Could a South Carolina restaurant extend its liquor license to a sidewalk café under a city ordinance?

Plain-English summary

Beaufort's city manager asked whether a proposed city ordinance could let restaurants serve alcoholic drinks to customers seated at sidewalk cafés by treating the sidewalk area as an extension of the business. The South Carolina Attorney General's office did not decide whether a particular sidewalk could be added to a liquor license. In 2008 it said state law left that determination to the Department of Revenue, which had exclusive authority over licensed alcohol-sale locations.

The opinion observed that the cited statutes did not definitively exclude expanded areas such as sidewalks from licensed premises, while expressly excluding parking areas. It suggested describing any proposed expanded serving area in a license application and contacting the Department of Revenue for guidance. The city's proposed ordinance did not itself settle the scope of the state license.

Currency note

This opinion was issued in 2008. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did the AG say a sidewalk café was covered by an existing liquor license?

No. It said the Department of Revenue had to determine whether the area could count as an extension of the business and therefore as licensed premises.

Did South Carolina's cited statutes categorically exclude sidewalks?

The opinion said they did not appear to definitively exclude expanded areas such as sidewalks. It contrasted that uncertainty with the express statutory exclusion for parking areas.

What did the opinion say about a city ordinance treating the sidewalk as part of a restaurant?

The city manager described such a proposed ordinance, but the opinion said state authority over licensed alcohol-sale locations rested with the Department of Revenue. It did not treat the ordinance's wording as a licensing determination.

Background and statutory framework

The opinion quoted S.C. Code Ann.§ 61 -2-80 for the Department of Revenue's authority over locations licensed to sell beer, wine, and liquor. It discussed S.C. Code Ann.§ 61 -6-1610, which linked liquor-by-the-drink sales to qualifying meal or lodging businesses and excluded parking areas from licensed premises. Regulation 7-401.1 defined “premises” and “licensed premises.” The office concluded that the Department, rather than the city ordinance or the AG opinion, would decide whether a sidewalk area could be added to the licensed premises.

Citations and references

• S.C. Code Ann.§ 61 -2-80: state authority over licensed alcohol-sale locations.
• S.C. Code Ann.§ 61 -6-1610: liquor-by-the-drink premises and parking-area exclusion.
• Regulation 7-401.1: definitions of premises and licensed premises.

Official title

December 11, 2008

Requester

Scott Dadson, City Manager, City of Beaufort

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/december-11-2008/
• Original PDF: https://www.scag.gov/wp-content/uploads/2011/05/dadson-s-os-8703-12-11-08-alcohol-sales-sidewalk-cafe.pdf

Original opinion text

HENRY M CMASTER
A'n'OR.NEY GENERAL

December 11 , 2008

Scott Dadson, City Manager
City of Beaufort
Post Office Box 1167
Beaufort, South Carolina 2990 l
Dear Mr. Dadson:

In a letter to this office you referenced a proposed ordinance for the City of Beaufort which would allow a business establishment to sell alcoholic beverages to their customers who dine on the sidewalk. The ordinance states that "the area designated or the sidewalk cafe shall be considered an extension ofthe business." You have questioned whether a liquor license can be extended to allow for such sales. Generally, pursuant to S.C. Code Ann.§ 61 -2-80
[t]he State, through the department', is the sole and exclusive authority empowered to regulate the operation of all locations authorized to sell beer, wine, or alcoholic liquors, is authorized to establish conditions or restrictions which the department considers necessary before issuing orrenewing a license or permit, and occupies the entire field of beer, wine, and liquor regulation except as it relates to hours of operation more restrictive than those set forth in this title. S.C. Code Ann.§ 61 -6-1610 states that (A)[e]xcept on Sunday, it is lawful to sell and consume alcoholic liquors sold by the drink in a business establislunent between the hours of ten o' clock in the morning and two o' clock the following morning if the establishment meets the following requirements:

1

S.C. Code Ann. § 61-2-10(1) defines "department" as the South Carolina Department of Revenue. REMBERT

c. D ENNIS B UI LDING •

POST O FFICE Box 11549

•

COLUMBIA. SC 292 11- 1549

• T ELEPHONE 803-734-3970 •

FACSIMILE 803-253-6283

Mr. Dadson
Page2
December 11, 2008
(1) the business is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging; and (2) the business has a license from the department authorizing the sale and consumption of alcoholic liquors by the drink, which is displayed conspicuously on the main entrance to the premises and clearly visible from the outside. (B) [n]otwithstanding another provision of this article, the licensed premises of a business establishment which is bona fide engaged primarily and substantially in the preparation and service of meals and which holds a valid license for the sale and consumption of alcoholic liquors by the drink do not extend to any portion of the business establishment or the property upon which it is located which is designed as or used for a parking area even though food may be served in the area. With reference to your question, it must be determined what may be considered the licensed premises of a business establishment. As set forth, it is specifically provided that the premises " ... do not extend to any portion of the business establishment or the property upon which it is located which is designated as or used for a parking area even though food may be served in the area." Regulation 7-401.1 dealing with alcoholic beverages, beer and wine defines in part the term "premises" as " ... the physical place at which a licensee is or may be licensed to engage in the sale, serving and storage of alcoholic beverages .... " The term "licensed premises" is defined by such regulation as " ... premises for which a license under Article 5 of Chapter 6 of Title 61 ... (which includes Section 61-6-1610) ... of the 1976 Code, is in force and effect." Subsection (C) of such regulation again exempts parking lots from being considered part of a licensed premises. Section 61-6-1610 ties the sale and consumption of alcoholic beverages by the drink to licensed establishments " ... engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging .... " excluding specifically only areas used as a parking area. An opinion of the Tennessee Attorney General, Op. No. 80-280A dated June 2, 1980, analyzed a question similar to yours concluding that the pertinent Tennessee statute
... requires that the sale of alcoholic beverages be conducted in the same manner as the sale of food. Nothing in your inquiry would indicate that the operation of a "sidewalk cafe" would violate this provision. However, as set forth, the Department of Revenue has the exclusive authority to regulate the operation of all locations licensed to sell beer, wine or alcoholic liquors. While it does not appear that State statutes definitively exclude broadened areas, such as sidewalk areas, from being

Mr. Dadson
Page 3
December 11, 2008

considered as licensed premises, it appears that it would be a matter for the Department of Revenue to determine whether such an area could be considered an extension of a business and, therefore, a licensed area. Therefore, it would appear appropriate for such broadened area to be described in any application if it is desired that alcoholic beverages be sold and served in that area. As to whether a liquor license can be extended to allow for such sales, I can only suggest that you contact the Department of Revenue for their guidance in such regard. Very truly yours, Henry McMaster Attorney General

rt~ 1til ;i' .LtJ. . ____.__.
By:

REVIEWED AND APPROVED BY:

t&;te;Jr ~

IRObeftD:COOl(

Deputy Attorney General

Charles H. Richardson
Senior Assistant Attorney General