2007 Legislation
Print Friendly

HOUSE BILL NO. 49 – Wine, sale


View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status

H0049......................................................by STATE AFFAIRS
WINE - Amends, adds to and repeals existing law to revise provisions
relating to the sale of certain products by licensed wineries; to provide
for the use of a retail wine outlet by two or more wineries; and to provide
for wine product sales at sponsored events.
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to St Aff

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 49
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
  9    Be It Enacted by the Legislature of the State of Idaho:
 10        SECTION  1.  That  Section 23-1303, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
 12        23-1303.  DEFINITIONS. The following terms as used  in  this  chapter  are
 13    hereby defined as follows:
 14        (a)  "Table  wine"  shall  mean any alcoholic beverage containing not more
 15    than sixteen percent (16%) alcohol by volume obtained by the  fermentation  of
 16    the  natural sugar content of fruits or other agricultural products containing
 17    sugar whether or not other ingredients are added.
 18        (b)  "Director" means the director of the Idaho state police.
 19        (c)  "Dessert wine" means only those  beverages  that  are  designated  or
 20    labeled,  pursuant  to  the  federal  alcohol administration act, as "sherry,"
 21    "madeira" or "port," which contain more than sixteen percent (16%) alcohol  by
 22    volume,  but do not exceed twenty-one percent (21%) alcohol by volume meet the
 23    definition of wine and are derived in part from added grape brandy or alcohol,
 24    and are in excess of sixteen percent (16%) alcohol by volume but not in excess
 25    of twenty-four percent (24%) alcohol by volume. Dessert wine as defined herein
 26    shall not be deemed to be a spirit based beverage for the purposes of  subsec-
 27    tion (p) of this section.
 28        (d)  "Retail  wine license" means a license issued by the director, autho-
 29    rizing a person to sell table wine and/or dessert wine at retail for  consump-
 30    tion off the licensed premises.
 31        (e)  "Wine  distributor's  license" means a license issued by the director
 32    to a person authorizing such person to distribute table wine or  dessert  wine
 33    to retailers within the state of Idaho.
 34        (f)  "Wine importer's license" means a license issued by the director to a
 35    person  authorizing  such person to import table wine or dessert wine into the
 36    state of Idaho and to sell and distribute such wines to a distributor.
 37        (g)  "Retailer" means a person to whom a  retail  wine  license  has  been
 38    issued.
 39        (h)  "Distributor" means a person to whom a wine distributor's license has
 40    been issued.
 41        (i)  "Importer"  means a person to whom a wine importer's license has been
 42    issued.
 43        (j)  "Winery" means a place, premises or establishment within the state of
  1    Idaho for the manufacture or bottling of table wine or dessert wine for sale.
  2        (k)  "Winery license" means a license issued by the director authorizing a
  3    person to maintain a winery.
  4        (l)  "Vintner" means a person who manufactures, bottles,  or  sells  table
  5    wine  or  dessert  wine to importers for resale within this state other than a
  6    licensed "winery" as herein defined.
  7        (m)  "Person" includes an individual,  firm,  copartnership,  association,
  8    corporation,    or any group or combination acting as a unit, and includes the
  9    plural as well as the singular unless the intent to give a more limited  mean-
 10    ing is disclosed by the context in which it is used.
 11        (n)  "Wine  by  the  drink  license" means a license to sell table wine or
 12    dessert wine by the individual glass or opened bottle at retail, for  consump-
 13    tion on the premises only.
 14        (o)  "Domestic  produced product" means wine at least seventy-five percent
 15    (75%) of which by volume is derived from fruit or agricultural products  grown
 16    in Idaho.
 17        (p)  "Low  proof spirit beverages" means any alcoholic beverage containing
 18    not more than fourteen percent (14%) alcohol by volume obtained  by  distilla-
 19    tion  mixed  with  drinkable  water,  fruit juices and/or other ingredients in
 20    solution. These products shall be considered and taxed as wine.  Spirit  based
 21    beverages  exceeding fourteen percent (14%) alcohol by volume shall be consid-
 22    ered as liquor and sold only through the state liquor dispensary system.
 23        (q)  "Wine" includes table wine  and  dessert  wine,  unless  the  context
 24    requires otherwise.
 25        (r)  "Theater"  means  a room, place or outside structure for performances
 26    or readings of dramatic literature, plays or dramatic  representations  of  an
 27    art form not in violation of any provision of Idaho law.
 28        (s)  "Live performance" means a performance occurring in a theater and not
 29    otherwise in violation of any provision of Idaho law.
 30        (t)  All  other words and phrases used in this chapter, the definitions of
 31    which are not herein given, shall be given their ordinary and commonly  under-
 32    stood and accepted meanings.
 33        SECTION  2.  That  Section 23-1306, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
 36    any  person  shall manufacture, import into this state, manufacture, bottle or
 37    broker for resale within this state, possess for resale, or distribute or sell
 38    wine within the state of Idaho, he shall apply to the director for  a  license
 39    to so do. The application form shall be prescribed and furnished by the direc-
 40    tor  and  require that the applicant therein show that he possesses all of the
 41    qualifications and none of the disqualifications of a licensee. A  person  may
 42    apply  for and receive a license as both a distributor and importer, if other-
 43    wise qualified therefor, and shall pay the license fee  required  pursuant  to
 44    this chapter for each license. A winery licensed under this chapter shall also
 45    be  considered as holding, for the purposes of selling a product processed and
 46    bottled by or for that winery, a current retail wine license and wine  by  the
 47    drink  license  for  the licensed premises and for use at functions and events
 48    identified in section 23-1338, Idaho Code, and a  current  wine  distributor's
 49    and importer's license, without further application or fee. If the director is
 50    satisfied that the applicant possesses the qualifications and none of the dis-
 51    qualifications for such license, he shall issue a license for each classifica-
 52    tion applied for, subject to the restrictions of and upon the conditions spec-
 53    ified  in  this  act  chapter.  The license or licenses issued shall be at all
  1    times prominently displayed in the place of business of the licensee.  If  the
  2    director  determines  that  the  applicant is not properly qualified, he shall
  3    refuse to issue a license and shall forthwith  so  notify  the  applicant  and
  4    shall  return  to the applicant with such notification, three-fourths (3/4) of
  5    the license fee remitted with the application. A separate retail wine  by  the
  6    drink license, and wine distributor's license shall be required for each prem-
  7    ises.  Provided,  however,  nothing  herein  shall  prohibit  a distributor or
  8    retailer or wine by the drink licensee from possessing licenses for more  than
  9    one (1) premises.
 10        SECTION  3.  That  Section 23-1325, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
 13    AID PERMITTED. (1) It shall be unlawful for any importer, distributor, vintner
 14    or  winery, directly or indirectly, or through an affiliate, subsidiary, offi-
 15    cer, director, agent or employee:
 16        (a)  To have any financial interest in any licensed  retailer's  business,
 17        or to own or control any real property upon which a licensed retailer con-
 18        ducts  his  business,  except such property as shall have been so owned or
 19        controlled continuously for more than one (1) year prior to July 1,  1975;
 20        or
 21        (b)  To  aid  or  assist any licensed retailer by giving such retailer, or
 22        any employee thereof, any discounts, premiums  or  rebates  in  connection
 23        with any sale of wine; or
 24        (c)  To aid or assist any retailer by furnishing, giving, renting, lending
 25        or  selling any equipment, signs, supplies, wine menus or wine lists, ser-
 26        vices, or other thing of  value  which  may  be  used  in  conducting  the
 27        retailer's  retail  wine  business,  except as expressly permitted by this
 28        chapter; or
 29        (d)  To enter into any lease or other agreement with any  retail  licensee
 30        to control the product or products sold by such retailer; or
 31        (e)  To  provide  for  any  rental or other charge to be paid to or by the
 32        retailer for product display or advertising display space.
 33        (2)  An importer, distributor, vintner or winery as an  incident  to  mer-
 34    chandising  in  the  ordinary  course  of  business,  and  if available to all
 35    licensed retailers without discrimination, may sell to a  retailer  equipment,
 36    supplies  or  clothing  which  may be used in conducting the retailer's retail
 37    wine business. A winery, vintner, importer or distributor may  not  sell  such
 38    equipment  or  supplies  at  a  price, or under terms, intended or designed to
 39    encourage or induce the retailer to use products of the seller to  the  exclu-
 40    sion  of  the products of other wineries, vintners, importers or distributors.
 41    In no event shall the sales price of such equipment or supplies be  less  than
 42    the reasonable value of such equipment or supplies.
 43        (3)  Notwithstanding  the  provisions of subsection (2) of this section, a
 44    vintner, winery, importer or distributor, as an incident to  merchandising  in
 45    the  ordinary  course  of  business, and if available to all retailers without
 46    discrimination, may lend, give, furnish or sell to a retailer,  the  following
 47    items:
 48        (a)  Those services, equipment, brochures and recipes authorized under the
 49        provisions of sections 23-1325A and 23-1325B, Idaho Code;
 50        (b)  Signs,  posters,  placards,  designs, devices, decorations or graphic
 51        displays bearing advertising matter and for use in windows or elsewhere in
 52        the interior of a retail establishment. The importer, distributor, vintner
 53        or winery shall not directly or indirectly pay or credit the retailer  for
  1        displaying  such  materials  or for any expense incidental to their opera-
  2        tion;
  3        (c)  Newspaper cuts, mats or engraved blocks for use in retailer's  adver-
  4        tisements;
  5        (d)  Items  such  as  sports  schedules, posters, calendars, informational
  6        pamphlets, decals and other similar materials for display at the point  of
  7        sale  which bear brand advertising for wine prominently displayed thereon,
  8        and which items are intended for use by the retailer's customers  off  the
  9        licensed  premises  and  which  items are made available to the retailer's
 10        customers for such purpose.;
 11        (e)  Temporary signs  or  banners  displaying  a  vintner's,  winery's  or
 12        distributor's name, trademark or label, which signs may be permitted to be
 13        temporarily  displayed on the exterior portion of the retailer premises in
 14        connection with a special event, in accordance with  such  rules  relating
 15        thereto as may be established by the director.
 16        (4)  A  distributor may perform services incident to or in connection with
 17    the stocking, rotation and restocking of  wine  sold  and  delivered  to  such
 18    licensed  retailer  on  or  in  such  licensed retailer's storeroom, salesroom
 19    shelves or refrigerating units, including the marking or remarking of contain-
 20    ers of such wine to indicate the selling price as established by the  retailer
 21    and  to  the  arranging,  rearranging,  or  relocating of advertising displays
 22    referred to in this section. A distributor may, with  the  permission  of  the
 23    retailer  and  in  accordance with space allocations directed by the retailer,
 24    set, remove, replace, reset or relocate all wine upon shelves of the retailer.
 25    Labor performed or schematics prepared by the distributor relating to  conduct
 26    authorized  pursuant  to the provisions of this paragraph subsection (4) shall
 27    not constitute prohibited conduct.
 28        (5)  An importer, distributor, vintner or winery may furnish or give to  a
 29    retailer authorized to sell wine for consumption on the licensed premises, for
 30    sampling  purposes  only, a container of wine, containing not more than sixty-
 31    four (64) ounces, not currently being sold by the  retailer,  and  which  con-
 32    tainer is clearly marked "NOT FOR SALE--FOR SAMPLING PURPOSES ONLY."
 33        (6)  A  licensed  winery  may  aid or assist a licensed retail wine outlet
 34    which retails exclusively the wine product of that winery and which outlet  is
 35    wholly owned and operated by that winery. Two (2) or more wineries may use the
 36    same  location  for  their respective retail wine outlets provided each outlet
 37    holds a separate retail wine license or wine by the drink license.
 38        (7)  Every violation of the provisions of this  section  by  an  importer,
 39    distributor,  vintner or winery in which a licensed retailer shall have activ-
 40    ely participated shall constitute a violation on the  part  of  such  licensed
 41    retailer.
 42        SECTION  4.  That  Chapter  13,  Title 23, Idaho Code, be, and the same is
 43    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 44    ignated as Section 23-1338, Idaho Code, and to read as follows:
 45        23-1338.  WINE  PRODUCT  SALES  -- SPONSORED EVENTS. Any person who is the
 46    holder of an Idaho winery license is authorized to sell any  wine  product  of
 47    that  winery  at  events  of  seven (7) days duration or less sponsored by any
 48    group, organization, person or political subdivision. Each participating  win-
 49    ery  must  make  its own arrangements with the sponsoring group, organization,
 50    person or political subdivision. Sales under the authority of this section may
 51    occur only in counties that permit the sale of wine in accordance with section
 52    23-1304, Idaho Code, and those sales must comply with all  applicable  limita-
 53    tions and requirements regarding day and hour of sale and age and condition of
  1    purchasers.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                           RS 16608C1

The purpose of this legislation is to:
     (1) Modify the definition of a "Dessert Wine".
     (2) Revise provisions relating to the sale of certain
         products by licensed wineries.
     (3) Allow two or more wineries to use the same location for
         their retail sales.
     (4) Allow for wine sales at sponsored events.

                         FISCAL IMPACT

There is no fiscal impact to the General Fund.

Name:  Rep. Darrell Bolz 
Phone: 332-1000
Sen. Patti Anne Lodge

STATEMENT OF PURPOSE/FISCAL NOTE                          H 49