SC Department of Revenue Releases Summary of Stone Bill

In applicable part, the language from Information Letter is copied and annotated below:

“Breweries may sell beer brewed on the premises for on premises consumption without the requirement that consumers take a full tour and without a separate license, if the following requirements are met:

1. Sales must be made within an area of the licensed premises that has been approved by the rules and regulations of the Department of Health and Environmental Control (DHEC) governing eating and drinking establishments and other food service establishments.
2. The brewery must comply with all state and local laws concerning hours of operation applicable to eating and drinking establishments and other food service establishments holding permits to sell beer and wine for on-premises consumption.
3. The brewery must comply with the discount pricing provisions [relating to free offerings, half-price offerings, two or more for the price of one offerings and happy hour pricing], applicable to persons holding permits to sell beer and wine for on-premises consumption.
4. The price for beer sold by the brewery must approximate retail prices generally charged for identical beverages by on-premises retailers elsewhere in the same county.
5. Consumers must not be intoxicated or under age 21.
6. The brewery must remit appropriate excise taxes, as well as appropriate sales and use taxes and local hospitality taxes.
7. Signage posted at each entrance and exit and other places visible during a tour must inform consumers of: (a) the alcoholic content by weight of beer available in the brewery and (b) the penalties for conviction for driving under the influence, unlawful transport of an alcoholic beverage container and unlawful transfer of alcohol to minors.
8. The brewery must provide South Carolina Department of Alcohol and Other Drug Abuse Services (DAODAS) approved training for its server staff.
9. The brewery must maintain liability insurance coverage of at least $1 million for the biennial license period and provide proof of insurance to the State Law Enforcement Division (SLED) and the Department’s Alcoholic Beverage Licensing section within 10 days of receiving its biennial license.
10. A wholesaler must not provide and a brewery must not accept services, equipment, fixtures, or free beer . . ., except [for certain draft beer equipment replacement parts of nominal value and certain point of sale advertising and product display items].
11. The brewery must not discriminate in pricing at the producer or wholesaler levels.

Separate Permit to Sell Other Beer and Wine for On-Premises Consumption. A brewery with an area of its licensed premises approved by the rules and regulations of the Department of Health and Environmental Control governing eating and drinking establishments, and other food service establishments may apply for a separate permit to sell beer and wine at retail for consumption within the approved area. The separate permit allows sales of wine and beer produced by another licensed producer and purchased from a wholesaler through the three tier distribution chain . . ..”