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PCS for HB 1165 (2020) — An act relating the Beverage Law

Summary

PCS for HB 1165 (2020), a bill to be entitled an act relating the Beverage Law, from the Commerce Committee. The title lists amendments to s. 561.221, F.S., authorizing the division to issue vendor's licenses to certain craft distilleries, and to s. 561.24 and s. 561.42, F.S. It also lists the creation of s. 562.65, F.S., on dogs in designated areas of licensed premises, and of s. 563.061, F.S., on consignment sales of malt beverages. Section 11 states that the act takes effect July 1, 2020.

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“PCS for HB 1165 (2020) — An act relating the Beverage Law.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-2994-commerce-committee-proposed-committee-bills-pcbs-fn-pcs-for-8867f275b4/, SHA-256 5281a40afe69e036642f909fe7348cb78dda5f1be19b4c31a4c41eeec9d3c339.

Full text

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           PCS for HB 1165                                                                                      2020




    1                                         A bill to be entitled
    2              An act relating the Beverage Law; amending s. 561.221,
    3              F.S.; authorizing the division to issue vendor's
    4              licenses to certain craft distilleries for the sale of
    5              alcoholic beverages on the distillery's licensed
    6              premises; requiring that the licensed vendor premises
    7              be included on certain sketches and diagrams under
    8              certain circumstances; requiring that all revisions to
    9              sketches or diagrams be approved by the division;
10                 requiring the division to issue permits to craft
11                 distilleries for conducting tastings and sales at
12                 certain events; requiring craft distilleries to pay
13                 entry fees for such events and have a representative
14                 of the distillery present at each event; requiring
15                 that certain alcoholic beverages be obtained through a
16                 licensed distributor, a licensed broker or sales
17                 agent, or a licensed importer; amending s. 561.24,
18                 F.S.; authorizing a craft distillery to be licensed as
19                 a distributor under certain circumstances; amending s.
20                 561.42, F.S.; prohibiting certain entities and persons
21                 from directly or indirectly assisting or providing
22                 specified items, monies, or services to a licensed
23                 vendor; prohibiting a licensed vendor from accepting
24                 specified items, monies, or services from certain
25                 entities or persons; authorizing the Division of

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        PCS for HB 1165                                                                                      2020




26              Alcoholic Beverages and Tobacco adopt rules and
27              require reports to enforce, and to impose
28              administrative sanctions for a violation of
29              limitations established under the Beverage Law on
30              specified items, monies, or services; prohibiting a
31              vendor from displaying certain signs in the window or
32              windows of his or her licensed premises; authorizing
33              certain entities and persons to furnish, supply, sell,
34              rent, lend, or give certain advertising material to
35              certain vendors; defining the term "decalcomania";
36              providing exemptions relating to tied house evil for
37              certain sales and purchases of merchandise; providing
38              conditions for the exemptions; defining the term
39              "merchandise"; prohibiting the sale of certain
40              advertising specialties at a price higher than the
41              actual cost to the industry member; authorizing a
42              manufacturer or importer of malt beverages and a
43              vendor to enter into a written agreement for certain
44              purposes; providing requirements for such agreement;
45              defining the term "negotiated at arm's length";
46              specifying that a brand-naming rights agreement does
47              not obligate or place responsibility upon a
48              distributor; providing civil penalties; prohibiting
49              the division from imposing certain civil penalties;
50              creating s. 562.65, F.S.; providing definitions;

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        PCS for HB 1165                                                                                      2020




51              authorizing certain licensed vendors of alcoholic
52              beverages to allow dogs in certain designated areas on
53              licensed premises; providing requirements; providing
54              for liability; authorizing the Division of Alcoholic
55              Beverages and Tobacco of the Department of Business
56              and Professional Regulation to adopt rules; creating
57              s. 563.061, F.S.; providing definitions; prohibiting
58              consignment sales of malt beverages between a
59              distributor and vendor; authorizing bona fide returns
60              of malt beverages under certain conditions; providing
61              applicability; authorizing distributors to accept
62              returns of certain products under specified
63              conditions; providing distributor requirements for
64              such returns; providing requirements for exchanges of
65              product; providing recordkeeping requirements;
66              specifying that authorized returns are not gifts,
67              loans, or other prohibited forms of financial aid or
68              assistance; providing penalties; providing for
69              rulemaking; repealing ss. 564.05 and 564.055, F.S.,
70              relating to limitations on the size of individual wine
71              containers and individual cider containers; amending
72              s. 564.09, F.S.; revising provisions that authorize a
73              restaurant to allow patrons to remove partially
74              consumed bottles of wine from the restaurant for off-
75              premises consumption; amending s. 565.03, F.S.;

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         PCS for HB 1165                                                                                      2020




76               redefining the terms "branded product" and "craft
77               distillery"; revising the requirements for the sale of
78               branded products by a licensed craft distillery to
79               consumers; deleting a provision that prohibits a craft
80               distillery from selling more than six individual
81               containers of a branded product to a consumer;
82               revising requirements relating to the shipping of
83               distilled spirits to consumers by a craft distillery;
84               deleting requirements relating to the transfer of
85               certain distillery licenses and ownership therein;
86               deleting a prohibition against certain affiliations;
87               authorizing a craft distillery to transfer specified
88               quantities of specified distilled spirits from certain
89               locations to its souvenir gift shop; requiring a craft
90               distillery making such transfers to submit certain
91               excise taxes with its monthly report to the Division
92               of Alcoholic Beverages and Tobacco of the Department
93               of Business and Professional Regulation; amending s.
94               565.17, F.S.; authorizing a craft distillery to
95               conduct spirituous beverage tastings on specified
96               licensed premises under certain circumstances;
97               providing an effective date.
98
99       Be It Enacted by the Legislature of the State of Florida:
100

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         PCS for HB 1165                                                                                      2020




101              Section 1.         Subsection (4) is added to section 561.221,
102      Florida Statutes, to read:
103              561.221       Licensing of manufacturers and distributors as
104      vendors and of vendors as manufacturers; conditions and
105      limitations.—
106              (4)(a)       Notwithstanding s. 561.22, s. 561.42, or any other
107      provision of the Beverage Law, the division may issue up to
108      three vendor's licenses to a craft distillery licensed under s.
109      565.03, even if such distillery is also licensed as a
110      distributor, for the sale of alcoholic beverages on a craft
111      distillery's licensed premises.
112              (b)       If a vendor's license is for the sale of alcoholic
113      beverages on a craft distillery's licensed premises, the
114      licensed vendor premises must be included on the sketch or
115      diagram defining the licensed premises submitted with the
116      distillery's license application. All sketch or diagram
117      revisions by the craft distillery must be approved by the
118      division and must verify that the vendor premises operated by
119      the licensed distillery is owned or leased by the craft
120      distillery and is located on the licensed distillery premises.
121              (c)       The division shall, upon request, issue permits to a
122      craft distillery to conduct tastings and sales of distilled
123      spirits produced by the distillery at fairs, trade shows,
124      expositions, and festivals in this state. The craft distillery
125      shall pay all entry fees for such events and shall have a

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         PCS for HB 1165                                                                                      2020




126      representative present during each event. A permit is limited to
127      the length of the event for which the permit is issued.
128              (d)       Distilled spirits and other alcoholic beverages
129      manufactured by another licensed manufacturer, including any
130      distilled spirits that are owned in whole or in part by the
131      craft distillery but are distilled by another manufacturer, must
132      be obtained through a licensed distributor, a licensed broker or
133      sales agent, or a licensed importer.
134              Section 2.         Subsection (9) is added to section 561.24,
135      Florida Statutes, to read:
136              561.24       Licensing manufacturers as distributors or
137      registered exporters prohibited; procedure for issuance and
138      renewal of distributors' licenses and exporters' registrations.—
139              (9)       This section does not apply to a craft distillery, as
140      defined in s. 565.03, which is open to the public for tours,
141      tastings, and sales at least 30 hours each week.
142              Section 3.         Subsections (13) and (14) of section 561.42,
143      Florida Statutes, are renumbered as subsections (14) and (15),
144      respectively, subsections (1), (8), (11), and (12) and paragraph
145      (b) of present subsection (14) are amended, and new subsections
146      (13) and (16) are added to that section, to read:
147              561.42       Tied house evil; financial aid and assistance to
148      vendor by manufacturer, distributor, importer, primary American
149      source of supply, brand owner or registrant, or any broker,
150      sales agent, or sales person thereof, prohibited; procedure for

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         PCS for HB 1165                                                                                      2020




151      enforcement; exception.—
152              (1)       A No manufacturer, distributor, importer, primary
153      American source of supply, or brand owner or registrant of any
154      of the beverages herein referred to, whether licensed or
155      operating in this state or out-of-state, or nor any broker,
156      sales agent, or sales person thereof, may not shall have any
157      financial interest, directly or indirectly, in the establishment
158      or business of any vendor licensed under the Beverage Law; nor
159      may shall such manufacturer, distributor, importer, primary
160      American source of supply, brand owner or brand registrant, or
161      any broker, sales agent, or sales person thereof, directly or
162      indirectly, assist any vendor by furnishing, supplying, selling,
163      renting, lending, buying for, or giving to any vendor any
164      vehicles, equipment, furniture, fixtures, signs, supplies,
165      credit, fees, slotting fees of any kind, advertising or
166      cooperative advertising, services, any gifts or loans of money
167      or property of any description, or by the giving of any rebates
168      of any kind whatsoever. A No licensed vendor may not shall
169      accept, directly or indirectly, any vehicles, equipment,
170      furniture, fixtures, signs, supplies, credit, fees, slotting
171      fees of any kind, advertising or cooperative advertising,
172      services, gifts any gift or loans loan of money or property of
173      any description, or any rebates of any kind whatsoever from any
174      such manufacturer, distributor, importer, primary American
175      source of supply, brand owner or brand registrant, or any

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         PCS for HB 1165                                                                                      2020




176      broker, sales agent, or sales person thereof; provided, however,
177      that this does not apply to any bottles, barrels, or other
178      containers necessary for the legitimate transportation of such
179      beverages or to advertising materials and does not apply to the
180      extension of credit, for liquors sold, made strictly in
181      compliance with the provisions of this section. A brand owner is
182      a person who is not a manufacturer, distributor, importer,
183      primary American source of supply, brand registrant, or broker,
184      sales agent, or sales person thereof, but who directly or
185      indirectly owns or controls any brand, brand name, or label of
186      alcoholic beverage. Nothing in This section does not shall
187      prohibit the ownership by vendors of any brand, brand name, or
188      label of alcoholic beverage.
189              (8)       The division may adopt rules and require reports to
190      enforce, and may impose administrative sanctions for any
191      violation of, the limitations established under the Beverage Law
192      on any vehicles, equipment, furniture, fixtures, signs,
193      supplies, credit, fees, slotting fees of any kind, advertising
194      or cooperative advertising, services, gifts or loans of money or
195      property of any description, rebates of any kind whatsoever in
196      this section on credits, coupons, and other forms of assistance.
197              (11)        A vendor may display in the interior of his or her
198      licensed premises, including the window or windows thereof,
199      neon, electric, or other signs that require a power source;,
200      including window painting and decalcomanias applied to the

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         PCS for HB 1165                                                                                      2020




201      surface of the interior or exterior of such windows;, and
202      posters, placards, and other advertising material advertising
203      the brand or brands of alcoholic beverages sold by him or her,
204      whether visible or not from the outside of the licensed
205      premises. However, a, but no vendor may not shall display in the
206      window or windows of his or her licensed premises more than one
207      neon, electric, or similar sign that requires a power source,
208      advertising the product of any one brand of alcoholic beverage
209      manufacturer.
210              (12)        Any manufacturer, distributor, importer, primary
211      American source of supply, or brand owner or registrant, or any
212      broker, sales agent, or sales person thereof, may give, lend,
213      furnish, or sell to a vendor who sells the products of such
214      manufacturer, distributor, importer, primary American source of
215      supply, or brand owner or registrant any of the following: neon,
216      or electric, or other signs requiring a power source; signs,
217      window painting and decalcomanias applied to the surface of the
218      interior or exterior of windows; and, posters, placards, and
219      other advertising material herein authorized to be used or
220      displayed by the vendor in the interior of his or her licensed
221      premises. As used in this section, the term "decalcomania" means
222      a picture, design, print, engraving, or label made to be
223      transferred onto a glass surface.
224              (13)        Any manufacturer, distributor, importer, primary
225      American source of supply, or brand owner or registrant, or any

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         PCS for HB 1165                                                                                      2020




226      broker, sales agent, or sales person thereof, who regularly
227      sells merchandise to vendors, or any vendor who purchases
228      merchandise from such manufacturer, distributor, importer,
229      primary American source of supply, or brand owner or registrant,
230      or any broker, sales agent, or sales person thereof, does not
231      violate subsection (1) if:
232              (a)       Such sale or purchase is equal to or greater than the
233      fair market value of the merchandise; not combined with any sale
234      or purchase of alcoholic beverages; separately itemized from the
235      sale or purchase of alcoholic beverages; and
236              (b)       Both the seller and purchaser maintain records of any
237      such sale or purchase, including the price and any conditions
238      associated with such sale or purchase of the merchandise.
239
240      For purposes of this subsection, the term "merchandise" means
241      commodities, supplies, fixtures, furniture, or equipment. The
242      term does not include alcoholic beverages or a motor vehicle or
243      trailer requiring registration under chapter 320.
244              (15)(14)          The division shall adopt reasonable rules
245      governing promotional displays and advertising. Such rules may
246      not conflict with or be more stringent than the federal
247      regulations pertaining to such promotional displays and
248      advertising furnished to vendors by distributors, manufacturers,
249      importers, primary American sources of supply, or brand owners
250      or registrants, or any broker, sales agent, or sales person

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         PCS for HB 1165                                                                                      2020




251      thereof; however:
252              (b)       Without limitation in total dollar value of such items
253      provided to a vendor, a manufacturer, distributor, importer,
254      primary American source of supply, or brand owner, or brand
255      registrant of malt beverage, or any broker, sales agent, or
256      sales person thereof, may rent, loan without charge for an
257      indefinite duration, or sell durable retailer advertising
258      specialties such as clocks, pool table lights, and the like,
259      which bear advertising matter. If sold, such items may not be
260      sold at a price less than the actual cost to the industry member
261      who initially purchased the items.
262              (16)(a)       Notwithstanding other provisions of this section,
263      a manufacturer or importer of malt beverages and a vendor may
264      enter into a written agreement for brand-naming rights and
265      associated cooperative advertising, negotiated at arm's length,
266      for no more than fair market value if all of the following
267      conditions are met:
268              1.      The vendor operates places of business where
269      consumption on the premises is permitted and the premises:
270              a.      Are located within a theme park complex consisting of
271      at least 25 contiguous acres owned and controlled by the same
272      business entity;
273              b.      Contain permanent exhibitions and a variety of
274      recreational activities; and
275              c.      Has a minimum of 1 million visitors annually with a

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         PCS for HB 1165                                                                                      2020




276      controlled entrance to, and exit from, the enclosed area.
277              2.      Such agreement does not involve, either in whole or in
278      part, the sale or distribution of malt beverages between the
279      manufacturer or importer, or the manufacturer's or importer's
280      distributor, and a vendor.
281              3.      The vendor, as a result of such agreement, does not
282      give preferential treatment to the alcoholic beverage brand or
283      brands of the manufacturer or importer with whom the vendor has
284      entered into such agreement.
285              4.      Such agreement does not directly or indirectly limit
286      the sale of alcoholic beverages of another manufacturer or
287      importer, or distributor.
288              5.      Within 10 days after execution of such agreement, the
289      vendor files with the division a description of the agreement
290      which includes the location, dates, and the name of the
291      manufacturer or importer that entered into the agreement.
292
293      As used in this paragraph, the term "negotiated at arm's length"
294      means the negotiation of a business transaction by independent
295      parties acting in each party's own individual self-interest and
296      conducted as if the parties were strangers, so that no conflict
297      of interest may arise.
298              (b)       A manufacturer or importer of malt beverages who is a
299      party to a brand-naming rights agreement may not, directly or
300      indirectly, solicit or receive from any of its distributors any

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         PCS for HB 1165                                                                                      2020




301      portion of the payment due from the manufacturer or importer of
302      malt beverages to the vendor pursuant to such agreement. Such
303      agreement exists solely between the manufacturer and the vendor
304      and does not, directly or indirectly, in any way obligate or
305      place responsibility, financial or otherwise, upon a
306      distributor.
307              (c)       Notwithstanding s. 561.29(3) and (4), a manufacturer
308      of malt beverages, an importer of malt beverages, or a vendor
309      who violates this subsection is subject to:
310              1.      A civil penalty of not more than $25,000, for a first
311      violation.
312              2.      A civil penalty of not more than $100,000 for a second
313      violation occurring within 36 months after the date of the first
314      violation.
315              3.      At the discretion of the division, in lieu of or in
316      addition to the penalty imposed under subparagraph 2.,
317      suspension or revocation of the alcoholic beverage license for a
318      third or subsequent violation occurring within 36 months after
319      the date of the first violation.
320
321      A violation occurring more than 36 months after a first
322      violation is deemed a first violation under this paragraph. When
323      imposing a civil penalty within the ranges provided in
324      subparagraphs 1. and 2., the division may not impose a civil
325      penalty in an amount greater than the financial value of the

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         PCS for HB 1165                                                                                      2020




326      brand-naming rights agreement.
327              Section 4.         Section 562.65, Florida Statutes, is created to
328      read:
329              562.65       Licensed premises of vendors; dogs allowed in
330      designated areas.—
331              (1)       As used in this section, the term:
332              (a)       "Division" means the Division of Alcoholic Beverages
333      and Tobacco of the Department of Business and Professional
334      Regulation.
335              (b)       "Dog" means a dog that is domesticated and kept as a
336      household pet.
337              (c)       "Licensed premises" has the same meaning as provided
338      in s. 561.01(11).
339              (d)       "Vendor" means a person who is licensed under the
340      Beverage Law.
341              (2)       A vendor may allow dogs in designated areas, including
342      certain indoor areas, of the licensed premises under the
343      following conditions:
344              (a)       No more than 10 percent of the gross revenue of the
345      vendor's business may be from the sale of food consumed on the
346      licensed premises. Ice may not be considered food.
347              (b)       Dogs must be kept on a leash and under control at all
348      times.
349              (c)       Dogs may not be permitted on tables, bar tops, or
350      other furnishings.

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         PCS for HB 1165                                                                                      2020




351              (d)       Dogs may not be permitted in any area of the licensed
352      premises in which food is stored or prepared.
353              (e)       Dog waste must be cleaned immediately and the area
354      must be sanitized.
355              (3)       An individual may be held liable for failure to comply
356      with the conditions under paragraphs (2)(b)-(e) if such failure
357      causes injury or damage.
358              (4)       The division may adopt rules to administer this
359      section.
360              Section 5.         Section 563.061, Florida Statutes, is created
361      to read:
362              563.061       Return of malt beverage products.—
363              (1)       DEFINITIONS.—As used in this section, the term:
364              (a)       "Damaged product" means a malt beverage product
365      delivered to a vendor exhibiting product deterioration,
366      defective seals, leaking, damaged labels, or missing or
367      mutilated tamper-evident closures.
368              (b)       "Keg" means a reusable container used to store and
369      dispense a malt beverage product in draft form on tap.
370              (c)       "Manufacturer's code date" means a coded best-by date,
371      expiration date, or other designated date or dating system
372      established by a manufacturer to signify freshness that is
373      printed on the malt beverage container or, in the case of a keg,
374      marked on a cap, collar, tag, or label affixed directly to the
375      keg.

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         PCS for HB 1165                                                                                      2020




376              (d)       "Out-of-code product" means a malt beverage product
377      that has exceeded the manufacturer's code date and, according to
378      the manufacturer's policies, must be removed and replaced with
379      fresh product for purchase in the retail market.
380              (e)       "Undamaged product" means a malt beverage product that
381      is not damaged or out of code.
382              (2)       CONSIGNMENT SALES PROHIBITED; AUTHORIZED RETURNS.—A
383      distributor may not sell, offer for sale, or contract to sell
384      malt beverages on consignment or any basis other than a bona
385      fide sale. A vendor may not purchase, offer to purchase, or
386      contract to purchase malt beverages on consignment or any basis
387      other than a bona fide sale. Once a distributor sells malt
388      beverages to a vendor, only bona fide returns are permitted for
389      the ordinary and usual commercial reasons authorized in this
390      section. This section does not permit return of product because
391      it is overstocked or slow-moving or because it has limited or
392      seasonal demand, including, but not limited to, product packaged
393      in holiday decanters or distinctive bottles.
394              (3)       RETURNS OF UNDAMAGED PRODUCT.—
395              (a)       Except as provided in paragraph (b), undamaged product
396      may be returned for exchange of product or credit.
397              (b)       A distributor may only accept a return of undamaged
398      product if the return is requested within 7 days after the
399      delivery date. However, a distributor may accept a return of



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         PCS for HB 1165                                                                                      2020




400      undamaged product after such time in the following
401      circumstances:
402              1.      If a vendor or its employees or agents are no longer
403      permitted, due to a change in regulation or administrative
404      procedure, to sell a particular brand or size product, such
405      product may be returned for credit or refund.
406              2.      If a vendor terminates operations, the vendor's
407      inventory of product at the time of termination may be returned
408      for credit or refund. This subparagraph does not apply during a
409      vendor's temporary seasonal shutdown.
410              3.      Except as provided in subparagraph 6., a product that
411      has not yet exceeded the manufacturer's code date may be
412      returned for purposes of ensuring quality control or freshness;
413      however, such product may only be returned for exchange of
414      product.
415              4.      If a manufacturer has issued a product recall that
416      affects multiple vendors that are not affiliated through having
417      common ownership, being members of the same pool buying group,
418      or being members of the same advertising cooperative, the
419      recalled product may be returned for exchange of product or
420      credit. If return of such product is requested more than 7 days
421      after the delivery date, the distributor must keep documentation
422      of the recall with the transaction record maintained pursuant to
423      subsection (8).



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         PCS for HB 1165                                                                                      2020




424              5.      If production or importation of a product is
425      discontinued, a vendor's inventory of the discontinued product
426      may be returned for credit or refund.
427              6.      If a vendor is only open for a portion of the year and
428      has product remaining at closure which, with respect to quality
429      control or freshness, would become unsuitable for sale during
430      the off-season according to the manufacturer's code date, such
431      product may be returned for credit or refund.
432
433      If undamaged product is returned under this paragraph, the
434      distributor must keep documentation of a qualifying exception in
435      subparagraphs 1.-6. with the transaction record maintained
436      pursuant to subsection (8).
437              (4)       RETURNS OF DAMAGED PRODUCT.—
438              (a)       Damaged product may only be returned for exchange of
439      product or credit. A distributor must verify damaged product
440      before accepting its return.
441              (b)       Product damaged by a vendor, its employees or agents,
442      or its customers may not be returned and shall be the vendor's
443      liability.
444              (c)       A distributor may only accept return of damaged
445      product if requested within 7 days after the delivery date.
446              (5)       RETURNS OF OUT-OF-CODE PRODUCT.—




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         PCS for HB 1165                                                                                      2020




447              (a)       Out-of-code product may only be returned for exchange
448      of product. A distributor must verify out-of-code product before
449      accepting its return.
450              (b)       A distributor may accept return of out-of-code product
451      any time after the manufacturer's code date only in the
452      following circumstances:
453              1.      The manufacturer has written policies and procedures
454      that specify the date that out-of-code product should be
455      removed.
456              2.      Such policies and procedures are readily available,
457      verifiable, and consistently applied by the manufacturer.
458              3.      The manufacturer's code date is printed on the product
459      container or, in the case of a keg, marked on a cap, collar,
460      tag, or label affixed directly to the keg.
461              4.      Out-of-code product removed by the distributor does not
462      reenter the retail market.
463              (6)       EXCHANGES OF PRODUCT.—An exchange of product
464      authorized under this section must be in exact quantities with a
465      product of near or equal value, made by the same manufacturer,
466      and in the same size container or keg unless a credit is issued
467      at the time of the return.
468              (7)       DISTRIBUTOR REQUIREMENTS FOR RETURNS.—This section
469      does not require a distributor to accept returns authorized
470      under this section; however, if a distributor accepts return of
471      product, the distributor must:

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         PCS for HB 1165                                                                                      2020




472              (a)       Provide the exchange of product, credit, or refund to
473      the vendor, as provided in subsections (3)-(5), at the same time
474      the distributor picks up the product being returned.
475              (b)       For damaged or undamaged product, pick up the product
476      being returned within 14 days after receipt of the vendor's
477      request.
478              (8)       TRANSACTION RECORDS.—A distributor must keep and
479      maintain for 3 years a transaction record of each return
480      identifying the vendor's business name, address, and license
481      number; product returned for exchange of product, credit, or
482      refund; and any other documentation required by this section.
483      The distributor must provide a copy of the transaction record to
484      the vendor in a format accessible and readable by the vendor.
485      Such transaction records must be maintained on the distributor's
486      licensed premises, or may be kept at another location in this
487      state if the distributor notifies the division in writing before
488      keeping records in another location, and must be made available
489      to the division upon request for inspection in a format
490      accessible and readable by the division. The distributor must
491      notify the division in writing of any change in recordkeeping
492      location.
493              (9)       RETURNS NOT TIED HOUSE EVIL.—Bona fide returns
494      authorized under this section for exchange of product, credit,
495      or refund are not considered gifts, loans, or other forms of
496      financial aid or assistance prohibited by s. 561.42.

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         PCS for HB 1165                                                                                      2020




497              (10)        CIVIL PENALTY.—In accordance with s. 561.29, the
498      division may impose a civil penalty against a distributor or
499      vendor for any violation of this section, or any rule adopted
500      under this section, not to exceed $1,000 per violation.
501              (11)        RULEMAKING AUTHORITY.—The division may adopt rules to
502      administer and enforce this section.
503              Section 6.         Section 564.05, Florida Statutes, is repealed.
504              Section 7.         Section 564.055, Florida Statutes, is repealed.
505              Section 8.         Section 564.09, Florida Statutes, is amended to
506      read:
507              564.09       Restaurants; off-premises consumption of wine.—
508      Notwithstanding any other provision of law, a restaurant
509      licensed to sell wine on the premises may permit a patron to
510      remove one unsealed bottle of wine for consumption off the
511      premises if the patron has purchased a full course meal
512      consisting of a salad or vegetable, entree, a beverage, and
513      bread and consumed a portion of the bottle of wine with such
514      meal on the restaurant premises. A partially consumed bottle of
515      wine that is to be removed from the premises must be securely
516      resealed by the licensee or its employees before removal from
517      the premises. The partially consumed bottle of wine shall be
518      placed in a bag or other container that is secured in such a
519      manner that it is visibly apparent if the container has been
520      subsequently opened or tampered with, and a dated receipt for
521      the bottle of wine and full course meal shall be provided by the

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         PCS for HB 1165                                                                                      2020




522      licensee and attached to the container. If transported in a
523      motor vehicle, the container with the resealed bottle of wine
524      must be placed in a locked glove compartment, a locked trunk, or
525      the area behind the last upright seat of a motor vehicle that is
526      not equipped with a trunk.
527              Section 9.         Paragraphs (a) and (b) of subsection (1),
528      paragraphs (b) and (c) of subsection (2), and subsection (5) of
529      section 565.03, Florida Statutes, are amended to read:
530              565.03       License fees; manufacturers, distributors, brokers,
531      sales agents, and importers of alcoholic beverages; vendor
532      licenses and fees; distilleries and craft distilleries.—
533              (1)       As used in this section, the term:
534              (a)       "Branded product" means any distilled spirits product
535      manufactured on site, or manufactured on site and blended on
536      site with other distilled spirits, which requires a federal
537      certificate and label approval by the Federal Alcohol
538      Administration Act or federal regulations.
539              (b)       "Craft distillery" means a licensed distillery that
540      produces 250,000 75,000 or fewer gallons per calendar year of
541      distilled spirits on its premises and is designated as a craft
542      distillery by has notified the division upon notification in
543      writing of its decision to qualify as a craft distillery.
544              (2)
545              (b)       A licensed distillery or craft distillery may Persons
546      licensed under this section who are in the business of

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         PCS for HB 1165                                                                                      2020




547      distilling spirituous liquors may also engage in the business of
548      rectifying and blending spirituous liquors without the payment
549      of an additional license tax.
550              (c)       A craft distillery licensed under this section which
551      is not licensed as a vendor under s. 561.221 may sell to
552      consumers under its craft distillery license, at its souvenir
553      gift shop, up to 75,000 gallons per calendar year of branded
554      products distilled on its premises in this state in factory-
555      sealed containers that are filled at the distillery for off-
556      premises consumption by consumers. Such sales are authorized
557      only on private property owned or leased by the craft distillery
558      which is contiguous to the craft distillery's licensed
559      distillery premises approved by the division in this state and
560      included on the sketch or diagram defining the licensed premises
561      submitted with the distillery's license application. All sketch
562      or diagram revisions by the distillery shall require the
563      division's approval verifying that the souvenir gift shop
564      location operated by the licensed distillery is owned or leased
565      by the distillery and on property contiguous to the distillery's
566      production building in this state.
567              1.      A craft distillery may not sell under its craft
568      distillery license any factory-sealed individual containers of
569      spirits to consumers in this state except in face-to-face sales
570      transactions with such consumers at the craft distillery's
571      licensed premises. Such containers must be in compliance with

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         PCS for HB 1165                                                                                      2020




572      the container limits in s. 565.10 who are making a purchase of
573      no more than six individual containers of each branded product.
574              2.      Each container sold in face-to-face transactions with
575      consumers must comply with the container limits in s. 565.10,
576      per calendar year for the consumer's personal use and not for
577      resale and who are present at the distillery's licensed premises
578      in this state.
579              2.3.        A craft distillery must report to the division within
580      5 days after it reaches the production limitations provided in
581      paragraph (1)(b). Any retail sales to consumers under its craft
582      distillery license at the craft distillery's licensed premises
583      are prohibited beginning the day after it reaches the production
584      limitation.
585              3.4.        A craft distillery that has not been issued a
586      vendor's license under s. 561.221 may not ship or arrange to
587      ship any of its distilled spirits to consumers in this state and
588      may sell and deliver only to consumers within the state in a
589      face-to-face transaction at the distillery property. However, a
590      craft distillery distiller licensed under this section may ship,
591      arrange to ship, or deliver such spirits to manufacturers of
592      distilled spirits, wholesale distributors of distilled spirits,
593      state or federal bonded warehouses, and exporters, or consumers
594      located outside of this state; however, all such shipments must
595      comply with the laws where such products are scheduled to be
596      delivered for personal use.

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         PCS for HB 1165                                                                                      2020




597              4.      A craft distillery may transfer up to 75,000 gallons
598      per calendar year of distilled spirits that it manufactures from
599      its federal bonded space, nonbonded space at its licensed
600      premises, or storage areas to its souvenir gift shop.
601              5.      Except as provided in subparagraph 6., it is unlawful
602      to transfer a distillery license for a distillery that produces
603      75,000 or fewer gallons per calendar year of distilled spirits
604      on its premises or any ownership interest in such license to an
605      individual or entity that has a direct or indirect ownership
606      interest in any distillery licensed in this state; another
607      state, territory, or country; or by the United States government
608      to manufacture, blend, or rectify distilled spirits for beverage
609      purposes.
610              6.      A craft distillery shall not have its ownership
611      affiliated with another distillery, unless such distillery
612      produces 75,000 or fewer gallons per calendar year of distilled
613      spirits on each of its premises in this state or in another
614      state, territory, or country.
615              (5)       A craft distillery may transfer distilled spirits to
616      any of its retail areas pursuant to paragraph (2)(c) or s.
617      561.221 and making sales under paragraph (2)(c) is responsible
618      for submitting any excise taxes due to the state on distilled
619      spirits on beverages under the Beverage Law with in its monthly
620      report to the division with any tax payments due to the state.
621              Section 10.           Section 565.17, Florida Statutes, is amended

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         PCS for HB 1165                                                                                      2020




622      to read:
623              565.17       Beverage tastings by distributors, craft
624      distilleries, and vendors.—A licensed distributor of spirituous
625      beverages, a craft distillery, as defined in s. 565.03, or any
626      vendor, is authorized to conduct spirituous beverage tastings
627      upon any licensed premises authorized to sell spirituous
628      beverages by package or for consumption on premises without
629      being in violation of s. 561.42, provided that the conduct of
630      the spirituous beverage tasting shall be limited to and directed
631      toward the general public of the age of legal consumption.
632              Section 11.           This act shall take effect July 1, 2020.




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