Florida Senate - 2016                              CS for SB 698
       
       
        
       By the Committee on Regulated Industries; and Senator Bradley
       
       580-02108-16                                           2016698c1
    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 waivers from totaling more than
   17         24 months; creating s. 561.4205, F.S.; requiring an
   18         alcoholic beverage distributor to charge a deposit for
   19         certain alcoholic beverage sales; providing an
   20         inventory and reconciliation process as an accounting
   21         alternative for specified vendors; providing an
   22         inventory and reconciliation process for malt beverage
   23         kegs; amending s. 561.422, F.S.; authorizing the
   24         division to issue temporary permits to municipalities
   25         and counties to sell alcoholic beverages for
   26         consumption on the premises of an event; providing
   27         conditions for such permits; requiring such
   28         municipalities and counties to remove and properly
   29         dispose of unconsumed alcoholic beverages; amending s.
   30         562.14, F.S.; exempting railroad transit stations from
   31         provisions regulating the time during which alcoholic
   32         beverages may be sold, served, and consumed; amending
   33         s. 565.02, F.S.; authorizing operators of railroad
   34         transit stations to obtain licenses to sell alcoholic
   35         beverages; revising the locations where certain
   36         beverages may be sold; prohibiting the transfer of
   37         specified licenses to certain locations; prohibiting a
   38         municipality or county from requiring an additional
   39         license or levying a tax to sell certain beverages;
   40         exempting railroad transit stations from liquor bottle
   41         size restrictions; exempting operators of restaurants,
   42         shops, or other facilities that are part of, or that
   43         serve, railroad transit stations from certain
   44         licensing regulations; authorizing alcoholic beverages
   45         to be consumed in all areas within the property of a
   46         railroad transit station; defining terms; revising
   47         legislative findings; requiring permittees to submit a
   48         report to the division; providing requirements for the
   49         report; 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, county, or bona fide nonprofit civic
  223  organization to sell alcoholic beverages for consumption on the
  224  premises of an event only, for a period not to exceed 3 days,
  225  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. The sworn application filed by a
  232  municipality or county for a temporary permit under this section
  233  must be signed by the chief executive officer of the
  234  municipality or county.
  235         (2) Notwithstanding other provisions of the Beverage Law,
  236  any municipality, county, or nonprofit civic organization
  237  licensed under this section may purchase alcoholic beverages
  238  from a distributor or vendor licensed under the Beverage Law.
  239         (3) All alcoholic beverages purchased for sale by a
  240  municipality or county which remain unconsumed after an event
  241  must be removed from the premises of the event and properly
  242  disposed of by the municipality or county.
  243         Section 7. Subsection (1) of section 562.14, Florida
  244  Statutes, is amended to read:
  245         562.14 Regulating the time for sale of alcoholic and
  246  intoxicating beverages; prohibiting use of licensed premises.—
  247         (1) Except as otherwise provided by county or municipal
  248  ordinance, no alcoholic beverages may not be sold, consumed,
  249  served, or permitted to be served or consumed in any place
  250  holding a license under the division between the hours of
  251  midnight and 7 a.m. of the following day. This section does
  252  shall not apply to railroad transit stations or to railroads
  253  selling only to passengers for consumption on railroad cars.
  254         Section 8. Subsections (2) and (9) of section 565.02,
  255  Florida Statutes, are amended to read:
  256         565.02 License fees; vendors; clubs; caterers; and others.—
  257         (2)(a) Any operator of railroad transit stations,
  258  railroads, or sleeping cars in this state may obtain a license
  259  to sell the beverages mentioned in the Beverage Law on passenger
  260  trains upon the payment of an annual license tax of $2,500, the
  261  tax to be paid to the division. The Such license is good
  262  throughout the state and authorizes shall authorize the licensee
  263  holder thereof to keep for sale and to sell all beverages
  264  mentioned in the Beverage Law on upon any dining, club, parlor,
  265  buffet, or observation car or within the property of a railroad
  266  transit station operated by the licensee. it in this state, but
  267  Such beverages may be sold only to passengers on such upon the
  268  cars or within the property of the railroad transit station and
  269  must be served for consumption thereon. Licenses issued pursuant
  270  to this paragraph for railroad transit stations may not be
  271  transferred to locations beyond the premises of the railroad
  272  transit station. A municipality or county may not require an
  273  additional license or levy a tax for the privilege of selling
  274  such beverages.
  275         (b) Except for alcoholic beverages sold within the property
  276  of a railroad transit station, it is unlawful for such licensees
  277  to purchase or sell any liquor except in miniature bottles of
  278  not more than 2 ounces. Every such license shall be good
  279  throughout the state. No license shall be required, or tax
  280  levied by any municipality or county, for the privilege of
  281  selling such beverages for consumption in such cars. Such
  282  beverages may shall be sold only on cars in which are posted
  283  certified copies of the licenses issued to the such operator are
  284  posted. Such Certified copies of such licenses shall be issued
  285  by the division upon the payment of a tax of $10.
  286         (c) A limitation of the number of licenses issued pursuant
  287  to this section does not prohibit the issuance of a license
  288  authorized by the Beverage Law or a special license issued
  289  pursuant to s. 561.20 to operators of restaurants, shops, or
  290  other facilities that are part of, or that serve, railroad
  291  transit stations, and any such licenses issued are exempt from
  292  s. 562.45(2). The alcoholic beverages sold by a licensed
  293  operator may be consumed in all areas within the property of the
  294  railroad transit station as defined in s. 561.01(22).
  295         (9)(a) As used in this subsection, the term:
  296         1. “Annual capacity” means an amount equal to the number of
  297  lower berths on a vessel multiplied by the number of
  298  embarkations of that vessel during a calendar year.
  299         2. “Base rate” means an amount equal to the total taxes
  300  paid by all permittees pursuant to this subsection for sales of
  301  alcoholic beverages, cigarettes, and other tobacco products
  302  taking place between January 1, 2015 and December 31, 2015,
  303  inclusive, divided by the sum of the annual capacities of all
  304  vessels permitted pursuant to this subsection for calendar year
  305  2015.
  306         3. “Embarkation” means an instance where a vessel departs
  307  from a port in Florida.
  308         4. “Lower berth” means a bed that is:
  309         a. Affixed to a vessel;
  310         b. Not located above another bed in the same cabin; and
  311         c. Located in a cabin not in use by employees of the
  312  operator of the vessel or its contractors.
  313         5. “Quarterly capacity” means an amount equal to the number
  314  of lower berths on a vessel multiplied by the number of
  315  embarkations of that vessel during a calendar quarter.
  316         (b) It is the finding of the Legislature that passenger
  317  vessels engaged exclusively in foreign commerce are susceptible
  318  to a distinct and separate classification for purposes of the
  319  sale of alcoholic beverages, cigarettes, and other tobacco
  320  products under the Beverage Law and chapter 210.
  321         (c) Upon the filing of an application and payment of an
  322  annual fee of $1,100, the director is authorized to issue a
  323  permit authorizing the operator, or, if applicable, his or her
  324  concessionaire, of a passenger vessel which has cabin-berth
  325  capacity for at least 75 passengers, and which is engaged
  326  exclusively in foreign commerce, to sell alcoholic beverages,
  327  cigarettes, and other tobacco products on the vessel for
  328  consumption on board only:
  329         1.(a) During a period not in excess of 24 hours prior to
  330  departure while the vessel is moored at a dock or wharf in a
  331  port of this state; or
  332         2.(b) At any time while the vessel is located in Florida
  333  territorial waters and is in transit to or from international
  334  waters.
  335  
  336  One such permit shall be required for each such vessel and shall
  337  name the vessel for which it is issued. No license shall be
  338  required or tax levied by any municipality or county for the
  339  privilege of selling beverages, cigarettes, or other tobacco
  340  products for consumption on board such vessels. The beverages,
  341  cigars, or other tobacco products so sold may be purchased
  342  outside the state by the permittee, and the same shall not be
  343  considered as imported for the purposes of s. 561.14(3) solely
  344  because of such sale. The permittee is not required to obtain
  345  its beverages, cigarettes, or other tobacco products from
  346  licensees under the Beverage law or chapter 210. Each permittee,
  347  but it shall keep a strict account of the quarterly capacity of
  348  each of its vessels all such beverages sold within this state
  349  and shall make quarterly monthly reports to the division on
  350  forms prepared and furnished by the division. A permittee who
  351  sells on board the vessel beverages withdrawn from United States
  352  Bureau of Customs and Border Protection bonded storage on board
  353  the vessel may satisfy such accounting requirement by supplying
  354  the division with copies of the appropriate United States Bureau
  355  of Customs and Border Protection forms evidencing such
  356  withdrawals as importations under United States customs laws.
  357         (d)Each Such permittee shall pay to the state an excise
  358  tax for beverages, cigarettes, and other tobacco products sold
  359  pursuant to this subsection section, if such excise tax has not
  360  previously been paid, in an amount equal to the tax which would
  361  be required to be paid on such sales by a licensed manufacturer
  362  or distributor. The excise tax must be an amount equal to the
  363  base rate multiplied by the permittee’s quarterly capacity
  364  during the calendar quarter.
  365         (e) A vendor holding such permit shall pay the tax
  366  quarterly monthly to the division at the same time he or she
  367  furnishes the required report. Such report shall be filed on or
  368  before the 15th day of each quarter month for the quarterly
  369  capacity sales occurring during the previous calendar quarter
  370  month.
  371         (f) No later than August 1, 2016, each permittee shall
  372  report the annual capacity for each of its vessels for calendar
  373  year 2015 to the division on forms prepared and furnished by the
  374  division. No later than September 1, 2016, the division shall
  375  calculate the base rate and report it to each permittee. The
  376  department shall publish the base rate in the Florida
  377  Administrative Register and on the department’s website.
  378         Section 9. This act shall take effect July 1, 2016.