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COMMITTEE REPORT
May 28, 2003
H. 3490
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 5/28/03--H.
Read the first time January 30, 2003.
To whom was referred a Joint Resolution (H. 3490) proposing an amendment to Section 1, Article VIII-A of the Constitution of South Carolina, 1895, relating to the powers of the General Assembly pertaining to alcoholic liquors, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
JAMES H. HARRISON for Committee.
REVENUE IMPACT 1/
This joint resolution is expected to reduce general fund alcoholic liquor tax revenue by an estimated $18,143,000 in the first year implemented.
Explanation
This joint resolution would allow a referendum to be put before the qualified electors of this State during the next general election for representatives, to amend Section 1, Article VIII-A of the Constitution of South Carolina, to permit the sale of alcoholic liquors for on-premise consumption to be contained in containers of greater than two ounces. A vote "yes" would delete the legal requirement that alcohol be contained in containers of no more than two ounces for on-premise consumption. A vote "no" would maintain the legal requirement that alcohol be contained in containers of no more than two ounces for on-premise consumption. Currently, containers with alcohol for on-premise consumption are served in sealed containers of less than two ounces each, i.e., a mini-bottle. A repeal of the mini-bottle standard would permit the state to "free-pour" alcohol in licensed establishments. The General Assembly would deem an appropriate sized container for the storage of alcoholic liquors. If the majority of the qualified electors adopt the "free-pour" method of dispensing alcoholic liquors, the General Assembly must introduce enabling legislation to accompany the change in the legal statute. If the referendum is passed, adopted, and ratified by the General Assembly, the repeal of the sale of alcohol in mini-bottles is expected to reduce general fund alcoholic liquor tax revenue by an estimated $18,143,000 in the first year implemented from the loss of mini-bottle sales.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE VIII-A OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE POWERS OF THE GENERAL ASSEMBLY PERTAINING TO ALCOHOLIC LIQUORS AND BEVERAGES, SO AS TO DELETE THE DETAILED REQUIREMENTS FOR THE REGULATION OF ALCOHOLIC LIQUORS AND BEVERAGES, INCLUDING DELETING THE PROVISION THAT ON-PREMISES ESTABLISHMENTS ARE LICENSED TO SELL ALCOHOLIC LIQUORS AND BEVERAGES ONLY IN SEALED CONTAINERS OF TWO OUNCES OR LESS, AND TO AUTHORIZE THE GENERAL ASSEMBLY TO REGULATE THE SALE OF ALCOHOLIC LIQUORS AND BEVERAGES, INCLUDING PROVISIONS CONCERNING THE RIGHT TO SELL ALCOHOLIC LIQUORS AND BEVERAGES IN CONTAINERS OF SUCH SIZE AS THE GENERAL ASSEMBLY CONSIDERS APPROPRIATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is proposed that Section 1, Article VIII-A of the Constitution of this State be amended to read:
"Section 1. In the exercise of the police power the General Assembly shall have has the right to prohibit and to regulate the manufacture, and sale, and retail of alcoholic liquors or beverages within the State. The General Assembly may license persons or corporations to manufacture, and sell, and retail alcoholic liquors or beverages within the State under such the rules and restrictions as it deems considers proper; including the right to sell alcoholic liquors and beverages in containers of such size as the General Assembly considers appropriate; or the General Assembly may prohibit the manufacture and sale and retail of alcoholic liquors and beverages within the State, and may authorize and empower State, county and municipal officers, all or either, under the authority and in the name of the State, to buy in any market and retail within the State liquors and beverages in such packages and quantities, under such rules and regulations, as it deems expedient. Provided, that no license shall be granted to sell alcoholic beverages in less quantities than one ounce in licensed retail stores, or to sell them between seven o'clock p. m. and nine o'clock a. m., or to sell them to be drunk on the premises; provided, further, that the. The General Assembly shall not delegate to any municipal corporation the power to issue licenses to sell alcoholic liquors or beverages the same. Provided, further, that licenses may be granted to sell and consume alcoholic liquors and beverages in sealed containers of two ounces or less in businesses which engage primarily and substantially in the preparation and serving of meals or furnishing of lodging or on premises of certain nonprofit organizations with limited membership not open to the general public, during such hours as the General Assembly may provide."
SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 1, Article VIII-A of the Constitution of this State, relating to the powers of the General Assembly pertaining to alcoholic liquors and beverages, be amended so as to delete the detailed requirements for the regulation of alcoholic liquors and beverages, including deleting the provision that on-premises establishments are licensed to sell alcoholic liquors and beverages only in sealed containers of two ounces or less, and to authorize the General Assembly to regulate the sale of alcoholic liquors and beverages, including provisions concerning the right to sell alcoholic liquors and beverages in containers of such size as the General Assembly considers appropriate?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
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