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Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
Michael W. Jones, Jr., EDC Acquisition Corp., Eckerd Corp., d/b/a Eckerd Drugs # 8016 vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Michael W. Jones, Jr., EDC Acquisition Corp., Eckerd Corp., d/b/a Eckerd Drugs # 8016

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
99-ALJ-17-0023-CC

APPEARANCES:
Michael Thomas Lops, Esquire, for Petitioner

Mike Dickson, Pro Se Protestant
 

ORDERS:

FINAL ORDER AND DECISION

STATEMENT OF THE CASE



This matter comes before the Administrative Law Judge Division (Division or ALJD) pursuant to S.C. Code Ann. §61-2-260 (Supp. 1998), S.C. Code Ann. §61-4-520 (Supp. 1998) and S. C. Code Ann. §1-23-310 et seq. (1986 and Supp. 1998) for a contested case hearing pursuant to an off-premise beer and wine permit application filed by the Petitioner Eckerd Drugs #8016. The Respondent made a Motion to be Excused which was granted by my Order dated January 19, 1999. A hearing was held in this case before me on March 24, 1999 at the Division.

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 Petitioner and Protestant, I make the following Findings of Fact by a preponderance of evidence:

1. Notice of the time, date, place and subject matter of the hearing was given to the Petitioner, Protestant, and South Carolina Department of Revenue.

2. Eckerd Drugs #8016 is located at 2708 Rosewood Drive, Richland County, South Carolina. The proposed location is in a business area in which several locations within a half-mile radius are licensed to sell alcohol. However, this exact location, because it is a new structure, has never been permitted for the sale of beer or wine. The Petitioner now seeks an off-premise beer and wine permit for Eckerd Drugs. The Petitioner set forth in his application that the hours of operation would be 9:00

a.m. to 9:00 p.m., Monday through Saturday.

3. The qualifications set forth in Section 61-4-520 concerning the residency and age of the Petitioner are properly established. Furthermore, the Petitioner has not had a permit or license revoked within the last two years and notice of the application was lawfully posted in a newspaper of general circulation.

4. The Petitioner has no criminal record.

5. The proposed location is not unreasonably close to any church, school or playground.

6. The Protestant owns and operates The Montessori Preschool of Columbia. This business is located approximately 362 feet from the proposed location. The Protestant objects to the issuance of a permit to the Petitioner for the following reasons:

a. He believes too many locations in the Rosewood area have permits to sell beer, wine and/or liquor; and

b. He is concerned that trash will be thrown in the Preschool yard as a result of the sale of beer or wine at the proposed location.

7. Approximately eight locations within 1/2 mile of Eckerd Drugs #8016 currently hold on and off-premise beer, wine permits and/or liquor licenses.

8. The Protestant's argument appears to be based on a sincere concern for the Rosewood community in which he resides and operates his business. However, he did not offer a sound legal argument to establish that the granting of a permit for this store will harm the community or will result in excessive littering. Furthermore, the Petitioner stated at the hearing that no "single beers" will be sold at Eckerd Drugs #8016. This should alleviate most of the Protestant's concerns regarding trash accumulation as it will prevent the type of sale that could result in individuals discarding cans or bottles in the vicinity of the Protestant's property.

9. As no evidence was presented at the hearing to establish that the location of this business is unsuitable, the Petitioner's request for an off-premise beer and wine permit is granted with the stipulation set forth below.



STIPULATION

The Petitioner stipulated at the hearing that Eckerd Drugs would abide by the following stipulation if granted a beer and wine permit:

No single beers will be sold at Eckerd Drugs #8016.



CONCLUSIONS OF LAW

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

1. S.C. Code Ann. § 1-23-600 (Supp. 1998) grants jurisdiction to the Administrative Law Judge Division to hear contested cases under the Administrative Procedures Act.

2. S.C. Code Ann. § 61-2-260 (Supp. 1998) grants the Administrative Law Judge Division the responsibilities to determine contested matters governing alcoholic beverages, beer and wine.

3. S.C. Code Ann. § 61-4-520 (Supp. 1998) sets forth the requirements for the issuance of a beer and wine permit.

4. Although "proper location" is not statutorily defined, broad discretion is vested in the trier of fact in determining the fitness or suitability of a particular location. Fast Stops, Inc. v. Ingram, 276 S.C. 593, 281 S.E.2d 118 (1981).

5. As the trier of fact, the Administrative Law Judge is authorized to determine the fitness or suitability of the proposed business location of a Petitioner for a permit to sell beer and wine using broad, but not unbridled, discretion. Byers v. South Carolina ABC Commission, 281 S.C. 566, 316 S.E.2d 705 (Ct. App. 1984).

6. The determination of suitability of 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 upon the community within which it is to be located. Kearney v. Allen, 287 S.C. 324, 338 S.E.2d 335 (1985).

7. 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 a Protestant objects to the issuance of a permit is not a sufficient reason by itself to deny the application. See 45 Am. Jur. 2d Intoxicating Liquors § 162 (Supp. 1995); 48 C.J.S. Intoxicating Liquors § 119 (1981).

8. Permits and licenses issued by this state for the sale of liquor, beer and wine are not property rights. They are, rather, privileges granted in the exercise of the state's police power to be used and enjoyed only so long as the holder complies with the restrictions and conditions governing them. The Administrative Law Judge, as the tribunal authorized to grant the issuance of a permit, may likewise place restrictions or conditions on the permit or license. See Feldman v. S.C. Tax Commission, 203 S.C. 49, 26 S.E.2d 22 (1943). Furthermore, 23 S.C. Code Ann. Regs. 7-88 (1976) authorizing the imposition of restrictions to permits, provides:

Any stipulation and/or agreement which is voluntarily entered into by an applicant in writing for a beer and wine permit between the applicant and the South Carolina Alcoholic Beverage Control Commission, if accepted by the Commission, will be incorporated into the basic requirements for the enjoyment and privilege of obtaining and retaining the beer and wine permit and which shall have the same effect as any and all laws and any and all other regulations pertaining to the effective administration of beer and wine permittees.



In the event that evidence is presented to this Commission that any part of the stipulation or agreement is or has been knowingly broken by the permittee will be a violation against the permit and shall constitute sufficient grounds to suspend or revoke said beer and wine permit.



9. The Petitioner meets the statutory requirements for holding an off-premise beer and wine permit at the proposed location with the below-listed stipulation.

ORDER

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

ORDERED that the off-premise beer and wine permit application of Eckerd Drugs #8016 be granted upon the Petitioner signing a written Agreement with the South Carolina Department of Revenue agreeing to the stipulation set forth below:

No single beers will be sold at Eckerd Drugs #8016.



IT IS FURTHER ORDERED that a violation of the above stipulation or restriction be considered a violation against the permit and license and may result in a fine, suspension or revocation.

IT IS FURTHER ORDERED that the Department of Revenue issue an off-premise beer and wine permit upon the payment of the required fee and cost by the Petitioner.

AND IT IS SO ORDERED.





_________________________________

Ralph King Anderson, III

Administrative Law Judge





May 4, 1999

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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