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:
Angela W. Ross, d/b/a Rack-Em-Up vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Angela W. Ross, d/b/a Rack-Em-Up

Respondents:
South Carolina Department of Revenue

Intervenor-Protestant:
Blessed Hope New Life Gospel Church
 
DOCKET NUMBER:
97-ALJ-17-0228-CC

APPEARANCES:
For the Petitioner: Bruce A. Byrholdt, Esq. For the Respondent/South Carolina Department of Revenue:

Arlene D. Hand, Esquire (excused from appearance at hearing)

For the Intervenor: William H. Ehlies, Esq.
 

ORDERS:

FINAL 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 & Supp. 1996) for a hearing pursuant to the application of Angela W. Ross, d/b/a Rack-Em-Up ("Petitioner") for an on-premises beer and wine permit (AI 111732) for the premises located at 214 U Street, Honea Path, Anderson County, South Carolina ("location").

A hearing was held on August 5, 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 the following: Blessed Hope New Life Gospel Church, Lee Rawl, principal of Gantt Elementary School, Glenda Ricketts, Cathy Knight, Biff Kimmons, Patti P. Barrett, Debbie Hawkins, Elizabeth Plemmons, Mary Waldron, Gail F. Riddle and Helen S. Wilson. Reverend Fay Terry, pastor of the Blessed Hope New Life Gospel Church ("Church") was the only protestant appearing at the hearing. She testified in opposition to the grant of the application.

The Church moved to intervene and its motion was granted without objection. The South Carolina Department of Revenue ("Department"), as set forth in the agency transmittal form and its Motion to Be Excused, advised the Division it would have issued the permit to the Petitioner but for the protest. The Department's Motion to Be Excused from appearing at the hearing was granted by Order dated May 19, 1997.

The application request for the on-premises beer and wine permit is granted.

EXHIBITS


Certified copies of documents forwarded to the Administrative Law Judge Division from the Department are made a part of the record. At the hearing, the petitioner placed into the record, without objection, a video of the proposed location and the surrounding area. Respondent placed into the record, without objection, two exhibits, a tax map of the general vicinity at the proposed location, and various incident reports.



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, the protestants and the intervenor/Church.

3. Petitioner is seeking an on-premises beer and wine permit (AI 111732) for a club/billiards lounge known as "Rack-Em-Up", located at 214 U Street, Honea Path, Anderson County, South Carolina. The location is within the city limits of City of Honea Path and is primarily residential in nature; however, a beauty salon and a funeral home are located across the street..

4. The location fronts on U Street and is one lot away from the intersection of U Street and Rouse Street. Both Liberty Baptist Church and Gantt Elementary School are approximately two blocks in distance from the location. Blessed Hope New Life Gospel Church is also located on U Street but is farther in distance from the proposed location than the school.

5. Across the street from the location is a small club/bar where beer and wine are sold for on-premises consumption. Inside that location are three or four tables, a juke box and a bar. No pool tables are located inside.

6. All churches and schools in the general neighborhood are more than three hundred feet in distance from the proposed location. See Intervenor's Exhibit # 2.

7. The building at the location has been utilized in the past for a lounge or club. No other businesses are proposed to be located inside the building at the present. The previous establishment at this location was called the "Last Stop Lounge". Although there was a history of criminal violations at this location when it was previously permitted by the Department, Petitioner was not a part of the ownership or management during that period.

8. There is a vacant lot between the location and the intersection of U Street and Rouse Street. Playground equipment used to be located on this lot but has been removed therefrom. The owner of that lot is unknown.

9. Petitioner was born on January 19, 1965 and is thirty two (32) years of age. She lives in Greenville, South Carolina. She is single and works at G & L Promotional Fabrics. Her hours of employment at this company are from 8:30 a.m. to 4:00 p.m., Monday through Thursday, and from 8:30 a.m. to 1:00 p.m. on Friday.

10. Petitioner is a resident and citizen of the State of South Carolina and has been for more than thirty days prior to the filing of the application. She is leasing the location from its owners, William Melvin Mattison and Samuel McMullin, for the sum of $425.00 monthly. Neither of the owners of the building have any interest in this business nor will they participate in its management or ownership in the future.

11. Petitioner has never had a beer and wine permit or a business sale and consumption license revoked.

12. Petitioner intends to offer chips, hot dogs and sandwiches to her patrons. Petitioner intends that the business will operate as a billiards or pool hall with two pool tables.

13. Notice of the application has appeared at least once a week for three (3) consecutive weeks in The Belton & Honea Path News Chronicle, a newspaper of general circulation in the local area where the Petitioner proposes to engage in this business.

14. Notice of the application has been given by the display of a sign for a minimum of fifteen (15) days at the site of the proposed location by a State Law Enforcement Division officer.

15. Petitioner is of good moral character and has no record of any criminal convictions.

16. Petitioner intends to open the business the general public between the hours of 4:00 p.m. and 12:00 a.m., Monday through Saturday. She intends to take an active part in its management and to be present during its normal operating hours when she is not gainfully working at her job, i.e., from approximately 4:30 p.m. until closing. Her brother will also assist her in its operation.

17. Only individuals twenty one (21) years of age or older will be allowed in the location. 18. Neither loud music nor video game machines will be allowed at the location.

19. Petitioner will install additional exterior lights at the location to ensure that the areas outside are well lighted for security purposes.

20. There is sufficient parking at the location to accommodate its patrons and to prevent parking in the public thoroughfares.

21. The application was not protested by the local police department nor by the county sheriff's office.

22. The Reverend Fay Terry of the Blessed Hope New Life Gospel Church testified in opposition to the application. It is her position as the spokesperson of her church that activities at this location will be a bad influence on the parishioners at her church and the children who attend the elementary school. She feels that activity at a billiard/pool hall generates crime. Her concerns also address drinking alcohol to the extreme as well as the using and selling of drugs at the location. Also, she is concerned that the proposed business will bring increased traffic with its attendant problems.

23. Except for the protests filed, the Department would have issued the beer and wine permit.



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. § 61-4-520 (Supp. 1996), which sets forth the requirements for the issuance of a beer and wine permit, provides in part:

No permit authorizing the sale of beer or wine may be issued unless:

1) The applicant, any partner of co-shareholder of the applicant, and each agent, employee and servant of the applicant to be employed on the licensed premises, are of good moral character.

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

3) The wholesale applicant is a legal resident of the United States and has been a legal resident of this State for at least thirty days before the date of application and has maintained her principal place of abode in the State for at least thirty days before the date of application or has been licensed previously under the laws of this State.

4) The applicant, within two years before the date of application, has not had revoked a beer or wine permit issued to him.

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

6) The location of the proposed place of business of the applicant is in the opinion of the department a proper one.

7) The department may consider, among other factors, as indications of unsuitable location, the proximity to residences, schools, playgrounds and churches. This item does not apply to locations licensed before April 21, 1986.

8) 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, city, or community in which the applicant proposes to engage in business. The department must determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in 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 liquor license may use the same advertisement for both if the advertisement is approved by the department.

9) 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 permit sought;

(b) state where an interested person may 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.

3. Petitioner has met the qualifications set forth in S.C. Code Ann. § 61-4-520 (Supp. 1996), concerning her residency, age and moral character, as well as the publication and notice requirements.

4. S.C. Code Ann. § 61-6-120 (Supp. 1996) states that the Department shall not issue certain licenses to a place of business within a certain distance of a church, school or playground; however, locations for which beer and wine permits are requested are not subject to those specific restrictions.

5. 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. S.C. 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.

6. 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. S. C. 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).

7. 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). In this case, the testimony of the protestants consisted mainly of opinions and a claimed detriment to the community which is largely conjectural. Although there has been a history of criminal violations in the past at this location, there was not sufficient evidence presented at the hearing that the granting of a permit and license at the location to the Petitioner would result in the same situation as in the past. Petitioner is aware of the problems that occurred at this location and is also aware that if they occur under her management, she will be subject to monetary penalties and to the loss of the permit. I find that the petitioner is credible in her appearance and testimony and that the permit should be granted to her. Further, if a situation at a permitted location rises to the level that the safety and well-being of residents of the community are threatened, then evidence to that effect may be presented to the Department at the time of any future renewal or issuance of a permit.

8. Standards for judging the suitability of a proposed location for the sale of beer, wine or liquor are not determined by a local community's religious convictions. Criteria must be uniform, objective, constant and consistent throughout the State. The sale of beer, wine or liquor is a lawful enterprise in South Carolina, as regulated by the State.

9. S.C. Code Ann. § 61-4-540 (Supp. 1996) states that upon a determination that an applicant meets the requisite qualifications and conditions, is a fit person and the proposed place of business is a proper one, the department must issue the permit after payment of the fee as required by law.

10. Permits and licenses issued by the State for the sale of liquor, beer, and wine are not rights or property, but are rather privileges granted in the exercise of the police power of the State to be used and enjoyed only so long as the restrictions and conditions governing them are complied with. As the tribunal authorized to grant the issuance of a permit is also authorized, for cause, to revoke it, that tribunal is likewise authorized to place restrictions or conditions on the permit or license. See Feldman v. S.C. Tax Comm'n, 203 S.C. 49, 26 S.E.2d 22 (1943).

11. S.C. Code Ann. § 61-2-160 (Supp. 1996) prohibits the issuance, renewal or transfer of a permit or license under Title 61 if the applicant owes state or federal government delinquent taxes, penalties or interest.

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 retail beer and wine permit at the location. I further conclude that the proposed location is a proper one for granting the permit.



ORDER


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

ORDERED that the application of Angela W. Ross, d/b/a Rack-Em Up, for an on-premises beer and wine permit at 214 U Street, Honea Path, Anderson County, South Carolina is granted, and

IT IS FURTHER ORDERED that the Department of Revenue issue the permit upon Petitioner's compliance with the requirements of S.C. Code Ann. § 61-2-160 (Supp. 1996) and

upon Petitioner's payment of the required fees and costs.

AND IT IS SO ORDERED.







__________________________________

Marvin F. Kittrell

Chief Judge

Columbia, South Carolina

October 3, 1997


Brown Bldg.

 

 

 

 

 

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