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H0435......................................................by STATE AFFAIRS
LIQUOR DISPENSARY - Amends existing law to authorize the State Liquor
Dispensary to buy, import, transport, store, sell and deliver nonalcohol
merchandise; to authorize the superintendent of the State Liquor Dispensary
to impose surcharges and to allow discounts relating to alcoholic liquor
and all other merchandise sold; to prohibit certain sales of merchandise on
behalf of the dispensary by vendors of any state liquor store or special
distributor; to require all revenues derived from the sale of other
merchandise to be paid into the State Liquor Account; to provide for the
appropriation of moneys in the State Liquor Account for the purchase of
nonalcohol merchandise; to require all revenues derived from the sale of
all other merchandise to be deposited with the State Treasurer to the
credit of the Liquor Fund; and to include sales tax collected on the retail
sale of all other merchandise by and on behalf of the superintendent of the
State Liquor Dispensary among items credited to the Liquor Account.
01/23 House intro - 1st rdg - to printing
01/24 Rpt prt - to St Aff
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/08 3rd rdg - PASSED - 61-7-2
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Cannon,
Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Hart, Harwood, Henbest, Henderson,
Jaquet, Kemp, Lake, Martinez, McGeachin, McKague, Miller, Mitchell,
Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
Roberts, Rusche, Rydalch, Sayler, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Mr. Speaker
NAYS -- Crow, LeFavour, Loertscher, Mathews, Sali, Schaefer, Wood
Absent and excused -- Bradford, Garrett
Floor Sponsor - Snodgrass
Title apvd - to Senate
02/09 Senate intro - 1st rdg - to St Aff
02/13 Rpt out - rec d/p - to 2nd rdg
02/14 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 25-9-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burtenshaw,
Cameron, Coiner, Compton, Corder, Darrington, Goedde, Jorgenson,
Kelly, Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKenzie,
Schroeder, Stegner, Stennett, Sweet, Werk
NAYS -- Burkett, Davis, Fulcher, Geddes, Hill, Marley, Pearce,
Richardson, Williams
Absent and excused -- Gannon
Floor Sponsor - McKenzie
Title apvd - to House
02/28 To enrol
03/01 Rpt enrol - Sp signed
03/02 Pres signed
03/03 To Governor
03/08 Governor signed
Session Law Chapter 18
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 435
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE STATE LIQUOR DISPENSARY; AMENDING SECTION 23-203, IDAHO CODE,
3 TO AUTHORIZE THE STATE LIQUOR DISPENSARY TO BUY, IMPORT, TRANSPORT, STORE,
4 SELL AND DELIVER CERTAIN NONALCOHOL MERCHANDISE AND TO MAKE A TECHNICAL
5 CORRECTION; AMENDING SECTION 23-217, IDAHO CODE, TO AUTHORIZE THE SUPERIN-
6 TENDENT OF THE STATE LIQUOR DISPENSARY TO IMPOSE CERTAIN SURCHARGES AND
7 ALLOW CERTAIN DISCOUNTS RELATING TO ALCOHOLIC LIQUOR AND ALL OTHER MER-
8 CHANDISE SOLD; AMENDING SECTION 23-309, IDAHO CODE, TO PROHIBIT CERTAIN
9 SALES OF MERCHANDISE ON BEHALF OF THE DISPENSARY BY VENDORS OF ANY STATE
10 LIQUOR STORE OR SPECIAL DISTRIBUTOR; AMENDING SECTION 23-401, IDAHO CODE,
11 TO REQUIRE ALL REVENUES DERIVED FROM THE SALE OF OTHER MERCHANDISE TO BE
12 PAID INTO THE LIQUOR ACCOUNT; AMENDING SECTION 23-402, IDAHO CODE, TO PRO-
13 VIDE FOR THE APPROPRIATIONS OF CERTAIN MONEYS IN THE STATE LIQUOR FUND FOR
14 THE PURCHASE OF NONALCOHOL MERCHANDISE SOLD THROUGH THE DISPENSARY; AMEND-
15 ING SECTION 23-407, IDAHO CODE, TO REQUIRE ALL REVENUES DERIVED FROM THE
16 SALE OF ALL OTHER MERCHANDISE TO BE DEPOSITED WITH THE STATE TREASURER TO
17 THE CREDIT OF THE LIQUOR FUND AND TO MAKE A TECHNICAL CORRECTION; AND
18 AMENDING SECTION 63-3638A, IDAHO CODE, TO INCLUDE SALES TAX COLLECTED ON
19 THE RETAIL SALE OF ALL OTHER MERCHANDISE BY AND ON BEHALF OF THE SUPERIN-
20 TENDENT OF THE STATE LIQUOR DISPENSARY AMONG ITEMS TO BE CREDITED TO THE
21 LIQUOR ACCOUNT.
22 Be It Enacted by the Legislature of the State of Idaho:
23 SECTION 1. That Section 23-203, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 23-203. POWERS AND DUTIES. The dispensary shall have the following gen-
26 eral powers and duties:
27 (a) Regulation of Liquor Traffic. To permit, license, inspect, and regu-
28 late the manufacture, importation, transportation, storage, sale, and delivery
29 of alcoholic liquor for purposes permitted by this act.
30 (b) Traffic in Liquor. To buy, import, transport, store, sell, and
31 deliver alcoholic liquor.
32 (c) Operation of Liquor Stores. To establish, maintain, and discontinue
33 warehouses, state liquor stores and distribution stations, and in the opera-
34 tion thereof to buy, import, transport, store, sell and deliver such other
35 nonalcohol merchandise as may be reasonably related to its sale of alcoholic
36 liquor.
37 (d) Acquisition of Real Estate. To acquire, buy, and lease real estate,
38 and to improve and equip the same for the conduct of its business.
39 (e) Acquisition of Personal Property. To acquire, buy, and lease personal
40 property necessary and convenient for the conduct of its business.
41 (f) Making Reports. To report to the governor annually, and at such other
42 times as he may require, concerning the condition, management, and financial
43 transactions of the dispensary.
2
1 (g) General Powers. To do all things necessary and incidental to its
2 powers and duties under this act.
3 The dispensary shall so exercise its powers as to curtail the intemperate
4 use of alcoholic beverages. It shall not attempt to stimulate the normal
5 demands of temperate consumers thereof, irrespective of the effect on the rev-
6 enue derived by the state from the resale of intoxicating liquor.
7 SECTION 2. That Section 23-217, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 23-217. SURCHARGE ADDED TO PRICE OF GOODS ALCOHOLIC LIQUOR AND ALL OTHER
10 MERCHANDISE SOLD -- COLLECTION AND REMISSION BY SUPERINTENDENT. (1) The super-
11 intendent of the state liquor dispensary is hereby authorized and directed to
12 include in the price of goods hereafter alcoholic liquor and all other mer-
13 chandise sold in the dispensary, and its branches, a surcharge equal to two
14 percent (2%) of the current price per unit computed to the nearest multiple of
15 five cents (5¢).
16 (2) After the price of the surcharge has been included, the superintend-
17 ent of the state liquor dispensary is hereby authorized and directed to allow
18 a discount of five percent (5%) from the price of each order of goods alco-
19 holic liquor and all other merchandise sold to any licensee, as defined in
20 section 23-902(7), Idaho Code.
21 (3) The surcharge imposed pursuant to this section shall be collected and
22 credited monthly to the drug court, mental health court and family court ser-
23 vices fund, as set forth in section 1-1625, Idaho Code.
24 SECTION 3. That Section 23-309, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 23-309. SALES. No vendor of any state liquor store or special distributor
27 shall sell any alcoholic liquor or any other merchandise on behalf of the dis-
28 pensary except for cash, check, money order, credit card, electronic funds
29 transfer or debit card. In addition, the dispensary shall, under such rules as
30 may be adopted by it, authorize the vendor of a state liquor store or special
31 distributor to accept a check, credit cards, electronic funds transfer or
32 debit card from persons licensed for the retail sale of liquor by the drink
33 pursuant to chapter 9, title 23, Idaho Code, as payment for purchases from the
34 dispensary. Dishonor of any credit device given by such person shall consti-
35 tute grounds for suspension or revocation of such person's license pursuant to
36 section 23-933, Idaho Code, in addition to any other remedy provided by law.
37 SECTION 4. That Section 23-401, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 23-401. LIQUOR ACCOUNT CREATED. The state treasurer shall be custodian of
40 an account in the agency asset fund, which is hereby created, to be known as
41 the "liquor account," into which shall be paid all revenues derived from sales
42 of alcoholic beverages and other merchandise, excise taxes, licenses, permits,
43 fees, profits on sales, sales of equipment and supplies, and all other moneys
44 accruing or received under any of the provisions of this act. All moneys,
45 properties, buildings, plants, apparatus, real estate, securities acquired by
46 or through the moneys belonging to the liquor account, including interest
47 earned thereon, shall be the property of the liquor account.
48 SECTION 5. That Section 23-402, Idaho Code, be, and the same is hereby
3
1 amended to read as follows:
2 23-402. APPROPRIATION. All moneys appropriated for, accruing to, or
3 received by said fund are hereby appropriated for the purpose of this act for
4 the purchase of alcoholic liquor, and the purchase of other nonalcohol mer-
5 chandise sold through the dispensary and payment of expenses of administration
6 and operation of the dispensary, and the same shall be paid out by the state
7 treasurer only upon vouchers prepared and certified to by the dispensary and
8 approved by the state board of examiners.
9 SECTION 6. That Section 23-407, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 23-407. DEPOSIT OF REVENUE. It shall be the duty of all special distribu-
12 tors, vendors, officers, agents, and employees to report and pay over to the
13 dispensary, in such manner and pursuant to such regulations rules as may be
14 adopted by it, all revenues derived from the sale of alcoholic beverages, all
15 revenues derived from the sale of all other merchandise sold on behalf of the
16 dispensary, excise taxes, licenses, permits, fees, profits on sales, or other
17 revenues resulting from the operation of this act, and the dispensary shall
18 deposit the same with the state treasurer to the credit of the liquor fund.
19 SECTION 7. That Section 63-3638A, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 63-3638A. SALES TAX ON LIQUOR TO BE PAID TO LIQUOR ACCOUNT. Notwithstand-
22 ing the provisions of section 63-3638, Idaho Code, the sales tax collected on
23 the retail sale of liquor and all other merchandise by or on behalf of the
24 superintendent of the state liquor dispensary shall be credited directly to
25 the liquor account, and shall not be or become a part of the sales tax
26 account.
STATEMENT OF PURPOSE
RS 15382C2
This legislation clarifies the Liquor Dispensary's authority to
sell non-alcohol merchandise in state liquor stores and contract
stores where the merchandise is reasonably related to the
Dispensary's exclusive authority to import and sell alcoholic
liquor (e.g., drink mixes such as Bloody Mary mix or tonic water,
specialty olives and onions used in mixed drinks, drink mixing
implements such as shot glasses and mixers). The essential
purpose is to allow sales of related non-alcohol merchandise for
purposes of customer convenience. This bill provides that the
sales tax on all items sold through the Dispensary remains in the
Liquor Fund for distribution, including sales tax on non-alcohol
merchandise. This bill clarifies that the surcharge applicable
to sales of alcoholic liquors by the Dispensary would apply
equally to non-alcohol merchandise.
FISCAL NOTE
There will be no fiscal impact from the passage of this bill.
The Dispensary has long sold non-alcohol merchandise for customer
convenience. This bill merely clarifies the Dispensary's
authority to continue to do so and treats all merchandise sold by
the Dispensary equally with respect to disposition of sales tax
proceeds and application of the Dispensary's surcharge for the
benefit of the drug courts. If this bill is not passed, there
may be a negative fiscal impact from elimination of sales of non-
alcohol merchandise by the Dispensary.
Contact
Name: J.M. "Dyke" Nally, Superintendent
Agency: Liquor Dispensary
Phone: 208-947-9402
STATEMENT OF PURPOSE/FISCAL NOTE H 435