Subcommittee backs microdistillery retail expansion with limits; some members warn of three-tier erosion

The General Law Subcommittee advanced Bill 50-17, which would expand retail sales by microdistilleries and align their permitted Sunday hours with the newly amended Sunday-sales language, after adopting an amendment and hearing concerns about the state’s three-tier alcohol-distribution system.

Representative Craigie argued the bill weakens the three-tier regulatory structure that separates manufacturers, wholesalers and retailers and warned the change could convert tasting rooms into retail outlets that compete with local liquor stores. "This encroaches on that by allowing a manufacturer, a distillery to sell more bottles on their premises," Craigie said, expressing worry that tasting-room allowances could grow year by year.

The sponsor said the intent is limited: tasting allowances remain four 4.5-ounce samples total per visitor per day and the measure is designed to promote South Carolina-grown products and help small distillers reach tourists. The committee adopted an amendment to synchronize microdistillery Sunday retail hours with the Sunday-sales amendment (1 p.m.–5 p.m.) and subsequently reported the bill favorably as amended.

Committee members noted the tension between supporting South Carolina producers and protecting the three-tier system that local liquor stores and some members said prevents market abuses. The transcript shows recorded 'Aye' votes for multiple members and the bill was returned favorable as amended; the committee did not record a final House-floor passage in the hearing.