Bill Text: FL S1714 | 2014 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Malt Beverages
Spectrum: Committee Bill
Status: (Failed) 2014-05-02 - Died in Messages [S1714 Detail]
Download: Florida-2014-S1714-Comm_Sub.html
Bill Title: Malt Beverages
Spectrum: Committee Bill
Status: (Failed) 2014-05-02 - Died in Messages [S1714 Detail]
Download: Florida-2014-S1714-Comm_Sub.html
Florida Senate - 2014 CS for SB 1714 By the Committees on Community Affairs; and Regulated Industries 578-04060-14 20141714c1 1 A bill to be entitled 2 An act relating to malt beverages; amending s. 561.01, 3 F.S.; defining the term “growler”; amending s. 4 561.221, F.S.; clarifying three-tier system exceptions 5 and application with respect to the manufacture, 6 distribution, and sale of malt beverages; revising 7 requirements for licensure and operation of 8 manufacturers and vendors; providing legislative 9 intent; amending s. 561.37, F.S., to revise bond 10 requirements for brewers; amending s. 561.5101, F.S.; 11 adding an exception to the come-to-rest requirement; 12 amending s. 562.34, F.S.; authorizing the possession 13 and transportation of a growler; reenacting s. 14 563.022(14), F.S., relating to prohibited interests 15 between a manufacturer and a distributor of malt 16 beverages, to incorporate the amendments made to s. 17 561.221, F.S., in a reference thereto; clarifying 18 provisions; amending s. 563.06, F.S.; revising 19 provisions relating to the sale of malt beverages at 20 retail in containers of specified sizes, to conform to 21 changes made by the act; creating s. 563.061, F.S.; 22 providing requirements for and limitations on the 23 filling, refilling, and sale or distribution of 24 growlers; providing severability; providing an 25 effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Subsection (22) is added to section 561.01, 30 Florida Statutes, to read: 31 561.01 Definitions.—As used in the Beverage Law: 32 (22) “Growler” means a clean container made of glass, 33 ceramic, metal, or similar leak-proof material having a capacity 34 of at least 32 ounces but no more than 128 ounces which, in 35 response to an order in a face-to-face transaction for off 36 premises consumption, is filled with a malt beverage and sealed 37 on the premises at or immediately before or after the time of 38 sale. 39 Section 2. Section 561.221, Florida Statutes, is amended to 40 read: 41 561.221 Licensing of manufacturers and distributors as 42 vendors and of vendors as manufacturers; exceptions, conditions, 43 and limitations.— 44 (1)(a) Nothing contained in s. 561.22, s. 561.42, or any 45 other provision of the Beverage Law prohibits the ownership, 46 management, operation, or control of not more than three 47 vendor’s licenses for the sale of alcoholic beverages by a 48 manufacturer of wine who is licensed and engaged in the 49 manufacture of wine in this state, even if such manufacturer is 50 also licensed as a distributor; provided that no such vendor’s 51 license shall be owned, managed, operated, or controlled by any 52 licensed manufacturer of wine unless the licensed premises of 53 the vendor are situated on property contiguous to the 54 manufacturing premises of the licensed manufacturer of wine. 55 (b) The Division of Alcoholic Beverages and Tobacco shall 56 issue permits to a certified Florida Farm Winery to conduct 57 tasting and sales of wine produced by certified Florida Farm 58 Wineries at Florida fairs, trade shows, expositions, and 59 festivals. The certified Florida Farm Winery shall pay all entry 60 fees and shall have a winery representative present during the 61 event. The permit is limited to the length of the event. 62 (2) Notwithstanding s. 561.22, s. 561.42, or any other 63 provision of the Beverage Law, the division is authorized to 64 issue vendor’s licenses to a manufacturer of malt beverages, 65 even if such manufacturer is also licensed as a distributor, for 66 the sale of alcoholic beverages on property consisting of a 67 single complex, which property shall include a breweryand such68other structures which promote the brewery and the tourist69industry of the state. However, such property may be divided by 70 no more than one public street or highway. A vendor’s license 71 issued under this subsection is subject to the following 72 restrictions: 73 (a) Sales to consumers for off-premises consumption of malt 74 beverages are limited to growlers that are filled or refilled 75 with malt beverages manufactured on the licensed premises 76 pursuant to the requirements of s. 563.061. Such sales must be 77 made directly to consumers in face-to-face transactions. Malt 78 beverages manufactured at another location, including another 79 licensed manufacturing premises directly or indirectly owned in 80 whole or in part by the manufacturer, and malt beverages 81 manufactured by any other manufacturer may be sold as authorized 82 by the manufacturer’s vendor license, provided that malt 83 beverages sold for consumption off the licensed premises shall 84 be obtained from a licensed distributor and sold to the consumer 85 in their original sealed containers. This paragraph does not 86 prohibit the sale of other alcoholic beverages for on-premises 87 or off-premises consumption, as authorized under the 88 manufacturer’s vendor license, provided that such beverages are 89 obtained from a licensed distributor. 90 (b) Notwithstanding s. 561.57(1), the delivery of a sealed 91 container or growler containing a malt beverage off a licensed 92 premises, whether by common or premises carrier or by an 93 operator of a privately owned motor vehicle or other conveyance, 94 is prohibited. In addition, a consumer or other person may not 95 arrange for the delivery of a sealed container or growler 96 containing a malt beverage off the licensed premises to the 97 consumer, whether by common or premises carrier or by an 98 operator of a privately owned motor vehicle or other conveyance. 99 However, this paragraph does not prohibit a consumer from taking 100 the sealed container or growler containing a malt beverage 101 purchased by the consumer under this subsection from the 102 licensed premises to another location by a privately owned motor 103 vehicle or other conveyance. 104 (c) A manufacturer licensed as a vendor is responsible for 105 applicable reports pursuant to ss. 561.50 and 561.55 with 106 respect to the amount of malt beverages sold or given to 107 consumers on the licensed premises each month and must pay the 108 applicable excise taxes to the division by the 10th day of each 109 month for the previous month. 110 (d) This subsection does not preclude a licensed 111 manufacturer of malt beverages from also holding a permanent 112 food service license at the licensed premises. 113 (e) This subsection is a limited exception to ss. 561.22 114 and 561.42. Except as specifically provided in this subsection 115 to permit a manufacturer of malt beverages to also be licensed 116 as a vendor, a manufacturer of malt beverages is subject to the 117 restrictions in ss. 561.22 and 561.42. 118 (3)(a)Notwithstanding s. 561.22, s. 561.42, or any other 119 provisionNotwithstanding other provisionsof the Beverage Law, 120 aanyvendor licensed in this state may be licensed as a 121 manufacturer of malt beverages if the vendor satisfies the 122 requirements of this subsection.upon a finding by the division123that:124 (a) The division may issue a license if it finds that all 125 of the following conditions are met: 126 1. The vendor will be engaged in brewing malt beverages at 127 a single licensed premiseslocationand in an amount thatwhich128 will not exceed 10,000 kegs per year. As used inFor purposes of129 this subparagraphsubsection, the term “keg” means 15.5 gallons. 130 2. The malt beveragessobrewed will be sold to consumers 131 for consumption on the vendor’s licensed premises or on 132 contiguous licensed premises owned by the vendor. 133 3. The applicant holds a permanent food service license. 134 (b) A licensee may sell the following alcoholic beverages, 135 which may be sold only in face-to-face transactions with 136 consumers: 137 1. Malt beverages that are manufactured on the licensed 138 premises for on-premises consumption. 139 2. Malt beverages that are manufactured by other 140 manufacturers for on-premises consumption as authorized under 141 its vendor’s license. 142 3. Wine or liquor for on-premises consumption as authorized 143 under its vendor’s license. 144 (c) A licensee may not: 145 1. Ship malt beverages to or between licensed premises 146 owned by the licensee. A licensee is not a manufacturer for the 147 purposes of s. 563.022(14). 148 2. Distribute or sell malt beverages off the licensed 149 premises. 150 (d)(b)A licensee isAny vendor which is also licensed as a151manufacturer of malt beverages pursuant to this subsection shall152beresponsible for applicable reports pursuant to ss. 561.50 and 153 561.55 with respect to the amount of beverage manufactured each 154 month and mustshallpay the applicable excise taxesthereonto 155 the division by the 10th day of each month for the previous 156 month. 157 (e)(c)AIt shall be unlawful for anylicensed distributor 158 of malt beverages or ananyofficer, agent, or other 159 representative thereof may nottodiscourage or prohibit a 160 licenseeany vendor licensed as a manufacturer under this161subsectionfrom offering malt beverages brewed for consumption 162 on the licensed premises of the vendor. 163 (f)(d)AIt shall be unlawful for anymanufacturer of malt 164 beverages or ananyofficer, agent, or other representative 165 thereof may nottotake any action to discourage or prohibit a 166anydistributor of the manufacturer’s product from distributing 167 such product to a licenseelicensed vendor which is also168licensed as a manufacturer of malt beverages pursuant to this169subsection. 170 (g) As used in this subsection, the term “licensee” means a 171 vendor licensed as a manufacturer of malt beverages pursuant to 172 this subsection. 173 (4) The Legislature intends that the provisions relating to 174 the sale of malt beverages by a malt beverage manufacturer 175 pursuant to subsection (2) and the operation of a licensed 176 vendor pursuant to subsection (3) constitute limited exceptions 177 to the manufacturing and vendor licensing requirements of the 178 Beverage Law. Anything not specifically authorized in 179 subsections (2) and (3) is prohibited unless otherwise 180 authorized under the Beverage Law. 181 Section 3. Section 561.37, Florida Statutes, is amended to 182 read: 183 561.37 Bond for payment of taxes.—Each manufacturer and 184 each distributor shall file with the division a surety bond 185 acceptable to the division in the sum of $25,000 as surety for 186 the payment of all taxes, provided, however, that when in the 187 discretion of the division the amount of business done by the 188 manufacturer or distributor is of such volume that a bond of 189 less than $25,000 will be adequate to secure the payment of all 190 taxes assessed or authorized by the Beverage Law, the division 191 may accept a bond in a lesser sum than $25,000, but in no event 192 shall it accept a bond of less than $10,000, and it may at any 193 time in its discretion require any bond in an amount less than 194 $25,000 to be increased so as not to exceed $25,000; provided, 195 however, that the amount of bond required for a brewer shall be 196 $5,000$20,000, except that where, in the discretion of the 197 division, the amount of business done by the brewer is of such 198 volume that a bond of less than $5,000$20,000will be adequate 199 to secure the payment of all taxes assessed or authorized by the 200 Beverage Law, the division may accept a bond in a lesser sum 201 than $5,000$20,000, but in no event shall it accept a bond of 202 less than $2,500$10,000, and it may at any time in its 203 discretion require any bond in an amount less than $5,000 204$20,000to be increased so as not to exceed $5,000$20,000; 205 provided further that the amount of the bond required for a wine 206 or wine and cordial manufacturer shall be $5,000, except that, 207 in the case of a manufacturer engaged solely in the experimental 208 manufacture of wines and cordials from Florida products, where 209 in the discretion of the division the amount of business done by 210 such manufacturer is of such volume that a bond of less than 211 $5,000 will be adequate to secure the payment of all taxes 212 assessed or authorized by the Beverage Law, the division may 213 accept a bond in a lesser sum than $5,000, but in no event shall 214 it accept a bond of less than $1,000 and it may at any time in 215 its discretion require a bond in an amount less than $5,000 to 216 be increased so as not to exceed $5,000; provided, further, that 217 the amount of bond required for a distributor who sells only 218 beverages containing not more than 4.007 percent of alcohol by 219 volume, in counties where the sale of intoxicating liquors, 220 wines, and beers is prohibited, and to distributors who sell 221 only beverages containing not more than 17.259 percent of 222 alcohol by volume and wines regardless of alcoholic content, in 223 counties where the sale of intoxicating liquors, wines, and 224 beers is permitted, shall file with the division a surety bond 225 acceptable to the division in the sum of $25,000, as surety for 226 the payment of all taxes; provided, however, that where in the 227 discretion of the division the amount of business done by such 228 distributor is of such volume that a bond of less than $25,000 229 will be adequate to secure the payment of all taxes assessed or 230 authorized by the Beverage Law the division may accept a bond in 231 a less sum than $25,000 but in no event shall it accept a bond 232 less than $1,000 and it may at any time in its discretion 233 require any bond in an amount less than $25,000 to be increased 234 so as not to exceed $25,000; provided, further, that the amount 235 of bond required for a distributor in a county having a 236 population of 15,000 or less who procures a license by which his 237 or her sales are restricted to distributors and vendors who have 238 obtained licenses in the same county, shall be $5,000. 239 Section 4. Subsection (1) of section 561.5101, Florida 240 Statutes, is amended to read: 241 561.5101 Come-to-rest requirement; exceptions; penalties.— 242 (1) For purposes of inspection and tax-revenue control, all 243 malt beverages, except those manufactured and sold pursuant to 244 s. 561.221(2) or (3)s. 561.221(3), must come to rest at the 245 licensed premises of an alcoholic beverage wholesaler in this 246 state before being sold to a vendor by the wholesaler. The 247 prohibition contained in this subsection does not apply to the 248 shipment of malt beverages commonly known as private labels. The 249 prohibition contained in this subsection doesshallnot prevent 250 a manufacturer from shipping malt beverages for storage at a 251 bonded warehouse facility if, provided thatsuch malt beverages 252 are distributed as provided in this subsection or to an out-of 253 state entity. 254 Section 5. Subsections (1) and (3) of section 562.34, 255 Florida Statutes, are amended to read: 256 562.34 Containers; seizure and forfeiture.— 257 (1) AIt shall be unlawful for anyperson may nottohave 258 in her or his possession, custody, or control any cans, jugs, 259 jars, bottles, or vessels,or any other type of containers that 260whichare being used, are intended to be used, or are known by 261 the possessor to have been used to bottle or package alcoholic 262 beverages.; however,This subsection doesprovision shallnot 263 apply to aanyperson properly licensed to bottle or package 264 such alcoholic beverages, aor to anyperson intending to 265 dispose of such containers to a person, firm, or corporation 266 properly licensed to bottle or package such alcoholic beverages, 267 or a person that has in her or his possession a growler. 268 (3) AIt shall be unlawful for anyperson may notto269 transport any cans, jugs, jars, bottles, or vessels,or any 270 other type of containers intended to be used to bottle or 271 package alcoholic beverages.; however,This subsection does 272section shallnot apply to aanyfirm or corporation holding a 273 license to manufacture or distribute such alcoholic beverages, a 274and shall not apply to anyperson transporting such containers 275 to aanyperson, firm, or corporation holding a license to 276 manufacture or distribute such alcoholic beverages, or a person 277 transporting a growler. 278 Section 6. Subsection (14) of section 563.022, Florida 279 Statutes, is reenacted and amended to read: 280 563.022 Relations between beer distributors and 281 manufacturers.— 282 (14) MANUFACTURER; PROHIBITED INTERESTS.— 283 (a) This subsection applies to: 284 1. A manufacturer; 285 2. AnAnyofficer, director, agent, or employee of a 286 manufacturer; or 287 3. An affiliate of aanymanufacturer, regardless of 288 whether the affiliation is corporate or by management, 289 direction, or control. 290 (b) Except as provided in paragraph (c), annoentity or 291 person specified in paragraph (a) may not have an interest in 292 the license, business, assets, or corporate stock of a licensed 293 distributor and may notnor shall such entitysell directly to a 294anyvendor in this state other than a vendorto vendors who are295 licensed pursuant to s. 561.221(2). 296 (c) AnAnyentity or person specifieddescribedin 297 paragraph (a) may financially assist a proposed distributor in 298 acquiring ownership of the distributorship through participation 299 in a limited partnership arrangement in which the entity or 300 person specifieddescribedin paragraph (a) is a limited partner 301 and the proposed distributor seeking to acquire ownership of the 302 distributorship is the general partner. Such a limited 303 partnership arrangementarrangementsmay exist for up tono304longer than8 years from itstheircreation and mayshallnot be 305 extended or renewed by means of a transfer of full ownership to 306 an entity or person specifieddescribedin paragraph (a) 307 followed by the creation of a new limited partnership or by any 308 other means. In any such arrangement for financial assistance, 309 the federal basic permit and distributor’s license issued by the 310 division shall be issued in the name of the distributor and not 311 in the name of an entity or person specifieddescribedin 312 paragraph (a). If, after the creation of a limited partnership 313 pursuant to this paragraph, an entity or person specified 314describedin paragraph (a) acquires title to the distributorship 315 thatwhichwas the subject of the limited partnership, the 316 entity or person specifieddescribedin paragraph (a) shall 317 divest itself of the distributorship within 180 days, and the 318 distributorship shall be ineligible for limited partnership 319 financing for 20 years thereafter. AnNoentity or person 320 specifieddescribedin paragraph (a) may notshallenter into a 321 limited partnership arrangement with a licensed distributor 322 whose distributorship existed and was operated beforeprior to323 the creation of such limited partnership arrangement. 324 (d)Nothing inThe Beverage Law does notshall be construed325toprohibit a manufacturer from shipping products to or between 326 its breweries without a distributor’s license. 327 (e) Notwithstandingthe provisions ofparagraph (b), anany328 entity or person specifiednamedin paragraph (a) may have an 329 interest in the license, business, assets, or corporate stock of 330 a licensed distributor for a maximum of 180 consecutive days as 331 the result of a judgment of foreclosure against the distributor 332 or for 180 consecutive days after acquiring title pursuant to 333 the written request of the licensed distributor. Under either of 334 these circumstances, manufacturer ownership of an interest in 335 the license, business, assets, or corporate stock of a licensed 336 distributor mayshallonly be for 180 days and only for the 337 purpose of facilitating an orderly transfer of the 338 distributorship to an owner not affiliated with a manufacturer. 339 (f) Notwithstandingthe provisions ofparagraph (b), anany340 entity or person specifiednamedin paragraph (a) may have a 341 security interest in the inventory or property of its licensed 342 distributors to secure payment for thatsaidinventory or other 343 loans for other purposes. 344 Section 7. Section 563.06, Florida Statutes, is amended to 345 read: 346 563.06 Malt beverages; imprint on individual container; 347 size of containers; growlers; exemptions.— 348 (1) On and after October 1, 1959, all taxable malt 349 beverages packaged in individual containers possessed by any 350 person in the state for the purpose of sale or resale in the 351 state, except operators of railroads, sleeping cars, steamships, 352 buses, and airplanes engaged in interstate commerce and licensed 353 under this section, shall have imprinted thereon in clearly 354 legible fashion by any permanent method the word “Florida” or 355 “FL” and no other state name or abbreviation of any state name 356 in not less than 8-point type. The word “Florida” or “FL” shall 357 appear first or last, if imprinted in conjunction with any 358 manufacturer’s code. A facsimile of the imprinting and its 359 location as it will appear on the individual container shall be 360 submitted to the division for approval. 361 (2) Nothing herein contained shall require such designation 362 to be attached to individual containers of malt beverages which 363 are transported through this state and which are not sold, 364 delivered, or stored for sale therein, if transported in 365 accordance with such rules and regulations as adopted by the 366 division; nor shall this requirement apply to malt beverages 367 packaged in individual containers and held on the premises of a 368 brewer or bottler, which malt beverages are for sale and 369 delivery to persons outside the state. 370 (3) Possession by any person in the state, except as 371 otherwise provided herein, of more than 4 1/2 gallons of malt 372 beverages in individual containers which do not have the word 373 “Florida” or “FL” as herein provided, shall be prima facie 374 evidence that said malt beverage is possessed for the purpose of 375 sale or resale. 376 (4) Except as otherwise provided herein, any malt beverages 377 in individual containers held or possessed in the state for the 378 purpose of sale or resale within the state which do not bear the 379 word “Florida” or “FL” thereon shall, at the direction of the 380 division, be confiscated in accordance with the provisions of 381 the Beverage Law. 382 (5)(a) Nothing contained in this section shall require that 383 malt beverages packaged in individual containers and possessed 384 by any person in the state for purposes of sale or resale in the 385 state have imprinted thereon the word “Florida” or “FL” if the 386 manufacturer of the malt beverages can establish before the 387 division that the manufacturer has a tracking system in place, 388 by use of code or otherwise, which enables the manufacturer, 389 with at least 85 percent reliability by July 1, 1996, and 90 390 percent reliability by January 1, 2000, to identify the 391 following: 392 1. The place where individual containers of malt beverages 393 were produced; 394 2. The state into which the individual containers of malt 395 beverages were shipped; and 396 3. The individual distributors within the state which 397 received the individual containers of malt beverages. 398 (b) Prior to shipping individual containers of malt 399 beverages into the state which do not have the word “Florida” or 400 “FL” imprinted thereon, the manufacturer must file an 401 application with the division to claim the exemption contained 402 herein and must obtain approval from the division to ship 403 individual containers of malt beverages into the state which do 404 not have the word “Florida” or “FL” imprinted thereon. 405 Information furnished by the manufacturer to establish the 406 criteria contained within paragraph (a) may be subject to an 407 annual audit and verification by the division. The division may 408 revoke an approved exemption if the manufacturer refuses to 409 furnish the information required in paragraph (a) upon request 410 of the division, or if the manufacturer fails to permit a 411 subsequent verification audit, or if the manufacturer fails to 412 fully cooperate with the division during the conducting of an 413 audit. 414 (c) When a distributor has information that malt beverages 415 may have been shipped into Florida on which payment of Florida 416 excise taxes has not been made, such information may be provided 417 to the division and the division shall investigate to ascertain 418 whether any violations of Florida law have occurred. 419 (6) All malt beverages packaged in individual containers 420 sold or offered for sale by vendors at retail in this state, 421 except for malt beverages sold in growlers pursuant to s. 422 563.061, mustshallbe in individual containers containing no 423 more than 32 ounces of such malt beverages.; provided, however,424that nothing contained inThis section does notshallaffect 425 malt beverages packaged in bulk or in kegs or in barrels or in 426 any individual container containing 1 gallon or more of such 427 malt beverage regardless of individual container type. 428 (7) Any person, firm, or corporation, its agents, officers 429 or employees, violating any of the provisions of this section, 430 shall be guilty of a misdemeanor of the first degree, punishable 431 as provided in s. 775.082 or s. 775.083; and the license, if 432 any, shall be subject to revocation or suspension by the 433 division. 434 Section 8. Section 563.061, Florida Statutes, is created to 435 read: 436 563.061 Malt beverages; filling or refilling of growlers.— 437 (1) The filling or refilling of a growler is limited to: 438 (a) A manufacturer of malt beverages who holds a valid 439 vendor’s license pursuant to s. 561.221(2) if the growler is 440 filled or refilled with malt beverages manufactured on the 441 licensed premises for sale for off-premises consumption to 442 consumers in a face-to-face transaction on the licensed 443 premises; 444 (b) A vendor holding a quota license under ss. 561.20(1) 445 and 565.02(1)(a) with malt beverages authorized under that 446 license for sale for off-premises consumption to consumers in a 447 face-to-face transaction on the licensed premises; or 448 (c) A vendor holding a license under s. 563.02(1)(b)-(f), 449 s. 564.02(1)(b)-(f), or s. 565.02(1)(b)-(f) which authorizes 450 consumption of malt beverages on the premises, unless such 451 license restricts the consumption of malt beverages to the 452 premises only. 453 (2) The growler must have an unbroken seal, or its contents 454 must be incapable of being immediately consumed. 455 (3) The growler must be clearly labeled as containing an 456 alcoholic beverage and provide the name of the manufacturer, the 457 brand, the volume, the percentage of alcohol by volume, and the 458 required federal health warning notice for alcoholic beverages. 459 If a growler being refilled has an existing label or other 460 identifying mark of a manufacturer or brand from a prior filling 461 or refilling, that label must be covered sufficiently to 462 indicate the manufacturer and brand of the malt beverage being 463 placed in the container at that refilling. 464 (4) The growler must be clean before being filled or 465 refilled. 466 (5) A licensee authorized to fill and refill growlers may 467 not use growlers for purposes of distribution or sale outside 468 the manufacturer’s or vendor’s licensed premises, except as 469 authorized under this subsection and s. 561.221(2). 470 Section 9. If any provision of this act or its application 471 to any person or circumstance is held invalid, the invalidity 472 does not affect other provisions or applications of the act 473 which can be given effect without the invalid provision or 474 application, and to this end the provisions of this act are 475 severable. 476 Section 10. This act shall take effect July 1, 2014.