HomeMy WebLinkAbout2024_02_20 CC Study Session PKTCity Council
City of Brookings
Meeting Agenda - Final
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
"We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability
and pursues a complete lifestyle. We are committed to building a bright future through dedication,
generosity and authenticity. Bring your dreams!"
Community Room
(Room 300)
6:00 PMTuesday, February 20, 2024
Study Session
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse
economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal
management.
6:00 PM STUDY SESSION
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3. Action to approve the agenda.
4. Open Forum.
At this time, any member of the public may make a brief announcement or invitation, or
request time on the agenda for an item not listed. Items to be added to the agenda will
be scheduled at the end of the meeting. Individuals will state their name and city of
residence for the record. Public Comment is limited to a maximum of three minutes per
person. The comments and views expressed by the public are those of the speakers
and do not necessarily reflect the views or positions of the City of Brookings or City
Council.
Discussion on Liquor License Fees.ID 24-00935.
Page 1 City of Brookings
February 20, 2024City Council Meeting Agenda - Final
Memo
Resolution 38-11 - on-sale liquor license fee
Resolution 98-11 - on-sale restaurant license fee
Existing Liquor Licensees - 2023
Survey - First Class Municipalities
Survey - Chamber Liquor License Opinions
Census Information
SDCL 35-3-7 - Local Option
SDCL 35-4 - Sale of Beverages
Presentation
Attachments:
6. City Council member introduction of topics for future discussion.
Any Council Member may request discussion of any topic at a future meeting. Items
cannot be added for action at this meeting. A motion and second is required which
states the topic, requested outcome, and time frame. A majority vote is required.
7. Adjourn.
Brookings City Council: Oepke G.Niemeyer, Mayor; Nick Wendell, Deputy Mayor
Council Members Wayne Avery, Holly Tilton Byrne, Bonny Specker, Brianna Doran, Andrew Rasmussen
Brookings City Council Staff:
Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk
Public Comment is limited to a maximum of three minutes per person. Individuals will give their name and city of
residence for the record. Public Comment may be submitted prior to the meeting by the following means: 1) Email
comments to the City Clerk (cityclerk@cityofbrookings-sd.gov), or 2) participate remotely. Comments provided will
become part of the official record and subject to review by all parties and the public. The comments and views
expressed by the public are those of the speakers and do not necessarily reflect the views or positions of the City
of Brookings or City Council.
Meetings are broadcast live and recorded. Go to www.cityofbrookings-sd.gov for more information. Government
Channel 9 Rebroadcast Schedule: Wednesday 1:00 pm / Thursday 7:00 pm / Friday 9:00 pm / Saturday 1:00 pm
Upon request, accommodations for meetings will be provided for persons with disabilities. Please contact the City
ADA Coordinator at (605) 692-6281 at least three (3) business days in advance of the meeting.
Page 2 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 24-0093,Version:1
Discussion on Liquor License Fees.
Summary:
It was requested by City Council at the September 19, 2023 Study Session to have additional
discussion on the fees for on-sale liquor licenses.
9/19/2023 CC Meeting Excerpt: Council Member Introduction of Topics for Future Discussion.
“A motion was made by Council Member Doran, seconded by Council Member Rasmussen, to
have discussion and possible action to reconsider the fee for the Full-Service Restaurant
Liquor License. A friendly amendment was made by Council Member Tilton Byrne, to include a
reconsideration of the On-Sale Liquor License. The motion carried by the following vote: Yes:
6 - Niemeyer, Avery, Tilton Byrne, Specker, Doran, and Rasmussen; Absent: 1 - Wendell.”
Attachments:
Memo
Resolution 38-11 - on-sale liquor license fee
Resolution 98-11 - on-sale restaurant license fee
Existing Liquor Licensees - 2023
Survey - First Class Municipalities
Survey - Chamber Liquor License Opinions
Census Information
SDCL 35-3-37 - Local Option
SDCL 35-4 - Sale of Beverages
Presentation
City of Brookings Printed on 2/21/2024Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Bonnie Foster, City Clerk
Council Meeting: February 20, 2024
Subject: Licensing Fees: On-Sale Liquor and Full-Service Restaurant
On-Sale Liquor
Presenter: Bonnie Foster, City Clerk
Summary:
It was requested by City Council at the September 19, 2023 Study Session to have
additional discussion on the fees for on-sale liquor licenses.
9/19/2023 CC Meeting Excerpt: Council Member Introduction of Topics for
Future Discussion. “A motion was made by Council Member Doran, seconded
by Council Member Rasmussen, to have discussion and possible action to
reconsider the fee for the Full-Service Restaurant Liquor License. A friendly
amendment was made by Council Member Tilton Byrne, to include a
reconsideration of the On-Sale Liquor License. The motion carried by the
following vote: Yes: 6 - Niemeyer, Avery, Tilton Byrne, Specker, Doran, and
Rasmussen; Absent: 1 - Wendell.”
Background:
The City enters into Operating Agreements with on-sale liquor license holders.
Agreements are for 10-years, with a 5-year mid-term renewal.
Resolution 38-2011 established the On-Sale Liquor License Fee for new Operating
Agreements at $25,000.
Resolution 98-2011, established the fee for the issuance of Full-Service Restaurant On-
Sale Licenses at $100,000; and set a moratorium of the fee for 10 years. This fee was
based on the price attributed to the sale and transfer of an operating agreement
occurring between 1/1/2003 and 1/1/2008.
The Full-Service On-Sale Liquor Restaurant License comes with a requirement of 60%
gross revenues from sale of food or non-alcoholic beverages. The gross revenue
percentage can be more restrictive than state law, but not less restrictive than state law.
For example, the percentage could be increased to 75%, but not lowered to 40%.
State Law (SDCL 35-4-2(4)) requires a municipality to set the fee for the initial issuance
of an operating agreement at not less than $1 for each person residing within the
municipality as measured by the last preceding Federal Census. State law does not set
the maximum fee for the issuance of Operating Agreements, and accordingly, the fee
may be set by the City Council provided the fee equals or exceeds the minimum fee ,
which would be $23,377.
The Federal Census in decennial years states the population of the City of Brookings
has been:
2000 – 18,560 population
2010 – 22,056 population
2020 – 23,377 population
A survey of 1st Class municipalities and liquor license fees is attached.
The Brookings Area Chamber conducted a poll of Chamber membership on the fees for
liquor licenses. Results of the survey are as follows. Comments from the survey are in
an attached document.
36% - set the restaurant liquor license fee to $1 per person in City population
31% - keep the restaurant liquor license fee at $100,000
22% - set the restaurant liquor license fee at a different amount (e.g. $50,000,
$75,000, etc.)
9% - did not have an opinion
Item Details:
Fees for new On-Sale Liquor Licenses, as well as the Full-Service On-Sale Liquor
Restaurant Licenses were last identified by City Council in 2011.
Strategic Plan Consideration:
Fiscal Responsibility – discuss an updated on-sale liquor license fee appropriate for the
community.
Financial Consideration:
Current On-Sale Liquor Fee (new license): $25,000
Current Full-Service Restaurant Liquor Fee (new license): $100,000
Current renewal fees: $1,500
Supporting Documentation:
Resolution 38-11 – On-Sale Liquor License Fee
Resolution 98-11 – Full-Service On-Sale Liquor Restaurant License Fee
Existing Liquor Licensees - 2023
Survey – First Class Municipalities
Survey – Chamber Liquor License Opinions
Census Information
State Law 35-4 – Sale of Beverages
State Law 35-3-7 – Local Option
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A B C D E
2023 On-Sale Liquor Licensees Business
License #Business Inc. / LLC / Owner or Manager Location
On-Sale Liquor (Retail) - Convention Center
1 CL-15412 Wilbert's / Comfort Suites University Den Wil Hospitality Group, Inc. -- Dennis Bielfeldt 931 25th Ave.
2 CL-21636 Park Place, Inc. (dba Brookings Inn)Park Place, Inc. -- Lance Park 2500 6th St.
On-Sale Liquor (Restaurant)
1 RR-26776 Boss's Pizza On In 2 LLC -- Dallas Wilkinson and Darren Newborg 2515 6th St.
2 RR-19898 Whiskey Creek Wood Fire Grill Brookings Steak Co. -- James K. Gardner 621 32nd Ave.
On-Sale Liquor (Retail)
1 RL-6232 Applebee's Neighborhood Grill & Bar Apple BRK, LLC -- Jonathan Rolph, Gregory Stroud, Caroline Gadbury, and Ty Patton 3001 Lefevre Dr.
2 RL-20228 Buffalo Wild Wings Bar & Grill W&P of Brookings, LLC -- Todd & Susan LaHaise 1801 6th St.
3 RL-5285 Craft Fusion Italian American Jesse Davis LLC -- Jesse Davis 610 Medary Ave.
4 RL-6282 Cubby's Sports Bar & Grill GDT Inc. -- Gus Theodosopoulos 307 Main Ave.
5 RL-5481 Danny's David Olson, Inc. -- David Olson, owner -- Lisa Behrend (primary w/ Power of Attorney)703 Main Ave. So.
6 RL-5474 Elks Lodge #1490 Dale Heesch, Exhaulted Ruler 516 4th St.
7 RL-6224 Jack's Entertainment Jack's Entertainment, LLC -- Todd Voss, Bob Winter 327 Main Ave.
8 RL-6180 Jim's Tap Urquart Enterprises, Inc. -- Don Urquhart & Mary VandeCrommert 309 Main Ave.
9 RL-6262 The Lanes MG Oil Company -- Marlyn Erickson & Troy Erickson 722 Western Ave.
10 RL-19765 Main Street Pub Gonz Productions, Inc. -- Garner Hansen 408 Main Ave.
11 RL-5479 9 Bar Nightclub Nine Inc. -- Gus Theodosopoulos / Jeremy Deutsch / Chris Stoltenberg 303 Main Ave.
12 RL-5482 Pheasant Café & Lounge Ron & Georgiana Olson / Trevor Clements & Mike Johnson, Managers 726 Main Ave. So.
13 RL-19736 Pints & Quarts Kevin Raab 313 Main Ave.
14 RL-6227 Ray's Corner Icon Investments - Todd Voss 401 Main Ave.
15 RL-6311 Skinner's Pub Skinner's Pub Inc. -- Greg & Shari Thornes 300 Main Ave.
16 RL-5478 Sully's Irish Pub 3 Guys LLC -- Shawn Nordbye, Brett Gomes, Robert Sundet 421 Main Ave.
17 RL-5475 VFW Geo Dokken Post 2118 GEO Dokken Post #2118 / VFW -- Loren Hanson / Darwin Tolzen 520 Main Ave.
18 RL-5480 The Wild Hare Wonder, Inc. -- Todd Voss, David Kneip, Greg Kneip 303 3rd St.
Off-Sale Liquor (Package)
1 PL-4471 Brookings Municipal Liquor Store City of Brookings -- Bill Heldt, Manager 780 22nd Ave. So.
On-Sale Liquor - Municipal-owned Facility
1 RL-29790 Brookings Activity Center Angi Strohfus, Senior Services Supervisor 516 4th St.
2 RL-29784 Brookings Arts Council / Carnegie Library BuildingKristin Zimmerman, P&R Director 524 4th St.
3 RL-29786 Dacotah Bank Center Global Spectrum LP, dba Spectra -- Michael Logan, Manager 824 32nd Ave.
4 RL-29785 Edgebrook Golf Course Gary Moen, Manager 1415 22nd Ave. So.
5 RL-29787 Larson Ice Center Kristin Zimmerman, P&R Director 924 32nd Ave.
Municipality Population On-Sale Liquor Fee
Full-Service On-Sale
Liquor Restaurant Fee Re-evaluation of fee
Harrisburg 6,732 $5,698 all licenses issued $4,089 1 licensee No
Sturgis 7,020 $0 all licenses issued $650,000 none issued No
Brandon 11,048 $6 / 1,000 population all licenses issued $0 did not adopt No
Vermillion 11,695 $0 all licenses issued $95,000 none issued No
Spearfish 12,193 $0 all licenses issued $130,000 3 licensees No
Pierre 14,091 $0 all licenses issued $110,000 1 licensee No
Huron 14,263 $1,500 all licenses issued $75,000 none issued No
Yankton 15,411 $0 all licenses issued $70,000 4 licensees No
Mitchell 15,660 $0 over the limit due to annexations $190,000 none issued No
Watertown 22,655 $0 over the limit due to annexations $100,000 none issued No
Brookings 23,377 $25,000 all licenses issued $100,000 2 licensees Yes
Aberdeen 28,495 $0 over limit due to annexations $100,000 3 licensees No
Rapid City 74,703 $295,000 all licenses issued $295,000 2 licensees No
Sioux Falls 192,517 $411,000 $192,517 7 licensees
Survey conducted Fall 2023 with 1st Class Municipalities
set by utilizing bid system - all
licenses issued
Yes. Re-evaluated in 2023 --
decreased fee to $1/resident
2023 - Chamber Survey
Please indicate which option below best describes your thoughts on
the topic.
If you have any other thoughts on the topic, let us know
here:
Optional: Name,
Business
1 Keep the restaurant liquor license fee at $100,000.
2 Set the restaurant liquor license fee at a different amount (e.g. $50,000, $75,000,
etc.). If so, do you have a recommended amount?
I would vote to keep at $100K or move to $75K.
3 Keep the restaurant liquor license fee at $100,000.If the city has the option to raise the number of liquor licenses it
should do so. There should be strict guidelines on what they could
be used for. For example, we don't need a lot of video lottery
casinos. However, for a nice restaurant to be able to open in
Brookings they absolutely need the revenue from a full bar to
survive. Also, if there is an option to take organizations like the
VFW, Elks Club, and Swiftel Center and classify them differently to
open up a few more liquor licenses.
The current policies on liquor licenses have been outdated for a
couple decades. They hold the city back from attracting more
dining and entertainment possibilities for Brookings residents.
4 Set the restaurant liquor license fee to $1 per person in City population.
5 Keep the restaurant liquor license fee at $100,000.
6 Set the restaurant liquor license fee to $1 per person in City population.I believe getting a liquor license is prohibiting business from coming
to Brookings. Take Dakota Butcher for example. I thought they
were planning to be part of the Research Park construction but fell
through because of the liquor license. You should see all the cars
parked in front of their business in Watertown. Brookings is
missing out on this.
7 Set the restaurant liquor license fee at a different amount (e.g. $50,000, $75,000,
etc.). If so, do you have a recommended amount?
8 Set the restaurant liquor license fee to $1 per person in City population.
9 Keep the restaurant liquor license fee at $100,000.
10 Set the restaurant liquor license fee to $1 per person in City population.
11 Set the restaurant liquor license fee to $1 per person in City population.
12 Set the restaurant liquor license fee at a different amount (e.g. $50,000, $75,000,
etc.). If so, do you have a recommended amount?
Costs are increasing and the city is making more with every raise in
price on drinks. We need to do away with the tax on tax for alcohol.
It's taxed when bought and taxed when sold.
13 Set the restaurant liquor license fee to $1 per person in City population.
Please indicate which option below best describes your thoughts on
the topic.
If you have any other thoughts on the topic, let us know
here:
Optional: Name,
Business
14 Set the restaurant liquor license fee to $1 per person in City population.Flavor, Taco Express,
George’s Pizza
15 I do not have an opinion on this topic
16 Keep the restaurant liquor license fee at $100,000.Lowering the restaurant liquor license fee would harm current
license holders and devalue their business. I feel that we should
look to protect our current businesses and not be chasing a chain
restaurant with discounted license fees.
Kevin w/ Pints and
Quarts
17 Keep the restaurant liquor license fee at $100,000.
18 Set the restaurant liquor license fee at a different amount (e.g. $50,000, $75,000,
etc.). If so, do you have a recommended amount?
I'm curious how many restaurants are actually in the city of
Brookings? That fee seems excessive to me...and takes advantage
of people who own/operate their business as self employed.
19 I do not have an opinion on this topic
20 Keep the restaurant liquor license fee at $100,000.I don't think we should increase the liquor license fee. We already
are seeing increases in food prices. We want to keep these
businesses here!
21 Set the restaurant liquor license fee at a different amount (e.g. $50,000, $75,000,
etc.). If so, do you have a recommended amount?
The liquor license fee should be similar to the fair market value of a
liquor license. A business awarded a limited-issue liquor license
should not also be rewarded by a free asset (the market value of
the license over what they paid the City for it). Sioux Falls is selling
their licenses for 2-4x what we currently charge, which is a result of
correctly accounting for the market value of those licenses.
Jacob Limmer
22 Set the restaurant liquor license fee to $1 per person in City population.Mary Ford
On-Sale Liquor Licenses – restricted by Census
SDCL 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 o r 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.
US Census Bureau Census Data
Brookings, SD population
2000 – 18,560 (decennial year)
2010 – 22,056 (decennial year)
2020 – 23,377 (decennial year)
2022 – 23,993
2024 – ???
2030 – ??? (decennial year)
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.
Population # of licenses
3 / first 1,000 3
1 for each 1,500 14 2020 census: 23,377
1,377 (fraction of 1,500) 1 (123 population remaining of
license #18)
2022 census: 23,993
493 (fraction of next 1,500) 1 (1 additional license could be
issued in 2024 – w/ 1,007
population remaining for license
#19)
SDCL 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.
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.
35-4-6.1 35-4-6.1. Obsolete.
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 on-sale 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.
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.
35-4-2.1. Repealed by SL 2018, ch 213, § 47.
35-4-2.2. Repealed by SL 2008, ch 182, § 2.
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.
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.
35-4-2.5. Repealed by SL 2018, ch 213, § 49.
35-4-2.6. Repealed by SL 1990, ch 30, § 9.
35-4-2.7. Repealed by SL 2018, ch 213, § 50.
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.
35-4-2.9. Repealed by SL 2018, ch 219, § 2.
35-4-2.10. Repealed by SL 2009, ch 177, § 8.
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.
35-4-3. Repealed by SL 1971, ch 211, § 121.
35-4-4. Repealed by SL 2017, ch 164, § 2.
35-4-4.1. Repealed by SL 2018, ch 213, § 53.
35-4-5. Repealed by SL 1971, ch 211, § 121.
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.
35-4-5.2 to 35-4-5.4. Repealed by SL 1971, ch 211, § 121.
35-4-5.5. Repealed by SL 2010, ch 180, § 24.
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.
35-4-6.1. Obsolete.
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.
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.
35-4-10.1. 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.
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.
35-4-11.3. Repealed by SL 2010, ch 180, § 30.
35-4-11.4, 35-4-11.5. Repealed by SL 2010, ch 185, §§ 3, 4.
35-4-11.6. Repealed by SL 2018, ch 213, § 61.
35-4-11.7, 35-4-11.8. Repealed by SL 2010, ch 185, §§ 5, 6.
35-4-11.9, 35-4-11.10. Repealed by SL 2018, ch 219, §§ 3, 4.
35-4-11.11. Additional convention facility on-sale licenses authorized.
In addition to the licenses provided by §§ 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 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 shall be 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. 67 as of
January 1, 1994. Such a rehabilitation project shall have at least thirty rooms that are suitable lodging
accommodations.
Source: SL 2000, ch 181, § 1; SL 2002, ch 172, § 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.
35-4-12. 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.
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.
35-4-13.1. Repealed by SL 2018, ch 213, § 64.
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.
35-4-14.2 to 35-4-14.4. Repealed by SL 2010, ch 185, §§ 7 to 9.
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.
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.
35-4-20. Repealed by SL 1971, ch 211, § 121.
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.
35-4-24 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.
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.
35-4-42, 35-4-43. Repealed by SL 1971, ch 211, § 121.
35-4-44. Repealed by SL 2018, ch 213, § 71.
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.
35-4-46. Repealed by SL 2018, ch 213, § 73.
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.
35-4-48. Repealed by SL 2018, ch 213, § 75.
35-4-49. Repealed by SL 2018, ch 224, § 14.
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.
35-4-51. Repealed by SL 1971, ch 211, § 121.
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.
35-4-53 to 35-4-59. Repealed by SL 1971, ch 211, § 121.
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.
35-4-61. Repealed by SL 2018, ch 213, § 81.
35-4-62 to 35-4-65. Repealed by SL 1971, ch 211, § 121.
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.
35-4-68 to 35-4-70. Repealed by SL 1971, ch 211, § 121.
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.
35-4-72, 35-4-73. Repealed by SL 1971, ch 211, § 121.
35-4-74. Delivery prohibited except by off-sale delivery licensees--Violation as misdemeanor.
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.
35-4-75.1 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.
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.
35-4-78.1 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.
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.
35-4-79.1, 35-4-79.2. Repealed by SL 2018, ch 213, §§ 87, 89.
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.
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.
35-4-80. Repealed by SL 1971, ch 211, § 121.
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.
35-4-81.1. Repealed by SL 2010, ch 183, § 2.
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.
35-4-82 to 35-4-84. Repealed by SL 1971, ch 211, § 121.
35-4-85. Repealed by SL 2018, ch 213, § 92.
35-4-86. Repealed by SL 2010, ch 180, § 44.
35-4-87, 35-4-88. Repealed by SL 1971, ch 211, § 121.
35-4-89. Repealed by SL 1992, ch 158, § 61.
35-4-90 to 35-4-92. Repealed by SL 1971, ch 211, § 121.
35-4-93. Repealed by SL 2010, ch 180, § 45.
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.
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.
35-4-104, 35-4-105. Repealed by SL 2010, ch 185, §§ 10, 11.
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.
35-4-108, 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.
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.
35-4-121, 35-4-122. Repealed by SL 2018, ch 213, §§ 103, 104.
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.
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, and the license is to be used in a publicly-owned facility. 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.
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.
35-4-126. Repealed by SL 2018, ch 223, § 26.
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.
LIQUOR
LICENSING FEES
LIQUOR LICENSE FEES
HISTORY:
•Vote of the electors of the City of Brookings held April 19, 1955
•Election Canvass first declared the issue defeated –difference of 4 votes.
•Brookings County Recount Board filed on May 31, 1955, determined the measure passed.
•SDCL 35-3-37
•“Shall a license or licenses for the sale of intoxicating liquor be issued to the City of Brookings?”
•PASSED: Resolution 839 -“to allow for the sale of intoxicating liquors within the City of Brookings and to provide funds as is necessary to establish and maintain such business.” (as a package dealer)
•City-held license effective as of July 1, 1955.
On-Sale:consumption on the licensed premise (retail)
(SDCL 35-1-1)
Example –Bar, Restaurant
(RL) On-Sale Liquor License
•18 licensees –limited by population
•Licenses Issued: January 1 -December 31
•Operating Agreements: 10-year, with a 5-year mid-
term renewal
(RL) On-Sale Liquor License
Fees (SDCL 35-4-2(4)):
•Initial license Fee: $25,000
•Resolution 38-11 (2011)
•cannot be less than $1 for each person residing within the
municipality as measured by the last preceding federal
census.
•Renewal Fee: $1,500
(RL) On-Sale Liquor License
(RR) Full-Service Restaurant On-Sale
Liquor License
Full-Service Restaurant (SDCL 35-4-110)
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. Restaurant that only serves fry orders or
foodstuffs such as sandwiches, hamburgers, or salads is not
a full-service restaurant.
•60% of the gross revenue of the restaurant is derived from
the sale of food and nonalcoholic beverages
(RR) Full-Service Restaurant Liquor License
•2 Licensees –not limited by population
•Licenses Issued: January 1 -December 31
•Operating Agreements: 10-year, with a 5-year mid-term
renewal
(RR) Full-Service Restaurant Liquor License
(SDCL 35-4-116)
•Ordinance 30-08 -licensing procedures
•Resolution setting fee w/in 90 days of approving Ordinance
•Fee for RR Liquor License was set for a period of 10 years.
•Initial Fee for the license was set at or above current fair market
value (SDCL 35-4-117).
•BASED ON 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.
Fees (SDCL 35-4-116):
•Initial license Fee: $100,000
•Resolution 38-11 (2011)
•cannot be less than $1 for each person residing within the
municipality as measured by the last preceding decennial
federal census.
•Fee set for 10 years.
•Renewal Fee: may not exceed $1,500
(RR) Full-Service Restaurant Liquor License
Renewal Requirements (SDCL 35-4-113):
•60% gross revenue from sale of food and nonalcoholic
beverages.
•Annual Report filed stating food and nonalcoholic beverage
gross revenues and total gross revenues (report is
confidential).
The 60% gross revenue requirement can be more restrictive than state
law, but not less than. (E.g. percentage requirement could be increased to
75%, but not decreased to 40%)
(RR) Full-Service Restaurant Liquor License
First Class Municipalities –comparables
Municipality Population On-Sale Liquor Fee
Full-Service On-Sale Liquor
Restaurant Fee Re-evaluation of fee
Harrisburg 6,732 $5,698 all licenses issued $4,089 1 licensee No.
Sturgis 7,020 $0 all licenses issued $650,000 none issued No.
Brandon 11,048 $6 / 1,000 population all licenses issued $0 did not adopt No.
Vermillion 11,695 $0 all licenses issued $95,000 none issued No.
Spearfish 12,193 $0 all licenses issued $130,000 3 licensees No.
Pierre 14,091 $0 all licenses issued $110,000 1 licensee No.
Huron 14,263 $1,500 all licenses issued $75,000 none issued No.
Yankton 15,411 $0 all licenses issued $70,000 4 licensees No.
Mitchell 15,660 $0 over the limit due to annexations $190,000 none issued No.
Watertown 22,655 $0 over the limit due to annexations $100,000 none issued No.
Brookings 23,377 $25,000 all licenses issued $100,000 2 licensees Yes.
Aberdeen 28,495 $0 over limit due to annexations $100,000 3 licensees No.
Rapid City 74,703 $295,000 all licenses issued $295,000 2 licensees No.
Sioux Falls 192,517 $411,000 set by utilizing bid system -all licenses
issued
$192,517 7 licensees Yes. Re-evaluated in 2023 --
decreased fee to $1/resident
Brookings Area Chamber –survey results
Survey of 700 business, with 22 responses. –survey ran for 2 weeks / closing on October 25th.
Survey asked:
•Keep the restaurant liquor license fee at $100,000 31%
•Set the RLL to $1/person in City population 36%
•Set the RLL to a license fee at a different amount (50K, &75K, etc.)22%
•No opinion 9%
•Additional thoughts on the topic.
Comments from surveys:
•Change fee to $75,000.
•Don’t want to devalue existing businesses with these licenses.
•Do not change the existing license fee.
SDCL 35-4-11. Municipal determination of number of licenses and amount of fees--Maximum number of on-sale licenses.
•The number of on-sale licenses issued
•may not exceed three each for the first 1,000 of population or fraction thereof and
•may not exceed one each for each additional 1,500 of population or fraction thereof
•The municipal governing body shall also establish the fee for on-sale licenses pursuant to subdivisions 35-4-2(4) and (13).
•fee applies to all such on-sale licenses issued in the ensuing calendar year
•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
On-Sale Liquor Licenses -Restricted by Population
2000 –18,560 (decennial year)
2010 –22,056 (decennial year)
2020 –23,377 (decennial year)
2022 –23,993
2024 –???
2030 –??? (decennial year)
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.
Source: www.census.gov
US Census Bureau Census Data
Brookings, SD
Population # of licenses
1,000 3
1 for each 1,500 14
1,377 (fraction of 1,500)1
493 (fraction of 1,500)1 (1 additional license could be issued)
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.
Source: www.census.gov
# of On-Sale Licenses Issued (SDCL 35-4-11)
Questions?