The proposed amendments to the North Dakota Century Code aim to clarify and update the definitions related to domestic and manufacturing distilleries, as well as their operations. Notably, the definition of "domestic distillery" is revised to specify that it produces fewer than twenty-five thousand gallons of distilled spirits per year, while the definition of "manufacturing distillery" is introduced to indicate that it produces forty thousand gallons or fewer annually. Additionally, the term "satellite location" is defined as an offsite location owned or leased by a manufacturing distillery for retail operations.

Furthermore, the bill outlines the sales capabilities of manufacturing distilleries, allowing them to sell spirits directly to consumers and ship them both within and outside the state, with specific limits on quantities. The amendments also permit 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. Importantly, the bill prohibits manufacturing distilleries from engaging in wholesaling activities, ensuring that all sales to other retail licensed premises must go through a licensed North Dakota liquor wholesaler, with an exception for sales to domestic wineries under certain 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