2021 Legislature                             CS for CS for SB 46
    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; requiring the keeping of
   37         records for alcoholic beverages received from
   38         specified persons; amending s. 565.17, F.S.;
   39         authorizing craft distilleries to conduct spirituous
   40         beverage tastings under certain circumstances;
   41         requiring the division to issue permits to craft
   42         distilleries to conduct tastings and sales at certain
   43         locations; specifying requirements for distilleries
   44         for such permits; providing an effective 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 “destination
   53  entertainment venue means a venue that:
   54         1.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         2.Is owned by any person licensed as a craft distillery
   58  located within the destination entertainment venue;
   59         3.Is adjacent to and served by multimodal transportation
   60  options, including, at a minimum, bicycle and pedestrian trails
   61  included on an adopted city or county trails map and mass
   62  transit routes established by a city, county, or regional
   63  transportation authority; and
   64         4.Is located within a contiguous area of at least 15
   65  acres, including associated parking and stormwater requirements
   66  as required by local law, regulation, or ordinance, and that
   67  contains:
   68         a.At least one indoor event venue with a minimum capacity
   69  of 150 people which is fully serviced by a connected onsite
   70  kitchen;
   71         b.At least one outdoor event venue with a minimum capacity
   72  of 1,000 people which has regularly occurring live entertainment
   73  on a stage that is at least 12 feet deep and 16 feet wide; and
   74         c.One or more licensed craft distilleries sharing
   75  identical ownership.
   76         (b)Notwithstanding any other provisions of the Beverage
   77  Law, upon the payment of the appropriate fees, a craft
   78  distillery licensed in this state may be licensed as a vendor
   79  only for consumption on the premises of alcoholic beverages
   80  manufactured by other manufacturers and acquired through a
   81  distributor. The issuance of a license under this paragraph is
   82  not subject to any quota or limitation, except that the craft
   83  distillery must be:
   84         1. Located on property within a destination entertainment
   85  venue; and
   86         2. In operation and open for tours during normal business
   87  hours at least 5 days a week.
   88         (c) The vendor license may be issued only for the premises
   89  included on the licensed premises sketch on file with the
   90  division under s. 565.03 for the craft distillery, including its
   91  souvenir gift shop or tasting room.
   92         (d)No more than three craft distilleries may be licensed
   93  as a vendor in a community redevelopment area under this
   94  subsection. Craft distilleries licensed as a vendor under this
   95  subsection must be located within the same destination
   96  entertainment venue and must share identical ownership, and each
   97  craft distillery must distill, blend, or rectify at least 50,000
   98  gallons of branded products per calendar year.
   99         (e) Except as otherwise provided in this paragraph, a craft
  100  distillery licensed as a vendor under this subsection shall be
  101  treated as a vendor and is subject to all provisions relating to
  102  such vendors licensed to sell alcoholic beverages for
  103  consumption on premises. A craft distillery licensed as a vendor
  104  may not make package sales for off-premises consumption or make
  105  any delivery or shipment of alcoholic beverages away from the
  106  destination entertainment venue or the craft distillery, unless
  107  such shipment or delivery is authorized for a craft distillery
  108  under s. 565.03.
  109         (f) Alcoholic beverages manufactured by another licensed
  110  manufacturer, including branded products manufactured at another
  111  craft distillery location sharing identical ownership, must be
  112  obtained through a licensed distributor.
  113         Section 2. Present subsections (6) and (7) of section
  114  565.03, Florida Statutes, are redesignated as subsections (7)
  115  and (8), respectively, a new subsection (6) is added to that
  116  section, and paragraphs (a) and (b) of subsection (1) and
  117  subsections (2) and (5) of that section are amended, to read:
  118         565.03 License fees; manufacturers, distributors, brokers,
  119  sales agents, and importers of alcoholic beverages; vendor
  120  licenses and fees; distilleries and craft distilleries.—
  121         (1) As used in this section, the term:
  122         (a) “Branded product” means any distilled spirits product
  123  that:
  124         1.Is owned by a craft distillery;
  125         2.Contains distilled spirits that are manufactured by
  126  distilling, rectifying, or blending by the craft distillery on
  127  its licensed premises; and
  128         3.Has manufactured on site, which requires a federal
  129  certificate and label approval by the Federal Government Alcohol
  130  Administration Act or federal regulations.
  131         (b) “Craft distillery” means a licensed distillery in this
  132  state which distills, rectifies, or blends 250,000 that produces
  133  75,000 or fewer gallons or less of distilled spirits per
  134  calendar year of distilled spirits on its premises and has
  135  notified the division in writing of its decision to qualify as a
  136  craft distillery.
  137         (2)(a) A distillery may not operate as a craft distillery
  138  until the distillery has provided to the division written
  139  notification that it meets the criteria specified in paragraph
  140  (1)(b). Upon the division’s receipt of the notification and its
  141  verification that the distillery meets all such criteria, the
  142  division shall add the designation of craft distiller on the
  143  distillery’s license.
  144         (b)A person may not share common ownership in more than 10
  145  craft distilleries, provided that no more than:
  146         1.Four of the distilleries each distill, rectify, or blend
  147  250,000 gallons or less of distilled spirits per calendar year;
  148  and
  149         2.Six of the distilleries each distill, rectify, or blend
  150  50,000 gallons or less of distilled spirits per calendar year.
  152  As used in this paragraph, the term “common ownership” means
  153  having a direct or indirect financial interest in two or more
  154  distilleries by the same person.
  155         (c)Effective July 1, 2026, a minimum of 60 percent of a
  156  craft distillery’s total finished branded products must be
  157  distilled in this state and contain one or more Florida
  158  agricultural products.
  159         (d) A distillery or a craft distillery authorized to do
  160  business under the Beverage Law shall pay an annual state
  161  license tax for each plant or branch operating in the state, as
  162  follows:
  163         1. A distillery engaged in the business of manufacturing
  164  distilled spirits: $4,000.
  165         2. A craft distillery engaged in the business of
  166  manufacturing distilled spirits: $1,000.
  167         3. A person engaged in the business of rectifying and
  168  blending spirituous liquors and nothing else: $4,000.
  169         (e)(b)A licensed distillery or licensed craft distillery
  170  may Persons licensed under this section who are in the business
  171  of distilling spirituous liquors may also engage in the business
  172  of rectifying or and blending spirituous liquors without the
  173  payment of an additional license tax.
  174         (f)(c) A craft distillery licensed under this section may
  175  sell directly to consumers up to 75,000 gallons per calendar
  176  year of, at its souvenir gift shop, branded products that are
  177  manufactured by the craft distillery distilled on its premises.
  178  A craft distillery may sell branded products directly to
  179  consumers by the drink for consumption on the premises or by the
  180  package in factory-sealed containers for consumption off the
  181  premises in this state in factory-sealed containers that are
  182  filled at the distillery for off-premises consumption. Such
  183  sales are authorized only in the craft distillery’s souvenir
  184  gift shop or tasting room located on private property contiguous
  185  to the licensed distillery premises. Branded products sold to
  186  consumers must have been distilled, rectified, or blended on the
  187  distillery premises that is located contiguous to the craft
  188  distillery’s souvenir gift shop or tasting room. The souvenir
  189  gift shop or tasting room must be in this state and included on
  190  the sketch or diagram defining the licensed premises submitted
  191  with the distillery’s license application. All sketch or diagram
  192  revisions by the distillery shall require the division’s
  193  approval verifying that the locations of the souvenir gift shops
  194  and tasting rooms shop location operated by the licensed
  195  distillery are is owned or leased by the distillery and on
  196  property contiguous to the distillery’s production building in
  197  this state.
  198         1. Except as authorized under s. 565.17(2), a craft
  199  distillery may not sell any factory-sealed individual containers
  200  of spirits to consumers except in face-to-face sales
  201  transactions with such consumers at the craft distillery’s
  202  licensed premises. Such branded products must be in compliance
  203  with the container limits under s. 565.10 and be intended for
  204  personal consumption rather than for resale who are making a
  205  purchase of no more than six individual containers of each
  206  branded product.
  207         2. Each container sold in face-to-face transactions with
  208  consumers must comply with the container limits in s. 565.10,
  209  per calendar year for the consumer’s personal use and not for
  210  resale and who are present at the distillery’s licensed premises
  211  in this state.
  212         3. A craft distillery must report to the division within 5
  213  days after it exceeds reaches the production limits or is no
  214  longer operating under the requirements or limitations provided
  215  in paragraph (1)(b). Any retail sales of branded products by the
  216  drink or by the package to consumers at the craft distillery’s
  217  licensed premises are prohibited beginning the day after it
  218  exceeds reaches the production limitation.
  219         3.4. A craft distillery may not ship or arrange to ship any
  220  of its branded products or any other alcoholic beverages
  221  distilled spirits to consumers and may sell and deliver only to
  222  consumers within the state in a face-to-face transaction at the
  223  distillery property. However, a craft distillery distiller
  224  licensed under this section may ship, arrange to ship, or
  225  deliver such spirits to any manufacturers of distilled spirits,
  226  wholesale distributors of distilled spirits, state or federal
  227  bonded warehouses, or and exporters.
  228         4.5. Except as provided in subparagraph 5. subparagraph 6.,
  229  it is unlawful to transfer a craft distillery license for a
  230  distillery that produces 75,000 or fewer gallons per calendar
  231  year of distilled spirits on its premises or any ownership
  232  interest in such license to an individual or entity that has a
  233  direct or indirect ownership interest in any distillery that
  234  distills, rectifies, or blends 250,000 gallons or more per
  235  calendar year of distilled spirits under any license issued
  236  licensed in this state; in another state, territory, or country;
  237  or by the United States Government to distill manufacture,
  238  blend, or rectify distilled spirits for beverage purposes.
  239         5.6.Except as provided in paragraph (b), a craft
  240  distillery may shall not have its ownership affiliated with
  241  another distillery, unless such distillery is owned by an
  242  individual or entity that distills, rectifies, or blends 250,000
  243  gallons or less per calendar year of distilled spirits produces
  244  75,000 or fewer gallons per calendar year of distilled spirits
  245  on each of its premises in this state or in another state,
  246  territory, or country.
  247         6.A craft distillery may transfer up to 75,000 gallons per
  248  calendar year of its branded products that it distills,
  249  rectifies, or blends from its federal bonded space, nonbonded
  250  space at its licensed premises, or storage areas to its souvenir
  251  gift shop and tasting room.
  252         (5) A craft distillery making sales under paragraph (2)(f)
  253  paragraph (2)(c) is responsible for submitting any excise taxes
  254  due to the state on distilled spirits on beverages under the
  255  Beverage Law with in its monthly report to the division with any
  256  tax payments due to the state.
  257         (6) A craft distillery shall keep complete and accurate
  258  records of all alcoholic beverages received from any point
  259  within or outside the state from another manufacturer, or from a
  260  broker or sales agent or importer, including any delivery
  261  invoice or other record of the common or contract carrier of
  262  freight making the delivery of such alcoholic beverages. The
  263  records shall be kept and maintained for a period of 3 years, as
  264  required by s. 561.55.
  265         Section 3. Section 565.17, Florida Statutes, is amended to
  266  read:
  267         565.17 Beverage tastings by distributors, craft
  268  distilleries, and vendors.—
  269         (1) A licensed distributor of spirituous beverages, a craft
  270  distillery as defined in s. 565.03, or any vendor, is authorized
  271  to conduct spirituous beverage tastings upon any licensed
  272  premises authorized to sell spirituous beverages by package or
  273  for consumption on premises without being in violation of s.
  274  561.42, provided that the conduct of the spirituous beverage
  275  tasting shall be limited to and directed toward the general
  276  public of the age of legal consumption.
  277         (2)Craft distilleries may conduct tastings and sales of
  278  distilled spirits produced by the craft distilleries at Florida
  279  fairs, trade shows, farmers markets, expositions, and festivals.
  280  The division shall issue permits to craft distilleries for such
  281  tastings and sales. A craft distillery must pay all entry fees
  282  and must have a distillery representative present during the
  283  event. The permit is limited to the duration and physical
  284  location of the event.
  285         Section 4. This act shall take effect July 1, 2021.