S*1074(Rat #0531, Act #0429 of 1998)  General Bill, By Saleeby

Similar(H 4696)
 A BILL TO AMEND ARTICLE 7, CHAPTER 4, TITLE 61, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, RELATING TO ALCOHOLIC BEVERAGE CONTROL LAWS AFFECTING WINE
 ONLY, BY ADDING SECTION 61-4-735 SO AS TO REGULATE CERTAIN PRACTICES BETWEEN
 WINE MANUFACTURERS, IMPORTERS, WHOLESALERS, AND RETAILERS, AND TO PROVIDE FOR
 OTHER PRACTICES AND PROCEDURES APPLICABLE TO THE SALE OF WINE.-AMENDED TITLE

   02/26/98  Senate Introduced and read first time SJ-6
   02/26/98  Senate Referred to Committee on Judiciary SJ-6
   04/22/98  Senate Committee report: Favorable with amendment
                     Judiciary SJ-7
   04/29/98  Senate Amended SJ-48
   04/29/98  Senate Read second time SJ-48
   04/29/98  Senate Unanimous consent for third reading on next
                     legislative day SJ-48
   04/30/98  Senate Read third time and sent to House SJ-28
   04/30/98  House  Introduced and read first time HJ-2
   04/30/98  House  Referred to Committee on Judiciary HJ-2
   05/27/98  House  Committee report: Favorable Judiciary HJ-7
   06/02/98  House  Debate adjourned HJ-22
   06/02/98  House  Amended HJ-43
   06/02/98  House  Requests for debate-Rep(s). Beck, R. Smith &
                     Hawkins HJ-43
   06/02/98  House  Read second time HJ-44
   06/03/98  House  Debate adjourned HJ-13
   06/03/98  House  Read third time and returned to Senate with
                     amendments HJ-78
   06/16/98  Senate Concurred in House amendment and enrolled
   06/17/98         Ratified R 531
   06/29/98         Signed By Governor
   06/29/98         Effective date 06/29/98
   07/07/98         Copies available
   07/07/98         Act No. 429

AN ACT TO AMEND ARTICLE 7, CHAPTER 4, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALCOHOLIC BEVERAGE CONTROL LAWS AFFECTING WINE ONLY, BY ADDING SECTION 61-4-735 SO AS TO REGULATE CERTAIN PRACTICES BETWEEN WINE MANUFACTURERS, IMPORTERS, WHOLESALERS, AND RETAILERS, AND TO PROVIDE FOR OTHER PRACTICES AND PROCEDURES APPLICABLE TO THE SALE OF WINE.

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

Regulation of wine practices

SECTION 1. Article 7, Chapter 4 of Title 61 of the 1976 Code is amended by adding:

Section 61-4-735. (A) Except as provided in Sections 61-4-720 and 61-4-730, a manufacturer of wine, vintner, winery, an entity, or a person who sells these products, or a person or entity who imports these products produced outside the United States must not sell, barter, exchange, transfer, or deliver for resale wine to a person not having a wholesale permit issued under Section 61-4-500, and a holder of a wholesale permit may not sell, barter, exchange, transfer, or deliver for resale wine to a person not having a retail or wholesale permit, unless that person is the American producer or the primary American source of supply of that wine as defined in Section 61-4-340.

(B) Except as provided in subsection (C), a manufacturer of wine, vintner, winery, importer, or wholesaler of wine, or a person acting on his behalf must not furnish, give, rent, lend, or sell, directly or indirectly, to the holder of a retail permit any equipment, fixtures, free wine, or service. The holder of a retail permit or a person acting on his behalf may not accept, directly or indirectly, any equipment, fixtures, free wine, or service referred to in this subsection from a manufacturer of wine, winery, importer, or wholesaler of wine, except as provided in subsection (C).

(C) A wholesaler may furnish at no charge to the holder of a retail permit draft wine equipment replacement parts of nominal value, including washers, gaskets, hoses, hose connectors, clamps, and tap markers, product displays as provided under 27 Code of Federal Regulations, Section 6.83 and point of sale advertising specialties. A wholesaler also may furnish the following services to a retailer: cleaning wine lines, rotating stock, affixing price tags to wine products, building wine displays, setting boxes, conduct wine tasting in accordance with department regulations, developing shelf schematics, stocking shelves, providing wine party wagon for temporary use, and assist in wine resets a maximum of three times a year for any store having a retail permit during the hours of 8:00 a.m. to 8:00 p.m. Resets are defined as being a change in the location of the wine department within a store or a rearrangement of the products on shelves within the store's wine department, which involves more than one wholesalers' products. All wholesalers shall be notified in writing of any resets being requested by a retail store at least fourteen days prior to the reset.

(D) A producer, winery, vintner, and importer of wine are declared to be in business on one tier, a wholesaler on another tier, and a retailer on another tier. For the purpose of this section, a manufacturer or producer of wine is declared to be a tier one business, a wholesaler or an importer owned solely by a wholesaler is declared to be a tier two business, and a retailer is declared to be a tier three business. Except as provided in Sections 61-4-720 and 61-4-730, a person or entity in the wine business on one tier or a person acting directly or indirectly on his behalf may not have ownership or financial interest in a wine business operation on another tier. This limitation does not apply to the interest held on July 1, 1993, by the holder of a wholesale permit in a business operated by the holder of a retail permit at premises other than where the wholesale business is operated. For purposes of this subsection, ownership or financial interest does not include the ownership of less than one percent of the stock in a corporation with a class of voting shares registered with the Securities and Exchange Commission or other federal agency under Section 12 of the Securities and Exchange Act of 1934, as amended, or a consulting agreement under which the consultant has no control over business decisions and whose compensation is unrelated to the profits of the business. Notwithstanding this prohibition or the prohibition contained in Section 61-4-940(D), a manufacturer or importer of beer or wine may own in whole or in part a business that holds an on-premises retail beer and wine permit provided that:

(1) All beverages to be handled or sold by such a retail dealer must be purchased from licensed wholesalers and purchased on the same terms and conditions as do other retail dealers.

(2) Sales of any product produced or distributed by the manufacturer or importer shall not exceed ten percent of the annual gross sales of beer or wine by the retail permit holder.

(E) A manufacturer, producer, importer, or wholesaler of wine may discount product price based on quantity purchases if all discounts are on price only, appear on the sales records, and are available to all retail customers.

(F) Nothing in this section shall affect or prohibit the ownership or the operation of a licensed winery in this State that produces, provides taste samples, sells, delivers, or ships domestic wine as authorized and in accordance with the provisions of Sections 61-4-720 and 61-4-730.

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 29th day of June, 1998.