Florida Senate - 2016 CS for CS for SB 698
By the Committees on Fiscal Policy; and Regulated Industries;
and Senator Bradley
594-03048A-16 2016698c2
1 A bill to be entitled
2 An act relating to alcoholic beverages and tobacco;
3 amending s. 210.13, F.S.; revising applicability to
4 include other persons who may be subject to a
5 determination of tax on failure to file and return;
6 amending s. 218.32, F.S.; requiring local governmental
7 entities to include revenues derived from the use of
8 temporary alcoholic beverage permits in annual
9 financial reports; amending s. 561.01, F.S.; defining
10 the term “railroad transit station”; amending s.
11 561.29, F.S.; requiring, rather than authorizing, the
12 Division of Alcoholic Beverages and Tobacco to give a
13 licensee a written waiver of certain requirements;
14 revising the requirements to obtain such waivers;
15 extending a certain waiver period; deleting a
16 provision prohibiting waiver periods from totaling
17 more than 24 months; creating s. 561.4205, F.S.;
18 requiring an alcoholic beverage distributor to charge
19 a deposit for certain alcoholic beverage sales;
20 providing an inventory and reconciliation process as
21 an accounting alternative for specified vendors;
22 providing an inventory and reconciliation process for
23 malt beverage kegs; amending s. 561.422, F.S.;
24 authorizing the division to issue temporary permits to
25 municipalities and counties to sell alcoholic
26 beverages for consumption on the premises of an event;
27 authorizing the director of the division to issue more
28 than three permits per calendar year under certain
29 circumstances; providing conditions for such permits;
30 requiring certain municipalities and counties to
31 remove and properly dispose of unconsumed alcoholic
32 beverages; amending s. 565.02, F.S.; authorizing
33 operators of railroad transit stations to obtain
34 licenses to sell alcoholic beverages; revising the
35 locations where certain beverages may be sold;
36 prohibiting the transfer of specified licenses to
37 certain locations; prohibiting a municipality or
38 county from requiring an additional license or levying
39 a tax to sell certain beverages; exempting railroad
40 transit stations from liquor bottle size restrictions;
41 authorizing alcoholic beverages to be consumed in all
42 areas within the property of a railroad transit
43 station; defining terms; revising legislative
44 findings; requiring permittees to submit a report to
45 the division; providing requirements for the report;
46 amending s. 565.04, F.S.; authorizing a licensed
47 distributor to transport alcoholic beverages through
48 certain premises under specified circumstances;
49 providing an effective date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Section 210.13, Florida Statutes, is amended to
54 read:
55 210.13 Determination of tax on failure to file a return.—If
56 a dealer or other person required to remit the tax under this
57 part fails to file any return required under this part, or
58 having filed an incorrect or insufficient return, fails to file
59 a correct or sufficient return, as the case may require, within
60 10 days after the giving of notice to the dealer by the Division
61 of Alcoholic Beverages and Tobacco that such return or corrected
62 or sufficient return is required, the division shall determine
63 the amount of tax due by such dealer any time within 3 years
64 after the making of the earliest sale included in such
65 determination and give written notice of such determination to
66 such dealer. Such a determination shall finally and irrevocably
67 fix the tax unless the dealer against whom it is assessed shall,
68 within 30 days after the giving of notice of such determination,
69 apply to the division for a hearing. Judicial review shall not
70 be granted unless the amount of tax stated in the decision, with
71 penalties thereon, if any, shall have been first deposited with
72 the division, and an undertaking or bond filed in the court in
73 which such cause may be pending in such amount and with such
74 sureties as the court shall approve, conditioned that if such
75 proceeding be dismissed or the decision of the division
76 confirmed, the applicant for review will pay all costs and
77 charges which may accrue against the applicant in the
78 prosecution of the proceeding. At the option of the applicant,
79 such undertaking or bond may be in an additional sum sufficient
80 to cover the tax, penalties, costs, and charges aforesaid, in
81 which event the applicant shall not be required to pay such tax
82 and penalties precedent to the granting of such review by such
83 court.
84 Section 2. Paragraph (a) of subsection (1) of section
85 218.32, Florida Statutes, is amended to read:
86 218.32 Annual financial reports; local governmental
87 entities.—
88 (1)(a) Each local governmental entity that is determined to
89 be a reporting entity, as defined by generally accepted
90 accounting principles, and each independent special district as
91 defined in s. 189.012, shall submit to the department a copy of
92 its annual financial report for the previous fiscal year in a
93 format prescribed by the department. The annual financial report
94 must include a list of each local governmental entity included
95 in the report and each local governmental entity that failed to
96 provide financial information as required by paragraph (b). The
97 annual financial report must also include all revenues derived
98 from the use of temporary permits obtained by a reporting entity
99 pursuant to s. 561.422. The chair of the governing body and the
100 chief financial officer of each local governmental entity shall
101 sign the annual financial report submitted pursuant to this
102 subsection attesting to the accuracy of the information included
103 in the report. The county annual financial report must be a
104 single document that covers each county agency.
105 Section 3. Subsection (22) is added to section 561.01,
106 Florida Statutes, to read:
107 561.01 Definitions.—As used in the Beverage Law:
108 (22) “Railroad transit station” means a platform or a
109 terminal facility where passenger trains operating on a guided
110 rail system according to a fixed schedule between two or more
111 cities regularly stop to load and unload passengers or goods.
112 The term includes a passenger waiting lounge and dining, retail,
113 entertainment, or recreational facilities within the premises
114 owned or leased by the railroad operator or owner.
115 Section 4. Paragraphs (h) and (i) of subsection (1) of
116 section 561.29, Florida Statutes, are amended to read:
117 561.29 Revocation and suspension of license; power to
118 subpoena.—
119 (1) The division is given full power and authority to
120 revoke or suspend the license of any person holding a license
121 under the Beverage Law, when it is determined or found by the
122 division upon sufficient cause appearing of:
123 (h) Failure by the holder of any license under s. 561.20(1)
124 to maintain the licensed premises in an active manner in which
125 the licensed premises are open for the bona fide sale of
126 authorized alcoholic beverages during regular business hours of
127 at least 6 hours a day for a period of 120 days or more during
128 any 12-month period commencing 18 months after the acquisition
129 of the license by the licensee, regardless of the date the
130 license was originally issued. Every licensee must notify the
131 division in writing of any period during which his or her
132 license is inactive and place the physical license with the
133 division to be held in an inactive status. The division shall,
134 upon written request of the licensee, give a written waiver or
135 extension of the requirement of this paragraph for a period not
136 to exceed 12 months may waive or extend the requirement of this
137 section upon the finding of hardship, including the purchase of
138 the license in order to transfer it to a newly constructed or
139 remodeled location. However, during such closed period, the
140 licensee shall make reasonable efforts toward restoring the
141 license to active status. This paragraph shall apply to all
142 annual license periods commencing on or after July 1, 1981, but
143 shall not apply to licenses issued after September 30, 1988.
144 (i) Failure of any licensee issued a new or transfer
145 license after September 30, 1988, under s. 561.20(1) to maintain
146 the licensed premises in an active manner in which the licensed
147 premises are open for business to the public for the bona fide
148 retail sale of authorized alcoholic beverages during regular and
149 reasonable business hours for at least 8 hours a day for a
150 period of 210 days or more during any 12-month period commencing
151 6 months after the acquisition of the license by the licensee.
152 It is the intent of this act that for purposes of compliance
153 with this paragraph, a licensee shall operate the licensed
154 premises in a manner so as to maximize sales and tax revenues
155 thereon; this includes maintaining a reasonable inventory of
156 merchandise, including authorized alcoholic beverages, and the
157 use of good business practices to achieve the intent of this
158 law. Any attempt by a licensee to circumvent the intent of this
159 law shall be grounds for revocation or suspension of the
160 alcoholic beverage license. Every licensee must notify the
161 division in writing of any period during which his or her
162 license is inactive and place the physical license with the
163 division to be held in an inactive status. The division shall
164 may, upon written request of the licensee, give a written waiver
165 or extension of the this requirement of this paragraph for a
166 period not to exceed 24 12 months in cases where the licensee
167 demonstrates that the licensed premises has been physically
168 destroyed through no fault of the licensee, when the licensee
169 has suffered an incapacitating illness or injury which is likely
170 to be prolonged, or when the licensed premises has been
171 prohibited from making sales as a result of any action of any
172 court of competent jurisdiction. Any waiver given pursuant to
173 this subsection may be continued upon subsequent written request
174 showing that substantial progress has been made toward restoring
175 the licensed premises to a condition suitable for the resumption
176 of sales or toward allowing for a court having jurisdiction over
177 the premises to release said jurisdiction, or that an
178 incapacitating illness or injury continues to exist. However, in
179 no event may the waivers necessitated by any one occurrence
180 cumulatively total more than 24 months. Every licensee shall
181 notify the division in writing of any period during which his or
182 her license is inactive and place the physical license with the
183 division to be held in an inactive status.
184 Section 5. Section 561.4205, Florida Statutes, is created
185 to read:
186 561.4205 Keg deposits; limited alternative inventory and
187 reconciliation process.—
188 (1) A distributor selling an alcoholic beverage to a vendor
189 in bulk, by recyclable keg or other similar reusable container,
190 for the purpose of sale in draft form on tap, must charge the
191 vendor a deposit, to be referred to as a “keg deposit,” in an
192 amount not less than that charged to the distributor by the
193 manufacturer for each keg or container of the beverage sold. The
194 deposit amount charged to a vendor for a draft keg or container
195 of a like brand must be uniform. Charges made for deposits
196 collected or credits allowed for empty kegs or containers
197 returned must be shown separately on all sale tickets or
198 invoices. A copy of such sales tickets or invoices must be given
199 to the vendor at the time of delivery.
200 (2) In lieu of receiving a keg deposit, a distributor
201 selling alcoholic beverages by recyclable keg or other similar
202 reusable container for the purpose of sale in draft form to a
203 vendor identified in s. 561.01(18) or s. 565.02(6) or (7) shall
204 implement an inventory and reconciliation process with such
205 vendor in which an accounting of kegs is completed and any loss
206 or variance in the number of kegs is paid for by the vendor on a
207 per-keg basis equivalent to the required keg deposit. This
208 inventory and reconciliation process may occur twice per year,
209 at the discretion of the distributor, but must occur at least
210 annually. Upon completion of an agreed upon keg inventory and
211 reconciliation, the vendor shall remit payment within 15 days
212 after receiving an invoice from the distributor. The vendor may
213 choose to establish and fund a separate account with the
214 distributor for the purpose of expediting timely payments.
215 Section 6. Section 561.422, Florida Statutes, is amended to
216 read
217 561.422 Municipalities, counties, and nonprofit civic
218 organizations; temporary permits.—
219 (1) Upon the filing of an application, presentation of a
220 local building and zoning permit, and payment of a fee of $25
221 per permit, the director of the division may issue a permit
222 authorizing a municipality, a county, or a bona fide nonprofit
223 civic organization to sell alcoholic beverages for consumption
224 on the premises of an event only, for a period not to exceed 3
225 days, subject to any state law or municipal or county ordinance
226 regulating the time for selling such beverages. All net profits
227 from sales of alcoholic beverages collected during the permit
228 period must be retained by the municipality, county, or
229 nonprofit civic organization. Any such municipality, county, or
230 nonprofit civic organization may be issued only three such
231 permits per calendar year; however, the director of the division
232 may issue more than three permits per calendar year to a
233 municipality or county if such permits are for events that have
234 been authorized by a majority vote of the governing body of the
235 municipality or county at a duly noticed public meeting. The
236 sworn application filed by a municipality or county for a
237 temporary permit under this section must be signed by the chief
238 executive officer of the municipality or county.
239 (2) Notwithstanding other provisions of the Beverage Law,
240 any municipality, county, or nonprofit civic organization
241 licensed under this section may purchase alcoholic beverages
242 from a distributor or vendor licensed under the Beverage Law.
243 (3) All alcoholic beverages purchased for sale by a
244 municipality or county which remain unconsumed after an event
245 must be removed from the premises where the event is held and
246 properly disposed of by the municipality or county.
247 Section 7. Subsections (2) and (9) of section 565.02,
248 Florida Statutes, are amended to read:
249 565.02 License fees; vendors; clubs; caterers; and others.—
250 (2)(a) Any operator of railroad transit stations,
251 railroads, or sleeping cars in this state may obtain a license
252 to sell the beverages mentioned in the Beverage Law on passenger
253 trains upon the payment of an annual license tax of $2,500, the
254 tax to be paid to the division. The Such license is good
255 throughout the state and authorizes shall authorize the licensee
256 holder thereof to keep for sale and to sell all beverages
257 mentioned in the Beverage Law on upon any dining, club, parlor,
258 buffet, or observation car or within the property of a railroad
259 transit station operated by the licensee. it in this state, but
260 Such beverages may be sold only to passengers on such upon the
261 cars or within the property of the railroad transit station and
262 must be served for consumption thereon. Licenses issued pursuant
263 to this paragraph for railroad transit stations may not be
264 transferred to locations beyond the premises of the railroad
265 transit station. A municipality or county may not require an
266 additional license or levy a tax for the privilege of selling
267 such beverages.
268 (b) Except for alcoholic beverages sold within the property
269 of a railroad transit station, it is unlawful for such licensees
270 to purchase or sell any liquor except in miniature bottles of
271 not more than 2 ounces. Every such license shall be good
272 throughout the state. No license shall be required, or tax
273 levied by any municipality or county, for the privilege of
274 selling such beverages for consumption in such cars. Such
275 beverages may shall be sold only on cars in which are posted
276 certified copies of the licenses issued to the such operator are
277 posted. Such Certified copies of such licenses shall be issued
278 by the division upon the payment of a tax of $10.
279 (c) A limitation of the number of licenses issued pursuant
280 to this section does not prohibit the issuance of a license
281 authorized by the Beverage Law or a special license issued
282 pursuant to s. 561.20 to operators of restaurants, shops, or
283 other facilities that are part of, or that serve, railroad
284 transit stations. The alcoholic beverages sold by a licensed
285 operator may be consumed in all areas within the property of the
286 railroad transit station as defined in s. 561.01(22).
287 (9)(a) As used in this subsection, the term:
288 1. “Annual capacity” means an amount equal to the number of
289 lower berths on a vessel multiplied by the number of
290 embarkations of that vessel during a calendar year.
291 2. “Base rate” means an amount equal to the total excise
292 taxes and surcharges paid by all permittees pursuant to this
293 subsection for sales of alcoholic beverages, cigarettes, and
294 other tobacco products taking place between January 1, 2015, and
295 December 31, 2015, inclusive, divided by the sum of the annual
296 capacity of all vessels permitted pursuant to this subsection
297 for the 2015 calendar year.
298 3. “Embarkation” means an instance where a vessel departs
299 from a port in Florida.
300 4. “Lower berth” means a bed that is:
301 a. Affixed to a vessel;
302 b. Not located above another bed in the same cabin; and
303 c. Located in a cabin not in use by employees of the
304 operator of the vessel or its contractors.
305 5. “Quarterly capacity” means an amount equal to the number
306 of lower berths on a vessel multiplied by the number of
307 embarkations of that vessel during a calendar quarter.
308 (b) It is the finding of the Legislature that passenger
309 vessels engaged exclusively in foreign commerce are susceptible
310 to a distinct and separate classification for purposes of the
311 sale of alcoholic beverages, cigarettes, and other tobacco
312 products under the Beverage Law and chapter 210.
313 (c) Upon the filing of an application and payment of an
314 annual fee of $1,100, the director is authorized to issue a
315 permit authorizing the operator, or, if applicable, his or her
316 concessionaire, of a passenger vessel which has cabin-berth
317 capacity for at least 75 passengers, and which is engaged
318 exclusively in foreign commerce, to sell alcoholic beverages,
319 cigarettes, and other tobacco products on the vessel for
320 consumption on board only:
321 1.(a) During a period not in excess of 24 hours prior to
322 departure while the vessel is moored at a dock or wharf in a
323 port of this state; or
324 2.(b) At any time while the vessel is located in Florida
325 territorial waters and is in transit to or from international
326 waters.
327
328 One such permit shall be required for each such vessel and shall
329 name the vessel for which it is issued. No license shall be
330 required or tax levied by any municipality or county for the
331 privilege of selling beverages, cigarettes, or other tobacco
332 products for consumption on board such vessels. The beverages,
333 cigarettes, or other tobacco products so sold may be purchased
334 outside the state by the permittee, and the same shall not be
335 considered as imported for the purposes of s. 561.14(3) solely
336 because of such sale. The permittee is not required to obtain
337 its beverages, cigarettes, or other tobacco products from
338 licensees under the Beverage Law or chapter 210. Each permittee,
339 but it shall keep a strict account of the quarterly capacity of
340 each of its vessels all such beverages sold within this state
341 and shall make quarterly monthly reports to the division on
342 forms prepared and furnished by the division. A permittee who
343 sells on board the vessel beverages withdrawn from United States
344 Bureau of Customs and Border Protection bonded storage on board
345 the vessel may satisfy such accounting requirement by supplying
346 the division with copies of the appropriate United States Bureau
347 of Customs and Border Protection forms evidencing such
348 withdrawals as importations under United States customs laws.
349 (d) Each Such permittee shall pay to the state an excise
350 tax for beverages and an excise tax and surcharge for cigarettes
351 and other tobacco products sold pursuant to this subsection
352 section, if such excise taxes and surcharge have tax has not
353 previously been paid, in an amount equal to the tax which would
354 be required to be paid on such sales by a licensed manufacturer
355 or distributor. The excise taxes and surcharge must be an amount
356 equal to the base rate multiplied by the permittee’s quarterly
357 capacity during the calendar quarter.
358 (e) A vendor holding such permit shall pay the tax
359 quarterly monthly to the division at the same time he or she
360 furnishes the required report. Such report shall be filed on or
361 before the 15th day of each quarter month for the quarterly
362 capacity sales occurring during the previous calendar quarter
363 month.
364 (f) No later than August 1, 2016, each permittee shall
365 report the annual capacity for each of its vessels for calendar
366 year 2015 to the division on forms prepared and furnished by the
367 division. No later than September 1, 2016, the division shall
368 calculate the base rate and report it to each permittee. The
369 department shall publish the base rate in the Florida
370 Administrative Register and on the department’s website.
371 Section 8. Section 565.04, Florida Statutes, is amended to
372 read:
373 565.04 Package store restrictions.—
374 (1) Vendors licensed under s. 565.02(1)(a) shall not in
375 said place of business sell, offer, or expose for sale any
376 merchandise other than such beverages, and such places of
377 business shall be devoted exclusively to such sales; provided,
378 however, that such vendors shall be permitted to sell bitters,
379 grenadine, nonalcoholic mixer-type beverages (not to include
380 fruit juices produced outside this state), fruit juices produced
381 in this state, home bar, and party supplies and equipment
382 (including but not limited to glassware and party-type foods),
383 miniatures of no alcoholic content, and tobacco products. Such
384 places of business shall have no openings permitting direct
385 access to any other building or room, except to a private office
386 or storage room of the place of business from which patrons are
387 excluded.
388 (2) Notwithstanding any other law, when delivering
389 alcoholic beverages to a vendor licensed under s. 565.02(1)(a),
390 a licensed distributor may transport the beverages through
391 another premises owned in whole or in part by the vendor.
392 Section 9. This act shall take effect July 1, 2016.
393