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The following is a
list of bills affecting licensed beverage dealers
and the status of each bill as of the date of this
report. The last day for a bill to pass the house
of origin was February 13. The last day for a bill
to pass both houses is February 26.
TAXATION
SB 61 - An act to
increase the tax on alcoholic beverages, to
dedicate the revenue from such tax increase, to
create the South Dakota Teen Court Commission, and
to create the South Dakota Commission on Equal
Access to Our Courts.
This
bill increases the state excise tax on malt
beverages from $0.27 per gallon to $1.33 per
gallon (387% increase); on wine from an average
$0.99 per gallon to $3.55 per gallon (258%
increase); and on spirits from $3.93 per gallon to
$12.47 per gallon (217% increase). It distributes
the increased alcoholic beverage tax revenues as
follows: 62 percent to the counties; 15 percent to
the municipalities; 7 percent to the
Department of Social Services to defray costs
incurred by the state in monitoring the 24/7
sobriety program and abuse and neglect cases where
alcohol abuse was present in the home; Six percent
to the 24/7 sobriety fund established pursuant to
§ 1-11-18, and the balance, if any, to the
attorney general for law enforcement training
programs; 5 percent to the teen court program; 2
percent to the South Dakota Division of Drug and
Alcohol Abuse; and 3 percent to nonprofit
corporations funded through the Legal Services
Corporation to provide legal assistance to
eligible poor persons.
1/9
Introduced in Senate; referred to State Affairs
Committee.
1/16 Tabled
in State Affairs Committee.
LICENSING &
REGULATION
HB 1007 - An act to
make form and style revisions to certain taxation
and revenue statutes.
This
bill, which was introduced at the request of the
Department of Revenue Agency Review Committee,
makes several form and style changes, but no
substantive changes, to the alcoholic beverage
licensing and taxation statutes.
1/8 Introduced in House; referred to
Taxation Committee.
1/15 Passed Taxation Committee
1/16 Passed House
1/17
Introduced in Senate; referred to Taxation
Committee.
2/28 Passed Taxation Committee.
2/29 Passed Senate.
2/6 Signed by Governor.
HB 1114 - An act to
revise certain provisions concerning the
definition and operation of farm wineries.
This
bill eliminates the requirement that a farm winery
be operated by the owner of a South Dakota farm.
It also increases the quantity of wine that may be
sold by a farm winery from 50,000 to 150,000
gallons per year.
1/10 Introduced in House; referred to
Commerce Committee.
1/23 Passed Commerce Committee.
1/28 Passed House.
1/29 Introduced in Senate; referred to
Commerce Committee.
2/5 Passed Commerce Committee.
2/6 Passed Senate.
2/14 Signed by Governor.
HB 1118 - An act to
authorize the issuance of special off-sale package
wine dealers licenses.
This
bill allows a municipality or county to issue a
special off-sale package wine dealers license to
any fair board or any public, civic, charitable,
educational, or fraternal organization in
conjunction with a special event within the
municipality or within the county. Educational
does not include any elementary, secondary, or
higher educational institution in the public
school system of this state. The licensee may only
sell wine manufactured by a farm winery for period
of time not exceeding fifteen consecutive days.
The fee for the license may not exceed $50 per
day.
1/1 Introduced in House; referred to
Commerce Committee.
1/23 Passed Commerce Committee.
1/28 Passed House.
1/29 Introduced in Senate; referred to
Commerce Committee.
2/5 Passed Commerce Committee.
2/6 Passed Senate.
2/14 Signed by Governor.
HB 1126 - An act to
revise certain provisions regarding the issuance
of on-sale wine licenses and the sale of wine.
This
bill eliminates the requirement that a wine
license may only be issued to the owner or
operator of a restaurant or a motel-hotel
facility.
1/14 Introduced in House; referred to
Commerce Committee.
1/26 Passed Commerce Committee.
1/28 Passed House.
1/29 Introduced in Senate; referred to
Commerce Committee.
2/5 Passed Commerce Committee.
2/6 Passed Senate.
2/14 Signed by Governor.
HB 1142 - An act to
authorize additional off-sale retail liquor
licenses in certain municipalities.
As
amended, this bill allows any person, corporation,
or business entity to hold or have an interest in
additional off-sale licenses in a first class
municipality if the licensee derives more than
fifty percent of the licensee's gross receipts
from the sale of food at the location where the
license is held. Under current law, a person may
only have an interest in three off-sale licenses.
The amended bill also requires any such new
licensee to sell its alcoholic beverages, other
than malt beverages, in an area which is separated
by a physical barrier from the rest of the
establishment.
1/15 Introduced in House; referred to
Commerce Committee.
1/28 Amended in Commerce Committee.
2/6 Passed Commerce Committee.
2/12 Passed House.
2/13 Introduced in Senate; referred to State
Affairs Committee.
2/15 Passed State Affairs Committee.
2/19 Passed the Senate.
HB 1151 - An act to
regulate the location and hours of operation of
adult oriented businesses.
This
bill prohibits an adult oriented business
from being located within one-fourth mile of a
child welfare agency, a private or public school,
a public playground, a public recreational
facility, a residence, or a place of worship. It
also prohibits an adult arcade, adult bookstore or
video store, adult cabaret, adult motion picture
theater, adult theater, escort agency, or nude
model studio from remaining open at any time
between the hours of 1:00 a.m. and 8:00 a.m. on
Monday through Saturday and between the hours of
1:00 a.m. and 12:00 noon on Sunday.
1/15 Introduced in House; referred to Local
Government Committee.
2/12 Passed Local Government Committee with
amendment.
2/14 Passed House
2/15 Introduced in Senate; referred to Local
Government Committee.
2/20 Passed Local Government Committee.
2/21 Passed Senate.
HB 1177 - An act to
create the beverage container recycling and
redemption program.
Beginning July 1, 2009, this bill requires any
manufacturer selling beverages to a dealer or
distributor or directly to a consumer in this
state for consumption in this state to: (a) remit
to the department a beverage container litter
reduction fee of five cents per beverage container
and a handling fee of one and one half cents per
beverage container; and (b) clearly label all
beverage containers with the words "South Dakota"
or "SD" and with the return value of five cents in
clearly visible type on the beverage container by
embossing or imprinting or by using a stamp on the
normal product label.
1/16 Introduced in House; referred to
Commerce Committee.
2/4 Tabled in Commerce Committee.
HB 1203 - An act to
provide for the sale or consumption of alcoholic
beverages upon property adjoining licensed
premises.
As
amended, this bill allows a municipality to permit
the sale and consumption of alcoholic beverages on
a sidewalk or walkway subject to a public right-
of-way abutting a licensed premises, provided that
the license holder derives more than fifty percent
of its gross receipts from the sale of prepared
food for consumption on the licensed premises. The
sidewalk or walkway subject to a public
right-of-way shall be immediately adjacent to and
abutting the licensed premises. The bill
does not apply to any federal-aid eligible highway
unless approved in accordance with the applicable
requirements for the receipt of federal aid. The
city may impose additional conditions or
restrictions that it deems appropriate.
The hours of
authorized consumption in the adjacent property
shall be consistent with the hours permitted for
the on-sale license.
1/16 Introduced in House; referred to
Commerce Committee.
1/28 Passed Commerce Committee.
2/4 House passed with amendment.
2/5 Introduced in Senate; referred to
Commerce Committee.
2/12 Passed Commerce Committee with
amendment.
2/14 Passed Senate.
HB 1210 - An act to
prohibit recyclers, scrap metal dealers, or scrap
yard operators from purchasing certain beer kegs.
This
bill prohibits recyclers, scrap metal dealers and
scrap yard operators from purchasing any metal
beer keg, whether damaged or undamaged, except
from the brewer or its authorized representative,
if: (a) the keg is clearly marked as the property
of a brewery manufacturer; or (b) the keg's
identification markings have been made illegible.
1/16 Introduced in House; referred to
Commerce Committee.
2/4 Passed Commerce Committee with
amendment.
2/7 Passed House.
2/11 Introduced in House; referred to
Commerce Committee.
2/14 Passed Commerce Committee.
SB 98 - An act to
regulate establishments in the business of
providing obscene material.
This
bill prohibits an establishment from selling,
distributing, or using obscene material or
providing obscene material without obtaining a
license from the county in which the establishment
is located. It also prohibits the licensed
establishment from (a) operating in any area that
lies within one thousand feet from the facilities
and grounds of any school, church, child welfare
agency, public park, public playground, or public
pool, including the facilities and grounds itself;
(b) being closer than two hundred fifty feet from
any street; (c) operating between the hours of
twelve midnight and eight a.m. of the following
day or on Sunday.
1/15 Introduced in Senate; referred to Local
Government Committee.
1/28 Tabled in Local Government Committee.
HB 126 - An act to
allow municipalities and counties to issue
additional on-sale alcoholic beverage licenses to
certain existing on-sale license holders.
As
amended, this bill allows a municipality or county
to issue additional on-sale liquor licenses that
are not subject to the population quotas. The
license may only be issued to a restaurant that
derives no more 50 percent of its gross revenue
from the sale of alcohol and that does not allow
smoking on the premises. All licensees must report
to city or county under oath the amount originally
paid for their licenses. If the transaction for
the purchase of the license included real or
personal property, the full fair market value of
the property on the date of the original sale must
be deducted from the total transaction price to
determine the amount paid by the licensee. The
municipality or county must set the price for a
new non-quota license at or above the current fair
market value. The current fair market value is the
documented price of a liquor license most recently
sold prior to January 1, 2008, through an arms
length transaction, less the value of any real or
personal property included in the transaction.
Each license holder as of January 1, 2008 must
report to the municipality or county the date and
price paid for its liquor license. The
municipality or county must maintain a registry of
each liquor license that is being offered for sale
and furnish a copy of the registry to anyone who
requests a new liquor license. The municipality or
county may only issue a new license if no liquor
license is on the registry or a person desiring to
purchase a license listed on the registry provides
documentation showing that the person is unable to
purchase the license on terms satisfactory to both
the potential buyer and seller. The price of any
liquor license registered as, for sale, with the
municipality or county shall be sold at the
current price set by the municipality or county.
1/16 Introduced in House; referred to State
Affairs Committee.
1/23 Passed State Affairs Committee.
1/24 Failed to pass Senate.
1/25 Motion to reconsider passed Senate.
1/30 Amended in Senate; re-referred to State
Affairs Committee.
2/4 Passed State Affairs with amendment.
2/6 Passed Senate.
2/7 Introduced in House; referred to
Commerce Committee.
2/22 Passed Commerce Committee with
amendment.
HB 1265 - An act to
prohibit the sale, purchase, use, or possession of
alcohol without liquid devices.
This
bill prohibits a person from selling, offering to
sell, purchasing, possessing, or using an alcohol
without liquid device. The term, alcohol without
liquid device, means an apparatus that is
advertised, designed, or used to vaporize an
alcoholic beverage to produce a vapor that may be
inhaled by an individual. The term does not
include an inhaler, nebulizer, atomizer, or other
device that is designed and intended specifically
for medical purposes to dispense prescribed or
over-the-counter medications or water.
1/23 Introduced in House; referred to
Commerce Committee.
2/24 Passed Commerce Committee.
2/11 Passed House.
2/12 Introduced in Senate; referred to
Commerce Committee.
2/19 Tabled in Commerce Committee.
HB 1269 - An act to
allow a beer and wine combination license.
This
bill creates a combination malt beverage and farm
winery package dealers license and establishes the
license fee at one hundred seventy-five dollars.
1/23 Introduced in House; referred to
Commerce Committee.
2/6 Passed Commerce Committee.
2/12 Passed House.
2/13 Introduced in Senate; referred to
Commerce Committee.
2/19 Tabled in Commerce Committee.
2/20 Passed Senate.
HB 1281 - An act to
permit municipalities and counties to assess
surcharges against intoxicated persons responsible
for certain expenditures of local resources.
This
bill allows a municipality or county to assess a
uniform surcharge, not to exceed two hundred fifty
dollars, whenever municipal law enforcement, fire
protection, or emergency medical services respond
to an incident the proximate cause of which is the
alcoholic intoxication of one or more persons.
Each such person may be assessed the surcharge
individually. Proceeds from the surcharge will be
deposited in the municipal general fund to defray
the costs of the municipality.
1/23 Introduced in House; referred to
Commerce Committee.
2/12 Tabled in Commerce Committee.
HB 1283 - An act to
revise on-sale alcoholic beverage licenses in
municipalities.
As
amended, this bill sets the maximum fee that
second and third class municipalities may charge
for an on-sale liquor license at $30,000.
1/23 Introduced in House; referred to
Commerce Committee.
2/6 Passed Commerce Committee with
amendment.
2/13 Passed House with amendment.
2/14 Introduced in Senate; referred to State
Affairs Committee.
2/22 Passed State Affairs with amendment.
HB 1294 - An act
authorize a class of full-service restaurant
on-sale licenses to be issued by first class
municipalities.
As
amended, this bill allows a first class
municipality to issue a new class of liquor
license for full service restaurants. The number
of restaurant licenses issued by the municipality
cannot exceed ten percent of the total number of
existing quota licenses or three, whichever is
greater. To qualify for a license, the restaurant
must derive seventy percent or more of its revenue
from the sale of prepared food and nonalcoholic
beverages. The restaurant may only be advertised
as primarily a food eating establishment. The
restaurant may only serve alcohol in the bar and
dining room areas. The restaurant may only serve
alcohol between the hours of 11:00 am and 11:00
pm. The restaurant may not have video lottery
machines or smoking on the premises. The
restaurant license may not be transferred to
another location. The fee for the restaurant
license is a minimum of $200,000 in municipalities
with a population of 60,000 or more; $100,000 in
municipalities with a population between 20,000
and 60,000; and $75,000 in municipalities with a
population between 20,000 and $5,000. The bill
also prohibits a licensed premise operating with a
quota license from obtaining a restaurant license
prior to July 1, 2020. It also prohibits any
on-sale license annexed into a municipality from
being transferred for a period of three years
after the annexation.
1/23 Introduced in House; referred to
Commerce Committee.
2/6 Passed Commerce Committee with an
amendment.
2/12 Passed House.
2/13 Introduced in Senate; referred to State
Affairs Committee.
2/15 Passed State Affairs Committee with SB
126 hoghouse amendment.
2/20 Passed Senate with amendment restoring
bill to House version.
2/22 House failed to concur; appointed
conference committee.
HB 1321 - An act to
revise certain provisions concerning alcoholic
beverage licenses authorized for certain municipal
facilities.
A
municipality with a population in excess of
thirty-five thousand may issue an on-sale license
to a municipal auditorium operated pursuant or to
a public convention hall operated for use during a
convention activity or an entertainment event,
including any theatrical or musical performance,
rodeo, or show. The selling, serving, or
dispensing of any alcoholic beverage at the
municipal auditorium may not occur more than one
hour before the commencement of the event or at
any time after the event is concluded. Under
current law, a municipality must split the use of
this special license between the municipal airport
and the municipal auditorium or convention hall.
1/24 Introduced in House; referred to
Commerce Committee.
2/4 Passed Commerce Committee.
2/5 Passed House.
2/6 Introduced in Senate; referred to Local
Government Committee.
2/11 Passed Local Government Committee.
2/13 Passed Senate.
SMOKING BANS
HB 1237 - An act to
allow local units of government to regulate the
sales, distribution, marketing, promotion, and use
of tobacco products.
This
bill allows any county or municipality to enact
regulations relating to the use, distribution,
marketing, promotion, and sale of tobacco that are
more restrictive than those provided for by the
Legislature.
1/16 Introduced in House; referred to State
Affairs Committee.
1/31 Tabled in State Affairs Committee.
VIDEO LOTTERY
None.
DUI ENFORCEMENT
None
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