AMENDMENT FOR PRINTED BILL
173ob
___________________ moved that SB 173 be amended as follows:
On the printed bill, delete everything after the enacting clause and insert:
"
Section 1. That the code be amended by adding a NEW SECTION to read:
Terms used in this Act mean:
(1) "Malt beverage manufacturer," any manufacturer located in this state producing malt
beverages, as defined in§ 35-1-1, that is not a microbrewery;
(2) "Microbrewery," any manufacturer located in this state producing malt beverages, as
defined in§ 35-1-1, a total quantity not in excess of thirty thousand barrels within a
calendar year.
Section 2. That the code be amended by adding a NEW SECTION to read:
The classes of licenses, with the fee of each class, are as follows:
(1) Malt beverage manufacturer--two thousand five hundred dollars; and
(2) Microbrewery--five hundred dollars.
Section 3. That the code be amended by adding a NEW SECTION to read:
Except as provided in this Act, all provisions of title 35 apply to the production, sale, possession,
transportation, and consumption of alcoholic beverages produced by any person licensed pursuant
to this Act.
Section 4. That the code be amended by adding a NEW SECTION to read:
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to
this Act an excise tax at the same rates and collected and administered in the same manner as the
taxes imposed on alcoholic beverages in chapter 35-5.
Section 5. That the code be amended by adding a NEW SECTION to read:
A licensed microbrewery may sell on the licensed premises alcoholic beverages produced by the
licensee for on-sale or off-sale consumption. A licensed microbrewery may sell alcoholic beverages
produced by the licensee to any wholesaler authorized to receive the alcoholic beverages. A licensed
microbrewery may sell alcoholic beverages to any licensed artisan distiller, farm winery,
microbrewery, or microcidery, if the alcoholic beverage is used in the manufacturing process. A
licensed microbrewery may sell up to one thousand five hundred barrels of alcoholic beverages
produced by the licensee within a calendar year to retailers authorized to receive the alcoholic
beverages.
The barrel limit in this section does not apply to any sales made to special event retailers licensed
pursuant to § 35-4-124 and served by employees of the microbrewery or to any transfer of alcoholic
beverages between a licensed microbrewery and any additional locations authorized pursuant to
section 7 of this Act.
The quantity of alcoholic beverages sold pursuant to this section may not exceed the total
production limits for the license as specified in section 1 of this Act.
Section 6. That the code be amended by adding a NEW SECTION to read:
A licensed microbrewery may hold on the licensed premises an artisan distiller license, a farm
winery license, or a microcidery license. A licensed microbrewery may hold on the licensed premises
any license issued pursuant to subdivision 35-4-2(4), (6), (12), or (16).
Section 7. That the code be amended by adding a NEW SECTION to read:
A licensed microbrewery may operate up to five additional locations in this state by obtaining
additional licenses of the same class pursuant to this chapter. The quantity of alcoholic beverages
produced under the original license and any additional licenses combined may not exceed the total
production limits for the license as specified in section 1 of this Act. Any additional license issued
pursuant to this section has the privileges of the original license as specified in sections 5 and 6 of
this Act.
Section 8. That the code be amended by adding a NEW SECTION to read:
A licensed malt beverage manufacturer may sell on the licensed premises alcoholic beverages
produced by the licensee for on-sale or off-sale consumption. A licensed malt beverage manufacturer
may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the
alcoholic beverages.
Section 9. That the code be amended by adding a NEW SECTION to read:
The holder of any license issued under this Act shall register labels for each type or brand
produced with the department in the same manner as prescribed for alcoholic beverages 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.
Section 10. That the code be amended by adding a NEW SECTION to read:
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and
procedures for obtaining a license pursuant to this Act, and procedures for collecting the excise taxes
pertaining to the licenses.
Section 11. 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:
(1) Distillers--four thousand dollars. However, no license fee is required for manufacturers
of alcohol for use in industry as a nonbeverage. If the manufacturer of industrial alcohol
shall at any time manufacture, produce, distill, sell, barter, or dispose of alcohol for any
use other than an industrial use, the license fee required by this section shall be allocated
to and payable for the portion of the year the manufacturer devoted to such other use for
each calendar month or fraction thereof while so engaged, but in no case less than one-twelfth of the license fee;
(2) Wholesalers of alcoholic beverages--five thousand dollars;
(3) Off-sale--not less than five hundred dollars in municipalities of the first class, not 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 the licenses
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;
(4) On-sale--in municipalities of various classes: municipalities of the first class, not less than
one dollar for each person residing within the municipality as measured by the last
preceding federal census, the renewal fee for such the license is fifteen hundred dollars;
municipalities of the second class, no more than twelve hundred dollars; municipalities
of the third class, no more than nine hundred dollars;
(5) Off-sale licenses issued to municipalities under local option--not less than two hundred
fifty dollars;
(6) On-sale licenses issued outside municipalities--except as provided in § 35-4-11.9, not less
than the maximum that the municipality to which the applicant is nearest is charging for
a like license in that municipality, the renewal fee shall be the same as is charged for a
like license in the nearest municipality. However, if the nearest municipality is more than
fifteen miles from the on-sale license, the fee shall be established pursuant to § 35-4-11.10. If the municipality to which the applicant is nearest holds an on-sale license,
pursuant to § 35-3-13 and does not charge a specified fee, then the fee shall be the
maximum amount that could be charged as if the municipality had not been authorized
to obtain on-sale licenses pursuant to § 35-3-13. However, if the nearest municipality is
a municipality of the first class and is authorized to hold an on-sale license pursuant to
§ 35-3-13, such the fee may not be more than one hundred fifty percent of the minimum
a municipality not so authorized may charge for a like license. The renewal fee shall be
the same as could be charged for a like license in the nearest municipality;
(7) Solicitors--twenty-five dollars;
(8) Transportation companies--twenty-five dollars;
(9) Carrier--one hundred dollars, which fee entitles the licensee to sell or serve alcoholic
beverages on all conveyances the licensee operates within the state unless restricted by
local ordinance;
(10) Dispensers--ten dollars;
(11) On-sale dealers at publicly operated airports--two hundred fifty dollars;
(12) Wine and cider retailers, being both package dealers and on-sale dealers--five hundred
dollars;
(13) Convention facility on-sale--not less than one dollar for each person residing within the
municipality as measured by the last preceding federal census, the renewal fee for such
the license, in municipalities of the first class, is fifteen hundred dollars; the renewal fee
for such the license, in municipalities of the second class, is no more than twelve hundred
dollars; the renewal fee for such the license, in municipalities of the third class, is no more
than nine hundred dollars;
(14) Manufacturers of malt beverages--five hundred dollars;
(15) Wholesalers of malt beverages--four hundred dollars;
(16) Malt beverage retailers, being both package dealers and on-sale dealers--three hundred
dollars;
(17) Malt beverage package dealers--two hundred dollars;
(17A) Malt beverage and wine produced pursuant to chapter 35-12 package dealers--two
hundred twenty-five dollars;
(18) On-sale dealers in light wine containing not more than six percent alcohol by weight for
each day of the week between the hours of seven a.m. and two a.m. to nonprofit
corporations established pursuant to chapter 7-7--two hundred dollars;
(19) Off-sale package wine dealers in table wines, sparkling wines, sacramental wine, and
distilled spirits produced from product provided to an artisan distiller by the respective
farm winery to be operated in conjunction with a farm winery established pursuant to
chapter 35-12--one hundred fifty dollars;
(20) Malt beverage retailers, being both package dealers and on-sale dealers, and retailers of
wine produced pursuant to chapter 35-12, being both package dealers and on-sale dealers--three hundred twenty-five dollars;
(21) Retail on premises manufacturer--two hundred fifty dollars;
(22) Manufacturers of cider--five hundred dollars; and
(23) Off-sale delivery--one hundred fifty dollars.
Section 12. That § 35-5-3.2 be repealed.
35-5-3.2. In addition to the provisions of § 35-4-49, a malt beverage manufacturer may sell the
malt beverage such manufacturer manufactures to the public for consumption on the licensed
premises. A malt beverage manufacturer who manufactures less than five thousand barrels of malt
beverage a year may hold on the premises where the malt beverage is manufactured an on-sale
license issued pursuant to subdivision 35-4-2(4) and subject to the quota established in § 35-4-11
or a malt beverage retailer's license issued pursuant to subdivision 35-4-2(16) or an on-sale wine
license issued pursuant to subdivision 35-4-2(12). The manufacturer shall pay the tax imposed under
subdivision 35-5-3(1) on all malt beverages so sold. Any manufacturer who holds a malt beverage
retailer's license as provided in this section may also hold a malt beverage retailer's license at other
locations but may sell the malt beverages it manufactures only at the location where the beverages
are manufactured or to wholesalers licensed pursuant to this title.
Section 13. That § 35-5-3.3 be repealed.
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) for such 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 14. That § 35-4-49 be repealed.
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 wholesaler licensed under subdivision
35-4-2(2), or may sell such 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 15. That § 35-4-60.1 be amended to read:
35-4-60.1. No licensed wholesaler may purchase or accept delivery into this state of any brand
of alcoholic beverages, unless those alcoholic beverages are purchased from the brand owner or the
brand owner's authorized agent, or from another licensed wholesaler who is licensed under this
chapter and operating solely within this state. Such alcoholic Alcoholic beverages imported into this
state shall come to rest at the warehouse for the account of such the licensed wholesaler before sale
and delivery to a retail licensee. Alcoholic beverages obtained from any licensed manufacturer
located in this state do not need to come to rest at the warehouse of the licensed wholesaler before
sale and delivery to a retail licensee if the wholesaler takes physical possession of the alcoholic
beverages. "