SENATE BILL 1421
RS31626C1 / S1421
This legislation modifies the liquor licensing statute to clarify unintended consequences of Senate Bill 1120 in the 2023 session. This legislation “grandfathers” the prior practice for dual lessees (of both the premises and the liquor licenses) as it pertains to “legacy” licenses (issued prior to July 1, 2023), which have not expired, while also clarifying how this historic and existing practice may continue as specifically provided in this legislation.
This legislation provides that a liquor license issued prior to July 1, 2023, and under a lease to a restaurant/bar operator as of July 1, 2023, may continue to be used in the same way through expiration of the term of the lease, whereupon the lease reverts back to the possession of the owner of the license. Upon such reversion the owner may: transfer the license in a one-time-only transfer; retain the lease and apply to the Alcoholic Beverage Control (ABC) to become the named operator of the license on the leased premises; transfer the license under the regular rules of revised Idaho Code § 23-903(16); or proceed under new Idaho Code § 23-903(18), which allows, among other things, subsequent leasing to other tenants and transfers to third party purchasers of the licensed premises.
This legislation also provides for the loss of the right to a one-time-only transfer of a license once it is put to use pursuant to Idaho Code § 23-903(18). This legislation also adds new Idaho Code § 23-903(19) which provides that if there is a waiting list for applicants for a new liquor license, the applicant for whom a license becomes available may elect to have the license issued in the name of the original applicant or in the name of a qualified designee; designee qualifications are listed.
This legislation would have no negative impact on the General Fund. However, because ABC funding relies on a 10% transfer fee, this legislation, by allowing certain transfers, may have a positive impact on ABC funding.
| Date | Description |
|---|---|
| 03/11 | Introduced; read first time; referred to JR for Printing |
| 03/12 | Reported Printed; referred to State Affairs |
| 03/15 | Reported out of Committee with Do Pass Recommendation; Filed for second reading |
| 03/18 | Read second time; filed for Third Reading |
| 03/19 | Read third time in full – PASSED - 32-3-0 AYES – Adams, Anthon, Bernt, Bjerke, Carlson, Cook, Den Hartog, Guthrie, Harris, Hart, Hartgen, Herndon, Just, Lakey, Lee, Lenney, Lent, Nichols, Okuniewicz, Rabe, Ricks, Ruchti, Schroeder, Semmelroth, Taylor, Toews, Trakel, VanOrden, Ward-Engelking, Winder, Wintrow, Zuiderveld NAYS – Burtenshaw, Foreman, Grow Absent and excused – None Floor Sponsor - Guthrie Title apvd - to House |
| 03/21 | Received from the Senate, Filed for First Reading |
| 03/21 | Read First Time, Referred to State Affairs |
| 03/29 | Reported out of Committee with Do Pass Recommendation, Filed for Second Reading |
| 04/02 | Read second time; Filed for Third Reading |