This bill establishes a framework for the direct shipment of distilled spirits to consumers in South Dakota. It introduces new definitions and licensing requirements for both distilleries and common carriers involved in the shipment process. Distilleries wishing to ship directly to consumers must obtain a distilled spirits direct shipper license, which requires an application, a $100 fee, and compliance with various tax and registration requirements. Similarly, common carriers must apply for a distilled spirits carrier license under the same fee and application conditions. The bill also outlines the validity period for these licenses, which runs from January 1 to December 31, with provisions for renewal.

Additionally, the bill sets forth regulations regarding the sale and shipment of distilled spirits, including age verification requirements for consumers, labeling mandates for shipments, and penalties for violations. Direct shippers are limited to shipping a maximum of twelve liters per individual and sixty thousand liters per year, with civil penalties imposed for non-compliance. The legislation mandates that all reports and tax payments related to shipments be submitted electronically to the Department of Revenue, and it prohibits sales from unlicensed distilleries, imposing significant penalties for violations. The Department is also tasked with maintaining a public registry of distilled spirits labels approved for sale in the state.