STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

May 2, 1972

Marvin D. Keller
Deputy State's Attorney, Minnehaha County
Sioux Falls, South Dakota 57102

OFFICIAL OPINION NO. 72-21

Private parties in licensed alcoholic beverage establishments.

Dear Mr. Keller:

You have requested my opinion on the following factual situation concerning the service of alcoholic beverages.

Numerous motels and clubs in Sioux Falls, South Dakota, have on-sale liquor licenses. The management of these motels and clubs are frequently approached by groups who wish to rent a portion of the space within the premises on Sundays for the purpose of meeting.

These groups also request permission to serve liquor to the persons participating therein. The group would provide its own liquor, hire its bartender, and provide mix and service. The licensee and his employees would not be involved in any way in the serving of drinks.

Concerning this, you have inquired:

Would it be a violation of SDCL 35-4-81 for a licensee to rent space within its premises and allow the group to whom it was rented to serve alcoholic beverages on Sunday?

35-4-81 reads as follows:

... No on-sale licensee shall sell, serve, or allow to be consumed on the premises covered by the license alcoholic beverages, except low-point beer, between the hours of 2 o'clock a.m. and 7 o'clock a.m. or on Sunday after 2 o'clock a.m., or on Memorial Day after 1 o'clock a.m., or at any time on Christmas Day. (underlining supplied)

There appears to be no question from your factual situation that a sale of these beverages by the licensee is not contemplated, however, the prohibition against sale or service is coupled with the prohibition against permitting consumption on the premises covered by the license.

The application for license provided in SDCL 35-2-1, sets forth the legal description of the premises which it is in tended by the applicant are to be used for engaging in the business of the sale of alcoholic beverages. After the applicant designates such premises, (35-2-1.2) the governing body of the municipality approves or rejects the same and thereafter the Commissioner of Revenue does likewise as to suitability for licensing purposes. (35-2-2)

It is my opinion, therefore, that so long as the license has designated the entire premise for the sale of alcoholic beverages, the restriction imposed by 35-4-81 would continue to apply until such description or premise was modified and that consumption on the licensed premises during the specific hours is prohibited.

Respectfully submitted,

Gordon Mydland
Attorney General