(A) Duration of license.
(1) The period covered by licenses under this chapter is from 12:00 midnight on December 31 to 12:00 midnight December 31 of the next year. However, the license is valid for an additional three days if a proper application for a new license is in the possession of the Secretary before 12:00 midnight on the period.
(2) The sale of malt beverages licenses shall be valid from 12:00 midnight on June 30 to 12:00 midnight on June 30 of the following year.
(B) Municipal application and renewal.
(1) Any application under SDCL Title 35 for a manufacturer, distiller, wholesaler, solicitor, transporter, carrier or dispenser license, and any application for a license to be issued to a municipality shall be initially submitted to the Secretary, who may approve or disapprove the application depending on whether the Secretary deems the applicant a suitable person to hold the license and whether the Secretary considers the proposed location suitable.
(2) Any application for a retail license, except as set forth in SDCL Title 35, shall be submitted to the governing board of the municipality within which the applicant intends to operate, the board may approve or disapprove the application depending on whether the governing board deems the applicant a suitable person to hold the license and whether the governing board considers the proposed location suitable.
(C) Management of municipal liquor licenses.
(1) 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.
(2) 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.
(3) The municipality shall keep a separate accounting of all transactions involving purchases, sales and inventories conducted under each license.
(4) A municipality that holds an off-sale license pursuant to SDCL § 35-4-2(5) is eligible for a license under SDCL § 35-4-2(16) and any municipality holding a license under SDCL Chapter 35-4 is eligible for a retailers license under SDCL § 35-4-2.
(5) 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.
(D) Operating agreements.
(1) Licenses.
(a) On-sale and off-sale licenses. No retailer under this SDCL Chapter 35-4, except for licenses issued pursuant to SDCL §§ 35-4-2(16), other than to the municipality, may be granted to operate in any municipality which has obtained a license under SDCL Chapter 35-4 except that:
(b) If a municipality has been issued an off-sale license only, then the governing board may approve or disapprove applications for an on-sale license as may be provided in SDCL Title 35; and
(c) The municipality, if it has both an on-sale and off-sale liquor license, may by resolution enter into an operating agreement with any person for the specific purpose of operating the on-sale establishment or the off-sale establishment, or both for the municipality.
(d) The municipality may also enter into an operating agreement with an individual to operate a malt beverage license that the municipality owns.
(e) Off-sale license only. If the municipality has only an off-sale license, it may, by resolution, enter into an operating agreement with a manager of a legitimate operating business concern for the specific purpose of operating the off-sale establishment for the municipality.
(2) Provisions of agreement. The operating agreement must contain the following provisions:
(a) The manager shall be responsible for all operating expenses including, but not limited to, taxes, insurance and license fees;
(b) The manager will dispense only liquors dispensed by the municipal off-sale establishment;
(c) The agreement will be for a period not to exceed five years with an extension of five more years at the discretion of the governing body;
(d) Cancellation of the agreement is made upon 90-days written notice by either party;
(e) The manager will pay for all the liquors supplied by the off-sale establishment at actual cost including transportation charges, markup, and such additional compensation or fee as may be agreed upon; and
(f) A complete and detailed record shall be maintained by the municipality of all liquors supplied. The on-sale and such liquors so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quantity, brand, size and actual cost. Such invoices shall bear the signature of the on-sale manager or his or her authorized representative. One copy thereof 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.
(3) Purchase on credit. An operator may not purchase alcoholic beverages on credit.
(4) Number of operating agreements. The number of operating agreements the municipality may have is limited to the number of licenses a municipality can issue.
(E) Municipality holding required license authorized to serve food, prepared food and beverages. 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.
(Prior Code, § 3A-11) (Ord. 1142, passed 9-9-2014)