Senate Local Government Minutes 2/21/2018 07:45 AM

93^rd Legislative Session _ 2018

Committee: Senate Local Government

Wednesday, February 21, 2018

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Cammack
P    Ewing
P    Killer
P    Maher
P    Nelson
P    Youngberg, Vice-Chair
P    Langer, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Senator Langer.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 14, 2018

Moved by:    Ewing
Second by:    Youngberg
Action:    Prevailed by voice vote.

    SB 187: accommodate legislation authorizing the issuance of wine manufacturer licenses.

Presented by:    Senator Solano
Proponents:    Roger Tellinghuisen, Fire House Wine Cellars (Handout(s): 1)
        Mike Gould, Rapid City, Self (Handout(s): 2)
        Eldon Nygaard, South Dakota Beverage Producers Assoc.
        Yvonne Taylor, SD Municipal League
Opponents:    Jeremiah Klein, self, Rosholt (Handout(s): #3)
        Matthew Jackson, Belle Joli, Sturgis, Self (Handout(s): 4)
        Sandi Vojia, Prairie Berry Winery, self (Handout(s): 5,6)
        Greg Stack , Yankton, self (Handout(s): 7)
        Dilba Ringling, Schade Winery, Volga, Self

        Don South, Strawberry Winery, Renner, self
        Jim Schade, Schade Winery, Volga, Self (Handout(s): 8)
        Matt Keck, Prairie Berry Winery, self

MOTION: AMEND SB 187

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

"

Section 1. That the code be amended by adding a NEW SECTION to read:

For the purposes of this Act the term, wine manufacturer, means any manufacturer located in this state producing, blending, filtering, clarifying, aging and bottling wine, as defined in § 35-1-1, that is not a farm winery.

Section 2. That the code be amended by adding a NEW SECTION to read:

The fee for a wine manufacturer license is two thousand five hundred dollars.

Section 3. That the code be amended by adding a NEW SECTION to read:

Except as provided in this Act, all provisions of title 35 apply to the production, sale, possession, transportation, and consumption of alcoholic beverages produced by any person licensed pursuant to this Act.

Section 4. That the code be amended by adding a NEW SECTION to read:

There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this Act an excise tax at the same rates and collected and administered in the same manner as the taxes imposed on alcoholic beverages in chapter 35-5. Notwithstanding any other provision of law, the taxes imposed on a wine manufacturer shall be deposited in the general fund.

Section 5. That the code be amended by adding a NEW SECTION to read:

A licensed wine manufacturer may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed wine manufacturer may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the alcoholic beverages.

Section 6. That the code be amended by adding a NEW SECTION to read:

The holder of any license issued under this Act shall register labels for each type or brand produced with the department in the same manner as prescribed for alcoholic beverages in chapter 39-13, before sale. If the label or brand states or implies in a false or misleading manner a connection with an actual living or dead Native American leader, the department shall reject the registration of the label.

Section 7. That the code be amended by adding a NEW SECTION to read:

The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this Act, and procedures for collecting the excise taxes pertaining to the licenses.

Section 8. That the code be amended by adding a NEW SECTION to read:

A licensed wine manufacturer may operate up to two additional locations in this state by obtaining a license pursuant to this Act for each location if the licensed wine manufacturer performs at least one manufacturing process at each site."

Moved by:    Cammack
Second by:    Youngberg
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 187 AS AMENDED

Moved by:    Youngberg
Second by:    Ewing
Action:    Failed by roll call vote. (2-5-0-0)

Voting Yes:    Ewing, Langer

Voting No:    Cammack, Killer, Maher, Nelson, Youngberg

MOTION:    DEFER SB 187 TO THE 41^ST LEGISLATIVE DAY

Moved by:    Maher
Second by:    Youngberg
Action:    Withdrawn.

        THE CHAIR DEFERRED SB 187

    SJR 9: Proposing and submitting to the electors at the next general election an amendment

to the Constitution of the State of South Dakota, relating to the authorization of certain games of chance in the City of Yankton.

Presented by:    Senator Tidemann
Proponents:    Nick Mosher, YAPG, Yankton, self (Handout(s): 9)
        Dan Spect, Yankton, self
        Jake Hoffner, Yankton Mayor, self
        Brennan Ewald, Yankton, self
        Representative Hunhoff
        Amy Nelson, Yankton, self
Opponents:    Tom Nelson, Spearfish, self
        Mike Rodman, Deadwood, self
        Jason Cook, Yankton Sioux Tribe, self
        Tony Reider, Flandreau Sioux Tribe, Self
        Roger Trudell, Santee Sioux, Santee, Neb. Self
        Barry Thompson, Crow Creek, self
        Harold Frazier, Cheyenne River Sioux Tribe, self

recess

    SJR 9: Proposing and submitting to the electors at the next general election an amendment to the Constitution of the State of South Dakota, relating to the authorization of certain games of chance in the City of Yankton.

Opponents:    Senator Heinert
        Ross Garelick Bell, Flandreau Santee Sioux Tribe (Handout(s): 10,11,12,13,14,)
        Cindy Flakoll, Concerned Women For America Legislative Action Committee
        Tonchi Weaver, South Dakota Citizens for Liberty, Inc.
        Mark Van Norman, GPTCA, self
        ThelmaThomas, Santee Sioux Tribe, Neb.
        Chancey Wilson, Oglala Sioux Tribe, Self
        Norman Woods, Family Heritage Alliance Action
        Robert Riter, Music and Vending Association of South Dakota
        Bill Pourier, Self

MOTION:    MOTION WITHOUT RECOMMENDATION SJR 9

Moved by:    Maher
Second by:    Cammack
Action:    Was not acted on.

SUBSTITUTE MOTION: DEFER SJR 9 TO THE 41^ST LEGISLATIVE DAY

Moved by:    Killer
Second by:    Nelson
Action:    Failed by roll call vote. (3-4-0-0)

Voting Yes:    Ewing, Killer, Nelson

Voting No:    Cammack, Maher, Youngberg, Langer

MOTION:    WITHOUT RECOMMENDATION SJR 9

Moved by:    Maher
Second by:    Cammack
Action:    Prevailed by roll call vote. (4-3-0-0)

Voting Yes:    Cammack, Maher, Youngberg, Langer

Voting No:    Ewing, Killer, Nelson

    SB 187: accommodate legislation authorizing the issuance of wine manufacturer licenses.

Presented by:    Roger Tellinghusien Fire House Wine Cellars
Proponents:    Senator Solano

MOTION:    AMEND SB 187

On the previously adopted amendment (187fc), delete Section 8. and insert:

Section 8. That the code be amended by adding a NEW SECTION to read:

A licensed wine manufacturer may operate up to one additional location in this state by obtaining a license pursuant to this Act for each location if the licensed wine manufacturer performs at least one manufacturing process at each site.

Moved by:    Cammack
Second by:    Maher
Action:    Prevailed by voice vote.

MOTION: AMEND SB 187

On the previously adopted amendment (187fc), after Section 8., insert:

Section 9. That the code be amended by adding a NEW SECTION to read:

The Department of Revenue shall promulgate rules pursuant to chapter 1-26 to create a South Dakota certified wine.

Moved by:    Cammack
Second by:    Maher
Action:    Prevailed by voice vote.

MOTION:    SUBSTITUTE MOTION DO PASS SB 187 AS AMENDED

Moved by:    Ewing
Second by:    Nelson
Action:    Was not acted on.

MOTION:    AMEND SB 187

On the previously adopted amendment (187ob) after Section 8., add a new section to read:

Section 9. That the code be amended by adding a NEW SECTION to read:

The quantity of bulk wine in any wine manufacturer's annual production shall not exceed fifty percent of that winery's annual production. The bulk wine must be blended and not bottled. Bulk wine as used in this section means fermented juice from grapes and other fruit bases or honey. If the name and address section of the label states anything other than, Estate Bottled, pursuant to 27 CFR 4.26 as of January 1, 2018, and, Produced and Bottled, or, Made and Bottled, pursuant to 27 CFR 4.35 as of January 1, 2018, the department shall reject the registration of the label.

Moved by:    Nelson
Second by:    Maher
Action:    Prevailed by voice vote.

MOTION:    DO PASS SB 187 AS AMENDED

Moved by:    Maher
Second by:    Ewing
Action:    Prevailed by roll call vote. (6-1-0-0)

Voting Yes:    Cammack, Ewing, Maher, Nelson, Youngberg, Langer

Voting No:    Killer

MOTION:    TO TABLE SB 189

Moved by:    Cammack
Second by:    Maher
Action:    Prevailed by roll call vote. (7-0-0-0)

Voting Yes:    Cammack, Ewing, Killer, Maher, Nelson, Youngberg, Langer

SB 203 Withdrawn

MOTION:    ADJOURN

Moved by:    Ewing
Second by:    Maher
Action:    Prevailed by voice vote.

Mary Kirk

____________________________

Committee Secretary

Kris Langer, Chair

../02210745.SLO

Page 1