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:
Jacquelyn J. Bethea, d/b/a Sunset Grill #2 vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Jacquelyn J. Bethea, d/b/a Sunset Grill #2

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
97-ALJ-17-0216-CC

APPEARANCES:
For the Petitioner: Robert M. McMinnis, Esq. & Louis Cook, Esq.

For the Respondent/South Carolina Department of Revenue: Arlene D. Hand, Esquire (Excused from appearance at the hearing)
 

ORDERS:

ORDER AND DECISION

STATEMENT OF THE CASE


This matter comes before the Administrative Law Judge Division pursuant to S.C. Code Ann. § 61-2-260 (Supp. 1996) and S.C. Code Ann. §§ 1-23-310 et seq. (1986 and Supp. 1996) for a hearing pursuant to the application of Jacquelyn J. Bethea, d/b/a Sunset Grill # 2 ("Applicant" or "Petitioner") for an on-premise sales and consumption ("minibottle") license (AI 113407) for the premises located at 91 South Ocean Blvd., North Myrtle Beach, Horry County, South Carolina ("location").

A hearing was held on June 16, 1997, at the offices of the Administrative Law Judge Division ("Division"), Columbia, South Carolina. The issue considered was the suitability of the proposed location.

The application was protested by Barbara T. Wills of 941 Tiffany Lane, North Myrtle Beach, South Carolina ("Protestant"). She appeared at the hearing and testified in opposition to the issuance of the license. The South Carolina Department of Revenue ("Department"), as set forth in its Motion to Be Excused dated May 1, 1997, would have issued the license but for the protest. The Department's Motion to Be Excused from appearing at the hearing was granted by Order dated May 8, 1997.

The application request is granted with restrictions.

EXHIBITS

Certified copies of documents forwarded to the Administrative Law Judge Division from the Department are made a part of the record. Various other exhibits including photographs of the proposed location, diagrams of the surrounding area around the location, and letters from city and law enforcement officials expressing their support of the application were entered into the record at the hearing by the Applicant.



FINDINGS OF FACT

Having observed the witnesses and exhibits presented at the hearing and closely passed upon their credibility, taking into consideration the burden of persuasion by the Parties or Protestants, I make the following Findings of Fact by a preponderance of the evidence:

1. This Division has personal and subject matter jurisdiction.

2. Notice of the date, time, place and subject matter of the hearing was timely given to all parties and the protestant.

3. Petitioner presently holds an on-premises beer and wine permit (BW 103244) authorizing the consumption of beer and wine at the location. Petitioner is seeking a sale and consumption ("minibottle") license for her restaurant located at 91 South Ocean Boulevard, North Myrtle Beach, South Carolina.

4. Petitioner has never had a beer and wine permit or minibottle license revoked or suspended.

5. Notice of the application has appeared at least once a week for three (3) consecutive weeks in the North Myrtle Beach Times, a newspaper of general circulation in the local area where the applicant proposes to engage in business.

6. Notice of the application has been given by displaying a sign for a minimum of fifteen (15) days at the site of the proposed location.

7. Applicant is of good moral character and has no criminal record.

8. Applicant was born on March 20, 1953. She is forty-four (44) years old.

9. Applicant submitted letters from C.C. Sendler, Chief of Patrol for the North Myrtle Beach Department of Public Safety, and Terry White, City Councilman for North Myrtle Beach, expressing their support of her application and the suitability of the location.

10. The location is owned by Collins Properties, L.P. The company had no objection to the granting of a license.

11. The location is currently operating as a restaurant and arcade with a patio that opens onto the beach. Two adjoining businesses, an ice cream parlor and a teen nightclub, have doors that enter into the arcade area. The restaurant section of the location has seating for approximately forty (40) persons.

12. The location has been issued a Grade "A" Restaurant Rating by the Health Department. A variety of short order foods and grill items are served.

13. Sunset Grill #2 is located along one of the major thoroughfares in North Myrtle Beach. The area is commercial in nature, and there are numerous other establishments within a one-block radius of the location that have beer and wine permits and minibottle licenses.

14. There are no churches, schools, or playgrounds within five hundred feet (500') of the proposed location.

15. There is a large parking area at the location sufficient to allow its customers to keep their vehicles out of the public right of ways.

16. The Protestant voiced several concerns regarding the issuance of the license. She indicated that the proposed location was a popular arcade often frequented by young children. Protestant also objected to having liquor served at a location adjacent to a teen nightclub. She believed that such activities would have a negative influence on the young people who come to the location.

17. The Department would have issued the beer and wine permit but for the protest that was filed against the application.



CONCLUSIONS OF LAW

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

1. Pursuant to S.C. Code Ann. § 61-2-260 (Supp. 1996) and Chapter 23 of Title 1 of the 1976 Code, as amended, the South Carolina Administrative Law Judge Division has jurisdiction in this matter.

2. S.C. Code Ann.§ 61-6-1820 (Supp. 1996) sets forth the requirements for the issuance of a sale and consumption ("mini-bottle") license which provides as follows:

The Department may issue a license under subarticle 1 of this article upon finding:

1) The applicant is a bona fide nonprofit organization or the applicant conducts a business bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging.

2) The applicant, if an individual, is of good moral character or, if a corporation or association, has a reputation for peace and good order in its community, and its principals are of good moral character.

3) As to business establishments or locations established after November 7, 1962, § 61-6-120 has been complied with.

4) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, municipality, or community in which the applicant proposes to engage in business. The department shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published within the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. An applicant for a beer and wine permit and an alcoholic license may use the same advertisement for both if it is approved by the department.

5) Notice has been given by displaying a sign for fifteen days at the site of the proposed business. The sign must:

(a) state the type of license sought;

(b) tell an interested person where to protest the application;

(c) be in bold type;

(d) cover a space at least eleven inches wide and eight and one-half inches high;

(e) be posted and removed by an agent of the division.

6) The applicant is twenty-one years of age or older.

7) The applicant is a legal resident of the United States, has been a resident of this State for at least thirty days before the date of application, and has maintained his principal place of abode in this state for at least thirty days before the date of application.

8) The applicant has not been convicted of a felony within ten years of the date of application.

3. S.C. Code Ann. § 61-6-20 (2) and (3) (Supp. 1996), which define a bona fide business engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging, read in part as follows:

As used in the ABC Act, unless the context clearly requires otherwise:

(2) "Bona fide engaged primarily and substantially in the preparation and serving of meals" means a business which has been issued a Class A restaurant license prior to issuance of a license under Article 5 of this chapter, and in addition provides facilities for seating not less than forty persons simultaneously at tables for the service of meals.

(3) "Furnishing lodging" means those businesses which rent accommodations for lodging to the public on a regular basis consisting of not less than twenty rooms.

4. A license for the sale and consumption of alcoholic beverages must not be granted unless the provisions of § 61-6-1820 are met. In addition to the requirements contained in S.C. Code Ann. § 61-4-520, § 61-6-1820 requires that the mini-bottle licensee be either a bona fide non-profit

organization or conduct bona fide business engaged primarily and substantially in food preparation and service or the furnishing of lodging.

5. A license may not be issued pursuant to S.C. Code Ann. § 61-6-910 (Supp. 1996) if the department is of the opinion that: (1) applicant is not a suitable person to be licensed; (2) the store or place of business to be occupied by the applicant is not a suitable place; or (3) a sufficient number of licenses have already been issued in the State, incorporated municipality, unincorporated municipality or other community.

6. S.C. Code Ann. § 61-6-120 (Supp. 1996) prohibits the issuance of a liquor license for on-premises consumption if the place of business (location) is within three hundred feet (300') of any church, school or playground situated within a municipality or within five-hundred feet (500') of any church, school or playground situated outside of a municipality. No churches, schools or playgrounds are located within the prescribed proximity to render the proposed location unsuitable.

7. The factual determination of whether or not an application is granted or denied is usually the sole prerogative of the executive agency charged with rendering that decision. Palmer v. South Carolina ABC Comm'n, 282 S.C. 246, 317 S.E.2d 476 (Ct. App. 1984). 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. ABC Comm'n, 281 S.C. 566, 316 S.E.2d 705 (Ct. App. 1984). It is also the fact finder's responsibility to judge the demeanor and credibility of witnesses and determine the relevance and weight of any testimony and evidence offered.

9. Although "proper location" is not statutorily defined, broad discretion is vested in the judge in determining the fitness or suitability of a particular location. Fast Stops, Inc. v. Ingram, 278 S.C. 593, 281 S.E.2d 118 (1981). 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 operation 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). Any evidence adverse to the location may be considered. The proximity of a location to a church, school or residences is a proper ground by itself, on which the location may be found to be unsuitable and a permit denied. Byers v. South Carolina ABC Comm'n, 305 S.C. 243, 407 S.E.2d 653 (1991). Further, the court can consider whether "there have been law enforcement problems in the area." Palmer v. S.C. ABC Comm'n, 282 S.C. 246, 317 S.E.2d 476 (Ct. App. 1984).

10. In considering suitability of location, it is relevant to consider previous history of the location and to determine whether the testimony in opposition of a permit is opinions and conclusions or supported by facts. Taylor v. Lewis, 261 S.C. 168, 198 S.E.2d 801 (1973). The location in this case has operated under an on-premises beer and wine permit for several years. Although the location is frequented by young children and teenagers, no violations have ever been issued against the Petitioner or the location. The Protestant did not offer any factual evidence that granting a minibottle license would have a deleterious effect on the community at large. Letters of support from law enforcement and other city officials submitted at the hearing outweigh the generalized concerns raised by the Protestant. Furthermore, the presence of other licensed establishments across the street from the proposed location suggests that an additional minibottle license will not pose any serious threat to the safety or welfare of the community.

11. A violation of any regulation or code section of the Alcoholic Beverage Control Act is punishable by revocation or suspension of the license pursuant to S.C. Code Ann. § 61-6-1830 (Supp. 1996).

12. I conclude that the Petitioner has met her burden of proof in showing that she meets all of the statutory requirements for holding a sale and consumption ("minibottle") license at Sunset Grill #2, located at 91 South Ocean Boulevard in North Myrtle Beach, South Carolina. I further conclude that the proposed location is a proper one for granting the license.



ORDER

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

ORDERED that the application of Jacquelyn Bethea, d/b/a Sunset Grill #2 for a sale and consumption ("minibottle") license at the location found at 91 South Ocean Boulevard, North Myrtle Beach, South Carolina, is granted, and

IT IS FURTHER ORDERED that the South Carolina Department of Revenue shall issue the license upon Petitioner's payment of the required fees and costs.

AND IT IS SO ORDERED.



______________________________________

Marvin F. Kittrell

Chief Judge

Columbia, South Carolina

June 23, 1997


Brown Bldg.

 

 

 

 

 

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