Alton Newton Evangelistic Ass'n, Inc. v. South Carolina Employment Sec. Com'n

• Decision Date: 25 September 1984
• Docket Number: No. 0380,0380
• Citation: 284 S.C. 302,326 S.E.2d 165
• Court: South Carolina Court of Appeals
• Parties: ALTON NEWTON EVANGELISTIC ASSOCIATION, INC., Appellant, v. SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION, Respondent. . Heard

Page 165

326 S.E.2d 165

284 S.C. 302

ALTON NEWTON EVANGELISTIC ASSOCIATION, INC., Appellant, v. SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION, Respondent.

No. 0380.

Court of Appeals of South Carolina.

Heard Sept. 25, 1984.

Decided Jan. 31, 1985.

George G. Reaves, Florence, for appellant.

William H. Griffin and Sandra D. Bell, Columbia, for respondent.

CURETON, Judge.

The sole question presented by this appeal is whether the Alton Newton Evangelistic Association, Inc., is a church within the meaning of Section 41-27-260(10) of the South Carolina Employment Security Law and is therefore exempt from contributing to the unemployment insurance fund. The South Carolina Employment Security Commission held that the Association was not a church and the circuit court affirmed the decision. We also affirm.

The Association claims an exemption under Code Section 41-27-260(10) (Cum.Supp.1983) which provides in relevant part:

(10) For the purposes of items (2) and (3) of Section 41-27-230 [definitions of employment] the term "employment" shall not include:

(a) Service performed in the direct employ of a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches.

In reviewing the decision of an administrative agency, our scope of review is limited. The agency's findings of fact are not overturned if they are supported by substantial evidence. Carter v. South Carolina Coastal Council, 281 S.C. 201, 314 S.E.2d 327 (1984). The agency's rulings on questions of law also are not disturbed if they are sound as a matter of law. S.C.Code Ann. Section 41-35-750 (1976).

We find substantial evidence in the record to support the following relevant findings of fact by the Commission:

The Alton Newton Evangelistic Association, Inc. was formed [on] April 17, 1969 for the ... purpose of evangelizing, preaching the gospel, and conducting revivals and regular church services, propagating the faith throughout the United States and the world and doing all acts necessary or advantageous in [furtherance of] these purposes. The [Association] does not own ... a church [building], neither [is] it ... [affiliated] with an organized [conventional] church or denomination. Reverend Alton Newton, President, does conduct revival services and all proceeds of such revivals are controlled by the corporation.

In November, 1972, the ... Association ... [began] the construction of a rest home for the aged and infirm. This [stemmed from] a desire to provide ... a facility [to] protect and preserve the health and welfare of [Florence County area] residents. The facility [is open to] residents [of all counties, races, colors, creeds and religions].

In 1976, the [Association] began operation of The Star Mount Villa Rest Home. There are approximately ninety employees.... The [Association] also owns and operates a snack bar and drugstore which is located near the rest home for the convenience of [the] residents and visitors. Reverend Newton conducts chapel services at the rest home and considers the operation of the rest home ... a ministry that transcends ... normal pastoral activities [because] he meets the needs of the whole man.

Funding for the operation of the rest home is principally derived from three sources: State Agency--Department of Social Services; Supplemental Security Income Program; and voluntary contributions from solicited individuals ... attending revivals conducted by Reverend Alton Newton. Exemption from federal income tax under ... the Internal Revenue Code was granted on July 28, 1969.

Construing Code Section 41-27-260(10)(a) (Cum.Supp.1983), the Commission and the trial court concluded that the Association was not a church because its primary purpose was operating nursing homes, a secular activity, rather than conducting worship services. ¹ Although we refrain from characterizing the purpose of the Association as primarily secular, we do find that the Association does not otherwise meet the basic definition of a church. ²

For First Amendment reasons, this Court and most courts have traditionally been disinclined to become entangled in defining a "church." "Nevertheless, since church[es] are exempted from unemployment insurance taxes, determinations whether an organization is a 'church' will necessarily be made, despite the difficulties of interpretation." Young Life Campaign v. Patino, 122 Cal.App.3d 559, 176 Cal.Rptr. 23 (1981).

In construing any statute, the court's duty is to ascertain and give effect to the intention of the legislature. Citizens and Southern Systems, Inc. v. South Carolina Tax Commission, 280 S.C. 138, 311 S.E.2d 717 (1984). With respect to the Employment Security Law, the General Assembly has clearly stated its intention that the Law protect those involuntarily unemployed against economic insecurity caused by the inability of industry to provide stable employment. S.C.Code Ann. Section 41-27-20 (1976). As social legislation, the Employment Security Law should be construed to provide protection to as many employees as possible. Stone Manufacturing Co. v. South Carolina Employment Security Commission, 219 S.C. 239, 64 S.E.2d 644 (1951); In re Oakwood Cemetery Association, 20 A.D.2d 590, 245 N.Y.S.2d 262 (1963).

To qualify for an exemption under Section 41-27-260(10)(a), the Association has the burden of proving it is a "church." A church has been defined as an organization for religious purposes. Guam Power Authority v. Bishop of Guam, 383 F.Supp. 476 (D...