32B-2-304 (Effective 07/01/11) - Liquor prices -- School lunch program.
32B-2-304 (Effective 07/01/11). 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 ofthe department to a state store.
(b) "Proof gallon" has the same meaning as in 26 U.S.C. Sec. 5002.
(c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer whomanufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored maltbeverage.
(2) Except as provided in Subsection (3):
(a) spirituous liquor sold by the department within the state shall be marked up in anamount not less than 86% 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 lessthan 86% above the landed case cost to the department;
(c) heavy beer sold by the department within the state shall be marked up in an amountnot less than 64.5% above the landed case cost to the department; and
(d) a flavored malt beverage sold by the department within the state shall be marked upin an amount not less than 86% above the landed case cost to the department.
(3) (a) Liquor sold by the department to a military installation in Utah shall be marked upin an amount not less than 15% 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 47% above thelanded case cost to the department if:
(i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000proof 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 issold by the department within the state shall be marked up 47% above the landed case cost to thedepartment if:
(i) the wine is manufactured by a manufacturer producing less than 20,000 gallons ofwine 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, heavybeer that is sold by the department within the state shall be marked up 30% above the landed casecost 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 verify an amount described in Subsection (3)(b) or (c) pursuantto a federal or other verifiable production report.
(4) The department shall deposit 10% of the total gross revenue from sales of liquor withthe state treasurer to be credited to the Uniform School Fund and used to support the schoollunch program administered by the State Board of Education under Section 53A-19-201.
(5) This section does not prohibit the department from selling discontinued items at a
discount.
Enacted by Chapter 276, 2010 General Session