Florida Senate - 2021                               CS for SB 46
       By the Committee on Regulated Industries; and Senator Hutson
       580-01309-21                                            202146c1
    1                        A bill to be entitled                      
    2         An act relating to craft distilleries; amending s.
    3         565.02, F.S.; defining the term “destination
    4         entertainment venue”; authorizing craft distilleries
    5         to be licensed as specified vendors under certain
    6         circumstances; providing requirements for such
    7         licenses; providing requirements for craft
    8         distilleries for such licenses; prohibiting a licensee
    9         from taking certain actions; requiring certain
   10         alcoholic beverages to be obtained through a licensed
   11         distributor; amending s. 565.03, F.S.; redefining the
   12         terms “branded product” and “craft distillery”;
   13         prohibiting a distillery from operating as a craft
   14         distillery until certain requirements are met;
   15         authorizing persons to have common ownership in craft
   16         distilleries under certain circumstances; defining the
   17         term “common ownership”; requiring a minimum
   18         percentage of a craft distillery’s total finished
   19         branded products to be distilled in this state and
   20         contain one or more Florida agricultural products
   21         after a specified date; revising the requirements and
   22         prohibitions on the sale of branded products to
   23         consumers by a licensed craft distillery; revising the
   24         circumstances for which a craft distillery must report
   25         certain information about the production of distilled
   26         spirits to the Division of Alcoholic Beverages and
   27         Tobacco of the Department of Business and Professional
   28         Regulation; revising prohibitions on the shipment of
   29         certain products by a craft distillery; revising
   30         prohibitions on the transfer of a craft distillery
   31         license or ownership interest in such license;
   32         revising prohibitions relating to affiliated ownership
   33         of craft distilleries; authorizing a craft distillery
   34         to transfer specified distilled spirits from certain
   35         locations to its souvenir gift shop and tasting room;
   36         making technical changes; amending s. 565.17, F.S.;
   37         authorizing craft distilleries to conduct spirituous
   38         beverage tastings under certain circumstances;
   39         requiring the division to issue permits to craft
   40         distilleries to conduct tastings and sales at certain
   41         locations; specifying requirements for distilleries
   42         for such permits; providing an effective date.
   44  Be It Enacted by the Legislature of the State of Florida:
   46         Section 1. Present subsection (12) of section 565.02,
   47  Florida Statutes, is redesignated as subsection (13), and a new
   48  subsection (12) is added to that section, to read:
   49         565.02 License fees; vendors; clubs; caterers; and others.—
   50         (12)(a)As used in this subsection, the term “destination
   51  entertainment venue means a venue that:
   52         1.Is located in a designated community redevelopment area
   53  authorized under an adopted community redevelopment plan to
   54  support urban redevelopment and economic development;
   55         2.Is owned by any person licensed as a craft distillery
   56  located within the destination entertainment venue;
   57         3.Is adjacent to and served by multimodal transportation
   58  options, including, at a minimum, bicycle and pedestrian trails
   59  included on an adopted city or county trails map and mass
   60  transit routes established by a city, county, or regional
   61  transportation authority; and
   62         4.Is located within a contiguous area of at least 15
   63  acres, including associated parking and stormwater requirements
   64  as required by local law, regulation, or ordinance, and that
   65  contains:
   66         a.At least one indoor event venue with a minimum capacity
   67  of 150 people which is fully serviced by a connected onsite
   68  kitchen;
   69         b.At least one outdoor event venue with a minimum capacity
   70  of 1,000 people which has regularly occurring live entertainment
   71  on a stage that is at least 12 feet deep and 16 feet wide; and
   72         c.One or more licensed craft distilleries sharing
   73  identical ownership.
   74         (b)Notwithstanding any other provisions of the Beverage
   75  Law, upon the payment of the appropriate fees, a craft
   76  distillery licensed in this state may be licensed as a vendor
   77  only for consumption on the premises of alcoholic beverages
   78  manufactured by other manufacturers and acquired through a
   79  distributor. The issuance of a license under this paragraph is
   80  not subject to any quota or limitation, except that the craft
   81  distillery must be:
   82         1. Located on property within a destination entertainment
   83  venue; and
   84         2. In operation and open for tours during normal business
   85  hours at least 5 days a week.
   86         (c) The vendor license may be issued only for the premises
   87  included on the licensed premises sketch on file with the
   88  division under s. 565.03 for the craft distillery, including its
   89  souvenir gift shop or tasting room.
   90         (d)No more than three craft distilleries may be licensed
   91  as a vendor in a community redevelopment area under this
   92  subsection. Craft distilleries licensed as a vendor under this
   93  subsection must be located within the same destination
   94  entertainment venue and must share identical ownership, and each
   95  craft distillery must distill, blend, or rectify at least 50,000
   96  gallons of branded products per calendar year.
   97         (e) Except as otherwise provided in this paragraph, a craft
   98  distillery licensed as a vendor under this subsection shall be
   99  treated as a vendor and is subject to all provisions relating to
  100  such vendors licensed to sell alcoholic beverages for
  101  consumption on premises. A craft distillery licensed as a vendor
  102  may not make package sales for off-premises consumption or make
  103  any delivery or shipment of alcoholic beverages away from the
  104  destination entertainment venue or the craft distillery, unless
  105  such shipment or delivery is authorized for a craft distillery
  106  under s. 565.03.
  107         (f) Alcoholic beverages manufactured by another licensed
  108  manufacturer, including branded products manufactured at another
  109  craft distillery location sharing identical ownership, must be
  110  obtained through a licensed distributor.
  111         Section 2. Paragraphs (a) and (b) of subsection (1) and
  112  subsections (2) and (5) of section 565.03, Florida Statutes, are
  113  amended to read:
  114         565.03 License fees; manufacturers, distributors, brokers,
  115  sales agents, and importers of alcoholic beverages; vendor
  116  licenses and fees; distilleries and craft distilleries.—
  117         (1) As used in this section, the term:
  118         (a) “Branded product” means any distilled spirits product
  119  that:
  120         1.Is owned by a craft distillery;
  121         2.Contains distilled spirits that are manufactured by
  122  distilling, rectifying, or blending by the craft distillery on
  123  its licensed premises; and
  124         3.Has manufactured on site, which requires a federal
  125  certificate and label approval by the Federal Government Alcohol
  126  Administration Act or federal regulations.
  127         (b) “Craft distillery” means a licensed distillery in this
  128  state which distills, rectifies, or blends 250,000 that produces
  129  75,000 or fewer gallons or less of distilled spirits per
  130  calendar year of distilled spirits on its premises and has
  131  notified the division in writing of its decision to qualify as a
  132  craft distillery.
  133         (2)(a) A distillery may not operate as a craft distillery
  134  until the distillery has provided to the division written
  135  notification that it meets the criteria specified in paragraph
  136  (1)(b). Upon the division’s receipt of the notification and its
  137  verification that the distillery meets all such criteria, the
  138  division shall add the designation of craft distiller on the
  139  distillery’s license.
  140         (b)A person may not share common ownership in more than 10
  141  craft distilleries, provided that no more than:
  142         1.Four of the distilleries each distill, rectify, or blend
  143  250,000 gallons or less of distilled spirits per calendar year;
  144  and
  145         2.Six of the distilleries each distill, rectify, or blend
  146  50,000 gallons or less of distilled spirits per calendar year.
  148  As used in this paragraph, the term “common ownership” means
  149  having a direct or indirect financial interest in two or more
  150  distilleries by the same person.
  151         (c)Effective July 1, 2026, a minimum of 60 percent of a
  152  craft distillery’s total finished branded products must be
  153  distilled in this state and contain one or more Florida
  154  agricultural products.
  155         (d) A distillery or a craft distillery authorized to do
  156  business under the Beverage Law shall pay an annual state
  157  license tax for each plant or branch operating in the state, as
  158  follows:
  159         1. A distillery engaged in the business of manufacturing
  160  distilled spirits: $4,000.
  161         2. A craft distillery engaged in the business of
  162  manufacturing distilled spirits: $1,000.
  163         3. A person engaged in the business of rectifying and
  164  blending spirituous liquors and nothing else: $4,000.
  165         (e)(b)A licensed distillery or licensed craft distillery
  166  may Persons licensed under this section who are in the business
  167  of distilling spirituous liquors may also engage in the business
  168  of rectifying or and blending spirituous liquors without the
  169  payment of an additional license tax.
  170         (f)(c) A craft distillery licensed under this section may
  171  sell directly to consumers up to 75,000 gallons per calendar
  172  year of, at its souvenir gift shop, branded products that are
  173  manufactured by the craft distillery distilled on its premises.
  174  A craft distillery may sell branded products directly to
  175  consumers by the drink for consumption on the premises or by the
  176  package in factory-sealed containers for consumption off the
  177  premises in this state in factory-sealed containers that are
  178  filled at the distillery for off-premises consumption. Such
  179  sales are authorized only in the craft distillery’s souvenir
  180  gift shop or tasting room located on private property contiguous
  181  to the licensed distillery premises. Branded products sold to
  182  consumers must have been distilled, rectified, or blended on the
  183  distillery premises that is located contiguous to the craft
  184  distillery’s souvenir gift shop or tasting room. The souvenir
  185  gift shop or tasting room must be in this state and included on
  186  the sketch or diagram defining the licensed premises submitted
  187  with the distillery’s license application. All sketch or diagram
  188  revisions by the distillery shall require the division’s
  189  approval verifying that the locations of the souvenir gift shops
  190  and tasting rooms shop location operated by the licensed
  191  distillery are is owned or leased by the distillery and on
  192  property contiguous to the distillery’s production building in
  193  this state.
  194         1. Except as authorized under s. 565.17(2), a craft
  195  distillery may not sell any factory-sealed individual containers
  196  of spirits to consumers except in face-to-face sales
  197  transactions with such consumers at the craft distillery’s
  198  licensed premises. Such branded products must be in compliance
  199  with the container limits under s. 565.10 and be intended for
  200  personal consumption rather than for resale who are making a
  201  purchase of no more than six individual containers of each
  202  branded product.
  203         2. Each container sold in face-to-face transactions with
  204  consumers must comply with the container limits in s. 565.10,
  205  per calendar year for the consumer’s personal use and not for
  206  resale and who are present at the distillery’s licensed premises
  207  in this state.
  208         3. A craft distillery must report to the division within 5
  209  days after it exceeds reaches the production limits or is no
  210  longer operating under the requirements or limitations provided
  211  in paragraph (1)(b). Any retail sales of branded products by the
  212  drink or by the package to consumers at the craft distillery’s
  213  licensed premises are prohibited beginning the day after it
  214  exceeds reaches the production limitation.
  215         3.4. A craft distillery may not ship or arrange to ship any
  216  of its branded products or any other alcoholic beverages
  217  distilled spirits to consumers and may sell and deliver only to
  218  consumers within the state in a face-to-face transaction at the
  219  distillery property. However, a craft distillery distiller
  220  licensed under this section may ship, arrange to ship, or
  221  deliver such spirits to any manufacturers of distilled spirits,
  222  wholesale distributors of distilled spirits, state or federal
  223  bonded warehouses, or and exporters.
  224         4.5. Except as provided in subparagraph 5. subparagraph 6.,
  225  it is unlawful to transfer a craft distillery license for a
  226  distillery that produces 75,000 or fewer gallons per calendar
  227  year of distilled spirits on its premises or any ownership
  228  interest in such license to an individual or entity that has a
  229  direct or indirect ownership interest in any distillery that
  230  distills, rectifies, or blends 250,000 gallons or more per
  231  calendar year of distilled spirits under any license issued
  232  licensed in this state; in another state, territory, or country;
  233  or by the United States Government to distill manufacture,
  234  blend, or rectify distilled spirits for beverage purposes.
  235         5.6.Except as provided in paragraph (b), a craft
  236  distillery may shall not have its ownership affiliated with
  237  another distillery, unless such distillery is owned by an
  238  individual or entity that distills, rectifies, or blends 250,000
  239  gallons or less per calendar year of distilled spirits produces
  240  75,000 or fewer gallons per calendar year of distilled spirits
  241  on each of its premises in this state or in another state,
  242  territory, or country.
  243         6.A craft distillery may transfer up to 75,000 gallons per
  244  calendar year of its branded products that it distills,
  245  rectifies, or blends from its federal bonded space, nonbonded
  246  space at its licensed premises, or storage areas to its souvenir
  247  gift shop and tasting room.
  248         (5) A craft distillery making sales under paragraph (2)(f)
  249  paragraph (2)(c) is responsible for submitting any excise taxes
  250  due to the state on distilled spirits on beverages under the
  251  Beverage Law with in its monthly report to the division with any
  252  tax payments due to the state.
  253         Section 3. Section 565.17, Florida Statutes, is amended to
  254  read:
  255         565.17 Beverage tastings by distributors, craft
  256  distilleries, and vendors.—
  257         (1) A licensed distributor of spirituous beverages, a craft
  258  distillery as defined in s. 565.03, or any vendor, is authorized
  259  to conduct spirituous beverage tastings upon any licensed
  260  premises authorized to sell spirituous beverages by package or
  261  for consumption on premises without being in violation of s.
  262  561.42, provided that the conduct of the spirituous beverage
  263  tasting shall be limited to and directed toward the general
  264  public of the age of legal consumption.
  265         (2)Craft distilleries may conduct tastings and sales of
  266  distilled spirits produced by the craft distilleries at Florida
  267  fairs, trade shows, farmers markets, expositions, and festivals.
  268  The division shall issue permits to craft distilleries for such
  269  tastings and sales. A craft distillery must pay all entry fees
  270  and must have a distillery representative present during the
  271  event. The permit is limited to the duration and physical
  272  location of the event.
  273         Section 4. This act shall take effect July 1, 2021.