Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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| Printed Page 1800, Feb. 10 | Printed Page 1820, Feb. 10 |
Printed Page 1810 . . . . . Thursday, February 10, 1994
A. No, I haven't.
Q. And you do not report any campaign expenditures; is that correct?
A. That's correct.
Q. That's all the questions I have, Mr. Chairman?
THE CHAIRMAN: Thank you, Mr. Elliott. Questions from the members? Senator McConnell.
EXAMINATION BY SENATOR MCCONNELL:
Q. Thank you, sir. First before I asked my other questions, Ms. McMillan, I also was an attorney for the Legal Aid.
A. I know that.
Q. So I have some feel for getting put out there on the front lines pretty early, but isn't it true that in that particular position that if they met the guidelines and any of the classifications of cases at that time that you pretty much had to take them?
A. That's true. Whatever came in. Whatever, that was it.
Q. And almost whatever volume that came in?
A. We don't want to talk about volume.
Q. Just a couple of quick questions for you. Have you sought the endorsement of any group of members of the General Assembly or any caucus of the General Assembly?
A. I have not. In fact, as you properly have noted that I've made no expenditures. Like I stated earlier -- for the same reason that I stated earlier, I've been concerned that many people may interpret the fact that I have worked at the Legislature as that of being an insider or, you know, perhaps she will be given preferential treatment, so for that reason, and I think I have -- I hope that I really haven't offended them, but I think I probably did offend a few people because they say, "Sheila knew me well enough that she could have said that to me." I kind of see that, you know, when I pass and just speak and keep moving and it's like "Why did we have to read it in the paper?"
Q. Have you participated in a formalized interview process with anyone other than this Committee or the Bar Association?
A. No, not a formalized.
Q. Have you directly or indirectly had any meetings or conversations pertaining to your candidacy with member of the Bar Screening Committee, Bar employees or lobbyists representing the South Carolina Bar either before you were screened or after you were screened, but prior to the Bar's screening report being made public?
A. No. In fact, I have some friends down at the Bar, a lobbyist, in fact, that I was classmates with and she -- you know, she was very concerned when I did have the car accident and I was very reluctant and
Printed Page 1811 . . . . . Thursday, February 10, 1994
I thought about it and did not even list her as a person that you nor the Bar would even contact as a reference although she'd gone to undergrad with me and law school as a classmate, but I was afraid to use her.
Q. Just a couple more questions. Obviously, Senator Moore is not in here right now, so I'll cover his ground for him.
THE CHAIRMAN: Please assume his role of questioning and line of questioning.
Q. What was the date you were first contacted by the Bar representative?
A. I was contacted on a Monday and told to be there on Wednesday morning.
Q. And do you recall what date the interview took place?
A. No, but I do have it in my office somewhere.
THE CHAIRMAN: The Monday you refer to is that last week?
A. It had to be last week.
Q. Do you recall where the interview took place?
A. South Carolina Bar Building.
Q. How many interviewers participated?
A. I guess it would be counted as two and one person served as stenographer since the person that was supposed to do it didn't come and two of the people that were on my committee could not come because they were in court, so I think she did kind of fill in as she was being the stenographer and then there was one other. So two, I guess.
Q. So two, a stenographer and interviewer?
A. Yes, but now she was also an attorney, but I think she was just filling in.
Q. Did you have any previous acquaintances with any of the interviewers?
A. No, I didn't.
Q. Do you know from what sections of the state they came from?
A. I think one is from Columbia, but I'm not sure even sure about the other two.
Q. Did you furnish a list of references to the South Carolina Bar?
A. I did.
Q. How many names did they -- did you furnish to them?
A. Either three or five. I can't recall. I may have given you -- if I gave you five, then I think I gave them three or vice versa.
Q. Do you know whether any or all were contacted of your own personal knowledge --
A. I do.
Q. -- by the Bar?
Printed Page 1812 . . . . . Thursday, February 10, 1994
A. I do. One person told me that they were contacted and they said that they called the person back twice and he never returned their calls and she told me that she was definitely going to call him back and I think by then, though, they were calling me to tell me that my letter was going to be released.
REPRESENTATIVE BEATTY: Can I interject something, please?
SENATOR MCCONNELL: Yes, sir, please.
EXAMINATION BY REPRESENTATIVE BEATTY:
Q. Are you saying that your person who was contacted by the Bar never really talked to the Bar?
A. Right. Unless she finally did -- now, I'm not saying that the other people didn't. I'm just saying that she was the one person that told me that.
Q. And when you -- when she finally got in touch with you, your letter was going to be released?
A. She told me on a night and that morning, I got a call saying that your letter, you know, is in the mail and I said, "Really. What do you mean my letter?" I don't want to offend the Bar.
Q. No one seems to want to do that. I wonder why?
A. There are members of the Bar in the Legislature. You're one of them.
THE CHAIRMAN: Further questions?
RE-EXAMINATION BY SENATOR MCCONNELL:
Q. Just one more, when and how were you notified of the results? Can you tell me, do you know -- recall when the date was that you got the results from the Bar?
A. I've had a lot going on with my life lately. That had to be Monday. I would think it would -- it was like a Monday or --
Q. You're referring to this past Monday?
A. Uh-huh. Monday or Tuesday.
Q. I wanted to be precise because I saw somebody's pencil in the room move and I want to make sure we get it down accurately. All right. I have --
THE CHAIRMAN: Thank you, Senator McConnell.
REPRESENTATIVE ALEXANDER: One question.
THE CHAIRMAN: Representative Alexander.
EXAMINATION BY REPRESENTATIVE ALEXANDER:
Q. Approximately how long did the interview last when the Bar interviewed you? Could you just give us a rough estimate.
A. Well, I had to wait and then -- it would be hard for me to judge that because the attorney that came in and filled in, you know, as a
Printed Page 1813 . . . . . Thursday, February 10, 1994
stenographer and also did some questioning was not on my committee. And so I -- no, no, I'm not trying to make fun of the Bar.
SENATOR RUSSELL: I know.
A. But anyway what I was trying to tell you is that -- so we sat down and talked awhile and then the member of the Bar that was going to screen me came in and she apologized for being late, so I really -- I want to be fair to everyone. I wouldn't want --
Q. I understand. But you don't have to answer if you're not comfortable with it. I'm just one wondering.
REPRESENTATIVE BEATTY: Wait a minute.
A. Because like I said I was there for a while.
Q. Okay.
A. And I did talk with the other young lady, but we were just talking and it would be unfair for me to say that, how long I was there.
THE CHAIRMAN: Further questions? If not, thank you, Ms. McMillan. We appreciate your being here.
A. Now I assume you already have a letter from the Bar saying I'm qualified.
REPRESENTATIVE BEATTY: Not that anyone read it.
THE CHAIRMAN: They have forwarded to us their findings on all candidates. Our next candidate is Nicholas P. Sipe. Mr. Sipe, come forward please. If you would raise your right hand, sir.
NICHOLAS P. SIPE, having been duly sworn, testified as follows:
THE CHAIRMAN: Have you had a chance to review your Personal Data Questionnaire Summary?
MR. SIPE: Yes, I have.
THE CHAIRMAN: Is it correct?
MR. SIPE: It is correct.
THE CHAIRMAN: Are there any changes or clarifications that need to be made?
MR. SIPE: No changes.
THE CHAIRMAN: Do you have any objection at this time to our taking that summary and making it a part of the record?
MR. SIPE: No, I do not.
THE CHAIRMAN: Thank you. That will be done at this point.

Printed Page 1814 . . . . . Thursday, February 10, 1994
PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Nicholas P. Sipe
Home Address: Business Address:
6120 Yorkshire Drive Department of Revenue and Taxation
Columbia, SC 29209 Alcoholic Beverage Licensing
1205 Pendleton Street
Columbia, SC 29201

2. He was born in Hickory, North Carolina on April 19, 1946. He is presently 47 years old.

4. He was married to Bokson Lee Sipe on April 16, 1977. He has four children: James, age 26 (sales for Cameron and Barkley); Roger, age 24 (debt collection for Richland Memorial Hospital); Damon, age 14; and Amber, age 12.

5. Military Service: U. S. Army from October, 1968 to February, 1972; discharged as a Captain; and the South Carolina Army National Guard from March, 1972 to present. He is currently a Colonel and commands the 151st Field Artillery Bde.

6. He attended The Citadel, September, 1964 - June, 1968; BA in Political Science; and the University of South Carolina School of Law, September, 1972 - June, 1975, J.D.

8. Legal/Judicial education during the past five years:
The focus of his continuing legal education has been administrative law. However, he has also taken courses in domestic relations law and criminal procedure. In 1991, he obtained 40 hours CLE credit for basic law enforcement training at the S.C. Criminal Justice Academy.

9. Taught or Lectured: In October, 1992, he lectured at the Regional Conference of State Liquor Administrators on ethics in a regulatory agency. In June of 1993, he made a presentation to the National Conference of State Liquor Administrators in Nashville, Tennessee, on "The Ethical Dilemma: The Law, Accepted Practices, Personal Standards."

Printed Page 1815 . . . . . Thursday, February 10, 1994
12. Legal experience since graduation from law school:

November, 1975 - April, 1977 Private practice of law. General practice of law with an emphasis on family and commercial law.
April, 1977 - April, 1979 Hearing officer and legal counsel for the ABC Commission. Held contested hearings; prosecuted administrative violations before the Commission; advised the ABC Commission on legal issues.
April, 1979 - June, 1993 As Executive Director of the ABC Commission, his job involved the day-to-day application of administrative law. He continued to periodically prosecute administrative violations in contested hearings and review all Commission orders. He also represented two to three pro bono clients per year.

13. Rating in Martindale-Hubbell:He is listed but not rated as he has not been in the private practice of law since 1977.

14. Frequency of appearances in court:
Federal - 0
State - 2 to 3 per year (Family Court)
Other - 15 to 20 contested cases per year before the ABC Commission.

15. Percentage of litigation:
Civil - 0
Criminal - 10% (advising ABC agents on criminal matters)
Domestic - 2%
Administrative - 88%

Printed Page 1816 . . . . . Thursday, February 10, 1994
16. Percentage of cases in trial courts:
Jury - 0
Non-jury - 100%

Sole counsel

17. Five (5) of the most significant litigated matters in either trial or appellate court:
(a) SC ABC Commission v. Sandra S. McCray, d/b/a Zoe's. This was an action to close a business as a public nuisance. He prosecuted the case before the ABC Commission, which ordered the revocation of Ms. McCray's beer and wine permit. This case was important as it established that loitering, littering and criminal activity inside of and in front of a place of business is a public nuisance.
(b) SC ABC Commission v. Dennis W. Chestnut, d/b/a Studio 90 Disco. This was an action to revoke a beer and wine permit for repeated violations. The Commission ordered the revocation of Mr. Chestnut's beer and wine permit. This case was important as it established that the Commission would revoke a permit for continued after-hours operation.
(c) SC ABC Commission v. James H. Moss, President, Fine Liquors Limited. This was an action to revoke a liquor license for numerous instances of selling liquor on credit and delivering liquor. The Commission found Mr. Moss guilty and ordered the suspension of his license for 15 days and a $5,000 fine. This case was important as it established that credit and delivery prohibitions would be enforced.
(d) SC ABC Commission v. Joyce P. Carrigg, d/b/a The Outback. This was an action to suspend the beer and wine permit of Joyce Carrigg for permitting an underage person to possess wine and permitting the possession of marijuana. Ms. Carrigg's beer and wine permit was suspended for 180 days. This case was important as it affirmed the seriousness of permitting underaged consumption and drug use on premises.
(e) SC ABC Commission v. Peter K. Yau, d/b/a The Graduate. This was an action to revoke the beer and wine permit of Peter Yau for repeated violations of serving beer to persons under the legal age. The Commission ordered the revocation of Mr. Yau's permit. This case was important as

Printed Page 1817 . . . . . Thursday, February 10, 1994
it involved continued violations in a bar catering to college students and put other such bars on notice that they must exercise care to prevent underaged consumption.

18. Five (5) civil appeals:

None.

23. Employment As a Judge Other Than Elected Judicial Office:

April, 1977 - April, 1979 Hearing Officer for SC ABC Commission. Deciding contested permit applications in contested hearings - supervised by Tip Raysor, Executive Director, SC ABC Commission.

25. Occupation, business or profession other than the practice of law:

April 1979 - June, 1993 Executive Director, SC Alcoholic Beverage Control Commission. Managed the day-to-day affairs of the agency

July, 1993 - current Chief of Alcoholic Beverage Licensing, SC Department of Revenue

30. Federal, State or Local Investigation:
While he was never accused of any crime nor questioned about any criminal wrongdoing, the activities of the ABC Commission and its senior employees were placed under intense scrutiny by SLED last year.

40. Expenditures Relating to Candidacy:
Postage; August 11, 1993; $52.20

45. Bar Associations and Professional Organizations:
S. C. Bar Association; National Guard Association of S. C. (President, 1989); Field Artillery Society of the S. C. Militia (President, 1990)

Printed Page 1818 . . . . . Thursday, February 10, 1994
46. Civic, charitable, educational, social and fraternal organizations:
Columbia East Rotary Club (President, 1989), Paul Harris Fellow; Richland County Guardian ad Litem Program; S. C. Bar Pro Bono Program; Trenholm Road United Methodist Church; Order of the Palmetto - 1990

47. His service in state government since 1977 has shown him the tremendous impact that administrative law and regulations have on the lives of citizens of this state. He believes that experience, along with his extensive experience as an administrator, qualify him to serve as chief administrative law judge.

48. Five (5) letters of recommendation:
(a) F.M.C. Fralix, President
State Credit Union
P. O. Box 726, Columbia, SC 29202
343-0300
(b) B. Boykin Rose, Director
S. C. Department of Public Safety
5410 Broad River Road, Columbia, SC 29210-0426
896-7883
(c) Rev. Regi Thackston
Trenholm Road United Methodist Church
3401 Trenholm Road, Columbia, SC 29204
254-6695
(d) Major General T. Eston Marchant
The Adjutant General
#1 National Guard Road, Columbia, SC 29201-4766
748-4217
(e) Joe E. Berry, Jr., Esquire
Berry, Dunbar, Daniel, O'Conner, & Jordan
P. O. Box 11645, Columbia, SC 29211-1645
765-1030

The Board of Commissioners on Grievances and Discipline reports that no formal complaints or charges of any kind have ever been filed against you. The records of the applicable law enforcement agencies, being the Richland County Sheriff's Office, the Columbia City Police Department, SLED and FBI, are all negative. The Judgement Rolls of Richland County are negative. Federal court records are negative. No complaints

Printed Page 1819 . . . . . Thursday, February 10, 1994
or statements were received. No witnesses are present to testify against you.

At this time, I'll give you the chance to as we have the other candidates to make a brief opening statement followed by questions from Mr. Elliott.
MR. SIPE: In the interest of time, I'll waive any opening statements.
THE CHAIRMAN: Thank you very much. Mr. Elliott.
MR. SIPE - EXAMINATION BY MR. ELLIOTT:
Q. Good morning. You were Executive Director of the ABC Commission for 14 years, could you tell me what was your experience with the contested case process during that 14 years?
A. The -- my first two years with the agency, I was a hearing officer and actually heard contested violation and application cases. During the next couple of years after that, I would prosecute violations before the Commission and a fairly high volume of those, probably eight to ten a week.

As Executive Director, my actual involvement in contested cases was lower, but I would still from time to time on serious matters would prosecute the -- usually revocation and suspension actions before the commission.
Q. What would from time to time be?
A. Two to three to four a month, I would estimate it. It varied depending on the demands on it. We only had one other attorney. In many cases, it depended on the demands on his time. We would try to share that.

If he was gone, I would try to pitch in and help or also just the severity of the cases. There were some I wanted to personally become involved in.
Q. Could you speak to -- for a minute to your managerial responsibilities as the executive director of the agency?
A. I was responsible for the daily operation of the agency, the budgeting, hiring of personnel, the discharge of personnel, all aspects of just day to day administration.
Q. Most of your experience -- administrative experience seems to be with ABC licensing; is that correct?
A. That is correct.
Q. What do you know about the other areas of the substantive and procedural administrative law and what would you do to equip yourself to understand those areas in which you are less familiar?
A. Well, outside of ABC in areas of administrative law, my areas of actual experience are very limited. When I was in the private practice of law before coming with the State, I did appear before some administrative

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