SENATE BILL NO. 1384

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S1384......................................by LOCAL GOVERNMENT AND TAXATION
LIQUOR LICENSES - Amends and adds to existing law relating to liquor
licenses to create an Alcohol Beverage Control Fund and to provide the use
of the fund moneys; to provide for a full service restaurant  and a hotel
liquor license; to remove the requirement that a county license be obtained
for a licensed premises located in an incorporated city; to provide for a
license fee; to allow counties and cities to limit the number of such
licenses; to provide that such licenses are nontransferrable; and to
provide definitions.
                                                                        
02/10    Senate intro - 1st rdg - to printing
02/13    Rpt prt - to St Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1384
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIQUOR LICENSES; AMENDING SECTION 23-940, IDAHO CODE, TO CREATE AN
  3        ALCOHOL BEVERAGE CONTROL FUND AND TO PROVIDE  FOR  THE  USE  OF  THE  FUND
  4        MONEYS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW
  5        SECTION  23-957,  IDAHO  CODE,  TO  PROVIDE  FOR A FULL SERVICE RESTAURANT
  6        LIQUOR LICENSE, TO PROVIDE THAT A COUNTY LICENSE IS NOT  REQUIRED   FOR  A
  7        LICENSED  PREMISES  LOCATED  IN  AN  INCORPORATED  CITY,  TO PROVIDE FOR A
  8        LICENSE FEE, TO ALLOW COUNTIES AND CITIES TO  LIMIT  THE  NUMBER  OF  SUCH
  9        LICENSES, TO PROVIDE THAT SUCH LICENSES ARE NONTRANSFERABLE AND TO PROVIDE
 10        DEFINITIONS; AND AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION
 11        OF  A  NEW  SECTION  23-958,  IDAHO  CODE,  TO  PROVIDE FOR A HOTEL LIQUOR
 12        LICENSE, TO PROVIDE FOR REQUIREMENTS FOR SUCH LICENSE, TO PROVIDE  THAT  A
 13        COUNTY  LICENSE  IS  NOT  REQUIRED  FOR  A LICENSED PREMISES LOCATED IN AN
 14        INCORPORATED CITY, TO PROVIDE FOR A LICENSE FEE,  TO  ALLOW  COUNTIES  AND
 15        CITIES  TO  LIMIT  THE  NUMBER  OF  SUCH LICENSES AND TO PROVIDE THAT SUCH
 16        LICENSES ARE NONTRANSFERABLE.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION 1.  That Section 23-940, Idaho Code, be, and the  same  is  hereby
 19    amended to read as follows:
                                                                        
 20        23-940.  DISPOSITION  OF  FUNDS FEES -- ALCOHOL BEVERAGE CONTROL FUND. (1)
 21    All moneys collected by the director from license fees  pursuant  to  sections
 22    23-957  and 23-958, Idaho Code, shall be remitted to the alcohol beverage con-
 23    trol fund which is hereby created in the state treasury. Moneys in the alcohol
 24    beverage control fund may be appropriated for the operational expenses of  the
 25    alcohol  beverage control bureau of the Idaho state police in carrying out the
 26    provisions of and in the performance of all of its duties under this title and
 27    the rules promulgated pursuant thereto by the  director  of  the  Idaho  state
 28    police.
 29        (2)  All other moneys collected by the director under this act title shall
 30    be  paid  over  to the state treasurer and placed to the credit of the general
 31    fund.
                                                                        
 32        SECTION 2.  That Chapter 9, Title 23, Idaho Code,  be,  and  the  same  is
 33    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 34    ignated as Section 23-957, Idaho Code, and to read as follows:
                                                                        
 35        23-957.  FULL SERVICE RESTAURANT LIQUOR LICENSE. (1) Notwithstanding  sec-
 36    tion  23-903, Idaho Code, qualified applicants may apply to the director for a
 37    full service restaurant liquor license within or outside  of  an  incorporated
 38    city.
 39        (2)  As  an exception to the provisions of section 23-916, Idaho Code, the
 40    applicant for a full service restaurant liquor license  as  provided  in  this
 41    section  is  not  required  to obtain a full service restaurant liquor license
                                                                        
                                           2
                                                                        
  1    from a county, provided that the full service restaurant premises  is  located
  2    wholly within the limits of an incorporated city.
  3        (3)  As  an exception to the provisions of section 23-904, Idaho Code, the
  4    annual fee for the full service restaurant liquor  license  provided  in  this
  5    section  shall be two thousand five hundred dollars ($2,500) and shall be paid
  6    to and collected by the director prior to the issuance  of  the  license.  The
  7    license  fee  provided  in  this subsection is exclusive of and in addition to
  8    other license fees chargeable in the state of Idaho. The  county  or  incorpo-
  9    rated  city  which  issues a full service restaurant liquor license under this
 10    section may impose and collect a fee for its use and  benefit  not  to  exceed
 11    seventy-five  percent  (75%) of the amount of the license fee collected by the
 12    director as provided in this subsection.
 13        (4)  A county in an unincorporated area or an incorporated city may  limit
 14    the  number  of full service restaurant liquor licenses issued under this sec-
 15    tion.
 16        (5)  A full service restaurant liquor license issued  under  this  section
 17    shall  not  be transferred or sold. Any full service restaurant liquor license
 18    issued pursuant to this section shall revert to  the  director  when,  in  the
 19    director's  judgment, the licensee ceases to operate as a full service restau-
 20    rant as defined in this section.
 21        (6)  The following definitions shall apply to this section:
 22        (a)  "Dining seating" means table seating that is designed to  accommodate
 23        patrons  for  the  purpose  of consuming food, and located in areas of the
 24        premises regularly used by patrons daily during normal business hours.
 25        (b)  "Distinctly different" means meals that differ substantially in their
 26        principal item. For example, different kinds of sandwiches  are  not  dis-
 27        tinct  from  each other and different kinds of pizza are not distinct from
 28        each other.
 29        (c)  "Full service  restaurant"  means  a  restaurant  that  is  primarily
 30        engaged  in  providing  food  services to patrons who order and are served
 31        while seated, i.e., waiter or waitress service, and who pay after  eating.
 32        In  addition,  a  full service restaurant must meet the following require-
 33        ments:
 34             (i)   The provisions of section  23-927,  Idaho  Code,  shall  apply,
 35             except  that  the  sale  of  alcoholic  beverages  must be limited to
 36             between the hours of 10 o'clock a.m. and 11 o'clock p.m.;
 37             (ii)  The restaurant is advertised and held out to the public as pri-
 38             marily a food eating establishment;
 39             (iii) At least forty percent (40%)  of  the  restaurant's  consumable
 40             purchases  are derived from purchases of food and nonalcoholic bever-
 41             ages;
 42             (iv)  The restaurant must make available to its patrons  an  offering
 43             of  five  (5)  distinctly different regular meals during the hours of
 44             liquor sales;
 45             (v)   The restaurant must provide only dining seating;
 46             (vi)  The restaurant must not offer or advertise discount prices  for
 47             alcoholic beverages; and
 48             (vii) No off restaurant premises sale of liquor is permitted.
 49        (d)  "Regular  meal"  means  a combination of food items that are prepared
 50        and cooked on the full service restaurant premises that includes  one  (1)
 51        principal  item  and  one  (1)  side dish. Examples of principal items are
 52        fish, beef, chicken, pasta and sandwich. Examples of side dishes are pota-
 53        toes, potato salad, rice, french fries, beans and vegetables.
 54        (e)  "Restaurant" means a restaurant as defined in section  23-942,  Idaho
 55        Code.
                                                                        
                                           3
                                                                        
  1        SECTION  3.  That  Chapter  9,  Title  23, Idaho Code, be, and the same is
  2    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  3    ignated as Section 23-958, Idaho Code, and to read as follows:
                                                                        
  4        23-958.  HOTEL  LIQUOR  LICENSE. (1) Notwithstanding section 23-903, Idaho
  5    Code, qualified applicants may apply  to  the  director  for  a  hotel  liquor
  6    license  within or outside an incorporated city. To qualify for a hotel liquor
  7    license, the hotel must meet the following requirements:
  8        (a)  The provisions of section 23-927, Idaho  Code,  shall  apply,  except
  9        that  the sale of alcoholic beverages must be limited to between the hours
 10        of 10 o'clock a.m. and 12 o'clock a.m.;
 11        (b)  The hotel must be a building or structure kept, used,  maintained  or
 12        advertised as an inn, hotel or public lodging house, or place where sleep-
 13        ing  accommodations  are  furnished  for hire to transient guests, whether
 14        with or without meals, and must have a minimum of sixty  (60)  rooms  used
 15        for the accommodation of transient guests;
 16        (c)  The  hotel  must not offer or advertise discount prices for alcoholic
 17        beverages; and
 18        (d)  No off hotel premises sale of liquor is permitted.
 19        (2)  As an exception to the provisions of section 23-916, Idaho Code,  the
 20    applicant  for  a  hotel  liquor  license  as  provided in this section is not
 21    required to obtain a hotel liquor license from a  county,  provided  that  the
 22    hotel premises is located wholly within the limits of an incorporated city.
 23        (3)  As  an exception to the provisions of section 23-904, Idaho Code, the
 24    annual fee for the hotel liquor license provided in this section shall be  two
 25    thousand  five  hundred dollars ($2,500) and shall be paid to and collected by
 26    the director prior to the issuance of the license. The license fee provided in
 27    this subsection is exclusive of and in addition to other license fees  charge-
 28    able  in  the  state  of Idaho. The county or incorporated city which issues a
 29    hotel liquor license under this section may impose and collect a fee  for  its
 30    use  and benefit not to exceed seventy-five percent (75%) of the amount of the
 31    license fee collected by the director as provided in this subsection.
 32        (4)  A county in an unincorporated area or an incorporated city may  limit
 33    the number of hotel liquor licenses issued under this section.
 34        (5)  A  hotel liquor license issued under this section shall not be trans-
 35    ferred or sold. Any hotel liquor license issued pursuant to this section shall
 36    revert to the director when, in the director's judgment, the  licensee  ceases
 37    to operate as a hotel as provided in subsection (1) of this section.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15961

This legislation relates to liquor licenses in Idaho; amending
Section 23-940, Idaho Code, to create an Alcohol Beverage Control
Fund and to provide for the use of the fund moneys; amending
Chapter 9, Title 23, Idaho Code, by the addition of a new Section
23-957, Idaho Code, to provide for a full service restaurant
liquor license, to provide for a license fee, to allow counties
and cities to limit the number of such licenses, to provide that
such licenses are nontransferable and to provide definitions; and
amending Chapter 9, Title 23, Idaho Code, by the addition of a
new Section 23-958, Idaho Code, to provide for a hotel liquor
license, to provide for requirements for such license, to provide
for a license fee, to allow counties and cities to limit the
number os such licenses and to provide that such licenses are
nontransferable.



                           FISCAL NOTE

There will be no cost to the General Fund. There could be a
fiscal benefit to local government.




Contact:  Senator Skip Brandt
          (208) 332-1326


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1384