S1581............................................................by FINANCE APPROPRIATION - LIQUOR DISPENSARY - Adds to existing law to create the Liquor Warehouse Fund; to provide for a funds transfer; to appropriate $2,366,700 to the Office of the Governor for the State Liquor Dispensary for fiscal year 2003; and to provide that the moneys be used to exercise the purchase option for the central office and warehouse facility. 03/30 Senate intro - 1st rdg - to printing 03/31 Rpt prt - to Fin Rpt out - rec d/p - to 2nd rdg 04/03 2nd rdg - to 3rd rdg Rls susp - PASSED - 33-0-2 AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, McLaughlin, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler, Whitworth, Williams NAYS--None Absent and excused--Lee, Noh Floor Sponsor - Cameron Title apvd - to House 04/04 House intro - 1st rdg - to 2nd rdg 2nd rdg - to 3rd rdg Rls susp - PASSED - 49-17-4 AYES -- Alltus, Barraclough(Barraclough), Bell, Bieter, Black, Boe, Bruneel, Campbell, Cheirrett, Crow, Deal, Field(13), Field(20), Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Hornbeck, Jaquet, Jones, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Meyer, Montgomery, Moss, Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Sellman, Shepherd, Smylie, Stevenson, Stoicheff, Tilman, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- Barrett, Callister, Chase, Cuddy, Denney, Ellsworth, Gagner, Judd, Loertscher(Loertscher), Mader, Marley, McKague, Mortensen, Pearce, Smith, Stone, Taylor Absent and excused -- Clark, Henbest, Schaefer, Trail Floor Sponsor - Title apvd - to Senate 04/05 To enrol - rpt enrol - Pres signed - Sp signed 04/06 To Governor 04/14 Governor signed Session Law Chapter 374 Effective: 07/01/00
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 IN THE SENATE SENATE BILL NO. 1581 BY FINANCE COMMITTEE 1 AN ACT 2 CREATING THE LIQUOR WAREHOUSE PURCHASE FUND AND PROVIDING A SUNSET DATE; 3 DIRECTING THE STATE CONTROLLER TO TRANSFER CERTAIN FUNDS; APPROPRIATING 4 MONEYS TO THE LIQUOR DISPENSARY FOR FISCAL YEAR 2003; AND DIRECTING THE 5 LIQUOR DISPENSARY TO EXERCISE THE PURCHASE OPTION ON ITS CENTRAL WAREHOUSE 6 ON A CERTAIN DATE. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. There is hereby created in the state treasury the Liquor Ware- 9 house Purchase Fund. This fund shall consist of moneys transferred to the fund 10 pursuant to legislative action, and any interest earned on moneys in the fund 11 shall be credited to the Liquor Control Fund. On June 30, 2003, the State Con- 12 troller shall transfer any unexpended and unencumbered moneys in the Liquor 13 Warehouse Purchase Fund to the Liquor Control Fund. The Liquor Warehouse Pur- 14 chase Fund shall cease to exist after June 30, 2003. 15 SECTION 2. On July 1 of 2000, 2001 and 2002, the State Controller shall 16 transfer $788,900 from the Liquor Control Fund to the Liquor Warehouse Pur- 17 chase Fund, for a total of $2,366,700. 18 SECTION 3. There is hereby appropriated to the Office of the Governor for 19 the State Liquor Dispensary the following amount, to be expended according to 20 the designated expense class from the listed fund for the period July 1, 2002, 21 through June 30, 2003, according to the provisions of Section 4 of this act: 22 FOR: 23 Capital Outlay $2,366,700 24 FROM: 25 Liquor Warehouse Purchase Fund $2,366,700 26 SECTION 4. The State Liquor Dispensary is hereby directed to exercise the 27 purchase option under the terms of the lease agreement for its central office 28 and warehouse facility on August 1, 2002. This purchase shall be paid for by 29 funds appropriated in Section 3 of this act.
|Statement of Purpose|
The purpose of this legislation is establish a process by which the state can purchase the Liquor Dispensary’s central office and warehouse facility. This issue was highlighted by legislative auditors, whose finding states that the Liquor Dispensary can save approximately $3 million over the life of the warehouse’s 20 year lease agreement by exercising the purchase option stated in the lease contract. This analysis assumed the purchase would be financed through bonds issued by the Idaho State Building Authority. Further analysis showed that additional money could be saved by purchasing the facility with the proceeds of liquor store profits. This bill reflects that approach. In order to provide steadily increasing distributions to cities and counties, the funds necessary for the purchase are accumulated and cashflowed over three fiscal years. Sufficient funds will be accumulated by Fiscal Year 2003, at which point the facility will be purchased.
Three equal transfers of $788,900 will be made from the Liquor Control Fund to the Liquor Warehouse Purchase Fund. These will take place in Fiscal Years 2001, 2002, and 2003. The bill then appropriates $2,366,700 from the Liquor Warehouse Purchase Fund in Fiscal Year 2003 to complete the purchase of the Liquor Dispensary’s central office and warehouse facility. This will save approximately $3.3 million over the life of the current lease contract. Since Idaho cities and counties are the residual beneficiaries of liquor profit distributions, this savings will be distributed to cities and counties over the next 18 years.
There is no fiscal impact to the General Fund.
Contact: Jason Hancock 334-4739
Legislative Services Office, Budget & Policy Analysis
|Statement of Purpose/Fiscal Note||Bill No. S1581|