South Carolina General Assembly
116th Session, 2005-2006

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Bill 4768


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A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 61-2-185 SO AS TO AUTHORIZE CONSUMERS TO RECEIVE MERCHANDISE COUPONS OFFERED BY MANUFACTURERS, SUPPLIERS, OR IMPORTERS ON THE PURCHASE OF BEER, WINE, AND ALCOHOLIC LIQUOR, TO PROVIDE CONDITIONS AND LIMITATIONS AS TO THE MANNER IN WHICH THE COUPONS MAY BE OFFERED TO CONSUMERS, AND TO PROVIDE PENALTIES FOR VIOLATION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Chapter 2, Title 61 of the 1976 Code is amended by adding:

"Section 61-2-185.    (A)    Notwithstanding any other provision of law, consumers may be offered merchandise coupons by a manufacturer, brewery, vintner, distiller, or importer of beer, wine, or alcoholic liquors, or their agent in the manner provided in this section. All coupons, redeemable by discounts or rebates, offered by a manufacturer, brewer, vintner, distiller, or importer of beer, wine, or alcoholic liquors, or their agent must only be redeemed by the consumer and payment must only be made directly to the consumer by the licensed retailer, manufacturer, brewer, vintner, distiller, or importer of beer, wine, or alcoholic liquors or their agent. The maximum allowable value of a coupon, redeemable at the time of purchase, shall be two dollars. A wholesaler may not act as an agent for the manufacturer, brewer, vintner, distiller, or importer of beer, wine, or alcoholic liquors in the redemption, participate in the payment process, or have any financial interest or participation in the payment directly or indirectly to the consumer.

(B)    Scan-backs, scan-downs, or similar practices are prohibited under this section. A scan-back or scan-down for purposes of this section means a rebate paid to a retailer by a brewer, vintner, manufacturer, distiller, or importer through a clearinghouse for sales that are recorded by a scanner at the time a consumer purchases certain products of that brewer, vintner, manufacturer, distiller, or importer with the retailer then periodically sending the accumulated sales totals recorded by the scanner to the clearinghouse for payment of the rebate.

(C)    A price reduction by coupon on the purchase price of a beverage product, or other nonbeverage merchandise with the purchase of beer, wine, or alcoholic liquor is not unlawful provided:

(1)    the price reduction appears on the invoice given only to the consumer that purchased the beverage product or other merchandise;

(2)    a wholesaler of beer, wine, or alcoholic liquor does not participate, directly or indirectly, in any payment or reimbursement to the retailer, manufacturer, supplier, or importer for the coupon or the purchase price reduction; and

(3)    the retailer reports on its sales tax return and pays sales taxes computed on the amount it receives as a payment or a reimbursement for the coupon or the price reduction.

(D)    Any person violating the provisions of this section shall be subject to a civil fine of one hundred dollars for each coupon violation.

(E)    The department shall promulgate regulations to implement the provisions of this section.

(F)    The provisions of this section are not deemed to violate the provisions of Section 61-4-940(E) relating to prohibited discounts, and also do not prohibit wine or alcoholic beverage tastings as authorized in Section 61-6-1035."

SECTION    2.    This act takes effect upon approval by the Governor.

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