An Act to authorize the consumption of alcohol in certain common areas.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added:

35-4-131. Sale or consumption in area abutting licensed premises.

Notwithstanding §§ 35-2-6.3, 35-4-75, and 35-4-114, an on-sale licensee may sell malt beverages and wine to be consumed in a common area if the licensee has submitted an affidavit to the department, and any local governing body that approved the on-sale license, that is signed by the licensee and the person who owns the common area. The licensee shall state in the affidavit:

(1) The licensee has permission to serve alcohol for consumption in the common area;

(2) A description of the dimensions of the common area where malt beverages and wine may be consumed; and

(3) Any other limitation on the consumption of alcohol imposed by the common area owner.

Before serving alcohol in common areas, the licensee shall also obtain approval from any local governing body that approved the on-sale license. However, a request under this section to serve alcohol in common areas shall not be considered a new retail license nor warrant the reconsideration of any current license the licensee may have.

For purposes of this section, the term, common area, means property that is indoors, owned by a person who leases the premises where the licensee conducts business, and used in common by the customers of multiple businesses leased by the same owner. If sale and consumption is authorized under this section, the common area is not a public place for purposes of § 35-1-5.3.

Malt beverages and wine may only be consumed in a common area during the hours that consumption is permitted on the on-sale licensee's premises.

A violation of this title by a licensee who serves a malt beverage or wine consumed in the common area in accordance with this section is a violation of this title as if the violation had occurred on the licensed premises.