Florida Senate - 2014 SB 1714
By the Committee on Regulated Industries
580-03266-14 20141714__
1 A bill to be entitled
2 An act relating to malt beverages; amending s. 561.01,
3 F.S.; defining the term “growler”; amending s.
4 561.221, F.S.; clarifying three-tier system exceptions
5 and application with respect to the manufacture,
6 distribution, and sale of malt beverages; revising
7 requirements for licensure and operation of
8 manufacturers and vendors; providing legislative
9 intent; amending s. 561.37, F.S., to revise bond
10 requirements for brewers; amending s. 561.5101, F.S.;
11 adding an exception to the come-to-rest requirement;
12 amending s. 562.34, F.S.; authorizing the possession
13 and transportation of a growler; reenacting s.
14 563.022(14), F.S., relating to prohibited interests
15 between a manufacturer and a distributor of malt
16 beverages, to incorporate the amendments made to s.
17 561.221, F.S., in a reference thereto; clarifying
18 provisions; amending s. 563.06, F.S.; revising
19 provisions relating to the sale of malt beverages at
20 retail in containers of specified sizes, to conform to
21 changes made by the act; creating s. 563.061, F.S.;
22 providing requirements for and limitations on the
23 filling, refilling, and sale or distribution of
24 growlers; providing severability; providing an
25 effective date.
26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Subsection (22) is added to section 561.01,
30 Florida Statutes, to read:
31 561.01 Definitions.—As used in the Beverage Law:
32 (22) “Growler” means a clean container made of glass,
33 ceramic, metal, or similar leak-proof material having a capacity
34 of 32 ounces, 64 ounces, or 128 ounces which, in response to an
35 order in a face-to-face transaction for off-premises
36 consumption, is filled with a malt beverage and sealed on the
37 premises at or immediately before or after the time of sale.
38 Section 2. Section 561.221, Florida Statutes, is amended to
39 read:
40 561.221 Licensing of manufacturers and distributors as
41 vendors and of vendors as manufacturers; exceptions, conditions,
42 and limitations.—
43 (1)(a) Nothing contained in s. 561.22, s. 561.42, or any
44 other provision of the Beverage Law prohibits the ownership,
45 management, operation, or control of not more than three
46 vendor’s licenses for the sale of alcoholic beverages by a
47 manufacturer of wine who is licensed and engaged in the
48 manufacture of wine in this state, even if such manufacturer is
49 also licensed as a distributor; provided that no such vendor’s
50 license shall be owned, managed, operated, or controlled by any
51 licensed manufacturer of wine unless the licensed premises of
52 the vendor are situated on property contiguous to the
53 manufacturing premises of the licensed manufacturer of wine.
54 (b) The Division of Alcoholic Beverages and Tobacco shall
55 issue permits to a certified Florida Farm Winery to conduct
56 tasting and sales of wine produced by certified Florida Farm
57 Wineries at Florida fairs, trade shows, expositions, and
58 festivals. The certified Florida Farm Winery shall pay all entry
59 fees and shall have a winery representative present during the
60 event. The permit is limited to the length of the event.
61 (2) Notwithstanding s. 561.22, s. 561.42, or any other
62 provision of the Beverage Law, the division is authorized to
63 issue vendor’s licenses to a manufacturer of malt beverages,
64 even if such manufacturer is also licensed as a distributor, for
65 the sale of alcoholic beverages on property consisting of a
66 single complex, which property shall include a brewery and such
67 other structures which promote the brewery and the tourist
68 industry of the state. However, such property may be divided by
69 no more than one public street or highway. A vendor’s license
70 issued under this subsection is subject to the following
71 restrictions:
72 (a) Sales to consumers for off-premises consumption of malt
73 beverages are limited to growlers that are filled or refilled
74 with malt beverages manufactured on the licensed premises
75 pursuant to the requirements of s. 563.061. Such sales must be
76 made directly to consumers in face-to-face transactions. Malt
77 beverages manufactured at another location, including another
78 licensed manufacturing premises directly or indirectly owned in
79 whole or in part by the manufacturer, and malt beverages
80 manufactured by any other manufacturer may be sold as authorized
81 by the manufacturer’s vendor license, provided that malt
82 beverages sold for consumption off the licensed premises shall
83 be obtained from a licensed distributor and sold to the consumer
84 in their original sealed containers. This paragraph does not
85 prohibit the sale of other alcoholic beverages for on-premises
86 or off-premises consumption, as authorized under the
87 manufacturer’s vendor license, provided that such beverages are
88 obtained from a licensed distributor.
89 (b) Notwithstanding s. 561.57(1), the delivery of a sealed
90 container or growler containing a malt beverage off a licensed
91 premises, whether by common or premises carrier or by an
92 operator of a privately owned motor vehicle or other conveyance,
93 is prohibited. In addition, a consumer or other person may not
94 arrange for the delivery of a sealed container or growler
95 containing a malt beverage off the licensed premises to the
96 consumer, whether by common or premises carrier or by an
97 operator of a privately owned motor vehicle or other conveyance.
98 However, this paragraph does not prohibit a consumer from taking
99 the sealed container or growler containing a malt beverage
100 purchased by the consumer under this subsection from the
101 licensed premises to another location by a privately owned motor
102 vehicle or other conveyance.
103 (c) A manufacturer licensed as a vendor is responsible for
104 applicable reports pursuant to ss. 561.50 and 561.55 with
105 respect to the amount of malt beverages sold or given to
106 consumers on the licensed premises each month and must pay the
107 applicable excise taxes to the division by the 10th day of each
108 month for the previous month.
109 (d) This subsection does not preclude a licensed
110 manufacturer of malt beverages from also holding a permanent
111 food service license at the licensed premises.
112 (e) This subsection is a limited exception to ss. 561.22
113 and 561.42. Except as specifically provided in this subsection
114 to permit a manufacturer of malt beverages to also be licensed
115 as a vendor, a manufacturer of malt beverages is subject to the
116 restrictions in ss. 561.22 and 561.42.
117 (3)(a) Notwithstanding s. 561.22, s. 561.42, or any other
118 provision Notwithstanding other provisions of the Beverage Law,
119 a any vendor licensed in this state may be licensed as a
120 manufacturer of malt beverages if the vendor satisfies the
121 requirements of this subsection. upon a finding by the division
122 that:
123 (a) The division may issue a license if it finds that all
124 of the following conditions are met:
125 1. The vendor will be engaged in brewing malt beverages at
126 a single licensed premises location and in an amount that which
127 will not exceed 10,000 kegs per year. As used in For purposes of
128 this subparagraph subsection, the term “keg” means 15.5 gallons.
129 2. The malt beverages so brewed will be sold to consumers
130 for consumption on the vendor’s licensed premises or on
131 contiguous licensed premises owned by the vendor.
132 3. The applicant holds a permanent food service license.
133 (b) A licensee may sell the following alcoholic beverages,
134 which may be sold only in face-to-face transactions with
135 consumers:
136 1. Malt beverages that are manufactured on the licensed
137 premises for on-premises consumption.
138 2. Malt beverages that are manufactured by other
139 manufacturers for on-premises consumption as authorized under
140 its vendor’s license.
141 3. Wine or liquor for on-premises consumption as authorized
142 under its vendor’s license.
143 (c) A licensee may not:
144 1. Ship malt beverages to or between licensed premises
145 owned by the licensee. A licensee is not a manufacturer for the
146 purposes of s. 563.022(14).
147 2. Distribute or sell malt beverages off the licensed
148 premises.
149 (d)(b) A licensee is Any vendor which is also licensed as a
150 manufacturer of malt beverages pursuant to this subsection shall
151 be responsible for applicable reports pursuant to ss. 561.50 and
152 561.55 with respect to the amount of beverage manufactured each
153 month and must shall pay the applicable excise taxes thereon to
154 the division by the 10th day of each month for the previous
155 month.
156 (e)(c) A It shall be unlawful for any licensed distributor
157 of malt beverages or an any officer, agent, or other
158 representative thereof may not to discourage or prohibit a
159 licensee any vendor licensed as a manufacturer under this
160 subsection from offering malt beverages brewed for consumption
161 on the licensed premises of the vendor.
162 (f)(d) A It shall be unlawful for any manufacturer of malt
163 beverages or an any officer, agent, or other representative
164 thereof may not to take any action to discourage or prohibit a
165 any distributor of the manufacturer’s product from distributing
166 such product to a licensee licensed vendor which is also
167 licensed as a manufacturer of malt beverages pursuant to this
168 subsection.
169 (g) As used in this subsection, the term “licensee” means a
170 vendor licensed as a manufacturer of malt beverages pursuant to
171 this subsection.
172 (4) The Legislature intends that the provisions relating to
173 the sale of malt beverages by a malt beverage manufacturer
174 pursuant to subsection (2) and the operation of a licensed
175 vendor pursuant to subsection (3) constitute limited exceptions
176 to the manufacturing and vendor licensing requirements of the
177 Beverage Law. Anything not specifically authorized in
178 subsections (2) and (3) is prohibited unless otherwise
179 authorized under the Beverage Law.
180 Section 3. Section 561.37, Florida Statutes, is amended to
181 read:
182 561.37 Bond for payment of taxes.—Each manufacturer and
183 each distributor shall file with the division a surety bond
184 acceptable to the division in the sum of $25,000 as surety for
185 the payment of all taxes, provided, however, that when in the
186 discretion of the division the amount of business done by the
187 manufacturer or distributor is of such volume that a bond of
188 less than $25,000 will be adequate to secure the payment of all
189 taxes assessed or authorized by the Beverage Law, the division
190 may accept a bond in a lesser sum than $25,000, but in no event
191 shall it accept a bond of less than $10,000, and it may at any
192 time in its discretion require any bond in an amount less than
193 $25,000 to be increased so as not to exceed $25,000; provided,
194 however, that the amount of bond required for a brewer shall be
195 $5,000 $20,000, except that where, in the discretion of the
196 division, the amount of business done by the brewer is of such
197 volume that a bond of less than $5,000 $20,000 will be adequate
198 to secure the payment of all taxes assessed or authorized by the
199 Beverage Law, the division may accept a bond in a lesser sum
200 than $5,000 $20,000, but in no event shall it accept a bond of
201 less than $2,500 $10,000, and it may at any time in its
202 discretion require any bond in an amount less than $5,000
203 $20,000 to be increased so as not to exceed $5,000 $20,000;
204 provided further that the amount of the bond required for a wine
205 or wine and cordial manufacturer shall be $5,000, except that,
206 in the case of a manufacturer engaged solely in the experimental
207 manufacture of wines and cordials from Florida products, where
208 in the discretion of the division the amount of business done by
209 such manufacturer is of such volume that a bond of less than
210 $5,000 will be adequate to secure the payment of all taxes
211 assessed or authorized by the Beverage Law, the division may
212 accept a bond in a lesser sum than $5,000, but in no event shall
213 it accept a bond of less than $1,000 and it may at any time in
214 its discretion require a bond in an amount less than $5,000 to
215 be increased so as not to exceed $5,000; provided, further, that
216 the amount of bond required for a distributor who sells only
217 beverages containing not more than 4.007 percent of alcohol by
218 volume, in counties where the sale of intoxicating liquors,
219 wines, and beers is prohibited, and to distributors who sell
220 only beverages containing not more than 17.259 percent of
221 alcohol by volume and wines regardless of alcoholic content, in
222 counties where the sale of intoxicating liquors, wines, and
223 beers is permitted, shall file with the division a surety bond
224 acceptable to the division in the sum of $25,000, as surety for
225 the payment of all taxes; provided, however, that where in the
226 discretion of the division the amount of business done by such
227 distributor is of such volume that a bond of less than $25,000
228 will be adequate to secure the payment of all taxes assessed or
229 authorized by the Beverage Law the division may accept a bond in
230 a less sum than $25,000 but in no event shall it accept a bond
231 less than $1,000 and it may at any time in its discretion
232 require any bond in an amount less than $25,000 to be increased
233 so as not to exceed $25,000; provided, further, that the amount
234 of bond required for a distributor in a county having a
235 population of 15,000 or less who procures a license by which his
236 or her sales are restricted to distributors and vendors who have
237 obtained licenses in the same county, shall be $5,000.
238 Section 4. Subsection (1) of section 561.5101, Florida
239 Statutes, is amended to read:
240 561.5101 Come-to-rest requirement; exceptions; penalties.—
241 (1) For purposes of inspection and tax-revenue control, all
242 malt beverages, except those manufactured and sold pursuant to
243 s. 561.221(2) or (3) s. 561.221(3), must come to rest at the
244 licensed premises of an alcoholic beverage wholesaler in this
245 state before being sold to a vendor by the wholesaler. The
246 prohibition contained in this subsection does not apply to the
247 shipment of malt beverages commonly known as private labels. The
248 prohibition contained in this subsection does shall not prevent
249 a manufacturer from shipping malt beverages for storage at a
250 bonded warehouse facility if, provided that such malt beverages
251 are distributed as provided in this subsection or to an out-of
252 state entity.
253 Section 5. Subsections (1) and (3) of section 562.34,
254 Florida Statutes, are amended to read:
255 562.34 Containers; seizure and forfeiture.—
256 (1) A It shall be unlawful for any person may not to have
257 in her or his possession, custody, or control any cans, jugs,
258 jars, bottles, or vessels, or any other type of containers that
259 which are being used, are intended to be used, or are known by
260 the possessor to have been used to bottle or package alcoholic
261 beverages.; however, This subsection does provision shall not
262 apply to a any person properly licensed to bottle or package
263 such alcoholic beverages, a or to any person intending to
264 dispose of such containers to a person, firm, or corporation
265 properly licensed to bottle or package such alcoholic beverages,
266 or a person that has in her or his possession a growler.
267 (3) A It shall be unlawful for any person may not to
268 transport any cans, jugs, jars, bottles, or vessels, or any
269 other type of containers intended to be used to bottle or
270 package alcoholic beverages.; however, This subsection does
271 section shall not apply to a any firm or corporation holding a
272 license to manufacture or distribute such alcoholic beverages, a
273 and shall not apply to any person transporting such containers
274 to a any person, firm, or corporation holding a license to
275 manufacture or distribute such alcoholic beverages, or a person
276 transporting a growler.
277 Section 6. Subsection (14) of section 563.022, Florida
278 Statutes, is reenacted and amended to read:
279 563.022 Relations between beer distributors and
280 manufacturers.—
281 (14) MANUFACTURER; PROHIBITED INTERESTS.—
282 (a) This subsection applies to:
283 1. A manufacturer;
284 2. An Any officer, director, agent, or employee of a
285 manufacturer; or
286 3. An affiliate of a any manufacturer, regardless of
287 whether the affiliation is corporate or by management,
288 direction, or control.
289 (b) Except as provided in paragraph (c), an no entity or
290 person specified in paragraph (a) may not have an interest in
291 the license, business, assets, or corporate stock of a licensed
292 distributor and may not nor shall such entity sell directly to a
293 any vendor in this state other than a vendor to vendors who are
294 licensed pursuant to s. 561.221(2).
295 (c) An Any entity or person specified described in
296 paragraph (a) may financially assist a proposed distributor in
297 acquiring ownership of the distributorship through participation
298 in a limited partnership arrangement in which the entity or
299 person specified described in paragraph (a) is a limited partner
300 and the proposed distributor seeking to acquire ownership of the
301 distributorship is the general partner. Such a limited
302 partnership arrangement arrangements may exist for up to no
303 longer than 8 years from its their creation and may shall not be
304 extended or renewed by means of a transfer of full ownership to
305 an entity or person specified described in paragraph (a)
306 followed by the creation of a new limited partnership or by any
307 other means. In any such arrangement for financial assistance,
308 the federal basic permit and distributor’s license issued by the
309 division shall be issued in the name of the distributor and not
310 in the name of an entity or person specified described in
311 paragraph (a). If, after the creation of a limited partnership
312 pursuant to this paragraph, an entity or person specified
313 described in paragraph (a) acquires title to the distributorship
314 that which was the subject of the limited partnership, the
315 entity or person specified described in paragraph (a) shall
316 divest itself of the distributorship within 180 days, and the
317 distributorship shall be ineligible for limited partnership
318 financing for 20 years thereafter. An No entity or person
319 specified described in paragraph (a) may not shall enter into a
320 limited partnership arrangement with a licensed distributor
321 whose distributorship existed and was operated before prior to
322 the creation of such limited partnership arrangement.
323 (d) Nothing in The Beverage Law does not shall be construed
324 to prohibit a manufacturer from shipping products to or between
325 its breweries without a distributor’s license.
326 (e) Notwithstanding the provisions of paragraph (b), an any
327 entity or person specified named in paragraph (a) may have an
328 interest in the license, business, assets, or corporate stock of
329 a licensed distributor for a maximum of 180 consecutive days as
330 the result of a judgment of foreclosure against the distributor
331 or for 180 consecutive days after acquiring title pursuant to
332 the written request of the licensed distributor. Under either of
333 these circumstances, manufacturer ownership of an interest in
334 the license, business, assets, or corporate stock of a licensed
335 distributor may shall only be for 180 days and only for the
336 purpose of facilitating an orderly transfer of the
337 distributorship to an owner not affiliated with a manufacturer.
338 (f) Notwithstanding the provisions of paragraph (b), an any
339 entity or person specified named in paragraph (a) may have a
340 security interest in the inventory or property of its licensed
341 distributors to secure payment for that said inventory or other
342 loans for other purposes.
343 Section 7. Section 563.06, Florida Statutes, is amended to
344 read:
345 563.06 Malt beverages; imprint on individual container;
346 size of containers; growlers; exemptions.—
347 (1) On and after October 1, 1959, all taxable malt
348 beverages packaged in individual containers possessed by any
349 person in the state for the purpose of sale or resale in the
350 state, except operators of railroads, sleeping cars, steamships,
351 buses, and airplanes engaged in interstate commerce and licensed
352 under this section, shall have imprinted thereon in clearly
353 legible fashion by any permanent method the word “Florida” or
354 “FL” and no other state name or abbreviation of any state name
355 in not less than 8-point type. The word “Florida” or “FL” shall
356 appear first or last, if imprinted in conjunction with any
357 manufacturer’s code. A facsimile of the imprinting and its
358 location as it will appear on the individual container shall be
359 submitted to the division for approval.
360 (2) Nothing herein contained shall require such designation
361 to be attached to individual containers of malt beverages which
362 are transported through this state and which are not sold,
363 delivered, or stored for sale therein, if transported in
364 accordance with such rules and regulations as adopted by the
365 division; nor shall this requirement apply to malt beverages
366 packaged in individual containers and held on the premises of a
367 brewer or bottler, which malt beverages are for sale and
368 delivery to persons outside the state.
369 (3) Possession by any person in the state, except as
370 otherwise provided herein, of more than 4 1/2 gallons of malt
371 beverages in individual containers which do not have the word
372 “Florida” or “FL” as herein provided, shall be prima facie
373 evidence that said malt beverage is possessed for the purpose of
374 sale or resale.
375 (4) Except as otherwise provided herein, any malt beverages
376 in individual containers held or possessed in the state for the
377 purpose of sale or resale within the state which do not bear the
378 word “Florida” or “FL” thereon shall, at the direction of the
379 division, be confiscated in accordance with the provisions of
380 the Beverage Law.
381 (5)(a) Nothing contained in this section shall require that
382 malt beverages packaged in individual containers and possessed
383 by any person in the state for purposes of sale or resale in the
384 state have imprinted thereon the word “Florida” or “FL” if the
385 manufacturer of the malt beverages can establish before the
386 division that the manufacturer has a tracking system in place,
387 by use of code or otherwise, which enables the manufacturer,
388 with at least 85 percent reliability by July 1, 1996, and 90
389 percent reliability by January 1, 2000, to identify the
390 following:
391 1. The place where individual containers of malt beverages
392 were produced;
393 2. The state into which the individual containers of malt
394 beverages were shipped; and
395 3. The individual distributors within the state which
396 received the individual containers of malt beverages.
397 (b) Prior to shipping individual containers of malt
398 beverages into the state which do not have the word “Florida” or
399 “FL” imprinted thereon, the manufacturer must file an
400 application with the division to claim the exemption contained
401 herein and must obtain approval from the division to ship
402 individual containers of malt beverages into the state which do
403 not have the word “Florida” or “FL” imprinted thereon.
404 Information furnished by the manufacturer to establish the
405 criteria contained within paragraph (a) may be subject to an
406 annual audit and verification by the division. The division may
407 revoke an approved exemption if the manufacturer refuses to
408 furnish the information required in paragraph (a) upon request
409 of the division, or if the manufacturer fails to permit a
410 subsequent verification audit, or if the manufacturer fails to
411 fully cooperate with the division during the conducting of an
412 audit.
413 (c) When a distributor has information that malt beverages
414 may have been shipped into Florida on which payment of Florida
415 excise taxes has not been made, such information may be provided
416 to the division and the division shall investigate to ascertain
417 whether any violations of Florida law have occurred.
418 (6) All malt beverages packaged in individual containers
419 sold or offered for sale by vendors at retail in this state,
420 except for malt beverages sold in growlers pursuant to s.
421 563.061, must shall be in individual containers containing no
422 more than 32 ounces of such malt beverages.; provided, however,
423 that nothing contained in This section does not shall affect
424 malt beverages packaged in bulk or in kegs or in barrels or in
425 any individual container containing 1 gallon or more of such
426 malt beverage regardless of individual container type.
427 (7) Any person, firm, or corporation, its agents, officers
428 or employees, violating any of the provisions of this section,
429 shall be guilty of a misdemeanor of the first degree, punishable
430 as provided in s. 775.082 or s. 775.083; and the license, if
431 any, shall be subject to revocation or suspension by the
432 division.
433 Section 8. Section 563.061, Florida Statutes, is created to
434 read:
435 563.061 Malt beverages; filling or refilling of growlers.—
436 (1) The filling or refilling of a growler is limited to:
437 (a) A manufacturer of malt beverages who holds a valid
438 vendor’s license pursuant to s. 561.221(2) if the growler is
439 filled or refilled with malt beverages manufactured on the
440 licensed premises for sale for off-premises consumption to
441 consumers in a face-to-face transaction on the licensed
442 premises;
443 (b) A vendor holding a quota license under ss. 561.20(1)
444 and 565.02(1)(a) with malt beverages authorized under that
445 license for sale for off-premises consumption to consumers in a
446 face-to-face transaction on the licensed premises; or
447 (c) A vendor holding a license under s. 563.02(1)(b)-(f),
448 s. 564.02(1)(b)-(f), or s. 565.02(1)(b)-(f) which authorizes
449 consumption of malt beverages on the premises, unless such
450 license restricts the consumption of malt beverages to the
451 premises only.
452 (2) The growler must have an unbroken seal, or its contents
453 must be incapable of being immediately consumed.
454 (3) The growler must be clearly labeled as containing an
455 alcoholic beverage and provide the name of the manufacturer, the
456 brand, the volume, the percentage of alcohol by volume, and the
457 required federal health warning notice for alcoholic beverages.
458 If a growler being refilled has an existing label or other
459 identifying mark of a manufacturer or brand from a prior filling
460 or refilling, that label must be covered sufficiently to
461 indicate the manufacturer and brand of the malt beverage being
462 placed in the container at that refilling.
463 (4) The growler must be clean before being filled or
464 refilled.
465 (5) A licensee authorized to fill and refill growlers may
466 not use growlers for purposes of distribution or sale outside
467 the manufacturer’s or vendor’s licensed premises, except as
468 authorized under this subsection and s. 561.221(2).
469 Section 9. If any provision of this act or its application
470 to any person or circumstance is held invalid, the invalidity
471 does not affect other provisions or applications of the act
472 which can be given effect without the invalid provision or
473 application, and to this end the provisions of this act are
474 severable.
475 Section 10. This act shall take effect July 1, 2014.