Current Status Bill Number:550 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970319 Primary Sponsor:McConnell All Sponsors:McConnell Drafted Document Number:res1307.gfm Residing Body:Senate Current Committee:Judiciary Committee 11 SJ Subject:Minibottle licenses, beer and wine permits; on-premise, off-premise consumption; Alcohol and Alcoholic Beverages
Body Date Action Description Com Leg Involved
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Senate 19970319 Introduced, read first time, 11 SJ
referred to Committee
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TO AMEND ARTICLE 5, CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BIENNIAL MINIBOTTLE LICENSES, BY ADDING SECTION 61-6-1615, SO AS TO DIVIDE LICENSES ISSUED TO FOOD SERVICE ESTABLISHMENTS AND PLACES OF LODGING INTO TWO CLASSES BASED UPON THE PERCENTAGE OF GROSS PROCEEDS RECEIVED FROM ALCOHOL SALES; TO AMEND SECTION 61-4-540, RELATING TO ISSUANCE OF PERMITS FOR SALE OF BEER AND WINE, SO AS TO REQUIRE A PERMIT TO STATE WHETHER THE PERMIT IS APPROVED FOR ON-PREMISES OR OFF-PREMISES CONSUMPTION; AND TO AMEND ARTICLE 5, CHAPTER 4, TITLE 61, BY ADDING SECTION 61-4-545, RELATING TO PERMITS FOR THE SALE OF BEER AND WINE, SO AS TO DIVIDE PERMITS ISSUED FOR ON-PREMISES CONSUMPTION INTO TWO CLASSES BASED UPON THE PERCENTAGE OF GROSS PROCEEDS RECEIVED FROM BEER AND WINE SALES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Subarticle 1, Article 5, Chapter 6, Title 61 of the 1976 Code is amended by adding:
"Section 61-6-1615. (A)There shall be two classes of licenses issued pursuant to Section 61-6-1610, Class A and Class B.
(B) A Class A license shall be issued to a business that is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging and whose gross proceeds from the sale of alcoholic liquors in minibottles are seventy-five percent or less of the total gross proceeds of the business.
(C)(1) A Class B license shall be issued to a business that is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging whose gross proceeds from the sale of alcoholic liquors in minibottles are greater than seventy-five percent of the total gross proceeds of the business.
(2) In addition to complying with all other applicable laws, including the requirements for licensure provided in Section 61-6-1820 and Section 61-6-120, an applicant for a Class B license must prove the suitability of the location. In determining the suitability of a location, the department shall consider such factors as the population density in the community, the character of the community, and the number of other businesses in the community.
(3) A Class B licensee seeking renewal shall be examined and reviewed by the department for the purpose of determining whether the licensee has used its license in the past in a manner that is both reasonable and appropriate to the community in which it is located. A license shall not be considered to have been used in a manner that is appropriate to the community if the location has a history of crime-related activities including, but not limited to, arrests for violent crimes, arrests for crimes of moral turpitude, arrests for disorderly conduct, or arrests regarding drug possession or sales on the premises. In such circumstances, the department may refuse to renew a license on the grounds that the licensure of the location is not appropriate for the community in which it is situated.
(4) A licensee shall notify the local governing authority where the premises is located of the licensee's intent to seek renewal of a license not more than ninety days prior to an application for renewal. The local governing authority may raise an objection to renewal of the license based upon the suitability of the location and the licensee's past years of operation at the location.
(5) If either an initial application is denied or a request for renewal is refused pursuant to this section, no Class B license may be issued for that location for a period of ten years following the denial or refusal.
(D) (1) An applicant or licensee seeking an initial or renewed Class A or Class B license must file with the department at the time of application a sworn statement certifying:
(a) whether more than seventy-five percent of their gross proceeds are from alcohol sales; and
(b) the actual dollar amounts and the percentage amounts of their wholesale food and beverage purchases that are alcohol and that are non-alcohol, respectively.
(2) If the municipality or county where the licensed premises are located requires a business license, the applicant or licensee shall also file the sworn statement required to be filed pursuant to item (1) with the municipality or county, as applicable, whenever the applicant or licensee seeks an initial or renewed business license.
(3)(a) The department may revoke the license of a licensee who, for the purpose of obtaining a Class A license when it should properly receive a Class B license, conceals any material facts, knowingly hides facts, or knowingly misreports the information required by this section.
(b) A license may be revoked pursuant to this subsection for up to ten years, at the discretion of the department.
(E) An applicant seeking an initial license shall be issued a Class A license without application of the gross proceeds test. However, at the end of the first year of licensure, a licensee who was initially issued a Class A license shall file with the department and with the county or municipality the sworn statement required to be filed pursuant to subsection (D). If the statement indicates that the licensee should be issued a Class B license, the department shall issue a Class B license, which shall be in effect for the remainder of the initial license period.
(F) For purposes of this section, the phrase `total gross proceeds of the business' means the total of :
(1) the gross proceeds of sales, as defined in Section 12-36-90, subject to the tax imposed pursuant to Section 12-36-910;
(2) the gross proceeds subject to the tax imposed pursuant to Section 12-36-920;
(3) the gross proceeds derived from the sale of alcoholic liquors in minibottles; and
(4) the gross proceeds derived from the sale of beer and wine."
SECTION 2. Section 61-4-540 of the 1976 Code is amended to read:
"Section 61-4-540. When a verified application is filed with the department and the department determines that (1) the requisite qualifications and conditions are met, (2) the applicant is a fit person to sell beer or wine, and (3) the location of the proposed place of business is a proper one, the department must issue a permit to the applicant to sell beer or wine on the premises described in the application upon the payment of the fee prescribed by law. The permit shall state whether the location is approved for on-premises or off-premises consumption. A misstatement or concealment of fact in an application is a sufficient ground for the revocation of the permit.
The department may, in those cases where it considers necessary, require an applicant to post a cash bond or surety bond with a bonding company approved by the Department of Insurance as an additional condition for a permit. The bond must be in an amount as determined by the department and is subject to forfeiture in whole or in part for violations of law relating to the sale of beer or wine."
SECTION 3. Article 5, Chapter 4, Title 61 of the 1976 Code is amended by adding:
"Section 61-4-545. (A) There shall be two classes of permits for on-premises consumption issued pursuant to Section 61-4-540, Class A and Class B.
(B) A Class A permit shall be issued to a business whose gross proceeds from the sale of beer and wine are seventy-five percent or less of the total gross proceeds of the business.
(C)(1) A Class B permit shall be issued to a business whose gross proceeds from the sale of beer and wine are greater than seventy-five percent of the total gross proceeds of the business.
(2) In addition to complying with all other applicable laws, including the permit requirements provided in Section 61-4-520, an applicant for a Class B permit must prove the suitability of the location. In determining the suitability of a location, the department shall consider such factors as the population density in the community, the character of the community, and the number of other businesses in the community.
(3) A Class B permit holder seeking renewal shall be examined and reviewed by the department for the purpose of determining whether the licensee has used its license in the past in a manner that is both reasonable and appropriate to the community in which it is located. A license shall not be considered to have been used in a manner that is appropriate to the community if the location has a history of crime-related activities including, but not limited to, arrests for violent crimes, arrests for crimes of moral turpitude, arrests for disorderly conduct, or arrests regarding drug possession or sales on the premises. In such circumstances, the department may refuse to renew a permit on the grounds that issuing a permit for the location is not appropriate for the community in which it is situated.
(4) A permit holder shall notify the local governing authority where the premises is located of the permit holder's intent to seek renewal of a permit not more than ninety days prior to an application for renewal. The local governing authority may raise an objection to renewal of the permit based upon the suitability of the location and the licensee's past years of operation at the location.
(5) If either an initial application is denied or a request for renewal is refused pursuant to this section, no Class B license may be issued for that location for a period of ten years following the denial or refusal.
(D)(1) An applicant or permit holder seeking an initial or renewed Class A or Class B permit must file with the department at the time of application a sworn statement certifying:
(a) whether more than seventy-five percent of their gross proceeds are from sales of beer and wine; and
(b) the actual dollar amounts and the percentage amounts of their wholesale food and beverage purchases that are beer and wine and that are not beer and wine, respectively.
(2) If the municipality or county where the premises for which the permit is issued are located requires a business license, the applicant or licensee shall also file the sworn statement required to be filed pursuant to item (1) with the municipality or county, as applicable, whenever the applicant or licensee seeks an initial or renewed business license.
(3)(a) The department may revoke the permit of a permit holder licensee who, for the purpose of obtaining a Class A permit when it should properly receive a Class B permit, conceals any material facts, knowingly hides facts, or knowingly misreports the information required by this section.
(b) A permit may be revoked pursuant to this subsection for up to ten years, at the discretion of the department.
(E) An applicant seeking an initial license shall be issued a Class A permit without application of the gross proceeds test. However, at the end of the first year of the permit period, a licensee who was initially issued a Class A permit shall file with the department and with the county or municipality the sworn statement required to be filed pursuant to subsection (D). If the statement indicates that the permit holder should be issued a Class B permit, the department shall issue a Class B permit, which shall be in effect for the remainder of the initial permit period.
(F) For purposes of this section, the phrase `total gross proceeds of the business' means the total of :
(1) the gross proceeds of sales, as defined in Section 12-36-90, subject to the tax imposed pursuant to Section 12-36-910;
(2) the gross proceeds subject to the tax imposed pursuant to Section 12-36-920; and
(3) the gross proceeds derived from the sale of beer and wine."
SECTION 4. This act takes effect upon approval by the Governor.