South Carolina Legislature


 

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S*114
Session 122 (2017-2018) 

S*0114(Rat #0065, Act #0044 of 2017)  General Bill, By Bennett and Senn
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 61-2-185 SO AS TO ALLOW NONPROFITNext ORGANIZATIONS TO APPLY FOR SPECIAL PreviousNONPROFITNext
 EVENT LICENSES TO ALLOW THEM TO SOLICIT AND ACCEPT DONATIONS OF ALCOHOL TO BE
 SOLD FOR ON-PREMISES CONSUMPTION UNDER CERTAIN CIRCUMSTANCES, TO PRESCRIBE A
 PROCESS FOR SUPPLIERS AND WHOLESALERS TO WORK TOGETHER TO PROVIDE DONATED
 ALCOHOL FOR LICENSED PreviousNONPROFITNext EVENTS, TO ALLOW SUPPLIERS TO FURNISH EQUIPMENT
 AND TRAINED REPRESENTATIVES TO SERVE AND POUR ALCOHOL AT LICENSED PreviousNONPROFITNext
 EVENTS, AND DEFINE NECESSARY TERMS. - ratified title

   12/13/16  Senate Prefiled
   12/13/16  Senate Referred to Committee on Judiciary
   01/10/17  Senate Introduced and read first time (Senate Journal-page 67)
   01/10/17  Senate Referred to Committee on Judiciary
                     (Senate Journal-page 67)
   01/18/17  Senate Referred to Subcommittee: Shealy (ch), Hutto, Senn
   02/23/17  Senate Committee report: Favorable with amendment
                     Judiciary (Senate Journal-page 15)
   03/16/17  Senate Committee Amendment Adopted (Senate Journal-page 17)
   03/16/17  Senate Read second time (Senate Journal-page 17)
   03/16/17  Senate Roll call Ayes-41  Nays-1 (Senate Journal-page 17)
   03/21/17  Senate Read third time and sent to House
                     (Senate Journal-page 14)
   03/22/17  House  Introduced and read first time (House Journal-page 10)
   03/22/17  House  Referred to Committee on Judiciary
                     (House Journal-page 10)
   05/03/17  House  Committee report: Favorable Judiciary
                     (House Journal-page 64)
   05/09/17  House  Read second time (House Journal-page 74)
   05/09/17  House  Roll call Yeas-67  Nays-18 (House Journal-page 75)
   05/10/17  House  Read third time and enrolled (House Journal-page 13)
   05/15/17         Ratified R 65
   05/19/17         Signed By Governor
   05/26/17         Effective date 11/19/17
   05/31/17         Act No. 44





S. 114

(A44, R65, S114)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 61-2-185 SO AS TO ALLOW PreviousNONPROFITNext ORGANIZATIONS TO APPLY FOR SPECIAL PreviousNONPROFITNext EVENT LICENSES TO ALLOW THEM TO SOLICIT AND ACCEPT DONATIONS OF ALCOHOL TO BE SOLD FOR ON-PREMISES CONSUMPTION UNDER CERTAIN CIRCUMSTANCES, TO PRESCRIBE A PROCESS FOR SUPPLIERS AND WHOLESALERS TO WORK TOGETHER TO PROVIDE DONATED ALCOHOL FOR LICENSED PreviousNONPROFITNext EVENTS, TO ALLOW SUPPLIERS TO FURNISH EQUIPMENT AND TRAINED REPRESENTATIVES TO SERVE AND POUR ALCOHOL AT LICENSED PreviousNONPROFITNext EVENTS, AND DEFINE NECESSARY TERMS.

Be it enacted by the General Assembly of the State of South Carolina:

Alcohol, special PreviousnonprofitNext event licenses, donations of alcohol, requirements, definitions

SECTION    1.    Chapter 2, Title 61 of the 1976 Code is amended by adding:

"Section 61-2-185.    (A)    A PreviousnonprofitNext organization may apply for a special PreviousnonprofitNext license. A special PreviousnonprofitNext event is an event for which a PreviousnonprofitNext organization solicits and accepts donations of alcohol to be sold for on-premises consumption. A PreviousnonprofitNext organization applying for a special PreviousnonprofitNext event license must meet the following requirements:

(1)    The organization must be a PreviousnonprofitNext organization registered and in good standing with the South Carolina Secretary of State as a domestic PreviousnonprofitNext organization.

(2)    The PreviousnonprofitNext organization must not hold a biennial permit or license issued pursuant to Title 61 for on-premises or off-premises consumption.

(3)    A special PreviousnonprofitNext event must last no longer than seventy-two consecutive hours. For the purpose of this section, an event may take place at more than one location where the PreviousnonprofitNext organization has control of the premises for the special PreviousnonprofitNext event. For multiple locations to constitute one event, the location must be in the same county.

(4)    The PreviousnonprofitNext organization must have a reputation for peace and good order in its community, and the principals must be of good character.

(5)    The PreviousnonprofitNext organization must obtain a special PreviousnonprofitNext event license from the department. A PreviousnonprofitNext organization shall not be licensed to hold more than four special nonprofits in one calendar year.

(B)(1)    A PreviousnonprofitNext organization seeking a special PreviousnonprofitNext event license application must submit an application, as promulgated by the department, that satisfies the requirements set forth in Section 61-2-90, and that includes notice to local law enforcement, and may require criminal background checks, together with a nonrefundable license fee of forty dollars.

(2)    The department must deny an application that does not contain the information required on the application and the license fee.

(C)    For purposes of this section only:

(1)    'Alcohol' means beer, ale, porter, and other similar malt or fermented beverages, wine not in excess of twenty-one percent alcohol, alcoholic liquors, or any other type of alcoholic beverage that contains any amount of alcohol and is used as a beverage for human consumption. It does not include alcohol that is not registered as a brand in this State and it does not include alcohol that is made at home for home consumption.

(2)    'Supplier' means a manufacturer, producer, vintner, brewer, micro-brewer, importer, distiller, or micro-distiller of alcohol, authorized to do business in this State.

(D)    For a special PreviousnonprofitNext event only, a supplier or wholesaler of alcohol may donate alcohol to a PreviousnonprofitNext organization for sale and on-premises consumption at a special PreviousnonprofitNext event, without violation of Section 61-4-735, Section 61-4-940, or Chapter 6, Title 61 subject to the following requirements:

(1)(a)    All alcohol provided to the PreviousnonprofitNext organization from a supplier or a wholesaler for the special PreviousnonprofitNext event must be transferred through a wholesaler licensed in this State that is authorized by an applicable supplier to sell alcohol to retailers.

(b)    Up to three calendar days prior to the event, the alcohol may be picked up by the PreviousnonprofitNext organization from the applicable wholesaler's warehouse, upon presentation of the special PreviousnonprofitNext event license, or the alcohol may be delivered to the event premises by the applicable wholesaler, if the PreviousnonprofitNext organization is in control of the event premises at the time of delivery, and upon presentment of the special PreviousnonprofitNext event license.

(c)    Except as provided in subsection (E)(1), where applicable, the provisions of Article 13, Chapter 4, Title 61 concerning territorial agreements, operate.

(2)    The wholesaler shall pay the appropriate state excise taxes to the department on the donated alcohol.

(3)    A wholesaler that chooses to donate alcohol to the special PreviousnonprofitNext event may:

(a)    provide alcohol previously purchased from the supplier and invoice the appropriate supplier for the cost of the alcohol, together with the excise taxes paid or to be paid by the wholesaler; or

(b)    receive delivery of the donated alcohol from the supplier and bill the supplier for the excise tax paid or to be paid by the wholesaler.

(4)    The wholesaler that is providing the alcohol must present an invoice to the PreviousnonprofitNext organization that includes:

(a)    a listing of the types of alcohol and the alcohol brands that have been donated to the event;

(b)    the wholesaler's regular price to retailers for the alcohol so donated; and

(c)    the name and address of the supplier or wholesaler that has donated the alcohol.

(5)    The wholesaler shall transfer the donated alcohol to the PreviousnonprofitNext organization only after presentation of the original special PreviousnonprofitNext event license, as issued by the department, and the delivery of the wholesaler's invoice to the PreviousnonprofitNext organization.

(6)    For sales of nondonated alcohol from a wholesaler to the PreviousnonprofitNext organization for use and on-premises consumption at the special PreviousnonprofitNext event, the provisions of Section 61-4-30 and Section 61-6-1300 apply.

(7)    The PreviousnonprofitNext organization licensed to hold the special PreviousnonprofitNext event is responsible for maintaining any and all invoices for alcohol donated or purchased for the event. The invoices must be available at the event upon request of the division.

(E)(1)    In addition to the donations of alcohol, a PreviousnonprofitNext organization may solicit from and a supplier may provide, without violation of Section 61-4-735, Section 61-4-940, or Chapter 6, Title 61, the following, with or without charge, for use at a special PreviousnonprofitNext event:

(a)    individual employees, agents, owners, or members of a supplier to pour and serve alcohol, if each of these individuals has received training from an alcohol education training program recognized by the department and posted on the department's website;

(b)    point of sale advertising specialties, as defined by federal law and regulations; and

(c)    equipment used to dispense alcohol for sale for on-premises consumption.

(2)    A wholesaler of alcohol shall not provide individual employees, owners, or members of a wholesaler to pour or serve alcohol at a special PreviousnonprofitNext event. A wholesaler of alcohol is prohibited from providing any services not authorized by Section 61-4-735, Section 61-4-940, or Section 61-6-1300.

(F)(1)    For brands of beer that are registered in the State, but have not yet been assigned to a wholesaler for the territory where the special PreviousnonprofitNext event is to be held, a producer or importer may deliver the beer to a willing wholesaler who operates in the territory where the event is to be held, along with the appropriate excise tax and proof that the brand has been registered in the State, and the wholesaler may provide such delivered beer for the event.

(2)    Brewpubs may donate beer that is brewed at the brewpub to a PreviousnonprofitNext organization holding a special PreviousnonprofitNext event pursuant to the requirements of this section. The brewpub must deliver the donated beer, together with the appropriate state excise tax, to a willing wholesaler that operates in the territory where the special PreviousnonprofitNext event is to be held and the wholesaler shall transfer the donated beer to the Previousnonprofit organization in accordance with the provisions of this section.

(3)    Donations pursuant to this subsection and delivery by the producer, importer, or brewpub shall not operate as an assignment of territory to the wholesaler and shall not be considered violations of Article 13 or Article 17, Chapter 4, Title 61."

Time effective

SECTION    2.    This act becomes effective six months after approval by the Governor.

Ratified the 15th day of May, 2017.

Approved the 19th day of May, 2017.

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