2008 Legislative Session _ 2008

Committee: House Commerce
Wednesday, February 06, 2008

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Ahlers
P    Boomgarden
P    Dreyer
P    Engels
P    Hunt
P    Juhnke
P    Noem
P    Novstrup (David)
P    Nygaard
P    Pederson (Gordon)
P    Street
P    Willadsen, Vice-Chair
P    Rounds, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Tim Rounds, Chair.

MOTION:     TO APPROVE THE MINUTES OF FEBRUARY 4, 2008

Moved by:    Pederson (Gordon)
Second by:    Ahlers
Action:    Prevailed by voice vote.

HB 1142 WAS PREVIOUSLY HEARD ON JANUARY 28, 2008.

         HB 1142: authorize additional off-sale retail liquor licenses in certain municipalities.

Proponents:    Larry Nelson, Hy-Vee, Inc.
Opponents:    Robert Wentz, Booze Boys Liquor Stores, Sioux Falls, SD


        Greg Stahl, Sioux Falls, SD (Handout #1)

MOTION:     DO PASS HB 1142 AS AMENDED

Moved by:    Dreyer
Second by:    Willadsen
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1142 TO THE 36TH LEGISLATIVE DAY

Moved by:    Noem
Second by:    Ahlers
Action:    Failed by roll call vote. (8-5-0-0)

Voting Yes:    Dreyer, Juhnke, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

Voting No:    Ahlers, Boomgarden, Engels, Hunt, Noem

MOTION:     DO PASS HB 1142 AS AMENDED

Moved by:    Dreyer
Second by:    Willadsen
Action:    Prevailed by roll call vote. (9-4-0-0)

Voting Yes:    Dreyer, Hunt, Juhnke, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

Voting No:    Ahlers, Boomgarden, Engels, Noem

        
HB 1284: require certain employees acquiring real property to be certified, licensed, or registered by the Department of Revenue and Regulation as real estate appraisers.

Presented by:    Representative Steve Street
Proponents:    Brian Gatzke, Brookings, SD
Opponents:    Bill Nevin, Department of Transportation

MOTION:     AMEND HB 1284

1284fa

     On page 1, line 5, of the printed bill, delete "acquiring" and insert "appraising".

     On page 1, line 6, after "property" insert "that will be acquired".

     On page 1, line 6, delete "certified, licensed, or".

     On page 1, line 8, delete "certified,".

     On page 1, line 9, delete "licensed, or".

     On page 1, delete line 11, and insert "purposes of appraising real property that will be acquired for highway or other state purposes shall be".

     On page 1, line 12, delete "licensed, or".


Moved by:    Nygaard
Second by:    Hunt
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1284 AS AMENDED

Moved by:    Dreyer
Second by:    Ahlers
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1284 TO THE 36TH LEGISLATIVE DAY

Moved by:    Willadsen
Second by:    Boomgarden
Action:    Prevailed by roll call vote. (8-5-0-0)

Voting Yes:    Boomgarden, Hunt, Juhnke, Noem, Novstrup (David), Pederson (Gordon), Willadsen, Rounds

Voting No:    Ahlers, Dreyer, Engels, Nygaard, Street

        
HB 1269: allow a beer and wine combination license.

Presented by:    Representative Eldon Nygaard
Proponents:    Neal Brakke, Presho, SD

MOTION:     DO PASS HB 1269

Moved by:    Ahlers
Second by:    Dreyer
Action:    Prevailed by roll call vote. (12-1-0-0)

Voting Yes:    Ahlers, Boomgarden, Dreyer, Engels, Hunt, Juhnke, Noem, Novstrup (David), Nygaard, Street, Willadsen, Rounds

Voting No:    Pederson (Gordon)

        
HB 1294: authorize a class of full-service restaurant on-sale licenses to be issued by first class municipalities.

Presented by:    Representative Bob Faehn

GAVEL PASSED TO VICE CHAIR WILLADSEN.

Proponents:    Tim Dougherty, Licensed Beverage Dealers of SD

GAVEL PASSED TO CHAIR ROUNDS.

        Mathew McCaulley, Licensed Beverage Dealers
Opponents:    Yvonne Taylor, SD Municipal League

MOTION:     AMEND HB 1294

1294fa

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. In addition to the number of on-sale licenses that may be issued pursuant to §  35-4-11, a first class municipality may issue additional on-sale licenses for full-service restaurants. The number of full-service restaurant on-sale licenses that may be issued pursuant to this section may not exceed ten percent of the total number of on-sale licenses allowed or issued pursuant to § §  35-4-11 and 35-4-13 or three on-sale licenses, whichever is greater.

     Section 2. Terms used in this Act mean:

             (1)    "Bar," any permanently installed counter within the restaurant area from which alcoholic beverages are regularly served to customers by a person who is tending bar or drawing or mixing alcoholic beverages;

             (2)    "Full-service restaurant," any restaurant at which a waiter or waitress delivers food and drink offered from a printed food menu to patrons at tables, booths, or the bar. Any restaurant that only serves fry orders or food and victuals such as sandwiches, hamburgers, or salads is not a full-service restaurant;

             (3)    "Restaurant," any area in a building maintained, advertised, and held out to the public as a place where individually priced meals are prepared and served primarily for consumption in such area and where seventy percent or more of the gross revenue of the restaurant is derived from the sale of prepared food and nonalcoholic beverages. The restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of employees necessary for the preparing, cooking, and serving of meals.

     Section 3. An applicant for a full-service restaurant on-sale license shall provide sufficient documentation to the municipality to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not from the sale of alcoholic beverages. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.

     Section 4. When the municipality is renewing a full-service restaurant on-sale license, the municipality shall condition the licence renewal upon receiving documentation that seventy percent or more of gross sales from the preceding twelve months operation of the full service restaurant is derived from the sale of prepared food and nonalcoholic beverages. The full-service restaurant on- sale licensee shall submit an annual report to the municipality on the sales for the full-service restaurant that includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross sales of the licensee for the following two categories:

             (1)    Food and nonalcoholic beverage sales; and

             (2)    Alcoholic beverage sales.

     Section 5. A full-service restaurant on-sale licensee may only serve alcoholic beverages for on- premise consumption in the bar and dining room area of the restaurant.

     Section 6. The provisions of §  35-4-81 apply to each full-service restaurant on-sale licensee, except, that no licensee may sell, serve, or allow to be consumed on the premises covered by the license, any alcoholic beverages between the hours of eleven p.m. and eleven a.m.

     Section 7. A restaurant that has a full-service restaurant on-sale license may only be advertised or held out to the public as primarily a food eating establishment.

     Section 8. No restaurant that has a full-service restaurant on-sale license may:



             (1)    Conduct video lottery pursuant to chapter 42-7A upon the location where the license is held;

             (2)    Allow smoking on the premises; or

             (3)    Transfer or sell the full-service restaurant on-sale license to another location.

     Section 9. No premise licensed under the provisions of subdivision 35-4-2 (4), (6), (11), or (13) prior to July 1, 2008, may be licensed as a full-service restaurant on-sale license prior to July 1, 2020.

     Section 10. The license fee for a restaurant license issued by a first class municipality with a population that is:

             (1)    Sixty thousand or more, may not be less than two hundred thousand dollars;

             (2)    Twenty thousand or more but less than sixty thousand, may not be less than one hundred thousand dollars; and

    (3)    Less than twenty thousand, may not be less than seventy-five thousand dollars.

     Section 11. No on-sale license annexed into a municipality pursuant to §  35-4-13 may be transferred to a new location for a period of three years after the annexation."


Moved by:    Engels
Second by:    Dreyer
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1294 AS AMENDED

Moved by:    Dreyer
Second by:    Willadsen
Action:    Prevailed by roll call vote. (9-3-1-0)

Voting Yes:    Dreyer, Engels, Juhnke, Novstrup (David), Nygaard, Pederson (Gordon), Street, Willadsen, Rounds

Voting No:    Ahlers, Boomgarden, Noem

Excused:    Hunt

MOTION:     AMEND TITLE OF HB 1294

0000fta

     On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "authorize a class of full-service restaurant on-sale licenses to be issued by first class municipalities.".

     On page 1, delete line 2.


Moved by:    Engels
Second by:    Juhnke
Action:    Prevailed by voice vote.

        
HB 1283: revise on-sale alcoholic beverage licenses in municipalities.

Presented by:    Representative Thomas Brunner

GAVEL PASSED TO VICE CHAIR WILLADSEN.

Proponents:    Yvonne Taylor, SD Municipal League

MOTION:     AMEND HB 1283

1283sa

On the printed bill, delete everything after the enacting clause and insert:

     "      Section 1. That § 35-4-2 be amended to read as follows:

     35-4-2.   Classes of licenses, with the fee of each class, follow:

             (1)      Distillers--four thousand dollars. However, no license fee is required for manufacturers of alcohol for use in industry as a nonbeverage. If such manufacturer of industrial alcohol shall at any time manufacture, produce, distill, sell, barter, or dispose of alcohol for any use other than an industrial use, the license fee required by this section shall be allocated to and payable for the portion of the year the manufacturer devoted to such other use for each calendar month or fraction thereof while so engaged, but in no case less than one- twelfth of said license fee;

             (2)      Wholesalers of alcoholic beverages--five thousand dollars;

             (3)      Off-sale--not less than five hundred dollars in municipalities of the first class, not more than four hundred dollars in municipalities of the second class, and not more than three hundred dollars in municipalities of the third class. The renewal fee for such licenses may not exceed five hundred dollars in municipalities of the first class, four hundred dollars in municipalities of the second class, and three hundred dollars in municipalities of the third class;

             (4)      On-sale--in municipalities of various classes: municipalities of the first class, : not less than one dollar for each person residing within the municipality as measured by the last preceding federal census, the renewal fee for such license is fifteen hundred dollars; municipalities of the second class, no more than twelve hundred dollars; municipalities of the third class, no more may not be less than nine hundred dollars;

             (5)      Off-sale licenses issued to municipalities under local option--not less than two hundred fifty dollars;

             (6)      On-sale licenses issued outside municipalities--except as provided in § 35-4-11.9, not less than the maximum that the municipality to which the applicant is nearest is charging for a like license in that municipality, the renewal fee shall be the same as is charged for a like license in the nearest municipality. However, if the nearest municipality is more than fifteen miles from the on-sale license, the fee shall be established pursuant to § 35-4- 11.10. If the municipality to which the applicant is nearest holds an on-sale license, pursuant to § 35-3-13 and does not charge a specified fee, then the fee shall be the maximum amount that could be charged as if the municipality had not been authorized to obtain on-sale licenses pursuant to § 35-3-13. However, if the nearest municipality is a municipality of the first class and is authorized to hold an on-sale license pursuant to § 35-3-13, such fee may not be more than one hundred fifty percent of the minimum a municipality not so authorized may charge for a like license. The renewal fee shall be the same as could be charged for a like license in the nearest municipality;

             (7)      Solicitors--twenty-five dollars;

             (8)      Transportation companies--twenty-five dollars;

             (9)      Carrier--one hundred dollars, which fee entitles the licensee to sell or serve alcoholic beverages on all conveyances the licensee operates within the state;

             (10)      Dispensers--ten dollars;

             (11)      On-sale dealers at publicly operated airports--two hundred fifty dollars;

             (12)      On-sale dealers in wine for Sunday--five hundred dollars;

             (13)      Convention facility on-sale--not less than one dollar for each person residing within the municipality as measured by the last preceding federal census, the renewal fee for such license, in municipalities of the first class, is fifteen hundred dollars; the renewal fee for such license, in municipalities of the second class, is no more than twelve hundred dollars; the renewal fee for such license, in municipalities of the third class, is no more than nine hundred dollars;

             (14)      Manufacturers of malt beverages--five hundred dollars;

             (15)      Wholesalers of malt beverages--four hundred dollars;

             (16)      Malt beverage retailers, being both package dealers and on-sale dealers--two hundred fifty dollars;

             (17)      Malt beverage package dealers--one hundred fifty dollars;

             (18)      On-sale dealers in light wine containing not more than six percent alcohol by weight for each day of the week between the hours of seven a.m. and two a.m. to nonprofit corporations established pursuant to chapter 7-27--two hundred dollars; and

             (19)      Off-sale package wine dealers in table wines, sparkling wines, sacramental wine, and distilled spirits produced from product provided to an artisan distiller by the respective farm winery to be operated in conjunction with a farm winery established pursuant to chapter 35-2--one hundred fifty dollars. "


Moved by:    Pederson (Gordon)
Second by:    Rounds
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1283 AS AMENDED

Moved by:    Dreyer
Second by:    Pederson (Gordon)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1283 TO THE 36TH LEGISLATIVE DAY

Moved by:    Nygaard
Second by:    Street
Action:    Failed by roll call vote. (2-10-1-0)

Voting Yes:    Ahlers, Nygaard

Voting No:    Boomgarden, Dreyer, Engels, Juhnke, Noem, Novstrup (David), Pederson (Gordon), Street, Willadsen, Rounds

Excused:    Hunt

MOTION:     DO PASS HB 1283 AS AMENDED

Moved by:    Dreyer
Second by:    Pederson (Gordon)
Action:    Prevailed by roll call vote. (8-4-1-0)

Voting Yes:    Boomgarden, Dreyer, Juhnke, Noem, Novstrup (David), Pederson (Gordon), Willadsen, Rounds

Voting No:    Ahlers, Engels, Nygaard, Street

Excused:    Hunt

MOTION:     AMEND TITLE OF HB 1283

1283sta

     On page 1, line 1, of the printed bill, delete everything after "to" and insert "revise on-sale alcoholic beverage licenses in municipalities.".

     On page 1, delete lines 2 and 3.


Moved by:    Juhnke
Second by:    Noem
Action:    Prevailed by voice vote.

GAVEL PASSED TO CHAIR ROUNDS.

         HB 1309: prohibit the issuance of certain alcoholic beverage licenses for establishments located near Bear Butte.

Presented by:    Representative Jim Bradford (Handout # 3 &4)
Proponents:    Chief Joe American Horse (Handout #5)
        Garvard Good Plume, Defenders of the Black Hills (Handout # 6 & 7)


        Charmaine White Face, Defenders of the Black Hills (Handout # 8 & 9)
        Nancy Hilding, Prairie Hills Audobon Society (Handout # 10,11,12,13 & 14)
        Rose Cordier, Rosebud Sioux Tribe
        Senator Theresa Two Bulls
        Representative Thomas Van Norman
Opponents:    Kirk Chafee, Meade County Commissioners
        Barry J. Burgess, Black Hills Harley Davidson
        Rod Woodruff, Belle Fourche
        Bob Wilcox, SD Assoc. Of County Commissioners

MOTION:     AMEND HB 1309

1309ta

     On page 1, line 6, of the printed bill, delete everything after "mile of" and insert "a point located at the southwest corner of section 17, township six north, range six east in Meade County.".

     On page 1, delete lines 7 and 8.


Moved by:    Engels
Second by:    Ahlers
Action:    Prevailed by voice vote.

MOTION:     DEFER HB 1309 TO THE 36TH LEGISLATIVE DAY

Moved by:    Dreyer
Second by:    Novstrup (David)
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION AMEND HB 1309

1309sb

     On page 1, line 4, of the printed bill, delete "or reissued and no".

     On page 1, line 5, delete "license transfer may be granted".

     On page 1, after line 8, insert
"
     The provisions of this Act shall not apply to any existing license issued pursuant to Title 35.".


Moved by:    Engels
Second by:    Ahlers
Action:    Failed by roll call vote. (0-0-0-0)

Voting Yes:    Ahlers, Engels, Nygaard, Street

Voting No:    Boomgarden, Dreyer, Hunt, Juhnke, Noem, Novstrup (David), Pederson (Gordon), Willadsen, Rounds

MOTION:     SUBSTITUTE MOTION AMEND HB 1309

1309sa

     On page 1, line 6, of the printed bill, delete "one" and insert "one-half".


Moved by:    Ahlers
Second by:    Street
Action:    Failed by voice vote.

MOTION:     CALL THE QUESTION

Moved by:    Willadsen
Second by:    Pederson (Gordon)
Action:    Prevailed by voice vote.

MOTION:     DEFER HB 1309 TO THE 36TH LEGISLATIVE DAY

Moved by:    Dreyer
Second by:    Novstrup (David)
Action:    Prevailed by roll call vote. (9-4-0-0)

Voting Yes:    Boomgarden, Dreyer, Hunt, Juhnke, Noem, Novstrup (David), Pederson (Gordon), Willadsen, Rounds

Voting No:    Ahlers, Engels, Nygaard, Street

MOTION:     ADJOURN

Moved by:    Willadsen

Second by:    Hunt
Action:    Prevailed by voice vote.

Carolyn Jorgensen

____________________________

Committee Secretary
Tim Rounds, Chair


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