CHAPTER 6 - ALCOHOLIC BEVERAGE CONTROL ACT

Title 61 - Alcohol and Alcoholic Beverages

CHAPTER 6.

ALCOHOLIC BEVERAGE CONTROL ACT

ARTICLE 1.

GENERAL PROVISIONS

SECTION 61-6-10. Name.

This chapter is known and may be cited as "The Alcoholic Beverage Control Act" (ABC Act).

SECTION 61-6-20. Definitions.

As used in the ABC Act, unless the context clearly requires otherwise:

(1)(a) "Alcoholic liquors" or "alcoholic beverages" means any spirituous malt, vinous, fermented, brewed (whether lager or rice beer), or other liquors or a compound or mixture of them by whatever name called or known which contains alcohol and is used as a beverage, but does not include:

(i) wine when manufactured or made for home consumption and which is not sold by the maker of the wine or by another person; or

(ii) a beverage declared by statute to be nonalcoholic or nonintoxicating.

(b) "Alcoholic liquor by the drink" or " alcoholic beverage by the drink" means a drink poured from a container of alcoholic liquor, without regard to the size of the container for consumption on the premises of a business licensed pursuant to Article 5 of this chapter.

(2) "Bona fide engaged primarily and substantially in the preparation and serving of meals" means a business that provides facilities for seating not fewer than forty persons simultaneously at tables for the service of meals and that:

(a) is equipped with a kitchen that is utilized for the cooking, preparation, and serving of meals upon customer request at normal meal times;

(b) has readily available to its guests and patrons either menus with the listings of various meals offered for service or a listing of available meals and foods, posted in a conspicuous place readily discernible by the guest or patrons; and

(c) prepares for service to customers, upon the demand of the customer, hot meals at least once each day the business establishment chooses to be open.

(3) "Manufacturer" means a person operating a plant or place of business in this State for distilling, rectifying, brewing, fermenting, blending, or bottling alcoholic liquors.

(4) "Furnishing lodging" means those businesses which rent accommodations for lodging to the public on a regular basis consisting of not less than twenty rooms.

(5) "Minibottle" means a sealed container of fifty milliliters or less of alcoholic liquor.

(6) "Nonprofit organization" means an organization not open to the general public, but with a limited membership and established for social, benevolent, patriotic, recreational, or fraternal purposes.

(7) "Producer", as used in the ABC Act, means a manufacturer, distiller, rectifier, blender, or bottler of alcoholic liquors and includes an importer of alcoholic liquors engaged in importing alcoholic liquors into the United States.

(8) "Producer representative" means a person who is a citizen of this State, who maintains his principal place of abode in this State, and who is registered with the department pursuant to Article 7 of this chapter as the South Carolina representative of a registered producer.

(9) "Registered producer" means a producer who is registered with the department pursuant to Article 7 of this chapter.

(10) "Retail dealer" means a holder of a license issued under the provisions of Article 3 of this chapter, other than a manufacturer or wholesaler.

(11) "Wholesaler" means a person who purchases, acquires, or imports from outside this State or who purchases or acquires from a manufacturer in the State alcoholic liquors for resale.

SECTION 61-6-30. Excluded products; violations.

No provision in the ABC Act applies to alcohol intended for use in the manufacture and sale of any of the following when they are unfit for beverage purposes:

(1) Denatured alcohol produced and used pursuant to acts of Congress and regulations promulgated thereunder;

(2) Patent, proprietary, medicinal, pharmaceutical, antiseptic, and toilet preparations;

(3) Flavoring extracts, syrups, and food products; and

(4) Scientific, chemical, mechanical, and industrial products.

A person who knowingly sells any product enumerated in items (1), (2), (3), or (4) for beverage purposes is guilty of a misdemeanor and, upon conviction, is subject to a fine of not more than two hundred dollars or imprisonment of not more than sixty days, or both. No provision of the ABC Act applies to ethyl alcohol intended for use by hospitals, colleges, governmental agencies, or other permittees entitled to obtain this alcohol tax free, as provided by acts of Congress and regulations promulgated thereunder.

SECTION 61-6-40. Relationship with other laws.

The ABC Act is declared to be complementary to and not in conflict with the laws providing for the lawful sale of beers, wines, and other vinous, fermented, or malt liquors.

SECTION 61-6-50. Wilful violation of rule or regulation.

The wilful violation of any rule or regulation made under the provisions of the ABC Act constitutes a violation of the act. The determination of what action constitutes a wilful violation shall be made pursuant to the terms within the provisions of the ABC Act and no regulation shall be promulgated or enforced that exceeds the requirements of the ABC Act.

SECTION 61-6-60. Administration and enforcement personnel.

The division may employ inspectors or agents necessary for the proper administration and enforcement of the provisions of the ABC Act. The salaries of these inspectors or agents must be fixed by the division. The Governor shall commission as state constables inspectors or agents as are certified by the division in order that they have adequate authority as peace officers to enforce these provisions. An inspector or agent must, before entering upon the discharge of his duties, take and subscribe the oath of office as required by Article III, Section 2 of the Constitution of South Carolina, and any additional oath required by law, and must give bond payable to the State in a form approved by the Attorney General, in the penal sum of five thousand dollars with some surety or guaranty company authorized to do business in this State and approved by the division, conditioned upon the faithful discharge of his duties. The bonds must be filed with and preserved by the Secretary of State.

SECTION 61-6-70. Clerical and other personnel.

The department and the division may, in their discretion, employ clerical, stenographic, and other personnel, including chemists, necessary to administer the ABC Act, and may prescribe their duties and fix their compensation. The department or the division may require any employee to furnish bond conditioned upon the faithful performance of his duty. The bond must be filed with and preserved by the department or the division.

SECTION 61-6-80. Annual reports.

The department and the division must file annually with the Governor and the General Assembly their annual reports as of June thirtieth of each year, and must report to the Governor on their affairs generally or on special matters as often as he requires.

ARTICLE 3.

REGULATION OF RETAILERS, WHOLESALERS, AND MANUFACTURERS

SUBARTICLE 1.

QUALIFICATIONS OF LICENSEES; RESTRICTIONS ON LICENSES AND LICENSEES

SECTION 61-6-100. Authority to issue, suspend, and revoke licenses.

Except as otherwise provided, the department has sole and exclusive power to suspend and revoke all licenses provided for in the ABC Act. The department may issue, subject to revocation, the following licenses under this article:

(1) manufacturers' licenses which authorize the licensees to manufacture alcoholic liquors and to sell and deliver or ship them, in accordance with regulations, in bottles or in similar closed containers to a person in this State who has a wholesaler's license issued under this article, and in barrels, bottles, or other closed containers to persons outside this State. However, no deliveries or shipments may be made into another state whose laws prohibit the consignee from receiving or selling alcoholic liquors;

(2) wholesalers' licenses which authorize the licensees to purchase, store, keep, possess, import into this State, transport, sell, and deliver alcoholic liquors in bottles or similar closed containers, in accordance with regulations, to a person having a manufacturer's or retail dealer's license issued under this article; and

(3) retail dealers' licenses which authorize the licensees to purchase alcoholic liquors from wholesalers having licenses issued under this article, and to store, keep, possess, and sell alcoholic liquors at retail for consumption in compliance with the provisions of the ABC Act and regulations not in conflict herewith.

SECTION 61-6-110. Qualifications for license.

Unless the department in its discretion otherwise orders, no person is eligible for a license under this article or Article 7 of this chapter if he or the person who will have actual control and management of the business proposed to be operated:

(1) is less than twenty-one years of age;

(2) is not a legal resident of the United States and has not been a resident of South Carolina for at least thirty days before the date of application and has maintained his principal place of abode in South Carolina for at least thirty days before the date;

(3) is not of good repute; or

(4) has had a license under this or another statute regulating the manufacture or sale of alcoholic liquors which has been revoked within five years preceding the filing of the application.

SECTION 61-6-120. Proximity to church, school, or playground.

(A) The department shall not grant or issue any license provided for in this article or Article 7 of this chapter, if the place of business is within three hundred feet of any church, school, or playground situated within a municipality or within five hundred feet of any church, school, or playground situated outside of a municipality. Such distance shall be computed by following the shortest route of ordinary pedestrian or vehicular travel along the public thoroughfare from the nearest point of the grounds in use as part of such church, school, or playground, which, as used herein, shall be defined as follows:

(1) "Church", an establishment, other than a private dwelling, where religious services are usually conducted;

(2) "School", an establishment, other than a private dwelling where the usual processes of education are usually conducted; and

(3) "Playground", a place, other than grounds at a private dwelling, which is provided by the public or members of a community for recreation.

The above restrictions do not apply to the renewal of licenses and they do not apply to new applications for locations which are licensed at the time the new application is filed with the department.

(B) An applicant for license renewal or for a new license at an existing location shall pay a five dollar certification fee to determine if the exemptions provided for in subsection (A) apply.

SECTION 61-6-130. Licensees per household.

No license may be issued to more than one member of a household in this State.

SECTION 61-6-140. Licenses per licensee.

No more than three retail dealer licenses may be issued to one licensee, and the licensee must be eligible for a license for each store pursuant to Section 61-6-110.

No more than three retail dealer licenses may be issued for the use of one corporation, association, partnership, or limited partnership. A corporation having the use of a retail dealer license that is owned by another corporation is considered to be holding the retail dealer license for the use of the owning corporation.

SECTION 61-6-150. Licensee's interest in other retail liquor stores.

No person, directly or indirectly, individually or as a member of a partnership or an association, as a member or stockholder of a corporation, or as a relative to a person by blood or marriage within the second degree, may have any interest whatsoever in a retail liquor store licensed under this section except the three stores covered by his retail dealer's licenses, as provided for in Section 61-6-140. The prohibitions in this section do not apply to a person having an interest in retail liquor stores on July 1, 1978.

SECTION 61-6-160. Unincorporated towns and communities.

The department may, in its discretion, after investigation by the division, license retail dealers in unincorporated towns and communities when it would be to the interest of the unincorporated town or community to have a licensed retail dealer therein. However, the department may not license a retail dealer in any locality unless the department determines that the locality is under proper police protection.

SECTION 61-6-170. Retail dealer licenses per community.

The department may, in its discretion, limit the further issuance of retail dealer licenses in a political subdivision if it determines that the citizens who desire to purchase alcoholic liquors therein are more than adequately served because of (1) the number of existing retail stores, (2) the location of the stores within the subdivision, or (3) other reasons.

SECTION 61-6-180. Notice of application.

(A) A person who intends to apply for a license under this article or Article 7 of this chapter must advertise at least once a week for three consecutive weeks in a newspaper circulated nearest to the proposed location of the business and most likely to give notice to interested citizens of the county, city, and community in which the applicant proposes to engage in business. The department must determine which newspapers meet the requirements of this section based on available circulation figures and the proposed location of the business. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must be in the legal notice section of the paper or in an equivalent section if the newspaper has no legal notice section, be in large type, cover a space one column wide and not less than two inches deep, and state the type of license applied for, and the exact location at which the proposed business is to be operated. An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if the advertisement is approved by the department.

(B) Notice also must be given by displaying a sign for fifteen days at the site of the proposed business. The sign must:

(1) state the type of license sought;

(2) state where an interested person may protest the application;

(3) be in bold type;

(4) cover a space at least twelve inches high and eighteen inches wide;

(5) be posted and removed by an agent of the division.

The provision of this section requiring publication of notice do not apply to a person licensed under the provisions of this article or Article 7 of this chapter when the licensee applies to the department for a renewal of his license to engage in the same business at the same location.

SECTION 61-6-185. Protest of issuance or renewal of license; attendance at hearing; court costs and other penalties.

(A) A person residing in the county in which a retail liquor license is requested to be granted, or a person residing within five miles of the location for which a retail liquor license is requested, may protest the issuance or renewal of the license if he files a written protest providing:

(1) the name, address, and telephone number of the person filing the protest;

(2) the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;

(3) the specific reasons why the application should be denied; and

(4) whether or not he wishes to attend a contested case hearing before the Administrative Law Court.

(B) Upon receipt of a timely filed protest, the department shall determine the protestant's intent to attend a contested hearing before the Administrative Law Court. If the protestant intends to attend a contested hearing, the department may not issue the permanent license but shall forward the file to the Administrative Law Court.

(C) If the protestant during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed invalid, and the department shall continue to process the application and shall issue the license if all other statutory requirements are met.

(D) A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a penalty to include court costs.

SECTION 61-6-190. License tax.

The department must not issue any license until the applicant has paid the license tax required by Chapter 33 of Title 12.

SUBARTICLE 5.

TEMPORARY PERMITS

SECTION 61-6-500. Consumption and possession of alcoholic beverages in publicly-owned auditoriums, coliseums, or armories.

(A) Notwithstanding any other provision of law, the authorities in charge of a publicly-owned auditorium, coliseum, or armory may allow the possession and consumption of beer, wine, and alcoholic liquors on their premises.

(B) It is unlawful for a person to possess or consume beer, wine, or alcoholic liquors on the premises of a publicly-owned auditorium, coliseum, or armory unless the authorities in charge specifically have approved the possession or consumption of those beverages. A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than thirty days.

SECTION 61-6-505. Temporary retail liquor license upon purchase or acquisition of retail business.

(A) A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic beverages from a holder of a retail liquor license at the business, upon initiating the application process for a permanent retail liquor license, may be issued a temporary retail liquor license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and:

(1) the applicant currently holds a valid retail liquor license; or

(2) the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days.

(B) A temporary license issued pursuant to subsection (A) is valid until a permanent license is approved or disapproved by the department, but in no case is it valid for more than one hundred twenty days from the date of issuance.

(C) Notwithstanding subsection (B), the department may revoke a temporary license if the applicant fails to pursue the permanent license in a timely manner, as set forth by the department by regulation.

(D) The department shall collect a fee of twenty-five dollars for each temporary license sought. The funds generated by this fee must be deposited in the general fund of the State.

SECTION 61-6-510. Temporary permits for nonprofit organizations; criminal background checks.

(A) The department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors. This permit is valid for a period not to exceed twenty-four hours, and may be issued only to bona fide nonprofit organizations that have been in existence and operating for at least twelve months before the date of application, to nonprofit educational foundations, and to political parties and their affiliates duly certified by the Secretary of State. The department must charge a nonrefundable filing fee of thirty-five dollars for processing each application. The department in its discretion must specify the terms and conditions of the permit. For purposes of this section, "nonprofit organization" means an organization not open to the general public, but with a limited membership and established for social, benevolent, patriotic, recreational, or fraternal purposes.

(B) The department may require the applicant to obtain a criminal background check conducted by the State Law Enforcement Division within thirty days prior to an initial application. Background checks for subsequent applications are not required unless the officers of the nonprofit organization change.

SUBARTICLE 7.

LICENSE FOR WINE, LIQUORS, AND OTHER BEVERAGES USED IN COOKING

SECTION 61-6-700. Food-service establishments.

An establishment which offers meals to the public must be licensed by the department to purchase and possess liqueurs, wines, and similar alcoholic beverages used only in the cooking and preparing of foods served by the establishment. Application for the license must be in a form and under conditions prescribed by the department. The license fee is fifty dollars. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars, and other licenses he holds from the department pursuant to the provisions of this title must be revoked.

The license provided in this section does not alter or limit the privileges or responsibilities for holders of licenses issued to authorize the possession, sale, and consumption of alcoholic liquors by the drink pursuant to the provisions of Article 5 of this chapter. An establishment so licensed may use alcoholic liquors in the preparation of food without obtaining the license provided for in this section.

SECTION 61-6-710. Special food manufacturer's license.

Notwithstanding any other provision of this title, a person who manufactures in this State food items such as sauces and marinades in which there is an alcoholic beverage ingredient and who does so under an agreement with the alcoholic beverage manufacturer must apply for a special food manufacturer's license from the department, in accordance with Section 61-2-100, to purchase the alcoholic beverage directly from the manufacturer in containers holding greater quantities of liquor than are sold to a retail consumer. The department must establish the form of the application for the special food manufacturer's license.

SECTION 61-6-720. Licensing of bakeries using alcoholic beverages as ingredients; fee; restriction on use.

Notwithstanding any other provision of this title, a person who operates in this State a bakery for the preparation of food items, in which food items alcoholic beverages are used as ingredients, and which food items are manufactured for and sold at wholesale, must apply for a special bakery food manufacturer's license from the department, in accordance with Section 61-2-100, to purchase the alcoholic beverages from a wholesaler licensed pursuant to Section 61-6-100(2), or from a retailer licensed pursuant to Section 61-6-100(3), or from a manufacturer in containers holding greater quantities of alcoholic liquor than wholesalers or retailers have authority to sell. The department must establish the form of the application for the special bakery food manufacturer's license. The license fee for this biennial license is one thousand dollars. Alcoholic liquor purchased pursuant to this section may only be used in the preparation of food items. The department must revoke the special bakery food manufacturer's license of any operator which permits the consumption of alcoholic liquor as a beverage of liquor purchased pursuant to this section or which transfers alcoholic liquor purchased pursuant to this section to any other person.

SUBARTICLE 9.

REFUSAL, SUSPENSION, OR REVOCATION OF LICENSES

SECTION 61-6-900. Death of licensee.

In the event of a licensee's death, except in the case of a license issued to more than one person, the personal representative of the deceased licensee may, with the consent of the probate court and upon permit of the department, continue the operation of the business covered by the license. If the personal representative elects to discontinue the business or if the department does not issue a permit for its continuance, the unearned portion of the license tax, computed on the basis of the cost of the license per month for the period for which the license was issued, must be refunded to the personal representative. Alcoholic liquors of the deceased which are subject to the control of the personal representative may be sold by him as provided in Section 61-6-950.

SECTION 61-6-910. Qualifications for license.

The department must refuse to issue any license under this article or Article 7 of this chapter if the department is of the opinion that:

(1) the applicant is not a suitable person to be so licensed;

(2) the store or place of business to be occupied by the applicant is not a suitable place; or

(3) a sufficient number of licenses have already been issued in the State, incorporated municipality, unincorporated community, or other community.

SECTION 61-6-920. Suspension or revocation of license.

The department may suspend or revoke a license issued under this article or Article 7 of this chapter if it determines that:

(1) the licensee is not a suitable person to hold the license; or

(2) the store or place of business occupied by the licensee is not a suitable place.

SECTION 61-6-930. Revocation of wholesaler's license.

The department must revoke the license of a wholesaler if proof is obtained that the wholesaler has a direct or an indirect interest in a retail store.

SECTION 61-6-940. Indebtedness of retailer to wholesaler.

The department must immediately revoke a retail license to sell alcoholic liquors if the licensee or an officer of the licensee is, during the effective period of the license, indebted to a wholesaler licensed by the department, except an indebtedness for current purchases of alcoholic liquors which are not past due.

SECTION 61-6-950. Sale of alcoholic liquors by former licensee.

Alcoholic liquors owned by or in possession of a licensee for sale at the time the license is suspended or revoked or otherwise terminated may, upon the issuance by the department of a permit, within the time fixed in the permit, and upon those conditions as the department specifies, be sold by the licensee to licensed manufacturers, wholesalers, or retail dealers or may, upon a permit issued by the department and within the time fixed in the permit, be sold to persons outside this State for resale outside the State. However, no deliveries or shipments may be made into another state whose laws prohibit the consignee from receiving or selling alcoholic liquors. The time fixed by the department in a permit under this section must not be less than sixty days.

SECTION 61-6-1035. Sampling of wines.

Notwithstanding the provisions of Section 61-6-1500, the sampling of wines containing over sixteen percent by volume of alcohol, cordials, and other distilled spirits sold in a retail alcoholic liquor store is authorized if the sampling is conducted as follows:

(1) No sample may be offered from more than four products at any one time.

(2) No more than one bottle of each of the four products to be sampled may be opened.

(3) The sampling must be held in a designated tasting area of the retail liquor store and all open bottles must be visible at all times. All open bottles must be removed at the conclusion of the tasting.

(4) Samples must be less than one-half ounce for each product sampled.

(5) No person may be served more than one sample of each product.

(6) No sampling may be offered for longer than four hours.

(7) At least ten days before the sampling, a letter detailing the specific date and hours of the sampling must be mailed first class to the South Carolina Law Enforcement Division.

(8) No sample may be offered to, or allowed to be consumed by, an intoxicated person or a person under the age of twenty-one years. This person must not be allowed to loiter on the store premises.

(9) The tastings must be conducted by the manufacturer or an agent of the manufacturer, and must not be conducted by a wholesaler, retailer, or employee of a wholesaler or retailer.

(10) No retail alcoholic liquor store may offer more than one sampling per day.

SUBARTICLE 11.

REGULATION OF MANUFACTURERS AND MICRO-DISTILLERIES

SECTION 61-6-1095. Definitions

For the purposes of this subarticle:

(A) "Micro-distillery" means a manufacturer who distills, blends, and bottles alcoholic liquors on the licensed premises in this State with an alcohol content greater than seventeen percent and who produces a maximum quantity of one hundred twenty-five thousand cases per year at the licensed premises.

(B) "Licensed premises" means a location where the micro-distillery or manufacturer is licensed pursuant to this subarticle for the manufacture, tasting, and retail sales of alcoholic liquors produced at the licensed location and includes those areas normally used by the licensee to conduct his business, and includes the producing areas, storage areas, tasting areas, selling areas, and parking lots.

(C) "Person" means an individual, partnership, corporation, or other form of business entity.

SECTION 61-6-1100. Restrictions upon manufacturers.

A manufacturer may not own or operate more than one plant, establishment, or place of business for the manufacture of alcoholic liquors in any one county of this State, nor may he permit the drinking of alcoholic liquors on his premises, except as otherwise authorized by this subarticle.

SECTION 61-6-1110. Manufacturer's license; fee.

The department may issue a manufacturer's license to a person to manufacture alcoholic liquors in the State subject to the requirements of this chapter and a payment of a biennial manufacturer license fee of fifty thousand dollars. This section is not applicable to a micro-distillery as defined and licensed pursuant to the provisions of this subarticle.

SECTION 61-6-1120. Micro-distillery licenses; fee.

(A) The department may issue a micro-distillery license to a person to operate one micro-distillery in the State subject to the requirements of this chapter and payment of a biennial micro-distillery license fee of five thousand dollars.

(B) A micro-distillery is not required to obtain an additional manufacturing and retail liquor license required pursuant to this title.

SECTION 61-6-1130. Tastings and sales of alcoholic liquors to consumers at licensed premises; remission of taxes; maintenance of records.

(A) A micro-distillery or manufacturer desiring to offer tastings and sales of alcoholic liquors to consumers at its licensed premises shall remit taxes to the department for alcoholic liquors sold and dispensed in an amount equal to taxes paid by wholesalers on alcoholic liquors.

(B) Alcoholic liquors produced and sold on a licensed premises pursuant to this subarticle must be taxed and remitted as provided in Chapter 33, Title 12. The micro-distillery or manufacturer licensee shall maintain adequate records to ensure the collection of this tax.

SECTION 61-6-1140. Tastings and retail sales on licensed premises; limitations.

A holder of a valid micro-distillery or manufacturer license issued by the State may permit tastings and retail sales of the alcoholic liquors produced at the licensed premises subject to the following limitations and any other limitations provided in this subarticle:

(1) tastings by and sales to consumers must be held in conjunction with a tour by the consumer of the on-site licensed premises;

(2) the micro-distillery or manufacturer shall establish appropriate protocols to ensure that a consumer sold or served alcoholic liquors pursuant to this section is not under twenty-one years of age and that a consumer shall not attend more than one tasting in a day;

(3) the micro-distillery or manufacturer shall dispense alcoholic liquors for tasting in quantities not greater than one-half ounce per sample;

(4) the micro-distillery or manufacturer may not dispense more than one and one-half ounces to an individual consumer in one day;

(5) tastings and sales may occur only between the hours of nine a.m. and seven p.m., Monday through Saturday;

(6) the micro-distillery or manufacturer may charge for alcoholic liquors consumed at a tasting, but must collect and remit the liquor by the drink excise tax pursuant to the provisions of Chapter 33, Title 12;

(7) tastings may not occur in conjunction with the service of food in a restaurant setting; and

(8) only brands of alcoholic liquors actually manufactured, distilled, or fermented at and distributed to wholesalers from the licensed premises may be sold or offered for tasting.

SECTION 61-6-1150. Tastings and retail sales; additional limitations and requirements.

Authorization by this section of sales and tastings at licensed premises of a micro-distillery or manufacturer is expressly intended for the promotion of education regarding production of alcoholic liquors in the State and not to create competition between producers and retailers. A holder of a valid micro-distillery or manufacturer license issued by the State may:

(1) sell in any quantities the alcoholic liquors produced at the licensed premises to a wholesaler licensed by the State;

(2) transport in any quantities the alcoholic liquors produced at the licensed premises out of state for sale outside of the State;

(3) sell at retail at the licensed premises only in quantities of 750-milliliter bottles the alcoholic liquors produced at the licensed premises, but only if the labels for the bottles are marked "not for resale";

(4) sell at retail no more than three 750-milliliter bottles of alcoholic liquors to a consumer in one business day;

(5) not allow consumption on the licensed premises of alcoholic liquors sold by the bottle at the licensed premises;

(6) maintain pricing of the alcoholic liquors sold at the licensed premises at a price approximating retail prices generally charged for identical alcoholic liquors in the county where the on-site premises is located;

(7) in addition to the sale of alcoholic liquors as authorized by this section, sell items promoting the brand or brands of alcoholic liquors produced at that location in a room on the licensed premises separate from the locations of the tastings; and

(8) not sell or store goods, wares, or merchandise in or from the room in which alcoholic liquors are sold or tasted.

SECTION 61-6-1160. Violation of provisions of subarticle; penalties.

Except as otherwise provided in this title:

(A) a person who transports, possesses, or consumes alcoholic liquors and who violates a provision of this subarticle is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days; and

(B) a person licensed pursuant to this subarticle who violates a provision of this subarticle must:

(1) for a first offense, be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than thirty days, or both;

(2) for a second offense within three years of the first offense, be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than one hundred eighty days, or both; or

(3) for a third offense within three years of the first offense, be fined not less than five hundred dollars and have his license revoked permanently; and

(C) a person licensed pursuant to this subarticle who acts to avoid payment of the excise tax imposed on the serving of alcoholic liquors by the drink provided for in Chapter 33, Title 12 must be fined not less than one thousand dollars and have his license revoked permanently.

SUBARTICLE 13.

REGULATION OF WHOLESALERS

SECTION 61-6-1300. Restrictions upon wholesalers.

No wholesaler may:

(1) sell, barter, exchange, give, transfer, or deliver for consumption alcoholic liquors to a person not having a retail dealer's license issued under this article;

(2) permit the drinking of alcoholic liquors on his premises;

(3) condition the sale of alcoholic liquors to a retail dealer upon the purchase or receipt of another kind or brand of alcoholic liquors than that ordered by the retail dealer;

(4) sell alcoholic liquors between the times of sundown and sunrise;

(5) sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if (a) the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors and (b) the electronic transfer is initiated by the wholesaler no later than one business day after delivery;

(6) directly or indirectly, individually or as a member of a partnership or an association, as a member or stockholder of a corporation, or as a relative to a person by blood or marriage within the third degree, have an interest in a business, store, or establishment dealing in alcoholic liquors except the store or place of business covered by his wholesaler's license; or

(7) redeem proof-of-purchase certificates for any promotional item.

SECTION 61-6-1310. Separate store or warehouse.

A wholesaler must, for the purpose of conducting his business under his wholesaler's license, maintain a separate store or warehouse and no other goods, wares, or merchandise except nonalcoholic beverages may be kept or stored therein. No place of amusement may be maintained in the place or in the same building or in connection therewith.

SECTION 61-6-1320. Monthly statements.

A wholesaler must file with the department, on or before the first day of each month, a statement showing the stock of alcoholic liquors received by him during the preceding thirty days, and additional reports the department requires.

SUBARTICLE 15.

REGULATION OF RETAIL DEALERS

SECTION 61-6-1500. Restrictions upon retail dealers.

(A) A retail dealer may not:

(1) sell, barter, exchange, give, or offer for sale, barter, or exchange, or permit the sale, barter, exchange, or gift, of alcoholic liquors without regard to the size of the container:

(a) between the hours of 7:00 p.m. and 9:00 a.m.;

(b) for consumption on the premises;

(c) to a person under twenty-one years of age;

(d) to an intoxicated person; or

(e) to a mentally incompetent person;

(2) permit the drinking of alcoholic liquors in his store or place of business;

(3) sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if:

(a) the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors; and

(b) the electronic transfer is initiated by the retailer no later than one business day after delivery; or

(4) redeem proof-of-purchase certificates for any promotional item.

However, during restricted hours a retail dealer is permitted to receive, stock, and inventory merchandise, provide for maintenance and repairs, and other necessary, related functions that do not involve the sale of alcoholic liquors.

(B)(1) It is unlawful for a person licensed to sell alcoholic liquors pursuant to the provisions of this section to knowingly and wilfully refill, partially refill, or reuse a bottle of lawfully purchased alcoholic liquor, or otherwise tamper with the contents of the bottle.

(2) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:

(a) for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;

(b) for a second or subsequent offense, must be fined one thousand dollars or imprisoned not more than six months, or both.

(3) In addition to the penalties provided in subsection (B), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.

(4) The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section. A person who violates this provision must, upon conviction, have his license revoked permanently.

(C) A retail dealer must keep a record of all sales of alcoholic liquors sold to establishments licensed for on-premises consumption. The record must include the name of the purchaser and the date and quantity of the sale by brand and bottle size.

(D) It is unlawful to sell alcoholic liquors except during lawful hours of operation.

SECTION 61-6-1505. Retail dealer may be licensed to cash checks.

Notwithstanding any other provision of law, a retailer dealer may be also licensed under Chapter 41 of Title 34 in order to engage in check cashing services in the retail premises.

SECTION 61-6-1510. Separate store or place of business; advertising encouraging underage drinking.

A retail dealer must maintain a separate store or place of business with not more than two means of public ingress or egress which must be on the front or the same side of the building, except that the doors may be located at the corner of two adjacent sides of the building. One additional door, not in the front, is allowed to be used solely for the receipt of commercial deliveries and as an emergency exit.

Retail dealers are prohibited from using in an advertisement for alcoholic liquor or wine a subject matter, language, or slogans addressed to and intended to encourage persons under twenty-one years of age to purchase or drink alcoholic liquor or wine.

SECTION 61-6-1530. Signs required to be posted.

A retail dealer must have posted in his place of business signs with the following words printed thereon:

(1) "The possession of beer, wine, or alcoholic liquors, by a person under twenty-one years of age is a criminal offense under the laws of this State, and it is also unlawful for a person to knowingly give false information concerning his age for the purpose of purchasing beer, wine, or liquor". The department must prescribe by regulation the size of the lettering and the location of the sign on the seller's premises.

A retail seller of alcoholic liquors who fails to display this sign is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. A person found guilty of a violation of Section 61-4-70 and this subsection may not be sentenced under both Section 61-4-70 and this subsection for the same offense.

(2) "A person may transport alcoholic liquors to and from a place where alcoholic liquors may be lawfully possessed or consumed; but if the cap or seal on the container has been opened or broken, it is unlawful to transport alcoholic liquors in a motor vehicle, except in the luggage compartment or cargo area". The size of the lettering and approved locations on the retail dealer's premises must be provided for by rules and regulations of the department.

SECTION 61-6-1540. Nonalcoholic merchandise.

(A) Except as provided in subsection (B), no other goods, wares, or merchandise may be kept or stored in or sold in or from a retail alcoholic liquor store or place of business, and no place of amusement may be maintained in or in connection with the store. However, retail dealers may sell:

(1) drinking glassware packaged together with alcoholic liquors if the glassware and alcoholic liquors are packaged together by the wholesaler or producer in packaging provided by the producer;

(2) nonalcoholic items, other than beer or wine, packaged together with alcoholic liquors if the nonalcoholic items and alcoholic liquors are in sealed packages and are packaged together by the alcoholic liquor producer at its place of business; and

(3) lottery tickets under the provisions of Chapter 150 of Title 59.

(B) Retail dealers licensed pursuant to the provisions of this article may sell all wines in the stores or places of business covered by their respective licenses, whether declared alcoholic or nonalcoholic or nonintoxicating by the laws of this State. Wines containing more than sixteen percent of alcohol by volume may be sold only in licensed alcoholic liquor stores or in establishments licensed to sell and permit consumption of alcoholic liquors by the drink. The provisions of this section do not amend, alter, or modify the taxes imposed on wines or the collection and enforcement of these taxes.

SECTION 61-6-1550. Carriers engaged in interstate travel.

The restrictive provisions of this article relating to retail dealers do not apply to sales of alcoholic liquors by railroad, Pullman, or airline companies to passengers on interstate trains or aircraft for consumption thereon; and to this end, these sales are permitted.

SECTION 61-6-1555. Purchase of beer, wine, and alcoholic liquor directly from wholesaler by airline companies; use by persons other than airline passengers; penalties.

Notwithstanding any other provision of law, an airline company may purchase beer, wine, and alcoholic liquor directly from a wholesaler licensed pursuant to the provisions of Section 61-4-520(3) or Section 61-6-100(2). A wholesaler may sell and deliver beer, wine, and alcoholic liquor to an airline company for use on the company's airplanes. A person other than an airline passenger who uses beer, wine, or alcoholic liquor purchased pursuant to the provisions of this section for another purpose other than the sale or use by the airline company on its airplanes is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than six months, or both. Each violation of this section constitutes a separate offense.

SECTION 61-6-1560. Discounts on alcoholic liquors or nonalcoholic items.

Notwithstanding any other provision of law, a retail dealer, wholesaler, or producer may offer discounts on alcoholic liquors or nonalcoholic items through the use of premiums, coupons, or stamps redeemable by mail.

ARTICLE 5.

REGULATION OF ALCOHOLIC LIQUORS

SUBARTICLE 1.

BIENNIAL LICENSES AND LICENSEES

SECTION 61-6-1600. Nonprofit organizations; time when sale of alcoholic beverages prohibited.

(A) A nonprofit organization which is licensed by the department pursuant to the provisions of this article may sell alcoholic liquors by the drink. A member or guest of a member of a nonprofit organization may consume alcoholic liquors sold by the drink upon the premises between the hours of ten o'clock in the morning and two o'clock the following morning.

(B) An employee or agent of an establishment licensed as a nonprofit organization is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on the licensed premises between the hours of two o'clock in the morning and ten o'clock in the morning. A violation of this provision is a violation against the organization's license.

SECTION 61-6-1610. Food-service establishments or places of lodging; Sunday and other time restrictions on sale of alcoholic beverages; refilling bottles.

(A) Except on Sunday, it is lawful to sell and consume alcoholic liquors sold by the drink in a business establishment between the hours of ten o'clock in the morning and two o'clock the following morning if the establishment meets the following requirements:

(1) the business is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging; and

(2) the business has a license from the department authorizing the sale and consumption of alcoholic liquors by the drink, which is displayed conspicuously on the main entrance to the premises and clearly visible from the outside.

(B) Notwithstanding another provision of this article, the licensed premises of a business establishment which is bona fide engaged primarily and substantially in the preparation and service of meals and which holds a valid license for the sale and consumption of alcoholic liquors by the drink do not extend to any portion of the business establishment or the property upon which it is located which is designed as or used for a parking area even though food may be served in the area.

(C) An establishment licensed pursuant to the provisions of this article may use alcoholic liquors in the preparation of food without obtaining the license provided for in Section 61-6-700.

(D) Any licensee, employee, or agent of an establishment licensed as a food service establishment or place of lodging is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on the licensed premises between the hours of two o'clock in the morning and ten o'clock in the morning. However, any licensee, employee, or agent of an establishment licensed as a food service establishment or place of lodging is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on Sunday unless the establishment has been issued for that Sunday a temporary permit pursuant to the provisions of Section 61-6-2010. A violation of this subsection is a violation against the establishment's license.

(E)(1) It is unlawful for a person licensed to sell alcoholic liquor by the drink pursuant to the provisions of this section to knowingly and wilfully refill, partially refill, or reuse a bottle of lawfully purchased alcoholic liquor, or otherwise tamper with the contents of the bottle.

(2) A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:

(a) for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;

(b) for a second or subsequent offense, must be fined one thousand dollars or imprisoned for not more than six months, or both.

(F) In addition to the penalties provided in subsection (E), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.

(G) The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section. A person who violates this provision must, upon conviction, have his license revoked permanently.

(H) An establishment licensed pursuant to the provisions of Section 61-6-20(2) as a business that is bona fide engaged primarily and substantially in the preparation and serving of meals is authorized to continue to operate as the licensed establishment so long as the licensed establishment maintains a Grade A retail food establishment permit from the Department of Health and Environmental Control. Upon notice by the Department of Health and Environmental Control to the licensed establishment and to the Department of Revenue that the retail food establishment permit has been reduced to a grade below Grade A, the licensed establishment has thirty days within which to request a subsequent inspection by the Department of Health and Environmental Control. If a subsequent inspection is not requested within thirty days after the reduction in a grade below Grade A, or the subsequent inspection results in a grade below Grade A, then the Department of Revenue shall suspend the license of the licensed establishment until the Department of Health and Environmental Control issues a Grade A retail food establishment permit.

(I) For purposes of this section:

(1) "Kitchen" means a separate and distinct area of the business establishment that is used solely for the preparation, serving, and disposal of solid foods that make up meals. The area must be adequately equipped for the cooking, serving, and storage of solid foods and must include at least twenty-one cubic feet of refrigerated space for food and a stove.

(2) "Meal" means an assortment of various prepared foods available to guests on the licensed premises during the normal mealtimes that occur when the licensed business establishment is open to the public. Sandwiches, boiled eggs, sausages, and other snacks prepared off the licensed premises but sold there are not a meal.

(3) "Primarily" means that the serving of the meals by a business establishment is a regular source of business to the licensed establishment, that meals are served upon the demand of guests and patrons during the normal mealtimes that occur when the licensed business establishment is open to the public, and that an adequate supply of food is present on the licensed premises to meet the demand.

SECTION 61-6-1620. Possession or consumption of alcoholic liquors on premises open to public.

(A) This article authorizes the possession or consumption of alcoholic liquors on premises open to the general public for which a license has been obtained pursuant to Sections 61-6-1600 or 61-6-1610.

(B) Alcoholic liquors may be possessed or consumed in separate and private areas of an establishment whether or not the establishment includes premises which are licensed pursuant to Sections 61-6-1600 or 61-6-1610, where specific individuals have leased these areas for a function not open to the general public.

SECTION 61-6-1630. License restriction; retail dealer on same premises as liquor by the drink licensee.

A person licensed to sell alcoholic liquor by the drink for on-premises consumption must not be licensed as a retail dealer on the same premises.

SECTION 61-6-1636. Purchasing and sale of alcoholic liquor by the drink.

(A) A person licensed by this article for sale and use for on-premises consumption shall purchase alcoholic liquor for sale by the drink from a licensed retail dealer with a wholesaler's basic permit issued pursuant to the Federal Alcohol Administration Act in any size bottle, except 1.75 liter size bottles.

(B) A licensed retail dealer with a wholesaler's basic permit issued pursuant to the Federal Alcohol Administration Act may deliver, in sealed containers, alcoholic liquor in any size bottle, except 1.75 liter size bottles, to a person licensed by this article to sell alcoholic liquors for on-premises consumption.

SECTION 61-6-1637. Substituting brands of alcoholic liquor.

A person licensed pursuant to this article, including his agent, may not substitute another brand of alcoholic liquor in place of the brand specified by a customer unless the licensee or his agent has: (1) advised the customer that the desired brand is not available, and (2) received the customer's approval of substitution. A person who violates this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than ten days, or both.

SECTION 61-6-1640. Sampling of wine, cordials, and distilled spirits.

Notwithstanding the provisions of this subarticle or any other provision of law, an establishment licensed pursuant to Article 5 of this chapter is authorized to conduct samplings of wines in excess of sixteen percent alcohol, cordials, and distilled spirits, if the sampling is conducted as follows:

(1) the establishment must have a permanent seating capacity of fifty or more persons;

(2) samples may not be offered from more than four products at any one time;

(3) the sampling must be held in the bar area of a licensed establishment and all open bottles must be visible at all times. All open bottles must be removed at the conclusion of the tasting;

(4) samples must be less than one-half ounce for each product sampled;

(5) a person may not be served more than one sample of each product;

(6) sampling may not be offered for more than four hours;

(7) at least five days before the sampling, a letter detailing the specific date and hours of the sampling must be mailed first class to the South Carolina Law Enforcement Division;

(8) a sample may not be offered to, or allowed to be consumed by, an intoxicated person or a person under the age of twenty-one years;

(9) a licensed establishment may not offer more than one sampling each day; and

(10) the sampling must be conducted by the manufacturer or wholesaler or an agent of the manufacturer or wholesaler.

SUBARTICLE 3.

APPLICATIONS FOR BIENNIAL LICENSES

SECTION 61-6-1800. License required.

No person, corporation, or organization for whose premises a license is required pursuant to subarticle 1 of this article may knowingly allow the possession or consumption of alcoholic liquors upon the premises unless a valid license issued pursuant to Section 61-6-1820 has been obtained and is properly displayed.

SECTION 61-6-1810. Applications.

(A) A person making application for a license under subarticle 1 of this article must submit his application to the department. The applicant must pay a nonrefundable filing fee of one hundred dollars which must accompany the initial application for each location. The department has exclusive authority in issuing, renewing, suspending, or revoking a license pursuant to the provisions of this article.

(B) Applications for licenses must also be accompanied by appropriate license fees payable to the department. License fees must be deposited with the State Treasurer or are refundable if a license is not issued. The schedule of fees for the license is:

(1) one thousand, five hundred dollars biennially for a nonprofit organization, as defined in Section 61-6-20(6);

(2) one thousand, five hundred dollars biennially for a business establishment, as described in Section 61-6-1610.

(C) A person who initially applies for a license after the first day of a license period must pay license fees in accordance with the schedule provided in this subsection. During the:

(1) first quarter of the license period: the entire fee;

(2) second quarter of the license period: three-fourths of the prescribed fee;

(3) third quarter of the license period: one-half of the prescribed fee;

(4) final quarter of the license year: one-fourth of the prescribed fee.

SECTION 61-6-1820. Criteria for license; notice.

The department may issue a license under subarticle 1 of this article upon finding:

(1) The applicant is a bona fide nonprofit organization or the applicant conducts a business bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging.

(2) The applicant, if an individual, is of good moral character or, if a corporation or association, has a reputation for peace and good order in its community, and its principals are of good moral character.

(3) As to business establishments or locations established after June 20, 1967, Section 61-6-120 has been complied with.

(4) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, municipality, or community in which the applicant proposes to engage in business. The department shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published in the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. The notice must:

(a) be in the legal notices section of the newspaper or an equivalent section if the newspaper has no legal notices section;

(b) be in large type, covering a space of one column wide and at least two inches deep; and

(c) state the type license applied for and the exact location of the proposed business.

An applicant for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if it is approved by the department.

(5) Notice has been given by displaying a sign for fifteen days at the site of the proposed business. The sign must:

(a) state the type of license sought;

(b) state where an interested person may protest the application;

(c) be in bold type;

(d) cover a space at least twelve inches high and eighteen inches wide;

(e) be posted and removed by an agent of the division.

(6) The applicant is twenty-one years of age or older.

(7) The applicant is a legal resident of the United States, has been a resident of this State for at least thirty days before the date of application, and has maintained his principal place of abode in this State for at least thirty days before the date of application.

(8) The applicant has not been convicted of a felony within ten years of the date of application.

Upon the written request of a person who resides in the county where the license is requested to be issued, the department must not issue the permanent license until interested persons have been given an opportunity to be heard.

SECTION 61-6-1825. Protest of issuance or renewal of license; attendance at hearing; court costs and other penalties.

(A) A person residing in the county in which a license pursuant to the provisions of subarticle 1 of this article is requested to be granted, or a person residing within five miles of the location for which a permit pursuant to the provisions of subarticle 1 of this article is requested, may protest the issuance or renewal of the license if he files a written protest providing:

(1) the name, address, and telephone number of the person filing the protest;

(2) the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;

(3) the specific reasons why the application should be denied; and

(4) whether or not he wishes to attend a contested case hearing before the Administrative Law Court.

(B) Upon receipt of a timely filed protest, the department must determine the protestant's intent to attend a contested hearing before the Administrative Law Court. If the protestant intends to attend a contested hearing, the department must not issue the permanent license but must forward the file to the Administrative Law Court.

(C) If the protestant during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed invalid, and the department shall continue to process the application and shall issue the license if all other statutory requirements are met.

(D) A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a penalty to include court costs.

SECTION 61-6-1830. Suspension, revocation, or nonrenewal of license.

The department may suspend, revoke, or refuse to renew a license issued pursuant to subarticle 1 of this article upon finding that:

(1) the applicant no longer meets the requirements of Section 61-6-1820; or

(2) the applicant has violated since the issuance of the license any regulation; or

(3) the applicant has violated since the issuance of the license any provision of the ABC Act; or

(4) the applicant permits entertainment on the licensed premises where a person is in a state of undress so as to expose the human male or female genitals, pubic area, or buttocks cavity with less than a full opaque covering.

SUBARTICLE 5.

TEMPORARY LICENSES

SECTION 61-6-2000. Temporary permits for nonprofit organizations; criminal background checks.

(A) In addition to the licenses authorized pursuant t