2007 Legislation
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HOUSE BILL NO. 256 – Alcohol Beverage Regulatn/Control

HOUSE BILL NO. 256

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Bill Status



H0256......................................................by STATE AFFAIRS
ALCOHOL BEVERAGES - Adds to existing law relating to alcohol beverages; to
provide legislative intent; to establish a Division of Alcohol Beverage
Regulation and Control within the Idaho State Police; to prescribe duties,
responsibilities and authority for the division; and to create and provide
for an Alcohol Beverage Regulation and Control Account in the state
treasury.
                                                                        
03/01    House intro - 1st rdg - to printing
03/02    Rpt prt - to St Aff
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/07    3rd rdg - PASSED - 64-5-1
      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,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Shepherd(2), Shepherd(8), Shirley,
      Shively, Smith(30), Snodgrass, Stevenson, Thayn, Trail, Vander Woude,
      Wood(27), Wood(35), Mr. Speaker
      NAYS -- Harwood, Lake, Schaefer, Smith(24), Wills
      Absent and excused -- Moyle
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
03/08    Senate intro - 1st rdg - 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. 256
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ALCOHOL BEVERAGES; AMENDING CHAPTER 29, TITLE 67, IDAHO  CODE,  BY
  3        THE  ADDITION  OF  NEW  SECTIONS 67-2903, 67-2903A, 67-2903B AND 67-2903C,
  4        IDAHO CODE, TO PROVIDE LEGISLATIVE INTENT,  TO  ESTABLISH  A  DIVISION  OF
  5        ALCOHOL  BEVERAGE REGULATION AND CONTROL WITHIN THE IDAHO STATE POLICE, TO
  6        PRESCRIBE DUTIES, RESPONSIBILITIES AND AUTHORITY FOR THE DIVISION  AND  TO
  7        CREATE  AND PROVIDE FOR AN ALCOHOL BEVERAGE REGULATION AND CONTROL ACCOUNT
  8        IN THE STATE TREASURY; AND AMENDING SECTION 23-1309A, IDAHO CODE, TO  PRO-
  9        VIDE CORRECT TERMINOLOGY.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Chapter  29,  Title 67, Idaho Code, be, and the same is
 12    hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
 13    nated as Sections 67-2903, 67-2903A, 67-2903B and 67-2903C, Idaho Code, and to
 14    read as follows:
                                                                        
 15        67-2903.  LEGISLATIVE INTENT. It is the intent of the legislature to  pre-
 16    vent  encroachments  by  the federal government, including its judiciary, upon
 17    the authority and responsibility of the state of Idaho to enforce  Idaho  laws
 18    enacted to control the manufacture, sale, distribution, transportation and use
 19    of  alcohol  beverages by assuring that legislation adopted for such purposes,
 20    both civil and penal in nature, be stringently and  adequately  enforced.  The
 21    legislature does hereby reiterate that such measures by the state of Idaho are
 22    essential  to  reflect and preserve the core societal and economic values that
 23    are of major importance to the citizens of our state. Therefore, the  legisla-
 24    ture  of  the  state  of Idaho, being mindful of the provisions of the twenty-
 25    first amendment to the constitution of the United States of  America,  and  of
 26    the provisions of section 26, article III, of the constitution of the state of
 27    Idaho,  does  hereby reaffirm and acknowledge its authority and responsibility
 28    for control of the sale, distribution, transportation and use  of  beer,  wine
 29    and alcoholic liquor into and within the state of Idaho.
                                                                        
 30        67-2903A.  CREATION  OF  THE  DIVISION  OF ALCOHOL BEVERAGE REGULATION AND
 31    CONTROL. (1) There is hereby created within the Idaho state police  the  divi-
 32    sion  of  alcohol  beverage  regulation and control. The director of the Idaho
 33    state police shall appoint an administrator for the division of alcohol bever-
 34    age regulation and control, subject to approval of the governor. The  adminis-
 35    trator of the division shall serve at the pleasure of the director. The admin-
 36    istrator  of  the division may employ additional personnel and such other pro-
 37    fessional or contract services as may be necessary and authorized for the per-
 38    formance of the duties of the division and in accordance  with  appropriations
 39    provided therefor.
 40        (2)  The provisions of the Idaho administrative procedure act, chapter 52,
 41    title  67, Idaho Code, shall be applicable to all proceedings occurring within
 42    the division of alcohol beverage regulation and control, and for such purposes
                                                                        
                                       2
                                                                        
  1    the administrator of the division shall be deemed to be  an  agency  head,  as
  2    defined therein.
                                                                        
  3        67-2903B.  DUTIES,  RESPONSIBILITIES, AND AUTHORITY. The division of alco-
  4    hol beverage regulation  and  control  is  hereby  empowered,  authorized  and
  5    directed:
  6        (1)  To  issue  licenses  for  the sale of beer, wine and/or liquor by the
  7    drink  to applicants qualified for such licenses pursuant to  chapters  9,  10
  8    and  13, title 23, Idaho Code, and in accordance with rules promulgated pursu-
  9    ant thereto which are necessary to carry out the provisions of said  chapters.
 10    Further,  the division is also directed to communicate with licensees concern-
 11    ing changes in laws and rules which may be applicable to licensees, which  may
 12    be through written communications at the time of licensure and renewal of such
 13    licenses  and  through the official internet website maintained by the depart-
 14    ment or the division;
 15        (2)  To suspend, revoke or refuse to renew  licenses  issued  pursuant  to
 16    chapters  9,  10 and 13, title 23, Idaho Code, for any violation or failure to
 17    comply with the provisions of such chapters or rules promulgated  pursuant  to
 18    the terms and conditions of such chapters, or to impose monetary penalties for
 19    such  violations,  in  lieu  of suspension, revocation or refusal to renew, in
 20    accordance with the provisions of law pertaining thereto;
 21        (3)  To make, promulgate and publish such rules as the  administrator  may
 22    deem  necessary  to  fully implement, interpret and effectively administer and
 23    enforce the civil provisions of chapters 9, 10, 13 and  14,  title  23,  Idaho
 24    Code, including, but not limited to, rules setting forth guidelines to be fol-
 25    lowed  by  the division in the exercise of its authority to suspend, revoke or
 26    refuse to renew licenses issued by the division;
 27        (4)  To assist sheriffs, police and other law enforcement  officers,  upon
 28    their  request,  in  the  enforcement  of  the  penal provisions of chapters 6
 29    through 14, title 23, Idaho Code. The division  shall,  in  addition  to  such
 30    assistance,  provide  education and educational information to other state and
 31    local law enforcement agencies relating to substantive laws and rules and  the
 32    enforcement  of such laws and rules, through the police officers standards and
 33    training academy and through other educational classes; and
 34        (5)  To perform such other duties as may be delegated to the administrator
 35    by the director of the Idaho state police which are deemed necessary for  car-
 36    rying  out,  administering  and enforcing chapters 9, 10, 13 and 14, title 23,
 37    Idaho Code, and which duties are otherwise directed by law to be performed  by
 38    the director of the Idaho state police.
                                                                        
 39        67-2903C.  ALCOHOL  BEVERAGE  REGULATION  AND CONTROL ACCOUNT CREATED. (1)
 40    There is hereby created an account in the dedicated fund in  the  state  trea-
 41    sury,  to  be  designated  as  the  "alcohol  beverage  regulation and control
 42    account" to provide for the expenses of the division of alcohol beverage regu-
 43    lation and control that are necessary to carry out the duties of the division,
 44    as provided by law, and in accordance with appropriations from said fund  pur-
 45    suant  to  law. The alcohol beverage regulation and control account shall con-
 46    sist of the following:
 47        (a)  All moneys appropriated to the account by the legislature; and
 48        (b)  All license fees and miscellaneous charges authorized by  law  to  be
 49        imposed  and  collected  by  the director of the Idaho state police or the
 50        administrator arising out of the administration of  the  licensing  provi-
 51        sions of chapters 9, 10 and 13, title 23, Idaho Code.
 52        (2)  All  moneys  placed  in  the  account  shall be examined, audited and
 53    allowed in the manner now or hereinafter provided by law.
                                                                        
                                       3
                                                                        
  1        (3)  Pending use for purposes set forth in the laws of this state,  moneys
  2    in  the  alcohol  beverage regulation and control account shall be invested by
  3    the state treasurer in the same manner  as  provided  under  section  67-1210,
  4    Idaho  Code,  with  respect to other surplus or idle moneys in the state trea-
  5    sury.
  6        (4)  The administrator of the division of alcohol beverage regulation  and
  7    control shall transmit all license fees and miscellaneous charges collected by
  8    the  division  to the state treasurer as provided under section 59-1014, Idaho
  9    Code. The administrator shall file with the state controller  a  statement  of
 10    each deposit thus made.
 11        (5)  At  the end of each fiscal year, commencing with the fiscal year end-
 12    ing June 30, 2008, those moneys in the alcohol beverage regulation and control
 13    account that exceed the current year's appropriation, plus any residual encum-
 14    brances made against the prior year's appropriations  by  twenty-five  percent
 15    (25%) or more, shall be transferred to the general account.
                                                                        
 16        SECTION  2.  That Section 23-1309A, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
                                                                        
 18        23-1309A.  SHIPMENT AND RECEIPT OF WINE AUTHORIZED  --  LABELING  REQUIRE-
 19    MENT.  (1)  Notwithstanding  any other provision of law, rule or regulation to
 20    the contrary, any holder of a winery  license  under  section  23-1306,  Idaho
 21    Code, or any person holding a license to manufacture wine in another state who
 22    obtains  a  wine  direct  shipper permit pursuant to this section may sell and
 23    ship up to twenty-four (24) nine-liter cases of wine annually  directly  to  a
 24    resident  of  Idaho,  who  is  at  least twenty-one (21) years of age, for the
 25    resident's personal use and not for resale.
 26        (2)  Before sending any shipment to a resident of Idaho, the  wine  direct
 27    shipper permit holder must:
 28        (a)  File an application with the director;
 29        (b)  Pay  a fifty dollar ($50.00) annual registration fee if the winery is
 30        not currently licensed by the director;
 31        (c)  Provide the director its Idaho winery license number or a  true  copy
 32        of its current alcoholic beverage license issued by another state;
 33        (d)  Obtain from the director a wine direct shipper permit;
 34        (e)  Register  with  the state tax commission for the payment of sales and
 35        use taxes and excise taxes on wine sold to residents of  Idaho  under  the
 36        wine direct shipper permit.
 37        (3)  A  wine  direct shipper permit authorizes the permit holder to do all
 38    of the following:
 39        (a)  Sell and ship not more than twenty-four (24) nine-liter cases of wine
 40        annually to any person twenty-one (21) years of age or older  for  his  or
 41        her personal use and not for resale;
 42        (b)  Ship  wine  directly  to  a resident in this state only in compliance
 43        with subsections (8) and (9) of this section;
 44        (c)  Report to the director, no later than January 31 of  each  year,  the
 45        total  amount of wine shipped during the preceding calendar year under the
 46        wine direct shipper permit;
 47        (d)  If the permit holder is located outside this state, pay to the  state
 48        tax commission all sales and use taxes, and excise taxes on sales to resi-
 49        dents  of  Idaho under the wine direct shipper permit. For excise tax pur-
 50        poses, all wine sold pursuant to a direct shipper permit shall  be  deemed
 51        to be wine sold in this state;
 52        (e)  Permit  the director and the state tax commission to perform an audit
 53        of the wine direct shipper permit holder's records upon request;
                                                                        
                                       4
                                                                        
  1        (f)  Be deemed to have consented to the jurisdiction of the alcohol bever-
  2        age regulation and control division of the  Idaho  state  police,  or  any
  3        other  state  agency  and  the Idaho courts concerning enforcement of this
  4        section and any related laws, rules or regulations.
  5        (4)  A wine direct shipper permit holder located  outside  the  state  may
  6    annually  renew  its  permit  with the director by paying a twenty-five dollar
  7    ($25.00) renewal fee and providing the director a true  copy  of  its  current
  8    alcoholic beverage license issued in another state. A wine direct shipper per-
  9    mit holder located in Idaho shall renew its wine direct shipper permit in con-
 10    junction  with  its  license  to  manufacture  wine. All registration fees and
 11    renewal fees shall be shared equally by the state police  and  the  state  tax
 12    commission.
 13        (5)  The director may enforce the requirements of this section by adminis-
 14    trative proceedings or suspend or revoke a wine direct shipper permit, and the
 15    director  may  accept payment of an offer in compromise in lieu of suspension,
 16    such payments to be determined by rule promulgated by the director.
 17        (6)  Sales and shipments of wine directly to consumers in Idaho from  wine
 18    manufacturers  in  Idaho or in another state who do not possess a current wine
 19    direct shipper permit are prohibited. Any person who knowingly  makes  such  a
 20    shipment is guilty of a misdemeanor.
 21        (7)  A  licensee  who holds a license for the retail sale of wine for con-
 22    sumption off the licensed premises may ship not more than  two  (2)  cases  of
 23    wine,  containing  not  more  than nine (9) liters per case, per shipment, for
 24    personal use and not for resale, directly to a resident of  another  state  if
 25    the  state to which the wine is sent allows residents of this state to receive
 26    wine sent from that state without payment of additional  state  tax,  fees  or
 27    charges.  The sale shall be considered to have occurred in this state.
 28        (8)  The shipping container of any wine shipped under this section must be
 29    clearly  labeled  to  indicate that the container contains alcoholic beverages
 30    and cannot be delivered to a person who is not at least twenty-one (21)  years
 31    of age.
 32        (9)  For  wine shipped under this section to an Idaho resident, the deliv-
 33    ery person shall:
 34        (a)  Have the person who receives the wine shipment sign for it; and
 35        (b)  Not make deliveries to anyone who is under twenty-one (21)  years  of
 36        age or to anyone who is visibly intoxicated; and
 37        (c)  Keep the signature record for one (1) year.
 38        (10) Sales  authorized under this section are sales made by a retailer who
 39    is not authorized to sell at wholesale or sales by a winery of  wine  produced
 40    or bottled by the winery.
 41        (11) The  director  and  the  state tax commission may promulgate rules to
 42    effectuate the purposes of this section and are authorized to exchange  neces-
 43    sary information to implement the provisions of this section.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                              
                          RS 17129
  
  The proposed legislation has two primary purposes:
  
  (1) To clearly state that it is the legislative intent that
  legislation enacted by the state of Idaho, both civil and
  penal, relating to the sale, distribution, transportation
  and use of beer, wine and alcoholic beverages into and
  within the state of Idaho are essential to reflect and
  preserve core societal and economic values that are of major
  importance to the citizens of Idaho. Further, in order to
  preserve the authority and responsibility of the state under
  the 21st Amendment of the Constitution of the United States,
  and section 26, Article III, of the Idaho's Constitution, it
  is the declared intent of the legislature that such measures
  be stringently and adequately enforced by the state.
  
  (2) To further reinforce the foregoing legislative intent
  and to emphasize and reinforce the state's responsibilities
  relating to the regulation and control of alcohol beverages
  within the state, the legislation creates a Division of
  Alcohol Beverage Regulation and Control within the
  Department of Idaho State Police, provides for the
  appointment of the Division Administrator by the Director,
  with the approval of the Governor, and clearly articulates
  the primary duties of the Division, in addition to such
  further delegation of duties as may be deemed necessary by
  the Director of the Idaho State Police.
  
                        FISCAL NOTE
  
  The legislation provides for initial deposit of state
  license fees and other charges collected by the Division, as
  authorized by law, in a special account, to be designated as
  the "Alcohol Beverage Regulation and Control Account."
  However, all funds are subject to legislative appropriation,
  and funds in the account in excess of appropriations, will
  be transferred to the General Account. There will be no
  fiscal impact on state or local funds.
  


  Contact:
  Name:  Representative Mark Snodgrass
  Phone: 208-332-1000  
         Bill Roden, Idaho Beer and Wine Distributors Asso.
         336-7930
  

  STATEMENT OF PURPOSE/FISCAL NOTE                    H 256