This bill amends South Dakota's liquor licensing laws, specifically addressing renewal fee requirements for on-sale liquor licensees whose business premises have been annexed into a first-class municipality. The bill modifies Section 35-4-2 to clarify that while the renewal fee for on-sale licenses may not exceed fifteen hundred dollars, there is an exception for licensees affected by annexation. In such cases, the municipal governing body can set the renewal fee equal to the most recent on-sale liquor license fee issued by the municipality for the first renewal after annexation. Additionally, the bill ensures that the increased renewal fee cannot be imposed on licensees who initially paid a fee that was at least equal to the municipality's current fee for an on-sale license.

Furthermore, Section 35-4-13 is amended to allow on-sale licensees to continue operating until their license expires after their premises have been annexed. It also stipulates that renewal applications cannot be denied based on the number of existing on-sale licenses exceeding the limits set by the law. The bill aims to provide clarity and fairness in the renewal process for on-sale liquor licenses in the context of municipal annexation, ensuring that licensees are not unduly penalized by increased fees or restrictions.

Statutes affected:
Introduced, 01/29/2025: 35-4-2, 35-4-13
Senate Local Government Engrossed, 02/07/2025: 35-4-2, 35-4-13