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A bill to be entitled

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An act relating to the Beverage Law; amending s. 561.42,

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F.S.; extending to importers and primary American sources

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of supply, brand owners, and brand registrants, and

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brokers, sales agents, and sales persons thereof, the

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prohibition against providing certain  financial

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assistance to retail vendors; defining the term "brand

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owner"; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 561.42, Florida Statutes, is amended to

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read:

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     561.42  Tied house evil; financial aid and assistance to

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vendor by manufacturer, or distributor, importer, Primary

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American source of supply, brand owner or registrant, or any

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broker, sales agent, or sales person thereof, prohibited;

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procedure for enforcement; exception.--

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     (1) No licensed manufacturer, or distributor, importer,

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primary American source of supply, or brand owner or registrant

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of any of the beverages herein referred to, whether licensed or

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operating in this state or out-of-state, nor any broker, sales

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agent, or sales person thereof, shall have any financial

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interest, directly or indirectly, in the establishment or

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business of any vendor licensed under the Beverage Law; nor shall

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such licensed manufacturer, or distributor, importer, primary

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American source of supply, brand owner or brand registrant, or

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any broker, sales agent, or sales person thereof, assist any

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vendor by any gifts or loans of money or property of any

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description or by the giving of any rebates of any kind

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whatsoever. No licensed vendor shall accept, directly or

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indirectly, any gift or loan of money or property of any

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description or any rebates from any such licensed manufacturer,

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or distributor, importer, primary American source of supply,

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brand owner or brand registrant, or any broker, sales agent, or

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sales person thereof; provided, however, that this does not apply

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to any bottles, barrels, or other containers necessary for the

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legitimate transportation of such beverages or to advertising

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materials and does not apply to the extension of credit, for

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liquors sold, made strictly in compliance with the provisions of

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this section. A brand owner is a person who is not a

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manufacturer, distributor, importer, primary American source of

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supply, brand registrant, or broker, sales agent, or sales person

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thereof, but who directly or indirectly owns or controls any

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brand, brand name, or label of alcoholic beverage. Nothing in

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this section shall prohibit the ownership by vendors of any

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brand, brand name, or label of alcoholic beverage.

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     (2)  Credit for the sale of liquors may be extended to any

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vendor up to, but not including, the 10th day after the calendar

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week within which such sale was made.

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     (3)  In cases when payment for sales to a vendor is not made

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by the 10th day succeeding the calendar week in which such sale

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was made, the distributor who made such sale shall, within 3

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days, notify the division in writing of such fact; and the

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division, upon receipt of such notice, shall, after compliance

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with the proceedings hereinafter mentioned, declare in writing to

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such vendor and to all manufacturers and distributors within the

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state that all further sales to such vendor are prohibited until

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such time as the division certifies in writing that such vendor

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has fully paid for all liquors previously purchased. However, if

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a distributor received payment within the 3-day period following

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the 10th day succeeding the calendar week in which the sale was

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made, the distributor, if notification to the division has not

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already been made, is not required to notify the division.

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Payments so made within the 3-day period do not constitute a

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violation of this section.

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     (4)  Before the division shall so declare and prohibit such

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sales to such vendor, it shall, within 2 days after receipt of

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such notice, give written notice to such vendor by mail of the

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receipt by the division of such notification of delinquency and

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such vendor shall be directed to forthwith make payment thereof

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or, upon failure to do so, to show cause before the division why

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further sales to such vendor shall not be prohibited. Good and

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sufficient cause to prevent such action by the division may be

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made by showing payment, failure of consideration, or any other

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defense which would be considered sufficient in a common-law

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action. The vendor shall have 5 days after receipt of such notice

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within which to show such cause, and he or she may demand a

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hearing thereon, provided he or she does so in writing within

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said 5 days, such written demand to be delivered to the division

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either in person or by due course of mail within such 5 days. If

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no such demand for hearing is made, the division shall thereupon

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declare in writing to such vendor and to all manufacturers and

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distributors within the state that all further sales to such

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vendor are prohibited until such time as the division certifies

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in writing that such vendor has fully paid for all liquors

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previously purchased. In the event such prohibition of sales and

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declaration thereof to the vendor, manufacturers, and

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distributors is ordered by the division, the vendor may seek

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review of such decision by the Department of Business and

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Professional Regulation within 5 days. In the event application

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for such review is filed within such time, such prohibition of

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sales shall not be made, published, or declared until final

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disposition of such review by the department.

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     (5)  Upon receipt by the division from the distributor of

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the notice of nonpayment provided for by subsection (3), the

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division shall forthwith notify such delinquent vendor and all

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distributors in the state that no further purchases or sales of

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liquor by or to such vendor, except for cash, shall be made until

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good cause is shown by such vendor as heretofore provided for. No

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liquor shall be purchased by such vendor or sold to him or her by

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any distributor, except for cash, from and after such

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notification by the division and until such cause is shown as is

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provided for in subsection (4). In the event no good cause is

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shown, then all further sales, for cash or credit, are hereby

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prohibited after such declaration in writing by the division is

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sent to such vendor and distributors and until all delinquent

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accounts have been paid.

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     (6)  Nothing herein shall be taken to forbid the giving of

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trade discounts in the usual course of business upon wine and

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liquor sales.

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     (7)  The extension or receiving of credits in violation of

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this section shall be considered as an arrangement for financial

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assistance and shall constitute a violation of the Beverage Law

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and any maneuver, shift, or device of any kind by which credit is

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extended contrary to the provisions of this section shall be

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considered a violation of the Beverage Law.

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     (8)  The division may establish rules and require reports to

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enforce the herein-established limitation upon credits and other

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forms of assistance. Nothing herein shall be taken to affect the

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provisions of s. 563.08, but shall govern all other sales of

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intoxicating liquors.

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     (9)  The term "advertising materials" as used in this

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section does not include outside signs so located as to be

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connected with or appertaining to the vendor's licensed premises.

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     (10) No manufacturer, or distributor, importer, primary

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American source of supply, brand owner, or brand registrant of

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the beverages referred to herein, or any broker, sales agent, or

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sales person thereof, shall directly or indirectly give, lend,

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rent, sell, or in any other manner furnish to a vendor any

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outside sign, printed, painted, electric, or otherwise; nor shall

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any vendor display any sign advertising any brand of alcoholic

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beverages on the outside of his or her licensed premises, on any

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lot of ground of which the licensed premises are situate, or on

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any building of which the licensed premises are a part.

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     (11)  A vendor may display in the interior of his or her

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licensed premises, including the window or windows thereof, neon,

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electric, or other signs, including window painting and

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decalcomanias applied to the surface of the interior or exterior

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of such windows, and posters, placards, and other advertising

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material advertising the brand or brands of alcoholic beverages

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sold by him or her, whether visible or not from the outside of

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the licensed premises, but no vendor shall display in the window

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or windows of his or her licensed premises more than one neon,

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electric, or similar sign, advertising the product of any one

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manufacturer.

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     (12) Any manufacturer, or distributor, importer, primary

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American source of supply, or brand owner or registrant, or any

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broker, sales agent, or sales person thereof, may give, lend,

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furnish, or sell to a vendor who sells the products of such

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manufacturer, or distributor, importer, primary American source

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of supply, or brand owner or registrant any of the following:

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neon or electric signs, window painting and decalcomanias,

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posters, placards, and other advertising material herein

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authorized to be used or displayed by the vendor in the interior

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of his or her licensed premises. The division shall make

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reasonable rules governing promotional displays and advertising,

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which rules shall not conflict with or be more stringent than the

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federal regulations pertaining to such promotional displays and

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advertising furnished to vendors by distributors, and

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manufacturers, importers, primary American sources of supply, or

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brand owners or registrants, or any broker, sales agent, or sales

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person thereof; provided, however, that:

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     (a) If a manufacturer, or distributor, importer, brand

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owner, or brand registrant of malt beverage, or any broker, sales

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agent, or sales person thereof, provides a vendor with expendable

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retailer advertising specialties such as trays, coasters, mats,

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menu cards, napkins, cups, glasses, thermometers, and the like,

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such items shall be sold at a price not less than the actual cost

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to the industry member who initially purchased them, without

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limitation in total dollar value of such items sold to a vendor.

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     (b)  Without limitation in total dollar value of such items

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provided to a vendor, a manufacturer, or distributor, importer,

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brand owner, or brand registrant of malt beverage, or any broker,

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sales agent, or sales person thereof, may rent, loan without

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charge for an indefinite duration, or sell durable retailer

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advertising specialties such as clocks, pool table lights, and

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the like, which bear advertising matter.

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     (c) If a manufacturer, or distributor, importer, brand

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owner, or brand registrant of malt beverage, or any broker, sales

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agent, or sales person thereof, provides a vendor with consumer

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advertising specialties such as ashtrays, T-shirts, bottle

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openers, shopping bags, and the like, such items shall be sold at

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a price not less than the actual cost to the industry member who

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initially purchased them, but may be sold without limitation in

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total value of such items sold to a vendor.

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     (d) A manufacturer, or distributor, importer, brand owner,

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or brand registrant of malt beverage, or any broker, sales agent,

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or sales person thereof, may provide consumer advertising

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specialties described in paragraph (c) to consumers on any

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vendor's licensed premises.

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     (e)  Coupons redeemable by vendors shall not be furnished by

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distributors of beer to consumers.

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     (f) Manufacturers, or distributors, importers, brand

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owners, or brand registrants of beer, and any broker, sales

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agent, or sales person thereof, of beer shall not conduct any

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sampling activities that include tasting of their product at a

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vendor's premises licensed for off-premises sales only.

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     (g) Manufacturers, and distributors, importers, brand

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owners, or brand registrants of beer, and any broker, sales

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agent, or sales person thereof, of beer shall not engage in

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cooperative advertising with vendors.

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     (h)  Distributors of beer may sell to vendors draft

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equipment and tapping accessories at a price not less than the

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cost to the industry member who initially purchased them, except

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there is no required charge, and a distributor may exchange any

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parts which are not compatible with a competitor's system and are

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necessary to dispense the distributor's brands. A distributor of

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beer may furnish to a vendor at no charge replacement parts of

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nominal intrinsic value, including, but not limited to, washers,

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gaskets, tail pieces, hoses, hose connections, clamps, plungers,

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and tap markers.

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     Section 2.  This act shall take effect July 1, 2008.