93rd Legislative Session _ 2018

Committee: House Commerce and Energy
Wednesday, February 21, 2018

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Beal
P    Gosch
P    Greenfield (Lana)
P    Hawley
P    Johnson
P    May
P    McCleerey
P    Mills
P    Pischke
P    Steinhauer
P    Willadsen
P    Zikmund, Vice-Chair
P    Rounds, Chair

OTHERS PRESENT: See Original Minutes

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

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 14, 2018

Moved by:    Willadsen
Second by:    McCleerey
Action:    Prevailed by voice vote.

    HB 1200: revise certain on-sale full-service restaurant alcoholic beverage license provisions and to authorize municipalities and counties to lease on-sale full-service restaurant alcoholic beverage licenses.

Presented by:    Representative Steinhauer
Proponents:    Will Mortenson, SD Municipal League


        Lynn Kendall, Rapid City Area Chamber of Commerce
        Representative Mickelson
Opponents:    Matt Krogman, SD Licensed Beverage Dealers and Gaming Association

MOTION:    DO PASS HB 1200

Moved by:    Gosch
Action:    Died for lack of a second.

MOTION:    AMEND HB 1200

1200wc

    On page 1, line 9, of the printed bill, after "additional" insert "or lease".

    On page 1, line 12, after "issued" insert "or leased".

    On page 1, line 14, after "issued" insert "or leased".

    On page 1, line 15, after "issued" insert "or leased".

    On page 2, line 2, after "issued" insert "or leased".

    On page 2, line 6, remove the overstrikes from "at least".

    On page 2, line 8, remove the overstrikes from "at least".

    On page 2, line 16, delete everything after "fee." .

    On page 2, delete lines 17 and 18.

    On page 3, line 10, delete "ten" and insert "seven".

    On page 4, delete lines 5 to 24, inclusive, and insert:

"    Section 5. That § 35-4-120 be repealed.

    35-4-120. Upon the adoption of an ordinance pursuant to § 35-4-111, any person who purchased an on-sale license issued pursuant to subdivision 35-4-2(4) or (6) between January 1, 2003, and January 1, 2008, and who owned the license on January 1, 2008, shall report to the municipality or county that issued the license the amount paid for the license. If the municipality or county that issued the on-sale license adopts an ordinance pursuant to § 35-4-111, and requests from any other

licensee the amount originally paid for any other on-sale license pursuant to § 35-4-117, the licensee shall report that amount to the municipality or county. The declared purchase price shall be made under oath and shall include the documents establishing the amount paid for the on-sale license. If the transaction included other personal property or real property, the full market value of such property on the date of the transaction shall be deducted from the total purchase price to establish the amount paid for the license. The person who owned the license on January 1, 2008, has the burden of establishing the amount paid for the license. If the amount reported is used to determine current fair market value pursuant to § 35-4-117, any licensee who contends that the amount does not accurately reflect the fair market value of the license on the date of purchase may file an objection to the report. The objection shall be filed with the municipality or county within thirty days of the date the license fee is set pursuant to § 35-4-116. If an objection is filed, the governing board of the municipality or county shall conduct a hearing to determine the fair market value of the license. The determination of the governing board may be appealed to circuit court. ".



Moved by:    Willadsen
Second by:    McCleerey
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1200 AS AMENDED

Moved by:    Gosch
Second by:    Pischke
Action:    Prevailed by roll call vote. (7-5-1-0)

Voting Yes:    Gosch, Johnson, McCleerey, Pischke, Steinhauer, Willadsen, Zikmund

Voting No:    Beal, Greenfield (Lana), Hawley, Mills, Rounds

Excused:    May

    HB 1067: revise certain provisions regarding the licensing of wineries and wine manufacturers.

Presented by:    Jason Evans, Department of Revenue
Proponents:    Mike Gould,Vin Winery, Rapid City
        Eldon Nygaard, Valiant Winery, Vermillion
        Roger Tellinghuisen, Fire House Wine Cellars (Handout(s): #2)
Opponents:    Jim Schade, Schade Winery, Volga, Self (Handout(s): #1)
        Dave Howard, Dakota Falls Winery, Brandon
        Don South, Strawberry Winery, Renner, self
        Matthew Jackson, Belle Joli, Sturgis, Self
        Matt Keck, Prairie Berry Winery, self
        Sandi Vojta, self, Hill City
        Greg Stach, Vineyard, Yankton
        Muriel Stach, Vineyard, Yankton

MOTION:    AMEND HB 1067

1067fb

    On page 1 of the printed bill, delete line 5, and insert "For the purposes of this Act, the term, farm winery, means".

    On page 1, line 6, delete "(1) "Farm winery,"".

    On page 1, line 10, delete ";" and insert ".".

    On page 1, delete lines 11 and 12.

    On page 1, delete lines 14 and 15, and insert:

"

    The fee for a farm winery license is five hundred dollars.".

    On page 2, delete line 1.

    On page 2, line 10, delete "or on a wine manufacturer".

    On page 2, line 16, delete "a period of one year" and insert "the period covered by the license".

    On page 3, delete lines 15 to 19, inclusive.


Moved by:    Willadsen
Second by:    Greenfield (Lana)
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1067 AS AMENDED

Moved by:    Willadsen
Second by:    Steinhauer
Action:    Prevailed by roll call vote. (11-2-0-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, May, McCleerey, Mills, Steinhauer, Willadsen, Zikmund, Rounds

Voting No:    Johnson, Pischke

Passed gavel to Representative Willadsen

    HB 1313: revise certain provisions regarding the licensing of distillers and cider manufacturers.

Presented by:    Representative Rounds
Proponents:    Jason Evans, Department of Revenue

MOTION:    AMEND HB 1313

1313wa

    On page 8, line 10, of the printed bill, delete "or retailer".


Moved by:    Beal
Second by:    Gosch
Action:    Prevailed by voice vote.

MOTION:    AMEND THE PENDING AMENDMENT

1313wb

    On page 2, line 19, of the printed bill, delete everything after "year" .

    On page 2, line 20, delete everything before "." .


Moved by:    Greenfield (Lana)
Second by:    Gosch
Action:    Prevailed by voice vote.

MOTION:    AMEND THE PENDING AMENDMENT

1313fa

    On page 2, line 19, of the printed bill, delete "a period of one year" and insert "the period

covered by the license".



Moved by:    Beal
Second by:    Gosch
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1313 AS AMENDED

Moved by:    Beal
Second by:    Greenfield (Lana)
Action:    Prevailed by roll call vote. (12-0-1-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, May, McCleerey, Mills, Pischke, Willadsen, Zikmund, Rounds

Excused:    Steinhauer

MOTION:    ADJOURN

Moved by:    Beal
Second by:    Pischke
Action:    Prevailed by voice vote.

Nancy Hanson

____________________________

Committee Secretary
Tim Rounds, Chair


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