2017-2018 Bill 334 Text of Previous Version (Apr. 26, 2017) - South Carolina Legislature Online

1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE REPORT 5 April 26, 2017 6 7 S. 334 8 9 Introduced by Senators Senn and Kimpson 10 11 S. Printed 4/26/17--H. 12 Read the first time April 4, 2017. 13 14 15 THE COMMITTEE ON JUDICIARY 16 To whom was referred a Bill (S. 334) to amend Sections 614515 17 and 6162016 of the 1976 Code, relating to permits to purchase and 18 sell beer and wine for onpremises, etc., respectfully 19 REPORT: 20 That they have duly and carefully considered the same and 21 recommend that the same do pass with amendment: 22 23 Amend the bill, as and if amended, by adding appropriately 24 numbered SECTIONS to read: 25 / SECTION __. A.The General Assembly affirms its police 26 power to regulate the business of retail liquor sales in the manner 27 and to the extent allowed by law including, but not limited to, 28 Article VIIIA, Section 1 of the South Carolina Constitution. This 29 police power includes regulating the number and localities of retail 30 dealer licenses that a person may be issued, a process that affects 31 the health, safety, and morals of the state. Regulation of the 32 number and localities of retail dealer licenses prevents monopolies 33 and avoids problems associated with indiscriminate price cutting, 34 excessive advertising of alcoholic products, and concentration of 35 retail liquor stores in close proximity. Accordingly, in order to (1) 36 protect the health, safety, and morals of this state; (2) prevent 37 indiscriminate price cutting, excessive advertising of alcoholic 38 products, and concentration of retail liquor stores in close 39 proximity; (3) provide for the continuation of control and orderly 40 processing by the state over the number and locations of retail 41 liquor stores; and (4) ensure compliance with other laws governing 42 the sales of alcoholic beverages, the General Assembly authorizes

[334-1] 1 the planned and incremental growth of retail dealer licenses as 2 provided in this SECTION of this act. 3 B.Section 616140 of the 1976 Code is amended to read: 4 “Section 616140. (A) To provide for an orderly and 5 incremental growth in retail dealer licenses, the issuance of retail 6 dealer licenses must be governed pursuant to the following 7 requirements: 8 (1)(a) Until January 1, 2018, no more than three retail dealer 9 licenses may be issued to one licensee, and the licensee must be 10 eligible for a license for each store pursuant to Section 616110. 11 (b) The limitation of no more than three retail dealer 12 licenses to one licensee does not apply to a person having an 13 interest in retail liquor stores as of July 1, 1978. Additional retail 14 dealer licenses may be issued to that person as provided in this 15 section. 16 (2) Beginning January 2, 2018, no more than four retail 17 dealer licenses may be issued to one licensee, and the licensee 18 must be eligible for each license for each store pursuant to Section 19 616110. 20 (3) Beginning January 2, 2019, no more than five retail 21 dealer licenses may be issued to one licensee, and the licensee 22 must be eligible for each license for each store pursuant to Section 23 616110. 24 (4) Beginning January 2, 2021, no more than six retail dealer 25 licenses may be issued to one licensee, and the licensee must be 26 eligible for each license for each store pursuant to Section 616110. 27 (5) Beginning January 2, 2023, no more than eight retail 28 dealer licenses may be issued to one licensee, and the licensee 29 must be eligible for each license for each store pursuant to Section 30 616110. 31 (6) Beginning July 1, 2025, no more than nine retail dealer 32 licenses may be issued to one licensee, and the licensee must be 33 eligible for each license for each store pursuant to Section 616110. 34 (B) No more than three Retail dealer licenses may be issued for 35 the use of one corporation, association, partnership, or limited 36 partnership, pursuant to the provisions of this section. A 37 corporation having the use of a retail dealer license that is owned 38 by another corporation is considered to be holding the retail dealer 39 license for the use of the owning corporation. 40 (C) The department may not grant or issue a new retail dealer 41 license if the proposed place of business is within five hundred feet 42 of an existing retail dealer licensee. For purposes of this section, 43 the distance between the licensed premises of the existing business

[334-2] 1 and the premises of the proposed business must be computed by a 2 straight line measured between the two locations. This restriction 3 does not apply to the renewal of a retail dealer license. Nothing in 4 this subsection may be construed to abrogate or affect the 5 provisions of any lawful ordinance, regulations or resolution, 6 which are more restrictive than the provisions of this subsection.” 7 C. Section 616150 of the 1976 Code is amended to read: 8 “Section 616150. No person, directly or indirectly, 9 individually or as a member of a partnership or an association, as a 10 member or stockholder of a corporation, or as a relative to a person 11 by blood or marriage within the second degree, may have any 12 interest whatsoever in a retail liquor store licensed under this 13 section except the three stores covered by his the person’s retail 14 dealer’s licenses, as provided for in Section 616140. The 15 prohibitions in this section do not apply to a person having an 16 interest in retail liquor stores on July 1, 1978.” 17 SECTION __. Section 6161540 of the 1976 Code is amended 18 to read: 19 “Section 6161540. (A) Except as provided in subsection (B), 20 no other goods, wares, or merchandise may be kept or stored in or 21 sold in or from a retail alcoholic liquor store or place of business, 22 and no place of amusement may be maintained in or in connection 23 with the store. However, retail dealers may sell: 24 (1) drinking glassware and barware packaged together with 25 alcoholic liquors if the glassware and alcoholic liquors are 26 packaged together by the wholesaler or producer in packaging 27 provided by the producer; 28 (2) nonalcoholic items, other than beer or wine, packaged 29 together with alcoholic liquors if the nonalcoholic items and 30 alcoholic liquors are in sealed packages and are packaged together 31 by the alcoholic liquor producer at its place of business; and 32 (3) nonalcoholic mixers and nonalcoholic cocktail 33 condiments consumed in conjunction with alcoholic liquors; 34 (4) beverage accessories and cooling accessories used in 35 preparation of alcoholic liquors; and 36 (5) lottery tickets under the provisions of Chapter 150 of 37 Title 59. 38 (B) Retail dealers licensed pursuant to the provisions of this 39 article may sell all wines in the stores or places of business 40 covered by their respective licenses, whether declared alcoholic or 41 nonalcoholic or nonintoxicating by the laws of this State. Wines 42 containing more than sixteen percent of alcohol by volume may be 43 sold only in licensed alcoholic liquor stores or in establishments

[334-3] 1 licensed to sell and permit consumption of alcoholic liquors by the 2 drink. The provisions of this section do not amend, alter, or modify 3 the taxes imposed on wines or the collection and enforcement of 4 these taxes. 5 (C) As used in this section: 6 (1) ‘Nonalcoholic mixers’ include, but are not limited to, 7 powdered drink mixes, packaged drink mixes, tonics, club sodas, 8 seltzer waters, and colas; 9 (2) ‘Nonalcoholic cocktail condiments’ include, but are not 10 limited to, bitters, ginger beers, lemon juices, lime juices, 11 grenadines, cream coconut, olives, olive juices, rimming salts and 12 sugars, wild hibiscus flowers, and syrups; 13 (3) ‘Beverage accessories’ include, but are not limited to, 14 shakers, jiggers, muddlers, mixing pitchers, atomizers, bar knives, 15 peelers, decanters, flasks, and martini picks; 16 (4) ‘Cooling accessories’ include, but are not limited to, ice 17 molds, whiskey stones, ice picks, ice tongs, ice scoops, and ice 18 buckets.” 19 SECTION __. Section 614960(A)(11), (12), and (13) of the 20 1976 Code, as last amended by Act 36 of 2013, is further amended 21 to read: 22 “(11) a sampling may not be offered for more than four 23 hours; and 24 (12) a retailer, pursuant to this section, may not offer more 25 than one sampling per day; and 26 (13) the tasting may not be held in conjunction with a tasting 27 in a retail alcoholic liquor store, pursuant to Section 6161035, that 28 is adjacent to and licensed in the same name of the retail permit 29 authorizing the sale of beer.” 30 SECTION __. If any section, subsection, paragraph, 31 subparagraph, sentence, clause, phrase, or word of this act is for 32 any reason held to be unconstitutional or invalid, such holding 33 shall not affect the constitutionality or validity of the remaining 34 portions of this act, the General Assembly hereby declaring that it 35 would have passed this, and each and every section, subsection, 36 paragraph, subparagraph, sentence, clause, phrase, and word 37 thereof, irrespective of the fact that any one or more other sections, 38 subsections, paragraphs, subparagraphs, sentences, clauses, 39 phrases, or words hereof may be declared to be unconstitutional, 40 invalid, or otherwise effective. 41 SECTION __. The General Assembly finds that all the 42 provisions contained in this act relate to one subject as required by 43 Section 17, Article III of the South Carolina Constitution in that

[334-4] 1 each provision relates directly to, or in conjunction with, other 2 sections to the subject of premises licensed to sell alcoholic liquors 3 to consumers. The General Assembly further finds that a common 4 purpose or relationship exists among the sections, representing a 5 potential plurality but not disunity of topics, notwithstanding that 6 reasonable minds might differ in identifying more than one topic 7 contained in this act. / 8 Renumber sections to conform. 9 Amend title to conform. 10 11 F. GREGORY DELLENEY, JR. for Committee. 12

[334-5] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTIONS 614515 AND 6162016 OF THE 1976 12 CODE, RELATING TO PERMITS TO PURCHASE AND SELL 13 BEER AND WINE FOR ONPREMISES CONSUMPTION AND 14 A BIENNIAL LICENSE TO PURCHASE ALCOHOLIC 15 LIQUORS BY THE DRINK AT A MOTORSPORTS 16 ENTERTAINMENT COMPLEX OR TENNIS SPECIFIC 17 COMPLEX, TO INCLUDE BASEBALL COMPLEX, AND TO 18 PROVIDE A DEFINITION FOR “BASEBALL COMPLEX”. 19 20 Be it enacted by the General Assembly of the State of South 21 Carolina: 22 23 SECTION 1. Section 614515 of the 1976 Code is amended to 24 read: 25 26 “Section 614515. (A) In addition to the permits authorized 27 pursuant to the provisions of this article, the department also may 28 issue a biennial permit to the owner, or his designee, of a 29 motorsports entertainment complex, or tennis specific complex, or 30 baseball complex located in this State, which authorizes the 31 purchase and sale for onpremises consumption of beer and wine at 32 any occasion held on the grounds of the complex year round on 33 any day of the week. The nonrefundable filing fee and the fees for 34 the motorsports, or tennis complex, or baseball complex biennial 35 permit are the same as for other biennial permits for onpremises 36 consumption of beer and wine, with the revenue therefrom used 37 for the purposes provided in Section 614510. Notwithstanding 38 another provision of this article, the issuance of this permit 39 authorizes the permit holder to purchase beer and wine from 40 licensed wholesalers in the same manner that a person with 41 appropriate licenses issued pursuant to this title purchases beer and 42 wine from licensed wholesalers. The department in its discretion

[334] 6 1 may specify the terms and conditions of the permit, pursuant to the 2 provisions of Chapter 4, Title 61, and other applicable provisions 3 under Title 61. 4 (B) The department may require such proof of qualifications 5 for the issuance of these permits as it considers necessary, pursuant 6 to the provisions of Chapter 4, Title 61, and these permits may be 7 issued whether or not the motorsports entertainment complex, or 8 tennis specific complex, or baseball complex is located in a county 9 or municipality which pursuant to Section 6162010 successfully 10 has held a referendum allowing the possession, sale, and 11 consumption of beer or wine or alcoholic liquors by the drink for a 12 period not to exceed twentyfour hours. 13 (C) The owner or designee of the motorsports entertainment 14 complex, or the tennis specific complex, or the baseball complex 15 may designate particular areas within the complex where patrons 16 of events who have paid an admission price to attend or guests 17 who are attending private functions at the complex, whether or not 18 a charge for attendance is made, may possess and consume beer 19 and wine provided at their own expense or at the expense of the 20 sponsor of the private function. 21 (D) For purposes of this section: 22 (1) ‘Motorsports entertainment complex’ has the same 23 meaning as provided in Section 12212425. 24 (2) ‘Tennis specific complex’ means a tennis facility, and its 25 ancillary grounds and facilities, which satisfies all of the 26 following: 27 (a) has at least ten thousand fixed seats for tennis patrons; 28 (b) hosted one Women’s Tennis Association Premier 29 tournament in 2013 and continues to host at least one Women’s 30 Tennis Association Premier tournament in each year, or any 31 successor Women’s Tennis Association tournament; and 32 (c) engages in tourism promotion. 33 (3) ‘Baseball complex’ means a baseball stadium, along with 34 its ancillary grounds and facilities, that hosts a professional minor 35 league baseball team.” 36 37 SECTION 2. Section 6162016 of the 1976 Code is amended to 38 read: 39 40 “Section 6162016. (A) In addition to the other provisions of 41 this chapter, the owner, or his designee, of a motorsports 42 entertainment complex, or tennis specific complex, or baseball 43 complex that is located in this State may be issued, upon

[334] 7 1 application, a biennial license that authorizes the purchase and sale 2 for onpremises consumption of alcoholic liquors by the drink at 3 any occasion held on the grounds of the complex under the same 4 terms and conditions provided in Section 614515, and the 5 nonrefundable filing fee and license fee are the same as for other 6 biennial licenses issued by the department for onpremises 7 consumption of alcoholic liquors by the drink. In the event that the 8 owner or his designee applies for both a permit to purchase and 9 sell for onpremises consumption beer and wine and a license to 10 purchase and sell for onpremises consumption alcoholic liquors by 11 the drink, only one fee is required, which is the same as the fee for 12 the fiftytwo week local option permit under Section 6162010 with 13 the revenue therefrom used for the same purposes as provided in 14 Section 6162010. 15 (B) The department may require such proof of qualifications 16 for the issuance of these licenses as it considers necessary, 17 pursuant to the provisions of Chapter 6, Title 61, and these licenses 18 may be issued whether or not the motorsports entertainment 19 complex, or tennis specific complex, or baseball complex is 20 located in a county or municipality, which pursuant to Section 21 6162010 has successfully held a referendum allowing the 22 possession, sale, and consumption of beer or wine or alcoholic 23 liquors by the drink for a period not to exceed twentyfour hours. 24 (C) The owner or designee of the motorsports entertainment 25 complex, or the tennis specific complex, or the baseball complex 26 may designate particular areas within the complex where patrons 27 of events who have paid an admission price to attend or guests 28 who are attending private functions at the complex, whether or not 29 a charge for attendance is made, may possess and consume 30 alcoholic liquors by the drink provided at their own expense or at 31 the expense of the sponsor of the private function. 32 (D) For purposes of this section: 33 (1) ‘Motorsports entertainment complex’ has the same 34 meaning as provided in Section 12212425. 35 (2) ‘Tennis specific complex’ means a tennis facility, and its 36 ancillary grounds and facilities, that satisfies all of the following: 37 (a) has at least ten thousand fixed seats for tennis patrons; 38 (b) hosted one Women’s Tennis Association Premier 39 tournament in 2013 and continues to host at least one Women’s 40 Tennis Association Premier tournament in each year, or any 41 successor Women’s Tennis Association tournament; and 42 (c) engages in tourism promotion.

[334] 8 1 (3) ‘Baseball complex’ means a baseball stadium, along with 2 its ancillary grounds and facilities, that hosts a professional minor 3 league baseball team.” 4 5 SECTION 3. This act takes effect upon approval by the 6 Governor. 7 XX 8

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