South Dakota 2025 Regular Session

South Dakota Senate Bill SB130 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25.320.35 100th Legislative Session 130
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4	4	2025 South Dakota Legislature
5	5	Senate Bill 130
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10	10
11	11
12	12	Introduced by: Senator Reed
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14	14	Underscores indicate new language.
15	15	Overstrikes indicate deleted language.
16	16	An Act to authorize the shipment of distilled spirits direct to consumers, and to 1
17	17	provide a penalty therefor. 2
18	18	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
19	19	Section 1. That a NEW SECTION be added to a NEW CHAPTER in title 35: 4
20	20	Terms used in this chapter mean: 5
21	21	(1) "Common carrier," a commercial firm, whose services are open to the general 6
22	22	public, engaged in the business of transporting goods for a fee; 7
23	23	(2) "Department," the Department of Revenue; 8
24	24	(3) "Direct shipper," a distillery that has obtained a distilled spirits direct shipper 9
25	25	license under this chapter; 10
26	26	(4) "Distilled spirits carrier," a common carrier that has obtained a distilled spirits 11
27	27	license under this chapter; 12
28	28	(5) "Distillery," a firm that produces distilled spirits and holds a federal distilled spirits 13
29	29	permit; and 14
30	30	(6) "Purchase price," the price of a product charged to the end consumer before the 15
31	31	application of South Dakota state and local taxes. 16
32	32	Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 35: 17
33	33	A distillery located within or outside of the state may obtain a distilled spirits direct 18
34	34	shipper license. An applicant for an initial or renewal distilled spirits direct shipper license 19
35	35	must: 20
36	36	(1) File an application with the department on a form prescribed by the department; 21
37	37	(2) Pay a license fee of one hundred dollars; 22
38	38	(3) Submit a copy of the applicant's current federal distilled spirits permit; 23
39	39	(4) Register each brand label offered for sale in this state, if not previously registered, 24
40	40	and pay all applicable brand registration fees pursuant to chapter 39-13; 25 25.320.35 2 130
41	41	Underscores indicate new language.
42	42	Overstrikes indicate deleted language.
43	43	(5) Hold a South Dakota sales and use tax license issued by the department; and 1
44	44	(6) Be current on the remittance of all applicable state and local taxes. 2
45	45	The department shall issue a distilled spirits direct shipper license to an applicant 3
46	46	who meets the requirements of this chapter. 4
47	47	All moneys collected pursuant to this section must be deposited in the general 5
48	48	fund. 6
49	49	Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 35: 7
50	50	A common carrier may apply for a distilled spirits carrier license. An applicant for 8
51	51	an initial or renewal distilled spirits carrier license shall: 9
52	52	(1) File an application with the department on a form prescribed by the department; 10
53	53	and 11
54	54	(2) Pay a license fee of one hundred dollars. 12
55	55	The department shall issue a distilled spirits carrier license to an applicant who 13
56	56	meets the requirements of this chapter. All moneys collected pursuant to this section must 14
57	57	be deposited in the general fund. 15
58	58	Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 35: 16
59	59	Unless otherwise provided by this section, a direct shipper license and distilled 17
60	60	spirits carrier license is valid from January first through December thirty-first. The license 18
61	61	is valid for an additional three days if an application for a renewal license is in the 19
62	62	possession of the department prior to the first day of January after the expiration of the 20
63	63	license. 21
64	64	The full fee must be charged for any license issued pursuant to this chapter for a 22
65	65	portion of the period provided in this section. 23
66	66	Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 35: 24
67	67	Notwithstanding any other provisions of title 35, a direct shipper of distilled spirits 25
68	68	licensed pursuant to this chapter may sell and ship distilled spirits to an individual in this 26
69	69	state who the direct shipper verified to be twenty-one years of age or older, if the distilled 27
70	70	spirits are registered for direct shipment as required pursuant to section 2 of this Act. 28
71	71	Before shipping the distilled spirits, the direct shipper shall verify the age of the 29
72	72	individual placing the order by obtaining a copy of the individual's valid, age-bearing photo 30
73	73	identification document issued by this state, another state, or the federal government, or 31 25.320.35 3 130
74	74	Underscores indicate new language.
75	75	Overstrikes indicate deleted language.
76	76	by using an age verification service. The direct shipper shall record the name, address, 1
77	77	date of birth, and telephone number of the individual placing the order on the order form 2
78	78	or other verifiable record. The direct shipper shall notify the individual placing the order 3
79	79	that the recipient of the shipment is required to show a valid age -bearing photo 4
80	80	identification document issued by this state, another state, or the federal government 5
81	81	upon delivery. 6
82	82	A direct shipper of distilled spirits may not ship more than twelve liters of distilled 7
83	83	spirits, in any calendar year, to an individual under this chapter. 8
84	84	A direct shipper of distilled spirits may not ship more than sixty thousand liters of 9
85	85	distilled spirits into this state, in any calendar year. 10
86	86	A direct shipper who ships distilled spirits in violation of this section is subject to a 11
87	87	civil penalty of one thousand dollars for a first offense and two thousand dollars for all 12
88	88	subsequent violations. The department may impose the penalty. 13
89	89	The department shall forward all moneys collected pursuant to this section to the 14
90	90	state treasurer, for deposit in the general fund. 15
91	91	Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 35: 16
92	92	A direct shipper shall label each package to be shipped in accordance with the 17
93	93	provisions of this chapter so that it conspicuously contains words indicating the package 18
94	94	contains alcohol and that the signature of an individual, twenty-one years of age or older, 19
95	95	is required for delivery. 20
96	96	A direct shipper who ships distilled spirits in violation of this section is subject to a 21
97	97	civil penalty of one thousand dollars for a first offense and two thousand dollars for all 22
98	98	subsequent violations. The department may impose the penalty. 23
99	99	The department shall forward all moneys collected pursuant to this section to the 24
100	100	state treasurer, for deposit in the general fund. 25
101	101	Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 35: 26
102	102	A shipment of distilled spirits made in accordance with this chapter must be 27
103	103	delivered by a distilled spirits carrier and must be accompanied by a shipping label that 28
104	104	conforms to the requirements contained in section 6 of this Act. The distilled spirits carrier 29
105	105	shall obtain the signature of an individual, twenty-one years of age or older, prior to 30
106	106	delivery of the shipment. The distilled spirits carrier shall request that the individual 31
107	107	signing for the shipment display a valid age-bearing photo identification document issued 32 25.320.35 4 130
108	108	Underscores indicate new language.
109	109	Overstrikes indicate deleted language.
110	110	by this state, another state, or the federal government verifying that the individual is 1
111	111	twenty-one years of age or older. 2
112	112	A common carrier or distilled spirits carrier who delivers distilled spirits to an 3
113	113	individual under twenty-one years of age is subject to a civil penalty of one thousand 4
114	114	dollars for a first offense and two thousand dollars for all subsequent violations. 5
115	115	The department shall forward all moneys collected pursuant to this section to the 6
116	116	state treasurer, for deposit in the general fund. 7
117	117	Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 35: 8
118	118	An individual who receives distilled spirits pursuant to the provisions of this chapter 9
119	119	may not resell any of the distilled spirits. 10
120	120	It is a Class 1 misdemeanor for an individual to resell or attempt to resell any 11
121	121	distilled spirits obtained pursuant to the provisions of this chapter. 12
122	122	Section 9. That a NEW SECTION be added to a NEW CHAPTER in title 35: 13
123	123	A direct shipper of distilled spirits may ship only distilled spirits that were produced 14
124	124	by the direct shipper in accordance with the direct shipper's federal distilled spirits permit. 15
125	125	A violation of this section is a Class 2 misdemeanor. 16
126	126	Section 10. That a NEW SECTION be added to a NEW CHAPTER in title 35: 17
127	127	A direct shipper is deemed to have consented to the jurisdiction of the department 18
128	128	and the courts of this state with respect to the enforcement of the provisions of this 19
129	129	chapter. The department may perform an audit of a direct shipper's records and any 20
130	130	documents used to verify the age of an individual ordering distilled spirits from the direct 21
131	131	shipper. The direct shipper shall provide copies of any records upon request by the 22
132	132	department. 23
133	133	Section 11. That a NEW SECTION be added to a NEW CHAPTER in title 35: 24
134	134	A direct shipper shall file quarterly reports with the department on or before the 25
135	135	fifteenth day of the month following each quarterly period ending March thirty-first, June 26
136	136	thirtieth, September thirtieth, and December thirty-first. The required quarterly report 27
137	137	must be filed even if no business was transacted in this state during the reporting period. 28
138	138	The report must contain the following documentation regarding the shipment of 29
139	139	distilled spirits under this chapter: 30 25.320.35 5 130
140	140	Underscores indicate new language.
141	141	Overstrikes indicate deleted language.
142	142	(1) The business name, address, and direct shipper license number of the direct 1
143	143	shipper; 2
144	144	(2) The total gallons of distilled spirits shipped to recipients in this state during the 3
145	145	quarterly period; 4
146	146	(3) The name and address of shipment recipients in this state and the number of cases, 5
147	147	or portions thereof, received per recipient during the quarterly period; 6
148	148	(4) The distilled spirits carrier used to deliver each shipment; 7
149	149	(5) The date, type of distilled spirits, brand label, quantity, and purchase price of each 8
150	150	shipment; 9
151	151	(6) Any taxes paid by the purchaser of each shipment, during the quarterly period; 10
152	152	and 11
153	153	(7) The tracking number of each shipment. 12
154	154	Section 12. That a NEW SECTION be added to a NEW CHAPTER in title 35: 13
155	155	A distilled spirits carrier shall file quarterly reports with the department on or before 14
156	156	the fifteenth day of the month following each quarterly period ending March thirty-first, 15
157	157	June thirtieth, September thirtieth, and December thirty-first. The required quarterly 16
158	158	report must be filed even if no business was transacted in this state during the reporting 17
159	159	period. 18
160	160	The report must include: 19
161	161	(1) The business name and address of the direct shipper for each shipment; 20
162	162	(2) The date of shipment; 21
163	163	(3) The name and address of shipment recipients in this state; 22
164	164	(4) The weight in pounds of each package shipped; and 23
165	165	(5) The tracking number of each shipment. 24
166	166	Section 13. That a NEW SECTION be added to a NEW CHAPTER in title 35: 25
167	167	A direct shipper shall pay the alcohol excise tax, as prescribed pursuant to § 35-5-26
168	168	2, according to the rates established in § 35-5-3. Notwithstanding the filing and payment 27
169	169	requirements prescribed in chapter 35-5, a direct shipper shall include on the report 28
170	170	required by section 11 of this Act, the gallons of distilled spirits shipped to recipients in 29
171	171	this state by each category set forth in § 35-5-3, and calculate the tax due for each 30
172	172	category. 31
173	173	Additionally, the direct shipper shall pay the tax imposed by § 35-5-6.1 on shipped 32
174	174	distilled spirits based upon the purchase price of distilled spirits sold to the individual under 33 25.320.35 6 130
175	175	Underscores indicate new language.
176	176	Overstrikes indicate deleted language.
177	177	the provisions of this chapter. The direct shipper shall remit the taxes quarterly on or 1
178	178	before the fifteenth day of the month following each quarterly period. 2
179	179	Section 14. That a NEW SECTION be added to a NEW CHAPTER in title 35: 3
180	180	All reports required pursuant to sections 11 and 12 of this Act must be submitted 4
181	181	by electronic means to the department. All taxes required to be remitted pursuant to 5
182	182	section 13 of this Act must be remitted by electronic transfer to the department. 6
183	183	Section 15. That a NEW SECTION be added to a NEW CHAPTER in title 35: 7
184	184	A sale and shipment of distilled spirits directly to an individual in this state from a 8
185	185	distillery that does not hold a valid direct shipper license is prohibited. 9
186	186	For the first violation, the department shall send a certified letter to a person who 10
187	187	violates this section and order the person to cease and desist any shipment of distilled 11
188	188	spirits into this state. For all subsequent violations, the department shall notify the 12
189	189	alcoholic beverage control agency in the person's state of domicile, if other than this state, 13
190	190	and the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of 14
191	191	the Treasury of the violation. A person who violates this section is subject to a civil penalty 15
192	192	of up to five thousand dollars. 16
193	193	The department shall forward all moneys collected pursuant to this section to the 17
194	194	state treasurer, for deposit in the general fund. 18
195	195	Section 16. That a NEW SECTION be added to a NEW CHAPTER in title 35: 19
196	196	The department may promulgate rules, pursuant to chapter 1-26, concerning: 20
197	197	(1) Forms necessary for the implementation of this chapter; 21
198	198	(2) Reporting and tracking requirements for distilled spirits direct shipper licensees; 22
199	199	and 23
200	200	(3) The procedure for filing tax returns and the payment of all applicable taxes. 24
201	201	Section 17. That a NEW SECTION be added to a NEW CHAPTER in title 35: 25
202	202	The department shall compile and publish on its website a list of distilled spirits 26
203	203	labels registered for sale and shipped in the state each quarter, based on information 27
204	204	reported pursuant to section 11 of this Act. The list must include: 28
205	205	(1) The manufacturer's name and address; 29
206	206	(2) Each brand label shipped by the manufacturer; and 30 25.320.35 7 130
207	207	Underscores indicate new language.
208	208	Overstrikes indicate deleted language.
209	209	(3) Whether the manufacturer shipped the brand label to an individual under the 1
210	210	provisions of this chapter. 2