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. 944 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 Beginning in fiscal year 2027, the balance remaining after transfer-21 ring 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%).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 (viii) The balance shall be transferred to the general fund, after10 one and one-half percent (1.5%) of such balance is transferred to11 the peace officers standards and training fund created in section12 19-5116, Idaho Code.13 (vii) Five million dollars ($5,000,000) shall be transferred an-14 nually to the Idaho law enforcement fund established in section15 67-2914, Idaho Code.16 (c) Beginning in fiscal year 2027, from the balance remaining after the17 transfers authorized by paragraphs (a) and (b) of this subsection, one18 and one-half percent (1.5%) of such remaining balance shall be trans-19 ferred to the peace officers standards and training fund established20 in section 19-5116, Idaho Code, and forty-eight and one-half percent21 (48.5%) of such remaining balance shall be transferred to the general22 fund.23 (c) (d) The remainder of the moneys received in the liquor account The24 remaining fifty percent (50%) of the balance after the transfers autho-25 rized by paragraphs (a) and (b) of this subsection shall be appropriated26 and paid as follows:27 (i) For fiscal year 2018, forty percent (40%) of the balance re-28 maining after the transfers authorized by paragraphs (a) and, (b),29 and (c) of this subsection have been made is hereby appropriated to30 and shall be paid to the several counties. For fiscal year 2019,31 the amount apportioned to counties shall decrease to thirty-nine32 and two-tenths percent (39.2%) with a decrease of eight-tenths33 percent (.8%) for each subsequent fiscal year thereafter until34 fiscal year 2023 when such percentage shall be thirty-six per-35 cent (36%). Each county shall be entitled to an amount in the36 proportion that liquor sales through the division in that county37 during the state's previous fiscal year bear to total liquor sales38 through the division in the state during the state's previous fis-39 cal year, except that no county shall be entitled to an amount less40 than that county received in distributions from the liquor account41 during the state's fiscal year 1981.42 (ii) For fiscal year 2018, sixty percent (60%) of the balance re-43 maining after the transfers authorized by paragraphs (a) and, (b),44 and (c) of this subsection have been made is hereby appropriated to45 and shall be paid to the several cities. For fiscal year 2019, the46 amount apportioned to the several cities shall decrease to fifty-47 seven and eight-tenths percent (57.8%) with a decrease of two and48 two-tenths percent (2.2%) for each subsequent fiscal year there-49 after until fiscal year 2023 when such percentage shall be forty-50

3 nine percent (49%). Amounts paid to the several cities shall be1 distributed as follows:2 1. Ninety percent (90%) of the amount appropriated to the3 cities shall be distributed to those cities that have a4 liquor store or distribution station located within the cor-5 porate limits of the city. Each such city shall be entitled6 to an amount in the proportion that liquor sales through the7 division in that city during the state's previous fiscal8 year bear to total liquor sales through the division in the9 state during the state's previous fiscal year, except that10 no city shall be entitled to an amount less than that city11 received in distributions from the liquor account during the12 state's fiscal year 1981;13 2. Ten percent (10%) of the amount appropriated to the14 cities shall be distributed to those cities that do not have15 a liquor store or distribution station located within the16 corporate limits of the city. Each such city shall be enti-17 tled to an amount in the proportion that its population bears18 to the population of all cities in the state that do not have19 a liquor store or distribution station located within the20 corporate limits of the city, except that no city shall be21 entitled to an amount less than that city received in dis-22 tributions from the liquor account during the state's fiscal23 year 1981.24 (iii) For fiscal year 2019, an additional amount of three percent25 (3%) of the balance remaining after the transfers authorized by26 paragraphs (a) and (b) of this subsection have been made is hereby27 appropriated to the several counties for deposit in the district28 court fund. Such funds shall be dedicated to provide for the suit-29 able and adequate quarters of the magistrate division of the dis-30 trict court, including the facilities and equipment necessary to31 make the space provided functional for its intended use, and shall32 provide for the staff personnel, supplies and other expenses of33 the magistrate division. For fiscal year 2020, the amount appor-34 tioned to the several counties for deposit in the district court35 fund shall be six percent (6%) with an increase of three percent36 (3%) for each subsequent year until fiscal year 2023 when such per-37 centage shall be fifteen percent (15%). Amounts paid to the sev-38 eral counties shall be distributed as follows:39 1. The first four hundred forty thousand dollars ($440,000)40 shall be distributed to each of the forty-four (44) counties41 in equal amounts;42 2. Fifty percent (50%) of the remaining funds shall be dis-43 tributed to the forty-four (44) counties in proportion to44 the population of the county in relation to the population of45 the state; and46 3. Fifty percent (50%) of the remaining funds shall be dis-47 tributed to the forty-four (44) counties in proportion to48 the number of misdemeanor and infraction filings initiated49 by city law enforcement officers in the county during the50

4 state's previous fiscal year in relation to the proportion1 of the number of misdemeanor and infraction filings initi-2 ated by all city law enforcement officers in the state.3 (2) All transfers and distributions shall be made periodically, but not4 less frequently than quarterly, but the apportionments made to any county or5 city that may during the succeeding three (3) year period be found to have6 been in error either of computation or transmittal shall be corrected during7 the fiscal year of discovery by a reduction of apportionments in the case of8 over-apportionment or by an increase of apportionments in the case of under-9 apportionment. The decision of the director on entitlements of counties and10 cities shall be final and shall not be subject to judicial review.11 (3) For purposes of this section, "city law enforcement officer" means12 an individual, either employed directly by a city or by way of a contract for13 law enforcement services with another city or county, authorized to investi-14 gate, enforce, prosecute or punish violations of city or state statutes, or-15 dinances or regulations.16

SECTION 2. That Section 33-2139, Idaho Code, be, and the same is hereby17 amended to read as follows:18 33-2139. STATE COMMUNITY COLLEGE ACCOUNT CREATED. There is hereby19 created a state community college account in the state operating fund in the20 state treasurer's office to which shall be credited all moneys that may be21 transferred pursuant to section 23-404(1)(b)(iii)(ii), Idaho Code. The22 state treasurer shall make such disbursements from the account as may be23 ordered by the state board of education in accordance with the provisions of24 this act.25

SECTION 3. An emergency existing therefor, which emergency is hereby26 declared to exist, this act shall be in full force and effect on and after27 July 1, 2026.28