Idaho Liquor Law Reforms
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Idaho needs to make a couple major changes to state liquor laws. The most needed change is to prevent private parties holding a liquor license from being able to resell that liquor license. The second change would be to eliminate restrictions on how many liquor licenses can be issued, no matter the population. These two changes would spur economic development in Idaho, and level the playing field for everyone statewide. How could Idaho lawmakers disagree with those two principles?
Why is it that liquor licenses are allowed to be resold by private parties? Isn’t a liquor license a state license? Isn’t a license considered a privilege and not a right? Am I allowed to transfer my driver’s license for someone else to use? Why is a state-issued license allowed to be sold between private parties? Idaho has said liquor licenses are not a property right, so why does Idaho allow liquor licenses to be bought and sold as property? If state law and the state supreme court have declared there is no property right attached to liquor licenses, why are the licenses still resold as private property?
I think the state should forbid liquor licenses from being resold. When someone closes or sells their bar, their liquor license should expire. Whoever buys the same space should have to simply reapply with the state for a new license, at a reasonable cost of $1,000 per year. Idaho is fueling economic class stratification when they allow people to sell government licenses for personal profit, and those licenses often sell for multiple tens of thousands of dollars.
If state-issued liquor licenses can be sold for these high fees, why can’t we resell our driver’s licenses for $3,000? I’m sure I could sell mine to a local illegal immigrant or multiple DUI offender for a few thousand dollars. I bet someone could do this, then sue the state to allow it since the state appears to have a double standard when it comes to liquor licenses.
The second proposed change is to eliminate restrictions on how many liquor licenses can be issued in Idaho, especially with regard to municipal populations. This rule is obviously a market control, and I am shocked to see such a restrictive market control in place where Idaho’s politics claims to be pro-market and pro-business. We should allow anyone the right to get a liquor license so long as they meet the various other legal codes (building, health, fire, etc.)
I realize some folks will be worried about their cities being overrun by bars, but I don’t think that would happen. If we truly believe in market forces, then we know our city cannot handle too many bars. I think local bar owners will oppose this change because they want to keep the market artificially restricted so they have less competition.
Idaho’s current major restriction on getting a liquor license has to do with the rule forbidding license transference within the first two years of getting your liquor license. If we eliminate the ability to transfer liquor licenses entirely, and eliminate population quotes/restrictions on getting licenses, then Idaho’s liquor market could become a free market and be better able to serve customer demands (especially our huge tourist industry).
What do you think?
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Comments
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0 Great idea, Joe! This is one that’s been kicked around between me and my buddies for a long time. It’s time to get more competition so that some really “nice” bars will settle in the area. Right now, there’s no good place for hip peeps to go!
I think you hit the nail on the head: Idaho is “afraid” of bringing more bars to the area, perhaps because of the clientelle that the current bars attract. But truly, there are lots of upstanding people that like to knock back one or two on a thursday or friday evening in a clean, friendly environment. Nothing wrong with that, is there?
One fear I have is that the savvy Californians of the world will open the new bars and force out local businesses. How do we keep that from happening? Force some sort of commitment to the local community during the license application process?
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0 0 I understand your point, but I don’t think I care much if Californians open bars that drive locals out of business.
Californians are not UberMen who are necessarily better business people than Idahoans. Idahoans are not prevented from visiting California to glean great bar ideas.
Local bar owners should evolve or go out of business. Competition can only help this industry.
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0 0 One example of the ridiculous lack of bar competition is the fact that there are no good places left to play steel-tipped darts in IF. The only place I have found is Chicks, which is not exactly a relaxing atmosphere. The excuse I get is that drunk people are dangerous with a steel dart. I guess that’s why we need a more upstanding bar that denies service to people who are obviously drunk, and kicks them out if they get rowdy. Plus, aren’t most people in this state packing a knife or other concealed weapon anyway? Is a dart really going to make your bar more dangerous??
As for Californians coming in, I just like to see local businesses have a slight edge over chains and out-of-towners. A local business spends most of the money that it garners right here in town, making the local economy that much stronger.
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0 0 “…like to see local businesses have a slight edge over chains…”
That is a great point!
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0 0 The bar scene is non-existant in this town. The bars they DO have are not worth going to. (imo) I think a decent sports bar and a decent nightclub would do wonders for this town.
Obviously a liquor license is quite difficult to obtain in this state, which is why there are no decent places to go have an adult beverage and shoot some pool or throw some real darts.
Changes desperately need to be made in this area!
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0 0 IF needs a good brewpub. A place like SRB would be a real nice addition.
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0 0 So we all agree a good pub/bar/club is needed in the area. Is liquor licencing reform the right way to bring the needed changes?
My friend was wondering if anyone is caching liquor licenses in the IF area, as in buying them for the intention of keeping bars out of the area, or to resell them at a premium. Does that go on here? What is the max number of licenses available to IF under the current law?
I think Joe’s right. These laws are outdated and send the wrong message to potential businesses.
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0 0 I read something a couple years ago about how some guy out in Ammon was holding something like four liquor licenses with no intention of using any. He basically was trying to keep any bars at all from opening by hoarding them. It became an issue because the Mexican restaurant next to Edwards wanted one so they could serve Margaritas and such but they couldn’t get one because of this guy.
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0 0 I also heard about him, but I heard he finally got burned on it because he never used or leased the licenses so Ammon took them all back.
Anyone know more of that story?
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0 0 Joe, that’s what I heard, too, that he failed to use them and got them revoked/returned, etc. Unfortunately, I thought he got what he deserved.
I agree that liquor license reform is needed. I also agree that folks believe if they don’t reform the system they may be able to control the amount of liquor serving establishments in their towns, because, hey, we all know that our personal belief system should be followed even if it conflicts with someone else’s.
The will of the majority, and all.
By the way, Joe, just a note that I can’t proof read my comments anymore since a few days ago, and the side comments numbering system doesn’t update for me, either. I haven’t changed anything in my system, perhaps the functions are disabled on your end?
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0 0 Yeah, the live comments preview script would not display for folks logged in, so it’s fixed now. I still see the comments numbered, such as yours was 11. and this one should be 12. Please others let me know if you don’t see the comment numbering?
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0 0 I heard that in Madsion county the LDS church actually owns several licenes, and keeps renewing them in order to keep the bar element out of town… does anybody know if this is true or a load of bull??
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0 0 for 30,000 you can buy a license in rigby http://eastidaho.craigslist.org/bfs/505349839.html
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0 0 I agree the laws need updating. Private reselling of liquor licenses is a ridiculous idea and has caused a lot of problems over the years. They should be issued, transferred and revoked by the state only.
Idaho Falls has had a few very nice bars / nightclubs in the past but they failed miserably due to the local population of “Bubbas” preferring sleazy dives like Fords and Chics. I remember one very classy piano bar that opened in the mall several years ago (On the Rox). Nobody ever went there. They usually had about 2 or 3 customers on a typical night. We had one great club at New Orleans Square that had killer bands, 3 bars, large dance floor and a game room but it was quickly burned down by the competition and never rebuilt.
With the current population of the area consisting of more immigrants from California and other large metro areas I think higher end bars would now make it here. As it is now most people would rather stay home than go to the dives we have around here. I won’t go into a bar like Fords or the Crown without a can of pepper spray in my pocket. (And don’t park in the dark around back whatever you do or you could end up in the river).
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0 0 Would anybody stand for it if the local governments were the only ones allowed to sell coffee? I don’t think that would go over so well. However, that is what the State is doing running liquor stores. It is high time that they get out of the business and open it up to competition in the retail markets.
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0 0 Just a couple of comments on the above mentioned ideas……
1. Liability insurance is choking liquor profits. This can explain why its harder for the local businesses to upgrade.
2. If you upgrade a existing building to make it nicer, you have to factor in the updated building codes which drives up building costs.
I know these items don’t seem like much….but it does add up.
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0 0 I agree with a lot that has been said here. As a “young” adult, I would like to see more “hip” places to go and have a drink once in awhile…BUT that is the problem…bars can not stay in business with occassional patrons. A lot of the “dive” bars, as they were called in a previous comment, have steady customers, and that’s why they retain their business and license. As a clerk at the ISLD, I’ve seen numerous attempts at new bars, and new bar owners/managers, but they cannot keep the customers coming. SO…they go out of business and we’ve lost our “HIP” clubs. So, my word of advice is that when a new bar or club opens, wake up in the morning and spend your whole day at the bar/club and waste your savings. That’s how these other “dive” bars are able to stay in business.
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0 0 Also, as far as opening the liquor distribution to the retail market…the liquor dispensary provided Millions of dollars per year to the counties and the cities to aid with different costs…so if you don’t pay the tax at the liquor store, they will get you somewhere else…
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0 0 Hee hee, that’s what I should do, waste my whole day and all my savings at the next new place…in the name of community support!
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0 0 Hey if some one here wants to buy a bar let me know I have one for sell.
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0 0 It would help if you were a little more specific. IE: location, square footage,liqour license included, etc etc.
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0 0 Who wrote about liquor licenses resell is still gone through the state . The state says there no value until you get the tax bill and then they say it was worth what ever the going rate was. The high cost of one or the lack of one in some areas are good for the owners who run a good busness. The state alreadies makes money from this busness by being the wholesailer —retailer-tax man–ticket giver—licenses regrulater-judge , jury–by one man(head of ABC) how much goverment do we want as busness owners in a private busness.
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0 0 There is no point in going to the bars anyway with all the cops out.
They are handing 30 DUI’s out a NIGHT!!!!
If you get pulled over never admit to drinking - don’t take the sobriety test and DO NOT blow no matter what the cop says.
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0 0 Personally I’d rather the police take 30 drunk drivers off the roads every night than risk one of them hitting me, my kids or family and friends.
“There is no point in going to the bars anyway with all the cops out.”
Ever hear of a designated driver?
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0 0 I completely agree with Reader. If you can’t go out to a bar and enjoy a couple of drinks without getting smashed, than you shouldn’t be going out to begin with. Or if you can’t drink responsibly, get a designated driver or call a cab like Reader suggested. I was amazed at how many people stumbled out of the bar & into their cars when I went out the week before last. It’s all fun and games until somebody gets killed.
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0 0 I think 30 DUI’s a night is a little high for what is actually being done, but if it is true, then I am glad also. I don’t like the idea of those people driving drunk on the roads when my loved ones are out. It makes one wonder how many lives might be saved because of the police giving out DUI’s.
I could be wrong, but I was under the impression that if you refuse to take their sobriety tests or blow, you lose your license for 6 months. Is that true?
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0 0 You know, he’s likely a young kid venting and feeling the need to get smashed all the time without interference. So sad! Even in my party college days, I knew better. Although his post has nothing to do with liquor reforms, I hope he looks back on his post (sober) and thinks about how it sounded. Welcome to maturity kid!
I also thought you lost your license automatically, but I’d have to defer to an officer or the court for the right answer.
Hey CR - I thought it was “all fun and games until someone loses an eye!” 
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0 0 If you get pulled over for DUI testing and you refuse all or any of the tests, you are admitting guilt. You will be making it worse on yourself than if you would have complied. You will be arrested and charged with DUI, taken to jail, your vehichle will be impounded, you will lose you license for at leat 6 months, you will spend a minimum of 48 hours in jail but probably more. Your auto insurance will go through the roof and the fines you will have to pay won’t be pretty. This is just the tip of the ice burg. And if you were driving drunk, high, or whatever then shame on you. A sobering fact. The average person that drives under influence averages 80 times before they get caught. And hopefully they are caught before they hurt or kill someone or themselves.
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I think Idaho would experience some liquor market upheavals the first couple years after these changes, then it would stabilize somewhat.
I think we would see more bars overall in Idaho (due to the tourist market), but those bars would be grouped together in distinct areas (districts?) so bar-goers could easily walk between them without driving around.
It’s like coffee shops, the best place for an independent to open a new coffee shop is across the street from Starbucks, so you get their overflow traffic. Right now I would open my bar next to DB’s or downtown.
I think there would also be more bars because bar owners currently make a lot of money on their monopolies, and that money would essentially be spread out a little better across more bar owners.
Idaho isn’t afraid of introducing a little competition into our liquor market, are we?