Bill Text: FL S0046 | 2021 | Regular Session | Comm Sub
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-Comm_Sub.html
Bill Title: Craft Distilleries
Spectrum: Bipartisan Bill
Status: (Passed) 2021-07-06 - Chapter No. 2021-166 [S0046 Detail]
Download: Florida-2021-S0046-Comm_Sub.html
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. Hasmanufactured on site, which requiresa federal 125 certificate and label approval by the Federal GovernmentAlcohol126Administration Act or federal regulations. 127 (b) “Craft distillery” means a licensed distillery in this 128 state which distills, rectifies, or blends 250,000that produces12975,000or fewergallons or less of distilled spirits per 130 calendar yearof distilled spiritson its premisesand has131notified the division in writing of its decision to qualify as a132craft 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 mayPersons licensed under this section who are in the business167of distilling spirituous liquors may alsoengage in the business 168 of rectifying orandblending spirituous liquors without the 169 payment of an additional license tax. 170 (f)(c)A craft distillerylicensed under this sectionmay 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 distillerydistilledon 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 premisesin this state in factory-sealed containers that are178filled 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 licenseddistillerypremises. 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 roomsshop locationoperated by the licensed 191 distillery areisowned 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 resalewho are making a201purchase of no more than six individual containers of each202branded product. 203 2.Each container sold in face-to-face transactions with204consumers must comply with the container limits in s. 565.10,205per calendar year for the consumer’s personal use and not for206resale and who are present at the distillery’s licensed premises207in this state.2083.A craft distillery must report to the division within 5 209 days after it exceedsreachesthe 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 exceedsreachesthe 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 217distilled spiritsto 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 distillerydistiller220 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, orandexporters. 224 4.5.Except as provided in subparagraph 5.subparagraph 6., 225 it is unlawful to transfer a craft distillery licensefor a226distillery that produces 75,000 or fewer gallons per calendar227year of distilled spirits on its premisesor 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 232licensedin this state; in another state, territory, or country; 233 or by the United States Government to distillmanufacture, 234 blend, or rectify distilled spirits for beverage purposes. 235 5.6.Except as provided in paragraph (b), a craft 236 distillery mayshallnot 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 spiritsproduces24075,000 or fewer gallons per calendar year of distilled spirits241 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) 249paragraph (2)(c)is responsible for submitting any excise taxes 250 due to the state on distilled spiritson beveragesunder the 251 Beverage Law withinits monthly report to the divisionwith any252tax 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.