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Bill

HB 1079

increase the number of off-sale licenses from two to three in municipalities and counties of one thousand or less.

2025 Regular Session Introduced by Aaron Aylward and 12 co-sponsors

South Dakota increases off-sale liquor licenses from two to three in municipalities and counties with populations under 1,000, expanding retail alcohol access in small communities.

Signed by the Governor on 2025-03-13 H.J. 542
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Bill Summary · HB 1079

Legislative bill overview

HB 1079 increases the maximum number of off-sale liquor licenses (licenses for alcohol sales in venues like stores and gas stations, not bars) from two to three in South Dakota municipalities and counties with populations of 1,000 or fewer. The bill passed with unanimous Senate support and was signed into law by the Governor on March 13, 2025.

Why is this important

In small towns, liquor license caps directly affect business competition, consumer access, and local tax revenue. This change allows one additional retail alcohol outlet in communities under 1,000 residents, potentially enabling new businesses to enter the market or existing retailers to expand. For these rural communities, it represents a modest economic development tool and may improve service availability.

Potential points of contention

  • Alcohol availability concerns: Public health advocates may argue that increasing access points expands alcohol availability in small communities, potentially affecting public health outcomes
  • Market fairness: Existing license holders could face reduced profit margins or market share if new competitors enter, raising questions about economic fairness to established businesses
  • Population threshold definition: The 1,000-person threshold may create border disputes and fairness questions between communities just above and below the cutoff

Compiled from official sources — confirm details with the bill’s official record.

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