H 967

                    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
1AN ACT
2  RELATING TO DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT; AMENDING SECTION
3      23-404, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE DISTRIBUTION OF
4      MONEYS IN THE LIQUOR ACCOUNT; AMENDING SECTION 33-2139, IDAHO CODE, TO
5      PROVIDE A CORRECT CODE REFERENCE; AND DECLARING AN EMERGENCY AND PRO-
6      VIDING AN EFFECTIVE DATE.
7  Be It Enacted by the Legislature of the State of Idaho:
8      SECTION 1. That Section 23-404, Idaho Code, be, and the same is hereby
9  amended to read as follows:
10     23-404. DISTRIBUTION OF MONEYS IN LIQUOR ACCOUNT. (1) The moneys re-
11 ceived into the liquor account shall be transferred or appropriated as fol-
12 lows:
13     (a) An amount of money equal to the actual cost of purchase of alcoholic
14     liquor and payment of expenses of administration and operation of the
15     division, as determined by the director and certified quarterly to the
16     state controller, shall be transferred back to the division; provided,
17     that the amount so transferred back for administration and operation of
18     the division shall not exceed the amount authorized to be expended by
19     regular appropriation authorization.
20     (b) From fiscal year 2006 through fiscal year 2009, forty percent (40%)
21     of the Fifty percent (50%) of the balance remaining after transferring
22     the amounts authorized by paragraph (a) of this subsection shall be
23     transferred or appropriated pursuant to this paragraph. Beginning in
24     fiscal year 2010, the percentage transferred pursuant to this paragraph
25     shall increase to forty-two percent (42%) with an increase of two per-
26     cent (2%) for each subsequent fiscal year thereafter until fiscal year
27     2014, when such percentage shall be fifty percent (50%). as follows:
28(i)   For fiscal year 2006 and through fiscal year 2009, one mil-
29lion eight hundred thousand dollars ($1,800,000) shall be appro-
30priated and paid to the cities and counties as set forth in para-
31graph (c)(i) and (ii) of this subsection;
32(ii) (i) Two million eighty thousand dollars ($2,080,000) shall
33be transferred annually to the substance abuse treatment fund cre-
34ated in section 23-408, Idaho Code;
35(iii) (ii) Eight hundred thousand dollars ($800,000) shall be
36transferred annually to the state community college account cre-
37ated in section 33-2139, Idaho Code;
38(iv) (iii) One million two hundred thousand dollars ($1,200,000)
39shall be transferred annually to the public school income fund as
40defined in section 33-903, Idaho Code;
                                 2
1(v) (iv) Six hundred fifty thousand dollars ($650,000) shall be
2transferred annually to the cooperative welfare fund in the dedi-
3cated fund;
4(vi) (v) Six hundred eighty thousand dollars ($680,000) shall be
5transferred annually to the drug court, mental health court and
6family court services fund;
7(vii) (vi) Four hundred forty thousand dollars ($440,000) shall
8be transferred annually to the drug and mental health court super-
9vision fund created in section 23-409, Idaho Code; and
10      (vii) Two million dollars ($2,000,000) shall be transferred an-
11      nually to the Idaho law enforcement fund established in section
12      67-2914, Idaho Code, and shall be used exclusively for the pur-
13      poses described in section 49-454(3), Idaho Code; and
14      (viii) The balance shall be transferred to the general fund, after
15      one and one-half percent (1.5%) of such balance is transferred to
16      the peace officers standards and training fund created in section
17      19-5116, Idaho Code.
18 (c) The remainder of the moneys received in the liquor account Fifty
19 percent (50%) of the balance remaining after transferring the amounts
20 authorized by paragraph (a) of this subsection shall be transferred or
21 appropriated and paid as follows:
22      (i) For fiscal year 2018, forty percent (40%) of the balance
23      remaining after the transfers authorized by paragraphs (a) and
24      (b) of this subsection have been made is hereby appropriated to
25      and shall be paid to the several counties. For fiscal year 2019,
26      the amount apportioned to counties shall decrease to thirty-nine
27      and two-tenths percent (39.2%) with a decrease of eight-tenths
28      percent (.8%) for each subsequent fiscal year thereafter until
29      fiscal year 2023 when such percentage shall be thirty-six percent
30      (36%). Eighty-five percent (85%) of such balance remaining shall
31      be transferred or appropriated as follows:
321. Two million dollars ($2,000,000) shall be transferred
33annually to the Idaho law enforcement fund established in
34section 67-2914, Idaho Code, and shall be used exclusively
35for the purposes described in section 49-454(3), Idaho Code.
362.   Forty-two and three-tenths percent (42.3%) of the
37balance remaining after the transfer authorized by sub-
38paragraph (i)1. of this paragraph has been made is hereby
39appropriated to and shall be paid to the several counties.
40Each county shall be entitled to an amount in the proportion
41that liquor sales through the division in that county during
42the state's previous fiscal year bear to total liquor sales
43through the division in the state during the state's previ-
44ous fiscal year, except that no county shall be entitled to
45an amount less than that county received in distributions
46from the liquor account during the state's fiscal year 1981.
47(ii) 3. For fiscal year 2018, sixty percent (60%) Fifty-
48seven and seven-tenths percent (57.7%) of the balance
49remaining after the transfers transfer authorized by
50paragraphs (a) and (b) of this subsection have subparagraph
                             3
1(i)1. of this paragraph has been made is hereby appropriated
2to and shall be paid to the several cities. For fiscal year
32019, the amount apportioned to the several cities shall de-
4crease to fifty-seven and eight-tenths percent (57.8%) with
5a decrease of two and two-tenths percent (2.2%) for each sub-
6sequent fiscal year thereafter until fiscal year 2023 when
7such percentage shall be forty-nine percent (49%). Amounts
8paid to the several cities shall be distributed as follows:
91. (A) Ninety percent (90%) of the amount appropri-
10ated to the cities shall be distributed to those cities
11that have a liquor store or distribution station lo-
12cated within the corporate limits of the city. Each
13such city shall be entitled to an amount in the pro-
14portion that liquor sales through the division in that
15city during the state's previous fiscal year bear to
16total liquor sales through the division in the state
17during the state's previous fiscal year, except that no
18city shall be entitled to an amount less than that city
19received in distributions from the liquor account dur-
20ing the state's fiscal year 1981;
212. (B) Ten percent (10%) of the amount appropriated to
22the cities shall be distributed to those cities that do
23not have a liquor store or distribution station located
24within the corporate limits of the city. Each such city
25shall be entitled to an amount in the proportion that
26its population bears to the population of all cities in
27the state that do not have a liquor store or distribu-
28tion station located within the corporate limits of the
29city, except that no city shall be entitled to an amount
30less than that city received in distributions from the
31liquor account during the state's fiscal year 1981.
32 (iii) (ii) For fiscal year 2019, an additional amount of three
33 percent (3%) of the balance remaining after the transfers autho-
34 rized by paragraphs (a) and (b) of this subsection have been made
35 Fifteen percent (15%) of such balance remaining is hereby appro-
36 priated to the several counties for deposit in the district court
37 fund. Such funds shall be dedicated to provide for the suitable
38 and adequate quarters of the magistrate division of the district
39 court, including the facilities and equipment necessary to make
40 the space provided functional for its intended use, and shall pro-
41 vide for the staff personnel, supplies and other expenses of the
42 magistrate division. For fiscal year 2020, the amount apportioned
43 to the several counties for deposit in the district court fund
44 shall be six percent (6%) with an increase of three percent (3%)
45 for each subsequent year until fiscal year 2023 when such percent-
46 age shall be fifteen percent (15%). Amounts paid to the several
47 counties pursuant to this subparagraph shall be distributed as
48 follows:
                                      4
11. The first four hundred forty thousand dollars ($440,000)
2shall be distributed to each of the forty-four (44) counties
3in equal amounts;
42. Fifty percent (50%) of the remaining funds shall be dis-
5tributed to the forty-four (44) counties in proportion to
6the population of the county in relation to the population of
7the state; and
83. Fifty percent (50%) of the remaining funds shall be dis-
9tributed to the forty-four (44) counties in proportion to
10the number of misdemeanor and infraction filings initiated
11by city law enforcement officers in the county during the
12state's previous fiscal year in relation to the proportion
13of the number of misdemeanor and infraction filings initi-
14ated by all city law enforcement officers in the state.
15      (2) All transfers and distributions shall be made periodically, but not
16 less frequently than quarterly, but the apportionments made to any county or
17 city that may during the succeeding three (3) year period be found to have
18 been in error either of computation or transmittal shall be corrected during
19 the fiscal year of discovery by a reduction of apportionments in the case of
20 over-apportionment or by an increase of apportionments in the case of under-
21 apportionment. The decision of the director on entitlements of counties and
22 cities shall be final and shall not be subject to judicial review.
23      (3) For purposes of this section, "city law enforcement officer" means
24 an individual, either employed directly by a city or by way of a contract for
25 law enforcement services with another city or county, authorized to investi-
26 gate, enforce, prosecute or punish violations of city or state statutes, or-
27 dinances or regulations.
28     SECTION 2. That Section 33-2139, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30     33-2139. STATE COMMUNITY COLLEGE ACCOUNT CREATED. There is hereby
31 created a state community college account in the state operating fund in the
32 state treasurer's office to which shall be credited all moneys that may be
33 transferred pursuant to section 23-404(1)(b)(iii)(ii), Idaho Code. The
34 state treasurer shall make such disbursements from the account as may be
35 ordered by the state board of education in accordance with the provisions of
36 this act.
37     SECTION 3. An emergency existing therefor, which emergency is hereby
38 declared to exist, this act shall be in full force and effect on and after
39 July 1, 2026.