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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN 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 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