2001 Legislation
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SENATE BILL NO. 1014 – Alcohol beverage license/fingerprnt

SENATE BILL NO. 1014

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S1014aa..............................................by JUDICIARY AND RULES
ALCOHOL BEVERAGE LICENSES - Amends existing law to provide that
investigations relating to applications for retail liquor licenses,
brewers' licenses, beer dealers' licenses, beer wholesalers' licenses,
licenses to sell beer at retail, retail wine licenses, wine by the drink
licenses, wine distributor's licenses and winery licenses shall include
fingerprint-based criminal history checks; and to provide for the
submission of fingerprints and fees for such investigations.
                                                                        
01/16    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Jud
01/30    Rpt out - to 14th Ord
03/01    Rpt out amen - to engros
03/02    Rpt engros - 1st rdg - to 2nd rdg as amen
03/05    2nd rdg - to 3rd rdg as amen
03/08    3rd rdg as amen - PASSED - 27-3-5
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ipsen, Lee, Lodge, Richardson, Risch, Sandy,
      Schroeder, Sorensen, Stegner, Thorne, Whitworth, Williams,
      NAYS -- Ingram, Keough, Sims
      Absent and excused -- Deide, King-Barrutia, Noh, Stennet, Wheeler
    Floor Sponsor -- Davis
    Title apvd - to House
03/09    House intro - 1st rdg - to Jud
03/20    Rpt out - rec d/p - to 2nd rdg as amen
03/21    2nd rdg - to 3rd rdg as amen
03/26    3rd rdg as amen - PASSED - 55-7-8
      AYES -- Barraclough, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Callister, Chase, Clark, Collins, Deal, Denney, Ellsworth, Eskridge,
      Field(13), Field(20), Gagner, Gould, Hammond, Hansen, Harwood,
      Henbest(Farley), Higgins, Jaquet, Jones, Kellogg, Kendell, Kunz,
      Lake, Langford, Mader, Marley, Meyer, Montgomery, Mortensen, Moss,
      Moyle, Pearce, Pomeroy, Raybould, Roberts, Robison, Schaefer,
      Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Tilman, Trail,
      Wood, Young, Mr. Speaker
      NAYS -- Barrett, Campbell, Cuddy, Ellis, Hornbeck, McKague, Ridinger
      Absent and excused -- Bradford, Bruneel, Crow, Hadley, Loertscher,
      Pischner, Sali, Wheeler
    Floor Sponsor -- Young
    Title apvd - to Senate
03/28    To enrol
    Rpt enrol - Pres signed
03/29    Sp signed - to Governor
04/02    Governor signed
         Session Law Chapter 284
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1014
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CRIMINAL HISTORY CHECKS; AMENDING SECTION 23-907, IDAHO  CODE,  TO
  3        PROVIDE  THAT  INVESTIGATIONS  RELATING  TO APPLICATIONS FOR RETAIL LIQUOR
  4        LICENSES SHALL INCLUDE FINGERPRINT-BASED CRIMINAL HISTORY CHECKS, TO  PRO-
  5        VIDE  FOR  THE SUBMISSION OF FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS
  6        AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 23-1003,  IDAHO  CODE,
  7        TO  PROVIDE  THAT  INVESTIGATIONS  RELATING  TO APPLICATIONS FOR BREWERS',
  8        DEALERS' AND WHOLESALERS' LICENSES SHALL INCLUDE FINGERPRINT-BASED  CRIMI-
  9        NAL HISTORY CHECKS, TO PROVIDE FOR THE SUBMISSION OF FINGERPRINTS AND FEES
 10        FOR  SUCH  INVESTIGATIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC-
 11        TION 23-1010, IDAHO CODE,  TO  PROVIDE  THAT  INVESTIGATIONS  RELATING  TO
 12        APPLICATIONS   FOR   LICENSES   TO  SELL  BEER  AT  RETAIL  SHALL  INCLUDE
 13        FINGERPRINT-BASED CRIMINAL HISTORY CHECKS, TO PROVIDE FOR  THE  SUBMISSION
 14        OF  FINGERPRINTS  AND  FEES  FOR SUCH INVESTIGATIONS AND TO MAKE TECHNICAL
 15        CORRECTIONS; AMENDING SECTION 23-1307, IDAHO CODE, TO PROVIDE THAT  INVES-
 16        TIGATIONS  RELATING  TO APPLICATIONS FOR RETAIL WINE LICENSES, WINE BY THE
 17        DRINK LICENSES AND WINE DISTRIBUTOR'S LICENSES SHALL INCLUDE  FINGERPRINT-
 18        BASED   CRIMINAL   HISTORY  CHECKS,  TO  PROVIDE  FOR  THE  SUBMISSION  OF
 19        FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS AND TO MAKE  TECHNICAL  COR-
 20        RECTIONS;  AND  AMENDING  SECTION  23-1308A,  IDAHO  CODE, TO PROVIDE THAT
 21        INVESTIGATIONS RELATING TO APPLICATIONS FOR WINERY LICENSES SHALL  INCLUDE
 22        FINGERPRINT-BASED  CRIMINAL  HISTORY CHECKS, TO PROVIDE FOR THE SUBMISSION
 23        OF FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS  AND  TO  MAKE  TECHNICAL
 24        CORRECTIONS.
                                                                        
 25    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 26        SECTION  1.  That  Section  23-907, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        23-907.  INVESTIGATION OF APPLICATIONS. Upon receipt of an application for
 29    a license under this act, accompanied by the necessary license fee, the direc-
 30    tor, within ninety (90) days thereafter, shall cause to  be  made  a  thorough
 31    investigation  of  all  matters  pertaining  thereto.  The investigation shall
 32    include a fingerprint-based criminal history check of the Idaho central crimi-
 33    nal history database and the federal bureau of investigation criminal  history
 34    database. The applicant shall submit a full set of fingerprints and the fee to
 35    cover  the cost of the criminal history background check with the application.
 36    If he the director shall determine that the contents of  the  application  are
 37    true, that such applicant is qualified to receive a license, that his premises
 38    are suitable for the carrying on of the business, and that the requirements of
 39    this act and the rules and regulations promulgated by the director are met and
 40    complied with, he shall issue such license; otherwise the application shall be
 41    denied  and  the  license  fee,  less the costs and expenses of investigation,
 42    returned to the applicant.
 43        In making the investigation required by this section  the  director  shall
                                                                        
                                           2
                                                                        
  1    have  the power to investigate and examine the books and records of the licen-
  2    see and any person having a financial interest in any business to be conducted
  3    on the licensed  premises, including, but not limited to, their bank accounts,
  4    returns filed under the Idaho Property Relief Act, 1931, as amended,  and  any
  5    other sources of information deemed desirable by the director and not specifi-
  6    cally prohibited by law.
                                                                        
  7        SECTION  2.  That  Section 23-1003, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        23-1003.  BREWERS', DEALERS' AND WHOLESALERS'  LICENSES.  (a)  Before  any
 10    brewer  shall  manufacture,  or  any dealer or wholesaler import or sell, beer
 11    within the state of Idaho he shall apply to the director for a license  so  to
 12    do. The application form shall be prescribed and furnished by the director and
 13    require  that  the applicant therein show that he possesses all the qualifica-
 14    tions and none of the disqualifications of a licensee. To determine qualifica-
 15    tion for a license, the director shall  cause  an  investigation  which  shall
 16    include a fingerprint-based criminal history check of the Idaho central crimi-
 17    nal  history database and the federal bureau of investigation criminal history
 18    database. The applicant shall submit a full set of fingerprints and the fee to
 19    cover the cost of the criminal history background check with the  application.
 20    The  application  shall also be accompanied by the required licensee fee; pro-
 21    vided, that where the applicant is or will be within more than one (1) of  the
 22    foregoing classifications he shall apply for each classification but shall pay
 23    only  one  (1)  license fee, which shall be for the classification applied for
 24    requiring the highest fee. If the director is  satisfied  that  the  applicant
 25    possesses  the  qualifications  and  none  of  the  disqualifications for such
 26    license, he shall issue a license for each classification applied for, subject
 27    to the restrictions and upon the  conditions  in  this  act  specified,  which
 28    license  or  licenses shall be at all times prominently displayed in the place
 29    of business of the licensee.
 30        (b)  Each wholesaler shall, in addition to the application, file with  the
 31    director a notice in writing signed by the dealer or brewer and the wholesaler
 32    stating  the  geographic territory within which the wholesaler will distribute
 33    beer to retailers. Said territory will be the territory  agreed  upon  between
 34    the  dealer  or  brewer  and the wholesaler and may not be changed or modified
 35    without the consent of both the dealer or brewer and the wholesaler.  Provided
 36    however, nothing contained herein shall be interpreted to prohibit a brewer or
 37    dealer  from  permitting more than one (1) distributor for the same geographic
 38    territory.
 39        (c)  In the event that a wholesaler  sells  beer  to  a  retailer  who  is
 40    located  outside  the  geographical territory designated by such wholesaler on
 41    the notice provided for in subparagraph subsection (b) hereof of this section,
 42    the dealer or wholesaler who has  designated  the  geographical  territory  in
 43    which  the  sale  occurred may apply to a district court of this state for the
 44    issuance of an injunction enjoining sales of beer by the wholesaler outside of
 45    his designated geographical  territory.  The  procedure  for  issuance  of  an
 46    injunction  pursuant to this act shall be subject to the provisions of chapter
 47    4, title 8, Idaho Code, and the Idaho Rules of Civil Procedure. Upon proof  to
 48    the  court  that  a  wholesaler has made a sale of beer outside his designated
 49    geographical territory, the court shall issue an injunction  directed  to  the
 50    wholesaler  prohibiting sales of beer outside his designated geographical ter-
 51    ritory.
 52        (d)  Any brewer licensed within the state of Idaho who produces fewer than
 53    thirty  thousand  (30,000)  barrels  of  beer  annually,  upon  payment  of  a
                                                                        
                                           3
                                                                        
  1    retailer's annual license fee, may be issued a brewer's  retail  beer  license
  2    for the retail sale of the products of his brewery at his licensed premises or
  3    one  (1) remote retail location, or both. Any brewer selling beer at retail or
  4    selling to a retailer must pay the taxes required in  section  23-1008,  Idaho
  5    Code, but need not be licensed as a wholesaler for the purpose of selling beer
  6    at the brewery or at one (1) remote retail location.
  7        (e)  Any brewer licensed within the state of Idaho who produces fewer than
  8    thirty  thousand  (30,000)  barrels of beer annually, may be issued a brewer's
  9    pub license.  Upon payment of a retailer's annual license fee, and subject  to
 10    the  fees  in  sections  23-1015 and 23-1016, Idaho Code, a brewer may, at his
 11    licensed brewery, at one (1) remote retail location, or both, sell  at  retail
 12    the products of any brewery by the individual bottle, can or glass. Any brewer
 13    selling beer at retail or selling to a retailer must pay the taxes required in
 14    section  23-1008,  Idaho Code, on the products of his brewery, but need not be
 15    licensed as a wholesaler for the purpose of selling beer at the brewery or  at
 16    one (1) remote retail location.
 17        (f)  A  brewer  licensed under the provisions of subsections (d) or (e) of
 18    this section may be licensed as a wholesaler for the sale of beer to retailers
 19    other than at the licensed brewery and one  (1)  remote  retail  location  and
 20    shall  not  be  required to pay an additional fee therefor. Such brewer shall,
 21    however, comply with and be subject to all other regulations or provisions  of
 22    law  which  apply  to a wholesaler's license, save and except as such laws may
 23    restrict such sales at the licensed brewery or one  (1)  other  remote  retail
 24    location.  The  holder  of  a  brew pub license shall not be disqualified from
 25    holding a retail wine license or wine by the drink license  for  the  sale  of
 26    wine  at  the  brew  pub  premises  on  the grounds that said licensee is also
 27    licensed as a wholesaler.
                                                                        
 28        SECTION 3.  That Section 23-1010, Idaho Code, be, and the same  is  hereby
 29    amended to read as follows:
                                                                        
 30        23-1010.  LICENSE TO SELL BEER AT RETAIL -- APPLICATION PROCEDURE AND FORM
 31    --  SHOWING OF ELIGIBILITY FOR LICENSE AND DISQUALIFICATIONS. (1) Every person
 32    who shall apply for a state license to sell beer at retail  shall  tender  the
 33    license  fee  to, and file written application for license with, the director.
 34    The application shall be on a form prescribed  by  the  director  which  shall
 35    require  such  information  concerning  the  applicant, the premises for which
 36    license is sought and the business to be conducted thereon by the applicant as
 37    the director may deem necessary or  advisable,  and  which  shall  enable  the
 38    director  to determine that the applicant is eligible and has none of the dis-
 39    qualifications for license, as provided for in this section. Such  information
 40    shall include the following:
 41        (a)  The  name  and  place of residence of the applicant and length of his
 42        residence within the state of Idaho, and if the applicant  is  a  partner-
 43        ship,  the  names, places of residence and lengths of residence within the
 44        state of Idaho of each partner, and, if the applicant is a corporation  or
 45        association,  the  date  and  place of incorporation  or organization, the
 46        location of its principal place of business in Idaho  and  the  names  and
 47        places of residence of its officers, directors or members of its governing
 48        board,  and of the person who manages or will manage the business of sell-
 49        ing beer at retail;
 50        (b)  The particular place for which the license  is  desired,  designating
 51        the  same  by  a  street  and number, if practicable, or by such other apt
 52        description as definitely locates such place, and the name of the owner of
 53        the premises for which license is sought;
                                                                        
                                           4
                                                                        
  1        (2)  The application shall affirmatively show:
  2        (a)  That the applicant is the bona fide owner of the business which  will
  3        be engaged in the sale of beer at retail and with respect to which license
  4        is sought;
  5        (b)  That the condition of the place or building wherein it is proposed to
  6        sell  beer  at  retail  conforms  to all laws and regulations rules of the
  7        state of Idaho and to the ordinances of the county and municipality appli-
  8        cable thereto relating to public health and safety and to the zoning ordi-
  9        nances of the municipality applicable thereto;
 10        (c)  That there is no stamp or permit outstanding and in force  which  has
 11        been issued to any person by the United States government for the premises
 12        for  which  license to sell beer at retail is sought which stamp or permit
 13        denotes payment of any special tax imposed by the United States government
 14        on a retail dealer in liquor or wines, unless said premises  are  premises
 15        for  which  a retail license for sale of liquor by-the-drink by the drink,
 16        issued under the provisions of chapter 9, title  23,  Idaho  Code,  is  in
 17        force and effect;
 18        (d)  That  the  individual  applicant,  or  each  partner of a partnership
 19        applicant, or a corporation applicant or an association applicant is qual-
 20        ified to do business within the state of Idaho;
 21        (e)  That the applicant, if an individual, is not less than nineteen  (19)
 22        years of age;
 23        (f)  That  within three (3) years immediately preceding the date of filing
 24        the application the applicant has not been convicted of the  violation  of
 25        any  law  of the state of Idaho, any other state, or of the United States,
 26        regulating, governing or prohibiting the sale, manufacture, transportation
 27        or possession of alcoholic beverages or intoxicating liquors,  or,  within
 28        said  time,  suffered  the  forfeiture  of a bond for failure to appear in
 29        answer to charges of any such violation;
 30        (g)  That within five (5) years immediately preceding the date  of  filing
 31        the application the applicant has not been convicted of any felony or paid
 32        any  fine  or  completed  any sentence of confinement therefor within said
 33        time;
 34        (h)  That within three (3) years next preceding the date  of  filing  said
 35        application  the applicant has not had any license provided for herein, or
 36        any license or permit issued to the applicant pursuant to the law of  this
 37        state,  or any other state, or of the United States, to sell, manufacture,
 38        transport or possess alcoholic beverages or intoxicating liquors, revoked.
 39        (3)  To determine qualification for a license,  the  director  shall  also
 40    cause  an  investigation which shall include a fingerprint-based criminal his-
 41    tory check of the Idaho central criminal  history  database  and  the  federal
 42    bureau  of investigation criminal history database. The applicant shall submit
 43    a full set of fingerprints and the fee to cover the cost of the criminal  his-
 44    tory background check with the application.
 45        (4)  The  affirmative  showing required with respect to an applicant under
 46    paragraphs (e), (f), (g), and (h) of subsection (2) of this section shall also
 47    be required to be made with respect to each partner of a partnership applicant
 48    and to each incumbent officer, director or member of the governing board of  a
 49    corporation or association applicant.
 50        (45)  The  application  must  be subscribed and sworn to by the individual
 51    applicant, or by a partner of a partnership applicant, or  by  an  officer  or
 52    manager  of  a corporation or association applicant, before a notary public or
 53    other person authorized by law to administer oaths.
 54        (56)  If an applicant shall be unable  to  make  any  affirmative  showing
 55    required  in  this section or if an application shall contain a false material
                                                                        
                                           5
                                                                        
  1    statement, knowingly made, the same shall constitute  a  disqualification  for
  2    license  and  license shall be refused. If license is received on any applica-
  3    tion containing a false material statement, knowingly made, such license shall
  4    be revoked. If at any time during the period for which  license  is  issued  a
  5    licensee becomes unable to make the affirmative showings required by this sec-
  6    tion,  license  shall  be revoked, or, if disqualification can be removed, the
  7    license shall be suspended until the same shall be removed. The  procedure  to
  8    be  followed  upon refusal, revocation or suspension of license as herein pro-
  9    vided for shall be in accordance with the procedure set forth in this act.
 10        (67)  All licenses issued hereunder shall expire at 1:00 o'clock  A.M.  on
 11    January  1  of  the following year and shall be subject to renewal upon proper
 12    application.
                                                                        
 13        SECTION 4.  That Section 23-1307, Idaho Code, be, and the same  is  hereby
 14    amended to read as follows:
                                                                        
 15        23-1307.  QUALIFICATIONS  FOR  RETAIL  WINE  LICENSE,  WINE  BY  THE DRINK
 16    LICENSE, AND DISTRIBUTOR'S LICENSE. (1) No retail wine license,  wine  by  the
 17    drink  license,  or wine distributor's license shall be issued to an applicant
 18    who at the time of making the application:
 19        (1a)  If a corporation, has not qualified as required by law to  do  busi-
 20        ness in the state of Idaho;
 21        (2b)  Has  had  a wine distributor's license, retail wine license, wine by
 22        the drink license, or wine importer's license,  revoked  by  the  director
 23        within three (3) years from the date of making such application;
 24        (3c)  Has  been  convicted  of a violation of the laws of this state or of
 25        the United States governing the sale  of  alcoholic  beverages,  wine,  or
 26        beer, within three (3) years from the date of making such application;
 27        (4d)  Has  been  convicted of a felony or been granted a withheld judgment
 28        following an adjudication of guilt of a felony within five (5) years  from
 29        the date of making such application;
 30        (5e)  If  an  individual or partnership, either the individual or at least
 31        one (1) of the partners of a partnership is not nineteen (19) years of age
 32        or older;
 33        (6f)  If the application is for a retail wine license or wine by the drink
 34        license, the director finds that the applicant does not possess  a  retail
 35        beer  license  issued by the director, except that licensed wineries which
 36        do not sell wine by the drink shall not be required to  possess  a  retail
 37        beer license as a prerequisite to a retail wine license.
 38        (2)  To  determine  qualification  for  a license, the director shall also
 39    cause an investigation which shall include a fingerprint-based  criminal  his-
 40    tory  check  of  the  Idaho  central criminal history database and the federal
 41    bureau of investigation criminal history database. The applicant shall  submit
 42    a  full set of fingerprints and the fee to cover the cost of the criminal his-
 43    tory background check with the application.
                                                                        
 44        SECTION 5.  That Section 23-1308A, Idaho Code, be, and the same is  hereby
 45    amended to read as follows:
                                                                        
 46        23-1308A.  QUALIFICATIONS  FOR WINERY LICENSE. (1) No winery license shall
 47    be issued to an applicant who at the time of making the application:
 48        (a)  Has not executed an agreement in writing with the director that  such
 49        winery  and every person employed by it or acting as its agents other than
 50        distributors and retailers, will faithfully comply with  and  observe  all
 51        the  provisions of the laws of the state of Idaho relating to the manufac-
                                                                        
                                           6
                                                                        
  1        turing, sale and distribution  of  wine  and  all  rules  and  regulations
  2        adopted by the director pursuant to this act;
  3        (b)  Has  had  a winery license, a wine distributor's license, retail wine
  4        license, wine  by-the-drink  by  the  drink  license  or  wine  importer's
  5        license,  revoked  by the director within three (3) years from the date of
  6        making such application;
  7        (c)  Has been convicted of a violation of the laws of this state or of the
  8        United States governing the sale of alcoholic beverages,  wine,  or  beer,
  9        within three (3) years from the date of making such application;
 10        (d)  Has  been  convicted  of a felony or been granted a withheld judgment
 11        following an adjudication of guilt of a felony within five (5) years  from
 12        the date of making such application.
 13        (2)  To determine qualification for a license, the director shall cause an
 14    investigation  which  shall include a fingerprint-based criminal history check
 15    of the Idaho central criminal history  database  and  the  federal  bureau  of
 16    investigation criminal history database. The applicant shall submit a full set
 17    of  fingerprints  and  the fee to cover the cost of the criminal history back-
 18    ground check with the application.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                                     Moved by    Davis               
                                                                        
                                                     Seconded by Stegner             
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENTS TO S.B. NO. 1014
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, in line 34, delete "The" and insert:  "Each
  3    person  listed  as  an"; also in line 34, following "applicant" insert: "on an
  4    initial application"; and in line 35, following "check" insert: "for such per-
  5    son".
                                                                        
  6                               AMENDMENTS TO SECTION 2
  7        On page 2, in line 18, delete "The" and insert:  "Each  person  listed  as
  8    an";   also   in  line  18,  following  "applicant"  insert:  "on  an  initial
  9    application"; and in line 19, following "check" insert: "for such person".
                                                                        
 10                               AMENDMENTS TO SECTION 3
 11        On page 4, in line 42, delete "The" and insert:  "Each  person  listed  as
 12    an";   also   in  line  42,  following  "applicant"  insert:  "on  an  initial
 13    application"; and in line 44, following "check" insert: "for such person".
                                                                        
 14                               AMENDMENTS TO SECTION 4
 15        On page 5, in line 41, delete "The" and insert:  "Each  person  listed  as
 16    an";   also   in  line  41,  following  "applicant"  insert:  "on  an  initial
 17    application"; and in line 43, following "check" insert: "for such person".
                                                                        
 18                               AMENDMENTS TO SECTION 5
 19        On page 6, in line 16, delete "The" and insert:  "Each  person  listed  as
 20    an";   also   in  line  16,  following  "applicant"  insert:  "on  an  initial
 21    application"; and in line 18, following "check" insert: "for such person".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1014, As Amended
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CRIMINAL HISTORY CHECKS; AMENDING SECTION 23-907, IDAHO  CODE,  TO
  3        PROVIDE  THAT  INVESTIGATIONS  RELATING  TO APPLICATIONS FOR RETAIL LIQUOR
  4        LICENSES SHALL INCLUDE FINGERPRINT-BASED CRIMINAL HISTORY CHECKS, TO  PRO-
  5        VIDE  FOR  THE SUBMISSION OF FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS
  6        AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 23-1003,  IDAHO  CODE,
  7        TO  PROVIDE  THAT  INVESTIGATIONS  RELATING  TO APPLICATIONS FOR BREWERS',
  8        DEALERS' AND WHOLESALERS' LICENSES SHALL INCLUDE FINGERPRINT-BASED  CRIMI-
  9        NAL HISTORY CHECKS, TO PROVIDE FOR THE SUBMISSION OF FINGERPRINTS AND FEES
 10        FOR  SUCH  INVESTIGATIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC-
 11        TION 23-1010, IDAHO CODE,  TO  PROVIDE  THAT  INVESTIGATIONS  RELATING  TO
 12        APPLICATIONS   FOR   LICENSES   TO  SELL  BEER  AT  RETAIL  SHALL  INCLUDE
 13        FINGERPRINT-BASED CRIMINAL HISTORY CHECKS, TO PROVIDE FOR  THE  SUBMISSION
 14        OF  FINGERPRINTS  AND  FEES  FOR SUCH INVESTIGATIONS AND TO MAKE TECHNICAL
 15        CORRECTIONS; AMENDING SECTION 23-1307, IDAHO CODE, TO PROVIDE THAT  INVES-
 16        TIGATIONS  RELATING  TO APPLICATIONS FOR RETAIL WINE LICENSES, WINE BY THE
 17        DRINK LICENSES AND WINE DISTRIBUTOR'S LICENSES SHALL INCLUDE  FINGERPRINT-
 18        BASED   CRIMINAL   HISTORY  CHECKS,  TO  PROVIDE  FOR  THE  SUBMISSION  OF
 19        FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS AND TO MAKE  TECHNICAL  COR-
 20        RECTIONS;  AND  AMENDING  SECTION  23-1308A,  IDAHO  CODE, TO PROVIDE THAT
 21        INVESTIGATIONS RELATING TO APPLICATIONS FOR WINERY LICENSES SHALL  INCLUDE
 22        FINGERPRINT-BASED  CRIMINAL  HISTORY CHECKS, TO PROVIDE FOR THE SUBMISSION
 23        OF FINGERPRINTS AND FEES FOR SUCH INVESTIGATIONS  AND  TO  MAKE  TECHNICAL
 24        CORRECTIONS.
                                                                        
 25    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 26        SECTION  1.  That  Section  23-907, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        23-907.  INVESTIGATION OF APPLICATIONS. Upon receipt of an application for
 29    a license under this act, accompanied by the necessary license fee, the direc-
 30    tor, within ninety (90) days thereafter, shall cause to  be  made  a  thorough
 31    investigation  of  all  matters  pertaining  thereto.  The investigation shall
 32    include a fingerprint-based criminal history check of the Idaho central crimi-
 33    nal history database and the federal bureau of investigation criminal  history
 34    database.  Each  person listed as an applicant on an initial application shall
 35    submit a full set of fingerprints and the fee to cover the cost of the  crimi-
 36    nal  history  background check for such person with the application. If he the
 37    director shall determine that the contents of the application are  true,  that
 38    such  applicant is qualified to receive a license, that his premises are suit-
 39    able for the carrying on of the business, and that the  requirements  of  this
 40    act and the rules and regulations promulgated by the director are met and com-
 41    plied  with,  he  shall issue such license; otherwise the application shall be
 42    denied and the license fee, less the  costs  and  expenses  of  investigation,
 43    returned to the applicant.
                                                                        
                                           2
                                                                        
  1        In  making  the  investigation required by this section the director shall
  2    have the power to investigate and examine the books and records of the  licen-
  3    see and any person having a financial interest in any business to be conducted
  4    on the licensed  premises, including, but not limited to, their bank accounts,
  5    returns  filed  under the Idaho Property Relief Act, 1931, as amended, and any
  6    other sources of information deemed desirable by the director and not specifi-
  7    cally prohibited by law.
                                                                        
  8        SECTION 2.  That Section 23-1003, Idaho Code, be, and the same  is  hereby
  9    amended to read as follows:
                                                                        
 10        23-1003.  BREWERS',  DEALERS'  AND  WHOLESALERS'  LICENSES. (a) Before any
 11    brewer shall manufacture, or any dealer or wholesaler  import  or  sell,  beer
 12    within  the  state of Idaho he shall apply to the director for a license so to
 13    do. The application form shall be prescribed and furnished by the director and
 14    require that the applicant therein show that he possesses all  the  qualifica-
 15    tions and none of the disqualifications of a licensee. To determine qualifica-
 16    tion  for  a  license,  the  director shall cause an investigation which shall
 17    include a fingerprint-based criminal history check of the Idaho central crimi-
 18    nal history database and the federal bureau of investigation criminal  history
 19    database.  Each  person listed as an applicant on an initial application shall
 20    submit a full set of fingerprints and the fee to cover the cost of the  crimi-
 21    nal  history background check for such person with the application. The appli-
 22    cation shall also be accompanied by the required licensee fee; provided,  that
 23    where  the  applicant  is or will be within more than one (1) of the foregoing
 24    classifications he shall apply for each classification but shall pay only  one
 25    (1)  license  fee, which shall be for the classification applied for requiring
 26    the highest fee. If the director is satisfied that the applicant possesses the
 27    qualifications and none of the disqualifications for such  license,  he  shall
 28    issue  a  license for each classification applied for, subject to the restric-
 29    tions and upon the conditions in this act specified, which license or licenses
 30    shall be at all times prominently displayed in the place of  business  of  the
 31    licensee.
 32        (b)  Each  wholesaler shall, in addition to the application, file with the
 33    director a notice in writing signed by the dealer or brewer and the wholesaler
 34    stating the geographic territory within which the wholesaler  will  distribute
 35    beer  to  retailers.  Said territory will be the territory agreed upon between
 36    the dealer or brewer and the wholesaler and may not  be  changed  or  modified
 37    without  the consent of both the dealer or brewer and the wholesaler. Provided
 38    however, nothing contained herein shall be interpreted to prohibit a brewer or
 39    dealer from permitting more than one (1) distributor for the  same  geographic
 40    territory.
 41        (c)  In  the  event  that  a  wholesaler  sells  beer to a retailer who is
 42    located outside the geographical territory designated by  such  wholesaler  on
 43    the notice provided for in subparagraph subsection (b) hereof of this section,
 44    the  dealer  or  wholesaler  who  has designated the geographical territory in
 45    which the sale occurred may apply to a district court of this  state  for  the
 46    issuance of an injunction enjoining sales of beer by the wholesaler outside of
 47    his  designated  geographical  territory.  The  procedure  for  issuance of an
 48    injunction pursuant to this act shall be subject to the provisions of  chapter
 49    4,  title 8, Idaho Code, and the Idaho Rules of Civil Procedure. Upon proof to
 50    the court that a wholesaler has made a sale of  beer  outside  his  designated
 51    geographical  territory,  the  court shall issue an injunction directed to the
 52    wholesaler prohibiting sales of beer outside his designated geographical  ter-
 53    ritory.
                                                                        
                                           3
                                                                        
  1        (d)  Any brewer licensed within the state of Idaho who produces fewer than
  2    thirty  thousand  (30,000)  barrels  of  beer  annually,  upon  payment  of  a
  3    retailer's  annual  license  fee, may be issued a brewer's retail beer license
  4    for the retail sale of the products of his brewery at his licensed premises or
  5    one (1) remote retail location, or both. Any brewer selling beer at retail  or
  6    selling  to  a  retailer must pay the taxes required in section 23-1008, Idaho
  7    Code, but need not be licensed as a wholesaler for the purpose of selling beer
  8    at the brewery or at one (1) remote retail location.
  9        (e)  Any brewer licensed within the state of Idaho who produces fewer than
 10    thirty thousand (30,000) barrels of beer annually, may be  issued  a  brewer's
 11    pub  license.  Upon payment of a retailer's annual license fee, and subject to
 12    the fees in sections 23-1015 and 23-1016, Idaho Code, a  brewer  may,  at  his
 13    licensed  brewery,  at one (1) remote retail location, or both, sell at retail
 14    the products of any brewery by the individual bottle, can or glass. Any brewer
 15    selling beer at retail or selling to a retailer must pay the taxes required in
 16    section 23-1008, Idaho Code, on the products of his brewery, but need  not  be
 17    licensed  as a wholesaler for the purpose of selling beer at the brewery or at
 18    one (1) remote retail location.
 19        (f)  A brewer licensed under the provisions of subsections (d) or  (e)  of
 20    this section may be licensed as a wholesaler for the sale of beer to retailers
 21    other  than  at  the  licensed  brewery and one (1) remote retail location and
 22    shall not be required to pay an additional fee therefor.  Such  brewer  shall,
 23    however,  comply with and be subject to all other regulations or provisions of
 24    law which apply to a wholesaler's license, save and except as  such  laws  may
 25    restrict  such  sales  at  the licensed brewery or one (1) other remote retail
 26    location. The holder of a brew pub license  shall  not  be  disqualified  from
 27    holding  a  retail  wine  license or wine by the drink license for the sale of
 28    wine at the brew pub premises on  the  grounds  that  said  licensee  is  also
 29    licensed as a wholesaler.
                                                                        
 30        SECTION  3.  That  Section 23-1010, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
                                                                        
 32        23-1010.  LICENSE TO SELL BEER AT RETAIL -- APPLICATION PROCEDURE AND FORM
 33    -- SHOWING OF ELIGIBILITY FOR LICENSE AND DISQUALIFICATIONS. (1) Every  person
 34    who  shall  apply  for a state license to sell beer at retail shall tender the
 35    license fee to, and file written application for license with,  the  director.
 36    The  application  shall  be  on  a form prescribed by the director which shall
 37    require such information concerning the  applicant,  the  premises  for  which
 38    license is sought and the business to be conducted thereon by the applicant as
 39    the  director  may  deem  necessary  or  advisable, and which shall enable the
 40    director to determine that the applicant is eligible and has none of the  dis-
 41    qualifications  for license, as provided for in this section. Such information
 42    shall include the following:
 43        (a)  The name and place of residence of the applicant and  length  of  his
 44        residence  within  the  state of Idaho, and if the applicant is a partner-
 45        ship, the names, places of residence and lengths of residence  within  the
 46        state  of Idaho of each partner, and, if the applicant is a corporation or
 47        association, the date and place of incorporation    or  organization,  the
 48        location  of  its  principal  place of business in Idaho and the names and
 49        places of residence of its officers, directors or members of its governing
 50        board, and of the person who manages or will manage the business of  sell-
 51        ing beer at retail;
 52        (b)  The  particular  place  for which the license is desired, designating
 53        the same by a street and number, if practicable,  or  by  such  other  apt
                                                                        
                                           4
                                                                        
  1        description as definitely locates such place, and the name of the owner of
  2        the premises for which license is sought;
  3        (2)  The application shall affirmatively show:
  4        (a)  That  the applicant is the bona fide owner of the business which will
  5        be engaged in the sale of beer at retail and with respect to which license
  6        is sought;
  7        (b)  That the condition of the place or building wherein it is proposed to
  8        sell beer at retail conforms to all laws  and  regulations  rules  of  the
  9        state of Idaho and to the ordinances of the county and municipality appli-
 10        cable thereto relating to public health and safety and to the zoning ordi-
 11        nances of the municipality applicable thereto;
 12        (c)  That  there  is no stamp or permit outstanding and in force which has
 13        been issued to any person by the United States government for the premises
 14        for which license to sell beer at retail is sought which stamp  or  permit
 15        denotes payment of any special tax imposed by the United States government
 16        on  a  retail dealer in liquor or wines, unless said premises are premises
 17        for which a retail license for sale of liquor by-the-drink by  the  drink,
 18        issued  under  the  provisions  of  chapter 9, title 23, Idaho Code, is in
 19        force and effect;
 20        (d)  That the individual applicant,  or  each  partner  of  a  partnership
 21        applicant, or a corporation applicant or an association applicant is qual-
 22        ified to do business within the state of Idaho;
 23        (e)  That  the applicant, if an individual, is not less than nineteen (19)
 24        years of age;
 25        (f)  That within three (3) years immediately preceding the date of  filing
 26        the  application  the applicant has not been convicted of the violation of
 27        any law of the state of Idaho, any other state, or of the  United  States,
 28        regulating, governing or prohibiting the sale, manufacture, transportation
 29        or  possession  of alcoholic beverages or intoxicating liquors, or, within
 30        said time, suffered the forfeiture of a bond  for  failure  to  appear  in
 31        answer to charges of any such violation;
 32        (g)  That  within  five (5) years immediately preceding the date of filing
 33        the application the applicant has not been convicted of any felony or paid
 34        any fine or completed any sentence of  confinement  therefor  within  said
 35        time;
 36        (h)  That  within  three  (3) years next preceding the date of filing said
 37        application the applicant has not had any license provided for herein,  or
 38        any  license or permit issued to the applicant pursuant to the law of this
 39        state, or any other state, or of the United States, to sell,  manufacture,
 40        transport or possess alcoholic beverages or intoxicating liquors, revoked.
 41        (3)  To  determine  qualification  for  a license, the director shall also
 42    cause an investigation which shall include a fingerprint-based  criminal  his-
 43    tory  check  of  the  Idaho  central criminal history database and the federal
 44    bureau of investigation criminal history database. Each person  listed  as  an
 45    applicant  on  an  initial application shall submit a full set of fingerprints
 46    and the fee to cover the cost of the criminal  history  background  check  for
 47    such person with the application.
 48        (4)  The  affirmative  showing required with respect to an applicant under
 49    paragraphs (e), (f), (g), and (h) of subsection (2) of this section shall also
 50    be required to be made with respect to each partner of a partnership applicant
 51    and to each incumbent officer, director or member of the governing board of  a
 52    corporation or association applicant.
 53        (45)  The  application  must  be subscribed and sworn to by the individual
 54    applicant, or by a partner of a partnership applicant, or  by  an  officer  or
 55    manager  of  a corporation or association applicant, before a notary public or
                                                                        
                                           5
                                                                        
  1    other person authorized by law to administer oaths.
  2        (56)  If an applicant shall be unable  to  make  any  affirmative  showing
  3    required  in  this section or if an application shall contain a false material
  4    statement, knowingly made, the same shall constitute  a  disqualification  for
  5    license  and  license shall be refused. If license is received on any applica-
  6    tion containing a false material statement, knowingly made, such license shall
  7    be revoked. If at any time during the period for which  license  is  issued  a
  8    licensee becomes unable to make the affirmative showings required by this sec-
  9    tion,  license  shall  be revoked, or, if disqualification can be removed, the
 10    license shall be suspended until the same shall be removed. The  procedure  to
 11    be  followed  upon refusal, revocation or suspension of license as herein pro-
 12    vided for shall be in accordance with the procedure set forth in this act.
 13        (67)  All licenses issued hereunder shall expire at 1:00 o'clock  A.M.  on
 14    January  1  of  the following year and shall be subject to renewal upon proper
 15    application.
                                                                        
 16        SECTION 4.  That Section 23-1307, Idaho Code, be, and the same  is  hereby
 17    amended to read as follows:
                                                                        
 18        23-1307.  QUALIFICATIONS  FOR  RETAIL  WINE  LICENSE,  WINE  BY  THE DRINK
 19    LICENSE, AND DISTRIBUTOR'S LICENSE. (1) No retail wine license,  wine  by  the
 20    drink  license,  or wine distributor's license shall be issued to an applicant
 21    who at the time of making the application:
 22        (1a)  If a corporation, has not qualified as required by law to  do  busi-
 23        ness in the state of Idaho;
 24        (2b)  Has  had  a wine distributor's license, retail wine license, wine by
 25        the drink license, or wine importer's license,  revoked  by  the  director
 26        within three (3) years from the date of making such application;
 27        (3c)  Has  been  convicted  of a violation of the laws of this state or of
 28        the United States governing the sale  of  alcoholic  beverages,  wine,  or
 29        beer, within three (3) years from the date of making such application;
 30        (4d)  Has  been  convicted of a felony or been granted a withheld judgment
 31        following an adjudication of guilt of a felony within five (5) years  from
 32        the date of making such application;
 33        (5e)  If  an  individual or partnership, either the individual or at least
 34        one (1) of the partners of a partnership is not nineteen (19) years of age
 35        or older;
 36        (6f)  If the application is for a retail wine license or wine by the drink
 37        license, the director finds that the applicant does not possess  a  retail
 38        beer  license  issued by the director, except that licensed wineries which
 39        do not sell wine by the drink shall not be required to  possess  a  retail
 40        beer license as a prerequisite to a retail wine license.
 41        (2)  To  determine  qualification  for  a license, the director shall also
 42    cause an investigation which shall include a fingerprint-based  criminal  his-
 43    tory  check  of  the  Idaho  central criminal history database and the federal
 44    bureau of investigation criminal history database. Each person  listed  as  an
 45    applicant  on  an  initial application shall submit a full set of fingerprints
 46    and the fee to cover the cost of the criminal  history  background  check  for
 47    such person with the application.
                                                                        
 48        SECTION  5.  That Section 23-1308A, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
                                                                        
 50        23-1308A.  QUALIFICATIONS FOR WINERY LICENSE. (1) No winery license  shall
 51    be issued to an applicant who at the time of making the application:
                                                                        
                                           6
                                                                        
  1        (a)  Has  not executed an agreement in writing with the director that such
  2        winery and every person employed by it or acting as its agents other  than
  3        distributors  and  retailers,  will faithfully comply with and observe all
  4        the provisions of the laws of the state of Idaho relating to the  manufac-
  5        turing,  sale  and  distribution  of  wine  and  all rules and regulations
  6        adopted by the director pursuant to this act;
  7        (b)  Has had a winery license, a wine distributor's license,  retail  wine
  8        license,  wine  by-the-drink  by  the  drink  license  or  wine importer's
  9        license, revoked by the director within three (3) years from the  date  of
 10        making such application;
 11        (c)  Has been convicted of a violation of the laws of this state or of the
 12        United  States  governing  the sale of alcoholic beverages, wine, or beer,
 13        within three (3) years from the date of making such application;
 14        (d)  Has been convicted of a felony or been granted  a  withheld  judgment
 15        following  an adjudication of guilt of a felony within five (5) years from
 16        the date of making such application.
 17        (2)  To determine qualification for a license, the director shall cause an
 18    investigation which shall include a fingerprint-based criminal  history  check
 19    of  the  Idaho  central  criminal  history  database and the federal bureau of
 20    investigation criminal history database. Each person listed as an applicant on
 21    an initial application shall submit a full set of fingerprints and the fee  to
 22    cover  the  cost of the criminal history background check for such person with
 23    the application.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                   
                             RS10556
                                   
    Idaho Code 23-910 Persons not qualified to be licensed gives the Director of the Idaho State
Police the
    authority to deny an alcohol beverage license to applicants who have violated certain state or
federal laws
    within five years prior to the application for an alcohol beverage license.  However, the
Alcohol Beverage
    Control (ABC) office lacks the authority under law to conduct criminal history records
searches of the national
    database, for licensing purposes.  This proposal gives the ABC office the authority, in Idaho
Code section 23-
    907 Investigation of applications, to include in the licensing background investigation a
fingerprint based
    criminal history check of the Idaho Central Criminal History database and the Federal Bureau
of Investigation
    Criminal History database.
    
                           FISCAL NOTE
                                   
      In CY 1999, the Alcohol Beverage Control office processed one
    thousand, three hundred (1,300) limited background
    investigations on new licensees.  If a fingerprint based
    background check were conducted for each named party for a new
    license at a cost of thirty-four dollars ($34.00), the
    activity would generate forty-four thousand, two hundred
    dollars ($44,200).    
      These funds are deposited into the Miscellaneous Revenue fund.  The
    Federal Bureau of Investigation (FBI) bills the Idaho State Police twenty-
    four dollars ($24.00) for each fingerprint card it processes. The FBI
    rebates to the state two dollars ($2.00) of the charge to offset the costs
    for centralization of collection and payment.  Idaho Code 
    67-3010 authorizes the Bureau of Criminal Identification (BCI) to
    separately charge a fee set by rule, currently ten dollars ($10.00) per
    fingerprint card to cover personnel and administration costs.  The FBI
    charge of twenty-four dollars ($24.00) plus the BCI charge of ten dollars
    ($10.00) comprise the total charge to the licensees of thirty-four dollars
    ($34.00).
    This legislation will have no impact to the general fund.
    Contact:  
    Name:  Ann Thompson, Idaho State Police
    Phone: (208) 884-7000
    
    Statement of Purpose/Fiscal Note           Bill No. S1014