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S1388......................................................by STATE AFFAIRS
LIQUOR ACCOUNT - Amends existing law to reallocate the transfer and
appropriation of moneys in the Liquor Account.
02/13 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to St Aff
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/23 3rd rdg - PASSED - 25-7-3
AYES -- Brandt(Harper), Broadsword, Burkett, Burtenshaw, Cameron,
Compton, Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Kelly,
Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKenzie,
Schroeder, Stegner, Stennett, Sweet, Werk
NAYS -- Andreason, Bunderson, Hill, Jorgenson, Marley, Richardson,
Williams
Absent and excused -- Coiner, Gannon, Pearce
Floor Sponsors - Cameron, Stegner, Compton & Corder
Title apvd - to House
02/24 House intro - 1st rdg - to St Aff
03/09 Rpt out - rec d/p - to 2nd rdg
03/10 2nd rdg - to 3rd rdg
03/27 3rd rdg - PASSED - 63-0-7
AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Jaquet, Kemp, Lake,
LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Snodgrass,
Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Anderson, Clark, Crow, Henbest, Henderson,
Smith(24), Smylie
Floor Sponsor - Bell
Title apvd - to Senate
03/28 To enrol
03/29 Rpt enrol - Pres signed - Sp signed
03/30 To Governor
03/31 Governor signed
Session Law Chapter 289
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1388
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE STATE LIQUOR ACCOUNT; AMENDING SECTION 23-404, IDAHO CODE, TO
3 REALLOCATE THE TRANSFER AND APPROPRIATION OF MONEYS IN THE LIQUOR ACCOUNT,
4 TO MAKE TECHNICAL CORRECTIONS AND TO PROVIDE CORRECT TERMINOLOGY; DECLAR-
5 ING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
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 fiscal year 2006 through fiscal year 2009, forty percent (40%)
19 of the balance remaining after transferring the amounts authorized by sub-
20 section paragraph (a) above: of this subsection shall be transferred or
21 appropriated pursuant to this paragraph (b). Beginning in fiscal year 2010
22 the percentage transferred pursuant to this paragraph (b) shall increase
23 to forty-two percent (42%) with an increase of two percent (2%) for each
24 subsequent fiscal year thereafter until fiscal year 2014 when such per-
25 centage shall be fifty percent (50%).
26 (i) For fiscal year 2006 and through fiscal year 2009, one million
27 eight hundred thousand dollars ($1,800,000) shall be appropriated and
28 paid to the cities and counties as set forth in paragraphs (c)(i) and
29 (c)(ii) of this subsection;
30 (ii) One million two hundred thousand dollars ($1,200,000) shall be
31 transferred annually to the alcoholism treatment account fund, which
32 is hereby created in the trust and agency fund;
33 (iii) Three hundred thousand dollars ($300,000) shall be transferred
34 annually to the community college account, created by section
35 33-2139, Idaho Code;
36 (iiiv) One million two hundred thousand dollars ($1,200,000) shall
37 be transferred annually to the public school income fund, as defined
38 in section 33-903, Idaho Code;
39 (iv) Four million nine hundred forty-five thousand dollars
40 ($4,945,000) shall be transferred annually to the general account in
41 the state operating fund; and
42 (v) Six hundred fifty thousand dollars ($650,000) shall be trans-
43 ferred annually to the cooperative welfare account in the dedicated
2
1 fund; and
2 (vi) The balance shall be transferred to the general fund.
3 (c) The remainder of the moneys received in the liquor account shall be
4 appropriated and paid as follows:
5 (i) Forty percent (40%) of the balance remaining after the transfers
6 authorized by paragraphs (a) and (b) above of this subsection have
7 been made is hereby appropriated to and shall be paid to the several
8 counties. Each county shall be entitled to an amount in the propor-
9 tion that liquor sales through the dispensary in that county during
10 the state's previous fiscal year bear to total liquor sales through
11 the dispensary in the state during the state's previous fiscal year,
12 except that no county shall be entitled to an amount less than that
13 county received in distributions from the liquor account during the
14 state's fiscal year 1981.
15 (dii) Sixty percent (60%) of the balance remaining after the trans-
16 fers authorized by paragraphs (a) and (b) above of this subsection
17 have been made is hereby appropriated to and shall be paid to the
18 several cities as follows:
19 (i)1. Ninety percent (90%) of the amount appropriated to the
20 cities shall be distributed to those cities which have a liquor
21 store or distribution station located within the corporate lim-
22 its of the city. Each such city shall be entitled to an amount
23 in the proportion that liquor sales through the dispensary in
24 that city during the state's previous fiscal year bear to total
25 liquor sales through the dispensary in the state during the
26 state's previous fiscal year, except that no city shall be enti-
27 tled to an amount less than that city received in distributions
28 from the liquor account during the state's fiscal year 1981;
29 (ii)2. Ten percent (10%) of the amount appropriated to the cit-
30 ies shall be distributed to those cities which do not have a
31 liquor store or distribution station located within the corpo-
32 rate limits of the city. Each such city shall be entitled to an
33 amount in the proportion that that city's population bears to
34 the population of all cities in the state which do not have a
35 liquor store or distribution station located within the corpo-
36 rate limits of the city, except that no city shall be entitled
37 to an amount less than that city received in distributions from
38 the liquor account during the state's fiscal year 1981.
39 (2) All transfers and distributions shall be made periodically, but not
40 less frequently than quarterly but, the apportionments made to any county or
41 city, which may during the succeeding three (3) year period be found to have
42 been in error either of computation or transmittal, shall be corrected during
43 the fiscal year of discovery by a reduction of apportionments in the case of
44 over-apportionment or by an increase of apportionments in the case of under-
45 apportionment. The decision of the superintendent on entitlements of counties
46 and cities shall be final, and shall not be subject to judicial review.
47 SECTION 2. An emergency existing therefor, which emergency is hereby
48 declared to exist, this act shall be in full force and effect on and after its
49 passage and approval, and retroactively to July 1, 2005.
STATEMENT OF PURPOSE
RS 15494
In 1939 legislation was passed that created the Idaho State Liquor
Dispensary. The Liquor dispensary was charged with administering
the liquor control laws and collecting and distributing the liquor
funds. The final legislation in 1939 split any revenues from liquor
sales fifty-fifty between the counties of Idaho and the State
General Fund. In 1953, the Distribution was amended to include
Idaho cities. Today, the liquor revenues fund various programs
throughout local government and the state. Some of the programs
funded include substance abuse treatment, community colleges,
public schools, health and human services, and public safety.
During the 2005 legislative session, the state legislature was
faced with a structurally unbalanced General Fund budget and a one-
time opportunity to purchase water rights that would benefit
cities, counties, and the state. So the legislature "borrowed"
$7.2 million from unexpected growth in the 2005 liquor revenues to
purchase the water rights and allow the State General Fund to
remain intact.
This bill distributes $7.2 million dollars back to local government
over a period of four years as well as re-aligns the liquor revenue
distribution to allow cities, counties, and the state to share in
the revenue growth.
The overall philosophy behind this proposed legislation is to
ensure that local government liquor distributions remained
unharmed. Make certain that revenues "borrowed" by the state to
fund the water purchase agreement in 2005 are paid back. And that
the distribution of future revenues is adjusted over a period of
time so that government entities which share in the costs of public
safety and health and human services share equally in the revenue
source for such programs.
The changes include:
Four $1.8 million dollar payments per year from the state to
the cities and the counties of Idaho in 2006 through 2009;
A structural distribution change from outlined dollar amounts
to a percentage basis distribution; and
A phased in adjustment to the allocation of funds over a
period of 10 years.
FISCAL NOTE
In fiscal year 2006, the net impact to the State General Fund would
be an increase of $2,600,000.00. Starting in fiscal year 2010,
the State General Fund would receive a 2% increase in the total net
liquor funds to distribute. The State General Fund will continue
to receive a 2% increase each fiscal year until 2014, at which
point the state and local governments would share equally in the
distribution of liquor revenues.
Sponsors: Senators Cameron, Corder, Compton & Stegner
Representatives Bell, Bolz, Deal & Pasley-Stuart
Contact: Amy Castro, Legislative Budget & Policy
Phone: 334-4745
STATEMENT OF PURPOSE/FISCAL NOTE S 1388