REVISED
STATEMENT OF PURPOSE
RS31626C1 / S1421
This legislation modifies the liquor licensing statute to clarify unintended consequences of Senate Bill 1120 in
the 2023 session. This legislation “grandfathers” the prior practice for dual lessees (of both the premises and the
liquor licenses) as it pertains to “legacy” licenses (issued prior to July 1, 2023), which have not expired, while
also clarifying how this historic and existing practice may continue as specifically provided in this legislation.
This legislation provides that a liquor license issued prior to July 1, 2023, and under a lease to a restaurant/bar
operator as of July 1, 2023, may continue to be used in the same way through expiration of the term of the
lease, whereupon the lease reverts back to the possession of the owner of the license. Upon such reversion the
owner may: transfer the license in a one-time-only transfer; retain the lease and apply to the Alcoholic Beverage
Control (ABC) to become the named operator of the license on the leased premises; transfer the license under
the regular rules of revised Idaho Code § 23-903(16); or proceed under new Idaho Code § 23-903(18), which
allows, among other things, subsequent leasing to other tenants and transfers to third party purchasers of the
licensed premises.
This legislation also provides for the loss of the right to a one-time-only transfer of a license once it is put to use
pursuant to Idaho Code § 23-903(18). This legislation also adds new Idaho Code § 23-903(19) which provides
that if there is a waiting list for applicants for a new liquor license, the applicant for whom a license becomes
available may elect to have the license issued in the name of the original applicant or in the name of a qualified
designee; designee qualifications are listed.
FISCAL NOTE
This legislation would have no negative impact on the General Fund. However, because ABC funding relies on
a 10% transfer fee, this legislation, by allowing certain transfers, may have a positive impact on ABC funding.
Contact:
Senator Jim Guthrie
(208) 332-1000
Representative Dustin Manwaring
(208) 332-1079
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 03/15/2024, 1:11 PM


Statutes affected:
Bill Text: 23-903