School Nutrition Amendments

17
32B-2-304
53E-1-201
53E-1-202
53F-2-423
53F-9-204
63I-2-253
0
School Nutrition Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Luz Escamilla
House Sponsor: Tyler Clancy
LONG TITLE
General Description:
This bill amends funding and eligibility regarding the school lunch program.
Highlighted Provisions:
This bill:
allows the State Board of Education to use a certain percentage of liquor revenue to
support the school meal program;
expands the definition of an eligible student under the school meal program;
enacts provisions related to reimbursement for eligible school meals;
enacts a certain exemption from the school meal program;
creates reporting requirements;
establishes certain repeal dates; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
32B-2-304
Effective
07/01/26
, as last amended by Laws of Utah 2024, Chapter 94
53E-1-201
Effective
07/01/26
Partially Repealed
07/01/27
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 9
53E-1-202
Effective
07/01/26
, as last amended by Laws of Utah 2023, Chapter 7
53F-2-423
Effective
07/01/26
, as enacted by Laws of Utah 2025, Chapter 203
53F-9-204
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapters 413,
433
63I-2-253
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
32B-2-304
is amended to read:
32B-2-304
Effective
07/01/26
. 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)
and
(4)
:
(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)
(a)
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
the State
Board of Education administers
under Section
53E-3-510
.
(b)
The State Board of Education shall use up to 5% of the funds credited to the Uniform
School Fund under Subsection
(5)(a)
to pay the cost of lunch for an eligible student,
as that term is defined in Subsection
53F-2-423(1)(b)
:
(i)
that does not qualify for reduce-price meals under the National School Lunch
Program; and
(ii)
whose family income is at or below 200% of the federal poverty level.
(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 selling discontinued items at a
discount.
(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.
Section 2. Section
53E-1-201
is amended to read:
53E-1-201
Effective
07/01/26
Partially Repealed
07/01/27
. Reports to and
action required of the Education Interim Committee.
(1)
In accordance with applicable provisions and Section
68-3-14
, the following recurring
reports are due to the Education Interim Committee:
(a)
the report described in Section
9-22-109
by the STEM Action Center Board,
including the information described in Section
9-22-113
on the status of the computer
science initiative and Section
9-22-114
on the Computing Partnerships Grants
Program;
(b)
the prioritized list of data research described in Section
53H-15-303
and the report
on research and activities described in Section
53H-15-305
by the Utah Data
Research Center;
(c)
the report described in Section
53H-1-203
by the Utah Board of Higher Education on
career and technical education issues and addressing workforce needs;
(d)
the annual report of the Utah Board of Higher Education described in Section
53H-1-203
;
(e)
the reports described in Section
53H-7-603
by the Utah Board of Higher Education
regarding activities related to campus safety;
(f)
the State Superintendent's Annual Report by the state board described in Section
53E-1-203
;
(g)
the annual report described in Section
53E-2-202
by the state board on the strategic
plan to improve student outcomes;
(h)
the report described in Section
53E-3-501
by the state board on students in an LEA
who receive academic credit through the packet method;
(i)
the report described in Section
53E-8-204
by the state board on the Utah Schools for
the Deaf and the Blind;
(j)
the report described in Section
53E-10-703
by the Utah Leading through Effective,
Actionable, and Dynamic Education director on research and other activities;
(k)
the report described in Section
53F-2-522
regarding mental health screening
programs;
(l)
the report described in Section
53F-4-203
by the state board and the independent
evaluator on an evaluation of early interactive reading software;
(m)
the report described in Section
53F-6-412
by the program manager of the Utah Fits
All Scholarship Program;
(n)
the report described in Section
63N-20-107
by the Governor's Office of Economic
Opportunity on UPSTART;
(o)
the report described in Section
53F-5-215
by the state board related to a grant for an
elementary teacher preparation assessment;
(p)
upon request, the report described in Section
53F-5-219
by the state board on the
Local Innovations Civics Education Pilot Program;
(q)
the report described in Section
53F-5-405
by the state board regarding an evaluation
of a partnership that receives a grant to improve educational outcomes for students
who are low-income;
(r)
the report described in Section
53H-1-604
regarding the Higher Education and
Corrections Council;
(s)
the report described in Section
53G-7-221
by the state board regarding innovation
plans; and
(t)
the reports described in Section
53F-6-412
regarding the Utah Fits All Scholarship
Program.
(2)
In accordance with applicable provisions and Section
68-3-14
, the following occasional
reports are due to the Education Interim Committee:
(a)
in 2027, 2030, 2033, and 2035, the reports described in Sections
53H-1-502
,
53H-1-503
, and
53H-1-504
;
(b)
in 2025, the report described in Section
53H-6-203
by a degree-granting institution
regarding policies on abusive coaching practices;
(c)
if required, the report described in Section
53E-4-309
by the state board explaining
the reasons for changing the grade level specification for the administration of
specific assessments;
(d)
if required, the report described in Section
53E-5-210
by the state board of an
adjustment to the minimum level that demonstrates proficiency for each statewide
assessment;
(e)
the report described in Section
53E-10-702
by Utah Leading through Effective,
Actionable, and Dynamic Education;
(f)
the report described in Section
53F-2-423
, by the state board regarding the school
meal program;
(f)
(g)
if required, the report described in Section
53F-2-513
by the state board
evaluating the effects of salary bonuses on the recruitment and retention of effective
teachers in high-poverty schools;
(g)
(h)
upon request, the report described in Section
53F-10-303
by the state board
regarding the Rural School Sports Facilities Grant Program;
(h)
(i)
upon request, a report described in Section
53G-7-222
by an LEA regarding
expenditure of a percentage of state restricted funds to support an innovative
education program;
(i)
(j)
the reports described in Section
53G-11-304
by the state board regarding
proposed rules and results related to educator exit surveys; and
(j)
(k)
the report described in Section
26B-5-113
by the Office of Substance Use and
Mental Health, the state board, and the Department of Health and Human Services
regarding recommendations related to Medicaid reimbursement for school-based
health services.
(3)
In accordance with applicable provisions and Section
68-3-14
, every five years the
Education Interim Committee shall review the programs described in the following
sections of code:
(a)
beginning July 1, 2027, Title
53E, Chapter 10, Part 3
, Concurrent Enrollment;
(b)
beginning July 1, 2027, Section
53F-2-408
, Enhancement for Accelerated Students
Program;
(c)
beginning July 1, 2027, Section
53F-2-409
, Concurrent enrollment funding;
(d)
beginning July 1, 2027, Section
53F-2-415
, Student health and counseling support --
Qualifying personnel -- Distribution formula -- Rulemaking;
(e)
beginning July 1, 2028, Section
53F-2-416
, Appropriation and distribution for the
Teacher and Student Success Program;
(f)
beginning July 1, 2028, Section
53F-2-510
, Digital Teaching and Learning Grant
Program;
(g)
beginning July 1, 2028, Section
53F-9-306
, Teacher and Student Success Account;
(h)
beginning July 1, 2028, Title
53G, Chapter 7, Part 13
, Teacher and Student Success
Program; and
(i)
beginning July 1, 2029, Section
53F-2-502
, Dual language immersion.
Section 3. Section
53E-1-202
is amended to read:
53E-1-202
Effective
07/01/26
. Reports to and action required of the Public
Education Appropriations Subcommittee.
(1)
(a)
In accordance with applicable provisions and Section
68-3-14
, the following
recurring reports are due to the Public Education Appropriations Subcommittee:
(a)
(i)
the State Superintendent's Annual Report by the state board described in
Section
53E-1-203
;
(b)
(ii)
the report described in Section
53E-10-703
by the Utah Leading through
Effective, Actionable, and Dynamic Education director on research and other
activities; and
(c)
(iii)
the report by the STEM Action Center Board described in Section
9-22-109
,
including the information described in Section
9-22-113
on the status of the
computer science initiative.
(b)
In accordance with applicable provisions, the state board's report regarding the
school meal program described in Section
53F-2-423
is due to the Public Education
Appropriations Subcommittee on or before the subcommittee's October 2026 interim
meeting.
(2)
In accordance with applicable provisions, the Public Education Appropriations
Subcommittee shall complete, if required, the study described in Section
53F-4-304
of
scholarship payments.
Section 4. Section
53F-2-423
is amended to read:
53F-2-423
Effective
07/01/26
. School meal program.
(1)
As used in this section:
(a)
"Education model health and wellness policy on nutrition" means state board policy
emphasizing that an LEA promote efficient meal scheduling, provide adequate time
for eating, and implement practices that help reduce food waste.
(b)
"Eligible student" means a student
enrolled in
:
(i)
enrolled in
kindergarten through grade 12 who qualifies for reduced-price meals
based on household size and income levels under the National School Lunch
Program
; or
(ii)
(A)
enrolled at a school participating in the National School Lunch Program,
enrolled in kindergarten through grade 6; and
(B)
whose family income is at or below 200% of the federal poverty level
.
(c)
"National School Lunch Program" means the same as that term is defined in 7 C.F.R.
Sec. 210.2.
(d)
"Share table program" means a system in a school where a student may return
unopened, uneaten food or beverages to a designated location for redistribution to
other students.
(2)
An LEA participating in the National School Lunch Program shall provide lunch to an
eligible student on a school day at no charge.
(3)
The state board:
(a)
shall:
(i)
except for the eligible students described in Subsection
(3)(a)(ii)
and
subject to
legislative appropriations, reimburse an LEA for each reimbursable lunch
provided under this section in an amount equal to the difference between the
federal reimbursement rates for a meal and a reduced-price meal, as determined
annually by the United States Department of Agriculture;
(ii)
subject to legislative appropriations, reimburse an LEA for each reimbursable
lunch an LEA provides to an eligible student described in Subsection
(1)(b)(ii)
in
an amount equal to the lower of the:
(A)
price the LEA establishes for a paid lunch; or
(B)
the statewide average price for a paid lunch, as the state board determines
annually;
(ii)
(iii)
establish a reimbursement system where the board provides a monthly
reimbursement to an LEA that provides a meal under Subsection
(2)
;
(iv)
on or before the October 2026 interim meetings of the Education Interim
Committee and the Public Education Appropriations Subcommittee, report to the
Education Interim Committee and the Public Education Appropriations
Subcommittee the information the state board receives from each LEA under the
report described in Subsection
(5)(b)
;
and
(iii)
(v)
accept private donations and grants for the purpose of funding the school
meal program described in this section; and
(b)
may provide guidance and support to a school implementing the food waste
prevention strategies described in Subsection
(6)
.
(4)
An LEA may not:
(a)
publicly identify or stigmatize a student unable to pay for a meal; or
(b)
require a student to perform chores to pay for a meal unless the requirement applies
equally to all students regardless of whether the student pays for the meal.
(5)
An LEA shall

:
(a)
on or before October 1, 2026, submit a report to the state board that includes:
(i)
detailed accounting of any funds the LEA receives from liquor revenues described
in Section
32B-2-304
;
(ii)
a description of how the LEA expends liquor revenues, including the specific
programs, services, or purposes for which the LEA uses the funds;
(iii)
the total cost that the LEA incurred to provide meals to students during the
2025-2026 school year; and
(iv)
the amount of state and local funds that the LEA uses to supplement federal
funds for student meals; and
(b)
direct communications regarding a student's meal debt only to the student's parent.
(6)
An LEA participating in the National School Lunch Program shall consider, where
feasible, reducing food waste by:
(a)
following the education model health and wellness policy on nutrition; and
(b)
establishing a share table program.
(7)
(a)
Notwithstanding Subsection
(3)(a)(i)
, if appropriations are insufficient to fully
reimburse each LEA for the cost of a reimbursable lunch described in this section, the
state board shall distribute the available funds in the fourth quarter of the fiscal year
to each LEA on a pro rata basis, not exceeding the available funds.
(b)
An LEA may ask the parent of an eligible student to cover the remaining cost of a
subsidized lunch under this section.
(8)
Notwithstanding Subsection
(2)
, an LEA or school is exempt from the requirement to
provide lunch at no charge under this section if the LEA or school:
(a)
participates in the federal Community Eligibility Provision, or any other federal
program that provides universal free meals to students; or
(b)
chooses to provide free meals separate from the programs described in Subsection
(8)(a)
.
Section 5. Section
53F-9-204
is amended to read:
53F-9-204
Effective
07/01/26
. Public Education Economic Stabilization
Restricted Account.
(1)
There is created within the Uniform School Fund a restricted account known as the
"Public Education Economic Stabilization Restricted Account."
(2)
(a)
Except as provided in Subsection
(2)(b)
, the account shall be funded from the
following revenue sources:
(i)
15% of the difference between, as determined by the Office of the Legislative
Fiscal Analyst:
(A)
the estimated amount of ongoing Income Tax Fund and Uniform School Fund
revenue available for the Legislature to appropriate for the next fiscal year; and
(B)
the amount of ongoing appropriations from the Income Tax Fund and Uniform
School Fund in the current fiscal year; and
(ii)
other appropriations as the Legislature may designate.
(b)
If the appropriation described in Subsection
(2)(a)
would cause the ongoing
appropriations to the account to exceed 11% of Uniform School Fund appropriations
described in Section
53F-9-201.1
for the same fiscal year, the Legislature shall
appropriate only those funds necessary to ensure that the ongoing appropriations to
the account equal 11% of Uniform School Fund appropriations for that fiscal year.
(3)
Subject to the availability of ongoing appropriations to the account, in accordance with
Utah Constitution, Article X, Section 5, Subsection
(4)
, the ongoing appropriation to
the account shall be used to fund:
(a)
except for a year described in Subsection
(3)(b)
or
(c)
, one-time appropriations to the
public education system, including

:
(i)
at least $65,000,000 to the Catalyst Center Grant Program described in Section
53E-3-507.1
;
and
(ii)
if the liquor revenue described in Subsection
53F-2-423(5)(b)
is insufficient to
cover the costs of the school meal program described in Section
53F-2-423
, up to
$5,000,000 to cover the costs associated with the school meal program;
(b)
the Minimum School Program for a year in which Income Tax Fund revenue and
Uniform School Fund revenue are insufficient to fund:
(i)
ongoing appropriations to the public education system; and
(ii)
enrollment growth and inflation estimates, as defined in Section
53F-9-201.1
; and
(c)
the minimum basic local amount as defined in Section
53F-2-301
for a year in which
the minimum basic tax rate, as defined in Section
53F-2-301
, is insufficient to
generate the amount described in Subsection
53F-2-301(2)(a)
.
(4)
(a)
The account shall earn interest.
(b)
All interest earned on account money shall be deposited in the account.
(5)
On or before December 31, 2023, and every three years thereafter, the Office of the
Legislative Fiscal Analyst shall:
(a)
review the percentages described in Subsections
(2)(a)(i)
and
(2)(b)
; and
(b)
recommend to the Executive Appropriations Committee any changes based on the
review described in Subsection
(5)(a)
.
(6)
In preparing budget bills for a given fiscal year, the Executive Appropriations
Committee shall make the one-time appropriations described in Subsection
(3)(a)
by
appropriating at least the lesser of 10% of the total amount of the one-time
appropriations to:
(a)
the cost of providing 32 paid professional hours for teachers in accordance with
Section
53F-7-203
;
(b)
the amount to make the distribution required under Section
53F-2-527
;
(c)
the cost of the Stipends for Future Educators Grant Program described in Section
53F-5-223
; and
(d)
the cost of the Rural School Sports Facilities Grant Program described in Section
53F-10-303
.
(7)
No later than October 15 of each year, the state board shall report to the Office of the
Legislative Fiscal Analyst an estimated cost for each of the one-time appropriations
described in Subsection
(6)
.
Section 6. Section
63I-2-253
is amended to read:
63I-2-253
Effective
07/01/26
. Repeal dates: Titles 53 through 53G.
(1)
Title
53, Chapter 2c
, COVID-19 Health and Economic Response Act, is repealed July 1,
2026.
(2)
Section
53-22-104.1
, School Security Task Force -- Membership -- Duties -- Per diem --
Report -- Expiration, is repealed December 31, 2025.
(3)
Section
53-22-104.2
, The School Security Task Force -- Education Advisory Board, is
repealed December 31, 2025.
(4)
Section
53-25-103
, Airport dangerous weapon possession reporting requirements, is
repealed December 31, 2031.
(5)
Subsection
53-25-602(4)(b)
, regarding the rights of a peace officer placed onto a
prosecution agency's Brady identification system before May 7, 2025, is repealed
December 1, 2025.
(6)
Subsection
53-29-302(2)(b)(ii)
, regarding the requirement for the Department of
Corrections to submit the results of risk assessments for sex offenders to the State
Commission on Criminal and Juvenile Justice, is repealed January 1, 2030.
(7)
Subsection
53E-1-201(2)(f)
, regarding a report on the school meals program, is repealed
July 1, 2027.
(8)
Subsection
53E-1-202(1)(b)
, regarding a report on the school meals program, is
repealed July 1, 2027.
(7)
(9)
Subsection
53E-3-501(7)(e)(ii)
, regarding a report on the packet method, is
repealed July 1, 2028.
(10)
Subsections
53F-2-423(3)(a)(iii)
and
(5)(a)
, regarding a report on the school meals
program, is repealed July 1, 2027.
(8)
(11)
Subsection
53F-2-504(6)
, regarding a report on the Salary Supplement for Highly
Needed Educators, is repealed July 1, 2026.
(9)
(12)
Section
53F-5-221
, Management of energy and water use pilot program, is
repealed July 1, 2028.
(10)
(13)
Section
53F-5-222
, Mentoring and Supporting Teacher Excellence and
Refinement Pilot Program, is repealed July 1, 2028.
(11)
(14)
Section
53F-5-223
, Stipends for Future Educators Grant Program, is repealed
July 1, 2028.
(12)
(15)
Subsection
53G-11-502(1)
, regarding implementation of the educator evaluation
process, is repealed July 1, 2029.
(13)
(16)
Section
53G-11-506
, Establishment of educator evaluation program -- Joint
committee, is repealed July 1, 2029.
(14)
(17)
Section
53G-11-507
, Components of educator evaluation program, is repealed
July 1, 2029.
(15)
(18)
Section
53G-11-508
, Summative evaluation timelines -- Review of summative
evaluations, is repealed July 1, 2029.
(16)
(19)
Section
53G-11-509
, Mentor for provisional educator, is repealed July 1, 2029.
(17)
(20)
Section
53G-11-510
, State board to describe a framework for the evaluation of
educators, is repealed July 1, 2029.
(18)
(21)
Section
53G-11-511
, Rulemaking for privacy protection, is repealed July 1, 2029.
(19)
(22)
Subsection
53G-11-520(1)
, regarding optional alternative educator evaluation
processes, is repealed July 1, 2029.
(20)
(23)
Subsection
53G-11-520(2)
, regarding an exception from educator evaluation
process requirements, is repealed July 1, 2029.
Section 7.
Effective Date.
This bill takes effect on
July 1, 2026
.
2-11-26 7:02 PM