Bill Text: FL S1304 | 2019 | Regular Session | Introduced
Bill Title: Manufacturers of Malt Beverages
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-05-03 - Died in Innovation, Industry, and Technology [S1304 Detail]
Download: Florida-2019-S1304-Introduced.html
Florida Senate - 2019 SB 1304 By Senator Mayfield 17-01939-19 20191304__ 1 A bill to be entitled 2 An act relating to manufacturers of malt beverages; 3 amending s. 561.221, F.S.; authorizing a manufacturer 4 to transfer to its licensed facility certain malt 5 beverages that are brewed by another manufacturer; 6 exempting certain manufacturers from requirements 7 relating to relations between beer distributors and 8 manufacturers; authorizing certain manufacturers to 9 sell, transport, and deliver certain malt beverages to 10 vendors; providing applicability; requiring certain 11 manufacturers to get written permission from a 12 distributor before making certain deliveries; revising 13 requirements for a licensed vendor to be licensed as a 14 manufacturer of malt beverages; defining the term 15 “barrel”; amending s. 563.022, F.S.; conforming a 16 provision to changes made by the act; authorizing a 17 manufacturer to terminate a contract with a 18 distributor under certain circumstances; amending s. 19 561.411, F.S.; revising requirements relating to 20 distributors’ warehouse inventory and sales; amending 21 s. 561.5101, F.S.; providing an exception to the come 22 to-rest requirement for certain deliveries made by 23 specified manufacturers; amending s. 561.57, F.S.; 24 deleting a prohibition on manufacturers with a 25 vendor’s license making certain deliveries; 26 authorizing certain manufacturers to use certain 27 vehicles when making specified deliveries; providing 28 an effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. Paragraphs (c) and (d) of subsection (2) and 33 paragraph (a) of subsection (3) of section 561.221, Florida 34 Statutes, are amended, and paragraphs (f) and (g) are added to 35 subsection (2) of that section, to read: 36 561.221 Licensing of manufacturers and distributors as 37 vendors and of vendors as manufacturers; conditions and 38 limitations.— 39 (2) 40 (c) Notwithstanding any other provision of the Beverage 41 Law, a manufacturer holding multiple manufacturing licenses may 42 transfer malt beverages to a licensed facility, as provided in 43 s. 563.022(14)(d), in an amount up to the yearly production 44 amount at the receiving facility. A manufacturer may also 45 transfer to its licensed facilityMalt beverages and other46alcoholic beverages manufactured by another licensed47manufacturer, includingany malt beverages that are owned in 48 whole or in part by the manufacturer but are brewed by another 49 manufacturer, must be obtained through a licensed distributor50that is not also a licensed manufacturer, a licensed broker or51sales agent, or a licensed importer. 52 (d) A manufacturer possessing a vendor’s license under this 53 subsection is not permitted to make deliveries under s. 54 561.57(1), except as provided in paragraph (g). 55 (f) A manufacturer licensed under this subsection that 56 produces less than 250,000 barrels per year is not subject to 57 the requirements of s. 563.022. 58 (g) Notwithstanding any other provision of the Beverage 59 Law, a manufacturer possessing a vendor’s license under this 60 subsection may sell, transport, and deliver to a vendor, from 61 the manufacturer’s licensed premises, malt beverages that have 62 been manufactured by the manufacturer. A manufacturer acting 63 pursuant to this paragraph shall comply with the requirements of 64 ss. 561.42 and 561.423, as applicable, to the same extent as if 65 the manufacturer were a distributor. 66 1. The authority provided in this paragraph is limited to 67 the sale, transport, and delivery of individual containers, 68 kegs, or other bulk packages but does not include the sale, 69 transport, and delivery of growlers, as described in s. 70 563.06(7). 71 2. Any delivery made pursuant to this paragraph is subject 72 to s. 561.57(2). 73 3. This paragraph does not apply to a manufacturer that has 74 a total production volume of more than 250,000 barrels of malt 75 beverages per year. 76 4. A manufacturer that has an existing distribution 77 agreement with a distributor pursuant to s. 563.022 must get 78 permission in writing from the distributor before making a 79 delivery of more than four kegs to any licensed vendor in the 80 distributor’s sales territory. 81 (3)(a) Notwithstanding other provisions of the Beverage 82 Law, any vendor licensed in this state may be licensed as a 83 manufacturer of malt beverages upon a finding by the division 84 that: 85 1. The vendor will be engaged in brewing malt beverages at 86 a single location and in an amount which will not exceed 5,000 87 barrels of malt beverages10,000 kegsper year. For purposes of 88 this sectionsubsection, the term “barrel”“keg”means 3115.589 gallons. 90 2. The malt beverages so brewed will be sold to consumers 91 for consumption on the vendor’s licensed premises or on other 92contiguouslicensed premises owned by the vendor. 93 Section 2. Paragraph (d) of subsection (14) of section 94 563.022, Florida Statutes, is amended, and subsection (22) is 95 added to that section, to read: 96 563.022 Relations between beer distributors and 97 manufacturers.— 98 (14) MANUFACTURER; PROHIBITED INTERESTS.— 99 (d) Nothing in the Beverage Law shall be construed to 100 prohibit a manufacturer from shipping products to or between its 101 breweries, or between its breweries and the licensed premises of 102 a vendor pursuant to s. 561.221(2)(g), without a distributor’s 103 license. 104 (22) TERMINATION BASED ON SALES.—Notwithstanding this 105 section, a manufacturer of malt beverages may terminate a 106 contract with a distributor upon no less than 120 days’ written 107 notice if the sales of products to the distributor by the 108 manufacturer do not exceed 10 percent of the distributor’s total 109 alcoholic beverage sales for the previous calendar year. 110 Section 3. Subsections (1) and (2) of section 561.411, 111 Florida Statutes, are amended to read: 112 561.411 Qualifications for distributors.—No distributor’s 113 license shall be issued to or held by any person or business 114 which does not meet and maintain the following qualifications 115 with respect to its warehouse inventory and sales. 116 (1) The distributor must maintain warehouse space which is 117 either owned or leased by the distributor, or dedicated to the 118 distributor’s use in a public warehouse, which is sufficient to 119 store at one time: 120 (a) An inventory of alcoholic beverages which is equal to 121 at least 510percent of the distributor’s annual case sales to 122 licensed vendors within this state or to licensed vendors within 123 the malt beverage distributor’s exclusive sales territory; or 124 (b) An inventory for which the cost of acquisition is not 125 less than $10,000$100,000. 126 (2) The distributor must maintain at all times, in a 127 warehouse which is either owned or leased by the distributor or 128 in public warehouse space dedicated to the distributor’s use, an 129 inventory of alcoholic beverages: 130 (a) Which consists of not less than 5 percent of the 131 distributor’s annual sales to licensed vendors within this state 132 or within the malt beverage distributor’s exclusive sales 133 territory; or 134 (b) For which the cost of acquisition is not less than 135 $10,000$100,000. The inventory required herein shall be owned 136 by the distributor, not held on consignment, and not acquired 137 pursuant to a prior agreement to sell it to a specific licensee 138 or licensees. 139 (c) For purposes of calculating inventory or percentage of 140 annual sales as required by paragraphs (a) and (b), the 141 calculation mustshallnot include private label inventory whose 142 label is owned by a vendor. 143 Section 4. Subsection (1) of section 561.5101, Florida 144 Statutes, is amended to read: 145 561.5101 Come-to-rest requirement; exceptions; penalties.— 146 (1) For purposes of inspection and tax-revenue control, all 147 malt beverages, except those manufactured and sold by the same 148 licensee, pursuant to s. 561.221(2) or (3), must come to rest at 149 the licensed premises of an alcoholic beverage wholesaler in 150 this state before being sold to a vendor by the wholesaler. The 151 prohibition contained in this subsection does not apply to the 152 shipment of malt beverages commonly known as private labels. The 153 prohibition contained in this subsection shall not prevent a 154 manufacturer from shipping malt beverages for storage at a 155 bonded warehouse facility, provided that such malt beverages are 156 distributed as provided in this subsection or to an out-of-state 157 entity. The prohibition contained in this subsection does not 158 apply to a malt beverage manufacturer that is licensed under s. 159 561.221(2) and that delivers malt beverages to a licensed vendor 160 pursuant to s. 561.221(2)(g). 161 Section 5. Subsections (1) and (2) of section 561.57, 162 Florida Statutes, are amended to read: 163 561.57 Deliveries by licensees.— 164 (1) Vendors shall be permitted to make deliveries away from 165 their places of business of sales actually made at the licensed 166 place of business; provided, telephone, electronic, or mail 167 orders received at a vendor’s licensed place of business shall 168 be construed as a sale actually made at the vendor’s licensed 169 place of business. Deliveries made by a vendor away from his or 170 her place of business may be made in vehicles that are owned or 171 leased by the vendor or in a third-party vehicle pursuant to a 172 contract with a third party with whom the vendor has contracted 173 to make deliveries, including, but not limited to, common 174 carriers. By acceptance of an alcoholic beverage license, the 175 vendor agrees that vehicles that are owned or leased by the 176 vendor shall always be subject to inspection and search without 177 a search warrant for the purpose of ascertaining that all 178 provisions of the alcoholic beverage laws are complied with by 179 authorized employees of the division and also by sheriffs, 180 deputy sheriffs, and police officers during business hours or 181 other times the vehicle is being used to transport or deliver 182 alcoholic beverages.A manufacturer possessing a vendor’s183license under s. 561.221(2) is not permitted to make deliveries184under this subsection.185 (2) Deliveries made by a manufacturer or distributor away 186 from his or her place of business may be made only in vehicles 187 that are owned or leased by the licensee. However, a 188 manufacturer authorized to make deliveries under s. 189 561.221(2)(g) may use a vehicle owned or leased by the 190 manufacturer or any person disclosed on a license application 191 filed by the manufacturer and approved by the division to make 192 such deliveries. By acceptance of an alcoholic beverage license 193 and the use of such vehicles, the licensee agrees that such 194 vehicle shall always be subject to be inspected and searched 195 without a search warrant, for the purpose of ascertaining that 196 all provisions of the alcoholic beverage laws are complied with, 197 by authorized employees of the division and also by sheriffs, 198 deputy sheriffs, and police officers during business hours or 199 other times the vehicle is being used to transport or deliver 200 alcoholic beverages. 201 Section 6. This act shall take effect July 1, 2019.