S 550 Session 112 (1997-1998)
S 0550 General Bill, By McConnell
A BILL TO AMEND ARTICLE 5, CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO BIENNIAL MINIBOTTLE LICENSES, BY ADDING SECTION
61-6-1615, SO AS TO DIVIDE LICENSES ISSUED TO FOOD SERVICE ESTABLISHMENTS AND
PLACES OF LODGING INTO TWO CLASSES BASED UPON THE PERCENTAGE OF GROSS PROCEEDS
RECEIVED FROM ALCOHOL SALES; TO AMEND SECTION 61-4-540, RELATING TO ISSUANCE
OF PERMITS FOR SALE OF BEER AND WINE, SO AS TO REQUIRE A PERMIT TO STATE
WHETHER THE PERMIT IS APPROVED FOR ON-PREMISES OR OFF-PREMISES CONSUMPTION;
AND TO AMEND ARTICLE 5, CHAPTER 4, TITLE 61, BY ADDING SECTION 61-4-545,
RELATING TO PERMITS FOR THE SALE OF BEER AND WINE, SO AS TO DIVIDE PERMITS
ISSUED FOR ON-PREMISES CONSUMPTION INTO TWO CLASSES BASED UPON THE PERCENTAGE
OF GROSS PROCEEDS RECEIVED FROM BEER AND WINE SALES.
03/19/97 Senate Introduced and read first time SJ-6
03/19/97 Senate Referred to Committee on Judiciary SJ-6
A BILL
TO AMEND ARTICLE 5, CHAPTER 6, TITLE 61, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO BIENNIAL
MINIBOTTLE LICENSES, BY ADDING SECTION 61-6-1615, SO
AS TO DIVIDE LICENSES ISSUED TO FOOD SERVICE
ESTABLISHMENTS AND PLACES OF LODGING INTO TWO
CLASSES BASED UPON THE PERCENTAGE OF GROSS
PROCEEDS RECEIVED FROM ALCOHOL SALES; TO AMEND
SECTION 61-4-540, RELATING TO ISSUANCE OF PERMITS
FOR SALE OF BEER AND WINE, SO AS TO REQUIRE A
PERMIT TO STATE WHETHER THE PERMIT IS APPROVED
FOR ON-PREMISES OR OFF-PREMISES CONSUMPTION; AND
TO AMEND ARTICLE 5, CHAPTER 4, TITLE 61, BY ADDING
SECTION 61-4-545, RELATING TO PERMITS FOR THE SALE
OF BEER AND WINE, SO AS TO DIVIDE PERMITS ISSUED
FOR ON-PREMISES CONSUMPTION INTO TWO CLASSES
BASED UPON THE PERCENTAGE OF GROSS PROCEEDS
RECEIVED FROM BEER AND WINE SALES.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Subarticle 1, Article 5, Chapter 6, Title 61 of the
1976 Code is amended by adding:
"Section 61-6-1615. (A)There shall be two classes of licenses
issued pursuant to Section 61-6-1610, Class A and Class B.
(B) A Class A license shall be issued to a business that is bona fide
engaged primarily and substantially in the preparation and serving of
meals or furnishing of lodging and whose gross proceeds from the
sale of alcoholic liquors in minibottles are seventy-five percent or
less of the total gross proceeds of the business.
(C)(1) A Class B license shall be issued to a business that is bona
fide engaged primarily and substantially in the preparation and
serving of meals or furnishing of lodging whose gross proceeds from
the sale of alcoholic liquors in minibottles are greater than
seventy-five percent of the total gross proceeds of the business.
(2) In addition to complying with all other applicable laws,
including the requirements for licensure provided in Section
61-6-1820 and Section 61-6-120, an applicant for a Class B license
must prove the suitability of the location. In determining the
suitability of a location, the department shall consider such factors as
the population density in the community, the character of the
community, and the number of other businesses in the community.
(3) A Class B licensee seeking renewal shall be examined and
reviewed by the department for the purpose of determining whether
the licensee has used its license in the past in a manner that is both
reasonable and appropriate to the community in which it is located.
A license shall not be considered to have been used in a manner that
is appropriate to the community if the location has a history of
crime-related activities including, but not limited to, arrests for
violent crimes, arrests for crimes of moral turpitude, arrests for
disorderly conduct, or arrests regarding drug possession or sales on
the premises. In such circumstances, the department may refuse to
renew a license on the grounds that the licensure of the location is not
appropriate for the community in which it is situated.
(4) A licensee shall notify the local governing authority where
the premises is located of the licensee's intent to seek renewal of a
license not more than ninety days prior to an application for renewal.
The local governing authority may raise an objection to renewal of
the license based upon the suitability of the location and the
licensee's past years of operation at the location.
(5) If either an initial application is denied or a request for
renewal is refused pursuant to this section, no Class B license may be
issued for that location for a period of ten years following the denial
or refusal.
(D) (1) An applicant or licensee seeking an initial or renewed
Class A or Class B license must file with the department at the time
of application a sworn statement certifying:
(a) whether more than seventy-five percent of their gross
proceeds are from alcohol sales; and
(b) the actual dollar amounts and the percentage amounts of
their wholesale food and beverage purchases that are alcohol and that
are non-alcohol, respectively.
(2) If the municipality or county where the licensed premises
are located requires a business license, the applicant or licensee shall
also file the sworn statement required to be filed pursuant to item (1)
with the municipality or county, as applicable, whenever the
applicant or licensee seeks an initial or renewed business license.
(3)(a) The department may revoke the license of a licensee who,
for the purpose of obtaining a Class A license when it should
properly receive a Class B license, conceals any material facts,
knowingly hides facts, or knowingly misreports the information
required by this section.
(b) A license may be revoked pursuant to this subsection for
up to ten years, at the discretion of the department.
(E) An applicant seeking an initial license shall be issued a Class
A license without application of the gross proceeds test. However, at
the end of the first year of licensure, a licensee who was initially
issued a Class A license shall file with the department and with the
county or municipality the sworn statement required to be filed
pursuant to subsection (D). If the statement indicates that the licensee
should be issued a Class B license, the department shall issue a Class
B license, which shall be in effect for the remainder of the initial
license period.
(F) For purposes of this section, the phrase `total gross proceeds of
the business' means the total of :
(1) the gross proceeds of sales, as defined in Section 12-36-90,
subject to the tax imposed pursuant to Section 12-36-910;
(2) the gross proceeds subject to the tax imposed pursuant to
Section 12-36-920;
(3) the gross proceeds derived from the sale of alcoholic liquors
in minibottles; and
(4) the gross proceeds derived from the sale of beer and wine."
SECTION 2. Section 61-4-540 of the 1976 Code is amended to
read:
"Section 61-4-540. When a verified application is filed with the
department and the department determines that (1) the requisite
qualifications and conditions are met, (2) the applicant is a fit person
to sell beer or wine, and (3) the location of the proposed place of
business is a proper one, the department must issue a permit to the
applicant to sell beer or wine on the premises described in the
application upon the payment of the fee prescribed by law. The
permit shall state whether the location is approved for on-premises or
off-premises consumption. A misstatement or concealment of
fact in an application is a sufficient ground for the revocation of the
permit.
The department may, in those cases where it considers necessary,
require an applicant to post a cash bond or surety bond with a
bonding company approved by the Department of Insurance as an
additional condition for a permit. The bond must be in an amount as
determined by the department and is subject to forfeiture in whole or
in part for violations of law relating to the sale of beer or wine."
SECTION 3. Article 5, Chapter 4, Title 61 of the 1976 Code is
amended by adding:
"Section 61-4-545. (A) There shall be two classes of permits for
on-premises consumption issued pursuant to Section 61-4-540, Class
A and Class B.
(B) A Class A permit shall be issued to a business whose gross
proceeds from the sale of beer and wine are seventy-five percent or
less of the total gross proceeds of the business.
(C)(1) A Class B permit shall be issued to a business whose gross
proceeds from the sale of beer and wine are greater than seventy-five
percent of the total gross proceeds of the business.
(2) In addition to complying with all other applicable laws,
including the permit requirements provided in Section 61-4-520, an
applicant for a Class B permit must prove the suitability of the
location. In determining the suitability of a location, the department
shall consider such factors as the population density in the
community, the character of the community, and the number of other
businesses in the community.
(3) A Class B permit holder seeking renewal shall be examined
and reviewed by the department for the purpose of determining
whether the licensee has used its license in the past in a manner that
is both reasonable and appropriate to the community in which it is
located. A license shall not be considered to have been used in a
manner that is appropriate to the community if the location has a
history of crime-related activities including, but not limited to, arrests
for violent crimes, arrests for crimes of moral turpitude, arrests for
disorderly conduct, or arrests regarding drug possession or sales on
the premises. In such circumstances, the department may refuse to
renew a permit on the grounds that issuing a permit for the location
is not appropriate for the community in which it is situated.
(4) A permit holder shall notify the local governing authority
where the premises is located of the permit holder's intent to seek
renewal of a permit not more than ninety days prior to an application
for renewal. The local governing authority may raise an objection to
renewal of the permit based upon the suitability of the location and
the licensee's past years of operation at the location.
(5) If either an initial application is denied or a request for
renewal is refused pursuant to this section, no Class B license may be
issued for that location for a period of ten years following the denial
or refusal.
(D)(1) An applicant or permit holder seeking an initial or renewed
Class A or Class B permit must file with the department at the time
of application a sworn statement certifying:
(a) whether more than seventy-five percent of their gross
proceeds are from sales of beer and wine; and
(b) the actual dollar amounts and the percentage amounts of
their wholesale food and beverage purchases that are beer and wine
and that are not beer and wine, respectively.
(2) If the municipality or county where the premises for which
the permit is issued are located requires a business license, the
applicant or licensee shall also file the sworn statement required to be
filed pursuant to item (1) with the municipality or county, as
applicable, whenever the applicant or licensee seeks an initial or
renewed business license.
(3)(a) The department may revoke the permit of a permit holder
licensee who, for the purpose of obtaining a Class A permit when it
should properly receive a Class B permit, conceals any material facts,
knowingly hides facts, or knowingly misreports the information
required by this section.
(b) A permit may be revoked pursuant to this subsection for
up to ten years, at the discretion of the department.
(E) An applicant seeking an initial license shall be issued a Class
A permit without application of the gross proceeds test. However, at
the end of the first year of the permit period, a licensee who was
initially issued a Class A permit shall file with the department and
with the county or municipality the sworn statement required to be
filed pursuant to subsection (D). If the statement indicates that the
permit holder should be issued a Class B permit, the department shall
issue a Class B permit, which shall be in effect for the remainder of
the initial permit period.
(F) For purposes of this section, the phrase `total gross proceeds
of the business' means the total of :
(1) the gross proceeds of sales, as defined in Section 12-36-90,
subject to the tax imposed pursuant to Section 12-36-910;
(2) the gross proceeds subject to the tax imposed pursuant to
Section 12-36-920; and
(3) the gross proceeds derived from the sale of beer and wine."
SECTION 4. This act takes effect upon approval by the Governor.
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