Bill Text: FL S1552 | 2014 | Regular Session | Introduced
Bill Title: Licensure as an American Source of Supply
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-05-02 - Died in Regulated Industries [S1552 Detail]
Download: Florida-2014-S1552-Introduced.html
Florida Senate - 2014 SB 1552 By Senator Evers 2-01325-14 20141552__ 1 A bill to be entitled 2 An act relating to licensure as an American source of 3 supply; amending ss. 564.045 and 565.095, F.S.; 4 defining terms; conforming cross-references and 5 conforming provisions to changes made by the act; 6 prohibiting a person from altering the trademark of a 7 manufacturer, rectifier, bottler, or brand owner on 8 products shipped into this state; amending ss. 561.14, 9 561.42, and 562.46, F.S.; conforming cross-references 10 and conforming provisions to changes made by the act; 11 providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Section 564.045, Florida Statutes, is amended to 16 read: 17 564.045 Licensure asprimaryAmerican source of supply.— 18 (1) DEFINITIONSDEFINITION.—As used in this section, the 19 term: 20 (a) “LicensedPrimaryAmerican source of supply” means the 21 manufacturer, vintner, winery, or bottler, or any licensee who 22 has lawfully purchased the product directly from such sources 23 within or outside this statetheir legally authorized exclusive24agent,who, if the product cannot be secured directly from the 25 manufacturer by a licensedan Americandistributor, is the 26 source closest to the manufacturer in the channel of commerce 27 from whom the product can be secured by an American distributor, 28 or who, if the product can be secured directly from the 29 manufacturer by a licensedan Americandistributor, is the 30 manufacturer. 31 (b) “Licensee” means a person or entity licensed by a 32 federal, state, or municipal agency located within or outside 33 this state to sell or resell wineIt shall also include any34applicant who directly purchases vinous beverages from a35manufacturer, vintner, winery, or bottler who represents that36there is no primary American source of supply for the brand and37such applicant must petition the division for approval of38licensure. 39 (2) TAX CONTROL LICENSURE REQUIRED.—For purposes of tax 40 revenue control, anoperson, a firm, a corporation, or any 41 other entity thatwhichis a licensedthe primaryAmerican 42 source of supplyas defined hereinmay not sell, offer for sale, 43 accept orders for sale, ship, or cause to be shipped into this 44 state any vinous beverages to any distributor or importer within 45 the state without having first obtained licensure as a licensed 46primaryAmerican source of supply on forms provided by, and in 47 such manner as prescribed by, the division. Applicants for 48 licensure as a licensedprimaryAmerican source of supply shall 49 be exempt from the requirements and qualification standards set 50 forth in ss. 561.15 and 561.17. 51 (3) LICENSE FEES.—Licensure as a licensedprimaryAmerican 52 source of supply authorizes the shipment of vinous beverages 53 manufactured within and outsidewithoutthe state to licensed 54 distributors, importers, manufacturers, bonded warehouses, and 55 registered exporters within the state. The annual license fee 56 for a licensedprimaryAmerican source of supply is $15 for each 57 brand that requires a federal label approval and is scheduled 58 for shipment to a licensed distributor or importer within this 59 state for the purpose of being sold within the state. The annual 60 license fee shall be submitted with the application for initial 61 licensure. This license shall be renewed each year, and the 62 renewal fee shall be $15 for each brand shipped into the state 63 during the preceding year. 64 (4) CERTAIN INTERSTATE AND FOREIGN SHIPMENTS PROHIBITED.—A 65Noholder of a distributor’s license or importer’s license as 66 classified by s. 561.14(2) may not ship or cause to be shipped 67 into this state, or accept delivery from another state or a 68 foreign country of, any vinous beverages except directly from a 69 licensedprimaryAmerican source of supply. 70 (5) PRIVATE LABELS.—This section does notNothing herein71shallprohibit the ownership by vendors of brand names of 72 distilled spirits and vinous beverages commonly known as private 73 labels if; provided thatsuch ownership and use thereof do not 74 otherwise violate the Beverage Law. 75 (6) TRADEMARK ALTERATION.—A person may not alter the 76 trademark of a manufacturer, rectifier, bottler, or brand owner 77 on products shipped into this state. 78 (7)(6)RULEMAKING AUTHORITY.—The division shall adopt 79promulgaterules as necessary to carry out the purpose of this 80 section. 81 Section 2. Section 565.095, Florida Statutes, is amended to 82 read: 83 565.095 Licensure asprimaryAmerican source of supply.— 84 (1) DEFINITIONSDEFINITION.—As used in this section, the 85 term: 86 (a) “LicensedPrimaryAmerican source of supply” means the 87 manufacturer, rectifier, or bottler, or any licensee who has 88 lawfully purchased the product directly from such sources within 89 or outside this statetheir legally authorized exclusive agent, 90 who, if the product cannot be secured directly from the 91 manufacturer by a licensedan Americandistributor, is the 92 source closest to the manufacturer in the channel of commerce 93 from whom the product can be secured by a licensedan American94 distributor, or who, if the product can be secured directly from 95 the manufacturer by a licensedan Americandistributor, is the 96 manufacturer. 97 (b) “Licensee” means a person or entity licensed by a 98 federal, state, or municipal agency located within or outside 99 this state to sell or resell liquor, distilled spirits, 100 spirituous liquors, spirituous beverages, or distilled 101 spirituous liquorsIt shall also include any applicant who102directly purchases spirituous liquors from a manufacturer,103rectifier, or bottler who represents that there is no primary104American source of supply for the brand, and such applicant must105petition the division for approval of licensure. 106 (2) TAX CONTROL LICENSURE REQUIRED.—For purposes of tax 107 revenue control, anoperson, a firm, a corporation, or any 108 other entity thatwhichis a licensedthe primaryAmerican 109 source of supplyas defined hereinmay not sell, offer for sale, 110 accept orders for sale, ship, or cause to be shipped into this 111 state any spirituous liquors to any distributor or importer 112 within the state without having first obtained licensure as a 113 licensedprimaryAmerican source of supply on forms provided by, 114 and in such manner as prescribed by, the division. Applicants 115 for licensure as a licensedprimaryAmerican source of supply 116 shall be exempt from the requirements and qualification 117 standards set forth in ss. 561.15 and 561.17. 118 (3) LICENSE FEES.—Licensure as a licensedprimaryAmerican 119 source of supply authorizes the shipment of distilled spirits 120 manufactured within and outsidewithoutthe state to licensed 121 distributors, importers, manufacturers, bonded warehouses, and 122 registered exporters within the state. The annual license fee 123 for a licensedprimaryAmerican source of supply is $30 for each 124 brand that requires a federal label approval and is scheduled 125 for shipment to a licensed distributor or importer within this 126 state for the purpose of being sold within the state. The annual 127 license fee shall be submitted with the application for initial 128 licensure. This license shall be renewed each year, and the 129 renewal fee shall be $30 for each brand shipped into the state 130 during the preceding year. 131 (4) CERTAIN INTERSTATE AND FOREIGN SHIPMENTS PROHIBITED.—A 132Noholder of a distributor’s license or importer’s license as 133 classified by s. 561.14(2) may not ship or cause to be shipped 134 into this state, or accept delivery of from another state or a 135 foreign country, any spirituous liquors except directly from a 136 licensedprimaryAmerican source of supply. 137 (5) PRIVATE LABELS.—This section does notNothing herein138shallprohibit the ownership by vendors of brand names of 139 distilled spirits and vinous beverages commonly known as private 140 labels if; provided, thatsuch ownership and use thereof does 141 not otherwise violate the Beverage Law. 142 (6) TRADEMARK ALTERATION.—A person may not alter the 143 trademark of a manufacturer, rectifier, bottler, or brand owner 144 on products shipped into this state. 145 (7)(6)RULEMAKING AUTHORITY.—The division shall adopt 146promulgaterules as necessary to carry out the purpose of this 147 section. 148 Section 3. Subsection (4) of section 561.14, Florida 149 Statutes, is amended to read: 150 561.14 License and registration classification.—Licenses 151 and registrations referred to in the Beverage Law shall be 152 classified as follows: 153 (4) Brokers or sales agents, whether resident or 154 nonresident, licensed to sell, or to cause to be sold, shipped, 155 and invoiced, alcoholic beverages to licensed manufacturers or 156 licensed distributors, and to no one else, in this state. Such 157 licensed brokers or sales agents, except as relatedrelatesto 158 malt beverages,onlyshall represent only licensedone or more159primaryAmerican sources of supply, registered as such with the 160 division, and may be compensated on a commission or remuneration 161 basis and may notshallhave anodirect or indirect affiliation 162 with any vendor licensed in this state. This license 163 classification does not include manufacturers’ representatives 164 who are registered with the division underthe provisions ofss. 165 564.045(1) and (2) and 565.095(1) and (2). 166 Section 4. Section 561.42, Florida Statutes, is amended to 167 read: 168 561.42 Tied house evil; financial aid and assistance to 169 vendor by manufacturer, distributor, importer, licensedprimary170 American source of supply, brand owner or registrant, or any 171 broker, sales agent, or sales person thereof, prohibited; 172 procedure for enforcement; exception.— 173 (1) ANomanufacturer, distributor, importer, licensed 174primaryAmerican source of supply, or brand owner or registrant 175 of any of the beverages herein referred to, whether licensed or 176 operating in this state or out of stateout-of-state, or anor177anybroker, sales agent, or sales person thereof, may notshall178 have aanyfinancial interest, directly or indirectly, in the 179 establishment or business of any vendor licensed under the 180 Beverage Law.; nor shallSuch manufacturer, distributor, 181 importer, licensedprimaryAmerican source of supply, or brand 182 owner or brand registrant, or any broker, sales agent, or sales 183 person thereof, may not assist any vendor by any gifts or loans 184 of money or property of any description or by the giving of any 185 rebates of any kindwhatsoever. ANolicensed vendor may not 186shallaccept, directly or indirectly, any gift or loan of money 187 or property of any description or any rebates from any such 188 manufacturer, distributor, importer, licensedprimaryAmerican 189 source of supply, or brand owner or brand registrant, or any 190 broker, sales agent, or sales person thereof;provided,however, 191thatthis does not apply to any bottles, barrels, or other 192 containers necessary for the legitimate transportation of such 193 beverages or to advertising materials and does not apply to the 194 extension of credit, for liquors sold, made strictly in 195 compliance withthe provisions ofthis section. A brand owner is 196 a person who is not a manufacturer, distributor, importer, 197 licensedprimaryAmerican source of supply, or brand registrant, 198 or a broker, sales agent, or sales person thereof, but who 199 directly or indirectly owns or controls any brand, brand name, 200 or label of alcoholic beverage.Nothing inThis section does not 201shallprohibit the ownership by vendors of any brand, brand 202 name, or label of alcoholic beverage. 203 (2) Credit for the sale of liquors may be extended to any 204 vendor up to, but not including, the 10th day after the calendar 205 week within which such sale was made. 206 (3) In cases when payment for sales to a vendor is not made 207 by the 10th day succeeding the calendar week in which such sale 208 was made, the distributor who made such sale shall, within 3 209 days, notify the division in writing of such fact; and the 210 division, upon receipt of such notice, shall, after compliance 211 with the proceedings hereinafter mentioned, declare in writing 212 to such vendor and to all manufacturers and distributors within 213 the state that all further sales to such vendor are prohibited 214 until such time as the division certifies in writing that such 215 vendor has fully paid for all liquors previously purchased. 216 However, if a distributor received payment within the 3-day 217 period following the 10th day succeeding the calendar week in 218 which the sale was made, the distributor, if notification to the 219 division has not already been made, is not required to notify 220 the division. Payments so made within the 3-day period do not 221 constitute a violation of this section. 222 (4) Before the division declares and prohibitsshall so223declare and prohibitsuch sales to such vendor, it shall, within 224 2 days after receipt of such notice, give written notice to such 225 vendor by mail of the receipt by the division of such 226 notification of delinquency and such vendor shall be directed to 227 forthwith make payment thereof or, upon failure to do so, to 228 show cause before the division why further sales to such vendor 229 mayshallnot be prohibited. Good and sufficient cause to 230 prevent such action by the division may be made by showing 231 payment, failure of consideration, or any other defense which 232 would be considered sufficient in a common-law action. The 233 vendor shall have 5 days after receipt of such notice within 234 which to show such cause, and he or she may demand a hearing 235 thereon, provided he or she does so in writing within said 5 236 days, such written demand to be delivered to the division either 237 in person or by due course of mail within such 5 days. If no 238 such demand for hearing is made, the division shall thereupon 239 declare in writing to such vendor and to all manufacturers and 240 distributors within the state that all further sales to such 241 vendor are prohibited until such time as the division certifies 242 in writing that such vendor has fully paid for all liquors 243 previously purchased. In the event such prohibition of sales and 244 declaration thereof to the vendor, manufacturers, and 245 distributors is ordered by the division, the vendor may seek 246 review of such decision by the Department of Business and 247 Professional Regulation within 5 days. In the event application 248 for such review is filed within such time, such prohibition of 249 sales mayshallnot be made, published, or declared until final 250 disposition of such review by the department. 251 (5) Upon receipt by the division from the distributor of 252 the notice of nonpayment provided for by subsection (3), the 253 division shall forthwith notify such delinquent vendor and all 254 distributors in the state that no further purchases or sales of 255 liquor by or to such vendor, except for cash, shall be made 256 until good cause is shown by such vendor as heretofore provided 257 for.NoLiquor may notshallbe purchased by such vendor or sold 258 to him or her by any distributor, except for cash, from and 259 after such notification by the division and until such cause is 260 shown as is provided for in subsection (4). In the event no good 261 cause is shown,thenall further sales, for cash or credit, are 262 hereby prohibited after such declaration in writing by the 263 division is sent to such vendor and distributors and until all 264 delinquent accounts have been paid. 265 (6) Nothing herein shall be taken to forbid the giving of 266 trade discounts in the usual course of business upon wine and 267 liquor sales. 268 (7) The extension or receiving of credits in violation of 269 this section shall be considered as an arrangement for financial 270 assistance and shall constitute a violation of the Beverage Law 271 and any maneuver, shift, or device of any kind by which credit 272 is extended contrary to the provisions of this section shall be 273 considered a violation of the Beverage Law. 274 (8) The division may adopt rules and require reports to 275 enforce, and may impose administrative sanctions for any 276 violation of, the limitations established in this section on 277 credits, coupons, and other forms of assistance. 278 (9) The term “advertising materials” as used in this 279 section does not include outside signs so located as to be 280 connected with or appertaining to the vendor’s licensed 281 premises. 282 (10) ANomanufacturer, distributor, importer, licensed 283primaryAmerican source of supply, brand owner, or brand 284 registrant of the beverages referred to herein, or any broker, 285 sales agent, or sales person thereof, may notshalldirectly or 286 indirectly give, lend, rent, sell, or in any other manner 287 furnish to a vendor any outside sign, printed, painted, 288 electric, or otherwise. A; nor shall anyvendor may not display 289 any sign advertising any brand of alcoholic beverages on the 290 outside of his or her licensed premises, on any lot of ground of 291 which the licensed premises are situatedsituate, or on any 292 building of which the licensed premises are a part. 293 (11) A vendor may display in the interior of his or her 294 licensed premises, including the window or windows thereof, 295 neon, electric, or other signs, including window painting and 296 decalcomanias applied to the surface of the interior or exterior 297 of such windows, and posters, placards, and other advertising 298 material advertising the brand or brands of alcoholic beverages 299 sold by him or her, whether visible or not from the outside of 300 the licensed premises, but anovendor may notshalldisplay in 301 the window or windows of his or her licensed premises more than 302 one neon, electric, or similar sign, advertising the product of 303 any one manufacturer. 304 (12) Any manufacturer, distributor, importer, licensed 305primaryAmerican source of supply, or brand owner or registrant, 306 or any broker, sales agent, or sales person thereof, may give, 307 lend, furnish, or sell to a vendor who sells the products of 308 such manufacturer, distributor, importer, licensedprimary309 American source of supply, or brand owner or registrant any of 310 the following: neon or electric signs, window painting and 311 decalcomanias, posters, placards, and other advertising material 312 herein authorized to be used or displayed by the vendor in the 313 interior of his or her licensed premises. 314 (13) A licensee under the Beverage Law may not possess or 315 use, in physical or electronic format, any type of malt beverage 316 coupon or malt beverage cross-merchandising coupon in this 317 state, where: 318 (a) The coupon is produced, sponsored, or furnished, 319 whether directly or indirectly, by an alcohol beverage 320 manufacturer, distributor, importer, brand owner, or brand 321 registrant or any broker, sales agent, or sales person thereof; 322 and 323 (b) The coupon is or purports to be redeemable by a vendor 324 or other person who sells malt beverages to consumers in the 325 state. 326 (14) The division shall adopt reasonable rules governing 327 promotional displays and advertising, which rules mayshallnot 328 conflict with or be more stringent than the federal regulations 329 pertaining to such promotional displays and advertising 330 furnished to vendors by distributors, manufacturers, importers, 331 licensedprimaryAmerican sources of supply, or brand owners or 332 registrants, or any broker, sales agent, or sales person 333 thereof; however: 334 (a) If a manufacturer, distributor, importer, brand owner, 335 or brand registrant of malt beverage, or any broker, sales 336 agent, or sales person thereof, provides a vendor with 337 expendable retailer advertising specialties such as trays, 338 coasters, mats, menu cards, napkins, cups, glasses, 339 thermometers, and the like, such items shall be sold at a price 340 not less than the actual cost to the industry member who 341 initially purchased them, without limitation in total dollar 342 value of such items sold to a vendor. 343 (b) Without limitation in total dollar value of such items 344 provided to a vendor, a manufacturer, distributor, importer, 345 brand owner, or brand registrant of malt beverage, or any 346 broker, sales agent, or sales person thereof, may rent, loan 347 without charge for an indefinite duration, or sell durable 348 retailer advertising specialties such as clocks, pool table 349 lights, and the like, which bear advertising matter. 350 (c) If a manufacturer, distributor, importer, brand owner, 351 or brand registrant of malt beverage, or any broker, sales 352 agent, or sales person thereof, provides a vendor with consumer 353 advertising specialties such as ashtrays, T-shirts, bottle 354 openers, shopping bags, and the like, such items shall be sold 355 at a price not less than the actual cost to the industry member 356 who initially purchased them, but may be sold without limitation 357 in total value of such items sold to a vendor. 358 (d) A manufacturer, distributor, importer, brand owner, or 359 brand registrant of malt beverage, or any broker, sales agent, 360 or sales person thereof, may provide consumer advertising 361 specialties described in paragraph (c) to consumers on any 362 vendor’s licensed premises. 363 (e) Manufacturers, distributors, importers, brand owners, 364 or brand registrants of beer, and any broker, sales agent, or 365 sales person thereof, mayshallnot conduct any sampling 366 activities that include tasting of their product at a vendor’s 367 premises licensed for off-premises sales only. 368 (f) Manufacturers, distributors, importers, brand owners, 369 or brand registrants of beer, and any broker, sales agent, or 370 sales person thereof, mayshallnot engage in cooperative 371 advertising with vendors. 372 (g) Distributors of beer may sell to vendors draft 373 equipment and tapping accessories at a price not less than the 374 cost to the industry member who initially purchased them, except 375 there is no required charge, and a distributor may exchange any 376 parts which are not compatible with a competitor’s system and 377 are necessary to dispense the distributor’s brands. A 378 distributor of beer may furnish to a vendor at no charge 379 replacement parts of nominal intrinsic value, including, but not 380 limited to, washers, gaskets, tail pieces, hoses, hose 381 connections, clamps, plungers, and tap markers. 382 Section 5. Section 562.46, Florida Statutes, is amended to 383 read: 384 562.46 Legal remedies not impaired.—It is the declared385legislative intention that no provision or provisions ofThe 386 Beverage Law does notshall in any mannerlimit, modify, or 387 preclude aanyperson from instituting legal proceedings in 388 courts of competent jurisdiction for the adjudication of any 389 rights that such person may have under the Federal and State 390 Constitutions and under laws now existing, or laws thatwhich391 may be hereinafter enacted; further, an action involving a 392 contractual dispute between a licensed distributor and its 393 registered licensedprimaryAmerican source of supply, as 394 defined in s. 564.045 or s. 565.095, may be filed in the courts 395 of this state. 396 Section 6. This act shall take effect July 1, 2014.