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COMMITTEE REPORT
April 21, 1999
S. 206
Introduced by Senators J. Verne Smith, Elliott, Hayes, Leventis, McGill, Waldrep, Washington, Fair, Reese, Alexander, Leatherman, Martin, Grooms, Branton, Giese and Russell
S. Printed 4/21/99--S.
Read the first time January 12, 1999.
To whom was referred a Bill (S. 206), to amend Section 61-2-60, Code of Laws of South Carolina, 1976, relating to the authority of the Department of Revenue to promulgate regulations, etc., respectfully
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 3, beginning on line 9, by striking SECTION 2 in its entirety.
Amend the bill further, as and if amended, page 6, beginning on line 8, in Section 20-7-8920, as contained in SECTION 9, by striking lines 8 through 10 and inserting therein the following:
/ Act 383 of 1996 and as amended by Act A1 of 1999 is further amended by adding an appropriately numbered subsection to read:/
Amend the bill further, as and if amended, page 6, beginning on line 16, in Section 20-7-8925, as contained in SECTION 10, by striking lines 16 through 18 and inserting therein the following:
/ Act 383 of 1996 and as amended by Act A1 of 1999 is further amended by adding an appropriately numbered subsection to read:/
Renumber sections to conform.
Amend title to conform.
GLENN F. McCONNELL, for Committee.
EXPLANATION OF IMPACT:
The Department of Revenue states there would be no impact on the General Fund of the State nor on federal and/or other funds.
SPECIAL NOTES:
Pursuant to Section 2-7-71 of the 1976 South Carolina Code of Laws the Board of Economic Advisors is the appropriate agency to address any revenue impact of this legislation.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 61-2-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF REVENUE TO PROMULGATE REGULATIONS, SO AS TO REQUIRE THE PROMULGATION OF REGULATIONS CONCERNING THE SALE OF ALCOHOLIC BEVERAGES TO MINORS OVER THE INTERNET; TO AMEND SECTION 61-2-175, RELATING TO A FOREIGN ENTITY INTENTIONALLY SHIPPING BEER, WINE, OR ALCOHOLIC LIQUORS DIRECTLY TO A RESIDENT NOT HOLDING A VALID STATE LICENSE, SO AS TO ELIMINATE THE ISSUANCE OF A NOTICE TO CEASE AND DESIST AND TO PROVIDE A FINE FOR CONVICTION ON A FIRST OFFENSE; TO AMEND SECTION 61-4-50, RELATING TO THE UNLAWFUL SALE OF BEER AND WINE TO MINORS, SO AS TO INCLUDE IN THE DEFINITION OF SALE BY MEANS OF THE INTERNET; TO AMEND ARTICLE 5, CHAPTER 4 OF TITLE 61, RELATING TO THE PRODUCERS AND WHOLESALERS OF BEER AND WINE, SO AS TO ADD SECTION 61-4-360 WHICH PROVIDES A SHIPPING CONTAINER MUST BE CLEARLY LABELED TO INDICATE IT MUST NOT BE DELIVERED TO A MINOR; TO AMEND SECTION 61-4-730, RELATING TO THE SALE OF DOMESTIC WINE, SO AS TO PROVIDE THE SHIPPING CONTAINER MUST BE CLEARLY LABELED TO INDICATE IT MUST NOT BE DELIVERED TO A MINOR; TO AMEND SECTION 61-6-2900, RELATING TO THE SHIPPING OF IMPORTED LIQUORS, SO AS TO PROVIDE THE SHIPPING CONTAINER MUST BE CLEARLY LABELED TO INDICATE IT MUST NOT BE DELIVERED TO A MINOR; TO AMEND ARTICLE 7, CHAPTER 6 OF TITLE 61, RELATING TO THE IMPORTATION OF ALCOHOLIC LIQUORS, SO AS TO ADD SECTION 61-6-2990 WHICH PROHIBITS THE USE OF THE INTERNET TO ADVERTISE OR SOLICIT ORDERS FOR ALCOHOLIC LIQUORS NOT AUTHORIZED BY LAW; TO AMEND SECTION 61-6-4080, RELATING TO THE UNLAWFUL SALE OF ALCOHOLIC LIQUORS TO MINORS, SO AS TO INCLUDE IN THE DEFINITION OF SALE BY MEANS OF THE INTERNET; TO AMEND SECTION 20-7-8920, AS AMENDED, RELATING TO THE UNLAWFUL PURCHASE OF BEER AND WINE BY MINORS, SO AS TO INCLUDE IN THE DEFINITION OF PURCHASE BY MEANS OF THE INTERNET; AND TO AMEND SECTION 20-7-8925, AS AMENDED, RELATING TO THE UNLAWFUL PURCHASE OF ALCOHOLIC LIQUORS BY MINORS, SO AS TO INCLUDE IN THE DEFINITION OF PURCHASE BY MEANS OF THE INTERNET.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 61-2-60 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-2-60. The department and the division are authorized to promulgate regulations necessary to carry out the duties imposed upon them by law for the proper administration and enforcement of, and consistent with this title including, but not limited to:
(1) regulations for the application and issuance of alcoholic liquor licenses, permits, and certificates;
(2) regulations to prevent the unlawful manufacture, bottling, sale, distribution, transportation, and importation of alcoholic liquors;
(3) regulations necessary to effect an equitable distribution of alcoholic liquors in this State;
(4) regulations for the analysis of alcoholic liquors sold in this State and for a procedure for obtaining the samples for this purpose;
(5) regulations governing the administration and enforcement of provisions relating to producers and wholesalers of beer and wine;
(6) regulations for application for and issuance of beer licenses, permits, or brewers' certificates of approval and the sale, distribution, promotion, and shipment of beer into and within the State;
(7) regulations for the operation of breweries and commercial wineries; and
(8) regulations governing the enforcement of provisions relating to brewpubs.; and
(9) regulations necessary to prevent the unlawful sale and shipment of alcoholic liquors, beer, and wine by means of the Internet to persons under the age of twenty-one."
SECTION 2. Section 61-2-175 of the 1976 Code, as added by Act 98 of 1997, is amended to read:
"Section 61-2-175. (A) Any person or corporate entity (including partnerships) located in another state or country who knowingly and intentionally ships, causes to be shipped, or accepts for shipment any beer, wine, or alcoholic liquors directly to any resident of this State who does not hold a valid producer's, manufacturer's, or wholesaler's license or producer representative's certificate of registration issued by the State of South Carolina is in violation of this title.
(B) Any person, corporation, or partnership found by the department to be in violation of subsection (A) of this section shall be issued a notice to cease and desist. is guilty of a misdemeanor and, upon conviction, must be punished by a fine not to exceed five thousand dollars. Any person, corporation, or partnership who, after receiving a cease and desist order, is found by the department to be in violation of subsection (A) of this section for a second or subsequent occurrence within a two-year period of the first violation is guilty of a misdemeanor and, upon conviction, must be punished by a fine not to exceed $10,000. This subsection shall not apply to any person, corporation, or partnership who has registered brands for sale with the department pursuant to this title and who has current licenses and who has posted adequate surety bonds as required by this title; however, violations of subsection (A) constitute grounds for the department to take appropriate administrative action against the person, including suspension or cancellation of license and forfeiture of bonds."
SECTION 3. Section 61-4-50 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-4-50. (A) It is unlawful for a person to sell beer, ale, porter, wine, or other similar malt or fermented beverage to a person under twenty-one years of age. A person who makes a sale in violation of this section must, upon conviction, be fined not less than one hundred dollars nor more than two hundred dollars or imprisoned not less than thirty days nor more than sixty days, or both, in the discretion of the court.
(B) Failure of a person to require identification to verify a person's age is prima facie evidence of the violation of this section.
(C) For purposes of this section, the terms 'sell' and 'sale' include selling or making a sale by means of the Internet."
SECTION 4. Article 5, Chapter 4 of Title 61 is amended by adding:
"Section 61-4-360. The shipping container for any beer, ale, porter, malt beverage, or wine shipped or moved into this State under the provisions of this chapter must be clearly labeled to indicate that the shipping container or package must not be delivered to a person under the age of twenty-one."
SECTION 5. Section 61-4-730 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-4-730. Permitted wineries which produce and sell only domestic wine as defined in Section 12-21-1010 may sell the wine at retail, wholesale, or both, and deliver or ship the wine to the purchaser in the State. The shipping container for wine sent under this section must be clearly labeled to indicate that the shipping container or package must not be delivered to a person under the age of twenty-one. Domestic wine must be delivered between 7:00 a.m. and 7:00 p.m."
SECTION 6. Section 61-6-2900 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2900. (A) Alcoholic liquors must be shipped or moved from a point outside this State to a point inside the State only by railroad companies, steamship companies, express companies, or truck companies authorized to do business in the State as common carriers by the Department of Public Safety, by wholesalers licensed by the department or by registered producers in their own trucks. Alcoholic liquors must be shipped or moved only to the registered producer in care of the producer representative who is registered to handle the property of the registered producer originating the shipment. The shipment of alcoholic liquors must be either stored in a licensed warehouse of the registered producer or, after delivery to the producer representative is complete, may then be shipped to a licensed wholesaler by common carriers described in this section, by wholesalers licensed by the department, or by registered producers in their own trucks. Shipments of alcoholic liquors from a licensed producer's warehouse to a licensed South Carolina wholesaler may be made in a vehicle owned or operated by the wholesaler. If alcoholic liquors are stored in the warehouse of a registered producer, or after delivery to the producer representative is complete, they may be shipped to a licensed wholesaler or to a point outside this State. Before any shipment or transfer, the producer representative must apply to the department, on forms prescribed by the department, for permission to ship or transfer the alcoholic liquors, and the producer representative must have received a certificate of approval of the shipment or transfer.
(B) The shipping container for alcoholic liquor sent under this section must be clearly labeled to indicate that the package must not be delivered to a person under the age of twenty-one."
SECTION 7. Article 7, Chapter 6 of Title 61 is amended by adding:
"Section 61-6-2990. No person may use the Internet to advertise, to solicit by advertisement or otherwise, or to accept orders for shipments of alcoholic liquors not authorized by this article."
SECTION 8. Section 61-6-4080 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-4080. (A) A person engaged in the sale of alcoholic liquors who knowingly sells the liquors to a person under the age of twenty-one is guilty of a misdemeanor and must, upon conviction, be fined not less than one hundred dollars nor more than two hundred dollars or imprisoned not less than thirty days nor more than sixty days, or both, in the discretion of the court.
(B) Failure of a person to require identification to verify a person's age is prima facie evidence of the violation of this section.
(C) For purposes of this section, the term 'sale' includes the sale or selling by means of the Internet."
SECTION 9. Section 20-7-8920 of the 1976 Code, as added by Act 383 of 1996 and as amended by an unnumbered act of 1998 bearing ratification number 533, is further amended by adding an appropriately numbered subsection to read:
"( ) For purposes of this section, the term 'purchase' includes purchase by means of the Internet."
SECTION 10. Section 20-7-8925 of the 1976 Code, as added by Act 383 of 1996 and as amended by an unnumbered act of 1998 bearing ratification number 533 is further amended by adding an appropriately numbered subsection to read:
"( ) For purposes of this section, the term 'purchase' includes purchase by means of the Internet."
SECTION 11. If a provision of this act or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the sections of this act are severable.
SECTION 12. This act takes effect July 1, 1999.
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