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A40, R92, S228
Sponsors: Senator McConnell
Document Path: l:\s-jud\bills\mcconnell\jud0021.gfm.doc
Introduced in the Senate on January 21, 2003
Introduced in the House on February 20, 2003
Last Amended on May 14, 2003
Passed by the General Assembly on May 21, 2003
Governor's Action: June 2, 2003, Signed
Summary: Special foods manufacturer's license, biennial license tax provided
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/21/2003 Senate Introduced and read first time SJ-231 1/21/2003 Senate Referred to Committee on Judiciary SJ-231 2/12/2003 Senate Committee report: Favorable Judiciary SJ-13 2/18/2003 Senate Read second time SJ-16 2/19/2003 Senate Read third time and sent to House SJ-22 2/20/2003 House Introduced and read first time HJ-9 2/20/2003 House Referred to Committee on Judiciary HJ-10 4/30/2003 House Committee report: Favorable Judiciary HJ-4 5/6/2003 House Read second time HJ-20 5/6/2003 House Reconsidered HJ-26 5/6/2003 House Debate adjourned until Wednesday, May 7, 2003 HJ-27 5/7/2003 House Debate adjourned until Thursday, May 8, 2003 HJ-15 5/8/2003 House Amended HJ-71 5/8/2003 House Read second time HJ-75 5/8/2003 House Unanimous consent for third reading on next legislative day HJ-108 5/9/2003 House Read third time and returned to Senate with amendments HJ-1 5/13/2003 Senate House amendment amended SJ-30 5/13/2003 Scrivener's error corrected 5/14/2003 Senate House amendment amended SJ-9 5/14/2003 Senate Returned to House with amendments SJ-9 5/15/2003 Scrivener's error corrected 5/19/2003 Scrivener's error corrected 5/21/2003 House Concurred in Senate amendment and enrolled HJ-46 5/28/2003 Ratified R 92 6/2/2003 Signed By Governor 6/5/2003 Copies available 6/5/2003 Effective date See Act for Effective Date 6/19/2003 Act No. 40
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VERSIONS OF THIS BILL
(A40, R92, S228)
AN ACT TO AMEND CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ALCOHOL BEVERAGE CONTROL ACT, BY ADDING SECTION 61-6-710, ESTABLISHING A SPECIAL FOOD MANUFACTURER'S LICENSE TO BE ISSUED BY THE DEPARTMENT OF REVENUE FOR A PERSON WHO MANUFACTURES FOOD ITEMS SUCH AS SAUCES AND MARINADES IN WHICH THERE IS AN ALCOHOLIC BEVERAGE INGREDIENT AND WHO DOES SO UNDER AN AGREEMENT WITH THE ALCOHOLIC BEVERAGE MANUFACTURER, AND TO ALLOW THE PURCHASE OF THE ALCOHOLIC BEVERAGE IN CONTAINERS HOLDING QUANTITIES GREATER THAN THE QUANTITIES SOLD TO THE CONSUMER, AND TO PROVIDE THAT THE DEPARTMENT MUST ESTABLISH THE FORM OF APPLICATION AND CONDITIONS FOR ISSUANCE OF THE LICENSE; TO AMEND SECTION 12-33-210, RELATING TO THE TAXES ON LICENSES ISSUED UNDER TITLE 61, SO AS TO INCLUDE A TAX FOR THE SPECIAL FOOD MANUFACTURER'S LICENSE; TO AMEND SECTION 61-2-175, RELATING TO SHIPPING ALCOHOLIC BEVERAGES INTO THE STATE, SO AS TO PROVIDE THAT ALCOHOLIC BEVERAGES MAY BE SHIPPED DIRECTLY TO A RESIDENT WHO HOLDS A SPECIAL FOOD MANUFACTURER'S LICENSE; TO AMEND SECTION 61-6-2900, RELATING TO THE SHIPMENT OR TRANSFER OF IMPORTED ALCOHOLIC BEVERAGES, SO AS TO PROVIDE THE ALCOHOLIC BEVERAGES MAY BE SHIPPED TO A PERSON HOLDING A SPECIAL FOOD MANUFACTURER'S LICENSE; TO AMEND SECTION 61-6-4050, RELATING TO THE PURCHASE OF ALCOHOLIC LIQUORS FROM LICENSED RETAIL DEALERS SO AS TO ADD ALCOHOLIC LIQUORS PURCHASED PURSUANT TO A SPECIAL FOOD MANUFACTURER'S LICENSE; BY AMENDING SECTION 61-6-1500, RELATING TO RESTRICTIONS ON RETAIL DEALERS OF ALCOHOLIC LIQUORS, SO AS TO AUTHORIZE A DEALER TO SELL ALCOHOLIC LIQUORS IN CONTAINERS OF ONE HUNDRED MILLITERS; BY ADDING SECTION 61-4-745 SO AS TO AUTHORIZE A PERSON WHO IS AT LEAST TWENTY-ONE YEARS OF AGE AND IS A LEGAL RESIDENT OF THE STATE TO HAVE SHIPPED OR TRANSPORTED FROM A MANUFACTURER OF WINE UP TO TWENTY-FOUR BOTTLES OF WINE EACH MONTH FOR HIS OWN CONSUMPTION WITHOUT ACQUIRING PERMITS OR LICENSES; BY ADDING SECTION 61-4-747 SO AS TO AUTHORIZE A MANUFACTURER OF WINE WITHIN OR OUTSIDE THIS STATE THAT HOLDS A WINE PRODUCER AND BLENDERS BASIC PERMIT ISSUED IN ACCORDANCE WITHIN THE FEDERAL ALCOHOL ADMINISTRATION ACT TO SHIP TO A RESIDENT OF THIS STATE WHO IS AT LEAST TWENTY-ONE YEARS OF AGE UP TO TWENTY-FOUR BOTTLES OF WINE FOR HIS PERSONAL USE AND TO PROVIDE THE CONDITION UNDER WHICH THIS SHIPMENT MUST BE MADE; BY AMENDING SECTION 12-21-1610, RELATING TO THE PROHIBITION AGAINST SHIPPING BEER AND WINE INTO THIS STATE EXCEPT TO A LICENSED BEER AND WINE WHOLESALE DISTRIBUTOR, SO AS TO DELETE THE PROVISIONS WHICH PERMITTED AN INDIVIDUAL TO IMPORT BEER AND WINE INTO THIS STATE FOR PERSONAL USE AND CONSUMPTION; AND TO AMEND SECTION 61-2-80, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF REVENUE TO REGULATE THE OPERATION OF RETAIL LOCATIONS AUTHORIZED TO SELL BEER, WINE, OR ALCOHOLIC LIQUORS, SO AS TO PROVIDE THAT THE DEPARTMENT OCCUPIES THE ENTIRE FIELD OF BEER, WINE, AND LIQUOR REGULATION EXCEPT AS IT RELATES TO HOURS OF OPERATION MORE RESTRICTIVE THAN THOSE SET FORTH IN TITLE 61.
Be it enacted by the General Assembly of the State of South Carolina:
Special food manufacturer's license, license tax
SECTION 1. A. Chapter 6, Title 61 of the 1976 Code is amended by adding:
"Section 61-6-710. Notwithstanding any other provision of this title, a person who manufactures in this State food items such as sauces and marinades in which there is an alcoholic beverage ingredient and who does so under an agreement with the alcoholic beverage manufacturer must apply for a special food manufacturer's license from the department, in accordance with Section 61-2-100, to purchase the alcoholic beverage directly from the manufacturer in containers holding greater quantities of liquor than are sold to a retail consumer. The department must establish the form of the application for the special food manufacturer's license."
B. Section 12-33-210 of the 1976 Code is amended to read:
"Section 12-33-210. The biennial license taxes on licenses granted under Title 61, in addition to all other license taxes, are as follows:
(1) manufacturer's license: fifty thousand dollars;
(2) wholesaler's license: twenty thousand dollars;
(3) retail dealer's license: one thousand two hundred dollars; and (4) special food manufacturer's license: one thousand two hundred dollars.
Each applicant must pay a filing fee of one hundred dollars which must accompany the initial application for each location and is not refundable.
A person who applies for a license after the first day of a license period must pay license fees in accordance with the schedule provided in Section 61-6-1810(C)."
C. Section 61-2-175(A) of the 1976 Code, as added by Act 98 of 1997, is amended to read:
"(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, wholesaler's, or special food manufacturer's license or producer representative's certificate of registration issued by the State of South Carolina is in violation of this title."
D. Section 61-6-2900 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2900. 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 warehouse of the food manufacturer licensed pursuant to Section 61-6-710, or 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 the warehouse of the food manufacturer licensed pursuant to Section 61-1-710 or 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 food manufacturer or producer representative, as appropriate, must apply to the department, on forms prescribed by the department, for permission to ship or transfer the alcoholic liquors, and the food manufacturer or producer representative must have received a certificate of approval of the shipment or transfer."
E. Section 61-6-4050 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-4050. It is unlawful for a person to purchase or otherwise procure alcoholic liquors other than those purchased from licensed retail dealers in the State or those purchased pursuant to a special food manufacturer's license in Section 61-6-710. A person who violates this section is guilty of a misdemeanor and, upon conviction, must be punished as follows:
(a) for a first offense, by a fine of one hundred dollars or imprisonment for thirty days;
(b) for a second offense, by a fine of two hundred dollars or imprisonment for sixty days; and
(c) for a third or subsequent offense, by a fine of three hundred dollars or imprisonment for ninety days."
Containers of alcoholic liquors
SECTION 2. Section 61-6-1500 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-1500. (A) No retail dealer may:
(1) sell, offer for sale, barter, exchange, give, transfer, or deliver or permit to be sold, bartered, exchanged, given, transferred, or delivered alcoholic liquors in less quantities than two hundred milliliters;
(2) own or keep in his possession alcoholic liquors in separate containers containing less than two hundred milliliters;
(3) notwithstanding items (1) and (2), a retail dealer may sell, offer for sale, barter, exchange, give, transfer, deliver, permit to be sold, own, or keep in his possession alcoholic liquors in separate containers containing one hundred milliliters provided that such containers are packaged together into a single unit of not less than four one hundred milliliter containers;
(4) sell, barter, exchange, give, transfer, or deliver, offer for sale, barter, or exchange or permit the sale, barter, exchange, gift, transfer, or delivery of alcoholic liquors:
(a) between the hours of 7:00 p.m. and 9:00 a.m.;
(b) for consumption on the premises;
(c) to a person under twenty-one years of age;
(d) to an intoxicated person; or
(e) to a mentally incompetent person;
(5) permit the drinking of alcoholic liquors in his store or place of business;
(6) sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if:
(a) the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors; and
(b) the electronic transfer is initiated by the retailer no later than one business day after delivery; or
(7) redeem proof-of-purchase certificates for any promotional item.
However, during restricted hours retail dealers are permitted to receive, stock, and inventory merchandise, provide for maintenance and repairs, and other necessary, related functions that do not involve the sale of alcoholic liquors.
(B)(1) The provisions of subsection (A) relating to quantities of less than two hundred milliliters do not apply to:
(a) minibottles when authorized by law to be sold to persons licensed to sell minibottles for on-premises consumption; or
(b) minibottles sold for consumption on commercial aircraft engaged in interstate commerce.
(2) It is unlawful for a person licensed to sell alcoholic liquors under the provisions of this section to refill a minibottle. A person who violates this provision must, upon conviction, have his license revoked permanently.
(3) A retail dealer must keep a record of all sales of alcoholic liquors sold in minibottles. The record must include the name of the purchaser and the date and quantity of the sale.
(4) It is unlawful to sell minibottles except during lawful hours of operation.
(5) A retail dealer who sells alcoholic liquors in minibottles to a person not licensed under Article 5 of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars and his retail dealer's license may be suspended or revoked in the discretion of the department. As used in this subsection, 'a person licensed under Article 5 of this chapter' includes a person's designated agent as a purchaser."
Ordering and shipping wine into this State for personal consumption
SECTION 3. Chapter 4, Title 61 of the 1976 Code is amended by adding:
"Section 61-4-745. (A) Subject to the provisions of Section 61-4-747, a person who is at least twenty-one years of age and who is a legal resident of this State, may cause to be shipped or transported from a manufacturer of wine up to twenty-four bottles of wine each month for his own consumption or use, and not for resale, into and out of this State without the necessity of acquiring any permits or licenses or other forms of public or private authorization except for the payment of appropriate taxes.
(B) All containers of wine shipped directly to a resident in this State must be labeled conspicuously with the words 'CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY'.
Section 61-4-747. (A) Notwithstanding any other provision of law, rule, or regulation to the contrary, a manufacturer of wine located within this State or outside this State that holds a wine producer and blenders basic permit issued in accordance with the Federal Alcohol Administration Act and obtains an out-of-state shipper's license, as provided in this section, may ship up to twenty-four bottles of wine each month directly to a resident of this State who is at least twenty-one years of age for such resident's personal use and not for resale.
(B) Before sending a shipment to a resident of this State, an out-of-state shipper first shall:
(1) file an application with the Department of Revenue;
(2) pay a biennial license fee of four hundred dollars;
(3) provide to the department a true copy of its current wine producer and blenders basic permit issued in accordance with the Federal Alcohol Administration Act; and
(4) obtain from the department an out-of-state shipper's license.
(C) Each out-of-state shipper licensee shall:
(1) not ship more than twenty-four bottles of wine each month to a person;
(2) ensure that all containers of wine shipped directly to a resident in this State are labeled conspicuously with the words 'CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY';
(3) report to the department annually, by August thirty-first of each year, the total amount of wine shipped into the State the preceding year;
(4) annually, by August thirty-first of each year, pay to the department all sales taxes and excise taxes due on sales to residents of this State in the preceding calendar year, the amount of the taxes to be calculated as if the sale were in this State at the location where delivery is made;
(5) permit the department to perform an audit of the out-of-state shipper's records upon request; and
(6) be deemed to have consented to the jurisdiction of the department or another state agency and the courts of this State concerning enforcement of this section and any related laws.
(D) The out-of-state shipper on August thirty-first of each applicable year must renew its license with the department by paying a renewal fee of four hundred dollars and providing the department a true copy of its current alcoholic beverage license issued in another state.
(E) The department may promulgate regulations to effectuate the purposes of this section.
(F) The department shall enforce the requirements of this section by administrative proceedings to suspend or revoke an out-of-state shipper's license if the licensee fails to comply with the requirements of this section, and the department may accept payment of an offer in compromise instead of suspension.
(G)(1) A shipment of wine from out-of-state direct to consumers in this State from persons who do not possess a current out-of-state shipper's license is prohibited. A person who knowingly makes, participates in, transports, imports, or receives such a shipment from out-of-state is guilty of a misdemeanor and, upon conviction, must be fined one hundred dollars. A shipment of wine which violates any provision of this item is contraband.
(2) Without limitation on any punishment or remedy, criminal or civil, a person who knowingly makes, participates in, transports, imports, or receives a shipment as provided in item (1) of this subsection from out-of-state commits an unfair trade practice."
Prohibition on shipping beer and wine into this State
SECTION 4. Section 12-21-1610 of the 1976 Code is amended to read:
"Section 12-21-1610. A person, firm, corporation, club, or an association or any organization within this State shall not bring, ship, transport, or receive into this State in any manner whatsoever any beer or wine as defined in Section 12-21-1010 for sale except duly licensed beer and wine wholesale distributors. A person, firm, corporation, club, or an association in violation of this section is subject to a penalty of not less than twenty-five dollars nor more than one thousand dollars, to be assessed and collected by the Department of Revenue in the same manner and with like effect as other taxes are collected."
Regulation of sale of beer, wine, and alcoholic liquors
SECTION 5. The first paragraph of Section 61-2-80 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"The State, through the department, is the sole and exclusive authority empowered to regulate the operation of all locations authorized to sell beer, wine, or alcoholic liquors, is authorized to establish conditions or restrictions which the department considers necessary before issuing or renewing a license or permit, and occupies the entire field of beer, wine, and liquor regulation except as it relates to hours of operation more restrictive than those set forth in this title."
SECTION 6. This act takes effect upon approval by the Governor and Section 1 applies to special food manufacturing licenses applied for on or after July 1, 2002.
Ratified the 28th day of May, 2003.
Approved the 2nd day of June, 2003.
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