. The proposed location is situated in a rural area of Florence County, South Carolina. The social club/game room is located directly off Highway 378. There are two businesses licensed to sell beer and wine within one mile of the proposed location.

4. No church, school, or playground is within close proximity to the proposed location.

5. The proposed location has been previously permitted to sell beer and wine on-premises under several different managements.

6. Petitioner operates and manages the proposed location as a social club/game room which is open for business daily, but mainly on weekends as she and her husband both have jobs independent of the social club/game room. Also, the Petitioner resides approximately one mile from the proposed location.

7. Petitioner leases the proposed location from Mr. Jimmy Fryar.

8. The State Law Enforcement Division ("SLED") completed a criminal background investigation of the Petitioner which revealed no criminal convictions. Petitioner has not engaged in acts or conduct that imply the absence of good moral character.

9. Petitioner is at least 21 years of age, a U.S. citizen, a citizen of the State of South Carolina, and has maintained her principal residence in the state for at least thirty (30) days prior to the date of making application for an on-premises beer and wine permit.

10. Petitioner has never held a beer and wine permit. Accordingly, Petitioner has not had a permit or license for the sale of alcoholic beverages revoked within the past two years.

11. Notice of the application appeared in the Florence Morning News, a newspaper of

general circulation in the area of the proposed location, for three (3) consecutive weeks and notice was posted at the proposed location for fifteen (15) days.

12. The Department did not oppose the application.

13. The Protestant testified in opposition to the application. The following problems were associated with the location when it was previously permitted with an on-premises beer and wine permit and cited by the Protestant: (1) excessive litter; (2) outside public consumption; and, (3) excessive noise emanating from persons racing cars, breaking bottles, and firing guns on the subject premises. However, Petitioner has been open for business since September of 1995 and the Protestant has not experienced any disturbances because of this operation.

14. The Protestant's residence is located approximately 600 feet from the proposed location.

15. The Protestant conceded that most, if not all, of his concerns have been satisfied

because of Petitioner's stipulations.

STIPULATIONS

1. Petitioner voluntarily agrees, as a condition to the issuance of a beer and wine permit, that she will only open for business during the hours of 2:00 p.m. to 12:00 a.m. daily.

2. Petitioner voluntarily agrees, as a condition to the issuance of a beer and wine permit, to be responsible for cleaning up all litter reasonably attributable to her business.

3. Petitioner voluntarily agrees, as a condition to the issuance of a beer and wine permit, to take all precautions necessary to eliminate unreasonably loud noise emanating from the proposed location and to patrol the immediate grounds around the premises to prevent consumption of beer or wine outside the structural confines of the permitted premises.

CONCLUSIONS OF LAW AND DISCUSSION

Based upon the foregoing Findings of Fact, I conclude, as a matter of law, the following:

1. S.C. Code Ann. § 61-1-55 (Supp. 1995) and Chapter 23 of Title 1 of the 1976 Code, as amended, authorizes the South Carolina Administrative Law Judge Division to hear this case.

2. S.C. Code Ann. § 61-9-320 (Supp. 1995) establishes the criteria for the issuance of a beer and wine permit.

3. Although "proper location" is not statutorily defined, broad discretion is vested in

the Administrative Law Judge Division in determining the fitness or suitability of a particular location. Fast Stops. Inc. v. Ingram, 276 S.C. 593, 281 S.E.2d 181 (1981).

4. As the trier of fact, an administrative law judge is authorized to determine the fitness or suitability of the proposed business location of an applicant for a permit to sell beer and wine using broad, but not unbridled discretion. Ronald F. Byers v. S.C. Alcoholic Beverage Control Comm'n, 281 S.C. 566, 316 S.E.2d 705 (Ct. App. 1984).

5. Petitioner meets all of the criteria enacted by the South Carolina General Assembly for the issuance of an on-premises beer and wine permit. The Protestant found the issuance of a beer and wine permit to Petitioner objectionable mainly because of problems associated with the location when it was previously permitted with an on-premises beer and wine permit. As to the Protestant's concerns of excessive litter, outside public consumption of beer and wine, and loud noise, Petitioner has agreed to be responsible for cleaning up all litter reasonably attributable to her business. Also, Petitioner has agreed to take all precautions necessary to avoid unreasonably loud noise and prevent outside consumption of beer and wine. Further, Petitioner has agreed to open for business only between the hours of 2:00 p.m. and 12:00 a.m. These measures should adequately prevent the aforementioned problems from reoccurring. Further, Petitioner is instructed and encouraged to diligently adhere to the stipulations, so that her business may harmoniously coexist with the Protestant and any other near-by residents. Also, Petitioner should be mindful that beer and wine permits are neither contracts nor property rights, but are mere permits issued or granted in the exercise of the State's police power, and are to be enjoyed only so long as the restrictions and conditions governing their continuance are complied with. Feldman v. S.C. Tax Comm'n, 203 S.C. 49, 26 S.E.2d 22 (1943).

6. The determination of suitability of a location is not necessarily a function solely of geography. It involves an infinite variety of considerations related to the nature and operations of the proposed business and its impact on the community within which it is to be located. Kearney v. Allen, 287 S.C. 324, 338 S.E.2d 335 (1985), Schudel v. S.C. Alcoholic Beverage Control Comm'n, 276 S.C. 138, 276 S.E.2d 308 (1981).

7. The proposed location is suitable as the issuance of an on-premises beer and wine permit would not have an adverse impact on the community if the stipulations are adhered to by the Petitioner. The proposed location and the nature of the business activity are suitable and proper given the rural nature of the area in which the proposed location is situated, and the existence of other businesses that sell beer and wine within a close proximity to the proposed location.

8. Without sufficient evidence of an adverse impact on the community, the application must not be denied if the statutory criteria are satisfied. The fact that the issuance of a permit or license is protested is not a sufficient reason by itself to deny the application. See 45

Am. Jur. 2d Intoxicating Liquors § 162 (Supp. 1994); 48 C.J.S. Intoxicating Liquors § 119 (1981).

ORDER

Based upon the Findings of Fact and Conclusions of Law, it is hereby:

ORDERED that an on-premises beer and wine permit is hereby granted to Valley M.

Henry and stipulations 1, 2, and 3 shall be placed as restrictions upon Petitioner's on-premises beer

and wine permit consistent with 23 S.C. Code Ann. Regs. 7-88 (1976).

IT IS FURTHER ORDERED that the Department of Revenue and Taxation issue an on-

premises beer and wine permit for a location at 904 East Myrtle Beach Highway, Scranton, South

Carolina upon payment of the required fee(s) and cost(s) by the Petitioner.

AND IT IS SO ORDERED.



____________________________________

JOHN D. GEATHERS

Administrative Law Judge

Edgar A. Brown Building

1205 Pendleton Street

Columbia, South Carolina 29201





June 25, 1996

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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