ORDERS:
ORDER AND DECISION
This matter comes before me pursuant to S.C. Code Ann. § 61-1-55 (Supp. 1993) and
S.C. Code Ann. §§ 1-23-310, et seq. (Rev. 1986 and Supp. 1993) upon a request for a hearing by
Respondent upon being cited for alleged administrative violations against the club sale and
consumption license occurring on or about January 27, 1994. The South Carolina Department of
Revenue and Taxation (hereinafter referred to as "DOR") seeks revocation of Respondent's
license for the alleged violation. A hearing was held on July 12, 1994. I find that a violation for
permitting consumption of liquor by a non-member has occurred. Respondent is assessed a fine
of One Thousand Dollars ($1,000) and Respondent's sale and consumption license is suspended
for thirty (30) days.
FINDINGS OF FACT
By a preponderance of the evidence, I find:
(1) Respondent holds a sale and consumption liquor license at 995 Asheville Highway,
Spartanburg, South Carolina, at a private club and non-profit organization known as the Cheyene
Cattleman's Club.
(2) Notice of the time, date, place, and subject matter of the hearing was given to
Respondent, the South Carolina Law Enforcement Division (hereinafter referred to as "SLED"),
and DOR.
(3) On January 27, 1994, at approximately 9:30 p.m., Agent Doug Mazyck of the SLED
Alcohol Enforcement Unit entered the licensed premises unescorted.
(4) Agent Mazyck was asked whether he was a member of the club and responded in the
negative.
(5) Agent Mazyck was allowed entrance to the lounge area upon being signed in by the
doorperson and paying a two dollar ($2.00) cover charge.
(6) Agent Mazyck was served an alcoholic beverage from a minibottle by the bartender
and consumed a small portion of the beverage.
(7) Respondent committed a violation of 23 S.C. Code Regs. 7-17(J) (1976), permitting
consumption of liquor by a non-member, on April 2, 1992, and paid a fine of Two Hundred
Dollars ($200);
(8) Respondent committed a violation of 23 S.C. Code Regs. 7-17(J) (1976), permitting
consumption of liquor by a non-member, on October 30, 1992, and paid a fine of Five Hundred
Dollars ($500); and
(9) Petitioner seeks revocation of Respondent's sale and consumption license.
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. § 61-1-55 (Supp. 1993) and Chapter 23 of Title I of the
1976 Code, as amended, the South Carolina Administrative Law Judge Division has jurisdiction in
this matter.
(2) Cheyene Cattleman's Club operates as a non-profit organization with limited
membership, not open to the general public, serving alcoholic beverages to its members and
guests pursuant to S.C. Code Ann. § 61-5-20(3) (Supp. 1993).
(3) ABC Regulation 7-17(J) provides that "[o]nly bona fide members and bona fide
guests of members of [private clubs] may consume alcoholic beverages sold in [minibottles] upon
the licensed premises."
(4) Agent Mazyck was neither a member nor a bona fide guest of the club.
(5) ABC Regulation 7-17(J) was violated on January 27, 1994, when Agent Mazyck was
allowed to enter the licensed premises and was served an alcoholic beverage from a minibottle.
(6) Liquor licenses are neither contracts nor property rights. They are mere permits,
issued or granted in the exercise of the State's police power and to be enjoyed only so long as the
restrictions and conditions governing their continuance are complied with. The same tribunal
authorized to grant the issuance of a license is likewise authorized, for cause, to revoke it.
Feldman v. S.C. Tax Commission, 203 S.C. 49, 26 S.E. 2d 22 (1943).
(7) For a third offense of any of the provisions of Article 1, Chapter 5, Title 61, within
three years of the first offense, a licensee's license may be revoked permanently and a fine of not
less than Five Hundred Dollars ($500) be assessed pursuant to S.C. Code Ann. § 61-5-110 (Supp.
1993).
(8) A license may be suspended or revoked upon violation of any provision of the
Alcoholic Beverage Control Act or any regulations promulgated by the department pursuant to
S.C. Code Ann. § 61-5-60 (Supp. 1993).
(9) A monetary penalty may be imposed as an alternative to revocation or suspension
pursuant to S.C. Code Ann. § 61-1-80 (Supp. 1993).
ORDER
IT IS THEREFORE ORDERED that Richard S. Morgan, President of Cheyene
Cattleman's Club, at 995 Asheville Highway, Spartanburg, South Carolina, pay a fine to the South
Carolina Department of Revenue and Taxation in the amount of One Thousand Dollars ($1,000)
and that the Sale and Consumption License held by Richard S. Morgan, President of Cheyene
Cattleman's Club, be suspended for a period of thirty (30) days. A SLED agent shall serve a copy
of this Order on Richard S. Morgan and take possession of the license and permit cited above.
Upon service of the thirty (30) days suspension and payment in full of the fine assessed, an agent
shall return the permit and license to Richard S. Morgan. During the period of suspension,
Richard S. Morgan is ordered to post a copy of this Order at a visible location at the licensed
premises, and to cease and desist all sales of liquor. Failure of Respondent to pay the fine
assessed in full within fifteen (15) days of service of this Order shall result in automatic revocation
of Respondent's sale and consumption license.
___________________________
STEPHEN P. BATES
Administrative Law Judge
July 15, 1994
Columbia, South Carolina
A:\94-0122 |
