South Carolina General Assembly
112th Session, 1997-1998

Bill 4547


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       4547
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19980128
Primary Sponsor:                   Felder 
All Sponsors:                      Felder 
Drafted Document Number:           jic\5151htc.98
Residing Body:                     Senate
Date of Last Amendment:            19980416
Subject:                           Alcohol license or permit,
                                   issuance of to owner of business,
                                   conditions; Alcoholic Beverages,
                                   Taxation, Revenue



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19980527  Committee report: Favorable with         11 SJ
                  amendment
Senate  19980421  Introduced, read first time,             11 SJ
                  referred to Committee
House   19980417  Read third time, sent to Senate
House   19980416  Read second time, unanimous consent
                  for third reading on the next
                  Legislative day
House   19980416  Amended
House   19980415  Committee report: Favorable with         25 HJ
                  amendment
House   19980128  Introduced, read first time,             25 HJ
                  referred to Committee


View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

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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