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.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
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.
147
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.