2006 Legislation
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SENATE BILL NO. 1388 – Liquor account, distribution

SENATE BILL NO. 1388

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Bill Status



S1388......................................................by STATE AFFAIRS
LIQUOR ACCOUNT - Amends existing law to reallocate the transfer and
appropriation of moneys in the Liquor Account.
                                                                        
02/13    Senate intro - 1st rdg - to printing
02/14    Rpt prt - to St Aff
02/20    Rpt out - rec d/p - to 2nd rdg
02/21    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 25-7-3
      AYES -- Brandt(Harper), Broadsword, Burkett, Burtenshaw, Cameron,
      Compton, Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Kelly,
      Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKenzie,
      Schroeder, Stegner, Stennett, Sweet, Werk
      NAYS -- Andreason, Bunderson, Hill, Jorgenson, Marley, Richardson,
      Williams
      Absent and excused -- Coiner, Gannon, Pearce
    Floor Sponsors - Cameron, Stegner, Compton & Corder
    Title apvd - to House
02/24    House intro - 1st rdg - to St Aff
03/09    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/27    3rd rdg - PASSED - 63-0-7
      AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Jaquet, Kemp, Lake,
      LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller,
      Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Snodgrass,
      Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Anderson, Clark, Crow, Henbest, Henderson,
      Smith(24), Smylie
    Floor Sponsor - Bell
    Title apvd - to Senate
03/28    To enrol
03/29    Rpt enrol - Pres signed - Sp signed
03/30    To Governor
03/31    Governor signed
         Session Law Chapter 289
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1388
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE LIQUOR ACCOUNT; AMENDING SECTION 23-404, IDAHO CODE,  TO
  3        REALLOCATE THE TRANSFER AND APPROPRIATION OF MONEYS IN THE LIQUOR ACCOUNT,
  4        TO  MAKE TECHNICAL CORRECTIONS AND TO PROVIDE CORRECT TERMINOLOGY; DECLAR-
  5        ING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 23-404, Idaho Code, be, and the  same  is  hereby
  8    amended to read as follows:
                                                                        
  9        23-404.  DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT. (1) The moneys received
 10    into the liquor account shall be transferred or appropriated as follows:
 11        (a)  An  amount of money equal to the actual cost of purchase of alcoholic
 12        liquor and payment of expenses of administration and operation of the dis-
 13        pensary, as determined by the superintendent and  certified  quarterly  to
 14        the  state  controller,  shall be transferred back to the dispensary; pro-
 15        vided, that the amount so transferred back for administration  and  opera-
 16        tion  of  the  dispensary  shall  not  exceed  the amount authorized to be
 17        expended by regular appropriation authorization.
 18        (b)  From fiscal year 2006 through fiscal year 2009, forty  percent  (40%)
 19        of the balance remaining after transferring the amounts authorized by sub-
 20        section  paragraph  (a)  above: of this subsection shall be transferred or
 21        appropriated pursuant to this paragraph (b). Beginning in fiscal year 2010
 22        the percentage transferred pursuant to this paragraph (b)  shall  increase
 23        to  forty-two  percent (42%) with an increase of two percent (2%) for each
 24        subsequent fiscal year thereafter until fiscal year 2014  when  such  per-
 25        centage shall be fifty percent (50%).
 26             (i)   For  fiscal year 2006 and through fiscal year 2009, one million
 27             eight hundred thousand dollars ($1,800,000) shall be appropriated and
 28             paid to the cities and counties as set forth in paragraphs (c)(i) and
 29             (c)(ii) of this subsection;
 30             (ii)  One million two hundred thousand dollars ($1,200,000) shall  be
 31             transferred  annually to the alcoholism treatment account fund, which
 32             is hereby created in the trust and agency fund;
 33             (iii) Three hundred thousand dollars ($300,000) shall be  transferred
 34             annually  to  the  community  college  account,  created  by  section
 35             33-2139, Idaho Code;
 36             (iiiv)  One  million  two hundred thousand dollars ($1,200,000) shall
 37             be transferred annually to the public school income fund, as  defined
 38             in section 33-903, Idaho Code;
 39             (iv)  Four   million   nine   hundred   forty-five  thousand  dollars
 40             ($4,945,000) shall be transferred annually to the general account  in
 41             the state operating fund; and
 42             (v)   Six  hundred  fifty thousand dollars ($650,000) shall be trans-
 43             ferred annually to the cooperative welfare account in  the  dedicated
                                                                        
                                           2
                                                                        
  1             fund; and
  2             (vi)  The balance shall be transferred to the general fund.
  3        (c)  The  remainder  of the moneys received in the liquor account shall be
  4        appropriated and paid as follows:
  5             (i)  Forty percent (40%) of the balance remaining after the transfers
  6             authorized by paragraphs (a) and (b) above of  this  subsection  have
  7             been  made is hereby appropriated to and shall be paid to the several
  8             counties. Each county shall be entitled to an amount in  the  propor-
  9             tion  that  liquor sales through the dispensary in that county during
 10             the state's previous fiscal year bear to total liquor  sales  through
 11             the  dispensary in the state during the state's previous fiscal year,
 12             except that no county shall be entitled to an amount less  than  that
 13             county  received  in distributions from the liquor account during the
 14             state's fiscal year 1981.
 15             (dii) Sixty percent (60%) of the balance remaining after  the  trans-
 16             fers  authorized  by  paragraphs (a) and (b) above of this subsection
 17             have been made is hereby appropriated to and shall  be  paid  to  the
 18             several cities as follows:
 19                  (i)1.  Ninety  percent  (90%)  of the amount appropriated to the
 20                  cities shall be distributed to those cities which have a  liquor
 21                  store  or distribution station located within the corporate lim-
 22                  its of the city. Each such city shall be entitled to  an  amount
 23                  in  the  proportion  that liquor sales through the dispensary in
 24                  that city during the state's previous fiscal year bear to  total
 25                  liquor  sales  through  the  dispensary  in the state during the
 26                  state's previous fiscal year, except that no city shall be enti-
 27                  tled to an amount less than that city received in  distributions
 28                  from the liquor account during the state's fiscal year 1981;
 29                  (ii)2.  Ten percent (10%) of the amount appropriated to the cit-
 30                  ies  shall  be  distributed  to those cities which do not have a
 31                  liquor store or distribution station located within  the  corpo-
 32                  rate  limits of the city. Each such city shall be entitled to an
 33                  amount in the proportion that that city's  population  bears  to
 34                  the  population  of  all cities in the state which do not have a
 35                  liquor store or distribution station located within  the  corpo-
 36                  rate  limits  of the city, except that no city shall be entitled
 37                  to an amount less than that city received in distributions  from
 38                  the liquor account during the state's fiscal year 1981.
 39        (2)  All  transfers  and distributions shall be made periodically, but not
 40    less frequently than quarterly but, the apportionments made to any  county  or
 41    city,  which  may during the succeeding three (3) year period be found to have
 42    been in error either of computation or transmittal, shall be corrected  during
 43    the  fiscal  year of discovery by a reduction of apportionments in the case of
 44    over-apportionment or by an increase of apportionments in the case  of  under-
 45    apportionment.  The decision of the superintendent on entitlements of counties
 46    and cities shall be final, and shall not be subject to judicial review.
                                                                        
 47        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 48    declared to exist, this act shall be in full force and effect on and after its
 49    passage and approval, and retroactively to July 1, 2005.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15494

In 1939 legislation was passed that created the Idaho State Liquor
Dispensary.  The Liquor dispensary was charged with administering
the liquor control laws and collecting and distributing the liquor
funds. The final legislation in 1939 split any revenues from liquor
sales fifty-fifty between the counties of Idaho and the State
General Fund.  In 1953, the Distribution was amended to include
Idaho cities.  Today, the liquor revenues fund various programs
throughout local government and the state. Some of the programs
funded include substance abuse treatment, community colleges,
public schools, health and human services, and public safety.
During the 2005 legislative session, the state legislature was
faced with a structurally unbalanced General Fund budget and a one-
time opportunity to purchase water rights that would benefit
cities, counties, and the state.  So the legislature "borrowed"
$7.2 million from unexpected growth in the 2005 liquor revenues to
purchase the water rights and allow the State General Fund to
remain intact.
This bill distributes $7.2 million dollars back to local government
over a period of four years as well as re-aligns the liquor revenue
distribution to allow cities, counties, and the state to share in
the revenue growth.
The overall philosophy behind this proposed legislation is to
ensure that local government liquor distributions remained
unharmed.  Make certain that revenues "borrowed" by the state to
fund the water purchase agreement in 2005 are paid back. And that
the distribution of future revenues is adjusted over a period of
time so that government entities which share in the costs of public
safety and health and human services share equally in the revenue
source for such programs.
The changes include:
     Four $1.8 million dollar payments per year from the state to
     the cities and the counties of Idaho in 2006 through 2009;
     A structural distribution change from outlined dollar amounts
     to a percentage basis distribution; and
     A phased in adjustment to the allocation of funds over a
     period of 10 years.



                           FISCAL NOTE

In fiscal year 2006, the net impact to the State General Fund would
be an increase of $2,600,000.00.  Starting in fiscal year     2010,
the State General Fund would receive a 2% increase in the total net
liquor funds to distribute.  The State General Fund will continue
to receive a 2% increase each fiscal year until 2014, at which
point the state and local governments would share equally in the
distribution of liquor revenues.




Sponsors: Senators Cameron, Corder, Compton & Stegner
Representatives Bell, Bolz, Deal & Pasley-Stuart
Contact: Amy Castro, Legislative Budget & Policy 
Phone: 334-4745


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1388