Section 1. Section 32B-2-304 is amended to read:32B-2-304Effective 07/01/26. Liquor price -- Remittance of markup -- School lunch program.(1)For purposes of this section:(a)(i)"Landed case cost" means the sum of:(A)the cost of the product; (B)inbound shipping costs the department incurs; and(C)case handling costs the department incurs.(ii)"Landed case cost" does not include the outbound shipping cost from a warehouse of the department to a state store.(b)"Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.(2)Except as provided in Subsections (3) and (4):(a)spirituous liquor sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department;(b)wine sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department;(c)heavy beer sold by the department within the state shall be marked up in an amount not less than 66.5% above the landed case cost to the department; and(d)a flavored malt beverage sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department.(3)(a)Liquor sold by the department to a military installation in Utah shall be marked up in an amount not less than 17% above the landed case cost to the department.(b)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 49% 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.(c)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 49% above the landed case cost to the department if:(i)(A)except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a manufacturer producing less than 20,000 gallons of wine in a calendar year; or(B)for hard cider, the hard cider is manufactured by a manufacturer producing less than 620,000 gallons of hard cider in a calendar year; and(ii)the manufacturer applies to the department for a reduced markup.(d)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 32% 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.(e)The department shall:(i)for purposes of Subsections (3)(b) and (c), calculate the production amount of a manufacturer:(A)by, if the manufacturer is part of a controlled group of manufacturers, including the combined volume totals of spirituous liquor, wine, or cider, as applicable, for all manufacturers that constitute the controlled group of manufacturers; and(B)without considering the manufacturer's production of any other type of alcoholic product; and(ii)verify that a manufacturer meets a production amount described in Subsection (3)(b) or (c) and the production amount of a small brewer under a federal or other verifiable production report.(f)A manufacturer seeking to obtain a reduced markup under Subsection (3)(b), (c), or (d), shall provide to the department any documentation or information the department determines necessary to determine if the manufacturer is part of a controlled group of manufacturers.(g)The department may, at any time, revoke a reduced markup granted to a manufacturer under Subsection (3)(b), (c), or (d), if the department determines the manufacturer no longer qualifies for the reduced markup.(4)Wine the department purchases on behalf of a subscriber through the wine subscription program established in Section 32B-2-702 shall be marked up not less than 88.5% above the cost of the subscription for the interval in which the wine is purchased.(5)(a)The department shall deposit 10% of the total gross revenue from sales of liquor with the state treasurer to be credited to the Uniform School Fund and used to support the school meals program administered by the State Board of Educationthe State Board of Education administers under Section 53E-3-510.(b)The State Board of Education shall use up to 5% of the funds credited to the Uniform School Fund under Subsection (5)(a) to pay the cost of lunch for an eligible student, as that term is defined in Subsection 53F-2-423(1)(b):(i)that does not qualify for reduce-price meals under the National School Lunch Program; and(ii)whose family income is at or below 200% of the federal poverty level.(6)(a)Each month, the department shall collect from each package agency located at a manufacturing facility owned or operated by a person licensed under Chapter 11, Manufacturing and Related Licenses Act, 12.295% of the package agency's reported monthly revenue and deposit the money as follows:(i)1.695% of the reported monthly revenue into the Alcoholic Beverage Control Act Enforcement Fund;(ii)10% of the reported monthly revenue into the Uniform School Fund and used to support the school meals program administered by the State Board of Education under Section 53E-3-510; and(iii)0.60% of the reported monthly revenue into the Underage Drinking Prevention Media and Education Campaign Restricted Account.(b)The department may collect a fee established in accordance with Section 63J-1-504 from a package agency described in this subsection to cover the costs of regulation.(7)This section does not prohibit the department from selling discontinued items at a discount.(8)The Legislature shall annually appropriate to support substance use disorder treatment services, an amount equal to the revenue generated from a 0.5% markup above the landed case cost to the department on spirituous liquor.

Section 2. Section 53E-1-201 is amended to read:53E-1-201Effective 07/01/26Partially Repealed 07/01/27. Reports to and action required of the Education Interim Committee.(1)In accordance with applicable provisions and Section 68-3-14, the following recurring reports are due to the Education Interim Committee:(a)the report described in Section 9-22-109 by the STEM Action Center Board, including the information described in Section 9-22-113 on the status of the computer science initiative and Section 9-22-114 on the Computing Partnerships Grants Program;(b)the prioritized list of data research described in Section 53H-15-303 and the report on research and activities described in Section 53H-15-305 by the Utah Data Research Center;(c)the report described in Section 53H-1-203 by the Utah Board of Higher Education on career and technical education issues and addressing workforce needs;(d)the annual report of the Utah Board of Higher Education described in Section 53H-1-203;(e)the reports described in Section 53H-7-603 by the Utah Board of Higher Education regarding activities related to campus safety;(f)the State Superintendent's Annual Report by the state board described in Section 53E-1-203;(g)the annual report described in Section 53E-2-202 by the state board on the strategic plan to improve student outcomes;(h)the report described in Section 53E-3-501 by the state board on students in an LEA who receive academic credit through the packet method;(i)the report described in Section 53E-8-204 by the state board on the Utah Schools for the Deaf and the Blind;(j)the report described in Section 53E-10-703 by the Utah Leading through Effective, Actionable, and Dynamic Education director on research and other activities;(k)the report described in Section 53F-2-522 regarding mental health screening programs;(l)the report described in Section 53F-4-203 by the state board and the independent evaluator on an evaluation of early interactive reading software;(m)the report described in Section 53F-6-412 by the program manager of the Utah Fits All Scholarship Program;(n)the report described in Section 63N-20-107 by the Governor's Office of Economic Opportunity on UPSTART;(o)the report described in Section 53F-5-215 by the state board related to a grant for an elementary teacher preparation assessment;(p)upon request, the report described in Section 53F-5-219 by the state board on the Local Innovations Civics Education Pilot Program;(q)the report described in Section 53F-5-405 by the state board regarding an evaluation of a partnership that receives a grant to improve educational outcomes for students who are low-income;(r)the report described in Section 53H-1-604 regarding the Higher Education and Corrections Council;(s)the report described in Section 53G-7-221 by the state board regarding innovation plans; and(t)the reports described in Section 53F-6-412 regarding the Utah Fits All Scholarship Program.(2)In accordance with applicable provisions and Section 68-3-14, the following occasional reports are due to the Education Interim Committee:(a)in 2027, 2030, 2033, and 2035, the reports described in Sections 53H-1-502, 53H-1-503, and 53H-1-504;(b)in 2025, the report described in Section 53H-6-203 by a degree-granting institution regarding policies on abusive coaching practices;(c)if required, the report described in Section 53E-4-309 by the state board explaining the reasons for changing the grade level specification for the administration of specific assessments;(d)if required, the report described in Section 53E-5-210 by the state board of an adjustment to the minimum level that demonstrates proficiency for each statewide assessment;(e)the report described in Section 53E-10-702 by Utah Leading through Effective, Actionable, and Dynamic Education;(f)the report described in Section 53F-2-423, by the state board regarding the school meal program;(f)(g)if required, the report described in Section 53F-2-513 by the state board evaluating the effects of salary bonuses on the recruitment and retention of effective teachers in high-poverty schools;(g)(h)upon request, the report described in Section 53F-10-303 by the state board regarding the Rural School Sports Facilities Grant Program;(h)(i)upon request, a report described in Section 53G-7-222 by an LEA regarding expenditure of a percentage of state restricted funds to support an innovative education program;(i)(j)the reports described in Section 53G-11-304 by the state board regarding proposed rules and results related to educator exit surveys; and(j)(k)the report described in Section 26B-5-113 by the Office of Substance Use and Mental Health, the state board, and the Department of Health and Human Services regarding recommendations related to Medicaid reimbursement for school-based health services.(3)In accordance with applicable provisions and Section 68-3-14, every five years the Education Interim Committee shall review the programs described in the following sections of code:(a)beginning July 1, 2027, Title 53E, Chapter 10, Part 3, Concurrent Enrollment;(b)beginning July 1, 2027, Section 53F-2-408, Enhancement for Accelerated Students Program;(c)beginning July 1, 2027, Section 53F-2-409, Concurrent enrollment funding;(d)beginning July 1, 2027, Section 53F-2-415, Student health and counseling support -- Qualifying personnel -- Distribution formula -- Rulemaking;(e)beginning July 1, 2028, Section 53F-2-416, Appropriation and distribution for the Teacher and Student Success Program;(f)beginning July 1, 2028, Section 53F-2-510, Digital Teaching and Learning Grant Program;(g)beginning July 1, 2028, Section 53F-9-306, Teacher and Student Success Account;(h)beginning July 1, 2028, Title 53G, Chapter 7, Part 13, Teacher and Student Success Program; and(i)beginning July 1, 2029, Section 53F-2-502, Dual language immersion.

Section 3. Section 53E-1-202 is amended to read:53E-1-202Effective 07/01/26. Reports to and action required of the Public Education Appropriations Subcommittee.(1)(a)In accordance with applicable provisions and Section 68-3-14, the following recurring reports are due to the Public Education Appropriations Subcommittee:(a)(i)the State Superintendent's Annual Report by the state board described in Section 53E-1-203;(b)(ii)the report described in Section 53E-10-703 by the Utah Leading through Effective, Actionable, and Dynamic Education director on research and other activities; and(c)(iii)the report by the STEM Action Center Board described in Section 9-22-109, including the information described in Section 9-22-113 on the status of the computer science initiative.(b)In accordance with applicable provisions, the state board's report regarding the school meal program described in Section 53F-2-423 is due to the Public Education Appropriations Subcommittee on or before the subcommittee's October 2026 interim meeting.(2)In accordance with applicable provisions, the Public Education Appropriations Subcommittee shall complete, if required, the study described in Section 53F-4-304 of scholarship payments.

Section 4. Section 53F-2-423 is amended to read:53F-2-423Effective 07/01/26. School meal program.(1)As used in this section:(a)"Education model health and wellness policy on nutrition" means state board policy emphasizing that an LEA promote efficient meal scheduling, provide adequate time for eating, and implement practices that help reduce food waste.(b)"Eligible student" means a student enrolled in :(i)enrolled in kindergarten through grade 12 who qualifies for reduced-price meals based on household size and income levels under the National School Lunch Program; or(ii)(A)enrolled at a school participating in the National School Lunch Program, enrolled in kindergarten through grade 6; and(B)whose family income is at or below 200% of the federal poverty level.(c)"National School Lunch Program" means the same as that term is defined in 7 C.F.R. Sec. 210.2.(d)"Share table program" means a system in a school where a student may return unopened, uneaten food or beverages to a designated location for redistribution to other students.(2)An LEA participating in the National School Lunch Program shall provide lunch to an eligible student on a school day at no charge.(3)The state board:(a)shall:(i)except for the eligible students described in Subsection (3)(a)(ii) and subject to legislative appropriations, reimburse an LEA for each reimbursable lunch provided under this section in an amount equal to the difference between the federal reimbursement rates for a meal and a reduced-price meal, as determined annually by the United States Department of Agriculture;(ii)subject to legislative appropriations, reimburse an LEA for each reimbursable lunch an LEA provides to an eligible student described in Subsection (1)(b)(ii) in an amount equal to the lower of the:(A)price the LEA establishes for a paid lunch; or(B)the statewide average price for a paid lunch, as the state board determines annually;(ii)(iii)establish a reimbursement system where the board provides a monthly reimbursement to an LEA that provides a meal under Subsection (2);(iv)on or before the October 2026 interim meetings of the Education Interim Committee and the Public Education Appropriations Subcommittee, report to the Education Interim Committee and the Public Education Appropriations Subcommittee the information the state board receives from each LEA under the report described in Subsection (5)(b); and(iii)(v)accept private donations and grants for the purpose of funding the school meal program described in this section; and(b)may provide guidance and support to a school implementing the food waste prevention strategies described in Subsection (6).(4)An LEA may not:(a)publicly identify or stigmatize a student unable to pay for a meal; or(b)require a student to perform chores to pay for a meal unless the requirement applies equally to all students regardless of whether the student pays for the meal.(5)An LEA shall :(a)on or before October 1, 2026, submit a report to the state board that includes:(i)detailed accounting of any funds the LEA receives from liquor revenues described in Section 32B-2-304;(ii)a description of how the LEA expends liquor revenues, including the specific programs, services, or purposes for which the LEA uses the funds;(iii)the total cost that the LEA incurred to provide meals to students during the 2025-2026 school year; and(iv)the amount of state and local funds that the LEA uses to supplement federal funds for student meals; and(b)direct communications regarding a student's meal debt only to the student's parent.(6)An LEA participating in the National School Lunch Program shall consider, where feasible, reducing food waste by:(a)following the education model health and wellness policy on nutrition; and(b)establishing a share table program.(7)(a)Notwithstanding Subsection (3)(a)(i), if appropriations are insufficient to fully reimburse each LEA for the cost of a reimbursable lunch described in this section, the state board shall distribute the available funds in the fourth quarter of the fiscal year to each LEA on a pro rata basis, not exceeding the available funds.(b)An LEA may ask the parent of an eligible student to cover the remaining cost of a subsidized lunch under this section.(8)Notwithstanding Subsection (2), an LEA or school is exempt from the requirement to provide lunch at no charge under this section if the LEA or school:(a)participates in the federal Community Eligibility Provision, or any other federal program that provides universal free meals to students; or(b)chooses to provide free meals separate from the programs described in Subsection (8)(a).

Section 5. Section 53F-9-204 is amended to read:53F-9-204Effective 07/01/26. Public Education Economic Stabilization Restricted Account.(1)There is created within the Uniform School Fund a restricted account known as the "Public Education Economic Stabilization Restricted Account."(2)(a)Except as provided in Subsection (2)(b), the account shall be funded from the following revenue sources:(i)15% of the difference between, as determined by the Office of the Legislative Fiscal Analyst:(A)the estimated amount of ongoing Income Tax Fund and Uniform School Fund revenue available for the Legislature to appropriate for the next fiscal year; and(B)the amount of ongoing appropriations from the Income Tax Fund and Uniform School Fund in the current fiscal year; and(ii)other appropriations as the Legislature may designate.(b)If the appropriation described in Subsection (2)(a) would cause the ongoing appropriations to the account to exceed 11% of Uniform School Fund appropriations described in Section 53F-9-201.1 for the same fiscal year, the Legislature shall appropriate only those funds necessary to ensure that the ongoing appropriations to the account equal 11% of Uniform School Fund appropriations for that fiscal year.(3)Subject to the availability of ongoing appropriations to the account, in accordance with Utah Constitution, Article X, Section 5, Subsection (4), the ongoing appropriation to the account shall be used to fund:(a)except for a year described in Subsection (3)(b) or (c), one-time appropriations to the public education system, including :(i)at least $65,000,000 to the Catalyst Center Grant Program described in Section 53E-3-507.1; and(ii)if the liquor revenue described in Subsection 53F-2-423(5)(b) is insufficient to cover the costs of the school meal program described in Section 53F-2-423, up to $5,000,000 to cover the costs associated with the school meal program;(b)the Minimum School Program for a year in which Income Tax Fund revenue and Uniform School Fund revenue are insufficient to fund:(i)ongoing appropriations to the public education system; and(ii)enrollment growth and inflation estimates, as defined in Section 53F-9-201.1; and(c)the minimum basic local amount as defined in Section 53F-2-301 for a year in which the minimum basic tax rate, as defined in Section 53F-2-301, is insufficient to generate the amount described in Subsection 53F-2-301(2)(a).(4)(a)The account shall earn interest.(b)All interest earned on account money shall be deposited in the account.(5)On or before December 31, 2023, and every three years thereafter, the Office of the Legislative Fiscal Analyst shall:(a)review the percentages described in Subsections (2)(a)(i) and (2)(b); and(b)recommend to the Executive Appropriations Committee any changes based on the review described in Subsection (5)(a).(6)In preparing budget bills for a given fiscal year, the Executive Appropriations Committee shall make the one-time appropriations described in Subsection (3)(a) by appropriating at least the lesser of 10% of the total amount of the one-time appropriations to:(a)the cost of providing 32 paid professional hours for teachers in accordance with Section 53F-7-203;(b)the amount to make the distribution required under Section 53F-2-527;(c)the cost of the Stipends for Future Educators Grant Program described in Section 53F-5-223; and(d)the cost of the Rural School Sports Facilities Grant Program described in Section 53F-10-303.(7)No later than October 15 of each year, the state board shall report to the Office of the Legislative Fiscal Analyst an estimated cost for each of the one-time appropriations described in Subsection (6).

Section 6. Section 63I-2-253 is amended to read:63I-2-253Effective 07/01/26. Repeal dates: Titles 53 through 53G.(1)Title 53, Chapter 2c, COVID-19 Health and Economic Response Act, is repealed July 1, 2026.(2)Section 53-22-104.1, School Security Task Force -- Membership -- Duties -- Per diem -- Report -- Expiration, is repealed December 31, 2025.(3)Section 53-22-104.2, The School Security Task Force -- Education Advisory Board, is repealed December 31, 2025.(4)Section 53-25-103, Airport dangerous weapon possession reporting requirements, is repealed December 31, 2031.(5)Subsection 53-25-602(4)(b), regarding the rights of a peace officer placed onto a prosecution agency's Brady identification system before May 7, 2025, is repealed December 1, 2025.(6)Subsection 53-29-302(2)(b)(ii), regarding the requirement for the Department of Corrections to submit the results of risk assessments for sex offenders to the State Commission on Criminal and Juvenile Justice, is repealed January 1, 2030.(7)Subsection 53E-1-201(2)(f), regarding a report on the school meals program, is repealed July 1, 2027.(8)Subsection 53E-1-202(1)(b), regarding a report on the school meals program, is repealed July 1, 2027.(7)(9)Subsection 53E-3-501(7)(e)(ii), regarding a report on the packet method, is repealed July 1, 2028.(10)Subsections 53F-2-423(3)(a)(iii) and (5)(a), regarding a report on the school meals program, is repealed July 1, 2027.(8)(11)Subsection 53F-2-504(6), regarding a report on the Salary Supplement for Highly Needed Educators, is repealed July 1, 2026.(9)(12)Section 53F-5-221, Management of energy and water use pilot program, is repealed July 1, 2028.(10)(13)Section 53F-5-222, Mentoring and Supporting Teacher Excellence and Refinement Pilot Program, is repealed July 1, 2028.(11)(14)Section 53F-5-223, Stipends for Future Educators Grant Program, is repealed July 1, 2028.(12)(15)Subsection 53G-11-502(1), regarding implementation of the educator evaluation process, is repealed July 1, 2029.(13)(16)Section 53G-11-506, Establishment of educator evaluation program -- Joint committee, is repealed July 1, 2029.(14)(17)Section 53G-11-507, Components of educator evaluation program, is repealed July 1, 2029.(15)(18)Section 53G-11-508, Summative evaluation timelines -- Review of summative evaluations, is repealed July 1, 2029.(16)(19)Section 53G-11-509, Mentor for provisional educator, is repealed July 1, 2029.(17)(20)Section 53G-11-510, State board to describe a framework for the evaluation of educators, is repealed July 1, 2029.(18)(21)Section 53G-11-511, Rulemaking for privacy protection, is repealed July 1, 2029.(19)(22)Subsection 53G-11-520(1), regarding optional alternative educator evaluation processes, is repealed July 1, 2029.(20)(23)Subsection 53G-11-520(2), regarding an exception from educator evaluation process requirements, is repealed July 1, 2029.

Section 7. Effective Date.This bill takes effect on July 1, 2026.