2017-2018 Bill 115 Text of Previous Version (Feb. 23, 2017) - South Carolina Legislature Online

1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE REPORT 5 February 23, 2017 6 7 S. 115 8 9 Introduced by Senators Rankin and Hutto 10 11 S. Printed 2/23/17--S. 12 Read the first time January 10, 2017. 13 14 15 THE COMMITTEE ON JUDICIARY 16 To whom was referred a Bill (S. 115) to amend Title 61, Code 17 of Laws of South Carolina, 1976, relating to alcohol and alcoholic 18 beverages, by adding Chapter 3, so as to provide for the 19 establishment, etc., respectfully 20 REPORT: 21 That they have duly and carefully considered the same and 22 recommend that the same do pass with amendment: 23 24 Amend the bill, as and if amended, by striking all after the 25 enacting words and inserting the following: 26 / SECTION 1. It is determined and declared as a matter of 27 legislative findings that: 28 (1) Service and consumption of alcoholic beverages in an 29 irresponsible manner has a significant adverse impact on highway 30 safety, personal health, and individual welfare, and is not in the 31 best interests of the citizens of South Carolina; 32 (2) Responsible alcohol server training programs have proven 33 to be an effective means of addressing, in a positive and 34 constructive manner, inappropriate service of alcoholic beverages 35 by permitted and licensed establishments; 36 (3) Any responsible alcohol server training program should be 37 provided to licensees and permittees and their employees at a 38 reasonable cost so as to encourage their full support and 39 participation while creating an incentive for the program to be 40 taken seriously; and

[115-1] 1 (4) The establishment of a responsible alcohol server training 2 program will promote highway safety and the public health and 3 welfare of the citizens of South Carolina. 4 Therefore, it is declared to be the policy of this state to promote 5 the safety, health, and welfare of its citizens by the establishment 6 and operation of a responsible alcohol server training program 7 pursuant to the provisions of this chapter. 8 SECTION 2. Title 61 of the 1976 Code is amended by adding: 9 “Chapter 3 10 Responsible Alcohol Server Training Act 11 Section 613100. This chapter shall be referred to as ‘Alli’s Law’ 12 or the Responsible Alcohol Server Training Act. 13 Section 613110. For purposes of this chapter, the following 14 definitions apply: 15 (1) ‘Alcohol’ means beer, wine, alcoholic liquors, or any other 16 type of alcoholic beverage that contains any amount of alcohol and 17 is used as a beverage for human consumption. 18 (2) ‘Alcohol server’ means an individual who sells, serves, 19 transfers, or dispenses alcohol for onpremises consumption at 20 permitted or licensed premises, and may include a permittee, 21 licensee, manager, or other employee of a permittee or licensee. 22 ‘Alcohol server’ shall not include an individual employed or 23 volunteering on a temporary basis for a onetime special event, 24 such as a banquet, or at an event that has a temporary permit to sell 25 beer, wine, or alcoholic liquors by the drink. 26 (3) ‘Alcohol Server Certificate’ means an authorization issued 27 by the department for an individual to be employed or engaged as 28 an alcohol server for onpremises consumption. 29 (4) ‘DAODAS’ means the South Carolina Department of 30 Alcohol and Other Drug Abuse Services. 31 (5) ‘Department’ means the South Carolina Department of 32 Revenue. 33 (6) ‘Division’ means the South Carolina Law Enforcement 34 Division. 35 (7) ‘Employee’ means a person who is employed for at least 36 ten hours a week by the holder of a permit or license to sell alcohol 37 for onpremises consumption. 38 (8) ‘Licensee’ means a person issued a license by the 39 department pursuant to Title 61 to sell, serve, transfer, or dispense 40 alcoholic liquors or alcoholic liquor by the drink for onpremises 41 consumption. 42 (9) ‘Manager’ means an individual employed by a permittee or 43 licensee who manages, directs, or controls the sale, service,

[115-2] 1 transfer, or dispensing of alcoholic beverages for onpremises 2 consumption at the permitted or licensed premises. 3 (10) ‘Permittee’ means a person issued a permit by the 4 department pursuant to Title 61 to sell, serve, transfer, or dispense 5 beer, wine, ale, porter, or other malted beverages for onpremises 6 consumption. 7 (11) ‘Program’ means an alcohol server training and education 8 course and examination approved by the department with input 9 from DAODAS and the division that is administered by authorized 10 providers. 11 (11) ‘Provider’ means an individual, partnership, corporation, or 12 other legal entity authorized by the department that offers and 13 administers a program. 14 Section 613120. (A) An individual shall not be employed as an 15 alcohol server or a manager on permitted or licensed premises 16 unless and until that individual obtains, within sixty calendar days 17 of employment, an alcohol server certificate pursuant to the 18 provisions of this chapter. If a permittee or licensee functions or is 19 employed as an alcohol server or manager on the permitted or 20 licensed premises, then the permittee or licensee must also 21 complete training on responsible alcohol server training and obtain 22 an alcohol server certificate pursuant to the provisions of this 23 chapter. An alcohol server shall not consume alcohol while 24 serving alcohol. 25 (B) Each permittee or licensee shall maintain at all times on its 26 permitted or licensed premises copies of the alcohol server 27 certificates of the permittee or licensee, if applicable, and the 28 alcohol server certificates of each manager and each alcohol server 29 then employed by the permittee or licensee. Copies of the alcohol 30 server certificate must be made available, upon request, to the 31 department or the division, or to the agents and employees of each. 32 For purposes of enforcement of the provisions of this chapter, a 33 permittee or licensee shall also make available to the department or 34 the division, when requested, the hire date of an alcohol server. 35 (C) Failure to produce a copy of an alcohol server certificate 36 when an alcohol server has been employed for sixty calendar days, 37 is prima facie evidence that an alcohol server certificate has not 38 been issued and shall subject the permittee or licensee to fines and 39 penalties in accordance with this chapter. 40 Section 613130. (A)(1) The department, in collaboration with 41 DAODAS and the division, is authorized to approve alcohol server 42 training programs, based on best evidence practice standards, 43 offered by providers. A program that has not received approval

[115-3] 1 within ninety days from submission shall be considered denied. A 2 provider may appeal the denial pursuant to Section 61-2-260 and 3 the South Carolina Administrative Procedures Act. 4 (2) A provider shall not charge an individual more than fifty 5 dollars for a training program. 6 (B) The curricula of each program must include the following 7 subjects: 8 (1) state laws and regulations pertaining to: 9 (a) the sale and service of alcoholic beverages, 10 (b) the permitting and licensing of sellers of alcoholic 11 beverages, 12 (c) impaired driving or driving under the influence of 13 alcohol or drugs, 14 (d) liquor liability issues, 15 (e) carrying of concealed weapons by authorized permit 16 holders into businesses selling and serving alcoholic beverages; 17 and 18 (f) life consequences, such as the loss of education 19 scholarships, to minors relating to the unlawful use, transfer, or 20 sale of alcoholic beverages, 21 (2) the effect that alcohol has on the body and human 22 behavior, including, but not limited to the effect on an individual’s 23 ability to operate a motor vehicle when intoxicated; 24 (3) information on blood alcohol concentration and factors 25 that change or alter blood alcohol concentration; 26 (4) the effect that alcohol has on an individual when taken in 27 combination with commonly used prescription or nonprescription 28 drugs or with illegal drugs; 29 (5) information on recognizing signs of intoxication and 30 methods for preventing intoxication; 31 (6) methods of recognizing problem drinkers and techniques 32 for intervening with and refusing to serve problem drinkers; 33 (7) methods of identifying and refusing to serve or sell 34 alcoholic beverages to individuals under twenty-one years of age 35 and intoxicated individuals; 36 (8) methods for properly and effectively checking the 37 identification of an individual, for identifying an illegal 38 identification of an individual, and for handling situations 39 involving individuals who have provided illegal identification; and 40 (9) other topics related to alcohol server education and 41 training designated by the department, in collaboration with 42 DAODAS and the division, to be included.

[115-4] 1 (C) The department shall approve only online or classroom 2 designed training programs that meet each of the following 3 criteria: 4 (1) A program must cover the content specified in 5 subsection (B). If a program does not include law enforcement 6 information in its general course material, specific South Carolina 7 law enforcement information must be provided in a South Carolina 8 training supplement document. 9 (2) The content in a program must clearly identify and focus 10 on the knowledge, skills, and abilities needed to responsibly serve 11 alcoholic beverages and is developed using best practices in 12 instructional design and exam development to ensure that the 13 program is fair and legally defensible. 14 (3) A program may be offered online or through classroom 15 instruction. 16 (4) Classroom training must be at least four hours, be 17 available in English and Spanish, and include a test. 18 (5) Online or computer based training programs shall be 19 forced linear, with no content omitted, be interactive, have audio 20 for content, and include a test. 21 (6) Training and testing is conducted by any means 22 available, including, but not limited to, online, computer, 23 classroom and live trainers. All tests must be monitored by a 24 manager or proctor. A passing grade of a test, as provided by the 25 program, is required. 26 (7) Training certificates are issued by the provider only after 27 training is complete and the test has been passed successfully. 28 (8) Each provider must give to the department a report of all 29 individuals who have successfully completed training and testing 30 within ten business days after the training is completed. The 31 provider must also maintain these records for at least three years 32 following the end of the training program for purposes of verifying 33 certification validity by the department or the division. 34 (D) The department, in collaboration with DAODAS and the 35 division, may suspend or revoke the authorization of a program 36 provider that the department determines has violated the provisions 37 of this chapter. If a provider’s authorization is suspended or 38 revoked, that provider must cease operations in this state 39 immediately and refund any money paid to it by individuals who 40 are enrolled in that provider’s program at the time of the 41 suspension or revocation. 42 Section 613140. (A) A provider of a program that is authorized 43 by the department shall pay a fee, in an amount to be determined

[115-5] 1 by the department, not to exceed five hundred dollars per year, 2 renewable each year. State agency providers are exempt from 3 payment. Each fee shall be deposited into the Responsible 4 Alcohol Server Training Fund to assist in the costs associated with 5 implementation and enforcement of the provisions of this chapter. 6 (B) The Fund is a revolving fund and no funds deposited 7 therein shall revert to the General Fund of the state treasury. 8 (C) The department, with the assistance of the division, shall, 9 on or before the second Tuesday of each year, make a report of all 10 income and expenditures made from the Responsible Alcohol 11 Server Training Fund as of December thirtyone of the previous 12 year. A copy of the report shall be given to the Governor, the 13 Speaker of the House of Representatives, and the President Pro 14 Tempore of the Senate, placed on the websites of the department 15 and the division, and recorded in the journals of each body of the 16 General Assembly at the beginning of each legislative year. 17 Section 613150. (A)(1) The department shall issue an alcohol 18 server certificate to each applicant that completes an approved 19 responsible alcohol server training program or a recertification 20 program and who provides other information as may be required 21 by the department, in an application form that is available on the 22 department’s website. A person must apply for an alcohol server 23 certificate within six months of completing a program. The 24 department, if circumstances warrant the issuance of a temporary 25 server certificate, may issue a temporary server certificate that is 26 valid for a period of not more than thirty calendar days. 27 (2) The department, in collaboration with DAODAS and the 28 division, may issue an alcohol server certificate to an individual 29 from out of state, who applies for an alcohol server certificate, if 30 the individual has an alcohol server certificate from a nationally 31 recognized or comparable state recognized alcohol server 32 certification program that the department, DAODAS, and the 33 division find meets or exceeds the programs offered in this state. 34 (B) Alcohol server certificates shall not be issued to graduates 35 of programs that are not approved by the department. 36 (C) An alcohol server certificate is the property of the 37 individual to whom it is issued, and is transferrable among 38 employers. 39 (D) Alcohol server certificates are valid for a period of three 40 years from the date that the alcohol server certificate was issued. 41 After the three-year period, a new or recertified alcohol server 42 certificate must be obtained pursuant to the provisions of this 43 chapter in order for the holder to be employed as a server.

[115-6] 1 (E) Upon expiration of an alcohol server certificate, the 2 individual to whom the alcohol server certificate was issued may 3 obtain recertification in accordance with regulations promulgated 4 by the department and approved by the General Assembly. 5 (F) The department shall charge a fee, not to exceed fifteen 6 dollars, for the issuance and renewal of an alcohol server 7 certificate. These fees shall be deposited in the Responsible 8 Alcohol Server Training Fund. 9 Section 613160. (A) In addition to civil and criminal penalties 10 available for violations of provisions of Title 61, the following 11 fines and penalties may be imposed upon an alcohol server who 12 violates the provisions of this chapter: 13 (1) for a first offense, upon a final administrative 14 determination, a fine of not more than fifty dollars, or the 15 suspension of the certificate of the alcohol server certificate for a 16 period not to exceed thirty days, or both; 17 (2) for a second offense not related to the first offense, upon 18 a final administrative determination, a fine of not more than two 19 hundred dollars, or the suspension of the certificate of the alcohol 20 server for a period not to exceed six months, or both; and 21 (3) for a third or subsequent offense, not related to earlier 22 offenses, upon a final administrative determination, a fine of not 23 more than three hundred and fifty dollars, or a suspension of not 24 more than one calendar year, or both. 25 (B) Fines collected pursuant to this chapter shall be deposited 26 in the Responsible Alcohol Server Training Fund. 27 (C) The department may issue an administrative order to 28 suspend or revoke the certificate of an alcohol server who 29 repeatedly violates the provisions of this chapter within a three 30 year period of time. In lieu of suspension or revocation of an 31 alcohol server certificate, the department may require that the 32 individual who has violated the provisions of this chapter attend 33 and successfully complete either the full program or a 34 recertification program. 35 (D) An individual whose alcohol server certificate is suspended 36 or revoked is prohibited from serving in a South Carolina business 37 permitted or licensed pursuant to Title 61 for such period as stated 38 in the suspension or revocation order, and until the individual 39 obtains a new alcohol server certificate pursuant to the provisions 40 of this chapter. The department shall make the information on 41 suspended or revoked alcohol server certificates accessible for 42 licensees and permittees to verify when necessary.

[115-7] 1 (E) The provisions of this chapter shall not be interpreted to 2 waive the liability of a permittee or licensee that may arise 3 pursuant to the provisions of Title 61. 4 Section 613170. As a requirement for application or renewal of 5 a permit or license for on-premises consumption under Chapter 4, 6 Title 61 or Chapter 6, Title 61, a permittee or licensee for on- 7 premises consumption must submit to the department proof that 8 the permittee or licensee, if applicable, and each manager and 9 alcohol server employed by the permittee or licensee during the 10 upcoming or prior permit or license period have or have held valid 11 alcohol server certificates at all times that alcoholic beverages 12 were sold, served, or dispensed. 13 Section 613180. The division and the department are 14 responsible for enforcement of the provisions of this chapter. The 15 department is responsible for bringing administrative actions for 16 violations of the provisions of this chapter or related regulations, 17 and those actions shall proceed according to the provisions of 18 Section 612260 and the South Carolina Administrative Procedures 19 Act.” 20 SECTION 3. Section 61260 of the 1976 Code is amended to 21 read: 22 “Section 61260. The department and the division are authorized 23 to promulgate regulations necessary to carry out the duties 24 imposed upon them by law for the proper administration and 25 enforcement of, and consistent with this title including, but not 26 limited to: 27 (1) regulations for the application and issuance of alcoholic 28 liquor licenses, permits, and certificates; 29 (2) regulations to prevent the unlawful manufacture, bottling, 30 sale, distribution, transportation, and importation of alcoholic 31 liquors; 32 (3) regulations necessary to effect an equitable distribution of 33 alcoholic liquors in this State; 34 (4) regulations for the analysis of alcoholic liquors sold in this 35 State and for a procedure for obtaining the samples for this 36 purpose; 37 (5) regulations governing the administration and enforcement 38 of provisions relating to producers and wholesalers of beer and 39 wine; 40 (6) regulations for application for and issuance of beer 41 licenses, permits, or brewers’ certificates of approval and the sale, 42 distribution, promotion, and shipment of beer into and within the 43 State;

[115-8] 1 (7) regulations for the operation of breweries and commercial 2 wineries; and 3 (8) regulations governing the enforcement of provisions 4 relating to brewpubs; and 5 (9) regulations governing the development, implementation, 6 education, and enforcement of responsible alcohol server training 7 provisions.” 8 SECTION 4. Section 61450 of the 1976 Code is amended to 9 read: 10 “Section 61450. (A) It is unlawful for a person to sell beer, ale, 11 porter, wine, or other similar malt or fermented beverage to a 12 person under twentyone years of age. A person who makes a sale 13 in violation of this section, upon conviction: 14 (1) for a first offense, must be fined not less than two 15 hundred dollars nor more than three hundred dollars or imprisoned 16 not more than thirty days, or both; and if the person so convicted 17 holds an alcohol server certificate pursuant to Chapter 3, Title 61, 18 a suspension of the alcohol server certificate for not more than 19 thirty days; and; 20 (2) for a second or subsequent offense, must be fined not 21 less than four hundred dollars nor more than five hundred dollars 22 or imprisoned not more than thirty days, or both; and if the person 23 so convicted holds an alcohol server certificate pursuant to Chapter 24 3, Title 61, a suspension of the certificate of the alcohol server for 25 not less than six months and not more than one calendar year from 26 the date of conviction. 27 (B) Failure of a person to require identification to verify a 28 person’s age is prima facie evidence of the violation of this 29 section. 30 (C) A person who violates the provisions of this section who 31 does not hold an alcohol server certificate also is required to 32 successfully complete a DAODAS approved merchant alcohol 33 enforcement education program. The program must be a minimum 34 of two hours and the cost to the person may not exceed fifty 35 dollars. A person who violates the provisions of this section and 36 who does hold an alcohol server certificate, upon conviction, is 37 required to complete alcohol server training pursuant to Chapter 3, 38 Title 61, and to obtain a new alcohol server certificate. 39 SECTION 5. Section 61490(A) of the 1976 Code is amended 40 to read: 41 “(A) It is unlawful for a person to transfer or give to a person 42 under the age of twentyone years for the purpose of consumption 43 of beer or wine in the State, unless the person under the age of

[115-9] 1 twentyone is recruited and authorized by a law enforcement 2 agency to test a person’s compliance with laws relating to the 3 unlawful transfer or sale of beer and wine to a minor. A person 4 who violates this section is guilty of a misdemeanor and, upon 5 conviction: 6 (1) for a first offense, must be fined not less than two 7 hundred dollars nor more than three hundred dollars or imprisoned 8 not more than thirty days, or both; and if the person so convicted 9 holds an alcohol server certificate pursuant to Chapter 3, Title 61, 10 a suspension of the alcohol server certificate for not more than 11 thirty days; and; 12 (2) for a second or subsequent offense, must be fined not 13 less than four hundred dollars nor more than five hundred dollars 14 or imprisoned not more than thirty days, or both; and if the person 15 so convicted holds an alcohol server certificate pursuant to Chapter 16 3, Title 61, a suspension of the certificate of the alcohol server for 17 not less than six months and not more than one calendar year from 18 the date of conviction.” 19 SECTION 6. Section 614580 of the 1976 Code is amended to 20 read: 21 “Section 614580. (A) No holder of a permit authorizing the 22 sale of beer or wine or a servant, agent, or employee of the 23 permittee may knowingly commit any of the following acts upon 24 the licensed premises covered by the holder’s permit: 25 (1) sell beer or wine to a person under twentyone years of 26 age; 27 (2) sell beer or wine to an intoxicated person; 28 (3) permit gambling or games of chance except game 29 promotions including contests, games of chance, or sweepstakes in 30 which the elements of chance and prize are present and which 31 comply with the following: 32 (a) the game promotion is conducted or offered in 33 connection with the sale, promotion, or advertisement of a 34 consumer product or service, or to enhance the brand or image of a 35 supplier of consumer products or services; 36 (b) no purchase payment, entry fee, or proof of purchase 37 is required as a condition of entering the game promotion or 38 receiving a prize; 39 (c) all materials advertising the game promotion clearly 40 disclose that no purchase or payment is necessary to enter and 41 provide details on the free method of participation; and 42 (d) this subsection is not an exception or limitation to 43 Section 12212710 or other provisions of the South Carolina Code

[115-10] 1 of Laws in which gambling or games of chance are unlawful and 2 prohibited; 3 (4) permit lewd, immoral, or improper entertainment, 4 conduct, or practices. This includes, but is not limited to, 5 entertainment, conduct, or practices where a person is in a state of 6 undress so as to expose the human male or female genitals, pubic 7 area, or buttocks cavity with less than a full opaque covering; 8 (5) permit any act, the commission of which tends to create a 9 public nuisance or which constitutes a crime under the laws of this 10 State; 11 (6) sell, offer for sale, or possess any beverage or alcoholic 12 liquors the sale or possession of which is prohibited on the 13 licensed premises under the law of this State; 14 (7) conduct, operate, organize, promote, advertise, run, or 15 participate in a “drinking contest” or “drinking game”. For 16 purposes of this item, “drinking contest” or “drinking game” 17 includes, but is not limited to, a contest, game, event, or other 18 endeavor which encourages or promotes the consumption of beer 19 or wine by participants at extraordinary speed or in increased 20 quantities or in more potent form. “Drinking contest” or “drinking 21 game” does not include a contest, game, event, or endeavor in 22 which beer or wine is not used or consumed by participants as part 23 of the contest, game, event, or endeavor, but instead is used solely 24 as a reward or prize. Selling beer or wine in the regular course of 25 business is not considered a violation of this section; or 26 (B) Selling beer or wine in the regular course of business is not 27 considered a violation of this section. a A violation of any 28 provision of this section is a ground for the revocation or 29 suspension of the holder’s permit to sell beer or wine. 30 (C) If the permittee, servant, agent, or employee of the 31 permittee holds an alcohol server permit, and violates the 32 provisions of items (A)(1) or (A)(2), upon conviction, 33 (1) for a first offense, must be fined not less than two 34 hundred dollars nor more than three hundred dollars or imprisoned 35 not more than thirty days, or both; and if the person so convicted 36 holds an alcohol server certificate pursuant to Chapter 3, Title 61, 37 a suspension of the alcohol server certificate for not more than 38 thirty days; and; 39 (2) for a second or subsequent offense, must be fined not 40 less than four hundred dollars nor more than five hundred dollars 41 or imprisoned not more than thirty days, or both; and if the person 42 so convicted holds an alcohol server certificate pursuant to Chapter 43 3, Title 61, a suspension of the certificate of the alcohol server for

[115-11] 1 not less than six months and not more than one calendar year from 2 the date of conviction.” 3 SECTION 7. Section 6162220 of the 1976 Code is amended to 4 read: 5 “Section 6162220. A person or establishment licensed to sell 6 alcoholic liquors or liquor by the drink pursuant to this article may 7 shall not sell these beverages to persons in an intoxicated 8 condition; these sales are considered violations of the provisions 9 thereof of Chapter 6, Title 61 and subject to the penalties contained 10 herein. A person who makes a sale in violation of this section, 11 upon conviction: 12 (1) for a first offense, must be fined not less than two hundred 13 dollars nor more than three hundred dollars or imprisoned not 14 more than thirty days, or both; and if the person so convicted holds 15 an alcohol server certificate pursuant to Chapter 3, Title 61, a 16 suspension of the alcohol server certificate for not more than thirty 17 days; and; 18 (2) for a second or subsequent offense, must be fined not less 19 than four hundred dollars nor more than five hundred dollars or 20 imprisoned not more than thirty days, or both; and if the person so 21 convicted holds an alcohol server certificate pursuant to Chapter 3, 22 Title 61, a suspension of the certificate of the alcohol server for not 23 less than six months and not more than one calendar year from the 24 date of conviction.” 25 SECTION 8. Section 6164070(A) of the 1976 Code is amended 26 to read: 27 “(A) It is unlawful for a person to transfer or give to a person 28 under the age of twentyone years for the purpose of consumption 29 of alcoholic liquors in the State unless the person under the age of 30 twentyone is recruited and authorized by a law enforcement 31 agency to test a person’s compliance with laws relating to the 32 unlawful transfer or sale of alcoholic liquors to a minor. A person 33 who violates this section is guilty of a misdemeanor and, upon 34 conviction: 35 (1) for a first offense, must be fined not less than two 36 hundred dollars nor more than three hundred dollars or imprisoned 37 not more than thirty days, or both; and if the person so convicted 38 holds an alcohol server certificate pursuant to Chapter 3, Title 61, 39 a suspension of the alcohol server certificate for not more than 40 thirty days; and; 41 (2) for a second or subsequent offense, must be fined not 42 less than four hundred dollars nor more than five hundred dollars 43 or imprisoned not more than thirty days, or both; and if the person

[115-12] 1 so convicted holds an alcohol server certificate pursuant to Chapter 2 3, Title 61, a suspension of the certificate of the alcohol server for 3 not less than six months and not more than one calendar year from 4 the date of conviction.” 5 SECTION 9. Section 6164080 of the 1976 Code is amended to 6 read: 7 “Section 6164080. (A) A person engaged in the sale of 8 alcoholic liquors who knowingly sells the alcoholic liquors to a 9 person under the age of twentyone is guilty of a misdemeanor and, 10 upon conviction: 11 (1) for a first offense, must be fined not less than two 12 hundred dollars nor more than three hundred dollars or imprisoned 13 not more than thirty days, or both; and if the person so convicted 14 holds an alcohol server certificate pursuant to Chapter 3, Title 61, 15 a suspension of the alcohol server certificate for not more than 16 thirty days; and; 17 (2) for a second or subsequent offense, must be fined not 18 less than four hundred dollars nor more than five hundred dollars 19 or imprisoned not more than thirty days, or both; and if the person 20 so convicted holds an alcohol server certificate pursuant to Chapter 21 3, Title 61, a suspension of the certificate of the alcohol server for 22 not less than six months and not more than one calendar year from 23 the date of conviction.” 24 (B) Failure of a person to require identification to verify a 25 person’s age is prima facie evidence of a violation of this section. 26 (C) A person who violates the provisions of this section who 27 does not hold an alcohol server certificate also is required to 28 successfully complete a DAODAS approved merchant alcohol 29 enforcement education program. The program must be a minimum 30 of two hours and the cost to the person may not exceed fifty 31 dollars. A person who violates the provisions of this section and 32 who does hold an alcohol server certificate, upon conviction, is 33 required to complete alcohol server training pursuant to Chapter 3, 34 Title 61, and to obtain a new alcohol server certificate.” 35 SECTION 10. If any section, subsection, paragraph, item, 36 subitem, subparagraph, sentence, clause, phrase, or word of 37 Chapter 3, Title 61 of the 1976 Code as added by this act is for any 38 reason held to be unconstitutional or invalid, such holding shall not 39 affect the constitutionality or validity of the remaining portions of 40 the chapter, the General Assembly hereby declaring that it would 41 have passed each and every section, subsection, item, subitem, 42 paragraph, subparagraph, sentence, clause, phrase, and word 43 thereof, irrespective of the fact that any one or more other sections,

[115-13] 1 subsections, paragraphs, subparagraphs, sentences, clauses, 2 phrases, or words hereof may be declared to be unconstitutional, 3 invalid, or otherwise ineffective. 4 SECTION 11. The repeal or amendment by this act of any 5 law, whether temporary or permanent or civil or criminal, does not 6 affect pending actions, rights, duties, or liabilities founded thereon, 7 or alter, discharge, release or extinguish any penalty, forfeiture, or 8 liability incurred under the repealed or amended law, unless the 9 repealed or amended provision shall so expressly provide. After 10 the effective date of this act, all laws repealed or amended by this 11 act must be taken and treated as remaining in full force and effect 12 for the purpose of sustaining any pending or vested right, civil 13 action, special proceeding, criminal prosecution, or appeal existing 14 as of the effective date of this act, and for the enforcement of 15 rights, duties, penalties, forfeitures, and liabilities as they stood 16 under the repealed or amended laws. 17 SECTION 12. The provisions of Chapter 3, Title 61 and 18 SECTION 3 take effect upon signature of the Governor, but the 19 implementation and enforcement of the provisions of Chapter 3, 20 Title 61 and the provisions in SECTIONS 4, 5, 6, 7, 8 and 9 21 become effective one year after the signature of the Governor. A 22 person applying for a new permit or license under Title 61 one 23 year after the signature of the Governor must comply with all 24 provisions of this act at the time of the application. A person 25 renewing a permit or license under Title 61 one year after the 26 signature of the Governor must comply with the provisions of this 27 act at the time of the renewal. / 28 Renumber sections to conform. 29 Amend title to conform. 30 31 BRAD HUTTO for Committee. 32 33 34 STATEMENT OF ESTIMATED FISCAL IMPACT 35 Explanation of Fiscal Impact 36 Introduced on January 10, 2017 37 State Expenditure 38 This bill prohibits an individual from being employed as a 39 manager or alcohol server on a premises licensed or permitted for 40 the sale of alcohol on-premises unless and until the individual 41 obtains an alcohol server permit. If a permittee or licensee is a 42 manager or server on the permitted or licensed premises, then the 43 permittee or licensee must also complete an approved training

[115-14] 1 program on responsible alcohol service and obtain a server permit. 2 Each permittee or licensee shall maintain on its premises copies of 3 the server permits of the permittee or licensee, each manager, and 4 each server then employed by the permittee or licensee. Failure to 5 produce a permit shall subject the permittee or licensee to fines 6 and penalties. Administrative fines, not to exceed $1,000, may be 7 imposed by DOR against any person that violates the permitting 8 requirements. DOR is authorized to approve training programs 9 offered by providers. An authorized provider shall pay a fee not to 10 exceed $500 that will go to the South Carolina Mandatory Alcohol 11 Server Training Program Fund to assist with the cost of 12 implementation and enforcement of this bill’s provisions. The 13 department shall issue a server permit to each applicant that 14 completes an approved responsible alcohol server education 15 program. The department may charge a fee, not to exceed $15 for 16 the issuance of the server permit. 17 Department of Revenue. The department indicates this bill will 18 have an expenditure impact of $225,000 to the general fund to hire 19 three FTEs and five temporary employees to administer the new 20 requirements. This bill will have no expenditure impact on other 21 funds or federal funds. 22 South Carolina Law Enforcement Division. The expenditure 23 impact is undetermined, pending a response from the agency. 24 State Revenue 25 This bill authorizes DOR to charge providers of alcohol server 26 training programs a fee in an amount not to exceed $500. The 27 revenue generated from the fee must be deposited into the South 28 Carolina Mandatory Alcohol Server Training Program Fund to 29 assist in the costs associated with implementation and enforcement 30 of alcohol server training. DOR may also charge a fee for the 31 issuance of alcohol server certificates in an amount not to exceed 32 $15. The alcohol server certificates are valid for a period of 3 33 years. DOR may impose administrative fines, not to exceed 34 $1,000, against any person that violates the provisions of Chapter 35 3. 36 Based upon data provided by DOR, we estimate 40 approved 37 providers will offer alcohol server training programs. For this 38 analysis, we assume that DOR will charge the full $500 fee for 39 providers. Therefore, revenue of the South Carolina Mandatory 40 Alcohol Server Training Program will increase by $20,000. 41 Based upon data obtained from the Occupational Employment 42 Statistics report from the U.S. Bureau of Labor Statistics, there are 43 approximately 35,000 servers in South Carolina. For this analysis, [115-15] 1 we assume that DOR will charge the maximum $15 fee per server. 2 Therefore, revenue would increase by $525,000. Since the bill 3 does not state the allocation of the revenue generated from the $15 4 fee, Proviso 117.1 of the FY 2016-17 Appropriations Act, directs 5 the $525,000 to the general fund. 6 Since the bill creates a new administrative fine for which there is 7 no historical data, the revenue impact is undetermined. The bill 8 does not state the allocation of the revenue generated from the 9 administrative fine. However, based on Proviso 117.1 of the FY 10 2016-17 Appropriations Act, any revenue generated from the 11 administrative fine would be allocated to the general fund. 12 13 Frank A. Rainwater, Executive Director 14 Revenue and Fiscal Affairs Office 15

[115-16] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND TITLE 61, CODE OF LAWS OF SOUTH 12 CAROLINA, 1976, RELATING TO ALCOHOL AND 13 ALCOHOLIC BEVERAGES, BY ADDING CHAPTER 3, SO AS 14 TO PROVIDE FOR THE ESTABLISHMENT, 15 IMPLEMENTATION, AND ENFORCEMENT OF A 16 MANDATORY ALCOHOL SERVER TRAINING AND 17 EDUCATION PROGRAM; TO REQUIRE SERVERS OF 18 ALCOHOLIC BEVERAGES FOR ON-PREMISES 19 CONSUMPTION IN LICENSED OR PERMITTED 20 BUSINESSES TO OBTAIN ALCOHOL SERVER 21 CERTIFICATES; TO PROVIDE GUIDANCE FOR THE 22 CURRICULA OF THE TRAINING PROGRAMS; TO PROVIDE 23 FOR THE DEPARTMENT OF REVENUE TO BE 24 RESPONSIBLE FOR APPROVAL OF THE TRAINING 25 PROGRAMS AND IMPLEMENTATION OF THE ALCOHOL 26 SERVER CERTIFICATES; TO REQUIRE FEES FROM 27 PROVIDERS OF TRAINING PROGRAMS AND FROM 28 APPLICANTS FOR ALCOHOL SERVER CERTIFICATES TO 29 COVER THE COSTS OF THE MANDATORY TRAINING AND 30 ENFORCEMENT; TO REQUIRE COORDINATION AMONG 31 THE DEPARTMENT OF REVENUE, THE STATE LAW 32 ENFORCEMENT DIVISION, AND OTHER STATE AND 33 LOCAL AGENCIES FOR THE IMPLEMENTATION AND 34 ENFORCEMENT OF THESE PROVISIONS; TO PROVIDE 35 FOR FINES AND PENALTIES FOR VIOLATIONS OF THESE 36 PROVISIONS; AND TO AUTHORIZE THE DEPARTMENT OF 37 REVENUE TO PROMULGATE REGULATIONS NECESSARY 38 TO ESTABLISH, IMPLEMENT, AND ENFORCE THESE 39 PROVISIONS. 40 41 Be it enacted by the General Assembly of the State of South 42 Carolina:

[115] 17 1 2 SECTION 1. It is determined and declared as a matter of 3 legislative findings that: 4 (1) Service and consumption of alcoholic beverages in an 5 irresponsible manner has a significant adverse impact on highway 6 safety, personal health, and individual welfare, and is not in the 7 best interests of the citizens of South Carolina; 8 (2) Responsible alcoholic beverage server training programs 9 have proven to be an effective means of addressing, in a positive 10 and constructive manner, inappropriate service of alcoholic 11 beverages by permitted and licensed establishments; 12 (3) Any mandatory training program should be provided to 13 licensees and permittees and their employees at a reasonable cost 14 so as to encourage their full support and participation while 15 creating an incentive for the program to be taken seriously; and 16 (4) The establishment of a mandatory responsible alcoholic 17 beverage server training program will promote highway safety and 18 the public health and welfare of the citizens of South Carolina. 19 20 Therefore, it is declared to be the policy of this state to promote the 21 safety, health, and welfare of its citizens by the establishment and 22 operation of a mandatory responsible alcoholic beverage server 23 training program pursuant to the provisions of this chapter. 24 25 SECTION 2. Title 61 of the 1976 Code is amended by adding: 26 27 “Chapter 3 28 South Carolina Mandatory Alcohol Server Training Act 29 30 Section 613100. This chapter shall be referred to as ‘Alli’s Law’ 31 or the South Carolina Alcohol Server Training Act. 32 33 Section 613110. For purposes of this chapter, the following 34 definitions apply: 35 (1) ‘Alcohol’ means beer, wine, alcoholic liquors, or any other 36 type of alcoholic beverage that contains any amount of alcohol and 37 is used as a beverage for human consumption. 38 (2) ‘Alcohol server’ means an individual who sells, serves, 39 transfers, or dispenses alcohol for on-premises consumption at 40 permitted or licensed premises, and may include a permittee, 41 licensee, manager, or other employee of a permittee or licensee. 42 ‘Alcohol server’ shall not include an individual employed or

[115] 18 1 volunteering on a temporary basis for a onetime special event, 2 such as a banquet. 3 (3) ‘Alcohol Server Certificate’ means an authorization issued 4 by the department for an individual to be employed or engaged as 5 an alcohol server for onpremises consumption. 6 (4) ‘Department’ means the South Carolina Department of 7 Revenue. 8 (5) ‘Division’ means the South Carolina Law Enforcement 9 Division. 10 (6) ‘Employee’ means a person who is employed for at least 11 ten hours a week by the holder of a permit or license to sell alcohol 12 for onpremises consumption. 13 (7) ‘Licensee’ means a person issued a license by the 14 department pursuant to Title 61 to sell, serve, transfer, or dispense 15 alcoholic liquors or alcoholic liquor by the drink for onpremises 16 consumption. 17 (8) ‘Manager’ means an individual employed by a permittee or 18 licensee who manages, directs, or controls the sale, service, 19 transfer, or dispensing of alcoholic beverages for on-premises 20 consumption at the permitted or licensed premises. 21 (9) ‘Permittee’ means a person issued a permit by the 22 department pursuant to Title 61 to sell, serve, transfer, or dispense 23 beer, wine, ale, porter, or other malted beverages for onpremises 24 consumption. 25 (10) ‘Program’ means an alcohol server training and education 26 course and examination approved by the department that is 27 administered by authorized providers. 28 (11) ‘Provider’ means an individual, partnership, corporation, or 29 other legal entity authorized by the department that offers and 30 administers a program. 31 32 Section 613120. (A) No individual shall be employed as a 33 manager or alcohol server on permitted or licensed premises unless 34 and until that individual obtains, within sixty calendar days of 35 employment, an alcohol server certificate pursuant to the 36 provisions of this chapter. If a permittee or licensee is a manager 37 or alcohol server on the permitted or licensed premises, then the 38 permittee or licensee must also complete training on mandatory 39 alcohol server education and obtain an alcohol server certificate 40 pursuant to the provisions of this chapter. 41 (B) Each permittee or licensee shall maintain at all times on its 42 permitted or licensed premises copies of the alcohol server 43 certificates of the permittee or licensee, if applicable, and the

[115] 19 1 alcohol server certificates of each manager and each alcohol server 2 then employed by the permittee or licensee. Copies of the alcohol 3 server certificate must be made available, upon request, to the 4 department or the division, or to the agents and employees of each. 5 (C) Failure to produce a copy of an alcohol server certificate is 6 prima facie evidence that an alcohol server certificate has not been 7 issued and shall subject the permittee or licensee to fines and 8 penalties in accordance with this chapter. 9 (D) Administrative fines, not to exceed one thousand dollars, 10 may be imposed by the department against any person that violates 11 the provisions of this chapter or related regulations. 12 (E) The department may issue an administrative order to 13 suspend or revoke the alcohol server certificate of any person 14 whom the department determines has violated the provisions of 15 this chapter. In lieu of suspension or revocation of an alcohol 16 server certificate, the department may require that the individual 17 who has violated the provisions of this chapter attend and 18 successfully complete either the full program or a recertification 19 program. 20 (F) If an individual’s alcohol server certificate is suspended or 21 revoked, that individual is prohibited from serving in a South 22 Carolina business permitted or licensed pursuant to Title 61 during 23 the period of suspension or revocation, for such period as stated in 24 the suspension or revocation order. 25 26 Section 613130. (A) The department is authorized to approve 27 alcohol server training programs offered by providers. A provider 28 shall not charge an individual more than fifty dollars for a training 29 program. 30 (B) The curricula of each program must include the following 31 subjects: 32 (1) state laws and regulations pertaining to: 33 (a) the sale and service of alcoholic beverages, 34 (b) the permitting and licensing of sellers of alcoholic 35 beverages, 36 (c) impaired driving or driving under the influence of 37 alcohol or drugs, 38 (d) liquor liability issues, and 39 (e) carrying of concealed weapons by authorized permit 40 holders into businesses selling and serving alcoholic beverages; 41 (2) the effect that alcohol has on the body and human 42 behavior, including, but not limited to the effect on an individual’s 43 ability to operate a motor vehicle when intoxicated;

[115] 20 1 (3) the effect that alcohol has on an individual when taken in 2 combination with commonly used prescription or nonprescription 3 drugs or with illegal drugs; 4 (4) methods of recognizing problem drinkers and techniques 5 for intervening with and refusing to serve problem drinkers; 6 (5) methods of identifying and refusing to serve or sell 7 alcoholic beverages to an underage or intoxicated person; and 8 (6) methods for properly and effectively checking the 9 identification of an individual, for identifying an illegal 10 identification of an individual, and for handling situations 11 involving individuals who have provided illegal identification; 12 (C) The department shall approve only online or classroom 13 designed training programs that meet each of the following 14 criteria: 15 (1) A program must cover the content specified in 16 subsection (B). If a program does not include law enforcement 17 information in its general course material, specific South Carolina 18 law enforcement information must be provided in a South Carolina 19 training supplement document. 20 (2) The content in a program must clearly identify and focus 21 on the knowledge, skills, and abilities needed to responsibly serve 22 alcoholic beverages and is developed using best practices in 23 instructional design and exam development to ensure that the 24 program is fair and legally defensible. 25 (3) A program may be offered online or through classroom 26 instruction. 27 (4) Classroom training must be at least four hours, be 28 available in English and Spanish, and include a test. 29 (5) Online or computer based training programs shall be 30 forced linear, with no content omitted, be interactive, have audio 31 for content, and include a test. 32 (6) Training and testing is conducted by any means 33 available, including, but not limited to, online, computer, 34 classroom and live trainers. All tests must be monitored by a 35 manager or proctor. A passing grade is seventy percent or above 36 correctly answered. 37 (7) Training certificates are issued by the provider only after 38 training is complete and the test has been passed successfully. 39 (8) Each provider must provide to the department a report of 40 all individuals who have successfully completed training and 41 testing within ten business days after the training is completed. 42 The provider must also maintain these records for at least three

[115] 21 1 years following the end of the training program for purposes of 2 verifying certification validity by the department or the division. 3 (D) The department may suspend or revoke the authorization of 4 a program provider that the department determines has violated the 5 provisions of this chapter. If a provider’s authorization is 6 suspended or revoked, that provider must cease operations in this 7 state immediately and refund any money paid to it by individuals 8 who are enrolled in that provider’s program at the time of the 9 suspension or revocation. 10 11 Section 613140. (A) A provider of a program that is authorized 12 by the department shall pay a fee, in an amount to be determined 13 by the department, not to exceed five hundred dollars. Each fee 14 shall be deposited into the South Carolina Mandatory Alcohol 15 Server Training Program Fund to assist in the costs associated with 16 implementation and enforcement of the provisions of this chapter. 17 (B) The Fund is a revolving fund and no funds deposited 18 therein shall revert to the General Fund of the state treasury. 19 (C) The department, with the assistance of the division, shall, 20 on or before the second Tuesday of each year, make a report of all 21 income and expenditures made from the South Carolina 22 Mandatory Alcohol Server Training Program Fund as of December 23 thirtyone of the previous year. A copy of the report shall be given 24 to the Governor, the Speaker of the House of Representatives, and 25 the President Pro Tempore of the Senate, placed on the websites of 26 the department and the division, and recorded in the journals of 27 each body of the General Assembly at the beginning of each 28 legislative year. 29 30 Section 613150. (A) The department shall issue an alcohol 31 server certificate to each applicant that completes an approved 32 mandatory alcohol server training program or a recertification 33 program and who provides other information as may be required 34 by the department, in an application form that is available on the 35 department’s website. A person must apply for an alcohol server 36 certificate within six months of completing a program. The 37 department, if circumstances warrant the issuance of a temporary 38 server certificate, may issue a temporary server certificate that is 39 valid for a period of not more than thirty calendar days. 40 (B) Alcohol server certificates shall not be issued to graduates 41 of programs that are not approved by the department.

[115] 22 1 (C) An alcohol server certificate is the property of the 2 individual to whom it is issued, and is transferrable among 3 employers. 4 (D) Alcohol server certificates shall be valid for a period of 5 three years from the date that the alcohol server certificate was 6 issued. After that date, a new alcohol server certificate must be 7 obtained in order for the holder to be employed as a server. 8 (E) Upon expiration of an alcohol server certificate, the 9 individual to whom the alcohol server certificate was issued may 10 obtain recertification in accordance with regulations promulgated 11 by the department and approved by the General Assembly. 12 (F) The department may charge a fee, not to exceed fifteen 13 dollars, for the issuance of an alcohol server certificate. 14 15 Section 613160. As a requirement for application or renewal of 16 a permit or license under Chapter 4, Title 61 or Chapter 6, Title 61, 17 a permittee or licensee must submit to the department proof that 18 the permittee or licensee, if applicable, and each manager and 19 alcohol server employed by the permittee or licensee during the 20 upcoming or prior permit or license period have or have held valid 21 alcohol server certificates at all times that alcoholic beverages 22 were sold, served, or dispensed. 23 24 Section 613170. The department is authorized to promulgate 25 regulations necessary to carry out the duties imposed upon them by 26 this chapter, including, but not limited to, regulations governing 27 the establishment, implementation, and enforcement of responsible 28 alcoholic beverage server training programs. 29 30 Section 613180. The division and the department are 31 responsible for enforcement of the provisions of this chapter. The 32 department is responsible for bringing administrative actions for 33 violations of the provisions of this chapter or related regulations, 34 and those actions shall proceed according to the provisions of 35 Section 612260 and the South Carolina Administrative Procedures 36 Act.” 37 38 SECTION 3. If any section, subsection, paragraph, item, subitem, 39 subparagraph, sentence, clause, phrase, or word of Chapter 3, Title 40 61 of the 1976 Code as added by this act is for any reason held to 41 be unconstitutional or invalid, such holding shall not affect the 42 constitutionality or validity of the remaining portions of the 43 chapter, the General Assembly hereby declaring that it would have

[115] 23 1 passed each and every section, subsection, item, subitem, 2 paragraph, subparagraph, sentence, clause, phrase, and word 3 thereof, irrespective of the fact that any one or more other sections, 4 subsections, paragraphs, subparagraphs, sentences, clauses, 5 phrases, or words hereof may be declared to be unconstitutional, 6 invalid, or otherwise ineffective. 7 8 SECTION 4. The repeal or amendment by this act of any law, 9 whether temporary or permanent or civil or criminal, does not 10 affect pending actions, rights, duties, or liabilities founded thereon, 11 or alter, discharge, release or extinguish any penalty, forfeiture, or 12 liability incurred under the repealed or amended law, unless the 13 repealed or amended provision shall so expressly provide. After 14 the effective date of this act, all laws repealed or amended by this 15 act must be taken and treated as remaining in full force and effect 16 for the purpose of sustaining any pending or vested right, civil 17 action, special proceeding, criminal prosecution, or appeal existing 18 as of the effective date of this act, and for the enforcement of 19 rights, duties, penalties, forfeitures, and liabilities as they stood 20 under the repealed or amended laws. 21 22 SECTION 5. This act takes effect on January 1, 2018, and any 23 person applying for a new permit or license under Title 61 after 24 this date must comply with the provisions of this act at the time of 25 the application. A person renewing a permit or license under Title 26 61 after this date must comply with the provisions of this act at the 27 time of the renewal. 28 XX 29

[115] 24