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(A) Any applicant for a new retail license, except as set forth in SDCL § 35-2-1.1, or the transfer of an existing license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the required fee with the application. The governing body may approve the application for a new retail license or the transfer of an existing license if the governing body considers the applicant suitable to hold the license and the proposed location is suitable.
(B) The governing body may disapprove an application for a new retail license or the transfer of an existing license issued under subdivision SDCL § 35-4-2(4), (6), or (13) if:
(1) The approval of the application permits a person, corporation, or business entity to possess more than one-third of the licenses available to be issued in the jurisdiction; and
(2) The governing body determines that possession of more than one-third of licenses available is not in the public interest.
(C) Any application for the reissuance of a retail license may be approved by the municipal or county governing body without a hearing unless in the past year the licensee or one or more of the licensee's employees have been subjected to a criminal penalty for violation of the alcoholic beverage control law or the license has been suspended.
(SDCL § 35-2-1.2)
(A) The governing body shall operate and conduct the municipal liquor establishment and if necessary, shall set the prices to be charged on all sales of liquor.
(B) Gross receipts are to be submitted to the municipal finance officer and disbursements from the fund shall only be made with presentation of verified vouchers.
(C) The municipality shall keep a separate accounting of all transactions involving purchases, sales and inventories conducted under each license.
(D) A municipality that holds an off-sale license pursuant to § 113.15(A)(5) is eligible for a license under § 113.15(A)(16) or (17) and any municipality holding a license under SDCL Chapter 35-4 is eligible for a retailer's license under SDCL § 113.15(A)(17).
(E) Upon termination of the license, the governing board shall liquidate the business operated and the assets of the business in such a manner as may be determined by resolution, and is consistent with law.
(A) Licenses.
(1) On-sale and off-sale license.
(a) Any municipality that has obtained a license under SDCL Title 35 may issue licenses pursuant to § 113.15 § 35-4-2(12) and (16).
(b) If a municipality has been issued an off-sale license only, the governing body may approve or disapprove applications for on-sale licenses issued pursuant to SDCL § 35-4-2(4). If a municipality has been issued an on-sale and off-sale license, the governing body may, by resolution, enter into an operating agreement with any person for the specific purpose of operating an on-sale establishment or an off-sale establishment, or both for the municipality.
(SDCL § 35-4-19)
(2) Malt beverage license. The municipality may also enter into an operating agreement with an individual to operate a malt beverage license that the municipality owns.
(3) Off-sale license only. If a municipality has been issued an off-sale license only, the governing body may, by resolution, enter into an operating agreement with the manager of a legitimate operating business concern for the specific purpose of operating the off-sale establishment for the municipality.
(SDCL § 35-4-22)
(B) Provisions of agreement. An operating agreement under SDCL § 35-4-19 shall include:
(1) The manager is responsible for all operating expenses, including taxes, insurance, and license fees, if any;
(2) The manager may dispense only alcoholic beverages supplied by the municipal off-sale establishment;
(3) The agreement shall be for a period not to exceed five years with the provision of one extension also not to exceed five years in the discretion of the governing body;
(4) The agreement may be canceled by 90-days' written notice by either party;
(5) The manager shall pay for all alcoholic beverages supplied by the municipal off-sale establishment, the actual cost price, the transportation charges and markup, and any additional compensation or fee as may be mutually agreed upon by both parties;
(6) A complete and detailed record shall be maintained by the municipality of all alcoholic beverages supplied the on-sale manager. All alcoholic beverages shall be evidenced by prenumbered invoices prepared in triplicate showing the date, quantity, brand, size, and actual cost as set forth in division (5) above. The invoices shall bear the signature of the on-sale manager or the manager's authorized representative. One copy of the invoice shall be retained by the off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the municipal auditor or clerk. All copies shall be kept as permanent records and made available for reference and audit purposes.
(SDCL § 35-4-21)
(C) Purchase on credit. An operator may not purchase alcoholic beverages on credit.
(D) Number of operating agreements. The number of operating agreements the municipality may have is limited to the number of licenses a municipality can issue.
Any municipality holding a license pursuant to SDCL Title 35 may serve or provide for the service of food, prepared food, and beverages at any establishment operating under such license.
(SDCL § 9-12-20)
AGE REQUIREMENTS
(A) No licensee may sell or serve any alcoholic beverage to any person who is obviously intoxicated.
(B) However, no licensee is civilly liable to any injured person or the injured person's estate for any injury suffered, including any action for wrongful death, or property damage suffered because of the intoxication of any person due to the sale or consumption of any alcoholic beverage in violation of the provisions of this section.
(SDCL § 35-4-78) Penalty, see § 10.99
No on-sale or off-sale licensee may permit any person less than 21 years old to loiter on the licensed premises or to sell, serve, dispense, or consume alcoholic beverages on the licensed premises
(SDCL § 35-4-79) Penalty, see § 10.99
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