HB 0247CS

CHAMBER ACTION




1The Commerce Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to the Beverage Law; creating s. 561.585,
7F.S.; authorizing certain direct shipments of wine;
8requiring licensure of winery shippers; providing
9requirements for licensure; providing prohibitions;
10requiring that a winery shipper licensee file a surety
11bond with the Division of Alcoholic Beverages and Tobacco
12of the Department of Business and Professional Regulation;
13requiring that each container of wine shipped directly be
14labeled with a notice; requiring monthly reports by winery
15shipper licensees; providing limitations on the amount of
16wine a winery shipper may ship or cause to be shipped;
17limiting the size of wine containers; limiting the amount
18of wine a purchaser can purchase or cause to be shipped;
19providing age requirements for those receiving direct
20shipments of wine; providing a defense to certain actions;
21requiring the collection, remittance, and payment of
22certain taxes by direct shippers; requiring that winery
23shippers maintain certain records for a certain time
24period; providing for jurisdiction; providing penalties;
25amending s. 561.14, F.S.; classifying the winery shipper
26license; amending s. 561.54, F.S.; removing a provision
27requiring that the licensee be aggrieved by a violation
28involving prohibited delivery from without the state to
29have standing to bring an action; exempting from such
30prohibition shipment of wine by a winery shipper licensee;
31amending s. 561.545, F.S.; exempting applicability of the
32prohibition against direct shipment of alcoholic beverages
33to the shipment of wine by a winery shipper licensee;
34amending s. 561.57, F.S.; providing that Internet orders
35shall be construed as telephone orders; exempting common
36carriers, licensees, or other persons utilizing common
37carriers as their agents from certain report filing
38requirements; requiring common carriers to verify the age
39of persons receiving shipments; providing a defense to
40certain actions; providing criteria for the defense;
41amending s. 599.004, F.S.; revising qualifications for the
42certification of Florida Farm Wineries; amending s.
43561.24, F.S.; revising an effective date; authorizing
44certain manufacturers of wine holding a distributor's
45license to renew such license; removing exemption of
46Florida Farm Wineries from prohibition against
47manufacturer being licensed as distributor or registered
48as exporter; providing for severability; providing for
49nonimpairment of contracts; providing for rulemaking
50authority; authorizing additional positions; providing
51appropriations; providing an effective date.
52
53Be It Enacted by the Legislature of the State of Florida:
54
55     Section 1.  Section 561.585, Florida Statutes, is created
56to read:
57     561.585  Direct shipment of wine for personal
58consumption.--
59     (1)  WINERY SHIPPER LICENSURE REQUIREMENTS.--
60     (a)  Wineries shall not ship or cause to be shipped any
61wine to individual consumers in this state unless licensed under
62this section. Notwithstanding any provision of the Beverage Law
63or any rule to the contrary, a person, firm, corporation, or
64other entity that is licensed as a winery shipper under this
65section may ship wine directly to any person who is at least 21
66years of age for personal use only and not for resale. To obtain
67or renew a winery shipper's license, an applicant must:
68     1.  File an application with the division on forms
69prescribed by the division.
70     2.  Qualify for licensure under ss. 561.15 and 561.17 or
71provide a true copy of a certification from the alcoholic
72beverage licensing authority of the Federal Government, or the
73state in which the winery is located, with license
74qualifications and procedures for that winery license that
75include, at a minimum, the following components:
76     a.  Fingerprinting of applicants.
77     b.  Disqualification for applicants under 21 years of age.
78     c.  Disqualification for applicants convicted of the
79following:
80     (I)  Within the past 5 years, any violation of the beverage
81laws of this state, the United States, or any other state;
82     (II)  Within the past 15 years, any felony in this state or
83any other state of the United States; or
84     (III)  Any criminal violation of the controlled substance
85act of this state, the United States, or any other state.
86     3.  Obtain and maintain a current license as a primary
87American source of supply as provided in s. 564.045.
88     4.  Provide to the division a true copy of its current wine
89manufacturer's license issued by this state or another state and
90a true copy of its current federal basic permit as a wine
91producer issued in accordance with the Federal Alcohol
92Administration Act.
93     5.  Manufacture no more than 250,000 gallons of wine per
94year.
95     6.  Pay an annual license fee in the amount of $250.
96     7.  File with the division a surety bond acceptable to the
97division in the sum of $5,000 as surety for the payment of all
98taxes provided that when, at the discretion of the division, the
99amount of business done by the winery shipper licensee is such
100volume that a bond of less than $5,000 will be adequate, the
101division may accept a bond in a lesser sum but not less than
102$1,000. The surety bond currently on file with the division for
103a winery pursuant to s. 561.37 is deemed to comply with this
104requirement. Upon written request of the winery shipper, the
105division shall review the total tax liability to the state by
106the winery shipper and reduce the bond to 110 percent of the
107prior year's total tax liability as a licensee under this
108section but not less than $1,000.
109     (b)  Applicants under this section may obtain a temporary
110initial license as authorized in s. 561.181.
111     (c)  The division may not issue a license under this
112section if the applicant or licensee is owned by a winery that
113manufactures more than 250,000 gallons of wine annually.
114     (d)  Winery shipper licensees may not ship or cause to be
115shipped more than 18 cases of wine per calendar year to one
116adult individual. For purposes of this section, a case is
117defined as a container or containers that contain no more than
1189,000 milliliters of wine.
119     (e)  Licensees shall comply with s. 564.05, which limits
120the size of wine containers.
121     (f)  Purchasers shall not purchase or cause to be shipped
122more than 18 cases of wine per calendar year to any adult
123individual.
124     (2)  LABEL.--Each winery shipper licensee shall ensure that
125the outside shipping label on each package is conspicuous and
126includes the following components:
127     (a)  This package contains alcohol.
128     (b)  An adult signature is required.
129     (c)  The recipient must be at least 21 years of age.
130     (3)  SIGNATURE.--
131     (a)  Each winery shipper licensee and common carrier shall
132require, prior to delivery, that the signature of the addressee
133or other person at least 21 years of age is obtained after
134presentation of a valid driver's license, an identification card
135issued under the provisions of s. 322.051, or, if the person is
136physically handicapped, a comparable identification card issued
137by another state which indicates the person's age, a passport,
138or a United States Uniformed Services identification card.
139     (b)  A winery shipper licensee or common carrier who
140violates this subsection shall have a complete defense to any
141civil action therefor, except for any administrative action by
142the division, if, at the time the alcoholic beverage was sold,
143given, delivered, or transferred, the person falsely evidenced
144that he or she was of legal age to purchase or consume the
145alcoholic beverage and the appearance of the person was such
146that an ordinarily prudent person would believe him or her to be
147of legal age to purchase or consume the alcoholic beverage and
148if the winery shipper licensee or common carrier acted in good
149faith and in reliance upon the representation and appearance of
150the person in the belief that he or she was of legal age to
151purchase or consume the alcoholic beverage and carefully checked
152one of the following forms of identification with respect to the
153person: a valid driver's license, an identification card issued
154under the provisions of s. 322.051, or, if the person is
155physically handicapped, a comparable identification card issued
156by another state which indicates the person's age, a passport,
157or a United States Uniformed Services identification card.
158     (4)  MONTHLY REPORT.--
159     (a)  Each winery shipper licensee shall report monthly to
160the division on forms prescribed by the division:
161     1.  Whether any wine product was shipped into or within
162this state under this section during the preceding month.
163     2.  The total amount of wine shipped into or within this
164state under this section during the preceding month.
165     3.  The quantity and types of wine shipped into or within
166this state under this section during the preceding month.
167     4.  The amount of excise tax paid to the division for
168shipments of wine into or within this state under this section
169during the preceding month.
170     (b)  The report required by this subsection is not required
171from a winery shipper licensee who files a monthly report
172pursuant to s. 561.55 that contains all the information required
173in paragraph (a). The division is authorized to prescribe the
174format for submission of this information in order that
175duplicate filings are eliminated.
176     (5)  TAXES.--
177     (a)  Each winery shipper licensee shall collect and remit
178monthly to the Department of Revenue all sales taxes and pay to
179the division all excise taxes due on sales to persons in this
180state for the preceding month. Notwithstanding s. 212.0596, the
181amount of such taxes shall be calculated as if the sale took
182place at the location where the delivery occurred in this state.
183     (b)  Each winery shipper licensee shall maintain for at
184least 3 years after the date of delivery records of its
185shipments into or within this state pursuant to this section,
186including the names, addresses, amounts, and dates of all
187shipments to persons in this state, and shall allow the
188Department of Revenue or the division, upon request, to perform
189an audit of such records.
190     (c)  The cost of performing an audit under paragraph (b)
191shall be assigned to the agency requesting the audit unless the
192winery shipper licensee is found to be in material violation of
193this subsection, in which case the cost of the audit shall be
194assigned to the licensee.
195     (6)  JURISDICTION.--Each winery shipper licensee is deemed
196to have consented to the jurisdiction of the division or any
197other state agency or local law enforcement agency and the
198courts of this state concerning enforcement of this section and
199any related laws or rules.
200     (7)  PENALTIES.--
201     (a)  In addition to any other penalty provided in the
202Beverage Law, the division may suspend or revoke a winery
203shipper license or impose fines on the winery shipper licensee
204in an amount not to exceed $1,000 per violation for any
205violation of this section.
206     (b)  A winery shipper licensee that knowingly and
207intentionally ships, or causes to be shipped, wine to any person
208in this state who is under 21 years of age commits a felony of
209the third degree, punishable as provided in s. 775.082, s.
210775.083, or s. 775.084.
211     (c)  Any common carrier, permit carrier, or other
212commercial conveyance that knowingly and intentionally delivers
213wine directly to any person in this state who is under 21 years
214of age commits a misdemeanor of the second degree, punishable as
215provided in s. 775.082 or s. 775.083.
216     (d)  A person who knowingly and intentionally obtains wine
217from a winery shipper licensee in violation of this section
218commits a misdemeanor of the second degree, punishable as
219provided in s. 775.082 or s. 775.083.
220     Section 2.  Subsection (8) is added to section 561.14,
221Florida Statutes, to read:
222     561.14  License and registration classification.--Licenses
223and registrations referred to in the Beverage Law shall be
224classified as follows:
225     (8)  Wineries licensed as winery shippers under s. 561.585.
226     Section 3.  Section 561.54, Florida Statutes, is amended to
227read:
228     561.54  Certain deliveries of beverages prohibited.--
229     (1)  It is unlawful for common or permit carriers,
230operators of privately owned cars, trucks, buses, or other
231conveyances or out-of-state manufacturers or suppliers to make
232delivery from without the state of any alcoholic beverage to any
233person, association of persons, or corporation within the state,
234except to qualified manufacturers, distributors, and exporters
235of such beverages so delivered and to qualified bonded
236warehouses in this state.
237     (2)  Any licensee aggrieved by a violation of this section
238may bring an action in any court of competent jurisdiction to
239recover for the state all moneys obtained by common carriers or
240permit carriers; obtained by operators of privately owned cars,
241trucks, buses, or other conveyances; or obtained by out-of-state
242manufacturers or suppliers as a result of the delivery of
243alcoholic beverages in violation of this section, and may obtain
244a declaratory judgment that an act or practice violates this
245section and enjoin any person from violating this section. In
246addition to such relief, the court may order the confiscation
247and destruction of any alcoholic beverages delivered in
248violation of this section. In assessing damages, the court shall
249enter judgment against a defendant for three times the amount of
250the delivery charges proved or the fair market value of
251merchandise unlawfully brought into the state. Payment or
252satisfaction of any judgment under this section, other than for
253costs and attorney's fees, shall be made in its entirety to the
254state. In any successful action under this section, the court
255shall award the plaintiff costs and reasonable attorney's fees.
256     (3)  This section does not apply to the shipment of wine by
257a winery shipper licensee to a person who is at least 21 years
258of age in accordance with s. 561.585.
259     Section 4.  Section 561.545, Florida Statutes, is amended
260to read:
261     561.545  Certain shipments of beverages prohibited;
262penalties; exceptions.--The Legislature finds that the direct
263shipment of alcoholic beverages by persons in the business of
264selling alcoholic beverages to residents of this state in
265violation of the Beverage Law poses a serious threat to the
266public health, safety, and welfare; to state revenue
267collections; and to the economy of the state. The Legislature
268further finds that the penalties for illegal direct shipment of
269alcoholic beverages to residents of this state should be made
270adequate to ensure compliance with the Beverage Law and that the
271measures provided for in this section are fully consistent with
272the powers conferred upon the state by the Twenty-first
273Amendment to the United States Constitution.
274     (1)  Any person in the business of selling alcoholic
275beverages who knowingly and intentionally ships, or causes to be
276shipped, any alcoholic beverage from an out-of-state location
277directly to any person in this state who does not hold a valid
278manufacturer's or wholesaler's license or exporter's
279registration issued by the Division of Alcoholic Beverages and
280Tobacco or who is not a state-bonded warehouse is in violation
281of this section.
282     (2)  Any common carrier or permit carrier or any operator
283of a privately owned car, truck, bus, or other conveyance who
284knowingly and intentionally transports any alcoholic beverage
285from an out-of-state location directly to any person in this
286state who does not hold a valid manufacturer's or wholesaler's
287license or exporter's registration or who is not a state-bonded
288warehouse is in violation of this section.
289     (3)  Any person found by the division to be in violation of
290subsection (1) shall be issued a notice, by certified mail, to
291show cause why a cease and desist order should not be issued.
292Any person who violates subsection (1) within 2 years after
293receiving a cease and desist order or within 2 years after a
294prior conviction for violating subsection (1) commits a felony
295of the third degree, punishable as provided in s. 775.082, s.
296775.083, or s. 775.084.
297     (4)  Any common carrier or permit carrier, or any operator
298of a privately owned car, truck, bus, or other conveyance found
299by the division to be in violation of subsection (2) as a result
300of a second or subsequent delivery from the same source and
301location, within a 2-year period after the first delivery shall
302be issued a notice, by certified mail, to show cause why a cease
303and desist order should not be issued. Any person who violates
304subsection (2) within 2 years after receiving the cease and
305desist order or within 2 years after a prior conviction for
306violating subsection (2) commits a felony of the third degree,
307punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
308     (5)  This section does not apply to:
309     (a)  The direct shipment of sacramental alcoholic beverages
310to bona fide religious organizations as authorized by the
311division;
312     (b)  The or to possession of alcoholic beverages in
313accordance with s. 562.15(2); or
314     (c)  The shipment of wine in accordance with s. 561.585.
315     Section 5.  Subsections (1) and (6) of section 561.57,
316Florida Statutes, are amended to read:
317     561.57  Deliveries by licensees.--
318     (1)  Vendors shall be permitted to make deliveries away
319from their places of business of sales actually made at the
320licensed place of business; provided, telephone or mail orders
321received at vendor's licensed place of business shall be
322construed as a sale actually made at the vendor's licensed place
323of business. For purposes of this section, Internet orders shall
324be construed as telephone orders.
325     (6)  Common carriers are not required to have vehicle
326permits to transport alcoholic beverages. Nothing in this
327section shall prohibit any licensee from utilizing a common
328carrier as his or her agent to make deliveries of alcoholic
329beverages within the state. Deliveries of alcoholic beverages by
330licensees or common carriers utilized by licensees under this
331section are exempt from the report filing requirements in s.
332562.20. All common carriers making deliveries under this section
333shall verify that any person receiving alcoholic beverages is at
334least 21 years of age upon the delivery of such alcoholic
335beverages, as prescribed in division rules. Compliance with the
336prescribed age verification measures in s. 561.585(3) shall give
337the common carrier and the licensee a complete defense to any
338civil action thereof, except for any administrative action by
339the division, if, at the time the alcoholic beverage was sold,
340given, delivered, or transferred, the person falsely evidenced
341that he or she was of legal age to purchase or consume the
342alcoholic beverage and the appearance of the person was such
343that an ordinarily prudent person would believe him or her to be
344of legal age to purchase or consume the alcoholic beverage and
345if the licensee or common carrier acted in good faith and in
346reliance upon the representation and appearance of the person in
347the belief that he or she was of legal age to purchase or
348consume the alcoholic beverage and carefully checked one of the
349following forms of identification with respect to the person: a
350valid driver's license, an identification card issued under the
351provisions of s. 322.051, or, if the person is physically
352handicapped, a comparable identification card issued by another
353state which indicates the person's age, a passport, or a United
354States Uniformed Services identification card.
355     Section 6.  Subsection (1) of section 599.004, Florida
356Statutes, is amended to read:
357     599.004  Florida Farm Winery Program; registration; logo;
358fees.--
359     (1)  The Florida Farm Winery Program is established within
360the Department of Agriculture and Consumer Services. Under this
361program, a winery may qualify as a tourist attraction only if it
362is registered with and certified by the department as a Florida
363Farm Winery. A winery may not claim to be certified unless it
364has received written approval from the department.
365     (a)  To qualify as a certified Florida Farm Winery, a
366winery shall meet the following standards:
367     1.  Produce or sell less than 250,000 gallons of wine
368annually of which 60 percent of wine produced shall be made from
369this state's agricultural products. The Commissioner of
370Agriculture may waive this requirement in times of hardship.
371     2.  Maintain a minimum of 10 acres of owned or managed
372vineyards in Florida.
373     3.  Be open to the public for tours, tastings, and sales at
374least 30 hours each week.
375     4.  Make annual application to the department for
376recognition as a Florida Farm Winery, on forms provided by the
377department.
378     5.  Pay an annual application and registration fee of $100.
379     (b)  To maintain certification and recognition as a Florida
380Farm Winery, a winery must comply with the qualifications
381provided in this section. The Commissioner of Agriculture is
382authorized to officially recognize a certified Florida Farm
383Winery as a state tourist attraction.
384     Section 7.  Subsection (5) of section 561.24, Florida
385Statutes, is amended to read:
386     561.24  Licensing manufacturers as distributors or
387registered exporters prohibited; procedure for issuance and
388renewal of distributors' licenses and exporters'
389registrations.--
390     (5)  Notwithstanding any of the provisions of the foregoing
391subsections, any corporation which holds a license as a
392distributor on June 3, 1947, shall be entitled to a renewal
393thereof, provided such corporation complies with all of the
394provisions of the Beverage Law of Florida, as amended, and of
395this section and establishes by satisfactory evidence to the
396division that, during the 6-month period next preceding its
397application for such renewal, of the total volume of its sales
398of spirituous liquors, in either dollars or quantity, not more
399than 40 percent of such spirituous liquors sold by it, in either
400dollars or quantity, were manufactured, rectified, or distilled
401by any corporation with which the applicant is affiliated,
402directly or indirectly, including any corporation which owns or
403controls in any way any stock in the applicant corporation or
404any corporation which is a subsidiary or affiliate of the
405corporation so owning stock in the applicant corporation. Any
406manufacturer of wine holding a license as a distributor on July
4071, 2006, the effective date of this act shall be entitled to a
408renewal of such license notwithstanding the provisions of
409subsections (1)-(5). This section does not apply to any winery
410qualifying as a certified Florida Farm Winery under s. 599.004.
411     Section 8.  Should any portion of this act be held
412unconstitutional, it is the intent of the Legislature that the
413courts disturb only as much of the regulatory system of this
414state as is necessary to enforce the United States Constitution.
415     Section 9.  Notwithstanding the provisions of s. 561.585,
416Florida Statutes, contracts not otherwise prohibited by the
417Beverage Law shall not be impaired.
418     Section 10.  The Division of Alcoholic Beverages and
419Tobacco of the Department of Business and Professional
420Regulation and the Department of Revenue may adopt rules
421pursuant to ss. 120.536(1) and 120.54, Florida Statutes, to
422implement and administer this act.
423     Section 11.  For fiscal year 2006-2007, six full-time
424equivalent positions are authorized, and the sums of $484,096 in
425recurring funds and $41,944 in nonrecurring funds from the
426Alcoholic Beverage and Tobacco Trust Fund of the Department of
427Business and Professional Regulation are hereby appropriated
428within a qualified expenditure category for the purpose of
429carrying out regulatory activities provided in this act. In
430addition, for fiscal year 2006-2007, two full-time equivalent
431positions, with associated salary rate of 76,129, are
432authorized, and the sums of $127,340 in recurring funds and
433$10,486 in nonrecurring funds from the Administrative Trust Fund
434of the Department of Business and Professional Regulation are
435hereby appropriated for the purpose of carrying out central-
436service administrative support functions related to the
437regulatory activities provided in this act.
438     Section 12.  This act shall take effect upon becoming a
439law.


CODING: Words stricken are deletions; words underlined are additions.