This bill amends and reenacts several sections of the North Dakota Century Code to clarify definitions and regulations surrounding domestic and manufacturing distilleries, as well as satellite locations. Notably, it introduces the definitions of "domestic distillery," which is defined as a distillery producing 25,000 gallons or fewer of distilled spirits per year, and "manufacturing distillery," defined as one producing 40,000 gallons or fewer. Additionally, the bill defines "satellite location" as an offsite location owned or leased by a manufacturing distillery for retail operations.

The bill also outlines the sales regulations for domestic and manufacturing distilleries. A domestic distillery producing no more than 12,000 proof gallons of spirits per year is permitted to sell directly to licensed retailers, with specific limits on the total amount sold and the size of individual shipments. For manufacturing distilleries, the bill allows for off-sale retail sales and direct shipping of spirits, with a cap of 25,000 gallons per calendar year. Furthermore, it permits manufacturing distilleries to hold events at their premises and satellite locations, where they can offer free samples and sell their products, subject to local ordinances. The bill emphasizes that manufacturing distilleries cannot engage in wholesaling activities, ensuring that all sales to retail licensed premises must go through a licensed North Dakota liquor wholesaler, with an exception for sales to domestic wineries under specific conditions.

Statutes affected:
INTRODUCED: 5-01-01, 5-01-19.2
Adopted by the House Industry, Business and Labor Committee: 5-01-01, 5-01-19.2
FIRST ENGROSSMENT: 5-01-01, 5-01-19.2
Prepared by the Legislative Council staff for Senator Kessel: 5-01-01, 5-01-19.2
Enrollment: 5-01-01, 5-01-19.1, 5-01-19.2