Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 138
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Innovation, Industry, and Technology (Hutson)
       recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 562.20, Florida Statutes, is amended to
    6  read:
    7         562.20 Monthly reports by common and other carriers of
    8  beverages required.—
    9         (1) All common or contract carriers of freight operating in
   10  the state shall file complete and accurate monthly reports with
   11  the division on forms to be prepared by the division which shall
   12  show in detail all shipments and deliveries of all amounts of
   13  alcoholic beverages transported by them to or from any point
   14  within the state or delivered to any point within the state from
   15  any point outside of the state. The division shall issue a
   16  notification of violation to any common or contract carrier who
   17  willfully fails to file the monthly reports required under this
   18  section.
   19         (2) Every other person, except manufacturers and
   20  distributors licensed in this state who are required to make
   21  reports under s. 561.55, who brings into the state from any
   22  point without the state any alcoholic beverages, in amounts
   23  exceeding 1 gallon in the aggregate, shall likewise file
   24  complete and accurate monthly reports with the division on the
   25  forms to be prepared by the division, which shall show in detail
   26  all such amounts of alcoholic beverages transported by them to
   27  any point within the state from any point without the state.
   28  Every licensee under this law who ships any alcoholic beverage
   29  to points beyond the state shall file monthly reports with the
   30  division on forms to be prepared by the division, which shall
   31  show in detail all shipments of alcoholic beverages transported
   32  by them from any point within the state to any point without the
   33  state.
   34         (3) Such reports shall show in detail the name and address
   35  of the shipper, and the consignee, and the recipient of each
   36  shipment; and a description of the kind of malt beverage, wine,
   37  spirit, or other alcoholic beverage and the and amount and
   38  weight of each such shipment; any unique tracking number for the
   39  shipment; and the address and date of delivery for the shipment.
   40  The reports must and shall be filed monthly on or before the
   41  15th of each month for the calendar month previous. The division
   42  shall accept electronic filings of such reports. The books,
   43  records, supporting papers, and documents containing information
   44  and data relating to such reports must be kept and maintained
   45  for a period of 3 years and must be made available for
   46  inspection by the division upon request.
   47         (4)By December 31 of each calendar year, the division
   48  shall submit a report to the Legislature which states the number
   49  of notifications of violation issued under this section during
   50  the calendar year and contains a detailed summary of all data
   51  relating to untaxed alcoholic beverages and the sources of such
   52  beverages, unlicensed sales, and any other violations of the
   53  Beverage Law.
   54         (5)The division may adopt rules to administer this
   55  section.
   56         Section 2. Present subsection (12) of section 565.02,
   57  Florida Statutes, is redesignated as subsection (13), and a new
   58  subsection (12) is added to that section, to read:
   59         565.02 License fees; vendors; clubs; caterers; and others.—
   60         (12)(a)As used in this subsection, the term “destination
   61  entertainment venue“ means a venue that:
   62         1.Is located in a designated community redevelopment area
   63  and is defined by an adopted community redevelopment plan to
   64  support urban redevelopment and economic development;
   65         2.Is adjacent to and served by multimodal transportation
   66  options, including, but not limited to, bicycle and pedestrian
   67  trails included on an adopted city or county trails map; and
   68         3.Contains all of the following within a contiguous area
   69  of at least 5 acres, including associated parking and stormwater
   70  requirements as defined by the local jurisdiction within which
   71  the destination entertainment venue is located:
   72         a.At least one indoor event venue with a minimum capacity
   73  of 500 people which is fully serviced by a connected on-site
   74  kitchen;
   75         b.At least one outdoor event venue with a minimum capacity
   76  of 1,000 people which has regularly occurring live entertainment
   77  on a stage that is at least 12 feet deep and 16 feet wide; and
   78         c.A single craft distillery licensed under s. 565.03. The
   79  craft distillery must be in operation and open for tours during
   80  normal business hours at least 5 days a week.
   81         (b)The issuing of a license under this paragraph is not
   82  subject to any quota or limitation, except that only one license
   83  may be issued per community redevelopment area, the license may
   84  only be issued for the premises included on the sketch or
   85  diagram on file with the division under s. 565.03, and the
   86  license may only be issued to the qualified owner of the
   87  destination entertainment venue or the owner’s designee. Except
   88  as otherwise provided in this paragraph, the entity licensed
   89  under this paragraph shall be treated as a vendor and is subject
   90  to all provisions relating to such vendors licensed to sell by
   91  the drink the beverages mentioned herein. However, the vendor
   92  may not make package sales for off-premises consumption or make
   93  any deliveries or shipments of alcoholic beverages away from the
   94  venue, vendor, or craft distillery which are not authorized
   95  under s. 565.03.
   96         Section 3. Paragraphs (a) and (b) of subsection (1) and
   97  subsections (2) and (5) of section 565.03, Florida Statutes, are
   98  amended to read:
   99         565.03 License fees; manufacturers, distributors, brokers,
  100  sales agents, and importers of alcoholic beverages; vendor
  101  licenses and fees; distilleries and craft distilleries.—
  102         (1) As used in this section, the term:
  103         (a) “Branded product” means any distilled spirits brand of
  104  alcoholic beverage that:
  105         1.Is owned by a craft distillery;
  106         2.Contains distilled spirits that are manufactured,
  107  blended, and bottled by the craft distillery; and
  108         3.Has product manufactured on site, which requires a
  109  federal certificate of and label approval issued to the craft
  110  distillery by the Federal Government Alcohol Administration Act
  111  or federal regulations.
  112         (b) “Craft distillery” means a licensed distillery in this
  113  state which is owned by an individual or entity that distills,
  114  blends, or bottles 250,000 that produces 75,000 or fewer gallons
  115  per calendar year of distilled spirits on all of its commonly
  116  owned premises, provided that a minimum of 60 percent of the
  117  distiller’s total finished branded products are produced from
  118  spirits distilled in this state and contain one or more
  119  agricultural products from this state which have been processed
  120  or combined with other products by the craft distiller and has
  121  notified the division in writing of its decision to qualify as a
  122  craft distillery.
  123         (2)(a)A distillery may not operate as a craft distillery
  124  until the distillery has provided to the division written
  125  notification that it meets the criteria specified in paragraph
  126  (1)(b). Upon receipt of the notice and verification that the
  127  distillery meets all such criteria, the division shall add the
  128  designation of craft distiller on the distillery’s license.
  129         (b)(a) A distillery or a craft distillery authorized to do
  130  business under the Beverage Law shall pay an annual state
  131  license tax for each plant or branch operating in the state, as
  132  follows:
  133         1. A distillery engaged in the business of manufacturing
  134  distilled spirits: $4,000.
  135         2. A craft distillery engaged in the business of
  136  manufacturing distilled spirits: $1,000.
  137         3. A person engaged in the business of rectifying and
  138  blending spirituous liquors and nothing else: $4,000.
  139         (c)(b)A licensed distillery or licensed craft distillery
  140  may Persons licensed under this section who are in the business
  141  of distilling spirituous liquors may also engage in the business
  142  of rectifying and blending spirituous liquors without the
  143  payment of an additional license tax.
  144         (d)(c) A craft distillery licensed under this section may
  145  sell to consumers, by the drink or by the package at its
  146  souvenir gift shops and tasting rooms, up to 75,000 gallons per
  147  calendar year of shop, branded products that are manufactured by
  148  the craft distillery distilled on its premises or in a state or
  149  federal bonded space in this state which is on or contiguous to
  150  the craft distillery’s licensed premises and is owned or leased
  151  by the craft distillery in this state in factory-sealed
  152  containers that are filled at the distillery for off-premises
  153  consumption. Such sales are authorized only on private property
  154  contiguous to the licensed distillery premises in this state and
  155  included on the sketch or diagram defining the licensed premises
  156  submitted with the distillery’s license application. All sketch
  157  or diagram revisions by the distillery shall require the
  158  division’s approval verifying that the locations of the souvenir
  159  gift shops and tasting rooms shop location operated by the
  160  licensed distillery are is owned or leased by the distillery and
  161  on property contiguous to the distillery’s production building
  162  in this state.
  163         1. Except as permitted under s. 565.17(2), a craft
  164  distillery may not sell any factory-sealed individual containers
  165  of spirits to consumers except in face-to-face sales
  166  transactions with such consumers at the craft distillery’s
  167  licensed premises. Such branded products must be in compliance
  168  with the container limits under s. 565.10 and be intended for
  169  personal consumption rather than for resale who are making a
  170  purchase of no more than six individual containers of each
  171  branded product.
  172         2. Each container sold in face-to-face transactions with
  173  consumers must comply with the container limits in s. 565.10,
  174  per calendar year for the consumer’s personal use and not for
  175  resale and who are present at the distillery’s licensed premises
  176  in this state.
  177         3. A craft distillery must report to the division within 5
  178  days after it exceeds reaches the production standards or is no
  179  longer operating under the requirements or limitations provided
  180  in paragraph (1)(b). Any retail sales of branded products by the
  181  drink or by the package to consumers at the craft distillery’s
  182  licensed premises are prohibited beginning the day after it
  183  exceeds reaches the production limitation.
  184         3.4. A craft distillery is prohibited from shipping or
  185  arranging to ship within this state any of its branded products
  186  or any other alcoholic beverages that it manufactures,
  187  rectifies, blends, or bottles may not ship or arrange to ship
  188  any of its distilled spirits to consumers and may sell and
  189  deliver only to consumers within the state in a face-to-face
  190  transaction at the distillery’s souvenir gift shops and tasting
  191  rooms distillery property. However, a craft distillery distiller
  192  licensed under this section may ship, arrange to ship, or
  193  deliver such spirits to any manufacturers of distilled spirits,
  194  wholesale distributors of distilled spirits, state or federal
  195  bonded warehouses, or and exporters.
  196         4.5. Except as provided in subparagraph 5. subparagraph 6.,
  197  it is unlawful to transfer a craft distillery license for a
  198  distillery that produces 75,000 or fewer gallons per calendar
  199  year of distilled spirits on its premises or any ownership
  200  interest in such license to an individual or entity that has a
  201  direct or indirect ownership interest in any distillery that
  202  distills, blends, or bottles 250,000 gallons or more per
  203  calendar year of distilled spirits under any license licensed in
  204  this state; another state, territory, or country; or by the
  205  United States Government to manufacture, blend, or rectify
  206  distilled spirits for beverage purposes.
  207         5.6. A craft distillery shall not have its ownership
  208  affiliated with another distillery, unless such distillery is
  209  owned by an individual or entity that distills, blends, or
  210  bottles 250,000 gallons or less per calendar year of distilled
  211  spirits produces 75,000 or fewer gallons per calendar year of
  212  distilled spirits on each of its premises in this state or in
  213  another state, territory, or country.
  214         6.A craft distillery may transfer up to 75,000 gallons per
  215  calendar year of its branded products that it produces, blends,
  216  or bottles from its federal bonded space, nonbonded space at its
  217  licensed premises, or storage areas to its souvenir gift shops
  218  and tasting rooms.
  219         (5) A craft distillery making sales under paragraph (2)(d)
  220  paragraph (2)(c) is responsible for submitting any excise taxes
  221  due to the state on distilled spirits on beverages under the
  222  Beverage Law with in its monthly report to the division with any
  223  tax payments due to the state.
  224         Section 4. Section 565.17, Florida Statutes, is amended to
  225  read:
  226         565.17 Beverage tastings by distributors and vendors.—
  227         (1) A licensed distributor of spirituous beverages, a craft
  228  distillery as defined in s. 565.03, or any vendor, is authorized
  229  to conduct spirituous beverage tastings upon any licensed
  230  premises authorized to sell spirituous beverages by package or
  231  for consumption on premises without being in violation of s.
  232  561.42, provided that the conduct of the spirituous beverage
  233  tasting shall be limited to and directed toward the general
  234  public of the age of legal consumption.
  235         (2)The division shall issue permits to a craft distillery
  236  to conduct tastings and sales of distilled spirits produced by
  237  craft distilleries at Florida fairs, trade shows, farmers
  238  markets, expositions, and festivals. The craft distillery must
  239  pay all entry fees and must have a distillery representative
  240  present during the event. The permit is limited to the duration
  241  and physical location of the event.
  242         Section 5. This act shall take effect July 1, 2020.
  244  ================= T I T L E  A M E N D M E N T ================
  245  And the title is amended as follows:
  246         Delete everything before the enacting clause
  247  and insert:
  248                        A bill to be entitled                      
  249         An act relating to the Beverage Law; amending s.
  250         562.20, F.S.; revising the types of carriers required
  251         to file monthly reports with the Division of Alcoholic
  252         Beverages and Tobacco within the Department of
  253         Business and Professional Regulation; revising the
  254         required contents of such reports; requiring the
  255         division to issue a notification of violation to
  256         carriers under certain circumstances; revising the
  257         required contents of certain other reports relating to
  258         the transport of alcoholic beverages; requiring the
  259         division to accept electronic filings of such reports;
  260         requiring the reports to be maintained for a specified
  261         time and made available to the division for inspection
  262         upon request; requiring the division to annually
  263         submit a report to the Legislature containing
  264         specified information, by a specified date;
  265         authorizing the division to adopt rules; amending s.
  266         565.02, F.S.; defining the term “destination
  267         entertainment venue”; providing requirements for
  268         certain licenses relating to destination entertainment
  269         venues; prohibiting the licensee from taking certain
  270         actions; amending s. 565.03, F.S.; redefining the
  271         terms “branded product” and “craft distillery”;
  272         prohibiting a distillery from operating as a craft
  273         distillery until certain requirements are met;
  274         revising the requirements and prohibitions on the sale
  275         to consumers of branded products by a licensed craft
  276         distillery; revising the circumstances for which a
  277         craft distillery must report certain information about
  278         the production of distilled spirits to the division;
  279         revising prohibitions on the shipment of certain
  280         products by a craft distillery; revising prohibitions
  281         on the transfer of a craft distillery license or
  282         ownership interest in such license; revising
  283         prohibitions relating to affiliated ownerships of
  284         craft distilleries; authorizing a craft distillery to
  285         transfer specified distilled spirits from certain
  286         locations to its souvenir gift shops and tasting
  287         rooms; making technical changes; amending s. 565.17,
  288         F.S.; authorizing craft distilleries to conduct
  289         spirituous beverage tastings under certain
  290         circumstances; requiring the division to issue permits
  291         to craft distilleries to conduct tastings and sales at
  292         certain locations; providing requirements for
  293         distilleries for such permits; providing an effective
  294         date.