ORDERS:
ORDER AND DECISION
STATEMENT OF THE CASE
This matter comes before the Administrative Law Judge Division pursuant to administrative violations written
against Respondent, John McKnight, d/b/a McKnight's Delhi located at Route 4, Kingstree, South Carolina. Citations were
written against Mr. McKnight for permitting a criminal act on the licensed premises and the illegal possession of liquor
on the licensed premises in violation of S. C. Code Ann. 61-9-410(5) and 61-9-410(6) (Supp. 1995).
After notice to the parties, a hearing was conducted on Wednesday, November 20, 1996 at the Administrative Law
Judge Division.
FINDINGS OF FACT
Based upon the testimony and evidence presented, I make the following Findings of Fact.
1. John McKnight, d/b/a McKnight's Delhi, holds an on-premises beer and wine permit for the location
at Route 4, Kingstree, South Carolina.
2. Rhett Holden, of the South Carolina Law Enforcement Division ("SLED"), and members of the Williamsburg
County Sheriff's office, conducted a routine investigation on February 9, 1996 at the licensed location.
3. During the investigation, gambling devices, specifically, "tipboards," were found underneath the cash
register at the bar. The agents also found alcoholic liquors under the cash register in the bar area. Of the nine bottles
(mostly half pint size) of liquor found, the seal was broken on only one.
4. Mr. McKnight does not possess a sale and consumption license for alcoholic liquor.
5. Mr. McKnight was charged with two criminal violations, "Possession of Gambling Devices," pursuant to S.C.
Code Ann. 16-19-160 and, "Unlawful Possession of Liquor," pursuant to S.C. Code Ann. 61-5-110 (Supp. 1995).
6. In additional, two administrative citations were issued to Mr. McKnight, on February 9, 1996 for
permitting a criminal act and unlawful possession of liquor in violation of S.C. Code Ann. 61-9-410(5) and 61-9-410(6)
(Supp. 1995).
7. Mr. McKnight was found guilty of the criminal charges before the Magistrate in Williamsburg County on
February 28, 1996 and paid the fines imposed.
8. Mr. McKnight acknowledges that the items were on the premises and alleges that the "tipboards" and
alcohol were left at the location from a turkey shoot held during the holidays.
9. Mr. McKnight stated that he had forgotten these items were at the location and that he was not selling
the liquor or allowing gambling on the premises.
10. The business does not have any employees other than the Respondent. It is a community store open
Wednesday through Saturday. In addition to beer and wine, Mr. McKnight sells chips, sodas, and occasionally fish
sandwiches.
11. In response to the fine sought by the Department, Mr. McKnight states that the profits are not great.
On the average, he sells 2-3 cases of beer each week. Each case contains 18 cans of beer. The price of beer ranges from
65 cents to one dollar for small cans and $1.25 to $1.50 for larger cans of beer. Sodas sell for 50 to 55 cents and fish
sandwiches, when sold, are $2.50.
12. The proposed location is rented for $150 monthly.
13. McKnight's only source of income outside of the business is derived from disability benefits and Social
Security.
CONCLUSIONS OF LAW
Based upon the foregoing Findings of Fact, I conclude, as matter of law, the following:
1. The Administrative Law Judge Division is vested with the powers, duties and responsibilities exercised
by the former Alcoholic Beverage Control Commission and hearing officers pursuant to Chapter 23 of Title 1. S.C. Code
Ann. 61-1-55 (Supp. 1995).
2. The South Carolina Department of Revenue ("Department") is charged, inter alia, with the responsibility
of administering and enforcing statutes and regulations governing alcoholic beverages, beer and wine. S.C. Code Ann.
61-1-60 (Supp. 1995).
3. S.C. Code Ann. 61-9-410(5) (Supp. 1995) makes it a violation for a permittee or his servant, agent
or employee to "permit any act, the commission of which tends to create a public nuisance of which constitutes a crime
under the laws of this State."
4. Pursuant to S. C. Code Ann. 61-9-410(6) (Supp. 1995), no holder of a permit authorizing the sale of
beer or wine or any servant, agent, or employee of the permittee shall knowingly sell, offer for sale, or possess any
beverage or alcoholic liquor the sale or possession of which is prohibited on the licensed premises under the law of this
State. A violation of any of the foregoing is a ground for the revocation or suspension of the holder's permit. (Emphasis
added). It is unlawful for the holder of a beer and wine permit to possess alcoholic liquor on the licensed premises.
5. When a conviction of a criminal offense on the licensed premises has occurred, the conviction
constitutes proof that the offense occurred and the record of such conviction is admissible in a subsequent administrative
hearing. S.C. Code Ann. 61-13-295 (Supp. 1995). Mr. McKnight, the permittee, was convicted of a criminal act which
occurred on the licensed premises i.e., the possession of gambling devices and the unlawful possession of alcoholic liquors.
Therefore, this tribunal accepts as evidence that the proscribed conduct occurred.
6. Respondent also admits the criminal acts occurred. The "tipboards," although not in use, were located
at the licensed premises and the alcoholic liquor, while not being consumed, it too was located on the licensed premises.
Eventhough, McKnight had forgotten it was at the location, he knew that the contraband had been brought in and
remained on the premises. He had knowledge that the prohibited items were on the licensed premises. He therefore
knowingly permitted the possession in violation of S.C. Code Ann. 61-9-410 (Supp. 1995).
7. The Department seeks a penalty of $400 for each violation ($800 total) because this was a first offense
by the permittee. Mr. McKnight argues that he is not able to pay an $800 fine. The evidence supports McKnight's
assertions that the income is somewhat limited.
ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby
ORDERED that administrative violations be issued against John McKnight, d/b/a McKnight's Delhi for permitting
a criminal act to occur on the licensed premises and unlawful possession of alcoholic liquors in violation of S.C. Code Ann.
61-9-410(5) and 61-9-410(6) (Supp. 1995).
IT IS FURTHER ORDERED, that John McKnight pay a monetary penalty of $600 within ten (10) days of the date of
this Order. If Mr. McKnight is unable to pay the fine in full, the Department shall set up a payment schedule with Mr.
McKnight for the payment of the fine. Failure to pay the fine may result in the suspension or revocation of the permit.
AND IT IS SO ORDERED.
______________________________
ALISON RENEE LEE
Administrative Law Judge
November _____, 1996
Columbia, South Carolina |
