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 in section 23-903(1). To qualify, a restaurant must demonstrate that at least 60% of its gross sales over the past year come from food services rather than liquor sales. The bill also permits food halls to obtain a city restaurant liquor license, provided they meet the same revenue criteria.

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 a minimum of three city restaurant liquor licenses can be issued per city, with the total not exceeding 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 those established in section 23-904(1), (2), and (3) of the Idaho Code. An emergency clause is included, making the act effective on July 1, 2025.