Wednesday, March 16, 2011

Utah Foodies Time to Rise Up

We have reached the point in this state that the Utah Legislature has over stepped it's boundaries.  At the end of this month, our esteemed elected officials have seen fit to close 5 state liquor and wine outlets, with the possibility of more to come.  These closings are part of cutting the budget.  In doing so, the state will loose money because each of these stores adds well over $1,000,000 to the state coffers.  Not to mention state and local sales taxes, and the school lunch program taxes.  10% of every bottle of alcohol or wine goes to the School Lunch Program, for FY 2010 that was $27,921,283 combined for all of the stores.  It is estimated that these closures will put 150 out of work, just what we need right now.

The stores being closed are #20 Main Street Salt Lake City, #14 Miller Avenue South Salt Lake, #17 Orem, #5 Provo and #32 St George.  There are others on the chopping block including #35 the wine store on 300 East Salt Lake City.

This is an effort of the Legislature to further restrict alcohol sales in the state, making all of us drive further to purchase.  If you are in Utah County, you will now have to drive to Pleasant Grove or Springville to make your purchases.

Some legal background now . . .

The Utah Code, Title 32A, The Alcoholic Beverage Control Act, Chapter 1, Section 104 states:


(1) The administration of this title shall be nonpartisan and free of partisan political influence.

(2) Alcoholic beverage control shall be operated as a public business using sound management principles and practices. The business shall be governed by a commission and operated by a department. The business shall function with the intent of servicing the public demand for alcoholic beverages.

(4) The commission shall conduct, license, and regulate the sale of alcoholic beverages in a manner and at prices that:

(a) reasonably satisfy the public demand and protect the public interest, including the rights of citizens who do not wish to be involved with alcoholic products .

Closing profitable stores is not sound management principles and practices, and not satisfying the public demand.  If there was no demand, there would be no profit.  The Utah State Legislature is violating Utah law with these closures.

The DABC is the only state department that is self sustaining. Alcohol does not cost the State of Utah one red cent. In fact, last year, fiscal year 2010, the Department had retail sales of $277,720,186, with a gross profit of $129,176,178. Upon removal of the operating expenses of $30,348,395, which includes the salaries, wages, and benefits of the department employees, the DABC was left with a net operating income of $100,970,042.

Not only does the DABC have the unique ability to generate income directly for the State of Utah, it contributes to the School Lunch Program and Sales Taxes to state, county and local municipalities. Again, for fiscal year 2010, $27,921,283 was paid to the School Lunch Programs across the state, and $14,688,985 was paid in sales taxes to every city and town that has a liquor outlet. When all is said and done, the DABC sent $58,359,774 directly to the State of Utah general fund. Can any other state agency make this claim?

Write your Legislator, all of them.  Write the Governor . . . Write Sam Granato at the DABC Commission . . . write all of the Commissioners.  We have to have our voices heard to stop these stores from closing.

1 comment:

  1. Thanks for sharing this news. I hope they don't close more stores.

    ReplyDelete