Florida Senate - 2019                                    SB 1304
       
       
        
       By Senator Mayfield
       
       
       
       
       
       17-01939-19                                           20191304__
    1                        A bill to be entitled                      
    2         An act relating to manufacturers of malt beverages;
    3         amending s. 561.221, F.S.; authorizing a manufacturer
    4         to transfer to its licensed facility certain malt
    5         beverages that are brewed by another manufacturer;
    6         exempting certain manufacturers from requirements
    7         relating to relations between beer distributors and
    8         manufacturers; authorizing certain manufacturers to
    9         sell, transport, and deliver certain malt beverages to
   10         vendors; providing applicability; requiring certain
   11         manufacturers to get written permission from a
   12         distributor before making certain deliveries; revising
   13         requirements for a licensed vendor to be licensed as a
   14         manufacturer of malt beverages; defining the term
   15         “barrel”; amending s. 563.022, F.S.; conforming a
   16         provision to changes made by the act; authorizing a
   17         manufacturer to terminate a contract with a
   18         distributor under certain circumstances; amending s.
   19         561.411, F.S.; revising requirements relating to
   20         distributors’ warehouse inventory and sales; amending
   21         s. 561.5101, F.S.; providing an exception to the come
   22         to-rest requirement for certain deliveries made by
   23         specified manufacturers; amending s. 561.57, F.S.;
   24         deleting a prohibition on manufacturers with a
   25         vendor’s license making certain deliveries;
   26         authorizing certain manufacturers to use certain
   27         vehicles when making specified deliveries; providing
   28         an effective date.
   29          
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Paragraphs (c) and (d) of subsection (2) and
   33  paragraph (a) of subsection (3) of section 561.221, Florida
   34  Statutes, are amended, and paragraphs (f) and (g) are added to
   35  subsection (2) of that section, to read:
   36         561.221 Licensing of manufacturers and distributors as
   37  vendors and of vendors as manufacturers; conditions and
   38  limitations.—
   39         (2)
   40         (c) Notwithstanding any other provision of the Beverage
   41  Law, a manufacturer holding multiple manufacturing licenses may
   42  transfer malt beverages to a licensed facility, as provided in
   43  s. 563.022(14)(d), in an amount up to the yearly production
   44  amount at the receiving facility. A manufacturer may also
   45  transfer to its licensed facility Malt beverages and other
   46  alcoholic beverages manufactured by another licensed
   47  manufacturer, including any malt beverages that are owned in
   48  whole or in part by the manufacturer but are brewed by another
   49  manufacturer, must be obtained through a licensed distributor
   50  that is not also a licensed manufacturer, a licensed broker or
   51  sales agent, or a licensed importer.
   52         (d) A manufacturer possessing a vendor’s license under this
   53  subsection is not permitted to make deliveries under s.
   54  561.57(1), except as provided in paragraph (g).
   55         (f) A manufacturer licensed under this subsection that
   56  produces less than 250,000 barrels per year is not subject to
   57  the requirements of s. 563.022.
   58         (g) Notwithstanding any other provision of the Beverage
   59  Law, a manufacturer possessing a vendor’s license under this
   60  subsection may sell, transport, and deliver to a vendor, from
   61  the manufacturer’s licensed premises, malt beverages that have
   62  been manufactured by the manufacturer. A manufacturer acting
   63  pursuant to this paragraph shall comply with the requirements of
   64  ss. 561.42 and 561.423, as applicable, to the same extent as if
   65  the manufacturer were a distributor.
   66         1. The authority provided in this paragraph is limited to
   67  the sale, transport, and delivery of individual containers,
   68  kegs, or other bulk packages but does not include the sale,
   69  transport, and delivery of growlers, as described in s.
   70  563.06(7).
   71         2. Any delivery made pursuant to this paragraph is subject
   72  to s. 561.57(2).
   73         3. This paragraph does not apply to a manufacturer that has
   74  a total production volume of more than 250,000 barrels of malt
   75  beverages per year.
   76         4. A manufacturer that has an existing distribution
   77  agreement with a distributor pursuant to s. 563.022 must get
   78  permission in writing from the distributor before making a
   79  delivery of more than four kegs to any licensed vendor in the
   80  distributor’s sales territory.
   81         (3)(a) Notwithstanding other provisions of the Beverage
   82  Law, any vendor licensed in this state may be licensed as a
   83  manufacturer of malt beverages upon a finding by the division
   84  that:
   85         1. The vendor will be engaged in brewing malt beverages at
   86  a single location and in an amount which will not exceed 5,000
   87  barrels of malt beverages 10,000 kegs per year. For purposes of
   88  this section subsection, the term “barrel” “keg” means 31 15.5
   89  gallons.
   90         2. The malt beverages so brewed will be sold to consumers
   91  for consumption on the vendor’s licensed premises or on other
   92  contiguous licensed premises owned by the vendor.
   93         Section 2. Paragraph (d) of subsection (14) of section
   94  563.022, Florida Statutes, is amended, and subsection (22) is
   95  added to that section, to read:
   96         563.022 Relations between beer distributors and
   97  manufacturers.—
   98         (14) MANUFACTURER; PROHIBITED INTERESTS.—
   99         (d) Nothing in the Beverage Law shall be construed to
  100  prohibit a manufacturer from shipping products to or between its
  101  breweries, or between its breweries and the licensed premises of
  102  a vendor pursuant to s. 561.221(2)(g), without a distributor’s
  103  license.
  104         (22) TERMINATION BASED ON SALES.—Notwithstanding this
  105  section, a manufacturer of malt beverages may terminate a
  106  contract with a distributor upon no less than 120 days’ written
  107  notice if the sales of products to the distributor by the
  108  manufacturer do not exceed 10 percent of the distributor’s total
  109  alcoholic beverage sales for the previous calendar year.
  110         Section 3. Subsections (1) and (2) of section 561.411,
  111  Florida Statutes, are amended to read:
  112         561.411 Qualifications for distributors.—No distributor’s
  113  license shall be issued to or held by any person or business
  114  which does not meet and maintain the following qualifications
  115  with respect to its warehouse inventory and sales.
  116         (1) The distributor must maintain warehouse space which is
  117  either owned or leased by the distributor, or dedicated to the
  118  distributor’s use in a public warehouse, which is sufficient to
  119  store at one time:
  120         (a) An inventory of alcoholic beverages which is equal to
  121  at least 5 10 percent of the distributor’s annual case sales to
  122  licensed vendors within this state or to licensed vendors within
  123  the malt beverage distributor’s exclusive sales territory; or
  124         (b) An inventory for which the cost of acquisition is not
  125  less than $10,000 $100,000.
  126         (2) The distributor must maintain at all times, in a
  127  warehouse which is either owned or leased by the distributor or
  128  in public warehouse space dedicated to the distributor’s use, an
  129  inventory of alcoholic beverages:
  130         (a) Which consists of not less than 5 percent of the
  131  distributor’s annual sales to licensed vendors within this state
  132  or within the malt beverage distributor’s exclusive sales
  133  territory; or
  134         (b) For which the cost of acquisition is not less than
  135  $10,000 $100,000. The inventory required herein shall be owned
  136  by the distributor, not held on consignment, and not acquired
  137  pursuant to a prior agreement to sell it to a specific licensee
  138  or licensees.
  139         (c) For purposes of calculating inventory or percentage of
  140  annual sales as required by paragraphs (a) and (b), the
  141  calculation must shall not include private label inventory whose
  142  label is owned by a vendor.
  143         Section 4. Subsection (1) of section 561.5101, Florida
  144  Statutes, is amended to read:
  145         561.5101 Come-to-rest requirement; exceptions; penalties.—
  146         (1) For purposes of inspection and tax-revenue control, all
  147  malt beverages, except those manufactured and sold by the same
  148  licensee, pursuant to s. 561.221(2) or (3), must come to rest at
  149  the licensed premises of an alcoholic beverage wholesaler in
  150  this state before being sold to a vendor by the wholesaler. The
  151  prohibition contained in this subsection does not apply to the
  152  shipment of malt beverages commonly known as private labels. The
  153  prohibition contained in this subsection shall not prevent a
  154  manufacturer from shipping malt beverages for storage at a
  155  bonded warehouse facility, provided that such malt beverages are
  156  distributed as provided in this subsection or to an out-of-state
  157  entity. The prohibition contained in this subsection does not
  158  apply to a malt beverage manufacturer that is licensed under s.
  159  561.221(2) and that delivers malt beverages to a licensed vendor
  160  pursuant to s. 561.221(2)(g).
  161         Section 5. Subsections (1) and (2) of section 561.57,
  162  Florida Statutes, are amended to read:
  163         561.57 Deliveries by licensees.—
  164         (1) Vendors shall be permitted to make deliveries away from
  165  their places of business of sales actually made at the licensed
  166  place of business; provided, telephone, electronic, or mail
  167  orders received at a vendor’s licensed place of business shall
  168  be construed as a sale actually made at the vendor’s licensed
  169  place of business. Deliveries made by a vendor away from his or
  170  her place of business may be made in vehicles that are owned or
  171  leased by the vendor or in a third-party vehicle pursuant to a
  172  contract with a third party with whom the vendor has contracted
  173  to make deliveries, including, but not limited to, common
  174  carriers. By acceptance of an alcoholic beverage license, the
  175  vendor agrees that vehicles that are owned or leased by the
  176  vendor shall always be subject to inspection and search without
  177  a search warrant for the purpose of ascertaining that all
  178  provisions of the alcoholic beverage laws are complied with by
  179  authorized employees of the division and also by sheriffs,
  180  deputy sheriffs, and police officers during business hours or
  181  other times the vehicle is being used to transport or deliver
  182  alcoholic beverages. A manufacturer possessing a vendor’s
  183  license under s. 561.221(2) is not permitted to make deliveries
  184  under this subsection.
  185         (2) Deliveries made by a manufacturer or distributor away
  186  from his or her place of business may be made only in vehicles
  187  that are owned or leased by the licensee. However, a
  188  manufacturer authorized to make deliveries under s.
  189  561.221(2)(g) may use a vehicle owned or leased by the
  190  manufacturer or any person disclosed on a license application
  191  filed by the manufacturer and approved by the division to make
  192  such deliveries. By acceptance of an alcoholic beverage license
  193  and the use of such vehicles, the licensee agrees that such
  194  vehicle shall always be subject to be inspected and searched
  195  without a search warrant, for the purpose of ascertaining that
  196  all provisions of the alcoholic beverage laws are complied with,
  197  by authorized employees of the division and also by sheriffs,
  198  deputy sheriffs, and police officers during business hours or
  199  other times the vehicle is being used to transport or deliver
  200  alcoholic beverages.
  201         Section 6. This act shall take effect July 1, 2019.