State of South Dakota
LEGISLATIVE ASSEMBLY, 2004
HOUSE BILL NO. 1299
Introduced by: Representatives Olson (Ryan), Begalka, Dykstra, Hackl, McLaughlin, Nesselhuf, Rhoden, Rounds, and Schafer and Senators Reedy, Jaspers, and Sutton (Duane)
transported in violation of this section and any vehicle used in violation of this section are
subject to confiscation as contraband.
Section 2. That chapter 35-12A be amended by adding thereto a NEW SECTION to read as follows:
award of all costs and attorneys' fees incurred by the state incidental to that action. Upon
determination by the department that an illegal sale or shipment of alcoholic beverages has been
made to a consumer in this state by either a manufacturer or retailer of alcoholic beverages, the
department may notify both the Bureau of Alcohol, Tobacco and Firearms of the United States
Department of the Treasury and the licensing authority for the state in which the manufacturer
or retailer is domiciled that a state law pertaining to the regulation of alcoholic beverages has
been violated and may request those agencies to take appropriate action. The Department of
Revenue and Regulation shall promulgate rules pursuant to chapter 1-26 to provide for the
reporting and tracking of information related to the sale of wine under this Act and to prescribe
forms for the implementation of this Act.
Section 4. That § 35-12A-4 be amended to read as follows:
35-12A-4. Any licensee who holds a farm winery license pursuant to § 35-12-2 may ship no more than twelve cases of wine per person per calendar year. A case may contain no more than nine liters (2.38 gallons) or less per case in any one shipment. Any wine sold may only be for personal use and not for resale. The wine may only be sold directly to a resident of another state if the state to which the wine is sent allows residents of the state to receive wine sent from outside that state.
Section 5. That § 35-12A-1 be repealed.
Notwithstanding any other provision of law, any person who is at least
twenty-one years of age may purchase and receive wine from another state as provided in this
section if the wine is not in distribution in this state and the wine comes from a winery that is
located in a state that affords South Dakota wineries an equal reciprocal shipping privilege, or
a winery located in South Dakota. The person shall place an order with a licensee as defined in
subdivision 35-4-2(3) or (5). The licensee shall order the wine through a wholesaler licensed
pursuant to subdivision 35-4-2(2) and the wholesaler shall arrange the purchase of wine. The
licensee shall inform the purchaser of the cost of the wine, the amount of any tax that would
apply to the purchase pursuant to
35-5-3, the amount of sales tax that would apply, and the
amount of charges for freight and handling. The licensee shall collect the total amount due from
the customer before ordering the wine through the wholesaler. After receiving the order for the
wine from the licensed retailer the wholesaler shall arrange for the wine to be shipped directly
to the licensee who placed the order for the purchaser. Wine purchased pursuant to this chapter
may only be delivered and received by the purchaser from a licensee as defined in subdivision
35-4-2(3) or (5).
Section 6. That § 35-12A-2 be repealed.
If the wholesaler orders twelve or less cases of a particular brand of wine for an
individual purchaser in one calendar year pursuant to this section, no registration fee pursuant
to chapter 39-13 may be imposed.
Section 7. That § 35-12A-3 be repealed.
No person may receive more than twelve cases of wine, containing no more than
nine liters per case, in any calendar year for personal use from another state under this chapter.
No person who receives wine under this chapter may resell any of the wine. However, if the
delivery of the wine does not result in a completed sale to the person who placed the original
order, the licensee may sell the wine in the ordinary course of business. It is a Class 2
misdemeanor for any person to receive more than twelve cases of wine during a calendar year
in violation of this chapter. It is a Class 2 misdemeanor for any person to resell or attempt to
resell any wine obtained pursuant to this chapter. The Department of Revenue shall promulgate
rules pursuant to chapter 1-26 to provide for the reporting and tracking of information related
to the sale of wine under this chapter and to prescribe forms for the implementation of this
Section 8. That § 35-12A-5 be repealed.
No person in the business of selling alcoholic beverages may ship or cause to be
shipped any alcoholic beverage to any South Dakota resident who does not hold a license issued
pursuant to chapter 35-4. The department shall, for the first offense, send a certified letter to any
person who violates this section and order such person to cease and desist any shipments of
alcoholic beverages to South Dakota residents. Any subsequent violation of this section is a
Class 1 misdemeanor.