How does the South Carolina Department of Revenue decide penalties when a beer, wine, or liquor (ABL) licensee violates the alcohol laws, and when will it suspend or revoke a license?

Plain-English summary

This Revenue Procedure is the South Carolina Department of Revenue's penalty framework for administrative violations of the state's alcohol (ABL) laws — the rules governing the sale, distribution, and possession of beer, wine, and alcoholic liquors under Title 61. The Department revised it to line up with 2025's H. 3430 (the "Act," signed May 12, 2025), which amended Title 61 effective January 1, 2026.

The General Assembly sets penalty ranges that vary by (1) the specific law violated and (2) the type of license or permit the violator holds (the procedure treats "license" and "permit" as interchangeable). Within those statutory ranges, RP #26-1 tells the Department's staff how to assess penalties so they're applied uniformly and progressively — repeat and more serious violations draw stiffer sanctions, and the procedure updates the circumstances in which the Department will move to revoke a license.

Two honesty points are baked into the document itself. First, except for statutorily required penalties, the guidelines are just guidelines — the Department expressly says they do "not establish a binding norm," and it may go more or less severe when the facts call for it, weighing mitigating or aggravating circumstances. Second, the procedure describes the Department's usual process for an emergency (summary) suspension of a license and the kinds of situations that may warrant one, including seeking an expedited hearing and an order of revocation before the Administrative Law Court (ALC) under § 12-60-1340. The Department frames compliance, not punishment, as the primary goal.

This procedure supersedes SC Revenue Procedures #13-2 and #24-1.

What this means for you

Beer, wine, and liquor license holders (bars, restaurants, retailers, wholesalers)

If your business holds an ABL permit or license, this is the schedule the Department will consult when a violation is alleged — underage sales, sales during prohibited hours, permit/records violations, and the like. The penalty you face depends on which law you violated and what kind of license you hold, and it escalates with repeat violations. Because the 2025 amendments broadened some penalty ranges and made others more stringent, don't assume prior experience under the old guidelines (RP #13-2 or #24-1) still predicts the outcome for conduct on or after January 1, 2026.

Repeat-violation and revocation exposure

The guidelines are progressive: a first offense and a fourth offense are treated very differently, and the procedure updates when the Department will seek to revoke rather than fine or suspend. In serious or repeated cases the Department may pursue an emergency summary suspension and an expedited ALC hearing for revocation, supported by affidavits from Department personnel, with filings served by U.S. mail to your address on file with the Alcohol Beverage Licensing section. Keeping that address current and your compliance records clean directly affects your exposure.

Attorneys and compliance advisors

Because the penalties are guidelines rather than a binding norm (outside statutorily fixed penalties), there is room to present mitigating circumstances — the Department says it will consider (though not necessarily accept) such claims, and will consider aggravating circumstances raised by law enforcement. Map any alleged violation to the correct Title 61 provision and license type to find the applicable range, check whether a statutorily required penalty removes the Department's discretion, and account for the emergency-suspension/ALC track in § 12-60-1340 when the conduct is egregious.

Common questions

Q: Are these penalties mandatory?
A: Not generally. Apart from penalties the statute requires, the Department says these guidelines do not establish a binding norm — it can impose a more or less severe sanction based on the facts, including mitigating or aggravating circumstances.

Q: Why did the guidelines change for 2026?
A: The 2025 Act (H. 3430) amended Title 61's alcohol laws effective January 1, 2026. RP #26-1 revises the Department's penalty guidelines to comply — broadening some progressive penalty ranges, making others more stringent, and updating when the Department will seek revocation.

Q: When can the Department suspend my license immediately?
A: The procedure describes situations that may warrant an emergency (summary) suspension. In those cases the Department suspends and simultaneously seeks an expedited hearing and an order of revocation from the Administrative Law Court under § 12-60-1340.

Q: Which old guidance does this replace?
A: It supersedes SC Revenue Procedures #13-2 and #24-1, along with any prior documents or oral directives in conflict.

Citations and references

Statutes and legislation:

• S.C. Code Title 61 (2009 & Supp. 2025) — Alcohol Beverage Control / licensing laws
• 2025 S.C. Acts 42 (H. 3430) — amends Title 61 alcohol laws, effective January 1, 2026
• S.C. Code Ann. § 12-60-1340 — expedited hearing before the Administrative Law Court

Related SC advisory opinions (described in prose, not linked): RP #13-2 and RP #24-1 (both superseded by this procedure).

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RP26-1.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC REVENUE PROCEDURE #26-1
SUBJECT:

Penalty Guidelines for ABL Violations
(ABC Laws)

EFFECTIVE DATE:

January 1, 2026

SUPERSEDES:

SC Revenue Procedure #13-2
SC Revenue Procedure #24-1
All previous documents and any oral directives in conflict herewith.

REFERENCE:

Title 61 (2009 and Supp. 2025)
2025 S.C. Acts 42

AUTHORITY:

S.C. Code Ann. § 12-4-320 (2014)
S.C. Code Ann. § 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Procedure is to provide procedural guidance to
the public. It is an advisory opinion issued to assist in the administration
of laws and regulations by providing guidance that may be followed in
order to comply with the law. It is effective until superseded or modified
by a change in statute, regulation, court decision, or another Departmental
advisory opinion.

INTRODUCTION
On May 12, 2025, Governor Henry McMaster signed Bill Number H. 3430 (“Act”), effective
January 1, 2026, which amends portions of the alcohol laws found in Title 61. The purpose of this
Revenue Procedure is to amend the Department’s penalty guidelines for administrative violations
of the State’s alcohol laws to comply with the amendments in the Act.
This advisory opinion provides guidelines of the State’s alcohol laws for the Department to use in
assessing penalties for violations of the statutes and regulations governing the sale, distribution, or
possession of beer, wine, and alcoholic liquors. The General Assembly established penalty ranges
for violations depending on the law that was violated, as well as the type of license(s) authorizing
the sale of beer, wine, or alcoholic liquors held by the person or entity committing the violation(s). 1
1

In some cases, the term “license” is used in connection with liquor, while the term “permit” is
used in connection with beer and wine. However, in this document the terms (and their derivatives)
are interchangeable.

The overall purpose of this procedure is to promote uniform penalty application, to provide
guidance regarding recent changes to the State’s alcohol laws, to provide a broader range of
progressive penalties for certain violations, and to provide for penalties that are more stringent for
some violations while updating the circumstances in which the Department will seek to revoke a
license. The Department may be flexible in situations that are particularly egregious or that fall
outside the specific situations described in the guidelines. These guidelines do not restrict the
Department's authority to impose any sanction within the statutory authority granted by the
General Assembly. 2
With the exception of any statutorily required penalties, these penalties are guidelines only. This
advisory opinion does not establish a binding norm. There will likely be circumstances presented
that call for either a more severe or less severe sanction. As a general rule, the Department will
consider, although it may not accept, any claim of mitigating circumstances from a liquor license
holder and any claim of aggravating circumstances from law enforcement or other sources
regarding a beer and wine permit holder or a liquor license holder.
Additionally, this advisory opinion establishes the usual procedure that the Department will
employ when it seeks to suspend a license on an emergency basis and provides guidance on the
kinds of situations that may warrant an emergency suspension.
Finally, ensuring compliance with the law, not punishment, is the primary goal for administrative
penalties. Accordingly, except for the most serious offenses (see “Emergency Suspension” below)
and except for statutorily mandated penalties, 3 the Department adopts a progressive response to
assessing penalties. The penalties listed below provide a monetary sanction, a suspension, a
revocation, a cancellation, or some combination thereof.
OFFENSES AND PENALTY GUIDELINES
Revocations vs. Permanent Revocations
Unless otherwise stated (i.e., “permanent revocation” as opposed to “revocation”), the revocation
of a permit or license is not a permanent revocation, but is in effect for a fixed period of time. See
S.C. Code Ann. § 61-2-140(E) (“A person whose license or permit has been suspended or revoked
for a particular premises is not eligible to receive an additional new license or permit at another
location during the period the . . . revocation is in effect . . .”). An applicant is ineligible for a
permit under Chapter 4, Title 61 if the applicant had a permit revoked within two (2) years from
the date of the new application. See S.C. Code Ann. § 61-4-520(3). Further, an applicant is
ineligible for a license under Articles 3 or 7, Chapter 6, Title 61 if the applicant 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.” S.C. Code Ann. § 61-6-110(4).
Accordingly, unless specifically stated as a “permanent revocation,” any offense listed resulting
in a “revocation” will either result in a two (2) year or five (5) year revocation period depending
on the type of permit or license under which the violation occurred. Furthermore, “[n]o person
2

See, e.g., S.C. Code Ann. §§ 61-4-250 and 61-4-270.

3

See S.C. Code Ann. § 61-4-580 (as modified by 2025 Acts 42).
2

within the second degree of kinship to a person whose license or permit is suspended or revoked
may be issued a license or permit for the premises concerned for a period of one year after the date
of suspension or revocation.” S.C. Code Ann. § 61-2-140(D).
Licenses within Close Proximity
Generally, when the Department seeks suspension or revocation of a license it will also seek
suspension or revocation, respectively, of any other license issued to the same license holder at the
same location or at a location within close proximity. S.C. Code Ann. § 61-2-140(E). For example,
a license holder operating a restaurant with both a license to sell beer and wine and a license to
sell liquor by the drink on the restaurant premises holds multiple licenses for the same location. A
license holder operating separate, side-by-side retail stores for off-premises consumption, one
under a license to sell liquor at retail and the other under a license to sell beer and wine, maintains
licenses at locations that are in close proximity.
I.

Beer and Wine (Chapter 4) -- Off-Premise Consumption (Retail Sale) and OnPremise Consumption

Holders of permits issued under Chapter 4, Title 61 are prohibited from knowingly committing
the following acts:
a. Selling/transferring beer and/or wine to a person under 21 years of age (61-4580(A)(1); see also Regulation 7-200.4);
b. Selling beer or wine to an intoxicated person (61-4-580(A)(2));
c. Permitting gambling or games of change except certain game promotions (61-4580(A)(3)); 4
d. Permitting lewd, immoral, or improper entertainment (61-4-580(A)(4));
e. Permitting any act that constitutes a crime under the laws of South Carolina (61-4580(A)(5));
f. Permitting any act that tends to create a public nuisance (61-4-580(A)(5));
g. Selling, offering for sale, or possessing any beverage or alcoholic liquors the sale or
possession of which is prohibited on the licensed premises under the law of this State
(61-4-580(6)); and
h. Conducting, operating, organizing, promoting, advertising, running, or participating in
a “drinking contest” or “drinking game” (61-4-580(7)).
4

The possession of illegal gambling/gaming devices is unlawful and constitutes a crime under
S.C. Code Ann. § 12-21-2710. Accordingly, the Department reserves the right to issue an
administrative violation under section 61-4-580(5) instead of section 61-4-580(3) should a case
arise where such a change in the Department’s procedure is appropriate. In those cases, the
Department may issue an administrative violation under section 61-4-580(5) for possession of
illegal gambling/gaming machines on the licensed premises, after a magistrate finds the machines
to be illegal in a civil forfeiture proceeding under S.C. Code Ann. §12-21-2712. No criminal
citation or conviction will be required. According to section 12-21-2712, the Magistrate Court
determines the legality of machines seized by any law enforcement officer. See Mims Amusement
Co. v. S.C. Law Enforcement Div., 366 S.C. 141, 621 S.E.2d 344 (2005), and Allendale County
Sheriff’s Office v. Two Chess Challenge II, 361 S.C. 581, 606 S.E.2d 471 (2004).
3

As required by the Act, a permittee or licensee who violates any of these provisions shall receive
the following penalties 5:
1) First offense shall be fined two thousand five hundred ($2,500) dollars by the Department;
2) Second offense within two years of the first offense results in a suspension of the holder’s
permit for up to fourteen (14) days as determined by the Department; and
3) Third offense within three years of the first offense results in a revocation of the permit. 6
The penalties for violating other provisions of in Title 61 applicable to holders of beer and wine
permits are as follows:

1. Failure to maintain/produce physical or electronic copies
   of alcohol server certificates for all managers and alcohol
   servers throughout their employment (61-3-110(B)): 7

• $100 per violation

2. Permitting the service of alcohol for on-premises consumption
   by an individual(s) who has not completed an alcohol server
   training program approved by the Department (61-3-110): 8
   - $500 per violation
3. Permitting an alcohol server to be mentally or physically
   impaired or intoxicated by alcohol, drugs, or controlled
   substances while serving alcohol on behalf of the licensee (61-3-110(A)):
   1st offense
   2nd offense
   3rd offense
   day suspension
   4th offense

-$100 fine
-$500 fine

-$1,000 fine and a 5-

-30-day suspension

5

For detailed information on how these penalties affect collegiate sporting venues permitted under
S.C. Code Ann. § 61-4-523, see S.C. Revenue Procedure #25-2.
6

2025 S.C. Acts 42.

7

The requirement to maintain/produce physical or electronic copies of alcohol server certificates
for all managers and alcohol servers throughout their employment only applies to permits and
licenses for on-premise consumption. See S.C. Code Ann. § 61-3-100, et al.
8

See footnote 7; any requirements regarding the mandatory alcohol server training set forth in
Chapter 3, Title 61, only apply to permits and licenses for on-premise consumption. See S.C. Code
Ann. § 61-3-100, et al.
4

4. Failure to use a forensic digital identification system
to Validate the identification of a person attempting
to enter the licensed premises (61-2-145(F)): 9

-$750 per violation

5. Hindering/delaying inspection (61-4-230 and 61-4-250):
   1st offense
   2nd offense

• $200 + 30 day suspension
• Revocation

6. Licensee or Principal (including an undisclosed
   Principal) not of good moral character
   (61-2-100(D) and 61-4-520(1)):

• Revocation

7. Failure to maintain required amount of liability
   insurance (61-2-145 and 61-4-250) 10

• Indefinite Suspension

8. Failure to comply with the sign requirements,
   or to conspicuously post a retail permit (61-4-70,
   61-4-900, and Regs. 7-200.3 and 7-200.5):

• $100 per violation

9. Dishonored payments to beer and wine wholesalers
   (61-4-30 and 61-4-40):

• See SC Rev. Proc. #12-1

Mitigating Circumstances for Underage Sales
Prior to the Act, the Department could consider mitigating circumstances when imposing penalties
for violations of 61-4-580(A). With the addition of the statutory penalties provided in section 614-580(B) pursuant to the Act, the Department no longer has discretion to consider mitigating
circumstances when applying the Section 61-4-580(B) penalties. However, Section 61-4580(B)(2) allows the Department discretion to determine the proper suspension duration (up to
fourteen days) for a second offense of Section 61-4-580(A) within two years of the first offense.
As such, the Department may reduce a suspension for a second offense under Section 61-4-580(A)
from the maximum fourteen days if the following mitigating circumstances exist:

9

This requirement only applies to those permittees and licenses who sell alcoholic beverages for
on-premises consumption at any time between the hours of 12:00 a.m. and 4:00 a.m. See S.C.
Code Ann. § 61-2-145(F).
10

If a licensee or permittee remains open after 5:00 p.m. to sell alcoholic beverages for on-premise
consumption, they may qualify for mitigation of the required annual aggregate limit of their liquor
liability insurance if the licensee or permittee can establish one of more of the mitigation factors
set forth in S.C. Code Ann. § 61-2-145(E). However, a failure to maintain any claimed mitigation
factor is a failure to maintain the required amount of liquor liability insurance, resulting in an
indefinite suspension.
5

1. The permittee has documentation demonstrating the offending employee attended and
completed a penalty mitigation training program recognized by the Department within
a reasonable period of time (not to exceed one year) prior to the violation. This training
must contain instruction relevant to the prevention of underage sales. The permittee
must provide a copy of the materials used in the training. 11

2. The permittee utilizes internal, random checks of sales locations (e.g., visit to the
   offending store by a mystery shopper) to reasonably determine that sales procedures
   and identification verification procedures comply with established protocol. The
   permittee must have conducted this internal check within a reasonable period of time
   prior to the offense. This internal check must be relevant to the prevention of underage
   sales.
3. The permittee utilizes forensic digital identification systems, or other means acceptable
   to the Department, to verify the authenticity of identification at the point of sale. 12
   If recognized mitigating circumstances are present, the Department may, in its discretion, reduce
   suspensions under Section 61-4-580(B)(2) in duration. A permittee may offer other mitigating
   circumstances, but in every case the determination as to whether mitigating circumstances warrant
   a reduction in a suspension under Section 61-4-580(B)(2) is within the sole discretion of the
   Department. The Department does not consider the adverse financial impact that a suspension will
   have on a permit holder to be a mitigating circumstance.
   Aggravating Circumstances for Underage Sales
   If aggravating circumstances are present in an underage sale for beer and wine permit holders, the
   Department may impose a harsher penalty than set forth in this advisory opinion. In every case,
   the determination as to whether aggravating circumstances warrant an escalation in penalties is
   within the sole discretion of the Department, although the Department will not impose a sanction
   outside of the statutory authority granted by the General Assembly. Examples of aggravating
   circumstances include, but are not limited to, the following:
   11

For the Department to consider this as a mitigating circumstance for those who are licensed for
on-premises consumption under Article 5, this penalty mitigation training would have to be in
addition to the alcohol server training mandated to all on-premise licensees in Chapter 3, Title 61.
Refer to the Department’s website at https://dor.sc.gov/index.php/alcohol-beverage-licensingabl/recognized-training-programs for up-to-date information on training programs. The training
programs on the Department’s website may be recognized for the mandatory server training
pursuant to Chapter 3, Title 61, for mitigating purposes, or for both.
12

Section 61-2-145(F) requires all permittees and licensees who sell alcoholic beverages for onpremises consumption at any time between the hours of 12:00 a.m. and 4:00 a.m. to use a forensic
digital identification system that validates the identification of any person attempting to enter the
premises as a patron. If a permittee falls within this category of permittees who sell alcoholic
beverages for on-premises consumption between any time between the hours of 12:00 a.m. and
4:00 a.m., the permittee cannot use this mitigating circumstance as a means to try and reduce a
suspension under Section 61-4-580(B)(2).
6

1. The permittee’s prior violations, if any, are predominately or exclusively for sales to underage
individuals.

2. The permittee or its agent or employee who committed the offense did so by knowingly
   bypassing or overriding the permittee’s age verification system. This includes, but is not
   limited to, the use of an override feature in the system or the knowing input of false information
   into the system in order to facilitate the sale.
3. The permittee or its agent or employee who committed the offense failed to request personal
   identification during the sale of alcoholic liquors, beer, or wine.
4. Evidence demonstrating the permit holder’s disregard for complying with the alcohol laws of
   this state, including, but not limited to, evidence which indicates a lack of effort on the part of
   the permit holder to mitigate any future offenses occurring within its licensed premises.
5. Input from law enforcement regarding the detrimental nature of the permittee’s business
   operations.
6. Evidence demonstrating that the permit holder has failed to comply with the alcohol laws of
   this state at other licensed locations owned or controlled (in whole or in part) by the permit
   holder.
   II.

Alcoholic Liquor by the Drink—On-Premise Consumption (Article 5, Chapter 6)

1. All offenses except as specified below or as otherwise specified by statute:*
   - $500 13
   - $500 + 30-day suspension
   - $500 and Permanent revocation

1st offense
2nd offense
3rd offense

• To determine which of the progressive penalties applies to a particular violation, the Department
  will look at the total number of violations committed during a three (3) year lookback period, not
  just the number of a specific type of violation. For example, if a licensee refills a bottle of liquor
  and within three (3) years sells liquor to a minor, the sale to a minor will be penalized as a second
  offense against the license. Generally, each violation counts as an offense for purposes of the
  progressive penalty structure. However, at the Department’s discretion, and for purposes of
  counting the number of violations in the lookback period only, multiple violations issued within
  the same calendar day may be counted as one offense even though the Department assesses
  separate penalties for each violation.

13

When determining penalties for certain offenses, the Department must operate within the penalty
boundaries set by statute. For offenses occurring under Article 5, Chapter 6 of Title 61 (titled
“Regulation of Alcoholic Liquors”), the maximum amount of a monetary penalty allowed under
the statute is $500. See S.C. Code Ann. § 61-6-2600. Furthermore, the maximum offenses allowed
before the Department is mandated to seek a permanent revocation of the license is three. See S.C.
Code Ann. § 61-6-2600.
7

2. Failure to be primarily engaged in the
preparation and serving of meals (61-6-1820):

• Revocation

3. Hindering/delaying inspection (61-6-4190):
   1st offense
   2nd offense

• $200 + 30-day suspension
• Revocation

4. License holder or principal not of good moral
   Character (61-2-100):

• Revocation

5. Failure to comply with the sign requirements,
   or to conspicuously post a retail license (61-61530, 61-6-1800, and Regs. 7-200.3 and 7-200.5):

• $100 per violation

6. Failure to report and remit taxes (61-6-2600(4))

• $1,000 and Permanent
  Revocation

7. Failure to maintain required amount of liability
   insurance (61-2-145)

• Indefinite Suspension

8. Failure to maintain/produce physical
   or electronic copies of alcohol server
   certificates for all managers and alcohol
   servers throughout their employment (61-3-110(B)):

• $100 per violation

9. Permitting the service of alcohol for on-premises
   consumption by an individual(s) who have not
   completed an alcohol server training program
   approved by the Department (61-3-110):

• $500 per violation

10. Permitting an alcohol server to be mentally or physically
    impaired or intoxicated by alcohol, drugs, or controlled
    substances while serving alcohol on behalf of the licensee (61-3-110(A)):
    1st offense
    2nd offense
    3rd offense
    4th offense

-$100 fine
-$500 fine
-$1,000 fine and a 5-day suspension
-30-day suspension

11. Failure to use a forensic digital identification system to validate
    the identification of a person attempting to enter the licensed
    premises (61-2-145(F)): 14
    -$750 per violation
    14

This requirement only applies to those permittees and licenses who sell alcoholic beverages for
on-premises consumption at any time between the hours of 12:00 a.m. and 4:00 a.m. See S.C.
Code Ann. § 61-2-145(F).
8

III.

Alcoholic Liquor Retail Sale—Off-Premise Consumption (Article 3, Chapter 6)

1. All offenses except as specified below or as otherwise specified by statute:*
   1st offense
   2nd offense
   3rd offense
   4th offense

• $1,000
• $1,000 + 7-day suspension
• $1,000 + 30-day suspension

• Revocation 15

• To determine which of the progressive penalties applies to a particular violation, the Department
  will look at the total number of violations committed during a three (3) year lookback period, not
  just the number of a specific type of violation. For example, if a licensee refills a bottle of liquor
  and within three (3) years sells liquor to a minor, the sale to a minor will be penalized as a second
  offense against the license. Generally, each violation counts as an offense for purposes of the
  progressive penalty structure. However, at the Department’s discretion, and for purposes of
  counting the number of violations in the lookback period only, multiple violations issued within
  the same calendar day may be counted as one offense even though the Department assesses
  separate penalties for each violation.
  2. Interest in more than 6 retail stores (61-6-141):

• Revocation

3. Hindering/delaying inspection (61-6-4190):
   1st offense
   2nd offense

• $200 + 30-day suspension
• Revocation

4. License holder, or person having actual control/
   Principal not of good repute or moral character
   (61-2-100(D) and 61-6-110):

• Revocation

5. Failure to comply with the sign requirements,
   or to conspicuously post a retail license
   (61-6-1530, and Regs. 7-200.3 and 7-200.5):

• $100 per violation

6. Dishonored payments to liquor wholesalers
   (61-6-940, 61-6-1300(5), and Reg. 7-300.3):

• See SC Rev. Proc. #12-2

7. Refill, partially refill, or reuse a bottle of
   lawfully purchased alcohol liquor, or
   otherwise tamper with the contents of
   the bottle (61-6-1500(B)(1) and (2))

15

Whenever a retail liquor dealer licensed under Article 3, Chapter 6 of Title 61 has sold or
permitted the sale of alcoholic liquors to a person under the age of twenty-one four (4) or more
times within three (3) years, the Department shall suspend or revoke the retail liquor license and
shall not accept a monetary penalty in lieu of said suspension or revocation. See S.C. Code Ann.
Regs. 7-302.
9

1st offense
2nd offense
3rd offense
4th offense

• $500
• $1,000
• $1,000 + 30-day suspension
• Revocation

In the event of a criminal conviction based on a violation of S.C. Code Ann. § 61-61500(B)(1) the Department must permanently revoke the license regardless of the number
of offenses. See S.C. Code Ann. § 61-6-1500(B)(4).

8. Sale of alcoholic liquors from one retail
   dealer to another or improper transfer between
   locations owned by the same retail dealer
   (61-6-1500(A)(1)(f) and (B)(3), and Reg. 7-300.4)
   1st offense
   2nd offense
   3rd offense
   4th offense

• $500
• $1,000
• $1,000 + 30-day suspension
• Revocation

9. Purchase alcoholic liquors from another
   retail dealer or accepting an improper transfer from
   another retail location owned by the same retail dealer
   (61-6-1500(A)(5) and (B)(3), and Reg. 7-300.4)
   1st offense
   2nd offense
   3rd offense
   4th offense

• 30-day suspension
• 30-day suspension
• 30-day suspension
• Revocation

Mitigating Circumstances for Underage Sales
Specifically for the purpose of assessing penalties for sales to underage persons for licenses issued
under either Article 3 or 5, Chapter 6 of Title 61, the Department may reduce any suggested penalty
established in this advisory opinion when the following mitigating circumstances exist:

1. The licensee has documentation demonstrating the offending employee completed a
   penalty mitigation training program recognized by the Department within a reasonable
   time (but no longer than one year) prior to the violation. This training must contain
   instruction relevant to the prevention of underage sales. The licensee must provide a
   copy of the materials used in the training. 16

16

Refer to the Department’s website at https://dor.sc.gov/index.php/alcohol-beverage-licensingabl/recognized-training-programs for up-to-date information on training programs. The training
programs on the Department’s website may be recognized for the mandatory server training
pursuant to Chapter 3, Title 61, for mitigating purposes, or for both.
10

2. The licensee utilizes internal, random checks of sales locations (e.g., visit to the
offending store by a mystery shopper) to reasonably determine that sales procedures
and identification verification procedures comply with established protocol. The
licensee must have conducted this internal check within a reasonable period of time
prior to the offense. This internal check must be relevant to the prevention of underage
sales.

3. The licensee utilizes forensic digital identification systems, or other means acceptable
   to the Department, to verify the authenticity of identification at the point of sale.
   If recognized mitigating circumstances are present, suspensions may be reduced in duration, and
   a revocation may be reduced to a suspension with monetary penalties. Monetary penalties also
   may be reduced. A licensee may offer other mitigating circumstances, but in every case the
   determination as to whether mitigating circumstances warrant a reduction in penalties is within the
   sole discretion of the Department. The Department does not consider the adverse financial impact
   that a penalty will have on a licensee or permit holder to be a mitigating circumstance.
   Aggravating Circumstances for Underage Sales
   If aggravating circumstances are present in an underage sale for liquor license holders, the
   Department may impose a harsher penalty than that set forth in this advisory opinion. In every
   case, the determination as to whether aggravating circumstances warrant an escalation in penalties
   is within the sole discretion of the Department, although the Department will not impose a sanction
   outside of the statutory authority granted by the General Assembly. Examples of aggravating
   circumstances include, but are not limited to, the following:
4. The licensee’s prior violations, if any, are predominately or exclusively for sales to
   underage individuals.
5. The licensee or its agent or employee who committed the offense did so by knowingly
   bypassing or overriding the licensee’s age verification system. This includes, but is not
   limited to, the use of an override feature in the system or the knowing input of false
   information into the system in order to facilitate the sale.
6. The licensee or its agent or employee who committed the offense failed to request personal
   identification during the sale of alcoholic liquors, beer, or wine.
7. Evidence demonstrating the license holder’s disregard for complying with the alcohol laws
   of this state, including, but not limited to, evidence which indicates a lack of effort on the
   part of the license holder to mitigate any future offenses occurring within its licensed
   premises.
8. Input from law enforcement regarding the nature of the licensee’s business operations.
9. Evidence demonstrating that the license holder has failed to comply with the alcohol laws
   of this state at other licensed locations owned or controlled (in whole or in part) by the
   license holder.
   11

IV.

Alcoholic Liquor Manufacturers and Micro-Distilleries (Article 3, Chapter 6)

1. All offenses under S.C. Code Ann. §§ 61-6-1100, 61-6-1140, and 61-6-1150, except as
   otherwise specified by statute*:
   - $250 17
   - $500 + 30-day suspension
   - $500 + Permanent revocation

1st offense
2nd offense
3rd offense

• To determine which of the progressive penalties applies to a particular violation, the Department
  will look at the total number of violations committed during a three (3) year lookback period, not
  just the number of a specific type of violation. For example, if a licensee refills a bottle of liquor
  and within three (3) years sells liquor to a minor, the sale to a minor will be penalized as a second
  offense against the license. Generally, each violation counts as an offense for purposes of the
  progressive penalty structure. However, at the Department’s discretion, and for purposes of
  counting the number of violations in the lookback period only, multiple violations issued within
  the same calendar day may be counted as one offense even though the Department assesses
  separate penalties for each violation.
  2. License holder, or person having actual control/
  Principal not of good repute or good moral
  character (61-2-100 and 61-6-110):

• Revocation

3. Hindering/delaying inspection (61-4-230,
   61-4-250, and 61-6-4190):
   1st offense
   2nd offense

• $200 + 30-day suspension
• Revocation

4. Failure to report and remit excise taxes
   (61-6-1160(C))
   V.

• $1,000 and Permanent revocation

Wholesale Beer and Wine (Chapter 4) and Wholesale Alcoholic Liquor (Article 3,
Chapter 6)

1. All offenses except as specified below or as otherwise specified by statute*:
   1st offense
   2nd offense
   3rd offense
   4th offense

• $1,000
• $1,500 + 5-day suspension
• 30-day suspension
• Revocation

17

When determining penalties for certain offenses, the Department must operate within the penalty
boundaries set by statute. For offenses occurring under Subarticle 11 of Article 3, Chapter 6 of
Title 61 (titled “Regulation of Manufacturers and Micro-Distilleries”), the maximum amount of a
monetary penalty allowed is $500. See S.C. Code Ann. § 61-6-1160. Furthermore, the maximum
offenses allowed before the Department is mandated to seek a permanent revocation of the license
is three. See S.C. Code Ann. § 61-6-1160.
12

* To determine which of the progressive penalties applies to a particular violation, the Department
will look at the total number of violations committed during a three (3) year lookback period, not
just the number of a specific type of violation. For example, if a licensee refills a bottle of liquor
and within three (3) years sells liquor to a minor, the sale to a minor will be penalized as a second
offense against the license. Generally, each violation counts as an offense for purposes of the
progressive penalty structure. However, at the Department’s discretion, and for purposes of
counting the number of violations in the lookback period only, multiple violations issued within
the same calendar day may be counted as one offense even though the Department assesses
separate penalties for each violation.

2. License holder, or person having actual control/
   Principal not of good repute or good moral
   character (61-2-100 and 61-6-110):

• Revocation

3. Hindering/delaying inspection (61-4-230,
   61-4-250, and 61-6-4190):
   1st offense
   2nd offense

• $200 + 30-day suspension
• Revocation

4. License holder, or person acting on behalf
   of the license holder, having an interest in
   a retail or manufacturing business
   (61-4-735, 61-6-930, and 61-4-940):

• Revocation

VI. Out-Of-State Wine Shippers (S.C. Code Ann. § 61-4-747)
Title 61 provides a license for manufacturers of wine located within this State or outside this State,
who hold a wine producer and blenders basic permit issued in accordance with the Federal Alcohol
Administration Act, to obtain an out-of-state shipper’s license. See S.C. Code Ann. § 61-4-747(A).
This license allows license holders to ship up to twenty-four (24) bottles of wine each month
directly to a resident of South Carolina who is at least twenty-one (21) years of age for such
resident’s personal use and not for resale. Id.
If the license is granted to an applicant, the license holder shall permit the Department to perform
an audit of the license holder’s out-of-state shipper’s records upon the Department’s request. See
S.C. Code Ann. § 61-4-747(C)(5).
If an audit reveals that the holder of an out-of-state shipper’s license has failed to abide by the
restrictions provided in S.C. Code Ann. § 61-4-747, the Department’s Alcohol Beverage Licensing
Section shall seek the following penalties:
1st offense
2nd offense
3rd offense

• 30 day suspension
• 90 day suspension
• Revocation

13

The license holder will have the opportunity to protest the Department’s proposed suspension or
revocation of the license pursuant to the Revenue Procedures Act (RPA). See S.C. Code Ann. §
12-60-1310. If the license holder submits a timely protest to the Department pursuant to section
12-60-1310 regarding the Department’s proposed suspension or revocation of its out-of-state
shipper’s license, the Department, through the Department’s Office of General Counsel, may
accept payment of an offer in compromise in lieu of a suspension. See S.C. Code Ann. § 61-4747(F).
VII.

Winery Satellite Certificates (S.C. Code Ann. § 61-4-748)

Title 61 provides an opportunity for wineries to obtain a manufacturer’s satellite certificate
(“certificate”) and may establish up to three wholly owned satellite locations for tasting and sale
of wine produced or imported as the primary American source of supply. To be eligible for a
certificate, the winery must:
(1) Be the holder of a valid winery license;
(2) Invest four hundred million dollars in this State in a Tier III or Tier IV county 18 at the time
of the public announcement of the project or upon reaching such investment and job
requirement thresholds; and
(3) Create at least three hundred (300) new jobs in this State.

1. All offenses of S.C. Code Ann § 61-4-748 except as specified below or as otherwise specified
   by statute will receive the following penalties:*
   1st offense
   2nd offense
   3rd offense
   4th offense
   5th offense

• $500
• $1,000
• $1,000 + 5-day suspension
  -30-day suspension

• Revocation

• To determine which of the progressive penalties applies to a particular violation, the Department
  will look at the total number of violations committed during a three (3) year lookback period, not
  just the number of a specific type of violation. For example, if a licensee does not close to the
  public by 5:30 p.m. (See S.C. Code Ann. § 61-4-748(C)) and within three (3) years offers a tasting
  to someone under the age of twenty-one (See S.C. Code Ann. § 61-4-748(A)(14)), the sale to a
  someone under the age of twenty-one will be penalized as a second offense against the license.
  Generally, each violation counts as an offense for purposes of the progressive penalty structure.
  However, at the Department’s discretion, and for purposes of counting the number of violations in
  the lookback period only, multiple violations issued within the same calendar day may be counted
  as one offense even though the Department assesses separate penalties for each violation.
  2. Failure to satisfy all applicable investment and job
  requirement thresholds (61-4-748(A)(1))
  18

-Revocation

Such investments must be made on or after January 1, 2021 in order for the winery to be eligible
for the certificate. Further, the investment must be made in this State in a Tier III or Tier IV county
as they are designated by the Department pursuant to S.C. Code Ann. § 12-6-3360(B).
14

3. Failure to maintain required amount of liability
insurance (61-4-748(A)(13))

• Indefinite Suspension

4. Failure to report and remit applicable sales,
   use, and other state and local taxes for each
   tasting-room premises (61-4-748(A)(11))

-$1,000 and revocation

EMERGENCY SUSPENSIONS (S.C. Code Ann. §§ 1-23-370(c) and 12-60-1340)
Public Health, Safety, or Welfare
If the Department finds that the public health, safety, or welfare imperatively requires emergency
action, the Department may summarily suspend any license issued by the Department under Title
61, as provided in the South Carolina Administrative Procedures Act. See S.C. Code Ann. § 1-23370. This emergency suspension departs from the Department’s standard process for violations of
Title 61 as detailed above. The Department will summarily suspend a license pending a
determination from the Administrative Law Court (ALC) regarding whether the license should be
revoked.
Emergency situations affecting the public health, safety, or welfare will typically involve facts and
evidence indicating that (1) the license holder knowingly permits or fails to take reasonable
measures to prevent acts inside of or within close proximity of the licensed premises which
threaten the public health, safety or welfare, and (2) due to these acts, the license holder no longer
holds a reputation for peace and good order within the community.
Situations where the Department will summarily suspend a license pending a hearing on the
revocation of the license include, but are not limited to, the following:

1. There is evidence that criminal activity associated with the licensed premises has occurred
   and has threatened or will likely threaten the health, safety and welfare of the public. Such
   criminal activity includes, but is not limited to, the discharge of a firearm, assault and
   battery, drive-by shootings, drug activity, gang activity, assault with a deadly weapon,
   manslaughter, murder, or malicious destruction to real/personal property.
2. The criminal activity associated with the licensed premises has placed a strain on law
   enforcement, either by repeated responses by law enforcement for calls for service at or
   regarding the licensed premises or by law enforcement’s need to utilize other resources to
   monitor the licensed premises or both.
   The Department will determine on a case-by-case basis whether the facts and circumstances
   warrant an emergency summary suspension of the license.
   If, after an investigation is conducted by local law enforcement and/or South Carolina Law
   Enforcement Division (SLED), the Department determines that the facts and circumstances
   warrant an emergency summary suspension, the Department will notify the license holder by way
   of an administrative order that its license(s) are immediately suspended pursuant to section 1-23370(C) and will provide the basis for the suspension.
   15

The Department will also issue a Department Determination to the license holder, expressing the
Department’s intent to seek a revocation of the license(s). Simultaneously, the Department will
request an expedited hearing with the ALC pursuant to section 12-60-1340 seeking an order of
revocation from the ALC. The Department may support its summary suspension and/or its request
for an order of revocation with an affidavit(s) from local law enforcement or SLED.
All filings with the ALC will be served upon the licensee via U.S. Mail at the mailing address on
file with the Department’s Alcohol Beverage Licensing section.
Failure to Maintain Liquor Liability Insurance
Failure of a licensee to maintain the required amount of liquor liability insurance in accordance
with S.C. Code Ann. § 61-4-125 is sufficient grounds for the Department to seek an emergency
revocation order as provided in as provided in S.C. Code Ann. § 12-60-1340 and in the South
Carolina Administrative Procedures Act. See S.C. Code Ann. § 1-23-370(c). The determination
of whether a licensee’s failure to maintain the required liquor liability insurance warrants an
emergency summary suspension is determined on a case-by-case basis.
If, after an internal investigation by the Department, the Department determines that the facts and
circumstances warrant an emergency summary suspension, the Department will notify the license
holder by way of an administrative order that its license(s) are immediately suspended pursuant to
section 1-23-370(c) and will provide the basis for the suspension.
The Department will also issue a Department Determination to the license holder, expressing the
Department’s intent to seek a revocation of the license(s). Simultaneously, the Department will
request an expedited hearing with the ALC pursuant to section 12-60-1340 seeking an order of
revocation from the ALC. The Department may support its summary suspension and/or its request
for an order of revocation with an affidavit(s) from Department personnel.
All filings with the ALC will be served upon the licensee via U.S. Mail at the mailing address on
file with the Department’s Alcohol Beverage Licensing section.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
January 20
___, 2026
Columbia, South Carolina

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