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H.B. 228





Chief Sponsor: Ryan D. Wilcox

Senate Sponsor: John L. Valentine

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act to address issues related to the
             10      regulation of alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    requires that money be appropriated by the Legislature or provided by statute for the
             15      department to draw from the Liquor Control Fund or the Markup Holding Fund
             16      with limited exceptions;
             17          .    clarifies who makes warrants on the funds;
             18          .    provides for Division of Finance to make year-end closing entries; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          32B-2-301, as last amended by Laws of Utah 2012, Chapter 357

             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 32B-2-301 is amended to read:
             30           32B-2-301. State property -- Liquor Control Fund -- Markup Holding Fund.
             31          (1) The following are property of the state:
             32          (a) the money received in the administration of this title, except as otherwise provided;
             33      and
             34          (b) property acquired, administered, possessed, or received by the department.
             35          (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
             36          (b) Except as provided in Sections 32B-3-205 and 32B-2-304 , money received in the
             37      administration of this title shall be transferred to the Liquor Control Fund.
             38          (3) (a) There is created an enterprise fund known as the "Markup Holding Fund."
             39          (b) In accordance with Section 32B-2-304 , the State Tax Commission shall deposit
             40      revenue remitted to the State Tax Commission from the markup imposed under Section
             41      32B-2-304 into the Markup Holding Fund.
             42          (c) Money deposited into the Markup Holding Fund may be expended:
             43          (i) to the extent appropriated by the Legislature; and
             44          (ii) to fund the deposits required by Subsection 32B-2-304 (4) and Subsection
             45      32B-2-305 (4).
             46          (4) (a) [The state treasurer] Subject to Subsection (4)(b), the department shall by
             47      warrant draw from the Liquor Control Fund and[, to the extent appropriated by the
             48      Legislature,] from the Markup Holding Fund[,] the expenses, debts, and liabilities incurred by
             49      the department in connection with the administration of this title or any other expense
             50      necessary for the administration of this title[, including:].
             51          [(a) salaries;]
             52          [(b) premiums, if any, on a bond for which the department pays premiums; and]
             53          [(c) an expenditure incurred in establishing, operating, or maintaining a state store or
             54      package agency.]
             55          (b) The department may draw from the Liquor Control Fund or the Markup Holding
             56      Fund only to the extent appropriated by the Legislature or provided for by statute, except that
             57      the department may draw by warrant without an appropriation from the Liquor Control Fund or
             58      Markup Holding Fund for an expenditure that is directly incurred by the department:

             59          (i) to purchase an alcoholic product;
             60          (ii) to transport an alcoholic product from the supplier to a warehouse of the
             61      department; and
             62          (iii) for variances related to an alcoholic product.
             63          (5) The department shall transfer annually from the Liquor Control Fund and the State
             64      Tax Commission shall transfer annually from the Markup Holding Fund to the General Fund a
             65      sum equal to the amount of net profit earned from the sale of liquor since the preceding transfer
             66      of money under this Subsection (5). The transfers shall be calculated by no later than
             67      September 1 and made by no later than September 30 after a fiscal year. The Division of
             68      Finance may make year-end closing entries in the Liquor Control Fund and the Markup
             69      Holding Fund in order to comply with Subsection 51-5-6 (2).
             70          (6) (a) By the end of each day, the department shall:
             71          (i) make a deposit to a qualified depository, as defined in Section 51-7-3 ; and
             72          (ii) report the deposit to the state treasurer.
             73          (b) A commissioner or department employee is not personally liable for a loss caused
             74      by the default or failure of a qualified depository.
             75          (c) Money deposited in a qualified depository is entitled to the same priority of
             76      payment as other public funds of the state.
             77          (7) If the cash balance of the Liquor Control Fund is not adequate to cover a warrant
             78      drawn against the Liquor Control Fund by the [state treasurer] department, the cash resources
             79      of the General Fund may be used to the extent necessary. At no time may the fund equity of
             80      the Liquor Control Fund fall below zero.

Legislative Review Note
    as of 2-5-13 5:19 PM

Office of Legislative Research and General Counsel

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