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 must obtain a distilled spirits direct shipper license, which requires an application, a fee, and compliance with federal and state regulations. Similarly, common carriers must apply for a distilled spirits carrier license. The bill outlines the conditions under which shipments can occur, including age verification for recipients and limits on the quantity of spirits that can be shipped annually.

Additionally, the bill imposes penalties for violations of the shipping regulations, including civil penalties for unauthorized shipments and for delivering to individuals under the legal drinking age. It mandates that both direct shippers and carriers file quarterly reports detailing their shipments and tax obligations, which must be submitted electronically. The Department of Revenue is tasked with overseeing the implementation of these regulations, including the ability to audit records and enforce compliance. Overall, the bill aims to regulate the direct sale and shipment of distilled spirits while ensuring adherence to age restrictions and tax requirements.