CHAPTER 205

(HB 1210)

Municipal operation of on-sale or off-sale licenses revised.

         ENTITLED, An Act to  revise certain provisions concerning municipal operating agreements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 35-4-19 be amended to read as follows:

     35-4-19.   No retailer license under this chapter, except for licenses issued pursuant to subdivisions 35-4-2(16) and (17), other than to the municipality, may be granted to operate in any municipality which has obtained a license under this chapter except that:

             (1)      If a municipality has been issued an off-sale license only, then the governing board may approve or disapprove applications for on-sale licenses as may be provided in this code. Title 35; and

             (2)      If a municipality has been issued an on-sale and off-sale license, then the governing board may by resolution , enter into an operating agreement with any person who is not the holder of any license under this title for the specific purpose of operating the on-sale establishment , or the off-sale establishment, or both for the municipality.

     Signed February 20, 2007

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