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S1414aa....................................................by STATE AFFAIRS
WINERIES - VINTNERS - Amends existing law to provide an exception to a
prohibition for certain wineries having any financial interest in any
licensed retailer or owning or controlling any real property upon which a
licensed retailer conducts business.
02/08 Senate intro - 1st rdg - to printing
02/11 Rpt prt - to St Aff
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/26 To 14th Ord
02/28 Rpt out amen - to engros
02/29 Rpt engros - 1st rdg - to 2nd rdg as amen
03/03 2nd rdg - to 3rd rdg as amen
03/04 3rd rdg as amen - 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(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Lodge
Title apvd - to House
03/05 House intro - 1st rdg - to St Aff
03/10 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Crane, Kren
Floor Sponsor - Bolz
Title apvd - to Senate
03/13 To enrol - Rpt enrol - Pres signed
03/14 Sp signed
03/17 To Governor
03/18 Governor signed
Session Law Chapter 180
Effective: 03/18/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1414 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO COUNTY OPTION KITCHEN AND TABLE WINE ACT; AMENDING SECTION 3 23-1325, IDAHO CODE, TO PROVIDE AN EXCEPTION TO A PROHIBITION FOR CERTAIN 4 PERSONS HAVING ANY FINANCIAL INTEREST IN ANY LICENSED RETAILER OR OWNING 5 OR CONTROLLING ANY REAL PROPERTY UPON WHICH A LICENSED RETAILER CONDUCTS 6 BUSINESS; AND DECLARING AN EMERGENCY. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 23-1325, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 23-1325. FINANCIAL INTEREST IN OR AID TO RETAILERS PROHIBITED -- CERTAIN 11 AID PERMITTED. (1) It shall be unlawful for any importer, distributor, vintner 12 or winery, directly or indirectly, or through an affiliate, subsidiary, offi- 13 cer, director, agent or employee: 14 (a) To have any financial interest in any licensed retailer's business, 15 or to own or control any real property upon which a licensed retailer con- 16 ducts his business, except such property as shall have been so owned or 17 controlled continuously for more than one (1) year prior to July 1, 1975, 18 and except that a winery, vintner, stockholder, shareholder, partner or 19 the owner of any interest in any corporation, association or partnership 20 financially interested in a winery or vintner may hold an interest in a 21 licensed premises or own or control real property upon which a licensed 22 retailer conducts business if the licensed premises serves food cooked on 23 the site of the licensed premises, and the person or entity can show 24 through recordkeeping that no more than fifty percent (50%) of the gross 25 revenue to the licensed premises is derived from the sale of alcoholic 26 beverages for consumption on-site. The owner of those licensed premises 27 shall comply with and be subject to all other rules, regulations or other 28 provisions of law which apply to wineries, vintners, stockholders, share- 29 holders, partners or the owners of any interest in any corporation, asso- 30 ciation or partnership financially interested in a winery or vintner, save 31 and except as such rules, regulations or laws as may restrict sales at the 32 licensed premises. The owner of an interest in a winery license shall not 33 be disqualified from holding a beer license, retail wine license, wine by 34 the drink license or retail liquor by the drink license for the sale of 35 beer, wine or liquor at the licensed premises on the grounds that the 36 licensee is also a manufacturer, wholesaler, stockholder, shareholder, 37 partner or the owner of any interest in any corporation, association or 38 partnership financially interested in the manufacture, transportation or 39 sale of liquor, beer or wine. This paragraph shall not be deemed to grant 40 a license for the licensed premises, and any retail liquor by the drink 41 license, wine by the drink license, retail wine license or beer license 42 must be obtained through normal lawful means; or 43 (b) To aid or assist any licensed retailer by giving such retailer, or 2 1 any employee thereof, any discounts, premiums or rebates in connection 2 with any sale of wine; or 3 (c) To aid or assist any retailer by furnishing, giving, renting, lending 4 or selling any equipment, signs, supplies, wine menus or wine lists, ser- 5 vices, or other thing of value which may be used in conducting the 6 retailer's retail wine business, except as expressly permitted by this 7 chapter; or 8 (d) To enter into any lease or other agreement with any retail licensee 9 to control the product or products sold by such retailer; or 10 (e) To provide for any rental or other charge to be paid to or by the 11 retailer for product display or advertising display space. 12 (2) An importer, distributor, vintner or winery as an incident to mer- 13 chandising in the ordinary course of business, and if available to all 14 licensed retailers without discrimination, may sell to a retailer equipment, 15 supplies or clothing which may be used in conducting the retailer's retail 16 wine business. A winery, vintner, importer or distributor may not sell such 17 equipment or supplies at a price, or under terms, intended or designed to 18 encourage or induce the retailer to use products of the seller to the exclu- 19 sion of the products of other wineries, vintners, importers or distributors. 20 In no event shall the sales price of such equipment or supplies be less than 21 the reasonable value of such equipment or supplies. 22 (3) Notwithstanding the provisions of subsection (2) of this section, a 23 vintner, winery, importer or distributor, as an incident to merchandising in 24 the ordinary course of business, and if available to all retailers without 25 discrimination, may lend, give, furnish or sell to a retailer, the following 26 items: 27 (a) Those services, equipment, brochures and recipes authorized under the 28 provisions of sections 23-1325A and 23-1325B, Idaho Code; 29 (b) Signs, posters, placards, designs, devices, decorations or graphic 30 displays bearing advertising matter and for use in windows or elsewhere in 31 the interior of a retail establishment. The importer, distributor, vintner 32 or winery shall not directly or indirectly pay or credit the retailer for 33 displaying such materials or for any expense incidental to their opera- 34 tion; 35 (c) Newspaper cuts, mats or engraved blocks for use in retailer's adver- 36 tisements; 37 (d) Items such as sport schedules, posters, calendars, informational pam- 38 phlets, decals and other similar materials for display at the point of 39 sale which bear brand advertising for wine prominently displayed thereon, 40 and which items are intended for use by the retailer's customers off the 41 licensed premises and which items are made available to the retailer's 42 customers for such purpose; 43 (e) Temporary signs or banners displaying a vintner's, winery's or 44 distributor's name, trademark or label, which signs may be permitted to be 45 temporarily displayed on the exterior portion of the retailer premises in 46 connection with a special event, in accordance with such rules relating 47 thereto as may be established by the director. 48 (4) A distributor may perform services incident to or in connection with 49 the stocking, rotation and restocking of wine sold and delivered to such 50 licensed retailer on or in such licensed retailer's storeroom, salesroom 51 shelves or refrigerating units, including the marking or remarking of contain- 52 ers of such wine to indicate the selling price as established by the retailer 53 and to the arranging, rearranging, or relocating of advertising displays 54 referred to in this section. A distributor may, with the permission of the 55 retailer and in accordance with space allocations directed by the retailer, 3 1 set, remove, replace, reset or relocate all wine upon shelves of the retailer. 2 Labor performed or schematics prepared by the distributor relating to conduct 3 authorized pursuant to the provisions of this subsection (4) shall not consti- 4 tute prohibited conduct. 5 (5) An importer, distributor, vintner or winery may furnish or give to a 6 retailer authorized to sell wine for consumption on the licensed premises, for 7 sampling purposes only, a container of wine, containing not more than sixty- 8 four (64) ounces, not currently being sold by the retailer, and which con- 9 tainer is clearly marked "NOT FOR SALE--FOR SAMPLING PURPOSES ONLY." 10 (6) A licensed winery may aid or assist a licensed retail wine outlet 11 which retails exclusively the wine product of that winery and which outlet is 12 wholly owned and operated by that winery. Two (2) or more wineries may use the 13 same location for their respective retail wine outlets provided each outlet 14 holds a separate retail wine license or wine by the drink license. 15 (7) Every violation of the provisions of this section by an importer, 16 distributor, vintner or winery in which a licensed retailer shall have activ- 17 ely participated shall constitute a violation on the part of such licensed 18 retailer. 19 SECTION 2. An emergency existing therefor, which emergency is hereby 20 declared to exist, this act shall be in full force and effect on and after its 21 passage and approval.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008Moved by Lodge Seconded by McGee IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1414 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in line 16, delete "such" and insert: "such3 that this subsection (1)(a) shall not apply to any winery, as defined in sec- 4 tion 23-1303, Idaho Code, or to"; also in line 16, delete "as shall have been 5 so" and insert: "as shall havethat has beenso"; and in line 17, following 6 "1975" delete "," and delete lines 18 through 42 and insert: "; or". 7 CORRECTION TO TITLE 8 On page 1, in line 4, delete "PERSONS" and insert: "WINERIES".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1414, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO COUNTY OPTION KITCHEN AND TABLE WINE ACT; AMENDING SECTION 3 23-1325, IDAHO CODE, TO PROVIDE AN EXCEPTION TO A PROHIBITION FOR CERTAIN 4 WINERIES HAVING ANY FINANCIAL INTEREST IN ANY LICENSED RETAILER OR OWNING 5 OR CONTROLLING ANY REAL PROPERTY UPON WHICH A LICENSED RETAILER CONDUCTS 6 BUSINESS; AND DECLARING AN EMERGENCY. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 23-1325, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 23-1325. FINANCIAL INTEREST IN OR AID TO RETAILERS PROHIBITED -- CERTAIN 11 AID PERMITTED. (1) It shall be unlawful for any importer, distributor, vintner 12 or winery, directly or indirectly, or through an affiliate, subsidiary, offi- 13 cer, director, agent or employee: 14 (a) To have any financial interest in any licensed retailer's business, 15 or to own or control any real property upon which a licensed retailer con- 16 ducts his business, exceptsuchthat this subsection (1)(a) shall not 17 apply to any winery, as defined in section 23-1303, Idaho Code, or to 18 propertyas shall havethat has beensoowned or controlled continuously 19 for more than one (1) year prior to July 1, 1975; or 20 (b) To aid or assist any licensed retailer by giving such retailer, or 21 any employee thereof, any discounts, premiums or rebates in connection 22 with any sale of wine; or 23 (c) To aid or assist any retailer by furnishing, giving, renting, lending 24 or selling any equipment, signs, supplies, wine menus or wine lists, ser- 25 vices, or other thing of value which may be used in conducting the 26 retailer's retail wine business, except as expressly permitted by this 27 chapter; or 28 (d) To enter into any lease or other agreement with any retail licensee 29 to control the product or products sold by such retailer; or 30 (e) To provide for any rental or other charge to be paid to or by the 31 retailer for product display or advertising display space. 32 (2) An importer, distributor, vintner or winery as an incident to mer- 33 chandising in the ordinary course of business, and if available to all 34 licensed retailers without discrimination, may sell to a retailer equipment, 35 supplies or clothing which may be used in conducting the retailer's retail 36 wine business. A winery, vintner, importer or distributor may not sell such 37 equipment or supplies at a price, or under terms, intended or designed to 38 encourage or induce the retailer to use products of the seller to the exclu- 39 sion of the products of other wineries, vintners, importers or distributors. 40 In no event shall the sales price of such equipment or supplies be less than 41 the reasonable value of such equipment or supplies. 42 (3) Notwithstanding the provisions of subsection (2) of this section, a 43 vintner, winery, importer or distributor, as an incident to merchandising in 2 1 the ordinary course of business, and if available to all retailers without 2 discrimination, may lend, give, furnish or sell to a retailer, the following 3 items: 4 (a) Those services, equipment, brochures and recipes authorized under the 5 provisions of sections 23-1325A and 23-1325B, Idaho Code; 6 (b) Signs, posters, placards, designs, devices, decorations or graphic 7 displays bearing advertising matter and for use in windows or elsewhere in 8 the interior of a retail establishment. The importer, distributor, vintner 9 or winery shall not directly or indirectly pay or credit the retailer for 10 displaying such materials or for any expense incidental to their opera- 11 tion; 12 (c) Newspaper cuts, mats or engraved blocks for use in retailer's adver- 13 tisements; 14 (d) Items such as sport schedules, posters, calendars, informational pam- 15 phlets, decals and other similar materials for display at the point of 16 sale which bear brand advertising for wine prominently displayed thereon, 17 and which items are intended for use by the retailer's customers off the 18 licensed premises and which items are made available to the retailer's 19 customers for such purpose; 20 (e) Temporary signs or banners displaying a vintner's, winery's or 21 distributor's name, trademark or label, which signs may be permitted to be 22 temporarily displayed on the exterior portion of the retailer premises in 23 connection with a special event, in accordance with such rules relating 24 thereto as may be established by the director. 25 (4) A distributor may perform services incident to or in connection with 26 the stocking, rotation and restocking of wine sold and delivered to such 27 licensed retailer on or in such licensed retailer's storeroom, salesroom 28 shelves or refrigerating units, including the marking or remarking of contain- 29 ers of such wine to indicate the selling price as established by the retailer 30 and to the arranging, rearranging, or relocating of advertising displays 31 referred to in this section. A distributor may, with the permission of the 32 retailer and in accordance with space allocations directed by the retailer, 33 set, remove, replace, reset or relocate all wine upon shelves of the retailer. 34 Labor performed or schematics prepared by the distributor relating to conduct 35 authorized pursuant to the provisions of this subsection (4) shall not consti- 36 tute prohibited conduct. 37 (5) An importer, distributor, vintner or winery may furnish or give to a 38 retailer authorized to sell wine for consumption on the licensed premises, for 39 sampling purposes only, a container of wine, containing not more than sixty- 40 four (64) ounces, not currently being sold by the retailer, and which con- 41 tainer is clearly marked "NOT FOR SALE--FOR SAMPLING PURPOSES ONLY." 42 (6) A licensed winery may aid or assist a licensed retail wine outlet 43 which retails exclusively the wine product of that winery and which outlet is 44 wholly owned and operated by that winery. Two (2) or more wineries may use the 45 same location for their respective retail wine outlets provided each outlet 46 holds a separate retail wine license or wine by the drink license. 47 (7) Every violation of the provisions of this section by an importer, 48 distributor, vintner or winery in which a licensed retailer shall have activ- 49 ely participated shall constitute a violation on the part of such licensed 50 retailer. 51 SECTION 2. An emergency existing therefor, which emergency is hereby 52 declared to exist, this act shall be in full force and effect on and after its 53 passage and approval.
STATEMENT OF PURPOSE
RS 17766
This legislation amends 23-1325 which will allow Idaho wineries
that wish to also have restaurant facilities be permitted to sell
beer, liquor and wines not produced within that specific winery.
This amendment is not deemed to grant a license for the licensed
premises and any retain liquor by the drink license, wine by the
drink license, retail wine license or beer license which must be
obtained through normal lawful means. The amendments will make the
Idaho Liquor and Wine Codes consistent. Similar language has been
previously approved by the Idaho Legislature to amend 23-912 of the
Idaho code regarding the retail sale of liquor by the drink and the
restrictions of those who have financial interest in the premises.
FISCAL NOTE
There is no negative impact to the General Fund. Positive benefits
to the General Fund will result through economic development and
tourism.
Contact
Name: Roger Batt
Phone: 208-888-0988
Senator Patti Anne Lodge Rep. Darrel Bolz
Senator curt McKenzie Rep. Steve Kren
Senator Brad Little Rep. Carlos Bilbao
Senator John McGee Rep. Robert Schaefer
Senator Tom Gannon Rep. Jim Patrick
STATEMENT OF PURPOSE/FISCAL NOTE S 1414