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A11, R36, H3452
Sponsors: Reps. Bannister, Bales, Crawford, Limehouse, G.M. Smith, J.E. Smith and Frye
Document Path: l:\council\bills\ms\7163ahb09.docx
Companion/Similar bill(s): 396
Introduced in the House on February 5, 2009
Introduced in the Senate on February 12, 2009
Passed by the General Assembly on April 23, 2009
Governor's Action: May 6, 2009, Signed
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/5/2009 House Introduced, read first time, placed on calendar without reference HJ-4 2/11/2009 House Member(s) request name added as sponsor: Frye 2/11/2009 House Read second time HJ-25 2/12/2009 House Read third time and sent to Senate HJ-26 2/12/2009 Senate Introduced and read first time SJ-10 2/12/2009 Senate Referred to Committee on Judiciary SJ-10 2/19/2009 Senate Referred to Subcommittee: Campbell (ch), Cleary, Williams, Mulvaney, Nicholson 3/11/2009 Senate Committee report: Favorable with amendment Judiciary SJ-19 3/12/2009 Scrivener's error corrected 4/15/2009 Senate Committee Amendment Amended and Adopted SJ-22 4/15/2009 Senate Read second time SJ-22 4/16/2009 Scrivener's error corrected 4/21/2009 Senate Read third time and returned to House with amendments SJ-16 4/23/2009 House Concurred in Senate amendment and enrolled HJ-264 4/23/2009 House Roll call Yeas-99 Nays-0 HJ-264 4/30/2009 Ratified R 36 5/6/2009 Signed By Governor 5/15/2009 Effective date 05/06/09 5/19/2009 Act No. 11
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VERSIONS OF THIS BILL
(A11, R36, H3452)
AN ACT TO AMEND SUBARTICLE 11, ARTICLE 3, CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION OF MANUFACTURERS OF ALCOHOLIC LIQUORS, SO AS TO AUTHORIZE THE ESTABLISHMENT OF MICRO-DISTILLERIES OF ALCOHOLIC LIQUORS, TO SET FORTH REGULATIONS AND LIMITATIONS OF THE MICRO-DISTILLERIES, TO PROVIDE FOR BIENNIAL LICENSES AND FEES FOR MANUFACTURERS AND MICRO-DISTILLERIES OF ALCOHOLIC LIQUORS, TO PROVIDE PROCEDURES FOR TASTINGS AT MANUFACTURERS AND MICRO-DISTILLERIES OF ALCOHOLIC LIQUORS, TO PROVIDE FOR LIMITED RETAIL SALE AT MICRO-DISTILLERIES OF THEIR PRODUCTS, AND TO PROVIDE PENALTIES FOR VIOLATIONS; AND TO AMEND SECTION 12-33-210, AS AMENDED, RELATING TO TAXES ON LICENSES GRANTED PURSUANT TO THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO INCREASE THE MANUFACTURER LICENSE FEE AND ADD A LICENSE FEE FOR A MICRO-DISTILLERY.
Be it enacted by the General Assembly of the State of South Carolina:
Alcoholic liquors, manufacturers and micro-distilleries
SECTION 1. Subarticle 11, Article 3, Chapter 6, Title 61 of the 1976 Code is amended to read:
Section 61-6-1095. For the purposes of this subarticle:
(A) 'Micro-distillery' means a manufacturer who distills, blends, and bottles alcoholic liquors on the licensed premises in this State with an alcohol content greater than seventeen percent and who produces a maximum quantity of one hundred twenty-five thousand cases per year at the licensed premises.
(B) 'Licensed premises' means a location where the micro-distillery or manufacturer is licensed pursuant to this subarticle for the manufacture, tasting, and retail sales of alcoholic liquors produced at the licensed location and includes those areas normally used by the licensee to conduct his business, and includes the producing areas, storage areas, tasting areas, selling areas, and parking lots.
(C) 'Person' means an individual, partnership, corporation, or other form of business entity.
Section 61-6-1100. A manufacturer may not own or operate more than one plant, establishment, or place of business for the manufacture of alcoholic liquors in any one county of this State, nor may he permit the drinking of alcoholic liquors on his premises, except as otherwise authorized by this subarticle.
Section 61-6-1110. The department may issue a manufacturer's license to a person to manufacture alcoholic liquors in the State subject to the requirements of this chapter and a payment of a biennial manufacturer license fee of fifty thousand dollars. This section is not applicable to a micro-distillery as defined and licensed pursuant to the provisions of this subarticle.
Section 61-6-1120. (A) The department may issue a micro-distillery license to a person to operate one micro-distillery in the State subject to the requirements of this chapter and payment of a biennial micro-distillery license fee of five thousand dollars.
(B) A micro-distillery is not required to obtain an additional manufacturing and retail liquor license required pursuant to this title.
Section 61-6-1130. (A) A micro-distillery or manufacturer desiring to offer tastings and sales of alcoholic liquors to consumers at its licensed premises shall remit taxes to the department for alcoholic liquors sold and dispensed in an amount equal to taxes paid by wholesalers on alcoholic liquors.
(B) Alcoholic liquors produced and sold on a licensed premises pursuant to this subarticle must be taxed and remitted as provided in Chapter 33, Title 12. The micro-distillery or manufacturer licensee shall maintain adequate records to ensure the collection of this tax.
Section 61-6-1140. A holder of a valid micro-distillery or manufacturer license issued by the State may permit tastings and retail sales of the alcoholic liquors produced at the licensed premises subject to the following limitations and any other limitations provided in this subarticle:
(1) tastings by and sales to consumers must be held in conjunction with a tour by the consumer of the on-site licensed premises;
(2) the micro-distillery or manufacturer shall establish appropriate protocols to ensure that a consumer sold or served alcoholic liquors pursuant to this section is not under twenty-one years of age and that a consumer shall not attend more than one tasting in a day;
(3) the micro-distillery or manufacturer shall dispense alcoholic liquors for tasting in quantities not greater than one-half ounce per sample;
(4) the micro-distillery or manufacturer may not dispense more than one and one-half ounces to an individual consumer in one day;
(5) tastings and sales may occur only between the hours of nine a.m. and seven p.m., Monday through Saturday;
(6) the micro-distillery or manufacturer may charge for alcoholic liquors consumed at a tasting, but must collect and remit the liquor by the drink excise tax pursuant to the provisions of Chapter 33, Title 12;
(7) tastings may not occur in conjunction with the service of food in a restaurant setting; and
(8) only brands of alcoholic liquors actually manufactured, distilled, or fermented at and distributed to wholesalers from the licensed premises may be sold or offered for tasting.
Section 61-6-1150. Authorization by this section of sales and tastings at licensed premises of a micro-distillery or manufacturer is expressly intended for the promotion of education regarding production of alcoholic liquors in the State and not to create competition between producers and retailers. A holder of a valid micro-distillery or manufacturer license issued by the State may:
(1) sell in any quantities the alcoholic liquors produced at the licensed premises to a wholesaler licensed by the State;
(2) transport in any quantities the alcoholic liquors produced at the licensed premises out of state for sale outside of the State;
(3) sell at retail at the licensed premises only in quantities of 750-milliliter bottles the alcoholic liquors produced at the licensed premises, but only if the labels for the bottles are marked 'not for resale';
(4) sell at retail no more than three 750-milliliter bottles of alcoholic liquors to a consumer in one business day;
(5) not allow consumption on the licensed premises of alcoholic liquors sold by the bottle at the licensed premises;
(6) maintain pricing of the alcoholic liquors sold at the licensed premises at a price approximating retail prices generally charged for identical alcoholic liquors in the county where the on-site premises is located;
(7) in addition to the sale of alcoholic liquors as authorized by this section, sell items promoting the brand or brands of alcoholic liquors produced at that location in a room on the licensed premises separate from the locations of the tastings; and
(8) not sell or store goods, wares, or merchandise in or from the room in which alcoholic liquors are sold or tasted.
Section 61-6-1160. Except as otherwise provided in this title:
(A) a person who transports, possesses, or consumes alcoholic liquors and who violates a provision of this subarticle 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; and
(B) a person licensed pursuant to this subarticle who violates a provision of this subarticle 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; or
(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; and
(C) a person licensed pursuant to this subarticle who acts to avoid payment of the excise tax imposed on the serving of alcoholic liquors by the drink provided for in Chapter 33, Title 12 must be fined not less than one thousand dollars and have his license revoked permanently."
Tax, Alcoholic Beverage Control Act, license fees
SECTION 2. Section 12-33-210(A) of the 1976 Code, as last amended by Act 96 of 2007, is further amended to read:
"(A) The biennial license taxes on licenses granted pursuant to Title 61, in addition to all other license taxes, are as follows:
(1) manufacturer's license: fifty thousand dollars;
(2) wholesaler's license: twenty thousand dollars;
(3) micro-distillery license: five thousand dollars;
(4) retail dealer's license: one thousand two hundred dollars; and
(5) special food manufacturer's license: one thousand two hundred dollars."
SECTION 3. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 4. This act takes effect upon approval by the Governor.
Ratified the 30th day of April, 2009.
Approved the 6th day of May, 2009.
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