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S 1001

Retail Alcoholic Beverage Caterer License

2025-2026 Regular Session Introduced by Greg Hembree and 3 co-sponsors

Creates a Retail Alcoholic Beverage Caterer License allowing qualified caterers to source, store, and serve alcohol at private events with defined rules and taxes.

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Bill Summary · S 1001

Summary of Bill S.1001 (Session 2025-2026) — Retail Alcoholic Beverage Caterer License (South Carolina)

Purpose and Intent

  • Establish a new regulatory framework to authorize a Retail Alcoholic Beverage Caterer License in South Carolina.
  • Create a defined category of caterers who can provide on-premises alcohol service at private events, sourced through direct purchases from wholesalers and liquor stores, and transported to off-site event locations.
  • Enable certain alcohol-related activities at private, off-site events under defined conditions, with accompanying licensing, insurance, and tax provisions.
  • Harmonize and augment existing provisions related to licenses, temporary permits, and fundraising events to accommodate catered private events.

Key Provisions and Changes

New Definitions (Section 61-2-400)

  • Define critical terms for the new regime:
    • “Alcoholic beverages” and “alcoholic liquors by the drink” (consistent with existing definitions).
    • “Caterer”: a for-profit business operating a restaurant or commercial kitchen that provides food and beverage services (including bartending) at private events under contract.
    • “Private event”: off-site, not open to the general public, temporary; cannot be at a location that is the principal place of business for another licensee (with certain exceptions for caterers operating a commercial kitchen).
    • “Commercial kitchen”: a licensed public kitchen with a permanent public dining operation, not located in a residence or shared facility, with specific structural criteria.

Retail Alcoholic Beverage Caterer License (Section 61-2-410)

  • Department of Revenue (DOR) may issue a Retail Alcoholic Beverage Caterer License, subject to existing licensing standards in Chapters 4 and 6 (Title 61).

  • Authorized license actions and privileges:

    • Serve alcohol for on-premises consumption in conjunction with catered meals (not snacks as the primary meal).
    • Purchase beer and wine directly from a wholesaler.
    • Purchase liquor directly from a retail liquor store with a wholesaler permit (TTB) in standard sizes other than 1.75 liter bottles.
    • Transfer alcohol from wholesaler/retail to the caterer’s principal place of business.
    • Transfer alcohol to off-site events from the principal place of business.
    • Store alcohol at the principal place of business in a secure area for access by licensee/employees.
    • Take delivery and store alcohol at the off-site event location in a secure area for a set period (from three days before to end of the event).

  • Credit/Refund Provisions:

    • Wholesalers and Class B WTTB-licensed liquor retailers may offer credit or refunds for unused, unopened, undamaged alcohol to caterers, under conditions (inventory not transferred back to primary location beyond 72 hours after event).

  • Employee Age and Conduct:

    • Caterer employees must be at least 18 to serve/deliver; no serving by individuals under 21.

  • Time-of-Operations and Sunday Sales:

    • Prohibitions and permitted hours mirror existing framework, with specific constraints on sale at off-site events and at the licensee’s premises.
    • Sunday sales prohibited unless the off-site event is in a county/municipality with a favorable referendum allowing Sunday liquor-by-the-drink (per 61-6-2010).

  • Insurance:

    • Caterers serving after 5:00 PM at off-site events must maintain liquor liability or general liability insurance with liquor endorsement.
    • Department must require liquor liability insurance on applications for those events.

  • Fees and Application:

    • Filing fee: $300 (nonrefundable).
    • Biennial license fee: $2,300.
    • If applying after the start of a permit period, follow schedule in §61-6-1810(C) and §61-6-120.
    • Applicant must notify the Division at least 24 hours prior to off-site events.

  • Inclusive Bar Pricing Option:

    • Caterers may collect and remit liquor-by-the-drink excise tax and sales/use tax for inclusive bar packages (fixed per-guest price) with rules for tax calculation (actual consumption or per-guest allocation) and recordkeeping for at least 3 years.
    • Default drink-equivalent ratios and recordkeeping may be established by regulation.
    • A “drink” is defined for on-premises use: 12 oz beer, 5 oz wine, 1.5 oz distilled spirits.

  • Limitations:

    • License does not authorize off-premises retail sales of beer, wine, or liquor by the caterer for general retail.
    • Violations subject to penalties under Title 61 and related chapters.

Private Event Contracts (Section 61-2-420)

  • Caterers with the Retail Alcoholic Beverage Caterer License or business liquor-by-the-drink license may contract with an event host to provide alcohol and on-premises consumption at the licensed premises.
  • Event hosts may charge an entry fee to cover costs, including charitable fundraising, without requiring a separate special temporary event permit.

Amendments to Related Provisions

  • Section 61-4-160: Modifications to discounting/free-beverage policies to allow biennial permit holders to sponsor up to twelve functions per year with free beverages (subject to fundraising context) and define Sunday operations in certain contexts.
  • Section 61-6-2000: Temporary permits for nonprofit organizations for alcoholic beverages by the drink; includes background checks, enforcement notification, and permit terms (up to 24 hours per event, with potential multi-permit provisions).
  • Section 61-4-550: Conforming changes to special permits for fairs and functions, including background checks, law enforcement notification, and permit caps.

Affected Parties

  • Caterers: Potential new licensees enabling on-site service at private events with direct sourcing from wholesalers and retail liquor stores.
  • Wholesalers and Retail Liquor Stores: New credit/refund arrangements for unused, unopened alcohol supplied to caterers.
  • Event Hosts: May contract with licensed caterers to provide alcohol at private events; allowed to charge entry fees under certain conditions.
  • General Public: Indirect impact through expansion of caterer services for private events and changes to licensing and fundraising rules.
  • Local Law Enforcement and State Licensing Authorities: Required notifications for temporary permits and enforcement responsibilities.

Procedural and Timeline Considerations

  • Effective Date: Upon gubernatorial approval.
  • Licensing Process: New biennial license with stated fees; emphasis on security, insurance, and background checks for applicable temporary permits.
  • Regulatory Oversight: Department shall establish insurance requirements, tax-payment mechanisms for inclusive packages, and potential regulations on drink-equivalent ratios and recordkeeping.
  • Interaction with Referenda: Sunday sales contingent on local referendum outcomes.
  • Temporary Permits: Expanded eligibility to nonprofit, caterers, and food establishments for special events with defined application processes and background checks.

Bottom Line

S.1001 would create a formal Retail Alcoholic Beverage Caterer License in South Carolina, enabling qualified caterers to supply and serve alcohol at private events from centralized sources, with defined security, tax, and regulatory requirements. It also aligns related temporary-permit and fundraising provisions to support catered private-event operations while preserving boundaries around on- and off-premises sales, Sunday sales, and alcohol service timing.

Compiled from official sources — confirm details with the bill’s official record.

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