2003 Legislation
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SENATE BILL NO. 1020 – Alcoholic beverage control fnd/uses

SENATE BILL NO. 1020

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S1020.........................................................by STATE AFFAIRS
ALCOHOLIC BEVERAGE CONTROL FUND - Amends existing law to provide for the
creation of and the transfer of funds to the Idaho State Police Alcoholic
Beverage Control Fund for use in the administration, education and enforcement
of the alcoholic beverage laws.
                                                                        
01/21    Senate intro - 1st rdg - to printing
01/22    Rpt prt - to St Aff

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1020
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE LIQUOR ACT; AMENDING SECTION 23-404, IDAHO CODE, TO PRO-
  3        VIDE FOR THE TRANSFER OF FUNDS TO THE IDAHO STATE POLICE ALCOHOLIC  BEVER-
  4        AGE  CONTROL FUND FOR USE IN THE ADMINISTRATION, EDUCATION AND ENFORCEMENT
  5        OF THE ALCOHOLIC BEVERAGE LAWS AND TO CREATE THE FUND.
                                                                        
  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 the balance remaining after transferring the amounts  authorized
 19        by subsection (a) above:
 20             (i)   One  million two hundred thousand dollars ($1,200,000) shall be
 21             transferred annually to the alcoholism treatment  account,  which  is
 22             hereby created in the trust and agency fund;
 23             (ii)  Three  hundred thousand dollars ($300,000) shall be transferred
 24             annually  to  the  community  college  account,  created  by  section
 25             33-2139, Idaho Code;
 26             (iii) One million two hundred thousand dollars ($1,200,000) shall  be
 27             transferred  annually to the public school income fund, as defined in
 28             section 33-903, Idaho Code;
 29             (iv)  Four  million  nine   hundred   forty-five   thousand   dollars
 30             ($4,945,000)  shall be transferred annually to the general account in
 31             the state operating fund; and
 32             (v)   Six hundred fifty thousand dollars ($650,000) shall  be  trans-
 33             ferred  annually  to the cooperative welfare account in the dedicated
 34             fund.
 35        (c)  Five percent (5%) of  the  balance  remaining,  after  the  transfers
 36        authorized  by  paragraphs  (a)  and  (b)  above have been made, is hereby
 37        appropriated to and shall be transferred to the Idaho state  police  alco-
 38        holic beverage control fund, which is hereby created in the state treasury
 39        for  use  by  the  Idaho  state  police  for administration, education and
 40        enforcement of title 23, Idaho Code, commonly known as  the  Idaho  liquor
 41        act.  Moneys in the Idaho state police alcoholic beverage control fund may
 42        be expended pursuant to appropriation.
 43        (d)  Forty percent (40%) of the  balance  remaining  after  the  transfers
                                                                        
                                           2
                                                                        
  1        authorized  by  paragraphs  (a),  and (b) and (c)  above have been made is
  2        hereby appropriated to and shall be paid to  the  several  counties.  Each
  3        county  shall be entitled to an amount in the proportion that liquor sales
  4        through the dispensary in that county during the state's  previous  fiscal
  5        year bear to total liquor sales through the dispensary in the state during
  6        the  state's previous fiscal year, except that no county shall be entitled
  7        to an amount less than that county  received  in  distributions  from  the
  8        liquor account during the state's fiscal year 1981.
  9        (de)  Sixty  percent  (60%)  of  the balance remaining after the transfers
 10        authorized by paragraphs (a), and (b) and (c)  above  have  been  made  is
 11        hereby appropriated to and shall be paid to the several cities as follows:
 12             (i)  Ninety  percent  (90%)  of the amount appropriated to the cities
 13             shall be distributed to those cities which have  a  liquor  store  or
 14             distribution station located within the corporate limits of the city.
 15             Each  such city shall be entitled to an amount in the proportion that
 16             liquor sales through the dispensary in that city during  the  state's
 17             previous  fiscal  year bear to total liquor sales through the dispen-
 18             sary in the state during the state's  previous  fiscal  year,  except
 19             that  no  city  shall  be  entitled  to an amount less than that city
 20             received in distributions from the liquor account during the  state's
 21             fiscal year 1981;
 22             (ii)  Ten  percent  (10%)  of  the  amount appropriated to the cities
 23             shall be distributed to those cities which do not have a liquor store
 24             or distribution station located within the corporate  limits  of  the
 25             city. Each such city shall be entitled to an amount in the proportion
 26             that  that city's population bears to the population of all cities in
 27             the state which do not have a liquor store  or  distribution  station
 28             located  within the corporate limits of the city, except that no city
 29             shall be entitled to an amount less than that city received  in  dis-
 30             tributions  from  the  liquor  account during the state's fiscal year
 31             1981.
 32        (2)  All transfers and distributions shall be made periodically,  but  not
 33    less  frequently  than quarterly but, the apportionments made to any county or
 34    city, which may during the succeeding three (3) year period be found  to  have
 35    been  in error either of computation or transmittal, shall be corrected during
 36    the fiscal year of discovery by a reduction of apportionments in the  case  of
 37    over-apportionment  or  by an increase of apportionments in the case of under-
 38    apportionment. The decision of the superintendent on entitlements of  counties
 39    and cities shall be final, and shall not be subject to judicial review.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE

                             RS 12563

Idaho Code '23-804 charges the Idaho State Police Alcohol Beverage
Control (ABC) program with the responsibility and duty of assisting
local law enforcement agencies in enforcing the state of Idaho=s
penal provisions of the Idaho liquor act.  ABC is also responsible
for the administration and issuance of licenses; background checks
of potential licensees; premise checks of licensed establishments;
and interpretation of liquor laws.  Nearly 4,000 licenses are
issued/renewed annually in Idaho to sell and dispense alcoholic
beverages.  Additionally, ABC conducts under-age drinking
compliance checks, provides training, and investigates or assists
other law enforcement agencies investigating criminal activity
associated with licensed alcohol beverage establishments (such as
gambling, prohibited acts, and prostitution).  The number of
licenses issued, complaints, investigations, litigation and
requests for assistance from other agencies continues to rise.   

Historically, the enforcement and regulation efforts of ABC have
been supported by the general fund, with no portion paid by the
counties and cities requesting and benefiting from ABC assistance.
ABC is unable to ensure compliance with the alcohol beverage
regulations or meet other agencies= requests for assistance. 
Currently one ABC Detective Sergeant and two Investigative
Assistants carry the enforcement workload demand in the state.   

This request creates dedicated funding for the efforts of the ABC
program, shifting program expense out of the state general fund and
replacing it with monies from the Liquor Distribution Account in
I.C. 23-404.  Currently, this fund supports the activities of the
Idaho State Liquor Dispensary, with excess funds allocated by
formula.  A portion of funds is divided between Idaho=s counties
and cities.  This proposal requests five percent (5%) of the funds
available to the counties and cities to be distributed to the Idaho
State Police.  The money will cover ABC current operating expenses
and allow for increases in personnel to better serve and assist
local law enforcement.                          FISCAL IMPACT

More than four hundred thousand dollars ($400,000) which currently
supports the activities of the ABC program will be reverted to the
general fund.  Impact on the Liquor Dispensary Account, based on
past performance is estimated to be: 


Idaho State Liquor Dispensary
Pro-forma Profit Distributions



(actual)
(est)
(est)



FY02
FY03
FY04


Fixed Distributions:


General fund
4,945,000
4,945,000
4,945,000


Welfare fund
650,000
650,000
650,000


Alcohol treatment fund
1,200,000
1,200,000
1,200,000


Public schools
1,200,000
1,200,000
1,200,000








Community colleges
300,000
300,000
300,000


SUBTOTAL FIXED DIST.
8,295,000
8,295,000
8,295,000








Alcohol beverage control


825,000


Remainder to:





Cities 60%
7,683,496
8,310,000
9,405,000


Counties 40%
5,122,195
5,540,000
6,270,000


SUBTOTAL
12,805,691
13,850,000
15,675,000


Total distributions
21,100,691
22,145,000
24,795,000


Assumes ABC would receive 5% of the balance remaining after fixed
distributions totaling $8,295,000.

The Liquor Dispensary Account is anticipated to continue increasing
at a minimum rate of 3% per year, which exceeds the dollar amount
of the 5% portion allocated to the Idaho State Police.  With this
modest growth, the amount allocated to counties and cities will
continue to increase annually. 






CONTACT
Name:        Ann Thompson
Agency:      Idaho State Police
Phone:       (208) 884-7200

Statement of Purpose/Fiscal Impact                     S102