How did the rules for temporary beer and wine permits at South Carolina special events change effective January 1, 2011 (per SC IL #10-13)?

Plain-English summary

Effective January 1, 2011, South Carolina limited who can get a temporary beer and wine permit for a fair or special event to nonprofit organizations — individuals and businesses can no longer obtain one for functions held after December 31, 2010. S.C. Code § 61-4-550 lets the Department issue temporary beer and wine permits for up to 15 days at a fee of $10 per day, for locations at fairs and special functions.

Prior law (functions on or before December 31, 2010): individuals, businesses, and nonprofit organizations could all apply.

Revised law (functions on or after January 1, 2011): 2010 Act No. 259, Section 1 amended § 61-4-550 to require that an applicant be a "nonprofit organization," defined as either:

1. an entity organized and operated exclusively for social, benevolent, patriotic, recreational, or fraternal purposes that is exempt from federal income tax under IRC § 501(c)(3), (4), (6), (7), (8), (10), or (19); or
2. a political party or its affiliate duly certified by the Secretary of State.

As a result, individuals and businesses — and organizations that are not tax-exempt under the listed IRC provisions (other than political parties/affiliates) — cannot obtain the permit for functions after December 31, 2010.

The amendment also adds two procedural requirements:

• Criminal records check of all principals. The initial application must include a SLED (State Law Enforcement Division) criminal records check of all principals, conducted no more than 90 days before the application; failure means denial. A subsequent application needs a new check only if more than 2 years have passed or a principal has been added or replaced. "Principal" has the meaning in § 61-2-100(H)(2), and all principals are deemed the applicant.
• Notice to the sheriff. The applicant must give written notice to the county sheriff (or designee) at least 15 days before the first day of the event, unless waived; a written objection within 72 hours is grounds to deny the application.

Follow-up worth knowing: this nonprofit-only restriction was short-lived in practice. SC Information Letter #11-2 explains that a 2011 joint resolution (House Bill 3278) temporarily reopened the permits to individuals and businesses through June 30, 2011.

What this means for you

If you are a business or individual

Under Act 259, you could not obtain a temporary beer and wine permit for events after December 31, 2010 — the permit became nonprofit-only. Note, however, that the later SC Information Letter #11-2 temporarily restored eligibility for individuals and businesses effective January 27, 2011 through June 30, 2011, so which rule applied depended on the event date.

If you are a nonprofit or political party

You remain eligible, provided you fit the statutory definition (the listed IRC § 501(c) categories, or a Secretary-of-State-certified political party or affiliate). Plan for the SLED criminal records check of all principals and the 15-day sheriff notice.

Common questions

Q: Who could get a temporary beer and wine permit for a special event after December 31, 2010?
A: Under 2010 Act No. 259, only qualifying nonprofit organizations (certain IRC § 501(c) entities) and certified political parties/affiliates — not individuals or businesses.

Q: What new application steps did the amendment add?
A: A SLED criminal records check of all principals within 90 days of applying, and written notice to the county sheriff at least 15 days before the event (with a 72-hour objection window).

Q: Was this nonprofit-only restriction permanent?
A: No. SC Information Letter #11-2 explains that a 2011 joint resolution (House Bill 3278) temporarily reopened the permits to individuals and businesses through June 30, 2011.

Subject

Temporary Beer and Wine Permits for Special Events—New Requirements Effective 2011

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL10-13.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Web Address: www.sctax.org

SC INFORMATION LETTER 10-13

SUBJECT:

Temporary Beer and Wine Permits for Special Events—New
Requirements Effective 2011
(Alcoholic Beverage Licensing)

DATE:

October 14, 2010

REFERENCE:

S. C. Code Ann. Section 61-4-550 (2009)
Act No. 259, Section 1 (2010)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

Introduction
Code Section 61-4-550, which authorizes the Department to issue temporary 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 by legislation passed in 2010 and effective January 1,
2011. This information letter gives notice of new requirements for applications for special
functions that take place on or after January 1, 2011.

Current Law—For Special Functions on or Before December 31,
2010
Code Section 61-4-550 currently provides individuals, businesses and nonprofit organizations
may obtain temporary beer and wine permits, as follows:
The department may issue permits running for a period not exceeding fifteen days for a fee of
ten dollars per day. Such special permits shall be issued only for locations at fairs and
special functions.

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Revised Law—For Special Functions on or After January 1, 2011
Code Section 61-4-550 has been amended by 2010 Act No. 259, Section 1. The full text of the
revised statute is attached as Exhibit A. The following is a summary.
Permits restricted to nonprofit organizations. Under the amendment, an applicant for this
permit must be a “nonprofit organization,” defined as:

1. An entity that is organized and operated exclusively for social, benevolent, patriotic,
   recreational, or fraternal purposes, and that is exempt from federal income taxes pursuant to
   Internal Revenue Code Section 501(c)(3), (4), (6), (7), (8), (10), or (19); or
2. Political parties and their affiliates duly certified by the Secretary of State.
   Therefore, individuals and businesses will not be able to obtain a temporary beer and wine
   permit for functions held after December 31, 2010. Nor will organizations (other than political
   parties and their affiliates) that are not currently tax exempt under the listed provisions of the
   Internal Revenue Code.
   Criminal records check required for all principals. The initial application must be
   accompanied by a criminal records check of all principals of the organization, conducted by the
   State Law Enforcement Division not more than 90 days preceding the date of the application.
   Failure to comply will result in denial of the application.
   For a subsequent application, a new criminal records check is required only if (a) more than 2
   years have elapsed since the most recent criminal records check was conducted or (b) the
   nonprofit organization has added or replaced a principal.
   “Principal” has the same meaning as in Code Section 61-2-100(H)(2). All principals are deemed
   to be the applicant for this permit.
   Notification of sheriff required. The applicant must give written notice to the sheriff or
   sheriff’s designee in the county in which the fair or special event is to be held, a minimum of 15
   days before the first day of the event, unless the sheriff waives the 15-day requirement. An
   objection by the sheriff or sheriff’s designee within 72 hours of receipt of the notice, submitted
   in writing to the Department, is sufficient grounds to deny the application.
   Location. Unchanged is the requirement that the temporary beer and wine permits be issued
   only for locations at fairs and special functions.
   Penalties. The penalties imposed for violations of Article 1, Chapter 4, Title 61 apply to
   nonprofit organizations that are granted temporary permits under Code Section 61-4-550.
   Effective Date. The new law applies for special functions that take place on or after January 1,
   2011.

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Exhibit A
New Temporary Beer and Wine Permits Law for Special Functions
Occurring On or After January 1, 2011

Section 61-4-550.
(A) The department may issue permits to nonprofit organizations running for a period not
exceeding fifteen days for a fee of ten dollars per day. For purposes of this section, a 'nonprofit
organization' is an entity which is organized and operated exclusively for social, benevolent,
patriotic, recreational, or fraternal purposes, and which is exempt from federal income taxes
pursuant to Internal Revenue Code Section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(8),
501(c)(10), or 501(c)(19). It also includes political parties and their affiliates duly certified by the
Secretary of State. These special permits may be issued only for locations at fairs and special
functions.
(B) The department shall require the applicant to obtain a criminal records check conducted by
the State Law Enforcement Division within ninety days prior to an initial application. The
department shall deny the application if the criminal records check is not submitted with the
application and filing fee or if it was obtained more than ninety days before. For a subsequent
application, the applicant is not required to obtain a new criminal records check unless:
(1) more than two years have elapsed since the most recent criminal records check was
conducted; or
(2) the nonprofit organization has added or replaced a principal. For purposes of this
section, all principals are deemed to be the applicant.
(C) The department shall require the applicant to notify in writing a minimum of fifteen days
prior to the first day of a fair or special function the sheriff, or sheriff's designee, of the county in
which the fair or special function is to be located. Upon request of the applicant, the sheriff may
waive the fifteen day notification requirement. A timely objection within seventy-two hours of
the receipt of the notice by the sheriff, or his official designee, submitted in writing to the
department is sufficient grounds to deny the application.
(D) Organizations granted permits pursuant to this section are subject to penalties imposed
pursuant to violations of Article 1, Chapter 4, Title 61.
Effective Date: Applies to applications for special functions beginning on January 1, 2011.

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