EDITORIAL
House Gets
Free-Pour Right Legislation focuses on
what's best for consumers, drinking
establishments
As expected, the S.C. House is on track to rescue South
Carolinians who enjoy cocktails at home from footing part of the
bill for phasing out minibottles in drinking establishments. The
House also well may rescue the good folks who run those drinking
establishments from having to buy big bottles of liquor from the
state's 58 liquor-store retailers with Class B licenses.
Credit these welcome developments to S.C. Rep. Bill Cotty,
R-Columbia, who last week persuaded a House Ways and Means
subcommittee to develop a free-pour bill that focuses on the needs
of S.C. liquor consumers and S.C. hotels, bars and restaurants. The
Senate Finance Committee, in disappointing contrast, molded its
free-pour bill to meet the needs of the same liquor-store retailers
who for three decades had a state-mandated chokehold on minibottle
sales, as well as the needs of the S.C. Department of Revenue.
The Finance Committee bill, now awaiting action in the Senate,
gives the 58 Class B liquor stores across the state a monopoly on
retail sales to bars, to the exclusion of the four distribution
firms that wholesale liquor statewide. That concession wasn't so
much a deal breaker as an irritant: Why not let the distributors and
Class B stores duke it out in the marketplace on sales to drinking
establishments?
The Finance Committee's tax provision, however, is a deal
breaker. Instead of imposing a 5 percent tax on drinking
establishment cocktails, the committee slapped a 52-cents-per-liter
tax on all big bottles sold statewide in all liquor
stores. Such a law might be great for the Revenue Department, as
that tax would be easier to collect than the cocktail tax. But
involving home liquor consumers in the minibottle-to-free-pour
switchover had never been part of the legislative discussion - until
the Finance Committee blithely made the change.
Cotty's House bill has neither of these problems. The measure
would allow liquor distributors to compete for delivery sales to
drinking establishments - giving bars, hotels and restaurants
maximum flexibility to shop around for the best prices and liquor
selection.
Better still, it would impose the 5 percent cocktail tax -
leaving it to the Revenue Department to figure out how to collect
it. Any problems in that area would be more than offset by this
provision's keen financial focus: ensuring that drinking
establishment customers handle the cost of the
minibottle-to-big-bottle switchover.
The Finance Committee, we fear, fell prey to the Class B liquor
store lobby, which succeeded for years in preventing South
Carolinians from deciding, at the polls, if the minibottle mandate
should be removed from the S.C. Constitution. When voters finally
got that chance last year, they answered with a resounding:
Yes.
Senators' feeling seems to be that the Class B lobby needs
protection from market forces - that it's the state's responsibility
to ensure they stay in business in the brave new world of free-pour.
Well, it's not.
The House has the better take on what that brave new world should
look like.
When it takes up free-pour legislation, the Senate should fix the
damage wrought by the Finance Committee. If that doesn't happen, it
will be up to the House to fight for a law that's fair, democratic
and
market-oriented. |