COLUMBIA--Lawmakers trying to wean the state from
minibottles have run into what could become a staggering problem: deciding who
can deliver the booze to your favorite watering hole.
On Thursday, a bill to legalize free-pour liquor drinks in South Carolina
bars and restaurants finally was introduced in the state House, with a round of
competing plans expected to follow close behind.
The liquor law debate, already brewing in the Senate, has nothing to do with
liters vs. little bottles. Rather, it focuses on whether distributors and
manufacturers, or liquor stores, should be allowed to deliver stock to bars and
restaurants.
Some hospitality officials fear the issue could stall efforts to legalize
regular-sized bottles.
"How liquor is delivered will be that one issue that will be controversial,"
said Tom Sponseller, president of the Hospitality Association of South Carolina.
"Our hope is this isn't a way to stop the law from being changed. The people
were pretty adamant about this."
In November, voters agreed to change state constitution provisions that said
liquor can be served only from 1.75-ounce minibottles. With that provision
removed, lawmakers have been freed to change the way bars and restaurants do
business, though so far the General Assembly has made little headway.
The House bill, introduced by state Rep. Bill Cotty, R-Columbia, would allow
bars and restaurants to mix drinks from either larger bottles or minibottles. It
also clears up tax issues by making the drinks subject to the 5 percent food and
beverage tax, where minibottles used to come pre-taxed. It sets the switchover
for Jan. 1.
Nobody is debating any of that; most of the competing proposals are identical
on those points.
The sticking point comes with delivery. For now, every establishment that
serves liquor has to pick up its supply from a liquor store that serves as sort
of a wholesaler. Liquor deliveries are illegal, although distributors and
manufacturers are permitted to deliver beer and wine.
Cotty's bill, which he delayed introducing for nearly two months in hopes of
getting a compromise, allows manufacturers and distributors to deliver any sort
of alcohol to bars and restaurants except liquor in minibottles. Cotty's
legislation would allow only liquor store wholesalers to sell and deliver
minibottles.
"There's no question, I'm trying to help restaurants and bars," Cotty said.
"Anything with competition is better for consumers. I tried to hold this up to
allow them to reach a compromise, but two months is long enough to wait."
Restaurant and bar owners would like to see the change.
Forcing every bar to fetch its own liquor costs them employee time and
resources. Charleston restaurateur John Keener said his employees must pick up
minibottles twice a week for his two Charleston Crab Houses and two Jake and
Willie's restaurants.
Keener said he'd like to have the option to get liquor from the stores as
well as distributors. The larger distributors only deliver on certain days, and
that could cause restaurants problems when they need supplies on short notice,
he said. Local liquor stores could offer the convenience of same-day and weekend
delivery, Keener said.
That's the idea behind a competing bill from House Majority Leader Jim
Merrill. His legislation would allow distributors and manufacturers to deliver
any sort of liquor to the 3,000 restaurants and bars in the state. Merrill,
R-Daniel Island, said his legislation, soon to be introduced, would allow any
supplier with the best prices to pass them along to consumers.
While Cotty has 40 co-sponsors and needs only 63 votes to get his bill
passed, there is strong sentiment among House members to be less restrictive on
deliveries.
State Rep. John Graham Altman, a co-sponsor of Cotty's bill, said, "The
broadest freedom to the greatest number of people is what we need to make it as
easy as possible for restaurants and bar owners."
The handful of Charleston-area liquor stores licensed to sell to bars and
restaurants are wary of delivery competition from large, regional distributors.
Jason Wiessler, general manager of Bill's Liquors and Fine Wines in
Summerville, said that even with the proposed restrictions, he's skeptical there
would be fair competition.
Right now, half the store's business comes from about 100 bar and restaurant
accounts, customers he has long-term relationships with. He fears those business
relationships could be strained if he were forced to compete with deep
discounting from national manufacturers and distributors, particularly since
each distributor has exclusive contracts with certain liquor brands.
If the big distributors are given full access to the market, the little
liquor stores will be shut out, he said. "They're basically going to leave us
the crumbs," Wiessler said.
The Senate could come down on the side of the liquor stores.
Sen. Robert Ford, a member of the minibottle subcommittee of the Senate
Judiciary Committee, said that allowing distributors and manufacturers to cut
out liquor stores could put hundreds of people out of work and close dozens of
South Carolina businesses. "We are concerned about how that would affect those
businesses," said Ford, D-Charleston.
The House expects to chug through the minibottle debate by the end of March
or early April, but there is almost certainly a showdown coming with the Senate
before the end of session.
Lawmakers said they don't want to delay free-pour drinks from coming to South
Carolina, particularly since the mandate from voters last fall was clear.
"Hopefully, we can come up with some sort of compromise," Merrill said.
FREE FLOW OF IDEAS
The bills under consideration in the Legislature offer different options for
getting liquor to bars and restaurants.
-- Under Rep. Bill Cotty's bill, manufacturers and distributors could deliver
any sort of alcohol to bars and restaurants, except liquor in minibottles.
-- Under Rep. Jim Merrill's bill, manufacturers and distributors could
deliver any sort of alcohol to bars and restaurants, with no minibottle
exception.
-- The effective date for free-pour drinks would be Jan. 1 under both bills.
-- A 5 percent tax on drinks would be paid to the server under both bills.
