32A-1-122. Liquor prices -- School lunch program.
(1) For purposes of this section:
(a) (i) "Landed case cost" means:
(A) the cost of the product; and
(B) inbound shipping costs incurred by the department.
(ii) "Landed case cost" does not include the outbound shipping cost from a warehouse of
the department to a state store.
(b) "Proof gallon" has the same meaning as in 26 U.S.C. Sec. 5002.
(c) Notwithstanding Section 32A-1-105, "small brewer" means a brewer who
manufactures less than 40,000 barrels of beer and heavy beer per year.
(2) (a) Except as provided in Subsections (2)(b) and (4), spirituous liquor and wine sold
by the department within the state shall be marked up in an amount not less than 86% above the
landed case cost to the department.
(b) Spirituous liquor and wine sold by the department to a military installation in Utah
shall be marked up in an amount not less than 15% above the landed case cost to the department.
(3) (a) Except as provided in Subsections (3)(b) and (4), heavy beer sold by the
department within the state shall be marked up in an amount not less than 64.5% above the
landed case cost to the department.
(b) Heavy beer sold by the department to a military installation in Utah shall be marked
up in an amount not less than 15% above the landed case cost to the department.
(4) (a) Except for spirituous liquor sold by the department to a military installation in
Utah, spirituous liquor that is sold by the department within the state shall be marked up 47%
above the landed case cost to the department if:
(i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
proof gallons of spirituous liquor in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(b) Except for wine sold by the department to a military installation in Utah, wine that is
sold by the department within the state shall be marked up 47% above the landed case cost to the
department if:
(i) the wine is manufactured by a manufacturer producing less than 20,000 gallons of
wine in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(c) Except for heavy beer sold by the department to a military installation in Utah, heavy
beer that is sold by the department within the state shall be marked up 30% above the landed case
cost to the department if:
(i) a small brewer manufactures the heavy beer; and
(ii) the small brewer applies to the department for a reduced markup.
(d) The department shall verify an amount described in Subsection (4)(a) or (b) pursuant
to a federal or other verifiable production report.
(5) (a) Except as provided in Subsection (5)(b), a flavored malt beverage sold by the
department within the state shall be marked up in an amount not less than 86% above the landed
case cost to the department.
(b) A flavored malt beverage sold by the department to a military installation in Utah
shall be marked up in an amount not less than 15% above the landed case cost to the department.
(6) Ten percent of the total gross revenue from sales of spirituous liquor, wine, heavy
beer, and flavored malt beverages shall be deposited by the department with the state treasurer
and credited to the Uniform School Fund to be used to support the school lunch program
administered by the State Board of Education under Section 53A-19-201.
(7) Nothing in this section prohibits the department from selling discontinued items at a
discount.
Amended by Chapter 98, 2008 General Session
Amended by Chapter 391, 2008 General Session
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Last revised: Thursday, May 28, 2009