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Fiscal Matters

Utah Code tit. 32B, ch. 32B-2, pt. 32B-2-P3
in effect

Utah Code § 32B-2-301 State property -- Liquor Control Fund -- Money to be retained by department -- Department building process.

32B-2-301. State property -- Liquor Control Fund -- Money to be retained by department -- Department building process. (1) As used in this section, "base budget" means the same as that term is defined in legislative rule. (2) The following are property of the state: (a) the money received in the administration of this title, except as otherwise provided; and (b) property acquired, administered, possessed, or received by the department. (3) (a) There is created an enterprise fund known as the "Liquor Control Fund." (b) Except as provided in Sections 32B-2-304, 32B-2-305, and 32B-2-306, the department shall deposit the following into the Liquor Control Fund: (i) money received in the administration of this title; and (ii) money received from the markup described in Section 32B-2-304. (c) The department may draw from the Liquor Control Fund only to the extent appropriated by the Legislature or provided by statute. (d) The net position of the Liquor Control Fund may not fall below zero. (4) (a) Notwithstanding Subsection (3)(c), the department may draw by warrant from the Liquor Control Fund without an appropriation for an expenditure that is directly incurred by the department: (i) to purchase an alcoholic product; (ii) to transport an alcoholic product from the supplier to a warehouse of the department; or (iii) for variances related to an alcoholic product, including breakage or theft. (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the department draws against the Liquor Control Fund, to the extent necessary to cover the warrant, the cash resources of the General Fund may be used. (5) The department's base budget shall include as an appropriation from the Liquor Control Fund: (a) credit card related fees paid by the department; (b) package agency compensation; (c) the department's costs of shipping and warehousing alcoholic products; and (d) the amount needed, as the Division of Human Resource Management determines, to make the median department salary in the previous fiscal year equal the median market salary in the previous fiscal year for the following positions: (i) state store manager or equivalent; (ii) state store assistant manager or equivalent; (iii) full-time sales clerk at a state store or equivalent; (iv) part-time sales clerk at a state store or equivalent; (v) department warehouse manager or equivalent; (vi) department warehouse assistant manager or equivalent; (vii) full-time department warehouse worker or equivalent; and (viii) part-time department warehouse worker or equivalent. (6) (a) The Division of Finance shall transfer annually from the Liquor Control Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor since the preceding transfer of money under this Subsection (6), adjusted for amounts needed for cash operations. (b) After each fiscal year, the Division of Finance shall transfer the amount calculated under Subsection (6)(a) on or before September 30. (c) The Division of Finance may make year-end closing entries in the Liquor Control Fund to comply with Subsection 51-5-6(2). (7) (a) By the end of each day, the department shall: (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and (ii) report the deposit to the state treasurer. (b) A commissioner or department employee is not personally liable for a loss caused by the default or failure of a qualified depository. (c) Money deposited in a qualified depository is entitled to the same priority of payment as other public funds of the state. (8) Before the Division of Finance makes the transfer described in Subsection (6), the department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the department may use for: (a) capital equipment purchases; (b) salary increases for department employees; (c) performance awards for department employees; or (d) information technology enhancements because of changes or trends in technology. Amended by Chapter 167, 2025 General Session

Utah Code § 32B-2-302 Exempt from Division of Finance -- Application of procurement -- External audits.

32B-2-302. Exempt from Division of Finance -- Application of procurement -- External audits. (1) (a) The laws that govern the Division of Finance are not applicable to the department in the purchase and sale of an alcoholic product. (b) The department is exempt from Title 63G, Chapter 6a, Utah Procurement Code, for the purchase of an alcoholic product. The department is subject to Title 63G, Chapter 6a, Utah Procurement Code, for any purchase other than for an alcoholic product. (2) The state auditor shall: (a) annually perform a financial audit of the department's accounts; and (b) determine the scope and focus of the financial audit in an open meeting of the commission before the audit commences. (3) Every two years, beginning for fiscal year 2013-14, the state auditor shall conduct an audit of the department's: (a) management operations, best practices, and efficiency; and (b) ethics and statutory compliance. (4) In addition to complying with Subsections (2) and (3), the state auditor may engage in an activity related to the department or commission allowed under Utah Constitution, Article VII, Section 15 or Title 67, Chapter 3, Auditor. (5) The state auditor shall forward an audit report issued under Subsection (2) or (3) to the following by no later than 30 days after the day on which the audit report is made: (a) the governor; (b) the Legislative Management Committee; (c) the director; and (d) the legislative auditor general. Amended by Chapter 349, 2013 General Session

Utah Code § 32B-2-302.5 Internal audits.

32B-2-302.5. Internal audits. (1) In accordance with Title 63I, Chapter 5, Utah Internal Audit Act, the department shall conduct various types of auditing procedures through an internal audit division. (2) The internal audit division: (a) is placed directly under the director of the department; (b) shall report directly to the director of the department; and (c) is responsible for: (i) conducting and verifying each internal audit and review within the department; and (ii) implementing audit procedures that meet or exceed generally accepted auditing standards. (3) The chair of the commission or the commission may: (a) propose internal auditing policies; or (b) recommend or make additions or modifications to the internal audit division's annual internal audit plan. (4) Subject to this section, the director of the internal audit division shall have the powers and duties described in Section 63I-5-401 or any other duty prescribed by the chair of the commission or the director of the department. (5) (a) Once an internal audit is completed, the internal audit director shall provide an internal audit report to the director, the chair of the commission, and the other commissioners. (b) Within five business days of receipt of the internal audit, the director shall prepare a written response and deliver it to the chair of the commission and the other commissioners. (c) Within 120 calendar days after the day on which the director of the department receives an internal audit under Subsection (5)(a), the director of the department shall prepare a report to the chair of the commission and other commissioners describing: (i) steps taken to implement the recommendations of the internal audit; or (ii) a detailed explanation of why recommendations have not been implemented. (d) After receiving a response or report under this Subsection (5), the chair of the commission or the commission may request that the director of the department or the director of the internal audit division provide additional information regarding the audit findings. (e) The director of the department shall make a response or report described in Subsections (5)(a) through (c) available to the following upon request: (i) the governor; (ii) the legislative auditor general; and (iii) the Legislative Management Committee. Amended by Chapter 39, 2026 General Session

Utah Code § 32B-2-303 Purchase of liquor.

32B-2-303. Purchase of liquor. (1) The department may only: (a) purchase or stock spirituous liquor in a container smaller than 200 milliliters for the purpose of furnishing the spirituous liquor to a public service permittee issued a permit under Chapter 10, Part 3, Public Service Permit; and (b) furnish spirituous liquor in a container smaller than 200 milliliters to a public service permittee issued a permit under Chapter 10, Part 3, Public Service Permit. (2) (a) An order by the department for the purchase of liquor, or a cancellation by the department of an order of liquor: (i) shall be executed in writing by the department; and (ii) is not valid or binding unless executed in writing. (b) The department shall maintain a copy of an order or cancellation on file for at least three years. (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46, Chapter 4, Uniform Electronic Transactions Act. Amended by Chapter 371, 2023 General Session

Utah Code § 32B-2-304 Liquor price -- Remittance of markup -- School lunch program.

32B-2-304. 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), (4), and (7): (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) 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 Education under Section 53E-3-510. (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: (a) selling discontinued items at a discount; or (b) rounding the price of liquor in accordance with Section 32B-2-213. (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. Amended by Chapter 39, 2026 General Session

Utah Code § 32B-2-305 Alcoholic Beverage Control Act Enforcement Fund.

32B-2-305. Alcoholic Beverage Control Act Enforcement Fund. (1) As used in this section: (a) "Alcohol-related law enforcement officer" means the same as that term is defined in Section 32B-1-201. (b) "Drug-related law enforcement officer" means a law enforcement officer employed by the Department of Public Safety who has enforcement of drug-related offenses as a primary responsibility. (c) "Enforcement ratio" means the same as that term is defined in Section 32B-1-201. (d) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in this section. (e) "SBI drug-related law enforcement officer" means a law enforcement officer employed by the State Bureau of Investigation within the Department of Public Safety who has investigation of drug-related offenses as a primary responsibility. (f) "Social worker" means an individual licensed under Title 58, Chapter 60, Part 2, Social Worker Licensing Act, and employed by the Department of Public Safety who has provision of caseworker services to individuals under 21 years old as a primary responsibility. (2) There is created an expendable special revenue fund known as the "Alcoholic Beverage Control Act Enforcement Fund." (3) (a) The fund consists of: (i) deposits made under Subsection (4); (ii) deposits made under Section 59-15-109; and (iii) interest earned on the fund. (b) (i) The fund shall earn interest. (ii) Interest on the fund shall be deposited into the fund. (4) After the deposit made under Section 32B-2-304 for the school lunch program, the department shall deposit 1.695% of the total gross revenue from the sale of liquor with the state treasurer to be credited to the fund. (5) The deposits made under Subsection (4) and Section 59-15-109 shall be: (a) used by the Department of Public Safety as provided in Subsection (6); and (b) reallocated to the General Fund as described in Subsection (7). (6) (a) The Department of Public Safety shall expend money from the fund to: (i) supplement appropriations by the Legislature so that the Department of Public Safety maintains a sufficient number of alcohol-related law enforcement officers such that each year the enforcement ratio as of July 1 is equal to or less than the number specified in Section 32B-1-201; and (ii) maintain at least: (A) 10 drug-related law enforcement officers; (B) eight SBI drug-related law enforcement officers; (C) two social workers; and (D) three additional alcohol-related law enforcement officers who are dedicated to compliance or enforcement of this title. (b) Four of the alcohol-related law enforcement officers described in Subsection (6)(a)(i) shall have as a primary focus the enforcement of this title in relationship to restaurants. (7) For fiscal year 2023, the Division of Finance shall deposit into the General Fund $3 million of unspent money in the fund. Amended by Chapter 94, 2024 General Session

Utah Code § 32B-2-306 Underage drinking prevention media and education campaign.

32B-2-306. Underage drinking prevention media and education campaign. (1) As used in this section, "restricted account" means the Underage Drinking Prevention Media and Education Campaign Restricted Account created in this section. (2) (a) There is created a restricted account within the General Fund known as the "Underage Drinking Prevention Media and Education Campaign Restricted Account." (b) The restricted account consists of: (i) deposits made under Subsection (3); and (ii) interest earned on the restricted account. (3) The department shall deposit 0.6% of the total gross revenue from sales of liquor with the state treasurer, as determined by the total gross revenue collected for the fiscal year two years preceding the fiscal year for which the deposit is made, to be credited to the restricted account and to be used by the department as provided in Subsection (5). (4) The department shall: (a) provide ongoing oversight of a media and education campaign funded under this section; (b) create guidelines for how money appropriated for a media and education campaign can be used; and (c) include in the guidelines that a media and education campaign funded under this section is carefully researched and developed, and appropriate for target groups. (5) (a) Subject to appropriation from the Legislature, the department shall expend money from the restricted account to direct and fund one or more media and education campaigns designed to reduce underage drinking. (b) The department shall: (i) prepare a plan detailing the intended use of the money appropriated under this section; (ii) conduct the media and education campaign in accordance with the guidelines created by the department under Subsection (4)(b); and (iii) coordinate and maintain ongoing communications and collaboration with public entities and private organizations to reduce underage drinking. (c) The department shall annually, no later than October 1 for the fiscal year ending on June 30 of that calendar year, report to the Utah Behavioral Health Commission on: (i) the media and education campaign, including the campaign's impact; and (ii) the results of the efforts to reduce underage drinking. Amended by Chapter 396, 2026 General Session

Utah Code § 32B-2-307 State Store Land Acquisition and Building Construction Fund.

32B-2-307. State Store Land Acquisition and Building Construction Fund. (1) As used in this section, "fund" means the State Store Land Acquisition and Building Construction Fund created in this section. (2) There is created an enterprise fund known as the State Store Land Acquisition and Building Construction Fund. (3) The fund is funded from the following sources: (a) appropriations made to the fund by the Legislature; (b) in accordance with Subsection (6)(a), proceeds from revenue bonds authorized by Title 63B, Bonds; (c) subject to Subsection (7)(b), repayments to the fund; and (d) the interest described in Subsection (4). (4) (a) The fund shall earn interest. (b) Interest earned on the fund shall be deposited into the fund. (5) Subject to Subsection (6), the department may use the money deposited into the fund: (a) for construction of new state stores, including to purchase or lease property; and (b) for maintenance or renovation of existing state stores or facilities. (6) (a) Before the department spends or commits money from the fund, the department shall: (i) present to the Transportation and Infrastructure Appropriations Subcommittee a description of how the department will spend the money; and (ii) if the department intends to spend or commit money from the fund for construction of a new state store: (A) receive approval from the Division of Facilities Construction and Management, created in Section 63A-5b-301; and (B) receive authorization in an appropriations act. (b) Following a presentation described in Subsection (6)(a)(i), the Transportation and Infrastructure Appropriations Subcommittee shall recommend whether the department spend the money in accordance with the department's presentation. (7) (a) If the department uses money in the fund for a purpose described in Subsection (5), and subsequently issues a revenue bond for that purpose, the department shall repay the money with proceeds from the revenue bond. (b) If the department uses money from the fund for a purpose described in Subsection (5), and subsequently uses, instead of issuing bonds, cash funding appropriated by the Legislature to fund that purpose, the department shall reimburse the fund: (i) with proceeds from liquor revenue in the Liquor Control Fund, created in Section 32B-2-301, on a long-term payment schedule set by the state treasurer; and (ii) before the transfer described in Subsection 32B-2-301(7). (8) (a) If the department uses money from the fund that the Legislature appropriated as a loan to be used for the purposes described in Subsection (5), the department shall repay the money with proceeds from liquor revenue in the Liquor Control Fund, created in Section 32B-2-301: (i) with interest at prevailing municipal revenue bond rates for the state of Utah at the time of loan origination minus 50 basis points; and (ii) on a term not to exceed 15 years. (b) The department shall make each payment under Subsection (8)(a) before the transfer described in Subsection 32B-2-301(7). Amended by Chapter 271, 2025 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title32B/Chapter2/32B-2-P3.html?v=C32B-2-P3_1800010118000101Fetched: 10/26/2026

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