The 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 their satellite locations. Notably, it introduces the definitions of "domestic distillery" and "manufacturing distillery," specifying that a domestic distillery produces 25,000 gallons or fewer of distilled spirits annually, while a manufacturing distillery produces 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.

Furthermore, the bill outlines the sales and delivery regulations for domestic and manufacturing distilleries. A domestic distillery producing no more than 12,000 proof gallons of spirits per year can sell directly to licensed retailers, with specific limits on the total amount sold and individual shipments. Manufacturing distilleries are permitted to sell spirits in retail lots and may hold events at their premises or satellite locations, with the ability to provide free samples and sell products. However, they are restricted from engaging in wholesaling activities, requiring all sales to be made through licensed North Dakota liquor wholesalers, except in specific circumstances involving domestic wineries.

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