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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
]]]] 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
2 RELATING TO WINE; AMENDING SECTION 23-1306, IDAHO CODE, TO REVISE PROVISIONS
3 RELATING TO THE SALE OF CERTAIN PRODUCTS BY LICENSED WINERIES; AMENDING
4 SECTION 23-1325, IDAHO CODE, TO PROVIDE FOR THE USE OF A RETAIL WINE OUT-
5 LET BY TWO OR MORE WINERIES AND TO MAKE TECHNICAL CORRECTIONS; AND AMEND-
6 ING CHAPTER 13, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
7 23-1338, IDAHO CODE, TO PROVIDE FOR THE SERVICE AND SALE OF WINE PRODUCTS
8 AT SPONSORED EVENTS; AND DECLARING AN EMERGENCY.
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:
12 23-1306. LICENSES REQUIRED -- APPLICATION -- ISSUANCE OR REFUSAL. Before
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
1 23-1325. FINANCIAL INTEREST IN OR AID TO RETAILERS PROHIBITED -- CERTAIN
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
3
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
4
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
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.
Contact
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