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.
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Fiscal Impact Summary
This bill makes changes to Chapter 38, Title, 15, which is the South Carolina Contribution
Among Tortfeasors Act. The bill also makes various changes in numerous code sections
regarding civil liability, civil action, and gross negligence for various topics, and makes changes
to code sections related to punitive or exemplary damages. The bill further adds civil actions
pertaining to intoxicated individuals and for alcohol server licensees.
The bill also adds Chapter 3 to Title 61 to require an individual employed as an alcohol server or
manager to complete alcohol server training and to obtain an alcohol server certificate. The bill
tasks the Department of Revenue (DOR) with the responsibility to approve alcohol server
training programs offered by providers and specifies that DOR may collaborate with the
Department of Alcohol and Other Drug Abuse Services (DAODAS) and the South Carolina Law
Enforcement Division (SLED) to determine appropriate providers. DOR must also issue an
alcohol server certificate to each applicant who completes an approved program or recertification
program. Additionally, the bill specifies that SLED and DOR are responsible for enforcing the
provisions of the bill and allows DOR and SLED to promulgate regulations necessary to
administer and enforce the regulations governing responsible alcohol server training provisions.
The bill further allows a captive insurance company to apply for a license to provide liquor
liability insurance and changes the requirement that a person licensed or permitted to sell
alcoholic beverages must maintain a liquor liability insurance policy or a general liability
insurance policy with a liquor liability endorsement for a total coverage of at least $1 million to
coverage that is at least $1 million per occurrence.
Judicial reports that it is unable to estimate the impact that the changes to civil litigation
proposed in the bill will have on Common Pleas caseloads. Judicial indicates that moving from a
modified joint and several liability system to a pure several liability system may make it more
difficult for plaintiffs to recover damages and decrease the number of cases filed. However, the
change may also make defendants less likely to settle once a case is filed, leading to more
protracted litigation. For reference, Judicial estimates that in FY 2023-24, approximately 14,000
civil cases filed in Common Pleas courts would have been impacted by these changes. However,
Judicial anticipates that any increases in Common Please caseloads as a result of this bill will be
managed within existing appropriations.
Bill Number: S. 0244 Introduced on Januar
y 16, 2025
Subject: Tort Reform
Requestor: Senate Judiciary
RFA Analyst(s): Bryant
Impact Date: January 30, 2025
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DOR indicates the potential need to hire 4.0 FTEs (one supervisor and three staff) at a cost of
$300,000 per year for salary and fringe benefits to administer the provisions of the bill. The
department will also need to make system changes and updates to implement and manage the
alcohol server training program. However, DOR anticipates that any costs associated with the
additional positions and system changes will be managed with existing appropriations.
DAODAS currently approves alcohol retailer and server education programs in South Carolina,
including the Palmetto Retailers Education Program (PREP). PREP is delivered through a
community-based system of county alcohol and drug abuse authorities. DAODAS provides these
county alcohol and drug abuse authorities with resources to facilitate these trainings, including
but not limited to training manuals, state affiliated trainers, marketing materials, certificates, and
personnel funding. The costs to DAODAS are approximately $10,000 annually and are funded
through the federal Substance Abuse Prevention and Treatment Block Grant (SAPT). The
department indicates that this bill may increase demand for these programs. However, DAODAS
anticipates that any increase in costs as a result of increased demand will be managed within
DAODAS’ Federal Funds.
SLED previously indicated on similar legislation that any additional duties arising under the
alcohol server training program will be managed with existing appropriations. Therefore, we do
not anticipate that the bill will have an expenditure impact for SLED.
This bill may increase the caseload of the Administrative Law Court (ALC). ALC reports that
due to a lack of historical data, the Court cannot adequately estimate the increase in the number
of contested case hearings that may arise. ALC anticipates that the initial impact of the bill on the
Court’s caseload will likely be minimal and can be managed with existing resources. However,
ALC reports that if there is a significant increase in the number of contested case hearings, the
Court will require a General Fund appropriations increase.
DOI reports that this bill will require an increase in regulatory oversight by the department.
However, DOI does not expect these additional duties to have a significant financial impact on
the department. Therefore, DOI anticipates that it will manage the provisions of the bill with
existing appropriations.
This bill may increase Other Funds revenue of ALC due to an increase in filing fees collected in
court. Currently, a request for a contested case hearing regarding an alcoholic beverage license
violation must be accompanied by a non-refundable filing fee of $150. The amount of the
increase will depend upon the number of requests for a contested case hearing filed with the
Court, and ALC anticipates that any increase in Other Funds revenue will likely be nominal. Due
to the lack of historical data, the overall Other Funds revenue impact from filing fees for a
contested case hearing is, therefore, undetermined.
The bill also specifies that a captive insurance company may apply for a license for liquor
liability insurance. DOI indicates that it is unknown at this time whether this provision will
increase insurance premium taxes as any impact will depend on whether captive insurance
companies write liquor liability policies. Further, the bill changes the requirement that a person
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licensed or permitted to sell alcoholic beverages must maintain a liquor liability insurance policy
or a general liability insurance policy with a liquor liability endorsement for a total coverage of
at least $1 million to coverage that is at least $1 million per occurrence. DOI reports that this bill
may affect the number of insurance premiums written and, therefore, may impact insurance
premium tax revenue.
Additionally, this bill may result in a change in the fines and fees collected in court. Court fines
and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA
anticipates this bill may result in a change to General Fund, Other Funds, and local funds
revenue due to the change in fines and fees collections in court. Further, Section 3 of the bill
specifies that failure to produce a copy of an alcohol server certificate subjects the permittee or
licensee to noncompliance with Section 61-2-145(E). However, this code section does not exist
in current law and is not enumerated in this bill. It is unknown if this noncompliance action will
have an associated monetary penalty, and if so, where the funds will be allocated.
This bill allows providers to charge individuals a maximum of $50 to participate in an alcohol
server training program. Providers may see revenues increase as more individuals will be
required to participate in a training program. The amount of the increase will depend upon the
amounts that providers choose to charge participants and the number of servers and managers
that will be required to participate in a training program. Therefore, RFA anticipates this bill will
have an undetermined revenue impact on local authorities.
Explanation of Fiscal Impact
Introduced on January 16, 2025
State Expenditure
This bill makes changes to Chapter 38, Title, 15, which is the South Carolina Contribution
Among Tortfeasors Act. The bill also makes various changes in numerous code sections
regarding civil liability, civil action, and gross negligence for several topics, and makes changes
to code sections related to punitive or exemplary damages. Additionally, bill adds civil actions
pertaining to intoxicated individuals and for alcohol server licensees. The bill further makes
changes to various definitions.
The bill also adds Chapter 3 to Title 61 to require an individual employed as an alcohol server or
manager to complete alcohol server training and to obtain an alcohol server certificate. A
permittee or licensee must maintain copies of the alcohol server certificates for the permittee or
licensee, managers, and alcohol servers for the duration of their employment, and the certificates
must be made available to DOR, SLED, or their agents and employees upon request. The bill
tasks DOR with the responsibility to approve alcohol server training programs offered by
providers and specifies that DOR may collaborate with DAODAS and SLED to determine
appropriate providers. DOR must also issue an alcohol server certificate to each applicant who
completes an approved program or recertification program and who provides other information
as may be required by DOR in an application form that must be made available on the
department's website. Alcohol server certificates are valid for a period of five years from the date
the certificate is issued. After the five-year period, a new or recertified alcohol server certificate
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must be obtained. DOR may not charge a fee to issue and renew alcohol server certificates for
qualifying applicants.
Additionally, the bill specifies that SLED and DOR are responsible for enforcing the provisions
of the bill, and DOR is responsible for bringing administrative actions for any violations.
Contested case hearings arising under these provisions will be heard by the ALC. In addition to
civil and criminal penalties available for violations, upon a final administrative determination, a
permittee or licensee that violates the provisions of this section of the bill shall have its alcohol
license or permit suspended for six months for a first offense and shall have its alcohol license or
permit revoked for a second unrelated offense. DOR and SLED are authorized to promulgate
regulations necessary to carry out the duties imposed upon them by law for the proper
administration and enforcement of regulations governing the development, implementation,
education, and enforcement of responsible alcohol server training provisions.
Judicial. Judicial reports that it is unable to estimate the impact that the changes to civil
litigation proposed in the bill will have on Common Pleas caseloads. Judicial indicates that
moving from a modified joint and several liability system to a pure several liability system may
make it more difficult for plaintiffs to recover damages and decrease the number of cases filed.
However, the change may also make defendants less likely to settle once a case is filed, leading
to more protracted litigation. For reference, Judicial estimates that in FY 2023-24, approximately
14,000 civil cases filed in Common Pleas courts would have been impacted by these changes.
However, Judicial anticipates that any increases in Common Please caseloads as a result of this
bill will be managed within existing appropriations.
Department of Revenue. DOR indicates the potential need to hire 4.0 FTEs (one supervisor and
three staff) at a cost of $300,000 per year for salary and fringe benefits to administer the
provisions of the bill. The department will also need to make system changes and updates to
implement and manage the alcohol server training program. However, DOR anticipates that any
costs associated with the additional positions and system changes will be managed with existing
appropriations.
Department of Alcohol and Other Drug Abuse Services. DAODAS currently approves
alcohol retailer and server education programs in South Carolina, including PREP, which is
delivered through a community-based system of county alcohol and drug abuse authorities.
DAODAS provides these county alcohol and drug abuse authorities with resources to facilitate
these trainings, including but not limited to training manuals, state affiliated trainers, marketing
materials, certificates, and personnel funding. The costs to DAODAS are approximately $10,000
annually and are funded through the federal SAPT Block Grant. The department indicates that
this bill may increase demand for these programs. However, DAODAS anticipates that any
increase in costs as a result of increased demand will be managed within DAODAS’ Federal
Funds.
State Law Enforcement Division. SLED previously indicated on similar legislation that any
additional duties arising under the alcohol server training program will be managed with existing
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appropriations. Therefore, we do not anticipate that the bill will have an expenditure impact for
SLED.
Administrative Law Court. According to ALC, this bill provides for additional circumstances
under which a party may request a contested case hearing with the Court. Under the provisions
of the bill, a party may request a contested case hearing to review decisions regarding licensing
or permitting of the premises and violations by the person licensed or permitted to sell alcohol. A
contested case hearing may also be requested if an applicant seeking to run an alcohol server
training program is denied approval; if an alcohol server training program has its authorization
suspended or revoked; and if a licensee for on-premises consumption allows its liability policy to
lapse or terminate. This bill may increase the caseload of the ALC. ALC reports that due to a
lack of historical data, the Court cannot adequately estimate the increase in the number of
contested case hearings that may arise. ALC anticipates that the initial impact of the bill on the
Court’s caseload will likely be minimal and can be managed with existing resources. However,
ALC reports that if there is a significant increase in the number of contested case hearings, the
Court will require a General Fund appropriations increase.
Department of Insurance. DOI reports that this bill will require an increase in regulatory
oversight by the department. However, DOI does not expect these additional duties to have a
significant financial impact on the department. Therefore, DOI anticipates that it will manage the
provisions of the bill with existing appropriations.
State Revenue
This bill specifies that contested case hearings arising under the bill will be heard by the ALC.
This bill may increase ALC Other Funds revenue due to an increase in filing fees collected in
court. Currently, a request for a contested case hearing regarding an alcoholic beverage license
violation must be accompanied by a non-refundable filing fee of $150. The amount of the
increase will depend upon the number of requests for a contested case hearing filed with the
Court, and ALC anticipates that any increase in Other Funds revenue will likely be nominal. Due
to a lack of historical data, the overall Other Funds revenue impact from filing fees for a
contested case hearing is, therefore, undetermined.
The bill also specifies that a captive insurance company may apply for a license for liquor
liability insurance. DOI indicates that it is unknown at this time whether this provision will
increase insurance premium taxes as any impact will depend on whether captive insurance
companies write liquor liability policies. Further, the bill changes the requirement that a person
licensed or permitted to sell alcoholic beverages must maintain a liquor liability insurance policy
or a general liability insurance policy with a liquor liability endorsement for a total coverage of
at least $1 million to coverage that is at least $1 million per occurrence. DOI reports that this bill
may affect the number of insurance premiums written and, therefore, may impact insurance
premium tax revenue.
Additionally, this bill may result in a change in the fines and fees collected in court. Court fines
and fees are distributed to the General Fund, Other Funds, and local funds. Therefore, RFA
anticipates this bill may result in a change to General Fund and Other Funds revenue due to the
__________________________________
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.
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change in fines and fees collections in court. Further, Section 3 of the bill specifies that failure to
produce a copy of an alcohol server certificate subjects the permittee or licensee to
noncompliance with Section 61-2-145(E). However, this code section does not exist in current
law and is not enumerated in this bill. It is unknown if this noncompliance action will have an
associated monetary penalty, and if so, where the funds will be allocated.
Local Expenditure
N/A
Local Revenue
This bill may result in a change in the fines and fees collected in court. Court fines and fees are
distributed to the General Fund, Other Funds, and local funds. Therefore, RFA anticipates this
bill may result in a change to local revenue due to the change in fines and fees collections in
court.
This bill also allows providers to charge individuals a maximum of $50 to participate in an
alcohol server training program. Providers may see revenues increase as more individuals will be
required to participate in a training program. The amount of the increase will depend upon the
amounts that providers choose to charge participants, and the number of servers and managers
that will be required to participate in a training program. Therefore, RFA anticipates this bill will
have an undetermined revenue impact on local authorities.