Florida Senate - 2014         (PROPOSED COMMITTEE BILL) SPB 7120
       
       
        
       FOR CONSIDERATION By the Committee on Regulated Industries
       
       
       
       
       
       580-02882A-14                                         20147120__
    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. 561.5101, F.S.; adding an
   10         exception to the come-to-rest requirement; amending s.
   11         562.34, F.S.; authorizing the possession and
   12         transportation of a growler; reenacting s.
   13         563.022(14), F.S., relating to prohibited interests
   14         between a manufacturer and a distributor of malt
   15         beverages, to incorporate the amendments made to s.
   16         561.221, F.S., in a reference thereto; amending s.
   17         563.06, F.S.; revising provisions relating to the sale
   18         of malt beverages at retail in containers of specified
   19         sizes, to conform to changes made by the act;
   20         providing requirements for and limitations on the
   21         filling, refilling, and sale or distribution of
   22         growlers; providing penalties; providing severability;
   23         providing an effective date.
   24          
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Subsection (22) is added to section 561.01,
   28  Florida Statutes, to read:
   29         561.01 Definitions.—As used in the Beverage Law:
   30         (22) “Growler” means a clean container made of glass,
   31  ceramic, metal, or similar leak-proof material having a capacity
   32  of 32 ounces or 64 ounces which, in response to an order in a
   33  face-to-face transaction for off-premises consumption, is filled
   34  with a malt beverage and sealed on the premises at or
   35  immediately before or after the time of sale.
   36         Section 2. Section 561.221, Florida Statutes, is amended to
   37  read:
   38         561.221 Licensing of manufacturers and distributors as
   39  vendors and of vendors as manufacturers; exceptions, conditions,
   40  and limitations.—
   41         (1)(a) Nothing contained in s. 561.22, s. 561.42, or any
   42  other provision of the Beverage Law prohibits the ownership,
   43  management, operation, or control of not more than three
   44  vendor’s licenses for the sale of alcoholic beverages by a
   45  manufacturer of wine who is licensed and engaged in the
   46  manufacture of wine in this state, even if such manufacturer is
   47  also licensed as a distributor; provided that no such vendor’s
   48  license shall be owned, managed, operated, or controlled by any
   49  licensed manufacturer of wine unless the licensed premises of
   50  the vendor are situated on property contiguous to the
   51  manufacturing premises of the licensed manufacturer of wine.
   52         (b) The Division of Alcoholic Beverages and Tobacco shall
   53  issue permits to a certified Florida Farm Winery to conduct
   54  tasting and sales of wine produced by certified Florida Farm
   55  Wineries at Florida fairs, trade shows, expositions, and
   56  festivals. The certified Florida Farm Winery shall pay all entry
   57  fees and shall have a winery representative present during the
   58  event. The permit is limited to the length of the event.
   59         (2) Notwithstanding s. 561.22, s. 561.42, or any other
   60  provision of the Beverage Law, the division is authorized to
   61  issue vendor’s licenses to a manufacturer of malt beverages,
   62  even if such manufacturer is also licensed as a distributor, for
   63  the sale of alcoholic beverages on property consisting of a
   64  single complex, which property shall include a brewery and such
   65  other structures which promote the brewery and the tourist
   66  industry of the state. However, such property may be divided by
   67  no more than one public street or highway. A vendor’s license
   68  issued under this subsection is subject to the following
   69  restrictions:
   70         (a) Sales to consumers for off-premises consumption of malt
   71  beverages that are brewed on the licensed premises are limited
   72  to growlers only, subject to the requirements under s.
   73  563.06(7). Such sales must be made directly to consumers in
   74  face-to-face transactions. This paragraph does not prohibit the
   75  sale of malt beverages that the manufacturer obtains from a
   76  licensed distributor.
   77         (b) Notwithstanding s. 561.57(1), the delivery of a growler
   78  off a licensed premises, whether by common or premises carrier
   79  or by an operator of a privately owned motor vehicle or other
   80  conveyance, is prohibited. In addition, a consumer or other
   81  person may not arrange for the delivery of any growler off the
   82  licensed premises to the consumer, whether by common or premises
   83  carrier or by an operator of a privately owned motor vehicle or
   84  other conveyance. However, this paragraph does not prohibit a
   85  consumer from taking the growler purchased by the consumer under
   86  this subsection from the licensed premises to another location
   87  by a privately owned motor vehicle or other conveyance.
   88         (c) A manufacturer licensed as a vendor is responsible for
   89  applicable reports pursuant to ss. 561.50 and 561.55 with
   90  respect to the amount of malt beverages sold or given to
   91  consumers on the licensed premises each month and must pay the
   92  applicable excise taxes to the division by the 10th day of each
   93  month for the previous month.
   94         (d) This subsection does not preclude a licensed
   95  manufacturer of malt beverages from also holding a permanent
   96  food service license at the licensed premises.
   97         (3)(a)Notwithstanding s. 561.22, s. 561.42, or any other
   98  provision Notwithstanding other provisions of the Beverage Law,
   99  a any vendor licensed in this state may be licensed as a
  100  manufacturer of malt beverages if the vendor satisfies the
  101  requirements of this subsection. upon a finding by the division
  102  that:
  103         (a) The division may issue a license if it finds that all
  104  of the following conditions are met:
  105         1. The vendor will be engaged in brewing malt beverages at
  106  a single licensed premises location and in an amount that which
  107  will not exceed 10,000 kegs per year. As used in For purposes of
  108  this subparagraph subsection, the term “keg” means 15.5 gallons.
  109         2. The malt beverages so brewed will be sold to consumers
  110  for consumption on the vendor’s licensed premises or on
  111  contiguous licensed premises owned by the vendor.
  112         3. The applicant holds a permanent food service license.
  113         (b) A licensee may sell the following alcoholic beverages,
  114  which may be sold only in face-to-face transactions with
  115  consumers:
  116         1. Malt beverages that are manufactured on the licensed
  117  premises for on-premises consumption.
  118         2. Malt beverages that are manufactured by other
  119  manufacturers for on-premises consumption as authorized under
  120  its vendor’s license.
  121         3. Wine or liquor for on-premises consumption as authorized
  122  under its vendor’s license.
  123         (c) A licensee may not:
  124         1. Ship malt beverages to or between licensed premises
  125  owned by the licensee. A licensee is not a manufacturer for the
  126  purposes of s. 563.022(14).
  127         2. Distribute or sell malt beverages outside the licensed
  128  premises.
  129         (d)(b)A licensee is Any vendor which is also licensed as a
  130  manufacturer of malt beverages pursuant to this subsection shall
  131  be responsible for applicable reports pursuant to ss. 561.50 and
  132  561.55 with respect to the amount of beverage manufactured each
  133  month and must shall pay the applicable excise taxes thereon to
  134  the division by the 10th day of each month for the previous
  135  month.
  136         (e)(c)A It shall be unlawful for any licensed distributor
  137  of malt beverages or an any officer, agent, or other
  138  representative thereof may not to discourage or prohibit a
  139  licensee any vendor licensed as a manufacturer under this
  140  subsection from offering malt beverages brewed for consumption
  141  on the licensed premises of the vendor.
  142         (f)(d)A It shall be unlawful for any manufacturer of malt
  143  beverages or an any officer, agent, or other representative
  144  thereof may not to take any action to discourage or prohibit a
  145  any distributor of the manufacturer’s product from distributing
  146  such product to a licensee licensed vendor which is also
  147  licensed as a manufacturer of malt beverages pursuant to this
  148  subsection.
  149         (g) As used in this subsection, the term “licensee” means a
  150  vendor licensed as a manufacturer of malt beverages pursuant to
  151  this subsection.
  152         (4) The Legislature intends that the provisions relating to
  153  the sale of malt beverages by a malt beverage manufacturer
  154  pursuant to subsection (2) and the operation of a licensed
  155  vendor pursuant to subsection (3) constitute limited exceptions
  156  to the manufacturing and vendor licensing requirements of the
  157  Beverage Law. Anything not specifically authorized in
  158  subsections (2) and (3) is prohibited unless otherwise
  159  authorized under the Beverage Law.
  160         Section 3. Subsection (1) of section 561.5101, Florida
  161  Statutes, is amended to read:
  162         561.5101 Come-to-rest requirement; exceptions; penalties.—
  163         (1) For purposes of inspection and tax-revenue control, all
  164  malt beverages, except those manufactured and sold pursuant to
  165  s. 561.221(2) or (3) s. 561.221(3), must come to rest at the
  166  licensed premises of an alcoholic beverage wholesaler in this
  167  state before being sold to a vendor by the wholesaler. The
  168  prohibition contained in this subsection does not apply to the
  169  shipment of malt beverages commonly known as private labels. The
  170  prohibition contained in this subsection does shall not prevent
  171  a manufacturer from shipping malt beverages for storage at a
  172  bonded warehouse facility if, provided that such malt beverages
  173  are distributed as provided in this subsection or to an out-of
  174  state entity.
  175         Section 4. Subsections (1) and (3) of section 562.34,
  176  Florida Statutes, are amended to read:
  177         562.34 Containers; seizure and forfeiture.—
  178         (1) A It shall be unlawful for any person may not to have
  179  in her or his possession, custody, or control any cans, jugs,
  180  jars, bottles, vessels, or any other type of containers that
  181  which are being used, are intended to be used, or are known by
  182  the possessor to have been used to bottle or package alcoholic
  183  beverages.; however, This subsection does provision shall not
  184  apply to a any person properly licensed to bottle or package
  185  such alcoholic beverages, a or to any person intending to
  186  dispose of such containers to a person, firm, or corporation
  187  properly licensed to bottle or package such alcoholic beverages,
  188  or a person that has in her or his possession a growler.
  189         (3) A It shall be unlawful for any person may not to
  190  transport any cans, jugs, jars, bottles, vessels, or any other
  191  type of containers intended to be used to bottle or package
  192  alcoholic beverages.; however, This subsection does section
  193  shall not apply to a any firm or corporation holding a license
  194  to manufacture or distribute such alcoholic beverages, a and
  195  shall not apply to any person transporting such containers to a
  196  any person, firm, or corporation holding a license to
  197  manufacture or distribute such alcoholic beverages, or a person
  198  transporting a growler.
  199         Section 5. Subsection (14) of section 563.022, Florida
  200  Statutes, is reenacted and amended to read:
  201         563.022 Relations between beer distributors and
  202  manufacturers.—
  203         (14) MANUFACTURER; PROHIBITED INTERESTS.—
  204         (a) This subsection applies to:
  205         1. A manufacturer;
  206         2. An Any officer, director, agent, or employee of a
  207  manufacturer; or
  208         3. An affiliate of a any manufacturer, regardless of
  209  whether the affiliation is corporate or by management,
  210  direction, or control.
  211         (b) Except as provided in paragraph (c), an no entity or
  212  person specified in paragraph (a) may not have an interest in
  213  the license, business, assets, or corporate stock of a licensed
  214  distributor and may not nor shall such entity sell directly to a
  215  any vendor in this state other than a vendor to vendors who are
  216  licensed pursuant to s. 561.221(2).
  217         (c) An Any entity or person specified described in
  218  paragraph (a) may financially assist a proposed distributor in
  219  acquiring ownership of the distributorship through participation
  220  in a limited partnership arrangement in which the entity or
  221  person specified described in paragraph (a) is a limited partner
  222  and the proposed distributor seeking to acquire ownership of the
  223  distributorship is the general partner. Such a limited
  224  partnership arrangement arrangements may exist for up to no
  225  longer than 8 years from its their creation and may shall not be
  226  extended or renewed by means of a transfer of full ownership to
  227  an entity or person specified described in paragraph (a)
  228  followed by the creation of a new limited partnership or by any
  229  other means. In any such arrangement for financial assistance,
  230  the federal basic permit and distributor’s license issued by the
  231  division shall be issued in the name of the distributor and not
  232  in the name of an entity or person specified described in
  233  paragraph (a). If, after the creation of a limited partnership
  234  pursuant to this paragraph, an entity or person specified
  235  described in paragraph (a) acquires title to the distributorship
  236  that which was the subject of the limited partnership, the
  237  entity or person specified described in paragraph (a) shall
  238  divest itself of the distributorship within 180 days, and the
  239  distributorship shall be ineligible for limited partnership
  240  financing for 20 years thereafter. An No entity or person
  241  specified described in paragraph (a) may not shall enter into a
  242  limited partnership arrangement with a licensed distributor
  243  whose distributorship existed and was operated before prior to
  244  the creation of such limited partnership arrangement.
  245         (d) Nothing in The Beverage Law does not shall be construed
  246  to prohibit a manufacturer from shipping products to or between
  247  its breweries without a distributor’s license.
  248         (e) Notwithstanding the provisions of paragraph (b), an any
  249  entity or person specified named in paragraph (a) may have an
  250  interest in the license, business, assets, or corporate stock of
  251  a licensed distributor for a maximum of 180 consecutive days as
  252  the result of a judgment of foreclosure against the distributor
  253  or for 180 consecutive days after acquiring title pursuant to
  254  the written request of the licensed distributor. Under either of
  255  these circumstances, manufacturer ownership of an interest in
  256  the license, business, assets, or corporate stock of a licensed
  257  distributor may shall only be for 180 days and only for the
  258  purpose of facilitating an orderly transfer of the
  259  distributorship to an owner not affiliated with a manufacturer.
  260         (f) Notwithstanding the provisions of paragraph (b), an any
  261  entity or person specified named in paragraph (a) may have a
  262  security interest in the inventory or property of its licensed
  263  distributors to secure payment for that said inventory or other
  264  loans for other purposes.
  265         Section 6. Section 563.06, Florida Statutes, is amended to
  266  read:
  267         563.06 Malt beverages; imprint on individual container;
  268  size of containers; growlers; exemptions.—
  269         (1) On and after October 1, 1959, All taxable malt
  270  beverages packaged in individual containers possessed by a any
  271  person in the state for the purpose of sale or resale in the
  272  state, except operators of railroads, sleeping cars, steamships,
  273  buses, and airplanes engaged in interstate commerce and licensed
  274  under this section, must shall have imprinted thereon in clearly
  275  legible fashion by any permanent method the word “Florida” or
  276  “FL” and no other state name or abbreviation of any state name
  277  in not less than 8-point type. The word “Florida” or “FL” shall
  278  appear first or last, if imprinted in conjunction with any
  279  manufacturer’s code. A facsimile of the imprinting and its
  280  location as it will appear on the individual container must
  281  shall be submitted to the division for approval.
  282         (2) Nothing herein contained shall require such designation
  283  to be attached to individual containers of malt beverages which
  284  are transported through this state and which are not sold,
  285  delivered, or stored for sale therein, if transported in
  286  accordance with such rules and regulations as adopted by the
  287  division; nor shall this requirement apply to malt beverages
  288  packaged in individual containers and held on the premises of a
  289  brewer or bottler, which malt beverages are for sale and
  290  delivery to persons outside the state.
  291         (3) Possession by any person in the state, except as
  292  otherwise provided herein, of more than 4 1/2 gallons of malt
  293  beverages in individual containers which do not have the word
  294  “Florida” or “FL” as herein provided, shall be prima facie
  295  evidence that said malt beverage is possessed for the purpose of
  296  sale or resale.
  297         (4) Except as otherwise provided herein, any malt beverages
  298  in individual containers held or possessed in the state for the
  299  purpose of sale or resale within the state which do not bear the
  300  word “Florida” or “FL” thereon shall, at the direction of the
  301  division, be confiscated in accordance with the provisions of
  302  the Beverage Law.
  303         (5)(a) Nothing contained in this section shall require that
  304  malt beverages packaged in individual containers and possessed
  305  by any person in the state for purposes of sale or resale in the
  306  state have imprinted thereon the word “Florida” or “FL” if the
  307  manufacturer of the malt beverages can establish before the
  308  division that the manufacturer has a tracking system in place,
  309  by use of code or otherwise, which enables the manufacturer,
  310  with at least 85 percent reliability by July 1, 1996, and 90
  311  percent reliability by January 1, 2000, to identify the
  312  following:
  313         1. The place where individual containers of malt beverages
  314  were produced;
  315         2. The state into which the individual containers of malt
  316  beverages were shipped; and
  317         3. The individual distributors within the state which
  318  received the individual containers of malt beverages.
  319         (b) Before Prior to shipping individual containers of malt
  320  beverages into the state which do not have the word “Florida” or
  321  “FL” imprinted thereon, the manufacturer must file an
  322  application with the division to claim the exemption contained
  323  herein and must obtain approval from the division to ship
  324  individual containers of malt beverages into the state which do
  325  not have the word “Florida” or “FL” imprinted thereon.
  326  Information furnished by the manufacturer to establish the
  327  criteria contained within paragraph (a) may be subject to an
  328  annual audit and verification by the division. The division may
  329  revoke an approved exemption if the manufacturer refuses to
  330  furnish the information required in paragraph (a) upon request
  331  of the division, or if the manufacturer fails to permit a
  332  subsequent verification audit, or if the manufacturer fails to
  333  fully cooperate with the division during the conducting of an
  334  audit.
  335         (c) When a distributor has information that malt beverages
  336  may have been shipped into Florida on which payment of Florida
  337  excise taxes has not been made, such information may be provided
  338  to the division and the division shall investigate to ascertain
  339  whether any violations of Florida law have occurred.
  340         (6) All malt beverages packaged in individual containers
  341  sold or offered for sale by vendors at retail in this state,
  342  except for malt beverages sold in growlers pursuant to
  343  subsection (7), must shall be in individual containers
  344  containing no more than 32 ounces of such malt beverages.;
  345  provided, however, that nothing contained in
  346         (7)(a) The filling or refilling of a growler is limited to:
  347         1. A manufacturer of malt beverages who holds a valid
  348  vendor’s license pursuant to s. 561.221(2) if the growler is
  349  filled or refilled with malt beverages manufactured on the
  350  licensed premises for sale for off-premises consumption to
  351  consumers in a face-to-face transaction on the licensed
  352  premises; or
  353         2. A vendor holding a quota license under ss. 561.20(1) and
  354  565.02(1)(a) with malt beverages authorized under that license
  355  for sale for off-premises consumption to consumers in a face-to
  356  face transaction on the licensed premises.
  357         (b) The growler must have an unbroken seal, or its contents
  358  must be incapable of being immediately consumed.
  359         (c) The growler must be clearly labeled as containing an
  360  alcoholic beverage and provide the name of the manufacturer, the
  361  brand, the volume, the percentage of alcohol by volume, and the
  362  required federal health warning notice for alcoholic beverages.
  363  If a growler being refilled has an existing label or other
  364  identifying mark of a manufacturer or brand from a prior filling
  365  or refilling, that label must be covered sufficiently to
  366  indicate the manufacturer and brand of the malt beverage being
  367  placed in the container at that refilling.
  368         (d) The growler must be clean before being filled or
  369  refilled.
  370         (e) A licensee authorized to fill and refill growlers may
  371  not use growlers for purposes of distribution or sale outside
  372  the manufacturer’s or vendor’s licensed premises, except as
  373  authorized under this subsection and s. 561.221(2).
  374         (8) This section does not shall affect malt beverages
  375  packaged in bulk, or in kegs or in barrels, or in any individual
  376  container containing 1 gallon or more of such malt beverage
  377  regardless of individual container type.
  378         (9)(7) Any person, firm, or corporation, or any of its
  379  agents, officers or employees, which violates violating any of
  380  the provisions of this section commits, shall be guilty of a
  381  misdemeanor of the first degree, punishable as provided in s.
  382  775.082 or s. 775.083; and the license, if any, is shall be
  383  subject to revocation or suspension by the division.
  384         Section 7. If any provision of this act or its application
  385  to any person or circumstance is held invalid, the invalidity
  386  does not affect other provisions or applications of the act
  387  which can be given effect without the invalid provision or
  388  application, and to this end the provisions of this act are
  389  severable.
  390         Section 8. This act shall take effect July 1, 2014.