Amends existing law to revise provisions regarding sales by certain licensed brewers.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1301 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO BEER; AMENDING SECTION 23-1003, IDAHO CODE, TO REVISE PROVISIONS2 REGARDING SALES BY CERTAIN LICENSED BREWERS AND TO MAKE TECHNICAL COR-3 RECTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 23-1003, Idaho Code, be, and the same is hereby6 amended to read as follows:7 23-1003. BREWERS', DEALERS' AND WHOLESALERS' LICENSES. (a) Before8 any brewer shall manufacture or any dealer or wholesaler import or sell9 beer within the state of Idaho, such brewer shall apply to the director for10 a license. The application form shall be prescribed and furnished by the11 director and require that the applicant show that such brewer possesses12 all the qualifications and none of the disqualifications of a licensee. To13 determine qualification for a license, the director shall cause an inves-14 tigation that shall include a fingerprint-based criminal history check of15 the Idaho central criminal history database and the federal bureau of inves-16 tigation criminal history database. Each person listed as an applicant on17 an initial application shall submit a full set of fingerprints and the fee18 to cover the cost of the criminal history background check with the appli-19 cation. The application shall also be accompanied by the required licensee20 license fee; provided, that where the applicant is or will be within more21 than one (1) of the foregoing classifications, the applicant shall apply22 for each classification but shall pay only one (1) license fee, which shall23 be for the classification requiring the highest fee. If the director is24 satisfied that the applicant possesses the qualifications and none of the25 disqualifications for the license, the director shall issue a license for26 each classification applied for, subject to the restrictions and upon the27 conditions in this act specified, which license or licenses shall be at all28 times prominently displayed in the place of business of the licensee.29 (b) Each wholesaler shall, in addition to the application, file with30 the director a notice in writing signed by the dealer or brewer and the whole-31 saler stating the geographic territory within which the wholesaler will dis-32 tribute beer to retailers. The territory will be agreed upon between the33 dealer or brewer and the wholesaler and may not be changed or modified with-34 out the consent of both the dealer or brewer and the wholesaler. Provided35 however, nothing in this section shall be interpreted to prohibit a brewer or36 dealer from permitting more than one (1) distributor for the same geographic37 territory.38 (c) In the event that a wholesaler sells beer to a retailer who is lo-39 cated outside the geographical territory designated by that wholesaler on40 the notice provided for in subsection (b) of this section, the dealer or41 wholesaler who has designated the geographical territory in which the sale42

2 occurred may apply to a district court of this state for the issuance of an1 injunction enjoining sales of beer by the wholesaler outside of its desig-2 nated geographical territory. The procedure for issuance of an injunction3 pursuant to this act shall be subject to the Idaho rules of civil procedure.4 Upon proof to the court that a wholesaler has made a sale of beer outside of5 its designated geographical territory, the court shall issue an injunction6 directed to the wholesaler prohibiting sales of beer outside of its desig-7 nated geographical territory.8 (d) Any licensed brewer that produces fewer than thirty thousand9 (30,000) barrels of beer in the aggregate annually, including any beer pro-10 duced outside the state of Idaho, may be issued a brewer's retail license.11 Upon payment of a retailer's annual license fee, and subject to the fees12 in sections 23-1015 and 23-1016, Idaho Code, a brewer may, at its licensed13 main production brewery or and at one (1) no more than two (2) remote retail14 location, or both locations, sell at retail the products of any brewery by15 the individual bottle, can, or glass. Any brewer selling beer at retail or16 selling products of its brewery to a retailer must pay the taxes required in17 section 23-1008, Idaho Code, on the products of its brewery, but need not be18 licensed as a wholesaler for the purpose of selling beer at the brewery or at19 one (1) its two (2) remote retail location locations. Upon annual approval20 by the director, a brewer licensed pursuant to this subsection shall not for-21 feit its right to sell the products of any brewery by the individual bottle,22 can, or glass at its licensed main production brewery or one (1) at either23 of its two (2) remote retail location, or both, locations should the brewer24 produce more than thirty thousand (30,000) barrels of beer, provided such25 brewer:26 (1) Has continuously brewed beer in and continuously maintained a phys-27 ical presence in the state of Idaho for no less than five (5) years;28 (2) Has not violated any of the provisions of this chapter resulting29 in a revocation or suspension of a license for multiple days during any30 point of the brewery's production operations; and31 (3) Has surrendered any wholesale license.32 (e) A brewer that produces fewer than thirty thousand (30,000) barrels33 of beer in the aggregate annually, including any beer produced outside the34 state of Idaho, may be licensed as a wholesaler for the sale of beer produced35 by such brewery. Such brewer shall maintain a warehouse physically located36 within the state of Idaho, distribute its beer using employees of the brew-37 ery with equipment owned or controlled by the brewery, and comply with and be38 subject to all other regulations or provisions of law that apply to a whole-39 saler's license, except as the laws may restrict sales at the licensed brew-40 ery or one (1) other remote retail location in accordance with the provisions41 of subsection (d) of this section. The holder of a brewer's retail license42 shall not be disqualified from holding a retail wine license or wine by the43 drink license for the sale of wine at the brewery's premises on the grounds44 that the licensee is also licensed as a wholesaler.45

SECTION 2. An emergency existing therefor, which emergency is hereby46 declared to exist, this act shall be in full force and effect on and after47 July 1, 2026.48