CS/HB 951

1	A bill to be entitled
2	An act relating to the Beverage Law; amending s. 561.42,
3	F.S.; extending to importers and primary American sources
4	of supply, brand owners, and brand registrants, and
5	brokers, sales agents, and sales persons thereof, the
6	prohibition against providing certain financial assistance
7	to retail vendors; defining the term "brand owner";
8	providing an effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Section 561.42, Florida Statutes, is amended to
13	read:
14	561.42  Tied house evil; financial aid and assistance to
15	vendor by manufacturer, or distributor, importer, primary
16	American source of supply, brand owner or registrant, or any
17	broker, sales agent, or sales person thereof, prohibited;
18	procedure for enforcement; exception.--
19	(1)  No licensed manufacturer, or distributor, importer,
20	primary American source of supply, or brand owner or registrant
21	of any of the beverages herein referred to, whether licensed or
22	operating in this state or out-of-state, nor any broker, sales
23	agent, or sales person thereof, shall have any financial
24	interest, directly or indirectly, in the establishment or
25	business of any vendor licensed under the Beverage Law; nor
26	shall such licensed manufacturer, or distributor, importer,
27	primary American source of supply, brand owner or brand
28	registrant, or any broker, sales agent, or sales person thereof,
29	assist any vendor by any gifts or loans of money or property of
30	any description or by the giving of any rebates of any kind
31	whatsoever. No licensed vendor shall accept, directly or
32	indirectly, any gift or loan of money or property of any
33	description or any rebates from any such licensed manufacturer,
34	or distributor, importer, primary American source of supply,
35	brand owner or brand registrant, or any broker, sales agent, or
36	sales person thereof; provided, however, that this does not
37	apply to any bottles, barrels, or other containers necessary for
38	the legitimate transportation of such beverages or to
39	advertising materials and does not apply to the extension of
40	credit, for liquors sold, made strictly in compliance with the
41	provisions of this section. A brand owner is a person who is not
42	a manufacturer, distributor, importer, primary American source
43	of supply, brand registrant, or broker, sales agent, or sales
44	person thereof, but who directly or indirectly owns or controls
45	any brand, brand name, or label of alcoholic beverage. Nothing
46	in this section shall prohibit the ownership by vendors of any
47	brand, brand name, or label of alcoholic beverage.
48	(2)  Credit for the sale of liquors may be extended to any
49	vendor up to, but not including, the 10th day after the calendar
50	week within which such sale was made.
51	(3)  In cases when payment for sales to a vendor is not
52	made by the 10th day succeeding the calendar week in which such
53	sale was made, the distributor who made such sale shall, within
54	3 days, notify the division in writing of such fact; and the
55	division, upon receipt of such notice, shall, after compliance
56	with the proceedings hereinafter mentioned, declare in writing
57	to such vendor and to all manufacturers and distributors within
58	the state that all further sales to such vendor are prohibited
59	until such time as the division certifies in writing that such
60	vendor has fully paid for all liquors previously purchased.
61	However, if a distributor received payment within the 3-day
62	period following the 10th day succeeding the calendar week in
63	which the sale was made, the distributor, if notification to the
64	division has not already been made, is not required to notify
65	the division. Payments so made within the 3-day period do not
66	constitute a violation of this section.
67	(4)  Before the division shall so declare and prohibit such
68	sales to such vendor, it shall, within 2 days after receipt of
69	such notice, give written notice to such vendor by mail of the
70	receipt by the division of such notification of delinquency and
71	such vendor shall be directed to forthwith make payment thereof
72	or, upon failure to do so, to show cause before the division why
73	further sales to such vendor shall not be prohibited. Good and
74	sufficient cause to prevent such action by the division may be
75	made by showing payment, failure of consideration, or any other
76	defense which would be considered sufficient in a common-law
77	action. The vendor shall have 5 days after receipt of such
78	notice within which to show such cause, and he or she may demand
79	a hearing thereon, provided he or she does so in writing within
80	said 5 days, such written demand to be delivered to the division
81	either in person or by due course of mail within such 5 days. If
82	no such demand for hearing is made, the division shall thereupon
83	declare in writing to such vendor and to all manufacturers and
84	distributors within the state that all further sales to such
85	vendor are prohibited until such time as the division certifies
86	in writing that such vendor has fully paid for all liquors
87	previously purchased. In the event such prohibition of sales and
88	declaration thereof to the vendor, manufacturers, and
89	distributors is ordered by the division, the vendor may seek
90	review of such decision by the Department of Business and
91	Professional Regulation within 5 days. In the event application
92	for such review is filed within such time, such prohibition of
93	sales shall not be made, published, or declared until final
94	disposition of such review by the department.
95	(5)  Upon receipt by the division from the distributor of
96	the notice of nonpayment provided for by subsection (3), the
97	division shall forthwith notify such delinquent vendor and all
98	distributors in the state that no further purchases or sales of
99	liquor by or to such vendor, except for cash, shall be made
100	until good cause is shown by such vendor as heretofore provided
101	for. No liquor shall be purchased by such vendor or sold to him
102	or her by any distributor, except for cash, from and after such
103	notification by the division and until such cause is shown as is
104	provided for in subsection (4). In the event no good cause is
105	shown, then all further sales, for cash or credit, are hereby
106	prohibited after such declaration in writing by the division is
107	sent to such vendor and distributors and until all delinquent
108	accounts have been paid.
109	(6)  Nothing herein shall be taken to forbid the giving of
110	trade discounts in the usual course of business upon wine and
111	liquor sales.
112	(7)  The extension or receiving of credits in violation of
113	this section shall be considered as an arrangement for financial
114	assistance and shall constitute a violation of the Beverage Law
115	and any maneuver, shift, or device of any kind by which credit
116	is extended contrary to the provisions of this section shall be
117	considered a violation of the Beverage Law.
118	(8)  The division may establish rules and require reports
119	to enforce the herein-established limitation upon credits and
120	other forms of assistance. Nothing herein shall be taken to
121	affect the provisions of s. 563.08, but shall govern all other
122	sales of intoxicating liquors.
123	(9)  The term "advertising materials" as used in this
124	section does not include outside signs so located as to be
125	connected with or appertaining to the vendor's licensed
126	premises.
127	(10)  No manufacturer, or distributor, importer, primary
128	American source of supply, brand owner, or brand registrant of
129	the beverages referred to herein, or any broker, sales agent, or
130	sales person thereof, shall directly or indirectly give, lend,
131	rent, sell, or in any other manner furnish to a vendor any
132	outside sign, printed, painted, electric, or otherwise; nor
133	shall any vendor display any sign advertising any brand of
134	alcoholic beverages on the outside of his or her licensed
135	premises, on any lot of ground of which the licensed premises
136	are situate, or on any building of which the licensed premises
137	are a part.
138	(11)  A vendor may display in the interior of his or her
139	licensed premises, including the window or windows thereof,
140	neon, electric, or other signs, including window painting and
141	decalcomanias applied to the surface of the interior or exterior
142	of such windows, and posters, placards, and other advertising
143	material advertising the brand or brands of alcoholic beverages
144	sold by him or her, whether visible or not from the outside of
145	the licensed premises, but no vendor shall display in the window
146	or windows of his or her licensed premises more than one neon,
147	electric, or similar sign, advertising the product of any one
148	manufacturer.
149	(12)  Any manufacturer, or distributor, importer, primary
150	American source of supply, or brand owner or registrant, or any
151	broker, sales agent, or sales person thereof, may give, lend,
152	furnish, or sell to a vendor who sells the products of such
153	manufacturer, or distributor, importer, primary American source
154	of supply, or brand owner or registrant any of the following:
155	neon or electric signs, window painting and decalcomanias,
156	posters, placards, and other advertising material herein
157	authorized to be used or displayed by the vendor in the interior
158	of his or her licensed premises. The division shall make
159	reasonable rules governing promotional displays and advertising,
160	which rules shall not conflict with or be more stringent than
161	the federal regulations pertaining to such promotional displays
162	and advertising furnished to vendors by distributors, and
163	manufacturers, importers, primary American sources of supply, or
164	brand owners or registrants, or any broker, sales agent, or
165	sales person thereof; provided, however, that:
166	(a)  If a manufacturer, or distributor, importer, brand
167	owner, or brand registrant of malt beverage, or any broker,
168	sales agent, or sales person thereof, provides a vendor with
169	expendable retailer advertising specialties such as trays,
170	coasters, mats, menu cards, napkins, cups, glasses,
171	thermometers, and the like, such items shall be sold at a price
172	not less than the actual cost to the industry member who
173	initially purchased them, without limitation in total dollar
174	value of such items sold to a vendor.
175	(b)  Without limitation in total dollar value of such items
176	provided to a vendor, a manufacturer, or distributor, importer,
177	brand owner, or brand registrant of malt beverage, or any
178	broker, sales agent, or sales person thereof, may rent, loan
179	without charge for an indefinite duration, or sell durable
180	retailer advertising specialties such as clocks, pool table
181	lights, and the like, which bear advertising matter.
182	(c)  If a manufacturer, or distributor, importer, brand
183	owner, or brand registrant of malt beverage, or any broker,
184	sales agent, or sales person thereof, provides a vendor with
185	consumer advertising specialties such as ashtrays, T-shirts,
186	bottle openers, shopping bags, and the like, such items shall be
187	sold at a price not less than the actual cost to the industry
188	member who initially purchased them, but may be sold without
189	limitation in total value of such items sold to a vendor.
190	(d)  A manufacturer, or distributor, importer, brand owner,
191	or brand registrant of malt beverage, or any broker, sales
192	agent, or sales person thereof, may provide consumer advertising
193	specialties described in paragraph (c) to consumers on any
194	vendor's licensed premises.
195	(e)  Coupons redeemable by vendors shall not be furnished
196	by distributors of beer to consumers.
197	(f)  Manufacturers, or distributors, importers, brand
198	owners, or brand registrants of beer, and any broker, sales
199	agent, or sales person thereof, of beer shall not conduct any
200	sampling activities that include tasting of their product at a
201	vendor's premises licensed for off-premises sales only.
202	(g)  Manufacturers, and distributors, importers, brand
203	owners, or brand registrants of beer, and any broker, sales
204	agent, or sales person thereof, of beer shall not engage in
205	cooperative advertising with vendors.
206	(h)  Distributors of beer may sell to vendors draft
207	equipment and tapping accessories at a price not less than the
208	cost to the industry member who initially purchased them, except
209	there is no required charge, and a distributor may exchange any
210	parts which are not compatible with a competitor's system and
211	are necessary to dispense the distributor's brands. A
212	distributor of beer may furnish to a vendor at no charge
213	replacement parts of nominal intrinsic value, including, but not
214	limited to, washers, gaskets, tail pieces, hoses, hose
215	connections, clamps, plungers, and tap markers.
216	Section 2.  This act shall take effect July 1, 2008.

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