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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to funding regarding school meals.
10 Highlighted Provisions:
11 This bill:
12 ▸ amends provisions to broaden the use of school lunch revenues to school meals; and
13 ▸ makes technical and conforming changes.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 32B-2-304, as last amended by Laws of Utah 2019, Chapter 403
21 53E-3-510, as last amended by Laws of Utah 2019, Chapter 186
22 53G-9-205, as last amended by Laws of Utah 2019, Chapter 293
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 32B-2-304 is amended to read:
26 32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
27 (1) For purposes of this section:
28 (a) (i) "Landed case cost" means:
29 (A) the cost of the product; and
30 (B) inbound shipping costs incurred by the department.
31 (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
32 of the department to a state store.
33 (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
34 (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
35 manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
36 beverage.
37 (2) Except as provided in Subsection (3):
38 (a) spirituous liquor sold by the department within the state shall be marked up in an
39 amount not less than 88% above the landed case cost to the department;
40 (b) wine sold by the department within the state shall be marked up in an amount not
41 less than 88% above the landed case cost to the department;
42 (c) heavy beer sold by the department within the state shall be marked up in an amount
43 not less than 66.5% above the landed case cost to the department; and
44 (d) a flavored malt beverage sold by the department within the state shall be marked up
45 in an amount not less than 88% above the landed case cost to the department.
46 (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
47 up in an amount not less than 17% above the landed case cost to the department.
48 (b) Except for spirituous liquor sold by the department to a military installation in
49 Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
50 above the landed case cost to the department if:
51 (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
52 proof gallons of spirituous liquor in a calendar year; and
53 (ii) the manufacturer applies to the department for a reduced markup.
54 (c) Except for wine sold by the department to a military installation in Utah, wine that
55 is sold by the department within the state shall be marked up 49% above the landed case cost to
56 the department if:
57 (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
58 manufacturer producing less than 20,000 gallons of wine in a calendar year; or
59 (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
60 than 620,000 gallons of hard cider in a calendar year; and
61 (ii) the manufacturer applies to the department for a reduced markup.
62 (d) Except for heavy beer sold by the department to a military installation in Utah,
63 heavy beer that is sold by the department within the state shall be marked up 32% above the
64 landed case cost to the department if:
65 (i) a small brewer manufactures the heavy beer; and
66 (ii) the small brewer applies to the department for a reduced markup.
67 (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
68 pursuant to a federal or other verifiable production report.
69 (f) For purposes of determining whether an alcoholic product qualifies for a markup
70 under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
71 applicable production requirement without considering the manufacturer's production of any
72 other type of alcoholic product.
73 (4) The department shall deposit 10% of the total gross revenue from sales of liquor
74 with the state treasurer to be credited to the Uniform School Fund and used to support the
75 school [
76 53E-3-510.
77 (5) This section does not prohibit the department from selling discontinued items at a
78 discount.
79 Section 2. Section 53E-3-510 is amended to read:
80 53E-3-510. Control of school meals program revenues -- Apportionment -- Costs.
81 (1) (a) School [
82 board and may only be disbursed, transferred, or drawn upon by [
83 (b) The [
84 [
85 accordance with standards established by the state board.
86 (2) (a) The state board shall apportion the [
87 according to the number of school children receiving school [
88
89 (b) The state board and [
90 administer and supervise the school [
91 equipment.
92 (3) The costs of the school [
93 annual budget.
94 Section 3. Section 53G-9-205 is amended to read:
95 53G-9-205. School Breakfast Program -- Review of nonparticipants -- Reporting.
96 (1) (a) [
97 governing board shall[
98 school in [
99 School Breakfast Program as to the school's reasons for nonparticipation.
100 [
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102 [
103 respective school community council authorized under Section 53G-7-1202 or [
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105 trust land council established under Section 53G-7-1205.
106 [
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108 [
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111 [
112 entitlement status of the School Breakfast Program by the federal government.