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S1118......................................................by STATE AFFAIRS
LIQUOR LICENSES - Amends existing law to provide conditions where a
manufacturer, rectifier, wholesaler, stockholder, shareholder, partner or
the owner of any interest in any corporation, association or partnership
financially interested in the manufacture, transportation or sale of liquor
may hold an interest in premises licensed to sell liquor by the drink.
02/08 Senate intro - 1st rdg - to printing
02/09 Rpt prt - to St Aff
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/18 3rd rdg - PASSED - 23-11-1
AYES--Andreason, Boatright, Burtenshaw, Cameron, Crow, Danielson,
Darrington, Davis, Deide, Dunklin, Ingram, Keough, King, McLaughlin,
Riggs, Risch, Schroeder, Sorensen, Stegner, Stennett, Twiggs,
Wheeler, Whitworth
NAYS--Bunderson, Frasure, Geddes, Hawkins, Ipsen, Lee, Noh, Parry,
Richardson, Sandy, Thorne
Absent and excused--Branch
Floor Sponsor - Sorensen
Title apvd - to House
02/19 House intro - 1st rdg - to St Aff
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 53-12-5
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bieter, Black,
Boe, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Gould, Hammond, Hansen(29),
Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kunz,
Limbaugh, Mader, Marley, McKague, Montgomery, Moyle, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Schaefer, Sellman,
Smith, Smylie, Stevenson, Stoicheff, Stone, Tilman, Tippets, Trail,
Watson, Zimmermann
NAYS -- Bell, Bruneel, Geddes, Hadley, Hansen(23), Kendell, Lake,
Linford, Loertscher, Mortensen, Sali, Williams
Absent and excused -- Meyer, Taylor, Wheeler, Wood, Mr Speaker
Floor Sponsor - Deal
Title apvd - to Senate
03/12 To enrol
03/15 Rpt enrol - Pres signed
03/16 Sp signed - to Governor
03/22 Governor signed
Session Law Chapter 141
Effective: 07/01/99
S1118|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1118 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO PERSONS OR ENTITIES QUALIFIED TO HOLD A LIQUOR BY THE DRINK 3 LICENSE; AMENDING SECTION 23-910, IDAHO CODE, TO PROVIDE AN EXCEPTION TO 4 OFFICERS, AGENTS OR EMPLOYEES OF A DISTILLERY, WINERY, BREWERY OR ANY 5 WHOLESALER OR JOBBER OF LIQUOR OR MALT BEVERAGES UNDER CERTAIN CIRCUM- 6 STANCES; AMENDING SECTION 23-911, IDAHO CODE, TO PROVIDE AN EXCEPTION TO 7 THE RESTRICTIONS ON MANUFACTURERS, TRANSPORTERS OR DISTILLERS OF LIQUOR 8 UNDER CERTAIN CIRCUMSTANCES; AND AMENDING SECTION 23-912, IDAHO CODE, TO 9 PROVIDE CONDITIONS WHERE A MANUFACTURER, RECTIFIER, WHOLESALER, STOCK- 10 HOLDER, SHAREHOLDER, PARTNER OR THE OWNER OF ANY INTEREST IN ANY CORPORA- 11 TION, ASSOCIATION OR PARTNERSHIP FINANCIALLY INTERESTED IN THE MANUFAC- 12 TURE, TRANSPORTATION OR SALE OF LIQUOR MAY HOLD AN INTEREST IN A LICENSED 13 PREMISE. 14 Be It Enacted by the Legislature of the State of Idaho: 15 16 SECTION 1. That Section 23-910, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 23-910. PERSONS NOT QUALIFIED TO BE LICENSED. No license shall be issued 19 to: 20 (1) Any person, or any one (1) of its members, officers, or governing 21 board, who has, within three (3) years prior to the date of making applica- 22 tion, been convicted of any violation of the laws of the United States, the 23 state of Idaho, or any other state of the United States, or of the resolutions 24 or ordinances of any county or city of this state, relating to the importa- 25 tion, transportation, manufacture or sale of alcoholic liquor or beer; or who 26 has been convicted of, paid any fine, been placed on probation, received a 27 deferred sentence, received a withheld judgment or completed any sentence of 28 confinement for any felony within five (5) years prior to the date of making 29 application for any license. 30 (2) A person who is engaged in the operation, or interested therein, of 31 any house or place for the purpose of prostitution or who has been convicted 32 of any crime or misdemeanor opposed to decency and morality. 33 (3) A person whose license issued under this act has been revoked; an 34 individual who was a member of a partnership or association which was a licen- 35 see under this act and whose license has been revoked; an individual who was 36 an officer, member of the governing board or one (1) of the ten (10) principal 37 stockholders of a corporation which was a licensee under this act and whose 38 license has been revoked; a partnership or association one (1) of whose mem- 39 bers was a licensee under this act and whose license was revoked; a corpora- 40 tion one (1) of whose officers, member of the governing board or ten (10) 41 principal stockholders was a licensee under the provisions of this act and 42 whose license has been revoked; an association or partnership, one (1) of 43 whose members was a member of a partnership or association licensed under the 44 provisions of this act and whose license has been revoked; a partnership or 2 1 association, one (1) of whose members was an officer, a member of the govern- 2 ing board, or one (1) of the ten (10) principal stockholders of a corporation 3 licensed under the provisions of this act and whose license has been revoked; 4 a corporation, one (1) of whose officers, member of the governing board, or 5 ten (10) principal stockholders was a member of a partnership or association 6 licensed under the provisions of this act and whose license was revoked; a 7 corporation, one (1) of whose officers, member of the governing board, or ten 8 (10) principal stockholders was an officer, member of the governing board, or 9 one (1) of the ten (10) principal stockholders of a corporation licensed 10 under the provisions of this act and whose license was revoked. 11 (4) Any officer, agent, or employee of any distillery, winery, brewery, 12 or any wholesaler, or jobber, of liquor or malt beverages except as pro- 13 vided in section 23-912, Idaho Code . This prohibition shall not apply 14 to officers, agents, or employees of any winery operating a golf course on the 15 same premises as the winery. 16 (5) A person who does not hold a retail beer license issued under the 17 laws of the state of Idaho. 18 (6) Any license, held by any licensee disqualified under the provisions 19 of this section from being issued a license, shall forthwith be revoked by the 20 director. 21 SECTION 2. That Section 23-911, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 23-911. RESTRICTIONS ON MANUFACTURERS, TRANSPORTERS OR DISTILLERS. 24 Except as provided in section 23-912, Idaho Code, nNo man- 25 ufacturer, rectifier, wholesaler, stockholder, shareholder, partner, or the 26 owner of any other interest in any corporations, association or partnership 27 financially interested in the manufacture, transportation or sale of liquor 28 shall furnish, give, rent, lend or sell any equipment or fixtures directly or 29 indirectly, or through a subsidiary or affiliate or by any officer, director, 30 or firm member of the industry or otherwise furnish financial aid to any per- 31 son engaged in the sale of liquor hereunder and no licensee hereunder shall 32 receive or be the beneficiary of any of the benefits hereby prohibited. 33 SECTION 3. That Section 23-912, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 23-912. RESTRICTIONS OF PERSONS INTERESTED IN PREMISES. (1) Except 36 as provided in subsection (2) of this section, nNo manu- 37 facturer, rectifier, wholesaler, stockholder, shareholder, partner or the 38 owner of any other interest in any corporation, association or partnership 39 financially interested in the manufacture, transportation (except public car- 40 riers) or sale of liquor shall hold any interest in any premise licensed here- 41 under for the sale of liquor or receive any rental or remuneration from any 42 such premise. 43 (2) A manufacturer, rectifier, wholesaler, stockholder, share- 44 holder, partner or the owner of any interest in any corporation, association 45 or partnership financially interested in the manufacture, transportation or 46 sale of liquor may hold interest in a licensed premises if the licensed prem- 47 ises serves food cooked on the site of the licensed premises, and the person 48 or entity can show through recordkeeping that no more than fifty percent (50%) 49 of the gross revenue to the licensed premises is derived from the sale of 50 alcoholic beverages on-site. The owner of the licensed premises pursuant to 51 this subsection shall comply with and be subject to all other rules, regula- 3 1 tions or other provisions of law which apply to manufacturers, rectifiers, 2 wholesalers, stockholders, shareholders, partners or the owners of any inter- 3 est in any corporation, association or partnership financially interested in 4 the manufacture, transportation or sale of liquor save and except as such 5 rules, regulations or laws may restrict such sales at the licensed premises. 6 The holder of a license pursuant to this section shall not be disqualified 7 from holding a beer license, a retail wine license or wine by the drink 8 license for the sale of beer or wine at the licensed premises on the grounds 9 that the licensee is also a manufacturer, wholesaler, stockholder, share- 10 holder, partner or the owner of any interest in any corporation, association 11 or partnership financially interested in the manufacture, transportation or 12 sale of liquor, beer or wine. This subsection shall not be deemed to grant a 13 license for the retail sale of liquor by the drink and the license must be 14 obtained through normal lawful means.
STATEMENT OF PURPOSE
RS08724
The purpose of this legislation is to amend Idaho Code to allow an owner or interest
holder in a facility with a state liquor license to also own or hold interest in a distillery
in the State of Idaho, provided that the licensed premises serves food cooked on the
site. Currently, it is legal in the State of Idaho to sell liquor by the drink through a
licensed facility and it is legal to own a distillery. However, Idaho Code prohibits
owning an interest in both practices at the same time. This legislation also requires an
individual who owns or has interest involved in both a liquor licensed premises and
distillery to demonstrate that no more than fifty percent (50 /O) of the gross revenue to
the licensed facility is derived ffom the sale of alcoholic beverages on site.
FISCAL IMPACT
This legislation will have no fiscal impact to the general fund.
CONTACT
Name: Skip Smyser
Agency:
Phone: 342-0777
Statement of Purpose/Fiscal Impact
S 1118