AMENDMENT FOR PRINTED BILL
130ya

___________________ moved that SB 130 be amended as follows:


    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That chapter 35-4 be amended by adding a NEW SECTION to read:

    A municipality or county may issue an on-sale surcharge license. Any applicant for an on-sale surcharge license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the fee required under § 35-4-2 with the application. The governing body of a municipality or county may approve an application for an on-sale surcharge license if the municipality or county considers the applicant suitable and the proposed location is suitable.

    Section 2. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may only sell alcoholic beverages on the premises where any of the following is carried on:

            (1)    The keeping of a hotel or motel;
            (2)    The operation of a restaurant; or
            (3)    The operation of any other business the governing body considers suitable.

    Section 3. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license shall charge a surcharge fee of one dollar per fluid ounce of distilled spirits dispensed or served on the premises where the on-sale licensee is authorized to operate.

    Section 4. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may sell any distilled spirit for consumption on the premises of a business where the on-sale surcharge licensee is authorized to operate. The sale of distilled spirits may not begin prior to 10:00 a.m. of each day, and may continue until 10 p.m. on Sunday through Thursday, and until 11 p.m. on Friday and Saturday.

    Section 5. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The holder of an on-sale surcharge license may not sell or transfer the on-sale surcharge license.

    Section 6. That chapter 35-4 be amended by adding a NEW SECTION to read:

    Notwithstanding §§ 35-4-11, 35-4-11.1, and 35-4-11.12, the governing body of a municipality or county may not limit the number of on-sale surcharge licenses to be issued within the municipality or county.

    Section 7. That § 35-4-2 be amended to read:



    35-4-2. The classes of licenses, with the fee of each class, are as follows:

            (1)    Repealed by SL 2018, ch 223, § 13;
            (2)    Wholesalers of alcoholic beverages--five thousand dollars;
            (3)    Off-sale--not less than three hundred dollars. The renewal fee for the license may not exceed five hundred dollars;
            (4)    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 the license may not exceed fifteen 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--not less than the amount the nearest municipality to the applicant is charging for a like license. The renewal fee shall be the same as is charged for a like license in the nearest municipality. 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 minimum amount that could be charged as if the municipality had not been authorized to obtain on-sale licenses pursuant to § 35-3-13. The renewal fee shall be the same as could be charged for a like license in the nearest municipality;
            (7)    Repealed by SL 2018, ch 213, § 46;
            (8)    Transportation companies--twenty-five dollars;
            (9)    Carrier--one hundred dollars. The fee licenses all conveyances the licensee operates in this state;
            (10)    Repealed by SL 2018, ch 213, § 46;
            (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 the license may not exceed fifteen hundred dollars;
            (14)    Repealed by SL 2018, ch 224, § 11;
            (15)    Wholesalers of malt beverages--four hundred dollars;
            (16)    Malt beverage and wine produced by a farm winery licensee, being both package dealers and on-sale dealers--three hundred dollars;
            (17)    Repealed by SL 2018, ch 213, § 46;
            (17A)    Repealed by SL 2018, ch 213, § 46;
            (18)    Repealed by SL 2018, ch 213, § 46;
            (19)    Repealed by SL 2018, ch 213, § 46 and ch 222, § 11;
            (20)    Repealed by SL 2018, ch 213, § 46;
            (21)    Retail on premises manufacturer--two hundred fifty dollars;
            (22)    Repealed by SL 2018, ch 223, § 13; and
            (23)    Off-sale delivery--one hundred fifty dollars; and
            (24)    On-sale surcharge license_two thousand dollars. The annual renewal fee shall be two thousand dollars.

    Section 8. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The surcharge fee under section 3 of this Act shall be paid to the Department of Revenue to be used solely to reimburse the Department of Revenue for collection costs and to make payments to the owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses who acquired the on-sale license

before July 1, 2019, and paid fair market value for the on-sale license. After the Department of Revenue is reimbursed for costs associated with collecting payments made pursuant to section 3 the surcharge payments shall be paid to the owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses in a manner determined by the Department of Revenue.

    Section 9. That chapter 35-4 be amended by adding a NEW SECTION to read:

    The secretary shall promulgate rules, pursuant to chapter 1-26 to:

            (1)    Establish procedures for collecting the surcharge fees made under section 3 of this Act; and
            (2)    Establish procedures and criteria for distributing surcharge payments to owners of subdivision 35-4-2(4) and 35-4-2(6) on-sale licenses.

    Section 10. That chapter 35-4 be amended by adding a NEW SECTION to read:

    If, in the ten-year period beginning with January 1, 2021, and ending January 1, 2031, an owner is certified as a qualified holder of an on-sale license issued pursuant to 35-4-2(4) or 35-4-2(6), and the owner sells or transfers any part of the owner's interest in the on-sale license to another person, the owner forfeits that portion of the owner's future surcharge payments that is equal to the amount of consideration received by the owner from the sale or transfer of the on-sale license."