Indicates Matter Stricken

Indicates New Matter

Amended

May 12, 2026

H. 4000

Introduced by Reps. M. M. Smith, Stavrinakis, Cox, Davis, Wetmore, Bustos, Teeple, Holman, Spann-Wilder, Kirby, Robbins, Landing, Hartnett, Brewer, Gilliard, Gatch, J. Moore, T. Moore, Murphy, W. Newton, Duncan and Bauer

S. Printed 5/12/26--S.

Read the first time May 6, 2025

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 61-2-100, RELATING TO THE PERSONS ENTITLED TO BE LICENSEES OR PERMITTEES, SO AS TO ADD PERFORMING ARTS AND CONVENTION COMPLEXES; BY AMENDING SECTION 61-4-515, RELATING TO THE PERMIT FOR PURCHASE AND SALE FOR ON-PREMISES CONSUMPTION, SO AS TO ADD PERFORMING ARTS AND CONVENTION COMPLEXES; AND BY AMENDING SECTION 61-6-2016, RELATING TO THE BIENNIAL LICENSE FOR PURCHASE AND SALE FOR ON-PREMISES CONSUMPTION, SO AS TO ADD PERFORMING ARTS AND CONVENTION COMPLEXES.

   Amend Title To Conform

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

SECTION 1.   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, except for a 501(c)(3) nonprofit corporation or a licensee or permittee engaging in a single event for which a beer and wine special event license or a liquor special event permit is obtained, is required to maintain a liquor liability insurance policy or a general liability insurance policy with a liquor liability endorsement with an annual aggregate limit of at least one million dollars during the period of the biennial permit or license, unless the person licensed or permitted to sell alcoholic beverages qualifies under the terms of a liquor liability risk mitigation program pursuant to subsection (E). A 501(c)(3) nonprofit corporation 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 with an annual aggregate limit of at least three hundred thousand dollars during the period of the permit or license. A licensee or permittee engaging in a single event for which a beer and wine special event license or a liquor special event permit is obtained must maintain minimum coverage with an aggregate limit of at least one hundred and fifty thousand dollars during the entire period of the license or permit. Failure to maintain this coverage during the entire period of the biennial permit or license constitutes grounds for suspension or revocation of the permit or license and is sufficient grounds for the department to seek an emergency revocation order as provided in Sections 12-60-1340 and 1-23-370(c). An insurance policy issued pursuant to this section, except for an insurance policy issued to a 501(c)(3) nonprofit corporation or to a licensee for a beer and wine special event or a permittee for a liquor special event, must provide for minimum coverage of five hundred thousand dollars per occurrence giving rise to the claim of at least fifty percent of the total aggregate limit, per occurrence, giving rise to the claim.

   (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 within thirty days of the lapse or termination.

   (D) 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.

   (E) 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, may qualify for liquor liability risk mitigation. A licensee or permittee qualifies if the licensee or permittee:

      (1) stops serving alcohol by twelve o'clock a.m. for the entire policy period;

      (2) has all employees who serve alcohol complete an alcohol server training course pursuant to Title 61, Chapter 3, within sixty days of employment in that capacity;

      (3) has less than forty percent of its total sales deriving from alcohol sales;

      (4) uses a forensic digital identification system that validates the identification of any person attempting to enter the premises between the hours of 12:00 a.m. and 4:00 a.m.; or

      (5) is a nonprofit organization which is exempt from taxation pursuant to Section 501(c)(3) of Title 26 of United States Code, as amended, or the entity is engaging in a single event for which a Beer and Wine Special Event License or Liquor Special Event Permit is obtained.

      (6) A licensee or permittee meeting the requirement of item (1) may reduce the required annual aggregate limit by two hundred and fifty thousand dollars. A licensee or permittee meeting the requirements of item (2), (3) or (4) may reduce the required annual aggregate limit by one hundred thousand dollars per item satisfied. A licensee or permittee meeting the requirements of item (5) may reduce the annual aggregate limit by five hundred thousand dollars. A licensee or permittee who has met the requirements of any combination of items (1)-(5) must receive the permitted reduction in the required annual aggregate limit for each item the licensee or permittee complies with provided 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, must at all times maintain coverage with an annual aggregate limit of at least three hundred thousand dollars during the entire period of the biennial permit or license.

      (7) Insurers must establish liquor liability mitigation measures and offer reasonable premium discounts for compliance therewith that reduce the risk to the general public associated with the service of on-premises consumption of alcohol.

   (F)(E) Permittees and licensees selling alcoholic beverages for on-premises consumption at any time between the hours of 12:00 a.m. and 4:00 a.m. shall use a forensic digital identification system during those hours that validates the identification of any person at the point of sale or attempting to enter the premises as a patron. Selling alcoholic beverages for on-premises consumption at any time between the hours of 12:00 a.m. and 4:00 a.m. without the use of a forensic digital identification system during those hours is a violation of this subsection and must be punished:

      (1) for a first offense, by a fine administered by the department in the amount of two thousand five hundred dollars;

      (2) for a second offense committed within two years of the commission of the first offense, by having the licensee's or permittee's alcohol license or permit suspended for up to fourteen days, as determined by the department; and

      (3) for a third offense committed within three years of the commission of the first offense, by having the licensee's or permittee's alcohol license or permit revoked.

   (G)(F) For purposes of this section, the calculation of total sales shall include sales of alcohol sold for on-premises consumption and all food and nonalcoholic beverages sold on the premises where the alcohol is sold, including food and nonalcoholic beverages sold by third-party vendors.

SECTION 2.   Section 61-6-4270 of the S.C. Code is amended to read:

   Section 61-6-4270.   (A) For violations of Articles 3, 5, 7, and 13 of this chapter, or of Chapter 21 or 33 of Title 12, and for a violation of any regulation pertaining to alcoholic liquors, the department may, in its discretion, impose a monetary penalty upon the holder of a liquor license in lieu of suspension or revocation, except as otherwise provided in Subsection (B).

      In these cases, the amount of any penalty imposed must be determined within the limits prescribed in this section in each case by the department after a hearing as provided in the South Carolina Revenue Procedures Act and the Administrative Procedures Act. For these violations:

      (1) retail liquor licensees are subject to a penalty of not less than one hundred dollars nor more than one thousand five hundred dollars; and

      (2) wholesale liquor licensees are subject to a penalty of not less than five hundred dollars nor more than five thousand dollars.

      The department in its discretion may suspend payment of a fine or a monetary penalty imposed under this section.

   (B) Notwithstanding the penalties provided above, any licensee holding a license pursuant to this chapter, or a servant, agent, or employee of such a license holder who knowingly violates Section 61-6-1500(A)(1), Section 61-6-2220, or Section 61-6-2230, must be punished:

      (1) for a first offense, by a fine administered by the department in the amount of two thousand five hundred dollars;

      (2) for a second offense committed within two years of the commission of the first offense, by having the licensee's alcohol license suspended for up to fourteen days, as determined by the department; and

      (3) for a third offense committed within three years of the commission of the first offense, by having the licensee's alcohol license revoked.

   (C) If the department imposes a monetary penalty under this section which is not paid or a contested case hearing requested within thirty days after demand by the department, the license or licenses may be suspended or revoked by the department.

   (D) Penalties provided for in this section by the department are in addition to any fines and penalties imposed upon the licensees by any court of competent jurisdiction for violation of the laws of this State.

   (E) Penalties provided for in this section must be paid to the State Treasurer for credit to the general fund of the State for public school use.

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

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