Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 16 First Substitute (2020GS)

Sponsor

Rep. Johnson, D.N.

Final action

Governor Signed 3/24/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends provisions to broaden the use of school lunch revenues to school meals; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SCHOOL MEALS PROGRAM AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Dan N. Johnson
Senate Sponsor: 
Lyle W. Hillyard
LONG TITLE
General Description:
This bill amends provisions related to funding regarding school meals.
Highlighted Provisions:
This bill:
▸ amends provisions to broaden the use of school lunch revenues to school meals; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
32B-2-304
, as last amended by Laws of Utah 2019, Chapter 403
53E-3-510
, as last amended by Laws of Utah 2019, Chapter 186
53G-9-205
, as last amended by Laws of Utah 2019, Chapter 293
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
32B-2-304
 is amended to read:
32B-2-304.
Liquor price -- School lunch program -- Remittance of markup.
(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" means the same as that term is defined 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 88% 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% 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% 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 verify an amount described in Subsection (3)(b), (c), or (d)
pursuant to a federal or other verifiable production report.
(f) For purposes of determining whether an alcoholic product qualifies for a markup
under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
applicable production requirement without considering the manufacturer's production of any
other type of alcoholic product.
(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
] 
meals
 program administered by the State Board of Education under Section
53E-3-510
.
(5) This section does not prohibit the department from selling discontinued items at a
discount.
Section 2. Section 
53E-3-510
 is amended to read:
53E-3-510.
Control of school meals program revenues -- Apportionment -- Costs.
(1) 
(a)
 School [
lunch
] 
meals program
 revenues shall be under the control of the state
board and may only be disbursed, transferred, or drawn upon by [
its
] 
the state board's
 order.
(b)
 The [
revenue
] 
school meals program revenues
 may only be used to provide school
[
lunches
] 
meals
 and a school [
lunch
] 
meals
 program in the state's [
school districts
] 
LEAs
 in
accordance with standards established by the state board.
(2) 
(a)
 The state board shall apportion the [
revenue
] 
school meals program revenues
according to the number of school children receiving school [
lunches
] 
meals
 in each [
school
district
] 
LEA
.
(b)
 The state board and [
local school
] 
LEA governing
 boards shall employ staff to
administer and supervise the school [
lunch
] 
meals
 program and purchase supplies and
equipment.
(3) The costs of the school [
lunch
] 
meals
 program shall be included in the state board's
annual budget.
Section 3. Section 
53G-9-205
 is amended to read:
53G-9-205.
School Breakfast Program -- Review of nonparticipants -- Reporting.
(1) (a) [
Each local school
] 
Beginning with the 2020-21 academic year, each LEA
governing
 board shall[
, at least once every three years,
] 
annually
 review each [
elementary
]
school in [
its district
] 
the LEA governing board's authority
 that does not participate in the
School Breakfast Program as to the school's reasons for nonparticipation.
[
(b) (i) If the local school board determines that there are valid reasons for the school's
nonparticipation, no further action is needed.
]
[
(ii)
] 
(b)
 Reasons for nonparticipation may include a recommendation from the
respective
 school community council authorized under Section 
53G-7-1202
 or [
a similar group
of parents and school employees that the school should not participate in the program
] 
charter
trust land council established under Section 
53G-7-1205
.
[
(2) (a) After two nonparticipation reviews, a local school board may, by majority vote,
waive any further reviews of the nonparticipatory school.
]
[
(b) A waiver of the review process under Subsection (2)(a) does not prohibit
subsequent consideration by the local school board of an individual school's nonparticipation in
the School Breakfast Program.
]
[
(3)
] 
(2)
 The requirements of this section shall be nullified by the termination of the
entitlement status of the School Breakfast Program by the federal government.