Bill Text: FL S1714 | 2014 | Regular Session | Introduced
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-Introduced.html
Bill Title: Malt Beverages
Spectrum: Committee Bill
Status: (Failed) 2014-05-02 - Died in Messages [S1714 Detail]
Download: Florida-2014-S1714-Introduced.html
Florida Senate - 2014 SB 1714 By the Committee on Regulated Industries 580-03266-14 20141714__ 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 32 ounces, 64 ounces, or 128 ounces which, in response to an 35 order in a face-to-face transaction for off-premises 36 consumption, is filled with a malt beverage and sealed on the 37 premises at or immediately before or after the time of sale. 38 Section 2. Section 561.221, Florida Statutes, is amended to 39 read: 40 561.221 Licensing of manufacturers and distributors as 41 vendors and of vendors as manufacturers; exceptions, conditions, 42 and limitations.— 43 (1)(a) Nothing contained in s. 561.22, s. 561.42, or any 44 other provision of the Beverage Law prohibits the ownership, 45 management, operation, or control of not more than three 46 vendor’s licenses for the sale of alcoholic beverages by a 47 manufacturer of wine who is licensed and engaged in the 48 manufacture of wine in this state, even if such manufacturer is 49 also licensed as a distributor; provided that no such vendor’s 50 license shall be owned, managed, operated, or controlled by any 51 licensed manufacturer of wine unless the licensed premises of 52 the vendor are situated on property contiguous to the 53 manufacturing premises of the licensed manufacturer of wine. 54 (b) The Division of Alcoholic Beverages and Tobacco shall 55 issue permits to a certified Florida Farm Winery to conduct 56 tasting and sales of wine produced by certified Florida Farm 57 Wineries at Florida fairs, trade shows, expositions, and 58 festivals. The certified Florida Farm Winery shall pay all entry 59 fees and shall have a winery representative present during the 60 event. The permit is limited to the length of the event. 61 (2) Notwithstanding s. 561.22, s. 561.42, or any other 62 provision of the Beverage Law, the division is authorized to 63 issue vendor’s licenses to a manufacturer of malt beverages, 64 even if such manufacturer is also licensed as a distributor, for 65 the sale of alcoholic beverages on property consisting of a 66 single complex, which property shall include a brewery and such 67 other structures which promote the brewery and the tourist 68 industry of the state. However, such property may be divided by 69 no more than one public street or highway. A vendor’s license 70 issued under this subsection is subject to the following 71 restrictions: 72 (a) Sales to consumers for off-premises consumption of malt 73 beverages are limited to growlers that are filled or refilled 74 with malt beverages manufactured on the licensed premises 75 pursuant to the requirements of s. 563.061. Such sales must be 76 made directly to consumers in face-to-face transactions. Malt 77 beverages manufactured at another location, including another 78 licensed manufacturing premises directly or indirectly owned in 79 whole or in part by the manufacturer, and malt beverages 80 manufactured by any other manufacturer may be sold as authorized 81 by the manufacturer’s vendor license, provided that malt 82 beverages sold for consumption off the licensed premises shall 83 be obtained from a licensed distributor and sold to the consumer 84 in their original sealed containers. This paragraph does not 85 prohibit the sale of other alcoholic beverages for on-premises 86 or off-premises consumption, as authorized under the 87 manufacturer’s vendor license, provided that such beverages are 88 obtained from a licensed distributor. 89 (b) Notwithstanding s. 561.57(1), the delivery of a sealed 90 container or growler containing a malt beverage off a licensed 91 premises, whether by common or premises carrier or by an 92 operator of a privately owned motor vehicle or other conveyance, 93 is prohibited. In addition, a consumer or other person may not 94 arrange for the delivery of a sealed container or growler 95 containing a malt beverage off the licensed premises to the 96 consumer, whether by common or premises carrier or by an 97 operator of a privately owned motor vehicle or other conveyance. 98 However, this paragraph does not prohibit a consumer from taking 99 the sealed container or growler containing a malt beverage 100 purchased by the consumer under this subsection from the 101 licensed premises to another location by a privately owned motor 102 vehicle or other conveyance. 103 (c) A manufacturer licensed as a vendor is responsible for 104 applicable reports pursuant to ss. 561.50 and 561.55 with 105 respect to the amount of malt beverages sold or given to 106 consumers on the licensed premises each month and must pay the 107 applicable excise taxes to the division by the 10th day of each 108 month for the previous month. 109 (d) This subsection does not preclude a licensed 110 manufacturer of malt beverages from also holding a permanent 111 food service license at the licensed premises. 112 (e) This subsection is a limited exception to ss. 561.22 113 and 561.42. Except as specifically provided in this subsection 114 to permit a manufacturer of malt beverages to also be licensed 115 as a vendor, a manufacturer of malt beverages is subject to the 116 restrictions in ss. 561.22 and 561.42. 117 (3)(a)Notwithstanding s. 561.22, s. 561.42, or any other 118 provisionNotwithstanding other provisionsof the Beverage Law, 119 aanyvendor licensed in this state may be licensed as a 120 manufacturer of malt beverages if the vendor satisfies the 121 requirements of this subsection.upon a finding by the division122that:123 (a) The division may issue a license if it finds that all 124 of the following conditions are met: 125 1. The vendor will be engaged in brewing malt beverages at 126 a single licensed premiseslocationand in an amount thatwhich127 will not exceed 10,000 kegs per year. As used inFor purposes of128 this subparagraphsubsection, the term “keg” means 15.5 gallons. 129 2. The malt beveragessobrewed will be sold to consumers 130 for consumption on the vendor’s licensed premises or on 131 contiguous licensed premises owned by the vendor. 132 3. The applicant holds a permanent food service license. 133 (b) A licensee may sell the following alcoholic beverages, 134 which may be sold only in face-to-face transactions with 135 consumers: 136 1. Malt beverages that are manufactured on the licensed 137 premises for on-premises consumption. 138 2. Malt beverages that are manufactured by other 139 manufacturers for on-premises consumption as authorized under 140 its vendor’s license. 141 3. Wine or liquor for on-premises consumption as authorized 142 under its vendor’s license. 143 (c) A licensee may not: 144 1. Ship malt beverages to or between licensed premises 145 owned by the licensee. A licensee is not a manufacturer for the 146 purposes of s. 563.022(14). 147 2. Distribute or sell malt beverages off the licensed 148 premises. 149 (d)(b)A licensee isAny vendor which is also licensed as a150manufacturer of malt beverages pursuant to this subsection shall151beresponsible for applicable reports pursuant to ss. 561.50 and 152 561.55 with respect to the amount of beverage manufactured each 153 month and mustshallpay the applicable excise taxesthereonto 154 the division by the 10th day of each month for the previous 155 month. 156 (e)(c)AIt shall be unlawful for anylicensed distributor 157 of malt beverages or ananyofficer, agent, or other 158 representative thereof may nottodiscourage or prohibit a 159 licenseeany vendor licensed as a manufacturer under this160subsectionfrom offering malt beverages brewed for consumption 161 on the licensed premises of the vendor. 162 (f)(d)AIt shall be unlawful for anymanufacturer of malt 163 beverages or ananyofficer, agent, or other representative 164 thereof may nottotake any action to discourage or prohibit a 165anydistributor of the manufacturer’s product from distributing 166 such product to a licenseelicensed vendor which is also167licensed as a manufacturer of malt beverages pursuant to this168subsection. 169 (g) As used in this subsection, the term “licensee” means a 170 vendor licensed as a manufacturer of malt beverages pursuant to 171 this subsection. 172 (4) The Legislature intends that the provisions relating to 173 the sale of malt beverages by a malt beverage manufacturer 174 pursuant to subsection (2) and the operation of a licensed 175 vendor pursuant to subsection (3) constitute limited exceptions 176 to the manufacturing and vendor licensing requirements of the 177 Beverage Law. Anything not specifically authorized in 178 subsections (2) and (3) is prohibited unless otherwise 179 authorized under the Beverage Law. 180 Section 3. Section 561.37, Florida Statutes, is amended to 181 read: 182 561.37 Bond for payment of taxes.—Each manufacturer and 183 each distributor shall file with the division a surety bond 184 acceptable to the division in the sum of $25,000 as surety for 185 the payment of all taxes, provided, however, that when in the 186 discretion of the division the amount of business done by the 187 manufacturer or distributor is of such volume that a bond of 188 less than $25,000 will be adequate to secure the payment of all 189 taxes assessed or authorized by the Beverage Law, the division 190 may accept a bond in a lesser sum than $25,000, but in no event 191 shall it accept a bond of less than $10,000, and it may at any 192 time in its discretion require any bond in an amount less than 193 $25,000 to be increased so as not to exceed $25,000; provided, 194 however, that the amount of bond required for a brewer shall be 195 $5,000$20,000, except that where, in the discretion of the 196 division, the amount of business done by the brewer is of such 197 volume that a bond of less than $5,000$20,000will be adequate 198 to secure the payment of all taxes assessed or authorized by the 199 Beverage Law, the division may accept a bond in a lesser sum 200 than $5,000$20,000, but in no event shall it accept a bond of 201 less than $2,500$10,000, and it may at any time in its 202 discretion require any bond in an amount less than $5,000 203$20,000to be increased so as not to exceed $5,000$20,000; 204 provided further that the amount of the bond required for a wine 205 or wine and cordial manufacturer shall be $5,000, except that, 206 in the case of a manufacturer engaged solely in the experimental 207 manufacture of wines and cordials from Florida products, where 208 in the discretion of the division the amount of business done by 209 such manufacturer is of such volume that a bond of less than 210 $5,000 will be adequate to secure the payment of all taxes 211 assessed or authorized by the Beverage Law, the division may 212 accept a bond in a lesser sum than $5,000, but in no event shall 213 it accept a bond of less than $1,000 and it may at any time in 214 its discretion require a bond in an amount less than $5,000 to 215 be increased so as not to exceed $5,000; provided, further, that 216 the amount of bond required for a distributor who sells only 217 beverages containing not more than 4.007 percent of alcohol by 218 volume, in counties where the sale of intoxicating liquors, 219 wines, and beers is prohibited, and to distributors who sell 220 only beverages containing not more than 17.259 percent of 221 alcohol by volume and wines regardless of alcoholic content, in 222 counties where the sale of intoxicating liquors, wines, and 223 beers is permitted, shall file with the division a surety bond 224 acceptable to the division in the sum of $25,000, as surety for 225 the payment of all taxes; provided, however, that where in the 226 discretion of the division the amount of business done by such 227 distributor is of such volume that a bond of less than $25,000 228 will be adequate to secure the payment of all taxes assessed or 229 authorized by the Beverage Law the division may accept a bond in 230 a less sum than $25,000 but in no event shall it accept a bond 231 less than $1,000 and it may at any time in its discretion 232 require any bond in an amount less than $25,000 to be increased 233 so as not to exceed $25,000; provided, further, that the amount 234 of bond required for a distributor in a county having a 235 population of 15,000 or less who procures a license by which his 236 or her sales are restricted to distributors and vendors who have 237 obtained licenses in the same county, shall be $5,000. 238 Section 4. Subsection (1) of section 561.5101, Florida 239 Statutes, is amended to read: 240 561.5101 Come-to-rest requirement; exceptions; penalties.— 241 (1) For purposes of inspection and tax-revenue control, all 242 malt beverages, except those manufactured and sold pursuant to 243 s. 561.221(2) or (3)s. 561.221(3), must come to rest at the 244 licensed premises of an alcoholic beverage wholesaler in this 245 state before being sold to a vendor by the wholesaler. The 246 prohibition contained in this subsection does not apply to the 247 shipment of malt beverages commonly known as private labels. The 248 prohibition contained in this subsection doesshallnot prevent 249 a manufacturer from shipping malt beverages for storage at a 250 bonded warehouse facility if, provided thatsuch malt beverages 251 are distributed as provided in this subsection or to an out-of 252 state entity. 253 Section 5. Subsections (1) and (3) of section 562.34, 254 Florida Statutes, are amended to read: 255 562.34 Containers; seizure and forfeiture.— 256 (1) AIt shall be unlawful for anyperson may nottohave 257 in her or his possession, custody, or control any cans, jugs, 258 jars, bottles, or vessels,or any other type of containers that 259whichare being used, are intended to be used, or are known by 260 the possessor to have been used to bottle or package alcoholic 261 beverages.; however,This subsection doesprovision shallnot 262 apply to aanyperson properly licensed to bottle or package 263 such alcoholic beverages, aor to anyperson intending to 264 dispose of such containers to a person, firm, or corporation 265 properly licensed to bottle or package such alcoholic beverages, 266 or a person that has in her or his possession a growler. 267 (3) AIt shall be unlawful for anyperson may notto268 transport any cans, jugs, jars, bottles, or vessels,or any 269 other type of containers intended to be used to bottle or 270 package alcoholic beverages.; however,This subsection does 271section shallnot apply to aanyfirm or corporation holding a 272 license to manufacture or distribute such alcoholic beverages, a 273and shall not apply to anyperson transporting such containers 274 to aanyperson, firm, or corporation holding a license to 275 manufacture or distribute such alcoholic beverages, or a person 276 transporting a growler. 277 Section 6. Subsection (14) of section 563.022, Florida 278 Statutes, is reenacted and amended to read: 279 563.022 Relations between beer distributors and 280 manufacturers.— 281 (14) MANUFACTURER; PROHIBITED INTERESTS.— 282 (a) This subsection applies to: 283 1. A manufacturer; 284 2. AnAnyofficer, director, agent, or employee of a 285 manufacturer; or 286 3. An affiliate of aanymanufacturer, regardless of 287 whether the affiliation is corporate or by management, 288 direction, or control. 289 (b) Except as provided in paragraph (c), annoentity or 290 person specified in paragraph (a) may not have an interest in 291 the license, business, assets, or corporate stock of a licensed 292 distributor and may notnor shall such entitysell directly to a 293anyvendor in this state other than a vendorto vendors who are294 licensed pursuant to s. 561.221(2). 295 (c) AnAnyentity or person specifieddescribedin 296 paragraph (a) may financially assist a proposed distributor in 297 acquiring ownership of the distributorship through participation 298 in a limited partnership arrangement in which the entity or 299 person specifieddescribedin paragraph (a) is a limited partner 300 and the proposed distributor seeking to acquire ownership of the 301 distributorship is the general partner. Such a limited 302 partnership arrangementarrangementsmay exist for up tono303longer than8 years from itstheircreation and mayshallnot be 304 extended or renewed by means of a transfer of full ownership to 305 an entity or person specifieddescribedin paragraph (a) 306 followed by the creation of a new limited partnership or by any 307 other means. In any such arrangement for financial assistance, 308 the federal basic permit and distributor’s license issued by the 309 division shall be issued in the name of the distributor and not 310 in the name of an entity or person specifieddescribedin 311 paragraph (a). If, after the creation of a limited partnership 312 pursuant to this paragraph, an entity or person specified 313describedin paragraph (a) acquires title to the distributorship 314 thatwhichwas the subject of the limited partnership, the 315 entity or person specifieddescribedin paragraph (a) shall 316 divest itself of the distributorship within 180 days, and the 317 distributorship shall be ineligible for limited partnership 318 financing for 20 years thereafter. AnNoentity or person 319 specifieddescribedin paragraph (a) may notshallenter into a 320 limited partnership arrangement with a licensed distributor 321 whose distributorship existed and was operated beforeprior to322 the creation of such limited partnership arrangement. 323 (d)Nothing inThe Beverage Law does notshall be construed324toprohibit a manufacturer from shipping products to or between 325 its breweries without a distributor’s license. 326 (e) Notwithstandingthe provisions ofparagraph (b), anany327 entity or person specifiednamedin paragraph (a) may have an 328 interest in the license, business, assets, or corporate stock of 329 a licensed distributor for a maximum of 180 consecutive days as 330 the result of a judgment of foreclosure against the distributor 331 or for 180 consecutive days after acquiring title pursuant to 332 the written request of the licensed distributor. Under either of 333 these circumstances, manufacturer ownership of an interest in 334 the license, business, assets, or corporate stock of a licensed 335 distributor mayshallonly be for 180 days and only for the 336 purpose of facilitating an orderly transfer of the 337 distributorship to an owner not affiliated with a manufacturer. 338 (f) Notwithstandingthe provisions ofparagraph (b), anany339 entity or person specifiednamedin paragraph (a) may have a 340 security interest in the inventory or property of its licensed 341 distributors to secure payment for thatsaidinventory or other 342 loans for other purposes. 343 Section 7. Section 563.06, Florida Statutes, is amended to 344 read: 345 563.06 Malt beverages; imprint on individual container; 346 size of containers; growlers; exemptions.— 347 (1) On and after October 1, 1959, all taxable malt 348 beverages packaged in individual containers possessed by any 349 person in the state for the purpose of sale or resale in the 350 state, except operators of railroads, sleeping cars, steamships, 351 buses, and airplanes engaged in interstate commerce and licensed 352 under this section, shall have imprinted thereon in clearly 353 legible fashion by any permanent method the word “Florida” or 354 “FL” and no other state name or abbreviation of any state name 355 in not less than 8-point type. The word “Florida” or “FL” shall 356 appear first or last, if imprinted in conjunction with any 357 manufacturer’s code. A facsimile of the imprinting and its 358 location as it will appear on the individual container shall be 359 submitted to the division for approval. 360 (2) Nothing herein contained shall require such designation 361 to be attached to individual containers of malt beverages which 362 are transported through this state and which are not sold, 363 delivered, or stored for sale therein, if transported in 364 accordance with such rules and regulations as adopted by the 365 division; nor shall this requirement apply to malt beverages 366 packaged in individual containers and held on the premises of a 367 brewer or bottler, which malt beverages are for sale and 368 delivery to persons outside the state. 369 (3) Possession by any person in the state, except as 370 otherwise provided herein, of more than 4 1/2 gallons of malt 371 beverages in individual containers which do not have the word 372 “Florida” or “FL” as herein provided, shall be prima facie 373 evidence that said malt beverage is possessed for the purpose of 374 sale or resale. 375 (4) Except as otherwise provided herein, any malt beverages 376 in individual containers held or possessed in the state for the 377 purpose of sale or resale within the state which do not bear the 378 word “Florida” or “FL” thereon shall, at the direction of the 379 division, be confiscated in accordance with the provisions of 380 the Beverage Law. 381 (5)(a) Nothing contained in this section shall require that 382 malt beverages packaged in individual containers and possessed 383 by any person in the state for purposes of sale or resale in the 384 state have imprinted thereon the word “Florida” or “FL” if the 385 manufacturer of the malt beverages can establish before the 386 division that the manufacturer has a tracking system in place, 387 by use of code or otherwise, which enables the manufacturer, 388 with at least 85 percent reliability by July 1, 1996, and 90 389 percent reliability by January 1, 2000, to identify the 390 following: 391 1. The place where individual containers of malt beverages 392 were produced; 393 2. The state into which the individual containers of malt 394 beverages were shipped; and 395 3. The individual distributors within the state which 396 received the individual containers of malt beverages. 397 (b) Prior to shipping individual containers of malt 398 beverages into the state which do not have the word “Florida” or 399 “FL” imprinted thereon, the manufacturer must file an 400 application with the division to claim the exemption contained 401 herein and must obtain approval from the division to ship 402 individual containers of malt beverages into the state which do 403 not have the word “Florida” or “FL” imprinted thereon. 404 Information furnished by the manufacturer to establish the 405 criteria contained within paragraph (a) may be subject to an 406 annual audit and verification by the division. The division may 407 revoke an approved exemption if the manufacturer refuses to 408 furnish the information required in paragraph (a) upon request 409 of the division, or if the manufacturer fails to permit a 410 subsequent verification audit, or if the manufacturer fails to 411 fully cooperate with the division during the conducting of an 412 audit. 413 (c) When a distributor has information that malt beverages 414 may have been shipped into Florida on which payment of Florida 415 excise taxes has not been made, such information may be provided 416 to the division and the division shall investigate to ascertain 417 whether any violations of Florida law have occurred. 418 (6) All malt beverages packaged in individual containers 419 sold or offered for sale by vendors at retail in this state, 420 except for malt beverages sold in growlers pursuant to s. 421 563.061, mustshallbe in individual containers containing no 422 more than 32 ounces of such malt beverages.; provided, however,423that nothing contained inThis section does notshallaffect 424 malt beverages packaged in bulk or in kegs or in barrels or in 425 any individual container containing 1 gallon or more of such 426 malt beverage regardless of individual container type. 427 (7) Any person, firm, or corporation, its agents, officers 428 or employees, violating any of the provisions of this section, 429 shall be guilty of a misdemeanor of the first degree, punishable 430 as provided in s. 775.082 or s. 775.083; and the license, if 431 any, shall be subject to revocation or suspension by the 432 division. 433 Section 8. Section 563.061, Florida Statutes, is created to 434 read: 435 563.061 Malt beverages; filling or refilling of growlers.— 436 (1) The filling or refilling of a growler is limited to: 437 (a) A manufacturer of malt beverages who holds a valid 438 vendor’s license pursuant to s. 561.221(2) if the growler is 439 filled or refilled with malt beverages manufactured on the 440 licensed premises for sale for off-premises consumption to 441 consumers in a face-to-face transaction on the licensed 442 premises; 443 (b) A vendor holding a quota license under ss. 561.20(1) 444 and 565.02(1)(a) with malt beverages authorized under that 445 license for sale for off-premises consumption to consumers in a 446 face-to-face transaction on the licensed premises; or 447 (c) A vendor holding a license under s. 563.02(1)(b)-(f), 448 s. 564.02(1)(b)-(f), or s. 565.02(1)(b)-(f) which authorizes 449 consumption of malt beverages on the premises, unless such 450 license restricts the consumption of malt beverages to the 451 premises only. 452 (2) The growler must have an unbroken seal, or its contents 453 must be incapable of being immediately consumed. 454 (3) The growler must be clearly labeled as containing an 455 alcoholic beverage and provide the name of the manufacturer, the 456 brand, the volume, the percentage of alcohol by volume, and the 457 required federal health warning notice for alcoholic beverages. 458 If a growler being refilled has an existing label or other 459 identifying mark of a manufacturer or brand from a prior filling 460 or refilling, that label must be covered sufficiently to 461 indicate the manufacturer and brand of the malt beverage being 462 placed in the container at that refilling. 463 (4) The growler must be clean before being filled or 464 refilled. 465 (5) A licensee authorized to fill and refill growlers may 466 not use growlers for purposes of distribution or sale outside 467 the manufacturer’s or vendor’s licensed premises, except as 468 authorized under this subsection and s. 561.221(2). 469 Section 9. If any provision of this act or its application 470 to any person or circumstance is held invalid, the invalidity 471 does not affect other provisions or applications of the act 472 which can be given effect without the invalid provision or 473 application, and to this end the provisions of this act are 474 severable. 475 Section 10. This act shall take effect July 1, 2014.