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S1115......................................................by STATE AFFAIRS
STATE LIQUOR FUND - Amends existing law to clarify that the State Liquor
Account is now the State Liquor Fund; to clarify that moneys in the State
Liquor Account are to be deposited in the liquor fund; and to revise the
distribution of moneys in the State Liquor Fund.
02/14 Senate intro - 1st rdg - to printing
02/15 Rpt prt - to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1115
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO DISTRIBUTIONS OF MONEYS IN THE STATE LIQUOR FUND; AMENDING SECTION
3 23-401, IDAHO CODE, TO CLARIFY THAT THE LIQUOR ACCOUNT IS NOW THE LIQUOR
4 FUND, TO CLARIFY THAT MONEYS IN THE STATE LIQUOR ACCOUNT ARE TO BE DEPOS-
5 ITED IN THE LIQUOR FUND AND TO MAKE A TECHNICAL CORRECTION; AMENDING SEC-
6 TION 23-404, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS AND TO REVISE THE
7 DISTRIBUTION OF MONEYS IN THE STATE LIQUOR FUND; AND AMENDING SECTION
8 63-3638A, IDAHO CODE, TO PROVIDE THAT SALES TAX ON LIQUOR BE PAID TO THE
9 LIQUOR FUND AND TO MAKE A TECHNICAL CORRECTION.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 23-401, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 23-401. LIQUOR ACCOUNT CREATED FUND. The state treasurer shall be custo-
14 dian of an account in the agency asset fund, which is hereby created, and
15 state controller shall maintain and account for a state liquor fund to be
16 known as the "liquor account fund," which shall contain the moneys formerly
17 deposited in the "liquor account" and which shall replace the "liquor account"
18 and into which shall be paid all revenues derived from alcoholic beverages,
19 excise taxes, licenses, permits, fees, profits on sales, sales of equipment
20 and supplies, and all other moneys accruing or received under any of the pro-
21 visions of this act chapter. All moneys, properties, buildings, plants, appa-
22 ratus, real estate, securities acquired by or through the moneys belonging to
23 the liquor account fund, including interest earned thereon, shall be the prop-
24 erty of the liquor account fund.
25 SECTION 2. That Section 23-404, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 23-404. DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT FUND. (1) After collec-
28 tion and distribution of any and all surcharges required under title 23, Idaho
29 Code, tThe moneys received into the liquor account fund shall be transferred
30 or appropriated as follows:
31 (a) An amount of money equal to the actual cost of purchase of alcoholic
32 liquor and payment of expenses of administration and operation of the dis-
33 pensary, as determined by the superintendent and certified quarterly to
34 the state controller, shall be transferred back to the dispensary; pro-
35 vided, that the amount so transferred back for administration and opera-
36 tion of the dispensary shall not exceed the amount authorized to be
37 expended by regular appropriation authorization.
38 (b) From the balance remaining after transferring the amounts authorized
39 by subsection paragraph (a) above of this subsection:
40 (i) One million two hundred thousand dollars ($1,200,000) shall be
41 transferred annually to the alcoholism treatment account fund, which
2
1 is hereby created in the trust and agency fund;
2 (ii) Three hundred thousand dollars ($300,000) shall be transferred
3 annually to the community college account fund, created by section
4 33-2139, Idaho Code;
5 (iii) One million two hundred thousand dollars ($1,200,000) shall be
6 transferred annually to the public school income fund, as defined in
7 section 33-903, Idaho Code;
8 (iv) Four million nine hundred forty-five thousand dollars
9 ($4,945,000) shall be transferred annually to the general account in
10 the state operating fund; and
11 (v) Six hundred fifty thousand dollars ($650,000) shall be trans-
12 ferred annually to the cooperative welfare account in the dedicated
13 fund.
14 (vi) Seventeen million four hundred thirty thousand dollars
15 ($17,430,000) shall be allocated annually to the county-city allot-
16 ment to be distributed in accordance with subsections (1)(c) and
17 (1)(d) of this section.
18 (vii) For any balance remaining after the distributions in subsec-
19 tions (1)(b)(i) through (vi) of this section, fifty percent (50%)
20 shall be transferred annually to the general fund and fifty percent
21 (50%) shall be allocated to the county-city allotment to be distrib-
22 uted in accordance with subsections (1)(c) and (1)(d) of this sec-
23 tion.
24 (viii) In the event the balance in the liquor fund is insufficient to
25 pay the full amount set forth in subsections (1)(b)(i) through (vi)
26 of this section, payment of the sums under this subsection (1)(b)
27 shall be made first to subsections (1)(b)(i) through (v) of this sec-
28 tion, to be prorated according to their relative amounts if the fund
29 balance is insufficient to pay the amounts in subsections (1)(b)(i)
30 through (v) of this section in full, with any balance thereafter
31 applied to subsection (1)(b)(vi) of this section.
32 (c) Forty percent (40%) of the balance remaining after the transfers
33 authorized by paragraphs (a) and (b) above have been made county-city
34 allotment is hereby appropriated to and shall be paid to the several coun-
35 ties. Each county shall be entitled to an amount in the proportion that
36 liquor sales through the dispensary in that county during the state's pre-
37 vious fiscal year bear to total liquor sales through the dispensary in the
38 state during the state's previous fiscal year, except that no county shall
39 be entitled to an amount less than that county received in distributions
40 from the liquor account fund during the state's fiscal year 1981 2004.
41 (d) Sixty percent (60%) of the balance remaining after the transfers
42 authorized by paragraphs (a) and (b) above have been made county-city
43 allotment is hereby appropriated to and shall be paid to the several cit-
44 ies as follows:
45 (i) Ninety percent (90%) of the amount appropriated to the cities
46 shall be distributed to those cities which have a liquor store or
47 distribution station located within the corporate limits of the city.
48 Each such city shall be entitled to an amount in the proportion that
49 liquor sales through the dispensary in that city during the state's
50 previous fiscal year bear to total liquor sales through the dispen-
51 sary in the state during the state's previous fiscal year, except
52 that no city shall be entitled to an amount less than that city
53 received in distributions from the liquor account fund during the
54 state's fiscal year 1981 2004;
55 (ii) Ten percent (10%) of the amount appropriated to the cities
3
1 shall be distributed to those cities which do not have a liquor store
2 or distribution station located within the corporate limits of the
3 city. Each such city shall be entitled to an amount in the proportion
4 that that city's population bears to the population of all cities in
5 the state which do not have a liquor store or distribution station
6 located within the corporate limits of the city, except that no city
7 shall be entitled to an amount less than that city received in dis-
8 tributions from the liquor account fund during the state's fiscal
9 year 1981 2004.
10 (2) All transfers and distributions shall be made periodically, but not
11 less frequently than quarterly but, the apportionments made to any county or
12 city, which may during the succeeding three (3) year period be found to have
13 been in error either of computation or transmittal, shall be corrected during
14 the fiscal year of discovery by a reduction of apportionments in the case of
15 over-apportionment or by an increase of apportionments in the case of under-
16 apportionment. The decision of the superintendent on entitlements of counties
17 and cities shall be final, and shall not be subject to judicial review.
18 SECTION 3. That Section 63-3638A, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-3638A. SALES TAX ON LIQUOR TO BE PAID TO LIQUOR ACCOUNT FUND. Notwith-
21 standing the provisions of section 63-3638, Idaho Code, the sales tax col-
22 lected on the retail sale of liquor by the superintendent of the state liquor
23 dispensary shall be credited directly to the liquor account fund, and shall
24 not be or become a part of the sales tax account fund.
STATEMENT OF PURPOSE
RS14823
This bill will freeze the current distribution of the Liquor Fund (Idaho Code, Section 23-404) at
the fiscal year 2004 levels and then reallocate any future growth 50% to the counties and cities
and 50% to the General Fund. This bill also provides a hierarchy for distribution in the
unlikely event the future distributable balance in the Liquor Fund fall below the 2004
levels.
Section 23-404, Idaho Code, provides the formula for distribution of Liquor Fund profits.
The current formula, established in 1985, allocates fixed annual distributions to:
$1,200,000 Alcohol Treatment Fund
$ 300,000 Community Colleges
$1,200,000 Public Schools
$4,945,000 General Fund
$ 650,000 Cooperative Welfare Fund
The remaining balance of Liquor Fund profits, after the above fixed distributions, is
allocated to the counties and cities.
Since 1985, the counties and cities share of Liquor Fund distributions has grown from
$4,485,000 to $17,430,000, while the General Fund share has remained fixed at
$4,945,000.
This bill would allow the General Fund to share equally with the counties and cities in
any future growth in Liquor Fund profits.
FISCAL IMPACT
This bill would have the following effect on estimated Liquor Fund distributions:
Current formula Proposed formula General Cities and
General Cities and General Cities and Fund Counties
Fund Counties Fund Counties Increase Decrease
FY04 4,945,000 17,430,000 4,945,000 17,430,000 - -
FY05 4,945,000 18,965,000 4,945,000 18,965,000 - -
FY06 4,945,000 19,528,000 5,944,000 18,479,000 1,049,000 (1,049,000)
FY07 4,945,000 20,981,000 6,721,000 19,205,000 1,776,000 (1,776,000)
FY08 4,945,000 22,433,000 7,446,000 19,932,000 2,501,000 (2,501,000)
FY09 4,945,000 23,886,000 8,173,000 20,658,000 3,228,000 (3,228,000)
CONTACT
Name: Dyke Nally
Agency: State Liquor Dispensary
Phone: 947-9402
STATEMENT OF PURPOSE/FISCAL NOTE S 1115