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 whose premises have been annexed. In such cases, the municipal governing body can set the renewal fee equal to the fee for the most recent on-sale liquor license 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 not less than what the municipality was charging for an on-sale license.

Furthermore, the bill amends Section 35-4-13 to allow on-sale licensees to continue operating until their license expires after their premises have been annexed. It stipulates that renewal applications cannot be denied based on the number of existing on-sale licenses exceeding the limits set by the law. For subsequent renewals after the first, the renewal fee must not exceed the previously established cap of fifteen hundred dollars. These changes aim to provide clarity and fairness for on-sale liquor licensees affected by municipal annexation.

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