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 brewery and such
68 other structures which promote the brewery and the tourist
69 industry 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 provision Notwithstanding other provisions of the Beverage Law,
120 a any vendor 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 division
123 that:
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 premises location and in an amount that which
128 will not exceed 10,000 kegs per year. As used in For purposes of
129 this subparagraph subsection, the term “keg” means 15.5 gallons.
130 2. The malt beverages so brewed 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 is Any vendor which is also licensed as a
151 manufacturer of malt beverages pursuant to this subsection shall
152 be responsible for applicable reports pursuant to ss. 561.50 and
153 561.55 with respect to the amount of beverage manufactured each
154 month and must shall pay the applicable excise taxes thereon to
155 the division by the 10th day of each month for the previous
156 month.
157 (e)(c) A It shall be unlawful for any licensed distributor
158 of malt beverages or an any officer, agent, or other
159 representative thereof may not to discourage or prohibit a
160 licensee any vendor licensed as a manufacturer under this
161 subsection from offering malt beverages brewed for consumption
162 on the licensed premises of the vendor.
163 (f)(d) A It shall be unlawful for any manufacturer of malt
164 beverages or an any officer, agent, or other representative
165 thereof may not to take any action to discourage or prohibit a
166 any distributor of the manufacturer’s product from distributing
167 such product to a licensee licensed vendor which is also
168 licensed as a manufacturer of malt beverages pursuant to this
169 subsection.
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 $20,000 will 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 $20,000 to 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 does shall not prevent
250 a manufacturer from shipping malt beverages for storage at a
251 bonded warehouse facility if, provided that such 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) A It shall be unlawful for any person may not to have
258 in her or his possession, custody, or control any cans, jugs,
259 jars, bottles, or vessels, or any other type of containers that
260 which are 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 does provision shall not
263 apply to a any person properly licensed to bottle or package
264 such alcoholic beverages, a or to any person 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) A It shall be unlawful for any person may not to
269 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
272 section shall not apply to a any firm or corporation holding a
273 license to manufacture or distribute such alcoholic beverages, a
274 and shall not apply to any person transporting such containers
275 to a any person, 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. An Any officer, director, agent, or employee of a
286 manufacturer; or
287 3. An affiliate of a any manufacturer, regardless of
288 whether the affiliation is corporate or by management,
289 direction, or control.
290 (b) Except as provided in paragraph (c), an no entity 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 not nor shall such entity sell directly to a
294 any vendor in this state other than a vendor to vendors who are
295 licensed pursuant to s. 561.221(2).
296 (c) An Any entity or person specified described in
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 specified described in 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 arrangement arrangements may exist for up to no
304 longer than 8 years from its their creation and may shall not be
305 extended or renewed by means of a transfer of full ownership to
306 an entity or person specified described in 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 specified described in
312 paragraph (a). If, after the creation of a limited partnership
313 pursuant to this paragraph, an entity or person specified
314 described in paragraph (a) acquires title to the distributorship
315 that which was the subject of the limited partnership, the
316 entity or person specified described in 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. An No entity or person
320 specified described in paragraph (a) may not shall enter into a
321 limited partnership arrangement with a licensed distributor
322 whose distributorship existed and was operated before prior to
323 the creation of such limited partnership arrangement.
324 (d) Nothing in The Beverage Law does not shall be construed
325 to prohibit a manufacturer from shipping products to or between
326 its breweries without a distributor’s license.
327 (e) Notwithstanding the provisions of paragraph (b), an any
328 entity or person specified named in 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 may shall only 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) Notwithstanding the provisions of paragraph (b), an any
340 entity or person specified named in paragraph (a) may have a
341 security interest in the inventory or property of its licensed
342 distributors to secure payment for that said inventory 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, must shall be in individual containers containing no
423 more than 32 ounces of such malt beverages.; provided, however,
424 that nothing contained in This section does not shall affect
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.