1     
ALCOHOLIC BEVERAGE CONTROL RETAIL STORE

2     
AMENDMENTS

3     
2021 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Gene Davis

6     
House Sponsor: Timothy D. Hawkes

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8     LONG TITLE
9     General Description:
10          This bill amends the Alcoholic Beverage Control Act regarding financing.
11     Highlighted Provisions:
12          This bill:
13          ▸     amends what is included in the Department of Alcoholic Beverage Control's base
14     budget.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          32B-2-301, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
22          63J-1-602.2, as last amended by Laws of Utah 2020, Fifth Special Session, Chapters 20
23     and 20
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 32B-2-301 is amended to read:
27          32B-2-301. State property -- Liquor Control Fund -- Money to be retained by
28     department -- Department building process.
29          (1) As used in this section, "base budget" means the same as that term is defined in
30     legislative rule.
31          (2) 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)] (3) (a) There is created an enterprise fund known as the "Liquor Control Fund."
36          (b) Except as provided in Section 32B-2-304, the department shall deposit the
37     following into the Liquor Control Fund:
38          (i) money received in the administration of this title;
39          (ii) money received from the markup described in Section 32B-2-304; and
40          (iii) money credited under Subsection [(3)] (4).
41          (c) The department may draw from the Liquor Control Fund only to the extent
42     appropriated by the Legislature or provided by statute.
43          (d) The net position of the Liquor Control Fund may not fall below zero.
44          [(3)] (4) (a) The department shall deposit 0.125% of the total gross revenue from the
45     sale of liquor with the state treasurer to be credited to the Liquor Control Fund.
46          (b) The department shall deposit 0.27% of the total gross revenue from the sale of
47     liquor with the state treasurer, as determined by the total gross revenue collected for the fiscal
48     year two years preceding the fiscal year for which the deposit is made, to be credited to the
49     Liquor Control Fund.
50          [(4)] (5) (a) Notwithstanding Subsection [(2)] (3)(c), the department may draw by
51     warrant from the Liquor Control Fund without an appropriation for an expenditure that is
52     directly incurred by the department:
53          (i) to purchase an alcoholic product;
54          (ii) to transport an alcoholic product from the supplier to a warehouse of the
55     department; or
56          (iii) for variances related to an alcoholic product, including breakage or theft.
57          (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
58     department draws against the Liquor Control Fund, to the extent necessary to cover the
59     warrant, the cash resources of the General Fund may be used.
60          [(5) (a) As used in this Subsection (5), "base budget" means the same as that term is
61     defined in legislative rule.]
62          [(b)] (6) The department's base budget shall include as an appropriation from the
63     Liquor Control Fund:
64          [(i)] (a) credit card related fees paid by the department;
65          [(ii)] (b) package agency compensation; [and]
66          [(iii)] (c) the department's costs of shipping and warehousing alcoholic products[.]; and
67          (d) the amount needed, as the Department of Human Resource Management
68     determines, to make the median department salary in the previous fiscal year equal the median
69     market salary in the previous fiscal year for the following positions:
70          (i) state store manager or equivalent;
71          (ii) state store assistant manager or equivalent;
72          (iii) full-time sales clerk at a state store or equivalent;
73          (iv) part-time sales clerk at a state store or equivalent;
74          (v) department warehouse manager or equivalent;
75          (vi) department warehouse assistant manager or equivalent;
76          (vii) full-time department warehouse worker or equivalent; and
77          (viii) part-time department warehouse worker or equivalent.
78          [(6)] (7) (a) The Division of Finance shall transfer annually from the Liquor Control
79     Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
80     since the preceding transfer of money under this Subsection [(6)] (7).
81          (b) After each fiscal year, the Division of Finance shall calculate the amount for the
82     transfer on or before September 1 and the Division of Finance shall make the transfer on or
83     before September 30.
84          (c) The Division of Finance may make year-end closing entries in the Liquor Control
85     Fund to comply with Subsection 51-5-6(2).
86          [(7)] (8) (a) By the end of each day, the department shall:
87          (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and
88          (ii) report the deposit to the state treasurer.
89          (b) A commissioner or department employee is not personally liable for a loss caused
90     by the default or failure of a qualified depository.
91          (c) Money deposited in a qualified depository is entitled to the same priority of
92     payment as other public funds of the state.
93          [(8)] (9) Before the Division of Finance makes the transfer described in Subsection
94     [(6)] (7), the department may retain each fiscal year from the Liquor Control Fund $1,000,000
95     that the department may use for:
96          (a) capital equipment purchases;
97          (b) salary increases for department employees;
98          (c) performance awards for department employees; or
99          (d) information technology enhancements because of changes or trends in technology.
100          Section 2. Section 63J-1-602.2 is amended to read:
101          63J-1-602.2. List of nonlapsing appropriations to programs.
102          Appropriations made to the following programs are nonlapsing:
103          (1) The Legislature and the Legislature's committees.
104          (2) The State Board of Education, including all appropriations to agencies, line items,
105     and programs under the jurisdiction of the State Board of Education, in accordance with
106     Section 53F-9-103.
107          (3) The Percent-for-Art Program created in Section 9-6-404.
108          (4) The LeRay McAllister Critical Land Conservation Program created in Section
109     11-38-301.
110          (5) Dedicated credits accrued to the Utah Marriage Commission as provided under
111     Subsection 17-16-21(2)(d)(ii).
112          (6) The Trip Reduction Program created in Section 19-2a-104.
113          (7) The Division of Wildlife Resources for the appraisal and purchase of lands under
114     the Pelican Management Act, as provided in Section 23-21a-6.
115          (8) The emergency medical services grant program in Section 26-8a-207.
116          (9) The primary care grant program created in Section 26-10b-102.
117          (10) Sanctions collected as dedicated credits from Medicaid provider under Subsection
118     26-18-3(7).
119          (11) The Utah Health Care Workforce Financial Assistance Program created in Section
120     26-46-102.
121          (12) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
122          (13) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
123          (14) Funds that the Department of Alcoholic Beverage Control retains in accordance
124     with Subsection [32B-2-301(8)(a)] 32B-2-301(9)(a) or (b).
125          (15) The General Assistance program administered by the Department of Workforce
126     Services, as provided in Section 35A-3-401.
127          (16) A new program or agency that is designated as nonlapsing under Section
128     36-24-101.
129          (17) The Utah National Guard, created in Title 39, Militia and Armories.
130          (18) The State Tax Commission under Section 41-1a-1201 for the:
131          (a) purchase and distribution of license plates and decals; and
132          (b) administration and enforcement of motor vehicle registration requirements.
133          (19) The Search and Rescue Financial Assistance Program, as provided in Section
134     53-2a-1102.
135          (20) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
136          (21) The Utah Board of Higher Education for teacher preparation programs, as
137     provided in Section 53B-6-104.
138          (22) The Medical Education Program administered by the Medical Education Council,
139     as provided in Section 53B-24-202.
140          (23) The Division of Services for People with Disabilities, as provided in Section
141     62A-5-102.
142          (24) The Division of Fleet Operations for the purpose of upgrading underground
143     storage tanks under Section 63A-9-401.
144          (25) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
145          (26) Appropriations to the Department of Technology Services for technology
146     innovation as provided under Section 63F-4-202.
147          (27) The Office of Administrative Rules for publishing, as provided in Section
148     63G-3-402.
149          (28) The Governor's Office of Economic Development to fund the Enterprise Zone
150     Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
151          (29) Appropriations to fund the Governor's Office of Economic Development's Rural
152     Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
153     Employment Expansion Program.
154          (30) Appropriations to fund programs for the Jordan River Recreation Area as
155     described in Section 65A-2-8.
156          (31) The Department of Human Resource Management user training program, as
157     provided in Section 67-19-6.
158          (32) A public safety answering point's emergency telecommunications service fund, as
159     provided in Section 69-2-301.
160          (33) The Traffic Noise Abatement Program created in Section 72-6-112.
161          (34) The Judicial Council for compensation for special prosecutors, as provided in
162     Section 77-10a-19.
163          (35) A state rehabilitative employment program, as provided in Section 78A-6-210.
164          (36) The Utah Geological Survey, as provided in Section 79-3-401.
165          (37) The Bonneville Shoreline Trail Program created under Section 79-5-503.
166          (38) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
167     78B-6-144.5.
168          (39) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
169     Defense Commission.
170          (40) The program established by the Division of Facilities Construction and
171     Management under Section 63A-5b-703 under which state agencies receive an appropriation
172     and pay lease payments for the use and occupancy of buildings owned by the Division of
173     Facilities Construction and Management.