1999-2000 Bill 4086: Alcohol and Alcoholic Beverages, Liquors; Sales Tax on When Sold By

1 BIL: 4086 2 TYP: General Bill GB 3 INB: House 4 IND: 19990512 5 PSP: Kelley 6 SPO: Kelley, Allison, Altman, Bales, Barfield, Barrett, Bowers, G. Brown, 7 T. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Cooper, Cotty, 8 Dantzler, Davenport, Edge, Emory, Gilham, Gourdine, Hamilton, Harrell, 9 Haskins, Hayes, Inabinett, Jennings, Keegan, Lanford, Leach, Limehouse, 10 Littlejohn, Martin, McGee, J.H. Neal, Ott, Riser, Rodgers, Sandifer, 11 Seithel, J. Smith, R. Smith, Stille, Taylor, Townsend, Tripp, Wilder, 12 Witherspoon, Woodrum, Harvin, Miller 13 DDN: l:\council\bills\bbm\10058som99.doc 14 CBN: 844 15 RBY: House 16 SUB: Alcohol and alcoholic beverages, liquors; sales tax on when sold by the 17 drink; Taxation, Minibottles 18 19 20 HST: 21 22 Body Date Action Description Com Leg Involved 23 ______24 House 20000524 Debate adjourned until 25 Thursday, 20000601 26 ------20000425 Scrivener's error corrected 27 House 20000419 Committee report: majority 30 HWM 28 favorable, with amendment, 29 minority unfavorable 30 House 19990518 Co-Sponsor added (Rule 5.2) by Rep. Miller 31 House 19990512 Co-Sponsor added (Rule 5.2) by Rep. Harvin 32 House 19990512 Introduced, read first time, 30 HWM 33 referred to Committee 34 35 36 Versions of This Bill 37 38 39 Revised on 20000419 40 Revised on 20000425 41 42 43 TXT: 1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE REPORT 5 April 19, 2000 6 7 H. 4086 8 9 Introduced by Reps. Kelley, Allison, Altman, Bales, Barfield, 10 Barrett, Bowers, G. Brown, T. Brown, Campsen, Carnell, Cato, 11 Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, 12 Emory, Gilham, Gourdine, Hamilton, Harrell, Haskins, Hayes, 13 Inabinett, Jennings, Keegan, Lanford, Leach, Limehouse, 14 Littlejohn, Martin, McGee, J.H. Neal, Ott, Riser, Rodgers, 15 Sandifer, Seithel, J. Smith, R. Smith, Stille, Taylor, Townsend, 16 Tripp, Wilder, Witherspoon, Woodrum, Harvin and Miller 17 18 S. Printed 4/19/00--H. [SEC 4/25/00 1:19 PM] 19 Read the first time May 12, 1999. 20 21 22 THE COMMITTEE ON WAYS AND MEANS 23 To whom was referred a Bill (H. 4086), to amend Chapter 36, 24 Title 12, Code of Laws of South Carolina, 1976, relating to sales 25 and use taxes, by adding Section 12-36-925, etc., respectfully 26 REPORT: 27 That they have duly and carefully considered the same, and 28 recommend that the same do pass with amendment: 29 30 Amend the bill, as and if amended, by striking SECTION 1 in 31 its entirety and inserting: 32 / SECTION 1. Article 9, Chapter 36 of Title 12 of the 1976 Code 33 is amended by adding: 34 “Section 12-36-925. (A) In addition to taxes imposed under 35 Sections 12-33-230, 12-33-240, and Article 5 of Chapter 33 of 36 Title 12, there is imposed a sales tax equal to four and twenty-five 37 hundredths percent of the gross proceeds of the sales of alcoholic 38 beverages sold by the drink or in minibottles for on-premises 39 consumption in an establishment licensed for such sales pursuant 40 to Article 5, Chapter 6 of Title 61. All proceeds of this additional 41 tax must be deposited to the credit of the general fund of the State. 42 Except with respect to the distribution of the revenue of this tax,

1 [4086-1] 1 for purposes of this chapter, this additional tax is considered to be 2 imposed pursuant to Section 12-36-910(A). 3 (B) Eleven percent of the revenue generated by this section 4 must be placed on deposit with the State Treasurer and credited to 5 a fund separate and distinct from the general fund to the State. On 6 a quarterly basis, the State Treasurer shall allocate this revenue to 7 counties on a per capita basis according to the most recent United 8 States Census. The State Treasurer must notify each county of the 9 allocation pursuant to this subsection in addition to the funds 10 allocated pursuant to Section 6-27-40(B), and the combination of 11 these funds must be used by counties for educational purposes 12 relating to the use of alcoholic liquors and for the rehabilitation of 13 alcoholics and drug addicts. Counties may pool these funds with 14 other counties and may combine these funds with other funds for 15 the same purpose.” / 16 Amend the bill further, by striking SECTION 2 in its entirety 17 and inserting: 18 / SECTION 2. Section 6-27-40(B) of the 1976 Code, as 19 amended by Act 415 of 1996, is further amended to read: 20 “(B) In making the quarterly distribution to counties, the State 21 Treasurer must notify each county of the amount that must be used 22 for educational purposes relating to the use of alcoholic liquors and 23 for the rehabilitation of alcoholics and drug addicts. Counties may 24 pool these funds with other counties and may combine these funds 25 with other funds for the same purposes. The amount that must be 26 used as provided in this subsection is equal to twenty-five percent 27 of the revenue derived pursuant to Section 12-33-245 12 - 36 - 925 28 allocated on a per capita basis according to the most recent United 29 States Census, but in no case may the amount provided in this 30 subsection be less than the amount distributed to counties in fiscal 31 year 1999 - 2000 under the former provisions of Section 12 - 33 - 245. 32 A shortfall in the amount must be made up by a transfer of funds 33 from the general fund of State.” / 34 Amend the bill further, by adding an appropriately numbered 35 section to read: 36 / SECTION __. Section 61-12-10 of the 1976 Code, as last 37 amended by Act 100 of 1999, is further amended to read: 38 “Section 61-12-10. Revenue allocated to counties for 39 educational purposes relating to the use of alcoholic liquors and 40 the rehabilitation of alcoholics, drug abusers, and drug addicts 41 pursuant to Section 6-27-40 and Section 12-33-245 12 - 36 - 925 42 must be regulated and disbursed in accordance with the provisions 43 of this chapter.”

1 [4086-2] 1 Amend the bill further, by striking SECTION 15 in its entirety 2 and inserting: 3 / SECTION 15. This act takes effect on the first July 1st after 4 the ratification of an amendment offered in the 2000 general 5 election to the constitution of the State authorizing the sale of 6 liquor by the drink./ 7 Renumber sections to conform. 8 Amend title to conform. 9 10 Majority favorable. Minority unfavorable. 11 ROBERT W. HARRELL, JR. DANIEL T. COOPER 12 For Majority. For Minority. 13 14 15 STATEMENT OF ESTIMATED FISCAL IMPACT 16 REVENUE IMPACT1 17 This bill is expected to decrease general fund revenue by an 18 estimated $1.5 million in FY2000-01. 19 Explanation 20 This bill would replace the twenty-five cent excise tax on 21 mini-bottles with a four and one-quarter percent sales tax per 22 drink. The mini-bottle tax yields $16,600,000 in revenue from 23 sales of approximately 66,300,000 mini-bottles. Total alcoholic 24 liquor taxes, including the case taxes and the nine percent surtax, 25 total $19.6 million. Based on a survey of restaurants and industry 26 representatives, the current price of mixed drinks ranges from 27 $3.75 to $5.00 per 12-ounce drink, depending on location, type of 28 restaurant, and time of day. According to industry experts, these 29 establishments will switch to the sale of 8-ounce drinks in the 30 range of $3.50 to $4.00 per drink based on one and one-quarter 31 ounce per drink. It is expected that customers will consume 32 approximately the same amount of alcoholic beverages. The 33 number of cases sold is expected to increase. It is expected that 34 the 23-cent per drink tax savings will be passed on in lower drink 35 prices. The number of drinks sold will increase to compensate for 36 the lower volume of alcohol per drink, but with a five percent loss. 37 Based on these expectations, a 4.25 percent sales tax will yield 38 approximately $13.7 million in FY2000-01. The additional 39 alcohol-related taxes will yield an estimated $4.5 million in 40 FY2000-01. This bill is expected to generate an estimated $18.1 41 million in general fund revenue in FY2000-01, or an estimated

1 [4086-3] 1 $1.5 million less than revenue raised under the current system of 2 taxation. 3 4 Approved By: 5 William C. Gillespie 6 Board of Economic Advisors 7 8 1/ This statement meets the requirement of Section 2-7-71 for a state revenue 9 impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an 10 estimate of the shift in local property tax incidence.

1 [4086-4] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND CHAPTER 36, TITLE 12, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO SALES AND USE 13 TAXES, BY ADDING SECTION 12-36-925, SO AS TO 14 PROVIDE FOR A SALES TAX ON THE GROSS PROCEEDS 15 OF THE SALE OF ALCOHOLIC BEVERAGES BY THE 16 DRINK; TO AMEND SECTION 6-27-40, AS AMENDED, 17 RELATING TO DISTRIBUTIONS FROM THE LOCAL 18 GOVERNMENT FUND, SO AS TO REVISE THE AMOUNT OF 19 THE DISTRIBUTION TO COUNTIES THAT MUST BE USED 20 FOR ALCOHOL EDUCATION AND ALCOHOLISM AND 21 DRUG REHABILITATION; TO AMEND SECTION 61-6-20, 22 RELATING TO THE DEFINITIONS USED IN THE 23 ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO 24 PROVIDE A DEFINITION OF “ALCOHOLIC LIQUOR BY 25 THE DRINK”; TO AMEND SECTION 61-6-700, RELATING 26 TO ESTABLISHMENTS WHICH USE ALCOHOLIC 27 BEVERAGES SOLELY IN THE PREPARATION OF FOODS 28 TO BE SERVED BY THE ESTABLISHMENTS, SO AS TO 29 DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND 30 SECTION 61-6-1600, RELATING TO NONPROFIT 31 ORGANIZATIONS BEING LICENSED TO SELL ALCOHOLIC 32 LIQUORS IN MINIBOTTLES SO AS TO ALSO AUTHORIZE 33 THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK; TO 34 AMEND SECTION 61-6-1610, RELATING TO BUSINESS 35 ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC 36 LIQUORS IN MINIBOTTLES, SO AS TO ALSO AUTHORIZE 37 THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK AND 38 TO MAKE CONFORMING CHANGES; TO AMEND SECTION 39 61-6-1620, RELATING TO RESTRICTIONS ON MINIBOTTLE 40 LICENSEES SO AS TO DELETE THE RESTRICTIONS AND 41 TO AUTHORIZE THE POSSESSION AND CONSUMPTION 42 OF ALCOHOLIC LIQUORS IN CONTAINERS OTHER THAN

1 [4086] 1 1 MINIBOTTLES ON LICENSED PREMISES; TO AMEND 2 SECTION 61-6-1825, RELATING TO THE PROCEDURES TO 3 PROTEST THE ISSUANCE OR RENEWAL OF A 4 MINIBOTTLE LICENSE, SO AS TO DELETE THE TERM 5 “MINIBOTTLE” AND TO MAKE THE PROCEDURES APPLY 6 TO ANY BIENNIAL LICENSE FOR ON-PREMISES 7 CONSUMPTION; TO AMEND SECTION 61-6-2000, AND 8 SECTION 61-6-2005, AS AMENDED, RELATING TO 9 TEMPORARY PERMITS FOR NONPROFIT 10 ORGANIZATIONS, SO AS TO PROVIDE THAT THE 11 LICENSE AUTHORIZES THE SALE OF ALCOHOLIC 12 LIQUORS IN MINIBOTTLES OR BY THE DRINK; TO 13 AMEND SECTION 61-6-2010, AS AMENDED, RELATING TO 14 TEMPORARY PERMITS AUTHORIZED THROUGH A 15 REFERENDUM, SO AS TO REMOVE THE REFERENCES TO 16 ALCOHOLIC LIQUORS “IN SEALED CONTAINERS OF TWO 17 OUNCES OR LESS”; TO AMEND SECTION 61-6-2200, 18 RELATING TO THE AGE OF THE SERVER OF ALCOHOLIC 19 LIQUORS IN ON-PREMISES ESTABLISHMENTS, SO AS TO 20 PROVIDE THE SERVER, WHO IS EIGHTEEN YEARS OF 21 AGE OR OLDER, ALSO MAY SERVE ALCOHOLIC 22 LIQUORS BY THE DRINK AS WELL AS IN MINIBOTTLES; 23 TO AMEND SECTION 61-6-2600, RELATING TO THE 24 PENALTIES FOR VIOLATING ARTICLE 5, CHAPTER 6 OF 25 TITLE 61, CONCERNING THE REGULATION OF 26 ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO 27 REMOVE THE REFERENCE TO MINIBOTTLES AND TO 28 PROVIDE THAT A PERSON WHO ACTS TO AVOID THE 29 PAYMENT OF THE SALES TAX ON THE SERVING OF 30 ALCOHOLIC BEVERAGES BY THE DRINK IS SUBJECT TO 31 THE PENALTIES OF THIS SECTION; TO REPEAL SECTION 32 12-33-245, RELATING TO THE TWENTY-FIVE CENTS 33 EXCISE TAX ON MINIBOTTLES. 34 35 Be it enacted by the General Assembly of the State of South 36 Carolina: 37 38 SECTION 1. Article 9, Chapter 36 of Title 12 of the 1976 Code is 39 amended by adding: 40 41 “Section 12-36-925. In addition to taxes imposed under 42 Sections 12-33-230, 12-33-240, and Article 5 of Chapter 33 of 43 Title 12, there is imposed a sales tax equal to four and twenty-five

1 [4086] 2 1 hundredths percent of the gross proceeds of the sales of alcoholic 2 beverages sold by the drink for on-premises consumption in an 3 establishment licensed for such sales pursuant to Article 5, Chapter 4 6 of Title 61. All proceeds of this additional tax must be deposited 5 to the credit of the general fund of the State. Except with respect 6 to the distribution of the revenue of this tax, for purposes of this 7 chapter, this additional tax is considered to be imposed pursuant to 8 Section 12-36-910(A).” 9 10 SECTION 2. Section 6-27-40(B) of the 1976 Code, as amended 11 by Act 415 of 1996, is further amended to read: 12 13 “(B) In making the quarterly distribution to counties, the State 14 Treasurer must notify each county of the amount that must be used 15 for educational purposes relating to the use of alcoholic liquors and 16 for the rehabilitation of alcoholics and drug addicts. Counties may 17 pool these funds with other counties and may combine these funds 18 with other funds for the same purposes. The amount that must be 19 used as provided in this subsection is equal to twenty-five percent 20 of the revenue derived pursuant to Section 12-33-245 12-36-925 21 allocated on a per capita basis according to the most recent United 22 States Census.” 23 24 SECTION 3. Section 61-6-20(1) of the 1976 Code, as added by 25 Act 415 of 1996, is amended to read: 26 27 “Section 61-6-20. As used in the ABC Act, unless the context 28 clearly requires otherwise: 29 (1)(A) ‘Alcoholic liquors’ or ‘alcoholic beverages’ means any 30 spirituous malt, vinous, fermented, brewed (whether lager or rice 31 beer), or other liquors or a compound or mixture thereof by 32 whatever name called or known which contains alcohol and is used 33 as a beverage, but does not include: 34 (a)(i) wine when manufactured or made for home 35 consumption and which is not sold by the maker thereof or by 36 another person; or 37 (b)(ii) a beverage declared by statute to be nonalcoholic or 38 nonintoxicating;. 39 (B) ‘Alcoholic liquor by the drink’ or ‘alcoholic beverage by 40 the drink’ means a drink poured from a container containing more 41 than two ounces of alcoholic liquor.” 42

1 [4086] 3 1 SECTION 4. Section 61-6-700 of the 1976 Code, as added by Act 2 415 of 1996, is amended to read: 3 4 “Section 61-6-700. An establishment which offers meals to the 5 public must be licensed by the department to purchase and possess 6 liqueurs, wines, and similar alcoholic beverages used solely in the 7 cooking and preparing of foods served by the establishment. 8 Application for the license must be in a form and under conditions 9 prescribed by the department. The license fee is fifty dollars. A 10 person violating this section is guilty of a misdemeanor and, upon 11 conviction, must be fined five hundred dollars, and other licenses 12 he holds from the department under this title must be revoked. 13 The license provided in this section does not alter or limit the 14 privileges or responsibilities for holders of licenses issued to 15 authorize the possession, sale, and consumption of alcoholic 16 liquors in minibottles under Article 5 of this chapter. 17 Establishments so licensed may use alcoholic liquors in the 18 preparation of food without obtaining the license provided for in 19 this section if only liquors in minibottles are used in the food 20 preparation.” 21 22 SECTION 5. Section 61-6-1600 of the 1976 Code, as added by 23 Act 415 of 1996, is amended to read: 24 25 “Section 61-6-1600. Nonprofit organizations which are 26 licensed by the department under this article may sell alcoholic 27 liquors in minibottles or by the drink. Members or guests of 28 members of these organizations may consume alcoholic liquors 29 sold in minibottles or sold by the drink upon the premises between 30 the hours of ten o’clock in the morning and two o’clock the 31 following morning.” 32 33 SECTION 6. Section 61-6-1610 of the 1976 Code, as added by 34 Act 415 of 1996, is amended to read: 35 36 “Section 61-6-1610. (A) Except on Sunday, it is lawful to sell 37 and consume alcoholic liquors sold in minibottles or sold by the 38 drink in a business establishment between the hours of ten o’clock 39 in the morning and two o’clock the following morning if the 40 establishment meets the following requirements: 41 (1) the business is bona fide engaged primarily and 42 substantially in the preparation and serving of meals or furnishing 43 of lodging; and

1 [4086] 4 1 (2) the business has a license from the department 2 authorizing the sale and consumption of alcoholic liquors, which is 3 conspicuously displayed on the main entrance to the premises and 4 clearly visible from the outside. 5 (B) Notwithstanding any other provision of this article, the 6 licensed premises of a business establishment which is bona fide 7 engaged primarily and substantially in the preparation and service 8 of meals and which holds a valid license for the sale and 9 consumption of alcoholic liquors in minibottles do not extend to 10 any portion of the business establishment or the property upon 11 which it is located which is designed as or used for a parking area 12 or a deck to a swimming pool even though food may be served in 13 the area. 14 (C) An establishment licensed under this article may use 15 alcoholic liquors in the preparation of food without obtaining the 16 license provided for in Section 61-6-700 if only liquors in 17 minibottles are used in the food preparation.” 18 19 SECTION 7. Section 61-6-1620(A) of the 1976 Code, as added 20 by Act 415 of 1996, is amended to read: 21 22 “(A) This article must not be construed to authorize authorizes 23 the possession or consumption of alcoholic liquors in containers 24 other than minibottles on premises open to the general public for 25 which a license has been obtained pursuant to Sections Section 26 61-6-1600 or 61-6-1610.” 27 28 SECTION 8. Section 61-6-1825 of the 1976 Code, as added by 29 Act 363 of 1998, is amended to read: 30 31 “Section 61-6-1825. A person residing in the county in which a 32 minibottle license under subarticle 1 of this article is requested to 33 be granted, or a person residing within five miles of the location 34 for which a minibottle permit under subarticle 1 of this article is 35 requested, may protest the issuance or renewal of the license if he 36 files a written protest setting forth: 37 (1) the name, address, and telephone number of the person 38 filing the protest; 39 (2) the name of the applicant for the license and the address of 40 the premises sought to be licensed, or the name and address of the 41 license holder if the application is for renewal; 42 (3) the specific reasons why the application should be denied; 43 and

1 [4086] 5 1 (4) whether or not he wishes to attend a contested case hearing 2 before the Administrative Law Judge Division. 3 Upon receipt of a timely filed protest, the department shall 4 determine the protestant’s intent to attend a contested hearing 5 before the Administrative Law Judge Division. If the protestant 6 intends to attend a contested hearing, the department may not issue 7 the permanent license but shall forward the file to the 8 Administrative Law Judge Division. 9 If the protestant during the investigation expresses no desire to 10 attend a contested hearing and offer testimony, the protest is 11 deemed invalid, and the department shall continue to process the 12 application and shall issue the license if all other statutory 13 requirements are met. 14 A person who files a protest and fails to appear at a hearing after 15 affirming a desire to attend the hearing may be assessed a penalty 16 to include court costs.” 17 18 SECTION 9. Section 61-6-2000 of the 1976 Code, as added by 19 Act 415 of 1996, is amended to read: 20 21 “Section 61-6-2000. In addition to the minibottle licenses 22 authorized under subarticle 1 of this article, the department may 23 also issue a temporary license for a period not to exceed 24 twenty-four hours to nonprofit organizations which authorizes 25 these organizations to purchase and sell at a single social occasion 26 alcoholic liquors in minibottles or by the drink. Notwithstanding 27 any other provision of this article, the issuance of this permit 28 authorizes the organization to purchase alcoholic liquors in 29 minibottles from licensed retail dealers in the same manner that 30 persons with biennial minibottle licenses are authorized to make 31 these purchases. The fee for the permit is thirty-five dollars 32 payable at the time of application. The permit application must 33 include a statement by the applicant as to the amount of alcoholic 34 liquors to be purchased and the nature and date of the social 35 occasion at which they are to be sold. The issuance or nonissuance 36 of permits authorized under this section is within the sole 37 discretion of the department.” 38 39 SECTION 10. Section 61-6-2005(A) of the 1976 Code, as 40 amended by Act 442 of 1998, is further amended to read: 41 42 “Section 61-6-2005. (A) A person who purchases or acquires 43 by lease, inheritance, divorce decree, eviction, or otherwise a retail

1 [4086] 6 1 business which sells alcoholic liquors in sealed containers of two 2 ounces or less from a holder of a license to sell alcoholic liquors in 3 sealed containers of two ounces or less or by the drink at the 4 business, upon initiating the application process for a permanent 5 license, may be issued a temporary license by the department at the 6 time of the purchase or acquisition if the location for which the 7 temporary license is sought is not considered by the department to 8 be a public nuisance and: 9 (1) the applicant currently holds a valid license to sell 10 alcoholic liquors in sealed containers of two ounces or less or by 11 the drink; or 12 (2) the applicant has had a criminal history background 13 check conducted by the State Law Enforcement Division within 14 the past thirty days.” 15 16 SECTION 11. Section 61-6-2010 of the 1976 Code, as amended 17 by Act 155 of 1997, is further amended to read: 18 19 “Section 61-6-2010. (A) In addition to the provisions of 20 Section 61-6-2000, the department may issue a temporary permit 21 to allow the possession, sale, and consumption of alcoholic liquors 22 in sealed containers of two ounces or less. This permit is valid for 23 a period not to exceed twenty-four hours and may be issued only to 24 bona fide nonprofit organizations and business establishments 25 otherwise authorized to be licensed for sales. The department shall 26 charge a nonrefundable filing fee of one hundred dollars for 27 processing each application and a daily permit fee of fifty dollars 28 for each day for which a permit is approved. An application must 29 be filed for each permit requested. The department in its sole 30 discretion shall specify the terms and conditions of the permit. 31 (B)(1) The filing and permit fees must be distributed to the 32 municipality or county in which the retailer who paid the fee is 33 located. The revenue may be used only by the municipality or 34 county for the following purposes: 35 (a) capital improvements to tourism-related buildings 36 including, but not limited to, civic centers, convention centers, 37 coliseums, aquariums, stadiums, marinas, parks, and recreational 38 facilities; 39 (b) purchase or renovation of buildings which are historic 40 properties as defined in Section 60-12-10(4) and (5); 41 (c) festivals which have a demonstrable and significant 42 impact on tourism;

1 [4086] 7 1 (d) local youth mentor programs to serve juvenile 2 offenders under the jurisdiction of the family court; 3 (e) contributions to matching funds necessary for a local 4 government or entity to receive funding from the Legacy Trust 5 Fund pursuant to Chapter 22 of Title 51; 6 (f) contributions to a redevelopment authority pursuant to 7 Section 31-12-10, et seq. 8 (g) acquiring fee and less than fee interest in land while it 9 is still available to be held in perpetuity as wildlife preserves or 10 believed to be needed by the public in the future for active and 11 passive recreation uses and scenic easements, to include the 12 following types of land: ocean, harbor, and pond frontage in the 13 form of beaches, dunes, and adjoining backlands; barrier beaches; 14 fresh and saltwater marshes and adjoining uplands; land for 15 bicycle paths; land protecting existing and future; public water 16 supply, well fields, highway buffering and aquifer recharge areas; 17 and land for wildlife preserves; and land for future public 18 recreational facilities; 19 (h) nourishment, renourishment (resanding) and 20 maintenance of beaches; 21 (i) dune restoration, including the planting of grass, sea 22 oats, or other vegetation useful in preserving the dune system; 23 (j) maintenance of public beach access; 24 (k) capital improvements to the beaches and beach related 25 facilities, such as public parking areas for beach access; dune 26 walkovers and rest room facilities, with or without changing 27 rooms, at public beach parks; and 28 (l) construction and maintenance of drainage systems. 29 (2) The revenue may not be used for operating expenses of 30 tourism-related buildings. 31 (C) Permits authorized by this section may be issued only in 32 those counties or municipalities where a majority of the qualified 33 electors voting in a referendum vote in favor of the issuance of the 34 permits. The county or municipal election commission, as the case 35 may be, shall conduct a referendum upon petition of at least ten 36 percent but not more than twenty-five hundred qualified electors of 37 the county or municipality, as the case may be, in not less than 38 thirty nor more than forty days after receiving the petition. The 39 election commission shall cause a notice to be published in a 40 newspaper circulated in the county or municipality, as the case 41 may be, at least seven days before the referendum. The state 42 election laws shall apply to the referendum, mutatis mutandis. The 43 election commission shall publish the results of the referendum

1 [4086] 8 1 and certify them to the South Carolina Department of Revenue. 2 The question on the ballot shall read substantially as follows: 3 ‘Shall the South Carolina Department of Revenue be authorized 4 to issue temporary permits in this (county)(municipality) for a 5 period not to exceed twenty-four hours to allow the possession, 6 sale, and consumption of alcoholic liquors in sealed containers of 7 two ounces or less to bona fide nonprofit organizations and 8 business establishments otherwise authorized to be licensed for 9 sales?’ 10 A referendum for this purpose may not be held more often than 11 once in forty-eight months. 12 The expenses of any such referendum must be paid by the 13 county or municipality conducting the referendum.” 14 15 SECTION 12. Section 61-6-2200 of the 1976 Code, as added by 16 Act 415 of 1996, is amended to read: 17 18 “Section 61-6-2200. No person may serve or deliver to a 19 purchaser alcoholic liquors in minibottles or by the drink in a 20 business where these sales are authorized unless the person is 21 eighteen years of age or older; nothing contained in this section 22 may be construed as allowing bartenders under the age of 23 twenty-one.” 24 25 SECTION 13. Section 61-6-2600 of the 1976 Code, as added by 26 Act 415 of 1996, is amended to read: 27 28 “Section 61-6-2600. A person who transports, possesses, or 29 consumes alcoholic liquors except in a manner permitted by this 30 article or a person who violates any of the provisions thereof is 31 guilty of a misdemeanor and, upon conviction, must be fined not 32 more than one hundred dollars or imprisoned for not more than 33 thirty days. In addition, a person licensed to sell alcoholic liquors 34 pursuant to the provisions of this article who has in his possession 35 on his licensed premises alcoholic liquors in containers other than 36 minibottles, except wine as authorized for sale under Section 37 61-6-1540(B), or who displays minibottles when the seals are 38 broken, who acts to avoid the payment of the sales tax levied on 39 the serving of alcoholic beverages by the drink provided for in 40 Chapter 33 of Title 12, or who violates any other provision of this 41 article must:

1 [4086] 9 1 (1) for a first offense be fined not less than two hundred dollars 2 nor more than five hundred dollars or have his license suspended 3 for not more than thirty days, or both; 4 (2) for a second offense within three years of the first offense 5 be fined not less than two hundred dollars nor more than five 6 hundred dollars or have his license suspended for not more than 7 one hundred eighty days, or both; 8 (3) for a third offense within three years of the first offense be 9 fined not less than five hundred dollars and have his license 10 revoked permanently; 11 (4) for a violation involving the avoidance of taxes, a fine of 12 not less than one thousand dollars and permanent revocation of his 13 license.” 14 15 SECTION 14. Section 12-33-245 of the 1976 Code is repealed. 16 17 SECTION 15. This act takes effect on the first day of the second 18 month following ratification of an amendment to the constitution 19 of this State authorizing the sale of liquor by the drink. 20 ----XX----

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