2011 Utah Code
Title 32B Alcoholic Beverage Control Act
Chapter 2 Alcoholic Beverage Control Administration Act
Section 304 Liquor prices -- School lunch program.

32B-2-304. 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 32B-1-102, "small brewer" means a brewer who manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt beverage.
(2) Except as provided in Subsection (3):
(a) spirituous liquor 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) 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;
(c) 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; and
(d) 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.
(3) (a) Liquor 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.
(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 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 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.
(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 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.
(e) The department shall verify an amount described in Subsection (3)(b) or (c) pursuant to a federal or other verifiable production report.
(4) 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 lunch 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.