SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
Page 1 of 5
H. 3857
Fiscal Impact Summary
This bill authorizes the Department of Revenue (DOR) to issue a license or permit allowing a
retailer to offer curbside delivery or pick up of sealed containers of beer and wine or alcoholic
liquors if the retailer satisfies certain conditions. The bill also authorizes DOR to issue a license
allowing a retailer to deliver or hire a delivery service to deliver beer and wine or alcoholic
liquors for personal consumption, provided the delivery does not occur on certain premises and
satisfies certain conditions. Additionally, the bill allows DOR to impose a monetary penalty
upon a retailer or the holder of a delivery service license for violations of the provisions of the
bill, as well as for violations of any other regulations pertaining to beer and wine or alcoholic
liquors in lieu of suspension or revocation of licenses. The amount of any penalty imposed must
be no less than $25 dollars and no more than $1,000, and any fines collected must be credited to
the General Fund.
DOR indicates this bill will increase expenses by an amount up to $142,000 beginning in FY
2025-26 for 2.0 FTEs (one supervisor and one analyst) with annual salary and fringe benefits.
The department reports that it has processes in place to update its forms, website information,
and system functions, and anticipates that those expenses can be managed with existing
appropriations. DOR will request a General Fund appropriation increase to cover the cost of the
new FTEs.
The Administrative Law Court (ALC) reports that they currently hear cases from DOR regarding
violations issued against retailers and anticipate that any additional cases resulting from the
provisions of this bill can be managed with existing resources.
The State Law Enforcement Division (SLED) reports that this bill will make it more difficult for
the agency to monitor and enforce laws prohibiting the purchase and possession of alcohol by
underaged persons. SLED indicates the bill will increase expenses by an amount up to
$1,640,000 in FY 2025-26 for the agency to comply with its mandated alcohol enforcement
duties and responsibilities. Of this amount, $845,000 is for 8.0 FTEs (two alcohol enforcement
agents per region) with annual salary and fringe benefits to carry out the day-to-day enforcement
functions and to perform additional monitoring and undercover operations. Of the remaining
amount, $214,000 is for recurring expenses, including fuel, maintenance, and other ongoing
costs. SLED also anticipates the need for an additional $581,000 for one-time equipment costs,
including vehicles, uniforms, protective gear, weapons, computers, and academy expenses.
Bill Number: H. 3857 Introduced on Januar
y 30, 2025
Subject: Alcohol Deliver y and Curbside Pickup
Requestor: House Judiciary
RFA Analyst(s): Bryant and Boggs
Impact Date: April 7, 2025
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H. 3857
Expenses will decrease to $1,059,000 each year thereafter for the new FTEs and recurring
equipment costs. SLED reports that the agency will request a General Fund appropriation
increase to fund the expenses.
The Department of Alcohol and Other Drug Abuse Services (DAODAS) anticipates that any
costs to implement the provisions of the bill can be managed within existing appropriations.
The bill requires applicants for a delivery service license to provide a criminal history
background check conducted by SLED. The cost to run a name-based SLED Citizen Access to
Criminal Histories (CATCH) check as required by this bill is $25. This fee is retained by SLED.
Pursuant to Section 23-3-115(A), revenue generated by criminal records checks performed by
SLED up to an amount of $4,461,000 must be deposited in the General Fund. Any revenue over
that amount is retained by SLED. The current three-year average in fees collected for
background checks totals approximately $17,541,968. The potential increase in fee revenue for
SLED will depend on the number of additional CATCH checks done as a result of this bill.
Therefore, the impact to Other Funds revenue for the increase in criminal record checks fee is
undetermined.
This bill may result in an undetermined increase in General Fund revenue due to the creation of a
new delivery service license with a $400 license fee and the ability of DOR to issue monetary
penalties in lieu of suspending or revoking licenses. Additionally, the fee for a new license or
permit allowing a retailer to offer curbside delivery or pick up of sealed containers of beer and
wine or alcoholic liquors has not been determined. The Revenue and Fiscal Affairs Office (RFA)
is unable to estimate the number of new licenses that will be issued pursuant to this bill and the
amount of any monetary penalties. Therefore, the revenue impact to the General Fund is
undetermined and will depend upon the fee, number of permits issued, and any monetary
penalties.
RFA anticipates that this bill will have a minimal impact on beer, wine, and liquor sales and
resulting sales and alcohol tax revenues. Although we anticipate the provisions of this bill may
cause a shift in the manner in which consumers purchase beer, wine, or alcoholic liquors, the
provisions of the bill are not expected to result in a material expansion of beer, wine, or alcoholic
liquor purchases.
This bill requires an individual who delivers beer and wine or alcoholic liquors for a retail dealer
or delivery service to undergo training as provided or approved by DAODAS and as
administered by the retail dealer, delivery service, or a DAODAS-approved training program.
DAODAS anticipates that this required training may be done under PREP, a particular
curriculum used by the local alcohol and provider system, or any other approved training
curricula approved by DAODAS. Local alcohol and drug abuse authorities currently collect fees
ranging from $0 to $50 for the PREP program to support local material distribution, space rental,
and FTE training expenses. Providers may see revenues increase as more individuals will be
required to participate in a training program. However, DAODAS indicates that the agency is
unable to estimate the number of individuals that will require training pursuant to this bill.
Therefore, this bill will have an undetermined revenue impact on local authorities.
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H. 3857
Explanation of Fiscal Impact
Introduced on January 30, 2025
State Expenditure
This bill authorizes DOR to issue a license or permit allowing a retailer to offer curbside delivery
or pick up through curbside delivery of sealed containers of beer and wine or alcoholic liquors if
the retailer:
has a clearly designated curbside area near or adjacent to its business;
requires a customer to provide a valid government-issued identification at the time of
pick up;
prohibits the use of curbside delivery or curbside pick-up service by an intoxicated
person or a person under the age of twenty-one;
requires the employee delivering to a customer’s vehicle to be eighteen years or older for
beer or wine, and twenty-one years or older for alcoholic liquors; and
requires the employee delivering to a customer’s vehicle to undergo training as provided
or approved by the DAODAS and as administered by the retail dealer, delivery service,
or a DAODAS-approved training program
This bill also authorizes DOR to issue a license allowing a retailer to deliver or hire a delivery
service to deliver sealed packages of beer and wine or alcoholic liquors for personal
consumption, provided the delivery does not occur on certain specified premises. A delivery
service or retailer delivering beer and wine must apply to DOR for a biennial delivery service
license, which authorizes the delivery of beer and wine that has been purchased from a retailer
through the three-tier distribution chain. A delivery service or retailer delivering alcoholic
liquors must apply for a separate biennial delivery service license, which authorizes the delivery
of alcoholic liquors that have been purchased from a retailer that holds a retail dealers’ license
and has purchased the alcoholic liquors from a wholesaler. A delivery service or retailer applying
for a delivery service license must:
pay a nonrefundable $400 license fee;
be at least twenty-one years of age;
provide a criminal history background check conducted by SLED; and
maintain a liquor liability insurance policy or a general liability insurance policy with a
liquor liability endorsement in the amount of at least $1,000,000 for the biennial period of
the license.
An individual who delivers beer and wine or alcoholic liquors for a retail dealer or delivery
service must:
be at least twenty‑one years of age;
not have a felony conviction within the last ten years, as confirmed by a background
check conducted by the delivery service prior to being hired; and
undergo training as provided or approved by the DAODAS and as administered by the
retail dealer, delivery service, or a DAODAS-approved training program.
This bill also gives DOR the discretion to impose a monetary penalty upon a retailer or the
holder of a delivery service license for violations of the provisions of this bill, as well as for
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H. 3857
violations of any other regulations pertaining to beer and wine or alcoholic liquors, in lieu of
suspension or revocation of licenses. The amount of any penalty imposed must be no less than
$25 dollars and no more than $1,000, and any fines collected must be credited to the General
Fund.
Department of Revenue. DOR indicates this bill will increase expenses by an amount up to
$142,000 beginning in FY 2025-26 for 2.0 FTEs (one supervisor and one analyst) with annual
salary and fringe benefits. The department reports that it has processes in place to update its
forms, website information, and system functions, and anticipates that those expenses can be
managed with existing appropriations. DOR will request a General Fund appropriation increase
to cover the cost of the new FTEs.
Administrative Law Court. This bill provides that a beer and wine or alcoholic liquors retailer
or the holder of a delivery service license may request a contested case hearing for a fine
imposed for violations of the provisions of the bill in front of the ALC, pursuant to the South
Carolina Revenue Procedures Act and the Administrative Procedures Act. ALC reports that they
currently hear cases from DOR regarding violations issued against retailers and anticipates that
any additional cases resulting from the provisions of this bill can be managed with existing
resources. Therefore, this bill will have no expenditure impact for ALC.
State Law Enforcement Division. SLED reports that this bill will make it more difficult for the
agency to monitor and enforce laws prohibiting the purchase and possession of alcohol by
underaged persons. SLED indicates the bill will increase expenses by an amount up to
$1,640,000 in FY 2025-26 for the agency to comply with its mandated alcohol enforcement
duties and responsibilities. Of this amount, $845,000 is for 8.0 FTEs (two alcohol enforcement
agents per region) with annual salary and fringe benefits to carry out the day-to-day enforcement
functions and to perform additional monitoring and undercover operations. Of the remaining
amount, $214,000 is for recurring expenses, including fuel, maintenance, and other ongoing
costs. SLED also anticipates the need for an additional $581,000 for one-time equipment costs,
including vehicles, uniforms, protective gear, weapons, computers, and academy expenses.
Expenses will decrease to $1,059,000 each year thereafter for the new FTEs and recurring
equipment costs. SLED reports that the agency will request a General Fund appropriation
increase to fund the expenses.
Department of Alcohol and Other Drug Abuse Services. This bill requires an individual who
delivers beer and wine or alcoholic liquors for a retail dealer or delivery service to undergo
training as provided or approved by DAODAS and as administered by the retail dealer, delivery
service, or a DAODAS-approved training program. DAODAS anticipates that this required
training may be done under PREP, a particular curriculum used by the local alcohol and provider
system, or any other approved training curricula approved by DAODAS. Therefore, the bill will
have no expenditure impact on DAODAS since any expenses can be managed within existing
appropriations.
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
Page 5 of 5
H. 3857
State Revenue
This bill authorizes DOR to issue a license or permit allowing a retailer to offer curbside delivery
or pick up through curbside delivery of sealed containers of beer and wine or alcoholic liquors.
However, the fee for this new license or permit has not been determined. The bill also provides
that applicants for the new beer and wine or alcoholic liquors delivery licenses must pay a
nonrefundable application fee of $400. Revenue collected from the new fees and monetary
penalties must be allocated to the General Fund. RFA is unable to estimate the number of new
licenses that will be issued pursuant to this bill and the amount of any monetary penalties.
Therefore, the revenue impact to the General Fund is undetermined and will depend upon the
fee, number of licenses issued, and any monetary penalties.
The bill requires applicants for a delivery service license to provide a criminal history
background check conducted by SLED. The cost to run a name-based SLED CATCH check as
required by this bill is $25. This fee is retained by SLED. Pursuant to Section 23-3-115(A),
revenue generated by criminal records checks performed by SLED up to an amount of
$4,461,000 must be deposited in the General Fund. Any revenue over that amount is retained by
SLED. The current three-year average in fees collected for background checks totals
approximately $17,541,968. The potential increase in fee revenue for SLED will depend on the
number of additional CATCH checks done as a result of this bill. Therefore, the impact to Other
Funds revenue for the increase in criminal record checks fee is undetermined.
RFA anticipates that this bill will have a minimal impact on beer, wine, and liquor sales and
resulting sales and alcohol tax revenues. Although we anticipate the provisions of this bill may
cause a shift in the manner in which consumers purchase beer, wine, or alcoholic liquors, the
provisions of the bill are not expected to result in a material expansion of beer, wine, or alcoholic
liquor purchases.
Local Expenditure
N/A
Local Revenue
This bill requires an individual who delivers beer and wine, or alcoholic liquors for a retail dealer
or delivery service to undergo training as provided or approved by DAODAS and as
administered by the retail dealer, delivery service, or a DAODAS-approved training program.
DAODAS anticipates that this required training may be done under PREP, a particular
curriculum used by the local alcohol and provider system, or any other approved training
curricula approved by DAODAS.
Local alcohol and drug abuse authorities currently collect fees ranging from $0 to $50 for the
PREP program to support local material distribution, space rental, and FTE training expenses.
Providers may see revenues increase as more individuals will be required to participate in a
training program. DAODAS indicates that the agency is unable to estimate the number of
individuals that will require training pursuant to this bill. Therefore, this bill will have an
undetermined revenue impact on local authorities.