ENTITLED, An Act to
provide for the establishment and operation of artisan distillers and to revise
certain provisions concerning farm wineries.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Terms used in this Act mean:
(1) "Artisan distiller," any distiller located in South Dakota that produces, rectifies, or blends
fifty thousand gallons or less of distilled spirits annually;
(2) "Department," the Department of Revenue and Regulation.
The department may issue an artisan distiller license to an artisan distiller. The fee for
the license shall be five hundred dollars per year.
No agricultural producer, association of agricultural producers, or legal agent who
manufactures and converts agricultural surpluses, byproducts, or wastes, into denatured ethyl and
industrial alcohol for the purposes other than human consumption is required to obtain an artisan
An artisan distiller shall maintain records of all sales and shipments. The artisan
distiller shall provide to the department monthly reports regarding quantities and prices of distilled
spirits shipped and other information that the department determines to be necessary.
Except as provided in this Act, all provisions of Title 35 apply to the production, sale,
possession, and consumption of distilled spirits produced by an artisan distiller.
There is hereby levied on all distilled spirits produced by an artisan distillery an excise
tax imposed at the same rates and collected and administered in the same manner as the tax imposed
on distilled spirits in chapter 35-5.
At least thirty percent of the raw materials, other than water, used by an artisan
distiller to produce distilled spirits shall consist of agricultural products grown in South Dakota. If
the products are not available in quantities sufficient to constitute the required thirty percent, the
holder of the artisan distillery license may file an affidavit with the department stating this fact and
requesting that the department approve the use of imported products by the artisan distillery. If the
department approves, the artisan distillery may use imported products and shall continue to be
governed by this Act. The department's approval is effective for one year, after which time it shall
again be required that at least thirty percent of the raw materials used consist of agricultural products
grown in South Dakota, unless the artisan distiller files a new affidavit and request and the
department approves the request.
For purposes of producing distilled spirits an artisan distiller may purchase or receive
alcoholic beverages in accordance with
A license issued pursuant to section 2 of this Act authorizes the sale on the distillery
premises of distilled spirits produced by the artisan distillery at on-sale or off-sale, in total quantities
not in excess of fifty thousand gallons in a calendar year and the dispensing of free samples of
distilled spirits offered for sale. Except as provided in this Act, such sales shall comply with the
provisions of Title 35.
The holder of an artisan distiller license may also hold on the premises where the
distilled spirit is produced an on-sale license issued pursuant to subdivision 35-4-2(4) or (6) and
subject to the quota established in
35-4-11 or 35-4-11.1.
The holder of an artisan distiller license shall register labels for each type or brand
produced with the department in the same manner and at the same manner as prescribed for distilled
spirits 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.
That subdivision (19) of
be amended to read as follows:
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.
be amended to read as follows:
Notwithstanding the provisions of § 35-4-47 or 35-4-60, a farm winery licensed
pursuant to this chapter may sell the wine produced under the license to wholesalers and retailers
licensed pursuant to subdivisions 35-4-2(2), (3), (4), (5), (6), (9), (11), (12), (13), and (18) and
artisan distillers licensed pursuant to section 2 of this Act. A farm winery may sell to an artisan
distiller wine or other products containing alcohol that are produced on the premises of the winery
for blending or distillation by the artisan dealer.
An artisan distiller may sell distilled spirits to a farm winery if the distilled spirits
were produced from products provided to the artisan distiller by the farm winery.
An Act to provide for the establishment and operation of artisan distillers and to revise certain
provisions concerning farm wineries.
I certify that the attached
originated in the
Speaker of the House
President of the Senate
Secretary of the Senate
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State