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 obligations. Similarly, common carriers must apply for a distilled spirits carrier license under the same conditions. The bill also outlines the responsibilities of direct shippers, including age verification of consumers, shipment limits, and labeling requirements.

Additionally, the bill imposes penalties for violations, such as shipping to underage individuals or failing to comply with licensing requirements. It mandates that both direct shippers and carriers file quarterly reports detailing their shipments and tax payments, 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 legislation aims to regulate the direct sale and shipment of distilled spirits while ensuring that appropriate age restrictions and tax obligations are met.