Florida Senate - 2021                                      SB 46
       By Senator Hutson
       7-00402C-21                                             202146__
    1                        A bill to be entitled                      
    2         An act relating to craft distilleries; amending s.
    3         565.02, F.S.; defining the terms “destination
    4         entertainment venue” and “common ownership”;
    5         authorizing craft distilleries to be licensed as
    6         specified vendors under certain circumstances;
    7         providing requirements for such licenses; providing
    8         requirements for craft distilleries for such licenses;
    9         prohibiting the licensee from taking certain actions;
   10         requiring certain alcoholic beverages to be obtained
   11         through a licensed distributor that meets specified
   12         criteria; providing construction; amending s. 565.03,
   13         F.S.; redefining the terms “branded product” and
   14         “craft distillery”; prohibiting a distillery from
   15         operating as a craft distillery until certain
   16         requirements are met; authorizing persons to have
   17         common ownership in craft distilleries under certain
   18         circumstances; defining the term “common ownership”;
   19         requiring a minimum percentage of a craft distillery’s
   20         total finished branded products to be distilled in
   21         this state and contain one or more Florida
   22         agricultural products; revising the requirements and
   23         prohibitions on the sale of branded products to
   24         consumers by a licensed craft distillery; revising the
   25         circumstances for which a craft distillery must report
   26         certain information about the production of distilled
   27         spirits to the Division of Alcoholic Beverages and
   28         Tobacco of the Department of Business and Professional
   29         Regulation; revising prohibitions on the shipment of
   30         certain products by a craft distillery; revising
   31         prohibitions on the transfer of a craft distillery
   32         license or ownership interest in such license;
   33         revising prohibitions relating to affiliated
   34         ownerships of craft distilleries; authorizing a craft
   35         distillery to transfer specified distilled spirits
   36         from certain locations to its souvenir gift shop and
   37         tasting room; making technical changes; amending s.
   38         565.17, F.S.; authorizing craft distilleries to
   39         conduct spirituous beverage tastings under certain
   40         circumstances; requiring the division to issue permits
   41         to craft distilleries to conduct tastings and sales at
   42         certain locations; specifying requirements for
   43         distilleries for such permits; providing an effective
   44         date.
   46  Be It Enacted by the Legislature of the State of Florida:
   48         Section 1. Present subsection (12) of section 565.02,
   49  Florida Statutes, is redesignated as subsection (13), and a new
   50  subsection (12) is added to that section, to read:
   51         565.02 License fees; vendors; clubs; caterers; and others.—
   52         (12)(a)As used in this subsection, the term:
   53         1.“Destination entertainment venue means a venue that:
   54         a.Is located in a designated community redevelopment area
   55  authorized under an adopted community redevelopment plan to
   56  support urban redevelopment and economic development;
   57         b.Is owned by a person or a consortium of persons having a
   58  direct or indirect ownership interest in a craft distillery
   59  located within the destination entertainment venue;
   60         c.Is adjacent to and served by multimodal transportation
   61  options, including, at a minimum, bicycle and pedestrian trails
   62  included on an adopted city or county trails map and mass
   63  transit routes established by a city, county, or regional
   64  transportation authority; and
   65         d.Is located within a contiguous area of at least 15
   66  acres, including associated parking and stormwater requirements
   67  as required by local law, regulation, or ordinance, and that
   68  contains:
   69         (I)At least one indoor event venue with a minimum capacity
   70  of 150 people which is fully serviced by a connected onsite
   71  kitchen;
   72         (II)At least one outdoor event venue with a minimum
   73  capacity of 1,000 people which has regularly occurring live
   74  entertainment on a stage that is at least 12 feet deep and 16
   75  feet wide; and
   76         (III)One or more licensed craft distilleries sharing
   77  common ownership.
   78         2.“Common ownership” has the same meaning as in s.
   79  565.03(2)(b).
   80         (b)Notwithstanding any other provisions of the Beverage
   81  Law, upon the payment of the appropriate fees, a craft
   82  distillery licensed in this state may be licensed as a vendor
   83  only for consumption on the premises of alcoholic beverages
   84  manufactured by other manufacturers and acquired through a
   85  distributor. The issuance of a license under this paragraph is
   86  not subject to any quota or limitation, except that the craft
   87  distillery must be:
   88         1. Located on property within a destination entertainment
   89  venue; and
   90         2. In operation and open for tours during normal business
   91  hours at least 5 days a week.
   92         (c) The vendor license may be issued only for the premises
   93  included on the licensed premises sketch on file with the
   94  division under s. 565.03 for the craft distillery, including its
   95  souvenir gift shop or tasting room.
   96         (d)No more than three craft distilleries may be licensed
   97  as a vendor in a community redevelopment area under this
   98  subsection. Craft distilleries licensed as a vendor under this
   99  subsection must be located within the same destination
  100  entertainment venue and must share a common ownership, and the
  101  combined total amount of branded products distilled, blended, or
  102  rectified by the distilleries must total at least 50,000 gallons
  103  of branded products per calendar year.
  104         (e) Except as otherwise provided in this paragraph, a craft
  105  distillery licensed as a vendor under this subsection shall be
  106  treated as a vendor and is subject to all provisions relating to
  107  such vendors licensed to sell alcoholic beverages for
  108  consumption on premises. A craft distillery licensed as a vendor
  109  may not make package sales for off-premises consumption or make
  110  any delivery or shipment of alcoholic beverages away from the
  111  destination entertainment venue or the craft distillery, unless
  112  such shipment or delivery is authorized for a craft distillery
  113  under s. 565.03.
  114         (f) Alcoholic beverages manufactured by another licensed
  115  manufacturer, including branded products manufactured at another
  116  craft distillery location sharing common ownership, must be
  117  obtained through a licensed distributor that is not also a
  118  licensed manufacturer, a licensed broker or sales agent, or a
  119  licensed importer.
  120         (g)Nothing in s. 561.42 or any other provision of the
  121  Beverage Law prohibits a vendor from leasing its licensed
  122  premises within a destination entertainment venue. The terms of
  123  the lease must be based on the fair market value for comparable
  124  property.
  125         Section 2. Paragraphs (a) and (b) of subsection (1) and
  126  subsections (2) and (5) of section 565.03, Florida Statutes, are
  127  amended to read:
  128         565.03 License fees; manufacturers, distributors, brokers,
  129  sales agents, and importers of alcoholic beverages; vendor
  130  licenses and fees; distilleries and craft distilleries.—
  131         (1) As used in this section, the term:
  132         (a) “Branded product” means any distilled spirits product
  133  that:
  134         1.Is owned by a craft distillery;
  135         2.Contains distilled spirits that are manufactured by
  136  distilling, rectifying, or blending by the craft distillery on
  137  its licensed premises; and
  138         3.Has manufactured on site, which requires a federal
  139  certificate and label approval by the Federal Government Alcohol
  140  Administration Act or federal regulations.
  141         (b) “Craft distillery” means a licensed distillery in this
  142  state which distills, rectifies, or blends 250,000 that produces
  143  75,000 or fewer gallons or less of distilled spirits per
  144  calendar year of distilled spirits on the distillery its
  145  premises and has notified the division in writing of its
  146  decision to qualify as a craft distillery.
  147         (2)(a) A distillery may not operate as a craft distillery
  148  until the distillery has provided to the division written
  149  notification that it meets the criteria specified in paragraph
  150  (1)(b). Upon the division’s receipt of the notification and its
  151  verification that the distillery meets all such criteria, the
  152  division shall add the designation of craft distiller on the
  153  distillery’s license.
  154         (b)A person may not share common ownership in more than 10
  155  craft distilleries, provided that no more than:
  156         1.Four of the distilleries each distill, rectify, or blend
  157  250,000 gallons or less of distilled spirits per calendar year;
  158  and
  159         2.Six of the distilleries each distill, rectify, or blend
  160  50,000 gallons or less of distilled spirits per calendar year.
  162  As used in this paragraph, the term “common ownership” means
  163  having a direct or indirect financial interest in two or more
  164  distilleries by the same person.
  165         (c)A minimum of 60 percent of a craft distillery’s total
  166  finished branded products must be distilled in this state and
  167  contain one or more Florida agricultural products.
  168         (d) A distillery or a craft distillery authorized to do
  169  business under the Beverage Law shall pay an annual state
  170  license tax for each plant or branch operating in the state, as
  171  follows:
  172         1. A distillery engaged in the business of manufacturing
  173  distilled spirits: $4,000.
  174         2. A craft distillery engaged in the business of
  175  manufacturing distilled spirits: $1,000.
  176         3. A person engaged in the business of rectifying and
  177  blending spirituous liquors and nothing else: $4,000.
  178         (e)(b)A licensed distillery or licensed craft distillery
  179  may Persons licensed under this section who are in the business
  180  of distilling spirituous liquors may also engage in the business
  181  of rectifying or and blending spirituous liquors without the
  182  payment of an additional license tax.
  183         (f)(c) A craft distillery licensed under this section may
  184  sell directly to consumers up to 75,000 gallons per calendar
  185  year of, at its souvenir gift shop, branded products that are
  186  manufactured by the craft distillery distilled on its premises.
  187  A craft distillery may sell branded products directly to
  188  consumers by the drink for consumption on the premises or by the
  189  package in factory-sealed containers for consumption off the
  190  premises in this state in factory-sealed containers that are
  191  filled at the distillery for off-premises consumption. Such
  192  sales are authorized only in the craft distillery’s souvenir
  193  gift shop or tasting room located on private property contiguous
  194  to the licensed distillery premises. Branded products sold to
  195  consumers must have been distilled, rectified, or blended on the
  196  distillery premises that is located contiguous to the craft
  197  distillery’s souvenir gift shop or tasting room. The souvenir
  198  gift shop or tasting room must be in this state and included on
  199  the sketch or diagram defining the licensed premises submitted
  200  with the distillery’s license application. All sketch or diagram
  201  revisions by the distillery shall require the division’s
  202  approval verifying that the locations of the souvenir gift shops
  203  and tasting rooms shop location operated by the licensed
  204  distillery are is owned or leased by the distillery and on
  205  property contiguous to the distillery’s production building in
  206  this state.
  207         1. Except as authorized under s. 565.17(2), a craft
  208  distillery may not sell any factory-sealed individual containers
  209  of spirits to consumers except in face-to-face sales
  210  transactions with such consumers at the craft distillery’s
  211  licensed premises. Such branded products must be in compliance
  212  with the container limits under s. 565.10 and be intended for
  213  personal consumption rather than for resale who are making a
  214  purchase of no more than six individual containers of each
  215  branded product.
  216         2. Each container sold in face-to-face transactions with
  217  consumers must comply with the container limits in s. 565.10,
  218  per calendar year for the consumer’s personal use and not for
  219  resale and who are present at the distillery’s licensed premises
  220  in this state.
  221         3. A craft distillery must report to the division within 5
  222  days after it exceeds reaches the production limits or is no
  223  longer operating under the requirements or limitations provided
  224  in paragraph (1)(b). Any retail sales of branded products by the
  225  drink or by the package to consumers at the craft distillery’s
  226  licensed premises are prohibited beginning the day after it
  227  exceeds reaches the production limitation.
  228         3.4. A craft distillery may not ship or arrange to ship any
  229  of its branded products or any other alcoholic beverages that it
  230  manufactures by distilling, rectifying, or blending distilled
  231  spirits to consumers and may sell and deliver only to consumers
  232  within the state in a face-to-face transaction at the distillery
  233  property. However, a craft distillery distiller licensed under
  234  this section may ship, arrange to ship, or deliver such spirits
  235  to any manufacturers of distilled spirits, wholesale
  236  distributors of distilled spirits, state or federal bonded
  237  warehouses, or and exporters.
  238         4.5. Except as provided in subparagraph 5. subparagraph 6.,
  239  it is unlawful to transfer a craft distillery license for a
  240  distillery that produces 75,000 or fewer gallons per calendar
  241  year of distilled spirits on its premises or any ownership
  242  interest in such license to an individual or entity that has a
  243  direct or indirect ownership interest in any distillery that
  244  distills, rectifies, or blends 250,000 gallons or more per
  245  calendar year of distilled spirits under any license issued
  246  licensed in this state; in another state, territory, or country;
  247  or by the United States Government to distill manufacture,
  248  blend, or rectify distilled spirits for beverage purposes.
  249         5.6.Except as provided in paragraph (b), a craft
  250  distillery may shall not have its ownership affiliated with
  251  another distillery, unless such distillery is owned by an
  252  individual or entity that distills, rectifies, or blends 250,000
  253  gallons or less per calendar year of distilled spirits produces
  254  75,000 or fewer gallons per calendar year of distilled spirits
  255  on each of its premises in this state or in another state,
  256  territory, or country.
  257         6.A craft distillery may transfer up to 75,000 gallons per
  258  calendar year of its branded products that it distills,
  259  rectifies, or blends from its federal bonded space, nonbonded
  260  space at its licensed premises, or storage areas to its souvenir
  261  gift shop and tasting room.
  262         (5) A craft distillery making sales under paragraph (2)(f)
  263  paragraph (2)(c) is responsible for submitting any excise taxes
  264  due to the state on distilled spirits on beverages under the
  265  Beverage Law with in its monthly report to the division with any
  266  tax payments due to the state.
  267         Section 3. Section 565.17, Florida Statutes, is amended to
  268  read:
  269         565.17 Beverage tastings by distributors, craft
  270  distilleries, and vendors.—
  271         (1) A licensed distributor of spirituous beverages, a craft
  272  distillery as defined in s. 565.03, or any vendor, is authorized
  273  to conduct spirituous beverage tastings upon any licensed
  274  premises authorized to sell spirituous beverages by package or
  275  for consumption on premises without being in violation of s.
  276  561.42, provided that the conduct of the spirituous beverage
  277  tasting shall be limited to and directed toward the general
  278  public of the age of legal consumption.
  279         (2)Craft distilleries may conduct tastings and sales of
  280  distilled spirits produced by the craft distilleries at Florida
  281  fairs, trade shows, farmers markets, expositions, and festivals.
  282  The division shall issue permits to craft distilleries for such
  283  tastings and sales. A craft distillery must pay all entry fees
  284  and must have a distillery representative present during the
  285  event. The permit is limited to the duration and physical
  286  location of the event.
  287         Section 4. This act shall take effect July 1, 2021.