Posted on Thu, Apr. 28, 2005
S.C. GENERAL ASSEMBLY

Free-pour bill includes wholesalers
Senate expected to fight difference

The Sun News

The House passed a free-pour bill 101-8 Wednesday after one last attempt to prevent four wholesalers from competing with liquor stores for sales to bars.

The bill also says the changes would take effect Jan. 1.

Passage came on second reading. Third reading, a formality, will come today.

The action sets up a conference committee fight with the Senate, which passed a bill that does not allow the wholesalers to sell to bars.

Rep. Skipper Perry, R-Aiken, who has been in the liquor retail and wholesale business, said letting the wholesalers compete with liquor stores that must buy their own supplies from the wholesalers will put the stores out of business.

Wholesalers already have the stores over a barrel, Perry said.

"It's the only business where you have to kiss the salesman's foot to get service," he said.

Rep. Bill Cotty, R-Columbia, sponsor of the bill, said that the liquor stores had a monopoly on sales to bars for 30 years and that opening up sales to wholesalers will increase competition and provide better prices to consumers.

He said the bill includes price protections for the stores because the wholesalers would have to offer them the same deals as they do to bars.

"There's no way that this is going to be a fair-market exchange," said Rep. Laurie Slade Funderburk, D-Camden, asking the House to support Perry's amendment.

Perry's amendment failed 67-39.

The bill allows bars to use large bottles, minibottles or both.

Bars could have their product delivered to them, something that is forbidden under current law.

Consumers would be able to buy minibottles themselves in stores.

The 25-cent minibottle tax would be replaced with a 5 percent cocktail tax.

Cotty said the January date for the changes to take effect is necessary because the state Department of Revenue needs time to allow stores to use their inventory and for new tax systems to be put in place.

Rep. Tracy Edge, R-North Myrtle Beach, said he doesn't understand why the free-pour bill has been so difficult and taken so long but that "I'm glad we were able to get the bill out."

Rep. Alan Clemmons, R-Myrtle Beach, said he is "looking forward to enabling what the voters have authorized."

In November, voters said they want to change the last minibottle requirement in the country.

The House and Senate will most likely appoint their conference committees of three members each next week.

Rep. Jim McGee, R-
Florence, was one of the members who opposed allowing the wholesalers to sell to bars. He said he is asking to be appointed to the conference committee so that view will have a fair hearing.


Contact ZANE WILSON at zwilson@thesunnews.com or 520-0397.




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