View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0180...............................................by REVENUE AND TAXATION
LIQUOR ACCOUNT - Amends existing law to provide for distributions from the
liquor account to the Substance Abuse Treatment Fund, to the Drug Court,
Mental Health Court and Family Court Services Fund and to the Drug and
Mental Health Court Supervision Fund; to create the Substance Abuse
Treatment Fund and to provide for what moneys in the fund may be utilized;
to create the Drug and Mental Health Court Supervision Fund and to provide
for what moneys in the fund may be utilized; and to provide for
distribution of revenues from the tax on beer and the tax on wine to the
Substance Abuse Treatment Fund.
02/12 House intro - 1st rdg - to printing
02/13 Rpt prt - to Rev/Tax
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Chadderdon, Chavez, Chew, Clark,
Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ring, Ringo, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
Speaker
NAYS -- None
Absent and excused -- Bradford, Roberts
Floor Sponsor - Clark
Title apvd - to Senate
02/21 Senate intro - 1st rdg - to St Aff
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/13 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Jorgenson
Title apvd - to House
03/14 To enrol
03/15 Rpt enrol - Sp signed - Pres signed
03/16 To Governor
03/21 Governor signed
Session Law Chapter 141
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 180
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO DISTRIBUTION OF MONEYS IN THE STATE LIQUOR ACCOUNT; AMENDING SEC-
3 TION 23-404, IDAHO CODE, TO PROVIDE DISTRIBUTIONS FROM THE LIQUOR ACCOUNT
4 TO THE SUBSTANCE ABUSE TREATMENT FUND, TO THE DRUG COURT, MENTAL HEALTH
5 COURT AND FAMILY COURT SERVICES FUND AND TO THE DRUG AND MENTAL HEALTH
6 COURT SUPERVISION FUND; AMENDING CHAPTER 4, TITLE 23, IDAHO CODE, BY THE
7 ADDITION OF A NEW SECTION 23-408, TO CREATE THE SUBSTANCE ABUSE TREATMENT
8 FUND AND TO PROVIDE FOR WHAT THE MONEYS IN THE FUND MAY BE UTILIZED;
9 AMENDING CHAPTER 4, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
10 23-409, IDAHO CODE, TO CREATE THE DRUG AND MENTAL HEALTH COURT SUPERVISION
11 FUND AND TO PROVIDE FOR WHAT THE MONEYS IN THE FUND MAY BE UTILIZED;
12 AMENDING SECTION 23-603, IDAHO CODE, TO PROVIDE A CORRECT FUND NAME AND TO
13 PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION 23-1008, IDAHO CODE, TO
14 PROVIDE FOR DISTRIBUTIONS TO THE SUBSTANCE ABUSE TREATMENT FUND AND TO
15 MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 23-1319, IDAHO CODE, TO
16 PROVIDE FOR DISTRIBUTIONS TO THE SUBSTANCE ABUSE TREATMENT FUND.
17 Be It Enacted by the Legislature of the State of Idaho:
18 SECTION 1. That Section 23-404, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 23-404. DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT. (1) The moneys received
21 into the liquor account shall be transferred or appropriated as follows:
22 (a) An amount of money equal to the actual cost of purchase of alcoholic
23 liquor and payment of expenses of administration and operation of the dis-
24 pensary, as determined by the superintendent and certified quarterly to
25 the state controller, shall be transferred back to the dispensary; pro-
26 vided, that the amount so transferred back for administration and opera-
27 tion of the dispensary shall not exceed the amount authorized to be
28 expended by regular appropriation authorization.
29 (b) From fiscal year 2006 through fiscal year 2009, forty percent (40%)
30 of the balance remaining after transferring the amounts authorized by
31 paragraph (a) of this subsection shall be transferred or appropriated pur-
32 suant to this paragraph (b). Beginning in fiscal year 2010 the percentage
33 transferred pursuant to this paragraph (b) shall increase to forty-two
34 percent (42%) with an increase of two percent (2%) for each subsequent
35 fiscal year thereafter until fiscal year 2014 when such percentage shall
36 be fifty percent (50%).
37 (i) For fiscal year 2006 and through fiscal year 2009, one million
38 eight hundred thousand dollars ($1,800,000) shall be appropriated and
39 paid to the cities and counties as set forth in paragraphs (c)(i) and
40 (c)(ii) of this subsection;
41 (ii) One Two million two hundred eighty thousand dollars
42 ($1,200,0002,080,000) shall be transferred annually to the alcoholism
43 substance abuse treatment fund, which is hereby created in the trust
2
1 and agency fund section 23-408, Idaho Code;
2 (iii) Three hundred thousand dollars ($300,000) shall be transferred
3 annually to the community college account, created by section
4 33-2139, Idaho Code;
5 (iv) 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 (v) Six hundred fifty thousand dollars ($650,000) shall be trans-
9 ferred annually to the cooperative welfare account in the dedicated
10 fund; and
11 (vi) Six hundred eighty thousand dollars ($680,000) shall be trans-
12 ferred annually to the drug court, mental health court and family
13 court services fund; and
14 (vii) Four hundred forty thousand dollars ($440,000) shall be trans-
15 ferred annually to the drug and mental health court supervision fund
16 which is created in section 23-409, Idaho Code; and
17 (viii) The balance shall be transferred to the general fund.
18 (c) The remainder of the moneys received in the liquor account shall be
19 appropriated and paid as follows:
20 (i) Forty percent (40%) of the balance remaining after the trans-
21 fers authorized by paragraphs (a) and (b) of this subsection have
22 been made is hereby appropriated to and shall be paid to the several
23 counties. Each county shall be entitled to an amount in the propor-
24 tion that liquor sales through the dispensary in that county during
25 the state's previous fiscal year bear to total liquor sales through
26 the dispensary in the state during the state's previous fiscal year,
27 except that no county shall be entitled to an amount less than that
28 county received in distributions from the liquor account during the
29 state's fiscal year 1981.
30 (ii) Sixty percent (60%) of the balance remaining after the trans-
31 fers authorized by paragraphs (a) and (b) of this subsection have
32 been made is hereby appropriated to and shall be paid to the several
33 cities as follows:
34 1. Ninety percent (90%) of the amount appropriated to the cit-
35 ies shall be distributed to those cities which have a liquor
36 store or distribution station located within the corporate lim-
37 its of the city. Each such city shall be entitled to an amount
38 in the proportion that liquor sales through the dispensary in
39 that city during the state's previous fiscal year bear to total
40 liquor sales through the dispensary in the state during the
41 state's previous fiscal year, except that no city shall be enti-
42 tled to an amount less than that city received in distributions
43 from the liquor account during the state's fiscal year 1981;
44 2. Ten percent (10%) of the amount appropriated to the cities
45 shall be distributed to those cities which do not have a liquor
46 store or distribution station located within the corporate lim-
47 its of the city. Each such city shall be entitled to an amount
48 in the proportion that that city's population bears to the popu-
49 lation of all cities in the state which do not have a liquor
50 store or distribution station located within the corporate lim-
51 its of the city, except that no city shall be entitled to an
52 amount less than that city received in distributions from the
53 liquor account during the state's fiscal year 1981.
54 (2) All transfers and distributions shall be made periodically, but not
55 less frequently than quarterly but, the apportionments made to any county or
3
1 city, which may during the succeeding three (3) year period be found to have
2 been in error either of computation or transmittal, shall be corrected during
3 the fiscal year of discovery by a reduction of apportionments in the case of
4 over-apportionment or by an increase of apportionments in the case of under-
5 apportionment. The decision of the superintendent on entitlements of counties
6 and cities shall be final, and shall not be subject to judicial review.
7 SECTION 2. That Chapter 4, Title 23, Idaho Code, be and the same is
8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
9 ignated as Section 23-408, Idaho Code, and to read as follows:
10 23-408. SUBSTANCE ABUSE TREATMENT FUND. There is hereby created in the
11 state treasury, the substance abuse treatment fund. Moneys remitted to the
12 substance abuse treatment fund by the state liquor dispensary and from the tax
13 on beer and wine are intended to be utilized for substance abuse treatment
14 services at both the state and local levels. Moneys in the fund may be
15 expended pursuant to appropriation and are intended to assist state government
16 and local units of government in providing affordable, accessible substance
17 abuse treatment services, including crisis intervention and detoxification
18 services, inpatient and outpatient treatment services, and recovery support
19 services for all Idaho residents. The state treasurer is authorized to invest
20 all idle moneys in the fund and the interest earned on such investment shall
21 be returned to the fund.
22 SECTION 3. That Chapter 4, Title 23, Idaho Code, be and the same is
23 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
24 ignated as Section 23-409, Idaho Code, and to read as follows:
25 23-409. DRUG AND MENTAL HEALTH COURT SUPERVISION FUND. There is hereby
26 created in the state treasury, the drug and mental health court supervision
27 fund. Moneys remitted to the drug and mental health court supervision fund by
28 the state liquor dispensary are intended to be utilized by the Idaho depart-
29 ment of correction for the supervision of offenders sentenced to drug or men-
30 tal health court. Moneys in the fund may be expended pursuant to appropriation
31 and are intended to assist the courts in managing and monitoring this high-
32 risk and high-need population. The state treasurer is authorized to invest all
33 idle moneys in the fund and the interest earned on such investment shall be
34 returned to the fund.
35 SECTION 4. That Section 23-603, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 23-603. DISPENSING TO A PERSON UNDER THE AGE OF TWENTY-ONE YEARS. Any
38 person who is eighteen (18) years of age or older who shall sell, give, or
39 furnish, or cause to be sold, given, or furnished, alcohol beverage, including
40 any distilled spirits, beer or wine, to a person under the age of twenty-one
41 (21) years shall be guilty of a misdemeanor and upon conviction thereof may be
42 punished by a fine of not less than five hundred dollars ($500) nor more than
43 one thousand dollars ($1,000) per violation, or by imprisonment in the county
44 jail for a period not to exceed one (1) year, or by both such fine and impris-
45 onment. A second or subsequent violation of this section by the same defendant
46 shall constitute a misdemeanor and upon conviction thereof the defendant shall
47 be punished by a fine of not less than one thousand dollars ($1,000) nor more
48 than two thousand dollars ($2,000) per violation, or imprisonment in the
49 county jail for a period not to exceed one (1) year, or by both such fine and
4
1 imprisonment. Notwithstanding the provisions of section 19-4705, Idaho Code,
2 moneys received pursuant to such fines shall be deposited in the alcoholism
3 substance abuse treatment fund, as created in section 23-4048, Idaho Code.
4 Upon conviction of any person for a violation of the provisions of this sec-
5 tion, the court shall notify the director of the Idaho state police. The
6 director shall review the circumstances of the conviction, and if the dispens-
7 ing took place at a licensed establishment or other retailer or distributor,
8 the director may take administrative action he considers appropriate against
9 the licensee or business including suspension of the license for not to exceed
10 six (6) months, a fine, or both such suspension and fine.
11 SECTION 5. That Section 23-1008, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 23-1008. TAX -- DISTRIBUTION -- RULES -- REPORTS. (1) A tax of four dol-
14 lars and sixty-five cents ($4.65) per barrel of thirty-one (31) gallons, and a
15 like rate for any other quantity or fraction thereof, is hereby levied and
16 imposed upon each and every barrel of beer sold for use within the state of
17 Idaho.
18 Any wholesaler who shall sell beer, upon which the tax herein imposed has
19 not been paid and any person who shall purchase, receive, transport, store or
20 sell any beer upon which the tax herein imposed has not been paid, shall be
21 guilty of a misdemeanor, and any beer so purchased, received, transported,
22 stored or possessed or sold shall be subject to seizure by the commission, any
23 inspector or investigator of the commission, or by any sheriff, constable or
24 other police officer, and same may be removed and kept for evidence. Upon con-
25 viction of any person for violation of this section, the said beer, and all
26 barrels, kegs, cases, cartons and cans containing the same shall be forfeited
27 to the state of Idaho, and, in addition, the person so convicted shall be sub-
28 ject to the other penalties in this act prescribed.
29 Beer and all barrels, kegs, cases, cartons or cans so forfeited to the
30 state of Idaho shall be sold by the commission at public auction to any
31 brewer, wholesaler or retailer, licensed under the provisions of this act,
32 making the highest bid. Such sale shall be held at such place and time as may
33 be designated by the commission after reasonable notice thereof given in such
34 manner and for such time as the commission may by regulation rule prescribe.
35 From the purchase price received upon such sale, the commission shall first
36 deduct an amount sufficient to pay the tax due on such beer, and to pay all
37 costs incurred in connection with such sale. The commission shall deposit the
38 balance remaining with the state treasurer, who shall place the same in the
39 general account of the state of Idaho, and it shall become a part thereof.
40 (2) The revenues received from the taxes, interest, penalties, or defi-
41 ciency payments imposed by this section shall be distributed as follows:
42 (a) An amount of money shall be distributed to the state refund account
43 sufficient to pay current refund claims. All refunds authorized by law to
44 be paid by the tax commission shall be paid through the state refund
45 account and those moneys are continuously appropriated.
46 (b) The balance remaining after distributing the amount in paragraph (a)
47 of this subsection shall be distributed as follows:
48 (i) Twenty percent (20%) shall be distributed to the alcoholism
49 treatment account substance abuse treatment fund which is created in
50 section 23-408, Idaho Code;
51 (ii) Thirty-three percent (33%) shall be distributed to the perma-
52 nent building account; and
53 (iii) The remainder shall be distributed to the general account.
5
1 (3) The commission is empowered, and it shall be the commission's duty to
2 prescribe rules: and regulations:
3 (a) For reports by carriers for hire and also all other carriers owned
4 and/or employed, directly or indirectly, by out of state brewers, dealers
5 or other persons, of all deliveries of beer in and into the state of
6 Idaho, stating especially the origin and destination of the beer, the
7 quantity thereof, and also the names and addresses, respectively of the
8 consignors and consignees.
9 (b) For reports by out of state brewers and manufacturers of beer, of all
10 shipments by them of beer into the state of Idaho, stating especially the
11 matters mentioned in paragraph (a) of this subsection.
12 SECTION 6. That Section 23-1319, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 23-1319. EXCISE TAX -- SALES INCLUDED -- REFUND FOR EXPORT SALES --
15 REFUND FOR BREAKAGE OR SPOILAGE -- DISTRIBUTION OF REVENUE. Upon all wines
16 sold by a distributor or winery to a retailer or consumer and upon all wines
17 sold and shipped directly to Idaho state residents by an out-of-state wine
18 manufacturer holding a wine direct shipper permit under section 23-1309A,
19 Idaho Code, for use within the state of Idaho pursuant to this chapter there
20 is hereby imposed an excise tax of forty-five cents (45¢) per gallon. Sales of
21 wine by a distributor or winery for the purpose of and resulting in export of
22 wine from this state for resale outside this state shall be exempt from the
23 taxes on wine imposed by this chapter.
24 (a) Every sale of wine by a distributor to a retailer shall constitute a
25 sale of wine for resale or consumption in this state, whether the sale is made
26 within or without this state, and the distributor shall be liable for the pay-
27 ment of taxes. In every transfer of wine by a licensed winery to its licensed
28 retail outlet, the winery shall be liable for payment of taxes.
29 (b) When wine has been destroyed by breakage or has spoiled or otherwise
30 become unfit for beverage purposes prior to payment of taxes on it, the dis-
31 tributor, upon satisfactory proof of destruction or spoilage, shall be enti-
32 tled to deduct from existing inventories, subject to tax, the amount of wine
33 so destroyed or spoiled.
34 (c) If the tax commission determines that any amount due under this chap-
35 ter has been paid more than once or has been erroneously or illegally col-
36 lected or computed, the commission shall set forth that fact in its records
37 and the excess amount paid or collected may be credited on any amount then due
38 and payable to the commission from that person and any balance refunded to the
39 person by whom it was paid or to his successors, administrators or executors.
40 The commission is authorized and the state board of tax appeals is authorized
41 to order the commission in proper cases to credit or refund such amounts
42 whether or not the payments have been made under protest and certify the
43 refund to the state board of examiners.
44 (d) No credit or refund shall be allowed or made after three (3) years
45 from the time the payment was made, unless before the expiration of that
46 period a claim is filed by the taxpayer. The three (3) year period allowed by
47 this subsection for making refunds or credit claims shall not apply in cases
48 where the tax commission asserts a deficiency of tax imposed by law, and tax-
49 payers desiring to appeal or otherwise seek a refund of amounts paid in obedi-
50 ence to deficiencies must do so within the time limits elsewhere prescribed by
51 law.
52 (e) All revenue received pursuant to this chapter shall be distributed as
53 follows:
6
1 (1) An amount of money shall be distributed to the state refund account
2 sufficient to pay current refund claims as authorized in subsection (c) of
3 this section and those moneys are continuously appropriated.
4 (2) The balance remaining after distributing the amount in paragraph (1)
5 of this subsection shall be distributed as follows:
6 (i) Twelve percent (12%) shall be distributed to the alcoholism
7 treatment account substance abuse treatment fund which is created in
8 section 23-408, Idaho Code;
9 (ii) Five percent (5%) shall be distributed to the Idaho grape grow-
10 ers and wine producers commission account; and
11 (iii) The remainder shall be distributed to the general account.
12 (f) Any person who is not a distributor or winery but who makes, whether
13 as principal, agent or broker, any sales of wine not otherwise taxed under
14 this section and not exempt from such tax, shall be liable for payment of
15 taxes imposed by this section. This subsection shall not impose tax on wine
16 sold pursuant to section 23-1336, Idaho Code.
STATEMENT OF PURPOSE
RS 16922C2
This legislation amends existing law relating to the distribution of moneys
in the state liquor account for the purpose of expanding drug and mental health
courts in Idaho. The changes include:
1. Creating the substance abuse treatment fund in the state treasury;
2. Replacing references to the alcoholism treatment fund with the substance abuse
treatment fund by amending certain sections of Idaho Code;
3. Increasing the annual distribution from the liquor account to the substance abuse
treatment fund from $1,200,000 to $2,080,000 for an increase of $880,000;
4. Providing for the annual distribution of $680,000 from the liquor account to the drug
court, mental health court, and family court services fund for the purpose of court
coordination and drug testing;
5. Creating the drug and mental health court supervision fund in the state treasury; and
6. Providing for the annual distribution of $440,000 from the liquor account to the drug
and mental health court supervision fund for the purpose of offender supervision by
the Idaho Department of Correction.
With these changes it is estimated that an additional 275 offenders can be diverted to
drug and mental health courts in fiscal year 2008.
FISCAL NOTE
The fiscal impact to the State General Fund would be a reduction of $2,000,000 in
fiscal year 2008. There is no impact on the distribution of funds to cities and
counties.
Contact
Name: Representative Jim Clark, Chairman
Judiciary, Rules & Administration Committee
Phone: 332-1127
STATEMENT OF PURPOSE/FISCAL NOTE H 180