Amends existing law to authorize liquor licensure for a distillery in certain instances.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1258 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO LIQUOR; AMENDING SECTION 23-903, IDAHO CODE, TO AUTHORIZE LI-2 CENSURE FOR A DISTILLERY; AMENDING SECTION 23-910, IDAHO CODE, TO PRO-3 VIDE AN EXEMPTION FOR OFFICERS, AGENTS, AND EMPLOYEES OF A DISTILLERY;4 AMENDING SECTION 23-912, IDAHO CODE, TO PROVIDE AN EXEMPTION FOR A DIS-5 TILLERY; AMENDING SECTION 23-944, IDAHO CODE, TO PROVIDE AN EXEMPTION6 FOR A DISTILLERY; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE7 DATE.8

Be It Enacted by the Legislature of the State of Idaho:9

SECTION 1. That Section 23-903, Idaho Code, be, and the same is hereby10 amended to read as follows:11 23-903. LICENSE TO RETAIL LIQUOR. (1) The director of the Idaho state12 police is hereby empowered, authorized, and directed to issue licenses to13 qualified applicants, as provided in this chapter, whereby the licensee14 shall be authorized and permitted to sell liquor by the drink at retail,15 and, upon the issuance of such license, the licensee shall be authorized to16 sell liquor at retail by the drink, but only in accordance with the rules17 promulgated by the director and the provisions of this chapter. No license18 shall be issued for the sale of liquor on any premises outside the incorpo-19 rated limits of any city except as provided in this chapter, and the number20 of licenses so issued for any city shall not exceed one (1) license for each21 one thousand five hundred (1,500) of population of said city or fraction22 thereof, as established in the last preceding census, or any subsequent spe-23 cial census conducted by the United States census bureau or by an estimate24 that is statistically valid including adding the number of new residential25 utility connections or including adding the population of areas annexed into26 the city after the last census or special census was conducted, except that27 upon proper application thereof not more than two (2) licenses may be issued28 for each incorporated city with a population of one thousand five hundred29 (1,500) or less, unless the retail licensing of liquor by the drink has been30 previously disapproved under the provisions of sections 23-917, 23-918,31 23-919, 23-920 and 23-921, Idaho Code; provided however, that any license32 heretofore issued may be renewed from year to year without regard to the pop-33 ulation or status of the city for which such license is issued. Any license34 issued that has remained in effect at its location for a consecutive period35 of ten (10) years or more shall be deemed to have been validly issued and may36 be renewed from year to year, provided that the applicant for the renewal of37 such license is not otherwise disqualified for licensure pursuant to section38 23-910, Idaho Code, and, if the premises required special characteristics39 for original licensure, other than being either within or without the incor-40 porated limits of a city, that said premises continue to have such special41 characteristics at the time of the application for renewal.42

2 (2) Nothing in this chapter shall prohibit the issuance of a license to1 the owner, operator, or lessee of an actual bona fide golf course whether lo-2 cated within or without the limits of any city, or located on premises also3 operated as a winery or ski resort, or to the lessee of any premises situ-4 ate thereon, whether located within or without the limits of any city. For5 the purpose of this section, a golf course shall comprise an actual bona fide6 golf course, which is regularly used for the playing of the game of golf, hav-7 ing not less than nine (9) tees, fairways, and greens laid out and used in the8 usual and regular manner of a golf course. Nine (9) hole courses must have a9 total yardage of at least one thousand (1,000) yards, and eighteen (18) hole10 courses must have a total yardage of at least two thousand (2,000) yards as11 measured by totaling the tee-to-green distance of all holes. The course must12 be planted in grass except that it may provide artificial tee mats. Where any13 such golf course is owned or leased by an association of members and is used14 or enjoyed by such members or their guests, none of the disqualifications15 contained in section 23-910, Idaho Code, shall apply to such association as16 a licensee where such disqualifications, or any of them, would apply only to17 a member of such association where such member has no interest therein except18 as a member thereof. Provided, a building that is located on a lake of not19 less than one hundred sixty (160) acres with not less than two hundred (200)20 feet of lake frontage, owned or leased and operated exclusively by an actual21 bona fide golf course licensed for the sale of liquor by the drink, as oth-22 erwise defined in this subsection, located not more than five tenths (.5) of23 a mile from the golf course exterior boundaries, and accessible by that golf24 course by private or public roadway or right-of-way shall be deemed part of25 and contiguous to the licensed golf course premises for purposes of the sale26 of liquor by the drink upon such premises.27 (3) For purposes of this section, a ski resort shall comprise real prop-28 erty of not less than ten (10) acres in size, exclusive of the terrain used29 for skiing and upon which the owner, operator, or lessee of the ski resort has30 made available himself or through others, including but not limited to the31 owners of condominiums, permanent bona fide overnight accommodations avail-32 able to the general public for one hundred (100) persons or more, and which33 real property is contiguous to or located within the area in which skiing oc-34 curs and is regularly operated as a ski resort in the wintertime where the35 owner, operator, or lessee of the ski resort is also the owner, operator, or36 lessee of the area served by a bona fide chair ski lift facility or facili-37 ties. Alternatively, for the purpose of this section, a ski resort may also38 be defined as a downhill ski area, open to the public, comprising real prop-39 erty of not less than two hundred fifty (250) skiable acres, operating two40 (2) or more chairlifts with a vertical lift of one thousand (1,000) feet or41 more, and capable of transporting a minimum of one thousand eight hundred42 (1,800) skiers per hour. A ski resort qualifying under this definition shall43 also have on the premises a lodge facility providing shelter and food ser-44 vice to the public, the operator of which shall also be the valid owner or45 lessee of the grounds and facilities upon which the ski resort offers down-46 hill skiing services to the public. The fees for licenses granted to ski re-47 sorts shall be the same as those prescribed for golf courses as set forth in48 section 23-904, Idaho Code. Not more than one (1) licensed premises shall be49

3 permitted on any golf course or any ski resort or within the area comprising1 the same.2 (4) Nothing in this chapter shall prohibit the issuance of a license to3 the owner, operator, or lessee of an actual bona fide equestrian facility lo-4 cated on not less than forty (40) contiguous acres, with permanently erected5 seating of not less than six thousand (6,000) seats, no part of which eques-6 trian facility or the premises thereon is situate within the incorporated7 limits of any city, and which facility shall have at least three (3) days per8 year of a professionally sanctioned rodeo. Not more than one (1) licensed9 premises shall be permitted at any equestrian facility or within an area com-10 prising such a facility. The fees for licenses granted to equestrian facil-11 ities shall be the same as those prescribed for golf courses as set forth in12 section 23-904, Idaho Code.13 (5) Nothing in this chapter shall prohibit the issuance of a license to14 the owner, operator, or lessee of a restaurant operated on an airport owned15 or operated by a county or municipal corporation or on an airport owned or16 operated jointly by a county and municipal corporation, and which said air-17 port is served by a trunk or local service air carrier holding a certificate18 of public convenience and necessity issued by the civil aeronautics board of19 the United States of America. Not more than one (1) license shall be issued20 on any airport.21 (6) Nothing in this chapter shall prohibit the issuance of one (1) club22 license to a club as defined in section 23-902, Idaho Code. The holder of23 a club license is authorized to sell and serve alcoholic beverages for con-24 sumption only within the licensed establishment owned, leased, or occupied25 by the club and only to bona fide members of the club and to bona fide mem-26 bers' guests. A club license issued pursuant to the provisions of this sec-27 tion is not transferable and may not be sold. Any club license issued pur-28 suant to the provisions of this section will revert to the director when, in29 his judgment, the licensee ceases to operate as a bona fide club as defined30 in section 23-902, Idaho Code. No club may hold a liquor license and a club31 license simultaneously. A club that on July 1, 1983, holds a liquor license32 may continue to possess that license. Any club that possesses a liquor li-33 cense on January 1, 1983, or thereafter, and then sells that liquor license,34 may not obtain a club license, and the director shall not issue a club li-35 cense to that club for a period of five (5) years following such sale. The36 fee for any license issued to a qualifying club within an incorporated mu-37 nicipality shall be as prescribed in subsections (1), (2) and (3) of sec-38 tion 23-904, Idaho Code. The fee for any license issued to a qualifying club39 not situate within an incorporated municipality shall be as specified for40 golf courses under section 23-904(6), Idaho Code. The provisions of section41 23-916, Idaho Code, regarding county and city licenses shall pertain to club42 licenses. The burden of producing sufficient documentation of qualifica-43 tions for club licensure shall be with the club applicant.44 (7) Nothing in this chapter to the contrary shall prohibit the issuance45 of a license to the owner, operator, or lessee of an actual bona fide conven-46 tion center that is within the incorporated limits of a city having a pop-47 ulation of three thousand (3,000) or greater, and which city does not have48 located therein a convention center with a valid convention center license49 to sell liquor by the drink. For the purpose of this section, a convention50

4 center means a facility having at least thirty-five thousand (35,000) square1 feet of floor space or a facility having at least one hundred twenty (120)2 sleeping rooms and an adjoining meeting room that will accommodate not less3 than three hundred fifty (350) persons, whether or not such room may be par-4 titioned into smaller rooms, and provided that such meeting room shall con-5 tain at least three thousand (3,000) square feet of floor space. Such li-6 cense must be placed in actual use in said convention center within one (1)7 year from the date of its issuance. The fee for any license issued to a qual-8 ifying convention center shall be as prescribed in subsection (3) of section9 23-904, Idaho Code. The holder of a convention center license shall not be10 eligible for the issuance of a license in the same city pursuant to any other11 provision of this chapter. For purposes of this section, the term "holder"12 shall include an owner, operator, or lessee and shall include a stockholder,13 director, or officer of a corporation or a partner in a partnership, which14 corporation or partnership has been issued a convention center license pur-15 suant to this chapter. Not more than one (1) licensed premises shall be per-16 mitted on any convention center or within the area comprising the same, in-17 cluding convention centers that also comprise golf courses or ski resorts as18 defined in this section.19 (8) If an owner, operator, or lessee has a validly issued retail liquor20 by the drink license at the time of application, nothing in this chapter21 shall prohibit the issuance of a license to the owner, operator, or lessee22 of a food, beverage, and/or lodging facility that has been in continuous23 operation in the same location for at least seventy-five (75) years, except24 for temporary closings for refurbishing or reconstruction, or a food, bever-25 age, and lodging facility serving the public by reservation only, having a26 minimum of five (5) rooms operating in a structure that has been in existence27 for at least seventy-five (75) years and has been on the historic register28 for a minimum of ten (10) years, is situated within five hundred (500) yards29 of a natural lake containing a minimum of thirty-six thousand (36,000) acre30 feet of water when full with a minimum of thirty-two (32) miles of shoreline,31 and is located in a county with a minimum population of sixty-five thousand32 (65,000). The provisions of section 23-910, Idaho Code, shall apply to li-33 censes issued to continuous operation facilities. The fees shall be the same34 as those prescribed for golf courses as set forth in section 23-904, Idaho35 Code. No license shall be issued under this subsection on or after July 1,36 2028.37 (9) Nothing in this chapter shall prohibit the issuance of a license38 to a federally recognized Indian tribe as defined in section 67-4001, Idaho39 Code, which is an owner, operator, or lessee of a food, conference, and lodg-40 ing facility located within the boundaries of the Indian tribe's reservation41 and containing a minimum of thirty-five thousand (35,000) square feet and42 fifty (50) guest rooms. Licenses issued to Indian tribes are not transfer-43 able.44 (10) Nothing in this chapter shall prohibit the issuance of a license45 to the owner, operator, or lessee of the lodging, dining, and entertainment46 facilities owned by a gondola resort complex and operated in conjunction47 with the other public services provided by a gondola resort complex located48 within the ownership/leasehold boundaries of a gondola resort complex. For49 purposes of this subsection, a gondola resort complex means an actual bona50

5 fide gondola capable of transporting people for recreational or entertain-1 ment purposes at least three (3) miles in length with a vertical rise of three2 thousand (3,000) feet, portions of which may be located within or over the3 limits of one (1) or more cities.4 (11) Nothing in this chapter shall prohibit the issuance of a license to5 the owner, operator, or lessee of a winery also operating a golf course on the6 premises.7 (12) Subject to approval of the mayor and city council, nothing in this8 chapter shall prohibit the issuance of a license to the owner, operator, or9 lessee of a food, conference, and lodging facility constructed after May 1,10 2000, containing a minimum of thirty-five thousand (35,000) square feet and11 fifty-five (55) guest rooms with a minimum taxable value of three million12 dollars ($3,000,000) in a city with a population of less than five thousand13 (5,000) according to the most recent census.14 (13) Nothing in this chapter shall prohibit the issuance of a license15 to the owner, operator, or lessee of a conference and event center that is16 within the city limits of a resort city as defined in section 50-1044, Idaho17 Code, that has enacted local option nonproperty taxes in accordance with18 section 50-1046, Idaho Code, including, at the time of issuance, a resort19 city tax on sales of liquor by the drink, wine, and beer sold at retail for20 consumption on the licensed premises. There shall be only one (1) conference21 and event center license to sell liquor by the drink issued per resort city22 pursuant to this subsection. For the purposes of this section, a confer-23 ence and event center means facilities situated on premises consisting of a24 building or buildings and the contiguous property owned or leased and under25 common ownership or control by the licensee. Such facilities must provide26 no less than four thousand (4,000) square feet of enclosed space for confer-27 ence and event purposes, exclusive of space dedicated by the licensee to the28 commercial kitchen. The commercial kitchen must include a type 1 commercial29 hood and cooking equipment, exclusive of microwave ovens and grills. The30 fee for any license issued to a qualifying licensee shall be as prescribed31 in section 23-904(1), (2), or (3), Idaho Code, depending on the population32 of the resort city in which the conference and event center is located and as33 prescribed in section 23-916, Idaho Code. A license issued pursuant to this34 subsection may be renewed without regard to the population or status of the35 city for which the license was issued and without regard for the continuation36 of local option nonproperty taxes by the city, provided the applicant for37 renewal is not otherwise disqualified from licensure pursuant to section38 23-910, Idaho Code. Not more than one (1) license shall be issued to a con-39 ference and event center. A conference and event center license shall not40 be transferable and may not be sold. For the purpose of issuance and mainte-41 nance of a license under this subsection, such facilities may serve liquor42 only while such facilities are hosting a conference or event. Nothing in43 this subsection shall excuse a conference and event center from complying44 with actual use standards in title 23, Idaho Code, or administrative rules45 promulgated pursuant to statutory authority granted under this title.46 (14) Nothing in this chapter shall prohibit the issuance of a license to47 the owner, operator, or lessee of an actual, bona fide distillery. A license48 issued pursuant to this subsection shall authorize the sale of liquor ex-49 plicitly from brands that are owned by the distillery. The fees for a license50

6 issued pursuant to this subsection shall be the same as those prescribed for1 golf courses as set forth in section 23-904, Idaho Code. As used in this sec-2 tion, "bona fide distillery" means a legally authorized premises that manu-3 factures and bottles liquor and is located on no less than five (5) acres of4 agricultural zoned property in an unincorporated area of Idaho.5 (14) (15) The provisions of section 23-910, Idaho Code, shall apply to6 licenses issued under the provisions of this section. The fees shall be the7 same as those prescribed for golf courses as set forth in section 23-904,8 Idaho Code. Except for licenses issued pursuant to subsection (1) of this9 section, licenses issued under the provisions of this section are not trans-10 ferable to any other location, facility, or premises.11 (15) (16) A license issued pursuant to subsection (1) of this section on12 or after July 1, 2023:13 (a) May not be transferred to another licensee except as provided in14 subsections (16) (17)(a), (b), and (c) and subsection (18) (19) of this15 section or section 23-950, Idaho Code, provided that the licensee must16 elect to associate such license with the real property at the time of the17 initial license issuance; and18 (b) Shall not qualify for the discount established in section19 23-217(2), Idaho Code.20 (16) (17) A license issued pursuant to subsection (1) of this section21 prior to July 1, 2023, may be transferred to another licensee one (1) time22 only on or after July 1, 2023, and shall thereafter be nontransferable.23 Prior to such onetime-only transfer, the licensee shall be entitled to24 the discount established in section 23-217(2), Idaho Code. After any one-25 time-only transfer, the licensee placing the license in actual use shall26 not be entitled to such discount. For purposes of this subsection only, the27 following circumstances shall not qualify as a onetime-only transfer:28 (a) The license is inherited or otherwise acquired through a will,29 trust, or other estate-planning document;30 (b) The license is given to a person by the person's parent, grandpar-31 ent, child, grandchild, sibling, aunt, uncle, or first cousin without32 consideration or remuneration;33 (c) To the extent not already included in paragraphs (a) and (b) of this34 subsection, any of the events listed in section 23-908(5)(a) through35 (e), Idaho Code;36 (d) The sale of the business assets of an entity or individual licensee,37 including the transfer of an associated license placed in actual use,38 either owned or leased prior to July 1, 2023, to a qualified applicant,39 provided that:40 (i) The transferring licensee has occupied its location, facil-41 ity, or premises at the time of sale for at least one (1) year prior42 to the sale of business assets; and43 (ii) The qualified new licensee operates at the same location,44 facility, or premises for one (1) year following the sale of as-45 sets and transfer of the associated liquor license placed in ac-46 tual use. Any sale that does not conform to the provisions of this47 paragraph shall be considered a onetime-only transfer of the li-48 cense pursuant to this subsection;49

7 (e) The sale or transfer of some or all of the ownership interests of an1 entity licensee to a qualified applicant provided that:2 (i) The entity licensee has occupied its location, facility, or3 premises at the time of sale for at least one (1) year prior to the4 sale and transfer of the ownership interests; and5 (ii) The existing entity licensee operates at the same location,6 facility, or premises for one (1) year following the closing of the7 sale or transfer of the ownership interests. Any sale that does8 not conform to the provisions of this paragraph shall be consid-9 ered a onetime-only transfer of the license pursuant to this sub-10 section;11 (f) The licensee owns, operates, or leases more than one (1) business or12 entity and transfers the license from one business or entity to another13 owned, operated, or leased by such licensee;14 (g) A transfer pursuant to subsection (18) (19) of this section; or15 (h) A transfer pursuant to section 23-950, Idaho Code.16 (17) (18) If a license that was issued pursuant to subsection (1) of this17 section was under lease before July 1, 2023, then such lease may continue18 pursuant to its own terms and may be amended or renewed, or such lease may19 be assigned to a purchaser pursuant to subsection (16) (17)(d) or (e) of this20 section. At the end of the term of such lease, the license shall revert to the21 license owner's possession, and the license owner may opt for one (1) of the22 following alternatives:23 (a) The owner may transfer the license pursuant to the provisions of24 subsection (16) (17) of this section, including a onetime-only transfer25 under an installment contract wherein such contract shall not exceed a26 term of five (5) years;27 (b) The owner may retain the license and apply to become the actual user28 of the license, which retention and use shall be exempt from the one-29 time-only transfer pursuant to subsection (16) (17) of this section;30 (c) The owner may proceed under subsections (16) (17)(a) through (g) of31 this section; or32 (d) If the owner of the license is also the owner of an estate in real33 property, the owner may proceed under subsection (18) (19) of this sec-34 tion.35 (18) (19)(a) An entity or person who owns a license issued pursuant to36 subsection (1) of this section and holds, in whole or in part, an estate37 in real property that is leased to a tenant pursuant to a written lease38 may permit such tenant to operate the license at the leased premises39 during the term of the premises lease, provided that the license shall40 identify on the face of the license the name of the license owner, the41 name of the premises tenant as the qualified licensee who places the42 licenses in actual use, and the location of the associated licensed43 premises.44 (b) The license owner may permit a subsequent tenant under a new45 premises lease to place the license into actual use upon termination of46 the prior premises lease as provided in this subsection.47 (c) A license operated pursuant to this subsection may be transferred48 to any third-party purchaser of the licensed premises where the license49 is placed in actual use at the time of such transfer.50

8 (d) The onetime-only transfer of the license under subsection (16) (17)1 of this section shall no longer be available to the license owner once2 placed in use under this subsection, but the license owner may there-3 after proceed under subsections (16) (17)(a) through (g) or subsection4 (17) (18) of this section or under this subsection.5 (e) The license owner shall be jointly responsible with the tenant to6 the director for all renewals, filings, payment of fees, and adminis-7 trative actions taken with respect to the license.8 (19) (20) If the director maintains a priority list of the applicants9 for a license to be issued pursuant to subsection (1) of this section and10 an applicant receives notice in writing from the director that a license is11 available, the applicant may elect to have the license issued in the name of:12 (a) The original applicant;13 (b) Persons as set forth in subsection (16) (17)(a) through (c) of this14 section as its designee; or15 (c) A single purpose entity owned only by the original applicant or any16 party set forth in subsection (16) (17)(a) through (c) of this section17 or such combination of the original applicant or a party set forth in18 subsection (16) (17)(a) through (c) of this section.19

SECTION 2. That Section 23-910, Idaho Code, be, and the same is hereby20 amended to read as follows:21 23-910. PERSONS NOT QUALIFIED TO BE LICENSED. No license shall be is-22 sued to:23 (1) Any person, or any one (1) of its members, officers, or governing24 board, who has, within three (3) years prior to the date of making applica-25 tion, been convicted of any violation of the laws of the United States, the26 state of Idaho, or any other state of the United States, or of the resolutions27 or ordinances of any county or city of this state, relating to the importa-28 tion, transportation, manufacture or sale of alcoholic liquor or beer; or29 who has been convicted of, paid any fine, been placed on probation, received30 a deferred sentence, received a withheld judgment or completed any sentence31 of confinement for any felony within five (5) years prior to the date of mak-32 ing application for any license.33 (2) A person who is engaged in the operation, or interested therein, of34 any house or place for the purpose of prostitution or who has been convicted35 of any crime or misdemeanor opposed to decency and morality.36 (3) A person whose license issued under this act has been revoked; an37 individual who was a member of a partnership or association which was a li-38 censee under this act and whose license has been revoked; an individual who39 was an officer, member of the governing board or one (1) of the ten (10) prin-40 cipal stockholders of a corporation which was a licensee under this act and41 whose license has been revoked; a partnership or association one (1) of whose42 members was a licensee under this act and whose license was revoked; a cor-43 poration one (1) of whose officers, member of the governing board or ten (10)44 principal stockholders was a licensee under the provisions of this act and45 whose license has been revoked; an association or partnership, one (1) of46 whose members was a member of a partnership or association licensed under the47 provisions of this act and whose license has been revoked; a partnership or48 association, one (1) of whose members was an officer, a member of the govern-49

9 ing board, or one (1) of the ten (10) principal stockholders of a corporation1 licensed under the provisions of this act and whose license has been revoked;2 a corporation, one (1) of whose officers, member of the governing board, or3 ten (10) principal stockholders was a member of a partnership or association4 licensed under the provisions of this act and whose license was revoked; a5 corporation, one (1) of whose officers, member of the governing board, or ten6 (10) principal stockholders was an officer, member of the governing board,7 or one (1) of the ten (10) principal stockholders of a corporation licensed8 under the provisions of this act and whose license was revoked.9 (4) Any officer, agent, or employee of any distillery, winery, brewery,10 or any wholesaler, or jobber, of liquor or malt beverages except as provided11 in section 23-912, Idaho Code. This prohibition shall not apply to offi-12 cers, agents, or employees of any winery operating a golf course on the same13 premises as the winery or officers, agents, or employees of any distillery,14 as described in section 23-903(14), Idaho Code.15 (5) A person who does not hold a retail beer license issued under the16 laws of the state of Idaho.17 (6) Any license, held by any licensee disqualified under the provisions18 of this section from being issued a license, shall forthwith be revoked by19 the director.20

SECTION 3. That Section 23-912, Idaho Code, be, and the same is hereby21 amended to read as follows:22 23-912. RESTRICTIONS OF PERSONS INTERESTED IN PREMISES. (1) Except23 as provided in subsection (2) of this section, no manufacturer, rectifier,24 wholesaler, stockholder, shareholder, partner or the owner of any other25 interest in any corporation, association or partnership financially inter-26 ested in the manufacture, transportation (except public carriers) or sale of27 liquor shall hold any interest in any premise licensed hereunder for the sale28 of liquor or receive any rental or remuneration from any such premise.29 (2) A manufacturer, rectifier, wholesaler, stockholder, shareholder,30 partner or the owner of any interest in any corporation, association or part-31 nership financially interested in the manufacture, transportation or sale32 of liquor may hold interest in a licensed premises if the licensed premises33 serves food cooked on the site of the licensed premises, and the person or en-34 tity can show through recordkeeping that no more than fifty percent (50%) of35 the gross revenue to the licensed premises is derived from the sale of alco-36 holic beverages on-site. The owner of the licensed premises pursuant to this37 subsection shall comply with and be subject to all other rules, regulations38 or other provisions of law which apply to manufacturers, rectifiers, whole-39 salers, stockholders, shareholders, partners or the owners of any interest40 in any corporation, association or partnership financially interested in41 the manufacture, transportation or sale of liquor save and except as such42 rules, regulations or laws may restrict such sales at the licensed premises.43 The holder of a license pursuant to this section shall not be disqualified44 from holding a beer license, a retail wine license or wine by the drink li-45 cense for the sale of beer or wine at the licensed premises on the grounds46 that the licensee is also a manufacturer, wholesaler, stockholder, share-47 holder, partner or the owner of any interest in any corporation, association48 or partnership financially interested in the manufacture, transportation or49

10 sale of liquor, beer or wine. This subsection shall not be deemed to grant1 a license for the retail sale of liquor by the drink and the license must be2 obtained through normal lawful means. A distillery, as described in section3 23-903(14), Idaho Code, shall not be required to serve food cooked on the4 site of the licensed premises and shall be authorized to sell liquor from5 brands explicitly owned by the distillery. Such sale of liquor shall not be6 considered to be in conflict with the provisions of this chapter.7

SECTION 4. That Section 23-944, Idaho Code, be, and the same is hereby8 amended to read as follows:9 23-944. EXCEPTIONS FROM RESTRICTION ON ENTERING OR REMAINING. It10 shall not be unlawful for, nor shall section 23-943, Idaho Code, be construed11 to restrict, any person under the age of twenty-one (21) years from entering12 or being:13 (1) Upon the premises of any restaurant, as herein defined, or in any14 railroad observation or club car or any airplane of a commercial airline,15 notwithstanding that such premises may also be licensed for the sale of16 liquor by the drink or for the sale of beer for consumption on the premises or17 that alcoholic beverages, or beer, or both, are prepared, mixed or dispensed18 and served and consumed therein;19 (2) In any building, a part or portion of which is used as a place, as20 herein defined, provided such place is separated or partitioned from the re-21 mainder of said building and access to such place through a doorway or door-22 ways or other means of ingress can be controlled to prevent persons under the23 ages specified with respect thereto in section 23-943, Idaho Code, from en-24 tering therein;25 (3) In any baseball park, sports arena, convention center, multi-26 purpose arena, plaza, theater that is presenting live performances, or27 fairgrounds, notwithstanding that such premises or any portion thereof may28 be licensed for the sale of liquor by the drink, wine or beer for consumption29 on the premises or that such products are dispensed and served and consumed30 therein; provided, that the person under the age of twenty-one (21) years is31 attending a lawful activity, show, exhibition, performance or event on the32 premises or is required to be present as a condition of his employment. It is33 lawful for persons under the age of twenty-one (21) years to enter and remain34 in a baseball park, sports arena, convention center, multipurpose arena,35 plaza, theater that is presenting live performances, or fairgrounds as long36 as the activity, show, exhibition, performance or event is lawful and the37 person does not violate section 23-949, Idaho Code;38 (4) Upon the premises of any licensed brewery or winery notwithstanding39 that such premises or any portion thereof may also be licensed for the sale of40 beer or wine for consumption on the premises or that beer or wine is dispensed41 and served and consumed therein;42 (5) Upon the licensed premises of a wine retailer, wholly owned and op-43 erated by a licensed winery that retails exclusively the products of that44 winery;45 (6) At a location, other than a liquor, beer, or wine licensed premises,46 authorized to serve alcoholic beverages under a valid alcohol beverage47 catering permit; or48

11 (7) In any movie theater that is allowed to sell beer or wine for con-1 sumption on the premises pursuant to a valid license and which movie theater2 had a license that was valid and not suspended or revoked on July 1, 2025, and3 in any other theater or movie theater that is located in a building listed on4 the national register of historic places. No films, still pictures, elec-5 tronic reproductions or other visual reproductions that are in violation of6 chapter 41, title 18, Idaho Code (indecency and obscenity), or are in viola-7 tion of federal law regarding pornography, indecency or obscenity shall be8 shown or displayed on the premises. As used in this subsection, "movie the-9 ater" means a motion picture theater that is being utilized solely for exhi-10 bition of a motion picture.; or11 (8) Upon the licensed premises of a distillery, as described in section12 23-903(14), Idaho Code, that sells liquor exclusively from the brands owned13 by the distillery.14

SECTION 5. An emergency existing therefor, which emergency is hereby15 declared to exist, this act shall be in full force and effect on and after16 July 1, 2026.17