Watertown City Council Addresses Liquor License Revisions; Councilman Warns of Regulatory Challenges
- Steve Jurrens
- Oct 8
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council has concluded its first reading of a proposed ordinance that would revise Chapter 2.02 concerning "on sale" liquor licenses for full-service restaurants. Despite a debate over the inclusion of language prohibiting "mind-altering consumables or inhalants," the Council ultimately agreed to advance the ordinance for a second reading in its original form.
The measure, designed to create a more accessible and distinct license category for food-focused establishments that serve 60% food and 40% liquor, moved to the second reading scheduled for October 20.
Focus Shifts to Consumable Prohibition
During the reading, the discussion centered on a clause in the definition of a full-service restaurant, which would exclude an establishment that "provides mind-altering consumables or inhalants." Councilman Heuer questioned the sudden appearance of the language, noting that it had not been part of prior work session discussions. He reasoned that it acts as an inadvertent prohibition on increasingly popular products like hemp-derived THC beverages.
Councilman Jurrens agreed, calling the inclusion of the language "slipping something in" and emphasizing the need for clarity, particularly regarding how revenue from such items would be classified under the mandated 60% requirement for food and non-alcoholic beverage sales.
· Enforcement Uncertainty: The Council and City Attorney Lisa Carrico debated whether striking the language would trigger a need for an additional first reading, thereby delaying the ordinance. The City Attorney indicated that because the definition is "the crux of the ordinance," a substantive change would require a second first reading.
· Classification Concerns: City Manager Alan Stager cautioned that attempting to define and regulate every non-food, non-alcoholic item—including the mind-altering consumables—could make the ordinance "unruly and impossible to interpret." He suggested the Council could remain silent on the issue and let state law ultimately catch up.
· Public Safety Insight: Watertown Police Chief Tim Toomey provided context, explaining the current legal complexity of Delta-9 and other hemp derivatives. He noted that the psychoactive drinks currently on the market often circumvent the state's legal limits through labeling, creating a complex regulatory environment for the state itself.
Toward the end of the debate, the consensus shifted from amending the ordinance immediately to ensuring the core purpose of the law—to create a new restaurant license—was not further delayed.
Councilman Jurrens, the primary sponsor of the changes, ultimately withdrew his push to strike the language, saying, "Let's just leave it the way it is and send it through first reading... We can fix it in two months, or six months, or when everyone thinks that it's time to fix."
The Mayor stressed that the persistent difficulties in addressing the issue stem from the state's existing, decades-old liquor laws.
The Council's decision allows the revised ordinance, which also includes provisions for a midnight closing time, a ban on video lottery, and annual third-party audits, to remain on track for its second reading and final disposition on October 20th.
At that time, a separate fee resolution will also be presented to set the cost of the new license.
