South Carolina General Assembly
118th Session, 2009-2010

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Bill 3452


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Indicates New Matter


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A BILL

TO AMEND SUBARTICLE 11, ARTICLE 3, CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF MANUFACTURERS OF ALCOHOLIC LIQUORS, SO AS TO INCLUDE REGULATION OF MICRO-DISTILLERS OF ALCOHOLIC LIQUORS ON LICENSED PREMISES, TO DEFINE NECESSARY TERMS, TO PROVIDE A BIENNIAL DISTILLERY LICENSE FEE, TO PROVIDE PROCEDURES FOR WHO MAY OBTAIN A LICENSE, TO PROVIDE RESTRICTIONS ON THE LICENSE, TO PROVIDE FOR APPLICATIONS FOR TASTINGS AND LIMITATIONS ON TASTINGS, AND TO PROVIDE A PENALTY FOR PERSONS WHO VIOLATE THE PROVISIONS OF THE SUBARTICLE.

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

SECTION    1.    Subarticle 11, Article 3, Chapter 6, Title 61 of the 1976 Code is amended to read:

"Subarticle 11

REGULATION OF MANUFACTURERS AND MICRO-DISTILLERS

Section 61-6-1095.        For the purposes of this subarticle:

(1)    'Micro-distillery' means a manufacturer who distills, blends, and bottles alcoholic liquors on the licensed premises in this State with an alcohol content greater than seventeen percent and who produces a maximum quantity of one hundred twenty-five thousand cases per year at the licensed premises.

(2)    'Licensed premises' means a location where the micro-distillery or manufacturer is licensed pursuant to this subarticle for the manufacture, tasting, and retail sales of alcoholic liquors produced at the licensed location and includes those areas normally used by the licensee to conduct his business and includes the producing areas, storage areas, tasting areas, selling areas, and parking lots.

(3)    'Person' means an individual, partnership, corporation, or other form of business.

Section 61-6-1100.        NoA manufacturer may not own or operate more than one plant, establishment, or place of business for the manufacture of alcoholic liquors in any one county of this State, nor may he permit the drinking of alcoholic liquors on his premises.

Section 61-6-1110.    The department may issue a manufacturer's license to a person to manufacture alcoholic liquors in the State subject to the requirements of this chapter and a payment of a biennial distillery license fee of fifty thousand dollars. This section is not applicable to Section 61-6-1095.

Section 61-6-1120.    (A)    The department may issue a micro-distillery license to a person to operate one micro-distillery in the State subject to the requirements of this chapter and payment of a biennial micro-distillery license fee of five thousand dollars.

(B)    A micro-distillery is not required to obtain an additional manufacturing and retail license required pursuant to this title.

Section 61-6-1130.    (A)    A micro-distillery or manufacturer desiring to offer tasting and sale of alcoholic liquors to consumers at its licensed premises shall make application for a license for these sales on forms prescribed by the department and shall remit taxes to the department for alcoholic liquors sold in an amount equal to taxes paid by wholesalers for the sale of alcoholic liquors.

(B)    Alcoholic liquors produced on a licensed premises pursuant to this subarticle must be taxed as provided in Chapter 33, Title 12. The micro-distillery or manufacturer permittee shall maintain adequate records as determined by the department to ensure the collection of this tax.

Section 61-6-1140.    A holder of a valid micro-distillery or manufacturer license issued by the State may permit tastings and retail sales of the alcoholic liquors produced at the licensed premises subject to the following limitations and those provided in Section 61-6-1150:

(1)    tastings by and sales to consumers must be held in conjunction with a tour by the consumer of the on-site licensed premises;

(2)    the micro-distillery or manufacturer shall establish appropriate protocols to ensure that a consumer sold or served alcoholic liquors pursuant to this section is over the age of twenty-one and that a consumer may not attend more than one tasting in a day;

(3)    the micro-distillery or manufacturer shall dispense alcoholic liquors for tasting in quantities not greater than one-half ounce per sample;

(4)    the micro-distillery or manufacturer may not dispense more than one and one-half ounces to an individual consumer in one day;

(5)    tastings and sales may occur only between the hours of 9:00 a.m. and 7 p.m., Monday through Saturday;

(6)    the micro-distillery or manufacturer may charge for alcoholic liquors consumed at a tasting, but must collect the point of sale tax per drink and remit tax revenue to the general fund;

(7)    tastings may not occur in conjunction with the service of food in a restaurant setting; and

(8)    only brands of alcoholic liquors actually manufactured, distilled, or fermented at and distributed to wholesalers from the licensed premises may be sold or offered for tasting.

Section 61-6-1150.    Authorization by this section of sales and tastings at licensed premises of a micro-distillery or manufacturer is expressly intended for the promotion of education regarding production of alcoholic liquors in the State and not to create competition between producers and retailers. A holder of a valid micro-distillery or manufacturer license issued by the State may:

(1)    sell in any quantities the alcoholic liquors produced at the licensed premises to a wholesaler licensed by the State;

(2)    transport in any quantities the alcoholic liquors produced at the licensed premises out of state for sale outside of the State;

(3)    sell at the licensed premises only in quantities of 750-milliliter bottles, the alcoholic liquors produced at the licensed premises but only if the labels for the bottles are marked 'not for resale';

(4)    sell no more than three 750-milliliter bottles of alcoholic liquors to a consumer in one business day;

(5)    not allow consumption on the licensed premises of alcoholic liquors sold by the bottle at the licensed premises;

(6)    maintain pricing of the alcoholic liquors sold at the licensed premises at a price approximating retail prices generally charged for identical alcoholic liquors in the county where the on-site premises is located;

(7)    in addition to the sale of alcoholic liquors as authorized by this section, sell items promoting the brand or brands of alcoholic liquors produced at that location in a separate room of the licensed premises; and

(8)    not sell or store goods, wares, or merchandise in or sold in or from the room in which alcoholic liquors are sold or tasted.

Section 61-6-1160.    Except as otherwise provided in this title, a person who transports, possesses, or consumes alcoholic liquors except in a manner permitted by this subarticle or a person who violates a provision of this subarticle 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 subarticle who acts to avoid the payment of the excise tax imposed on the serving of alcoholic beverages by the drink provided for in Chapter 33, Title 12 or who violates another provision of this subarticle 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, be fined not less than one thousand dollars and permanent revocation of his license."

SECTION    2.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    3.    This act takes effect upon approval by the Governor.

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