An Act to revise certain provisions regarding on-sale alcoholic beverage licenses for use at municipality-owned facilities.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 35-4-14.1 be AMENDED:

35-4-14.1. Notwithstanding the provisions of § 35-4-11, any municipality may by resolution, without an election but subject to referendum, issue an on-sale license pursuant to subdivision 35-4-2(4) to a for use at any municipality-owned entertainment venue, event venue, event center, arena, performance hall, theater, outdoor amphitheater, convention center, stadium, athletic venue, recreation facility, municipal auditorium operated pursuant to chapter 9-52, or to a public convention hall operated pursuant to chapter 9-53 for use during a convention activity or an entertainment event, including any theatrical or musical performance, rodeo, sporting event, or show. The selling, serving, or dispensing of any alcoholic beverage at the municipal auditorium may not occur more than one hour before the commencement of the event or at any time after the event is concluded. An on-sale license issued pursuant to this section must be used to support the primary public purpose of the municipality-owned facility during the hours the municipality-owned facility is open for its primary purpose. A license issued pursuant to this section must not be used at any municipality-owned facility for the primary purpose of only providing food and beverage services to the public. There is no fee for a license under this section. The governing body of any municipality that has obtained an on-sale license pursuant to this section may contract with any person or entity for purposes of providing food and beverage services at the municipality-owned facility and the use of any license issued pursuant to this section. A license issued pursuant to this section may not be transferred.

Section 2. That chapter 42-7A be amended with a NEW SECTION:

No video lottery machines may be placed in a facility with an on-sale license issued pursuant to section 1 of this Act.