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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 CREATEDFUND. 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 accountfund," 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 actchapter. All moneys, properties, buildings, plants, appa- 22 ratus, real estate, securities acquired by or through the moneys belonging to 23 the liquor accountfund, including interest earned thereon, shall be the prop- 24 erty of the liquor accountfund. 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 ACCOUNTFUND. (1) After collec- 28 tion and distribution of any and all surcharges required under title 23, Idaho 29 Code, t The moneys received into the liquor accountfund 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 subsectionparagraph (a) aboveof this subsection: 40 (i) One million two hundred thousand dollars ($1,200,000) shall be 41 transferred annually to the alcoholism treatment accountfund, 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 accountfund, 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 in10 the state operatingfund; and 11 (v) Six hundred fifty thousand dollars ($650,000) shall be trans- 12 ferred annually to the cooperative welfare account in the dedicated13 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 transfers33 authorized by paragraphs (a) and (b) above have been madecounty-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 accountfund during the state's fiscal year 19812004. 41 (d) Sixty percent (60%) of the balance remaining after the transfers42 authorized by paragraphs (a) and (b) above have been madecounty-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 accountfund during the 54 state's fiscal year 19812004; 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 accountfund during the state's fiscal 9 year 19812004. 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 ACCOUNTFUND. 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 accountfund, and shall 24 not be or become a part of the sales tax accountfund.
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