HB 1466 — Relating to the definitions of a domestic and manufacturing distillery and satellite locations.

25.0453.03000 Sixty-ninth Legislative Assembly of North Dakota FIRSTIn ENGROSSMENTRegular ENGROSSEDSession Commencing Tuesday, January 7, 2025 HOUSE BILL NO.

1466 Introduced(Representatives by Representatives Dockter, Berg, O'Brien, TomanToman) Senators(Senators Larson, MathernMathern) AAN BILLACT for an Act to amend and reenact sectionsections 5-01-01 and 5-01-19.1, and subsection 2 of section 5-01-19.2 of the North Dakota Century Code, relating to the definitions of a domestic and manufacturing distillery and satellite locations.

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1 25.0453.03000 Sixty-ninth Legislative Assembly 6.

"Domestic distillery" means a distillery that produces twenty-five thousand gallons [94635 liters] or lessfewer of distilled spirits per year.

11.12.H.

B.

NO.

1466 - PAGE 2 11.12.

"Manufacturing distillery" means a distillery that produces moreforty than twenty-five thousand gallons [151416 liters] or fewer of distilled spirits per year.

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2 25.0453.03000 Sixty-ninth Legislative Assembly 16.19.

Section 5-01-19.1 of the North Dakota Century Code is amended and reenacted as follows:

5-01-19.1.

Direct sale by domestic distilleries.

1.

A domestic distillery that produces no more than twelve thousand proof gallons [4200045425 liters] of spirits per year may sell and deliver, onsite or offsite, the spirits produced by the distillery directly to licensed retailers.

The distillery may sell and deliver spirits onsite to a licensed retailer that presents the retailer's license or a photocopy of the license.

The distillery may deliver the spirits offsite if the distillery:

a.

Uses the distillery's equipment, trucks, and employees to deliver the spirits;

b.

Contracts with a licensed distributor to ship and deliver the spirits to the retailer;

or c.

Contracts with a common carrier to ship and deliver the spirits to the retailer directly from the distillery or the distillery's warehouse.

2.

The total amount of spirits each domestic distillery may sell or deliver directly to all licensed retailers may not exceed two hundred cases per year.

Individual shipments delivered by H.

B.

NO.

1466 - PAGE 3 common carrier may not exceed three cases a day for each licensed retailer.

A case may not exceed two and thirty-eight hundredths gallons [9 liters].

3.

As used in this section, "proof gallon" means a gallon [3.783.79 liters] of liquid at sixty degrees Fahrenheit [15.5 degrees Celsius] which contains fifty percent ethyl alcohol by volume or its equivalent.

SECTION 3.

AMENDMENT.

A manufacturing distillery may sell spirits produced by that distillery at off sale, in retail lots, and not for resale, and may sell or direct ship its spirits to persons inside or outside the state in a manner consistent with the laws of the place of the sale or delivery in total quantities not in excess of twenty-five thousandonethousandforty hundred fifty thousand gallons [94635567812[94635151416 liters] in a calendar year.

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3 25.0453.03000 Sixty-ninth Legislative Assembly c.

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