Bill Text: FL S0822 | 2018 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Beverage Law
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Introduced - Dead) 2018-03-10 - Died on Calendar [S0822 Detail]
Download: Florida-2018-S0822-Comm_Sub.html
Bill Title: Beverage Law
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Introduced - Dead) 2018-03-10 - Died on Calendar [S0822 Detail]
Download: Florida-2018-S0822-Comm_Sub.html
Florida Senate - 2018 CS for CS for SB 822 By the Committees on Commerce and Tourism; and Regulated Industries; and Senator Hutson 577-02900-18 2018822c2 1 A bill to be entitled 2 An act relating to the Beverage Law; amending s. 3 561.42, F.S.; prohibiting certain entities and persons 4 from directly or indirectly assisting any vendor in 5 certain ways; prohibiting a licensed vendor from 6 accepting certain items and services; authorizing the 7 Division of Alcoholic Beverages and Tobacco to impose 8 administrative sanctions for a violation of certain 9 limitations established in the Beverage Law; 10 prohibiting a vendor from displaying certain signs in 11 the window or windows of his or her licensed premises; 12 authorizing certain entities and persons to give, 13 lend, furnish, or sell certain advertising material to 14 certain vendors; defining the term “decalcomania”; 15 providing exemptions relating to tied house evil for 16 certain sales and purchases of merchandise; providing 17 conditions for the exemptions; defining the term 18 “merchandise”; prohibiting a manufacturer or importer 19 of malt beverages from soliciting or receiving any 20 portion of certain payments from its distributors; 21 defining the term “negotiated at arm’s length”; 22 specifying that a brand-naming rights agreement does 23 not obligate or place responsibility upon a 24 distributor; providing civil penalties for violations 25 by manufacturers or importers of malt beverages or 26 vendors; providing applicability; requiring the 27 division to consider the comparative financial value 28 of a brand-naming rights agreement when determining 29 the amount of a civil penalty; providing an effective 30 date. 31 32 Be It Enacted by the Legislature of the State of Florida: 33 34 Section 1. Present subsection (13) of section 561.42, 35 Florida Statutes, is redesignated as subsection (14), 36 subsections (1), (8), (11), and (12) and paragraph (b) of 37 present subsection (14) of that section are amended, and a new 38 subsection (13) and subsection (16) are added to that section, 39 to read: 40 561.42 Tied house evil; financial aid and assistance to 41 vendor by manufacturer, distributor, importer, primary American 42 source of supply, brand owner or registrant, or any broker, 43 sales agent, or sales person thereof, prohibited; procedure for 44 enforcement; exception.— 45 (1) ANomanufacturer, distributor, importer, primary 46 American source of supply, or brand owner or registrant of any 47 of the beverages herein referred to, whether licensed or 48 operating in this state or out-of-state, nor any broker, sales 49 agent, or sales person thereof, may notshallhave any financial 50 interest, directly or indirectly, in the establishment or 51 business of any vendor licensed under the Beverage Law; nor may 52shallsuch manufacturer, distributor, importer, primary American 53 source of supply, brand owner or brand registrant, or any 54 broker, sales agent, or sales person thereof, directly or 55 indirectly assist any vendor by furnishing, supplying, selling, 56 renting, lending, buying for, or giving to any vendor any 57 vehicles, equipment, furniture, fixtures, signs, supplies, 58 credit, fees, slotting fees of any kind, advertising or 59 cooperative advertising, services,anygifts or loans of money 60 or property of any description, orby the giving of anyrebates 61 of any kind whatsoever. ANolicensed vendor may notshall62 accept, directly or indirectly, any vehicles, equipment, 63 furniture, fixtures, signs, supplies, credit, fees, slotting 64 fees of any kind, advertising or cooperative advertising, 65 services, giftsanygiftor loansloanof money or property of 66 any description, oranyrebates of any kind whatsoever from any 67 such manufacturer, distributor, importer, primary American 68 source of supply, brand owner or brand registrant, or any 69 broker, sales agent, or sales person thereof; provided, however, 70 that this does not apply to any bottles, barrels, or other 71 containers necessary for the legitimate transportation of such 72 beverages or to advertising materials and does not apply to the 73 extension of credit, for liquors sold, made strictly in 74 compliance withthe provisions ofthis section. A brand owner is 75 a person who is not a manufacturer, distributor, importer, 76 primary American source of supply, brand registrant, or broker, 77 sales agent, or sales person thereof, but who directly or 78 indirectly owns or controls any brand, brand name, or label of 79 alcoholic beverage. Nothing in this section shall prohibit the 80 ownership by vendors of any brand, brand name, or label of 81 alcoholic beverage. 82 (8) The division may adopt rules and require reports to 83 enforce, and may impose administrative sanctions for any 84 violation of, the limitations established under the Beverage Law 85 on vehicles, equipment, furniture, fixtures, signs, supplies, 86 credit, fees, advertising or cooperative advertising, services, 87 gifts or loans of money or propertyinthis section oncredits, 88 coupons, and other forms of assistance. 89 (11) A vendor may display in the interior of his or her 90 licensed premises, including the window or windows thereof, 91 neon, electric, or other signs, including window painting and 92 decalcomanias applied to the surface of the interior or exterior 93 of such windows; signs that require a power source;,and 94 posters, placards, and other advertising material advertising 95 the brand or brands of alcoholic beverages sold by him or her, 96 whether visible or not from the outside of the licensed 97 premises, but anovendor may notshalldisplay in the window or 98 windows of his or her licensed premises more than one neon, 99 electric, or similar sign that requires a power source,100 advertising the product of any one brand of alcoholic beverage 101manufacturer. 102 (12) Any manufacturer, distributor, importer, primary 103 American source of supply, or brand owner or registrant, or any 104 broker, sales agent, or sales person thereof, may give, lend, 105 furnish, or sell to a vendor who sells the products of such 106 manufacturer, distributor, importer, primary American source of 107 supply, or brand owner or registrant any of the following: neon, 108orelectric, or similar signs requiring a power source;signs, 109 window painting and decalcomanias applied to the surface of the 110 interior or exterior of windows; or,posters, placards, and 111 other advertising material herein authorized to be used or 112 displayed by the vendor in the interior of his or her licensed 113 premises. As used in subsection (11) and this subsection, the 114 term “decalcomania” means a picture, design, print, engraving, 115 or label made to be transferred onto a glass surface. 116 (13) Any manufacturer, distributor, importer, primary 117 American source of supply, or brand owner or registrant, or any 118 broker, sales agent, or sales person thereof, who regularly 119 sells merchandise to vendors, or any vendor who purchases 120 merchandise from such a manufacturer, distributor, importer, 121 primary American source of supply, or brand owner or registrant, 122 or any broker, sales agent, or sales person thereof, does not 123 violate subsection (1) if: 124 (a) Such sale or purchase is not less than the fair market 125 value of the merchandise; 126 (b) Such sale or purchase is not combined with any sale or 127 purchase of alcoholic beverages; 128 (c) Such sale or purchase is separately itemized from the 129 sale or purchase of alcoholic beverages; and 130 (d) Both the seller and purchaser maintain records of any 131 such sale or purchase, including the price and any conditions 132 associated with such sale or purchase of the merchandise. 133 134 For purposes of this subsection, the term “merchandise” means 135 commodities, supplies, fixtures, furniture, or equipment. The 136 term does not include alcoholic beverages or a motor vehicle or 137 trailer requiring registration under chapter 320. 138 (15)(14)The division shall adopt reasonable rules 139 governing promotional displays and advertising, which rules 140 shall not conflict with or be more stringent than the federal 141 regulations pertaining to such promotional displays and 142 advertising furnished to vendors by distributors, manufacturers, 143 importers, primary American sources of supply, or brand owners 144 or registrants, or any sales agent or sales person thereof; 145 however: 146 (b) Without limitation in total dollar value of such items 147 provided to a vendor, a manufacturer, distributor, importer, 148 brand owner, or brand registrant of malt beverage, or any sales 149 agent or sales person thereof, may rent, loan without charge for 150 an indefinite duration, or sell durable retailer advertising 151 specialties such as clocks, pool table lights, and the like, 152 which bear advertising matter. If sold, such items may not be 153 sold at a price less than the actual cost to the industry member 154 who initially purchased the items. 155 (16)(a) Notwithstanding any other provision of this 156 section, a manufacturer or importer of malt beverages and a 157 vendor may enter into a written agreement for brand-naming 158 rights and associated cooperative advertising, negotiated at 159 arm’s length for no more than fair market value if: 160 1. The vendor operates places of business where consumption 161 on the premises is permitted, the premises are located within a 162 theme park complex consisting of at least 25 contiguous acres 163 owned and controlled by the same business entity, and the 164 complex contains permanent exhibitions and a variety of 165 recreational activities and has a minimum of 1 million visitors 166 annually through a controlled entrance to and exit from the 167 theme park complex; 168 2. Such agreement does not involve, either in whole or in 169 part, the sale or distribution of malt beverages between the 170 manufacturer or importer, or the manufacturer’s or importer’s 171 distributor, and a vendor; 172 3. The vendor, as a result of such agreement, does not give 173 preferential treatment to the alcoholic beverage brand or brands 174 of the manufacturer or importer with whom the vendor has entered 175 into such agreement; 176 4. Such agreement does not limit, either directly or 177 indirectly, the sale of alcoholic beverages of another 178 manufacturer or importer, or distributor; and 179 5. Within 10 days after execution of such agreement, the 180 vendor files with the division a description of the agreement 181 which includes the location, dates, and the name of the 182 manufacturer or importer that entered into the agreement. 183 184 As used in this paragraph, the term “negotiated at arm’s length” 185 means the negotiation of a business transaction by independent 186 parties acting in each party’s own individual self-interest and 187 conducted as if the parties were strangers, so that no conflict 188 of interest may arise. 189 (b) A manufacturer or importer of malt beverages which is a 190 party to a brand-naming rights agreement may not, either 191 directly or indirectly, solicit or receive from any of its 192 distributors any portion of the payment due from the 193 manufacturer or importer of malt beverages to the vendor 194 pursuant to such agreement. Such agreement exists solely between 195 the manufacturer and the vendor and does not, directly or 196 indirectly, in any way obligate or place responsibility, 197 financial or otherwise, upon a distributor. 198 (c) Notwithstanding s. 561.29(3) and (4), a manufacturer of 199 malt beverages, an importer of malt beverages, or a vendor who 200 violates this subsection is subject to: 201 1. A civil penalty of at least $5,000, but not more than 202 $25,000, for a first violation. 203 2. A civil penalty of at least $25,000, but not more than 204 $50,000, for a second violation occurring within 36 months after 205 the date of the first violation. 206 3. A civil penalty of at least $50,000, but not more than 207 $100,000, for a third or subsequent violation occurring within 208 36 months after the date of the first violation. 209 4. At the discretion of the division, in lieu of or in 210 addition to a civil penalty imposed under subparagraph 3., 211 suspension or revocation of the alcoholic beverage license for a 212 fourth or subsequent violation occurring within 36 months after 213 the date of the first violation. 214 215 A violation occurring more than 36 months after a first 216 violation is deemed a first violation under this paragraph. When 217 imposing a civil penalty within the ranges provided in 218 subparagraphs 1.-3., the division shall consider the comparative 219 financial value of the brand-naming rights agreement as a factor 220 in assigning the amount of the civil penalty. 221 Section 2. This act shall take effect July 1, 2018.