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Indicates Matter Stricken
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H. 3489
STATUS INFORMATION
General Bill
Sponsors: Reps. Cotty, Gilham, Clemmons, Witherspoon, Edge, Altman, Barfield, Bingham, R. Brown, Chellis, Cooper, Duncan, Govan, Hamilton, Harrison, Herbkersman, M. Hines, Hinson, Keegan, Leach, Limehouse, Littlejohn, Pinson, E.H. Pitts, Rice, Sandifer, Scarborough, F.N. Smith, Stille, Taylor, Toole, Viers and White
Document Path: l:\council\bills\gjk\20144sd03.doc
Companion/Similar bill(s): 89
Introduced in the House on January 30, 2003
Introduced in the Senate on June 5, 2003
Last Amended on June 4, 2003
Currently residing in the Senate
Summary: Alcoholic beverages
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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1/30/2003 House Introduced and read first time HJ-20
1/30/2003 House Referred to Committee on Ways and Means HJ-22
5/15/2003 House Committee report: Favorable with amendment Ways and
Means HJ-8
5/19/2003 Scrivener's error corrected
5/21/2003 House Requests for debate-Rep(s). Kirsh, Thompson, Sandifer,
Bailey, Bales, JE Smith, Whitmire, Snow, McLeod,
Skelton, Hosey, Leach, Viers, Anthony, Davenport,
Hayes, Witherspoon, Neilson, Harrell, Rhoad and Cotty
HJ-36
5/27/2003 House Debate adjourned until Tuesday, June 3, 2003 HJ-369
6/3/2003 House Debate adjourned until Wednesday, June 4, 2003 HJ-109
6/4/2003 House Debate adjourned HJ-89
6/4/2003 House Amended HJ-135
6/4/2003 House Read second time HJ-148
6/4/2003 House Roll call Yeas-94 Nays-10 HJ-148
6/5/2003 House Read third time and sent to Senate HJ-13
6/5/2003 Senate Introduced and read first time SJ-57
6/5/2003 Senate Referred to Committee on Judiciary SJ-57
3/23/2004 Senate Recalled from Committee on Judiciary SJ-4
3/24/2004 Scrivener's error corrected
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
1/30/2003
5/15/2003
5/19/2003
6/4/2003
3/23/2004
3/24/2004
Indicates Matter Stricken
Indicates New Matter
RECALLED
March 23, 2004
H. 3489
Introduced by Reps. Cotty, Gilham, Clemmons, Witherspoon, Edge, Altman, Barfield, Bingham, R. Brown, Chellis, Cooper, Duncan, Govan, Hamilton, Harrison, Herbkersman, M. Hines, Hinson, Keegan, Leach, Limehouse, Littlejohn, Pinson, E.H. Pitts, Rice, Sandifer, Scarborough, F.N. Smith, Stille, Taylor, Toole, Viers and White
S. Printed 3/23/04--S. [SEC 3/24/04 3:20 PM]
Read the first time June 5, 2003.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-36-925 SO AS TO PROVIDE FOR A SALES TAX ON THE GROSS PROCEEDS OF THE SALE OF ALCOHOLIC BEVERAGES BY THE DRINK OR BY OTHER SPECIFIED METHODS; TO AMEND SECTION 6-27-40, AS AMENDED, RELATING TO DISTRIBUTIONS FROM THE LOCAL GOVERNMENT FUND, SO AS TO FURTHER PROVIDE FOR THE AMOUNT OF THE DISTRIBUTION TO COUNTIES THAT MUST BE USED FOR ALCOHOL EDUCATION AND ALCOHOLISM AND DRUG REHABILITATION; TO AMEND SECTION 61-6-20, RELATING TO THE DEFINITIONS USED IN THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE A DEFINITION OF "ALCOHOLIC LIQUOR BY THE DRINK"; TO AMEND SECTION 61-6-700, RELATING TO ESTABLISHMENTS WHICH USE ALCOHOLIC BEVERAGES SOLELY IN THE PREPARATION OF FOODS TO BE SERVED BY THE ESTABLISHMENTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTION 61-6-1600, RELATING TO NONPROFIT ORGANIZATIONS BEING LICENSED TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO ALSO AUTHORIZE THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK; TO AMEND SECTION 61-6-1610, RELATING TO BUSINESS ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO ALSO AUTHORIZE THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK AND TO MAKE CONFORMING CHANGES; TO AMEND SECTION 61-6-1620, RELATING TO RESTRICTIONS ON MINIBOTTLE LICENSEES, SO AS TO DELETE THE RESTRICTIONS AND TO AUTHORIZE THE POSSESSION AND CONSUMPTION OF ALCOHOLIC LIQUORS IN CONTAINERS OTHER THAN MINIBOTTLES ON LICENSED PREMISES; BY ADDING SECTION 61-6-1635 SO AS TO PROVIDE THAT ALCOHOLIC LIQUOR SOLD BY THE DRINK MUST BE PURCHASED ONLY FROM SPECIFICALLY LICENSED PERSONS; TO AMEND SECTION 61-6-1825, RELATING TO THE PROCEDURES TO PROTEST THE ISSUANCE OR RENEWAL OF A MINIBOTTLE LICENSE, SO AS TO DELETE THE TERM "MINIBOTTLE" AND TO MAKE THE PROCEDURES APPLY TO ANY BIENNIAL LICENSE FOR ON-PREMISES CONSUMPTION; TO AMEND SECTION 61-6-2000, AND SECTION 61-6-2005, AS AMENDED, RELATING TO TEMPORARY PERMITS FOR NONPROFIT ORGANIZATIONS, SO AS TO PROVIDE THAT THE LICENSE AUTHORIZES THE SALE OF ALCOHOLIC LIQUORS IN MINIBOTTLES OR BY THE DRINK; TO AMEND SECTION 61-6-2010, AS AMENDED, RELATING TO TEMPORARY PERMITS AUTHORIZED THROUGH A REFERENDUM, SO AS TO REMOVE THE REFERENCES TO ALCOHOLIC LIQUORS "IN SEALED CONTAINERS OF TWO OUNCES OR LESS"; TO AMEND SECTION 61-6-2200, RELATING TO THE AGE OF THE SERVER OF ALCOHOLIC LIQUORS IN ON-PREMISES ESTABLISHMENTS, SO AS TO PROVIDE THE SERVER, WHO IS EIGHTEEN YEARS OF AGE OR OLDER, ALSO MAY SERVE ALCOHOLIC LIQUORS BY THE DRINK AS WELL AS IN MINIBOTTLES; TO AMEND SECTION 61-6-2600, RELATING TO THE PENALTIES FOR VIOLATING ARTICLE 5, CHAPTER 6, TITLE 61, CONCERNING THE REGULATION OF ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO REMOVE THE REFERENCE TO MINIBOTTLES AND TO PROVIDE THAT A PERSON WHO ACTS TO AVOID THE PAYMENT OF THE SALES TAX ON THE SERVING OF ALCOHOLIC BEVERAGES BY THE DRINK IS SUBJECT TO THE PENALTIES OF THIS SECTION; TO AMEND SECTION 61-12-10, AS AMENDED, RELATING TO THE DISTRIBUTION OF CERTAIN REVENUE FOR ALCOHOL AND DRUG PROGRAMS, SO AS TO REVISE A REFERENCE NECESSITATED BY THE ABOVE PROVISIONS; AND TO REPEAL SECTION 12-33-245 RELATING TO THE TWENTY-FIVE CENTS EXCISE TAX ON MINIBOTTLES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-33-245 of the 1976 Code is amended to read:
"Section 12-33-245. (A) In lieu of taxes imposed under Sections 12-33-230 and 12-33-240, alcoholic liquors sold in minibottles must be taxed at the rate of twenty-five cents for each container in addition to the case tax as prescribed in Article 5 of this chapter and collected as those taxes are collected. Taxes levied in Article 3 of this chapter do not apply. In addition to taxes imposed pursuant to the provisions of Sections 12-33-230, 12-33-240, Chapter 36 of Title 12, and Article 5, Chapter 33, Title 12, there is imposed an excise tax equal to five percent of the gross proceeds of the sales of alcoholic liquor by the drink for on-premises consumption in establishments licensed for sales pursuant to Article 5, Chapter 6, Title 61. All proceeds of this excise tax must be deposited to the credit of the general fund of the State.
(B) Eleven percent of the revenue generated by the excise tax provided for in subsection (A) must be placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. On a quarterly basis, the State Treasurer shall must allocate this revenue to counties on a per capita basis according to the most recent United States Census. The State Treasurer must notify each county of the allocation pursuant to this subsection in addition to the funds allocated pursuant to Section 6-27-40(B), and the combination of these funds must be used by counties for educational purposes relating to the use of alcoholic liquors and for the rehabilitation of alcoholics and drug addicts. Counties may pool these funds with other counties and may combine these funds with other funds for the same purpose."
(C) Those state agencies and local entities including counties which are allocated and receive by law minibottle tax revenues in fiscal year 2003-2004 for educational, prevention, and other purposes, must receive at least the same amount of revenues from the combination of minibottle tax revenues and liquor by the drink revenues beginning with the first full fiscal year after sales of liquor by the drink are authorized as they did from minibottle tax revenues during fiscal year 2003-2004. If these state agencies and local entities do not, the difference must be made up from the state general fund within sixty days after the close of that fiscal year."
SECTION 2. Section 6-27-40(B) of the 1976 Code, as amended by Act 415 of 1996, is further amended to read:
"(B) In making the quarterly distribution to counties, the State Treasurer must notify each county of the amount that must be used for educational purposes relating to the use of alcoholic liquors and for the rehabilitation of alcoholics and drug addicts. Counties may pool these funds with other counties and may combine these funds with other funds for the same purposes. The amount that must be used as provided in this subsection is equal to twenty-five percent of the revenue derived pursuant to Section 12-33-245 12-36-925 allocated on a per capita basis according to the most recent United States Census."
SECTION 3. Section 61-6-20(1) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(1)(a) 'Alcoholic liquors' or 'alcoholic beverages' means any spirituous malt, vinous, fermented, brewed (whether lager or rice beer), or other liquors or a compound or mixture thereof by whatever name called or known which contains alcohol and is used as a beverage, but does not include:
(a)(i) wine when manufactured or made for home consumption and which is not sold by the maker thereof or by another person; or
(b)(ii) a beverage declared by statute to be nonalcoholic or nonintoxicating;.
(b) 'Alcoholic liquor by the drink' or 'alcoholic beverage by the drink' means a drink poured from a container of alcoholic liquor, without regard to the size."
SECTION 4. Section 61-6-700 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-700. An establishment which offers meals to the public must be licensed by the department to purchase and possess liqueurs, wines, and similar alcoholic beverages used solely in the cooking and preparing of foods served by the establishment. Application for the license must be in a form and under conditions prescribed by the department. The license fee is fifty dollars. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars, and other licenses he holds from the department under this title must be revoked.
The license provided in this section does not alter or limit the privileges or responsibilities for holders of licenses issued to authorize the possession, sale, and consumption of alcoholic liquors in minibottles under Article 5 of this chapter. Establishments so licensed may use alcoholic liquors in the preparation of food without obtaining the license provided for in this section if only liquors in minibottles are used in the food preparation."
SECTION 5. Section 61-6-1600 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-1600. Nonprofit organizations which are licensed by the department under this article may sell alcoholic liquors in minibottles or by the drink. Members or guests of members of these organizations may consume alcoholic liquors sold in minibottles or sold by the drink upon the premises between the hours of ten o'clock in the morning and two o'clock the following morning."
SECTION 6. Section 61-6-1610 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-1610. (A) Except on Sunday, it is lawful to sell and consume alcoholic liquors sold in minibottles or sold by the drink in a business establishment between the hours of ten o'clock in the morning and two o'clock the following morning if the establishment meets the following requirements:
(1) the business is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging; and
(2) the business has a license from the department authorizing the sale and consumption of alcoholic liquors, which is conspicuously displayed on the main entrance to the premises and clearly visible from the outside.
(B) Notwithstanding any other provision of this article, the licensed premises of a business establishment which is bona fide engaged primarily and substantially in the preparation and service of meals and which holds a valid license for the sale and consumption of alcoholic liquors in minibottles do not extend to any portion of the business establishment or the property upon which it is located which is designed as or used for a parking area or a deck to a swimming pool even though food may be served in the area.
(C) An establishment licensed under this article may use alcoholic liquors in the preparation of food without obtaining the license provided for in Section 61-6-700 if only liquors in minibottles are used in the food preparation."
SECTION 7. Article 5, Chapter 6, Title 61 of the 1976 Code is amended by adding:
"Section 61-6-1635. Alcoholic liquor by the drink as authorized to be sold pursuant to this article must be purchased only by a person licensed under this article and only from a federally licensed Class B liquor store."
SECTION 8. Section 61-6-1620(A) of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"(A) This article must not be construed to authorize authorizes the possession or consumption of alcoholic liquors in containers other than minibottles on premises open to the general public for which a license has been obtained pursuant to Sections Section 61-6-1600 or 61-6-1610."
SECTION 9. Section 61-6-1825 of the 1976 Code, as added by Act 363 of 1998, is amended to read:
"Section 61-6-1825. A person residing in the county in which a minibottle license under subarticle 1 of this article is requested to be granted, or a person residing within five miles of the location for which a minibottle permit under subarticle 1 of this article is requested, 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 specific 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 may not issue the permanent license but shall forward the file to the Administrative Law Judge Division.
If the protestant during the investigation 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 penalty to include court costs."
SECTION 10. Section 61-6-2000 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2000. In addition to the minibottle licenses authorized under subarticle 1 of this article, the department may also issue a temporary license for a period not to exceed twenty-four hours to nonprofit organizations which authorizes these organizations to purchase and sell at a single social occasion alcoholic liquors in minibottles or by the drink. Notwithstanding any other provision of this article, the issuance of this permit authorizes the organization to purchase alcoholic liquors in minibottles from licensed retail dealers in the same manner that persons with biennial minibottle licenses are authorized to make these purchases. The fee for the permit is thirty-five dollars payable at the time of application. The permit application must include a statement by the applicant as to the amount of alcoholic liquors to be purchased and the nature and date of the social occasion at which they are to be sold. The issuance or nonissuance of permits authorized under this section is within the sole discretion of the department."
SECTION 11. Section 61-6-2005(A) of the 1976 Code, as amended by Act 442 of 1998, is further amended to read:
"(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 or by the drink 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, and:
(1) the applicant currently holds a valid license to sell alcoholic liquors in sealed containers of two ounces or less or by the drink; or
(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days."
SECTION 12. Section 61-6-2010 of the 1976 Code, as last amended by Act 353 of 2002, is further amended to read:
"Section 61-6-2010. (A) In addition to the provisions of Section 61-6-2000, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department in its sole discretion shall specify the terms and conditions of the permit.
(B)(1) The filing and permit fees must be distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may be used only by the municipality or county for the following purposes:
(a) capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;
(b) purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);
(c) festivals which have a demonstrable and significant impact on tourism;
(d) local youth mentor programs to serve juvenile offenders under the jurisdiction of the family court;
(e) contributions to matching funds necessary for a local government or entity to receive funding from the Legacy Trust Fund pursuant to Chapter 22, Title 51;
(f) contributions to a redevelopment authority pursuant to Section 31-12-10, et seq.;
(g) acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future; public water supply, well fields, highway buffering and aquifer recharge areas; and land for wildlife preserves; and land for future public recreational facilities;
(h) nourishment, renourishment (resanding), and maintenance of beaches;
(i) dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;
(j) maintenance of public beach access;
(k) capital improvements to the beaches and beach related facilities, such as public parking areas for beach access; dune walkovers and rest room facilities, with or without changing rooms, at public beach parks; and
(l) construction and maintenance of drainage systems.
(2) The revenue may not be used for operating expenses of tourism-related buildings.
(C) Permits authorized by this section may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permits. The county or municipal election commission, as the case may be, shall conduct a referendum upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the county or municipality, as the case may be, in not less than thirty nor more than forty days after receiving the petition. The election commission shall cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall apply to the referendum, mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the South Carolina Department of Revenue. The question on the ballot shall read substantially as follows:
'Shall the South Carolina Department of Revenue be authorized to issue temporary permits in this (county)(municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'
A referendum for this purpose may not be held more often than once in forty-eight months.
The expenses of any such referendum must be paid by the county or municipality conducting the referendum.
(D)(1) The municipal governing body may order a referendum on the question of the issuance of temporary permits to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less in the following circumstances:
(a) parts of the municipality are located in more than one county;
(b) as a result of a favorable vote in a county referendum held pursuant to this section, permits may be issued in only the parts of the municipality located in that county; and
(c) the proposed referendum would authorize issuance of permits in the remaining parts of the municipality.
(2) The method of ordering a referendum provided in this subsection is in addition to the petition method provided in subsection (C). An unfavorable vote in a municipal referendum does not affect the authority to issue these permits in the part of the municipality located in a county where these permits may be issued.
(3) Upon receipt of a copy of the ordinance filed with the municipal election commission at least sixty days before the date of the general election, the commission must conduct the referendum at the time of the general election and publish and certify its results in the same manner as provided in subsection (C). Subsection (C)(2) does not apply to this referendum."
SECTION 13. Section 61-6-2200 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2200. No person may serve or deliver to a purchaser alcoholic liquors in minibottles or by the drink in a business where these sales are authorized unless the person is eighteen years of age or older; nothing contained in this section may be construed as allowing bartenders under the age of twenty-one."
SECTION 14. Section 61-6-2600 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2600. A person who transports, possesses, or consumes alcoholic liquors except in a manner permitted by this article or a person who violates any of the provisions thereof is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. In addition, a person licensed to sell alcoholic liquors pursuant to the provisions of this article who has in his possession on his licensed premises alcoholic liquors in containers other than minibottles, except wine as authorized for sale under Section 61-6-1540(B), or who displays minibottles when the seals are broken, who acts to avoid the payment of the sales tax levied on the serving of alcoholic beverages by the drink provided for in Chapter 33, Title 12, or who violates any other provision of this article must:
(1) for a first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than thirty days, or both;
(2) for a second offense within three years of the first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than one hundred eighty days, or both;
(3) for a third offense within three years of the first offense be fined not less than five hundred dollars and have his license revoked permanently;
(4) for a violation involving the avoidance of taxes, a fine of not less than one thousand dollars and permanent revocation of his license."
SECTION 15. Section 61-12-10 of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:
"Section 61-12-10. Revenue allocated to counties for educational purposes relating to the use of alcoholic liquors and the rehabilitation of alcoholics, drug abusers, and drug addicts pursuant to Section 6-27-40 and Section 12-33-245 12-36-925 must be regulated and disbursed in accordance with the provisions of this chapter."
SECTION 16. Section 12-33-245 of the 1976 Code is repealed.
SECTION 17. Section 61-6-1500 of the 1976 Code is amended to read:
"Section 61-6-1500. 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) 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;
(4)(2) permit the drinking of alcoholic liquors in his store or place of business;
(5)(3) 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
(6)(4) 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.
The provisions of this section relating to quantities of less than two hundred milliliters do not apply to (1) minibottles when authorized by law to be sold to persons licensed to sell minibottles for on-premises consumption or (2) minibottles sold for consumption on commercial aircraft engaged in interstate commerce.
It is unlawful for a person licensed to sell alcoholic liquors under the provisions of this section or his agent to refill a minibottle. A person who violates this provision must may, upon conviction, have his license revoked permanently.
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.
It is unlawful to sell minibottles except during lawful hours of operation.
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 paragraph, 'a person licensed under Article 5 of this chapter' includes his designated agent as a purchaser."
SECTION 18. The 1976 Code is amended by adding:
"Section 61-6-1640. No person licensed under this article, including his agent, shall substitute any other brand of alcoholic liquor in place of the brand specified by a customer unless the licensee or his agent has: (1) advised the customer that the desired brand is not available, and (2) received the customer's approval of substitution. A person who violates this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than ten days, or both."
SECTION 19. The 1976 Code is amended by adding:
"Section 61-6-1650. (A) No licensee or his agent shall knowingly and wilfully refill, partially refill, or reuse any bottle of lawfully purchased alcoholic liquors, or otherwise tamper with the contents of any such bottle.
(B) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:
(1) for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;
(2) for a second or subsequent offense, must be fined one thousand dollars or imprisoned not more than six months, or both.
(C) In addition to the penalties set forth in subsection (B), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.
(D) The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section."
SECTION 20. Section 61-6-2400 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2400. Alcoholic liquors sold in minibottles by the drink must be taxed pursuant to Chapter 33, Title 12."
SECTION 21. Section 61-6-2600 of the 1976 Code, as added by Act 415 of 1996, is amended to read:
"Section 61-6-2600. Except as otherwise provided in this title, A a person who transports, possesses, or consumes alcoholic liquors except in a manner permitted by this article or a person who violates any of the provisions thereof of this article is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. In addition, a person licensed to sell alcoholic liquors pursuant to the provisions of this article who has in his possession on his licensed premises alcoholic liquors in containers other than minibottles, except wine as authorized for sale under Section 61-6-1540(B), or who displays minibottles when the seals are broken acts to avoid the payment of any tax levied on the serving of alcoholic beverages by the drink provided for in Chapter 33, Title 12, or who violates any other provision of this article must:
(1) for a first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than thirty days, or both;
(2) for a second offense within three years of the first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than one hundred eighty days, or both;
(3) for a third offense within three years of the first offense be fined not less than five hundred dollars and have his license revoked permanently; or
(4) for a violation involving the avoidance of taxes, a fine of be fined not less than one thousand dollars and permanent revocation of his license."
SECTION 22. The provisions of this act apply to all licenses or permits applied for on or after the effective date of this act. This act establishes a license to sell alcoholic liquors by the drink. All statutes and regulations applicable to minibottle licenses or permits or applications for licenses or permits apply to licenses or permits for alcoholic liquors by the drink. All minibottle licenses or permits in effect before the effective date of this act are considered to be licenses or permits to sell alcoholic liquors by the drink after the effective date of this act through the expiration of the license or permit.
SECTION 23. This act takes effect on the first day of July after the ratification of an amendment offered in the 2004 general election to the constitution of the State authorizing the sale of liquor by the drink.
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