CORRECTED AND REPRINTED

Indicates Matter Stricken

Indicates New Matter

Committee Report

March 15, 2023

S. 425

Introduced by Senators Talley, Turner, Adams, Bennett, Climer, Davis, Hembree, Hutto, M. Johnson, Kimbrell, McElveen, Scott and Shealy

S. Printed 03/16/23--S.

Read the first time January 19, 2023

________

The committee on Senate Judiciary

To who was referred a Bill (S. 425) to amend the South Carolina Code of Laws by amending Section 61-2-170, relating to drive-through or curbside service of alcoholic beverages, so as to provide certain, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

    Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

SECTION X. Section 12-36-71 of the S.C. Code is amended to read:

    Section 12-36-71.  (A)(1) "Marketplace facilitator" means any person engaged in the business of facilitating a retail sale of tangible personal property by:

           (a) listing or advertising, or allowing the listing or advertising of, the products of another person in any marketplace where sales at retail occur;  and

           (b) collecting or processing payments from the purchaser, either directly or indirectly through an agreement or arrangement with a third party.

       (2) If a person meets the criteria set forth in item (1), then that person is a marketplace facilitator regardless of whether the person receives compensation or other consideration in exchange for his services.

    (B) A marketplace may be physical or electronic and includes, but is not limited to, any space, store, booth, catalog, website, television or radio broadcast, or similar place, medium, or forum.

    (C) For purposes of subsection (A), a marketplace facilitator includes any related entities assisting the marketplace facilitator in sales, storage, distribution, payment collection, or in any other manner, with respect to the marketplace.

    (D) When a marketplace facilitator is comprised of multiple entities, the entity that lists or advertises, or allows the listing or advertising of, the products sold at retail in the marketplace is the entity responsible for remitting the sales and use tax to the State.

    (E) Marketplace facilitator does not include an entity that is a delivery network company; except, that a delivery network company that meets the definition of "marketplace facilitator" in subsection (A)(1) above may elect, in a reasonable manner and duration prescribed by the department, to be deemed a marketplace facilitator pursuant to this chapter.

       (1) "Delivery network company" means a business entity that maintains an internet website or mobile application used to facilitate delivery services for the sale of local products.

       (2) "Delivery services" means the pickup of one or more local products from a local merchant and delivery of the local products to a customer.

       (3) "Local merchant" means a third-party merchant including, but not limited to, a kitchen, restaurant, grocery store, retail store, convenience store, or business of another type.

Amend the bill further, SECTION 3, by striking Section 61-4-45(B)(2) and (3) and inserting:

       (2) the delivery of beer or wine beyond the premises authorized in subsection (A)(1), including delivery through a third-party delivery service or the retailer;

       (3) the drive-through pick up of beer or wine; or

       (4) the curbside delivery or pickup through curbside service of containers of beer or wine that, at the time of delivery or service to a customer's vehicle, are chilled.

Amend the bill further, SECTION 4.A., by striking Section 61-4-280(O) and inserting:

    (O) Except for purposes of calculating sales tax, a customer order made through a delivery service licensee or directly through a retail dealer shall result in a sale deemed to have been made on the retail dealer's licensed premises.

Amend the bill further, by deleting SECTION 4.B.

Amend the bill further, SECTION 5, by striking Section 61-6-1570(B)(2) and (3) and inserting:

       (2) the delivery of alcoholic liquors beyond the premises authorized in subsection (A)(1), including delivery through a third-party delivery service or the retailer;

       (3) the drive-through pick up of alcoholic liquors; or

       (4) the curbside delivery or pickup through curbside service of containers of beer or wine that have been chilled.

Amend the bill further, SECTION 6.A., by striking Section 61-6-1580(O) and inserting:

    (O) Except for purposes of calculating sales tax, a customer order made through a delivery service licensee or directly through a retail dealer shall result in a sale deemed to have been made on the retail dealer's licensed premises.

Amend the bill further, by deleting SECTION 6.B.

Amend the bill further, by striking SECTION 8 and inserting:

SECTION 8.  This act takes effect one hundred twenty days after approval by the Governor.

Renumber sections to conform.

Amend title to conform.

LUKE RANKIN for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill authorizes DOR to issue a license or permit allowing a retailer to offer curbside delivery or pick up through curbside delivery of sealed containers of beer, wine, or alcoholic liquors if the retailer:

has a clearly designated curbside area near or adjacent to its business,

requires a customer to provide a valid government-issued identification