2018 Legislative Session - Recap

The final week of session ended on Friday, March 9th after legislators approved a roughly $4.7 billion state budget that includes higher-than expected funding to education, Medicaid providers and state employees for the upcoming budget year.

The legislature reconvened on Monday, March 26th, for the final day of session. This day is reserved for legislators to consider any vetoes.

Below are the bills that affected the alcoholic beverage/video lottery industry during this session and their outcome. A copy of each bill is also available at the following web address:

www.sdlegislature.gov

Bill No. SB 70

Sponsor: Senators Ewing, Curd, Haverly, Jensen (Phil), Kennedy, Klumb, Maher, Nelson, Novstrup, Otten (Ernie), Peters, Rusch, and Youngberg and Representatives Beal, Clark, DiSanto, Gosch, Howard, Kaiser, Lust, May, Peterson (Sue), Rhoden, Rounds, Steinhauer, and Zikmund

Title: To define the term, serve, for the purposes of regulating the sale and use of alcoholic beverages.

Status: Passed the Senate and the House. Signed by the Governor, 3/8/2018

Bill No. SB 101

Sponsors: Senator Maher and Representative Rounds

Title: To prohibit certain nondiscriminatory pricing between malt beverage suppliers and malt beverage wholesalers.

Status: DEFERRED to the 41st Day

Bill No. SB 152

Sponsors: Senators Solano, Cronin, Curd, Haverly, Nesiba, Partridge, Rusch, Soholt, Stalzer,

Tidemann and Representatives Heinemann, Ahlers, Barthel, Bartling, Johns, Lust, McCleerey, McPherson, Mills, Reed, Ring, Rozum, Smith, Steinhauer, and York

Title: To revise certain provisions relating to the sale and possession of tobacco products.

Status: Withdrawn.

Bill No. SB 169

Sponsors: The Committee on Commerce and Energy at the request of the Office of the Governor

Title: To revise certain provisions regarding confections that contain alcohol and do declare an emergency.

Status: Passed. Signed by Governor, 3/9/2018

Bill No. SB 173

Sponsors: Senators Curd, Cronin, Ewing, Frerichs, Greenfield (Brock), Haverly, Heinert, Kolbeck, Maher, Otten (Ernie), Partridge, Peters, Solano, Stalzer, Tidemann, White, and Wiik and Representatives Steinhauer, Ahlers, Bartling, Beal, Chase, Clark, Conzet, Greenfield (Lana), Lake, Otten (Herman), Pischke, Rhoden, Rounds, Turbiville, and Willadsen

Title: To establish certain provisions regarding microbreweries and malt beverage

manufacturers.

Status: Passed. Signed by the Governor, 3/22/2018

Bill No. SB 178

Sponsors: Senators Soholt, Cronin, Haverly, Otten (Ernie), Peters, Rusch, and Solano and Representatives Otten (Herman), Barthel, Duvall, Holmes, Johnson, Kaiser, Kettwig, Reed, Ring, Smith, and Zikmund

Title: To provide certain exceptions from alcoholic beverage provisions regarding events conducted by certain civic, charitable, educational, fraternal, or veterans organizations.

Status: Passed. Signed by the Governor, 3/22/2018

Bill No. SB 187

Sponsors: Senators Solano and Rusch and Representative Johnson

Title: To accommodate legislation authorizing the issuance of wine manufacturer licenses.

Status: Passed. Signed by the Governor, 3/22/2018

SJR9:

Sponsors: Senators Tidemann, Cronin, Curd, Frerichs, Kennedy, Langer, Maher, Nesiba, Peters, Rusch, and Soholt and Representatives Hunhoff, Ahlers, Bartels, Beal, Brunner, Clark, Gosch, Kaiser, McCleerey, Schoenfish, and Zikmund

Title: Proposing and submitting to the electors at the next general election an amendment to the Constitution of the State of South Dakota, relating to the authorization of certain games of chance in the City of Yankton.

Status: Failed in the Senate.

Bill No. HB 1067

Sponsors: The Committee on Commerce and Energy at the request of the Department of Revenue

Title: To revise certain provisions regarding the licensing of wineries and wine manufacturers.

Status: Passed, Signed by the Governor, 3/22/2018

Bill No. HB 1070

Sponsors: The Committee on Commerce and Energy at the request of the Dept. of Revenue

Title: To revise and repeal certain provisions regarding alcoholic beverages.

Status: Passed by Senate and House, Signed by the Governor, 3/8/2018

Bill No. HB 1121

Sponsors: Representatives Johns, Barthel, Beal, Holmes, Howard, Johnson, Lust, Peterson (Kent), Rounds, Schaefer, Schoenfish, Steinhauer, Stevens, Tulson, Turbiville, and York and Senators Kolbeck, Cronin, Ewing, Haverly, Jensen (Phil), Monroe, Nelson, Rusch, Russell, Stalzer, and Youngberg

Title: To revise the fees for certain on-sale and off-sale retail liquor licenses.

Status: Passed the Senate and House, Signed by the Governor, 3/12/2018

Bill No. HB 1125

Sponsors: Representatives Steinhauer, Ahlers, Diedrich, Greenfield (Lana), Heinemann, Hunhoff, Johns, Lesmeister, Livermont, Lust, May, McCleerey, Peterson (Sue), Pischke, Rasmussen, Ring, Smith, Willadsen, and Zikmund and Senators Peters, Bolin, Cronin, Jensen (Phil), Nelson, Nesiba, Rusch, Wiik, and Youngberg

Title: To revise the minimum purchase price for the off-sale delivery of certain alcohol.

Status: Failed in the House.

Bill No. HB 1132

Sponsors: Representatives Goodwin, Dennert, DiSanto, Frye-Mueller, Howard, Jamison, Kaiser, and Pischke and Senators Nelson and Jensen (Phil)

Title: To revise the sponsorship and advertising agreements between certain alcoholic beverage licensees.

Status: Failed.

Bill No. HB 1134

Sponsors: Representatives Rozum, Bartling, Brunner, Carson, Clark, Hawley, Heinemann, Kettwig, May, and Turbiville and Senators Klumb, Haverly, Peters, and Soholt

Title: To revise certain provisions regarding on-sale alcoholic beverage licenses for municipal auditoriums and convention halls.

Status: Commerce and Energy tabled. Passed.

Bill No. HB 1146

Sponsors: Representatives Kettwig, Barthel, Bartling, Chase, Duvall, Greenfield (Lana), Hawley, Howard, Johnson, Lesmeister, Lust, May, McCleerey, Mickelson, Mills, Otten (Herman), Pischke, Reed, Rozum, Willadsen, and Zikmund and Senators Sutton, Frerichs, Greenfield (Brock), Maher, Soholt, and Youngberg

Title: To revise certain provisions regarding the consumption of alcoholic beverages by passengers aboard vehicles operated by licensed carriers.

Status: Passed. Signed by the Governor, 3/22/2018

Bill No. HB 1157

Sponsors: Representatives Barthel, Diedrich, Duvall, Gosch, Hawley, Holmes, Jamison, Johns, Lust, Mickelson, Peterson (Kent), Pischke, Reed, Rozum, Schoenfish, Turbiville, Willadsen, and Zikmund and Senators Langer, Cronin, Curd, Frerichs, Greenfield (Brock), Haverly, Heinert, Jensen (Phil), Killer, Nelson, Peters, Russell, Soholt, Stalzer, Tidemann, and Wiik

Title: To authorize certain alcohol manufacturers and wholesalers to enter into sponsorship agreements with certain alcohol retail licensees.

Status: Passed the Senate and House. Signed by the Governor, 3/7/2018

Bill No. HB 1173

Sponsors: Representatives Chase, Glanzer, and McCleerey and Senators White and Kennedy

Title: To provide for inactive status of airport liquor licenses.

Status: Passed the Senate and House. Signed by the Governor, 3/5/2018

Bill No. HB 1185

Sponsors: Representatives Conzet, Duvall, Frye-Mueller, Johnson, Marty, Mickelson, Otten (Herman), Peterson (Kent), Rounds, Rozum, Schoenfish, Turbiville, and Willadsen and Senators Maher, Cronin, Curd, Solano, and Sutton

Title: To establish provisions regarding the storage of wine at certain licensed premises.

Status: Passed. Signed by the Governor, 3/5/2018

Bill No. HB 1200

Sponsors: Representatives Mickelson and Steinhauer and Senator Cronin

Title: To revise certain on-sale full-service restaurant alcoholic beverage license provisions and to authorize municipalities and counties to lease on-sale full-service restaurant alcoholic beverage licenses.

Status: DEFERRED to the 41st Day.

Bill No. HB 1220

Sponsors: Representatives Dennert, Kaiser, Latterell, and Pischke and Senator Nelson

Title: To revise the penalty for certain offenses regarding the manufacture, sale, or possession of alcohol in a powdered, condensed, or other concentrated form under most circumstances.

Status: DEFERRED to the 41st Day.

Bill No. HB 1250

Sponsors: Representative Heinemann and Senator Solano

Title: To revise certain provisions relating to the sale and possession of tobacco products.

Status: Failed in the House.

Bill No. HB 1273

Sponsors: Representatives Wiese, Barthel, Brunner, Campbell, Clark, Dennert, Goodwin, Heinemann, Howard, Jamison, Kaiser, Kettwig, Lust, McCleerey, Mills, Pischke, Rasmussen, Reed, Rhoden, Ring, Rounds, Rozum, Turbiville, and York and Senators Youngberg, Ewing, Heinert, Kennedy, Langer, Otten (Ernie), Peters, and Rusch

Title: To revise certain provisions regarding convention facility on-sale licenses to sell alcoholic beverages.

Status: Passed Senate and House. Signed by the Governor, 3/9/2018

Bill No. HB 1274

Sponsors: Representatives Mickelson, Bartels, Bartling, Heinemann, Lust, Reed, Rozum, Schaefer, Steinhauer, Stevens, York, and Zikmund and Senator Novstrup

Title: To increase the tax on cigarettes and other tobacco products and to appropriate the revenues.

Status: DEFERRED to the 41st Day.

Bill No. HB 1279

Sponsors: Representatives Mills, Campbell, Goodwin, Haugaard, Heinemann, Howard, Latterell, McCleerey, Peterson (Sue), Qualm, Rasmussen, Rhoden, Steinhauer, Wiese, and Zikmund and Senators Frerichs, Jensen (Phil), and Netherton

Title: To increase the state’s percentage of the video lottery net machine income, create a fund for the proceeds, and repeal video lottery.

Status: DEFERRED to the 41st Day.

Bill No. HB 1294

Sponsors: Representatives Brunner, Bartling, Clark, Heinemann, Jensen (Kevin), May, Mickelson, Rasmussen, Wismer, and Zikmund and Senators Nesiba, Frerichs, and Klumb

Title: To increase the tax on certain alcoholic beverages and to distribute the revenue.

Status: DEFERRED to the 41st Day.

Bill No. HB 1308

Sponsors: Representatives Wismer, Ahlers, Brunner, Heinemann, May, Mickelson, and Zikmund and Senator Klumb

Title: To provide an excise tax on alcoholic beverage sales and the distribution of the revenue.

Status: Senate Committee on Appropriations Tabled, Passed.

Bill No. HB 1313

Sponsors: Representatives Rounds and Gosch and Senators Jensen (Phil) and Wiik

Title: To revise certain provisions regarding the licensing of distillers and cider manufacturers.

Status: Passed. Signed by the Governor, 3/22/2018

We welcome your input during session regarding the bills that are being proposed or brought forward. Our association and lobbyist work continually to protect the interests of our members and the industry. If you have any issues that you feel need to be addressed, please contact our office so that those topics can be discussed, etc. Our office number is #800-721-1789 or #605-343-1844.

Thank you.