Bill Text: FL S0046 | 2021 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Craft Distilleries
Spectrum: Bipartisan Bill
Status: (Passed) 2021-07-06 - Chapter No. 2021-166 [S0046 Detail]
Download: Florida-2021-S0046-Introduced.html
Bill Title: Craft Distilleries
Spectrum: Bipartisan Bill
Status: (Passed) 2021-07-06 - Chapter No. 2021-166 [S0046 Detail]
Download: Florida-2021-S0046-Introduced.html
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. 45 46 Be It Enacted by the Legislature of the State of Florida: 47 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. Hasmanufactured on site, which requiresa federal 139 certificate and label approval by the Federal GovernmentAlcohol140Administration Act or federal regulations. 141 (b) “Craft distillery” means a licensed distillery in this 142 state which distills, rectifies, or blends 250,000that produces14375,000or fewergallons or less of distilled spirits per 144 calendar yearof distilled spiritson the distilleryits145 premisesand has notified the division in writing of its146decision 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. 161 162 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 mayPersons licensed under this section who are in the business180of distilling spirituous liquors may alsoengage in the business 181 of rectifying orandblending spirituous liquors without the 182 payment of an additional license tax. 183 (f)(c)A craft distillerylicensed under this sectionmay 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 distillerydistilledon 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 premisesin this state in factory-sealed containers that are191filled 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 licenseddistillerypremises. 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 bein this state andincluded 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 roomsshop locationoperated by the licensed 204 distillery areisowned 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 resalewho are making a214purchase of no more than six individual containers of each215branded product. 216 2.Each container sold in face-to-face transactions with217consumers must comply with the container limits in s. 565.10,218per calendar year for the consumer’s personal use and not for219resale and who are present at the distillery’s licensed premises220in this state.2213.A craft distillery must report to the division within 5 222 days after it exceedsreachesthe 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 exceedsreachesthe 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 blendingdistilled231spirits to consumers and may sell and deliver only to consumers232within the state in a face-to-face transaction at the distillery233property. However, a craft distillerydistillerlicensed 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, orandexporters. 238 4.5.Except as provided in subparagraph 5.subparagraph 6., 239 it is unlawful to transfer a craft distillery licensefor a240distillery that produces 75,000 or fewer gallons per calendar241year of distilled spirits on its premisesor 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 246licensedin this state; in another state, territory, or country; 247 or by the United States Government to distillmanufacture, 248 blend, or rectify distilled spirits for beverage purposes. 249 5.6.Except as provided in paragraph (b), a craft 250 distillery mayshallnot 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 spiritsproduces25475,000 or fewer gallons per calendar year of distilled spirits255on each of its premises in this state or in another state,256territory, 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) 263paragraph (2)(c)is responsible for submitting any excise taxes 264 due to the state on distilled spiritson beveragesunder the 265 Beverage Law withinits monthly report to the divisionwith any266tax 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.