TITLE 35
ALCOHOLIC BEVERAGES
Chapter
01 Definitions And General Provisions
02 Licensing Policies And Procedures
03 Local Option And Municipal Powers
04 Sale Of Beverages
05 Alcohol Excise Tax
06 Sale Of Low-Point Beer [Repealed]
07 Nonintoxicating Beer And Wine Occupational Tax [Repealed]
08 Beer Wholesalers [Repealed]
08A Regulation Of Beer Industry Business Relationships
09 Age Requirements For Consumption Of Beverages
10 Enforcement Powers And Procedures
11 Liability For Injuries By Intoxicated Persons
12 Farm Wineries
12A Interstate Wine Shipment
12B Direct Shipments Of Wine
13 Distillers And Artisan Distillers
13A Distilled Spirits Not In Distribution In State
14 Cider Manufacturers And Microcideries
15 Malt Beverage Manufacturers And Microbreweries
16 Wine Manufacturers
CHAPTER 35-1
DEFINITIONS AND GENERAL PROVISIONS
35-1-1 Definition of terms.
35-1-1.1 Licensee includes municipal operating agreement holder--Number of agreements limited.
35-1-2 Secretary of revenue to administer title--Employment of personnel--Equipment and supplies.
35-1-3 Certain revenue department employees prohibited from engaging in alcoholic beverage business.
35-1-4 Traffic in alcoholic beverages prohibited except as authorized by title.
35-1-4.1 Dispenser permitted to transport or store alcoholic beverage.
35-1-5 Unlicensed business prohibited--Violation as misdemeanor.
35-1-5.1 Bottle clubs prohibited.
35-1-5.2 35-1-5.2. Repealed by SL 2010, ch 180, § 4.
35-1-5.3 Consumption of distilled spirits in public place as misdemeanor--Exceptions.
35-1-5.4 Certain uses exempt from tax--Manufacture and storage in public place or place of business--Consumption at place of business.
35-1-5.5 Permit for consumption of alcoholic beverage on property owned by public or nonprofit corporation.
35-1-5.6 Consumption of alcoholic beverages on on-sale premises from which beverage not purchased as misdemeanor--Exceptions.
35-1-5.7 Corkage fee for wine supplied by customer--Removal of partially consumed, sealed bottle of wine--Storage of wine supplied by customer.
35-1-5.8 Carrier may permit passenger to consume alcoholic beverage aboard vehicle.
35-1-5.9 Commercial storage of wine--Authorization.
35-1-6 35-1-6. Repealed by SL 1971, ch 211, § 121.
35-1-7 False statement in application or report as felony.
35-1-8 Sale or delivery of beverages for resale prohibited except as authorized.
35-1-8.1 Sacramental wines exempt.
35-1-9 Storage of beverages restricted to licensed premises--Exception.
35-1-9.1 Consumption or possession of alcoholic beverage in vehicle a misdemeanor--Exceptions.
35-1-9.2 35-1-9.2. Repealed by SL 2018, ch 213, § 8.
35-1-9.3 Certain situations not in violation of § 35-1-9.1.
35-1-9.4 Carry out of partially consumed, sealed bottle of wine permitted under certain circumstances.
35-1-10 35-1-10, 35-1-11. Repealed by SL 2010, ch 180, §§ 5, 6.
35-1-12 Kegs of malt beverage--Retail sale--Records.
35-1-13 Sale, purchase, possession, or use of alcohol without liquid device prohibited--Exceptions--Violation as misdemeanor.
35-1-14 Production and storage of alcoholic beverages--Postsecondary institutions--Purposes--Exemptions--Prohibitions.
35-1-1. Definition of terms.
Terms used in this title mean:
(1) "Alcoholic beverage," any distilled spirits, wine, ciders, and malt beverages as defined in this title;
(2) "Bulk container," any package, or any container within which container are one or more packages;
(3) "Carrier," a person who for hire transports passengers and who sells or furnishes to passengers for consumption alcoholic beverages aboard any means of conveyance or allows passengers to consume the passenger's own alcoholic beverages aboard the conveyance;
(3A) "Cider," any alcoholic beverage obtained by the fermentation of the juice of apples or pears that contains not less than one-half of one percent of alcohol by weight and not more than ten percent of alcohol by weight, including flavored, sparkling, or carbonated cider;
(3B) "Controlling interest," an ownership interest in the licensee of ten percent or more;
(4) "Department," the Department of Revenue;
(5) "Dispenser," a duly licensed physician, dentist, veterinarian, osteopath, podiatrist, chiropractor, or pharmacist; or a druggist, sanitarium, hospital, clinic, educational institution, industrial company, or industrial corporation who purchases alcohol for scientific and medicinal purposes only;
(6) "Distilled spirits," ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including any dilutions or mixtures thereof, for nonindustrial use containing not less than one-half of one percent of alcohol by weight;
(7) Repealed by SL 2018, ch 213, § 1;
(8) "Malt beverage," a beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, or any other similar product, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human consumption containing not less than one-half of one percent of alcohol by weight;
(9) "Manufacturer," any person who owns, has a controlling interest in, operates, or aids in operating any establishment for the brewing, production, bottling, or blending of any alcoholic beverage, whether occurring within or without this state;
(10) "Minibar," any closed container, either refrigerated or nonrefrigerated, having restricted access to the interior by means of a locking device that requires the use of a key, magnetic card, or similar device, or controlled by the licensee at all times;
(11) "Municipality," any incorporated city or town, and any unincorporated platted town having a United States post office. However, the subsequent withdrawal of a United States post office does not affect the right of established liquor licenses to be continued, renewed, or transferred and does not prevent the owner or bona fide lessee of the licensed premises from receiving a renewal or reissuance of the license;
(12) "Off-sale," the sale of any alcoholic beverage for consumption off the premises where sold;
(13) "On-sale," the sale of any alcoholic beverage for consumption only upon the premises where sold;
(14) "On-sale dealer," any person who sells, or keeps for sale, any alcoholic beverage for consumption on the premises where sold;
(15) "Package," the bottle or immediate container of any alcoholic beverage;
(16) "Package dealer," any person other than a manufacturer or wholesaler who sells, or keeps for sale, any alcoholic beverage for consumption off the premises where sold;
(17) "Population," number of inhabitants as determined by the last preceding decennial federal census;
(17A) "Powdered, condensed, or concentrated alcohol," an alcoholic product that is created using a process that reduces the alcohol to a concentrated form and that allows the alcohol to be reconstituted with water or other liquid;
(17B) "Relative," any person who is a husband, wife, son, daughter, brother, sister, father, or mother;
(18) "Retail license," an on-sale or off-sale license issued under the provisions of this title;
(19) "Retailer," or "retail dealer," any person who sells alcoholic beverages for other than resale;
(20) "Sale," the transfer, for a consideration, of title to any alcoholic beverage;
(21) "Secretary," the secretary of revenue;
(21A) "Serve," the taking of an order for an alcoholic beverage and intentionally delivering the alcoholic beverage to a customer for the purpose of consumption on the licensed premises and the customer takes physical possession of the alcoholic beverage;
(22) Repealed by SL 2018, ch 213, § 1;
(23) "Transportation company," or "transporter," any common carrier or operator of a private vehicle transporting or accepting for transportation any alcoholic beverages, but not including transportation by carriers in interstate commerce where the shipment originates outside of the state and is destined to a point outside of the state;
(24) "Wholesaler," any person who sells alcoholic beverages to retailers for resale;
(25) "Wine," any beverage made from the fermentation of grapes, grape juice, other fruit bases, or honey, with or without adding alcoholic beverages; without rectification, except for the purpose of fortification; and contains not less than one-half percent and not more than twenty-four percent alcohol by volume.
Source: SDC 1939, §§ 5.0101, 5.0204 (12); SL 1945, ch 17, § 1; SL 1955, ch 6, § 1; SL 1961, ch 12; SL 1965, ch 10, § 1; SDCL § 35-4-30; SL 1971, ch 211, §§ 5, 6, 121; SL 1983, ch 263; SL 1987, ch 261, §§ 1, 2; SL 1989, ch 311, § 1; SL 1998, ch 221, § 1; SL 2003, ch 272 (Ex, Ord. 03-1), § 82; SL 2010, ch 180, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2015, ch 194, § 1; SL 2017, ch 163, § 1; SL 2018, ch 213, § 1; SL 2018, ch 214, § 1; SL 2018, ch 215, § 3; SL 2018, ch 223, § 27.
35-1-1.1. Licensee includes municipal operating agreement holder--Number of agreements limited.
For the purposes of this title, any person that has entered into an operating agreement with a municipality pursuant to § 35-4-19 is a licensee. A municipality may not enter into more operating agreements than the maximum number of retail licenses of each type that may be issued pursuant to this title.
Source: SL 2003, ch 188, § 1; SL 2009, ch 177, § 10; SL 2018, ch 213, § 2.
35-1-2. Secretary of revenue to administer title--Employment of personnel--Equipment and supplies.
The secretary shall administer the law as set forth in this title, and may employ such help and purchase such equipment and supplies as are necessary for performance of the secretary's duties.
Source: SDC 1939, § 5.0102; SL 1971, ch 211, § 7; SL 2008, ch 37, § 130.
35-1-3. Certain revenue department employees prohibited from engaging in alcoholic beverage business.
Neither the secretary nor any employee of the division within the department that issues any alcoholic beverage license may have any interest, financial or otherwise, in the production, transportation, storage, or sale of alcoholic beverages.
Source: SDC 1939, § 5.0102; SL 1971, ch 211, § 8; SL 2008, ch 37, § 131; SL 2016, ch 186, § 1.
35-1-4. Traffic in alcoholic beverages prohibited except as authorized by title.
No person may produce, transport, store, or sell any alcoholic beverage except as authorized under the provisions of this title.
Source: SDC 1939, § 5.0114; SL 1971, ch 211, § 9; SL 2008, ch 37, § 132.
35-1-4.1. Dispenser permitted to transport or store alcoholic beverage.
A dispenser may transport or store any alcoholic beverage purchased for a bona fide scientific or medicinal purpose.
Source: SL 2018, ch 213, § 3.
35-1-5. Unlicensed business prohibited--Violation as misdemeanor.
No person may transact any business authorized by this title without a license as provided by this title. A violation of this section is a Class 1 misdemeanor.
Source: SDC 1939, § 5.0115; SL 1999, ch 183, § 1.
35-1-5.1. Bottle clubs prohibited.
A bottle club, being an establishment not licensed for the sale of alcoholic beverages, which allows persons to bring their own alcoholic beverages on the premises for purposes of consumption and where the proprietor sells or provides soft drinks, mix, or ice on the premises, or charges for bringing such alcoholic beverages, soft drinks, mix, or ice on the premises, is prohibited.
Source: SL 1971, ch 211, § 2.
35-1-5.3. Consumption of distilled spirits in public place as misdemeanor--Exceptions.
It is a Class 2 misdemeanor for any person to consume distilled spirits in any public place, other than upon the premises of an on-sale dealer that is licensed to sell distilled spirits or upon the location set forth in a permit granted by § 35-1-5.5. For purposes of this section, the term, public place, means any place, whether in or out of a building, commonly and customarily open to or used by the general public, and any street or highway.
Source: SL 1973, ch 234; SL 1977, ch 190, § 122; SL 1984, ch 246; SL 2008, ch 37, § 134; SL 2010, ch 180, § 3; SL 2011, ch 170, § 1.
35-1-5.4. Certain uses exempt from tax--Manufacture and storage in public place or place of business--Consumption at place of business.
Any person who produces for personal, family, or similar use two hundred gallons or less of malt beverage each year or any person who produces for personal, family, or similar use two hundred gallons or less of cider each year or any person who produces for personal, family, or similar use two hundred gallons or less of wine each year is exempt from any license required by this title and is exempt from any tax or fee imposed by this title.
No malt beverage, cider, or wine produced pursuant to this section may be manufactured in a public place or place of business, and stored during the manufacturing process in a public place or place of business, unless the business holds a retail on premises manufacturer license pursuant to subdivision 35-4-2(21).
Malt beverage, cider, or wine produced pursuant to this section may only be stored or consumed on a licensed premises if the premises is licensed to sell such product and:
(1) Such place is at an exhibition, a festival, an educational event, a technical or sensory evaluation, or a tasting competition;
(2) The malt beverage, cider, or wine is conspicuously identified by the licensed business;
(3) The licensed business makes the location of manufacture available upon request;
(4) The malt beverage, cider, or wine is served free of charge or as a prize by the licensed business; and
(5) The malt beverage, cider, or wine does not exceed the sample size limitations pursuant to § 35-4-10.2.
The malt beverage, cider, or wine produced pursuant to this section may not be sold or offered for sale. The licensed business does not violate this section by charging a fee for admission to the exhibition, festival, educational event, technical or sensory evaluation, or tasting competition as long as no separate fee is charged for consumption of the malt beverage, cider, or wine and no portion of the admission fee nor any other compensation is paid to the person who produced the malt beverage, cider, or wine pursuant to this section.
Source: SL 1997, ch 212, § 1; SL 2014, ch 176, § 2; SL 2021, ch 165, § 1.
35-1-5.5. Permit for consumption of alcoholic beverage on property owned by public or nonprofit corporation.
The governing body of a municipality or county may permit the consumption, but not the sale, of any alcoholic beverage on property owned by the public or by a nonprofit corporation within its jurisdiction. The permit period may not exceed twenty-four hours and the hours of authorized consumption may not exceed those permitted for on-sale licensees.
Source: SL 2011, ch 170, § 2; SL 2018, ch 213, § 4.
35-1-5.6. Consumption of alcoholic beverages on on-sale premises from which beverage not purchased as misdemeanor--Exceptions.
It is a Class 2 misdemeanor for any person to consume any alcoholic beverage upon the premises of a licensed on-sale dealer if the alcoholic beverage was not purchased from the on-sale dealer. However, this provision does not apply to any passenger aboard a vehicle operated by a licensed carrier. A person may consume any alcoholic beverage upon the premises of a licensed on-sale dealer if the beverage is purchased from a licensee who has been issued a temporary license pursuant to § 35-4-124 for a special event occurring on the premises of the licensed on-sale dealer.
Source: SL 2011, ch 170, § 3; SL 2018, ch 213, § 5; SL 2018, ch 215, § 1.
35-1-5.7. Corkage fee for wine supplied by customer--Removal of partially consumed, sealed bottle of wine--Storage of wine supplied by customer.
Notwithstanding the provisions of § 35-1-5.6, a licensee that is licensed to sell wine on-sale may permit a customer to bring a sealed and unopened bottle of wine onto the licensed premises for consumption by the customer while eating a meal that was prepared by the licensee and that was served at a table on the licensed premises. The licensee may charge a corkage fee for serving wine supplied by a customer. The customer may carry out the unconsumed portion of the bottle of wine if it is securely resealed by the licensee with a cork or other similar cap and placed in a sealed bag or other container. The licensee shall also attach the receipt for the meal and any corkage fee to the bag or container. The customer may store unconsumed bottles of wine on the licensed premises. The licensee may charge a storage fee for storing wine supplied by the customer.
Source: SL 2012, ch 190, § 1; SL 2014, ch 174, § 1; SL 2018, ch 216, § 1.
35-1-5.8. Carrier may permit passenger to consume alcoholic beverage aboard vehicle.
Notwithstanding the provisions of § 35-1-5.6, a licensed carrier may permit a passenger to bring sealed and unopened alcoholic beverages purchased from a South Dakota retailer aboard the vehicle for consumption by the passenger aboard the vehicle operated by the carrier. Nothing in this section may be construed to permit a licensed carrier to violate any other provision under this title.
Source: SL 2018, ch 215, § 2.
35-1-5.9. Commercial storage of wine--Authorization.
Any person not licensed under this title may store alcoholic beverages for a fee for any other person not licensed under this title.
Source: SL 2022, ch 140, § 1.
35-1-7. False statement in application or report as felony.
Any person who, in any application, report, or statement filed with the secretary, knowingly makes a false statement as to any matter required by any provision of this title to be set forth in the application, report, or statement, is guilty of a Class 6 felony.
Source: SDC 1939, § 5.9902; SL 1977, ch 190, § 123; SL 2008, ch 37, § 135; SL 2010, ch 180, § 2.
35-1-8. Sale or delivery of beverages for resale prohibited except as authorized.
No manufacturer, wholesaler, or transporter may sell or deliver any package containing alcoholic beverages manufactured or distributed for resale, unless the person to whom the package is sold or delivered is authorized to receive the package as provided in this title.
Source: SL 1959, ch 13; SDC Supp 1960, § 5.0124; SL 1971, ch 211, § 10; SL 2008, ch 37, § 136; SL 2018, ch 213, § 6.
35-1-8.1. Sacramental wines exempt.
The provisions of this title relating to licensing and taxation do not apply to the purchase and sale of wines used by ordained rabbis, priests, ministers, or pastors of any church or established religious organization for sacramental purposes within the state.
Source: SDC 1939, §§ 5.0101 (25), 5.0229; SDCL § 35-4-59; SL 1971, ch 211, § 3; SL 2008, ch 37, § 137.
35-1-9. Storage of beverages restricted to licensed premises--Exception.
No licensee under this title may keep or store any alcoholic beverages at any place within the state other than on the premises where the licensee is authorized to operate. However, a licensee may store alcoholic beverages in a bonded warehouse pursuant to § 35-4-45.
Source: SDC 1939, § 5.0120; SL 1971, ch 211, § 11; revised pursuant to SL 1972, ch 15, § 4; SL 2008, ch 37, § 138; SL 2018, ch 213, § 7.
35-1-9.1. Consumption or possession of alcoholic beverage in vehicle a misdemeanor--Exceptions.
It is a Class 2 misdemeanor for any person occupying a motor vehicle located upon a public highway or the right-of-way of a public highway to consume any alcoholic beverage or have a package or any receptacle containing an alcoholic beverage in that person's possession unless the seal of the original package remains unbroken or the alcoholic beverage is so removed from the passenger area of the motor vehicle that no occupant of the motor vehicle has access to it.
Source: SDC 1939, § 5.0227 (1); SDCL, § 35-4-87; SL 1971, ch 211, § 4; SL 1977, ch 190, § 124; SL 1999, ch 184, § 1.
35-1-9.3. Certain situations not in violation of § 35-1-9.1.
It is not a violation of § 35-1-9.1 if:
(1) An alcoholic beverage is located in a locked glove compartment of the motor vehicle;
(2) An open alcoholic beverage is behind the last upright seat of a motor vehicle that is not equipped with a trunk or in an area not normally occupied by the driver or passengers; or
(3) A passenger in a motor vehicle operated by a carrier as defined in subdivision 35-1-1(3) and licensed pursuant to subdivision 35-4-2(9) possesses an open alcoholic beverage. However, the driver of a carrier is prohibited from possessing in the driver compartment of the vehicle a package or receptacle containing an alcoholic beverage if the seal of the original package is broken.
Source: SL 1999, ch 184, §§ 3, 4, 5; SL 2014, ch 174, § 2; SL 2018, ch 213, § 9.
35-1-9.4. Carry out of partially consumed, sealed bottle of wine permitted under certain circumstances.
A licensee that is licensed to sell wine on-sale may permit a customer to carry out the unconsumed portion of a bottle of wine if the customer purchased the bottle of wine from the licensee and consumed a portion of it with a meal that was prepared and served by the licensee at a table on the licensed premises. The licensee shall securely reseal the bottle of wine with a cork or other similar cap and place the bottle in a sealed bag or other container. The licensee shall also attach a receipt for the meal and the wine to the bag or container.
Source: SL 2012, ch 190, § 2; SL 2014, ch 174, § 3.
35-1-12. Kegs of malt beverage--Retail sale--Records.
No keg of malt beverage may be sold at retail in this state unless the licensee who sold the keg records the name and address of the person to whom the keg is sold and has provided for the identification of the keg. Each licensee shall maintain such sales records for one year and shall make the sales records available to any law enforcement agency upon request.
The identification provided for in this section may not be permanent or damaging to the structure of the keg. For the purposes of this section, the term, keg, means an eight or sixteen gallon reusable plastic or metal container.
Source: SL 1991, ch 295, §§ 2, 3; SL 2010, ch 180, § 7.
35-1-13. Sale, purchase, possession, or use of alcohol without liquid device prohibited--Exceptions--Violation as misdemeanor.
No person may sell, offer to sell, purchase, possess, or use an alcohol without liquid device. For the purposes of this section, the term, alcohol without liquid device, means an apparatus that is advertised, designed, or used to vaporize an alcoholic beverage to produce a vapor that may be inhaled by an individual. The term does not include an inhaler, nebulizer, atomizer, or other device that is designed and intended specifically for medical purposes to dispense prescribed or over-the-counter medications or water.
This section does not apply to a hospital that operates primarily for the purpose of conducting scientific research, a state institution conducting bona fide research, a private college or university conducting bona fide research, or a pharmaceutical company or biotechnology company conducting bona fide research.
A violation of this section is a Class 1 misdemeanor.
Source: SL 2008, ch 181, § 1.
35-1-14 . Production and storage of alcoholic beverages--Postsecondary institutions--Purposes--Exemptions--Prohibitions.
As used in this section, the term, postsecondary institution, includes any postsecondary institution, technical institute, or private college or university located within this state.
A postsecondary institution may produce up to two hundred gallons of distilled spirits, up to two hundred gallons of malt beverage, and up to two hundred gallons of wine each year, and securely store up to two hundred gallons of each at any given time, for purposes of research and offering bona fide educational courses instructing students in the production and serving of distilled spirits, malt beverage, or wine. A postsecondary institution is not deemed a manufacturer or retailer under this title. Only students enrolled in a course, faculty, researchers, or research participants directly involved in the purposes of this section may consume alcohol produced under this section.
The production and storage of alcohol under this section is exempt from any licensing required by this title, or any tax or fee imposed by this title. Any distilled spirits, malt beverage, or wine produced under this section may only be consumed for classroom instruction or research and may not be donated, sold, or offered for sale.
No person under age twenty-one may be a student in a course offered under this section, nor may any person under the age of twenty-one consume distilled spirits, malt beverage, or wine produced under this section.
Source: SL 2020, ch 155, § 1.
CHAPTER 35-2
LICENSING POLICIES AND PROCEDURES
35-2-1 License application--Contents.
35-2-1.1 Applications submitted to secretary--Approval if suitable.
35-2-1.2 Applications submitted to local governing body--Fee--Approval or disapproval.
35-2-2 Fees.
35-2-2.1 Agreement by license applicant granting access to premises and records.
35-2-3 Hearing required before issuance of retail license.
35-2-4 Request for notice of hearing on retail license application--Notice by mail required.
35-2-5 Time and place of hearing on retail license--Publication of notice.
35-2-5.1 Return of application disapproved by local governing body--Waiting period before new application.
35-2-5.2 Approval of application by local governing body--Approval by secretary required--Deposit of fees.
35-2-5.3 Local licensing authority--Denying reissuance of on-sale license not actively used.
35-2-6 35-2-6. Repealed by SL 1971, ch 211, § 121.
35-2-6.1 State educational institutions--License to operate on campus prohibited--Exceptions.
35-2-6.2 Character requirements for licensees.
35-2-6.3 Ownership or lease of premises required of licensees--Ownership of business.
35-2-6.4 Manufacturers and wholesalers prohibited from engaging in retail business--Violation as misdemeanor.
35-2-6.5 35-2-6.5. Repealed by SL 2010, ch 180, § 12.
35-2-6.6 35-2-6.6, 35-2-6.7. Repealed by SL 2018, ch 213, §§ 25, 26.
35-2-6.8 Manufacturers and wholesalers permitted to pour or serve at certain events.
35-2-6.9 Manufacturers and wholesalers permitted to enter into sponsorship or advertising agreement with certain retailers.
35-2-6.10 Manufacturers and wholesalers permitted to donate beverages to certain licensees.
35-2-7 Transfer of licenses--Affidavit as to bulk sale--Payment of taxes--Facts shown as to new location--Procedure and fee.
35-2-8 Continuation of business by representative of deceased licensee--Responsibility of representative--Bonds continued.
35-2-9 Sale of stock in trade on termination of license.
35-2-10 Violation as ground for revocation or suspension of license--Multiple licenses.
35-2-10.1 Conditions under which license may not be revoked or suspended for sale to persons under twenty-one--Penalty.
35-2-10.2 Directory of training programs to be maintained on department website--Burden to show attendance for penalty reduction.
35-2-10.3 Compliance checks of prohibited alcohol sales to persons under age twenty-one.
35-2-11 35-2-11. Repealed by SL 1971, ch 211, § 121.
35-2-11.1 Recommendation by local governing body for suspension or revocation of license--Grounds--Action by secretary.
35-2-11.2 Notice of hearing prior to local governing body's recommendation of suspension or revocation.
35-2-12 Investigation--Revocation or suspension proceedings.
35-2-13 Right to hearing on action on application or license.
35-2-14 35-2-14 to 35-2-18. Repealed by SL 1971, ch 211, § 121.
35-2-19 Termination of rights after revocation of license.
35-2-20 Waiting period for new license after revocation--Application by relatives or employees.
35-2-21 Suspension in lieu of revocation of license--Maximum period--Compromise settlement.
35-2-22 35-2-22, 35-2-23. Repealed by SL 1971, ch 211, § 121.
35-2-24 Requirements for reissuance of license.
35-2-25 Sales or use tax licenses.
35-2-26 Licensees or employees charged with certain felonies may be prohibited from licensed premises.
35-2-1. License application--Contents.
Any application for a license as provided in this title shall be made on forms prescribed by the secretary. The application shall contain information required by the secretary and necessary to determine the eligibility of the applicant.
Source: SDC 1939, § 5.0103; SL 2010, ch 180, § 8; SL 2018, ch 213, § 10.
35-2-1.1. Applications submitted to secretary--Approval if suitable.
Any application under this title for a manufacturer, wholesaler, transporter, carrier, retail on premises manufacturer, wine carrier, or direct shipper license, and any application for a license to be issued to a county or municipality, shall be initially submitted to the secretary. The secretary may approve the application if the secretary considers the applicant suitable to hold the license and the proposed location is suitable.
Source: SDC 1939, §§ 5.0207, 5.0306; SDCL §§ 35-4-31, 35-6-14; SL 1971, ch 211, § 12; SL 2008, ch 37, § 139; SL 2018, ch 213, § 11.
35-2-1.2. Applications submitted to local governing body--Fee--Approval or disapproval.
Any applicant for a new retail license, except as set forth in § 35-2-1.1, or the transfer of an existing 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 required fee with the application. The governing body may approve the application for a new retail license or the transfer of an existing license if the governing body considers the applicant suitable to hold the license and the proposed location is suitable.
The governing body may disapprove an application for a new retail license or the transfer of an existing license issued under subdivision 35-4-2(4), (6), or (13) if:
(1) The approval of the application permits a person, corporation, or business entity to possess more than one-third of the licenses available to be issued in the jurisdiction; and
(2) The governing body determines that possession of more than one-third of licenses available is not in the public interest.
Any application for the reissuance of a retail license may be approved by the municipal or county governing body without a hearing unless in the past year the licensee or one or more of the licensee's employees have been subjected to a criminal penalty for violation of the alcoholic beverage control law or the license has been suspended.
Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDC Supp 1960, § 5.0204 (14); SL 1961, ch 14; SL 1964, ch 9; SL 1965, ch 12; SDCL §§ 35-4-32, 35-4-33, 35-6-15; SL 1971, ch 211, § 13; SL 2008, ch 37, § 140; SL 2011, ch 171, § 1; SL 2017, ch 164, § 1; SL 2018, ch 213, § 12.
35-2-2. Fees.
Every application for a license submitted to the secretary as provided by § 35-2-1.1 shall be accompanied by payment of the required fee for the license. However, the license fee for a municipal off-sale license shall be retained by the municipality. If the application is rejected, the fee shall be promptly returned to the applicant. If the application is granted, the fee shall be deposited in the general fund.
Source: SDC 1939, § 5.0113; SL 1971, ch 211, § 15; SL 1973, ch 235; SL 1987, ch 261, § 3; SL 2010, ch 180, § 9; SL 2018, ch 213, § 13.
35-2-2.1. Agreement by license applicant granting access to premises and records.
Each application for a license under this title shall include an agreement by the applicant that the applicant's premises, for the purposes of search and seizure laws of the state and any ordinances of the municipality where the license is issued, are considered public premises. In addition, the agreement shall state:
(1) The premises and all buildings, safes, cabinets, lockers, and storerooms on the premises are at all times, on demand of the secretary, the attorney general, or officers charged with law enforcement in the county or municipality, open to inspection;
(2) All of the applicant's records and books dealing with the sale and ownership of alcoholic beverages are open to the persons specified in subdivision (1) for inspection; and
(3) The application and license issued on the application is a contract between the applicant and the state and the county or municipality having jurisdiction entitling the state and the county or municipality, for the purpose of enforcing the law, rules, and ordinances, to inspect the applicant's premises and books at any time.
Source: SDC 1939, § 5.0209; SL 1945, ch 21, § 2; SDCL §§ 35-4-39, 35-4-40; SL 1971, ch 211, § 14; SL 2008, ch 37, § 141; SL 2018, ch 213, § 14.
35-2-3. Hearing required before issuance of retail license.
No license for a retail on-sale or off-sale alcoholic beverage license may be issued to an applicant until a public hearing is conducted pursuant to §§ 35-2-4 and 35-2-5.
Source: SL 1949, ch 17, § 1; SDC Supp 1960, § 5.0103-1; SL 2008, ch 37, § 142; SL 2018, ch 213, § 15.
35-2-4. Request for notice of hearing on retail license application--Notice by mail required.
If any resident of an incorporated municipality files with the finance officer of the municipality, or if any resident of a county files with the county auditor a written request that the resident be notified of the time and place of hearing upon any specified application for a license for the retail on-sale or off-sale of alcoholic beverages, the finance officer or county auditor shall give notice to the resident. The notice shall be sent by mail a sufficient length of time before the hearing to allow the resident a reasonable opportunity to be present.
Source: SL 1949, ch 17, § 3; SDC Supp 1960, § 5.0103-1; SL 2008, ch 37, § 143; SL 2018, ch 213, § 16.
35-2-5. Time and place of hearing on retail license--Publication of notice.
The governing body of any incorporated municipality or county being presented applications for retail on-sale or off-sale alcoholic beverage licenses shall fix the time and place for hearing upon all applications that come before the body. The finance officer or county auditor shall publish one notice in the official newspaper of the municipality or county. The notice shall be headed "Notice of Hearing Upon Applications for Sale of Alcoholic Beverages," shall state the time and place when and where the applications will be considered, and shall state that any person interested in the approval or rejection of any application may appear and be heard. The notice shall be published at least one week before the hearing. At the hearing, the body shall consider each application and any objection to the application before making a final decision on an application.
Source: SL 1949, ch 17, § 2; SDC Supp 1960, § 5.0103-1; SL 2008, ch 37, § 144; SL 2018, ch 213, § 17.
35-2-5.1. Return of application disapproved by local governing body--Waiting period before new application.
If the governing body of the municipality or county does not approve the application, the governing body shall endorse on the application the reasons for the denial and return the application and fee to the applicant. No further application may be received from the applicant until after the expiration of one year from the date of a denied application. However, if the application was denied based on the suitability of the location for the license, no further application may be received from the applicant until after three months from the date of the denied application if the subsequent application is for a different location.
Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDCL §§ 35-4-32, 35-6-15; SL 1971, ch 211, § 16; SL 1992, ch 60, § 2; SL 1993, ch 263; SL 2010, ch 180, § 10; SL 2018, ch 213, § 18.
35-2-5.2. Approval of application by local governing body--Approval by secretary required--Deposit of fees.
If the governing body of the municipality or county approves the application, the governing body shall endorse the approval on the application. The licensee is entitled to operate under the license for the succeeding licensing year if the license is approved by the secretary. The license fee shall be deposited in the general fund of the municipality or county.
Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDCL §§ 35-4-32, 35-6-15; SL 1971, ch 211, § 16; SL 1980, ch 251, § 1; SL 1992, ch 60, § 2; SL 2010, ch 180, § 11; SL 2018, ch 213, § 19.
35-2-5.3. Local licensing authority--Denying reissuance of on-sale license not actively used.
The governing body of a municipality or county may deny reissuance of any on-sale license issued pursuant to subdivision 35-4-2(4), (6), or (13) to the same licensee or the licensee's transferee if the license has not been actively used by the applicant during the two years preceding the date of the current application. For purposes of this section, the term "actively used" means:
(1) The licensed premises was open to the public during regular business hours for the sale and consumption of distilled spirits for at least sixty days during the two preceding years; or
(2) The licensed premises is open five days per year and open to the public during a special event that has at least twenty-five thousand visitors.
The number of licenses held by a municipality pursuant to chapter 35-3 may not be less than the total number of licenses available to be issued as of July 1, 2010.
Source: SL 1975, ch 227; SL 2007, ch 206, § 1, eff. Jan. 1, 2009; SL 2010, ch 181, § 1; SL 2018, ch 213, § 20; SL 2024, ch 147, § 1.
35-2-6.1. State educational institutions--License to operate on campus prohibited--Exceptions.
No on-sale or off-sale license may be granted under this title to operate on the campus of any state educational institution. However, if the outside boundary of any state educational institution is extended, this section does not apply to any license granted previous to the extension.
This section does not apply to South Dakota Services for the Deaf.
For the purpose of this section, the term, campus, means only the area immediately surrounding the buildings used for classrooms, administrative offices, and housing.
Notwithstanding this section:
(1) An alcoholic beverage license may be issued pursuant to subdivisions 35-4-2(12) and (16) for the sole purpose of permitting the licensee to engage in the periodic retail sale of malt beverages, or wine, for consumption on-site, at a location and time authorized by the Board of Regents, which involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event at a facility used for performing arts, intercollegiate athletics, events, or receptions; and
(2) A special events license may be issued, pursuant to §§ 35-4-124, 35-4-124.1, and 35-4-125, for a special event authorized by the Board of Regents, which involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event.
Source: SDC 1939, §§ 5.0204 (7), 5.0303 (7); SL 1951, ch 10; SDCL §§ 35-4-17, 35-6-12; SL 1971, ch 211, § 24; SL 1974, ch 246, § 1; SL 1979, ch 245; SL 1980, ch 252; SL 1984, ch 247; SL 2016, ch 187, § 1; SL 2018, ch 213, § 21; SL 2023, ch 62, § 20.
35-2-6.2. Character requirements for licensees.
Any licensee under this title shall be a person of good moral character, never convicted of a felony, and, if a corporation, the managing officers of the corporation shall meet the same qualifications.
Source: SDC 1939, §§ 5.0204 (10) (c), 5.0303 (2); SDCL §§ 35-4-26, 35-6-4; SL 1971, ch 211, § 25; SL 2018, ch 213, § 22.
35-2-6.3. Ownership or lease of premises required of licensees--Ownership of business.
Any manufacturer, wholesaler, or retailer licensee under this title shall be the owner or actual lessee of the premises where the business is conducted and the sole owner of the business operated under the license. However, this section does not apply to a special event licensee issued a temporary license pursuant to § 35-4-124.
Source: SDC 1939, §§ 5.0204 (10) (d), (e), 5.0303 (3); SDCL §§ 35-4-27, 35-4-28, 35-6-7; SL 1971, ch 211, § 26; SL 2018, ch 213, § 23.
35-2-6.4. Manufacturers and wholesalers prohibited from engaging in retail business--Violation as misdemeanor.
No manufacturer or wholesaler licensee under this title nor any officer, director, stockholder, agent, or employee thereof or any relative of the licensee, officer, director, stockholder, agent, or employee may be in any way financially interested, either directly or indirectly, or participate in the operation of the business of any retailer licensee other than by reason of sales to the licensee. A retailer who is a party to any action prohibited by this section is guilty of a Class 2 misdemeanor.
Source: SDC 1939, §§ 5.0118, 5.0242 (1) as enacted by SL 1947, ch 22; SL 1949, ch 16; SDCL §§ 35-4-53, 35-8-11; SL 1971, ch 211, § 27; SL 1985, ch 290; SL 1991, ch 298, § 2; SL 1992, ch 158, § 56; SL 2018, ch 213, § 24; SL 2019, ch 162, § 1.
35-2-6.8. Manufacturers and wholesalers permitted to pour or serve at certain events.
Notwithstanding the provisions of § 35-2-6.4 or 35-4-52, a licensed manufacturer or wholesaler may pour or serve alcoholic beverages at an event conducted by any civic, charitable, educational, fraternal, or veterans organization licensed pursuant to § 35-4-124.
Source: SL 2017, ch 165, § 1, eff. Mar. 14, 2017; SL 2018, ch 217, § 1.
35-2-6.9. Manufacturers and wholesalers permitted to enter into sponsorship or advertising agreement with certain retailers.
Notwithstanding the provisions of § 35-2-6.4 or 35-4-52, a manufacturer, wholesaler, or an agent of a manufacturer or wholesaler may enter into a sponsorship or advertising agreement with a retailer who is a civic, charitable, educational, fraternal, or veterans organization licensed pursuant to § 35-4-124, a public entity as defined by § 3-21-1, or an operator of property owned by a public entity for advertising at or sponsorship of property owned by the public entity.
Source: SL 2018, ch 218, § 1.
35-2-6.10. Manufacturers and wholesalers permitted to donate beverages to certain licensees .
Notwithstanding the provisions of § 35-2-6.4 or 35-4-52, a manufacturer or wholesaler may donate alcoholic beverages to any civic, charitable, educational, fraternal, or veterans organization licensed pursuant to § 35-4-124.
Source: SL 2018, ch 217, § 2.
35-2-7. Transfer of licenses--Affidavit as to bulk sale--Payment of taxes--Facts shown as to new location--Procedure and fee.
Any license granted under this title may be transferred to a new location or to another person. If the transfer is to another person, the licensee shall show in writing, under oath, that the licensee has made a bulk sale of the business operated under the license. The bulk sale may be conditioned upon the granting of a transfer of the license. The transferee shall make an application exactly as an original applicant, and the application shall be acted upon in the same manner as an original application. No transfer of any license to another person may be granted until all taxes incurred by the transferor as a result of the operation of the licensed premises, including municipal and state sales and use taxes, state reemployment assistance or unemployment insurance tax, or any other state tax, are paid or are not delinquent. No transfer of any license to another person may be granted until all property taxes which are the liability of the licensee levied on the licensed premises are paid or are not delinquent. No transfer of any license may be granted from an Indian tribe operating in Indian country controlled by the Indian tribe or from an enrolled tribal member operating in Indian country controlled by the enrolled tribal member's tribe until all use tax incurred as a result of the operation of the licensed premises by nonmembers, and any other state tax, has been remitted or is not delinquent. If the transfer is to a new location, the licensee shall make application showing all the relevant facts for the new location. The application shall be acted upon in the same manner as an original application. If a license is transferred, a fee of one hundred fifty dollars is required to continue the unexpired portion of the license.
Source: SDC 1939, § 5.0110; SL 1939, ch 11; SL 1980, ch 251, § 2; SL 1982, ch 269; SL 1990, ch 293, § 1; SL 2006, ch 191, § 1; SL 2018, ch 213, § 27; SL 2019, ch 216, § 35.
35-2-8. Continuation of business by representative of deceased licensee--Responsibility of representative--Bonds continued.
If an individual licensee under this title dies, the personal representative of the deceased licensee may succeed to all of the rights of the deceased licensee under the license. By operating under the license, the personal representative agrees to all of the terms and conditions of the license and is subject to all of the liabilities and responsibilities of the licensee. Any bond executed under this title includes the personal representative as a principal if the license passes to the personal representative.
Source: SDC 1939, § 5.0116; SL 1971, ch 211, § 17; SL 2008, ch 37, § 146; SL 2018, ch 213, § 28.
35-2-9. Sale of stock in trade on termination of license.
Any licensee authorized to deal in alcoholic beverages, upon termination of the license, may at any time within thirty days after the termination of the license sell the whole or any part of the alcoholic beverages included in the licensee's stock in trade at the time of the termination to any wholesaler licensed to sell the alcoholic beverages purchased.
Source: SDC 1939, § 5.0106; SL 2008, ch 37, § 147; SL 2010, ch 180, § 13; SL 2018, ch 213, § 29.
35-2-10. Violation as ground for revocation or suspension of license--Multiple licenses.
The secretary, in compliance with chapter 1-26, may revoke or suspend any license issued under this title upon proof of violation by the licensee, by the licensee's agents or employees, or by the manager or contractual operators of retail establishments and their agents or employees operating under a county or municipal license, of any of the following:
(1) Any provision of this title;
(2) Any rule promulgated pursuant to this title; or
(3) Any ordinance or regulation relevant to alcoholic beverage control adopted by the political subdivision issuing the license.
For any licensee with multiple alcoholic beverage licenses for the same premises, upon suspension or revocation of any license pursuant to this title, the licensee shall cease operation under all alcoholic beverage licenses held by the licensee for the same premises for the same period as the suspension or revocation.
Source: SDC 1939, § 5.0104; SL 1971, ch 211, § 18; revised pursuant to SL 1972, ch 15, § 4; SL 1993, ch 264; SL 2008, ch 37, § 148; SL 2010, ch 180, § 14; SL 2015, ch 196, § 25, eff. Jan. 1, 2016; SL 2018, ch 213, § 30.
35-2-10.1. Conditions under which license may not be revoked or suspended for sale to persons under twenty-one--Penalty.
No retail license may be revoked or suspended because of a violation of any statute, ordinance, rule, or regulation prohibiting the sale or service of any alcoholic beverage to a person under the age of twenty-one years if the violation was committed by an employee or agent of the licensee and the licensee has not had more than two violations of any statute, ordinance, rule, or regulation prohibiting the sale or service of an alcoholic beverage to a person under the age of twenty-one years on the premises where the violation occurred in the previous twenty-four months.
If the licensee meets the requirements of the conditions of this section, the secretary shall impose a civil penalty of five hundred dollars for a first violation and one thousand dollars for a second violation. However, if the employee or agent has not been certified by a nationally recognized training program approved by the department that provides instruction on techniques to prevent persons under the age of twenty-one years from purchasing or consuming alcoholic beverages, the secretary shall impose a civil penalty of one thousand dollars for a first violation and two thousand dollars for a second violation.
A licensee may request an administrative hearing pursuant to chapter 1-26 to contest the imposition of a civil penalty.
Source: SL 2000, ch 177, § 1; SL 2003, ch 189, § 1; SL 2005, ch 198, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2018, ch 213, § 31.
35-2-10.2. Directory of training programs to be maintained on department website--Burden to show attendance for penalty reduction.
The department shall maintain on its public internet website, a directory listing all nationally recognized training programs that are approved by the department. Any licensee making a prohibited sale or service of an alcoholic beverage to a person under the age of twenty-one years has the burden of proof to show that the licensee's employees have attended an approved alcohol training program to be eligible for any reduction in the penalty imposed for the violation.
Source: SL 2005, ch 197, § 1; SL 2018, ch 213, § 32.
35-2-10.3. Compliance checks of prohibited alcohol sales to persons under age twenty-one.
Any enforcement entity that conducts compliance checks using underaged informants to determine if a licensee will sell an alcoholic beverage to a person under the age of twenty-one shall inform the licensee in writing of the results of any compliance check within forty-eight hours after the compliance check takes place. No licensed premises may be subject to more than one compliance check within a forty-eight hour period.
Source: SL 2005, ch 198, § 1; SL 2018, ch 213, § 33.
35-2-11.1. Recommendation by local governing body for suspension or revocation of license--Grounds--Action by secretary.
The governing body of a municipality or county may recommend to the secretary following a hearing that any license issued under this title be suspended or revoked for violation of any of the provisions of this title or for violations of any ordinance or regulation of the governing body relevant to alcoholic beverage control that occurs on the premises of the licensee. Upon receipt of the recommendation, the secretary shall proceed as provided in §§ 35-2-10 and 35-2-21.
Source: SL 1977, ch 287, § 1; SL 2010, ch 180, § 15; SL 2018, ch 213, § 34.
35-2-11.2. Notice of hearing prior to local governing body's recommendation of suspension or revocation.
Any action taken by the governing body of a municipality or county pursuant to § 35-2-11.1 shall be preceded by notification to the licensee, at the address given on the license, at least thirty days in advance of the date set for public hearing. Notice of public hearing shall be published in the official newspaper of the municipality or county at least one week before the hearing in a form approved by the governing body.
Source: SL 1977, ch 287, § 2; SL 1992, ch 60, § 2; SL 2018, ch 213, § 35.
35-2-12. Investigation--Revocation or suspension proceedings.
If the secretary receives information of a violation by any licensee of any provision of this title, the secretary shall investigate the alleged violation. If there is substantial evidence to support that a violation of any provision of this title has occurred, the secretary shall proceed in accordance with the provisions of §§ 35-2-10, 35-2-10.1, and 35-2-21.
Source: SDC 1939, § 5.0104; SL 1971, ch 211, § 19; SL 2008, ch 37, § 149; SL 2018, ch 213, § 36; SL 2021, ch 49, § 15.
35-2-13. Right to hearing on action on application or license.
An applicant or licensee under this title or any interested person or governing body has a right to a hearing in relation to any action taken upon the application or license. The hearing shall be held in the county where the license has been applied for or issued under the provisions of chapter 1-26. However, if the parties agree, a hearing to determine whether the secretary may suspend or revoke a license may be held at a location other than the county where the license has been applied for or issued.
Source: SDC 1939, § 5.0104; SDCL § 35-2-18; SDCL § 35-2-13 as enacted by SL 1971, ch 211, § 20; SL 2001, ch 193, § 1; SL 2010, ch 180, § 16; SL 2018, ch 213, § 37.
35-2-19. Termination of rights after revocation of license.
Upon service of notice of a decision or order for revocation of the license on the licensee, all of the licensee's rights under the license terminate, except in the event of a stay on appeal.
Source: SDC 1939, § 5.0104; SL 1971, ch 211, § 21; SL 2008, ch 37, § 150; SL 2018, ch 213, § 38.
35-2-20. Waiting period for new license after revocation--Application by relatives or employees.
No licensee under this title, whose license is revoked, may be granted any license under this title for one year after the revocation. If any relative of any such former licensee or any of the former licensee's employees or former employees, applies for any such license before the one-year period has elapsed, the license may be granted only upon affirmative and satisfactory proof that the former licensee has no interest in the business.
Source: SDC 1939, § 5.0119; SL 1971, ch 211, § 22; SL 2008, ch 37, § 151; SL 2010, ch 180, § 17.
35-2-21. Suspension in lieu of revocation of license--Maximum period--Compromise settlement.
If a violation is established in any proceeding under this title, but the secretary determines due to the nature and the circumstances of the violation, a suspension of the license is adequate, the secretary may, instead of revoking the license, suspend the license for a period not exceeding sixty days. During the period of the suspension, the licensee may not exercise any rights or privileges under the license. The secretary may, in lieu of suspending or revoking the license, accept a monetary settlement of any proceeding under this title. The amount of the settlement may not exceed seventy-five thousand dollars. The secretary may also recover the actual costs of investigation and prosecution.
Source: SDC 1939, § 5.0104; SL 1971, ch 211, § 23; SL 1991, ch 296; SL 2008, ch 37, § 152; SL 2010, ch 180, § 18; SL 2015, ch 196, § 24, eff. Jan. 1, 2016; SL 2018, ch 213, § 39.
35-2-24. Requirements for reissuance of license.
No license granted under this title may be reissued until all taxes incurred by the licensee as a result of the operation of the licensed premises, including municipal and state sales and use taxes, state reemployment assistance or unemployment insurance tax, or any other state tax, are paid or are not delinquent. No license granted under this title may be reissued until all property taxes which are the liability of the licensee levied on the licensed premises are paid or are not delinquent. No license granted under this title may be reissued to an Indian tribe operating in Indian country controlled by the Indian tribe or to an enrolled tribal member operating in Indian country controlled by the enrolled tribal member's tribe until the Indian tribe or enrolled tribal member remits to the Department of Revenue all use tax incurred by nonmembers as a result of the operation of the licensed premises, and any other state tax has been remitted or is not delinquent.
Source: SL 1990, ch 293, § 2; SL 2006, ch 191, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2019, ch 216, § 36.
35-2-25. Sales or use tax licenses.
No license granted pursuant to this title may be issued unless the applicant has first obtained a sales tax license pursuant to chapter 10-45, if applicable, or a use tax license pursuant to chapter 10-46, if applicable.
Source: SL 1994, ch 284; SL 2006, ch 191, § 3, eff. Jan. 1, 2007; SL 2010, ch 180, § 19; SL 2011, ch 172, § 2; SL 2018, ch 213, § 40.
35-2-26. Licensees or employees charged with certain felonies may be prohibited from licensed premises.
Any licensee or employee of a licensee who is charged with a felony offense involving a minor, a crime of violence pursuant to subdivision 22-1-2(9), or a felony drug-related offense on the licensed premises may, as a condition of bond, be prohibited from entering onto the licensed premises.
Source: SL 2012, ch 191, § 1.
35-3-1
Police power of municipality--Territorial jurisdiction.
35-3-2 to 35-3-5. Repealed.
35-3-6
Municipalities and townships to which local option provisions apply.
35-3-7
Questions subject to local option--On-sale licensing--Municipality procuring
license.
35-3-8
Petition for election on local option--Number of signers required--Filing.
35-3-9
Election laws applicable to local option elections.
35-3-10
Form of question on permitting on-sale licenses.
35-3-11
On-sale licenses permitted when approved by voters--Termination of licenses
when disapproved.
35-3-12
Form of questions on procurement of license by municipality.
35-3-13
Procurement of license by municipality when approved by voters--Termination of
other licenses.
35-3-14
Repealed.
35-3-15
Acquisition of stock and equipment from licensee forced out of business by
acquisition of municipal license.
35-3-16
Arbitration of price paid to licensee forced out of business--Maximum price and
inventory.
35-3-17
Repealed.
35-3-18
Municipal establishment supervised by governing body--Establishment of prices.
35-3-19
Receipts from municipal establishment deposited with finance officer--Disbursement of funds.
35-3-20
Purchase invoices for municipal supplies filed with auditor or finance officer--Contents.
35-3-21
Accounting for municipal transactions.
35-3-22
Repealed.
35-3-23
Form of question on renewal of license for municipal business.
35-3-24
Governing body may not apply for renewal if disapproved at election.
35-3-25
Liquidation of municipal business on disapproval by voters.
35-3-26
Waiting period between local option elections.
35-3-27
Refund of license fee on termination of license by local option election.
35-3-28
Credit purchases may be prohibited by lessee of license.
35-3-1. Police power of municipality--Territorial jurisdiction.
Any incorporated municipality may provide by ordinance for police supervision and enforcement of the provisions of this title as to any licensee who operates within one mile of the territorial limits of the municipality.
Source: SDC 1939, § 5.0108 (4); SL 2008, ch 37, § 153.
35-3-6. Municipalities and townships to which local option provisions apply.
The term, municipality, as used in §§ 35-3-7 to 35-3-27, inclusive, includes any incorporated municipality and any organized township in which an unincorporated town is situated.
Source: SDC 1939, § 5.0231; SL 1972, ch 199; SL 2008, ch 37, § 154.
35-3-7. Questions subject to local option--On-sale licensing--Municipality procuring license.
Any municipality may, by vote of its electors, as provided in §§ 35-3-8 to 35-3-23, inclusive, determine whether or not alcoholic beverages, except malt beverages, may be sold within the municipality by on-sale dealers. The municipality may also in the same manner determine whether the municipality shall procure a license or licenses for the sale of alcoholic beverages, except malt beverages, at retail, or, if the municipality is engaged in such a business, whether the license or licenses shall be renewed.
Source: SDC 1939, § 5.0232; SL 1971, ch 211, § 30; SL 1987, ch 261, § 4; SL 2008, ch 37, § 155.
35-3-8. Petition for election on local option--Number of legal voters required--Filing.
Fifteen percent of the legal voters residing in a municipality may petition for a special election to determine any question subject to local option pursuant to § 35-3-7. If a municipality has a mayor, the number of legal voters is the total number voting in the last preceding election of a mayor, and in other municipalities the number of legal voters is the total number voting in the last preceding regular municipal or township election. The petition shall set forth the question the petitioners submitted, and shall be filed with the city finance officer or township clerk.
Source: SDC 1939, § 5.0233; SL 2018, ch 213, § 41.
35-3-9. Election laws applicable to local option elections.
Except as otherwise expressly provided in this chapter, the form of a petition under § 35-3-8, the manner of calling the election, the provision of notice of the election, the conduct of the election, and the canvass and return of votes shall be as set forth by the provisions of this code relative to elections in incorporated municipalities for referred or initiated ordinances. However, for such elections in organized townships, the election shall be called, notice of the election given, and the election held as set forth in the provisions of this code relative to special township meetings.
Source: SDC 1939, § 5.0233; SL 2008, ch 37, § 156.
35-3-10. Form of question on permitting on-sale licenses.
The form of submitting the question of whether alcoholic beverages, except malt beverages, are to be sold within the municipality by on-sale dealers, to be voted upon at a special election pursuant to §§ 35-3-8 and 35-3-9, shall be "Shall on-sale licenses be permitted within this municipality?"
Source: SDC 1939, § 5.0234 (1); SL 1971, ch 211, § 31; SL 1987, ch 261, § 5.
35-3-11. On-sale licenses permitted when approved by voters--Termination of licenses when disapproved.
If, at the election on the question specified in § 35-3-10, the majority vote is in the affirmative, on-sale licenses to operate in the municipality may be granted. If the majority vote on the question is in the negative, all on-sale licenses are terminated thirty days after the canvass of the vote. Nothing in this section precludes the question required by § 35-3-10 from being resubmitted in any subsequent election after the waiting period required by § 35-3-26.
Source: SDC 1939, § 5.0236; SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 2008, ch 37, § 157; SL 2018, ch 213, § 42.
35-3-12. Form of questions on procurement of license by municipality.
The form of submitting the question of whether the municipality is to procure a license or licenses for sale of alcoholic beverages, except malt beverages, to be voted upon at a special election pursuant to §§ 35-3-8 and 35-3-9, shall be:
(1) "Shall an off-sale license for the sale of alcoholic beverages, except malt beverages, be issued to ________ (naming the municipality or organized township)?"
(2) "Shall an on-sale license for the sale of alcoholic beverages, except malt beverages, be issued to ________ (naming the municipality or organized township)?"
Source: SDC 1939, § 5.0234 (2); SL 1959, ch 10, § 1; SL 1971, ch 211, § 32; SL 1987, ch 261, § 6.
35-3-13. Procurement of license by municipality when approved by voters--Termination of other licenses.
If the majority vote is in the affirmative on the election question provided in subdivisions 35-3-12(1) and (2), the governing body of the municipality shall make application for the license or licenses. The application or applications shall be filed with the secretary, and the secretary shall issue the license or licenses. Any similar license in the municipality shall terminate thirty days after the canvass of the vote.
Source: SDC 1939, § 5.0236; SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 1971, ch 211, § 33; SL 2003, ch 188, § 2; SL 2018, ch 213, § 43.
35-3-15. Acquisition of stock and equipment from licensee forced out of business by acquisition of municipal license.
The municipality shall acquire the stock, equipment, and fixtures from any licensee whose license has been terminated by reason of the municipal election by which the municipality was authorized to engage in such business, such acquisition to be by purchase, condemnation, or arbitration.
Source: SDC 1939, § 5.0236 as added by SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 1971, ch 211, § 34.
35-3-16. Arbitration of price paid to licensee forced out of business--Maximum price and inventory.
If the parties referred to in § 35-3-15 agree to arbitration, the board of arbitration shall consist of one arbitrator to be selected by the municipality, one selected by the former licensee, and a third selected by both of the selected arbitrators. The determination of any arbitrators shall govern. However, no municipality as defined in § 35-3-6 is bound to purchase any fixtures, equipment, or stock acquired by any former licensee after the filing of the petition submitting the question specified in § 35-3-12. The determination as to value of the fixtures, equipment, and stock is binding on the parties. However, the value may not exceed the invoice price plus any federal tax paid thereon subsequent to its acquisition, and the aggregate of the stock may not exceed the level of the average inventory of such stock carried by the dealer for the two years immediately preceding the holding of the election providing for the municipal sale of alcoholic beverages under chapter 35-4.
Source: SDC 1939, § 5.0236 as added by SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 2008, ch 37, § 158.
35-3-18. Municipal establishment supervised by governing body--Establishment of prices.
Every municipal liquor establishment shall be operated and conducted under the direction of the governing body of the municipality. The governing body may fix the prices to be charged on all sales of liquor. If the prices are fixed by the governing body, the manager and the manager's assistants shall conform to the prices in the making of all sales.
Source: SL 1959, ch 14; SDC Supp 1960, § 45.1439; SL 2008, ch 37, § 159.
35-3-19. Receipts from municipal establishment deposited with finance officer--Disbursement of funds.
The gross receipts derived from the operation of any municipal liquor establishment licensed and operated pursuant to chapter 35-4 shall be remitted as promptly as circumstances permit to the custody of the municipal finance officer, and such funds shall be disbursed by said finance officer upon warrants of the municipality pursuant to presentation of verified vouchers as provided by law for other municipal expenditures.
Source: SL 1959, ch 14; SDC Supp 1960, § 45.1439; SL 1987, ch 261, § 7.
35-3-20. Purchase invoices for municipal supplies filed with auditor or finance officer--Contents.
A copy of each purchase invoice for liquor store supplies delivered to and signed by the municipal liquor store manager or the manager's assistant shall be filed monthly with the municipal auditor or finance officer covering purchases for each establishment. The invoice shall clearly distinguish between off-sale and on-sale purchases and shall indicate the license classification under which all purchases are made.
Source: SL 1959, ch 14; SDC Supp 1960, § 45.1439; SL 2008, ch 37, § 160.
35-3-21. Accounting for municipal transactions.
Every municipality engaged in the sale of alcoholic beverages, pursuant to the provisions of chapter 35-4, wherein a business under an on-sale and off-sale license is conducted, shall make a separate accounting of all transactions involving purchases, sales, and inventories pertaining to the business conducted under each of the licenses. The municipality shall maintain appropriate records and methods of accounting for an accurate determination of the sales returns and gross profits resulting from the operation of the business under each of the licenses.
Source: SL 1959, ch 14; SDC Supp 1960, § 45.1439; SL 1971, ch 211, § 35; SL 1987, ch 261, § 8; SL 2008, ch 37, § 161.
35-3-23. Form of question on renewal of license for municipal business.
The form of submitting the question of whether a license or licenses to the municipality shall be renewed, to be voted upon at a special election pursuant to §§ 35-3-8 and 35-3-9, shall be:
(1) "Shall the present off-sale license for the sale of alcoholic beverages, except malt beverages, held by ________ (naming municipality or organized township) be renewed?"
(2) "Shall the present on-sale license for the sale of alcoholic beverages, except malt beverages, held by ________ (naming municipality or organized township) be renewed?"
Source: SDC 1939, § 5.0234 (3); SL 1959, ch 10, § 2; SL 1971, ch 211, § 37; SL 1987, ch 261, § 9.
35-3-24. Governing body may not apply for renewal if disapproved at election.
If, at a special election on the questions specified in subdivision 35-3-23(1) or (2), the majority vote is in the negative on either question, the governing body of the municipality may not apply for the renewal of the off-sale license or licenses.
Source: SDC 1939, § 5.0236; SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 1971, ch 211, § 38; SL 2008, ch 37, § 162; SL 2018, ch 213, § 44.
35-3-25. Liquidation of municipal business on disapproval by voters.
If the result of an election held after the establishment of a business pursuant to this chapter requires the municipality to cease operation of the business, or any part of the business, the governing board of the municipality may liquidate the business and the assets of the business in a manner determined by resolution of the governing board, not inconsistent with the provisions of this title.
Source: SDC 1939, § 5.0237; SL 2008, ch 37, § 163.
35-3-26. Waiting period between local option elections.
If any question specified in this chapter has been submitted to the voters of a municipality, the same question may not be submitted within one year.
Source: SDC 1939, § 5.0235; SL 2008, ch 37, § 164; SL 2018, ch 213, § 45.
35-3-27. Refund of license fee on termination of license by local option election.
If an existing license is terminated as the result of a special election, a pro rata portion of the license fee shall be refunded to the licensee according to the portion of the license period that has not elapsed upon the termination. The refund shall be made by the state and the municipality pro rata according to the portions of the fee retained respectively by the state and the municipality.
Source: SDC 1939, § 5.0236; SL 1951, ch 7; SL 1953, ch 11; SL 1959, ch 10, § 3; SL 2008, ch 37, § 165.
35-3-28. Credit purchases may be prohibited by lessee of license.
A municipality which has a municipal alcoholic beverage license may prohibit a lessee of such license from purchasing alcoholic beverages on credit.
Source: SL 1990, ch 294.
CHAPTER 35-4
SALE OF BEVERAGES
35-4-1 Beverages to which chapter applies.
35-4-2 Classes of licenses enumerated--Fees.
35-4-2.1 35-4-2.1. Repealed by SL 2018, ch 213, § 47.
35-4-2.2 35-4-2.2. Repealed by SL 2008, ch 182, § 2.
35-4-2.3 35-4-2.3. Repealed by SL 2010, ch 180, § 20.
35-4-2.4 Eligibility of municipality for wine, cider, or malt beverage license.
35-4-2.5 35-4-2.5. Repealed by SL 2018, ch 213, § 49.
35-4-2.6 35-4-2.6. Repealed by SL 1990, ch 30, § 9.
35-4-2.7 35-4-2.7. Repealed by SL 2018, ch 213, § 50.
35-4-2.8 Possession of more than one license--Exercise of privileges.
35-4-2.9 35-4-2.9. Repealed by SL 2018, ch 219, § 2.
35-4-2.10 35-4-2.10. Repealed by SL 2009, ch 177, § 8.
35-4-2.11 Distribution of license and transfer fees and penalties.
35-4-2.12 Regulation of alcoholic beverages aboard conveyances.
35-4-3 35-4-3. Repealed by SL 1971, ch 211, § 121.
35-4-4 35-4-4. Repealed by SL 2017, ch 164, § 2.
35-4-4.1 35-4-4.1. Repealed by SL 2018, ch 213, § 53.
35-4-5 35-4-5. Repealed by SL 1971, ch 211, § 121.
35-4-5.1 Manufacturers and retailers may not be granted wholesale license.
35-4-5.2 35-4-5.2 to 35-4-5.4. Repealed by SL 1971, ch 211, § 121.
35-4-5.5 35-4-5.5. Repealed by SL 2010, ch 180, § 24.
35-4-6 Repealed
35-4-7 35-4-7 to 35-4-9. Repealed by SL 1971, ch 211, § 121.
35-4-10 Number of off-sale licenses restricted by population.
35-4-10.1 35-4-10.1. Repealed by SL 1971, ch 211, § 121.
35-4-10.2 Off-sale licensees permitted to provide free samples--No additional license required--Restrictions--Violation as misdemeanor.
35-4-10.3 Manufacturers and wholesalers permitted to provide samples on licensed retailer premises.
35-4-11 Municipal determination of number of licenses and amount of fees--Maximum number of on-sale licenses.
35-4-11.1 Counties--Number of licenses and amount of fees--Number restricted by population--Denial of reissuance.
35-4-11.2 Convention facility on-sale licenses issued by municipality or county on behalf of improvement district.
35-4-11.3 35-4-11.3. Repealed by SL 2010, ch 180, § 30.
35-4-11.4 35-4-11.4, 35-4-11.5. Repealed by SL 2010, ch 185, §§ 3, 4.
35-4-11.6 35-4-11.6. Repealed by SL 2018, ch 213, § 61.
35-4-11.7 35-4-11.7, 35-4-11.8. Repealed by SL 2010, ch 185, §§ 5, 6.
35-4-11.9 35-4-11.9, 35-4-11.10. Repealed by SL 2018, ch 219, §§ 3, 4.
35-4-11.11 Additional convention facility licenses authorized.
35-4-11.12 On-sale licenses for improvement districts.
35-4-11.13 Hunting preserve facility on-sale license.
35-4-12 35-4-12. Repealed by SL 1971, ch 211, § 121.
35-4-13 Continuation of on-sale license despite annexation by municipality or county--Exception to restrictions on number of licenses.
35-4-13.1 35-4-13.1. Repealed by SL 2018, ch 213, § 64.
35-4-14 On-sale license for publicly operated airport.
35-4-14.1 On-sale license--Municipal event center or recreation facility--Limitations--Authority to contract.
35-4-14.2 35-4-14.2 to 35-4-14.4. Repealed by SL 2010, ch 185, §§ 7 to 9.
35-4-15 35-4-15 to 35-4-18. Repealed by SL 1971, ch 211, § 121.
35-4-19 Licensed municipalities permitted to issue certain licenses--Operating agreements permitted.
35-4-19.1 Full-service restaurant on-sale license provisions applicable to municipalities and operating agreement holders.
35-4-20 35-4-20. Repealed by SL 1971, ch 211, § 121.
35-4-21 Contents of operating agreements.
35-4-22 Agreement for operation of municipal off-sale establishment.
35-4-22.1 License renewal of off-sale licensee outside of boundaries.
35-4-23 Contents of agreement for operation of municipal off-sale establishment.
35-4-24 35-4-24 to 35-4-40. Repealed by SL 1971, ch 211, § 121.
35-4-41 Duration and expiration of licenses--Full fee charged for part of year.
35-4-42 35-4-42, 35-4-43. Repealed by SL 1971, ch 211, § 121.
35-4-44 35-4-44. Repealed by SL 2018, ch 213, § 71.
35-4-45 Bonded warehouse permitted to store beverages--Additional bond required.
35-4-46 35-4-46. Repealed by SL 2018, ch 213, § 73.
35-4-47 Sources from which wholesalers may receive beverages.
35-4-48 35-4-48. Repealed by SL 2018, ch 213, § 75.
35-4-49 35-4-49. Repealed by SL 2018, ch 224, § 14.
35-4-50 Restrictions on sales by wholesalers.
35-4-51 35-4-51. Repealed by SL 1971, ch 211, § 121.
35-4-52 Prohibited sales practices by manufacturers and wholesalers.
35-4-53 35-4-53 to 35-4-59. Repealed by SL 1971, ch 211, § 121.
35-4-60 Retailers permitted to purchase only from wholesalers.
35-4-60.1 Wholesalers to purchase only from brand owner or brand owner's agent or licensed wholesaler.
35-4-60.2 Purchase from municipality of malt beverages by certain licensees--Price charged.
35-4-60.3 Certain licensees permitted to purchase from wholesalers and retailers.
35-4-61 35-4-61. Repealed by SL 2018, ch 213, § 81.
35-4-62 35-4-62 to 35-4-65. Repealed by SL 1971, ch 211, § 121.
35-4-66 Restrictions on transportation of beverages.
35-4-67 Restrictions on importation of beverages.
35-4-68 35-4-68 to 35-4-70. Repealed by SL 1971, ch 211, § 121.
35-4-71 Sale of alcohol by dispensers restricted.
35-4-72 35-4-72, 35-4-73. Repealed by SL 1971, ch 211, § 121.
35-4-74 Delivery prohibited except by off-sale delivery licensees--Violation as misdemeanor.
35-4-75 Service by on-sale licensees restricted to premises--Violation as misdemeanor.
35-4-75.1 35-4-75.1 to 35-4-77. Repealed by SL 1971, ch 211, § 121.
35-4-77.1 Sale or consumption of alcoholic beverages on sidewalk abutting licensed premises permitted by ordinance.
35-4-78 Sale of alcoholic beverage to obviously intoxicated person prohibited--Violation as misdemeanor--Civil liability.
35-4-78.1 35-4-78.1 to 35-4-78.4. Repealed by SL 2010, ch 180, §§ 37 to 40.
35-4-79 Persons under twenty-one years old not permitted to loiter on on-sale or off-sale premises or to sell, serve, or consume beverages--Violation as misdemeanor.
35-4-79.1 35-4-79.1, 35-4-79.2. Repealed by SL 2018, ch 213, §§ 87, 89.
35-4-79.3 35-4-79.3. Repealed by SL 2010, ch 183, § 6.
35-4-79.4 Exception to prohibition on sales or service by persons under twenty-one years old--Violation as misdemeanor.
35-4-80 35-4-80. Repealed by SL 1971, ch 211, § 121.
35-4-81 Restriction by ordinance of sales, service, and consumption on certain days.
35-4-81.1 35-4-81.1. Repealed by SL 2010, ch 183, § 2.
35-4-81.2 Times when beverage sales, service, and consumption prohibited--Violation as misdemeanor.
35-4-82 35-4-82 to 35-4-84. Repealed by SL 1971, ch 211, § 121.
35-4-85 35-4-85. Repealed by SL 2018, ch 213, § 92.
35-4-86 35-4-86. Repealed by SL 2010, ch 180, § 44.
35-4-87 35-4-87, 35-4-88. Repealed by SL 1971, ch 211, § 121.
35-4-89 35-4-89. Repealed by SL 1992, ch 158, § 61.
35-4-90 35-4-90 to 35-4-92. Repealed by SL 1971, ch 211, § 121.
35-4-93 35-4-93. Repealed by SL 2010, ch 180, § 45.
35-4-94 35-4-94 to 35-4-98. Repealed by SL 2018, ch 213, §§ 93 to 97.
35-4-99 Display of health warning sign--Violation as petty offense.
35-4-100 Health warning sign--Contents--Copy provided to licensees.
35-4-101 Minibars authorized in hotels or motels.
35-4-102 Minibars--Beverage sizes--Age limit--Access.
35-4-103 Annual additional license fee for video lottery machines on licensed premises.
35-4-104 35-4-104, 35-4-105. Repealed by SL 2010, ch 185, §§ 10, 11.
35-4-106 License at county or municipal golf course.
35-4-107 Resort facility on-sale license--Resort facility defined--Terms of license--Application.
35-4-108 35-4-108, 35-4-109. Repealed by SL 2010, ch 185, §§ 12, 13.
35-4-110 Definition of terms pertaining to full-service restaurant on-sale licenses.
35-4-111 Full-service restaurant on-sale licenses.
35-4-112 Documentation in support of initial application for full-service restaurant on-sale license.
35-4-113 Renewal of full-service restaurant on-sale license--Annual report.
35-4-114 On-premise consumption required.
35-4-115 Advertisement of full-service restaurant.
35-4-116 Fees for additional on-sale licenses to full-service restaurants.
35-4-117 Price of full-service restaurant on-sale license set at or above current fair market value.
35-4-118 Registry of full-service restaurant on-sale licenses.
35-4-119 Registration that full-service restaurant on-sale license is for sale.
35-4-120 Certain licensees to report amount paid for other licenses--Objection to report--Hearing--Appeal.
35-4-121 35-4-121, 35-4-122. Repealed by SL 2018, ch 213, §§ 103, 104.
35-4-123 County fairground on-sale license.
35-4-124 Special alcoholic beverage licenses--Special events--Duration--Hearing--Local government rules required.
35-4-124.1 Donation of beverages to civic, charitable, educational, fraternal, or veterans organization holding special events license.
35-4-125 Application for special alcoholic beverage license--Fee.
35-4-126 35-4-126. Repealed by SL 2018, ch 223, § 26.
35-4-127 Off-sale delivery license.
35-4-128 Manufacture, sale, or possession of powdered, condensed, or concentrated alcohol prohibited--Exceptions--Violation as misdemeanor.
35-4-129 Sale of alcoholic beverages below cost prohibited--Exception.
35-4-130 Quantity discounts and cash discounts permitted.
35-4-1. Beverages to which chapter applies.
The provisions of this chapter, unless the context otherwise clearly requires, shall be construed to relate to all alcoholic beverages.
Source: SDC 1939, § 5.0201; SL 1971, ch 211, § 39; SL 1987, ch 261, § 15.
35-4-2. Classes of licenses enumerated--Fees.
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.
Source: SDC 1939, § 5.0203; SL 1945, ch 17, § 2; SL 1947, ch 19; SDC Supp 1960, § 5.0204 (13), (14) as enacted by SL 1961, ch 14; SL 1964, ch 9; SL 1965, ch 12; SL 1966, ch 10; SDC Supp 1960, § 5.0204 (15) as enacted by SL 1967, ch 6; SL 1968, ch 2, § 1; SL 1970, ch 206, § 1; SL 1970, ch 207, § 1; SL 1971, ch 211, §§ 40, 41, 121; SL 1973, ch 236, § 1; SL 1975, ch 228; SL 1981, ch 270, § 1; SL 1985, ch 291, §§ 1, 3, 4A; SL 1986, ch 300; SL 1987, ch 261, § 16; SL 1988, ch 292, § 1B; SL 1989, ch 312; SL 1990, ch 296; SL 1993, ch 265; SL 1994, ch 285, § 1; SL 1995, ch 207, § 2; SL 2001, ch 194, § 1; SL 2003, ch 190, § 1; SL 2003, ch 191, § 1; SL 2006, ch 194, § 12; SL 2008, ch 182, § 1; SL 2008, ch 183, § 1; SL 2009, ch 48, § 3; SL 2011, ch 172, § 1; SL 2014, ch 175, § 1; SL 2014, ch 176, § 1; SL 2017, ch 166, § 1; SL 2017, ch 169, § 2; SL 2018, ch 213, § 46; SL 2018, ch 215, § 4; SL 2018, ch 219, § 1; SL 2018, ch 222, § 11; SL 2018, ch 223, § 13; SL 2018, ch 224, § 11.
35-4-2.4. Eligibility of municipality for wine, cider, or malt beverage license.
Any municipality that holds an off-sale license under subdivision 35-4-2(5) is eligible for a license under either subdivision 35-4-2(12) or (16), or both. Any municipality that holds an on-sale license under chapter 35-4 is eligible for a license under either subdivision 35-4-2(12) or (16), or both.
Source: SL 1987, ch 261, § 39; SL 2010, ch 180, § 21; SL 2018, ch 213, § 48.
35-4-2.8. Possession of more than one license--Exercise of privileges.
Any retail licensee licensed under this chapter may also hold other retail license types issued pursuant to this chapter at the same licensed premises. A licensee holding two or more licenses pursuant to this section may exercise the privileges granted under each license.
Source: SL 1988, ch 292, § 1; SL 2008, ch 182, § 3; SL 2010, ch 183, § 7; SL 2018, ch 213, § 51.
35-4-2.11. Distribution of license and transfer fees and penalties.
Fifty percent of all license and transfer fees received pursuant to subdivision 35-4-2(16) shall remain in the municipality in which the licensee paying the fee is located. If the licensee is located outside the corporate limits of a municipality, fifty percent of the fees remain in the county in which the licensee is located. The remainder of all license and transfer fees and penalties received shall be credited to the state general fund.
Source: SL 2010, ch 180, § 50; SL 2011, ch 172, § 3; SL 2018, ch 213, § 52.
35-4-2.12. Regulation of alcoholic beverages aboard conveyances.
Any municipality may regulate the furnishing or consumption of alcoholic beverages aboard conveyances licensed pursuant to subdivisions 35-4-2(9).
Source: SL 2014, ch 175, § 2.
35-4-5.1. Manufacturers and retailers may not be granted wholesale license.
No manufacturer or retailer, or a copartner or a majority stockholder of a parent or subsidiary corporation or holder of a controlling interest in a manufacturer or retailer, may be granted a wholesale license or be granted a renewal of a wholesale license under this chapter.
Source: SL 1970, ch 211, § 1; SL 1971, ch 211, § 43; SL 2008, ch 37, § 166; SL 2010, ch 180, § 23; SL 2018, ch 213, § 54.
35-4-6. Repealed.
Source: SDC 1939, § 5.0204 (3); SL 1971, ch 211, § 45; SL 1980, ch 253; SL 1981, ch 270, § 2; SL 1987, ch 261, § 17; SL 2001, ch 194, § 2; SL 2010, ch 180, § 25; SL 2018, ch 213, § 55; SL 2021, ch 166, § 1.
35-4-10. Number of off-sale licenses restricted by population.
No more than two off-sale licenses issued pursuant to subdivisions 35-4-2(3) and (5) may be issued under this chapter to operate in a municipality of one thousand or less and not exceeding one license for every additional fifteen hundred of population or fraction thereof. The number of off-sale licenses may not be less than the total number of licenses allowable as of July 1, 1981, and that have never been revoked or not reissued.
For the purposes of this section, population is equal to the population estimates published by the United States Census Bureau for each even-numbered year, except for the decennial year. For a decennial year, population is equal to the amount determined by the decennial federal census. No license issued pursuant to this section that exceeds the number of licenses that would have been issued upon the decennial federal census may be denied or revoked solely by reason that the license issued exceeds the number of licenses authorized by the decennial federal census.
Source: SDC 1939, § 5.0204 (5); SL 1959, ch 6; SL 1971, ch 211, § 46; SL 1982, ch 271, § 3; SL 1987, ch 261, § 18; SL 1993, ch 266; SL 2010, ch 180, § 26; SL 2018, ch 213, § 56; SL 2022, ch 141, § 2.
35-4-10.2. Off-sale licensees permitted to provide free samples--No additional license required--Restrictions--Violation as misdemeanor.
A licensee holding a license pursuant to subdivision 35-4-2(3) or (5) may provide samples of malt beverages, wine, cider, distilled spirits, liqueurs, and cordials to the general public without obtaining an additional license. The licensee may only offer as samples the malt beverages, wine, cider, distilled spirits, liqueurs, and cordials that the licensee currently has in stock and is offering for sale to the general public. The malt beverage, wine, cider, distilled spirits, liqueur, and cordial samples shall be dispensed at no charge and shall be consumed on the licensed premises during the permitted hours of off-sale. No sample of malt beverage or cider may be larger than three fluid ounces. No sample of wine may be larger than fifty milliliters and no sample of distilled spirits, liqueur, or cordial may be larger than twenty-five milliliters. A violation of this section is a Class 1 misdemeanor.
Source: SL 1989, ch 317; SL 1998, ch 220, § 1; SL 2009, ch 176, § 1; SL 2017, ch 167, § 1; SL 2021, ch 165, § 2.
35-4-10.3. Manufacturers and wholesalers permitted to provide samples on licensed retailer premises.
A manufacturer or wholesaler, or an agent acting on behalf of either, may provide samples of malt beverages, wine, distilled spirits, liqueurs, and cordials to the general public. The samples shall be provided on the premises of a retailer licensed to sell the malt beverages, wine, distilled spirits, liqueurs, or cordials being offered and are subject to the limitations established pursuant to § 35-4-10.2.
Source: SL 2017, ch 167, § 2; SL 2018, ch 213, § 57.
35-4-11. Municipal determination of number of licenses and amount of fees--Maximum number of on-sale licenses.
If not fixed by ordinance, the governing body of any municipality may, before the second of September in each year, by resolution, determine the number of on-sale and off-sale licenses that the body will approve for the ensuing calendar year, and the fees to be charged for the various classifications of licenses. The number of on-sale licenses issued pursuant to subdivision 35-4-2(4) may not exceed three each for the first one thousand of population or fraction thereof and may not exceed one each for each additional one thousand five hundred of population or fraction thereof. The number of licenses allowable may not be less than the total number of licenses allowable or issued as of July 1, 1981, and that have never been revoked or not reissued. The municipal governing body shall also establish the fee for on-sale licenses pursuant to subdivisions 35-4-2(4) and (13). The fee applies to all the on-sale licenses issued in the ensuing calendar year.
For the purposes of this section, population is equal to the population estimates published by the United States Census Bureau for each even-numbered year, except for the decennial year. For a decennial year, population is equal to the amount determined by the decennial federal census. No license issued pursuant to this section that exceeds the number of licenses that would have been issued upon the decennial federal census may be denied or revoked solely by reason that the license issued exceeds the number of licenses authorized by the decennial federal census.
Source: SDC 1939, §§ 5.0203, 5.0204 (4); SL 1945, ch 20, § 1; SL 1947, ch 19; SL 1959, ch 5; SL 1961, ch 13; SL 1963, ch 10; SL 1964, ch 8; SDCL § 35-4-8; SL 1971, ch 211, § 46; SL 1973, ch 237, § 1; SL 1982, ch 271, § 1; SL 1985, ch 291, § 2; SL 1987, ch 261, § 19; SL 2003, ch 193, § 1; SL 2010, ch 180, § 27; SL 2018, ch 213, § 58; SL 2022, ch 141, § 1.
35-4-11.1. Counties--Number of licenses and amount of fees--Number restricted by population--Denial of reissuance.
If not previously fixed by ordinance or continuing resolution, the board of county commissioners shall, before the second of September in each year, determine the number of on-sale and off-sale licenses it will approve for the ensuing calendar year and the fees to be charged for the various classifications of licenses. The number of licenses issued pursuant to subdivision 35-4-2(6) may not exceed three for the first one thousand of population and may not exceed one for each additional fifteen hundred of population or fraction thereof. The number of licenses issued pursuant to subdivision 35-4-2(3) may not exceed two for the first one thousand of population and may not exceed one for each additional fifteen hundred of population or fraction thereof. No county off-sale license may be issued for a retailer located within three miles of the exterior boundary of an incorporated municipality. The population includes only those residing within the county, but outside the incorporated municipalities and improvement districts, created pursuant to chapter 7-25A, within the county. No licensee regularly licensed to do business on July 1, 1981, may be denied reissuance of a license in subsequent years solely by reason of any limitations, based upon population quotas, of the number of licenses authorized or established under the provisions of this title. Licenses issued to concessionaires, and lessees of the State of South Dakota, within the boundaries of state parks, prior to January 1, 1983, may be subtracted when calculating the total number of licenses permitted in this section.
Source: SL 1971, ch 211, § 47; SL 1982, ch 271, § 2; SL 1983, ch 264; SL 1987, ch 261, § 20; SL 1987, ch 262; SL 2000, ch 180, § 2; SL 2001, ch 194, § 3; SL 2010, ch 180, § 28; SL 2018, ch 213, § 59; SL 2021, ch 166, § 2.
35-4-11.2. Convention facility on-sale licenses issued by municipality or county on behalf of improvement district.
Notwithstanding the provisions of § 35-4-11, each municipality or a county on behalf of an improvement district created pursuant to chapter 7-25A may issue two convention facility on-sale licenses pursuant to subdivision 35-4-2(13) for convention facilities substantially constructed within the two years following issuance of the license or previously completed. If located in a municipality or improvement district with a population of twenty thousand or greater, the hotel-motel convention facility shall be used and kept open for the hosting of large groups of guests for compensation and shall have at least one hundred rooms that are suitable lodging accommodations and convention facilities with seating for at least four hundred persons. If located in a municipality or improvement district with a population of less than twenty thousand, the hotel-motel convention facility shall have at least forty rooms that are suitable lodging accommodations and convention facilities with seating for at least one hundred fifty persons.
If the population of a municipality or improvement district changes, the facility is only required to meet the criteria established by this section for the license at the time the license was originally issued.
Source: SL 1985, ch 291, § 4; SL 1988, ch 292, § 1C; SL 1993, ch 320, § 13 rejected by referendum held September 14, 1993; SL 2003, ch 194, § 1; SL 2010, ch 180, § 29; SL 2018, ch 213, § 60; SL 2018, ch 220, § 1; SL 2019, ch 163, § 1.
35-4-11.11. Additional convention facility licenses authorized.
In addition to the licenses provided by §§ 35-4-10, 35-4-11 and 35-4-11.2, any municipality that is authorized by chapter 42-7B to allow legal games of chance may issue up to five additional off-sale licenses to hotel-motel convention facilities and twelve additional convention facility on-sale licenses to hotel-motel convention facilities. A hotel-motel convention facility as used in this section is a facility that, in a bona fide manner, is used and kept open for the hosting of large groups of guests for compensation which has at least fifty rooms which are suitable lodging accommodations and convention facilities with seating for at least one hundred fifty persons. In a locally designated historical district, in a municipality that is authorized to conduct gaming by chapter 42-7B, any license created by this section is available to buildings subject to rehabilitation and restored according to the U.S. Department of the Interior standards for historic preservation projects codified in 36 C.F.R. Part 67 as of January 1, 1994. The rehabilitation project must have at least thirty rooms that are suitable lodging accommodations.
Source: SL 2000, ch 181, § 1; SL 2002, ch 172, § 1; SL 2024, ch 148, § 1.
35-4-11.12. On-sale licenses for improvement districts.
A county may issue on-sale licenses pursuant to subdivision 35-4-2(6) to be operated only within an improvement district, created pursuant to chapter 7-25A, within the county. The number of licenses issued in the improvement district may not exceed three for the first one thousand of population and may not exceed one for each additional fifteen hundred of population or fraction thereof.
Source: SL 2000, ch 180, § 1; SL 2018, ch 213, § 62.
35-4-11.13. Hunting preserve facility on-sale license.
Notwithstanding the provisions of § 35-4-11.1, each county may issue a hunting preserve facility on-sale license to any facility that has a shooting preserve operating permit issued pursuant to chapter 41-10 and a license issued by the Department of Health pursuant to chapter 34-18. The licensee may only sell alcoholic beverages during the shooting preserve season for consumption on the licensed premises to a guest as part of a hunting or shooting rental package for use of the shooting preserve's facilities and services. The licensee may not offer any alcoholic beverages for retail sale to other members of the general public. The facility shall have rooms that are suitable for lodging to host guests and equipment and seating for the preparation and serving of food for consumption on the premises. For the purposes of this section, the term, premises, means the same facility which is also licensed by the Department of Health pursuant to chapter 34-18. The license fee shall be five hundred dollars per season. The renewal fee shall be five hundred dollars per season. Any license issued pursuant to this section may not be transferred to a different location.
Source: SL 2011, ch 173, § 1.
35-4-13. Continuation of on-sale license despite annexation by municipality or county--Exception to restrictions on number of licenses.
If, due to the annexation of territory by any municipality or county, the premises of an on-sale licensee are transferred from one jurisdiction to another, the licensee may continue to legally operate until the expiration of the license. After the expiration of the license, the licensee may apply for renewal of the license to the governing body that has jurisdiction over the licensed premises. The license application may not be denied on the grounds that, by the issuance of the license, more on-sale licenses are in existence than is permitted by the limitations of this chapter.
Source: SDC 1939, § 5.0204 (14) as added by SL 1965, ch 13; SL 1971, ch 211, § 48; SL 2008, ch 37, § 168; SL 2018, ch 213, § 63.
35-4-14. On-sale license for publicly operated airport.
Notwithstanding the provisions of § 35-4-11 or 35-2-5.3, any county or municipality operating an airport under chapter 50-7 or a regional airport authority operating an airport under chapter 50-6A may by resolution, without an election, but subject to referendum, make application for the issuance of an on-sale license at the airport.
An on-sale license issued for a municipal airport may be renewed annually as long as the municipality or regional airport authority operates the airport. No on-sale license issued for a municipal airport after July 1, 2018, may be sold, transferred, or operated at any location other than the municipal airport.
Source: SDC 1939, § 5.0204 (15) as added by SL 1967, ch 6; SL 1971, ch 211, § 49; SL 1993, ch 267; SL 2018, ch 221, § 1.
35-4-14.1. On-sale license--Municipal event center or recreation facility--Limitations--Authority to contract.
Notwithstanding the provisions of § 35-4-11, any municipality may by resolution, without an election but subject to referendum, issue an on-sale license pursuant to subdivision 35-4-2(4) for use at any municipality-owned entertainment venue, event venue, event center, arena, performance hall, theater, outdoor amphitheater, convention center, stadium, athletic venue, recreation facility, municipal auditorium operated pursuant to chapter 9-52, or public convention hall operated pursuant to chapter 9-53. An on-sale license issued pursuant to this section must be used to support the primary public purpose of the municipality-owned facility during the hours the municipality-owned facility is open for its primary purpose. A license issued pursuant to this section must not be used at any municipality-owned facility for the primary purpose of only providing food and beverage services to the public. There is no fee for a license under this section. The governing body of any municipality that has obtained an on-sale license pursuant to this section may contract with any person or entity for purposes of providing food and beverage services at the municipality-owned facility and the use of any license issued pursuant to this section. A license issued pursuant to this section may not be transferred.
Source: SL 1976, ch 227; SL 1985, ch 293; SL 2008, ch 37, § 169; SL 2008, ch 186, § 1; SL 2016, ch 188, § 1, eff. Feb. 18, 2016; SL 2023, ch 132, § 1.
35-4-19. Licensed municipalities permitted to issue certain licenses--Operating agreements permitted.
Any municipality that has obtained a license under this title may issue licenses pursuant to subdivisions 35-4-2(12) and (16). If a municipality has been issued an off-sale license only, the governing body may approve or disapprove applications for on-sale licenses issued pursuant to subdivision 35-4-2(4). If a municipality has been issued an on-sale and off-sale license, the governing body may, by resolution, enter into an operating agreement with any person for the specific purpose of operating an on-sale establishment or an off-sale establishment, or both for the municipality.
Source: SDC 1939, § 5.0204 (9); SL 1959, ch 7, § 2; SL 1971, ch 211, § 50; SL 1978, ch 265; SL 1987, ch 261, § 21; SL 2007, ch 205, § 1; SL 2010, ch 180, § 31; SL 2018, ch 213, § 65.
35-4-19.1. Full-service restaurant on-sale license provisions applicable to municipalities and operating agreement holders.
The provisions of §§ 35-4-110 to 35-4-120, inclusive, apply to any municipality that enters into operating agreements pursuant to § 35-4-19. Each operating agreement holder is a license holder for the purposes of §§ 35-4-110 to 35-4-120, inclusive, and when applying these provisions.
Source: SL 2009, ch 177, § 11; SL 2018, ch 213, § 66.
35-4-21. Contents of operating agreements.
An operating agreement under § 35-4-19 shall include:
(1) The manager is responsible for all operating expenses, including taxes, insurance, and license fees, if any;
(2) The manager may dispense only alcoholic beverages supplied by the municipal off-sale establishment;
(3) The agreement shall be for a period not to exceed five years with the provision of one extension also not to exceed five years in the discretion of the governing body;
(4) The agreement may be canceled by ninety days' written notice by either party;
(5) The manager shall pay for all alcoholic beverages supplied by the municipal off-sale establishment, the actual cost price, the transportation charges and markup, and any additional compensation or fee as may be mutually agreed upon by both parties;
(6) A complete and detailed record shall be maintained by the municipality of all alcoholic beverages supplied the on-sale manager. All alcoholic beverages shall be evidenced by prenumbered invoices prepared in triplicate showing the date, quantity, brand, size, and actual cost as set forth in subdivision (5) of this section. The invoices shall bear the signature of the on-sale manager or the manager's authorized representative. One copy of the invoice shall be retained by the off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the municipal auditor or clerk. All copies shall be kept as permanent records and made available for reference and audit purposes.
Source: SDC 1939, § 5.0204 (9) (b) as added by SL 1959, ch 7, § 2; SL 1971, ch 211, § 51; SL 2008, ch 37, § 170; SL 2018, ch 213, § 67.
35-4-22. Agreement for operation of municipal off-sale establishment.
If a municipality has been issued an off-sale license only, the governing body may, by resolution, enter into an operating agreement with the manager of a legitimate operating business concern for the specific purpose of operating the off-sale establishment for the municipality.
Source: SDC 1939, § 5.0204 (9) (c) as added by SL 1961, ch 15; SL 1971, ch 211, § 52; SL 1985, ch 294; SL 1989, ch 315; SL 1996, ch 224, § 1; SL 2018, ch 213, § 68.
35-4-22.1. License renewal of off-sale licensee outside of boundaries.
An off-sale licensee applying for license renewal, to the governing body that has jurisdiction over the licensed premises, may not be denied the license on the grounds that the location of the premises is outside the boundaries of a municipality or an unincorporated platted area with a United States post office, if the licensee has held or had an interest in an off-sale license at a location outside the boundaries of a municipality on an unincorporated platted area with a United States post office for more than five years.
Source: SL 1996, ch 224, § 2; SL 2018, ch 213, § 69.
35-4-23. Contents of agreement for operation of municipal off-sale establishment.
An operating agreement pursuant to § 35-4-22 shall include at least the provisions required by subdivisions 35-4-21(1) to (4), inclusive, and (6), and shall also provide that the manager shall receive as full consideration under the agreement a percentage of the fixed markup from the off-sale establishment under his or her management as agreed upon by the governing board of the municipality and the manager after establishing a fixed markup in excess of the actual cost of all liquors supplied by the municipal off-sale licensee. The actual cost shall include cost price and transportation charges. The markup percentage shall be mutually agreed upon by both parties.
Source: SDC 1939, § 5.0204 (9) (c) as added by SL 1961, ch 15; SL 1971, ch 211, § 53; SL 2008, ch 37, § 171.
35-4-41. Duration and expiration of licenses--Full fee charged for part of year.
The period covered by licenses under this title is from twelve o'clock midnight on the thirty-first day of December to twelve o'clock midnight on the thirty-first day of the next December. However, the license is valid for an additional three days if a proper application for a new license is in the possession of the secretary before midnight on the thirty-first day of December when the license expires. The full fee shall be charged for any license for a portion of the period, except as provided in subdivision 35-4-2(1).
Notwithstanding the provisions of this section, the period covered by any license issued pursuant to subdivision 35-4-2(16) and any manufacturer license issued under this title shall be from twelve o'clock midnight on the thirtieth day of June to twelve o'clock midnight on the thirtieth day of the next June.
Source: SDC 1939, § 5.0205; SL 1945, ch 17, § 3; SL 1964, ch 10; SL 1971, ch 211, § 54; SL 2008, ch 37, § 172; SL 2018, ch 213, § 70.
35-4-45. Bonded warehouse permitted to store beverages--Additional bond required.
Any bonded warehouse within this state may, upon compliance with this section, receive alcoholic beverages for storage purposes. Before receiving any alcoholic beverages, the bonded warehouse shall furnish, in addition to any bond previously furnished under law, a bond in the amount of ten thousand dollars guaranteeing that the bonded warehouse, its officers, employees, and agents will comply with all provisions of this title applicable to the bonded warehouse. The bond shall be in a form prescribed by the secretary and shall be approved by and filed with the secretary.
Source: SDC 1939, § 5.0213; SL 1971, ch 211, § 56; SL 2008, ch 37, § 174; SL 2018, ch 213, § 72.
35-4-47. Sources from which wholesalers may receive beverages.
Except as provided in §§ 35-2-9 and 35-10-16, a licensed wholesaler may only purchase or receive alcoholic beverages from:
(1) Manufacturers or wholesalers licensed under this title;
(2) Transportation licensees, including deliveries by the transportation licensees through a freight, express, or parcel post depot within the municipality where the manufacturer or wholesaler licensee operates, and including any transported beverages that have been imported from outside the state; or
(3) Bonded warehouses as provided in § 35-4-45.
Source: SDC 1939, § 5.0215; SL 1971, ch 211, § 58; SL 2008, ch 37, § 175; SL 2018, ch 213, § 74.
35-4-50. Restrictions on sales by wholesalers.
A licensed wholesaler under this chapter may only sell alcoholic beverages in this state to a manufacturer, wholesaler, and retail licensee under this chapter and only the alcoholic beverages that the respective licensee is authorized to purchase.
Source: SDC 1939, § 5.0217; SL 1947, ch 20; SL 1949, ch 15; SL 1963, ch 12, § 1; SL 1968, ch 3; SL 1971, ch 211, § 61; SL 1987, ch 261, § 24; SL 2018, ch 213, § 77.
35-4-52. Prohibited sales practices by manufacturers and wholesalers.
No manufacturer or wholesaler may attempt to promote the sale of alcoholic beverages by tie-in sales arrangements or by any device such as gifts or other concessions of financial value to a customer. The manufacturer or wholesaler may promote sales only on the basis of price competition, salesmanship, reliability as a supplier, and other ordinary competitive business practices.
Source: SL 1951, ch 6; SDC Supp 1960, § 5.0217-1; SL 1971, ch 211, § 62; SL 2008, ch 37, § 176; SL 2018, ch 213, § 78.
35-4-60. Retailers permitted to purchase only from wholesalers.
Except as provided in this title, a retail licensee may only buy or receive alcoholic beverages from a wholesaler licensed under this chapter.
Source: SDC 1939, § 5.0219; SL 1945, ch 22, § 2; SL 1955, ch 6, § 3; SL 1971, ch 211, § 63; SL 2008, ch 37, § 177; SL 2018, ch 213, § 79.
35-4-60.1. Wholesalers to purchase only from brand owner or brand owner's agent or licensed wholesaler.
No licensed wholesaler may purchase or accept delivery 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 operating solely within this state. Alcoholic beverages imported into this state shall come to rest at the warehouse of 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.
Source: SL 1982, ch 270; SL 1994, ch 286, § 1; SL 2018, ch 224, § 15.
35-4-60.2. Purchase from municipality of malt beverages by certain licensees--Price charged.
A licensee licensed under subdivision 35-4-2(3), (4), or (16) shall purchase any malt beverages that the licensee sells from the municipality if the municipality in which the licensee is located is licensed under subdivision 35-4-2(5) and if the municipality has adopted by ordinance a requirement that purchases of malt beverages by licensees under this section be made from the municipality. A municipality selling malt beverages to any licensee licensed under subdivision 35-4-2(3), (4), or (16) may not charge the licensee more than five percent above the municipality's cost for malt beverages plus freight unless the municipality has an operating agreement in effect on April 1, 1988, for its on-sale alcoholic beverage licensees licensed pursuant to subdivision 35-4-2(4) and imposes a mark-up higher than five percent for malt beverages. The municipality shall charge all licensees under this section the same price for malt beverages. The provisions of this section for a licensee licensed pursuant to subdivision 35-4-2(3) or (4) only apply if the licensee is located in a municipality with a population that exceeds eight thousand.
Source: SL 1987, ch 261, § 40; SL 1988, ch 293, § 1; SL 2008, ch 37, § 178; SL 2010, ch 180, § 33; SL 2017, ch 168, § 1; SL 2018, ch 213, § 80.
35-4-60.3. Certain licensees permitted to purchase from wholesalers and retailers.
Notwithstanding the provisions of § 35-4-60, a civic, charitable, educational, fraternal, or veterans organization licensed pursuant to § 35-4-124 may purchase alcoholic beverages from any licensed wholesaler, or licensed retailer with off-sale privileges.
Source: SL 2018, ch 217, § 3.
35-4-66. Restrictions on transportation of beverages.
Alcoholic beverages may be transported only by:
(1) A transporter licensee in the course of delivery to persons authorized under this title to receive the alcoholic beverages;
(2) A manufacturer or wholesaler in the manufacturer or wholesaler licensee's own vehicles, carrying the manufacturer or wholesaler licensee's own merchandise;
(3) A manufacturer carrying only samples, sealed or unsealed;
(4) An individual, in interstate transportation carrying alcoholic beverages in quantities of one gallon or less, or in intrastate transportation carrying any quantity, but in either case carrying alcoholic beverages purchased by the individual for personal use only or produced by the individual pursuant to § 35-1-5.4;
(5) A common carrier in interstate commerce if the shipment originates outside the state and is destined for a point outside the state;
(6) A carrier licensee, in exercise of the privileges granted pursuant to the license or purchased by passengers for personal use while on the conveyance;
(7) An established religious organization, in interstate transportation carrying alcoholic beverages in quantities of four gallons or less, or in intrastate transportation carrying any quantity, but in either case only alcoholic beverages purchased by the established religious organization for sacramental use;
(8) An off-sale delivery licensee;
(9) A wine carrier as defined in § 35-12B-1; or
(10) A retailer, carrying the retailer's own merchandise purchased from a wholesaler to the retailer's licensed premises.
Source: SDC 1939, § 5.0220; SL 1945, ch 23; SL 1971, ch 211, § 65; SL 1972, ch 200; SL 1977, ch 288; SL 2008, ch 37, § 179; SL 2010, ch 182, § 1; SL 2017, ch 169, § 3; SL 2018, ch 213, § 82; SL 2018, ch 215, § 5; SL 2019, ch 164, § 1; SL 2021, ch 165, § 3.
35-4-67. Restrictions on importation of beverages.
Except as provided in subdivisions 35-4-66(1), (3), (4), (5), (6), and (7), no person may bring alcoholic beverages into this state.
Source: SDC 1939, § 5.0224; SL 1943, ch 12; SL 1945, ch 24; SL 1971, ch 211, § 66; SL 1987, ch 261, § 26; SL 2010, ch 182, § 2; SL 2018, ch 213, § 83.
35-4-71. Sale of alcohol by dispensers restricted.
No dispenser may resell alcohol except as compounded into medicinal or other preparations that are not capable of ordinary use as a beverage.
Source: SDC 1939, § 5.0223; SL 1971, ch 211, § 67; SL 2008, ch 37, § 180.
35-4-74. Delivery prohibited except by off-sale delivery licensees--Violation as misdemeanor.
Except pursuant to the provisions of § 35-4-127, no off-sale licensee may make any delivery of alcoholic beverages outside of the premises described in the license. A violation of this section is a Class 2 misdemeanor.
Source: SDC 1939, § 5.0226 (1); SL 1947, ch 21; SL 1963, ch 13; SL 1968, ch 4; SL 1971, ch 211, § 68; SL 1992, ch 158, § 57; SL 2008, ch 37, § 181; SL 2017, ch 169, § 4.
35-4-75. Service by on-sale licensees restricted to premises--Violation as misdemeanor.
No on-sale licensee may serve alcoholic beverages except on the premises authorized by the license. A violation of this section is a Class 2 misdemeanor.
Source: SDC 1939, § 5.0226 (5); SL 1953, ch 10; SL 1963, ch 15; SL 1971, ch 211, § 69; SL 1992, ch 158, § 58; SL 2008, ch 37, § 182.
35-4-77.1. Sale or consumption of alcoholic beverages on sidewalk abutting licensed premises permitted by ordinance.
Notwithstanding the provisions of § 35-4-75, the governing body of the municipality charged with the approval of alcoholic beverage license issuance may, by ordinance, permit the sale and consumption of alcoholic beverages on a sidewalk or walkway subject to a public right-of-way abutting a licensed premises. The sidewalk or walkway subject to a public right-of-way shall be immediately adjacent to and abutting the licensed premises. This section does not apply to any federal-aid eligible highway unless approved in accordance with the applicable requirements for the receipt of federal aid.
Nothing in this section prevents the governing body from imposing conditions or restrictions that the governing body considers appropriate.
The sidewalk or walkway subject to a public right-of-way where the sale and consumption of alcoholic beverages is permitted does not constitute a public place as defined in § 35-1-5.3, if the sidewalk or walkway subject to a public right-of-way has been properly authorized for sale and consumption of alcoholic beverages pursuant to this section. The hours of authorized sale and consumption on the sidewalk or walkway subject to a public right-of-way shall be consistent with the hours permitted for the on-sale license.
A violation of any provision of this title by an alcoholic beverage license holder conducting business on a sidewalk or walkway subject to a public right-of-way pursuant to this section constitutes a violation of this title as if the violation had occurred in or on the licensed premises.
Source: SL 2008, ch 187, § 1; SL 2016, ch 189, § 1; SL 2018, ch 213, § 84.
35-4-78. Sale of alcoholic beverage to obviously intoxicated person prohibited--Violation as misdemeanor--Civil liability.
No licensee may sell or serve any alcoholic beverage to any person who is obviously intoxicated. A violation of this section is a Class 1 misdemeanor.
However, no licensee is civilly liable to any injured person or the injured person's estate for any injury suffered, including any action for wrongful death, or property damage suffered because of the intoxication of any person due to the sale or consumption of any alcoholic beverage in violation of the provisions of this section.
Source: SDC 1939, §§ 5.0226 (2), 5.9905; SL 1971, ch 211, § 70; SL 1977, ch 190, § 125; SL 1985, ch 295, § 2; SL 1987, ch 261, § 27; SL 2010, ch 180, § 34; SL 2018, ch 213, § 85.
35-4-79. Persons under twenty-one years old not permitted to loiter on on-sale or off-sale premises or to sell, serve, or consume beverages--Violation as misdemeanor.
No on-sale or off-sale licensee may permit any person less than twenty-one years old to loiter on the licensed premises or to sell, serve, dispense, or consume alcoholic beverages on the licensed premises.
A violation of this section is a Class 2 misdemeanor.
Source: SDC 1939, § 5.0226 (6); SL 1971, ch 211, § 71; SL 1987, ch 261, § 30; SL 1988, ch 294, § 1; SL 1990, ch 298; SL 1992, ch 158, § 59; SL 2010, ch 183, § 4; SL 2011, ch 172, § 4; SL 2018, ch 213, § 86.
35-4-79.4. Exception to prohibition on sales or service by persons under twenty-one years old--Violation as misdemeanor.
Notwithstanding the provisions of § 35-4-79, any on-sale or off-sale licensee may permit persons eighteen years or older to sell or serve alcoholic beverages if less than fifty percent of the gross business transacted by the establishment is from the sale of alcoholic beverages, or the licensee or an employee of the licensee that is at least twenty-one years of age is on the premises when the alcoholic beverage is sold or served. For purposes of this section, the term, to sell or serve alcoholic beverages, includes tending bar or drawing, pouring, or mixing alcoholic beverages. Any person tending bar or drawing, pouring, or mixing alcoholic beverages pursuant to this section must be certified by a nationally recognized alcohol management program.
A violation of this section is a Class 2 misdemeanor.
Source: SL 2018, ch 213, § 88; SL 2022, ch 142, § 1.
35-4-81. Restriction by ordinance of sales, service, and consumption on certain days.
Any municipality or county may, by ordinance, prohibit or restrict the sale, service, and consumption of alcoholic beverages on Sundays, Christmas Day, or Memorial Day.
Source: SDC 1939, § 5.0226 (3), (4); SL 1961, ch 16; SL 1963, ch 14; SDCL § 35-4-80; SL 1971, ch 211, § 72; SL 1987, ch 261, § 32; SL 1992, ch 158, § 60; SL 2009, ch 173, § 2; SL 2010, ch 183, § 1; SL 2018, ch 213, § 90.
35-4-81.2. Times when beverage sales, service, and consumption prohibited--Violation as misdemeanor.
No on-sale or off-sale licensee may sell, serve, or allow to be consumed on the premises covered by the license, any alcoholic beverages between the hours of two a.m. and seven a.m. A violation of this section is a Class 2 misdemeanor.
Source: SL 1987, ch 261, § 33; SL 2008, ch 182, § 4; SL 2010, ch 183, § 3; SL 2011, ch 172, § 5; SL 2018, ch 213, § 91.
35-4-99. Display of health warning sign--Violation as petty offense.
All licensed premises shall prominently display the sign provided for in § 35-4-100. The sign shall be displayed in such a manner as to provide an unobstructed view to the customers of such licensee. Failure to display such sign is a petty offense.
Source: SL 1986, ch 298, § 1.
35-4-100. Health warning sign--Contents--Copy provided to licensees.
The Department of Social Services shall create a nine inch by twelve inch sign to be displayed pursuant to § 35-4-99. The sign shall explain the dangers faced by pregnant women who consume alcohol. The language in the sign shall be approved by the secretary of health. The Department of Social Services shall provide a copy of the sign to each licensee required by § 35-4-99 to display the sign.
Source: SL 1986, ch 298, § 2; SL 1992, ch 372 (Ex. Ord. 92-2), § 20; SL 2008, ch 37, § 184; SL 2011, ch 1 (Ex. Ord. 11-1), § 163, eff. Apr. 12, 2011.
35-4-101. Minibars authorized in hotels or motels.
Any hotel or motel may operate minibars as defined in § 35-1-1 in any of its rooms or units if the hotel or motel has an on-sale license issued pursuant to subdivision 35-4-2(4), (6), or (13).
Source: SL 1989, ch 311, § 2; SL 2010, ch 180, § 49; SL 2018, ch 213, § 98.
35-4-102. Minibars--Beverage sizes--Age limit--Access.
Any hotel or motel may sell alcoholic beverages, except malt beverages and wine, in sizes not to exceed one hundred milliliters and malt beverages and wine in sizes not to exceed three hundred fifty-five milliliters to its registered guests twenty-one years of age or older, by means of a minibar. Access to the minibar in a particular guestroom shall be made available only by a key, magnetic card, or similar device. The licensee shall verify that each registered guest who is provided a key, magnetic card, or similar device to access a minibar is twenty-one years of age or older.
Source: SL 1989, ch 311, § 3.
35-4-103. Annual additional license fee for video lottery machines on licensed premises.
Any municipality or county may impose on any person who is licensed pursuant to this chapter and who is issued a video lottery establishment license pursuant to § 42-7A-41 an annual additional license fee for the privilege of locating video lottery machines on the licensed premises. The fee may not exceed fifty dollars for each video lottery machine. The fees imposed by this section are in addition to fees imposed under §§ 35-4-2 and 42-7A-41 and shall be paid at the same time and in the same manner as the fees paid in § 35-4-2. All fees received under this section shall be deposited into the general fund of the municipality or county having jurisdiction over the licensee. However, the municipality or county may not impose this additional fee on more than one license per location.
Source: SL 1992, ch 263; SL 1993, ch 268; SL 2018, ch 213, § 99.
35-4-106. License at county or municipal golf course.
Any county or municipality operating a golf course may, by resolution, without an election, but subject to referendum, make application for the issuance of an on-sale license at the golf course.
Source: SL 1994, ch 287; SL 2018, ch 213, § 100.
35-4-107. Resort facility on-sale license--Resort facility defined--Terms of license--Application.
Notwithstanding the provisions of § 35-4-11.1, each county may issue three resort facility on-sale licenses. For the purposes of this section, a resort facility is a facility located in a county with a population of less than two thousand persons at the time the license is initially issued and, in a bona fide manner, is used and kept open for hosting guests for compensation which has at least thirty rooms that are suitable for lodging and which has facilities for the preparation and serving of food for consumption on the premises. The resort facility license may be issued only if the licensee derives less than thirty-three percent of the licensee's gross receipts from the sale of alcoholic beverages on the premises where the license is held. For the purposes of this section, the term premises means one contiguous piece of real property on which sales are generated by the licensee. This section applies to any resort facility constructed after July 1, 1997.
Source: SL 1997, ch 213, § 1; SL 2001, ch 196, § 1.
35-4-110. Definition of terms pertaining to full-service restaurant on-sale licenses.
Terms used in this section and §§ 35-4-111 to 35-4-120, inclusive, mean:
(1) "Bar," any permanently installed counter within the restaurant area from which alcoholic beverages are regularly served to customers by a person who is tending bar or drawing or mixing alcoholic beverages;
(2) "Full-service restaurant," any restaurant at which a waiter or waitress delivers food and drink offered from a printed food menu to patrons at tables, booths, or the bar. Any restaurant that only serves fry orders or foodstuffs such as sandwiches, hamburgers, or salads is not a full-service restaurant;
(3) "Restaurant," any area in a building maintained, advertised, and held out to the public as a place where individually priced meals are prepared and served primarily for consumption in such area and where at least sixty percent of the gross revenue of the restaurant is derived from the sale of food and nonalcoholic beverages. The restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of employees necessary for the preparing, cooking, and serving of meals.
Source: SL 2008, ch 189, § 2; SL 2009, ch 177, § 1.
35-4-111. Full-service restaurant on-sale licenses.
Notwithstanding the provisions of § 35-4-11 or 35-4-11.1 or the on-sale license fees established pursuant to subdivisions 35-4-2(4) and (6), the governing board of any incorporated municipality or the board of county commissioners of any county may, by ordinance, issue additional on-sale licenses for full-service restaurants if the municipality or county charges at least the minimum fee required by § 35-4-116.
A full-service restaurant on-sale license issued in a municipality is subject to the license renewal fees as provided for in subdivision 35-4-2(4), and shall be treated for all other regulatory purposes in this title as a license issued pursuant to subdivision 35-4-2(4).
A full-service restaurant on-sale license issued in a county is subject to the license renewal fees as provided for in subdivision 35-4-2(6), and shall be treated for all other regulatory purposes in this title as a license issued pursuant to subdivision 35-4-2(6).
Source: SL 2008, ch 189, § 1; SL 2009, ch 177, § 2.
35-4-112. Documentation in support of initial application for full-service restaurant on-sale license.
In the initial application, an applicant for a full-service restaurant on-sale license shall provide sufficient documentation to the municipality or county to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not from the sale of alcoholic beverages. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.
Source: SL 2008, ch 189, § 3; SL 2009, ch 177, § 3.
35-4-113. Renewal of full-service restaurant on-sale license--Annual report.
If the municipality or county is renewing a full-service restaurant on-sale license, the municipality or county shall condition the license renewal upon receiving documentation that at least sixty percent of gross revenue from the preceding twelve months operation of the full-service restaurant was derived from the sale of food and nonalcoholic beverages. The full-service restaurant on-sale licensee shall submit an annual report to the municipality or county on the revenues from the full-service restaurant that includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross revenues of the licensee for the following two categories:
(1) Food and nonalcoholic beverage gross revenues; and
(2) Total gross revenues.
Source: SL 2008, ch 189, § 4; SL 2009, ch 177, § 4.
35-4-114. On-premise consumption required.
A full-service restaurant on-sale licensee may only serve alcoholic beverages for on-premise consumption in the bar and dining room area of the restaurant.
Source: SL 2008, ch 189, § 5.
35-4-115. Advertisement of full-service restaurant.
A restaurant that has a full-service restaurant on-sale license may only be advertised or held out to the public as primarily a food eating establishment. No licensee that has a full-service restaurant on-sale license may allow smoking on the licensed premises.
Source: SL 2008, ch 189, § 6.
35-4-116. Fees for additional on-sale licenses to full-service restaurants.
Any municipality or county adopting the ordinance pursuant to § 35-4-111 may issue additional on-sale licenses to full-service restaurants. Any municipality adopting such ordinance shall charge at least one dollar for each person residing within the municipality as measured by the last preceding decennial federal census. Any county adopting such ordinance shall charge at least one dollar for each person residing within the county but outside the boundary of any municipality as measured by the last preceding decennial federal census.
Each municipality or county shall set the on-sale license fee within ninety days of adopting the ordinance pursuant to § 35-4-111 or within thirty days after the resolution of any appeal pursuant to § 35-4-120. After the fee for an on-sale license issued pursuant to §§ 35-4-110 to 35-4-120, inclusive, has been determined, no municipality or county may change the fee for a period of ten years unless a growth in population reported by the federal decennial census requires an increase in the fee.
Source: SL 2008, ch 189, § 7; SL 2009, ch 177, § 5.
35-4-117. Price of full-service restaurant on-sale license set at or above current fair market value.
Any municipality or county adopting the ordinance pursuant to § 35-4-111 shall, for a period of ten years following adoption of such ordinance, set the price of a new full-service restaurant on-sale license, pursuant to § 35-4-116, at or above the current fair market value. However, the full-service restaurant on-sale license fee may not be less than the minimum on-sale license fee as provided in subdivision 35-4-2(4) or (6). For purposes of this section, the term, current fair market value, means the documented price of the on-sale license most recently sold through an arm's-length transaction, less the value of any real or personal property included in the transaction. If there are no documented sales of on-sale licenses, the municipality or county may request from any on-sale license holder within the municipality or county, the date and price originally paid for its on-sale license to determine the current fair market value.
Source: SL 2008, ch 189, § 9; SL 2009, ch 177, § 6; SL 2018, ch 213, § 101.
35-4-118. Registry of full-service restaurant on-sale licenses.
Each municipality or county adopting an ordinance pursuant to § 35-4-111 shall maintain a registry of each on-sale license that is being offered for sale at the price established in § 35-4-117 and furnish a copy of the registry to anyone who requests a new full-service restaurant on-sale license. The municipality or county may only issue a new license pursuant to §§ 35-4-110 to 35-4-120, inclusive, if no on-sale license is on the registry or a person desiring to purchase an on-sale license listed on the registry provides documentation showing that the person is unable to purchase the on-sale license at the price established in § 35-4-117 and on terms satisfactory to both the potential buyer and seller. The price of any on-sale license registered as, for sale, with the municipality or county shall be sold at the current fair market price set by the municipality or county pursuant to § 35-4-117. Nothing in §§ 35-4-110 to 35-4-120, inclusive, precludes the sale of an on-sale license by a licensee not listed on the registry.
Source: SL 2008, ch 189, § 10; SL 2009, ch 177, § 7.
35-4-119. Registration that full-service restaurant on-sale license is for sale.
The existing on-sale license holder is responsible for registering with the municipality or county that the on-sale license is for sale pursuant to § 35-4-118.
Source: SL 2008, ch 189, § 11.
35-4-120. Certain licensees to report amount paid for other licenses--Objection to report--Hearing--Appeal.
Upon the adoption of an ordinance pursuant to § 35-4-111, any person who purchased an on-sale license issued pursuant to subdivision 35-4-2(4) or (6) within the last five years shall report to the municipality or county that issued the license the amount paid for the license. If the municipality or county that issued the on-sale license adopts an ordinance pursuant to § 35-4-111, and requests from any other licensee the amount originally paid for any other on-sale license pursuant to § 35-4-117, the licensee shall report that amount to the municipality or county. The declared purchase price shall be made under oath and shall include the documents establishing the amount paid for the on-sale license. If the transaction included other personal property or real property, the full market value of the other property on the date of the transaction shall be deducted from the total purchase price to establish the amount paid for the license. The person who owned the license as of the date of the adoption of the ordinance has the burden of establishing the amount paid for the license. If the amount reported is used to determine current fair market value pursuant to § 35-4-117, any licensee who contends that the amount does not accurately reflect the fair market value of the license on the date of purchase may file an objection to the report. The objection shall be filed with the municipality or county within thirty days of the date the license fee is set pursuant to § 35-4-116. If an objection is filed, the governing board of the municipality or county shall conduct a hearing to determine the fair market value of the license. The determination of the governing board may be appealed to circuit court.
Source: SL 2009, ch 177, § 9; SL 2018, ch 213, § 102.
35-4-123. County fairground on-sale license.
Any county operating a county fairgrounds may, by resolution, without an election, but subject to referendum, issue one on-sale license at the county fairgrounds to an applicant who is authorized by the county to operate as the leaseholder at the county fairgrounds. The selling, serving, or dispensing of any alcoholic beverage at the county fairgrounds may not occur more than one hour before the commencement of any event at the county fairgrounds or at any time after the event is concluded. A license issued pursuant to this section may not be transferred. The license shall be issued without regard to the population limitations established pursuant to §§ 35-4-11 and 35-4-11.1.
Source: SL 2010, ch 186, § 1; SL 2011, ch 174, § 1; SL 2018, ch 213, § 105.
35-4-124. Special alcoholic beverage licenses--Special events--Duration--Hearing--Local government rules required.
Any municipality or county may issue:
(1) A special malt beverage retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to § 35-4-111 or subdivision 35-4-2(4), (6), or (16) in addition to any other licenses held by the special events license applicant;
(2) A special on-sale wine retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to § 35-4-111 or subdivision 35-4-2(4), (6), or (12) or any farm winery licensee in addition to any other licenses held by the special events license applicant;
(3) A special on-sale license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to § 35-4-111 or subdivision 35-4-2(4) or (6) in addition to any other licenses held by the special events license applicant;
(4) A special off-sale package wine dealers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(3), (5), or (12) or any farm winery licensee in addition to any other licenses held by the special events license applicant. A special off-sale package wine dealers licensee may only sell wine manufactured by a farm winery licensee;
(5) A special off-sale package wine dealers license in conjunction with a special event, conducted pursuant to § 35-4-124.1, within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization;
(6) A special off-sale package malt beverage dealers license in conjunction with a special event, conducted pursuant to § 35-4-124.1, within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization; or
(7) A special off-sale package dealers license in conjunction with a special event, conducted pursuant to § 35-4-124.1, within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization.
The municipality or county may issue a license under this section for a time not to exceed fifteen consecutive days. No public hearing is required for the issuance of a license pursuant to this section if the person applying for the license holds an on-sale alcoholic beverage license or a retail malt beverage license in the municipality or county, or holds an operating agreement for a municipal on-sale alcoholic beverage license. The local governing body shall establish rules to regulate and restrict the operation of the special license, including rules limiting the number of licenses that may be issued to any person within any calendar year.
Source: SL 2010, ch 185, § 1; SL 2011, ch 175, § 1; SL 2015, ch 195, § 1, eff. Mar. 13, 2015; SL 2018, ch 213, § 106; SL 2019, ch 162, § 2; SL 2020, ch 156, § 1; SL 2024, ch 149, § 1.
35-4-124.1. Donation of beverages to civic, charitable, educational, fraternal, or veterans organization holding special events license.
A civic, charitable, educational, fraternal, or veterans organization holding a special events license pursuant to subdivision 35-4-124(5) may only sell wine that has been donated by members of the public to be sold at the special event. A civic, charitable, educational, fraternal, or veterans organization holding a special events license pursuant to subdivision 35-4-124(6) may only sell malt beverages that have been donated by members of the public to be sold at the special event. A civic, charitable, educational, fraternal, or veterans organization holding a special events license pursuant to subdivision 35-4-124(7) may only sell alcoholic beverages that have been donated by members of the public to be sold at the special event.
The donor shall purchase any donated alcoholic beverage from a licensed South Dakota retailer.
Source: SL 2015, ch 195, § 2, eff. Mar. 13, 2015; SL 2018, ch 213, § 107.
35-4-125. Application for special alcoholic beverage license--Fee.
Notwithstanding § 35-1-5.5, a municipality or county may allow the sale of alcoholic beverages on public property or property owned by a nonprofit corporation during a special event. Any license issued pursuant to § 35-4-124 shall be issued to the person and the location specified on the application. Notwithstanding § 35-4-2, the governing body of the municipality or the board of county commissioners, as appropriate, shall determine the fee for this license. Each application shall be accompanied by the fee at the time of submission to the governing body of the municipality or the board of county commissioners. The fee provided for in this section shall be retained by the governing body of the municipality or the board of county commissioners issuing the license.
Source: SL 2010, ch 185, § 2; SL 2011, ch 175, § 2.
35-4-127. Off-sale delivery license.
A licensee licensed pursuant to subdivision 35-4-2(3) or (5) may apply for an off-sale delivery license as provided by subdivision 35-4-2(23) to deliver alcoholic beverages to a consumer within the boundaries of the municipality that issued the off-sale license. The alcoholic beverage for delivery shall be purchased in person and on-site at the licensee's off-sale premises. The minimum purchase of alcoholic beverages shall be one hundred fifty dollars. The delivery shall be made during hours of operation pursuant to § 35-4-81.2 by an employee of the licensee who is at least twenty-one years old. The employee shall obtain the signature of a person twenty-one years old or older before delivery of the shipment. The employee shall request that the person signing for the delivery display a valid age-bearing photo identification document issued by this state, another state, or the federal government verifying that the person is twenty-one years old or older. Documentation verifying the identification of the person signing for the delivery shall be retained by the licensee for one year.
Any licensee who delivers alcoholic beverages to a person under twenty-one years old is subject to a civil penalty of one thousand dollars for a first offense and two thousand dollars for a second or subsequent offense. Any money collected pursuant to this section shall be deposited in the general fund.
Source: SL 2017, ch 169, § 1; SL 2018, ch 213, § 108.
35-4-128. Manufacture, sale, or possession of powdered, condensed, or concentrated alcohol prohibited--Exceptions--Violation as misdemeanor.
Unless specifically allowed in this section, the manufacture, sale or possession of alcohol in a powdered, condensed, or other concentrated form as defined in § 35-1-1 or the sale or possession of an alcoholic beverage that is reconstituted from alcohol in a powdered, condensed, or other concentrated form is prohibited.
The provisions of this section do not apply to the following:
(1) Any hospital that possesses a product defined in subdivision 35-1-1(17A) and that possession is primarily used for conducting scientific research; or
(2) Any state institution, private college or university, or pharmaceutical or biotechnical company that possesses a product defined in subdivision 35-1-1(17A) and that possession is primarily used for conducting bona fide research.
A violation of this section is a Class 1 misdemeanor.
Source: SL 2017, ch 163, § 2.
35-4-129. Sale of alcoholic beverages below cost prohibited--Exception.
No alcoholic beverage may be sold below the wholesale cost of the alcoholic beverage, unless the sale constitutes the termination of the sale of the alcoholic beverage on the licensed premises. Any alcoholic beverage offered for sale at less than wholesale cost may not be offered again for sale on the licensed premises for a period of less than one year after termination of the sale of the product on the licensed premises. The wholesale cost is the consideration paid by a retailer to a wholesaler to acquire an alcoholic beverage and includes the purchase price and freight charges. If no wholesaler is used in the sale, the direct shipper may not sell the alcoholic beverage below the manufacturer's cost.
Source: SL 1989, ch 337; SL 2015, ch 196, § 23, eff. Jan. 1, 2016; SDCL § 37-10A-1; SL 2018, ch 213, §§ 109, 110.
35-4-130. Quantity discounts and cash discounts permitted.
A retailer, as defined in subdivision 35-1-1(19), may offer quantity discounts or cash discounts to a consumer for the purchase of alcoholic beverages. Any quantity discount or cash discount offered by a retailer to a consumer shall comply with the provisions of § 35-4-129.
Source: SL 2019, ch 165, § 1.
35-5-1
Beverages to which chapter applies.
35-5-2
Alcohol excise tax to be paid by manufacturers and wholesalers.
35-5-3
Amount of tax based on quantities--Diluted beverages.
35-5-3.1
Repealed.
35-5-3.2, 35-5-3.3.
Repealed
.
35-5-4
Repealed.
35-5-5
Repealed.
35-5-6
Beverages exempt from tax.
35-5-6.1
Additional tax on wholesaler's purchases--Administration.
35-5-7
Bond required of licensees--Amount of bond--Deposit in lieu of bond.
35-5-7.1
Cancellation of bond by surety--Revocation of license.
35-5-8, 35-5-9.
Repealed.
35-5-10
Monthly return and payment of tax based on quantity of beverages--Violation
as misdemeanor.
35-5-11, 35-5-12.
Repealed.
35-5-13
Repealed.
35-5-14
Repealed.
35-5-15 to 35-5-18.
Repealed.
35-5-19
Interest and penalty for delinquency in filing return or payment of
tax--Reduction of penalty for reasonable cause--Additional amount added for
false return--Collection and enforcement.
35-5-20
Records and reports required of licensees--Entry and examination on default--Violation as misdemeanor.
35-5-20.1
Reports required on shipments of beverages into state--Violation as
misdemeanor.
35-5-20.2
Repealed.
35-5-21
Repealed.
35-5-21.1
Repealed.
35-5-21.2
Repealed.
35-5-21.3
Repealed.
35-5-22
Distribution to municipalities from alcoholic beverage fund.
35-5-22.1
Entities sharing in municipal distribution.
35-5-22.2
Distribution to counties from alcoholic beverage fund.
35-5-23 to 35-5-24.1.
Repealed.
35-5-25
Payment to township or county of distribution for unincorporated town.
35-5-26
Population used as basis for distribution to unincorporated towns.
35-5-27
Repealed.
35-5-28
Fund balances transferred to general fund.
35-5-1. Beverages to which chapter applies.
The provisions of this chapter apply to all alcoholic beverages.
Source: SDC 1939, § 5.0201; SL 1971, ch 211, § 77; SL 2018, ch 213, § 111.
35-5-2. Alcohol excise tax to be paid by manufacturers and wholesalers.
There is hereby levied an alcohol excise tax on all alcoholic beverages manufactured, purchased, received, or imported in this state. A manufacturer shall pay the alcohol excise tax on all alcoholic beverages manufactured and sold directly to a retailer or consumer. A wholesaler shall pay the alcohol excise tax on all alcoholic beverages purchased, received, or imported for sale to a retailer.
Source: SDC 1939, § 5.0238; SL 1963, ch 17; SL 1971, ch 211, § 78; SL 2018, ch 213, § 112.
35-5-3. Amount of tax based on quantities--Diluted beverages.
The alcohol excise tax based on the quantities of different kinds of alcoholic beverages is:
(1) Malt beverages, eight dollars and fifty cents per barrel of thirty-one gallons, or a pro rata portion thereof in accordance with the size of the bulk container;
(2) All light wines and diluted beverages (except sparkling wines and cider) containing alcohol by weight to the extent of more than 3.2 percent and not more than fourteen percent, ninety-three cents per gallon;
(3) All wines (except sparkling wines) containing alcohol by weight to the extent of more than fourteen percent and not more than twenty percent, one dollar and forty-five cents per gallon;
(4) All wines (except sparkling wines) containing alcohol by weight to the extent of more than twenty percent and not more than twenty-four percent, all natural sparkling wines containing alcohol and all artificial sparkling wines containing alcohol, two dollars and seven cents per gallon;
(4A) All cider containing alcohol by weight not more than ten percent, twenty-eight cents per gallon;
(5) All other alcoholic beverages not otherwise specified, three dollars and ninety-three cents per gallon.
For the purposes of this section, diluted beverages are alcoholic beverages prepared from the admixture of spirits or wine with water, dairy products, fruit juices, or vegetable juices, to which may be added natural flavors, artificial flavors, sweetening agents, or food additives to produce a beverage distinct and unique from the spirits or wine. In no case does the term, diluted beverages, include beverages which contain in excess of twelve percent alcohol by weight.
Any funds collected from the alcohol excise tax imposed by this section shall be deposited in the alcoholic beverage fund.
Source: SDC 1939, §§ 5.0238 (1), 5.0314; SL 1945, ch 17, § 4; SL 1955, ch 6, § 7; SL 1963, ch 17; SL 1963, ch 21, § 1; SL 1965, ch 18, § 1; SDCL § 35-7-2; SL 1971, ch 211, § 79; SL 1972, ch 201, §§ 1, 2; SL 1981, ch 272, § 1; SL 1987, ch 261, § 44; SL 1987, ch 263; SL 1987, ch 264, § 1; SL 1990, ch 299; SL 1998, ch 221, § 2; SL 2010, ch 180, § 51; SL 2018, ch 213, § 113.
35-5-6. Beverages exempt from tax.
The following alcoholic beverages sold by licensees are exempt from the taxes levied by this chapter:
(1) Sacramental wines; or
(2) Alcoholic beverages sold by manufacturer licensees for transportation in interstate commerce outside the state, or, to wholesale licensees under this title.
Source: SDC 1939, § 5.0240; SL 1945, ch 22, § 3; SL 1971, ch 211, § 82; SL 1987, ch 261, § 47; SL 2018, ch 213, § 116.
35-5-6.1. Additional tax on wholesaler's purchases--Administration.
In addition to the alcohol excise tax imposed by § 35-5-3, a tax of two percent of the purchase price is imposed upon the purchases of alcoholic beverages, except malt beverages, by a wholesaler from a manufacturer or supplier. The tax shall be paid monthly and shall be administered and collected in the same manner as provided in this chapter for the collection of the alcohol excise tax. A licensee shall indicate the total dollar amount of purchases received during the reporting period. Funds collected from the tax imposed by this section shall be deposited in the state general fund.
Source: SL 1978, ch 267, §§ 1, 2; SL 1981, ch 272, § 2; SL 1987, ch 261, § 48; SL 2018, ch 213, § 117.
35-5-7. Bond required of licensees--Amount of bond--Deposit in lieu of bond.
Any licensee liable for the payment of the taxes levied under this chapter may be required by the secretary to file with the secretary a bond or bonds, in an amount and form prescribed by the secretary, with corporate surety satisfactory to the secretary. The amount of the bond may not exceed fifty thousand dollars, and the secretary may require the increase or permit the decrease of the amount of the bond to a sum that the secretary determines is necessary to assure payment of the tax. The bond or bonds shall run to the state and shall be conditioned on the payment of all taxes levied under this chapter on or before the due date of payment, and on the payment of all fines and penalties lawfully imposed by reason of failure to pay any taxes levied under this chapter on the date payment is due. In lieu of a bond, the secretary may allow the licensee to furnish the amount of the bond in cash or negotiable securities approved by the secretary.
Source: SDC 1939, §§ 5.0109, 5.0208, 5.0239, 5.0307; SL 1941, ch 8; SL 1943, ch 11; SL 1959, ch 8; SL 1959, ch 12; SL 1963, ch 11; SL 1963, ch 12, § 2; SL 1965, ch 16; SDCL §§ 35-1-6, 35-4-36, 35-5-7, 35-6-16, 35-6-17; SL 1971, ch 211, § 83; SL 2008, ch 37, § 185; SL 2018, ch 213, § 118.
35-5-7.1. Cancellation of bond by surety--Revocation of license.
The surety may cancel the bond required by § 35-5-7 as to future liability by giving thirty days' written notice to the department and the licensee. Unless the licensee gives other sufficient security by the end of the thirty-day period, the licensee's license shall be revoked.
Source: SDC 1939, § 5.0307 as added by SL 1959, ch 12; SL 1963, ch 11; SL 1965, ch 16; SDCL §§ 35-4-37, 35-6-19; SL 1971, ch 211, § 84; SL 2008, ch 37, § 186.
35-5-10. Monthly return and payment of tax based on quantity of beverages--Violation as misdemeanor.
Each licensee liable for the payment of the taxes levied under this chapter shall file with the secretary a return, on a form prescribed by the secretary, showing the kind and quantity of alcoholic beverages produced, received, and on hand, together with the names of the persons from whom received, the amount of tax due, and any other information prescribed by the secretary. The return, covering the period of one calendar month, together with payment of the tax due, shall be transmitted to the department on or before the twenty-fifth day of the second month following the close of the reporting period. A violation of this section is a Class 1 misdemeanor.
Source: SDC 1939 §§ 5.0239, 5.0315; SL 1955, ch 6, §§ 4, 8; SL 1963, ch 12, § 2; SL 1965, ch 18, § 2; SDCL §§ 35-5-8 to 35-5-10, 35-7-4, 35-7-6; SL 1971, ch 211, § 85; SL 1992, ch 158, § 62; SL 2018, ch 213, § 119.
35-5-19. Interest and penalty for delinquency in filing return or payment of tax--Reduction of penalty for reasonable cause--Additional amount added for false return--Collection and enforcement.
Any person required to file returns or reports under this chapter, who fails to file a return or report or pay the tax when due is subject to interest and penalty at the rates set forth in § 10-59-6. However, for a reasonable cause shown, the secretary may reduce or eliminate the penalty. If any licensee files a false or fraudulent return, an amount equal to the tax evaded, or attempted to be evaded, shall be added to the tax. Penalty and interest are considered the same as tax for the purposes of collection and enforcement including liens, distress warrants, and criminal violations. Any payment received for taxes, penalty, or interest is applied first to tax, beginning with the oldest delinquency, then to interest and then to penalty. No court may enjoin the collection of the tax or civil penalty.
Source: SDC 1939, § 5.0239 as added by SL 1963, ch 12, § 2; SDC Supp 1960, § 5.0238-1; SDCL §§ 35-5-18, 35-7-7; SL 1971, ch 211, § 90; SL 1983, ch 28, § 48; SL 1983, ch 265; SL 1984, ch 319, § 22; SL 1988, ch 296; SL 2018, ch 213, § 120.
35-5-20. Records and reports required of licensees--Entry and examination on default--Violation as misdemeanor.
Any licensee liable for the payment of the taxes shall keep, in current and available form on the licensed premises, records of all purchases, sales, quantities on hand, and any other information the secretary may prescribe by rule promulgated pursuant to chapter 1-26. The secretary may require, from any licensee, any reports the secretary prescribes, and the secretary may require the production of any book, record, document, invoice, and voucher kept, maintained, received, or issued by the licensee in connection with the licensee's business that, in the judgment of the secretary, may be necessary to administer and discharge the secretary's duties, to secure the maximum of revenue to be paid, and to carry out the provisions of law. A violation of this section is a Class 1 misdemeanor.
If default is made, or if any licensee fails or refuses to furnish any other reports or information referred to upon request for the reports or information, the secretary may enter the licensee's premises where the records are kept and examine the records as necessary to compile the required report. The cost of the examination shall be paid by the licensee whose reports are in default.
Source: SDC 1939, § 5.0239 as added by SL 1963, ch 12, § 2; SL 1967, ch 8, § 3; SDCL §§ 35-5-20, 35-8-9; SL 1971, ch 211, § 91; SL 1987, ch 82, § 51; SL 1992, ch 158, § 63; SL 2008, ch 37, § 189; SL 2018, ch 213, § 121.
35-5-20.1. Reports required on shipments of beverages into state--Violation as misdemeanor.
Any person outside the state who sells or ships alcoholic beverages to a manufacturer or wholesaler within this state shall provide the secretary a report as the secretary may require, giving the name and address of the licensee or person making the purchase, the quantity and kind of alcoholic beverages sold, the manner of delivery and any other information prescribed in rule by the secretary. A violation of this section is a Class 1 misdemeanor.
Source: SDC 1939, §§ 5.0224, 5.0225, 5.0312; SL 1943, ch 12; SL 1945, ch 24; SL 1955, ch 6, § 6; SDCL §§ 35-4-58, 35-4-68, 35-6-33; SL 1971, ch 211, § 98; SL 1992, ch 158, § 64; SL 2018, ch 213, § 122.
35-5-22. Distribution to municipalities from alcoholic beverage fund.
Twenty-five percent of all of the revenues deposited in the alcoholic beverage fund shall revert to the municipalities. Each municipality's share of the fund shall be determined by the ratio of the population of each municipality to the total population of all the municipalities sharing in the receipts. The department shall make the reversion by remitting not later than November first, February first, May first, and August first of each year to the finance officer of each municipality its share of the fund. The amount received by each municipality shall be deposited in the municipality's general fund.
Source: SDC 1939, § 5.0241 as added by SL 1945, ch 25; SL 1951, ch 8; SL 1957, ch 7; SL 1961, ch 17; SL 1963, ch 18; SL 1971, ch 211, § 93; SL 1981, ch 272, § 4; SL 1987, ch 264, § 4; SL 1987, ch 265; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2016, ch 190, § 1; SL 2018, ch 213, § 124.
35-5-22.1. Entities sharing in municipal distribution.
For the purposes of § 35-5-22, municipalities include:
(1) Any municipality as defined in subdivision 9-1-1(6);
(2) Any unincorporated town in which a retail licensee is authorized to operate; or
(3) Open mess facilities authorized by federal laws at defense installations. Thirty percent of the tax contributed to the fund by the licensed wholesaler, resulting from tax paid sales to the facility, shall revert to that facility.
Source: SDC 1939, § 5.0241 as added by SL 1945, ch 25; SL 1951, ch 8; SL 1957, ch 7; SL 1961, ch 17; SL 1963, ch 18; SDCL §§ 35-5-24, 35-5-24.1; SL 1968, ch 6; SL 1971, ch 211, § 94; SL 1985, ch 33, § 31; SL 1994, ch 288; SL 2018, ch 213, § 125.
35-5-22.2. Distribution to counties from alcoholic beverage fund.
Twenty-five percent of all of the revenues deposited in the alcoholic beverage fund shall revert to the counties. Twenty-five percent of the alcoholic beverage fund distributed to counties shall be divided equally by all counties. The remaining seventy-five percent shall be allocated to counties by the ratio of the population of each county to the total population of all the counties sharing in the receipts. The department shall make the reversion by remitting not later than November first, February first, May first, and August first of each year to the county auditor of each county its share of the fund. The amount received by each county pursuant to this section and § 35-5-25 shall be deposited in the county's general fund to be dedicated to expenses related to county law enforcement, jails, state's attorneys, public defenders, and court-appointed attorneys.
Source: SL 2016, ch 190, § 2; SL 2018, ch 213, § 126.
35-5-25. Payment to township or county of distribution for unincorporated town.
In the case of an unincorporated town within an organized township, reversion of its share of the fund under § 35-5-22 shall be made to the treasurer of such township who shall deposit the amount so received in the township general fund. In the case of such an unincorporated town within an unorganized township, reversion of its share of such fund shall be so made to the county treasurer of the county wherein such unincorporated town is located who shall deposit the amount so received in the county general fund.
Source: SDC 1939, § 5.0241 as added by SL 1941, ch 9; SL 1945, ch 25; SL 1951, ch 8; SL 1957, ch 7; omitted SL 1961, ch 17; reenacted SL 1963, ch 18; SL 1971, ch 211, § 95.
35-5-26. Population used as basis for distribution to unincorporated towns.
The population of any unincorporated town in an organized or unorganized township shall include the entire population of the organized or unorganized township. The population of the unincorporated town in an unorganized township shall be furnished to the secretary by the county auditor of the county in which the unincorporated town is located.
Source: SDC 1939, § 5.0241 as added by SL 1963, ch 18; SL 1971, ch 211, § 96; SL 1985, ch 33, § 33; SL 2010, ch 180, § 53.
35-5-28. Fund balances transferred to general fund.
After the amount of funds necessary to provide for the reversions to municipalities and counties in §§ 35-5-22 and 35-5-22.2 is determined, the remaining funds may be transferred to the general fund.
Source: SDC 1939, § 5.0241; SL 1941, ch 9; SL 1945, ch 25; SL 1951, ch 8; SL 1957, ch 7; SL 1961, ch 17; SL 1963, ch 18; SDCL § 35-5-27; SL 1971, ch 211, § 86; SL 1985, ch 33, § 32; SL 2018, ch 213, § 127.
35-8A-1
Legislative authority and purpose.
35-8A-2
Definitions of terms.
35-8A-3
Distribution contracts--Application of this chapter.
35-8A-4
Prohibited actions by supplier.
35-8A-5
Good cause for termination, cancellation, nonrenewal, discontinuance, or
modification.
35-8A-6
Conditions for terminating, failing to renew, or refusing to continue under an
agreement by supplier--Notice to wholesaler.
35-8A-7
When compensation required from brewer--Reasonable value--Arbitration.
35-8A-8
Brewery may assume wholesaler's business--Time limitation--Brewer as limited
partner with wholesaler.
35-8A-9
Injunctive relief for violation of distribution agreement--Costs and attorney fees--Jurisdiction--Arbitration upon agreement by all parties.
35-8A-10
Transfer of wholesaler's business--Approval required--Exception for death--Unreasonable delay.
35-8A-11
Distribution agreement binding upon successor.
35-8A-12
Waiver of rights void--Mutually binding agreements or voluntary dispute settlements
not prohibited.
35-8A-13
Unreasonable amendment prohibited.
35-8A-14
Exclusive sales territories--Designated wholesaler.
35-8A-15
Application of chapter.
35-8A-16
Brand defined.
35-8A-17
Brand extension defined.
35-8A-18
Brand extension to be assigned wholesaler granted exclusive sales territory for
preexisting brand--Exemption.
35-8A-19
Future brand extensions to be assigned wholesaler who first had brand.
35-8A-20
Application of certain amended and enacted sections.
35-8A-1. Legislative authority and purpose.
The Legislature declares that:
(1) Regulation of business relations between beer distributors and manufacturers is necessary and appropriate and in the public interest; and
(2) This chapter is enacted pursuant to authority of the state under the provisions of the Twenty-First Amendment to the United States Constitution and that its purpose is to provide a three tier structure, consisting of licensed manufacturers or suppliers, licensed wholesalers, and licensed retailers, for the fair, efficient, and competitive importation, sale and distribution of malt beverages; to provide for and facilitate the regulation of the importation, distribution, use, and control of sale of malt beverages; and to facilitate the lawful and orderly marketing of malt beverages pursuant to the police powers of this state, and the taxation of and proper collection of taxes with respect to malt beverages by this state; and to provide a structure for the business relations between a wholesaler and a supplier.
Source: SL 1990, ch 300, § 1.
35-8A-2. Definitions of terms.
Terms used in this chapter mean:
(1) "Agreement," any commercial relationship between a wholesaler and a supplier of a definite duration or indefinite duration, whether written or oral, whereby the wholesaler is granted by the supplier the right to offer and sell the supplier's brands of malt beverages;
(2) "Ancillary business," any business owned by a wholesaler, a controlling stockholder of a wholesaler, or a controlling partner of a wholesaler, the assets of which are primarily used in transporting, storing, or marketing the brand or brands of malt beverage of the supplier with whom the wholesaler has an agreement; or a business owned by wholesaler, a controlling stockholder of a wholesaler, or a controlling partner of a wholesaler which recycles returnable beverage containers;
(3) "Controlling stockholder" or "controlling partner," any person with an ownership interest in the wholesaler of fifty percent or more;
(4) "Designated member," the spouse, child, grandchild, parent, brother, or sister of a deceased individual, who owned an interest in a wholesaler, who inherits the deceased individual's ownership interest under the terms of the deceased individual's will, or who has otherwise, by testamentary device, succeeded the deceased individual in the wholesaler's business, or who inherits such ownership interest under the laws of intestate succession of this state. With respect to an incapacitated individual having an ownership interest in a wholesaler, the term means the person appointed by the court as the conservator of such individual's property. The term also includes the appointed and qualified personal representative and the testamentary trustee of a deceased individual having an ownership interest in a wholesaler;
(5) "Good cause," the failure to comply substantially with the provisions of an agreement, which provisions are reasonable, of material significance, not unconscionable and are not discriminatory as compared with provisions imposed by the supplier on other similarly-situated wholesalers. The term does not include failure or refusal on the part of a wholesaler or supplier to engage in any trade practice, conduct, or activity which would result in a violation of any federal law or regulation or any laws or rules of this state;
(6) "Good faith," the duty of each party to any agreement to deal with the other party in a fair, reasonable, and nondiscriminatory manner consistent with reasonable commercial standards of fair dealing;
(7) "Malt beverages," as defined in subdivision 35-1-1(8) and includes any other beverage obtained by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops or their parts or their products and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide and with or without other wholesome products suitable for human food consumption;
(8) "Mutually binding written agreement," a written agreement voluntarily entered into by a supplier and a wholesaler whereby the wholesaler is granted by the supplier the right to offer and sell the supplier's brand of malt beverages, and the supplier and wholesaler have agreed to the essential terms and conditions governing their relationship, which essential terms and conditions shall include the term of the relationship, the rights and obligations of the respective parties with regard to the purchase, handling, distribution, marketing, sale, and quality control of supplier's products, and standards and procedures for amendment and termination of the agreement and for transfer of the wholesaler's business;
(9) "Reasonable qualifications," those reasonable and nondiscriminatory standards of the supplier which apply to other similarly situated wholesalers of the supplier, or to other owners or managers of other similarly situated wholesalers of the supplier;
(10) "Successor," any person who replaces a supplier with the right to manufacture, sell, distribute, or import a brand or brands of malt beverages;
(11) "Supplier," any brewer, fermenter, processor, bottler, packager, or importer of beer located within or without the state or any other person whether located within or without the state who enters into a malt beverage distribution agreement with any wholesaler doing business in the state. The term also includes any successor in interest to the supplier, including any purchaser of assets or stock, any surviving corporation resulting from a merger or liquidation, any receiver or assignee or any trustee of the original supplier;
(12) "Territory" or "sales territory," the wholesaler's area of sales and service responsibility designated by the supplier;
(13) "Transfer of wholesaler's business," the voluntary sale, assignment, or other transfer of an amount totaling at least ten percent of the business or control of the business or the assets of the wholesaler, including without limitation the sale or other transfer of stock or assets by merger, consolidation, or dissolution of the wholesalers or the stock of the parent corporation, or the stock or beneficial ownership of any other entity owning or controlling the wholesaler;
(14) "Wholesaler," any person licensed by this state who imports or causes to be imported into this state, or purchases or causes to be purchased within this state, any malt beverage for sale or resale to retailers licensed by this state.
Source: SL 1990, ch 300, § 2; SL 1999, ch 187, § 7.
35-8A-3. Distribution contracts--Application of this chapter.
Any supplier and any wholesaler may contract with one another to establish the terms and conditions of their distribution arrangement. If any supplier and any wholesaler have entered into a mutually binding written agreement, the provisions of this chapter do not apply and the relationship, rights, and obligations as between the parties shall be governed in all respects by the provisions of the mutually binding written agreement, if the provisions are reasonable, nondiscriminatory, and not unconscionable. However, no provision of a mutually binding written agreement that is determined to be unreasonable, discriminatory, and unconscionable is of any effect, and the provision is severable from any other provisions. Any specific provision in the agreement is invalid if the provision is more restrictive of the wholesaler's right than this chapter allows or if the provision lessens any obligation of the supplier as specified in this chapter; in that event the provisions of this chapter apply. A supplier may have a different agreement with different wholesalers in different brands.
In the event of a dispute as to whether the relationship, rights, and obligations as between a supplier and a wholesaler are governed by a mutually binding written agreement or by this chapter, any court of competent jurisdiction in this State may determine the issue by declaratory judgment upon proper application to the court by either party to the dispute.
Source: SL 1990, ch 300, § 3; SL 2008, ch 37, § 191.
35-8A-4. Prohibited actions by supplier.
No supplier may:
(1) Induce or coerce, or attempt to induce or coerce, a wholesaler to do any illegal act by threatening to amend, cancel, terminate, or refuse to renew any agreement existing between the supplier and wholesaler, or by any other means;
(2) Require a wholesaler by any means to participate in or contribute to any local or national advertising fund controlled directly or indirectly by a supplier, unless the cost is allocated fairly to each wholesaler in that market area according to sales to the wholesalers;
(3) Withhold delivery of malt beverages ordered by a wholesaler or change a wholesaler's quota of a brand or brands if the action is not made in good faith;
(4) Require a wholesaler to accept delivery of any malt beverages or other item or commodity which was not ordered by the wholesaler or which was ordered but properly cancelled by the wholesaler in accordance with the procedures previously established by the supplier. However, a supplier may impose reasonable inventory requirements upon a wholesaler if the requirements are made in good faith and are generally applied to other similarly situated wholesalers of the supplier;
(5) Require a wholesaler to purchase one or more brands of malt beverages in order for the wholesaler to purchase another brand or brands of malt beverage for any reason;
(6) Prohibit a wholesaler from dealing in any product not supplied by the supplier, including any product of any other supplier of any other alcoholic beverage or any nonalcoholic product, or in any way attempt to regulate or control ancillary businesses of a wholesaler;
(7) Fix or maintain the price at which a wholesaler may resell malt beverages;
(8) Take any action not in good faith against a wholesaler for or because of the filing of a complaint regarding an alleged violation by the supplier of any state or federal law or administrative rule;
(9) Refuse to approve any proposed manager or successor manager without good cause or require or prohibit any change in the manager or successor manager of a wholesaler who has been previously approved by the supplier without good cause. For purposes of this subdivision, good cause is the failure of a manager or successor manager to meet commercially reasonable standards or to perform commercially reasonable duties as specified in an agreement between the supplier and wholesaler; or
(10) Withdraw from or discontinue supplying to a wholesaler one or more brands or packages of malt beverages. However, nothing in this subdivision prohibits a supplier from withdrawing or discontinuing any brand or package on a state-wide or on a media coverage area basis at any time on reasonable notice or conducting test marketing of a new brand or of a brand of beer which is not currently being sold in this state.
Source: SL 1990, ch 300, § 4; SL 1999, ch 187, § 8.
35-8A-5. Good cause for termination, cancellation, nonrenewal, discontinuance, or modification.
Except as provided in § 35-8A-6, no supplier may terminate an agreement, cancel an agreement, fail to renew an agreement upon expiration of its terms, refuse to continue under an agreement, or require a material modification of a wholesaler's territory unless good cause exists. Good cause exists for the purpose of termination, cancellation, nonrenewal, discontinuance, or modification if all of the following occur:
(1) There is a failure by the wholesaler to substantially comply, without reasonable excuse or justification, with a provision of the agreement which is both reasonable and of material significance to the business relationship between the wholesaler and the supplier;
(2) The supplier first acquired knowledge of the failure to comply described in subdivision (1) no more than two years before the date the wholesaler was given final notice under subdivision (5);
(3) The wholesaler has been notified in writing by the supplier of the alleged noncompliance and has been afforded thirty days in which to submit a plan of corrective action to comply with the agreement and an additional ninety days to cure the noncompliance in accordance with the plan;
(4) The wholesaler was afforded a reasonable opportunity to comply with the agreement within the time as provided in subdivision (3). If the wholesaler cures the alleged noncompliance during the time limits provided, the notice of termination is void;
(5) The wholesaler was given final written notice by the supplier of failure to comply with the agreement. The notice shall be delivered by certified mail, return receipt requested, and shall contain a statement of the intention to terminate, cancel, not renew, or discontinue the agreement, a statement of the reasons for the termination, cancellation, nonrenewal, or discontinuance and the date on which the termination shall take effect. The date may not be less than fifteen business days following receipt by the wholesaler of this notice; and
(6) The supplier has acted in good faith.
Source: SL 1990, ch 300, § 5.
35-8A-6. Conditions for terminating, failing to renew, or refusing to continue under an agreement by supplier--Notice to wholesaler.
Upon providing the wholesaler notice by certified mail, a supplier may immediately terminate an agreement, cancel an agreement, fail to renew an agreement upon expiration of its term, or refuse to continue under an agreement if any of the following has occurred:
(1) The state or federal license of the wholesaler has been revoked or suspended for a period of more than thirty-one days;
(2) The wholesaler is insolvent, within the definition of that term contained in 11 U.S.C. § 101, as amended to January 1, 2008, and an order for relief under 11 U.S.C. ch. 7, as amended to January 1, 2008, has been entered with respect to the wholesaler, or there has been a liquidation or dissolution of the wholesaler that materially affects the wholesaler's ability to remain in business;
(3) The wholesaler or any individual who holds ten percent or more of the stock or other ownership interest of the wholesaler has been convicted of, or pleads guilty to, a felony that may in the reasonable judgment of the supplier materially and adversely affect the ability of the wholesaler to sell the supplier's products in the wholesaler's territory;
(4) The wholesaler has committed fraud in its dealings with the supplier or the supplier's products;
(5) The wholesaler has sold malt beverages supplied by the supplier to a retailer who the wholesaler knows, or reasonably should know, does not have a location within the wholesaler's territory at which the retailer is entitled to resell malt beverages; or the wholesaler has sold malt beverages supplied by the supplier to any person the wholesaler knows or should know will sell or supply all or part of the malt beverages to any retail location that does not have a location within the wholesaler's territory at which the retailer is entitled to resell malt beverages;
(6) The wholesaler has failed to pay for products ordered and delivered in accordance with established terms with the supplier and has continued to fail to make payment within five business days after receipt of written notice of the delinquency and demand for immediate payment;
(7) The wholesaler has made a transfer of wholesaler's business without prior written notice to, and approval by, the supplier in accordance with this chapter;
(8) The wholesaler ceases to carry on business with respect to the brewer's products unless the failure to carry on business is due to force majeure and the wholesaler has not taken reasonable steps to overcome those events that constitute the force majeure or has been unable to carry on business for a period of more than five days; or
(9) The brewer and wholesaler agree to a termination.
Source: SL 1990, ch 300, § 6; SL 2008, ch 37, § 192.
35-8A-7. When compensation required from brewer--Reasonable value--Arbitration.
Any brewer who amends, cancels, terminates, or refuses to continue or renew any beer agreement, or causes a wholesaler to resign, unless for good cause shown as defined in § 35-8A-5, from an agreement or unreasonably withholds consent to any assignment, transfer, or sale of a wholesaler's business, shall pay the wholesaler reasonable compensation for the value of the wholesaler's business. In determining the value of the wholesaler's business, consideration shall be given to all elements of value, including goodwill and going concern value.
If the brewer and the beer wholesaler are unable to mutually agree on the reasonable compensation to be paid for the value of the wholesaler's business, the matter may be submitted to arbitration as set forth in § 35-8A-9.
Source: SL 1990, ch 300, § 7.
35-8A-8. Brewery may assume wholesaler's business--Time limitation--Brewer as limited partner with wholesaler.
If the brewery assumes ownership of the wholesaler's business upon payment of full value to the wholesaler or upon repossession under a loan from the brewer to the wholesaler, the brewery may operate the wholesalership for only a reasonable period of time thereafter, not to exceed two years. Otherwise, no manufacturer or brewer, or party directly interested in either of them, may be granted a wholesale license. Nothing in this chapter may be construed to prohibit an interest by a brewer in a wholesaler's business as a limited partner as defined by chapter 48-7, or to the extent of any amount loaned by the brewer to the wholesaler in acquiring the wholesaler's business. Such arrangement may exist for no longer than ten years. If the general partner defaults in the agreement with the limited partner, and the latter acquires title to the general partner's interest, the limited partner shall divest itself of the general partner's interest within two years.
Source: SL 1990, ch 300, § 8; SL 1995, ch 208, § 2.
35-8A-9. Injunctive relief for violation of distribution agreement--Costs and attorney fees--Jurisdiction--Arbitration upon agreement by all parties.
Any party to a distribution agreement aggrieved by a violation of any provision of this chapter may seek injunctive relief enjoining the violation and recovery of damages caused by the violation. The prevailing party to any action charging a violation of this chapter is entitled to recover costs of suit and reasonable attorney's fees. Relief shall be sought in a civil action brought in the circuit court for the county in which the wholesaler's principal place of business is located, or in a federal court of competent jurisdiction located in South Dakota.
After a dispute arises, arbitration shall proceed only if all parties agree, at that time, to submit the dispute to arbitration and that the decision of the arbitrators shall be final and binding. The dispute shall be submitted to a panel of three arbitrators. One arbitrator shall be selected by the supplier within thirty days after the parties have agreed to arbitrate. One arbitrator shall be selected by the wholesaler within thirty days after the parties have agreed to arbitrate. The third arbitrator shall be selected from a list of five candidates supplied by the American Arbitration Association at the request of the parties and made within ten days after the parties have agreed to submit the dispute to arbitration. Within ten days after receipt of the list, the wholesaler and the supplier may disqualify up to two candidates from the list. The American Arbitration Association shall select the third arbitrator from the candidates not disqualified by the parties. The arbitration shall proceed in accordance with the rules of the American Arbitration Association within thirty days after the selection of the arbitration panel has been completed. The cost of the arbitration shall be borne equally by the parties. The award of a majority of the arbitrators shall be final and binding on the parties.
Source: SL 1990, ch 300, § 9; SL 1999, ch 187, § 2.
35-8A-10. Transfer of wholesaler's business--Approval required--Exception for death--Unreasonable delay.
A wholesaler may, at death, transfer the wholesaler's business to a designated member. The consent or approval of the supplier is not required for any transfer of the wholesaler's business at death, including the assignment of wholesaler's rights under the agreement, to a designated member. Any other transfer of wholesaler's business is subject to the supplier's prior written approval. Upon written notice of intent to transfer the wholesaler's business, any individual owning an interest in a wholesaler may transfer that interest to any person who meets the reasonable qualifications required by the supplier. The consent or approval of the supplier is required for any transfer of the wholesaler's business to a proposed transferee to assure that the proposed transferee meets the reasonable qualifications of the supplier. The supplier may not withhold consent without good cause. The supplier may not interfere with, prevent or unreasonably delay the transfer of wholesaler's business, including an assignment of wholesaler's rights under the agreement, if the proposed transferee meets the reasonable qualifications required by the supplier. For the purposes of this section, the term, "unreasonable delay," means a period exceeding sixty days after receipt by supplier of all information reasonably requested from the wholesaler unless a longer period of time is justified by the circumstances. The supplier has the burden of showing that he has acted reasonably and in good faith in refusing to consent to the transfer of the wholesaler's business or the assignment of the wholesaler's rights under the agreement.
Source: SL 1990, ch 300, § 10.
35-8A-11. Distribution agreement binding upon successor.
A successor to a supplier or wholesaler is bound by each distribution agreement the predecessor was a party to at the time of transfer with respect to each brand the successor continues to make available for sale in this state.
Source: SL 1990, ch 300, § 11.
35-8A-12. Waiver of rights void--Mutually binding agreements or voluntary dispute settlements not prohibited.
Any waiver of the rights or remedies granted by this chapter is void. However, nothing in this chapter limits or prohibits suppliers and wholesalers from entering into mutually binding written agreements as defined in this chapter or to limit or prohibit good faith dispute settlements voluntarily entered into by the parties. However, no provision of any written agreement may purport to require the law of any state other than South Dakota to govern the relationship of the parties or to require wholesalers to waive the right to have disputes with their suppliers resolved in courts of competent jurisdiction in South Dakota or to require a wholesaler to waive the right to trial by jury in South Dakota.
Source: SL 1990, ch 300, § 12; SL 1999, ch 187, § 1.
35-8A-13. Unreasonable amendment prohibited.
No supplier may require a wholesaler to assent to any amendment to a distribution agreement which is either unreasonable or not made in good faith.
Source: SL 1990, ch 300, § 13.
35-8A-14. Exclusive sales territories--Designated wholesaler.
Each supplier of malt beverages licensed by the state authorizing any licensee to sell its malt beverages shall sell its malt beverages through wholesale licensees of the state to retail licensees authorized under state statute, shall designate exclusive sales territories for every brand or brands sold in the state, and shall name one licensed wholesaler for sales territory who, within that territory, shall be the exclusive wholesaler for the designated brand or brands of said supplier. Such supplier shall enter into a territorial agreement, in writing, designating the exclusive territory and authorizing the sale by a designated licensed wholesaler of that brand or brands within the designated territory. Such supplier may not designate more than one wholesaler for each brand for all or any part of a designated sales territory, and the written territorial agreement may not provide for the distribution of a brand or brands to more than one licensed wholesaler for all or any part of the designated territory. No modification of either the designated sales territory or any territorial agreement is effective unless the supplier has acted in good faith and for good cause and until written notice thereof has been given by the supplier to the wholesaler. The wholesaler licensee designated as the exclusive wholesaler for a brand or brands within a designated territory shall service retail licensees within that territory without discrimination, and shall service for the purpose of quality control all of the malt beverages sold by that wholesaler to retailers within such territory.
No wholesaler may, without the prior approval of the supplier, sell that supplier's malt beverage products to any retailer whose place of business is outside of the wholesaler's designated sales territory for such products, or to any person the wholesaler knows or should know will sell or supply such products to any such retailer. Any violation of the provisions of this section shall subject the licensee to penalties and damages as set forth in Title 37.
Source: SL 1990, ch 300, § 14.
35-8A-15. Application of chapter.
The provisions of this chapter shall cover agreements in existence on July 1, 1990, as well as agreements entered into after July 1, 1990. Any written agreement continuous in nature or which has no specific duration or renewal provision which is in existence on July 1, 1990, shall be considered, for the purposes of this chapter, to have been renewed ninety days after July 1, 1990.
Source: SL 1990, ch 300, § 15.
35-8A-16. Brand defined.
For purposes of this chapter, the term, brand, means any word, name, group of letters, symbol, or combination thereof, that is adopted and used by a brewer or importer to identify a specific beer product, and to distinguish that beer product from another beer product.
Source: SL 1999, ch 187, § 3.
35-8A-17. Brand extension defined.
For purposes of this chapter, the term, brand extension, means any brand that incorporates all or a substantial part of the unique features of a preexisting brand of the same brewer or importer and that relies to a significant extent on the goodwill associated with that preexisting brand.
Source: SL 1999, ch 187, § 4.
35-8A-18. Brand extension to be assigned wholesaler granted exclusive sales territory for preexisting brand--Exemption.
Any brewer or importer, who assigns a brand extension to a wholesaler, shall assign the brand extension to the wholesaler to whom the brewer or importer granted the exclusive sales territory for the brand from which the brand extension resulted. This requirement does not apply to any assignment of a brand extension to a wholesaler that was made by a brewer or importer before July 1, 1999.
Source: SL 1999, ch 187, § 5.
35-8A-19. Future brand extensions to be assigned wholesaler who first had brand.
If prior to July 1, 1999, a brewer or importer assigned a brand extension to a wholesaler who was not the appointed wholesaler for the brand from which the brand extension was made, then any additional brand extension shall be assigned to the wholesaler who first had the brand.
Source: SL 1999, ch 187, § 6.
35-8A-20. Application of certain amended and enacted sections.
The 1999 amendments to §§ 35-8A-9 and 35-8A-12 and §§ 35-8A-16 to 35-8A-19, inclusive, apply to any agreement in existence as of July 1, 1999, as well as any agreement entered into after July 1, 1999. Any written agreement in existence on July 1, 1999, which is continuous in nature or which has no specific duration or renewal provision, shall be considered, for the purpose of §§ 35-8A-9 and 35-8A-12 and 35-8A-16 to 35-8A-19, inclusive, to have been renewed ninety days after July 1, 1999.
Source: SL 1999, ch 187, § 9.
35-9-1
Furnishing alcoholic beverage to child prohibited--Exceptions--Violation as
misdemeanor--Civil liability.
35-9-1.1
Furnishing alcoholic beverage to person eighteen years or older but less than twenty-one years prohibited--Exceptions--Violation as misdemeanor--Civil liability.
35-9-1.2
Reasonable attempt to investigate age.
35-9-1.3
Sale of alcoholic beverage to underaged person based on false identification
document--Conviction barred.
35-9-1.4
Circumstances under which criminal penalty may not be imposed on licensee for
furnishing alcoholic beverage to underage person.
35-9-1.5
Fine imposed on licensee when sale does not constitute criminal offense.
35-9-1.6
Hearing on liability for furnishing alcoholic beverage to underage person--Amount
of fine.
35-9-2
Purchase, possession, or consumption of beverage by person under twenty-one years
prohibited--Exception--Misrepresentation of age--Violation as misdemeanor.
35-9-2.1
Merchant may detain person under twenty-one who purchases, attempts to purchase
or possesses alcoholic beverage--Conditions.
35-9-2.2
Merchant to post notice if persons illegally attempting to purchase alcoholic
beverages will be detained.
35-9-2.3
Purchase of beverage by adult for person under twenty-one as misdemeanor.
35-9-2.4
Immunity from prosecution for offense arising out of underage consumption for
person who assists person in need of emergency assistance.
35-9-2.5
Immunity from prosecution for offense arising out of underage consumption for
person who reports own need of emergency assistance.
35-9-3
Repealed.
35-9-4
Repealed.
35-9-4.1
Legislative intent and purpose for raising minimum drinking age.
35-9-5
Repealed.
35-9-6
Determination of venue when minor apprehended for purchase, possession, or
consumption of alcoholic beverage.
35-9-6.1
Determination of venue in juvenile adjudication arising from purchase, possession,
or consumption of alcoholic beverage.
35-9-7
Driver's license suspension or restriction for certain violations.
35-9-8
Driver's license revocation for certain violations.
35-9-9
Social host prohibited from permitting consumption of alcoholic beverages by person
under age eighteen--Misdemeanor.
35-9-10
Social host prohibited from permitting consumption of alcoholic beverages by person
age eighteen, nineteen, or twenty--Misdemeanor.
35-9-11
Defense available to social host.
35-9-12
Social host's lack of physical presence not a defense.
35-9-13
Social host defined.
35-9-1. Furnishing alcoholic beverage to child prohibited--Exceptions--Violation as misdemeanor--Civil liability.
It is a Class 1 misdemeanor to sell or give for use as a beverage any alcoholic beverage to any person under the age of eighteen years unless:
(1) It is done in the immediate presence of a parent or guardian or spouse, who is at least twenty-one years of age, while not on the premises of an establishment licensed for the retail sale of alcoholic beverages pursuant to § 35-4-2 or at a special event for which an alcoholic beverage license has been issued; or
(2) It is done by prescription or direction of a duly licensed practitioner or nurse of the healing arts for medicinal purposes.
However, no licensee is civilly liable to any injured person or the injured person's estate for any injury suffered, including any action for wrongful death, or property damage suffered because of the sale or consumption of any alcoholic beverage in violation of the provisions of this section.
Source: SL 1939, ch 13; SL 1943, ch 14, §§ 1, 2; SL 1959, ch 9; SL 1959, ch 46, §§ 1, 2; SDC Supp 1960, §§ 5.0227-2, 5.9910, 13.3304; SL 1963, ch 19; SL 1965, ch 31; SDCL § 26-10-3; SL 1971, ch 211, § 110; SL 1972, ch 154, § 19; SL 1977, ch 190, § 131; SL 1984, ch 249, § 3; SL 1987, ch 261, § 11; SL 1990, ch 301, § 1; SL 1999, ch 188, § 1; SL 2010, ch 180, § 35.
35-9-1.1. Furnishing alcoholic beverage to person eighteen years or older but less than twenty-one years prohibited--Exceptions--Violation as misdemeanor--Civil liability.
It is a Class 2 misdemeanor to sell or give for use as a beverage any alcoholic beverage to any person who is eighteen years of age or older but less than twenty-one years of age unless it is done in the immediate presence of a parent or guardian or spouse over twenty-one years of age or by prescription or direction of a duly licensed practitioner or nurse of the healing arts for medicinal purposes.
However, no licensee is civilly liable to any injured person or the injured person's estate for any injury suffered, including any action for wrongful death, or property damage suffered because of the sale or consumption of any alcoholic beverage in violation of the provisions of this section.
Source: SL 1990, ch 301, § 2; SL 2010, ch 180, § 36.
35-9-1.2. Reasonable attempt to investigate age.
Any person charged with a violation of § 35-9-1, 35-9-1.1, or 35-12B-7, may offer evidence, as a defense, that the person made a reasonable attempt to investigate the age of the person by examining an age-bearing identification document that would have appeared valid to a reasonable and prudent person.
Source: SL 1991, ch 299; SL 2000, ch 182, § 1; SL 2010, ch 180, § 60; SL 2015, ch 196, § 8, eff. Jan. 1, 2016.
35-9-1.3. Sale of alcoholic beverage to underaged person based on false identification document--Conviction barred.
No person may be convicted of illegally selling any alcoholic beverage to any underage person pursuant to § 35-9-1 or 35-9-1.1, if the underage person was in possession of, and the seller relied upon, any false age-bearing identification document that was furnished to the underage person by any state agency or local law enforcement agency or any agent, employee, contractor, or associate of any state agency or local law enforcement agency for the purpose of attempting to illegally purchase any alcoholic beverage.
Source: SL 2000, ch 183, § 1.
35-9-1.4. Circumstances under which criminal penalty may not be imposed on licensee for furnishing alcoholic beverage to underage person.
No criminal penalty may be imposed on a licensee licensed pursuant to this title if:
(1) The person making the sale in violation of § 35-9-1 or 35-9-1.1 is an employee or agent of the licensee;
(2) The employee or agent does not own a controlling interest in the licensee; and
(3) The licensee or person having a controlling interest in the licensee is not present at the time of the sale.
Source: SL 2010, ch 180, § 41.
35-9-1.5. Fine imposed on licensee when sale does not constitute criminal offense.
If a sale is in violation of § 35-9-1 or 35-9-1.1 and does not constitute a criminal offense against the licensee, the state's attorney for the county in which the sale took place may as part of any proceeding against the person making the sale request that the court require the licensee to pay a fine in accordance with §§ 35-9-1.4 to 35-9-1.6, inclusive.
Source: SL 2010, ch 180, § 42.
35-9-1.6. Hearing on liability for furnishing alcoholic beverage to underage person--Amount of fine.
Upon a request from the state's attorney and notice to the licensee, the court shall conduct a hearing to determine if the licensee is liable under §§ 35-9-1.4 to 35-9-1.6, inclusive, and upon a finding that the licensee is liable, the court may order the licensee to pay a fine not to exceed:
(1) Five hundred dollars upon the first violation within two years;
(2) Seven hundred fifty dollars upon the second violation within two years; and
(3) One thousand dollars for the third violation within two years.
Source: SL 2010, ch 180, § 43.
35-9-2. Purchase, possession, or consumption of beverage by person under twenty-one years prohibited--Exception--Misrepresentation of age--Violation as misdemeanor.
It is a Class 2 misdemeanor for any person under the age of twenty-one years to purchase, attempt to purchase, or possess or consume alcoholic beverages except pursuant to § 35-9-1.1 or when consumed in a religious ceremony and given to the person by an authorized person, or to misrepresent his or her age with the use of any document for the purpose of purchasing or attempting to purchase alcoholic beverages from any licensee licensed under this title.
Source: SL 1949, ch 18, §§ 1, 2; SDC Supp 1960, §§ 5.0227-1, 5.9909; SL 1963, ch 16; SL 1968, ch 5; SL 1971, ch 211, § 111; SL 1977, ch 190, § 132; SL 1987, ch 261, § 12; SL 2010, ch 180, § 61.
35-9-2.1. Merchant may detain person under twenty-one who purchases, attempts to purchase or possesses alcoholic beverage--Conditions.
Any merchant who is a licensee under this title, or the merchant's employee, who has reasonable grounds to believe a person under the age of twenty-one has illegally purchased, attempted to purchase, or possess alcoholic beverages or has misrepresented the person's age with the use of any document for purposes of purchasing or attempting to purchase alcoholic beverages from the merchant or the merchant's employee, may detain the person, on the premises of the merchant's establishment, in a reasonable manner and for a reasonable length of time:
(1) To request identification;
(2) To verify the identification;
(3) To make reasonable inquiry as to whether the person has violated § 35-9-2;
(4) To inform a law enforcement officer of the detention of the person and surrender that person to the custody of a law enforcement officer; or
(5) In the case of a minor, to inform a law enforcement officer or the parents, guardian, or other private person interested in the welfare of that minor of this detention and to surrender custody of the minor to that person.
Source: SL 2000, ch 185, § 1.
35-9-2.2. Merchant to post notice if persons illegally attempting to purchase alcoholic beverages will be detained.
If a merchant chooses to implement the provisions of § 35-9-2.1, the merchant shall conspicuously post a notice, on the merchant's premises, stating that any person who the merchant reasonably believes was under the age of twenty-one and has attempted to purchase alcoholic beverages, will be detained and surrendered to a law enforcement officer.
Source: SL 2000, ch 185, § 2.
35-9-2.3. Purchase of beverage by adult for person under twenty-one as misdemeanor.
Except as provided in §§ 35-9-1 and 35-9-1.1, it is a Class 1 misdemeanor for any person twenty-one years of age or older to purchase or otherwise acquire alcoholic beverages from a retail establishment and to give or resell the alcoholic beverages to any person under the age of twenty-one years.
Source: SL 2000, ch 184, § 1.
35-9-2.4. Immunity from prosecution for offense arising out of underage consumption for person who assists person in need of emergency assistance.
No person may be arrested or prosecuted for any misdemeanor offense of underage consumption, open container, or public intoxication, arising out of underage consumption of alcohol if that person contacts any law enforcement or emergency medical services and reports that a person is in need of emergency medical assistance due to alcohol consumption and that person:
(1) Assists the person in need of emergency medical assistance until assistance arrives; and
(2) Remains and cooperates with medical assistance and law enforcement personnel on the scene.
Source: SL 2016, ch 191, § 1.
35-9-2.5. Immunity from prosecution for offense arising out of underage consumption for person who reports own need of emergency assistance.
No person under the age of twenty-one years may be prosecuted for any misdemeanor offense of underage consumption, open container, or public intoxication, arising out of underage consumption of alcohol if that person contacts law enforcement or emergency medical services and reports that he or she is in need of medical assistance due to alcohol consumption and that person remains and cooperates with medical assistance and law enforcement personnel on the scene.
Source: SL 2016, ch 191, § 2.
35-9-4.1. Legislative intent and purpose for raising minimum drinking age.
The South Dakota Legislature enacts chapter 261 of the 1987 Session Laws to raise the state's minimum drinking age to twenty-one years of age solely under the duress of a funding sanction imposed by the United States Department of Transportation under 23 U.S.C § 158. The Legislature strongly objects to being forced to choose between loss of highway construction funds, which are badly needed to construct priority road projects to promote the public health and safety of the state's inhabitants and visitors, and loss of its right to set its own drinking age. The action taken by this Legislature shall not be construed as a concession or waiver of its constitutional right to establish at what age an individual may lawfully purchase, possess, and consume alcoholic beverages. Rather, it is taken to ensure that South Dakota is not penalized while it challenges in the United States Supreme Court the federal government's attempt to usurp the state's right to regulate the drinking age of its citizens. This legislation is enacted with the expressed intent of providing the South Dakota attorney general the maximum flexibility to pursue South Dakota's challenge to the federal government's intrusion into a right reserved to the state while ensuring the full availability of federal highway funds for the 1988 construction season. It is the intent of this Legislature that if at any time before or after the effective date of this legislation the provisions of 23 U.S.C § 158 are repealed, expired or declared invalid by the United States Supreme Court, the provisions of this legislation shall become null and void and any provision repealed by SL 1987, ch 261 shall be revived pursuant to § 2-14-19.
Source: SL 1987, ch 261.
35-9-6. Determination of venue when minor apprehended for purchase, possession, or consumption of alcoholic beverage.
In any arrest, citation, or prosecution arising from a violation of § 35-9-2, if the person is apprehended for:
(1) The purchase or attempted purchase of alcoholic beverages, the venue is the locality where the purchase or attempted purchase occurred;
(2) The possession or consumption of alcoholic beverages, the venue is the locality where the person was apprehended or any other locality where the person possessed or consumed any portion of the alcoholic beverages.
Source: SL 2000, ch 186, § 1; SL 2001, ch 197, § 1.
35-9-6.1. Determination of venue in juvenile adjudication arising from purchase, possession, or consumption of alcoholic beverage.
In any juvenile adjudication arising from a violation of § 35-9-2, if the person is apprehended for:
(1) The purchase or attempted purchase of alcoholic beverages, the venue is the locality where the purchase or attempted purchase occurred or the juvenile's county of residence;
(2) The possession or consumption of alcoholic beverages, the venue is the locality where the juvenile was apprehended or any other locality where the juvenile possessed or consumed any portion of the alcoholic beverages or the juvenile's county of residence.
Source: SL 2001, ch 197, § 2.
35-9-7. Driver's license suspension or restriction for certain violations.
If the conviction or adjudication for a violation of § 35-9-1.1 or 35-9-2 is for a first offense, the court may, in addition to any other penalty allowed by law, order the suspension of the person's driving privileges for a period not less than thirty days and not to exceed one year. Moreover, the court may issue an order permitting the person to operate a motor vehicle for purposes of the person's employment or attendance at school or to court-ordered counseling programs during the hours of the day and the days of the week set forth in the order. The court may also restrict the privilege in some other manner as the court may see fit for a period not to exceed one year.
If the conviction or adjudication for a violation of § 35-9-1.1 or 35-9-2 is for a second or subsequent offense, the court may, in addition to any other penalty allowed by law, order the suspension of the person's driving privileges for a period not less than sixty days and not to exceed one year. Moreover, the court may issue an order permitting the person to operate a motor vehicle for purposes of the person's employment or attendance at school or to court-ordered counseling programs during the hours of the day and the days of the week set forth in the order. The court may also restrict the privilege in some other manner as the court may see fit for a period not to exceed one year.
Source: SL 2000, ch 177, § 2; SL 2001, ch 174, § 2; SL 2002, ch 174, § 1; SL 2012, ch 192, § 1.
35-9-8. Driver's license revocation for certain violations.
If the conviction or adjudication for a violation of § 35-9-1 is for a first offense, the court shall, in addition to any other penalty allowed by law, order the revocation of the defendant's driving privileges for a period not less than thirty days and not to exceed one year. However, the court may issue an order permitting the person to operate a motor vehicle for purposes of the person's employment or attendance at school or to court-ordered counseling programs during the hours of the day and the days of the week set forth in the order. The court may also restrict the privilege in such manner as it sees fit for a period not to exceed one year.
If the conviction or adjudication for a violation of § 35-9-1 is for a second or subsequent offense, the court shall, in addition to any other penalty allowed by law, order the revocation of the defendant's driving privileges for a period not less than sixty days and not to exceed one year.
Source: SL 2001, ch 174, § 3.
35-9-9. Social host prohibited from permitting consumption of alcoholic beverages by person under age eighteen--Misdemeanor.
No person, acting as a social host, may, knowingly, permit any person under the age of eighteen to illegally consume any alcoholic beverage, regardless of the source of the alcoholic beverage, on or at the premises of the person acting as social host. Any violation of this section is a Class 1 misdemeanor.
Source: SL 2014, ch 177, § 1.
35-9-10. Social host prohibited from permitting consumption of alcoholic beverages by person age eighteen, nineteen, or twenty--Misdemeanor.
No person, acting as a social host, may, knowingly, permit any person aged eighteen, nineteen, or twenty to illegally consume any alcoholic beverage, regardless of the source of the alcoholic beverage, on or at the premises of the person acting as social host. Any violation of this section is a Class 2 misdemeanor.
Source: SL 2014, ch 177, § 2.
35-9-11. Defense available to social host.
It is a defense against a conviction for a violation of §§ 35-9-9 and 35-9-10 that, immediately upon learning of the illegal consumption, the social host or an agent of the social host took effective and appropriate action to stop the illegal consumption and to secure or to attempt to secure the contraband alcoholic beverages.
Source: SL 2014, ch 177, § 3.
35-9-12. Social host's lack of physical presence not a defense.
It is not a defense of a violation of §§ 35-9-9 and 35-9-10 that the social host was not physically present on or at the premises if the social host knew that illegal consumption of alcoholic beverages would occur in his or her absence.
Source: SL 2014, ch 177, § 4.
35-9-13. Social host defined.
For purposes of §§ 35-9-9 to 35-9-12, inclusive, the term, social host, means anyone who hosts a social gathering and knowingly condones the illegal consumption of alcohol by underage persons on property that the host controls.
Source: SL 2014, ch 177, § 5.
35-10-1
Promulgation of rules.
35-10-2, 35-10-3.
Repealed.
35-10-4
Subpoena and administration of oaths by secretary.
35-10-5, 35-10-6.
Repealed
.
35-10-7
Repealed.
35-10-8
Enforcement and collection of cost penalties assessed for violations.
35-10-9
Notice of convictions mailed to local and state licensing authorities.
35-10-10
Repealed.
35-10-11
Beverages unlawfully used or possessed as contraband--Conviction as
confiscation--Return to owner on dismissal.
35-10-12
Application by officer for judicial determination as to beverages--Notice of time
and place of hearing.
35-10-13
Determination as to status of beverages seized--Order for return to owner or
confiscation.
35-10-14
Report of beverages confiscated--Destruction of unsalable beverages.
35-10-15
Custody and storage of salable confiscated beverages.
35-10-16
Sale by secretary of confiscated beverages--Disposition of proceeds.
35-10-17
Place used for violation of beverage laws as common nuisance--Maintenance as
misdemeanor.
35-10-18
Lien against place of violation for fines and costs assessed--Enforcement of lien.
35-10-19
Action to enjoin nuisance--Bond not required.
35-10-20
Action secured against premises--Parties defendant.
35-10-21
Temporary injunction in action to enjoin nuisance.
35-10-22
Order prohibiting manufacture, sale or storage of beverages and occupancy of
place of violation.
35-10-23
Bond to secure occupancy of place of violation--Conditions.
35-10-24
Repealed.
35-10-25
Summary punishment for contempt--Affidavits as prima facie case.
35-10-26
Pleadings and evidence in contempt actions.
35-10-27
Proceedings governed by general law of contempt.
35-10-1. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, regarding the following matters involving the sale, purchase, distribution, and licensing of alcoholic beverages under this title:
(1) The marking of bottles, cans, and other containers of alcoholic beverages showing the quantity of alcohol by weight and contents of the container;
(2) The invoicing of alcoholic beverages to licensees;
(3) Advertising and the offering of inducements by manufacturers and wholesalers to retailers or retailers to the consumer and may adopt the uniform code on advertising in whole or in part;
(4) The giving of samples by manufacturer and wholesaler licensees;
(5) The conduct of hearings for the suspension or revocation of licenses;
(6) The prohibition of discriminatory or unfair practices and the preclusion of subterfuges for the accomplishment of discrimination, including the filing and amendment of price schedules, preservation and conformity to price schedules, limitation of quantity discounts, extensions of credit by manufacturers or wholesalers to retail licensees, prohibiting cash discounts, commercial bribery, prescribing certain types of advertising specialties as being allowable, prohibiting unfair trade practices, requiring sale and delivery in its entirety, prohibiting participation in a violation by any class licensee or foreign dealer, prescribing periods of audit of licensees, limiting advertising that has a utility value to the retailers, prescribing rules for the miscellaneous disposition of liquor as gifts by manufacturers and wholesalers or breakage claimed by manufacturers or wholesalers;
(7) The reporting of information by corporations licensed under this title or seeking to be licensed under this title relating to the full disclosure of corporate information including stockholders, other licenses held, providing for hearing in the case of voluntary transfer and requiring report in case of involuntary transfers of stock;
(8) Bottle sizes of alcoholic beverages offered for sale. However, the department may not place any restrictions upon the distribution of 1.75 liter containers to any on-sale licensee, licensed pursuant to subdivision 35-4-2(4) or (6);
(9) Requiring licensees to furnish breakdowns and statistical information of various types of alcoholic beverages sold to consumers or to retail licensees for the consumers' use;
(10) The application, determination, and computation of the tax; and
(11) The determination of purchase price.
Source: SL 1965, ch 20; SL 1971, ch 211, § 113; revised pursuant to SL 1972, ch 15, § 4; SL 1987, ch 82, § 52; SL 1995, ch 53, § 12; SL 2010, ch 187, § 1; SL 2018, ch 213, § 128.
35-10-4. Subpoena and administration of oaths by secretary.
For the purposes of any hearing provided for by this title, the secretary may exercise the powers granted by § 1-26-19.1.
Source: SDC 1939, § 5.0102; revised pursuant to SL 1972, ch 15, § 4; SL 2010, ch 180, § 62.
35-10-8. Enforcement and collection of cost penalties assessed for violations.
Any cost penalty provided for by this title shall be included in the judgment of conviction and has all the force and effect of a judgment in a civil action. If the person against whom the cost penalty is assessed has furnished a bond as a licensee under this title, the surety is liable for the cost penalty. The cost penalty may be paid by the defendant to the clerk of the court that rendered the judgment in which the cost penalty was assessed. The payment shall operate as a satisfaction of the portion of the judgment relating to the cost penalty and shall be entered upon the judgment record accordingly. If not paid to the clerk, the judgment for the cost penalty shall be enforced by execution or other process, the same as any civil judgment. The clerk or any officer collecting the cost penalty shall, without delay, transmit the cost penalty to the state treasurer with a statement giving full information as to the source of the cost penalty. The state treasurer shall issue a receipt for the cost penalty to the person transmitting the cost penalty.
Source: SDC 1939, § 5.9901; SL 2008, ch 37, § 193; SL 2010, ch 180, § 63; SL 2011, ch 176, § 1.
35-10-9. Notice of convictions mailed to local and state licensing authorities.
If any licensed dealer in alcoholic beverages or the dealer's agent or employee is convicted of:
(1) A violation of any provision of this title, or any law or ordinance regulating the sale of alcoholic beverages; or
(2) Any violation of law or ordinance in the operation of the licensed premises,
the court or magistrate shall, within ten days after the conviction, mail a written notice of conviction to the finance officer of the municipality or the county auditor of the county having jurisdiction to approve alcoholic beverage licenses for the premises. A copy of the notice shall also be mailed to the department.
Source: SL 1961, ch 18; SL 1974, ch 55, § 36; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2008, ch 37, § 194; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2018, ch 213, § 131.
35-10-11. Beverages unlawfully used or possessed as contraband--Conviction as confiscation--Return to owner on dismissal.
Any alcoholic beverage used or possessed in violation of provisions of this title constitutes contraband goods, and is subject to confiscation as provided in this chapter. Any judgment of conviction of illegal use or possession against the person from whom the beverages were taken constitutes a confiscation of the beverages unless the beverages, within twenty days after the judgment, are claimed by some other person who establishes to the satisfaction of the court that the person is the true owner and had no participation in the illegal use or possession. If prosecution on any such charge terminates in a dismissal of the charge, any such beverages, if previously seized, shall be returned to the owner.
Source: SDC 1939, § 5.0122; SL 1971, ch 211, § 115; SL 2008, ch 37, § 196.
35-10-12. Application by officer for judicial determination as to beverages--Notice of time and place of hearing.
If there is no dismissal of prosecution or no judgment of conviction of illegal use or possession of alcoholic beverages, any officer seizing the beverages may apply to the court that issued the search warrant under which the beverages were seized, or if the beverages were not seized under a search warrant, to any court of record for the county where the beverages were seized, for an order determining whether the beverages were, in fact, possessed or used in violation of the provisions of this title. The court shall thereupon make an order fixing a time and place for hearing and providing for reasonable notice of the hearing to the person from whom the beverages were seized and to any probable claimant of the beverages. If the person or claimant is unknown, the notice may be by posting or publication as the court directs.
Source: SDC 1939, § 5.0122; SL 2008, ch 37, § 197.
35-10-13. Determination as to status of beverages seized--Order for return to owner or confiscation.
Upon hearing, the court shall determine whether alcoholic beverages seized were in fact used or possessed in violation of provisions of this title. If the court finds there was no such illegal use or possession, the court shall order the beverages returned to or held for the owner of the beverages. If the court determines that there was use or possession in violation of provisions of this title, the court shall adjudge the confiscation of the beverages.
Source: SDC 1939, § 5.0122; SL 2008, ch 37, § 198.
35-10-14. Report of beverages confiscated--Destruction of unsalable beverages.
Upon any adjudication in any form of confiscation of alcoholic beverages, the officer having custody of the beverages shall make a full report to the secretary setting forth the quantity, kind, and probable value of the beverages. If the beverages are of such character that the beverages cannot lawfully be sold, or are of insufficient value to justify an attempted sale, the secretary shall order the beverages destroyed. The officer in custody of the beverages shall comply with the order and shall report to the secretary that the order has been carried out.
Source: SDC 1939, § 5.0122; SL 2008, ch 37, § 199; SL 2010, ch 180, § 64.
35-10-15. Custody and storage of salable confiscated beverages.
If confiscated alcoholic beverages are lawfully salable, and of sufficient value to justify an attempted sale, the secretary shall take custody of the alcoholic beverages, and shall, pending sale, store the beverages at any convenient and safe place.
Source: SDC 1939, § 5.0122; SL 2008, ch 37, § 200; SL 2010, ch 180, § 58.
35-10-16. Sale by secretary of confiscated beverages--Disposition of proceeds.
If confiscated alcoholic beverages accumulate in sufficient quantities, the secretary shall notify all licensed wholesalers as to kinds and types of alcoholic beverages in the secretary's custody for sale. The secretary shall receive bids, and sales shall be made on the basis of the bids as the secretary deems advantageous to the state. All proceeds of any such sale by the secretary shall be deposited with the state treasurer and credited to the general fund.
Source: SDC 1939, § 5.0122; SL 2008, ch 37, § 201; SL 2010, ch 180, § 59.
35-10-17. Place used for violation of beverage laws as common nuisance--Maintenance as misdemeanor.
Any structure, conveyance, or place where alcoholic beverages are manufactured, sold, kept, bartered, given away, found, consumed, or used in violation of the laws of the state, relating to alcoholic beverages, and all alcoholic beverages and property kept and used in maintaining the same, is hereby declared to be a common nuisance, and any person who maintains such a common nuisance is guilty of a Class 1 misdemeanor.
Source: SL 1939, ch 15, § 1; SL 1943, ch 13; SDC Supp 1960, § 5.0114-2; SL 1971, ch 211, § 116; SL 1977, ch 190, § 135.
35-10-18. Lien against place of violation for fines and costs assessed--Enforcement of lien.
If a person has knowledge or reason to believe that the person's structure, conveyance, or place is occupied or used for the manufacture, sale, bartering, giving away, keeping, consuming, or using of alcoholic beverages, contrary to the provisions of the laws of the state, and if the person allows the structure, conveyance, or place to be so occupied or used, the structure, conveyance, or place is subject to a lien for and may be sold to pay all fines and costs assessed against the person guilty of such nuisance for such violation. Any such lien may be enforced by action in any court having jurisdiction.
Source: SL 1939, ch 15, § 1; SL 1943, ch 13; SDC Supp 1960, § 5.0114-2; SL 1971, ch 211, § 117; SL 2008, ch 37, § 202.
35-10-19. Action to enjoin nuisance--Bond not required.
An action to enjoin any nuisance, as defined in § 35-10-17, may be brought in the name of the State of South Dakota by the attorney general or by the state's attorney of the county in which the property constituting the nuisance is located. Any action to abate or to enjoin the nuisance may be commenced and conducted as other actions or proceedings for injunction. However, the complaint or affidavit used may be made on information and belief and no bond is required in instituting the proceedings or to secure the issuance of any such injunction.
Source: SL 1939, ch 15, § 2; SDC Supp 1960, § 5.0114-3; SL 2008, ch 37, § 203.
35-10-20. Action secured against premises--Parties defendant.
An action pursuant to § 35-10-19 may be maintained in any court having jurisdiction over such an action. An injunction may be secured against the premises in which the nuisance exists and against any person, partnership, club, association, or corporation, either severally or jointly, who, as owner, tenant, agent, keeper, servant, employee, or manager of any place or premises where the nuisance is created, kept, or maintained, allows the nuisance to exist or continue in any place or on any premises owned, managed, controlled, or occupied by the person, partnership, club, association, or corporation.
Source: SL 1939, ch 15, § 2; SDC Supp 1960, § 5.0114-3; SL 2008, ch 37, § 204.
35-10-21. Temporary injunction in action to enjoin nuisance.
If, in an action pursuant to § 35-10-19, it is made to appear by affidavits or otherwise, to the satisfaction of the court, or judge in vacation, that a nuisance exists, a temporary writ of injunction shall be issued, restraining the defendant from conducting or permitting the continuance of the nuisance until the conclusion of the trial. If a temporary injunction is sought, the court may issue an order restraining the defendant and all other persons from removing, or in any way interfering, with the alcoholic beverages or fixtures, or other things used in connection with the violation of the laws of this state constituting the nuisance.
Source: SL 1939, ch 15, § 2; SDC Supp 1960, § 5.0114-3; SL 2018, ch 213, § 132.
35-10-22. Order prohibiting manufacture, sale or storage of beverages and occupancy of place of violation.
It is not necessary in an action pursuant to § 35-10-19 for the court to find the property involved was being unlawfully used as described in § 35-10-17 at the time of the hearing. However, on finding that the material allegations of the petition are true, the court shall order that no alcoholic beverages may be manufactured, sold, bartered, or stored in the structure, conveyance, or place. Upon judgment of the court ordering the nuisance to be abated, the court may order that the structure, conveyance, or place not be occupied or used for one year thereafter.
Source: SL 1939, ch 15, § 2; SDC Supp 1960, § 5.0114-3; SL 1971, ch 211, § 118; SL 2008, ch 37, § 205.
35-10-23. Bond to secure occupancy of place of violation--Conditions.
Notwithstanding § 35-10-22, the court may permit the structure, conveyance, or place to be occupied or used if the owner, lessee, tenant, or occupant of the structure, conveyance, or place gives bond with sufficient surety, to be approved by the court making the order, in the penal and liquidated sum of not less than five hundred dollars nor more than one thousand dollars. The bond shall be payable to the state and conditioned that alcoholic beverages may not thereafter be manufactured, sold, bartered, kept, or otherwise disposed of in or on the structure, conveyance, or place, and that the owner, lessee, tenant, or occupant will pay all fines, costs, and damages that may be assessed for any violation of law relating to alcoholic beverages upon the property.
Source: SL 1939, ch 15, § 2; SDC Supp 1960, § 5.0114-3; SL 1971, ch 211, § 119; SL 2008, ch 37, § 206.
35-10-25. Summary punishment for contempt--Affidavits as prima facie case.
In contempt proceedings arising out of the violation of any order or injunction granted in any action or proceeding pursuant to § 35-10-19, the court or the judge thereof shall summarily, and without jury, try and punish the person or persons guilty thereof. The affidavits upon which any such attachment for contempt issue shall make a prima facie case for the state.
Source: SL 1939, ch 15, § 3; SDC Supp 1960, § 5.0114-4.
35-10-26. Pleadings and evidence in contempt actions.
The accused in any proceeding pursuant to § 35-10-25 may plead in the same manner as to an information or indictment, insofar as the same is applicable. Evidence may be oral or in the form of affidavits, or both. The court may require the defendant to answer interrogatories, either written or oral. The defendant need not necessarily be discharged upon the defendant's denial of the facts stated in the moving papers.
Source: SL 1939, ch 15, § 3; SDC Supp 1960, § 5.0114-4; SL 2008, ch 37, § 207.
35-10-27. Proceedings governed by general law of contempt.
Except as otherwise provided in §§ 35-10-25 and 35-10-26, the practice in contempt proceedings pursuant to § 35-10-25 shall conform as nearly as may be to the practice in contempt proceedings which is now or may hereafter be prescribed by the laws of this state.
Source: SL 1939, ch 15, § 3; SDC Supp 1960, § 5.0114-4.
35-11-1
Legislative finding--Abrogation of former rule.
35-11-2
Social hosts not liable.
35-11-1. Legislative finding--Abrogation of former rule.
The Legislature finds that the consumption of alcoholic beverages, rather than the serving of alcoholic beverages, is the proximate cause of any injury inflicted upon another by an intoxicated person. Therefore, the rule in Walz v. City of Hudson, 327 N.W. 2nd 120 (S.D. 1982) is hereby abrogated.
Source: SL 1985, ch 295, § 1.
35-11-2. Social hosts not liable.
No social host who furnishes any alcoholic beverage is civilly liable to any injured person or injured person's estate for any injury suffered, including any action for wrongful death, or property damage suffered because of the intoxication of any person due to the consumption of the alcoholic beverage.
Source: SL 1985, ch 295, § 3; SL 2008, ch 37, § 208.
35-12-1 to 35-12-12.
Repealed.
35-12-13
Farm winery defined.
35-12-14
License fee.
35-12-15
Application of title.
35-12-16
Excise tax.
35-12-17
Requirement to use agricultural products grown or produced in
state--Exception--Perjury.
35-12-18
Permitted sales--Limitation.
35-12-19
Permitted licenses.
35-12-20
Additional locations--Limitation.
35-12-21
Registration of labels.
35-12-22
Promulgation of rules
.
35-12-13. Farm winery defined.
For the purposes of this chapter, the term, farm winery, means any manufacturer located in this state producing wine, as defined in § 35-1-1, in a total quantity not in excess of one hundred fifty thousand gallons within a calendar year, where at least fifty percent of the raw materials used in the finished product are grown or produced in this state, and without the use of wine imported from outside this state.
Source: SL 2018, ch 222, § 1.
35-12-14. License fee.
The fee for a farm winery license is five hundred dollars.
Source: SL 2018, ch 222, § 2.
35-12-15. Application of title.
Except as provided in this chapter, 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 chapter.
Source: SL 2018, ch 222, § 3.
35-12-16. Excise tax.
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this chapter 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. Notwithstanding any other provision of law, the taxes imposed on a farm winery shall be deposited in the general fund.
Source: SL 2018, ch 222, § 4.
35-12-17. Requirement to use agricultural products grown or produced in state--Exception--Perjury.
Any applicant for a license as a farm winery shall verify, under oath, compliance with the requirement to use agricultural products grown or produced in this state. However, if South Dakota agricultural products are not available in sufficient quantities, the applicant may use imported agricultural products for the period covered by the license, but may not use imported alcoholic beverages. Any person who signs a statement as provided for in this section, knowing the statement to be false or untrue, in whole or in part, is guilty of perjury.
Source: SL 2018, ch 222, § 5.
35-12-18. Permitted sales--Limitation.
A licensed farm winery may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed farm winery may sell alcoholic beverages produced by the licensee to any wholesaler or retailer authorized to receive the alcoholic beverages. A licensed farm winery may sell alcoholic beverages to any licensed artisan distiller, farm winery, microbrewery, or microcidery, if the alcoholic beverage is used in the manufacturing process.
The quantity of alcoholic beverages sold pursuant to this section may not exceed the total production limits for the license as specified in § 35-12-13.
Source: SL 2018, ch 222, § 6.
35-12-19. Permitted licenses.
A licensed farm winery may hold on the licensed premises an artisan distiller license, a microbrewery license, or a microcidery license. A licensed farm winery may hold on the licensed premises any license issued pursuant to subdivision 35-4-2(4), (6), (12), or (16).
Source: SL 2018, ch 222, § 7.
35-12-20. Additional locations--Limitation.
A licensed farm winery may operate 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 § 35-12-13. Any additional license issued pursuant to this section has the privileges of the original license as specified in §§ 35-12-18 and 35-12-19.
Source: SL 2018, ch 222, § 8.
35-12-21. Registration of labels.
The holder of any license issued under this chapter 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.
Source: SL 2018, ch 222, § 9.
35-12-22. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this chapter, and procedures for collecting the excise taxes pertaining to the licenses.
Source: SL 2018, ch 222, § 10.
35-12A-1
Purchase of wine not in distribution in state--Ordering procedures.
35-12A-2
No registration fee for certain annual purchase totals.
35-12A-3
Limit on wine received from another state for personal use--Resale prohibited--Exception--Violation a misdemeanor--Department of Revenue to promulgate rules.
35-12A-4, 35-12A-5. Repealed.
35-12A-1. Purchase of wine not in distribution in state--Ordering procedures.
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. The person may place an order with a licensee as defined in subdivision 35-4-2(3), (5), or (12). 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), (5), or (12).
Source: SL 2003, ch 197, § 1; SL 2015, ch 196, § 19, eff. Jan. 1, 2016.
35-12A-2. No registration fee for certain annual purchase totals.
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 chapter, no registration fee pursuant to chapter 39-13 may be imposed.
Source: SL 2003, ch 197, § 2; SL 2015, ch 196, § 20, eff. Jan. 1, 2016.
35-12A-3. Limit on wine received from another state for personal use--Resale prohibited--Exception--Violation a misdemeanor--Department of Revenue to promulgate rules.
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 chapter.
Source: SL 2003, ch 197, § 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
CHAPTER 35-12B
DIRECT SHIPMENTS OF WINE
35-12B-1 Definitions.
35-12B-2 Wine direct shipper license requirements.
35-12B-3 Wine carrier license requirements.
35-12B-4 Duration of wine direct shipper license and wine carrier license.
35-12B-5 Sale and shipment of wine registered for direct shipment--Requirements.
35-12B-6 Package labeling requirements--Penalty for violations.
35-12B-7 Delivery of shipment by wine carrier--Requirements--Penalty for violation.
35-12B-8 Limit on amount of wine received--Resale prohibited--Violation as misdemeanor.
35-12B-9 Shipment in accordance with federal permit--Violation as misdemeanor.
35-12B-10 State jurisdiction--Audit of records.
35-12B-11 Direct shipper quarterly reports.
35-12B-12 Wine carrier quarterly reports.
35-12B-13 Tax payments.
35-12B-14 Electronic submission of reports--Electronic tax payments.
35-12B-15 Sale and shipment of wine without direct shipper license prohibited--Action by department for violation--Civil penalty.
35-12B-16 Promulgation of rules.
35-12B-17 Internet website list of wine labels registered for sale and shipment.
35-12B-1. Definitions.
Terms used in this chapter mean:
(1) "Common carrier," a carrier which holds itself out to the general public as engaged in the business of transporting goods for a fee;
(2) "Department," the South Dakota Department of Revenue;
(3) "Direct shipper," a winery that has obtained a wine direct shipper license;
(4) "Purchase price," the price of a product charged to the end consumer before the application of South Dakota state and local taxes;
(5) "Wine carrier," a common carrier that has obtained a wine carrier license;
(6) "Winery," a winery that produces its own wine and holds a federal basic wine manufacturing permit.
Source: SL 2015, ch 196, § 1, eff. Jan. 1, 2016.
35-12B-2. Wine direct shipper license requirements.
Any winery located within or outside of the state may obtain a wine direct shipper license. An applicant for an initial or renewal wine direct shipper license shall:
(1) File an application with the department on a form prescribed by the department;
(2) Pay a license fee of one hundred dollars;
(3) Submit a copy of the applicant's current federal basic wine manufacturing permit;
(4) Register each brand label offered for sale in this state, if not previously registered, and pay all applicable brand registration fees pursuant to chapter 39-13;
(5) Hold a South Dakota sales and use tax license issued by the department; and
(6) Be current on the remittance of all applicable state and local taxes.
The department shall issue a wine direct shipper license to any applicant who meets the requirements of this chapter.
Source: SL 2015, ch 196, § 2, eff. Jan. 1, 2016.
35-12B-3. Wine carrier license requirements.
Any common carrier may apply for a wine carrier license. An applicant for an initial or renewal wine carrier license shall:
(1) File an application with the department on a form prescribed by the department; and
(2) Pay a license fee of one hundred dollars.
The department shall issue a wine carrier license to any applicant who meets the requirements of this chapter. Any money collected pursuant to this section shall be deposited in the general fund.
Source: SL 2015, ch 196, § 3, eff. Jan. 1, 2016.
35-12B-4. Duration of wine direct shipper license and wine carrier license.
Each wine direct shipper license and wine carrier license is valid from twelve o'clock midnight on the thirty-first day of December to twelve o'clock midnight on the thirty-first day of the next December. However, the license is valid for an additional three days if a proper application for a new license is in the possession of the department before midnight on the thirty-first day of December when the license expires. The full fee shall be charged for any license for a portion of the period.
Source: SL 2015, ch 196, § 4, eff. Jan. 1, 2016.
35-12B-5. Sale and shipment of wine registered for direct shipment--Requirements.
Notwithstanding any other provisions of title 35, a direct shipper licensed pursuant to this chapter may sell and ship wine to any person in this state who is twenty-one years of age or older if the wine is registered for direct shipment as required pursuant to § 35-12B-2. Before shipping the wine, the direct shipper shall verify the age of the person placing the order by obtaining a copy of the person's valid age-bearing photo identification document issued by this state, another state, or the federal government, or by using an age verification service. The direct shipper shall record the name, address, date of birth, and telephone number of the person placing the order on the order form or other verifiable record. The direct shipper shall notify the person placing the order that the recipient of the shipment is required to show a valid age-bearing photo identification document issued by this state, another state, or the federal government upon delivery. No direct shipper may ship more than twelve cases of wine, containing no more than nine liters per case, in any calendar year to any person for personal use under this chapter.
Source: SL 2015, ch 196, § 5, eff. Jan. 1, 2016.
35-12B-6. Package labeling requirements--Penalty for violations.
A direct shipper shall label each package to be shipped in accordance with the provisions of this chapter so that it conspicuously contains words indicating the package contains alcohol and that the signature of a person twenty-one years of age or older is required for delivery. Any direct shipper who causes a direct shipment of wine in violation of the provisions of § 35-12B-5 or this section is subject to a civil penalty of one thousand dollars for a first offense and two thousand dollars for a second or subsequent offense. Penalties may be levied by the Department of Revenue. Any money collected pursuant to this section shall be deposited in the general fund.
Source: SL 2015, ch 196, § 6, eff. Jan. 1, 2016.
35-12B-7. Delivery of shipment by wine carrier--Requirements--Penalty for violation.
Each shipment of wine made in accordance with this chapter shall be delivered by a wine carrier and shall be accompanied by a shipping label that conforms to the requirements contained in § 35-12B-6. The wine carrier shall obtain the signature of a person twenty-one years of age or older prior to delivery of the shipment, and shall request that the person signing for the shipment display a valid age-bearing photo identification document issued by this state, another state, or the federal government verifying that the person is twenty-one years of age or older.
Any common carrier or wine carrier who delivers wine to a person under twenty-one years of age is subject to a civil penalty of one thousand dollars for a first offense and two thousand dollars for a second or subsequent offense. Any money collected pursuant to this section shall be deposited in the general fund.
Source: SL 2015, ch 196, § 7, eff. Jan. 1, 2016.
35-12B-8. Limit on amount of wine received--Resale prohibited--Violation as misdemeanor.
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 under this chapter. No person who receives wine pursuant to the provisions of this chapter may resell any of the wine. It is a Class 2 misdemeanor for any person to receive more than twelve cases of wine during a calendar year in violation of the provisions of this chapter. It is a Class 1 misdemeanor for any person to resell or attempt to resell any wine obtained pursuant to the provisions of this chapter.
Source: SL 2015, ch 196, § 9, eff. Jan. 1, 2016.
35-12B-9. Shipment in accordance with federal permit--Violation as misdemeanor.
A direct shipper may only ship wine that was produced by the direct shipper in accordance with the direct shipper's federal basic wine manufacturing permit. A violation of this section is a Class 2 misdemeanor.
Source: SL 2015, ch 196, § 10, eff. Jan. 1, 2016.
35-12B-10. State jurisdiction--Audit of records.
A direct shipper is deemed to have consented to the jurisdiction of the department and the courts of the State of South Dakota with respect to the enforcement of the provisions of this chapter. The direct shipper shall allow the department to perform an audit of the direct shipper's records, including any documents used to verify the age of any person ordering wine from the direct shipper and provide copies of any such records upon request.
Source: SL 2015, ch 196, § 11, eff. Jan. 1, 2016.
35-12B-11. Direct shipper quarterly reports.
A direct shipper shall file quarterly reports with the department on or before the fifteenth day of the month following each quarterly period. The required quarterly report shall be filed even if no business was transacted in this state during the reporting period.
The report shall include:
(1) The business name, address, and direct shipper license number of the direct shipper;
(2) The total gallons of wine shipped to recipients in this state during the quarterly period;
(3) The name and address of shipment recipients in this state and the number of cases, or portions thereof, received per recipient during the quarterly period;
(4) The wine carrier or carriers used to deliver each shipment;
(5) The date, wine type, brand label, quantity, and purchase price of each shipment, along with any taxes paid by the purchaser, during the quarterly period; and
(6) The tracking number of each shipment.
Source: SL 2015, ch 196, § 12, eff. Jan. 1, 2016; SL 2017, ch 170, § 1.
35-12B-12. Wine carrier quarterly reports.
A wine carrier shall file quarterly reports with the department on or before the fifteenth day of the month following each quarterly period. The required quarterly report shall be filed even if no business was transacted in this state during the reporting period.
The report shall include:
(1) The business name and address of the direct shipper for each shipment;
(2) The date of shipment;
(3) The name and address of shipment recipients in this state;
(4) The weight in pounds of each package shipped; and
(5) The tracking number of each shipment.
Source: SL 2015, ch 196, § 13, eff. Jan. 1, 2016; SL 2017, ch 170, § 2.
35-12B-13. Tax payments.
A direct shipper shall pay the alcohol excise tax as prescribed pursuant to § 35-5-2, according to the rates established in subdivisions 35-5-3(2), (3), and (4). Notwithstanding the filing and payment requirements prescribed in chapter 35-5, a direct shipper shall include on the report required by § 35-12B-11 the gallons of wine shipped to recipients in this state in each wine category as set forth in subdivisions 35-5-3(2), (3), and (4), and calculate the tax due for each wine category.
Additionally, the direct shipper shall pay the tax imposed by § 35-5-6.1 on shipped wine based upon the purchase price of the wine sold to the consumer. The direct shipper shall remit the taxes quarterly on or before the fifteenth day of the month following each quarterly period.
A direct shipper that is also licensed as a farm winery under this title shall receive a credit for any alcohol excise tax paid pursuant to this title for any wine sold for shipment in this state by the direct shipper.
Source: SL 2015, ch 196, § 14, eff. Jan. 1, 2016; SL 2018, ch 213, § 133.
35-12B-14. Electronic submission of reports--Electronic tax payments.
All reports required pursuant to §§ 35-12B-11 and 35-12B-12 shall be submitted by electronic means to the department. All taxes required to be remitted pursuant to § 35-12B-13 shall be remitted by electronic transfer to the department.
Source: SL 2015, ch 196, § 15, eff. Jan. 1, 2016.
35-12B-15. Sale and shipment of wine without direct shipper license prohibited--Action by department for violation--Civil penalty.
Any sale and shipment of wine directly to a person in this state from a winery that does not hold a current wine direct shipper license is prohibited. For the first offense, the department shall send a certified letter to any person who violates this section and order the person to cease and desist any shipment of wine into this state. For any subsequent violation, the department shall notify the alcoholic beverage control agency in the person's state of domicile, if other than this state, and the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury of the violation. Any person who violates this section is subject to a civil penalty of up to five thousand dollars. Any money collected pursuant to this section shall be deposited in the general fund.
Source: SL 2015, ch 196, § 16, eff. Jan. 1, 2016.
35-12B-16. Promulgation of rules.
The department may promulgate rules, pursuant to chapter 1-26, concerning:
(1) Forms necessary for the implementation of this chapter;
(2) Reporting and tracking requirements for wine direct shipper licensees; and
(3) The procedure for filing tax returns and the payment of all applicable taxes.
Source: SL 2015, ch 196, § 17, eff. Jan. 1, 2016.
35-12B-17. Internet website list of wine labels registered for sale and shipment.
The department shall compile and publish on its internet website a list of wine labels registered for sale and shipped in the state each quarter, based on information reported pursuant to § 35-12B-11. The list shall include:
(1) The manufacturer's name and address;
(2) Each brand label shipped by the manufacturer; and
(3) Whether the manufacturer shipped the brand label to any consumer.
Source: SL 2015, ch 196, § 18, eff. Jan. 1, 2016.
35-13-1 to 35-13-12.
Repealed.
35-13-13
Definitions.
35-13-14
Classes of licenses.
35-13-15
Exception to licensing requirement.
35-13-16
Application of title.
35-13-17
Excise tax.
35-13-18
Artisan distiller required to use agricultural products grown or produced in
state--Exception--Perjury.
35-13-19
Permitted sales by artisan distiller--Limitation.
35-13-20
Permitted licenses for artisan distiller.
35-13-21
Additional locations of artisan distiller--Limitation.
35-13-22
Permitted sales by distiller
.
35-13-23
Registration of labels.
35-13-24
Promulgation of rules.
35-13-13. Definitions.
Terms used in this chapter mean:
(1) "Artisan distiller," any manufacturer located in this state producing, rectifying, or blending distilled spirits, as defined in § 35-1-1, in a total quantity not in excess of fifty thousand gallons within a calendar year, where at least thirty percent of the raw materials, other than water, used in the finished product are grown or produced in this state;
(2) "Distiller," any manufacturer located in this state producing, rectifying, or blending distilled spirits, as defined in § 35-1-1, that is not an artisan distiller.
Source: SL 2018, ch 223, § 1.
35-13-14. Classes of licenses.
The classes of licenses, with the fee of each class, are as follows:
(1) Artisan distiller--five hundred dollars; and
(2) Distiller--two thousand five hundred dollars.
Source: SL 2018, ch 223, § 2.
35-13-15. Exception to licensing requirement.
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 purposes other than human consumption is required to obtain any license issued pursuant to this chapter.
Source: SL 2018, ch 223, § 3.
35-13-16. Application of title.
Except as provided in this chapter, 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 chapter.
Source: SL 2018, ch 223, § 4.
35-13-17. Excise tax.
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this chapter, 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.
Source: SL 2018, ch 223, § 5.
35-13-18. Artisan distiller required to use agricultural products grown or produced in state--Exception--Perjury.
Any applicant for a license as an artisan distiller shall verify, under oath, compliance with the requirement to use agricultural products grown or produced in this state. However, if South Dakota agricultural products are not available in sufficient quantities, the applicant may use imported agricultural products for the period covered by the license. Any person who signs a statement as provided for in this section, knowing the statement to be false or untrue, in whole or in part, is guilty of perjury.
Source: SL 2018, ch 223, § 6.
35-13-19. Permitted sales by artisan distiller--Limitation.
A licensed artisan distiller may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed artisan distiller may sell alcoholic beverages produced by the licensee to any wholesaler or retailer authorized to receive the alcoholic beverages. A licensed artisan distiller may sell alcoholic beverages to any licensed artisan distiller, farm winery, microbrewery, or microcidery, if the alcoholic beverage is used in the manufacturing process.
The quantity of alcoholic beverages sold pursuant to this section may not exceed the total production limits for the license as specified in § 35-13-13.
Source: SL 2018, ch 223, § 7.
35-13-20. Permitted licenses for artisan distiller.
A licensed artisan distiller may hold on the licensed premises a farm winery license, a microbrewery license, or a microcidery license. A licensed artisan distiller may hold on the licensed premises any license issued pursuant to subdivision 35-4-2(4), (6), (12), or (16).
Source: SL 2018, ch 223, § 8.
35-13-21. Additional locations of artisan distiller--Limitation.
A licensed artisan distiller may operate 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 § 35-13-13. Any additional license issued pursuant to this section has the privileges of the original license as specified in §§ 35-13-19 and 35-13-20.
Source: SL 2018, ch 223, § 9.
35-13-22. Permitted sales by distiller.
A licensed distiller may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed distiller may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the alcoholic beverages.
Source: SL 2018, ch 223, § 10.
35-13-23. Registration of labels.
The holder of any license issued under this chapter, 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.
Source: SL 2018, ch 223, § 11.
35-13-24. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this chapter, and procedures for collecting the excise taxes pertaining to the licenses.
Source: SL 2018, ch 223, § 12.
CHAPTER 35-13A
DISTILLED SPIRITS NOT IN DISTRIBUTION IN STATE
35-13A-1 Purchase of distilled spirits not in distribution in state--Ordering procedures--Delivery.
35-13A-2 No registration fee for certain annual purchase totals.
35-13A-3 Limit on distilled spirits received from another state for personal use--Resale prohibited--Certain licensee sales allowed--Violation a misdemeanor--Department of Revenue to promulgate rules.
35-13A-1. Purchase of distilled spirits not in distribution in state--Ordering procedures--Delivery.
Notwithstanding any other provision of law, any person who is at least twenty-one years of age may purchase and receive distilled spirits from another state as provided in this section if the distilled spirits are not in distribution in this state. The person may place an order with a licensee as defined in subdivision 35-4-2(3) or (5). The licensee shall order the distilled spirits through a wholesaler licensed pursuant to subdivision 35-4-2(2) and the wholesaler shall arrange the purchase of the distilled spirits. The licensee shall inform the purchaser of the cost of the distilled spirits, 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 distilled spirits through the wholesaler. After receiving the order for the distilled spirits from the licensed retailer, the wholesaler shall arrange for the distilled spirits to be shipped directly to the licensee who placed the order for the purchaser. Distilled spirits 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).
Source: SL 2021, ch 167, § 1.
35-13A-2. No registration fee for certain annual purchase totals.
If the wholesaler orders three or less cases of a particular brand of distilled spirits for an individual purchaser in one calendar year pursuant to this chapter, no registration fee pursuant to chapter 39-13 may be imposed.
Source: SL 2021, ch 167, § 2.
35-13A-3. Limit on distilled spirits received from another state for personal use--Resale prohibited--Certain licensee sales allowed--Violation a misdemeanor--Department of Revenue to promulgate rules.
No person may receive for personal use more than three cases of distilled spirits, containing no more than nine liters per case, in any calendar year from another state under this chapter. No person who receives distilled spirits under this chapter may resell any of the distilled spirits. However, if the delivery of the distilled spirits does not result in a completed sale to the person who placed the original order, the licensee may sell the distilled spirits in the ordinary course of business. It is a Class 2 misdemeanor for any person to receive more than three cases of distilled spirits 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 distilled spirits 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 distilled spirits under this chapter and to prescribe forms for the implementation of this chapter.
Source: SL 2021, ch 167, § 3.
35-14-1
Definitions.
35-14-2
Classes of licenses.
35-14-3
Application of title.
35-14-4
Excise tax.
35-14-5
Permitted sales by microcidery--Limitation.
35-14-6
Permitted licenses for microcidery.
35-14-7
Additional locations of microcidery--Limitation.
35-14-8
Permitted sales by cider manufacturer.
35-14-9
Registration of labels.
35-14-10
Promulgation of rules
.
35-14-1. Definitions.
Terms used in this chapter:
(1) "Cider manufacturer," any manufacturer located in this state producing cider, as defined in § 35-1-1, that is not a microcidery;
(2) "Microcidery," any manufacturer located in this state producing cider, as defined in § 35-1-1, in a total quantity not in excess of twelve thousand barrels within a calendar year.
Source: SL 2018, ch 223, § 16.
35-14-2. Classes of licenses.
The classes of licenses, with the fee of each class, are as follows:
(1) Cider manufacturer--two thousand five hundred dollars; and
(2) Microcidery--five hundred dollars.
Source: SL 2018, ch 223, § 17.
35-14-3. Application of title.
Except as provided in this chapter, 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 chapter.
Source: SL 2018, ch 223, § 18.
35-14-4. Excise tax.
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this chapter, 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.
Source: SL 2018, ch 223, § 19.
35-14-5. Permitted sales by microcidery--Limitation.
A licensed microcidery may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed microcidery may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the alcoholic beverages. A licensed microcidery 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 microcidery may sell up to six 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 microcidery or to any transfer of alcoholic beverages between a licensed microcidery and any additional locations authorized pursuant to § 35-14-7.
The quantity of alcoholic beverages sold pursuant to this section may not exceed the total production limits for the license as specified in § 35-14-1.
Source: SL 2018, ch 223, § 20.
35-14-6. Permitted licenses for microcidery.
A licensed microcidery may hold on the licensed premises an artisan distiller license, a farm winery license, or a microbrewery license. A licensed microcidery may hold on the licensed premises any license issued pursuant to subdivision 35-4-2(4), (6), (12), or (16).
Source: SL 2018, ch 223, § 21.
35-14-7. Additional locations of microcidery--Limitation.
A licensed microcidery 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 § 35-14-1. Any additional license issued pursuant to this section has the privileges of the original license as specified in §§ 35-14-5 and 35-14-6.
Source: SL 2018, ch 223, § 22.
35-14-8. Permitted sales by cider manufacturer.
A licensed cider manufacturer may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed cider manufacturer may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the alcoholic beverages.
Source: SL 2018, ch 223, § 23.
35-14-9. Registration of labels.
The holder of any license issued under this chapter, 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.
Source: SL 2018, ch 223, § 24.
35-14-10. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this chapter, and procedures for collecting the excise taxes pertaining to the licenses.
Source: SL 2018, ch 223, § 25.
35-15-1
Definitions.
35-15-2
Classes of licenses.
35-15-3
Application of title.
35-15-4
Excise tax.
35-15-5
Permitted sales by microbrewery--Limitation.
35-15-6
Permitted licenses for microbrewery.
35-15-7
Additional locations of microbrewery--Limitation.
35-15-8
Permitted sales by malt beverage manufacturer.
35-15-9
Registration of labels.
35-15-10
Promulgation of rules
.
35-15-1. Definitions.
Terms used in this chapter 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, in a total quantity not in excess of thirty thousand barrels within a calendar year.
Source: SL 2018, ch 224, § 1.
35-15-2. Classes of licenses.
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.
Source: SL 2018, ch 224, § 2.
35-15-3. Application of title.
Except as provided in this chapter, 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 chapter.
Source: SL 2018, ch 224, § 3.
35-15-4. Excise tax.
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this chapter 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.
Source: SL 2018, ch 224, § 4.
35-15-5. Permitted sales by microbrewery--Limitation.
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 § 35-15-7.
The quantity of alcoholic beverages sold pursuant to this section may not exceed the total production limits for the license as specified in § 35-15-1.
Source: SL 2018, ch 224, § 5.
35-15-6. Permitted licenses for microbrewery.
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).
Source: SL 2018, ch 224, § 6.
35-15-7. Additional locations of microbrewery--Limitation.
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 § 35-15-1. Any additional license issued pursuant to this section has the privileges of the original license as specified in §§ 35-15-5 and 35-15-6.
Source: SL 2018, ch 224, § 7.
35-15-8. Permitted sales by malt beverage manufacturer.
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.
Source: SL 2018, ch 224, § 8.
35-15-9. Registration of labels.
The holder of any license issued under this chapter 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.
Source: SL 2018, ch 224, § 9.
35-15-10. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this chapter, and procedures for collecting the excise taxes pertaining to the licenses.
Source: SL 2018, ch 224, § 10.
35-16-1
Wine manufacturer defined.
35-16-2
License fee.
35-16-3
Application of title.
35-16-4
Excise tax.
35-16-5
Permitted sales.
35-16-6
Registration of labels.
35-16-7
Promulgation of rules.
35-16-8
Bulk wine.
35-16-9
Repealed
.
35-16-1. Wine manufacturer defined.
For the purposes of this chapter the term, wine manufacturer, means any manufacturer located in this state producing, blending, filtering, clarifying, aging and bottling wine, as defined in § 35-1-1, that is not a farm winery.
Source: SL 2018, ch 225, § 1.
35-16-2. License fee.
The fee for a wine manufacturer license is two thousand five hundred dollars.
Source: SL 2018, ch 225, § 2.
35-16-3. Application of title.
Except as provided in this chapter, 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 chapter.
Source: SL 2018, ch 225, § 3.
35-16-4. Excise tax.
There is hereby levied on all alcoholic beverages produced by any person licensed pursuant to this chapter 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. Notwithstanding any other provision of law, the taxes imposed on a wine manufacturer shall be deposited in the general fund.
Source: SL 2018, ch 225, § 4.
35-16-5. Permitted sales.
A licensed wine manufacturer may sell on the licensed premises alcoholic beverages produced by the licensee for on-sale or off-sale consumption. A licensed wine manufacturer may sell alcoholic beverages produced by the licensee to any wholesaler authorized to receive the alcoholic beverages.
Source: SL 2018, ch 225, § 5.
35-16-6. Registration of labels.
The holder of any license issued under this chapter 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.
Source: SL 2018, ch 225, § 6.
35-16-7. Promulgation of rules.
The secretary may promulgate rules, pursuant to chapter 1-26, establishing the criteria and procedures for obtaining a license pursuant to this chapter, and procedures for collecting the excise taxes pertaining to the licenses.
Source: SL 2018, ch 225, § 7.
35-16-8. Bulk wine.
The quantity of bulk wine in any wine manufacturer's annual production shall not exceed fifty percent of that winery's annual production. The bulk wine must be blended and not bottled. Bulk wine as used in this section means fermented juice from grapes and other fruit bases or honey.
Source: SL 2018, ch 225, § 8.