Alcoholic beverage specialty license established.
Terms used in this Act mean:
An artisan distiller shall maintain records of all sales and shipments. The artisan
distiller shall provide to the department monthly reports regarding quantities and prices of distilled
spirits shipped and other information that the department determines to be necessary.
Except as provided in this Act, all provisions of Title 35 apply to the production,
sale, possession, and consumption of distilled spirits produced by an artisan distiller.
There is hereby levied on all distilled spirits produced by an artisan distillery an
excise tax imposed at the same rates and collected and administered in the same manner as the tax
imposed on distilled spirits in chapter 35-5.
At least thirty percent of the raw materials, other than water, used by an artisan
distiller to produce distilled spirits shall consist of agricultural products grown in South Dakota.
If the products are not available in quantities sufficient to constitute the required thirty percent, the
holder of the artisan distillery license may file an affidavit with the department stating this fact and
requesting that the department approve the use of imported products by the artisan distillery. If the
department approves, the artisan distillery may use imported products and shall continue to be
governed by this Act. The department's approval is effective for one year, after which time it shall
again be required that at least thirty percent of the raw materials used consist of agricultural
products grown in South Dakota, unless the artisan distiller files a new affidavit and request and
the department approves the request.
For purposes of producing distilled spirits an artisan distiller may purchase or
receive alcoholic beverages in accordance with
A license issued pursuant to section 2 of this Act authorizes the sale on the distillery
premises of distilled spirits produced by the artisan distillery at on-sale or off-sale, in total
quantities not in excess of fifty thousand gallons in a calendar year and the dispensing of free
samples of distilled spirits offered for sale. Except as provided in this Act, such sales shall comply
with the provisions of Title 35.
The holder of an artisan distiller license may also hold on the premises where the
distilled spirit is produced an on-sale license issued pursuant to subdivision 35-4-2(4) or (6) and
subject to the quota established in
35-4-11 or 35-4-11.1.
The holder of an artisan distiller license shall register labels for each type or brand
produced with the department in the same manner and at the same manner as prescribed for
distilled spirits 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.
That subdivision (19) of
be amended to read as follows:
An artisan distiller may sell distilled spirits to a farm winery if the distilled spirits
were produced from products provided to the artisan distiller by the farm winery.