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SENATE BILL NO. 1223

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Daily Data Tracking History

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S1223......................................................by STATE AFFAIRS
LIQUOR - SURCHARGE - Amends existing law to authorize the superintendent of
the Liquor Dispensary to establish the rate of surcharge for sales to
liquor by the drink licensees by rule; and to eliminate a discount.

02/15    Senate intro - 1st rdg - to printing
02/16    Rpt prt - to St Aff
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
03/01    3rd rdg - FAILED - 13-22-0
      AYES--Bunderson, Cameron, Darrington, Davis, Frasure, Geddes,
      Hawkins, Ipsen, Lee, Parry, Richardson, Thorne, Twiggs
      NAYS--Andreason, Boatright, Branch, Burtenshaw, Crow, Danielson,
      Deide, Dunklin, Ingram, Keough, King, McLaughlin, Noh, Riggs, Risch,
      Sandy, Schroeder, Sorensen, Stegner, Stennett, Wheeler, Whitworth
      Absent and excused--None
    Floor Sponsor - Bunderson
    Filed with Secretary of the Senate

Bill Text

S1223


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1223

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO SALES OF LIQUOR TO LICENSEES; AMENDING SECTION 23-217, IDAHO CODE,
 3        TO AUTHORIZE THE SUPERINTENDENT TO ESTABLISH THE SURCHARGE  RATE  BY  RULE
 4        AND TO ELIMINATE A DISCOUNT.

 5    Be It Enacted by the Legislature of the State of Idaho:

 6        SECTION  1.  That  Section  23-217, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        23-217.  SURCHARGE ADDED TO PRICE OF GOODS SOLD -- COLLECTION  AND  REMIS-
 9    SION  BY SUPERINTENDENT. (a) The superintendent of the state liquor dispensary
10    is hereby authorized and directed to include in the price of  goods  hereafter
11    sold  in  the dispensary, and its branches, a surcharge  equal to fifteen
12    per cent (15%)   at a percentage established by rule  of  the
13    current  price  per  unit computed to the nearest multiple of five cents (5[).
14     Provided, however, that after  the  price  of  the  surcharge  has  been
15    included  the  superintendent  of the state liquor dispensary is hereby autho-
16    rized and directed to allow a discount of five per cent (5%) from the price of
17    each order of goods sold to any licensee,  as  defined  in  section  23-902e.,
18    Idaho Code. 
19        (b)  The surcharge imposed pursuant to this section shall be collected and
20    credited to the liquor account.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 09071

The purpose of this legislation is to do the following:

    1. Eliminate the 5% exclusive general sales discount given by
    the Idaho State Liquor Dispensary (ISLD) to liquor
    licensees.
    ISLD gives no such discount to its other customers. Such
exclusive discount is contrary to the law requiring ISLD provide
uniform pricing to all its customers.
The 5% exclusive price discount given to licensees came
about decades ago to compensate for a requirement that licensees
purchase alcohol beverages from ISLD in unbroken case lots.
Today, licensees may purchase the product in any quantity.
This special sales price discount is no longer warranted
and should be eliminated. Licensees will continue to receive a
5% sales tax resale discount. By law, sales tax is included in
the sales price of ISLD products. Albeit, such sales tax does
not go to the sales tax account, it goes into the ISLD income
distribution account.

    2. Eliminate the obsolete 15% surcharge language in Code. The
    surcharge relates to prices in effect when the law was
    passed as a ''tax'' revenue generating law in 1981. ISLD
    prices today are greater than 15% over 1981 prices, thus this
    law no longer has any relevance.
    
                                 
                            FISCAL NOTE

Removal of this price discount will increase ISLD profits and
the resulting cash distribution to cities and counties by an
estimated $950,000 annually.

         
         
         CONTACT: Senator Harold Bunderson
                  332-1000
         





STATEMENT OF PURPOSE/ FISCAL NOTE      S1223