Policy 6:4 - Sale of Alcohol on University Property

Policy Contact: Office of the President

Purpose
This policy implements SDBOR Policy 6.14 and sets forth the process for the sale of alcohol on University property in accordance with applicable state law.
Definitions
1. Alcoholic Beverages: for the purposes of this policy, the term “alcoholic beverages” includes and is limited to beer and wine.
2. University Property: any property owned, leased, or operated for the University, or on the campus of the University.
3. Permit: an authorization from the University President to procure an alcoholic beverage license for periodic retail sales or a special events license.
4. Permitted Event: a specifically designated event, a series of specifically designated periodic events, and special events where the sale of Alcoholic Beverages may be licensed.
5. Vendor: the contracted entity authorized by the University to procure and obtain an alcoholic beverage license or a special events license that will supply and sell the Alcoholic Beverages at a Permitted Event.
Policy
1. SDBOR Policy 4.7.1 and University Policy 4:7 provide general requirements governing alcoholic beverages at the University. These policies generally prohibit the possession or consumption of alcoholic beverages unless the possession or consumption is authorized and reported in conformity with those policies. University Policy 4:7 applies to designation of allowed possession or consumption of alcoholic beverages in designated areas without sale pursuant to SDBOR Policy 4.7.1. This University policy addresses the limited authorization to sell alcohol on University Property in accordance with South Dakota Law and SDBOR Policy 6.14.
2. South Dakota Codified Law (“SDCL”) 35-2-6.1 prohibits the issuance of a license to sell alcoholic beverages on the campus of any state educational institution, including the University. However, the statute contains two (2) exceptions to this blanket prohibition.
  1. The first exception allows the issuance of an alcoholic beverage license to engage in the periodic retail sale of malt beverages or wine for consumption on-site at a location and time, authorized by the SDBOR, that involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event at a facility used for performing arts, intercollegiate athletics, events, or receptions.
  2. The second exception allows the issuance of a special events license for a special event authorized by the SDBOR that involves the performing arts, intercollegiate athletics, fund raising, a reception, a conference, or an occasional or scheduled event.
  The two (2) exceptions to the blanket prohibition require authorization by the SDBOR. Therefore, the authority to use an alcoholic beverage license or a special events license for the sale of Alcoholic Beverages at an event occurring on University Property is contingent on compliance with all SDBOR policies, including SDBOR Policy 6.14, and is limited by the terms and conditions contained herein.
3. Per SDBOR Policy 6.14, the SDBOR expressly authorizes the University President to determine whether to grant a Permit to procure an alcoholic beverage license or a special events license for the sale of Alcoholic Beverages. The grant of any such Permit shall be determined by the University President, or authorized designee, in accordance with the provisions set forth herein and not as a matter of right to any other person or party. Permits shall be conditioned upon the issuance of the appropriate license to sell alcohol by the local authority as required by South Dakota law and in compliance with applicable laws and policies.
4. The University President is responsible for ensuring that the decisions to allow the sale of alcoholic beverages on University Property are consistent with this policy, applicable law, and the proper image and mission of the University.
5. The delegation of authority to the University President to issue Permits to procure an alcoholic beverage license for periodic retail sales or a special events license is subject to the following terms and conditions:
  1. A Permit may be granted only for a Permitted Event. Each Permitted Event shall be defined by the activity planned, the area or location in which the activity will take place, and the period of time during which the activity will take place.
    1. The area or location in which the activity will take place must be defined with particularity and must encompass a space or area suitable for properly controlling the sale, possession, and consumption of alcoholic beverages.
    2. The time period for the activity must be a single contiguous time period for a separate defined occurrence (e.g. a dinner, a conference, a reception, a concert, a sporting competition within the defined areas, etc.). A series of events may only be permitted in conformity with the state and local licensing regulations. An event that lacks a predetermined end time shall not be a Permitted Event.
    3. The area or location of the Permitted Event, the space or area designated for sale, possession, and consumption of Alcoholic Beverages, and the applicable time periods for the Permitted Event, as well as the time in which Alcoholic Beverage sales will cease prior to the end of the Permitted Event, must each be set forth in the Permit and in the application for the Permit. A facility reservation or facility use agreement must be included in the application for a Permit, however, a facility reservation or facility use agreement does not constitute approval by the President of a Permit to sell alcohol. A facility use may occur without the sale of Alcoholic Beverages.
    4. The application for a Permit must include a plan that addresses security.
  2. Except as allowed herein, any Permit issued for performing arts or student athletic events (including, without limitation, NCAA, NIT, NAIA and intramural student athletic events) occurring on University Property may be: limited to specially designated box seat or loge areas to which access is controlled and limited to such patrons; or may be allowed in general admission areas, subject to the following conditions:
    1. The sale of alcoholic beverages may start no sooner than one (1) hour before the scheduled start of the event and must end at least thirty (30) minutes prior to the schedule end of the event (e.g., end of the third quarter of a football game).
    2. The point of sale for alcoholic beverages must be separate and apart from required food service general concessions.
    3. No attendee under the age of 21 may purchase, consume, or possess alcoholic beverages. A valid ID is required to purchase, consume, or possess alcoholic beverages.
    4. A limit of two alcoholic beverages may be purchased at one time by an individual bearing a legal ID.
    5. No one who is visibly intoxicated may be served, consume, or possess an alcoholic beverage.
    6. Anyone engaged in the sale or serving of alcoholic beverages shall be trained in the following areas:
      1. Recognizing fake IDs and acceptable forms of identification;
      2. Preventing service to minors;
      3. Signs of intoxication; and
      4. Handling disorderly and/or intoxicated customers.
    7. Attendees may be ejected without refund, arrested, or refused sale or possession of alcoholic beverages for any of the following:
      1. Unruly, disruptive, or illegal behavior;
      2. Giving alcoholic beverages to a minor;
      3. Intoxication or impairment; d. Abusive or offensive language or gestures;
      4. Throwing of any objects;
      5. Failure to follow instructions given by event personnel, security, and/or law enforcement; or
      6. Any other conduct deemed inappropriate by event personnel, security, and/or law enforcement.
    8. Adequate security personnel shall be in place to monitor attendee behavior and ensure compliance with this policy and applicable law.
    9. There must be at least one (1) alcohol-free zone, of comparable viewing to alcohol zones, designated and appropriately marked for the event where no alcoholic beverage may be sold, consumed, or possessed.
  3. A separate pre-game Permit may be issued for a Permitted Event that occurs in conjunction with student athletic events under the following terms and conditions:
    1. The area must be for the Permit holder to entertain guests for home sporting events. Attendance is limited to adult patrons and guests who have received a personal written invitation and must not be open to access by the general public.
    2. The Permitted Event must be conducted during pre-game only, last no more than three (3) hours, and end no later than at the beginning of the sporting event.
    3. The Permitted Event must be conducted in a secured area surrounded by a fence or other method to control access to and from the area. There must be no more than two (2) entry points manned by security personnel where identification is checked to verify age. No one under the legal drinking area shall be admitted into the alcohol service and consumption area of a Permitted Event. The area shall be clearly marked and shall be separated in a fashion that entry into the area and exit from the area can be controlled to ensure that only those authorized to enter the area do so and that no alcoholic beverages leave the area. Individuals may not bring in their own Alcoholic Beverage into a designated sale area.
    4. For pre-game permitted events held in specially designated box seat or loge areas, adult patrons and guests may be accompanied by youth for whom they are responsible, but only if such youth are, at all times, under the supervision and control of such adult patrons. Only patrons who hold tickets to seats in those areas shall be allowed into the area during the games.
  4. A Permitted Event must be one requiring paid admission through purchase of a ticket or through payment of a registration fee, or one where admission is by written, personal invitation. Events generally open to participation by the public without admission charges or without written personal invitation shall not be eligible for an Alcoholic Beverage Permit. Only individuals who have purchased a ticket or paid a registration fee for attendance at a permitted event or who have received a written invitation to a Permitted Event, and who are of lawful age to consume alcoholic beverages, will be authorized to possess and consume alcoholic beverages at the Permitted Event.
  5. The serving of Alcoholic Beverages must be part of a planned food and beverage program for the permitted event, rather than a program serving Alcoholic Beverages only. Food must be available at the Permitted Event, and consumption of Alcoholic Beverages and food cannot be the sole purpose of a Permitted Event. Non-alcoholic beverages must be as readily available as Alcoholic Beverages at the Permitted Event.
  6. If a Permitted Event includes the periodic retail sale of Alcoholic Beverages, the general public or any participants of the Permitted Event are not allowed to bring Alcoholic Beverages into the Permitted Event or leave the defined area where possession and consumption is allowed while possession of an Alcoholic Beverage.
  7. Upon receipt of a Permit from the University President, the Permit holder or the Vendor may procure the applicable license to sell Alcoholic Beverages in accordance with the approved Permit.
  8. The Permit shall set forth the time at which sale, service, possession and consumption of Alcoholic Beverages will be permitted, which times shall be strictly enforced. Service and sale of Alcoholic Beverages shall stop at a time in advance of the time of closure of the Permitted Event sufficient to allow an orderly and temperate consumption of the balance of the Alcoholic Beverages then in possession of the participants of the Permitted Event prior to closure of the Permitted Event.
  9. The Permit holder and the Vendor shall assume full responsibility to ensure that no one under the legal drinking age is supplied with any Alcoholic Beverage or allowed to consume any Alcoholic Beverage at the Permitted Event.
    1. The Permit holder must provide proof of insurance coverage including liquor legal liability in the amounts and coverage limits sufficient to meet the needs of the University. The default coverage limit shall be $1,000,000 minimum coverage per occurrence, but the University may approve a different coverage limit in writing and list such limit in the permit. The insurance must list the Permit holder, the Vendor, the University, the SDBOR, and the State of South Dakota as additional insureds. Proof of insurance must be provided to the University in the form of a formal endorsement to the policy evidencing the coverage and the required additional insureds.
    2. The Permit holder and the Vendor must indemnify the University, the SDBOR, and the State of South Dakota for any and all claims that may arise that are related to the sale or consumption of Alcoholic Beverages at the Permitted Event.
    3. For purposes of this section, when the Permit holder is a University employee acting within the course and scope of employment, such Permit holder will not be required to be listed in the insurance policy and will not be required to indemnify the University, the SDBOR, and the State of South Dakota.
    4. For the purposes of this section, when the Vendor has its own insurance coverage including liquor legal liability in the amounts and coverage limits sufficient to meet the needs of the University, the Permit holder’s insurance coverage will not need to (i) include liquor legal liability, or (ii) list the Vendor as an additional insured.
  10. The Permit, any required local catering permit, and applicable state or local licenses to sell Alcoholic Beverages shall be posted in a conspicuous place at the defined area where Alcoholic Beverages are authorized to be sold, prior to any sale of Alcoholic Beverages. Further, the sale, service, and consumption of Alcoholic Beverages pursuant to Permit and license shall be confined to the specific event, area, or activity identified on the Permit application. Any Alcoholic Beverages allowed at the Permitted Event shall be supplied through Vendors to ensure compliance with any food service and pouring rights agreements. In no event shall the University supply or sell Alcoholic Beverages directly.
  11. These terms and conditions shall apply to both University and non-University groups using University Property or facilities.
6. Permission for the sale of Alcoholic Beverages shall be evidenced by issuance of an approved Permit by the University President, or designee, which may be issued only in response to a completed Alcoholic Beverage Sales Permit Application. A Permit may only be issued in conformity with this policy.
7. The University President, or designee, may deny any Alcoholic Beverage Sales Permit Application if the President, or designee, determines that the Alcoholic Beverage Sales Permit Application is, or having Alcoholic Beverages for sale at the event would be inconsistent with this policy, applicable law, or the proper image and mission of the University.
8. Proceeds received by the University from the sales of alcohol on University Property will be allocated and used in conformity with SDBOR Policy, the SDBOR vendor agreement, other applicable University policies and applicable law. During the annual University budget process, the University will allocate a percentage of revenue received from the sale of alcoholic beverages on University Property to student education for the prevention or intervention of alcohol and drug misuse.
9. The University President, or designee, will prepare an annual report of University Permits approved by the University President, or designee, during the last fiscal year and transmit the report to the Executive Director by August 1. The report will contain the following information: (1) the date, (2) a brief description of the event, (3) the Permit holder, (4) the Vendor, (5) the University facility, and (6) description of any alcohol-related incidents.
Procedures
1. Groups or individuals wishing to obtain authorization for the sale of Alcoholic Beverages in accordance with SDBOR Policy 6.14 and this policy must submit a fully completed Alcoholic Beverage Sales Permit Application with the reservation or facility use agreement for review and routing through the applicable facility use reservation process to the University President, or designee.
2. A fully completed Alcoholic Beverage Sales Permit Application and all required documents, including a facility reservation or facility use agreement, security plans, and any other requested information must be submitted within a reasonable time period prior to the proposed event. Once the facility manager has signed, the application and accompanying documents will route through the approved electronic process to the University-designated food and beverage provider, applicant, Safety and Security, and the University President, or designee, for review.
3. The University President, or designee, will review the application, required documents, and internal unit approvals.
4. The University President, or designee, may require additional review of facility use reservations, facility use agreements, security plans, food and Alcoholic Beverage contracts, and other supporting information and documentation by other University officials to inform the President’s, or designee’s, decision whether to approve or deny an application.
  1. If the application is not approved, the University President, or designee, will indicate the reason for the disapproval.
  2. If the application is approved, the University President, or designee, will approve a Permit for the Permitted Event.
5. Following the University President’s, or designee’s, decision and signature, a copy of the fully completed application will be provided to the facility manager.
6. Upon approval of an Alcoholic Beverage Sales Permit Application and receipt of the Permit for a Permitted Event, the Permit holder or University approved Vendor may submit a copy of the Permit with their request for an alcoholic beverage license or a special events license through the local licensing authority in accordance with the limitations of the Permit for the Permitted event, SDBOR Policy 6.14, this policy, SDCL 35-2-6.1, and municipal regulations. No sale of Alcoholic Beverages may occur pursuant to a Permit without such a specified license.
Responsible Administrator
The University President, or designee, is responsible for the annual and ad hoc review of this policy and its procedures, as well as approval of this policy.

Approved by President on 07/21/2016. Revised; Approved by President on 07/29/2021. Revised; Approved by President on 10/04/2022. Revised; Approved by President on 09/29/2023. Revised 01/30/2024 (clerical).

Sources: ; SDBOR Policies and ; University Policy 4:7

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