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Licensed Beverage Dealers of South Dakota
PO Box 974
Pierre, SD 57501
605.224.1817 voice
605.945.2269 fax
800-721-1789 free
info@sdliquor.com

 

Diamond Sponsors

Johnson Brothers

Republic National Distributing

Platinum Sponsors

IGT

Gold Sponsors

Spielo

Summit Amusement

Cash-Wa Distributing Co.

McCormick Distributing

Silver Sponsors

Reynolds America

Reinhert Food Service

Cutshaw Business Services

Bronze Sponsors

RAS

Copper Sponsors

West River Beverage

 

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ABL

Interim Study Committee Legislation

 

To:          Licensed Beverage Dealers of SD

From:      Tim Dougherty

Date:        April 6, 2010

________________________________________________

 

The legislature adjourned sine die on Tuesday, March 30, 2010, after a late night debate over the general appropriations bill. The Legislature waited until the last day of the session to complete and pass the appropriations bill because it wanted to see whether Congress would pass legislation to provide additional federal matching funds to the states for Medicaid programs. If Congress had approved the additional funding for Medicaid, South Dakota would have received more than $30 million.

 

The appropriation bill passed both houses along party lines after republican legislators reached an agreement with the governor on spending cuts instead of using reserve funds to fill a $43 million hole in the state’s $1.2 billion budget. At the beginning of session, Rounds proposed spending about $32 million in reserve funds to balance the budget. Republican and democrat legislators, on the other hand, vowed to balance the budget without using reserves. They wanted to save the reserves so that the funds would be available next year when the budget deficit is projected to be almost $107 million. Their budget proposal included a two percent across-the-board cut in state government spending. Rounds objected to across-the-board cuts and insisted that legislators identify cuts to specific programs.

 

After several hours of negotiations, republican legislative leaders reached a budget agreement with the governor which did not require dipping into reserve funds or making across-the-board cuts. Their agreement included about $19 million in specific cuts and revised revenue forecasts, and additional $14.5 million in new revenues by decreasing the sales tax refunds for large construction projects. Among the biggest cuts were $4.2 million from the Board of Regents’ budget, 1.3 million from the Department of Education’s budget and $1.5 from the tobacco prevention and cessation program. Democrat voted against the budget plan because they objected to the cuts in education spending.

 

If Congress eventually provides additional federal matching funds to the states for Medicaid programs, Rounds said he may call a special session of the Legislature to reverse some of the spending cuts.
 

During the final two days of session, the legislature also overrode three of the governor’s vetoes and sustained three. 

 

Below is a brief summary of the bills that were of interest to LBDSD which passed both houses of the legislature and were signed by the governor. Unless otherwise noted, the bills become effective July 1, 2010.

 

HB 1001 - An Act to allow municipalities and counties to issue certain special alcoholic beverage licenses and to repeal certain special alcoholic beverage licenses. This bill revises the statutes that allow local governments to issue temporary alcoholic beverage licenses for special events. It would allow a municipality or county to issue a special malt beverage, wine or liquor license in conjunction with a special event. The special license may only be issued to a nonprofit organization or a licensee who holds a similar license. For example, a person who holds a beer license may apply for a special events malt beverage license but not a special events liquor license. The special events license may not be issued for a period longer than fifteen consecutive days.

 

HB 1002 - An Act to revise certain provisions regarding the days and hours that alcoholic beverages may be sold on a licensed premise and who may sell, serve, or dispense alcohol on a licensed premise. This bill allows all on-sale and off-sale licensees to sell alcoholic beverages between the hours of 7:00 a.m. and 2:00 p.m., and it provides that any municipality or county may, by ordinance, allow the sale of alcoholic beverages on Sundays and Memorial Day. The bill also provides that if alcoholic beverage sales constitute less than fifty percent of the gross business transacted by the establishment, the licensee may permit persons eighteen years old or older to sell, serve, or dispense alcoholic beverages.

 

HB 1069 - An Act to revise certain provisions relating to the transportation of alcoholic beverages and to authorize transportation by religious organizations under certain circumstances. This bill allows established religious organizations to transport alcoholic beverages for sacramental use only.

 

HB 1180 - An Act to provide for the issuance of an on-sale license and malt beverage license for the county fairgrounds and to authorize municipalities and counties to issue an additional on-sale license. This bill allows a municipality or county to issue an on-sale license to be operated at a county fairgrounds. The license shall be issued without regard to the population quota on licenses. 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.

 

SB 2 - An Act to revise certain provisions regarding alcoholic beverage control and licensing laws. This bill simply makes form and style changes to certain sections of Title 35. Most of the changes are non-substantive.

 

SB 4 - An Act to revise certain rule-making authority regarding the sale of certain alcoholic beverage container sizes to on-sale licensees. This bill prohibits the department of revenue from placing any restrictions upon the distribution of 1.75 liter containers to any on-sale licensee.

 

SB 136 - An Act to allow municipalities to maintain the same number of on-sale alcoholic beverage licenses when certain on-sale alcoholic beverage licenses are not reissued. This bill allows a municipal owned on-sale license that was not reissued by the municipality because it had not been actively used for two years to be issued to a new on-sale licensee  even though the issuance of the license would cause the municipality to exceed its maximum number of allowable licenses.

 

SB 186 - An Act to change the unemployment insurance wage base and contribution rates

and to declare an emergency. This bill will reduce the Unemployment Insurance surcharge amount for 2010 and 2011, increase the wage base and create a new tax-rate table with higher rates for employers with negative account balances. Under current law, employers will pay a 1.5 percent surcharge rate on base wages, with a maximum payment of $142.50 per employee this year and $150 per employee in both 2010 and 2011. SB186 will cap the surcharge rate at one percent, or $100 maximum per employee in 2010, and 0.75 percent, or $82.50 per employee in 2011. SB186 will also increase the wage base by $1,000 per year through 2015. South Dakota’s current $10,000 wage base is one of the lowest in the region. The legislation also ends the current tax-rate table, as of 2009.  The new table will increase the maximum tax rate from 8.5 percent to 9.5 percent, with higher rates for employers with negative account balances.  In addition, employers will need higher balances in their unemployment accounts for the various tax rates. The zero percent tax rate will still remain available to employers. To receive a zero percent tax rate under the bill, employers must have $675 per worker in their accounts in 2010. Currently, that amount is set at $432. The proposed changes are projected to provide $74.4 million for the UI Trust Fund, bringing the balance to $1.8 million at the end of 2010.

SB 186 passed the Senate and the House.

 

SB 188 - An Act to revise certain provisions relating to the sale and display of alcoholic beverages in certain establishments. This bill changes the law so that an off-sale licensee that derives less than 50 percent of its gross receipts from the sale of alcoholic beverages (e.g., grocery store) is required to display its liquor in one area that is separated by a physical barrier from the rest of the establishment but is not required to sell its liquor in the separated area. Under current law, the licensee must display and sell its liquor in the separated area.

 

Last Update 6/18/10
 
 
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