This bill amends Chapter 9, Title 23 of the Idaho Code by adding a new section, 23-903d, which establishes provisions for issuing liquor licenses specifically to city restaurants. The bill allows city restaurants to obtain a liquor license regardless of the population limitations typically imposed, provided they meet certain criteria. To qualify, a restaurant must demonstrate that at least 60% of its gross sales come from food services rather than liquor. Additionally, the bill permits food halls to apply for a city restaurant liquor license, as long as the combined food sales from all restaurants within the hall meet the same 60% threshold.

The bill outlines specific operational requirements for restaurants holding a city restaurant liquor license, including restrictions on liquor sales and the prohibition of promoting the establishment as a bar or lounge. It also sets a minimum and maximum number of licenses that can be issued per city, with priority given based on the application date. Importantly, these licenses cannot be sold, leased, or transferred to other locations. The fees for these licenses will align with existing fees outlined in the Idaho Code. The act is set to take effect on July 1, 2025, due to an emergency declaration.