This bill amends Chapter 9, Title 23 of the Idaho Code by adding a new section, 23-903d, which establishes provisions for issuing city restaurant liquor licenses. The bill allows for the issuance of these licenses to qualifying restaurants within city limits, regardless of the population limitations previously set forth. To qualify, a restaurant must demonstrate that at least 60% of its gross sales come from food services rather than liquor. The bill also permits food halls, which house multiple restaurants, to apply for a city restaurant liquor license under the same revenue conditions.

Additionally, the bill outlines operational requirements for restaurants holding these licenses, including restrictions on liquor sales and the prohibition of promoting the establishment as a bar or lounge. It specifies that the number of licenses issued in a city must be at least three but cannot exceed the number of licenses allowed under existing population-based regulations. The licenses are non-transferable and cannot be sold or leased. The bill also sets the licensing fees to align with existing regulations. An emergency clause is included, making the act effective on July 1, 2025.