H 4547 Session 112 (1997-1998)
H 4547 General Bill, By J.G. Felder
A BILL TO AMEND SECTION 61-2-100, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO PERSONS ENTITLED TO BE LICENSEES OR PERMITTEES FOR PURPOSES OF THE
ALCOHOLIC BEVERAGE CONTROL ACT AND THE SALE OF BEER AND WINE, SO AS TO
AUTHORIZE SUCH LICENSES AND PERMITS TO BE ISSUED TO A QUALIFYING PERSON WHO IS
THE TRUE OWNER OF THE BUSINESS SEEKING THE PERMIT OR LICENSE, TO REQUIRE
BUSINESSES LICENSED OR PERMITTED TO DESIGNATE AN AGENT AND MAILING ADDRESS FOR
SERVICE OF NOTICES AND PROVIDE FOR SERVICE AND PROHIBIT ANY ONE PERSON FROM
ACTING AS AN AGENT FOR MORE THAN ONE BUSINESS ENTITY UNLESS THE PERSON HAS AN
OWNERSHIP INTEREST IN THE BUSINESS ENTITIES, TO PROHIBIT THE ISSUE OF A
LICENSE OR PERMIT TO ANY PERSON UNLESS THE PERSON AND ALL PRINCIPALS ARE OF
GOOD MORAL CHARACTER AND DEFINE "GOOD MORAL CHARACTER", TO PROHIBIT THE ISSUE
OF A LICENSE OR PERMIT TO AN INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE OR A
BUSINESS WITH AN INDIVIDUAL PRINCIPAL UNDER TWENTY-ONE YEARS OF AGE, TO
REQUIRE THE DEPARTMENT OF REVENUE PROMPTLY TO INITIATE REVOCATION OF ANY
PERMIT OR LICENSE ISSUED TO A PERSON NOT THE TRUE OWNER, OR WHEN THE LICENSED
PERSON OR A PRINCIPAL HAS BEEN CONVICTED OF A FELONY OR CERTAIN MISDEMEANORS,
OR WHEN THE LICENSED INDIVIDUAL OR AN INDIVIDUAL PRINCIPAL IS UNDER TWENTY-ONE
YEARS OF AGE, TO APPLY THE REQUIREMENT THAT AN APPLICANT BE CURRENT WITH STATE
AND FEDERAL TAXES TO ALL PRINCIPALS, AND TO DEFINE "PERSON" AND "PRINCIPAL".
01/28/98 House Introduced and read first time HJ-57
01/28/98 House Referred to Committee on Judiciary HJ-58
04/15/98 House Committee report: Favorable with amendment
Judiciary HJ-8
04/16/98 House Amended HJ-39
04/16/98 House Read second time HJ-44
04/16/98 House Unanimous consent for third reading on next
legislative day HJ-44
04/17/98 House Read third time and sent to Senate HJ-4
04/21/98 Senate Introduced and read first time
04/21/98 Senate Referred to Committee on Judiciary
05/27/98 Senate Committee report: Favorable with amendment
Judiciary SJ-16
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 27, 1998
H. 4547
Introduced by Rep. Felder
S. Printed 5/27/98--S.
Read the first time April 21, 1998.
THE COMMITTEE ON JUDICIARY
To whom was referred a Bill (H. 4547), to amend Section 61-2-100,
Code of Laws of South Carolina, 1976, relating to persons entitled to
be licensees or permittees for purposes of the Alcoholic Beverage
Control Act, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass with amendment:
Amend the bill, as and if amended, page 6, beginning on line 31, by
striking SECTION 7 and inserting therein the following:
/SECTION 7. Article 5, Chapter 4, Title 61 of the 1976 Code is
amended by adding:
"Section 61-4-525. A person residing in the county in which
a beer and wine permit has been applied for, or a person residing
within five miles of the location for which a beer and wine permit has
been applied for, may protest the issuance or renewal of the permit 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 permit and the address of the
premises sought to be licensed, or the name and address of the permit
holder if the application is for renewal;
(3) the reasons why the application should 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
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 shall not issue the
permanent permit and shall forward the file to the Administrative
Law Judge Division.
If the protestant expresses no desire to attend a contested hearing
and offer testimony, the protest is deemed invalid, and the department
shall continue to process the application and shall issue the permit 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 fine or
penalty to include court costs."
SECTION 8. Article 5, Chapter 4, Title 61 of the 1976 Code is
amended to by adding:
"Section 61-4-615. (A) No licensee may sell or offer to sell
any container of malt liquor that contains more than one quart or one
liter, whichever is greater, of that beverage.
(B) A person who violates the provisions of subsection (A) is
subject to a civil penalty of not more than five hundred dollars for a
first offense, not more than one thousand dollars for a second offense,
and shall be subject to revocation or suspension of that person's
license for a third offense. Each day of violation constitutes a
separate offense."
SECTION 9. Article 5, Chapter 4, Title 61 of the 1976 Code is
amended by adding:
"Section 61-4-630. (A) A holder of a retail permit which
allows sales of beer or wine for off-premises consumption may
deliver beer or wine in a sealed container to a person age twenty-one
or older, at a location other than the licensed premises.
(B) The person receiving the delivery must sign a receipt for the
delivery and present a valid form of identification which verifies the
person's age. The delivery receipt must include the date of birth of
the recipient and the document number for the form of identification
provided. The permit holder must retain a copy of the signed
delivery receipt for at least one hundred eighty days.
(C) No holder of a permit authorizing the sale of beer or wine or
a servant, agent, or employee of the permittee may knowingly
commit any of the following:
(1) sell or deliver beer or wine to a person under twenty-one
years of age;
(2) sell or deliver beer or wine to an intoxicated person; or
(3) permit any act, the commission of which tends to create a
public nuisance or which constitutes a crime under the laws of this
State.
(D) A violation of any provision of this section is a ground for the
revocation or suspension of the holder's permit."
SECTION 10. Subarticle 1, Article 3, Chapter 61 of the 1976
Code is amended by adding:
"Section 61-6-185. A person residing in the county in which
a retail liquor license has been applied for, or a person residing within
five miles of the location for which a retail liquor license has been
applied for, 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 reasons why the application should 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
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 shall not issue the
permanent license and shall forward the file to the Administrative
Law Judge Division.
If the protestant expresses no desire to attend a contested hearing
and offer testimony, the protest is deemed invalid, and the department
shall continue to process the application and shall 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 fine or
penalty to include court costs."
SECTION 11. Section 61-6-1820 of the 1976 Code, as added by
Act 415 of 1996, is amended by deleting the last paragraph which
reads:
"Upon the written request of a person who resides in the
county where the license is requested to be issued, the department
must not issue the license until interested persons have been given an
opportunity to be heard."
SECTION 12. Subarticle 3, Article 5, Chapter 6, Title 61 of the
1976 Code is amended by adding:
"Section 61-6-1825. A person residing in the county in which
a minibottle license has been applied for, or a person residing within
five miles of the location for which a retail liquor license has been
applied for, 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 reasons why the application should 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
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 shall not issue the
permanent license and shall forward the file to the Administrative
Law Judge Division.
If the protestant expresses no desire to attend a contested hearing
and offer testimony, the protest is deemed invalid, and the department
shall continue to process the application and shall 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 fine or
penalty to include court costs."
SECTION 13. Section 1 of this act takes effect upon approval by
the Governor and applies to applications pending on that date and to
applications filed on or after that date. Sections 7, 10, 11, and 12 take
effect on the first day of the second month following approval by the
Governor and apply with respect to applications for beer and wine
permits, retail liquor dealer permits, and minibottle licenses filed on
or after that date. The remaining sections take effect July 1, 1998./
Amend title to conform.
GLENN F. McCONNELL, for Committee.
A BILL
TO AMEND SECTION 61-2-100, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PERSONS ENTITLED TO BE
LICENSEES OR PERMITTEES FOR PURPOSES OF THE
ALCOHOLIC BEVERAGE CONTROL ACT AND THE SALE OF
BEER AND WINE, SO AS TO AUTHORIZE SUCH LICENSES
AND PERMITS TO BE ISSUED TO A QUALIFYING PERSON
WHO IS THE TRUE OWNER OF THE BUSINESS SEEKING THE
PERMIT OR LICENSE, TO REQUIRE BUSINESSES LICENSED
OR PERMITTED TO DESIGNATE AN AGENT AND MAILING
ADDRESS FOR SERVICE OF NOTICES AND PROVIDE FOR
SERVICE AND PROHIBIT ANY ONE PERSON FROM ACTING
AS AN AGENT FOR MORE THAN ONE BUSINESS ENTITY
UNLESS THE PERSON HAS AN OWNERSHIP INTEREST IN
THE BUSINESS ENTITIES, TO PROHIBIT THE ISSUE OF A
LICENSE OR PERMIT TO ANY PERSON UNLESS THE
PERSON AND ALL PRINCIPALS ARE OF GOOD MORAL
CHARACTER AND DEFINE "GOOD MORAL
CHARACTER", TO PROHIBIT THE ISSUE OF A LICENSE
OR PERMIT TO AN INDIVIDUAL UNDER TWENTY-ONE
YEARS OF AGE OR A BUSINESS WITH AN INDIVIDUAL
PRINCIPAL UNDER TWENTY-ONE YEARS OF AGE, TO
REQUIRE THE DEPARTMENT OF REVENUE PROMPTLY TO
INITIATE REVOCATION OF ANY PERMIT OR LICENSE
ISSUED TO A PERSON NOT THE TRUE OWNER, OR WHEN
THE LICENSED PERSON OR A PRINCIPAL HAS BEEN
CONVICTED OF A FELONY OR CERTAIN MISDEMEANORS,
OR WHEN THE LICENSED INDIVIDUAL OR AN INDIVIDUAL
PRINCIPAL IS UNDER TWENTY-ONE YEARS OF AGE, TO
APPLY THE REQUIREMENT THAT AN APPLICANT BE
CURRENT WITH STATE AND FEDERAL TAXES TO ALL
PRINCIPALS, AND TO DEFINE "PERSON" AND
"PRINCIPAL".
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 61-2-100 of the 1976 Code, as added by Act
415 of 1996, is amended to read:
"Section 61-2-100. (A) No license or permit may be
issued to an organization, an association, or a corporation as an
entity. If an application is made for an organization, an association,
or a corporation, the license or permit, if issued, must be issued to an
officer of the organization, association, or corporation or a person
specifically designated in writing by the Chief Executive Officer of
the organization, association, or corporation. The officer or
designated person is responsible under the license or permit as an
individual and is subject to the provisions and penalties set forth in
this title applicable to individual licensees and permittees.
(B) A person may hold multiple permits and
licenses. However, a person, his agent, or his attorney must not be
issued a permit or license for more than one business entity.
(C) No license or permit may be issued by the
department to a person under twenty-one years of age.
(A) The department may issue licenses and permits
authorized under this title to qualifying persons. Licenses and
permits may be issued only to the person who is the owner of the
business seeking the permit or license.
(B) The department shall initiate action to revoke any permit or
license that is issued to any person who is not the owner of the
licensed business or when the licensed individual or an individual
principal of the licensed business is under twenty-one years of age.
(C) If application is made for a license or permit under this title by
a person other than an individual, all principals are deemed to be the
applicant under Section 61-2-160.
(D) The department may not issue a license or permit under this
title to any person unless the person and all principals are of good
moral character.
(E) The department may not issue a license or permit under this
title to an individual under twenty-one years of age or a business with
an individual principal under twenty-one years of age.
(F) Businesses licensed or permitted by the department under this
title must designate with the department an agent and mailing address
for service of notices. Any required notice may be given by handing
it to the agent in person or leaving the notice at his office with a clerk
or other person in charge of the office, or if there is no one in charge,
leaving it in a conspicuous place in the office; or, if the office is
closed or the person to be served has no office, leaving a copy at his
dwelling place with a person of suitable age and discretion residing
in the dwelling place; or by serving it on an employee at the licensed
place of business; or by mailing it by first class mail to the agent at
his last known address, postage prepaid. No person may act as agent
for more than one business entity unless the person has an ownership
interest in the business entities.
(G) Nothing in this section may be construed to alter the effect of
Sections 61-6-140 and 61-6-150.
(H) As used in this title and unless otherwise required by the
context:
(1) 'Person' includes an individual, a trust, estate, partnership,
limited liability company, receiver, association, company,
corporation, or any other group.
(2) 'principal' of a business or entity means a person who is
described in any one or more of the following terms:
(a) an officer of the business or entity which owns the
business;
(b) a partner other than a limited partner who cannot exercise
any management control;
(c) a manager of limited liability company which is managed
by managers;
(d) a member of the limited liability company which is not
managed by managers;
(e) a fiduciary, including personal representatives, trustees,
guardians, committees, and receivers, who manage, hold, or control
title to or who is otherwise in direct or indirect control of the
business;
(f) a person who owns twenty-five percent or more of the
combined voting power of the business or entity;
(g) a person who owns twenty-five percent or more of the
value of the business entity; or
(h) an employee who has day-to-day operational management
responsibilities for the business or entity.
(i) a license or permit may be issued to a publicly held
corporation, which is deemed the applicant under Section 61-2-160
and the corporation shall designate an officer or other employee of
good moral character, over the age of twenty-one and a resident of
this State in whose name the permit or license must be held on behalf
of the corporation and the corporation may substitute an officer or
employee if the individual is of good moral character, over the age of
twenty-one, and a resident of this State, and upon notice in writing of
the substitution to the department."
SECTION 2. Section 61-6-505 of the 1976 Code, as added by Act
458 of 1996, is amended to read:
"Section 61-6-505. (A) A person who purchases or
acquires by lease, inheritance, divorce decree, eviction, or
otherwise a retail business which sells alcoholic beverages from
a holder of a retail liquor license at the business, upon initiating the
application process for a permanent retail liquor license, may be
issued a temporary retail liquor 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 as defined by the department by regulation
and:
(1) the applicant currently holds a valid retail liquor license; or
(2) the applicant has had a criminal history background check
conducted by the State Law Enforcement Division within the past
thirty days.
(B) A temporary license issued pursuant to subsection (A) is valid
until a permanent license is approved or disapproved by the
department, but in no case is it valid for longer more
than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke
a temporary license if the applicant fails to proceed with
obtaining pursue the permanent license in a timely
manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for
each temporary license sought. The funds generated by this fee must
be deposited in the general fund of the State."
SECTION 3. Section 61-6-2005 of the 1976 Code, as added by
Act 458 of 1996, is amended to read:
"Section 61-6-2005. (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 from a holder of a license to sell
alcoholic liquors in sealed containers of two ounces or less 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 as defined by the department by
regulation and:
(1) the applicant currently holds a valid license to sell alcoholic
liquors in sealed containers of two ounces or less; or
(2) the applicant has had a criminal history background check
conducted by the State Law Enforcement Division within the past
thirty days.
(B) A temporary license issued pursuant to subsection (A) is valid
until a permanent license is approved or disapproved by the
department, but in no case is it valid for longer more
than one hundred twenty days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke
a temporary license if the applicant fails to proceed with
obtaining pursue the permanent license in a timely
manner, as set forth by the department by regulation.
(D) The department shall collect a fee of twenty-five dollars for
each temporary license sought. The funds generated by this fee must
be deposited in the general fund of the State."
SECTION 4. Section 61-4-210 of the 1976 Code, as added by Act
415 of 1996, is amended to read:
"Section 61-4-210. (A) A person who purchases or
acquires by lease, inheritance, divorce decree, eviction, or
otherwise a retail business which sells beer or wine from a
holder of a retail permit to sell beer or wine at the business, upon
initiating the application process for a biennial retail beer or beer and
wine permit, may be issued a temporary retail beer or beer and wine
permit by the department at the time of the purchase or
acquisition if the location for which the temporary permit is
sought is not considered by the department to be a public nuisance
as defined by regulation of the department and:
(1) the applicant currently holds a valid beer or beer and wine
permit; or
(2) the applicant has had a criminal history background check
conducted by the division within the past thirty days.
(B) A temporary beer or beer and wine permit issued pursuant to
subsection (A) is valid until a biennial retail beer or beer and wine
permit is approved or disapproved by the department, but in no case
is it valid for longer more than one hundred twenty
days from the date of issuance.
(C) Notwithstanding subsection (B), the department may revoke
a temporary retail beer or beer and wine permit if the applicant fails
to proceed with obtaining pursue the biennial retail
beer or beer and wine permit in a timely manner, as set forth by
regulation of the department.
(D) The department must charge shall collect a fee
of twenty-five dollars for each temporary beer or beer and wine
permit. The funds generated by this fee must be deposited in the
general fund of the State."
SECTION 5. Section 61-6-2890 of the 1976 Code, as added by
Act 415 of 1996, is amended to read:
"Section 61-6-2890. (A) A registered producer may
not store alcoholic liquors only in a warehouse of the
registered producer unless licensed by the department.
The department must require sufficient bond with respect to a
licensed warehouse to ensure proper handling of liquors stored in the
warehouse. Application for license to operate a warehouse must
be filed on forms prescribed by the department.
(B) When an application for a warehouse license is submitted, a
fee of four hundred dollars must be paid to the department. Where
application is made for a warehouse license on or after March
first 1, the fee is one hundred fifty dollars. A
warehouse license is valid from the date of issue until the second
August thirty-first 31 after the issuance of the
license."
SECTION 6. Sections 61-6-300, 61-6-310, 61-6-320, 61-6-330,
61-6-340, and 61-6-350, of the 1976 Code are repealed.
SECTION 7. Section 1 of this act takes effect upon approval by
the Governor and applies for applications pending on that date and
for applications filed on or after that date. The remaining provisions
of this act take effect July 1, 1998.
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