N.D. Cent. Code § 5-03-01.2 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-01.2
5-03-01.2. Brand registration - Penalty
Status: repealed

5-03-01.2. Brand registration - Penalty

Repealed by S.L. 2005, ch. 73, § 5.
N.D. Cent. Code § 5-02-11 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-11
5-02-11. Suspension or revocation of license - Appeal
Status: in_force

5-02-11. Suspension or revocation of license - Appeal

If after such hearing the attorney general or local governing body finds the violation charged

in the affidavit has been proved by the evidence, an order must be served on the licensee

revoking or suspending the licensee's license for a period of time. Such action may be appealed

to the district court by following the appeal procedure set forth in chapter 28-32, except that the

order revoking or suspending the license is inoperative while the appeal is pending.
N.D. Cent. Code § 5-04-05 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-05
5-04-05. Notice of intent to terminate
Status: in_force

5-04-05. Notice of intent to terminate

Except as otherwise provided in this section, a brewer shall provide a wholesaler with at

least ninety days prior written notice of any intent to amend, terminate, cancel, or not renew any

agreement. The notice must state all the reasons for the intended amendment, termination,

cancellation, or nonrenewal. The wholesaler has ninety days after receiving notice in which to

rectify any claimed deficiency. If the deficiency is rectified within ninety days of notice, the

proposed amendment, termination, cancellation, or nonrenewal is void. The notice provisions of

this section do not apply if the reason for the termination, cancellation, or nonrenewal is:

1. The wholesaler's bankruptcy or insolvency.

2. An assignment for the benefit of creditors or similar disposition of the business assets.

3. Revocation of the wholesaler's license.

4. Conviction or a plea of guilty or no contest to a charge of violating a law relating to the

business that materially affects the wholesaler's ability to remain in business.
N.D. Cent. Code § 5-04-14 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-14
5-04-14. Sale of brewer
Status: in_force

5-04-14. Sale of brewer

Except for good cause, as defined by section 5-04-04, the purchase of a brewer as defined

in section 5-04-01 shall obligate the purchaser to all terms and conditions of the agreement in

effect on the date of purchase. "Purchase", for the purposes of this chapter, includes the sale of

stock, sale of assets, merger, lease, transfer, or consolidation.
N.D. Cent. Code § 5-02-07.2 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-07.2
5-02-07.2. Sale of beer in kegs - Registration and marking required
Status: in_force

5-02-07.2. Sale of beer in kegs - Registration and marking required

1. Any retail alcoholic beverage licensee who sells beer in a container with a liquid

capacity greater than six gallons [22.71 liters] must place the licensee's state retail

alcoholic beverage license number on the container and also must mark the container

with a "registration" number or letters, or both, unique to that container. The paint or

ink used to mark the containers or other manner of marking the containers must be

approved by the attorney general.

2. Whenever a retail alcoholic beverage licensee sells beer in a container with a liquid

capacity greater than six gallons [22.71 liters], the licensee shall record the date of

sale and the name, address, and driver's license number or number of other official

state or military identification card of the person to whom the beer is sold, together with

the signature, and registration number, or letters of the container, or both. Such

records must be retained for a period of no less than six months and must be kept on

the licensed premises of the retail establishment where the sales are made.

3. Each retail alcoholic beverage licensee shall permit any law enforcement officer to

inspect the records required to be kept pursuant to this section during times the retail

establishment is normally open for business or at other reasonable times.

4. This section does not apply to the sale of beer in a container by a retail alcoholic

beverage licensee if the contents of the container are consumed on the licensed

premises where the sale occurred.
N.D. Cent. Code § 5-04-08 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-08
5-04-08. Judicial remedies
Status: in_force

5-04-08. Judicial remedies

If a brewer engages in conduct prohibited under this chapter, a wholesaler, with whom the

brewer has an agreement pursuant to this chapter, may maintain a suit against the brewer. The

venue of any legal action taken under this section, or pursuant to a dispute arising out of an

agreement or breach thereof, or over the provisions of an agreement, is a court, state or federal,

located in North Dakota, or where the wholesaler maintains its principal place of business in this

state. The court may grant equitable relief as is necessary to remedy the effects of conduct

which it finds to exist and which is prohibited under this chapter, including, but not limited to,

declaratory judgment and injunctive relief. The court may award actual damages and costs. If

the court finds the brewer has acted in bad faith in invoking amendment, termination,

cancellation, or nonrenewal under this chapter or has unreasonably withheld its consent to any

assignment, transfer, or sale of the wholesaler's agreement, the court may also award

reasonable attorney's fees.
N.D. Cent. Code § 5-03-09 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-09
5-03-09. Supplier license required - Filing requirements - Penalty
Status: in_force

5-03-09. Supplier license required - Filing requirements - Penalty

1. Before a supplier may engage in the sale or shipment of alcoholic beverages to a

licensed North Dakota wholesaler, that supplier must first procure a supplier license

from the state tax commissioner.

2. For any month in which a licensed supplier has made sales to a North Dakota

wholesaler, that supplier shall file a report with the state tax commissioner no later

than the last day of each calendar month covering alcoholic beverages sold or shipped

to a North Dakota wholesaler during the preceding calendar month. When the last day

of the calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the

first working day thereafter. The report must provide such detail and be in a format as

prescribed by the state tax commissioner. The state tax commissioner may require that

the report be submitted in an electronic format approved by the state tax

commissioner.

3. If a supplier fails to file the required report as required by this section, there is imposed

a penalty of twenty-five dollars per month for each calendar month or fraction of a

month during which the delinquency continues beginning with the month during which

the report was due. Any assessed penalty may be waived by the tax commissioner for

good cause upon request by the supplier.

4. A supplier in violation of this section or who furnishes information required by this

section that is false or misleading is guilty of a class A misdemeanor.

5. In addition, whenever the holder of a supplier's license fails to comply with any of the

provisions of this title or any rules or regulations prescribed by the state tax

commissioner and adopted under this title, the state tax commissioner, upon hearing

after giving ten days' notice of the time and place of the hearing to show cause why

the holder's license should not be revoked, may revoke the license. The state tax

commissioner also shall have the power to restore licenses after such revocation.

Whenever the holder of a license has had the license revoked for failure to comply

with the provisions of this title or any rules and regulations prescribed by the state tax

commissioner and adopted under this title, the state tax commissioner shall charge a

fee of one hundred dollars for the reissuance of the license.
N.D. Cent. Code § 5-04-18 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-18
5-04-18. Same brands - Assignment of brand extensions
Status: in_force

5-04-18. Same brands - Assignment of brand extensions

Different categories of products manufactured and marketed under a common identifying

trade name are the same brand. For example, "old faithful" includes "old faithful", "old faithful

light", "old faithful draft", "old faithful dry", and other products identified principally by the old

faithful name. Differences in packaging do not establish different brands. A brewer or importer

may assign a brand extension only to the wholesaler with an exclusive sales territory to the

brand that is the basis for the brand extension. This limitation does not apply to assignments of

brand extensions to wholesalers which were made by a brewer or importer before August 1,

1995. If, before August 1, 1995, a brewer or importer assigned a brand extension to a

wholesaler that is without exclusive sales territory to the brand that is the basis of the brand

extension, any additional brand extension must be assigned to the wholesaler who first had the

brand.
N.D. Cent. Code § 5-01-19.2 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-19.2
5-01-19.2. Manufacturing distillery - Satellite locations
Status: in_force

5-01-19.2. Manufacturing distillery - Satellite locations

1. The tax commissioner may issue a manufacturing distillery license to the owner or

operator of a distillery located within this state which uses a majority of North Dakota

farm products to manufacture and sell spirits produced on the premises. A

manufacturing distillery license may be issued and renewed for an annual fee of

one hundred dollars. This fee is in lieu of all other license fees required by this title.

The tax commissioner may not issue the manufacturing distillery license until the

applicant has established the applicant has applied for and obtained the necessary

federal registrations and permits, as required under the Internal Revenue Code of

1986 [26 U.S.C. 5001 et seq.] and the federal Alcohol Administration Act [27 U.S.C.

203], for the operation of a distilled spirits plant.

2. 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 forty thousand gallons [151416 liters] in a

calendar year.

a. Direct sales within this state are limited to two and thirty-eight hundredths gallons

[9 liters] or less per month per person for personal use and not for resale. The

packaging must conform with the labeling requirements in section 5-01-16. A

licensee may dispense free samples of the spirits offered for sale. Subject to local

ordinance, sales at off sale may be made on Sundays between twelve noon and

twelve midnight.

b. A manufacturing distillery may hold events inside its premises and at its satellite

location. The tax commissioner may issue event permits for not more than forty

event days per calendar year to a manufacturing distillery to allow the

manufacturing distillery, subject to local ordinance, to give free samples of its

product and to sell its product by the glass or in closed containers at events on

the premises, off the premises, and at its satellite location.

c. A manufacturing distillery may not engage in any wholesaling activities. Except as

provided by section 5-01-19.1, all sales and deliveries of spirits to any other retail

licensed premises in this state may be made only through a licensed North

Dakota liquor wholesaler. However, a manufacturing distillery may sell distilled

spirits to a domestic winery if the distilled spirits were produced from products

provided to the manufacturing distillery by the domestic winery.

3. a. As used in this subsection, "samples" means the serving of free tastings of a

manufacturing distillery's products not to exceed six ounces [0.18 liter] of spirits

per individual per day.

b. A manufacturing distillery may operate one satellite location in addition to its

licensed premises for the purpose of providing samples and on sale or off sale

retail sales.

(1) The spirits sampled or sold at the satellite location must be produced by the

manufacturing distillery.

(2) A manufacturing distillery may not produce any spirits at the satellite

location.

(3) An event permit issued to a manufacturing distillery in accordance with

subsection 2 for an indoor or outdoor event held at its satellite location does

not count towards the forty event days per calendar year allowed under

subsection 2. The manufacturing distillery may offer free samples of its

spirits and may sell its spirits by the glass or in closed containers at the

event held at the satellite location.

(4) The satellite location must be owned or leased by the manufacturing

distillery licensee.

(5) A manufacturing distillery may not engage in wholesaling activities at its

satellite location.

c. A manufacturing distillery shall obtain a satellite location license from the tax

commissioner before operating a satellite location. The tax commissioner may

issue and renew a satellite location license for an annual fee of one hundred

dollars. This fee is in addition to all other license fees required by this title.

d. A manufacturing distillery is liable for any violation of alcohol or licensing

requirements committed on the premises of its satellite location.

4. A person may not hold a manufacturing distillery license and a domestic distillery

license.

5. A manufacturing distillery may obtain a manufacturing distillery license and a retailer

license allowing the on-premises sale of alcoholic beverages at a restaurant owned by

the licensee and located at the manufacturing distillery's satellite location.

6. A manufacturing distillery is subject to section 5-03-06 and shall report and pay

annually to the tax commissioner the wholesaler taxes due on all spirits sold by the

licensee at retail or to a retail licensee, including all spirits shipped directly to

consumers as set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax

reports are due January fifteenth of the year following the year sales were made. The

report must provide the detail and be in a format as prescribed by the tax

commissioner. The tax commissioner may require the report to be submitted in an

electronic format approved by the tax commissioner.
N.D. Cent. Code § 5-04-07 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-07
5-04-07. Reasonable compensation for wrongful cancellation
Status: in_force

5-04-07. Reasonable compensation for wrongful cancellation

1. Any brewer which amends, cancels, terminates, or refuses to renew any beer

agreement, or causes a wholesaler to resign from an agreement, unless for "good

cause" as defined by section 5-04-04, or which unreasonably withholds consent to any

assignment, transfer, or sale of a wholesaler's business, shall pay the wholesaler

reasonable compensation for the value of the wholesaler's business with relationship

to the terminated brand or brands. The value of the wholesaler's business includes,

but is not limited to, the fair market value of the wholesaler's business with respect to

the terminated brand or brands, including the value of any ancillary business of the

wholesaler and the goodwill of the business or ancillary business. The value of the

wholesaler's business may not exceed the wholesaler's actual damages.

2. If the brewer and the beer wholesaler are unable to mutually agree on reasonable

compensation for the value of the wholesaler's business, the matter must be submitted

to a neutral arbitrator to be selected by the parties or, if they cannot agree, by the

presiding district judge of the district in which the wholesaler's main office is located.

All arbitration costs shall be divided equally between the wholesaler and the brewer.

The award of the neutral arbitrator shall be final and binding on the parties.
N.D. Cent. Code § 5-03-07 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-07
5-03-07. Imposition of tax - Rate
Status: in_force

5-03-07. Imposition of tax - Rate

A tax is hereby imposed upon all alcoholic beverage wholesalers, domestic wineries,

domestic distilleries, microbrew pubs, brewer taproom licensees, and direct shippers for the

privilege of doing business in this state. The amount of this tax shall be determined by the

gallonage according to the following schedule:

Beer in bulk containers - per wine gallon $.08 (.021 per liter)

Beer in bottles and cans - per wine gallon .16 (.042 per liter)

Wine, including sparkling wine, containing less than 17% alcohol by .50 (.132 per liter)

volume - per wine gallon

Wine containing 17%-24% alcohol by volume - per wine gallon .60 (.159 per liter)

Distilled spirits - per wine gallon 2.50 (.66 per liter)

Alcohol - per wine gallon 4.05 (1.07 per liter)
N.D. Cent. Code § 5-04-17 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-17
5-04-17. Chapter to apply when in conflict with title 51
Status: in_force

5-04-17. Chapter to apply when in conflict with title 51

The provisions of this chapter apply in any instances when the provisions of this chapter

conflict with the unfair practice provisions of title 51.
N.D. Cent. Code § 5-01-16 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-16
5-01-16. Direct sale from out-of-state person to consumer - Penalty
Status: in_force

5-01-16. Direct sale from out-of-state person to consumer - Penalty

1. A person in the business of selling alcoholic beverages may not knowingly or

intentionally ship, or cause to be shipped, any alcoholic beverage from an out-of-state

location directly to a person in this state who is not a licensed wholesaler in this state.

2. A person in the business of transporting goods may not knowingly or intentionally

transport, or cause to be transported, any alcoholic beverage directly to a person in

this state who is not a licensed wholesaler in this state.

3. For a first violation of subsection 1 or 2, the tax commissioner shall notify, by certified

mail, the person and order that person to cease and desist any shipment of alcoholic

beverages in violation of subsection 1 or 2 and shall assess a civil penalty of one

hundred dollars for each illegal shipment. For a second violation of subsection 1 or 2,

the tax commissioner shall assess a civil penalty of two hundred dollars for each illegal

shipment. For any subsequent violation of subsection 1 or 2, the tax commissioner

shall assess a civil penalty of five hundred dollars for each illegal shipment.

4. The alcoholic beverage transported in violation of this section and the vehicle used in

violation of this section are forfeitable property under chapter 29-31.1.

5. This section does not apply to a transaction by a person holding a valid manufacturer's

or retailer's license issued by the state of its domicile and if the person obtains a direct

shipping license from and on a form prescribed by the tax commissioner before

making a shipment. The annual fee for a direct shipping license is fifty dollars.

Licensed direct shippers may sell and ship to an individual twenty-one years of age or

older 7.13 gallons [27 liters] or less of wine, two hundred eighty-eight fluid ounces

[8517.18 milliliters] or less of beer, or 2.38 gallons [9 liters] or less of any other

alcoholic beverages per month for personal use and not for resale.

a. A direct shipper shall ship all containers of alcoholic beverages shipped directly to

a resident of this state using a licensed alcohol carrier and may cause the

alcoholic beverages to be shipped by a licensed logistics company.

b. A direct shipper shall label all containers of alcoholic beverages shipped directly

to an individual in this state with conspicuous words "SIGNATURE OF PERSON

AGE 21 OR OLDER REQUIRED FOR DELIVERY".

c. A licensed direct shipper shall report and pay the wholesaler excise tax and

retailer sales taxes to the tax commissioner on all alcoholic beverages sold to

residents in this state at the rates set forth in sections 5-03-07 and 57-39.6-02.

The excise tax reports are due January fifteenth of the year following the year

sales and shipments were made. When the fifteenth day of January falls on a

Saturday, Sunday, or legal holiday, the due date is the first working day thereafter.

The report must provide such detail and be in format as prescribed by the tax

commissioner and include the identification of any logistics or fulfillment houses

the licensee used for such shipments. The sales and use tax reports are due as

set forth in chapter 57-39.6. The sales and use tax reports must be in a format as

prescribed by the tax commissioner. The tax commissioner may require that the

report be submitted in an electronic format approved by the tax commissioner.

d. All alcoholic beverages that are shipped directly to a resident of this state must be

properly registered with the federal alcohol and tobacco tax and trade bureau and

must be owned by the licensed direct shipper.

6. A licensed alcohol carrier may ship alcoholic beverages into, out of, or within this state.

A licensed alcohol carrier shall pay an annual fee of one hundred dollars and obtain a

license on an application form provided by the tax commissioner and subject to any

requirements determined by the tax commissioner.

a. A licensed alcohol carrier shall ensure all containers of alcoholic beverages

shipped directly to an individual in this state are labeled with conspicuous words

"SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY". A

licensed alcohol carrier may not deliver alcoholic beverages to a person under

twenty-one years of age, or to a person who is or appears to be in an intoxicated

state or condition. A licensed alcohol carrier shall obtain valid proof of identity and

age before delivery and shall obtain the signature of an adult as a condition of

delivery.

b. A licensed alcohol carrier shall maintain records of alcoholic beverages shipped

into, out of, or within this state which include the name of the licensed direct

shipper, the name of any licensed logistics shipper, the date of each shipment,

the recipient's name and address, and an electronic or paper form of signature

from the recipient of the alcoholic beverages. A licensed alcohol carrier shall

submit a report to the tax commissioner on a monthly basis in the form and

format prescribed by the tax commissioner. The report is due on the last day of

the month following the month of shipment. If the due date falls on a Saturday,

Sunday, or legal holiday, the due date is the first working day after the due date.

The tax commissioner may require that the report be submitted in an electronic

format approved by the tax commissioner.

c. If the tax commissioner has provided notice to a licensed alcohol carrier that a

direct shipper is not licensed, the licensed alcohol carrier must notify the direct

shipper that the direct shipper must obtain a direct shipper permit before

tendering packages to the licensed alcohol carrier for delivery. Any assessed

penalty may be waived by the tax commissioner for good cause upon request by

the licensed alcohol carrier.

7. Licensed logistics shippers must obtain a logistics shipping license from the tax

commissioner and shall pay an annual fee of one hundred dollars before making or

causing a shipment.

a. A licensed logistics shipper shall ensure all containers of alcoholic beverages

shipped directly to an individual in this state are labeled with conspicuous words

"SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY".

b. All containers of alcoholic beverage shipped directly to a resident of this state

must be shipped using a licensed alcohol carrier as provided in subsection 6.

c. A licensed logistics shipper shall maintain records of alcoholic beverages shipped

which include the license number and name of the licensed direct shipper, the

license number and name of the licensed common carrier, the date of each

shipment, the quantity and kind of alcohol shipped, and the recipient's name and

address for each shipment. A licensed logistics shipper shall submit a report to

the tax commissioner on a monthly basis in the form and format prescribed by the

tax commissioner. The report is due on the last day of the month following the

month of shipment. If the due date falls on a Saturday, Sunday, or legal holiday,

the due date is the first working day after the due date. The tax commissioner

may require that the report be submitted in an electronic format approved by the

tax commissioner.

d. Licensed logistics shippers may not ship alcoholic beverages from unlicensed

direct shippers or through unlicensed carriers. For a violation, a licensed logistics

shipper is subject to the penalties in subsection 3.

8. The tax commissioner may initiate and maintain an action in a court of competent

jurisdiction to enjoin a violation of this section and may request award of all costs and

attorney's fees incurred by the state incidental to that action. Upon determination by

the tax commissioner that an illegal sale or shipment of alcoholic beverages has been

made to a consumer in this state by any person, the tax commissioner may notify both

the alcohol and tobacco tax and trade bureau of the United States department of the

treasury and the licensing authority for the state in which the person is domiciled that a

state law pertaining to the regulation of alcoholic beverages has been violated and

may request those agencies to take appropriate action.
N.D. Cent. Code § 5-01-17 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-17
5-01-17. Domestic winery license
Status: in_force

5-01-17. Domestic winery license

1. The tax commissioner may issue a domestic winery license to the owner or operator of

a winery located within this state to produce wine. A domestic winery may purchase, at

wholesale or retail, brandy for use of onpremises fortification. A domestic winery

license may be issued and renewed for an annual fee of one hundred dollars, which is

in lieu of all other license fees required by this title.

2. A domestic winery may sell wine produced by that winery at on sale or off sale, in retail

lots, and not for resale, and may sell or direct ship its wine to persons inside or outside

of 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 thousand gallons [94635 liters] in a

calendar year; glassware; wine literature and accessories; and cheese, cheese

spreads, and other snack food items. A licensee may dispense free samples of the

wines offered for sale. Subject to local ordinance, sales at on sale and off sale may be

made on Sundays between eight a.m. and twelve midnight. The tax commissioner may

issue special events permits for not more than forty events per calendar year to a

domestic winery allowing the winery, subject to local ordinance, to give free samples of

its wine and to sell its wine by the glass or in closed containers, at off-premises events.

A domestic winery may not engage in any wholesaling activities. All sales and

deliveries of wines to any other retail licensed premises in this state may be made only

through a licensed North Dakota liquor wholesaler. For any month in which a domestic

winery has made sales to a North Dakota wholesaler, that domestic winery shall file a

report with the tax commissioner no later than the last day of each calendar month

reporting sales made during the preceding calendar month. When the last day of the

calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the first

working day thereafter.

3. A domestic winery may obtain a domestic winery license and a retailer license allowing

the onpremises sales of alcoholic beverages at a restaurant owned by the licensee

and located on property contiguous to the winery.

4. A domestic winery may purchase wine in bulk from within and outside the state,

excluding label approved containers and not to exceed four thousand gallons [15142

liters] per calendar year.

5. A domestic winery is subject to section 5-03-06 and shall report and pay annually to

the tax commissioner the wholesaler taxes due on all wines sold by the licensee at

retail, including all wines shipped directly to consumers as set forth in sections 5-03-07

and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the

year following the year sales were made. When the fifteenth of January falls on a

Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The

report must provide such detail and be in a format as prescribed by the tax

commissioner. The tax commissioner may require that the report be submitted in an

electronic format approved by the tax commissioner.
N.D. Cent. Code § 5-01-08.1 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-08.1
5-01-08.1. Misrepresentation of age - Penalty - Licensee may keep book
Status: in_force

5-01-08.1. Misrepresentation of age - Penalty - Licensee may keep book

Any person who misrepresents or misstates that person's age or the age of any other

person or who misrepresents that person's age through presentation of any document

purporting to show that person to be of legal age to purchase alcoholic beverages is guilty of a

class B misdemeanor. Any licensee may keep a book and may require anyone who has shown

documentary proof of that person's age, which substantiates that person's age to allow the

purchase of alcoholic beverages, to sign the book if the age of that person is in question. The

book must show the date of the purchase, the identification used in making the purchase and

the appropriate numbers of such identification, the address of the purchaser, and the

purchaser's signature.
N.D. Cent. Code § 5-02-13 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-13
5-02-13. Removal of wine from restaurant
Status: in_force

5-02-13. Removal of wine from restaurant

If a full bottle of wine has been opened and the contents partially consumed, a retail

alcoholic beverage licensee whose gross sales of food are at least thirty percent of the gross

sales of alcoholic beverages consumed on the premises may permit an individual purchasing

the bottle to remove the bottle when leaving the licensed premises if the licensee reseals the

bottle with a seal that must be made conspicuously inoperative to reopen the bottle, and places

a receipt of sale with the bottle. The removal of the bottle under these conditions is not an off

sale of wine and is permitted without an additional license.
N.D. Cent. Code § 5-01-05.3 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-05.3
5-01-05.3. Disturbing the peace - Disorderly conduct - Penalty
Status: repealed

5-01-05.3. Disturbing the peace - Disorderly conduct - Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 5-01-11 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-11
5-01-11. Unfair competition - Penalty
Status: in_force

5-01-11. Unfair competition - Penalty

A manufacturer may not have any financial interest in any wholesale alcoholic beverage

business. A manufacturer or wholesaler may not have any financial interest in any retail

alcoholic beverage establishment and may not furnish any such retailer with anything of value. A

retailer may not have any financial interest in any manufacturer, supplier, or wholesaler. A

wholesaler may:

1. Extend normal commercial credits to retailers for industry products sold to them. The

state tax commissioner may determine by rule the definition of "normal commercial

credits" for each segment of the industry.

2. Furnish retailers with beer containers and equipment for dispensing of tap beer if the

expense to the wholesaler associated with the furnishing of containers, equipment,

and tap or coil cleaning service does not exceed one hundred fifty dollars per tap per

calendar year.

3. Furnish outside signs to retailers if the sign cost does not exceed four hundred dollars

exclusive of costs of erection and repair.

4. Furnish miscellaneous materials to retailers not to exceed one hundred dollars per

year. "Miscellaneous materials" not subject to this limitation include any indoor

point-of-sale items for retail placement. Point-of-sale items include back bar signs,

pool table lights, neon window signs, and items of a similar nature. The point-of-sale

items must be limited to five hundred dollars per retail account from the wholesaler for

each of the wholesaler's brewers or suppliers.

Any wholesaler, retailer, or manufacturer violating this section, or any rule adopted to implement

this section, and any retailer receiving benefits thereby, is guilty of a class A misdemeanor. A

microbrew pub is exempt from the provisions of this section to the extent that this section

restricts the co-ownership of a manufacturer's license and a retail license for the purpose of a

microbrew pub.
N.D. Cent. Code § 5-01-19.1 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-19.1
5-01-19.1. Direct sale by domestic distilleries
Status: in_force

5-01-19.1. Direct sale by domestic distilleries

1. A domestic distillery that produces no more than twelve thousand proof gallons [45425

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 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 [3.79 liters] of liquid at sixty

degrees Fahrenheit [15.5 degrees Celsius] which contains fifty percent ethyl alcohol by

volume or its equivalent.
N.D. Cent. Code § 5-03-06 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-06
5-03-06. Examination by tax commissioner - Penalty for improper returns
Status: in_force

5-03-06. Examination by tax commissioner - Penalty for improper returns

The state tax commissioner may at any reasonable time make an examination of the books

and premises of any retailer, wholesaler, manufacturer, domestic winery, domestic distillery,

microbrew pub, direct shipper, licensed alcohol carrier, licensed logistics shipper, or other

person to determine if the person has fully complied with all statutes and rules pertaining to the

person's business. If any manufacturer, wholesaler, domestic winery, domestic distillery,

microbrew pub, or direct shipper liable for any taxes imposed by this chapter fails to pay such

tax on the date payment is due, there must be added to the tax a penalty of five percent of the

total amount of the tax or five dollars, whichever is greater, plus interest of one percent of the

tax per month or fraction of a month of delay, except the first month after the return or tax

became due. Any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub,

direct shipper, licensed alcohol carrier, or licensed logistics shipper failing to furnish reports

when required must be assessed a penalty of one hundred dollars for each day such reports are

delinquent. The state tax commissioner may forgive all or part of any penalty for good cause

shown. The tax commissioner shall give notice of the determination to the person liable for tax.

If the determination of tax due relates to an incorrect or insufficient return filed by a taxpayer,

notice of the determination must be given not later than three years after the last day on which

the return was due or three years after the return was filed, whichever is later. If it is determined

upon audit by the tax commissioner that the tax due was twenty-five percent or more above the

amount reported on the return, notice of determination of tax due must be given not later than

six years after the last day on which the return was due or six years after the return was filed,

whichever is later. Notice of determination of tax due for any reporting period for which a

taxpayer failed to file a return must be given not later than six years after the due date of the

return, but if fraudulent information is given in a return or the failure to file a return is due to the

fraudulent intent or willful attempt of the taxpayer in any manner to evade the tax, the time

limitation provided in this section for giving notice of the determination of tax due does not apply.

If any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, or direct

shipper files a fraudulent return, there must be added to the tax an amount equal to the tax

evaded or attempted to be evaded and such manufacturer, wholesaler, domestic winery,

domestic distillery, microbrew pub, or direct shipper is also guilty of a class C felony. All such

taxes and civil penalties may be collected by assessment or distraint, and no court of this state

may enjoin the collection of any such tax or civil penalty. No wholesaler may purchase alcoholic

beverages from a manufacturer after notice from the tax commissioner that such manufacturer

has failed to file required reports with the tax commissioner's office. Any manufacturer,

wholesaler, domestic winery, domestic distillery, microbrew pub, direct shipper, licensed alcohol

carrier, or licensed logistics shipper may have its license suspended or revoked for violation of

any of the provisions of this title after a hearing conducted similar to that prescribed by this law.
N.D. Cent. Code § 5-01-12 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-12
5-01-12. Duty to enforce
Status: repealed

5-01-12. Duty to enforce

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 5-01-14 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-14
5-01-14. Microbrew pubs - Licensing - Taxes
Status: in_force

5-01-14. Microbrew pubs - Licensing - Taxes

1. A microbrew pub shall obtain a brewer license and a retailer license as required under

this title. A microbrew pub may manufacture on the licensed premises, store, transport,

sell to wholesale malt beverage licensees, and export no more than ten thousand

barrels of malt beverages annually; sell malt beverages manufactured on the licensed

premises; sell alcoholic beverages regardless of source to consumers for consumption

on the microbrew pub's licensed premises; and sell or direct ship malt beverages

manufactured on the licensed premises to an individual in this state for consumption in

accordance with section 5-01-16. A microbrew pub may not engage in any wholesaling

activities. Except as provided in subsection 3, all sales and delivery of malt beverages

to any other retail licensed premises may be made only through a wholesale malt

beverage licensee. Beer manufactured on the licensed premises and sold by a

microbrew pub directly to the consumer for consumption on or off the premises is

subject to the taxes imposed pursuant to section 5-03-07, in addition to any other

taxes imposed on brewers and retailers. A microbrew pub is required to file a monthly

sales report with the tax commissioner by the fifteenth day of the month following the

month in which the sales are made. The report must be prepared and submitted in a

form and manner as prescribed by the tax commissioner. A microbrew pub is not

precluded from retailing beer it purchases from a wholesaler. Complimentary samples

of beer may not be in an amount exceeding sixteen ounces [.47 liter] per patron. A

licensee may sell beer to any person for off-premises consumption if sold in a

brewery-sealed container and the total amount sold to each person does not exceed

five and sixteen-hundredths gallons [19.53 liters] per day. This section may not be

superseded under chapters 11-09.1 and 40-05.1.

2. The tax commissioner may issue a special event permit for not more than forty events

per calendar year to a microbrew licensee allowing the licensee, subject to local

ordinance, to give free samples of beer manufactured by the licensee, sell beer

manufactured by the glass or in closed containers, or dispense beer manufactured by

the licensee, at off-premises events.

3. A microbrew pub may transfer beer in bulk, as defined by section 5-01-01,

manufactured by the microbrew pub to an affiliated microbrew pub licensee. For

purposes of this subsection, "affiliated microbrew pub licensee" means a microbrew

pub of which at least an eighty-five percent interest is owned by the microbrew pub

measured annually and:

a. The microbrew pub does not own more than three affiliated microbrew pub

licensees;

b. The microbrew pub licensee receiving the beer in bulk has produced no less than

five thousand gallons [18927.06 liters] of beer on the premises in the preceding

calendar year. For the purpose of calculating the production requirements, the

production must be prorated based on the number of days beer was produced;

c. The beer in bulk transferred in any calendar year constitutes no more than fifty

percent of the beer being produced by the microbrew pub licensee receiving the

beer; and

d. For purposes of determining whether the ten thousand barrel production limit

under subsection 1 is being exceeded, the beer being transferred is credited to

the microbrew pub that manufactured the beer.

4. A contractee brewer may contract with a contractor brewer to produce beer for the

contractee brewer to the extent allowed by federal law under the following conditions:

a. The contractee brewer and the contractor brewer must be licensed and owned

separately;

b. The contractee brewer must have a proper license issued under this section and

maintain a physical brewing presence in the state;

c. Beer brewed for a contractee brewer counts toward the contractee brewer's

annual barrels produced, and the beer does not count toward the contractor

brewer's annual barrels produced;

d. The contractee brewer retains ownership of the product; and

e. Each brewer is separately and distinctly responsible for compliance with this

chapter.
N.D. Cent. Code § 5-01-08 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-08
5-01-08. Individuals under twenty-one years of age prohibited from using alcoholic beverages or entering licensed premises - Penalty
Status: in_force

5-01-08. Individuals under twenty-one years of age prohibited from using alcoholic

beverages or entering licensed premises - Penalty.

1. Except as permitted in this section and section 5-02-06, an individual under

twenty-one years of age may not manufacture or attempt to manufacture, purchase or

attempt to purchase, consume or have recently consumed other than during a

religious service, be under the influence of, be in possession of, or furnish money to

any individual for the purchase of an alcoholic beverage.

2. An individual under twenty-one years of age may not enter any licensed premises

where alcoholic beverages are being sold or displayed, except:

a. A restaurant if accompanied by a parent or legal guardian;

b. In accordance with section 5-02-06;

c. If the individual is an independent contractor or the independent contractor's

employee engaged in contract work and is not engaged in selling, dispensing,

delivering, or consuming alcoholic beverages;

d. If the individual is a law enforcement officer or other public official who enters the

premises in the performance of official duty; or

e. If the individual enters the premises for training, education, or research purposes

under the supervision of an individual twenty-one or more years of age with prior

notification of the local licensing authority.

3. An individual who violates this section is guilty of an infraction. For a violation of

subsection 1 or 2, the court also may sentence a violator to an evidence-based alcohol

and drug education program operated under rules adopted by the department of

health and human services under section 50-06-44. For a second or subsequent

violation of subsection 1 or 2, the court also shall sentence a violator to an

evidence-based alcohol and drug education program operated under rules adopted by

the department of health and human services under section 50-06-44.

4. The court, under this section, may refer the individual to an outpatient addiction facility

licensed by the department of health and human services for evaluation and

appropriate counseling or treatment.

5. The offense of consumption occurs in the county of consumption or the county where

the offender is arrested.

6. An individual under twenty-one years of age is immune from criminal prosecution

under this section if that individual contacted law enforcement or emergency medical

services and reported that another individual under twenty-one years of age was in

need of medical assistance due to alcohol consumption, provided assistance to the

individual in need of medical assistance until assistance arrived and remained on the

scene, or was the individual in need of medical assistance and cooperated with

medical assistance and law enforcement personnel on the scene. The maximum

number of individuals who may be immune for any one occurrence is five individuals.
N.D. Cent. Code § 5-04-11 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-11
5-04-11. Wholesaler management
Status: in_force

5-04-11. Wholesaler management

No brewer may require or prohibit any change in management or personnel of any

wholesaler unless the current or potential management or personnel fails to meet essential,

reasonable, and nondiscriminatory requirements.
N.D. Cent. Code § 5-02-06 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-06
5-02-06. Prohibitions for individuals under twenty-one years of age - Penalty - Exceptions
Status: in_force

5-02-06. Prohibitions for individuals under twenty-one years of age - Penalty -

Exceptions.

1. Except as permitted in this section, a licensee who dispenses alcoholic beverages to

an individual under twenty-one years of age, or who permits an individual under

twenty-one years of age to remain on the licensed premises while alcoholic beverages

are being sold or displayed, is guilty of a class A misdemeanor, subject to sections

5-01-08, 5-01-08.1, and 5-01-08.2.

2. An individual under twenty-one years of age may enter and remain on a licensed

premises while alcohol is being sold or displayed, at the discretion of the owner of the

licensed premises, if:

a. The individual is accompanied by a parent or guardian who is twenty-one years of

age or older. For purposes of this section, "guardian" means an individual who

has the legal responsibility for the health and well-being of the individual under

twenty-one years of age;

b. The individual is on the premises to consume a meal or in an emergency

situation;

c. The premises serves at a tabletop, food that is prepared in a kitchen with at least

an indoor grill;

d. The individual is not on the licensed premises after ten p.m.; and

e. The owner of the licensed premises receives permission of the local licensing

authority for individuals to be on the premises as allowed under this section and

the licensed premises is located in a city with a population of one thousand five

hundred or fewer people, or the licensed premises is not located in a city.

3. a. At the discretion of the owner of the licensed premises, an individual under

twenty-one years of age may be permitted to enter and remain in a restaurant

where alcoholic beverages are being sold and in the area of the restaurant

designated for the opening or mixing of alcoholic beverages if the individual:

(1) Is accompanied by a parent or guardian;

(2) Is not seated at or within three feet [0.91 meters] of the bar counter; and

(3) Does not enter or remain in the designated area after ten p.m.

b. At the discretion of the owner of a brewer taproom licensed under section

5-01-21, an individual under twenty-one years of age may be permitted to enter

and remain in the brewer taproom if:

(1) The brewer taproom is connected to or contracts with an establishment,

including a mobile food unit, at which food is prepared and available for

purchase to be consumed in the brewer taproom and which is connected to

or located at the brewer taproom and receives the majority of its gross sales

from the sale of food; and

(2) The individual:

(a) Is accompanied by the individual's parent or guardian;

(b) Is not seated at or within three feet [0.91 meters] of the bar counter;

and

(c) Does not enter or remain in the brewer taproom after ten p.m. or

during any time that food is not available for consumption as provided

in paragraph 1.

c. An individual under twenty-one years of age may be permitted to remain in a

restaurant where alcoholic beverages are being sold if the restaurant is separated

from the designated area in which alcoholic beverages are opened or mixed and

gross sales of food are at least equal to gross sales of alcoholic beverages which

are consumed in the dining area, or if the individual is employed by the restaurant

as a food waiter, food waitress, busboy, or busgirl under the direct supervision of

an individual twenty-one years of age or older and is not engaged in the sale,

dispensing, delivery, or consumption of alcoholic beverages.

d. For purposes of this subsection, "mobile food unit" means a vehicle-mounted

food service establishment designed to be readily movable from which a vendor

prepares, cooks, sells, or serves food or beverages for immediate consumption.

4. An individual under twenty-one years of age may enter and remain on the licensed

premises if the individual is an independent contractor or the independent contractor's

employee engaged in contract work and is not engaged in selling, dispensing,

delivering, or consuming alcoholic beverages; if the individual is a law enforcement

officer or other public official who enters the premises in the performance of official

duty; or if the individual enters the licensed premises for training, education, or

research purposes under the supervision of an individual twenty-one or more years of

age with prior notification of the local licensing authority.

5. An individual under twenty-one years of age may attend an event where alcoholic

beverages are sold in accordance with the conditions of an event permit issued

pursuant to section 5-02-01.1.

6. A restaurant may employ an individual who is eighteen years of age or older but under

twenty-one years of age as provided in subsection 3 to serve and collect money for

alcoholic beverages, if the individual is under the direct supervision of an individual

twenty-one or more years of age, but may not be engaged in mixing, dispensing, or

consuming alcoholic beverages. Any establishment that sells alcoholic beverages may

employ an individual from eighteen to twenty-one years of age to work on the

premises as a musician, disc jockey, or entertainer, or to perform duties directly related

to working as a musician, disc jockey, or entertainer if the individual is under the direct

supervision of an individual twenty-one or more years of age.

7. For purposes of this section, an individual is not twenty-one years of age until

eight a.m. on that individual's twenty-first birthday.

8. If an individual is convicted of this section, the court shall consider the following in

mitigation:

a. After consuming the alcohol, the underage individual was in need of medical

assistance as a result of consuming alcohol; and

b. Within twelve hours after the underage individual consumed the alcohol, the

defendant contacted law enforcement or emergency medical personnel to report

that the underage individual was in need of medical assistance as a result of

consuming alcohol.
N.D. Cent. Code § 5-04-15 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-15
5-04-15. Application to agreements
Status: in_force

5-04-15. Application to agreements

The provisions of this chapter cover agreements in existence on July 1, 1981, as well as

agreements entered into after July 1, 1981.
N.D. Cent. Code § 5-04-01 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-01
5-04-01. Definitions
Status: in_force

5-04-01. Definitions

As used in this chapter, unless the context otherwise requires:

1. "Agreement" means one or more of the following:

a. A commercial relationship between a licensed beer wholesaler and a licensed

brewer of a definite or indefinite duration which is not required to be evidenced in

writing.

b. A relationship whereby the beer wholesaler is granted the right to offer and sell a

brand or brands of beer offered by a brewer.

c. A relationship whereby the beer wholesaler, as an independent business,

constitutes a component of a brewer's distribution system.

d. A relationship whereby the beer wholesaler's business is substantially associated

with a brewer's brand or brands, designating the brewer.

e. A relationship whereby the beer wholesaler's business is substantially reliant on a

brewer for the continued supply of beer.

f. A written or oral arrangement for a definite or indefinite period whereby a brewer

grants a license to a beer wholesaler to use a brand, trade name, trademark, or

service mark, and in which there is a community of interest in the marketing of

goods or services at wholesale or retail.

2. "Ancillary business" means a business owned by a wholesaler, a stockholder of a

wholesaler, or a partner of a wholesaler, the primary business of which is directly

related to the transporting, storing, or marketing of the brewer's products with whom

the wholesaler has an agreement.

3. "Beer wholesaler" or "wholesaler" means any licensee, as outlined in section 5-03-01,

importing or causing to be imported into this state or purchasing or causing to be

purchased within this state, any beer for sale or resale to retailers or wholesalers

licensed pursuant to chapter 5-02 or 5-03, without regard to whether the business of

the person is conducted under the terms of an agreement with a licensed brewer.

4. "Brand" means any word, name, group of letters, symbol, or combination thereof, that

is adopted and used by a brewer or importer to identify a specific beer product, and to

distinguish that beer product from another beer product.

5. "Brand extension" is any brand that incorporates all or a substantial part of the unique

features of a pre-existing brand of the same brewer or importer and which relies to a

significant extent on the goodwill associated with that pre-existing brand.

6. "Brewer" means every licensed brewer or importer of beer located within or without

this state who enters into an agreement with any beer wholesaler licensed to do

business in this state.

7. "Person" means a natural person, corporation, limited liability company, partnership,

trust, agency, or other entity as well as the individual officers, directors, or other

persons in active control of the activities of each such entity. "Person" also includes

heirs, assigns, personal representatives, conservators, and guardians.

8. "Territory" or "sales territory" means the area of primary sales responsibility designated

by any agreement between any beer wholesaler and brewer for the brand or brands of

any brewer.
N.D. Cent. Code § 5-02-08 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-08
5-02-08. Disorderly conduct prohibited - Penalty
Status: repealed

5-02-08. Disorderly conduct prohibited - Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 5-01-10 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-10
5-01-10. Bottle clubs prohibited - Penalty
Status: in_force

5-01-10. Bottle clubs prohibited - Penalty

Any person operating an establishment whereby persons are allowed to bring their own

alcoholic beverages on the premises where the proprietor sells soft drinks, mix, ice, or charges

for bringing such beverages on the premises is guilty of a class B misdemeanor.
N.D. Cent. Code § 5-02-05 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-05
5-02-05. Dispensing prohibited on certain days - Penalty
Status: in_force

5-02-05. Dispensing prohibited on certain days - Penalty

A person may not dispense or permit the consumption of alcoholic beverages on a licensed

premises between two a.m. and eight a.m., on Christmas Day, or after six p.m. on Christmas

Eve. In addition, a person may not provide off sale after two a.m. on Thanksgiving Day or

between two a.m. and eight a.m. on Sundays. A person that violates this section is guilty of a

class A misdemeanor.
N.D. Cent. Code § 5-02-09 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-09
5-02-09. Local regulations
Status: in_force

5-02-09. Local regulations

The local governing body by ordinance or resolution may regulate or restrict the operation of

licensees, including among other things determining the number of licenses to be granted,

establishing health and safety standards for licensed premises, setting of hours, regulation of

open door policies by fraternal organizations or private clubs, and regulation of dancing or

various forms of entertainment on the premises.
N.D. Cent. Code § 5-01-01 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-01
5-01-01. Definitions
Status: in_force

5-01-01. Definitions

In this title:

1. "Alcohol" means neutral spirits distilled at or above one hundred ninety degrees proof,

whether or not such product is subsequently reduced, for nonindustrial use.

2. "Alcoholic beverages" means any liquid suitable for drinking by human beings, which

contains one-half of one percent or more of alcohol by volume.

3. "Beer" means any malt beverage containing one-half of one percent or more of alcohol

by volume and includes an alcoholic beverage made by the fermentation of malt

substitutes, including rice, grain of any kind, glucose, sugar, or molasses, which has

not undergone distillation.

4. "Bottle or can" means any container, regardless of the material from which made,

having a capacity less than a bulk container for use for the sale of malt beverages at

retail.

5. "Direct shipper" means a person that is licensed by the commissioner and ships or

causes to be shipped alcoholic beverages directly into this state to a consumer for the

consumer's personal use and not for resale.

6. "Distilled spirits" means any alcoholic beverage that is not beer, wine, sparkling wine,

or alcohol.

7. "Domestic distillery" means a distillery that produces twenty-five thousand gallons

[94635 liters] or fewer of distilled spirits per year.

8. "In bulk" means in containers having a capacity not less than one-sixth barrel for use

for the sale of malt beverages at retail.

9. "Licensed alcohol carrier" means a person licensed to transport or deliver alcoholic

beverages to a consumer without first having the alcoholic beverage delivered through

a wholesaler licensed in this state.

10. "Licensed logistics shipper" means a person that provides fulfillment house services,

including warehousing, packaging, distribution, order processing, or shipment of

alcoholic beverages on behalf of a licensed direct shipper and by way of a licensed

alcohol carrier.

11. "Licensed premises" means the premises on which beer, liquor, or alcoholic beverages

are normally sold or dispensed and must be delineated by diagram or blueprint which

must be included with the license application or the license renewal application.

12. "Liquor" means any alcoholic beverage except beer.

13. "Local governing body" means the governing entity of a city, county, or federally

recognized Indian tribe in this state.

14. "Local license" means a city, county, or tribal retail alcoholic beverage license issued

by the appropriate local governing body.

15. "Manufacturing distillery" means a distillery that produces forty thousand gallons

[151416 liters] or fewer of distilled spirits per year.

16. "Microbrew pub" means a brewer that brews ten thousand or fewer barrels of beer

per year and sells beer produced or manufactured on the premises for consumption on

or off the premises or serves beer produced or manufactured on the premises for

purposes of sampling the beer.

17. "Organization" means a domestic or foreign corporation, general partnership, limited

partnership, or limited liability company.

18. "Satellite location" means an offsite location owned or leased by a manufacturing

distillery to conduct retail operations.

19. "Sparkling wine" means wine made effervescent with carbon dioxide.

20. "Supplier" means an alcoholic beverage manufacturer, importer, marketer, or

wholesaler selling alcoholic beverages to a wholesaler licensed in this state for

purposes of resale.

21. "Tribal licensee" means a person issued a local license by the governing body of a

federally recognized Indian tribe in this state for the retail sale of alcoholic beverages

within the exterior tribal reservation boundaries.

22. "Twenty-one years of age" means it is after eight a.m. on the date twenty-one years

after a person's date of birth.

23. "Wine" means the alcoholic beverage obtained by fermentation of agricultural products

containing natural or added sugar or such beverage fortified with brandy and

containing not more than twenty-four percent alcohol by volume.
N.D. Cent. Code § 5-03-03 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-03
5-03-03. Bond required
Status: repealed

5-03-03. Bond required

Repealed by S.L. 1995, ch. 74, § 5.
N.D. Cent. Code § 5-02-06.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-06.1
5-02-06.1. Evidence of an individual under twenty-one years of age in a licensed premises - Proof of identification - Refusal - Penalty
Status: in_force

5-02-06.1. Evidence of an individual under twenty-one years of age in a licensed

premises - Proof of identification - Refusal - Penalty.

1. If a peace officer has reasonable and articulable suspicion that an individual under the

age of twenty-one is in a licensed premises for a purpose prohibited under section

5-02-06, the peace officer may request the individual to furnish a nondriver photo

identification card or an operator's license to verify the individual's age.

2. An individual who refuses to provide proof of identification upon request is guilty of an

infraction.

3. If an individual charged with an infraction under this section produces a nondriver

photo identification card or an operator's license before the final disposition of the

infraction establishing the individual was twenty-one years of age or older at the time

of the peace officer's request to furnish identification, the prosecuting attorney shall

dismiss the infraction against the individual.
N.D. Cent. Code § 5-04-10 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-10
5-04-10. Retaliatory action prohibited
Status: in_force

5-04-10. Retaliatory action prohibited

A brewer may not take retaliatory action against a wholesaler who files or manifests an

intention to file a complaint of alleged violation of state or federal law or regulation by the brewer

with the appropriate state or federal regulatory authority. "Retaliatory action" includes, but is not

limited to, refusal without good cause to continue the agreement, or a material reduction in the

quality of service or quantity of products available to the wholesaler under the agreement.
N.D. Cent. Code § 5-04-09 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-09
5-04-09. Product price
Status: in_force

5-04-09. Product price

No brewer, whether by means of a term or condition of an agreement or otherwise, may fix

or maintain the price at which the wholesaler sells any alcoholic beverage.
N.D. Cent. Code § 5-01-05 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-05
5-01-05. Public intoxication - Penalty
Status: repealed

5-01-05. Public intoxication - Penalty

Repealed by S.L. 1969, ch. 91, § 5.
N.D. Cent. Code § 5-02-07 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-07
5-02-07. Sale of other items restricted - Penalty
Status: repealed

5-02-07. Sale of other items restricted - Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 5-01-20 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-20
5-01-20. Direct sale by licensed wineries
Status: in_force

5-01-20. Direct sale by licensed wineries

1. A licensed winery that produces no more than twenty-five thousand gallons [94635

liters] of wine per year may sell and deliver, onsite or offsite, the wine produced by the

winery directly to licensed retailers. The licensed winery may sell and deliver wine

onsite to a licensed retailer who presents the retailer's license or a photocopy of the

license. The winery may deliver the wine offsite if the winery:

a. Uses the winery's equipment, trucks, and employees to deliver the wine;

b. Contracts with a licensed distributor to ship and deliver the wine to the retailer; or

c. Contracts with a common carrier to ship and deliver the wine to the retailer

directly from the winery or the winery's bonded warehouse.

2. The shipments delivered by a winery's equipment, trucks, and employees in a year

may not exceed four thousand five hundred cases. A case may not exceed

2.38 gallons [9 liters].

3. Individual shipments delivered by common carrier may not exceed three cases a day

for each licensed retailer. The shipments delivered by a common carrier in a year may

not exceed three thousand five hundred cases. A case may not exceed 2.38 gallons

[9 liters].
N.D. Cent. Code § 5-02-07.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-07.1
5-02-07.1. Sale of alcoholic beverages in exchange for goods prohibited
Status: in_force

5-02-07.1. Sale of alcoholic beverages in exchange for goods prohibited

Any licensee engaged in the retail sale of alcoholic beverages who accepts goods, chattels,

or other tangible personal property, other than money, checks, legal tender, negotiable

instruments, or other evidences of debt, in exchange for any alcoholic beverages is guilty of a

class B misdemeanor.
N.D. Cent. Code § 5-01-05.1 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-05.1
5-01-05.1. Public intoxication - Assistance - Medical care
Status: in_force

5-01-05.1. Public intoxication - Assistance - Medical care

1. As used in this section "intoxicated" means a state in which an individual is under the

influence of alcoholic beverages, drugs, or controlled substances, or a combination of

alcoholic beverages, drugs, and controlled substances.

2. A peace officer may take any apparently intoxicated individual to the individual's home,

to a local hospital, to a detoxification center, or, whenever that individual constitutes a

danger to that individual or others, to a jail. A tier 1b mental health professional, as

defined under section 25-01-01, of a local hospital may hold that individual for

treatment up to seventy-two hours.

3. An intoxicated individual may not be held in jail because of intoxication more than

twenty-four hours. An intoxicated individual may not be placed in a jail unless a jailer is

constantly monitoring the individual and medical services are provided if the need is

indicated.

4. Upon placing that individual in jail, or if the individual is admitted to a hospital or

detoxification center, upon admission, the peace officer shall make a reasonable effort

to notify the intoxicated individual's family as soon as possible.

5. Any additional costs incurred by the city, county, ambulance service, or medical

service provider on account of an intoxicated individual are recoverable from that

individual.
N.D. Cent. Code § 5-01-05.4 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-05.4
5-01-05.4. Informational, counseling, and referral centers for alcoholism
Status: in_force

5-01-05.4. Informational, counseling, and referral centers for alcoholism

Any county or city within the state at the discretion of their governing bodies, either

individually or jointly, may establish or provide office space, including personnel, for

informational, counseling, and referral services for alcoholics and their families.
N.D. Cent. Code § 5-04-16 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-16
5-04-16. Right of free association
Status: in_force

5-04-16. Right of free association

No brewer or wholesaler may restrict or inhibit, directly or indirectly, the right of free

association among brewers or wholesalers for any lawful purpose.
N.D. Cent. Code § 5-02-05.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-05.1
5-02-05.1. Sunday alcoholic beverage permit - Penalty
Status: repealed

5-02-05.1. Sunday alcoholic beverage permit - Penalty

Repealed by S.L. 2017, ch. 104, § 2.
N.D. Cent. Code § 5-03-05 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-05
5-03-05. Tax commissioner to adopt rules - Appeal
Status: in_force

5-03-05. Tax commissioner to adopt rules - Appeal

The tax commissioner, under chapter 28-32, shall adopt rules governing retailers, licensees,

direct shippers, and manufacturers necessary to carry out the provisions of this title and to

ensure efficient collection of beer and liquor taxes. All decisions of the tax commissioner are

subject to court review.
N.D. Cent. Code § 5-03-01 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-01
5-03-01. State wholesale license required - Qualifications - Penalty - Exception
Status: in_force

5-03-01. State wholesale license required - Qualifications - Penalty - Exception

Before any person engages in the sale at wholesale of beer or liquor in this state, that

person shall first procure a license from only the state tax commissioner. The license must only

allow sale to licensed retailers, licensed wholesalers, regular retail outlets on federal military

reservations, and sale for export from a federally bonded warehouse, or a foreign trade zone, to

an export bonded warehouse. No license may be issued unless the applicant files a sworn

application, accompanied by the required fee, showing the following qualifications:

1. If the applicant is not a corporation, the applicant must be a citizen of the United States

and a resident of this state and a person of good moral character. If the applicant is a

corporation, the manager of the licensed premises must be a resident of this state, a

citizen of the United States, and a person of good moral character, and the officers,

directors, and stockholders must be citizens of the United States and persons of good

moral character. Corporate applicants must first be properly registered with the

secretary of state.

2. The state tax commissioner may require the applicant to set forth other information

necessary to enable the state tax commissioner to determine if a license should be

granted.

3. A person is not eligible for such a license unless that person has a warehouse and

office in this state, in which is kept a complete set of records relative to that person's

alcoholic beverage transactions in this state.

4. The applicant may not have any financial interest in any retail alcoholic beverage

business.

5. The provisions of this section relating to warehousing do not apply to a wholesaler of

beer located in an adjoining state that permits wholesalers licensed in North Dakota to

deliver beer to retailers without warehousing in that state.

A lender who acquires an inventory of beer or liquor by reason of a foreclosure of a security

interest in the inventory is exempt from the requirement to obtain a license before the sale of the

inventory. The lender shall offer the inventory for sale first to the wholesaler. A lender who

forecloses upon a security interest in beer inventory for which the lender has a security interest

shall dispose of the beer inventory within ninety days of obtaining possession of the inventory.

Any person distributing alcoholic beverages in this state without compliance with this title is

guilty of a class B misdemeanor.
N.D. Cent. Code § 5-01-19 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-19
5-01-19. Domestic distillery
Status: in_force

5-01-19. Domestic distillery

1. The tax commissioner may issue a domestic distillery license to the owner or operator

of a distillery that is located within this state. A domestic distillery license may be

issued and renewed for an annual fee of one hundred dollars. This fee is in lieu of all

other license fees required by this title. The tax commissioner may not issue the

domestic distillery license until the applicant has established that the applicant has

applied for and obtained the necessary federal registrations and permits, as required

under the Internal Revenue Code of 1986 [26 U.S.C. 5001 et seq.] and the federal

Alcohol Administration Act [27 U.S.C. 203], for the operation of a distilled spirits plant.

2. A domestic distillery may sell spirits produced by that distillery at on sale or 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 thousand gallons [94635 liters]

in a calendar year. Direct sales within this state are limited to two and thirty-eight

hundredths gallons [9 liters] or less per month per person for personal use and not for

resale. The packaging must conform with the labeling requirements in section 5-01-16.

A licensee may dispense free samples of the spirits offered for sale. Subject to local

ordinance, sales at on sale and off sale may be made on Sundays between eight a.m.

and twelve midnight. A domestic distillery may hold events inside and outside its

premises, but only on contiguous property under common ownership, allowing free

samples of its spirits and to sell its spirits by the glass or in closed containers. The tax

commissioner may issue special event permits for not more than forty events per

calendar year to a domestic distillery allowing the domestic distillery, subject to local

ordinance, to give free samples of its product and to sell its product by the glass or in

closed containers, at off-premises events. A domestic distillery may not engage in any

wholesaling activities. Except as provided by section 5-01-19.1, all sales and deliveries

of spirits to any other retail licensed premises in this state may be made only through a

licensed North Dakota liquor wholesaler. However, a domestic distillery may sell

distilled spirits to a domestic winery if the distilled spirits were produced from products

provided to the domestic distillery by the domestic winery. No later than the last

business day of a calendar month, a farm distillery that has made sales to a North

Dakota wholesaler during the preceding calendar month shall file a report with the tax

commissioner reporting those sales.

3. A domestic distillery may obtain a domestic distillery license and a retailer license

allowing the onpremises sale of alcoholic beverages at a restaurant owned by the

licensee and located on property contiguous to the domestic distillery. A domestic

distillery also may own or operate a winery.

4. A domestic distillery is subject to section 5-03-06 and shall report and pay annually to

the tax commissioner the wholesaler taxes due on all spirits sold by the licensee at

retail or to a retail licensee, including all spirits shipped directly to consumers as set

forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due

January fifteenth of the year following the year sales were made. The report must

provide the detail and be in a format as prescribed by the tax commissioner. The tax

commissioner may require that the report be submitted in an electronic format

approved by the tax commissioner.
N.D. Cent. Code § 5-01-08.2 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-08.2
5-01-08.2. Presumption of licensee's innocence when certain facts established
Status: in_force

5-01-08.2. Presumption of licensee's innocence when certain facts established

The establishment of the following facts by a person making a sale of alcoholic beverages

to a person not of legal age constitutes prima facie evidence of innocence and a defense to any

prosecution therefor:

1. That the purchaser falsely represented and supported with other documentary proof

that the purchaser was of legal age to purchase alcoholic beverages.

2. That the appearance of the purchaser was such that an ordinary and prudent person

would believe the purchaser to be of legal age to purchase alcoholic beverages.

3. That the sale was made in good faith and in reliance upon the representation and

appearance of the purchaser in the belief that the purchaser was of legal age to

purchase alcoholic beverages.
N.D. Cent. Code § 5-03-04 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-04
5-03-04. Collection of taxes
Status: in_force

5-03-04. Collection of taxes

The taxes imposed by this chapter are payable as follows:

1. Except as provided in subsection 3, wholesalers shall pay the tax to the state tax

commissioner on or before the fifteenth day of each month.

2. Liquor wholesalers shall make the payments based on the total gallonage sold the

preceding calendar month. Beer wholesalers shall make the payments based on the

total gallonage purchased from brewers the preceding calendar month. Microbrew

pubs shall make payments based on the total gallonage sold onpremises during the

preceding calendar month.

3. Sales of alcoholic beverages for export through a federally bonded warehouse, or a

foreign trade zone, to an export bonded warehouse are excluded from the computation

of the gallonage tax. If the alcoholic beverages are returned to this state from the

federally bonded warehouse, the foreign trade zone, or the export bonded warehouse,

the exemption no longer applies.

4. Upon satisfactory proof, a tax credit is allowed beer wholesalers for beer purchased,

but which cannot be sold in this state. A tax credit is allowed wholesalers on bad

accounts which are charged off for income tax purposes, but a pro rata tax is again

payable on any accounts subsequently collected.

5. If any wholesaler makes an overpayment of taxes due, the state tax commissioner

shall issue a credit applicable to future obligations or certify that amount to the office of

management and budget for a refund.

6. Any remittance within one dollar of the correct amount due may be accepted by the

state tax commissioner as the correct amount due.
N.D. Cent. Code § 5-02-02 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-02
5-02-02. Qualifications for license
Status: in_force

5-02-02. Qualifications for license

A retail license may not be issued to any person unless the applicant files a sworn

application, accompanied by the required fee, showing the following qualifications:

1. The applicant, other than an organization, must be a legal resident of the United

States and be a person of good moral character.

2. If the applicant is:

a. A corporation, then:

(1) The manager of the licensed premises and the officers and directors must

be legal residents of the United States and persons of good moral character;

and

(2) The shareholders:

(a) Who are individuals, must be legal residents of the United States and

of good moral character; and

(b) Which are organizations, must meet the requirements of this section

for applicants which are organizations.

Corporate applicants must first be properly registered with the secretary of state.

b. A limited liability company, then:

(1) The manager of the licensed premises and the managers and governors

must be legal residents of the United States and of good moral character.

(2) The members:

(a) Who are individuals, must be legal residents of the United States and

of good moral character; and

(b) Which are organizations, must meet the requirements of this section

for applicants that are organizations.

(3) The applicant must first be properly registered with the secretary of state.

c. A limited partnership, then:

(1) The manager of the licensed premises must be a legal resident of the

United States and of good moral character.

(2) The general partners and limited partners:

(a) If individuals, must be legal residents of the United States and of good

moral character; and

(b) If organizations, must meet the requirements of this section for

applicants that are organizations.

(3) The applicant must first be properly registered with the secretary of state.

d. A general partnership, then:

(1) The manager of the licensed premises must be a legal resident of the

United States and of good moral character; and

(2) The partners:

(a) Who are individuals, must be legal residents of the United States and

of good moral character; and

(b) Which are organizations, must meet the requirements of this section

for applicants that are organizations.

e. A limited liability partnership, then:

(1) The manager of the licensed premises must be a legal resident of the

United States and of good moral character; and

(2) The partners:

(a) Who are individuals, must be legal residents of the United States and

of good moral character; and

(b) Which are organizations, must meet the requirements of this section

for applicants that are organizations.

Limited liability partnership applicants must first be properly registered with the

secretary of state.

3. The applicant or manager must not have been convicted of an offense determined by

the attorney general to have a direct bearing upon an applicant's or manager's ability

to serve the public as an alcoholic beverage retailer, or, following conviction of any

offense, is determined not to be sufficiently rehabilitated under section 12.1-33-02.1.

4. The building in which business is to be conducted must meet local and state

requirements regarding the sanitation and safety.

5. The applicant for a state license must have first secured a local license.

6. The attorney general, or local governing body, may require the applicant to set forth

such other information in the application as necessary to enable them to determine if a

license should be granted.

7. The applicant may not have any financial interest in any wholesale alcoholic beverage

business.

8. As a condition precedent to a background check, the attorney general may require the

applicant to pay, in advance, an estimated additional fee necessary to defray the

actual cost of a background check of a person for whom adequate background

information sources are not readily available. The estimated additional fee must be

placed in the attorney general's refund fund for use to defray the actual expenses of

the background check. The remainder of the funds must be returned to the person

within thirty days of the conclusion of the background check. In addition, the attorney

general may require the applicant or such other person subject to a background check

to execute a written consent if needed by the attorney general to obtain background or

criminal history information.
N.D. Cent. Code § 5-03-01.1 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-01.1
5-03-01.1. Conviction not bar to licensure - Exceptions
Status: in_force

5-03-01.1. Conviction not bar to licensure - Exceptions

Conviction of an offense shall not disqualify a person from licensure under this chapter

unless the state tax commissioner determines that the offense has a direct bearing upon a

person's ability to serve the public as a beer or liquor wholesaler, or that, following conviction of

any offense, the person is not sufficiently rehabilitated under section 12.1-33-02.1.
N.D. Cent. Code § 5-01-13 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-13
5-01-13. State's attorney's inquiry
Status: in_force

5-01-13. State's attorney's inquiry

The state's attorney may subpoena persons and take sworn testimony concerning any

alleged violation of the alcoholic beverage laws and may apply to the district court for an order

compelling persons subpoenaed to appear and testify. Such witnesses shall receive the same

fees and mileage as in a civil case in district court.
N.D. Cent. Code § 5-02-10 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-10
5-02-10. Hearing on alleged violations
Status: in_force

5-02-10. Hearing on alleged violations

1. If a person has information that a licensed retailer of alcoholic beverages has violated

any provision of this title, the person may file with the attorney general, city attorney, or

state's attorney an affidavit specifically explaining the violation within fourteen days of

the date of the alleged violation.

2. If a person timely files an affidavit under subsection 1, the city attorney or state's

attorney shall set the matter for hearing not later than the next regular meeting of the

local governing body or forward the affidavit to the attorney general.

3. If a person timely files an affidavit under subsection 1, the attorney general shall set

the matter for hearing in the local county courthouse not less than ten days after

copies of the affidavit and notice of hearing have been mailed to the licensee by

registered mail.

4. If the hearing is held by the local governing body, a copy of the affidavit and notice of

hearing must be mailed to the licensee by registered mail not less than five days

before the hearing.

5. A hearing conducted under this section must be recorded by stenographic notes or the

use of an electronic recording device.
N.D. Cent. Code § 5-04-04 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-04
5-04-04. Agreement cancellation
Status: in_force

5-04-04. Agreement cancellation

Notwithstanding the terms, provisions, or conditions of any agreement, no brewer may

amend, cancel, terminate, or refuse to renew any agreement, or cause a wholesaler to resign

from an agreement, unless good cause exists for amendment, termination, cancellation,

nonrenewal, noncontinuation, or causing a resignation. "Good cause" does not include the sale

or purchase of a brewer. "Good cause" includes, but is not limited to, the following:

1. Revocation of the wholesaler's license to do business in this state.

2. The wholesaler's bankruptcy or insolvency.

3. Assignment for the benefit of creditors or similar disposition of the wholesaler's assets.

4. The wholesaler's failure to comply, without reasonable excuse or justification, with any

reasonable and material requirement imposed upon the wholesaler by the brewer.

In any dispute over an amendment, cancellation, termination, or nonrenewal, the brewer has the

burden of proving the existence of good cause. If a wholesaler initiates a civil action, the brewer

bears the burden of proving the existence of good cause after a prima facie showing by the

wholesaler that good cause does not exist.
N.D. Cent. Code § 5-01-07 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-07
5-01-07. Township beer or liquor licenses
Status: in_force

5-01-07. Township beer or liquor licenses

No retail beer or liquor license may be issued in any organized township without the written

consent of the board of township supervisors.
N.D. Cent. Code § 5-04-02 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-02
5-04-02. Inducement or coercion prohibited
Status: in_force

5-04-02. Inducement or coercion prohibited

A brewer may not:

1. Induce or coerce, or attempt to induce or coerce, a beer wholesaler to accept delivery

of an alcoholic beverage or other commodity which has not been ordered by the beer

wholesaler.

2. Induce or coerce, or attempt to induce or coerce, a beer wholesaler to enter an

agreement or take an action that would violate a law or rule of this state by threatening

to amend, cancel, terminate, or refuse to renew an agreement existing between a

brewer and a beer wholesaler.

3. Require a wholesaler to assent to a condition, stipulation, or provision limiting the

wholesaler's right to sell any other brewer's product anywhere in this state, provided

the sale of another brewer's product does not materially impair the quality of service or

quantity of sales of the existing brand or brands of the brewer seeking to impose the

condition, stipulation, or provision.

4. Require a wholesaler to submit specific, confidential information regarding competitive

brands, as a condition of renewal or continuation of an agreement.

5. Fail to provide each wholesaler of its brands with a written contract that conforms to

this chapter and embodies the brewer's agreement with each wholesaler.

6. Require a wholesaler to use or prohibit a wholesaler from using a

business-to-business electronic commerce platform.
N.D. Cent. Code § 5-02-01.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-01.1
5-02-01.1. Event permit authorized - Penalty
Status: in_force

5-02-01.1. Event permit authorized - Penalty

1. The local governing body may by permit authorize a qualified alcoholic beverage

licensee licensed under this chapter to engage in the sale of alcoholic beverages at

events designated by the permit. For purposes of this section, "qualified alcoholic

beverage licensee" means a licensee in a city that imposed a city lodging and

restaurant tax on July 31, 1993, who paid the tax and who continues to pay any such

tax imposed by the city or a licensee in a county, a licensee in a city that did not

impose a city lodging and restaurant tax on July 31, 1993, or a tribal licensee. A fee for

the local permit may be set by ordinance or resolution at not more than twenty-five

dollars. The permit may not be valid for a period greater than fourteen days and may

include Sundays. The local governing body may establish rules to regulate and restrict

the operation of an event permit. Any person that dispenses, sells, or permits the

consumption of alcoholic beverages in violation of this section or the conditions of a

permit is guilty of a class B misdemeanor.

2. The local governing body may authorize an individual under twenty-one years of age

to attend the event but may not authorize the consumption or possession of an

alcoholic beverage by an individual under twenty-one years of age.
N.D. Cent. Code § 5-02-02.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-02.1
5-02-02.1. Sale of alcoholic beverages in gas stations, grocery stores, and convenience stores
Status: in_force

5-02-02.1. Sale of alcoholic beverages in gas stations, grocery stores, and

convenience stores.

Before a state retail off sale alcoholic beverage license may be issued to a person whose

business to be licensed is located in a building that is primarily a gas station, grocery store, or

convenience store, the area to be licensed for the sale of alcoholic beverages must be clearly

set out in a blueprint or diagram. The area licensed for the sale of alcoholic beverages must be

separated from the nonlicensed portion of the business by a wall designed to allow sales

personnel to serve customers and make sales in both the licensed and unlicensed portions of

the premises, and that may allow customers in either portion of the premises access to the other

portion.
N.D. Cent. Code § 5-02-04 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-04
5-02-04. State license fee
Status: in_force

5-02-04. State license fee

The fee for an annual state beer or liquor license is fifty dollars each, except in cities over

five hundred population at the last federal decennial census, the fee is one hundred dollars for

each license. The fee for an annual state license will be charged on a calendar-year basis.

License fees will be prorated from the first day of the month in which the license is issued up to

the last day of the month in which such license expires, except that no license fee will be less

than twenty-five dollars. A reinstatement fee of one hundred dollars is required in addition to the

annual license fee for each license renewal applied for after December thirty-first.
N.D. Cent. Code § 5-03-02 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-02
5-03-02. Fees
Status: in_force

5-03-02. Fees

The fee for an annual wholesale liquor license is one thousand dollars. The fee for an

annual wholesale beer license is two hundred dollars. Fees must be reduced twenty-five

percent for each full quarter of a year elapsed between the first day of the year for which the

license is issued and the date on which the application for the license is filed with the state tax

commissioner. When an application clearly indicates that the applicant does not desire to

exercise the privileges granted by the license applied for until on or after the beginning of the

quarterly period following the quarterly period in which the application is filed with the

department, the fees must be reduced twenty-five percent for each full quarter of a year

elapsing between the first day of the year for which the license is issued and the date indicated

on the application. A license may not be issued for any period for a fee less than one-half of the

annual license fee.
N.D. Cent. Code § 5-01-21 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-21
5-01-21. Brewer taproom license
Status: in_force

5-01-21. Brewer taproom license

1. The tax commissioner may issue multiple brewer taproom licenses to the owner or

operator of a brewery producing no more than twenty-five thousand barrels of malt

beverages annually. A brewer with multiple taproom licenses must produce malt

beverages at each location and the total amount of malt beverages produced at all

locations combined may not exceed twenty-five thousand barrels of malt beverages

annually. Each brewer taproom license may be issued and renewed for an annual fee

of five hundred dollars, which is in lieu of all other state license fees required by this

title. All provisions of this chapter which apply to a retail license must apply to a license

issued under this section unless the provision is explicitly inconsistent with this section.

2. A brewer holding a brewer taproom license may:

a. Manufacture on the licensed premises, store, transport, sell, and export no more

than twenty-five thousand barrels of malt beverages annually.

b. Sell malt beverages manufactured on the licensed premises or through a contract

for consumption on the premises of the brewery or a restaurant owned by the

licensee and located on property contiguous to the brewery.

c. Sell beer manufactured on the licensed premises or through a contract for off

premises consumption in brewery-sealed containers of not more than five and

sixteen-hundredths gallons [19.53 liters].

d. Sell and deliver beer produced by the brewery to licensed beer wholesalers.

e. Dispense free samples of beer offered for sale. Complimentary samples of beer

may not be in an amount exceeding sixteen ounces [.47 liter] per patron.

f. Sell and deliver beer produced by the brewery to licensed retailers within the

state, but only if:

(1) The brewer uses the brewer's own equipment, trucks, and employees to

deliver the beer;

(2) Individual deliveries, other than draft beer, are limited to the case equivalent

of eight barrels per day to each licensed retailer;

(3) The total amount of beer sold or delivered directly to all retailers does not

exceed ten thousand barrels per year; and

(4) A common carrier is not used to ship or deliver the brewery's product to the

public or to licensed retailers. All other sales and deliveries of beer to

licensed retailers in this state may be made only through a wholesaler

licensed in this state.

g. Sell or direct ship beer produced by the brewery to an individual in this state for

consumption in accordance with section 5-01-16.

3. The tax commissioner may issue special event permits for not more than forty events

per calendar year to a brewer taproom licensee allowing the licensee, subject to local

ordinance, to give free samples of its beer, sell its beer by the glass or in closed

containers, or dispense beer manufactured by the licensee, at off-premises events.

4. For any month in which a brewery has made sales to a wholesaler licensed in this

state, that brewery shall file a report with the tax commissioner no later than the last

day of each calendar month reporting sales made during the preceding calendar

month. When the last day of the calendar month falls on a Saturday, Sunday, or legal

holiday, the due date is the first working day after that day.

5. A brewer taproom licensee is subject to section 5-03-06 and shall report and pay

annually to the tax commissioner the wholesaler taxes due on all beer sold by the

licensee at retail or to a retail licensee, including all beer sold directly to consumers as

set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are

due January fifteenth of the year following the year sales were made. When the

fifteenth of January falls on a Saturday, Sunday, or legal holiday, the due date is the

first working day after that day. The report must provide the detail and be in a format

as prescribed by the tax commissioner. The tax commissioner may require the report

be submitted in an electronic format approved by the tax commissioner.

6. A brewer may have multiple taproom licenses, but may not have an ownership interest

in whole or in part, or be an officer, director, agent, or employee of any other

manufacturer, brewer, importer, wholesaler, or retailer, or be an affiliate thereof,

whether the affiliation is corporate or by management, direction, or control. A brewer

may transfer beer in bulk, as defined by section 5-01-01, manufactured by the brewer

to an affiliated brewer. For the purposes of this subsection, an "affiliated brewer

taproom" means a licensed brewer taproom of which at least an eighty-five percent

interest is owned by the brewer taproom, measured annually and:

a. The brewer does not own more than three affiliated brewer taprooms;

b. The licensed brewer taproom receiving the beer in bulk has produced no less

than five thousand gallons [18927.06 liters] of beer on the premises in the

preceding calendar year. For the purpose of calculating the production

requirements, the production must be prorated based on the number of days beer

was produced;

c. The beer in bulk transferred in any calendar year constitutes no more than fifty

percent of the beer being produced by the licensed brewer taproom receiving the

beer; and

d. For purposes of determining whether the twenty-five thousand barrel production

limit under subsections 1 and 2 is being exceeded, the beer being transferred is

credited to the brewer that manufactured the beer.

7. A contractee brewer may contract with a contractor brewer to produce beer for the

contractee brewer to the extent allowed by federal law under the following conditions:

a. The contractee brewer and the contractor brewer must be licensed and owned

separately;

b. The contractee brewer must have a proper license issued under this section and

maintain a physical presence in the state;

c. Beer brewed for a contractee brewer counts toward the contractee brewer's

annual barrels produced, and the beer does not count toward the contractor

brewer's annual barrels produced;

d. The contractee brewer retains ownership of product produced by a contractor

brewer; and

e. Each brewer is separately and distinctly responsible for compliance with this

chapter.
N.D. Cent. Code § 5-01-22 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-22
5-01-22. Powdered alcohol products prohibited - Penalty - Exceptions
Status: in_force

5-01-22. Powdered alcohol products prohibited - Penalty - Exceptions

1. As used in this section, "powdered alcohol product" means any alcohol prepared or

sold in a powder form for either direct use or reconstitution in a liquid beverage or

food.

2. A person may not sell, offer to sell, purchase, offer to purchase, possess, or consume

a powdered alcohol product.

3. A violation of this section is a class B misdemeanor.

4. This section does not apply to the use of powdered alcohol products for research by a:

a. Health care provider that operates primarily for the purpose of conducting

scientific research;

b. State institution;

c. Private college or university; or

d. Pharmaceutical or biotechnology company.
N.D. Cent. Code § 5-01-06 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-06
5-01-06. Recovery of damages resulting from intoxication
Status: repealed

5-01-06. Recovery of damages resulting from intoxication

Repealed by S.L. 1987, ch. 95, § 5; S.L. 1987, ch. 99, § 2.
N.D. Cent. Code § 5-01-04 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-04
5-01-04. Manufacture of alcoholic beverages prohibited - Exceptions
Status: in_force

5-01-04. Manufacture of alcoholic beverages prohibited - Exceptions

A person may manufacture alcoholic beverages for personal or family use, and not for sale,

without securing a license if the amount manufactured is within quantities allowed by the alcohol

and tobacco tax and trade bureau of the United States treasury department. Any person

manufacturing alcoholic beverages within this state in quantities greater than those permitted by

the alcohol and tobacco tax and trade bureau of the United States treasury department is guilty

of a class A misdemeanor and property used for the same is subject to disposition by the court

except any person may establish a brewery for the manufacture of malt beverages, a winery, or

a distillery or other plant for the distilling, manufacturing, or processing of alcohol within this

state if the person has secured a license from the tax commissioner. This license must be

issued on a calendar-year basis with a fee of five hundred dollars. A first-time license fee may

be reduced twenty-five percent for each full quarter of a year elapsed between the first day of

the year for which the license is issued and the date on which the application for the license is

filed with the tax commissioner. A license may not be issued for any period for a fee less than

one-half of the annual license fee. This license shall allow sale to only licensed wholesalers.
N.D. Cent. Code § 5-04-13 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-13
5-04-13. Waiver prohibited
Status: in_force

5-04-13. Waiver prohibited

No brewer may require any wholesaler to waive compliance with any provision of this

chapter. Nothing in this chapter may be construed to limit or prohibit good-faith dispute

settlements voluntarily entered into by the parties. However, no provision of any written

agreement may require the law of any state other than North Dakota to govern the relationship

of the parties.
N.D. Cent. Code § 5-01-15 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-15
5-01-15. Penalty
Status: in_force

5-01-15. Penalty

Any person who violates any provision of this title, or any rule adopted to implement this

title, is guilty of a class B misdemeanor, unless the penalty is provided for elsewhere.
N.D. Cent. Code § 5-01-08.3 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-08.3
5-01-08.3. Proof of age - Seizure of false identification
Status: in_force

5-01-08.3. Proof of age - Seizure of false identification

1. A licensed retailer of alcoholic beverages or an employee of a licensed retailer may

determine proof of age for purchasing or consuming an alcoholic beverage solely by

inspection of one of the following:

a. A valid driver's license or identification card issued by this state, another state, or

a province of Canada which includes the photograph and date of birth of the

licensed individual;

b. A valid military identification card issued by the United States department of

defense; or

c. A valid passport issued or recognized by the United States.

2. A licensed retailer or an employee of a licensed retailer may seize a form of

identification displayed as proof of age if the licensed retailer or an employee of a

licensed retailer has a reasonable belief that the form of identification has been

altered, falsified, or is being used to unlawfully obtain alcoholic beverages.

3. Within twenty-four hours of seizing a form of identification as allowed under this

section, a licensed retailer or an employee of a licensed retailer shall notify a law

enforcement agency of the seizure and the law enforcement agency shall take

possession of the identification within twenty-four hours after receipt of the notice.
N.D. Cent. Code § 5-03-08 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-08
5-03-08. Taxes and fees deposited in the general fund
Status: in_force

5-03-08. Taxes and fees deposited in the general fund

All moneys collected by the tax commissioner under this chapter must be transferred to the

state treasurer, within ten days after the end of the month in which they were collected, and

deposited in the state general fund.
N.D. Cent. Code § 5-03-06.1 — ND Code / Title 5 / Chapter 5-03 / Section 5-03-06.1
5-03-06.1. Hearing on alleged violations - Denial of license
Status: in_force

5-03-06.1. Hearing on alleged violations - Denial of license

On licenses that are renewable annually, the state tax commissioner may not revoke or

suspend a license or deny a renewal prior to conducting a hearing in accordance with chapter

28-32.
N.D. Cent. Code § 5-02-09.1 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-09.1
5-02-09.1. Attorney general to adopt rules
Status: in_force

5-02-09.1. Attorney general to adopt rules

The attorney general pursuant to chapter 28-32 shall adopt rules necessary to carry out the

provisions of this chapter.
N.D. Cent. Code § 5-04-12 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-12
5-04-12. Discrimination prohibited
Status: in_force

5-04-12. Discrimination prohibited

No brewer may discriminate among its North Dakota wholesalers in the price of beer sold to

the North Dakota wholesalers or in price promotions. No wholesaler may refuse to sell to any

licensed alcoholic beverage retailer in its sales territory. No wholesaler may discriminate among

the licensed alcoholic beverage retailers in its sales territory in the price of beer sold to the

retailers or in price promotions.
N.D. Cent. Code § 5-04-06 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-06
5-04-06. Assignment, transfer, or sale of business
Status: in_force

5-04-06. Assignment, transfer, or sale of business

No brewer may unreasonably withhold consent to any assignment, transfer, or sale of the

wholesaler's business whenever the wholesaler to be substituted meets the material and

reasonable qualifications and standards required of the brewer's wholesalers.

No brewer may unreasonably refuse, withhold, or unduly delay its approval of the issuance,

sale, or transfer by a corporate beer wholesaler of its capital stock or any other corporate equity

or debt security.
N.D. Cent. Code § 5-04-03 — ND Code / Title 5 / Chapter 5-04 / Section 5-04-03
5-04-03. Dual distributorship prohibited
Status: in_force

5-04-03. Dual distributorship prohibited

No brewer who designates a sales territory for which a wholesaler shall be primarily

responsible shall enter into an additional agreement with any other beer wholesaler for its brand

or brands of beer in the same territory. No wholesaler may deliver beer to a retail account

outside a sales territory designated by the brewer of a particular brand or brands.
N.D. Cent. Code § 5-02-03 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-03
5-02-03. Local license fees
Status: in_force

5-02-03. Local license fees

The fee for an annual local on and off sale liquor license must be set by ordinance or

resolution at not less than two hundred dollars nor more than two thousand dollars, except

outside the corporate limits of a city the fee shall not exceed one thousand dollars. The fee for

an annual on and off sale local beer license must be set by ordinance or resolution at not less

than fifty dollars nor more than five hundred dollars. The fee for an annual local exclusive on

sale liquor license must be set by ordinance or resolution at not less than two hundred dollars

nor more than two thousand dollars, except outside the corporate limits of a city the fee must

not exceed one thousand dollars. The fee for an annual local exclusive on sale local beer

license must be set by ordinance or resolution at not less than fifty dollars nor more than five

hundred dollars. The fee for an annual local exclusive off sale beer or off sale liquor license

must not be more than the fee charged for an on and off sale license. The local governing body

may by ordinance or resolution provide for issuance of licenses for any period not to exceed one

year and may allow for proration and refunds of license fees. In addition to any other license fee

permitted by this section, a license fee may be increased by not more than five dollars for each

Sunday the licensee sells alcoholic beverages.
N.D. Cent. Code § 5-01-09 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-09
5-01-09. Delivery to certain persons unlawful
Status: in_force

5-01-09. Delivery to certain persons unlawful

1. Any individual knowingly delivering alcoholic beverages to an individual under

twenty-one years of age, except as allowed under section 5-02-06, or to an

incompetent or an obviously intoxicated individual is guilty of a class A misdemeanor,

subject to sections 5-01-08, 5-01-08.1, and 5-01-08.2.

2. An individual under twenty-one years of age is immune from criminal prosecution

under this section if that individual contacted law enforcement or emergency medical

services and reported that another individual under twenty-one years of age was in

need of medical assistance due to alcohol consumption, provided assistance to the

individual in need of medical assistance until assistance arrived and remained on the

scene and cooperated with medical assistance and law enforcement personnel on the

scene, or was the individual in need of medical assistance. The maximum number of

individuals that may be immune for any one occurrence is five individuals.

3. If an individual is convicted of this section for delivering alcoholic beverages to an

individual under twenty-one years of age, the court shall consider the following in

mitigation:

a. After consuming the alcohol, the underage individual was in need of medical

assistance as a result of consuming alcohol; and

b. Within twelve hours after the underage individual consumed the alcohol, the

defendant contacted law enforcement or emergency medical personnel to report

that the underage individual was in need of medical assistance as a result of

consuming alcohol.
N.D. Cent. Code § 5-01-05.2 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-05.2
5-01-05.2. No prosecution for intoxication
Status: in_force

5-01-05.2. No prosecution for intoxication

No person may be prosecuted in any court solely for public intoxication. Law enforcement

officers may utilize standard identification procedures on all persons given assistance because

of apparent intoxication.
N.D. Cent. Code § 5-01-02 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-02
5-01-02. Exceptions
Status: in_force

5-01-02. Exceptions

Nothing contained in this title may be construed to apply to the following articles, when they

are unfit for beverage purposes:

1. Denatured alcohol produced and used pursuant to Acts of Congress, and the

regulations thereunder;

2. Patent, proprietary, medical, pharmaceutical, antiseptic, and toilet preparations;

3. Flavoring extracts, syrups, and food products; or

4. Scientific, chemical, and industrial products;

nor to the manufacture or sale of said articles containing alcohol. This title does not apply to

wines delivered to priests, rabbis, and ministers for sacramental use.
N.D. Cent. Code § 5-01-03 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-03
5-01-03. Penalty
Status: repealed

5-01-03. Penalty

Repealed by S.L. 1975, ch. 106, § 673.
N.D. Cent. Code § 5-02-05.2 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-05.2
5-02-05.2. Local approval of Sunday beer and wine sales by eating establishments - Fee
Status: repealed

5-02-05.2. Local approval of Sunday beer and wine sales by eating establishments -

Fee.

Repealed by S.L. 1993, ch. 63, § 6.
N.D. Cent. Code § 5-01-06.1 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-06.1
5-01-06.1. Claim for relief for fault resulting from intoxication
Status: in_force

5-01-06.1. Claim for relief for fault resulting from intoxication

1. Every spouse, child, parent, guardian, employer, or other individual who is injured by

any obviously intoxicated individual has a claim for relief for fault under section

32-03.2-02 against any person who knowingly disposes, sells, barters, or gives away

alcoholic beverages to an individual under twenty-one years of age or to an

incompetent or an obviously intoxicated individual, and if death ensues, the survivors

of the decedent are entitled to damages defined in section 32-21-02. If a retail licensee

is found liable under this section and exemplary damages are sought, the finder of fact

may consider as a mitigating factor that the licensee provided to an employee alcohol

server training that addressed intoxication, drunk driving, and underage drinking.

2. If a retail licensee provided to an employee alcohol server training that addresses

intoxication, drunk driving, and underage drinking, a person with a claim for relief

under this section may not use the fact that the retail licensee provided this training to

prove culpability.

3. A claim for relief under this section may not be had on behalf of the intoxicated

individual nor on behalf of the intoxicated individual's estate or personal

representatives, nor may a claim for relief be had on behalf of an adult passenger in

an automobile driven by an intoxicated individual or on behalf of the passenger's

estate or personal representatives.
N.D. Cent. Code § 5-01-18 — ND Code / Title 5 / Chapter 5-01 / Section 5-01-18
5-01-18. Alcohol without liquid devices prohibited - Definition - Penalty
Status: in_force

5-01-18. Alcohol without liquid devices prohibited - Definition - Penalty

1. A person may not sell, offer to sell, purchase, possess, use, or if that person is a retail

alcoholic beverage licensee, have on the premises an alcohol without liquid device. In

this section, an "alcohol without liquid device" means an apparatus that is advertised,

designed, or used to vaporize an alcoholic beverage to produce a vapor that may be

inhaled by an individual. The term does not include an inhaler, nebulizer, atomizer, or

other device that is designed and intended specifically for medical purposes to

dispense prescribed or over-the-counter medications or water.

2. This section does not apply to a hospital that operates primarily for the purpose of

conducting scientific research, a state institution conducting bona fide research, a

private college or university conducting bona fide research, or a pharmaceutical

company or biotechnology company conducting bona fide research.

3. A violation of this section is a class B misdemeanor.
N.D. Cent. Code § 5-02-12 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-12
5-02-12. Witnesses - Subpoena - Fees
Status: in_force

5-02-12. Witnesses - Subpoena - Fees

The attorney general or a member of the local governing body has the power to administer

oaths and subpoena and examine witnesses. Any witness called by the prosecution, except a

peace officer while on duty, shall receive the same fees and mileage as a witness in a civil case

in district court.
N.D. Cent. Code § 5-02-01 — ND Code / Title 5 / Chapter 5-02 / Section 5-02-01
5-02-01. State and local retail license required - Penalty - Exception
Status: in_force

5-02-01. State and local retail license required - Penalty - Exception

1. Except as otherwise provided in section 5-02-01.1, any person engaging in the sale of

alcoholic beverages at retail without first securing an appropriate license from the

attorney general and a local license from the governing body of any city, or if the

business is located outside the corporate limits of a city, the board of county

commissioners or the governing body of an Indian tribe, as the location requires, is

guilty of a class A misdemeanor.

2. This section does not apply to public carriers engaged in interstate commerce.

3. This section does not apply to a nonprofit organization that sells an alcoholic beverage

as part of a fundraising activity. As used in this subsection, fundraising activity includes

an auction, raffle, or other prize contest for which consideration is given. If the

alcoholic beverage is sold as part of a fundraising event, the sale may not be for

consumption at that event.