Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 15, 2023

S. 260

Introduced by Senators Rankin and Hutto

 

S. Printed 03/15/23--S.

Read the first time January 10, 2023

 

________

 

The committee on Senate Judiciary

To who was referred a Bill (S. 260) to amend the South Carolina Code of Laws by enacting the "Responsible Alcohol Server Training Act"; by amending Title 61, relating to alcohol and alcoholic beverages, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 3, by striking Sections 61-3-110 and 61-3-120 and inserting:

    Section 61-3-110.  (A) An individual shall not be employed as an alcohol server or a manager on permitted or licensed premises unless and until that individual obtains, within one hundred and twenty calendar days of employment, an alcohol server certificate pursuant to the provisions of this chapter. If a permittee or licensee functions or is employed as an alcohol server or manager on the permitted or licensed premises, then the permittee or licensee must also complete training on responsible alcohol server training and obtain an alcohol server certificate pursuant to the provisions of this chapter. An alcohol server shall not be mentally or physically impaired by alcohol, drugs, or controlled substances while serving alcohol.

    (B) Each permittee or licensee shall maintain at all times on its permitted or licensed premises copies of the alcohol server certificates of the permittee or licensee, if applicable, and the alcohol server certificates of each manager and each alcohol server then employed by the permittee or licensee. Copies of the alcohol server certificate must be made available, upon request, to the department, the division, or the agents and employees of each. For the purposes of enforcement of the provisions of this chapter, a permittee or licensee shall also make available to the department or the division, when requested, the hire date of an alcohol server.

    (C) Failure to produce a copy of an alcohol server certificate when an alcohol server has been employed for one hundred and twenty calendar days shall subject the permittee or licensee to a written warning by the department.

 

    Section 61-3-120.  (A)(1) The department, in collaboration with DAODAS and the division, is authorized to approve alcohol server training programs, based on best evidence practice standards, offered by providers. A program that has not received approval within sixty days from submission shall be considered denied. A provider may appeal denial pursuant to Section 61-2-260 and the South Carolina Administrative Procedures Act.

       (2) A provider shall provide alcohol server training programs to all applicable individuals free of charge.

    (B) The curricula of each program must include the following subjects:

       (1) state laws and regulations pertaining to:

           (a) the sale and service of alcoholic beverages;

           (b) the permitting and licensing of sellers of alcoholic beverages;

           (c) impaired driving or driving under the influence of alcohol or drugs;

           (d) liquor liability issues;

           (e) the carrying of concealed weapons by authorized permit holders into businesses selling and serving alcoholic beverages; and

           (f) life consequences, such as the loss of education scholarships, to minors relating to the unlawful use, transfer, or sale of alcoholic beverages;

       (2) the effect that alcohol has on the body and human behavior, including, but not limited to, its effect on an individual's ability to operate a motor vehicle when intoxicated;

       (3) information on blood alcohol concentration and factors that change or alter blood alcohol concentration;

       (4) the effect that alcohol has on an individual when taken in combination with commonly used prescription or nonprescription drugs or with illegal drugs;

       (5) information on recognizing the signs of intoxication and methods for preventing intoxication;

       (6) methods of recognizing problem drinkers and techniques for intervening with and refusing to serve problem drinkers;

       (7) methods of identifying and refusing to serve or sell alcoholic beverages to individuals under twenty-one years of age and intoxicated individuals;

       (8) methods for properly and effectively checking the identification of an individual, for identifying illegal identification, and for handling situations involving individuals who have provided illegal identification;

       (9) South Carolina law enforcement information; and

       (10) other topics related to alcohol server education and training designated by the department, in collaboration with DAODAS and the division, to be included.

    (C) The department shall approve only online designed training programs that meet each of the following criteria:

       (1) A program must cover the content specified in subsection (B).

       (2) The content in a program must clearly identify and focus on the knowledge, skills, and abilities needed to responsibly serve alcoholic beverages and must be developed using best practices in instructional design and exam development to ensure that the program is fair and legally defensible.

       (3) A program shall be offered online.

       (4) Online training must be at least four hours, be available in English and Spanish, and include a test.

       (5) Online or computer-based training programs shall use linear navigation that requires the completion of a module before the course proceeds to the next module, with no content omitted; be interactive; have audio for content; and include a test.

       (6) Training and testing shall be conducted online. All tests must be monitored by an online proctor. A passing grade for a test, as provided by the program, is required.

       (7) Training certificates are issued by the provider only after training is complete and a test has been passed successfully.

       (8) Within ten business days after a training is completed, each provider must give to the department a report of all individuals who have successfully completed the training and testing. The provider must also maintain these records for at least five years following the end of the training program for purposes of verifying certification validity by the department or the division.

    (D) The department, in collaboration with DAODAS and the division, may suspend or revoke the authorization of a provider that the department determines has violated the provisions of this chapter. If a provider's authorization is suspended or revoked, then that provider must cease operations in this State immediately and refund any money paid to it by individuals enrolled in that provider's program at the time of the suspension or revocation.

Amend the bill further, SECTION 3, by striking Section 61-3-140(D) and inserting:

    (D) Alcohol server certificates are valid for a period of five years from the date that the alcohol server certificate was issued. After the five-year period, a new or recertified alcohol server certificate must be obtained pursuant to the provisions of this chapter in order for the holder to be employed as a server.

Amend the bill further, SECTION 3, by striking Section 61-3-140(F) and inserting:

    (F) The department shall issue and renew alcohol server certificates for all qualifying applicants free of charge.

    (G) An applicant shall be deemed to be a qualifying applicant for the purpose of alcohol server certificate issuance and renewal if they have successfully completed all training and testing requirements as found in Section 61-3-120.

Amend the bill further, SECTION 3, by striking Section 61-3-150(A)(1) and inserting:

       (1) for a first offense, shall be issued a written warning by the department;

Amend the bill further, SECTION 3, by striking Section 61-3-150(C), (D), and (E) and inserting:

    (C) Violations of the provisions of this chapter shall be considered cumulatively for each alcohol server.

    (D) The department may issue an administrative order to suspend or revoke the certificate of an alcohol server who accumulates more than three violations of the provisions of this chapter within a three-year period of time. In lieu of suspension or revocation of an alcohol server certificate, the department may require that the individual who has violated the provisions of this chapter attend and successfully complete either the full program or a recertification program.

    (E) An individual whose alcohol server certificate is suspended or revoked is prohibited from serving in a South Carolina business permitted or licensed pursuant to Title 61 for such period as stated in the suspension or revocation order and until the individual obtains a new alcohol server certificate pursuant to the provisions of this chapter. The department shall make the information on suspended or revoked alcohol server certificates accessible for licensees and permittees to verify when necessary.

    (F) The provisions of this chapter shall not be interpreted to waive the liability of a permittee or licensee that may arise pursuant to the provisions of Title 61.

Amend the bill further, SECTION 6, by striking Section 61-4-50(A)(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Amend the bill further, SECTION 7, by striking Section 61-4-90(A)(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Amend the bill further, SECTION 8, by striking Section 61-4-580(C)(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Amend the bill further, SECTION 9, by striking Section 61-6-2220(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Amend the bill further, SECTION 10, by striking Section 61-6-4070(A)(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Amend the bill further, SECTION 11, by striking Section 61-6-4080(A)(1) and inserting:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must be issued a written warning by the department; and

Renumber sections to conform.

Amend title to conform.

 

LUKE RANKIN for Committee.

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill enacts the "Responsible Alcohol Server Training Act", which provides for the establishment, implementation, and enforcement of a mandatory alcohol server training and education program and makes related amendments to other beer, wine, and alcoholic liquor laws. The bill requires an individual employed as an alcohol server or manager on permitted or licensed premises to obtain an alcohol server certificate within sixty calendar days of employment. This requirement extends to the permittee or licensee of the premises if they function as a manager or server on the premises.

 

To obtain an alcohol server certificate pursuant to this bill, an individual must complete an approved alcohol server training program. The bill authorizes DOR, in collaboration with DAODAS and SLED, to approve the alcohol server training programs offered by providers and provides guidance regarding the curricula. DOR must issue an alcohol server certificate valid for three years to each applicant who completes an approved responsible alcohol server education program or recertification program.

 

Department of Revenue. This bill authorizes DOR, in collaboration with SLED and DAODAS, to approve and regulate alcohol server training programs. DOR, along with SLED, will be responsible for promulgating regulations and enforcing the provisions of the act. DOR will also be responsible for managing the Responsible Alcohol Server Training Fund, bringing administrative actions for violations, and processing applications and issuing certificates for alcohol servers. Based upon information provided by DOR and ALC, up to 55,000 servers in South Carolina will require certification. DOR indicates that it will need to hire 4.0 FTEs to administer the new alcohol server training program requirements. This will increase Other Fund expenditures by $255,000 beginning in FY 2023-24 for salary and fringe benefits. This bill allows the training fund to be used for expenditures associated with the implementation and enforcement of the provisions of this bill. This section of the impact statement has been updated to include a response from DOR.

 

Department of Alcohol and Other Drug Abuse Services. Currently, DAODAS approves alcohol retailer and server education programs as required by state law. There are currently seven approved program providers in the private sector. In addition, DAODAS developed a server education curriculum known as the Palmetto Retailers Education Program (PREP). PREP is delivered through a community-based system of thirty-two county alcohol and drug abuse authorities. DAODAS provides resources to the local alcohol and drug abuse authorities, to include training manuals, state affiliated trainers, marketing pamphlets, certificates, and a percentage of an agency FTE to support the delivery of PREP. The costs to DAODAS are approximately $10,000 annually and are funded through the federal Substance Abuse Prevention and Treatment Block Grant (SAPT). Collectively, over 858 individuals attended the PREP Server Education class through local alcohol and drug abuse providers in FY 2021-22.

 

Based upon information provided by DOR and ALC, up to 55,000 servers in South Carolina will require training. Any increase in costs as a result of increased demand for the course will be managed within DAODAS' Federal Funds.

 

The bill allows DOR to charge program providers an annual fee of up to $500 beginning in FY 2023-24. As a state agency, DAODAS is exempt from paying the provider fee. However, it is unclear whether the provider fee will apply to the thirty-two county alcohol and drug abuse authorities that deliver the PREP training. If the county authorities are subject to the provider fee, the department indicates it may need to subsidize the fee, which would increase expenditures for DAODAS by as much as $16,000 annually beginning in FY 2023-24. Any increase in expenditures would be charged to and managed within the federal SAPT block grant. The bill will have no expenditure impact on the General Fund or Other Funds for DAODAS.

 

South Carolina Law Enforcement Division. SLED will be required to collaborate with other departments for the approval and regulation of training programs, promulgation of regulations, and enforcement of the act. This bill may increase General Fund expenses of SLED by approximately $2,700 to review and approve alcohol server training programs. However, SLED anticipates these costs can be managed within existing appropriations.

 

Administrative Law Court. Requests for contested case hearings arising under the Alcohol Server Training Program will be filed with the ALC. According to ALC, contested cases may arise if an applicant seeking to run an alcohol server training program is denied approval;

if an alcohol server training program has its authorization suspended or revoked; if a server has his/her alcohol server certificate suspended or revoked; and if a licensee for on-premises consumption allows its liability policy to lapse or terminate. A contested case hearing for a licensee for on-premises consumption that allows its liability policy to lapse or terminate requires an expedited hearing and decision. ALC anticipates that there will be an increase in the number of current contested case hearings regarding alcohol permits and licenses issued by DOR. Based on information provided by DOR and ALC, up to 55,000 servers and approximately 5,000 licensed establishments in South Carolina will require certification. ALC estimates that if a small percentage of servers or providers are issued violations that revoke or suspend their certification or program, the number of contested cases created by this bill may more than double the current contested case caseload. In FY 2021-22, 231 total requests for a contested case hearing were filed with the Court. If 1 percent of all certified servers file a request for a contested case hearing with the Court after suspension or revocation of their alcohol server certificate, this may result in up to 550 additional court filings.

 

ALC indicates that this bill will increase the agency's expenses by an amount up to $537,000 in FY 2023-24. Of this amount, $475,000 is for 3.0 FTEs to manage the increase in the Court's caseload. The remaining $62,000 is for one-time equipment and furniture costs. ALC further indicates that additional office space may be needed, which will result in an additional recurring cost for rent.  However, this cost will depend upon the availability and location of the office space. ALC reports that the agency will request a General Fund appropriation increase to fund the expenses.

 

Judicial. This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. This may increase the number of cases in magistrate and municipal courts. Since the bill creates a new cause of action, there are no data to estimate the number of cases that may be initiated as a result of the bill. However, Judicial indicates that they will use existing General Fund appropriations to manage any modifications in caseloads. Therefore, this bill will have no expenditure impact on Judicial. This section of the impact statement has been updated to include a response from Judicial.

 

State Revenue

This bill allows DOR to charge fees for server certificates and program providers. In addition, the act imposes fines on servers and licensees and permittees for violations of the act. All fees and fines imposed pursuant to the act will be deposited into a revolving fund named the Responsible Alcohol Server Training Fund to assist with the costs of implementation and enforcement of the act.

This bill also allows DOR to charge providers of alcohol server training programs an annual fee not to exceed $500. For this analysis, we assume that DOR will charge the full $500 fee for all providers except state agencies, which are exempt from the provider fee. Based upon information published by DOR, there are currently eight approved providers for alcohol server training programs, with only one provider, DAODAS, being a state agency. In addition, DAODAS developed an alcohol server education curriculum know as PREP, which is delivered through thirty-two county providers. It is unclear whether the county providers will be subject to the provider fee. If the thirty-two county providers are exempt from paying the $500 provider fee, this section of the bill will increase Other Funds revenue by $3,500 annually beginning in FY 2023-24 for the seven private sector providers. If the thirty-two county providers, in addition to the seven private sector program providers, are required to pay the $500 provider fee, this section of the bill will increase Other Funds revenue by $19,500 annually beginning in FY 2023-24.

 

In addition, DOR may charge individuals a fee in an amount not to exceed $15 for the issuance and renewal of alcohol server certificates. The alcohol server certificates are valid for a period of three years. Based upon information provided by DOR and ALC, up to 55,000 alcohol servers and 5,000 licensed establishments in South Carolina will require certification. For this analysis, we assume that DOR will charge the maximum $15 fee per applicant. Therefore, this portion of the bill will increase Other Funds revenue by up to $825,000 in FY 2023-24 and every third year thereafter. We anticipate that DOR may also experience an increase in Other Funds revenue in the years between the three-year certification period as new servers enter the workforce and are required to obtain certification. However, data regarding the number of new servers entering the workforce each year are not currently available.

Also, DOR may impose administrative fines, not to exceed $350, against any person that violates the provisions of the training act. Since the bill creates new administrative fines for which there are no historical data, the revenue impact on Other Funds for this portion of the bill is undetermined.

This bill may also increase ALC Other Funds revenue due to an increase in filing fees collected in court. Currently, a request for a contested case hearing regarding an alcoholic beverage license violation must be accompanied by a non-refundable filing fee of $150. If 1 percent of all certified servers file a request for a contested case hearing with the Court after suspension or revocation of their alcohol server certificate, this may result in up to 550 additional court filings, which will increase ALC Other Funds revenue by approximately $82,500. However, the amount of the increase will depend upon the number of requests for a contested case hearing filed with the Court. Due to a lack of historical data, the overall Other Funds revenue impact from filing fees for a contested case hearing is therefore undetermined.

 

This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. This may result in an increase in the fines and fees collected in court. Court fines and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates this bill may result in an undetermined impact increase in General Fund and Other Funds revenue from fines and fees collections in court.

 

This section of the impact statement has been updated to include a response from DOR.

 

Local Expenditure

This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. The increase in law enforcement or detention in local facilities is dependent on the number of violations. Because the bill creates a new violation for which there are no historical data, the increase in expenditures for local governments is undetermined.

 

Local Revenue

This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. This may result in an increase in the fines and fees collected in court. Court fines and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates this bill may result in an undetermined increase in local revenue from fines and fees collections in court.

 

The bill also allows providers to charge individuals a maximum of $15 for a training program. Local alcohol and drug abuse authorities currently collect fees ranging from $0 to $50 for the PREP program to support local material distribution, space rental, and FTE training expenses.  Lowering these fees may result in a decrease in revenue for local provider. However, providers may also see revenues increase as more individual servers will be required to participate in a training program. Therefore, RFA anticipates this bill will have an undetermined revenue impact on local authorities.

 

Introduced on January 10, 2023

State Expenditure

This bill enacts the "Responsible Alcohol Server Training Act", which provides for the establishment, implementation, and enforcement of a mandatory alcohol server training and education program and makes related amendments to other beer, wine, and alcoholic liquor laws. The bill requires an individual employed as an alcohol server or manager on permitted or licensed premises to obtain an alcohol server certificate within sixty calendar days of employment. This requirement extends to the permittee or licensee of the premises if they function as a manager or server on the premises.

 

To obtain an alcohol server certificate pursuant to this bill, an individual must complete an approved alcohol server training program. The bill authorizes DOR, in collaboration with DAODAS and SLED, to approve the alcohol server training programs offered by providers and provides guidance regarding the curricula. DOR must issue an alcohol server certificate valid for three years to each applicant who completes an approved responsible alcohol server education program or recertification program.

 

Department of Revenue. This bill authorizes DOR, in collaboration with SLED and DAODAS, to approve and regulate alcohol server training programs. DOR, along with SLED, will be responsible for promulgating regulations and enforcing the provisions of the act. DOR will also be responsible for managing the Responsible Alcohol Server Training Fund, bringing administrative actions for violations, and processing applications and issuing certificates for alcohol servers. Based upon information provided by DOR, DAODAS, and ALC, approximately 32,000 servers will require certification. This bill allows the training fund to be used for these expenditures associated with implementation and enforcement of the provisions of this chapter. The overall expenditure impact of this bill on DOR is pending, contingent upon a response.

 

Department of Alcohol and Other Drug Abuse Services. Currently, DAODAS approves alcohol retailer and server education programs as required by state law. There are currently seven approved program providers in the private sector. In addition, DAODAS developed a server education curriculum known as the Palmetto Retailers Education Program (PREP). PREP is delivered through a community-based system of thirty-two county alcohol and drug abuse authorities. DAODAS provides resources to the local alcohol and drug abuse authorities, to include training manuals, state affiliated trainers, marketing pamphlets, certificates, and a percentage of an agency FTE to support the delivery of PREP. The costs to DAODAS are approximately $10,000 annually and are funded through the federal Substance Abuse Prevention and Treatment Block Grant (SAPT). Collectively, over 858 individuals attended the PREP Server Education class through local alcohol and drug abuse providers in FY 2021-22.

 

Based upon information provided by DOR, DAODAS, and ALC, there are approximately 32,000 servers in South Carolina that will require training. Any increase in costs as a result of increased demand for the course will be managed within DAODAS' Federal Funds.

 

The bill allows DOR to charge program providers an annual fee of up to $500 beginning in FY 2023-24. As a state agency, DAODAS is exempt from paying the provider fee. However, it is unclear whether the provider fee will apply to the thirty-two county alcohol and drug abuse authorities that deliver the PREP training. If the county authorities are subject to the provider fee, the department indicates it may need to subsidize the fee, which would increase expenditures for DAODAS by as much as $16,000 annually beginning in FY 2023-24. Any increase in expenditures would be charged to and managed within the federal SAPT block grant. The bill will have no expenditure impact on the General Fund or Other Funds for DAODAS.

 

South Carolina Law Enforcement Division. SLED will be required to collaborate with other departments for the approval and regulation of training programs, promulgation of regulations, and enforcement of the act. This bill may increase General Fund expenses of SLED by approximately $2,700 to review and approve alcohol server training programs. However, SLED anticipates these costs can be managed within existing appropriations.

 

Administrative Law Court. Requests for contested case hearings arising under the Alcohol Server Training Program will be filed with the ALC. According to ALC, contested cases may arise if an applicant seeking to run an alcohol server training program is denied approval;

if an alcohol server training program has its authorization suspended or revoked; if a server has his/her alcohol server certificate suspended or revoked; and if a licensee for on-premises consumption allows its liability policy to lapse or terminate. A contested case hearing for a licensee for on-premises consumption that allows its liability policy to lapse or terminate requires an expedited hearing and decision. ALC anticipates that there will be an increase in the number of current contested case hearings regarding alcohol permits and licenses issued by DOR. This bill will apply to an estimated 32,000 servers in the state and approximately 5,000 licensed establishments. ALC estimates that if a small percentage of servers or providers are issued violations that revoke or suspend their certification or program, the number of contested cases created by this bill may more than double the current contested case caseload. In FY 2021-22, 231 total requests for a contested case hearing were filed with the Court. ALC estimates that if 1 percent of all certified servers file a request for a contested case hearing with the Court after suspension or revocation of their alcohol server certificate, this will result in 320 additional court filings.

 

ALC indicates that this bill will increase the agency's expenses by an amount up to $537,000 in FY 2023-24. Of this amount, $475,000 is for 3.0 FTEs to manage the increase in the Court's caseload. The remaining $62,000 is for one-time equipment and furniture costs. ALC further indicates that additional office space may be needed, which will result in an additional recurring cost for rent.  However, this cost will depend upon the availability and location of the office space. ALC reports that the agency will request a General Fund appropriation increase to fund the expenses.

 

Judicial. This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. This may increase the number of cases in magistrate and municipal courts. Since the bill creates a new cause of action, there are no data to estimate the number of cases that may be initiated as a result of the bill. However, based on previous responses to similar legislation, RFA anticipates Judicial will use existing General Fund appropriations to manage any modifications in caseloads. Therefore, we do not expect that this bill will have an expenditure impact on Judicial. We will update this impact statement if the agency provides a different response.

 

State Revenue

This bill allows DOR to charge fees for server certificates and program providers. In addition, the act imposes fines on servers and licensees and permittees for violations of the act. All fees and fines imposed pursuant to the act will be deposited into a revolving fund named the Responsible Alcohol Server Training Fund to assist with the costs of implementation and enforcement of the act.

This bill also allows DOR to charge providers of alcohol server training programs an annual fee not to exceed $500. For this analysis, we assume that DOR will charge the full $500 fee for all providers except state agencies, which are exempt from the provider fee. Based upon information published by DOR, there are currently eight approved providers for alcohol server training programs, with only one provider, DAODAS, being a state agency. In addition, DAODAS developed an alcohol server education curriculum know as PREP, which is delivered through thirty-two county providers. It is unclear whether the county providers will be subject to the provider fee. If the thirty-two county providers are exempt from paying the $500 provider fee, this section of the bill will increase Other Funds revenue by $3,500 annually beginning in FY 2023-24 for the seven private sector providers. If the thirty-two county providers, in addition to the seven private sector program providers, are required to pay the $500 provider fee, this section of the bill will increase Other Funds revenue by $19,500 annually beginning in FY 2023-24.

 

In addition, DOR may charge individuals a fee in an amount not to exceed $15 for the issuance and renewal of alcohol server certificates. The alcohol server certificates are valid for a period of three years. Based upon information provided by DOR, DAODAS, and ALC, there are approximately 32,000 alcohol servers and 5,000 licensed establishments in South Carolina that will require certification. For this analysis, we assume that DOR will charge the maximum $15 fee per applicant. Therefore, this portion of the bill will increase Other Funds revenue by $480,000 in FY 2023-24 and every third year thereafter. We anticipate that DOR may also experience an increase in Other Funds revenue in the years between the three-year certification period as new servers enter the workforce and are required to obtain certification. However, data regarding the number of new servers entering the workforce each year are not currently available.

Also, DOR may impose administrative fines, not to exceed $350, against any person that violates the provisions of the training act. Since the bill creates new administrative fines for which there are no historical data, the revenue impact on Other Funds for this portion of the bill is undetermined.

This bill may also increase ALC Other Funds revenue due to an increase in filing fees collected in court. Currently, a request for a contested case hearing regarding an alcoholic beverage license violation must be accompanied by a non-refundable filing fee of $150. ALC estimates that if 1 percent of all certified servers file a request for a contested case hearing with the Court after suspension or revocation of their alcohol server certificate, this will result in 320 additional court filings, increase ALC Other Funds revenue by approximately $48,000. However, the amount of the increase will depend upon the number of requests for a contested case hearing filed with the Court. Due to a lack of historical data, the overall Other Funds revenue impact from filing fees for a contested case hearing is therefore undetermined.

 

This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. This may result in an increase in the fines and fees collected in court. Court fines and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates this bill may result in an undetermined impact increase in General Fund and Other Funds revenue from fines and fees collections in court.

 

Local Expenditure

This bill creates a new offense with potential fines of up to $500 or imprisonment for no more than thirty days, or both for a holder of an alcohol server permit who knowingly sells or provides alcohol to individuals under twenty-one years of age or in an intoxicated condition. The increase in law enforcement or detention in local facilities is dependent on the number of violations. Because the bill creates a new violation for which there are no historical data, the increase in expenditures for local governments is undetermined.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

to amend the south carolina code OF LAWS by ENACTing THE "RESPONSIBLE ALCOHOL SERVER TRAINING ACT"; by AMENDing TITLE 61, RELATING TO ALCOHOL AND ALCOHOLIC BEVERAGES, BY ADDING CHAPTER 3, TO PROVIDE FOR THE ESTABLISHMENT, IMPLEMENTATION, AND ENFORCEMENT OF A MANDATORY ALCOHOL SERVER TRAINING AND EDUCATION PROGRAM, TO REQUIRE SERVERS OF ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION IN LICENSED OR PERMITTED BUSINESSES TO OBTAIN ALCOHOL SERVER CERTIFICATES, TO PROVIDE GUIDANCE FOR THE CURRICULA OF THE TRAINING PROGRAMS, TO PROVIDE FOR THE DEPARTMENT OF REVENUE TO BE RESPONSIBLE FOR APPROVAL OF THE TRAINING PROGRAMS AND IMPLEMENTATION OF THE ALCOHOL SERVER CERTIFICATES, TO REQUIRE FEES FROM PROVIDERS OF TRAINING PROGRAMS AND FROM APPLICANTS FOR ALCOHOL SERVER CERTIFICATES TO COVER THE COSTS OF THE MANDATORY TRAINING AND ENFORCEMENT, TO REQUIRE COORDINATION AMONG THE DEPARTMENT OF REVENUE, THE STATE LAW ENFORCEMENT DIVISION, AND OTHER STATE AND LOCAL AGENCIES FOR THE IMPLEMENTATION AND ENFORCEMENT OF THESE PROVISIONS, AND TO PROVIDE FOR FINES AND PENALTIES FOR VIOLATIONS OF THESE PROVISIONS; by AMENDing SECTION 61-2-60, RELATING TO THE PROMULGATION OF REGULATIONS, TO AUTHORIZE THE DEPARTMENT OF REVENUE TO PROMULGATE REGULATIONS GOVERNING THE DEVELOPMENT, IMPLEMENTATION, EDUCATION, AND ENFORCEMENT OF RESPONSIBLE ALCOHOL SERVER TRAINING PROVISIONS; AND by AMENDing SECTION 61-2-145, Section 61-4-50, SECTION 61-4-90(A), SECTION 61-4-580, SECTION 61-6-2220, SECTION 61-6-4070(A), AND SECTION 61-6-4080, ALL RELATING TO THE UNLAWFUL SALE OF ALCOHOL, TO PROVIDE FOR FINES AND PENALTIES FOR VIOLATIONS OF CERTAIN PROVISIONS.

 

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

 

SECTION 1.  (A) It is determined and declared as a matter of legislative findings that:

       (1) service and consumption of alcoholic beverages in an irresponsible manner has a significant adverse impact on highway safety, personal health, and individual welfare and is not in the best interests of the residents of South Carolina;

       (2) responsible alcohol server training programs have proven to be an effective means of addressing, in a positive and constructive manner, inappropriate service of alcoholic beverages by permitted and licensed establishments;

       (3) any responsible alcohol server training program should be provided to licensees, permittees, and their employees at a reasonable cost so as to encourage their full support and participation while creating an incentive for the program to be taken seriously; and

       (4) the establishment of a responsible alcohol server training program will promote highway safety and the public health and welfare of the residents of South Carolina.

    (B) It is therefore declared to be the policy of this State to promote the safety, health, and welfare of its residents by the establishment and operation of a responsible alcohol server training program pursuant to the provisions of Chapter 3, Title 61.

 

SECTION 2.  This act shall be referred to as the "Responsible Alcohol Server Training Act".

 

SECTION 3.  Title 61 of the S.C. Code is amended by adding:

 

CHAPTER 3

 

Responsible Alcohol Server Training Act

 

    Section 61-3-00. For the purposes of this chapter, the following definitions apply:

       (1) "Alcohol" means beer, wine, alcoholic liquors, or any other type of alcoholic beverage that contains any amount of alcohol and is used as a beverage for human consumption.

       (2) "Alcohol server" means an individual who sells, serves, transfers, or dispenses alcohol for on-premises consumption at permitted or licensed premises and may include a permittee, licensee, manager, or other employee of a permittee or licensee. "Alcohol server" shall not include an individual employed or volunteering on a temporary basis for a one-time special event, such as a banquet, or at an event that has a temporary permit to sell beer, wine, or alcoholic liquors by the drink and shall not include an individual transferring alcohol from one location to another as a distributor, wholesaler, or as otherwise lawfully authorized to transfer alcohol from one location to another by this title; and shall not include an individual who cannot lawfully serve or deliver alcohol pursuant to Sections 61-4-90(D) and 61-6-2200.

       (3) "Alcohol server certificate" means an authorization issued by the department for an individual to be employed or engaged as an alcohol server for on-premises consumption.

       (4) "DAODAS" means the South Carolina Department of Alcohol and Other Drug Abuse Services.

       (5) "Department" means the South Carolina Department of Revenue.

       (6) "Division" means the South Carolina Law Enforcement Division.

       (7) "Employee" means a person who is employed for at least ten hours a week by a permittee or a licensee.

       (8) "Licensee" means a person issued a license by the department pursuant to Title 61 to sell, serve, transfer, or dispense alcoholic liquors or alcoholic liquor by the drink for on-premises consumption.

       (9) "Manager" means an individual employed by a permittee or licensee who manages, directs, or controls the sale, service, transfer, or dispensing of alcoholic beverages for on-premises consumption at the permitted or licensed premises.

       (10) "Permittee" means a person issued a permit by the department pursuant to Title 61 to sell, serve, transfer, or dispense beer, wine, ale, porter, or other malted beverages for on-premises consumption.

       (11) "Program" means an alcohol server training and education course and examination approved by the department with input from DAODAS and the division that is administered by authorized providers.

       (12) "Provider" means an individual, partnership, corporation, or other legal entity authorized by the department that offers and administers a program.

 

    Section 61-3-110.  (A) An individual shall not be employed as an alcohol server or a manager on permitted or licensed premises unless and until that individual obtains, within sixty calendar days of employment, an alcohol server certificate pursuant to the provisions of this chapter. If a permittee or licensee functions or is employed as an alcohol server or manager on the permitted or licensed premises, then the permittee or licensee must also complete training on responsible alcohol server training and obtain an alcohol server certificate pursuant to the provisions of this chapter. An alcohol server shall not be mentally or physically impaired by alcohol, drugs, or controlled substances while serving alcohol.

    (B) Each permittee or licensee shall maintain at all times on its permitted or licensed premises copies of the alcohol server certificates of the permittee or licensee, if applicable, and the alcohol server certificates of each manager and each alcohol server then employed by the permittee or licensee. Copies of the alcohol server certificate must be made available, upon request, to the department, the division, or the agents and employees of each. For the purposes of enforcement of the provisions of this chapter, a permittee or licensee shall also make available to the department or the division, when requested, the hire date of an alcohol server.

    (C) Failure to produce a copy of an alcohol server certificate when an alcohol server has been employed for sixty calendar days is prima facie evidence that an alcohol server certificate has not been issued and shall subject the permittee or licensee to fines and penalties in accordance with this chapter.

 

    Section 61-3-120.  (A)(1) The department, in collaboration with DAODAS and the division, is authorized to approve alcohol server training programs, based on best evidence practice standards, offered by providers. A program that has not received approval within ninety days from submission shall be considered denied. A provider may appeal denial pursuant to Section 61-2-260 and the South Carolina Administrative Procedures Act.

       (2) A provider shall not charge an individual more than thirty-five dollars for a training program.

    (B) The curricula of each program must include the following subjects:

       (1) state laws and regulations pertaining to:

           (a) the sale and service of alcoholic beverages;

           (b) the permitting and licensing of sellers of alcoholic beverages;

           (c) impaired driving or driving under the influence of alcohol or drugs;

           (d) liquor liability issues;

           (e) the carrying of concealed weapons by authorized permit holders into businesses selling and serving alcoholic beverages; and

           (f) life consequences, such as the loss of education scholarships, to minors relating to the unlawful use, transfer, or sale of alcoholic beverages;

       (2) the effect that alcohol has on the body and human behavior, including, but not limited to, its effect on an individual's ability to operate a motor vehicle when intoxicated;

       (3) information on blood alcohol concentration and factors that change or alter blood alcohol concentration;

       (4) the effect that alcohol has on an individual when taken in combination with commonly used prescription or nonprescription drugs or with illegal drugs;

       (5) information on recognizing the signs of intoxication and methods for preventing intoxication;

       (6) methods of recognizing problem drinkers and techniques for intervening with and refusing to serve problem drinkers;

       (7) methods of identifying and refusing to serve or sell alcoholic beverages to individuals under twenty-one years of age and intoxicated individuals;

       (8) methods for properly and effectively checking the identification of an individual, for identifying illegal identification, and for handling situations involving individuals who have provided illegal identification; and

       (9) other topics related to alcohol server education and training designated by the department, in collaboration with DAODAS and the division, to be included.

    (C) The department shall approve only online or classroom designed training programs that meet each of the following criteria:

       (1) A program must cover the content specified in subsection (B). If a program does not include law enforcement information in its general course material, then specific South Carolina law enforcement information must be provided in a South Carolina training supplement document.

       (2) The content in a program must clearly identify and focus on the knowledge, skills, and abilities needed to responsibly serve alcoholic beverages and must be developed using best practices in instructional design and exam development to ensure that the program is fair and legally defensible.

       (3) A program may be offered online or through classroom instruction.

       (4) Classroom training must be at least four hours, be available in English and Spanish, and include a test.

       (5) Online or computer-based training programs shall use linear navigation that requires the completion of a module before the course proceeds to the next module, with no content omitted; be interactive; have audio for content; and include a test.

       (6) Training and testing shall be conducted by any means available, including, but not limited to, online, computer, classroom, and live trainers. All tests must be monitored by a manager or proctor. A passing grade for a test, as provided by the program, is required.

       (7) Training certificates are issued by the provider only after training is complete and a test has been passed successfully.

       (8) Within ten business days after a training is completed, each provider must give to the department a report of all individuals who have successfully completed the training and testing. The provider must also maintain these records for at least five years following the end of the training program for purposes of verifying certification validity by the department or the division.

    (D) The department, in collaboration with DAODAS and the division, may suspend or revoke the authorization of a provider that the department determines has violated the provisions of this chapter. If a provider's authorization is suspended or revoked, then that provider must cease operations in this State immediately and refund any money paid to it by individuals enrolled in that provider's program at the time of the suspension or revocation.

 

    Section 61-3-130.  (A) The provider of a program that is authorized by the department shall pay a fee, in an amount to be determined by the department, not to exceed five hundred dollars per year, renewable each year. State agency providers are exempt from payment. Each fee shall be deposited into the Responsible Alcohol Server Training Fund to assist with the costs associated with implementation and enforcement of the provisions of this chapter.

    (B) The Responsible Alcohol Server Training Fund is a revolving fund, and no funds deposited therein shall revert to the general fund of the state treasury.

    (C) On or before the second Tuesday of each year, the department, with the assistance of the division, shall make a report of all income and expenditures made from the Responsible Alcohol Server Training Fund as of December thirty-first of the previous year. A copy of the report shall be given to the Governor, the Speaker of the House of Representatives, and the President of the Senate; posted on the websites of the department and the division; and recorded in the journals of each body of the General Assembly at the beginning of each legislative year.

 

    Section 61-3-140.  (A)(1) The department shall issue an alcohol server certificate to each applicant who completes an approved program or a recertification program and who provides other information as may be required by the department in an application form that is available on the department's website. A person must apply for an alcohol server certificate within six months of completing a program. The department, if circumstances warrant the issuance of a temporary alcohol server certificate, may issue a temporary alcohol server certificate that is valid for a period of not more than thirty calendar days.

       (2) The department, in collaboration with DAODAS and the division, may issue an alcohol server certificate to an individual from out of the State who applies for an alcohol server certificate if the individual has an alcohol server certificate from a nationally recognized or comparable, state-recognized alcohol server certification program that the department, DAODAS, and the division find meets or exceeds the programs offered in this State.

    (B) Alcohol server certificates shall not be issued to graduates of programs that are not approved by the department.

    (C) An alcohol server certificate is the property of the individual to whom it is issued and is transferrable among employers.

    (D) Alcohol server certificates are valid for a period of three years from the date that the alcohol server certificate was issued. After the three-year period, a new or recertified alcohol server certificate must be obtained pursuant to the provisions of this chapter in order for the holder to be employed as a server.

    (E) Upon expiration of an alcohol server certificate, the individual to whom the alcohol server certificate was issued may obtain recertification in accordance with regulations promulgated by the department and approved by the General Assembly.

    (F) The department shall charge a fee, not to exceed fifteen dollars, for the issuance and renewal of an alcohol server certificate. These fees shall be deposited in the Responsible Alcohol Server Training Fund.

 

    Section 61-3-150.  (A) In addition to civil and criminal penalties available for violations of the provisions of Title 61, an alcohol server who violates the provisions of this chapter, upon a final administrative determination:

       (1) for a first offense, may be fined not more than fifty dollars, have his alcohol server certificate suspended for a period not to exceed fifteen days, or both;

       (2) for a second offense not related to the first offense, may be fined not more than two hundred dollars, have his alcohol server certificate suspended for a period not to exceed thirty days, or both; and

       (3) for a third or subsequent offense not related to earlier offenses, may be fined not more than three hundred fifty dollars, have his alcohol server certificate suspended not more than six months, or both.

    (B) Fines collected pursuant to this chapter shall be deposited in the Responsible Alcohol Server Training Fund.

    (C) The department may issue an administrative order to suspend or revoke the certificate of an alcohol server who repeatedly violates the provisions of this chapter within a three-year period of time. In lieu of suspension or revocation of an alcohol server certificate, the department may require that the individual who has violated the provisions of this chapter attend and successfully complete either the full program or a recertification program.

    (D) An individual whose alcohol server certificate is suspended or revoked is prohibited from serving in a South Carolina business permitted or licensed pursuant to Title 61 for such period as stated in the suspension or revocation order and until the individual obtains a new alcohol server certificate pursuant to the provisions of this chapter. The department shall make the information on suspended or revoked alcohol server certificates accessible for licensees and permittees to verify when necessary.

    (E) The provisions of this chapter shall not be interpreted to waive the liability of a permittee or licensee that may arise pursuant to the provisions of Title 61.

 

    Section 61-3-160.  As a requirement for application or renewal of a permit or license for on-premises consumption under Chapter 4, Title 61 or Chapter 6, Title 61, a permittee or licensee for on-premises consumption must submit to the department proof that the permittee or licensee, if applicable, and each manager and alcohol server employed by the permittee or licensee during the upcoming or prior permit or license period have or have held valid alcohol server certificates at all times that alcoholic beverages were sold, served, or dispensed.

 

    Section 61-3-170.  The division and the department are responsible for enforcement of the provisions of this chapter. The department is responsible for bringing administrative actions for violations of the provisions of this chapter or related regulations, and those actions shall proceed according to the provisions of Section 61 2 260 and the South Carolina Administrative Procedures Act.

 

SECTION 4.  Section 61-2-60 of the S.C. Code is amended by adding an appropriately numbered new item to read:

 

    (   ) regulations governing the development, implementation, education, and enforcement of responsible alcohol server training provisions.

 

SECTION 5.  Section 61-2-145 of the S.C. Code is amended to read:

 

    Section 61-2-145.  (A) In addition to all other requirements, a person licensed or permitted to sell alcoholic beverages for on-premises consumption, which remains open after five o'clock p.m. to sell alcoholic beverages for on-premises consumption, is required to maintain a liquor liability insurance policy or a general liability insurance policy with a liquor liability endorsement for a total coverage of at least one million dollars during the period of the biennial permit or license. Failure The department must automatically suspend the permit or license for any person who fails to maintain this coverage constitutes grounds for suspension or revocation of the permit or license.

    (B) The department shall add this requirement to all applications and renewals for biennial permits or licenses to sell alcoholic beverages for on-premises consumption, in which the permittees and licensees remain open and sell alcoholic beverages for on-premises consumption after five o'clock p.m. Each applicant or person renewing its license or permit, to whom this requirement applies, shall provide the department with documentation of a liquor liability insurance policy or a general liability insurance policy with a liquor liability endorsement in the required amounts.

    (C) Each insurer writing liquor liability insurance policies or general liability insurance policies with a liquor liability endorsement to a person licensed or permitted to sell alcoholic beverages for on-premises consumption, in which the person so licensed or permitted remains open to sell alcoholic beverages for on-premises consumption after five o'clock p.m., must notify the department in a manner prescribed by department regulation of the lapse or termination of the liquor liability insurance policy or the general liability insurance policy with a liquor liability endorsement. Upon notification of the permit or license holder's lapse or termination of the liquor liability insurance policy or general liability insurance policy, the department must automatically suspend the permit or license theretofore issued.

    (D)  Notwithstanding any other provision of law, when the department has suspended the permit or license pursuant to subsection (A) or (C), the permittee or licensee may request an expedited contested case hearing with the Administrative Law Court to review the department's decision. The expedited hearing must be held within thirty days from the request, and the judge must issue an order no later than fifteen business days after the hearing is concluded.

    (D)(E) For the purposes of this section, the term "alcoholic beverages" means beer, wine, alcoholic liquors, and alcoholic liquor by the drink as defined in Chapter 4, Title 61, and Chapter 6, Title 61.

 

SECTION 6.  Section 61-4-50 of the S.C. Code is amended to read:

 

    Section 61-4-50. (A) It is unlawful for a person to sell beer, ale, porter, wine, or other similar malt or fermented beverage to a person under twenty-one years of age. A person who makes a sale in violation of this section, upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

    (B) Failure of a person to require identification to verify a person's age is prima facie evidence of the violation of this section.

    (C) A person who violates the provisions of this section who does not hold an alcohol server certificate also is required to successfully complete a DAODAS approved merchant alcohol enforcement education program. The program must be a minimum of two hours and the cost to the person may not exceed fifty thirty-five dollars. A person who violates the provisions of this section who does hold an alcohol server certificate, upon conviction, is required to complete alcohol server training pursuant to Chapter 3, Title 61 and to obtain a new alcohol server certificate.

 

SECTION 7.  Section 61-4-90(A) of the S.C. Code is amended to read:

 

    (A) It is unlawful for a person to transfer or give to a person under the age of twenty-one years for the purpose of consumption of beer or wine in the State, unless the person under the age of twenty-one is recruited and authorized by a law enforcement agency to test a person's compliance with laws relating to the unlawful transfer or sale of beer and wine to a minor. A person who violates this section is guilty of a misdemeanor and, upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

 

SECTION 8.  Section 61-4-580 of the S.C. Code is amended to read:

 

    Section 61-4-580.  (A) No holder of a permit authorizing the sale of beer or wine or a servant, agent, or employee of the permittee may knowingly commit any of the following acts upon the licensed premises covered by the holder's permit:

       (1) sell beer or wine to a person under twenty-one years of age;

       (2) sell beer or wine to an intoxicated person;

       (3) permit gambling or games of chance except game promotions including contests, games of chance, or sweepstakes in which the elements of chance and prize are present and which comply with the following:

           (a) the game promotion is conducted or offered in connection with the sale, promotion, or advertisement of a consumer product or service, or to enhance the brand or image of a supplier of consumer products or services;

           (b) no purchase payment, entry fee, or proof of purchase is required as a condition of entering the game promotion or receiving a prize;

           (c) all materials advertising the game promotion clearly disclose that no purchase or payment is necessary to enter and provide details on the free method of participation; and

           (d) this subsection is not an exception or limitation to Section 12-21-2710 or other provisions of the South Carolina Code of Laws in which gambling or games of chance are unlawful and prohibited;

       (4) permit lewd, immoral, or improper entertainment, conduct, or practices. This includes, but is not limited to, entertainment, conduct, or practices where a person is in a state of undress so as to expose the human male or female genitals, pubic area, or buttocks cavity with less than a full opaque covering;

       (5) permit any act, the commission of which tends to create a public nuisance or which constitutes a crime under the laws of this State;

       (6) sell, offer for sale, or possess any beverage or alcoholic liquors the sale or possession of which is prohibited on the licensed premises under the law of this State;

       (7) conduct, operate, organize, promote, advertise, run, or participate in a "drinking contest" or "drinking game". For purposes of this item, "drinking contest" or "drinking game" includes, but is not limited to, a contest, game, event, or other endeavor which encourages or promotes the consumption of beer or wine by participants at extraordinary speed or in increased quantities or in more potent form. "Drinking contest" or "drinking game" does not include a contest, game, event, or endeavor in which beer or wine is not used or consumed by participants as part of the contest, game, event, or endeavor, but instead is used solely as a reward or prize. Selling beer or wine in the regular course of business is not considered a violation of this section; or

    (B) Selling beer or wine in the regular course of business is not considered a violation of this section. a A violation of any provision of this section is a ground for the revocation or suspension of the holder's permit to sell beer or wine.

    (C) A permittee, servant, agent, or employee of the permittee who holds an alcohol server permit and violates the provisions of items (A)(1) or (A)(2), upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

 

SECTION 9.  Section 61-6-2220 of the S.C. Code is amended to read:

 

    Section 61-6-2220. A person or establishment licensed to sell alcoholic liquors or liquor by the drink pursuant to this article may shall not sell these beverages to persons in an intoxicated condition; these sales are considered violations of the provisions thereof of Chapter 6, Title 61 and subject to the penalties contained herein. A person who makes a sale in violation of this section, upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

 

SECTION 10. Section 61-6-4070(A) of the S.C. Code is amended to read:

 

    (A) It is unlawful for a person to transfer or give to a person under the age of twenty-one years for the purpose of consumption of alcoholic liquors in the State unless the person under the age of twenty-one is recruited and authorized by a law enforcement agency to test a person's compliance with laws relating to the unlawful transfer or sale of alcoholic liquors to a minor. A person who violates this section is guilty of a misdemeanor and, upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

 

SECTION 11. Section 61-6-4080 of the S.C. Code is amended to read:

 

    Section 61-6-4080. (A) A person engaged in the sale of alcoholic liquors who knowingly sells the alcoholic liquors to a person under the age of twenty-one is guilty of a misdemeanor and, upon conviction:

       (1) for a first offense, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than fifteen days; and

       (2) for a second or subsequent offense, must be fined not less than four hundred dollars nor more than five hundred dollars or imprisoned not more than thirty days, or both. In addition to criminal penalties, a person convicted who holds an alcohol server certificate pursuant to Chapter 3, Title 61 must have his alcohol server certificate suspended for not more than thirty days for a second offense and not more than six months for a third or subsequent offense.

    (B) Failure of a person to require identification to verify a person's age is prima facie evidence of a violation of this section.

    (C) A person who violates the provisions of this section who does not hold an alcohol server certificate also is required to successfully complete a DAODAS approved merchant alcohol enforcement education program. The program must be a minimum of two hours and the cost to the person may not exceed fifty thirty-five dollars. A person who violates the provisions of this section who does hold an alcohol server certificate, upon conviction, is required to complete alcohol server training pursuant to Chapter 3, Title 61 and to obtain a new alcohol server certificate.

 

SECTION 12. If any section, subsection, paragraph, item, subitem, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, then such holding shall not affect the constitutionality or validity of the remaining portions of the act, the General Assembly hereby declaring that it would have passed each and every section, subsection, item, subitem, 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 13. The repeal or amendment by this act of any law, whether temporary, permanent, civil, or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon or alter, discharge, release, or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

 

SECTION 14. The State, through the South Carolina Department of Alcohol and Other Drug Abuse Services, shall provide alcohol server training at minimal costs to any participant for the first three years after the effective date of this act. The alcohol education training shall meet or exceed the requirements of Section 61-3-120, as added by this act, and shall be provided quarterly at no fewer than seven locations across the State. An individual who completes this training successfully is eligible to apply for an alcohol server certificate pursuant to the requirements of Section 61-3-140, as added by this act.

 

SECTION 15. The provisions of Chapter 3, Title 61 and SECTIONS 4, 5, 12, and 13 take effect upon signature of the Governor, but the implementation and enforcement of the provisions of Chapter 3, Title 61 and the provisions of SECTIONS 6, 7, 8, 9, 10, 11, and 14 become effective one year after the signature of the Governor. A person applying for a new permit or license under Title 61 one year after the signature of the Governor must comply with all provisions of this act at the time of the application. A person renewing a permit or license under Title 61 one year after the signature of the Governor must comply with the provisions of this act at the time of renewal.

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