2007 Legislation
Print Friendly

HOUSE BILL NO. 252 – 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

H0252......................................................by STATE AFFAIRS
WINE - SALE - Amends and adds to existing law relating to wine 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 the service and sale of wine products at sponsored events.

02/28    House intro - 1st rdg - to printing
03/01    Rpt prt - to St Aff
03/02    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Lake,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Shively, Smith(30), Snodgrass, Stevenson, Thayn, Trail, Vander Woude,
      Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Labrador, Nielsen, Roberts, Smith(24)
    Floor Sponsor - Smith(30)
    Title apvd - to Senate
03/07    Senate intro - 1st rdg - to St Aff
03/20    Rpt out - rec d/p - to 2nd rdg
03/21    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 34-1-0
      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, Schroeder,
      Siddoway, Stegner, Stennett, Werk
      NAYS -- Richardson
      Absent and excused -- None
    Floor Sponsors - Lodge & Stennett
    Title apvd - to House
03/22    To enrol - Rpt enrol - Sp signed
03/23    Pres signed
03/26    To Governor
03/30    Governor signed
         Session Law Chapter 289
         Effective: 03/30/07

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 252
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
  9    Be It Enacted by the Legislature of the State of Idaho:
 10        SECTION 1.  That Section 23-1306, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
 13    any person shall manufacture, import into this state, manufacture,  bottle  or
 14    broker for resale within this state, possess for resale, or distribute or sell
 15    wine  within  the state of Idaho, he shall apply to the director for a license
 16    to so do. The application form shall be prescribed and furnished by the direc-
 17    tor and require that the applicant therein show that he possesses all  of  the
 18    qualifications  and  none of the disqualifications of a licensee. A person may
 19    apply for and receive a license as both a distributor and importer, if  other-
 20    wise  qualified  therefor,  and shall pay the license fee required pursuant to
 21    this chapter for each license. A winery licensed under this chapter shall also
 22    be considered as holding, for the purposes of selling a product processed  and
 23    bottled  by  or for that winery, a current retail wine license and wine by the
 24    drink license for the licensed premises and for use at  functions  and  events
 25    identified  in  section  23-1338, Idaho Code, and a current wine distributor's
 26    and importer's license, without further application or fee. If the director is
 27    satisfied that the applicant possesses the qualifications and none of the dis-
 28    qualifications for such license, he shall issue a license for each classifica-
 29    tion applied for, subject to the restrictions of and upon the conditions spec-
 30    ified in this act chapter. The license or licenses  issued  shall  be  at  all
 31    times  prominently  displayed in the place of business of the licensee. If the
 32    director determines that the applicant is not  properly  qualified,  he  shall
 33    refuse  to  issue  a  license  and shall forthwith so notify the applicant and
 34    shall return to the applicant with such notification, three-fourths  (3/4)  of
 35    the  license  fee remitted with the application. A separate retail wine by the
 36    drink license, and wine distributor's license shall be required for each prem-
 37    ises. Provided, however,  nothing  herein  shall  prohibit  a  distributor  or
 38    retailer  or wine by the drink licensee from possessing licenses for more than
 39    one (1) premises.
 40        SECTION 2.  That Section 23-1325, Idaho Code, be, and the same  is  hereby
 41    amended to read as follows:
  2    AID PERMITTED. (1) It shall be unlawful for any importer, distributor, vintner
  3    or winery, directly or indirectly, or through an affiliate, subsidiary,  offi-
  4    cer, director, agent or employee:
  5        (a)  To  have  any financial interest in any licensed retailer's business,
  6        or to own or control any real property upon which a licensed retailer con-
  7        ducts his business, except  such property as shall have been so  owned  or
  8        controlled  continuously for more than one (1) year prior to July 1, 1975;
  9        or
 10        (b)  To aid or assist any licensed retailer by giving  such  retailer,  or
 11        any  employee  thereof,  any  discounts, premiums or rebates in connection
 12        with any sale of wine; or
 13        (c)  To aid or assist any retailer by furnishing, giving, renting, lending
 14        or selling any equipment, signs, supplies, wine menus or wine lists,  ser-
 15        vices,  or  other  thing  of  value  which  may  be used in conducting the
 16        retailer's retail wine business, except as  expressly  permitted  by  this
 17        chapter; or
 18        (d)  To  enter  into any lease or other agreement with any retail licensee
 19        to control the product or products sold by such retailer; or
 20        (e)  To provide for any rental or other charge to be paid  to  or  by  the
 21        retailer for product display or advertising display space.
 22        (2)  An  importer,  distributor,  vintner or winery as an incident to mer-
 23    chandising in the ordinary  course  of  business,  and  if  available  to  all
 24    licensed  retailers  without discrimination, may sell to a retailer equipment,
 25    supplies or clothing which may be used in  conducting  the  retailer's  retail
 26    wine  business.  A  winery, vintner, importer or distributor may not sell such
 27    equipment or supplies at a price, or under  terms,  intended  or  designed  to
 28    encourage  or  induce the retailer to use products of the seller to the exclu-
 29    sion of the products of other wineries, vintners, importers  or  distributors.
 30    In  no  event shall the sales price of such equipment or supplies be less than
 31    the reasonable value of such equipment or supplies.
 32        (3)  Notwithstanding the provisions of subsection (2) of this  section,  a
 33    vintner,  winery,  importer or distributor, as an incident to merchandising in
 34    the ordinary course of business, and if available  to  all  retailers  without
 35    discrimination,  may  lend, give, furnish or sell to a retailer, the following
 36    items:
 37        (a)  Those services, equipment, brochures and recipes authorized under the
 38        provisions of sections 23-1325A and 23-1325B, Idaho Code;
 39        (b)  Signs, posters, placards, designs, devices,  decorations  or  graphic
 40        displays bearing advertising matter and for use in windows or elsewhere in
 41        the interior of a retail establishment. The importer, distributor, vintner
 42        or  winery shall not directly or indirectly pay or credit the retailer for
 43        displaying such materials or for any expense incidental  to  their  opera-
 44        tion;
 45        (c)  Newspaper  cuts, mats or engraved blocks for use in retailer's adver-
 46        tisements;
 47        (d)  Items such as sports  schedules,  posters,  calendars,  informational
 48        pamphlets,  decals and other similar materials for display at the point of
 49        sale which bear brand advertising for wine prominently displayed  thereon,
 50        and  which  items are intended for use by the retailer's customers off the
 51        licensed premises and which items are made  available  to  the  retailer's
 52        customers for such purpose.;
 53        (e)  Temporary  signs  or  banners  displaying  a  vintner's,  winery's or
 54        distributor's name, trademark or label, which signs may be permitted to be
 55        temporarily displayed on the exterior portion of the retailer premises  in
  1        connection  with  a  special event, in accordance with such rules relating
  2        thereto as may be established by the director.
  3        (4)  A distributor may perform services incident to or in connection  with
  4    the  stocking,  rotation  and  restocking  of  wine sold and delivered to such
  5    licensed retailer on or  in  such  licensed  retailer's  storeroom,  salesroom
  6    shelves or refrigerating units, including the marking or remarking of contain-
  7    ers of such wine to indicate the selling price as established by  the retailer
  8    and  to  the  arranging,  rearranging,  or  relocating of advertising displays
  9    referred to in this section. A distributor may, with  the  permission  of  the
 10    retailer  and  in  accordance with space allocations directed by the retailer,
 11    set, remove, replace, reset or relocate all wine upon shelves of the retailer.
 12    Labor performed or schematics prepared by the distributor relating to  conduct
 13    authorized  pursuant  to the provisions of this paragraph subsection (4) shall
 14    not constitute prohibited conduct.
 15        (5)  An importer, distributor, vintner or winery may furnish or give to  a
 16    retailer authorized to sell wine for consumption on the licensed premises, for
 17    sampling  purposes  only, a container of wine, containing not more than sixty-
 18    four (64) ounces, not currently being sold by the  retailer,  and  which  con-
 19    tainer is clearly marked "NOT FOR SALE--FOR SAMPLING PURPOSES ONLY."
 20        (6)  A  licensed  winery  may  aid or assist a licensed retail wine outlet
 21    which retails exclusively the wine product of that winery and which outlet  is
 22    wholly owned and operated by that winery. Two (2) or more wineries may use the
 23    same  location  for  their respective retail wine outlets provided each outlet
 24    holds a separate retail wine license or wine by the drink license.
 25        (7)  Every violation of the provisions of this  section  by  an  importer,
 26    distributor,  vintner or winery in which a licensed retailer shall have activ-
 27    ely participated shall constitute a violation on the  part  of  such  licensed
 28    retailer.
 29        SECTION  3.  That  Chapter  13,  Title 23, Idaho Code, be, and the same is
 30    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 31    ignated as Section 23-1338, Idaho Code, and to read as follows:
 32        23-1338.  WINE PRODUCT SERVICE AND SALES -- SPONSORED EVENTS. (1) Any per-
 33    son  who  is  the  holder of an Idaho winery license is authorized to serve or
 34    sell any wine product of that winery at events of seven (7) days' duration  or
 35    less  sponsored  by  any group, organization, person or political subdivision.
 36    Each participating winery must make its own arrangements with  the  sponsoring
 37    group,  organization, person or political subdivision. Service and sales under
 38    the authority of this section may occur only in counties that permit the  sale
 39    of  wine  in  accordance  with section 23-1304, Idaho Code, and any service or
 40    sales under the provisions of this section must  comply  with  all  applicable
 41    limitations and requirements regarding day and hour of sale, age and condition
 42    of  purchasers  and all other requirements of any regulatory ordinance adopted
 43    pursuant to the authority of section 23-1318,  Idaho  Code,  by  the  city  or
 44    county in whose jurisdiction the event is to take place.
 45        (2)  At  least  seven  (7)  days  prior to the date on which the sponsored
 46    event is to commence, the winery shall notify by  electronic  mail  the  Idaho
 47    state  police, alcohol beverage control bureau, and the chief of police of the
 48    incorporated city in which the sponsored event will be held, if the  event  is
 49    to  be held in an incorporated city, or the sheriff of the county in which the
 50    sponsored event is to be held, if the event will not be held  in  an  incorpo-
 51    rated  city,  that  wine will be served or sold by the winery at the sponsored
 52    event. The notice shall provide the following information:
 53        (a)  The name and address of the winery and the number of its state winery
  1        license;
  2        (b)  The dates and hours that wine will be served or sold;
  3        (c)  The name of the group, organization, person or political  subdivision
  4        sponsoring the event; and
  5        (d)  The address at which the wine will be served or sold, and if a public
  6        building, the rooms in which the wine will be served or sold.
  7        (3)  Within  three (3) business days after receiving the notice, the alco-
  8    hol beverage control bureau shall respond to the winery. An  approval  by  the
  9    alcohol  beverage  control  bureau shall serve as authorization for the event,
 10    and shall be displayed during all hours that wine is served  or  sold  at  the
 11    sponsored event.
 12        (4)  Neither  the  winery nor any person owning an interest in the winery,
 13    nor any employee, contractor or business associate of the winery shall qualify
 14    as an event sponsor under the provisions of this section.
 15        (5)  Neither a city nor a county license or permit  is  required  for  the
 16    activities authorized pursuant to the provisions of this section.
 17        SECTION  4.  An  emergency  existing  therefor,  which emergency is hereby
 18    declared to exist, this act shall be in full force and effect on and after its
 19    passage and approval.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 17126

The purpose of this legislation is to:

     (1) Revise provisions relating to the sale of certain
         products by licensed wineries.

     (2) Allow two or more wineries to use the same location for
         their retail sales.

     (2) Allow for wine sales at sponsored events.

                         FISCAL IMPACT

There is no fiscal impact to the General Fund.

Name: Bill Ringert
Phone: 366-7995
Rep. Darrell Bolz 
Phone: 332-1000
Sen. Patti Anne Lodge
Roger Batt
Phone: 412-5760

STATEMENT OF PURPOSE/FISCAL NOTE                         H 252