Amends existing law to revise provisions regarding the distribution of moneys in the Liquor Account.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 967 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT; AMENDING SECTION2 23-404, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE DISTRIBUTION OF3 MONEYS IN THE LIQUOR ACCOUNT; AMENDING SECTION 33-2139, IDAHO CODE, TO4 PROVIDE A CORRECT CODE REFERENCE; AND DECLARING AN EMERGENCY AND PRO-5 VIDING AN EFFECTIVE DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Section 23-404, Idaho Code, be, and the same is hereby8 amended to read as follows:9 23-404. DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT. (1) The moneys re-10 ceived into the liquor account shall be transferred or appropriated as fol-11 lows:12 (a) An amount of money equal to the actual cost of purchase of alcoholic13 liquor and payment of expenses of administration and operation of the14 division, as determined by the director and certified quarterly to the15 state controller, shall be transferred back to the division; provided,16 that the amount so transferred back for administration and operation of17 the division shall not exceed the amount authorized to be expended by18 regular appropriation authorization.19 (b) From fiscal year 2006 through fiscal year 2009, forty percent (40%)20 of the Fifty percent (50%) of the balance remaining after transferring21 the amounts authorized by paragraph (a) of this subsection shall be22 transferred or appropriated pursuant to this paragraph. Beginning in23 fiscal year 2010, the percentage transferred pursuant to this paragraph24 shall increase to forty-two percent (42%) with an increase of two per-25 cent (2%) for each subsequent fiscal year thereafter until fiscal year26 2014, when such percentage shall be fifty percent (50%). as follows:27 (i) For fiscal year 2006 and through fiscal year 2009, one mil-28 lion eight hundred thousand dollars ($1,800,000) shall be appro-29 priated and paid to the cities and counties as set forth in para-30 graph (c)(i) and (ii) of this subsection;31 (ii) (i) Two million eighty thousand dollars ($2,080,000) shall32 be transferred annually to the substance abuse treatment fund cre-33 ated in section 23-408, Idaho Code;34 (iii) (ii) Eight hundred thousand dollars ($800,000) shall be35 transferred annually to the state community college account cre-36 ated in section 33-2139, Idaho Code;37 (iv) (iii) One million two hundred thousand dollars ($1,200,000)38 shall be transferred annually to the public school income fund as39 defined in section 33-903, Idaho Code;40

2 (v) (iv) Six hundred fifty thousand dollars ($650,000) shall be1 transferred annually to the cooperative welfare fund in the dedi-2 cated fund;3 (vi) (v) Six hundred eighty thousand dollars ($680,000) shall be4 transferred annually to the drug court, mental health court and5 family court services fund;6 (vii) (vi) Four hundred forty thousand dollars ($440,000) shall7 be transferred annually to the drug and mental health court super-8 vision fund created in section 23-409, Idaho Code; and9 (vii) Two million dollars ($2,000,000) shall be transferred an-10 nually to the Idaho law enforcement fund established in section11 67-2914, Idaho Code, and shall be used exclusively for the pur-12 poses described in section 49-454(3), Idaho Code; and13 (viii) The balance shall be transferred to the general fund, after14 one and one-half percent (1.5%) of such balance is transferred to15 the peace officers standards and training fund created in section16 19-5116, Idaho Code.17 (c) The remainder of the moneys received in the liquor account Fifty18 percent (50%) of the balance remaining after transferring the amounts19 authorized by paragraph (a) of this subsection shall be transferred or20 appropriated and paid as follows:21 (i) For fiscal year 2018, forty percent (40%) of the balance22 remaining after the transfers authorized by paragraphs (a) and23 (b) of this subsection have been made is hereby appropriated to24 and shall be paid to the several counties. For fiscal year 2019,25 the amount apportioned to counties shall decrease to thirty-nine26 and two-tenths percent (39.2%) with a decrease of eight-tenths27 percent (.8%) for each subsequent fiscal year thereafter until28 fiscal year 2023 when such percentage shall be thirty-six percent29 (36%). Eighty-five percent (85%) of such balance remaining shall30 be transferred or appropriated as follows:31 1. Two million dollars ($2,000,000) shall be transferred32 annually to the Idaho law enforcement fund established in33 section 67-2914, Idaho Code, and shall be used exclusively34 for the purposes described in section 49-454(3), Idaho Code.35 2. Forty-two and three-tenths percent (42.3%) of the36 balance remaining after the transfer authorized by sub-37 paragraph (i)1. of this paragraph has been made is hereby38 appropriated to and shall be paid to the several counties.39 Each county shall be entitled to an amount in the proportion40 that liquor sales through the division in that county during41 the state's previous fiscal year bear to total liquor sales42 through the division in the state during the state's previ-43 ous fiscal year, except that no county shall be entitled to44 an amount less than that county received in distributions45 from the liquor account during the state's fiscal year 1981.46 (ii) 3. For fiscal year 2018, sixty percent (60%) Fifty-47 seven and seven-tenths percent (57.7%) of the balance48 remaining after the transfers transfer authorized by49 paragraphs (a) and (b) of this subsection have subparagraph50

3 (i)1. of this paragraph has been made is hereby appropriated1 to and shall be paid to the several cities. For fiscal year2 2019, the amount apportioned to the several cities shall de-3 crease to fifty-seven and eight-tenths percent (57.8%) with4 a decrease of two and two-tenths percent (2.2%) for each sub-5 sequent fiscal year thereafter until fiscal year 2023 when6 such percentage shall be forty-nine percent (49%). Amounts7 paid to the several cities shall be distributed as follows:8 1. (A) Ninety percent (90%) of the amount appropri-9 ated to the cities shall be distributed to those cities10 that have a liquor store or distribution station lo-11 cated within the corporate limits of the city. Each12 such city shall be entitled to an amount in the pro-13 portion that liquor sales through the division in that14 city during the state's previous fiscal year bear to15 total liquor sales through the division in the state16 during the state's previous fiscal year, except that no17 city shall be entitled to an amount less than that city18 received in distributions from the liquor account dur-19 ing the state's fiscal year 1981;20 2. (B) Ten percent (10%) of the amount appropriated to21 the cities shall be distributed to those cities that do22 not have a liquor store or distribution station located23 within the corporate limits of the city. Each such city24 shall be entitled to an amount in the proportion that25 its population bears to the population of all cities in26 the state that do not have a liquor store or distribu-27 tion station located within the corporate limits of the28 city, except that no city shall be entitled to an amount29 less than that city received in distributions from the30 liquor account during the state's fiscal year 1981.31 (iii) (ii) For fiscal year 2019, an additional amount of three32 percent (3%) of the balance remaining after the transfers autho-33 rized by paragraphs (a) and (b) of this subsection have been made34 Fifteen percent (15%) of such balance remaining is hereby appro-35 priated to the several counties for deposit in the district court36 fund. Such funds shall be dedicated to provide for the suitable37 and adequate quarters of the magistrate division of the district38 court, including the facilities and equipment necessary to make39 the space provided functional for its intended use, and shall pro-40 vide for the staff personnel, supplies and other expenses of the41 magistrate division. For fiscal year 2020, the amount apportioned42 to the several counties for deposit in the district court fund43 shall be six percent (6%) with an increase of three percent (3%)44 for each subsequent year until fiscal year 2023 when such percent-45 age shall be fifteen percent (15%). Amounts paid to the several46 counties pursuant to this subparagraph shall be distributed as47 follows:48

4 1. The first four hundred forty thousand dollars ($440,000)1 shall be distributed to each of the forty-four (44) counties2 in equal amounts;3 2. Fifty percent (50%) of the remaining funds shall be dis-4 tributed to the forty-four (44) counties in proportion to5 the population of the county in relation to the population of6 the state; and7 3. Fifty percent (50%) of the remaining funds shall be dis-8 tributed to the forty-four (44) counties in proportion to9 the number of misdemeanor and infraction filings initiated10 by city law enforcement officers in the county during the11 state's previous fiscal year in relation to the proportion12 of the number of misdemeanor and infraction filings initi-13 ated by all city law enforcement officers in the state.14 (2) All transfers and distributions shall be made periodically, but not15 less frequently than quarterly, but the apportionments made to any county or16 city that may during the succeeding three (3) year period be found to have17 been in error either of computation or transmittal shall be corrected during18 the fiscal year of discovery by a reduction of apportionments in the case of19 over-apportionment or by an increase of apportionments in the case of under-20 apportionment. The decision of the director on entitlements of counties and21 cities shall be final and shall not be subject to judicial review.22 (3) For purposes of this section, "city law enforcement officer" means23 an individual, either employed directly by a city or by way of a contract for24 law enforcement services with another city or county, authorized to investi-25 gate, enforce, prosecute or punish violations of city or state statutes, or-26 dinances or regulations.27

SECTION 2. That Section 33-2139, Idaho Code, be, and the same is hereby28 amended to read as follows:29 33-2139. STATE COMMUNITY COLLEGE ACCOUNT CREATED. There is hereby30 created a state community college account in the state operating fund in the31 state treasurer's office to which shall be credited all moneys that may be32 transferred pursuant to section 23-404(1)(b)(iii)(ii), Idaho Code. The33 state treasurer shall make such disbursements from the account as may be34 ordered by the state board of education in accordance with the provisions of35 this act.36

SECTION 3. An emergency existing therefor, which emergency is hereby37 declared to exist, this act shall be in full force and effect on and after38 July 1, 2026.39