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House Bill 0725c2

Florida House of Representatives - 1997 CS/CS/HB 725 By the Committees on Governmental Rules & Regulations, Regulated Services and Representatives Villalobos and Saunders 1 A bill to be entitled 2 An act relating to the Beverage Law; amending 3 s. 561.14, F.S.; allowing vendor-to-vendor 4 sales; establishing limits; requiring 5 maintenance of certain records; amending s. 6 561.24, F.S.; including manufacturers of wine 7 within a group of manufacturers who may not be 8 licensed as distributors or registered 9 exporters; providing exceptions; creating s. 10 561.5101, F.S.; requiring all alcoholic 11 beverages brought into this state to come to 12 rest at a wholesaler's licensed premises prior 13 to sale; providing exceptions; providing 14 penalties; amending s. 561.54, F.S.; providing 15 for injunctive relief; providing for 16 confiscation and destruction of certain 17 alcoholic beverages; providing for treble 18 damages; providing for costs and attorney fees; 19 creating s. 561.545, F.S.; providing 20 legislative intent; prohibiting the direct 21 shipment of alcoholic beverages to any person 22 in the state other than a licensed manufacturer 23 or wholesaler, registered exporter, or state 24 bonded warehouse; providing penalties; 25 providing an exception for sacramental 26 alcoholic beverages; amending s. 561.68, F.S., 27 relating to the licensure of salesmen of 28 spirituous or vinous beverages; providing an 29 exception; providing an effective date. 30 31 Be It Enacted by the Legislature of the State of Florida: 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 Section 1. Subsection (3) of section 561.14, Florida 2 Statutes, is amended to read: 3 561.14 License and registration 4 classification.--Licenses and registrations referred to in the 5 Beverage Law shall be classified as follows: 6 (3)(a) Vendors licensed to sell alcoholic beverages at 7 retail only. No vendor shall purchase or acquire in any manner 8 for the purpose of resale any alcoholic beverages from any 9 person not licensed as a vendor, manufacturer, bottler, or 10 distributor under the Beverage Law. Purchases of alcoholic 11 beverages by vendors from vendors shall be strictly limited to 12 purchases between members of a pool buying group for which the 13 initial purchase of the alcoholic beverages was ordered by a 14 pool buying agent as a single transaction. No vendor shall be 15 a member of more than one cooperative or pool buying group at 16 any time. No vendor shall import, or engage in the 17 importation of, any alcoholic beverages from places beyond the 18 limits of the state. 19 (b) Notwithstanding the provisions of paragraph (a), a 20 vendor may purchase wine or spirits from a vendor licensed to 21 sell alcoholic beverages for off-premises consumption in a 22 cumulative amount not to exceed $1,000 annually. Records of 23 vendor-to-vendor sales must be maintained by both parties to 24 the sale for a period of 3 years. Failure to maintain accurate 25 documentation concerning all vendor-to-vendor sales will 26 result in administrative sanctions against the violator. 27 Section 2. Subsections (1), (2), (3), (4), and (5) of 28 section 561.24, Florida Statutes, are amended to read: 29 561.24 Licensing manufacturers as distributors or 30 registered exporters prohibited; procedure for issuance and 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 renewal of distributors' licenses and exporters' 2 registrations.-- 3 (1) A manufacturer, rectifier, or distiller that 4 manufactures, rectifies, or distills spirituous liquors or 5 wine may not be granted a license as a distributor and may not 6 register as an exporter. 7 (2) A manufacturer, rectifier, or distiller that 8 manufactures, rectifies, or distills spirituous liquors or 9 wine may not be granted a renewal of a license or registration 10 previously held as a distributor or exporter. 11 (3) If the applicant for a distributor's license or 12 exporter's registration, or renewal thereof, is an individual 13 or copartnership, such individual or copartnership is within 14 the provisions of subsection (1) or subsection (2), as the 15 case may be, if the individual or any member of the 16 copartnership is interested or connected, directly or 17 indirectly, with any corporation which is engaged directly or 18 indirectly or through any subsidiary or affiliate corporation, 19 including any stock ownership as set forth in subsection (4), 20 in manufacturing, rectifying, or distilling spirituous liquors 21 or wine. If any individual or any member of such 22 copartnership within 6 months next preceding the making of an 23 application hereunder has been interested or connected as 24 provided by this subsection, such individual or such member of 25 the copartnership shall be prima facie presumed to be so 26 interested or connected with such corporation at the time of 27 the making of the application, and such prima facie 28 presumption shall continue until overcome by the applicant. 29 (4) If the applicant for a distributor's license or 30 exporter's registration, or for the renewal thereof, is a 31 corporation, such corporation is within the provisions of 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 subsections (1) and (2), as the case may be, if such 2 corporation is affiliated with, directly or indirectly, any 3 other corporation which is engaged in manufacturing, 4 rectifying, or distilling spirituous liquors or wine or if 5 such applicant corporation is controlled by, or the majority 6 of stock therein is owned by, another corporation, which 7 latter corporation is engaged, directly or indirectly, in 8 manufacturing, rectifying, or distilling spirituous liquors or 9 wine. 10 (5) Notwithstanding any of the provisions of the 11 foregoing subsections, any corporation which holds a license 12 as a distributor on June 3, 1947, shall be entitled to a 13 renewal thereof, provided such corporation complies with all 14 of the provisions of the Beverage Law of Florida, as amended, 15 and of this section and establishes by satisfactory evidence 16 to the division board of county commissioners of the county 17 wherein the original license was issued that, during the 18 6-month period next preceding its application for such 19 renewal, of the total volume of its sales of spirituous 20 liquors, in either dollars or quantity, not more than 40 21 percent of such spirituous liquors sold by it, in either 22 dollars or quantity, were manufactured, rectified, or 23 distilled by any corporation with which the applicant is 24 affiliated, directly or indirectly, including any corporation 25 which owns or controls in any way any stock in the applicant 26 corporation or any corporation which is a subsidiary or 27 affiliate of the corporation so owning stock in the applicant 28 corporation. Any manufacturer of wine holding a license as a 29 distributor on April 1, 1997, shall be entitled to a renewal 30 of such license notwithstanding the provisions of subsections 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 (1)-(5). This section shall not apply to any winery qualifying 2 as a certified Florida Farm Winery under s. 599.004. 3 Section 3. Section 561.5101, Florida Statutes, is 4 created to read: 5 561.5101 Come-to-rest requirement applicable to all 6 alcoholic beverages; providing exceptions; providing 7 penalties.-- 8 (1) For purposes of inspection and tax revenue 9 control, all alcoholic beverages brought into this state from 10 another state or country must come to rest at the licensed 11 premises of an alcoholic beverage wholesaler in this state 12 before being sold to a vendor by the wholesaler. The 13 prohibition contained in this subsection shall not apply to 14 the shipment of those brands of distilled spirits or vinous or 15 malt beverages commonly known as private labels. 16 (2) Any person, in another state or country in the 17 business of selling alcoholic beverages, who knowingly and 18 intentionally ships alcoholic beverages into this state in a 19 manner inconsistent with the requirements of subsection (1), 20 whether to a vendor or to an ultimate consumer, commits a 21 felony of the third degree, punishable as provided in s. 22 775.082, s. 775.083 or s. 775.084. 23 Section 4. Section 561.54, Florida Statutes, is 24 amended to read: 25 561.54 Certain deliveries of beverages prohibited.-- 26 (1) It is unlawful for common or permit carriers, 27 operators of privately owned cars, trucks, buses, or other 28 conveyances or out-of-state manufacturers or suppliers to make 29 delivery from without the state of any alcoholic beverage to 30 any person, association of persons, or corporation within the 31 state, except to qualified manufacturers, distributors, and 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 exporters of such beverages so delivered and to qualified 2 bonded warehouses in this state. 3 (2) Any licensee aggrieved by a violation of this 4 section may bring an action in any court of competent 5 jurisdiction to recover for the state all moneys obtained by 6 common or permit carriers, operators of privately owned cars, 7 trucks, buses, or other conveyances or obtained by 8 out-of-state manufacturers or suppliers as a result of the 9 delivery of alcoholic beverages in violation of this section 10 and may obtain a declaratory judgment that an act or practice 11 violates this section and enjoin any person who is violating 12 or has violated this section. In addition to such relief, the 13 court may order the confiscation and destruction of any 14 alcoholic beverages delivered in violation of this section. 15 In assessing damages, the court shall enter judgment against a 16 defendant for three times the amount of the delivery charges 17 proved or the fair market value of merchandise unlawfully 18 brought into the state. Payment or satisfaction of any 19 judgment under this section, other than for attorney's fees 20 and costs, shall be made in its entirety to the state. In any 21 successful action under this section, the court shall award 22 the plaintiff costs and reasonable attorney's fees. 23 Section 5. Section 561.545, Florida Statutes, is 24 created to read: 25 561.545 Certain shipments of beverages prohibited; 26 providing penalties; providing an exception for sacramental 27 beverages.--The Legislature finds, determines, and declares 28 that the direct shipment of alcoholic beverages by persons in 29 the business of selling alcoholic beverages to residents of 30 this state in violation of the Beverage Law poses a serious 31 threat to the public health, safety, and welfare, to state 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 revenue collections, and to the economy of the state. The 2 Legislature further finds, determines, and declares that the 3 present penalties for illegal direct shipment of alcoholic 4 beverages to residents of this state are not adequate to 5 ensure compliance with the Beverage Law and that the measures 6 provided for in this section are fully consistent with the 7 powers conferred upon the State of Florida by the Twenty-first 8 Amendment to the United States Constitution. 9 (1) Any person in the business of selling alcoholic 10 beverages who knowingly and intentionally ships, or causes to 11 be shipped, any alcoholic beverage from an out-of-state 12 location directly to any person in this state who does not 13 hold a valid manufacturer's or wholesaler's license or 14 exporter's registration issued by the Division of Alcoholic 15 Beverages and Tobacco or who is not a state bonded warehouse 16 is in violation of this section. 17 (2) Any common or permit carrier, operator of 18 privately owned car, truck, bus, or other conveyance who 19 knowingly and intentionally transports any alcoholic beverage 20 from an out-of-state location directly to any person in this 21 state who does not hold a valid manufacturer's or wholesaler's 22 license or exporter's registration or who is not a state 23 bonded warehouse is in violation of this section. 24 (3) Any person found by the division to be in 25 violation of subsection (1) or subsection (2) shall be issued 26 a cease and desist order by certified mail. Any person who, 27 after receiving a cease and desist order, is found by the 28 division to be in violation of subsection (1) or subsection 29 (2) for a second or subsequent occurrence, within a 2-year 30 period after the first violation, commits a felony of the 31 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/CS/HB 725 607-104-97 1 third degree, punishable as provided in s. 775.082, s. 775.083 2 or s. 775.084. 3 (4) This section shall not apply to the direct 4 shipment of sacramental alcoholic beverages to bona fide 5 religious organizations as authorized by the division. 6 Section 6. Paragraph (a) of subsection (1) of section 7 561.68, Florida Statutes, is amended to read: 8 561.68 Licensure; distributor's salesmen; providing 9 exceptions.-- 10 (1)(a) Before any person may solicit or sell to 11 vendors or become employed as a salesman of spirituous or 12 vinous beverages for a licensed Florida distributor in 13 accordance with the provisions of this section, such person 14 shall file with the district supervisor of the district of the 15 Division of Alcoholic Beverage and Tobacco in which the 16 distributor's premises is located a sworn application for a 17 license on forms provided by the division. Prior to any 18 application being approved, the division shall require the 19 applicant to file a fee of $50 and file a set of fingerprints 20 on regular United States Department of Justice forms. The 21 licensure requirement provided in this paragraph shall not 22 apply to the solicitation or sale of cider. 23 Section 7. This act shall take effect upon becoming a 24 law. 25 26 27 28 29 30 31 8