In 2020, the South Carolina General Assembly passed three bills pertaining to alcohol. As we head full steam into 2021 lets recap some 2020 legislative changes that pertain to alcohol. Below are a few highlights from each bill along with a link to full content of the bill. If you have any questions, please contact our Alcohol Law Practice Group or call 864-633-0242.
- Beer Manufacturers, Brewers, and Importers – Prohibited Acts | Senate Bill 1099 (Act No. 169)
Effective Date: September 30, 2020Code Section 61-4-940 restricts certain dealings between beer manufacturers, brewers, importers, wholesalers, and retailers. Code Section 61-4-942 was added and provides additional restrictions so as to prohibit a manufacturer, brewer, or importer of beer from requiring a wholesaler of beer to undertake certain actions. Notwithstanding any existing beer distribution agreement to the contrary, a beer manufacturer, brewer, or importer shall not:1. Coerce or require a wholesaler to gather or submit sales records, retail placement, price, discount, rebate, or other details for beer brands not manufactured, brewed, or imported by the manufacturer, brewer, or importer;2. Mandate wholesaler employee hiring decisions or payment rates, including incentives;3. Require a wholesaler to pay or contribute marketing, advertising, or other funds for control or expenditure by the manufacturer, brewer, or importer; however, a wholesaler may agree, in writing and in advance of the payment or contribution, to spend or contribute wholesaler funds for a specified marketing or advertising plan or opportunity;
4. Ship, invoice, or initiate an electronic funds transfer payment for any quantity of beer exceeding any order or forecast submitted by a wholesaler, or include in a beer sales invoice charges for any items other than beer, freight, fuel, cooperage, dunnage, pallets, and related deposits;
5. Invoice or initiate an electronic funds transfer payment for point-of-sale advertising specialties or other items; however, a manufacturer, brewer, or importer may place an order and invoice or initiate an electronic funds transfer payment for point-of-sale advertising specialties or other items pursuant to a specific written agreement between the wholesaler and the manufacturer, brewer, or importer made prior to the placement of an order;
6. Attribute risk of loss, ownership, or other financial interest to a wholesaler for beer not in the wholesaler’s possession; or
7. Require a wholesaler to pay for development, installation, or use of any software owned or mandated by the manufacturer, brewer, or importer; however, a wholesaler may be required to maintain data in a format compatible with data format standards adopted by a manufacturer, brewer, or importer.
- Wine Samples Provided to Retailers by Producers and Wholesalers | House Bill 4963, Section 1 (Act No. 161)
Effective Date: September 28, 2020 Code Section 61-4-360 was added and provides that notwithstanding any other provision of law, (including Code Section 61-4-735(B)), a producer or wholesaler may give a sample of wine to a retailer who has not purchased the brand (as defined under 27 C.F.R. Section 6.11) from a producer or wholesaler in the past 365 days. A producer or wholesaler may not give a retail establishment more than 3 liters of any brand of wine annually. If a particular product is not available in a size within this quantity limitation, a producer or wholesaler may provide the next larger size to a retailer. Samples must be clearly marked “Sample – Not for resale.”In addition, Code Section 61-4-360 does not allow samples to be sold or provided to any employees under the age of 21, or to any retailer’s customers. The producer or wholesaler must remove all bottles at the conclusion of the sampling. - Alcoholic Beverage Samples Provided to Retailers by Producers and Wholesalers | House Bill 4963, Section 2 (Act No. 161)
Effective Date: September 28, 2020 Code Section 61-6-1650 was added and provides that notwithstanding any other provision of law, a producer or wholesaler may give a sample of wine in excess of 16% alcohol, cordial, or distilled spirit to a retailer who has not purchased the brand (as defined under 27 C.F.R. Section 6.11) from a producer or wholesaler in the past 365 days. A producer or wholesaler may not give a retail establishment more than 3 liters of any brand of wine in excess of 16% alcohol, cordial, or distilled spirit annually. If a particular product is not available in a size within this quantity limitation, a producer or wholesaler may provide the next larger size to a retailer. Samples of each bottle or other container must be clearly marked “Sample – Not for resale.”In addition, Code Section 61-6-1650 does not allow samples to be sold or provided to any employees under the age of 21, or to any retailer’s customers. The producer or wholesaler must remove all bottles at the conclusion of the sampling. - Brewery Sales for Off-Premises Consumption – Volume Restriction Increased | Senate Bill 993, Section 2 (Act No. 167)
Effective Date: September 29, 2020 and expires May 31, 2021 Code Section 61-4-1515, which allows breweries to sell beer to consumers which is brewed on the permitted premises, has been amended to increase the maximum amount of beer that may be sold to an individual per day for off-premises consumption to the equivalent of 576 ounces in total from the equivalent of 288 ounces in total. - Winery – Fair and Special Function Permit | Senate Bill 993, Section 1 (Act No. 167)
Effective Date: September 29, 2020 Code Section 61-4-730(A) provides that permitted wineries that produce and sell wine produced on their premises with at least 60% of the juice from fruit and berries that are grown in South Carolina may sell the wine at retail, wholesale, or both.Code Section 61-4-730(A) has been amended to further provide that such a winery is eligible for a special permit pursuant to Code Section 61-4-550 for sales at fairs and special functions. The amendment further provides that the gross income from wine sold at events for which a special permit has been issued must not exceed 10% of a permitted winery’s gross income per year from wine sales, and that income must be derived from sales at events that are promotional in nature. - Fair and Special Function Beer and Wine Permit – New Notice Requirement | Senate Bill 993, Section 3 (Act No. 167)
Effective Date: September 29, 2020Code Section 61-4-550, which authorizes the Department to issue one-day beer and wine permits running for a period not exceeding 15 days, for a fee of $10 per day, for locations at fairs and special functions, has been amended to add a new notification requirement for the applicant of a fair and special function permit.
Code Section 61-4-550(E) provides that beginning January 1, 2021 an applicant who has been issued a fair and special function permit under Code Section 61-4-550 must notify the State Law Enforcement Division and all local law enforcement with jurisdiction over the fair or special function site that alcohol will be served at the site. This notification must be made by the applicant at least 24 hours before the fair or special function begins.
