___________________ moved that HB 1233 be amended as follows:
Section 3. The department may, upon receipt of an application, issue an artisan distiller license
to a person who is authorized under the provisions of the Federal Alcohol Administration Act, 27
201 to 212, inclusive, as of January 1, 2006. A licensee may import, manufacture, distill,
rectify, blend, process, denature, sell, transport, and store distilled spirits of an alcoholic content
greater than seventeen percent alcohol by weight and may transport the distilled spirits out of this
state for sale outside this state. A licensee may sell alcoholic beverages as provided in section 6 of
Section 4. No agricultural producer, association of agricultural producers, or legal agent who
manufactures and converts agricultural surpluses, byproducts, or wastes into denatured ethyl and
industrial alcohol for purposes other than human consumption is required to obtain an artisan distiller
Section 5. An artisan distiller that produces distilled spirits within the state pursuant to section
2 of this Act shall maintain records of all sales and shipments. The artisan distiller shall furnish the
department a monthly and other reports concerning quantities and prices of distilled spirits shipped
and other information that the department determines to be necessary to ensure that the distribution
of distilled spirits within this state conforms to the requirements of this Act.
Section 6. An artisan distiller licensed pursuant to this Act may:
Notwithstanding the provisions of
35-2-6.4, any person employed by or with an
interest in a business that holds a license pursuant to subdivisions 35-4-2(2), (3), (4), (5), (6), (12),
(13), (16), (17), (18), and (19) may have an interest of ten percent or less in an artisan distiller
provided that the total percent of ownership of an artisan distiller by persons with such interest does
not exceed forty-nine percent.
Section 9. There is hereby levied on all distilled spirits manufactured or produced by a South
Dakota artisan distillery an excise tax imposed at the same rates and collected and administered in
the same manner as the tax imposed on distilled spirits in chapter 35-5.
Section 10. The excise tax on distilled spirits established in section 9 of this Act shall be paid
to the secretary of the Department of Revenue and Regulation on or before the fifteenth day of the
month following the month in which the first sale is made in this state by a licensed farm winery and
shall be deposited in the general fund. The artisan distillery licensee shall file with the secretary a
return in the form prescribed by the secretary, and shall keep records and render reports required by
the secretary in rules promulgated pursuant to chapter 1-26.
Section 11. A farm winery may sell for off sale consumption up to one liter per person per day
of distilled spirits made from product provided by that winery and purchased from an artisan distiller
pursuant to this Act.
Section 12. A farm winery licensed pursuant to chapter 35-12 may provide, with or without
charge, not more than two ounces of distilled spirits samples produced at an artisan distiller pursuant
to this Act to any person for consumption on the premises between twelve noon and twelve
Section 13. An artisan distiller or farm winery which receives less then ten dollars a month from
the tax on the sale of distilled spirits samples is not required to file a return or pay the tax under Title
Section 14. Any artisan distiller or farm winery who owe taxes amounting to less than one
hundred dollars per month on an annual average may be permitted by the department to report any
pay the tax on a semiannual basis or other time period and in such manner as deemed reasonable by
Section 15. That
be amended to read as follows:
Any distiller, manufacturer, wholesaler, or retailer licensee under this title
as provided in this Act, shall
be the owner or actual lessee of the premises where the business is to
be conducted and the sole owner of the business to be operated under such license.