Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. SB 46
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Regulated Industries (Hutson) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Present subsection (12) of section 565.02,
    6  Florida Statutes, is redesignated as subsection (13), and a new
    7  subsection (12) is added to that section, to read:
    8         565.02 License fees; vendors; clubs; caterers; and others.—
    9         (12)(a)As used in this subsection, the term “destination
   10  entertainment venue means a venue that:
   11         1.Is located in a designated community redevelopment area
   12  authorized under an adopted community redevelopment plan to
   13  support urban redevelopment and economic development;
   14         2.Is owned by any person licensed as a craft distillery
   15  located within the destination entertainment venue;
   16         3.Is adjacent to and served by multimodal transportation
   17  options, including, at a minimum, bicycle and pedestrian trails
   18  included on an adopted city or county trails map and mass
   19  transit routes established by a city, county, or regional
   20  transportation authority; and
   21         4.Is located within a contiguous area of at least 15
   22  acres, including associated parking and stormwater requirements
   23  as required by local law, regulation, or ordinance, and that
   24  contains:
   25         a.At least one indoor event venue with a minimum capacity
   26  of 150 people which is fully serviced by a connected onsite
   27  kitchen;
   28         b.At least one outdoor event venue with a minimum capacity
   29  of 1,000 people which has regularly occurring live entertainment
   30  on a stage that is at least 12 feet deep and 16 feet wide; and
   31         c.One or more licensed craft distilleries sharing
   32  identical ownership.
   33         (b)Notwithstanding any other provisions of the Beverage
   34  Law, upon the payment of the appropriate fees, a craft
   35  distillery licensed in this state may be licensed as a vendor
   36  only for consumption on the premises of alcoholic beverages
   37  manufactured by other manufacturers and acquired through a
   38  distributor. The issuance of a license under this paragraph is
   39  not subject to any quota or limitation, except that the craft
   40  distillery must be:
   41         1. Located on property within a destination entertainment
   42  venue; and
   43         2. In operation and open for tours during normal business
   44  hours at least 5 days a week.
   45         (c) The vendor license may be issued only for the premises
   46  included on the licensed premises sketch on file with the
   47  division under s. 565.03 for the craft distillery, including its
   48  souvenir gift shop or tasting room.
   49         (d)No more than three craft distilleries may be licensed
   50  as a vendor in a community redevelopment area under this
   51  subsection. Craft distilleries licensed as a vendor under this
   52  subsection must be located within the same destination
   53  entertainment venue and must share identical ownership, and each
   54  craft distillery must distill, blend, or rectify at least 50,000
   55  gallons of branded products per calendar year.
   56         (e) Except as otherwise provided in this paragraph, a craft
   57  distillery licensed as a vendor under this subsection shall be
   58  treated as a vendor and is subject to all provisions relating to
   59  such vendors licensed to sell alcoholic beverages for
   60  consumption on premises. A craft distillery licensed as a vendor
   61  may not make package sales for off-premises consumption or make
   62  any delivery or shipment of alcoholic beverages away from the
   63  destination entertainment venue or the craft distillery, unless
   64  such shipment or delivery is authorized for a craft distillery
   65  under s. 565.03.
   66         (f) Alcoholic beverages manufactured by another licensed
   67  manufacturer, including branded products manufactured at another
   68  craft distillery location sharing identical ownership, must be
   69  obtained through a licensed distributor.
   70         Section 2. Paragraphs (a) and (b) of subsection (1) and
   71  subsections (2) and (5) of section 565.03, Florida Statutes, are
   72  amended to read:
   73         565.03 License fees; manufacturers, distributors, brokers,
   74  sales agents, and importers of alcoholic beverages; vendor
   75  licenses and fees; distilleries and craft distilleries.—
   76         (1) As used in this section, the term:
   77         (a) “Branded product” means any distilled spirits product
   78  that:
   79         1.Is owned by a craft distillery;
   80         2.Contains distilled spirits that are manufactured by
   81  distilling, rectifying, or blending by the craft distillery on
   82  its licensed premises; and
   83         3.Has manufactured on site, which requires a federal
   84  certificate and label approval by the Federal Government Alcohol
   85  Administration Act or federal regulations.
   86         (b) “Craft distillery” means a licensed distillery in this
   87  state which distills, rectifies, or blends 250,000 that produces
   88  75,000 or fewer gallons or less of distilled spirits per
   89  calendar year of distilled spirits on its premises and has
   90  notified the division in writing of its decision to qualify as a
   91  craft distillery.
   92         (2)(a) A distillery may not operate as a craft distillery
   93  until the distillery has provided to the division written
   94  notification that it meets the criteria specified in paragraph
   95  (1)(b). Upon the division’s receipt of the notification and its
   96  verification that the distillery meets all such criteria, the
   97  division shall add the designation of craft distiller on the
   98  distillery’s license.
   99         (b)A person may not share common ownership in more than 10
  100  craft distilleries, provided that no more than:
  101         1.Four of the distilleries each distill, rectify, or blend
  102  250,000 gallons or less of distilled spirits per calendar year;
  103  and
  104         2.Six of the distilleries each distill, rectify, or blend
  105  50,000 gallons or less of distilled spirits per calendar year.
  107  As used in this paragraph, the term “common ownership” means
  108  having a direct or indirect financial interest in two or more
  109  distilleries by the same person.
  110         (c)Effective July 1, 2026, a minimum of 60 percent of a
  111  craft distillery’s total finished branded products must be
  112  distilled in this state and contain one or more Florida
  113  agricultural products.
  114         (d) A distillery or a craft distillery authorized to do
  115  business under the Beverage Law shall pay an annual state
  116  license tax for each plant or branch operating in the state, as
  117  follows:
  118         1. A distillery engaged in the business of manufacturing
  119  distilled spirits: $4,000.
  120         2. A craft distillery engaged in the business of
  121  manufacturing distilled spirits: $1,000.
  122         3. A person engaged in the business of rectifying and
  123  blending spirituous liquors and nothing else: $4,000.
  124         (e)(b)A licensed distillery or licensed craft distillery
  125  may Persons licensed under this section who are in the business
  126  of distilling spirituous liquors may also engage in the business
  127  of rectifying or and blending spirituous liquors without the
  128  payment of an additional license tax.
  129         (f)(c) A craft distillery licensed under this section may
  130  sell directly to consumers up to 75,000 gallons per calendar
  131  year of, at its souvenir gift shop, branded products that are
  132  manufactured by the craft distillery distilled on its premises.
  133  A craft distillery may sell branded products directly to
  134  consumers by the drink for consumption on the premises or by the
  135  package in factory-sealed containers for consumption off the
  136  premises in this state in factory-sealed containers that are
  137  filled at the distillery for off-premises consumption. Such
  138  sales are authorized only in the craft distillery’s souvenir
  139  gift shop or tasting room located on private property contiguous
  140  to the licensed distillery premises. Branded products sold to
  141  consumers must have been distilled, rectified, or blended on the
  142  distillery premises that is located contiguous to the craft
  143  distillery’s souvenir gift shop or tasting room. The souvenir
  144  gift shop or tasting room must be in this state and included on
  145  the sketch or diagram defining the licensed premises submitted
  146  with the distillery’s license application. All sketch or diagram
  147  revisions by the distillery shall require the division’s
  148  approval verifying that the locations of the souvenir gift shops
  149  and tasting rooms shop location operated by the licensed
  150  distillery are is owned or leased by the distillery and on
  151  property contiguous to the distillery’s production building in
  152  this state.
  153         1. Except as authorized under s. 565.17(2), a craft
  154  distillery may not sell any factory-sealed individual containers
  155  of spirits to consumers except in face-to-face sales
  156  transactions with such consumers at the craft distillery’s
  157  licensed premises. Such branded products must be in compliance
  158  with the container limits under s. 565.10 and be intended for
  159  personal consumption rather than for resale who are making a
  160  purchase of no more than six individual containers of each
  161  branded product.
  162         2. Each container sold in face-to-face transactions with
  163  consumers must comply with the container limits in s. 565.10,
  164  per calendar year for the consumer’s personal use and not for
  165  resale and who are present at the distillery’s licensed premises
  166  in this state.
  167         3. A craft distillery must report to the division within 5
  168  days after it exceeds reaches the production limits or is no
  169  longer operating under the requirements or limitations provided
  170  in paragraph (1)(b). Any retail sales of branded products by the
  171  drink or by the package to consumers at the craft distillery’s
  172  licensed premises are prohibited beginning the day after it
  173  exceeds reaches the production limitation.
  174         3.4. A craft distillery may not ship or arrange to ship any
  175  of its branded products or any other alcoholic beverages
  176  distilled spirits to consumers and may sell and deliver only to
  177  consumers within the state in a face-to-face transaction at the
  178  distillery property. However, a craft distillery distiller
  179  licensed under this section may ship, arrange to ship, or
  180  deliver such spirits to any manufacturers of distilled spirits,
  181  wholesale distributors of distilled spirits, state or federal
  182  bonded warehouses, or and exporters.
  183         4.5. Except as provided in subparagraph 5. subparagraph 6.,
  184  it is unlawful to transfer a craft distillery license for a
  185  distillery that produces 75,000 or fewer gallons per calendar
  186  year of distilled spirits on its premises or any ownership
  187  interest in such license to an individual or entity that has a
  188  direct or indirect ownership interest in any distillery that
  189  distills, rectifies, or blends 250,000 gallons or more per
  190  calendar year of distilled spirits under any license issued
  191  licensed in this state; in another state, territory, or country;
  192  or by the United States Government to distill manufacture,
  193  blend, or rectify distilled spirits for beverage purposes.
  194         5.6.Except as provided in paragraph (b), a craft
  195  distillery may shall not have its ownership affiliated with
  196  another distillery, unless such distillery is owned by an
  197  individual or entity that distills, rectifies, or blends 250,000
  198  gallons or less per calendar year of distilled spirits produces
  199  75,000 or fewer gallons per calendar year of distilled spirits
  200  on each of its premises in this state or in another state,
  201  territory, or country.
  202         6.A craft distillery may transfer up to 75,000 gallons per
  203  calendar year of its branded products that it distills,
  204  rectifies, or blends from its federal bonded space, nonbonded
  205  space at its licensed premises, or storage areas to its souvenir
  206  gift shop and tasting room.
  207         (5) A craft distillery making sales under paragraph (2)(f)
  208  paragraph (2)(c) is responsible for submitting any excise taxes
  209  due to the state on distilled spirits on beverages under the
  210  Beverage Law with in its monthly report to the division with any
  211  tax payments due to the state.
  212         Section 3. Section 565.17, Florida Statutes, is amended to
  213  read:
  214         565.17 Beverage tastings by distributors, craft
  215  distilleries, and vendors.—
  216         (1) A licensed distributor of spirituous beverages, a craft
  217  distillery as defined in s. 565.03, or any vendor, is authorized
  218  to conduct spirituous beverage tastings upon any licensed
  219  premises authorized to sell spirituous beverages by package or
  220  for consumption on premises without being in violation of s.
  221  561.42, provided that the conduct of the spirituous beverage
  222  tasting shall be limited to and directed toward the general
  223  public of the age of legal consumption.
  224         (2)Craft distilleries may conduct tastings and sales of
  225  distilled spirits produced by the craft distilleries at Florida
  226  fairs, trade shows, farmers markets, expositions, and festivals.
  227  The division shall issue permits to craft distilleries for such
  228  tastings and sales. A craft distillery must pay all entry fees
  229  and must have a distillery representative present during the
  230  event. The permit is limited to the duration and physical
  231  location of the event.
  232         Section 4. This act shall take effect July 1, 2021.
  234  ================= T I T L E  A M E N D M E N T ================
  235  And the title is amended as follows:
  236         Delete everything before the enacting clause
  237  and insert:
  238                        A bill to be entitled                      
  239         An act relating to the craft distilleries; amending s.
  240         565.02, F.S.; defining the term “destination
  241         entertainment venue”; authorizing craft distilleries
  242         to be licensed as specified vendors under certain
  243         circumstances; providing requirements for such
  244         licenses; providing requirements for craft
  245         distilleries for such licenses; prohibiting a licensee
  246         from taking certain actions; requiring certain
  247         alcoholic beverages to be obtained through a licensed
  248         distributor; amending s. 565.03, F.S.; redefining the
  249         terms “branded product” and “craft distillery”;
  250         prohibiting a distillery from operating as a craft
  251         distillery until certain requirements are met;
  252         authorizing persons to have common ownership in craft
  253         distilleries under certain circumstances; defining the
  254         term “common ownership”; requiring a minimum
  255         percentage of a craft distillery’s total finished
  256         branded products to be distilled in this state and
  257         contain one or more Florida agricultural products
  258         after a specified date; revising the requirements and
  259         prohibitions on the sale of branded products to
  260         consumers by a licensed craft distillery; revising the
  261         circumstances for which a craft distillery must report
  262         certain information about the production of distilled
  263         spirits to the Division of Alcoholic Beverages and
  264         Tobacco of the Department of Business and Professional
  265         Regulation; revising prohibitions on the shipment of
  266         certain products by a craft distillery; revising
  267         prohibitions on the transfer of a craft distillery
  268         license or ownership interest in such license;
  269         revising prohibitions relating to affiliated ownership
  270         of craft distilleries; authorizing a craft distillery
  271         to transfer specified distilled spirits from certain
  272         locations to its souvenir gift shop and tasting room;
  273         making technical changes; amending s. 565.17, F.S.;
  274         authorizing craft distilleries to conduct spirituous
  275         beverage tastings under certain circumstances;
  276         requiring the division to issue permits to craft
  277         distilleries to conduct tastings and sales at certain
  278         locations; specifying requirements for distilleries
  279         for such permits; providing an effective date.