DRAFT DRRCB106 ---------------------------------------------------------------------LEGISLATURE OF THE STATE OF IDAHO Sixty-fifth Legislature First Regular Session - 2019 ---------------------------------------------------------------------This bill draft contains confidential and privileged information exempt from disclosure under Section 74-109(1), Idaho Code. If you have received this message by mistake, please notify us immediately by replying to this message or telephoning the Legislative Services Office at (208) 334-2475. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AN ACT RELATING TO ALCOHOL; AMENDING SECTION 23-217, IDAHO CODE, TO REVISE TERMINOLOGY AND TO REVISE A PROVISION REGARDING A CERTAIN DISCOUNT; AMENDING SECTION 23-603, IDAHO CODE, TO REVISE PROVISIONS REGARDING CERTAIN ADMINISTRATIVE ACTIONS UPON CONVICTION FOR DISPENSING ALCOHOL TO PERSONS UNDER TWENTY-ONE YEARS OF AGE AND TO DEFINE A TERM; AMENDING SECTION 23-604, IDAHO CODE, TO PROHIBIT CERTAIN CONDUCT REGARDING PERSONS UNDER TWENTY-ONE YEARS OF AGE, TO PROVIDE EXCEPTIONS AND TO DEFINE A TERM; AMENDING CHAPTER 6, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-604B, IDAHO CODE, TO PROVIDE EXCEPTIONS FROM RESTRICTION ON ENTERING OR REMAINING IN CERTAIN PLACES AND TO DEFINE A TERM; AMENDING SECTION 23-605, IDAHO CODE, TO PROVIDE THAT DISPENSING ALCOHOL TO AN OBVIOUSLY INTOXICATED PERSON SHALL BE A MISDEMEANOR, TO PROVIDE PENALTIES, TO PROVIDE FOR DEPOSIT OF FINES, TO PROVIDE FOR NOTIFICATION, TO PROVIDE FOR CERTAIN ADMINISTRATIVE ACTION AND TO DEFINE A TERM; AMENDING SECTION 23-615, IDAHO CODE, TO REMOVE A PROVISION REGARDING INTOXICATION; AMENDING CHAPTER 6, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-617, IDAHO CODE, TO PROVIDE ADMINISTRATIVE PENALTIES FOR SPECIFIED VIOLATIONS, TO PROVIDE FOR THE PAYMENT AND DISTRIBUTION OF FINES AND TO DEFINE A TERM; AMENDING SECTION 23-901, IDAHO CODE, TO AUTHORIZE THE BOARDS OF COUNTY COMMISSIONERS AND CITY COUNCILS TO GRANT LICENSES FOR LIQUOR BY THE DRINK TO CERTAIN QUALIFIED PERSONS IN ACCORDANCE WITH CERTAIN LAWS, RULES AND ORDINANCES, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 23-902, IDAHO CODE, TO REVISE DEFINITIONS AND TO DEFINE TERMS; REPEALING SECTIONS 23-903, 23-903a, 23-903b, 23-904, 23-905, 23-906, 23-907 AND 23-908, IDAHO CODE, RELATING TO RETAIL SALE OF LIQUOR BY THE DRINK; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-903, IDAHO CODE, TO PROVIDE CERTAIN RESTRICTIONS REGARDING ALCOHOLIC BEVERAGES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-904, IDAHO CODE, TO PROVIDE GRANDFATHER RIGHTS AND TO PROVIDE THAT CERTAIN LICENSES ARE TRANSFERABLE AND CERTAIN LICENSES ARE NOT TRANSFERABLE; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-905, IDAHO CODE, TO AUTHORIZE COUNTIES AND CITIES TO ISSUE CERTAIN MUNICIPAL LICENSES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-906, IDAHO CODE, TO PROVIDE CONDITIONS UNDER WHICH MUNICIPAL LICENSES MAY NOT BE ISSUED AND TO PROVIDE A PROCEDURE FOR A REFERENDUM REGARDING THE AUTHORITY OF A GOVERNING BODY TO ISSUE MUNICIPAL LICENSES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-907, IDAHO CODE, TO PROVIDE FOR THE FORM OF BALLOT; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-908, IDAHO CODE, TO PROVIDE FOR THE EFFECT OF AN ELECTION AND TO PROVIDE THAT CERTAIN SALES SHALL NOT BE AFFECTED; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-909, IDAHO CODE, TO PROVIDE FOR SUBSEQUENT Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 ELECTIONS; REPEALING SECTIONS 23-910, 23-911, 23-912, 23-913, 23-914, 23-915, 23-916, 23-917, 23-918, 23-919, 23-920 AND 23-921, IDAHO CODE, RELATING TO RETAIL SALE OF LIQUOR BY THE DRINK; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-910, IDAHO CODE, TO PROVIDE FOR APPLICATIONS FOR MUNICIPAL LICENSES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-911, IDAHO CODE, TO PROVIDE FOR THE INVESTIGATION OF APPLICATIONS, TO PROVIDE THAT FALSE STATEMENTS SHALL CONSTITUTE A FELONY AND TO PROVIDE A PENALTY; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-912, IDAHO CODE, TO PROVIDE FOR RULES AND REGULATIONS, TO PROVIDE FOR ADDITIONAL AUTHORITY AND DUTIES OF THE DIRECTOR, TO PROVIDE FOR THE POWERS OF LICENSING AUTHORITIES OF COUNTIES AND CITIES AND TO PROVIDE THAT LICENSEES SHALL ADVISE THEMSELVES OF THE RULES AND REGULATIONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-913, IDAHO CODE, TO PROVIDE FOR LICENSE FEES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-915, IDAHO CODE, TO PROHIBIT THE ISSUANCE OR TRANSFER OF CERTAIN LICENSES TO SPECIFIED PERSONS AND TO PROVIDE FOR THE REVOCATION OF CERTAIN LICENSES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-916, IDAHO CODE, TO PROVIDE LOCATION AND DISTANCE PROVISIONS REGARDING THE LOCATION OF PREMISES BEING ISSUED OR TRANSFERRED A LICENSE AND TO PROVIDE EXCEPTIONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-917, IDAHO CODE, TO PROHIBIT SPECIFIED PERSONS AND ENTITIES FROM PROVIDING EQUIPMENT, FIXTURES OR OTHERWISE FURNISHING FINANCIAL AID TO ONE ENGAGED IN THE SALE OF LIQUOR AND TO PROHIBIT LICENSEES FROM RECEIVING SUCH EQUIPMENT, FIXTURES OR FINANCIAL AID; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-918, IDAHO CODE, TO PROVIDE CERTAIN RESTRICTIONS FOR PERSONS INTERESTED IN THE PREMISES, TO PROVIDE AN EXCEPTION, TO PROVIDE FOR THE APPLICABILITY OF RULES, REGULATIONS AND LAW, TO PROVIDE THAT CERTAIN PERSONS SHALL NOT BE DISQUALIFIED FROM HOLDING CERTAIN LICENSES AND TO CLARIFY THAT LICENSES FOR THE RETAIL SALE OF LIQUOR BY THE DRINK MUST BE OBTAINED THROUGH NORMAL LAWFUL MEANS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-919, IDAHO CODE, TO PROVIDE FOR THE FORM AND DISPLAY OF MUNICIPAL LICENSES, TO PROHIBIT CERTAIN TRANSFERS, TO PROVIDE THAT MUNICIPAL AND STATE LIQUOR LICENSES ARE SEPARATE AND DISTINCT, TO RESTRICT THE EXERCISE OF PRIVILEGES UNDER A LICENSE TO THE NAMED LICENSEE, TO PROVIDE FOR EXPIRATION AND RENEWAL, TO PROVIDE FOR TRANSFERS OF STATE LIQUOR LICENSES, TO PROVIDE FOR FEES AND TO PROVIDE EXCEPTIONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-920, IDAHO CODE, TO PROVIDE RESTRICTIONS ON THE TRANSFER OF STATE LIQUOR LICENSES AND TO PROVIDE THAT CERTAIN LICENSES SHALL BE SUBJECT TO LEVY AND DISTRAINT; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-921, IDAHO CODE, TO PROVIDE FOR SUSPENSION, REVOCATION AND REFUSAL TO RENEW LICENSES, TO PROVIDE FOR PETITIONS REQUESTING MONETARY PAYMENT IN LIEU OF SUSPENSION, TO PROVIDE FOR GUIDELINES AND RULES REGARDING PERIODS OF SUSPENSION AND MONETARY PAYMENTS IN LIEU OF SUSPENSION, TO PROVIDE FOR ADDITIONAL SUSPENSIONS AND TO PROVIDE FOR THE RENEWAL OF CERTAIN LICENSES; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 A NEW SECTION 23-921A, IDAHO CODE, TO PROVIDE FOR LICENSE SUSPENSION OR REVOCATION UPON CONVICTION FOR VIOLATION OF OBSCENITY LAWS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-922, IDAHO CODE, TO PROVIDE THAT THE SALE OF LIQUOR WITHOUT A LICENSE IS A FELONY AND TO PROVIDE A PENALTY; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-923, IDAHO CODE, TO PROVIDE THAT CERTAIN LIQUOR SOLD BY LICENSEES SHALL BE PURCHASED FROM THE STATE LIQUOR DIVISION, TO PROVIDE FOR SALES BY THE STATE LIQUOR DIVISION TO LICENSEES AND TO DEFINE A TERM; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-924, IDAHO CODE, TO PROVIDE FOR THE EXAMINATION OF PREMISES BY CERTAIN PERSONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-925, IDAHO CODE, TO PROVIDE THAT LICENSEES HAVING ILLEGAL LIQUOR ON PREMISES SHALL BE GUILTY OF A FELONY, TO PROVIDE PENALTIES, TO PROVIDE FOR LICENSE REVOCATION, TO PROVIDE FOR A DETERMINATION OF THE AMOUNT OF LIQUOR TO BE SOLD TO LICENSEES, TO PROVIDE FOR THE SEIZURE OF ILLEGAL LIQUOR AND TO PROVIDE AN EXCEPTION; REPEALING SECTIONS 23-926, 23-927 AND 23-928, IDAHO CODE, RELATING TO RETAIL SALE OF LIQUOR BY THE DRINK; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-926, IDAHO CODE, TO PROVIDE FOR THE POSTING OF AGE RESTRICTION SIGNS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-927, IDAHO CODE, TO PROHIBIT DISPENSING LIQUOR OFF PREMISES, TO PROVIDE EXCEPTIONS, TO PROHIBIT GAMING ON PREMISES AND TO PROVIDE AN EXCEPTION; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-928, IDAHO CODE, TO PROVIDE FOR ALCOHOL BEVERAGE CATERING PERMITS AND APPLICATIONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-929, IDAHO CODE, TO PROVIDE A PROCEDURE FOR CITIES AND COUNTIES UPON THE FILING OF AN APPLICATION FOR AN ALCOHOL BEVERAGE CATERING PERMIT, TO PROVIDE FOR APPROVAL OR DISAPPROVAL, TO PROVIDE THAT COPIES SHALL BE SENT OR RETAINED BY SPECIFIED PERSONS AND TO PROVIDE THAT CERTAIN DOCUMENTS SHALL CONSTITUTE PERMITS; REPEALING SECTIONS 23-930, 23-931, 23-932, 23-933, 23-933A, 23-933B, 23-934, 23-934A, 23-934B, 23-934C, 23-935, 23-936, 23-937, 23-938, 23-939, 23-941, 23-942, 23-943, 23-943A, 23-944, 23-945, 23-946, 23-947, 23-948, 23-949, 23-950, 23-951, 23-952, 23-953, 23-954, 23-955, 23-956 AND 23-957, IDAHO CODE, RELATING TO THE RETAIL SALE OF LIQUOR BY THE DRINK; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-930, IDAHO CODE, TO PROVIDE FOR THE APPLICABILITY OF CERTAIN REGULATORY AND PENALTY PROVISIONS; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-931, IDAHO CODE, TO PROVIDE FOR THE DESTRUCTION OF STAMPS, TO PROVIDE SANITARY REQUIREMENTS AND TO PROVIDE THAT A VIOLATION SHALL CONSTITUTE A MISDEMEANOR; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-932, IDAHO CODE, TO PROHIBIT THE SALE OF LIQUOR ON CERTAIN DAYS AND AT CERTAIN TIMES, TO PROVIDE EXCEPTIONS, TO PROVIDE FOR THE CONSUMPTION OF LIQUOR ALREADY SERVED, TO PROVIDE THAT SPECIFIED CONDUCT REGARDING ALCOHOLIC BEVERAGE CONSUMPTION SHALL CONSTITUTE A MISDEMEANOR, TO PROVIDE FOR DUTIES REGARDING LOCKING UNSEALED CONTAINERS OF LIQUOR AND TO PROVIDE THAT A VIOLATION SHALL CONSTITUTE A MISDEMEANOR; AMENDING CHAPTER 9, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-933, IDAHO Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 CODE, TO PROVIDE FOR THE DUTY OF PUBLIC OFFICERS; REPEALING SECTIONS 23-1020 AND 23-1022, IDAHO CODE, RELATING TO PROVISIONS GOVERNING THE SALE OF BEER; AMENDING TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 12, TITLE 23, IDAHO CODE, TO PROVIDE FOR CLERK AND SERVER TRAINING, TO DEFINE TERMS, TO PROVIDE FOR APPROVED TRAINING, TO PROVIDE FOR MANDATORY TRAINING FOR ON-PREMISES SALES, TO PROVIDE FOR VOLUNTARY TRAINING FOR OFF-PREMISES SALES AND TO PROVIDE FOR ENFORCEMENT; AMENDING CHAPTER 13, TITLE 23, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 23-1304A, IDAHO CODE, TO PROVIDE FOR CERTIFICATION OF CERTAIN RESOLUTIONS AND ELECTIONS AND TO CLARIFY EFFECTIVENESS OF CERTAIN RESOLUTIONS AND ELECTION RESULTS; AMENDING SECTION 23-1331, IDAHO CODE, TO PROVIDE FOR GUIDELINES AND RULES REGARDING PERIODS OF SUSPENSION AND MONETARY PAYMENT IN LIEU OF SUSPENSION; REPEALING SECTION 23-1335, IDAHO CODE, RELATING TO PROVISIONS GOVERNING THE COUNTY OPTION KITCHEN AND TABLE WINE ACT; AMENDING SECTION 18-7803, IDAHO CODE, TO REMOVE AND TO REVISE CODE REFERENCES; AMENDING SECTIONS 23-1312, 23-1406, AND 39-5502, IDAHO CODE, TO REVISE A CODE REFERENCE; AMENDING SECTION 49-307, IDAHO CODE, TO REVISE A CODE REFERENCE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-7446, IDAHO CODE, TO REVISE A CODE REFERENCE; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. 21 Be It Enacted by the Legislature of the State of Idaho: 22 SECTION 1. That Section 23-217, Idaho Code, be, and the same is hereby amended to read as follows: 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 23-217. SURCHARGE ADDED TO PRICE OF ALCOHOLIC LIQUOR AND ALL OTHER MERCHANDISE SOLD -- COLLECTION AND REMISSION BY DIRECTOR. (1) The director of the division is hereby authorized and directed to include in the price of alcoholic liquor and all other merchandise sold in the division, and its branches, a surcharge equal to two percent (2%) of the current price per unit computed to the nearest multiple of five cents (5ยข). (2) After the price of the surcharge has been included, the director of the division is hereby authorized and directed to allow a discount of five ten percent (510%) from the price of each order of alcoholic liquor and all other merchandise sold to any licensee person holding a state liquor license, as defined in section 23-902(8), Idaho Code. (3) The surcharge imposed pursuant to this section shall be collected and credited monthly to the drug court, mental health court and family court services fund, as set forth in section 1-1625, Idaho Code. SECTION 2. That Section 23-603, Idaho Code, be, and the same is hereby amended to read as follows: 23-603. DISPENSING TO A PERSON UNDER THE AGE OF TWENTY-ONE YEARS. (1) Any person who is eighteen (18) years of age or older who shall sell, give, or furnish, or cause to be sold, given, or furnished, alcohol beverage, including any distilled spirits, beer or wine, to a person under the age of twenty-one (21) years shall be guilty of a misdemeanor and upon conviction thereof may be punished by a fine of not less than five hundred dollars ($500) Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 nor more than one thousand dollars ($1,000) per violation, or by imprisonment in the county jail for a period not to exceed one (1) year, or by both such fine and imprisonment. A second or subsequent violation of this section by the same defendant shall constitute a misdemeanor and upon conviction thereof the defendant shall be punished by a fine of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000) per violation, or imprisonment in the county jail for a period not to exceed one (1) year, or by both such fine and imprisonment. Notwithstanding the provisions of section 19-4705, Idaho Code, moneys received pursuant to such fines shall be deposited in the substance abuse treatment fund, as created in section 23-408, Idaho Code. Upon conviction of any person for a violation of the provisions of this section, the court shall notify the director of the Idaho state police responsible authority. The director responsible authority shall review the circumstances of the conviction, and if the dispensing took place at a licensed establishment or other retailer or distributor premises, the director responsible authority may take administrative action he considers appropriate against the licensee or business including suspension of the license for not to exceed six (6) months, a fine, or both such suspension and fine consistent with section 23-617, Idaho Code. (2) For the purposes of this section, "responsible authority" means the director, or the city council, chief executive of a city, mayor, board of county commissioners or entity established by ordinance that issued the municipal license for municipal licensees. SECTION 3. That Section 23-604, Idaho Code, be, and the same is hereby amended to read as follows: 23-604. MINORS -- PURCHASE, CONSUMPTION OR POSSESSION PROHIBITED -PERSONS UNDER SPECIFIED AGES FORBIDDEN TO ENTER, REMAIN IN OR LOITER AT CERTAIN LICENSED PLACES. (1) Any person under twenty-one (21) years of age who shall purchase, attempt to purchase, or otherwise consume or possess any alcohol beverage, including any distilled spirits, beer or wine, or who knowingly misrepresents his age for the purpose of entering a licensed premises shall be guilty of an infraction upon a first violation and shall be guilty of a misdemeanor upon a subsequent conviction and shall be punished according to the schedule set out in section 18-1502, Idaho Code. (2) No person under the age of twenty-one (21) years shall enter, remain in or loiter in or about any place, as defined in this section, licensed for the sale of liquor by the drink at retail, or sale of beer for consumption on the premises; nor shall any licensee of either such place, or any person in charge thereof, or on duty while employed by the licensee therein, permit or allow any person under the age specified with respect thereto to remain in or loiter in or about such place. (3) Provided however, it is lawful for persons who are musicians and singers eighteen (18) years of age or older, to enter and to remain in any place, as defined in this section, but only during and in the course of their employment as musicians and singers. Provided further, that it is lawful for persons who are nineteen (19) years of age or older to sell, serve, possess or dispense liquor, beer or wine in the course of their employment in any place, as defined in this section, or in any other place where liquor, beer or wine Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 is lawfully present, as long as such place is the place of employment for such persons under twenty-one (21) years of age. However, the provisions of this subsection shall not permit the sale or distribution of any alcoholic beverages to any person under the ages specified for sale of alcoholic beverages. (4) For purposes of this section, "place" means any room of any premises licensed for the sale of liquor by the drink at retail wherein there is a bar and liquor, bar supplies and equipment are kept and where beverages containing alcoholic liquor are prepared or mixed and served for consumption therein, and any room of any premises licensed for the sale of beer for consumption on the premises wherein there is a bar and beer, bar supplies and equipment are kept and where beer is drawn or poured and served for consumption therein. SECTION 4. That Chapter 6, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-604B, Idaho Code, and to read as follows: 23-604B. EXCEPTIONS FROM RESTRICTION ON ENTERING OR REMAINING. (1) It shall not be unlawful for, nor shall section 23-604, Idaho Code, be construed to restrict any person under the age of twenty-one (21) years from entering or being: (a) Upon the premises of any restaurant, eating establishment or lodging facility, as defined in section 23-902, Idaho Code, or in any railroad observation or club car or any airplane of a commercial airline, notwithstanding that such premises may also be licensed for the sale of liquor by the drink or for the sale of beer for consumption on the premises or that alcohol beverages, or beer, or both, are prepared, mixed or dispensed and served and consumed therein; (b) In any building, a part or portion of which is used as a place, as defined in this section, provided such place is separated or partitioned from the remainder of said building and access to such place through a doorway or doorways or other means of ingress can be controlled to prevent persons under the ages specified with respect thereto in section 23-604, Idaho Code, from entering therein; (c) In any baseball park, sports arena, convention center, multipurpose arena, theater that is presenting live performances, or fairgrounds, notwithstanding that such premises or any portion thereof may be licensed for the sale of liquor by the drink, wine or beer for consumption on the premises or that such products are dispensed and served and consumed therein; provided however, that the person under the age of twenty-one (21) years is attending a lawful activity, show, exhibition, performance or event on the premises or is required to be present as a condition of his employment. It is lawful for persons under the age of twenty-one (21) years to enter and remain in a baseball park, sports arena, convention center, multipurpose arena or theater that is presenting live performances, or fairgrounds, as long as the activity, show, exhibition, performance or event is lawful and the person does not violate section 23-604(2), Idaho Code; (d) On the premises of any licensed brewery or winery, notwithstanding that such premises or any portion thereof may also be licensed for the Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 sale of beer or wine for consumption on the premises or that beer or wine is dispensed and served and consumed therein; (e) On the licensed premises of a wine retailer wholly owned and operated by a licensed winery that retails exclusively the products of that winery; (f) At a location, other than a liquor, beer, or wine licensed premises, authorized to serve alcohol beverages under a valid alcohol beverage catering permit; or (g) In any movie theater that is allowed to sell beer or wine for consumption on the premises pursuant to a valid license and which movie theater had a license that was valid and not suspended or revoked on January 1, 2006. No films, still pictures, electronic reproductions or other visual reproductions which are in violation of chapter 41, title 18, Idaho Code, regarding indecency and obscenity, or are in violation of federal law regarding pornography, indecency or obscenity shall be shown or displayed on the premises. As used in this subsection, "movie theater" means a motion picture theater that is being utilized solely for exhibition of a motion picture. (2) As used in this section, "place" means any room of any premises licensed for the sale of liquor by the drink at retail wherein there is a bar and liquor, bar supplies and equipment are kept and where beverages containing alcoholic liquor are prepared or mixed and served for consumption therein, and any room of any premises licensed for the sale of beer for consumption on the premises wherein there is a bar and beer, bar supplies and equipment are kept and where beer is drawn or poured and served for consumption therein. SECTION 5. That Section 23-605, Idaho Code, be, and the same is hereby amended to read as follows: 23-605. DISPENSING TO DRUNK. (1) Any person who sells, gives, or dispenses any alcohol beverage, including any distilled spirits, beer or wine, to another person who is intoxicated or apparently obviously intoxicated shall be guilty of a misdemeanor and, upon conviction thereof, may be punished by a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) per violation, or by imprisonment in the county jail for a period not to exceed one (1) year, or by both such fine and imprisonment. A second or subsequent violation of this section by the same defendant shall constitute a misdemeanor and, upon conviction thereof, the defendant shall be punished by a fine of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000) per violation, or imprisonment in the county jail for a period not to exceed one (1) year, or by both such fine and imprisonment. Notwithstanding the provisions of section 19-4705, Idaho Code, moneys received pursuant to such fines shall be deposited in the substance abuse treatment fund, as created in section 23-408, Idaho Code. Upon conviction of any person for a violation of the provisions of this section, the court shall notify the responsible authority. The responsible authority shall review the circumstances of the conviction, and, if the dispensing took place at a licensed establishment or other retailer or distributor, the responsible authority may take administrative action consistent with section 23-617, Idaho Code. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 (2) For the purposes of this section, "responsible authority" means the director, or the city council, chief executive of a city, mayor, board of county commissioners or entity established by ordinance that issued the municipal license for municipal licensees. SECTION 6. That Section 23-615, Idaho Code, be, and the same is hereby amended to read as follows: 23-615. RESTRICTIONS ON SALE. No person licensed pursuant to title 23, Idaho Code, or his or its employed agents, servants or bartenders shall sell, deliver or give away, or cause or permit to be sold, delivered, or given away, or allowed to be consumed, any alcohol beverage, including any distilled spirits, beer or wine, to: (1) Any person under the age of twenty-one (21) years, proof of which shall be a validly issued state, district, territorial, possession, provincial, national or other equivalent government driver's license, identification card or military identification card bearing a photograph and date of birth, or a valid passport. (2) Any person actually, apparently or obviously intoxicated. (3) An habitual drunkard. (43) An interdicted person. Any person under the age of twenty-one (21) years, or other person, who knowingly misrepresents his or her qualifications for the purpose of entering licensed premises or for obtaining alcohol beverages from such licensee shall be equally guilty with such licensee and shall, upon conviction thereof, be guilty of a misdemeanor. SECTION 7. That Chapter 6, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-617, Idaho Code, and to read as follows: 23-617. VIOLATIONS -- ADMINISTRATIVE PENALTIES. (1) The following administrative penalties shall apply to licensees for violations of the provisions of this chapter if all of the licensee's employees, at the time of the violation, have completed an approved alcohol training program in accordance with chapter 12, title 23, Idaho Code: (a) For the first and second violation within a three (3) year period, a written warning shall be issued to the licensee who employs or employed the violator by the responsible authority that administers the license; (b) For the third violation within a three (3) year period, the responsible authority shall impose an administrative fine in the amount of five hundred dollars ($500) on the licensee who employs or employed the violator; and (c) For a fourth or subsequent violation within a three (3) year period, the responsible authority shall review the circumstances and may take additional administrative action against the licensee including, but not limited to, revoking of the license, subject to compliance with this title. (2) The following administrative penalties shall apply to licensees for violations of the provisions of this chapter if any of the licensee's em- Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ployees, at the time of the violation, have not completed an approved alcohol training program in accordance with chapter 12, title 23, Idaho Code: (a) For the first violation within a three (3) year period, the responsible authority shall impose an administrative fine in the amount of three hundred dollars ($300) on the licensee who employs or employed the violator; (b) For a second violation within a three (3) year period, the responsible authority shall impose an administrative fine in the amount of one thousand dollars ($1,000) on the licensee who employs or employed the violator; and (c) For a third or subsequent violation within a three (3) year period, the responsible authority shall review the circumstances and may take additional administrative action against the licensee including, but not limited to, revoking of the license, subject to compliance with this title. (3) Any fines imposed on a state licensee pursuant to the provisions of this section shall be paid to the division to be distributed pursuant to section 23-923, Idaho Code. (4) Any fines imposed on a municipal licensee pursuant to the provisions of this section shall be paid to the city or county that issued the municipal license. (5) For the purposes of this section "responsible authority" means the director, or the city council, chief executive of a city, mayor, board of county commissioners or entity established by ordinance that issued the municipal license for municipal licensees. SECTION 8. That Section 23-901, Idaho Code, be, and the same is hereby amended to read as follows: 23-901. DECLARATION OF POLICY -- RETAIL SALE OF LIQUOR. It is hereby declared as the policy of the state of Idaho that it is necessary to further regulate and control the sale and distribution within the state of alcoholic beverages, and to eliminate certain illegal traffic in liquor now existing, and to insure ensure the entire control of the sale of liquor, it is advisable and necessary, in addition to the operation of the state liquor stores now provided by law, that the director of the Idaho state police and the boards of county commissioners and the councils of cities in the state of Idaho be empowered and authorized to grant licenses for liquor by the drink to persons qualified under this act chapter to sell liquor purchased by them at state liquor stores at retail posted prices in accordance with this act title and under the rules promulgated by said director and under his strict supervision and control and to provide severe penalty for the sale of liquor except by and in state liquor stores and by persons licensed under this act and regulation or ordinance enacted by a board of county commissioners or by a city council. The restrictions, rules, and provisions contained in this act chapter are enacted by the legislature for the protection, health, welfare and safety of the people of the state of Idaho and for the purpose of promoting and encouraging temperance in the use of alcoholic beverages within the state of Idaho. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 SECTION 9. That Section 23-902, Idaho Code, be, and the same is hereby amended to read as follows: 23-902. DEFINITIONS. The following words and phrases used in this chapter shall be given the following interpretation: (1) "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made to members and to bona fide guests of members only: (a) A post, chapter, camp or other local unit composed solely of veterans and their duly recognized auxiliary, and which is a post, chapter, camp or other local unit composed solely of veterans which has been chartered by the congress of the United States for patriotic, fraternal or benevolent purposes, and which has, as the owner, lessee or occupant, operated an establishment for that purpose in this state; or (b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization, which has as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state and actively operates in not less than thirty-six (36) states or has been in continuous existence for not less than twenty (20) years; and which has not less than fifty (50) bona fide members in each unit, and which owns, maintains or operates club quarters, and is authorized and incorporated to operate as a nonprofit club under the laws of this state, and which has recognized tax exempt status under section 501(c)(8) or 501(c)(10) of the Internal Revenue Code, and has been continuously incorporated and operating for a period of not less than one (1) year. The club shall have had during that period of one (1) year, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club. The club membership shall consist of bona fide dues paying members, recorded by the secretary of the club, paying at least six dollars ($6.00) per year in dues, payable monthly, quarterly or annually; and the members at the time of application for a club license shall be in good standing, having paid dues for at least one (1) full year. (2) "Convention" means a formal meeting of members, representatives, or delegates, as of a political party, fraternal society, profession or industry. (32) "Director" means the director of the Idaho state police. (3) "Eating establishment" means a restaurant, cafe, dining room, coffee shop, cafeteria or other establishment that must utilize at least seventy-five percent (75%) of the gross floor area for the preparation, cooking and serving of complete meals, have and actively operate a commercial kitchen that includes a type 1 commercial hood and cooking equipment, excluding microwave ovens and grills, capable of cooking complete meals and be a public place kept, maintained and advertised as a place where complete meals are served and where complete meals are actually and regularly served during the time the establishment is open to the public. Limited food service, such as is provided by luncheonettes, drive-ins, sandwich shops and other similar uses does not meet the requirements of this definition. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 (4) "Festival" means a period or program of festive activities, cultural events or entertainment lasting three (3) or more consecutive days. (5) "Gaming" means any and all gambling or games of chance defined in chapters 38 and 49, title 18, Idaho Code, or any section or sections thereof, whether those games are licensed or unlicensed. (6) "Interdicted person" means a person to whom the sale of liquor is prohibited under law. (7) "License" means a license issued by the director to a qualified person, under which it shall be lawful for the licensee to sell and dispense liquor by the drink at retail, as provided by law. (86) "Licensee" means the person to whom a license is issued under the provisions of law. (97) "Liquor" means all kinds of liquor sold by and in a state liquor store of the state of Idaho. (10) "Live performance" means a performance occurring in a theater and not otherwise in violation of any provision of Idaho law. (8) "Lodging facility" means a building with permanent bona fide overnight accommodations available to the general public. (119) "Municipal license" means a license issued by a municipality county or incorporated city of the state of Idaho under the provisions of law. (120) "Party" means a social gathering especially for pleasure or amusement and includes, but is not limited to, such social events as weddings, birthdays, and special holiday celebrations to include, but not be limited to, New Year's celebrations, Super Bowl Sunday, St. Patrick's Day, the Fourth of July and Labor Day. (131) "Person" means any individual, corporation, business corporation, nonprofit corporation, benefit corporation as defined in section 30-2002(1), Idaho Code, partnership, limited partnership, limited liability company, general cooperative association, limited cooperative association, estate, unincorporated nonprofit association, statutory trust, business trust, common-law business trust, estate trust, association, joint venture, public corporation, government or governmental subdivision, agency or instrumentality, any entity defined in section 30-21-102, Idaho Code, or any other commercial entity, whether conducting the business singularly or collectively. (142) "Premises" means the building and contiguous property owned, or leased or used under a government permit by a licensee as part of the business establishment in the business of sale of liquor by the drink at retail, which property is improved to include decks, docks, boardwalks, lawns, gardens, golf courses, ski resorts, courtyards, patios, poolside areas or similar improved appurtenances in which the sale of liquor by the drink at retail is authorized under the provisions of law. (13) "Qualified applicant" means any person who has a valid retail beer license issued under the laws of the state of Idaho. (154) "Rules" means rules promulgated by the director or ordinances enacted by a county or city in accordance with the provisions of law. (15) "Specialty license" means a license duly issued by the director prior to January 1, 2020, to a person, owner, operator or lessee of a: golf course; winery; ski resort; equestrian facility; restaurant operated in an Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 airport; club; convention center; gondola resort complex; food, conference and lodging facility; dining club or buffet car operated in connection with regularly operated train service, or common carrier boat or common carrier airline; waterfront resort; cross-country skiing facility; racing facility; theme park; ski resort facility or golf course which has had a split in ownership; or a year-round resort. (16) "State liquor license" means a license issued by the director prior to January 1, 2020, under which it shall be lawful for the licensee to sell and dispense liquor by the drink at retail, as provided by law. (167) "State liquor store" means a liquor store or distributor established under and pursuant to the laws of the state of Idaho for the package sale of liquor at retail. (178) "Theater" means a room, place or outside structure for performances or readings of dramatic literature, plays or dramatic representations of an art form not in violation of any provision of Idaho law. (189) "Brewery" means a place, premises or establishment for the manufacture, bottling or canning of beer. (1920) "Winery" means a place, premises or establishment within the state of Idaho for the manufacture or bottling of table wine or dessert wine for sale. Two (2) or more wineries may use the same premises and the same equipment to manufacture their respective wines, to the extent permitted by federal law. (201) All other words and phrases used in this chapter, the definitions of which are not herein given in this section, shall be given their ordinary and commonly understood and acceptable meanings. SECTION 10. That Sections 23-903, 23-903a, 23-903b, 23-904, 23-905, 23-906, 23-907 and 23-908, Idaho Code, be, and the same are hereby repealed. SECTION 11. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-903, Idaho Code, and to read as follows: 23-903. NO RETAIL SALE EXCEPT BY THE DRINK -- RESTRICTIONS ON SALES. (1) It shall be unlawful for any licensee to sell, keep for sale, dispense, give away, or otherwise dispose of any liquor in the original containers or otherwise than by retail sale by the drink. (2) No person licensed pursuant this title, or his agent, officer, or employee, shall sell, deliver, give away, or allow the consumption of any alcohol beverage, including distilled spirits, beer or wine, to: (a) Any person under the age of twenty-one (21) years. Proof of proper age shall be a validly issued state, district, territorial, provincial, national or other equivalent driver's license, government identification card, military identification card or passport bearing a photograph and date of birth; or (b) Any person obviously intoxicated. SECTION 12. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-904, Idaho Code, and to read as follows: Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 23-904. GRANDFATHER CLAUSE. Any person who, on January 1, 2020, holds a valid retail liquor license shall be accorded "grandfather rights," and shall be deemed to have a state liquor license and be subject to the applicable provisions of this chapter and rules promulgated by the director. State liquor licenses, unless stated otherwise or prohibited by ordinance, shall be freely transferable throughout the state of Idaho wherever liquor by the drink establishments are allowed. Specialty licenses that were issued prior to January 1, 2020, shall also be deemed state liquor licenses; provided however, these licenses shall not be transferred to any other location or person. SECTION 13. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-905, Idaho Code, and to read as follows: 23-905. AUTHORIZATION FOR COUNTIES AND CITIES TO LICENSE RETAIL LIQUOR. (1) Counties are hereby empowered and authorized to issue municipal licenses to qualified applicants for eating establishments and lodging facilities outside the incorporated limits of any city within said county, as provided in this section, whereby the licensee shall be authorized and permitted to sell liquor by the drink at retail and, upon the issuance of such license, the licensee therein named shall be authorized to sell liquor by the drink at retail, but only in accordance with the provisions of this chapter and any rules promulgated or ordinance adopted by the board of county commissioners of the licensing county. (2) Incorporated cities are hereby empowered and authorized to issue municipal licenses to qualified applicants for eating establishments and lodging facilities within the corporate limits of such city, as provided in this section, whereby the licensee shall be authorized and permitted to sell liquor by the drink at retail and, upon the issuance of such license, the licensee therein named shall be authorized to sell liquor by the drink at retail, but only in accordance with the provisions of this chapter and any rules promulgated or ordinance adopted by the city council of the licensing city. (3) The boards of county commissioners and city councils are empowered to create rules, requirements and criteria by ordinance for the equitable and fair administration of municipal licenses consistent with state law; provided however, that any such criteria shall not be inconsistent with this chapter. SECTION 14. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-906, Idaho Code, and to read as follows: 23-906. REFERENDUM. Municipal licenses may be issued after sixty (60) days of the effective date of this act unless there is an existing resolution or ordinance, or one is adopted by a city council or county commission, or an election, pursuant to this chapter and Idaho law, is held to prohibit municipal licenses for the retail sale of liquor by the drink. Within sixty (60) days after the effective date of this act, a petition in writing pro- Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 posed by a person and signed by not less than twenty percent (20%) of the registered, qualified electors of any county or city may be filed with the clerk of said county or city as their protest against the authority of the governing body to issue municipal licenses in said county or city under the provisions of this act. In the event said petition is presented, the governing body of any such county or city shall, within five (5) days after the presentation of said petition, meet and determine the sufficiency thereof by ascertaining whether said petition is signed by the required number of registered, qualified electors of the county or city affected. In the event the governing body of said county or city determines that said petition is signed by the required percentage of registered, qualified electors, said governing body shall forthwith make an order calling an election to be held within said county or city, subject to the provisions of chapter 6, title 34, Idaho Code, in the manner provided by law for holding elections for county or city officers. All laws of the state of Idaho relating to the holding of elections of county or city officers for such county or city, whether special charter or general law of the state, shall apply to the holding of the election provided for in this section, except where specifically modified in this section. In addition to the other requirements of law, the notice of election shall notify the electors of the issue to be voted on at said election. SECTION 15. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-907, Idaho Code, and to read as follows: 23-907. FORM OF BALLOT. The county or city clerk must furnish the ballots to be used in such election, which ballots must contain the following words: "Municipal licenses for the sale of liquor by the drink, Yes," "Municipal licenses for the sale of liquor by the drink, No," and the elector, in order to vote, must mark opposite one (1) of the questions in a space provided therefor. SECTION 16. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-908, Idaho Code, and to read as follows: 23-908. EFFECT OF ELECTION -- LIQUOR STORE SALES NOT AFFECTED. Upon a canvass of the votes cast, the clerk of the county or city shall certify the result thereof to the governing body. If a majority of the votes cast are "sale of liquor by the drink, Yes," municipal licenses shall be issued in said county or city as provided in this act. If a majority of the votes cast are "sale of liquor by the drink, No," then no municipal licenses shall be issued in said county or city unless thereafter authorized by a subsequent election in said county or city; provided however, that nothing in this section, nor any resolution shall be construed to prevent or prohibit the sale of liquor at or by a state liquor store, state distributor or holder of a state liquor license issued for a premises within such county or city. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 SECTION 17. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-909, Idaho Code, and to read as follows: 23-909. SUBSEQUENT ELECTIONS. An election may be subsequently called and held on the issue of whether the sale of liquor by the drink shall be prohibited or, if prohibited, then an election to determine whether sale of liquor by the drink shall be permitted. Such subsequent election shall be held upon the filing of a petition, as provided in section 23-906, Idaho Code, signed by the requisite percentage of qualified electors. No such subsequent election shall be held prior to November 1, 2020, or more often than two (2) years after the holding of any such subsequent election. SECTION 18. That Sections 23-910, 23-911, 23-912, 23-913, 23-914, 23-915, 23-916, 23-917, 23-918, 23-919, 23-920 and 23-921, Idaho Code, be, and the same are hereby repealed. SECTION 19. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-910, Idaho Code, and to read as follows: 23-910. APPLICATION FOR MUNICIPAL LICENSES. (1) Prior to the issuance of a municipal license as provided in this section, an applicant shall file with the county, if outside the limits of an incorporated city or alternatively, the city, if the premises is located within an incorporated city, an application, in writing, signed by the applicant and containing such information and statements relative to the applicant and the premises where the liquor is to be sold as may be required by the county or city, along with a nonrefundable application fee of four hundred dollars ($400). The application shall be verified by the affidavit of the person making the same before a person authorized to administer oaths and shall be accompanied by the license fee required in this section. (2) In addition to setting forth the qualifications required by other provisions of this act, the applicant must show: (a) A complete copy of the beer license application filed with the state pursuant to chapter 10, title 23, Idaho Code; (b) A copy of a valid state beer license issued to the applicant; (c) A copy of a valid county beer license issued to the applicant; and (d) If, during the period of any license issued pursuant to this section, any change shall take place in any of the requirements of this subsection, the licensee shall forthwith make a written report of such change to the respective local authority. SECTION 20. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-911, Idaho Code, and to read as follows: 23-911. INVESTIGATION OF APPLICATIONS -- PENALTY FOR FALSE STATEMENTS. (1) Upon receipt of an application for a municipal license under this act, accompanied by the necessary license fee, the county or city, Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 if the premises are within an incorporated city, within ninety (90) days thereafter, may cause to be made a thorough investigation of all matters pertaining thereto. If the county or city, if applicable, determines that the contents of the application are true, that such applicant is qualified to receive a license, and that the requirements of this act and the rules promulgated by the county or city are met and complied with, it shall issue such license; otherwise the application shall be denied and the license fee, less the costs and expenses of investigation, returned to the applicant. (2) In making an investigation pursuant to this section, the county or city shall have the power to investigate and examine the books and records of the licensee and any person having a financial interest in any business to be conducted on the licensed premises, including, but not limited to, their bank accounts, returns filed under the Idaho income tax act, as amended, and any other sources of information deemed desirable by the county or city and not specifically prohibited by law. (3) If any false statement is made in any part of said application, or any subsequent report, the applicant, or applicants, shall be deemed guilty of a felony and upon conviction thereof shall be imprisoned in the state prison for not less than one (1) year nor more than five (5) years and fined not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), or both such fine and imprisonment. SECTION 21. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-912, Idaho Code, and to read as follows: 23-912. RULES AND REGULATIONS -- FORMS AND RECORDS. (1) For the purpose of the administration of state liquor licenses, the director shall make, promulgate and publish such rules and regulations as said director may deem necessary for carrying out the provisions of this act and for the orderly and efficient administration of this section, and except as may be limited or prohibited by law and the provisions of this act, such rules and regulations so made and promulgated shall have the force of statute. Without limiting the generality of the provisions of this section, the director shall be empowered and it is made his duty to prescribe forms to be used in the administration of this act, the proof to be furnished and the conditions to be observed in the issuance of state liquor licenses, prescribing forms or records to be kept of the sale of liquor, prescribing notices required by this act or the regulations thereof, and the manner of giving and serving the same, prescribing, subject to the provisions of this act, the conditions and qualifications necessary to transfer a license if allowed, the books and records to be kept by the licensee, the form of returns to be made by the licensee, and providing for the inspection of such licensed premises, specifying and describing the place and manner in which the liquor may be lawfully kept or stored, covering the conduct, management and equipment of premises licensed to sell liquor and make regulations respecting the sale and consumption of liquor. (2) The licensing authority of any county or incorporated city shall have and exercise the same powers to administer municipal licenses issued or issuable by it as are granted to the director in this section. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 (3) Every licensee shall advise himself of such rules and regulations, and ignorance thereof shall be no defense. SECTION 22. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-913, Idaho Code, and to read as follows: 23-913. LICENSE FEES. (1) Each city council and board of county commissioners is authorized and empowered to impose and collect a onetime, nonrefundable application fee and the annual license fee from qualified applicants. (2) Each city council and board of county commissioners is authorized and empowered to impose and collect an annual license fee for municipal licenses it issues in an amount not less than three thousand dollars ($3,000). In establishing the amount of such fee, a city or county may consider the impacts of newly licensed establishments, including both direct and indirect costs upon municipal services, maintenance of public safety and other costs of managing municipal licenses. (3) The director is hereby authorized and empowered to impose and collect an annual license fee for state liquor licenses as follows: (a) For each license in a city having a population of one thousand (1,000) or less, three hundred dollars ($300) per annum. (b) For each license in a city having a population of one thousand (1,000) to three thousand (3,000), five hundred dollars ($500) per annum. (c) For each license in a city having a population of more than three thousand (3,000), seven hundred fifty dollars ($750) per annum. (d) For each railroad train for sale only in buffet, club or dining cars, fifty dollars ($50.00) per annum of the scheduled run of such train within the state of Idaho; provided however, that such license shall be in full, and in lieu of all other licenses provided for in this section. (e) For each common carrier boat line for sale only in buffet, club or dining rooms, two hundred fifty dollars ($250) per annum. Such license shall be in full, and in lieu of all other licenses provided for in this section. (f) For each license issued to the owner, operator, or lessee of a golf course as described in section 23-902, Idaho Code, or to the lessee of any premises situate on such golf course, situate in any county having a population of: (i) Less than twenty thousand (20,000), two hundred dollars ($200) per annum; (ii) Twenty thousand (20,000) but less than forty thousand (40,000), three hundred dollars ($300) per annum; and (iii) Forty thousand (40,000) or more, four hundred dollars ($400) per annum. (g) For each common carrier airline for sale only in common carrier aircraft, two hundred fifty dollars ($250) per annum. Such license shall be in full, and in lieu of all other licenses provided for in this section. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 (h) For each license issued to the owner, operator, or lessee of a restaurant operated in an airport, as described in section 23-902, Idaho Code, situate within the corporate limits of a city, the fee shall be the same as provided in paragraphs (a) through (c) of this subsection. (i) For each license issued to the owner, operator, or lessee of a restaurant operated in an airport, as described in section 23-902, Idaho Code, situate without the corporate limits of a city, the fee shall be the same as provided in paragraph (f) of this section. Licenses issued pursuant to the provisions of this chapter shall expire at 1:00 a.m. on the first day of January of the following year. (j) For each license issued to an owner or operator of a year-round resort as described in section 23-902, Idaho Code, a onetime fee of twenty-five thousand dollars ($25,000), with a subsequent renewal fee of three thousand five hundred dollars ($3,500) per annum. For each license issued to an owner or operator of a beverage, lodging or dining facility within the premises of a year-round resort as described in section 23-902, Idaho Code, a onetime fee of twenty-five thousand dollars ($25,000), with a subsequent renewal fee of three thousand five hundred dollars ($3,500) per annum. For each license issued to a lessee of a beverage, lodging or dining facility within the premises of the year-round resort as described in section 23-902, Idaho Code, a onetime fee of twenty-five thousand dollars ($25,000), with a subsequent renewal fee of three thousand five hundred dollars ($3,500) per annum. (4) Provided that any licensee who operates for only a portion of a year may have his license fee prorated from the date he commences operation to the end of the calendar year, but in no event for less than six (6) months. (5) In the event a licensee who was previously issued a license on a prorated basis, pursuant to the provisions of this section, desires to have such license renewed for the same period for the next succeeding year, he shall file his intention to so apply for such license with the director, accompanied by the fee required for the issuance of such license on or before December 31 of the year preceding. (6) The license fees provided for in this section are exclusive of and in addition to other license fees chargeable in the state of Idaho. SECTION 23. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-915, Idaho Code, and to read as follows: 23-915. PERSONS NOT QUALIFIED TO BE LICENSED. No municipal license shall be issued to, nor shall a state liquor license be transferred, if allowed, to: (1) Any person, or any one (1) of its members, officers, or governing board, who has, within three (3) years prior to the date of making application, been convicted of any violation of the laws of the United States, the state of Idaho, or any other state of the United States, or of the resolutions or ordinances of any county or city of this state, relating to the importation, transportation, manufacture or sale of alcoholic liquor or beer; or who has been convicted, paid any fine, been placed on probation, received a Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 deferred sentence, received a withheld judgment or completed any sentence of confinement for any felony within five (5) years prior to the date of making application for any license; (2) A person who is engaged in the operation, or interested therein, of any house or place for the purpose of prostitution or who has been convicted of any crime or misdemeanor opposed to decency and morality; (3) A person whose license issued under this act has been revoked; an individual who was a member of a partnership or association that was a licensee under this act and whose license has been revoked; an individual who was an officer, member of the governing board or one (1) of the ten (10) principal stockholders of a corporation that was a licensee under this act and whose license has been revoked; a partnership or association, one (1) of whose members was a licensee under this act and whose license was revoked; a corporation, one (1) of whose officers, members of the governing board or ten (10) principal stockholders was a licensee under the provisions of this act and whose license has been revoked; an association or partnership, one (1) of whose members was a member of a partnership or association licensed under the provisions of this act and whose license has been revoked; a partnership or association, one (1) of whose members was an officer, a member of the governing board, or one (1) of the ten (10) principal stockholders of a corporation licensed under the provisions of this act and whose license has been revoked; a corporation, one (1) of whose officers, members of the governing board, or ten (10) principal stockholders was a member of a partnership or association licensed under the provisions of this act and whose license was revoked; a corporation, one (1) of whose officers, members of the governing board, or ten (10) principal stockholders was an officer, member of the governing board, or one (1) of the ten (10) principal stockholders of a corporation licensed under the provisions of this act and whose license was revoked; (4) Any officer, agent, or employee of any distillery, winery, brewery, or any wholesaler, or jobber, of liquor or malt beverages except as provided in section 23-918, Idaho Code. This prohibition shall not apply to officers, agents, or employees of any winery operating a golf course on the same premises as the winery; or (5) A person who does not hold a retail beer license issued by the state of Idaho. (6) Any license, held by any licensee disqualified under the provisions of this section from being issued a license, shall forthwith be revoked. SECTION 24. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-916, Idaho Code, and to read as follows: 23-916. LICENSEE NOT ALLOWED NEAR CHURCHES OR SCHOOLS -- EXCEPTIONS. No municipal or state liquor license shall be issued or transferred, respectively, to any premises in any neighborhood that is predominantly residential or within three hundred (300) feet of any public school, church, or any other place of worship, measured in a straight line to the nearest entrance to the licensed premises, except with the approval of the city council or board of county commissioners; provided however, that this limitation shall not apply to any duly licensed premises that at the time of licensing Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 did not come within the restricted area, but subsequent to licensing came within the restricted area. SECTION 25. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-917, Idaho Code, and to read as follows: 23-917. RESTRICTIONS ON MANUFACTURERS, TRANSPORTERS OR DISTILLERS. Except as provided in sections 23-915 and 23-918, Idaho Code, no manufacturer, rectifier, wholesaler, stockholder, shareholder, partner or the owner of any other interest in any corporation, association or partnership financially interested in the manufacture, transportation or sale of liquor shall furnish, give, rent, lend or sell any equipment or fixtures directly or indirectly, or through a subsidiary or affiliate or by any officer, director or firm member of the industry or otherwise furnish financial aid to any person engaged in the sale of liquor pursuant to this section and no licensee pursuant to this section shall receive or be the beneficiary of any of the benefits hereby prohibited. SECTION 26. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-918, Idaho Code, and to read as follows: 23-918. RESTRICTIONS OF PERSONS INTERESTED IN PREMISES. (1) Except as provided in subsection (2) of this section, no manufacturer, rectifier, wholesaler, stockholder, shareholder, partner or the owner of any other interest in any corporation, association or partnership financially interested in the manufacture, transportation (except public carriers), or sale of liquor shall hold any interest in any premises licensed pursuant to this section for the sale of liquor or receive any rental or remuneration from any such premises. (2) A manufacturer, rectifier, wholesaler, stockholder, shareholder, partner or the owner of any interest in any corporation, association or partnership financially interested in the manufacture, transportation or sale of liquor may hold interest in a licensed premises if the licensed premises serves food cooked on the site of the licensed premises, and the person or entity can show through recordkeeping that no more than fifty percent (50%) of the gross revenue to the licensed premises is derived from the sale of alcoholic beverages on site. The owner of the licensed premises pursuant to this subsection shall comply with and be subject to all other rules, regulations or other provisions of law that apply to manufacturers, rectifiers, wholesalers, stockholders, shareholders, partners or the owners of any interest in any corporation, association or partnership financially interested in the manufacture, transportation or sale of liquor save and except as such rules, regulations or laws may restrict such sales at the licensed premises. The holder of a license pursuant to this section shall not be disqualified from holding a beer license, a retail wine license or wine by the drink license for the sale of beer or wine at the licensed premises on the grounds that the licensee is also a manufacturer, wholesaler, stockholder, shareholder, partner or the owner of any interest in any corporation, association Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 or partnership financially interested in the manufacture, transportation or sale of liquor, beer or wine. This subsection shall not be deemed to grant a license for the retail sale of liquor by the drink, and the license must be obtained through normal lawful means. SECTION 27. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-919, Idaho Code, and to read as follows: 23-919. FORM OF LICENSE -- AUTHORITY -- EXPIRATION -- LIMITATIONS. (1) Every municipal license issued under the provisions of this chapter shall set forth the name of the person to whom it is issued, the location by street and number, or other definite designation of the premises, and such other information as the county or city, if the premises are within an incorporated city, shall deem necessary. If issued to a partnership, the names of the persons constituting such partnership shall be set forth in the application. If issued to a corporation or association, the names of the principal officers and the governing board shall be set forth in the application. Such license shall be signed by the licensee and prominently displayed in the place of business at all times. (2) Such municipal license shall be site-specific and not be transferred to any other location or person. (3) Every municipal and state liquor license is separate and distinct and no person except the licensee therein named, except as otherwise provided in this section, shall exercise any of the privileges granted thereunder. All licenses shall expire at 1:00 a.m. on the first day of the renewal month which shall be determined by rule and shall be subject to annual renewal upon proper application. Renewal applications for liquor by the drink licenses accompanied by the required fee must be filed on or before the first day of the designated renewal month. Any licensee holding a valid license who fails to file an application for renewal of his current license on or before the first day of the designated renewal month shall have a grace period of an additional thirty-one (31) days in which to file an application for renewal of the license. The licensee shall not be permitted to sell and dispense liquor by the drink at retail during the thirty-one (31) day extended time period unless and until the license is renewed. (4) An application to transfer any state liquor license shall be made to the director. Upon receipt of such an application, the director shall make the same investigation and determinations with respect to the transferee as are required by sections 23-910 and 23-911, Idaho Code, and if the director shall determine that all of the conditions required of a licensee under this chapter have been met by the proposed transferee, then the license shall be endorsed over to the proposed transferee by said licensee for the remainder of the period for which such license has been issued and the director shall issue a license to the transferee. (5) The director, in his discretion, may deny the transfer of a license during the pendency of any proceedings for suspension or revocation that were instituted pursuant to the terms of this chapter. (6) The fee for transferring a state liquor license shall be ten percent (10%) of the purchase price of the state liquor license or the cost of good Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 will, whichever is greater; except no fee shall be collected in the following events: (a) The transfer of a license between husband and wife in the event of a property division; (b) The transfer of a license to a receiver, trustee in bankruptcy or similar person or officer; (c) The transfer of a license to the heirs or personal representative of the estate in the event of the death of the licensee; (d) The transfer of a license arising out of the dissolution of a partnership where the license is transferred to one (1) or more of the partners; or (e) The transfer of a license within a family, whether an individual, partnership or corporation. (7) The fee for transferring a state liquor license for other than a sale shall be fifty percent (50%) of the per annum license fee for state liquor licenses set forth in section 23-913, Idaho Code, except no fee shall be collected for transfers as outlined in subsection (6) of this section. SECTION 28. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-920, Idaho Code, and to read as follows: 23-920. RESTRICTION AGAINST TRANSFER OF STATE LIQUOR LICENSES. (1) No state liquor license shall be transferred, assigned, leased or sold if: (a) The state liquor license when issued was not transferable; (b) The state tax commission has notified the director and the licensee in writing that any tax imposed by chapters 30 and 36, title 63, Idaho Code, interest, penalty, and additional amount, which has accrued as a result of the operation of the licensed premises, has been assessed as that term is described in section 63-3045A, Idaho Code, against the licensee or any person operating the licensed premises with the permission of the licensee; or (c) The department of labor has notified the director and the licensee in writing that a lien has been filed against the licensee or any person operating the licensed premises with the permission of the licensee, as a result of the operation of the licensed premises securing amounts due pursuant to chapter 13, title 72, Idaho Code. (2) At such time as the state tax commission or the department of labor has notified the director and licensee as provided in this section, the license issued for the premises, the operation of which has resulted in the accrual of the tax for which the warrant or lien is outstanding, shall be subject to levy and distraint pursuant to chapter 30, title 63, Idaho Code, or seizure pursuant to section 72-1360A, Idaho Code. SECTION 29. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-921, Idaho Code, and to read as follows: 23-921. SUSPENSION, REVOCATION AND REFUSAL TO RENEW LICENSES. (1) The director may suspend, revoke or refuse to renew a state liquor license for Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 any violation of, or failure to comply with, the provisions of this chapter or rules and regulations promulgated by the director pursuant to the terms and conditions of this chapter. Procedures for the suspension, revocation or refusal to renew licenses issued under this chapter shall be in accordance with the provisions of chapter 52, title 67, Idaho Code. (2) When the director determines to suspend such license, the affected licensee may petition the director, prior to the effective date of the suspension, requesting that a monetary payment be allowed in lieu of the license suspension. If the director determines such payment to be consistent with the purpose of the laws of the state of Idaho and is in the public interest, he shall establish a monetary payment in an amount not to exceed five thousand dollars ($5,000). The licensee may reject the payment amount determined by the director, and instead be subject to the suspension provisions of subsection (1) of this section. Upon payment of the amount established, the director shall cancel the suspension period. The director shall cause any payment to be paid to the treasurer of the state of Idaho for disposition consistent with section 23-923, Idaho Code. (3) The director may adopt guidelines and rules, which shall be available to licensees and members of the public, stating the minimum and maximum periods of suspensions or minimum and maximum amounts of monetary payments the division will consider in lieu of the imposition of suspensions for particular violations of the provisions of this title. Guidelines and rules adopted by the division shall not prevent, or be construed to prohibit, the director from imposing a greater or lesser period of suspension, or imposing a greater or lesser monetary payment, within the limits established by this section, based upon aggravated or extenuating circumstances found to exist by the director. (4) The suspension of a license for the sale of beer or wine shall automatically result in the suspension of any state or municipal license for the sale of liquor held by the same licensee and issued for the same premises. Such additional suspension shall be equal in length to and run concurrently with the period of the original suspension. (5) When a proceeding to revoke or suspend a state liquor license has been or is about to be instituted, during the time when renewal of such state liquor license is pending before the director, the director shall renew the state liquor license notwithstanding the pending proceedings, but such renewed state liquor license may be revoked or suspended without hearing if and when the previous state liquor license is, for any reason, revoked or suspended. SECTION 30. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-921A, Idaho Code, and to read as follows: 23-921A. LICENSES -- SUSPENSION OR REVOCATION FOR VIOLATION OF OBSCENITY LAWS. In the event of a conviction for a violation of chapter 41, title 18, Idaho Code, relating to obscenity, by any: (1) Licensee; (2) Agent of licensee; or Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 (3) Employee of licensee if such licensee knew or should have known in the exercise of reasonable diligence that said employee was violating the provisions of chapter 41, title 18, Idaho Code. If the violation committed by any of the above occurred on, or in connection with, premises licensed under this act by such licensee, the director shall suspend the license of such licensee for a period of six (6) months. If such licensee, or his agent or employee, has previously been convicted of a violation of chapter 41, title 18, Idaho Code, relating to obscenity, which violation occurred on, or in connection with, the premises licensed under this act by such licensee, the director shall revoke the license of such licensee. SECTION 31. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-922, Idaho Code, and to read as follows: 23-922. SELLING LIQUOR WITHOUT LICENSE -- PENALTY. Any person who sells or keeps for sale any liquor without a license as provided in this act shall be guilty of a felony and upon conviction thereof shall be fined not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), or be imprisoned in the state prison for not less than one (1) year nor more than five (5) years, or both such fine and imprisonment. SECTION 32. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-923, Idaho Code, and to read as follows: 23-923. LICENSEES MUST PURCHASE FROM STATE LIQUOR DIVISION -PRICE. All liquor, excluding wine and beer, sold by any licensee shall be purchased from the state liquor division through its regular retail stores and distributors at the posted price thereof, except as provided in section 23-917, Idaho Code. The state liquor division is hereby authorized and directed to make such sales in accordance with section 23-309, Idaho Code, to be paid at the time of purchase upon a special permit issued to such licensee in such form as shall be prescribed by the state liquor division. The "posted price" as used in this section means the retail price of such liquor as fixed and determined by the state liquor division. SECTION 33. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-924, Idaho Code, and to read as follows: 23-924. OFFICERS MAY EXAMINE PREMISES. (1) The director or his duly authorized representative, the sheriff of any county, or other police officer, shall have the right at any time to make an examination of the premises of any licensee as to whether the laws of the state of Idaho, the rules and regulations of the director, and the ordinances of any county or city are being complied with, and shall also have the right to inspect the cars of any railroad system licensed under this act. (2) Minors may assist with random, unannounced inspections with the written consent of a parent or legal guardian. When assisting with these in- Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 spections, minors shall not provide false identification, nor make any false statements regarding their age. SECTION 34. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-925, Idaho Code, and to read as follows: 23-925. OFFICERS MAY SEIZE ILLEGAL LIQUOR. (1) It shall be unlawful for any licensee to sell, or keep for sale, or have on his premises for any purpose whatsoever, any liquor except liquor produced on the premises by a licensed distiller or purchased as authorized and provided in this section, and any licensee found in possession of, selling or keeping for sale any liquor not purchased as authorized in this section shall be guilty of a felony and upon conviction thereof shall be fined not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), or by imprisonment in the state prison for not more than five (5) years, or by both such fine and imprisonment. Any license issued to such person shall be immediately and permanently revoked. The amount of liquor to be sold to licensees pursuant to this section in any city or village shall be determined by the administrator or other executive officer of the state liquor division, but such sales shall be regulated so as to maintain adequate stocks of merchandise for sale to persons other than said licensees. (2) The director, or any of his agents, any sheriff, or other police officer who shall find any liquor kept or held by any person in violation of the provisions of this act may forthwith seize and remove the same and keep the same as evidence and, upon conviction of the person for violation of the provisions of this section, the said liquor, and all packages or receptacles containing the same, shall be forfeited to the state of Idaho and, in addition, the person so violating this act shall be subject to the other penalties prescribed in this section. (3) The provisions of this section notwithstanding, common carriers shall have the right to have in their possession liquors other than those purchased from the Idaho state liquor division. SECTION 35. That Sections 23-926, 23-927 and 23-928, Idaho Code, be, and the same are hereby repealed. SECTION 36. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-926, Idaho Code, and to read as follows: 23-926. POSTING SIGNS AS TO RESTRICTION. Every licensee referred to in this title shall keep a sign conspicuously posted over or near each entrance to any place from which persons less than twenty-one (21) years of age are restricted pursuant to this section giving public notice of such fact. Such sign shall contain the following words in lettering of at least one (1) inch in height: "Admittance of persons under twenty-one (21) years of age prohibited by law." Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 SECTION 37. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-927, Idaho Code, and to read as follows: 23-927. SALE AWAY FROM LICENSED PREMISES PROHIBITED -- GAMING PROHIBITED. (1) It shall be unlawful for any licensee to sell, give away, dispense, vend or deliver any liquor in any fashion or by means or device, except upon the licensed premises, unless permitted pursuant to section 23-928, Idaho Code, or expressed written permission granted by the director for state liquor licenses or the county or city for municipal licenses in response to damage or destruction that causes the closure of the premises. (2) It shall be unlawful for any licensee granted a license under the authority of this title to permit, conduct, play, carry on, open or cause to be opened any gaming in or on the licensed premises or in or on any premises directly connected by a door, hallway or other means of access from the licensed premises. Any licensee authorized under the authority of this title and who is also authorized by other Idaho law to conduct the lawful activities of lottery, bingo, raffles and pari-mutuel betting on the licensed premises shall be exempt from the provisions of this subsection as long as the lawful activities are conducted in conformity with statute and rules promulgated pursuant thereto. SECTION 38. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-928, Idaho Code, and to read as follows: 23-928. ALCOHOL BEVERAGE CATERING PERMIT -- APPLICATION. An alcohol beverage catering permit is a permit issued pursuant to this section which authorizes the permittee to serve and sell liquor by the drink, beer and wine, or beer or wine, at a party or convention, for a period of time not to exceed three (3) consecutive days. An alcohol beverage catering permit shall be limited to authorization to sell liquor or beer or wine, or any combination thereof, based upon the type of license that the applicant possesses. Applications for such permit shall be made to the city within which the liquor, beer or wine is to be served, or if not within a city, then to the county, on such form as prescribed by the city or county that shall contain at a minimum, but not limited to, the following information: (1) The name and address of the applicant and the number of his liquor, beer or wine license; (2) The dates and hours during which the permit is to be effective, not to exceed three (3) consecutive days; (3) The names of the organizations, groups or persons sponsoring the event; and (4) The address at which the liquor, beer or wine is to be served and, if a public building, the rooms in which the liquor, beer or wine is to be served. The application shall be verified by the applicant and filed with the appropriate governing body or its designee. A filing fee in the amount of thirty dollars ($30.00) for each day the permit is to be effective shall be paid to the treasury of the governing body, which fee shall not be refunded in Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 any event. Any alcohol beverage catering permit shall be valid only within the issuing jurisdiction. SECTION 39. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-929, Idaho Code, and to read as follows: 23-929. FILING OF APPLICATION -- APPROVAL. Upon the filing of an application for an alcohol beverage catering permit, the city council or its designee, or board of county commissioners receiving the application shall, upon the advice and recommendation of the chief of police or sheriff, approve or disapprove the application and indicate the determination on the face of the application by endorsement signed by the clerk of the city or county. Copies of the application with signed endorsements thereon shall be mailed or delivered immediately to the chief of police or sheriff and the applicant, and a signed copy shall be retained by the clerk. An application approved in this manner shall constitute an alcohol beverage catering permit. SECTION 40. That Sections 23-930, 23-931, 23-932, 23-933, 23-933A, 23-933B, 23-934, 23-934A, 23-934B, 23-934C, 23-935, 23-936, 23-937, 23-938, 23-939, 23-941, 23-942, 23-943, 23-943A, 23-944, 23-945, 23-946, 23-947, 23-948, 23-949, 23-950, 23-951, 23-952, 23-953, 23-954, 23-955, 23-956 and 23-957, Idaho Code, be, and the same are hereby repealed. SECTION 41. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-930, Idaho Code, and to read as follows: 23-930. REGULATORY AND PENALTY PROVISIONS APPLICABLE. All of the regulatory and penal provisions of this title shall apply to the exercise of alcohol beverage catering permits, including the penalties for violations thereof, except such provisions declared to be inapplicable to alcohol beverage catering permits by rule; provided however, neither the director nor any county or city shall have the power to declare inapplicable any of the provisions of section 23-932, Idaho Code. SECTION 42. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-931, Idaho Code, and to read as follows: 23-931. DESTRUCTION OF STAMPS -- SANITARY REQUIREMENTS. It shall be the duty of any licensee hereunder immediately, upon emptying any liquor container, to deface, so that the same may not again be used, all government or state stamps or labels. Any licensed premises shall be maintained in sanitary condition according to the requirements of the Idaho Code and any city or county ordinance pertaining thereto, and any such person who fails to perform the duty provided in this section shall be guilty of a misdemeanor. SECTION 43. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-932, Idaho Code, and to read as follows: Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 23-932. HOURS OF SALE OF LIQUOR. (1) No liquor shall be sold, offered for sale, or given away upon any licensed premises or under a permit, and all liquor not in sealed bottles must be locked in a separate room or cabinet during the following hours: (a) Sunday, Memorial Day, Thanksgiving and Christmas from 1:00 a.m. to 10:00 a.m. the following day; provided however, that on any Sunday not otherwise being a prescribed holiday, it shall be lawful for a licensee having banquet area or meeting room facilities, separate and apart from the usual dispensing area (barroom) and separate and apart from a normal public dining room unless such dining room is closed to the public, to therein dispense liquor between the hours of 2:00 p.m. and 11:00 p.m. to bona fide participants of banquets, receptions or conventions for consumption only within the confines of such banquet area or meeting room facility; (b) On any other day between 1:00 a.m. and 10:00 a.m.; or (c) When any city or county has any ordinance further limiting the hours of sale of liquor by the drink, then such hours shall be fixed by such ordinance. (2) A county or city may, however, by ordinance, allow the sale of liquor by the drink on a Sunday, Memorial Day and Thanksgiving, and may also extend until 2:00 a.m. the hours of the sale of liquor by the drink. (3) Any patron present on the licensed premises after the sale of liquor has stopped as provided in subsections (1) and (2) of this section shall have a reasonable time, not to exceed thirty (30) minutes, to consume any beverages already served. (4) Any person who consumes or intentionally permits the consumption of any alcoholic beverage upon licensed premises after the time provided for in subsection (3) of this section shall be guilty of a misdemeanor. (5) It shall be the duty of every person who is employed at or on a licensed premises or who owns or manages a licensed premises and is present on the licensed premises, during the hours and at the time set forth in subsections (1) and (2) of this section, to lock up and keep locked up in a locked room or locked cabinet all unsealed containers of liquor during the hours and at the times set forth in subsections (1) and (2) of this section, and any such person who fails to perform the duty provided in this section shall be guilty of a misdemeanor. SECTION 44. That Chapter 9, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-933, Idaho Code, and to read as follows: 23-933. DUTY OF PUBLIC OFFICERS. It is hereby made the duty of the director, prosecuting attorneys, sheriffs and peace officers of the counties or incorporated cities, knowing of any violation of this act, to make complaint before the proper tribunal and perform the duties of their offices with respect to the prosecution and conviction of such offenders. Any such officer knowingly refusing to inform against or prosecute any offender under the provisions of this act shall be subject to action against him as provided in chapter 41, title 19, Idaho Code. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 SECTION 45. That Sections 23-1020 and 23-1022, Idaho Code, be, and the same are hereby repealed. SECTION 46. That Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW CHAPTER, to be known and designated as Chapter 12, Title 23, Idaho Code, and to read as follows: CHAPTER 12 CLERK AND SERVER TRAINING 23-1201. DEFINITIONS. The following words and phrases used in this chapter shall be given the following interpretation: (1) "Alcoholic beverage" or "alcohol beverage" means any beverage containing alcohol which is a product of distillation of any fermented liquor or synthetic ethyl alcohol, including, but not limited to, beer, wine, spirits or any liquid containing beer, wine or spirits. (2) "Approved alcohol training program" means a program that is designed to educate clerks or servers of alcohol on laws and rules regarding the sale and service of alcoholic beverages, the effects of alcohol on the human body, methods of identifying intoxicated persons and refusing to sell or serve alcohol to those persons, and methods for checking and identifying legal identification, and is either approved by the director or listed in section 23-1202, Idaho Code. (3) "Clerk" means an individual who, as an employee of a grocery store, convenience store, or general retail outlet, can legally sell alcoholic beverages for consumption off-premises. (4) "Director" means the director of the Idaho state police. (5) "Licensee" means the person to whom a beer, wine or municipal or state liquor by the drink license is issued under the provisions of law. (6) "Off-premises retailer" means any place alcoholic beverages are sold but cannot be consumed on the premises. Off-premises retailers include, but are not limited to, grocery stores, convenience stores and general retail outlets. (7) "Premises" means the building and contiguous property owned, leased or used by a licensee as part of the business establishment for the sale of alcoholic beverages at retail. (8) "Server" means any person serving or selling any alcoholic beverages, including spirits, wine or beer for consumption on a licensed premises as a requirement of employment, and any person managing those employees. Servers include, but are not limited to, waiters, waitresses, bartenders, and managers of waiters, waitresses and bartenders. 23-1202. APPROVED TRAINING. (1) Only the alcohol training programs listed in this section or equivalent programs as approved by the director will be recognized as complying with the provisions of this chapter. (2) Approved alcohol training programs must include an examination covering the following topics: monitoring a patron's behavior, recognizing intoxicated patrons, checking identification, recognizing false and altered identification, providing alternatives to alcoholic beverages, Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 problem-solving in dealing with intoxicated or belligerent patrons and familiarity with Idaho laws and rules pertaining to alcoholic beverages. (3) "ServSafe alcohol" programs of the national restaurant association are found to comply with the requirements of this chapter. (4) "Training for intervention procedures" (TIPS) programs of health communications, inc. are found to comply with the requirements of this chapter. 23-1203. MANDATORY TRAINING -- ON-PREMISES SALES. (1) Any person employed as a server on the effective date of this chapter must complete an approved alcohol training program within one hundred twenty (120) days of the effective date of this chapter or be able to provide proof that they have received a current valid certificate from an approved training program within the past three (3) years. (2) Any person who is hired after the effective date of this chapter as a server shall complete an approved alcohol training program within sixty (60) days. (3) The licensee shall ensure that each server employed on the premises is trained or completes an approved alcohol training program in the appropriate time frame pursuant to this section and maintains documentation of such training, and provides such documentation at the request of the director. 23-1204. VOLUNTARY TRAINING -- OFF-PREMISES RETAILER. (1) Any person employed as a clerk on or after the effective date of this act for off-premises sales pursuant to the provisions of this title is encouraged to complete an approved alcohol training program outlined in section 23-1202, Idaho Code. (2) The clerk shall maintain documentation of such training, and provide such documentation at the request of the director. 23-1205. ENFORCEMENT. (1) Any server who violates section 23-1203 Idaho Code, shall be subject to an administrative fine imposed by the director not to exceed five hundred dollars ($500) plus costs of prosecution and administrative costs of bringing the action including, but not limited to, attorney's costs and fees and costs of hearing transcripts. (2) Any licensee who violates section 23-1203(3), Idaho Code, shall be subject to an administrative fine imposed by the director not to exceed one thousand dollars ($1,000) plus costs of prosecution and administrative costs of bringing the action including, but not limited to, attorney's costs and fees and costs of hearing transcripts. (3) Nothing in this section shall be construed as barring criminal prosecutions for violations of this title where such violations are deemed criminal offenses. (4) All final decisions by the director shall be subject to judicial review pursuant to the procedures of the administrative procedure act. SECTION 47. That Chapter 13, Title 23, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 23-1304A, Idaho Code, and to read as follows: Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 23-1304A. CERTIFICATION OF ELECTION RESULTS OR COUNTY RESOLUTION TO DIRECTOR. (1) In the event that the board of county commissioners has, by resolution pursuant to section 23-1304, Idaho Code, provided that the retail sale of table wine or dessert wine shall be permitted within the county, certification of such resolution shall be made to the director, in addition to the certification to the director, and a retail wine license shall thereafter be issued for premises within such county as long as such resolution remains in effect. (2) In the event an election is held pursuant to section 23-1304, Idaho Code, upon a canvass of the votes cast, the county recorder shall certify, in addition to the certification to the director, the result thereof to the director. (3) The last resolution adopted prior to the effective date of this act pursuant to section 23-1304(a), Idaho Code, which has not been revoked, shall continue to have the effect resulting from said resolution, unless subsequently amended or revoked. The results of the last election held pursuant to section 23-1304(b), Idaho Code, or on the written petition of registered electors pursuant thereto, prior to the effective date of this act, shall have the effect resulting from the canvass of votes at said election, unless or until an election or subsequent resolution changes such result subsequent to the effective date of this act. SECTION 48. That Section 23-1331, Idaho Code, be, and the same is hereby amended to read as follows: 23-1331. SUSPENSION, REVOCATION, AND REFUSAL TO RENEW LICENSES AND PERMITS -- MONETARY PENALTY. (1) The director may suspend, revoke, or refuse to renew a retail wine license, wine by the drink license, wine distributor's license, wine importer's license, winery license, wine direct shipper's permit or vintner's license issued pursuant to the terms of this chapter for any violation of or failure to comply with the provisions of this chapter or rules and regulations promulgated by the director or the state tax commission pursuant to the terms and conditions of this chapter. Manufacturing or bottling functions of a winery shall not be subject to suspension, revocation or nonrenewal of a license, except for violations of law directly related to the manufacturing or bottling activities of the winery. Procedures for the suspension, revocation or refusal to grant or renew licenses issued under this chapter shall be in accordance with the provisions of chapter 52, title 67, Idaho Code. (2) When the director determines to suspend such license, the affected licensee may petition the director prior to the effective date of the suspension requesting that a monetary payment be allowed in lieu of the license suspension. If the director determines such payment to be consistent with the purpose of the laws of the state of Idaho and is in the public interest, he shall establish a monetary payment in an amount not to exceed five thousand dollars ($5,000). The licensee may reject the payment amount determined by the director, and instead be subject to the suspension provisions of subsection (1) of this section. Upon payment of the amount established, the director shall cancel the suspension period. The director shall cause any payment Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 to be paid to the treasurer of the state of Idaho for credit to the state's general account in the state operating fund. (3) The suspension of a license for the sale of liquor or beer shall automatically result in the suspension of any license for the sale of wine held by the same licensee and issued for the same premises or location. Such additional suspension shall be equal in length to and run concurrently with the period of the original suspension. (4) The director shall adopt and utilize guidelines and rules, which shall be available to licensees and members of the public, stating general policies of the division concerning minimum and maximum periods of suspensions or minimum and maximum amounts for monetary payments that the division will consider in lieu of the imposition of suspensions for particular violations of the provisions of this title. Guidelines and rules adopted by the division, as provided in this section, shall not prevent or be construed to prohibit the director from imposing a greater or lesser period of suspension, or imposing a greater or lesser monetary payment, within the limits established by this section, based upon aggravated or extenuating circumstances found to exist by the director. (5) When a proceeding to revoke or suspend a license has been or is about to be instituted, during the time a renewal application of such license is pending before the director, the director shall renew the license notwithstanding the pending proceedings, but such renewed license may be revoked or suspended without hearing if and when the previous license is, for any reason, revoked or suspended. SECTION 49. That Section 23-1335, Idaho Code, be, and the same is hereby repealed. SECTION 50. That Section 18-7803, Idaho Code, be, and the same is hereby amended to read as follows: 18-7803. DEFINITIONS. As used in this chapter, (a) "Racketeering" means any act which is chargeable or indictable under the following sections of the Idaho Code or which are equivalent acts chargeable or indictable as equivalent crimes under the laws of any other jurisdiction: (1) Homicide (section 18-4001, Idaho Code); (2) Robbery, burglary, theft, forgery, counterfeiting, and related crimes (sections 18-1401, 18-1405, 18-2403, 18-2407, 18-3123, 18-3124, 18-3125, 18-3601, 18-3602, 18-3603, 18-3605, 18-3606, 18-3607, 18-3609, 18-3610, 18-3614, 18-3615, 18-4630, 18-6501 and 49-518, Idaho Code); (3) Kidnapping (section 18-4501, Idaho Code); (4) Prostitution (sections 18-5601, 18-5602, 18-5603, 18-5604, 18-5605, 18-5606, 18-5608 and 18-5609, Idaho Code); (5) Arson (sections 18-801, 18-802, 18-803, 18-804 and 18-805, Idaho Code); (6) Assault (sections 18-908 and 18-4015, Idaho Code); (7) Lotteries and gambling (sections 18-3801, 18-3802, 18-3809, 18-4902, 18-4903, 18-4904, 18-4905, 18-4906 and 18-4908, Idaho Code); Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 (8) Indecency and obscenity (sections 18-1515, 18-1518, 18-4103, 18-4103A, 18-4104, 18-4105, 18-4105A and 18-4107, Idaho Code); (9) Poisoning (sections 18-4014 and 18-5501, Idaho Code); (10) Fraudulent practices, false pretenses, insurance fraud, financial transaction card crimes and fraud generally (sections 18-2403, 18-2706, 18-3002, 18-3101, 18-3124, 18-3125, 18-3126, 18-6713, 41-293, 41-294 and 41-1306, Idaho Code); (11) Alcoholic beverages (sections 23-602, 23-606, 23-610, 23-703, 23-90510, 23-922, 23-91423, and 23-9287, 23-934 and 23-938, Idaho Code); (12) Cigarette taxes (sections 63-2505 and 63-2512(b), Idaho Code); (13) Securities (sections 30-14-401, 30-14-402, 30-14-403, 30-14-404, 30-14-501, 30-14-502, 30-14-505 and 30-14-506, Idaho Code); (14) Horseracing (section 54-2512, Idaho Code); (15) Interest and usurious practices (sections 28-45-401 and 28-45402, Idaho Code); (16) Corporations (sections 18-1901, 18-1902, 18-1903, 18-1904, 18-1905, 18-1906 and 30-1510, Idaho Code); (17) Perjury (sections 18-5401 and 18-5410, Idaho Code); (18) Bribery and corrupt influence (sections 18-1352 and 18-1353, Idaho Code); (19) Controlled substances (sections 37-2732(a), (b), (c), (e) and (f), 37-2732B, 37-2734 and 37-2734B, Idaho Code); (20) Motor vehicles (sections 49-228, 49-231, 49-232 and 49-518, Idaho Code); (21) Terrorism (section 18-8103, Idaho Code). (b) "Person" means any individual or entity capable of holding a legal or beneficial interest in property; (c) "Enterprise" means any sole proprietorship, partnership, corporation, business, labor union, association or other legal entity or any group of individuals associated in fact although not a legal entity, and includes illicit as well as licit entities; and (d) "Pattern of racketeering activity" means engaging in at least two (2) incidents of racketeering conduct that have the same or similar intents, results, accomplices, victims or methods of commission, or otherwise are interrelated by distinguishing characteristics and are not isolated incidents, provided at least one (1) of such incidents occurred after the effective date of this act and that the last of such incidents occurred within five (5) years after a prior incident of racketeering conduct. SECTION 51. That Section 23-1312, Idaho Code, be, and the same is hereby amended to read as follows: 23-1312. BY THE DRINK LIQUOR RETAILERS MAY PURCHASE FROM DISTRIBUTORS. Any law to the contrary notwithstanding, including but not limited to section 23-91423, Idaho Code, the holder of a license for the retail sale of liquor by the drink as defined in chapter 9, title 23, Idaho Code, is hereby authorized to purchase wine from persons holding valid wine distributor's licenses. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 SECTION 52. That Section 23-1406, Idaho Code, be, and the same is hereby amended to read as follows: 23-1406. STORAGE AND RESTOCKING. (1) All alcoholic beverages, which are used to restock and replenish a facility's hospitality cabinets, shall be kept locked in a separate, secure room or cabinet, except when the hospitality cabinets are being restocked and replenished. (2) The hospitality cabinets can be restocked and replenished with alcoholic beverages only during those hours when liquor can be sold as provided in section 23-92732, Idaho Code. SECTION 53. That Section 39-5502, Idaho Code, be, and the same is hereby amended to read as follows: 39-5502. DEFINITIONS. As used in this chapter: (1) "Auditorium" means a public building where an audience sits and any corridors, hallways or lobbies adjacent thereto. (2) "Bar" means any indoor area open to the public operated primarily for the sale and service of alcoholic beverages for on-premises consumption and where: (a) the service of food is incidental to the consumption of such beverages, or (b) no person under the age of twenty-one (21) years is permitted except as provided in section 23-943604, Idaho Code, as it pertains to employees, musicians and singers, and all public entrances are clearly posted with signs warning patrons that it is a smoking facility and that persons under twenty-one (21) years of age are not permitted. "Bar" does not include any area within a restaurant. (3) "Employer" means any person, partnership, limited liability company, association, corporation or nonprofit entity that employs one (1) or more persons, including the legislative, executive and judicial branches of state government; any county, city, or any other political subdivision of the state; or any other separate unit of state or local government. (4) "Indoor shopping mall" means an indoor facility located at least fifty (50) feet from any public street or highway and housing no less than ten (10) retail establishments. (5) "Public meeting" means all meetings open to the public. (6) "Public place" means any enclosed indoor place of business, commerce, banking, financial service or other service-related activity, whether publicly or privately owned and whether operated for profit or not, to which persons not employed at the public place have general and regular access or which the public uses including: (a) Buildings, offices, shops or restrooms; (b) Waiting rooms for means of transportation or common carriers; (c) Restaurants; (d) Theaters, auditoriums, museums or art galleries; (e) Hospitals, libraries, indoor shopping malls, indoor sports arenas, concert halls, or airport passenger terminals, and within twenty (20) feet of public entrances and exits to such facilities; (f) Public or private elementary or secondary school buildings and educational facilities and within twenty (20) feet of entrances and exits of such buildings or facilities; Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 (g) Retail stores, grocery stores or arcades; (h) Barbershops, hair salons or laundromats; (i) Sports or fitness facilities; (j) Common areas of nursing homes, resorts, hotels, motels, bed and breakfast lodging facilities and other similar lodging facilities, including lobbies, hallways, restaurants and other designated dining areas and restrooms of any of these; (k) Any child care facility subject to licensure under the laws of Idaho, including those operated in private homes, when any child cared for under that license is present; (l) Public means of mass transportation including vans, trains, taxicabs and limousines when passengers are present; and (m) Any public place not exempted by section 39-5503, Idaho Code. (7) "Publicly-owned building or office" means any enclosed indoor place or portion of a place owned, leased or rented by any state, county or municipal government, or by any agency supported by appropriation of, or by contracts or grants from, funds derived from the collection of federal, state, municipal or county taxes. (8) "Restaurant" means an eating establishment including, but not limited to, coffee shops, cafes, cafeterias, and private and public school cafeterias, which gives or offers for sale food to the public, guests, or employees, as well as kitchens and catering facilities in which food is prepared on the premises for serving elsewhere. The term "restaurant" shall include a bar area within a restaurant. (9) "Smoking" includes the possession of any lighted tobacco product in any form. (10) "Smoking area" means a designated area in which smoking is permitted. SECTION 54. That Section 49-307, Idaho Code, be, and the same is hereby amended to read as follows: 49-307. CLASS D DRIVER'S TRAINING INSTRUCTION PERMIT -- CLASS D SUPERVISED INSTRUCTION PERMIT -- APPLICATION FOR A CLASS D DRIVER'S LICENSE -- RESTRICTIONS ON CLASS D DRIVER'S LICENSE. (1) No enrollee of any class D driver's training course shall be allowed to attend classes or participate in driving instruction unless he has obtained a class D driver's training instruction permit, or a class D instruction permit as provided in subsection (4) of this section. (2) Every enrollee of a class D driver's training course shall pay a nonrefundable fee of fifteen dollars ($15.00). Five dollars ($5.00) of each fee so imposed shall be deposited in the state highway account, five dollars ($5.00) shall be deposited in the county current expense fund, and five dollars ($5.00) shall be: (a) Deposited in the driver training account if the person is taking driver's training from a public school; or (b) Paid to the bureau of occupational licenses and deposited in the state treasury to the credit of the occupational licenses fund account if the person is taking driver's training from a private driver's training program. The amount to be remitted to the bureau of occupational Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 licenses shall be annually calculated and paid. To calculate such amount, the total number of public driver's training students as submitted to the state department of education shall be subtracted from the total number of permits sold as reported by the Idaho transportation department, and the resulting number shall be multiplied by five dollars ($5.00). (3) Each enrollee of a class D driver's training course shall provide the type of information required for a driver's license or instruction permit. If an enrollee of a class D driver's training course cannot provide a certified copy of his birth certificate at the time of application for a permit, the department may issue a class D driver's training instruction permit or a class D instruction permit upon receipt of identification acceptable to the department. The certified copy of an applicant's birth certificate shall be required before a class D driver's license will be issued. (4) The class D driver's training instruction permit shall expire five (5) days after the permittee's eighteenth birthday for permittees fourteen and one-half (14 1/2) years of age through seventeen and one-half (17 1/2) years of age. The class D driver's training instruction permit shall expire one hundred eighty (180) days from the date of issue for persons seventeen and one-half (17 1/2) years of age or older. Persons aged seventeen (17) years or older may attend classes or participate in driver's training instruction while operating with a class D instruction permit or a class D driver's training instruction permit. (5) The class D driver's training instruction permit shall be issued to the instructor of the course. (6) Class D supervised instruction permit. (a) Upon successful completion of the class D driver's training course, the driver's training instructor shall submit the student log to the county driver's license office and give the class D driver's training instruction permit to the parent or legal guardian of the permittee, and the parent or legal guardian shall assume responsibility for ensuring that the permittee complies with the requirements of operating a vehicle with a class D supervised instruction permit. The class D driver's training instruction permit shall then serve as a class D supervised instruction permit. (b) In the event the permittee reaches the age of seventeen (17) years while operating a class D vehicle with a class D supervised instruction permit, the supervised instruction permit shall become a class D instruction permit. (7) No permittee may apply for a class D driver's license sooner than fifteen (15) years of age and no sooner than six (6) months after completing a class D driver's training course, during which time the permittee shall satisfy all requirements for operation of a class D vehicle with a class D supervised instruction permit as follows: (a) The permittee shall not operate a vehicle unless he is accompanied by a driver who holds a valid driver's license, is twenty-one (21) years of age or older, and who is actually occupying a seat beside the permittee driver. The supervising driver and the permittee shall be the only occupants of the front passenger section of the vehicle. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 (b) Over a period of time not less than six (6) months, the permittee shall accumulate at least fifty (50) hours of supervised driving time, ten (10) hours of which shall be during hours of darkness. (c) The permit shall be in the permittee's immediate possession at all times while operating a vehicle. (d) In addition to the permittee driver and the supervising driver, all other occupants of the vehicle shall wear a seat belt or be restrained by child passenger restraints as required by law. (e) The permittee is subject to the provisions of sections 18-1502 and 18-8004, Idaho Code, relating to violation of age restrictions on consumption of beer, wine, and alcohol and driving under the influence of alcohol, drugs or any other intoxicating substances, respectively. (f) The permittee shall not have been convicted of any moving traffic violation, or have had driving privileges suspended by the department or the court for any offense, or found to be in violation of any of the restrictions on the class D supervised instruction permit, for a period of at least six (6) months from the date the driver's training instructor gave the permit to the parent or legal guardian, or from the date a canceled class D supervised instruction permit was reissued, or until the permittee reaches seventeen (17) years of age. (g) If the permittee is under seventeen (17) years of age and is convicted of a violation of any traffic law, or section 18-1502, 18-8004 or 23-949604, Idaho Code, or is found to be in violation of any of the restrictions on the class D supervised instruction permit, the department shall cancel the class D supervised instruction permit, and the cancellation shall not be used to establish rates of motor vehicle insurance charged by a casualty insurer. If the permittee is under seventeen (17) years of age, the permittee may reapply for and be issued a new class D supervised instruction permit upon payment of the appropriate fee, and shall again be required to operate with the class D supervised instruction permit for at least six (6) months from the date of reissue without a conviction or suspension, accumulate the required hours of driving time and adhere to the requirements as specified in paragraphs (a) through (f) of this subsection. (8) Upon completion of the requirements in subsection (7) of this section, the permittee shall take the knowledge test and skills test administered by a person certified by the Idaho transportation department to administer knowledge and skills tests. (9) Upon passage of the knowledge and skills tests, the permittee may apply for a class D driver's license with driving privileges restricted to daylight hours for persons under sixteen (16) years of age, and with full privileges at sixteen (16) years of age or older. Provided however, the restriction on daylight hours only driving privileges for persons under sixteen (16) years of age shall not apply if: (a) The person under sixteen (16) years of age has a valid class D driver's license; and (b) The person iIs accompanied by a driver who holds a valid driver's license and is twenty-one (21) years of age or older and is actually occupying a seat beside the licensee who is under sixteen (16) years of age; and Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (c) The two (2) licensed drivers are the only occupants of the front passenger section of the vehicle. The restriction of daylight hours only shall mean that period of time onehalf (1/2) hour before sunrise to one-half (1/2) hour after sunset. (10) Upon passage of the knowledge and skills tests, the permittee may apply for a class D driver's license. Any such licensee who is under the age of seventeen (17) years shall be required, during the first six (6) months from the date of issue of the class D driver's license, to limit the number of passengers in the vehicle who are under the age of seventeen (17) years to not more than one (1) such passenger. Provided however, the limit of one (1) passenger under the age of seventeen (17) years shall not apply to passengers who are related to the driver by blood, adoption or marriage. SECTION 55. That Section 67-7446, Idaho Code, be, and the same is hereby amended to read as follows: 67-7446. RESTRICTIONS. Notwithstanding the provisions of section 23-92827, Idaho Code, nothing in that section shall be construed to authorize any form of games of chance or private lotteries, except as may be authorized expressly by this chapter in accordance with the Idaho Constitution. SECTION 56. SEVERABILITY. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act. SECTION 57. This act shall be in full force and effect on and after January 1, 2020. Wednesday January 23, 2019 8:37 AM DRAFT DRRCB106 39 1 2 3 4 ALCOHOL - Amends, repeals and adds to existing law to revise provisions regarding the retail sale of liquor by the drink; to revise provisions governing the sale of beer; to revise provisions governing the County Option Kitchen and Table Wine Act; and to provide for clerk and server training. Wednesday January 23, 2019 8:37 AM