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TO AMEND SECTION 12-33-245, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIBOTTLE TAX, SO AS TO PROVIDE FOR AN EXCISE TAX ON THE GROSS PROCEEDS OF THE SALE OF ALCOHOLIC LIQUOR BY THE DRINK; TO AMEND SECTION 61-6-20, RELATING TO THE DEFINITIONS USED IN THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE A DEFINITION OF "ALCOHOLIC LIQUOR BY THE DRINK"; TO AMEND SECTION 61-6-700, RELATING TO ESTABLISHMENTS WHICH USE ALCOHOLIC BEVERAGES ONLY IN THE PREPARATION OF FOODS TO BE SERVED BY THE ESTABLISHMENTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTION 61-6-1500, RELATING TO RESTRICTIONS UPON RETAIL DEALERS, SO AS TO ELIMINATE THE PROHIBITION AGAINST SELLING MINIBOTTLES TO PERSONS OTHER THAN THOSE PERSONS LICENSED BY THE DEPARTMENT OF REVENUE; TO AMEND SECTIONS 61-6-1600 AND 61-6-1610, RELATING TO NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS BEING LICENSED TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO DELETE THE REQUIREMENT TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, TO AUTHORIZE THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK, AND TO MAKE CONFORMING CHANGES; TO AMEND SECTION 61-6-1620, RELATING TO RESTRICTIONS ON MINIBOTTLE LICENSEES, SO AS TO DELETE THE RESTRICTIONS AND TO AUTHORIZE THE POSSESSION AND CONSUMPTION OF ALCOHOLIC LIQUORS IN CONTAINERS OTHER THAN MINIBOTTLES ON LICENSED PREMISES; TO AMEND SECTION 61-6-1630, RELATING TO PURCHASES FROM LICENSED RETAIL DEALERS, SO AS TO ELIMINATE THE PROHIBITION AGAINST A RETAIL DEALER FROM SELLING MINIBOTTLES TO PERSONS OTHER THAN THOSE PERSONS LICENSED BY THE DEPARTMENT OF REVENUE TO SELL ALCOHOLIC LIQUORS FOR ON-PREMISES CONSUMPTION; TO ADD SECTION 61-6-1640, SO AS TO PROHIBIT A PERSON LICENSED UNDER ARTICLE 5 OF CHAPTER 6 OF TITLE 61 FROM SUBSTITUTING ANY OTHER BRAND OF ALCOHOLIC LIQUOR IN PLACE OF THE BRAND SPECIFIED BY THE CUSTOMER UNLESS THE CUSTOMER IS ADVISED THAT THE DESIRED BRAND IS NOT AVAILABLE AND THE CUSTOMER APPROVES OF THE SUBSTITUTION, AND TO PROVIDE A PENALTY FOR VIOLATION OF THIS SECTION; TO ADD SECTION 61-6-1650, SO AS TO PROHIBIT A LICENSEE FROM REFILLING OR REUSING ANY BOTTLE OF LAWFULLY PURCHASED ALCOHOLIC LIQUORS AND TO PROVIDE A PENALTY; TO AMEND SECTION 61-6-1825, RELATING TO THE PROCEDURES TO PROTEST THE ISSUANCE OR RENEWAL OF A MINIBOTTLE LICENSE, SO AS TO DELETE THE TERM "MINIBOTTLE" AND TO MAKE THE PROCEDURES APPLY TO ANY BIENNIAL LICENSE FOR ON-PREMISES CONSUMPTION; TO AMEND SECTION 61-6-2000, RELATING TO TEMPORARY PERMITS FOR NONPROFIT ORGANIZATIONS, SO AS TO PROVIDE THAT THE LICENSE AUTHORIZES THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK; TO AMEND SECTION 61-6-2005, RELATING TO TEMPORARY PERMITS, SO AS TO DELETE REFERENCES TO "SEALED CONTAINERS OF TWO OUNCES OF LESS; TO AMEND SECTION 61-6-2010, AS AMENDED, RELATING TO TEMPORARY PERMITS AUTHORIZED THROUGH A REFERENDUM, SO AS TO DELETE THE REFERENCES TO ALCOHOLIC LIQUORS "IN SEALED CONTAINERS OF TWO OUNCES OR LESS"; TO AMEND SECTION 61-6-2200, RELATING TO THE AGE OF THE SERVER OF ALCOHOLIC LIQUORS IN ON-PREMISES ESTABLISHMENTS, SO AS TO PROVIDE THE SERVER, WHO IS EIGHTEEN YEARS OF AGE OR OLDER, MAY SERVE ALCOHOLIC LIQUORS BY THE DRINK AND TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTIONS 61-6-2400 AND 61-6-2420, BOTH RELATING TO TAXATION OF ALCOHOLIC LIQUORS AND RESTAURANTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; AND TO AMEND SECTION 61-6-2600, RELATING TO THE PENALTIES FOR VIOLATING ARTICLE 5, CHAPTER 6, TITLE 61, CONCERNING THE REGULATION OF ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES, AND TO PROVIDE THAT A PERSON WHO ACTS TO AVOID THE PAYMENT OF THE EXCISE TAX ON THE SERVING OF ALCOHOLIC BEVERAGES BY THE DRINK IS SUBJECT TO THE PENALTIES OF THIS SECTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-33-245 of the 1976 Code is amended to read:
"Section 12-33-245. (A) In lieu of taxes imposed under Sections 12-33-230 and 12-33-240, alcoholic liquors sold in minibottles must be taxed at the rate of twenty-five cents for each container in addition to the case tax as prescribed in Article 5 of this chapter and collected as those taxes are collected. Taxes levied in Article 3 of this chapter do not apply. In addition to taxes imposed pursuant to the provisions of Sections 12-33-230, 12-33-240, Chapter 36 of Title 12, and Article 5, Chapter 33, Title 12, there is imposed an excise tax equal to five percent of the gross proceeds of the sales of alcoholic liquor by the drink for on-premises consumption in establishments licensed for sales pursuant to Article 5, Chapter 6, Title 61. All proceeds of this excise tax must be deposited to the credit of the general fund of the State.
(B) Eleven percent of the revenue generated by the excise tax provided for in subsection (A) must be placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. On a quarterly basis, the State Treasurer shall must allocate this revenue to counties on a per capita basis according to the most recent United States Census. The State Treasurer must notify each county of the allocation pursuant to this subsection in addition to the funds allocated pursuant to Section 6-27-40(B), and the combination of these funds must be used by counties for educational purposes relating to the use of alcoholic liquors and for the rehabilitation of alcoholics and drug addicts. Counties may pool these funds with other counties and may combine these funds with other funds for the same purpose."
SECTION 2. Section 61-6-20(1) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(1)(a) 'Alcoholic liquors' or 'alcoholic beverages' means any spirituous malt, vinous, fermented, brewed (whether lager or rice beer), or other liquors or a compound or mixture thereof of them by whatever name called or known which contains alcohol and is used as a beverage, but does not include:
(a)(i) wine when manufactured or made for home consumption and which is not sold by the maker thereof or by another person; or
(b)(ii) a beverage declared by statute to be nonalcoholic or nonintoxicating;.
(b) 'Alcoholic liquor by the drink' means a drink poured from a container of alcoholic liquor, without regard to the size of the container."
SECTION 3. Section 61-6-700 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-700. An establishment which offers meals to the public must be licensed by the department to purchase and possess liqueurs, wines, and similar alcoholic beverages used solely only in the cooking and preparing of foods served by the establishment. Application for the license must be in a form and under conditions prescribed by the department. The license fee is fifty dollars. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars, and other licenses he holds from the department under provided by this title must be revoked.
The license provided in this section does not alter or limit the privileges or responsibilities for holders of licenses issued to authorize the possession, sale, and consumption of alcoholic liquors in minibottles under pursuant to the provisions of Article 5 of this chapter. Establishments so licensed may use alcoholic liquors in the preparation of food without obtaining the license provided for in this section if only liquors in minibottles are used in the food preparation."
SECTION 4. Section 61-6-1500 of the 1976 Code is amended to read:
"Section 61-6-1500. No retail dealer may:
(1) sell, offer for sale, barter, exchange, give, transfer, or deliver or permit to be sold, bartered, exchanged, given, transferred, or delivered alcoholic liquors in less quantities than two hundred milliliters;
(2) own or keep in his possession alcoholic liquors in separate containers containing less than two hundred milliliters;
(3) sell, barter, exchange, give, transfer, or deliver, offer for sale, barter, or exchange or permit the sale, barter, exchange, gift, transfer, or delivery of alcoholic liquors: (a) between the hours of 7:00 p.m. and 9:00 a.m.; (b) for consumption on the premises; (c) to a person under twenty-one years of age; (d) to an intoxicated person; or (e) to a mentally incompetent person;
(4)(2) permit the drinking of alcoholic liquors in his store or place of business;
(5)(3) sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if: (a) the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors, and (b) the electronic transfer is initiated by the retailer no later than one business day after delivery; or
(6)(4) redeem proof-of-purchase certificates for any promotional item.
However, during restricted hours retail dealers are permitted to receive, stock, and inventory merchandise, provide for maintenance and repairs, and other necessary, related functions that do not involve the sale of alcoholic liquors.
The provisions of this section relating to quantities of less than two hundred milliliters do not apply to (1) minibottles when authorized by law to be sold to persons licensed to sell minibottles for on-premises consumption or (2) minibottles sold for consumption on commercial aircraft engaged in interstate commerce.
It is unlawful for a person licensed to sell alcoholic liquors under the provisions of this section or his agent to refill a minibottle. A person who violates this provision must may, upon conviction, have his license revoked permanently.
A retail dealer must keep a record of all sales of alcoholic liquors sold in minibottles. The record must include the name of the purchaser and the date and quantity of the sale.
It is unlawful to sell minibottles except during lawful hours of operation.
A retail dealer who sells alcoholic liquors in minibottles to a person not licensed under Article 5 of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars and his retail dealer's license may be suspended or revoked in the discretion of the department. As used in this paragraph, 'a person licensed under Article 5 of this chapter' includes his designated agent as a purchaser."
SECTION 5. Section 61-6-1600 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-1600. Nonprofit organizations which are licensed by the department under provided by this article may sell alcoholic liquors in minibottles by the drink upon the premises between the hours of ten o'clock in the morning and two o'clock the following morning. Members or guests of members of these organizations may consume alcoholic liquors sold in minibottles by the drink upon the premises between the hours of ten o'clock in the morning and two o'clock the following morning."
SECTION 6. Section 61-6-1610 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-1610. (A) Except on Sunday, it is lawful to sell and consume alcoholic liquors sold in minibottles by the drink in a business establishment 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) 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, which is conspicuously displayed conspicuously on the main entrance to the premises and clearly visible from the outside.
(B) Notwithstanding any other 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 in minibottles 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 or a deck to a swimming pool even though food may be served in the area.
(C) An establishment licensed under pursuant to this article may use alcoholic liquors in the preparation of food without obtaining the license provided for in Section 61-6-700 if only liquors in minibottles are used in the food preparation."
SECTION 7. Section 61-6-1620(A) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(A) This article must not be construed to authorize authorizes the possession or consumption of alcoholic liquors in containers other than minibottles on premises open to the general public for which a license has been obtained pursuant to Sections Section 61-6-1600 or 61-6-1610."
SECTION 8. Section 61-6-1630 of the 1976 Code is amended to read:
"Section 61-6-1630. (A) Alcoholic liquors in minibottles as authorized to be sold under this article must be purchased only by a person licensed under this article, in case lots, and only from licensed retail dealers only. As used in this section, 'a person licensed under this article' includes his designated agent as a purchaser.
(B) No person licensed under the provisions of this article may be licensed as a retail dealer on the same premises."
SECTION 9. The 1976 Code is amended by adding:
"Section 61-6-1640. No person licensed under this article, including his agent, shall substitute any other brand of alcoholic liquor in place of the brand specified by a customer unless the licensee or his agent has: (1) advised the customer that the desired brand is not available, and (2) received the customer's approval of substitution. A person who violates this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than ten days, or both."
SECTION 10. The 1976 Code is amended by adding:
"Section 61-6-1650. (A) No licensee or his agent shall knowingly and wilfully refill, partially refill, or reuse any bottle of lawfully purchased alcoholic liquors, or otherwise tamper with the contents of any such bottle.
(B) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:
(1) for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;
(2) for a second or subsequent offense, must be fined one thousand dollars or imprisoned not more than six months, or both.
(C) In addition to the penalties set forth in subsection (B), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.
(D) The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section."
SECTION 11. Section 61-6-1825 of the 1976 Code, as added by Act 363 of 1998, is amended to read:
"Section 61-6-1825. A person residing in the county in which a minibottle license issued pursuant to subarticle 1 of this article is requested to be granted, or a person residing within five miles of the location for which a minibottle permit issued pursuant to subarticle 1 of this article is requested, may protest the issuance or renewal of the license if he files a written protest setting forth:
(1) the name, address, and telephone number of the person filing the protest;
(2) the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;
(3) the specific reasons why the application should must be denied; and
(4) whether or not he wishes to attend a contested case hearing before the Administrative Law Judge Division.
Upon receipt of a timely filed protest, the department shall must determine the protestant's intent to attend a contested hearing before the Administrative Law Judge Division. If the protestant intends to attend a contested hearing, the department may not issue the permanent license but shall must forward the file to the Administrative Law Judge Division.
If the protestant during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed considered invalid, and the department shall must continue to process the application and shall must issue the license if all other statutory requirements are met.
A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a penalty to include court costs."
SECTION 12. Section 61-6-2000 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2000. In addition to the minibottle licenses authorized under pursuant to subarticle 1 of this article, the department also may also issue a temporary license for a period not to exceed twenty-four hours to nonprofit organizations which authorizes these organizations to purchase and sell at a single social occasion alcoholic liquors in minibottles by the drink. Notwithstanding any other provision of this article, the issuance of this permit authorizes the organization to purchase alcoholic liquors in minibottles from licensed retail dealers in the same manner that persons with biennial minibottle licenses are authorized to make these purchases. The fee for the permit is thirty-five dollars payable at the time of application. The permit application must include a statement by the applicant as to the amount of alcoholic liquors to be purchased and the nature and date of the social occasion at which they are to be sold. The issuance or nonissuance of permits authorized under pursuant to this section is within the sole discretion of the department."
SECTION 13. Section 61-6-2005(A) of the 1976 Code, as last amended by Act 442 of 1998, is further amended to read:
"(A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic liquors in sealed containers of two ounces or less by the drink from a holder of a license to sell alcoholic liquors in sealed containers of two ounces or less by the drink at the business, upon initiating the application process for a permanent license, may be issued a temporary license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and the applicant:
(1) the applicant currently holds a valid license to sell alcoholic liquors in sealed containers of two ounces or less by the drink; or
(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days."
SECTION 14. Section 61-6-2010(A) and (C) of the 1976 Code, as last amended by Act 353 of 2002, are further amended to read:
"(A) In addition to the provisions of Section 61-6-2000, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall must charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department also must also offer the option of an annual fifty-two week temporary permit for a nonrefundable fee of three thousand dollars per each year. However, the optional fifty-two week permit must not extend beyond the expiration date of the biennial license issued pursuant to this chapter. If the expiration date is less than fifty-two weeks from the date of the application for the optional fifty-two week permit, the department must prorate the three thousand dollar fee on a monthly basis. The department in its sole discretion shall specify the terms and conditions of the permit."
"(C)(1) Permits A permit authorized by this section may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permits permit. The county or municipal election commission, as the case may be appropriate, shall must conduct a referendum upon petition of at least ten percent but not more than seven thousand five hundred qualified electors of the county or municipality, as the case may be. The petition form must be submitted to the election commission not less than one hundred twenty days before the date of the referendum. The names on the petition must be on the petition form provided to county election officials by the State Election Commission. The names on the petition must be certified by the election commission within sixty days after receiving the petition form. The referendum must be conducted at the next general election. The election commission shall must cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall must apply to the referendum, mutatis mutandis. The election commission shall must publish the results of the referendum and certify them to the South Carolina Department of Revenue. The question on the ballot shall must read substantially as follows:
'Shall the South Carolina Department of Revenue be authorized to issue temporary permits in this (county)(municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less by the drink to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'
(2) A referendum for this purpose may not be held more often than once in forty-eight months.
(3) The expenses of any such a referendum must be paid by the county or municipality conducting the referendum."
SECTION 15. Section 61-6-2200 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2200. No A person may shall not serve or deliver to a purchaser alcoholic liquors in minibottles by the drink in a business where these sales are authorized unless the person is eighteen years of age or older; however, nothing contained in this section may shall be construed as allowing bartenders under the age of twenty-one."
SECTION 16. Section 61-6-2400 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2400. Alcoholic liquors sold in minibottles by the drink must be taxed pursuant to Chapter 33, Title 12."
SECTION 17. Section 61-6-2420 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2420. This article does not authorize a Class B Restaurant to sell, dispense, barter, or trade in minibottles alcoholic liquors. The law controlling Class B Restaurants in reference to the sale or dispensing of alcoholic liquors is not affected in any manner."
SECTION 18. Section 61-6-2600 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2600. Except as otherwise provided in this title, A a person who transports, possesses, or consumes alcoholic liquors except in a manner permitted by this article or a person who violates any of the provisions thereof of this article is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. In addition, a person licensed to sell alcoholic liquors pursuant to the provisions of this article who has in his possession on his licensed premises alcoholic liquors in containers other than minibottles, except wine as authorized for sale under Section 61-6-1540(B), or who displays minibottles when the seals are broken acts to avoid the payment of any tax levied on the serving of alcoholic beverages by the drink provided for in Chapter 33, Title 12, or who violates any other provision of this article must:
(1) for a first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than thirty days, or both;
(2) for a second offense within three years of the first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than one hundred eighty days, or both;
(3) for a third offense within three years of the first offense be fined not less than five hundred dollars and have his license revoked permanently; or
(4) for a violation involving the avoidance of taxes, a fine of be fined not less than one thousand dollars and permanent revocation of his license."
SECTION 19. The provisions of this act apply to all licenses or permits applied for on or after the effective date of this act. This act establishes a license to sell alcoholic liquors by the drink. All statutes and regulations applicable to minibottle licenses or permits or applications for licenses or permits apply to licenses or permits for alcoholic liquors by the drink. All minibottle licenses or permits in effect before the effective date of this act are considered to be licenses or permits to sell alcoholic liquors by the drink after the effective date of this act through the expiration of the license or permit.
SECTION 20. This act takes effect on the first day of July after the ratification of an amendment to the Constitution of the State authorizing the sale of liquor by the drink proposed at the time of the general election of 2004.
This web page was last updated on Thursday, June 25, 2009 at 10:04 A.M.