The proposed bill aims to establish small-batch alcohol licenses in South Dakota, amending existing laws to create specific definitions and regulations for small-batch breweries, wineries, distilleries, and cideries. Key amendments include the introduction of definitions for "small-batch" producers, which are defined by their production limits: small-batch breweries (750 barrels), small-batch wineries (3,750 gallons), small-batch distilleries (1,250 gallons), and small-batch cideries (300 barrels). The bill also sets the licensing fee for these small-batch producers at $500, aligning it with existing farm winery fees.

Additionally, the bill modifies existing regulations to clarify that small-batch producers can sell their products for on-sale or off-sale consumption and may hold multiple licenses for additional locations, provided they do not exceed production limits. It also includes provisions that allow producers to maintain their license eligibility even if their production falls below the maximum limits. The bill emphasizes the importance of using locally sourced agricultural products, while also allowing for the use of imported materials if local supplies are insufficient. Overall, the legislation seeks to support and regulate the growing small-batch alcohol industry in South Dakota.

Statutes affected:
Introduced, 01/19/2026: 35-2-6.4, 35-12-13, 35-12-14, 35-12-16, 35-12-17, 35-12-18, 35-12-19, 35-12-20, 35-13-13, 35-13-14, 35-13-18, 35-13-19, 35-13-20, 35-13-21, 35-14-1, 35-14-2, 35-14-5, 35-14-6, 35-15-1, 35-15-2, 35-15-5, 35-15-6