(HB 1070)
Alcoholic beverage regulation changed.
Section 1. That § 35-1-1 be amended to read:
35-1-1. Terms used in this title mean:
decoction, or combination of both, in potable brewing water, of malted barley with
hops, or their parts, or their products, or any other similar product, and with or
without other malted cereals, and with or without the addition of unmalted or
prepared cereals, other carbohydrates or products prepared therefrom, and with or
without the addition of carbon dioxide, and with or without other wholesome
products suitable for human consumption containing not less than one-half of one
percent of alcohol by weight;
35-1-1.1. For the purposes of this title, an entity any person that has entered into an
operating agreement with a municipality pursuant to § 35-4-19 is a licensee. The number of
operating agreements that a A municipality may not enter into may not exceed more operating
agreements than the maximum number of retail licenses of each type that may be issued
pursuant to this title.
Section 3. That chapter 35-1 be amended by adding a NEW SECTION to read:
Section 4. That § 35-1-5.5 be amended to read:
35-1-5.5. The board of county commissioners or the governing body of a municipality or
county may permit the consumption, but not the sale, of any alcoholic beverage on property
owned by the public or by a nonprofit corporation within its jurisdiction. The permit period may
not exceed twenty-four hours and the hours of authorized consumption may not exceed those
permitted for on-sale licensees. However, a municipality or county may permit the sale of
alcoholic beverages on publicly owned property or property owned by a nonprofit corporation
if it is during a special event for which a temporary license has been issued pursuant to § 35-4-124.
Section 5. That § 35-1-5.6 be amended to read:
35-1-5.6. It is a Class 2 misdemeanor for any person to consume any alcoholic beverage
upon the premises of a licensed on-sale dealer if the alcoholic beverage was not purchased from
the on-sale dealer. However, a person may consume any alcoholic beverage upon the premises
of a licensed on-sale dealer if the beverage is purchased from a licensee who has been issued
a temporary license pursuant to § 35-4-124 for a special event occurring on the premises of the
licensed on-sale dealer.
Section 6. That § 35-1-8 be amended to read:
35-1-8. No manufacturer, distributor, wholesaler, or transporter may sell or deliver any
package containing alcoholic beverages manufactured or distributed for resale, unless the person
to whom the package is sold or delivered is authorized to receive the package in accordance
with the provisions of as provided in this title.
Section 7. That § 35-1-9 be amended to read:
35-1-9. No licensee under this title may keep or store any alcoholic beverages at any place
within the state other than on the premises where the licensee is authorized to operate. However,
any such a licensee may store such alcoholic beverages in a warehouse licensed under § 35-4-44
or with a bonded warehouse that has qualified under pursuant to § 35-4-45. Such storage is
subject to rules promulgated by the secretary pursuant to chapter 1-26. However, in localities
where there is no such bonded warehouse, the secretary may, by rules promulgated pursuant to
chapter 1-26, provide for storage of malt beverages.
Section 8. That § 35-1-9.2 be repealed.
Section 9. That § 35-1-9.3 be amended to read:
35-1-9.3. It is not a violation of § 35-1-9.1 if:
subdivision 35-4-2(9) possesses an open alcoholic beverage. The However, the driver
of such a carrier is prohibited from possessing in the driver compartment of the
vehicle a package or receptacle containing an alcoholic beverage if the seal of the
original package seal has been is broken.
Section 10. That § 35-2-1 be amended to read:
35-2-1. Any application for a license as provided for by in this title shall be made on forms
prescribed by the secretary and shall be verified by the oath of the applicant. If the applicant is
not an individual, the oath of applicant shall be verified by an officer of the entity applying for
the license. The application shall contain such information as required by the secretary requires
and shall show that and necessary to determine the eligibility of the applicant is eligible for the
license for which application is made.
Section 11. That § 35-2-1.1 be amended to read:
35-2-1.1. Any application under this title for a manufacturer, distiller, wholesaler, solicitor,
transporter, carrier, or dispenser retail on premises manufacturer, wine carrier, or direct shipper
license, and any application for a license to be issued to a county or municipality, shall be
initially submitted to the secretary who. The secretary may approve or disapprove the
application depending on whether if the secretary deems considers the applicant a suitable
person to hold the license and whether the secretary considers the proposed location is suitable.
Section 12. That § 35-2-1.2 be amended to read:
35-2-1.2. Any applicant for a new retail license, except as set forth in § 35-2-1.1, or the
transfer of an existing license shall submit an application to the governing board body of the
municipality within in which the applicant intends to operate, or if outside the corporate limits
of a municipality, to the board of county commissioners governing body of the county in which
the applicant intends to operate. The applicant shall submit the required fee with the application.
The governing board body may approve or disapprove the application for a new retail license
or the transfer of an existing license depending on whether if the governing board deems body
considers the applicant a suitable person to hold the license and whether the governing board
considers the proposed location is suitable.
35-2-2. Every application for a license directed submitted to the secretary as provided by
§ 35-2-1.1 shall be accompanied by payment of the required fee for the license. However, the
license fee for a municipal off-sale license shall be retained by the municipality. If the
application is rejected, the fee shall be promptly returned by the secretary to the applicant. If the
application is granted, the secretary fee shall deposit the fee be deposited in the state treasury
general fund.
Section 14. That § 35-2-2.1 be amended to read:
35-2-2.1. Every Each application for a license under this chapter title shall include an
agreement by the applicant that the applicant's premises, for the purposes of search and seizure
laws of the state and any ordinances of the municipality wherein license is applied for where the
license is issued, are considered public premises. In addition, the agreement shall specify that
state:
35-2-3. No license for the on- a retail on-sale or off-sale at retail of alcoholic beverages, as
those terms are defined and classified under the provisions of this title, beverage license may
be granted issued to an applicant for any such license, except after until a public hearing, upon
notice, as provided for in is conducted pursuant to §§ 35-2-4 and 35-2-5.
Section 16. That § 35-2-4 be amended to read:
35-2-4. If any resident of an incorporated municipality files with the auditor or finance
officer of the municipality, or if any resident of the a county files with the county auditor of any
county, a written request that the resident be notified of the time and place of hearing upon any
specified application for a license for the on- retail on-sale or off-sale at retail of alcoholic
beverages, the auditor or finance officer, as the case may be, or county auditor shall give notice
to the resident. The notice shall be sent by mail and shall be given a sufficient length of time
before the hearing upon the application so as to allow the resident a reasonable opportunity to
be present.
Section 17. That § 35-2-5 be amended to read:
Section 18. That § 35-2-5.1 be amended to read:
35-2-5.1. If the governing board body of the municipality or county does not approve the
application, the governing board body shall endorse on the application the reasons for the denial
and return the application and fee to the applicant. No further application may be received from
the applicant until after the expiration of one year from the date of a denied application.
However, if the application was denied based on the suitability of the location for the license,
no further application may be received from the applicant until after the expiration of three
months from the date of the denied application only if the subsequent application is for a
different location.
Section 19. That § 35-2-5.2 be amended to read:
35-2-5.2. If the governing board body of the municipality or county approves the application,
the governing board body shall endorse the approval on the application. The licensee is entitled
to operate under the license for the succeeding licensing year if the license is approved by the
secretary. However, if any transfer of ownership or location occurs, or if the licensee has been
convicted of any criminal offense during the past licensing year, the application together with
the approval of the governing board shall be forwarded to the secretary who may approve or
disapprove the application. The license fee shall be deposited in the general fund of the
municipality or county.
Section 20. That § 35-2-5.3 be amended to read:
35-2-5.3. No licensing authority may reissue any on-sale license issued pursuant to
subdivision 35-4-2(4), (6), or (13) to the same licensee or the licensee's transferee if the license
has not been actively used by the applicant during the two years preceding the date of the current
application. For purposes of this section, the term, actively used, means that the licensed
premise premises was open to the public during regular business hours for the sale and
consumption of distilled spirits for at least sixty days during the two preceding years. However,
the licensed premise premises is only required to be open five days per year if it is open to the
public during a special event that has at least twenty-five thousand visitors. However, the
number of licenses held by a municipality pursuant to chapter 35-3 may not be less than the total
number of licenses available to be issued as of July 1, 2010.
Section 21. That § 35-2-6.1 be amended to read:
35-2-6.2. Any licensee under this title, with the exception of a solicitor, must shall be a
person of good moral character, never convicted of a felony, and, if a corporation, the managing
officers thereof must have like of the corporation shall meet the same qualifications.
Section 23. That § 35-2-6.3 be amended to read:
35-2-6.3. Any distiller, manufacturer, wholesaler, or retailer licensee under this title must
shall be the owner or actual lessee of the premises where the business is to be conducted and the
sole owner of the business to be operated under such the license. However, this section does not
apply to a special event licensee issued a temporary license pursuant to § 35-4-124.
Section 24. That § 35-2-6.4 be amended to read:
35-2-6.4. Except as provided in § 35-5-3.2, no distiller, manufacturer, or wholesaler licensee
under this title nor any officer, director, stockholder, agent, or employee thereof or any relative
of the licensee, officer, director, stockholder, agent, or employee may be in any way financially
interested, either directly or indirectly, or participate in the operation of the business of any
retailer licensee other than by reason of sales to the licensee. No solicitor licensee may sell to
any retailer licensee in which a relative of the solicitor licensee has any direct or indirect
financial interest or participates in the operation of the retail business. A retailer who is a party
to any action prohibited by this section is guilty of a Class 2 misdemeanor.
Section 25. That § 35-2-6.6 be repealed.
Section 27. That § 35-2-7 be amended to read:
35-2-7. Any license granted under this title may be transferred to a new location or to
another person. If the transfer is to another person, the licensee shall show in writing, under
oath, that the licensee has made a bulk sale of the business operated under the license. The bulk
sale may be conditioned upon the granting of a transfer of the license. The transferee shall make
an application exactly as if an original applicant, and the application shall take the same course
and be acted upon in the same manner as if an original application. No transfer of any license
to another person may be granted until all taxes incurred by the transferor as a result of the
operation of the licensed premises, including municipal and state sales and use taxes,
unemployment insurance tax, or any other state tax, are paid or are not delinquent. No transfer
of any license to another person may be granted until all property taxes which are the liability
of the licensee levied on the licensed premises are paid or are not delinquent. No transfer of any
license may be granted from an Indian tribe operating in Indian country controlled by the Indian
tribe or from an enrolled tribal member operating in Indian country controlled by the enrolled
tribal member's tribe until all use tax incurred as a result of the operation of the licensed
premises by nonmembers, and any other state tax, has been remitted or is not delinquent. If the
transfer is to a new location, the licensee shall make application showing all the relevant facts
for the new location. The application shall take the same course and be acted upon in the same
manner as if an original application. If a license is transferred, a fee of one hundred fifty dollars
is required to continue the unexpired portion of the license.
Section 28. That § 35-2-8 be amended to read:
35-2-8. If an individual licensee under this title, other than a solicitor or dispenser licensee
under chapter 35-4, dies, the personal representative of the deceased licensee may succeed to
all of the rights of the deceased licensee under the license. By operating under the license, the
personal representative agrees to all of the terms and conditions of the license and is subject to
all of the liabilities and responsibilities of such a the licensee. Any bond executed under the
provisions of this title includes the personal representative as a principal if the license passes
to the personal representative.
Section 29. That § 35-2-9 be amended to read:
35-2-9. Any licensee authorized to deal in alcoholic beverages, upon termination of the
license, may at any time within thirty days after the termination of the license sell the whole or
any part of the alcoholic beverages included in the licensee's stock in trade at the time of the
termination to any wholesaler licensed under this title to deal in to sell the alcoholic beverages
so purchased by the wholesaler. The wholesaler shall make a complete report of the purchase
to the secretary.
Section 30. That § 35-2-10 be amended to read:
35-2-10. The secretary, in compliance with chapter 1-26, may revoke or suspend any license issued under this title upon proof of violation by the licensee, by the licensee's agents or employees, or by the manager or contractual operators of retail establishments and their agents or employees operating under a county or municipal license, of any of the following:
Section 31. That § 35-2-10.1 be amended to read:
35-2-10.1. No retail license may be revoked or suspended because of a violation of any
statute, ordinance, rule, or regulation prohibiting the sale or service of any alcoholic beverage
to a person under the age of twenty-one years if the violation was committed by an employee
or agent of the licensee and the licensee has not had more than two violations of any statute,
ordinance, rule, or regulation prohibiting the sale or service of an alcoholic beverage to a person
under the age of twenty-one years on the premises where the violation occurred in the previous
twenty-four months.
Section 32. That § 35-2-10.2 be amended to read:
35-2-10.2. The department shall, on or before the first of July of each year, develop and
publish maintain on its public internet website, a directory listing all nationally recognized
training programs which have been that are approved by the department. The department shall
annually notify each licensee in writing and by posting on the department's internet website a
list of the nationally recognized training programs approved pursuant to § 35-2-10.1. Any
alcohol licensee making a prohibited sale or service of an alcoholic beverage to a person under
the age of twenty-one years has the burden of proof to show that its the licensee's employees
have attended an approved alcohol training program to be eligible for any reduction in the
penalty imposed for the violation.
Section 33. That § 35-2-10.3 be amended to read:
35-2-10.3. Any enforcement entity that conducts compliance checks using underaged
informants to determine if a licensee will sell an alcoholic beverage to a person under the age
of twenty-one must shall inform the licensee in writing of the results of any such compliance
check within forty-eight hours after the compliance check takes place. No licensed premises
may be subject to more than one compliance check within a forty-eight hour period.
Section 34. That § 35-2-11.1 be amended to read:
35-2-11.1. The governing board body of the a municipality or the board of county
commissioners which approved the application for license under § 35-2-1.2 shall may
recommend to the secretary following a hearing that any license issued under this title be
suspended or revoked for violation of any of the provisions of this title or for violations of any
ordinance or regulation of the governing body issuing the license relevant to alcoholic beverage
control which that occurs on the premises of the licensee. Upon receipt of the recommendation,
the secretary shall proceed in accordance with the provisions of as provided in §§ 35-2-10 and
35-2-21.
Section 35. That § 35-2-11.2 be amended to read:
35-2-11.2. Any action taken by the governing board body of a municipality or board of
county commissioners pursuant to § 35-2-11.1 shall be preceded by notification to the licensee,
at the address given on the license, at least thirty days in advance of the date set for public
hearing on the suspension action. Notice of public hearing shall be published in the official
newspaper of the municipality or county at least one week prior to such before the hearing and
in such a form as deemed appropriate approved by the municipality or county governing body.
Section 36. That § 35-2-12 be amended to read:
35-2-12. If the secretary receives information of a violation by any licensee of any provision
of this title, the secretary shall, without delay, investigate the alleged violation. Any person may
file with the secretary a duly verified complaint as to any such violation by any such licensee.
Upon receipt of the complaint, the secretary shall, without delay, make a thorough investigation.
If there is substantial evidence to support the charge made in the complaint that a violation of
any provision of this title has occurred, the secretary shall cause proceedings to be instituted for
revocation of the license proceed in accordance with the provisions of §§ 35-2-10, 35-20-10.1,
and 35-2-21.
Section 37. That § 35-2-13 be amended to read:
35-2-13. An applicant or licensee under this title, or any interested person or governing
board interested therein, body has a right to a hearing in relation to any action taken upon the
application or license, which. The hearing shall be held in the county where the license has been
applied for or has been issued, in accordance with under the provisions of chapter 1-26.
However, if the parties agree, a hearing to determine whether the secretary may suspend or
revoke a license may be held at a location other than the county where the license has been
applied for or has been issued. Such hearing may be held pursuant to § 1-25-1.
Section 38. That § 35-2-19 be amended to read:
35-2-19. Upon service of notice of a decision or order for revocation of the license on the
licensee, all of the licensee's rights under the license terminate ten days after the notice, except
in the event of a stay on appeal.
Section 39. That § 35-2-21 be amended to read:
35-2-21. If a violation is established in any proceeding pursuant to the provisions of under
this title or § 37-10A-1, but the secretary is satisfied that determines due to the nature and the
circumstances of the violation were such that, a suspension of the license would be is adequate,
the secretary may, instead of revoking the license, suspend it the license for a period not
exceeding sixty days. The suspension is effective twenty-four hours after service of notice of
the suspension upon the licensee. During the period of the suspension, the licensee may not
exercise any rights or privileges under the license. The secretary may, in lieu of suspending or
revoking the license, accept a monetary offer in compromise in settlement of any proceeding
pursuant to the provisions of under this title. The amount of the offer in compromise settlement
may not exceed seventy-five thousand dollars. The secretary may also recover the actual costs
of investigation and prosecution.
Section 40. That § 35-2-25 be amended to read:
35-2-25. No license granted pursuant to subdivisions 35-4-2(3), (4), (6), (12), (13), (16),
(17), (17A), and (20) and §§ 35-12-2 and 35-13-2 this title may be issued unless the applicant
has first obtained a sales tax license pursuant to chapter 10-45, or, if applicable, or a use tax
license pursuant to chapter 10-46, if applicable.
Section 41. That § 35-3-8 be amended to read:
35-3-8. As to any of the questions referred to in § 35-3-7, fifteen Fifteen percent of the legal
voters residing in a municipality may petition for a special election to determine such any
question subject to local option pursuant to § 35-3-7. In the case of If a municipality having has
a mayor, the number of legal voters shall be deemed is the total number voting in the last
preceding election of a mayor, and in other municipalities the number of legal voters shall be
deemed is the total number voting in the last preceding regular municipal or township election.
The petition shall set forth the question which the petitioners desire submitted, and shall be filed
with the city or town auditor or finance officer, or township clerk, as the case may be.
Section 42. That § 35-3-11 be amended to read:
35-3-11. If, at the election on the question specified in § 35-3-10, the majority vote is in the
affirmative, on-sale licenses to operate in the municipality may be granted as otherwise provided
in this code, unless the same question is again submitted and the majority vote is in the negative.
If the majority vote on the question is in the negative, all on-sale licenses are thereby terminated
thirty days after the canvass of the vote at the election, and no on-sale license to operate in the
municipality may thereafter be granted unless the same question is again submitted and the
majority vote is in the affirmative, or unless there is submitted the question of a license being
granted to the municipality and the majority vote on the question is in the affirmative. Nothing
in this section precludes the question required by § 35-3-10 from being resubmitted in any
subsequent election after the waiting period required by § 35-3-26.
Section 43. That § 35-3-13 be amended to read:
35-3-13. If the majority vote is in the affirmative on the election question provided in
subdivision subdivisions 35-3-12(1) and (2), the governing board body of the municipality shall
make an application for an off-sale license or licenses. If the majority vote is in the affirmative
on the election question provided in subdivision 35-3-12(2) and the municipality has applied
for or has been issued an off-sale license, the governing board of the municipality shall make
an application for an on-sale the license or licenses. The application or applications shall be filed
with the secretary, and the secretary shall issue the license or licenses applied for and all similar
licenses. Any similar license in the municipality shall terminate thirty days after the canvass of
the vote at such election.
Section 44. That § 35-3-24 be amended to read:
35-3-24. If, at a special election on the questions specified in subdivisions subdivision 35-3-23(1) and or (2), the majority vote is in the negative on the either question in subdivision (1),
the governing board body of the municipality may not apply for the renewal of either the off-sale
license or the on-sale license licenses. If the majority vote is in the negative on the question in
subdivision (2), the governing board of the municipality may not apply for the renewal of the
on-sale license.
Section 45. That § 35-3-26 be amended to read:
35-3-26. If the question of whether on-sale licenses shall be granted has been submitted to
the voters of a municipality, the same question may not be resubmitted within a year thereafter.
If either of the questions If any question specified in §§ 35-3-12 and 35-3-23 this chapter has
been submitted to the voters of a municipality, neither the same question may not be submitted
within a one year thereafter.
Section 46. That § 35-4-2 be amended to read:
35-4-2. Classes The classes of licenses, with the fee of each class, follow are as follows:
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 an off-sale license 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;
twelve hundred dollars; the renewal fee for such the license, in municipalities of the
third class, is no more than nine hundred dollars;
Section 48. That § 35-4-2.4 be amended to read:
35-4-2.4. Any municipality which that holds an off-sale license under subdivision 35-4-2(5)
is eligible for a retailer's or package dealer license under subdivisions either subdivision 35-4-2(12) or (16), (17), and (17A) or both. Any municipality which that holds an on-sale license
under chapter 35-4 is eligible for a retailer's license under either subdivision 35-4-2(12) or (16),
or both. Upon termination of any such license the governing board of the municipality is
authorized to liquidate the business operated pursuant to the license and the assets of the
business in a manner as may be determined by resolution of the governing board, not
inconsistent with the provisions of this title.
Section 49. That § 35-4-2.5 be repealed.
Section 51. That § 35-4-2.8 be amended to read:
35-4-2.8. An on-sale Any retail licensee, licensed under subdivision 35-4-2(4) or (6), this
chapter may also be licensed under subdivision 35-4-2(12) or (16), or both hold other retail
license types issued pursuant to this chapter at the same licensed premises. A licensee holding
two or more licenses pursuant to this section may exercise the privileges granted under the each
license issued pursuant to subdivision 35-4-2(12) or subdivision 35-4-2(16).
Section 52. That § 35-4-2.11 be amended to read:
35-4-2.11. Fifty percent of all license and transfer fees received under the provisions of
subdivisions 35-4-2(16), (17), (17A), and (20) pursuant to subdivision 35-4-2(16) shall remain
in the municipality in which the licensee paying the fee is located, or if. If the licensee is located
outside the corporate limits of a municipality, then in fifty percent of the fees remain in the
county in which the licensee is located. In addition, fifty percent of wholesaler license fees
received under subdivision 35-4-2(15) shall revert to the municipality in which the licensee is
located, or if outside the corporate limits of a municipality, then to the county in which the
licensee is located. The remainder of all license and transfer fees and penalties received shall
be credited to the state general fund.
Section 53. That § 35-4-4.1 be repealed.
Section 54. That § 35-4-5.1 be amended to read:
35-4-5.1. No distributor of distilled spirits, manufacturer, rectifier, distiller, or jobber or
retailer, or a copartner or a majority stockholder of a parent or subsidiary corporation or holder
of a controlling interest in any of them a manufacturer or retailer, may be granted a wholesale
license or be granted a renewal of such a wholesale license under this chapter.
Section 55. That § 35-4-6 be amended to read:
35-4-6. Except as provided in subdivisions 35-4-2(12), and (16), (17), (17A), and (19), off-sale licenses may only be issued under this chapter only to operate within a municipality or an
improvement district created pursuant to chapter 7-25A.
Section 56. That § 35-4-10 be amended to read:
35-4-10. No more than two off-sale licenses issued pursuant to subdivisions 35-4-2(3) and
(5) may be issued under this chapter to operate in a municipality of one thousand or less and not
exceeding one license for every additional fifteen hundred of population or fraction thereof. The
number of off-sale licenses may not be less than the total number of licenses allowable or issued
as of July 1, 1981, and that have never been revoked or not reissued.
Section 57. That § 35-4-10.3 be amended to read:
Section 58. That § 35-4-11 be amended to read:
35-4-11. If not fixed by ordinance, the governing board body of any municipality may, on
or before the first second of September in each year, by resolution, determine the number of on-sale and off-sale licenses that the board body will approve for the ensuing calendar year, and the
fees to be charged for the various classifications of licenses. The number of on-sale licenses
issued pursuant to subdivision 35-4-2(4) may not exceed three each for the first one thousand
of population or fraction thereof and may not exceed one each of such licenses for each
additional one thousand five hundred of population or fraction thereof. The number of licenses
allowable may not be less than the total number of licenses allowable or issued as of July 1,
1981, and that have never been revoked or not reissued. The municipal governing board body
shall at such meeting also establish the fee for on-sale licenses pursuant to subdivisions 35-4-2(4) and (13). The fee applies to all such on-sale licenses issued in the ensuing calendar year.
The quotas established in this section do not apply to licenses issued pursuant to subdivisions
35-4-2(12), (16), (17), and (17A).
Section 59. That § 35-4-11.1 be amended to read:
35-4-11.1. If not previously fixed by ordinance or continuing resolution, the board of county
commissioners shall, on or before the first second of September in each year, determine the
number of on-sale licenses it will approve for the ensuing calendar year and the fees to be
charged for the various classifications of licenses. The number of licenses issued pursuant to
subdivision 35-4-2(6) may not exceed three for the first one thousand of population and may not
exceed one for each additional fifteen hundred of population or fraction thereof, the. The
population to include includes only those residing within the county, but outside the
incorporated municipalities and improvement districts, created pursuant to chapter 7-25A,
within the county. However, any license issued in an improvement district prior to July 1, 2000,
shall be included when calculating the total number of licenses that may be issued by the county
where the improvement district is located. No licensee regularly licensed to do business on July
1, 1981, may be denied reissuance of a license in subsequent years solely by reason of any
limitations, based upon population quotas, of the number of licenses authorized or established
under the provisions of this title. Licenses issued to concessionaires, and lessees of the State of
South Dakota, within the boundaries of state parks, prior to January 1, 1983, may be subtracted
when calculating the total number of licenses permitted in this section. The quotas established
in this section do not apply to licenses issued pursuant to subdivisions 35-4-2(12), (16), (17),
(17A), and (19).
Section 60. That § 35-4-11.2 be amended to read:
35-4-11.2. Notwithstanding the provisions of § 35-4-11, each municipality may issue two
convention facility on-sale licenses pursuant to subdivision 35-4-2(13) for convention facilities
substantially constructed within the two years following issuance of such the license or
previously completed. If located in a first class municipality, the hotel-motel convention facility
shall be used and kept open for the hosting of large groups of guests for compensation and shall
have at least one hundred rooms which that are suitable lodging accommodations and
convention facilities with seating for at least four hundred persons. If located in a second or third
class municipality, the hotel-motel convention facility shall have at least forty rooms which that
are suitable lodging accommodations and convention facilities with seating for at least one
hundred fifty persons.
Section 61. That § 35-4-11.6 be repealed.
Section 62. That § 35-4-11.12 be amended to read:
35-4-11.12. A county may issue on-sale licenses pursuant to subdivision 35-4-2(6) to be
operated only within an improvement district, created pursuant to chapter 7-25A, within the
county. The number of licenses issued in the improvement district may not exceed three for the
first one thousand of population and may not exceed one for each additional fifteen hundred of
population or fraction thereof, including any licenses issued in the improvement district prior
to July 1, 2000.
Section 63. That § 35-4-13 be amended to read:
35-4-13. If by reason of, due to the annexation of territory by any municipal corporation
municipality or county, the premises of an on-sale licensee are transferred from one jurisdiction
to another, the licensee may continue to legally operate until the expiration of the license.
Thereafter After the expiration of the license, the licensee may apply for renewal of the license
to the governing board body that has jurisdiction of over the licensed premises. The license
application may not be denied on the grounds that, by the issuance of the license, more on-sale
licenses are in existence than is permitted by the limitations of this chapter.
Section 64. That § 35-4-13.1 be repealed.
Section 65. That § 35-4-19 be amended to read:
35-4-19. No retailer license under this chapter, except for licenses issued pursuant to
subdivisions 35-4-2(12), (16), (17), and (17A), other than to the municipality, may be granted
to operate in any municipality which has obtained a license under this chapter except that:
35-4-19.1. The provisions of §§ 35-4-110 to 35-4-120, inclusive, apply to any municipality
that enters into operating agreements pursuant to subdivision 35-4-19(2) § 35-4-19. Each
operating agreement holder is a license holder for the purposes of §§ 35-4-110 to 35-4-120,
inclusive, and when applying these provisions.
Section 67. That § 35-4-21 be amended to read:
35-4-21. An operating agreement under subdivision 35-4-19(2) § 35-4-19 shall include at
least the following provisions:
35-4-22. If a municipality has been issued an off-sale license only, the governing board body
may, by resolution, enter into an operating agreement with the manager of a legitimate operating
business concern for the specific purpose of operating the off-sale establishment for the
municipality.
Section 69. That § 35-4-22.1 be amended to read:
35-4-22.1. An off-sale licensee applying for license renewal, to the governing board which
body that has jurisdiction over the licensed premises, may not be denied the license on the
grounds that the location of the premise premises is outside the boundaries of a municipality or
an unincorporated platted area with a United States post office, if the licensee has held or had
an interest in an off-sale license at a location outside the boundaries of a municipality on an
unincorporated platted area with a United States post office for more than five years.
Section 70. That § 35-4-41 be amended to read:
35-4-41. The period covered by licenses under this chapter title is from twelve o'clock
midnight on the thirty-first day of December to twelve o'clock midnight on the thirty-first day
of the next December. However, the license is valid for an additional three days if a proper
application for a new license is in the possession of the secretary before midnight on the thirty-first day of December when the license expires. The full fee shall be charged for any license for
a portion of the period, except as provided in subdivision 35-4-2(1).
Section 71. That § 35-4-44 be repealed.
Section 72. That § 35-4-45 be amended to read:
35-4-45. Any bonded warehouse within South Dakota this state may, upon compliance with
the provisions of this section, receive alcoholic beverages for storage purposes. Before receiving
any such alcoholic beverages, the bonded warehouse shall furnish, in addition to any bond
previously furnished under the general laws law, a bond in the amount of ten thousand dollars
guaranteeing that the bonded warehouse, its officers, employees, and agents will comply with
all provisions of this chapter and chapter 35-5 title applicable to the bonded warehouse. The
bond shall be in a form prescribed by the secretary and shall be approved by and filed with the
secretary.
Section 73. That § 35-4-46 be repealed.
Section 74. That § 35-4-47 be amended to read:
35-4-47. Except as provided in §§ 35-2-9 and 35-10-16, distiller and a licensed wholesaler
licensees may only purchase or receive alcoholic beverages only from:
Section 76. That § 35-4-49 be amended to read:
35-4-49. A manufacturer licensed under subdivision 35-4-2(14) may only sell malt
beverages to a wholesaler licensed under subdivision 35-4-2(15), or to a licensed wholesaler
licensed under subdivision 35-4-2(2), or may sell such malt beverages for transportation in
interstate commerce outside the state. A wholesaler licensed under subdivision 35-4-2(15) may
sell such malt beverages to retailers licensed under this chapter. Each malt beverage wholesale
licensee for nonpasteurized products shall designate on the application, the territory within
which the licensee may sell the designated nonpasteurized products of any brewer for the
purpose of quality control, when such territory has been agreed to by the licensee and the
brewer.
Section 77. That § 35-4-50 be amended to read:
35-4-50. Licensed wholesalers A licensed wholesaler under this chapter may only sell
alcoholic beverages in this state only to wholesale to a manufacturer, wholesaler, and to retail
licensees licensee under this chapter and only such kinds of the alcoholic beverages as that the
respective licensees are licensee is authorized to purchase. However, wholesale licensees may
sell, ship, or transport such beverages to duly licensed wholesalers, distillers, and rectifiers
outside of this state.
Section 78. That § 35-4-52 be amended to read:
35-4-52. No distiller or wholesale licensee manufacturer or wholesaler may attempt to
promote the sale of liquor alcoholic beverages by tie-in sales arrangements or by any device
such as gifts or other concessions of financial value to a customer. The distiller or wholesale
licensee manufacturer or wholesaler may promote sales only on the basis of price competition,
salesmanship, reliability as a supplier, and other ordinary competitive business practices.
Section 79. That § 35-4-60 be amended to read:
35-4-60. Except as provided by § 35-4-61, in this title, a retail licensees licensee may only
buy or receive alcoholic beverages only from wholesale licensees a wholesaler licensed under
this chapter. Dispenser licensees may buy or receive alcohol only, and only from wholesale
licensees or from wholesalers outside the state.
Section 80. That § 35-4-60.2 be amended to read:
Section 81. That § 35-4-61 be repealed.
Section 82. That § 35-4-66 be amended to read:
35-4-66. Alcoholic beverages, except malt beverages, may be transported only:
35-4-67. Except as provided in subdivisions 35-4-66(1), (3), (4), (5), (6), and 7 (7), no
person other than a transporter may bring into the state alcoholic beverages into this state.
Section 84. That § 35-4-77.1 be amended to read:
35-4-77.1. Notwithstanding the provisions of § 35-4-75, the governing body of the
municipality charged with the approval of alcoholic beverage license issuance may, by
ordinance, permit the sale and consumption of alcoholic beverages on a sidewalk or walkway
subject to a public right-of-way abutting a licensed premises. The sidewalk or walkway subject
to a public right-of-way shall be immediately adjacent to and abutting the licensed premises.
This section does not apply to any federal-aid eligible highway unless approved in accordance
with the applicable requirements for the receipt of federal aid.
Section 85. That § 35-4-78 be amended to read:
35-4-78. No licensee may sell or serve any alcoholic beverage to any person who is
obviously intoxicated at the time. A violation of this section is a Class 1 misdemeanor.
Section 86. That § 35-4-79 be amended to read:
35-4-79. No on-sale or off-sale licensee may permit any person less than twenty-one years
old to loiter on the licensed premises or to sell, serve, dispense, or consume alcoholic beverages
on such the licensed premises. However, an on-sale licensee licensed pursuant to subdivision
35-4-2(4), (6), (11), (12), (13), (16), or (20) may permit persons eighteen years old or older to
sell and serve or dispense alcoholic beverages if less than fifty percent of the gross business
transacted by that establishment is from the sale of alcoholic beverages and the licensee or an
employee that is at least twenty-one years of age is on the premises when the alcoholic beverage
is sold or dispensed. For the purposes of this section, the term, to sell and serve alcoholic
beverages, means to take orders for alcoholic beverages and to deliver alcoholic beverages to
customers as a normal adjunct of waiting tables. The term does not include tending bar or
drawing or mixing alcoholic beverages.
Section 87. That § 35-4-79.1 be repealed.
Section 88. That chapter 35-4 be amended by adding a NEW SECTION to read:
Section 89. That § 35-4-79.2 be repealed.
Section 90. That § 35-4-81 be amended to read:
35-4-81. No on-sale or off-sale licensee, licensed under subdivisions 35-4-2(3), (4), (5), (6),
(9), (11), (13), or (18), may sell, serve, or allow to be consumed on the premises covered by the
license, alcoholic beverages between the hours of two a.m. and seven a.m. or on Sunday after
two a.m., on Memorial Day after two a.m., or at any time on Christmas Day. However, any Any
municipality or county may, by ordinance, allow prohibit or restrict the sale, service, and
consumption of alcoholic beverages on Sundays and, Christmas Day, or Memorial Day. A
violation of this section is a Class 2 misdemeanor.
Section 91. That § 35-4-81.2 be amended to read:
35-4-81.2. No on-sale or off-sale licensee licensed under subdivisions 35-4-2(12), (16), (17),
(17A), (19), and (20) may sell, serve, or allow to be consumed on the premises covered by the
license, any alcoholic beverages between the hours of two a.m. and seven a.m. A violation of
this section is a Class 2 misdemeanor.
Section 92. That § 35-4-85 be repealed.
Section 93. That § 35-4-94 be repealed.
Section 94. That § 35-4-95 be repealed.
Section 95. That § 35-4-96 be repealed.
Section 97. That § 35-4-98 be repealed.
Section 98. That § 35-4-101 be amended to read:
35-4-101. Any hotel or motel may operate minibars as defined in § 35-1-1 in any of its
rooms or units if the hotel or motel has an on-sale liquor license issued pursuant to subdivision
35-4-2(4), (6), or (13).
Section 99. That § 35-4-103 be amended to read:
35-4-103. Any municipality or county may impose on any person who is licensed pursuant
to subdivision 35-4-2(4), (6), (11), (12), (13), or (16) this chapter and who is issued a video
lottery establishment license pursuant to § 42-7A-41 an annual additional license fee for the
privilege of locating video lottery machines on the licensed premises. The fee may not exceed
fifty dollars for each video lottery machine. The fees imposed by this section are in addition to
fees imposed under §§ 35-4-2 and 42-7A-41 and shall be paid at the same time and in the same
manner as the fees paid in § 35-4-2. All fees received under this section shall be deposited into
the general fund of the municipality or county having jurisdiction over the licensee. However,
the municipality or county may not impose this additional fee on more than one license per
location.
Section 100. That § 35-4-106 be amended to read:
35-4-106. Any county or municipality operating a golf course may, by resolution, without
an election, but subject to referendum, make application for the issuance of an on-sale license,
including a malt beverage retailer's license, at such facility at the golf course.
Section 101. That § 35-4-117 be amended to read:
35-4-117. Any municipality or county adopting the ordinance pursuant to § 35-4-111 shall,
for a period of ten years following adoption of such ordinance, set the price of a new full-service
restaurant on-sale license, pursuant to § 35-4-116, at or above the current fair market value.
However, such the full-service restaurant on-sale license fee may not be less than the minimum
on-sale license fee as provided for in subdivision 35-4-2(4) or (6). For purposes of this section,
the term, current fair market value, means the documented price of the on-sale license most
recently sold between January 1, 2003, and January 1, 2008, through an arm's-length transaction,
less the value of any real or personal property included in the transaction. Each on-sale license
holder as of January 1, 2008, who acquired the on-sale license within the last five years shall
report to the municipality or county the date and price paid for its on-sale license. If there are
no documented sales of on-sale licenses between January 1, 2003, and January 1, 2008, the
municipality or county may request from any on-sale license holder within the municipality or
county, the date and price originally paid for its on-sale license to determine the current fair
market value.
Section 102. That § 35-4-120 be amended to read:
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, within the last five
years 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 the other 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, as of the date of the
adoption of the ordinance 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.
Section 103. That § 35-4-121 be repealed.
Section 104. That § 35-4-122 be repealed.
Section 105. That § 35-4-123 be amended to read:
35-4-123. Any county operating a county fairgrounds may, by resolution, without an
election, but subject to referendum, issue one on-sale license, including a malt beverage
retailer's license, at the county fairgrounds to an applicant who is authorized by the county to
operate as the leaseholder at the county fairgrounds. The selling, serving, or dispensing of any
alcoholic beverage at the county fairgrounds may not occur more than one hour before the
commencement of any event at the county fairgrounds or at any time after the event is
concluded. A license issued pursuant to this section may not be transferred. The license shall
be issued without regard to the population limitations established pursuant to §§ 35-4-11 and
35-4-11.1.
Section 106. That § 35-4-124 be amended to read:
35-4-124. Any municipality or county may issue:
the special events license applicant;
Section 107. That § 35-4-124.1 be amended to read:
35-4-124.1. A civic, charitable, educational, fraternal, or veterans organization holding a
special events license pursuant to subdivision 35-4-124(5) may accept only sell wine that has
been donated wine from by members of the public to be sold at the special event. A civic,
charitable, educational, fraternal, or veterans organization holding a special events license
pursuant to subdivision 35-4-124(6) may accept donated only sell malt beverages from that have
been donated by members of the public to be sold at the special event. A civic, charitable,
educational, fraternal, or veterans organization holding a special events license pursuant to
subdivision 35-4-124(7) may accept donated only sell alcoholic beverages from that have been
donated by members of the public to be sold at the special event.
Section 108. That § 35-4-127 be amended to read:
35-4-127. A licensee licensed pursuant to subdivisions subdivision 35-4-2(3) or (5) may
apply for an off-sale delivery license as provided by subdivision 35-4-2(23) to deliver alcohol
alcoholic beverages to a consumer within the boundaries of the municipality that issued the off-sale license. The alcohol alcoholic beverage for delivery shall be purchased in person and on-site at the licensee's off-sale premises. The minimum purchase of alcohol alcoholic beverages
shall be one hundred fifty dollars. The delivery shall be made during hours of operation pursuant
to § 35-4-81 § 35-4-81.2 by an employee of the licensee who is at least twenty-one years old.
The employee shall obtain the signature of a person twenty-one years of age old or older prior
to before delivery of the shipment. The employee shall request that the person signing for the
delivery display a valid age-bearing photo identification document issued by this state, another
state, or the federal government verifying that the person is twenty-one years of age old or older.
Documentation verifying the identification of the person signing for the delivery shall be
retained by the licensee for one year.
Section 109. That § 37-10A-1 be amended to read:
37-10A-1. An No alcoholic beverage may not be sold below the wholesale cost of the
alcoholic beverage, unless the sale constitutes the termination of the sale of the alcoholic
beverage on the licensed premises. Any alcoholic beverage offered for sale at less than
wholesale cost may not be offered again for sale on the licensed premises for a period of less
than one year after termination of the sale of the product on the licensed premises. Wholesale
The wholesale cost is the consideration paid by a retailer to a wholesaler to acquire an alcoholic
beverage and includes the purchase price and freight charges. If no wholesaler is used in the
sale, the direct shipper may not sell the alcoholic beverage below the manufacturer's cost.
Section 110. The Code Counsel shall transfer § 37-10A-1 to chapter 35-4.
Section 111. That § 35-5-1 be amended to read:
35-5-1. The provisions of this chapter shall be construed to relate apply to all alcoholic
beverages.
Section 112. That § 35-5-2 be amended to read:
35-5-2. There is hereby levied on manufacturers, and wholesalers of alcoholic beverages an
occupational tax computed on all alcoholic beverages purchased, received or imported from a
distiller, manufacturer, or foreign wholesaler for sale to a retail dealer an alcohol excise tax on
all alcoholic beverages manufactured, purchased, received, or imported in this state. A
manufacturer shall pay the alcohol excise tax on all alcoholic beverages manufactured and sold
directly to a retailer or consumer. A wholesaler shall pay the alcohol excise tax on all alcoholic
beverages purchased, received, or imported for sale to a retailer.
Section 113. That § 35-5-3 be amended to read:
35-5-3. The occupational alcohol excise tax based on the quantities of different kinds of
alcoholic beverages is:
Section 114. That § 35-5-3.3 be amended to read:
35-5-3.3. A malt beverage manufacturer who possesses an on-sale license authorized
pursuant to § 35-5-3.2 may be issued a malt beverage package dealer's license issued pursuant
to subdivision 35-4-2(17) 35-4-2(16) for such the premises where the malt beverage is
manufactured, limited to the sale of malt beverages the manufacturer manufactures. The
manufacturer shall pay the tax imposed under subdivision 35-5-3(1) on all malt beverages so
sold.
Section 115. That § 35-5-4 be repealed.
35-5-6. The following alcoholic beverages sold by licensees are hereby excepted exempt
from the tax taxes levied by § 35-5-2 this chapter:
35-5-6.1. In addition to the alcohol excise tax imposed by § 35-5-3, a tax of two percent of
the purchase price is imposed upon the purchases of alcoholic beverages, except malt beverages,
by a wholesaler from a distiller, manufacturer, or supplier. The tax shall be paid monthly and
shall be administered and collected in the same manner as provided in this chapter for the
collection of the occupational alcohol excise tax. A licensee shall indicate the total dollar
amount of purchases received during the reporting period. Funds collected from the tax imposed
by this section shall be deposited in the state general fund.
Section 118. That § 35-5-7 be amended to read:
35-5-7. Any licensee liable for the payment of the occupational tax taxes levied under this
chapter may be required by the secretary to file with the secretary a bond or bonds, in an amount
and form prescribed by the secretary, with corporate surety satisfactory to the secretary. The
amount of the bond may not exceed fifty thousand dollars, and the secretary may require the
increase or permit the decrease of the amount of the bond to a sum that the secretary deems
determines is necessary to assure payment of the tax. The bond or bonds shall run to the state
and shall be conditioned on the payment of all taxes levied by under this chapter on or before
the due date of payment, and on the payment of all fines and penalties lawfully imposed by
reason of failure to pay any such taxes levied under this chapter on the date payment is due. In
lieu of a bond, the secretary may allow the licensee to furnish the amount of the bond in cash
or negotiable securities approved by the secretary.
Section 119. That § 35-5-10 be amended to read:
35-5-10. Licensees Each licensee liable for the payment of the occupational tax taxes levied
by under this chapter shall file with the secretary a return, on such a form as prescribed by the
secretary may require, showing the kind and quantity of alcoholic beverages produced, received,
and on hand, together with the names of the persons from whom received, the amount of tax
due, and such any other information as prescribed by the secretary shall by regulation prescribe.
Said. The return, covering the period of one calendar month, together with payment of the tax
due, shall be transmitted to the department on or before the twenty-fifth day of the second month
following the close of the reporting period. A violation of this section is a Class 1 misdemeanor.
35-5-19. Any person required to file returns or reports under this chapter, who fails to file
a return or report within the month following the month the return or report is or pay the tax
when due is subject to an additional tax, assessed as a penalty, equal to ten percent of the tax
or ten dollars, whichever is greater interest and penalty at the rates set forth in § 10-59-6.
However, for a reasonable cause shown, the secretary may reduce or eliminate such the penalty.
If the tax imposed by this chapter is not paid on the due date, the amount of the tax shall bear
the interest at the Category D rate of interest as established in § 54-3-16 from the date of
delinquency until paid. If any licensee files a false or fraudulent return, there shall be added to
the tax an amount equal to the tax evaded, or attempted to be evaded, shall be added to the tax.
Penalty and interest are considered the same as tax for the purposes of collection and
enforcement including liens, distress warrants, and criminal violations. Any payment received
for taxes, penalty, or interest is applied first to tax, beginning with the oldest delinquency, then
to interest and then to penalty. No court of this state may enjoin the collection of any such the
tax or civil penalty.
Section 121. That § 35-5-20 be amended to read:
35-5-20. Any licensee liable for the payment of the occupational tax taxes shall keep, in
current and available form on the licensed premises, records of all purchases, sales, quantities
on hand, and such any other information as the secretary may prescribe by rule promulgated
pursuant to chapter 1-26. The secretary may require, from any licensee, any reports the secretary
prescribes, and the secretary may require the production of any book, record, document, invoice,
and voucher kept, maintained, received, or issued by the licensee in connection with the
licensee's business that, in the judgment of the secretary, may be necessary to administer and
discharge the secretary's duties, to secure the maximum of revenue to be paid, and to carry out
the provisions of law. A violation of this section is a Class 1 misdemeanor.
Section 122. That § 35-5-20.1 be amended to read:
35-5-20.1. Any person outside the state who sells or ships alcoholic beverages to a distiller,
manufacturer, or wholesaler, solicitor, or dispenser within this state shall forthwith forward to
provide the secretary such a report as the secretary shall may require, giving the name and
address of the licensee or person making the purchase, the quantity and kind of alcoholic
beverages sold, the manner of delivery and such any other information as prescribed in rule by
the secretary by rule requires. A violation of this section is a Class 1 misdemeanor.
Section 123. That § 35-5-20.2 be repealed.
Section 124. That § 35-5-22 be amended to read:
35-5-22. Twenty-five percent of all of the revenues deposited in the alcoholic beverage fund
shall revert to the municipalities. Each municipality's share of the fund shall be determined by
the ratio of the population of each municipality to the total population of all the municipalities
sharing in the receipts. The Department of Revenue department shall make the reversion by
remitting not later than November first, February first, May first, and August first, of each year
to the finance officer of each municipality its share of the fund. The amount received by each
municipality shall be deposited in the municipality's general fund.
Section 125. That § 35-5-22.1 be amended to read:
35-5-22.1. For the purposes of § 35-5-22, municipalities include:
35-5-22.2. Twenty-five percent of all of the revenues deposited in the alcoholic beverage
fund shall revert to the counties. Twenty-five percent of such the alcoholic beverage fund so
distributed to counties shall be divided equally by all counties. The remaining seventy-five
percent shall be allocated to counties by the ratio of the population of each county to the total
population of all the counties sharing in the receipts. The Department of Revenue department
shall make the reversion by remitting not later than November first, February first, May first,
and August first, of each year to the county auditor of each county its share of the fund. The
amount received by each county pursuant to this section and § 35-5-25 shall be deposited in the
county's general fund to be dedicated to expenses related to county law enforcement, jails, state's
attorneys, public defenders, and court-appointed attorneys.
Section 127. That § 35-5-28 be amended to read:
35-5-28. After determination is made of the the amount of funds necessary reserve to
provide for the reversions to municipalities and counties in §§ 35-5-22 and 35-5-22.2 is
determined, the balances remaining funds may be transferred to the general fund.
Section 128. That § 35-10-1 be amended to read:
35-10-1. The secretary may promulgate rules, pursuant to chapter 1-26, concerning regarding
the following matters involving the sale, purchase, distribution, and licensing of alcoholic
beverages under this title:
Section 130. That § 35-10-6 be repealed.
Section 131. That § 35-10-9 be amended to read:
35-10-21. If, in an action pursuant to § 35-10-19, it is made to appear by affidavits or
otherwise, to the satisfaction of the court, or judge in vacation, that such a nuisance exists, a
temporary writ of injunction shall forthwith issue be issued, restraining the defendant from
conducting or permitting the continuance of such the nuisance until the conclusion of the trial.
If a temporary injunction is prayed for sought, the court may issue an order restraining the
defendant and all other persons from removing, or in any way interfering, with the alcoholic
beverages or fixtures, or other things used in connection with the violation of the laws of the
State of South Dakota this state constituting such the nuisance.
Section 133. That § 35-12B-13 be amended to read:
35-12B-13. A direct shipper shall pay the alcoholic beverage occupational taxes alcohol
excise tax as prescribed pursuant to § 35-5-2, according to the rates established in subdivisions
35-5-3(2), (3), and (4). Notwithstanding the filing and payment requirements prescribed in
chapter 35-5, a direct shipper shall include on the report required by § 35-12B-11 the gallons
of wine shipped to recipients in this state in each wine category as set forth in subdivisions 35-5-3(2), (3), and (4), and calculate the tax due for each wine category.