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Industries & Professional Activities Subcommittee, Wednesday, February 12, 2025

Summary

A meeting packet for the Industries & Professional Activities Subcommittee of the Florida House of Representatives Commerce Committee, for Wednesday, February 12, 2025, 1:00pm – 3:00pm in Webster Hall (212 Knott), with Mike Giallombardo as Chair. The agenda lists a panel discussion titled “Is the three-tier system working” on the manufacture, distribution and sale of alcoholic beverages in Florida. The packet includes a February 12th, 2025 presentation by the Division of Alcoholic Beverages and Tobacco (ABT) of the Florida Department of Business & Professional Regulation. The presentation covers the three tiers of Florida’s licensing system, manufacturers, distributors and retailers, and exceptions for wineries, breweries with brewpubs and taprooms, and craft distilleries.

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“Industries & Professional Activities Subcommittee, Wednesday, February 12, 2025.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-02-12-3288-industries-professional-activities-subcommittee-meetin-347239720d/, SHA-256 5b5cdc52d076fb6a49fd48aa19dc5ddca805ed265d4fcef0cc4d170e03384746.

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     Industries & Professional Activities
                Subcommittee


               Wednesday, February 12, 2025
                   1:00 PM – 3:00 PM
                 Webster Hall (212 Knott)




Daniel Perez                                  Mike Giallombardo
Speaker                                                   Chair
                    The Florida House of Representatives
                                          Commerce Committee
                        Industries & Professional Activities Subcommittee
Daniel Perez                                                                                   Mike Giallombardo
Speaker                                                                                                    Chair




                                           Meeting Agenda
                                      Wednesday, February 12, 2025
                                           1:00pm – 3:00pm
                                       Webster Hall (212 Knott)




  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Is the three-tier system working: Panel Discussion on the manufacture, distribution and
       sale of alcoholic beverages in Florida

 V.    Closing Remarks

VI.    Adjournment




                   214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
                                                   (850) 717-4870
Presentation
Florida’s Three-Tier System

Industries and Professional Activities Subcommittee
Division of Alcoholic Beverages and Tobacco (ABT)

February 12th, 2025




 dbpr                                                 GOVERNOR

                                               Ron Desantis
                                                                 SECRETARY

                                                                 Melanie s. Griffin
Division of Alcoholic Beverages and Tobacco (ABT)



           Bureau of                            Bureau of                       Bureau of
           Licensing                             Auditing                      Enforcement
  Processes license applications         Collects and audits the excise   2nd oldest law enforcement
  and renewals.​                         tax due to the state.​           agency in Florida celebrating
                                                                          its 92nd year of service in
  ​Verifies applicants' qualifications   Conducts audits to ensure        2025.
   for licensure under the               compliance with special
   Beverage Law and chapters             licensing requirements.          ​Conducts routine compliance
   210 and 569, Florida Statutes.                                          inspections, minimum age of
                                                                           purchase surveys, and
                                                                           administrative investigations.


                                                                                                            2
           Alcoholic Beverage Regulation in Florida
The 21st Amendment granted each state the right to establish laws governing the manufacture,
distribution, and sale of alcoholic beverages within its borders following the repeal of Prohibition in 1933.


                        Control                                                Non-Control

 A minority of states control the sale of distilled         In most states, including Florida, private
 spirits (and in some cases, wine, and beer)                businesses apply for licenses to manufacture,
 through government agencies at the                         distribute, and sell alcoholic beverages to
 distribution level.                                        consumers. Licensees must comply with state
                                                            laws regulating these transactions to maintain
                                                            their licensure.




                                                                                                                3
Alcoholic Beverage Regulation in Florida - Definitions
      Florida Beverage Law: Florida’s Beverage Law is contained in Chapters 561-
      565 and 567-568, Florida Statutes.

      Alcoholic Beverage: Section 561.01(4)(a), Florida Statutes, provides that an
      “alcoholic beverage” is a distilled spirit “and all beverages containing one-half of
      1 percent or more alcohol by volume.”

      Percentage of Alcohol by Volume: Section 561.01(4)(b), Florida Statutes,
      explains that the percentage of alcohol by volume is “determined by measuring
      the volume of the standard ethyl alcohol in the beverage and comparing it with
      the volume of the remainder of the ingredients as though said remainder
      ingredients were distilled water.”

      Intoxicating Beverage/Liquor: Section 561.01(5), Florida Statutes, restricts
      alcoholic beverages and liquors to those “containing more than 4.007 percent
      of alcohol by volume.”
                                                                                             4
                      The Three-Tier Licensing System
                                                      -
Florida’s regulations generally restrict licensees to participation in one tier of its three-tier licensing
system, thereby intending to prevent the control that manufacturers and distributors historically exerted
on independent vendors or retailers. The three tiers of Florida’s licensing system include:



                                                          .0
                                                    ¢~¢                  ®-=B
                          Co•o•o•oJ
                                                          0              ~
                             •••                       • ••                • ••
                       Manufacturers               Distributors          Retailers



                                                                                                              5
    FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION
Tier One:
Manufacturers

Manufacturers, sometimes also referred to as
“producers,” include:
        • Breweries
        • Wineries
        • Distilleries

Generally, manufacturers must both:
         • Produce, rectify, or blend alcoholic
            products; and
         • Sell those products to either:
             o Other manufacturers; or
             o Licensed distributors



                                                  6
Tier Two:
Distributors
-
Distributors, sometimes also referred to as                     T
“wholesalers,” generally:
                                                        i   r   I
                                                        I

    •   Purchase alcohol products from manufacturers;
        and
    •   Sell those products to:
        o Licensed retailers in Florida; or
         o Other distributors, where allowed.




                                                                    77
Tier Three:
Retailers

Retailers, more frequently referred to as “vendors,”
generally sell alcoholic beverages at “retail only”
locations.
Retailers are further classified into two types:

    •   On-Premises Retailers, which sell beer, wine, or
        spirits, or some combination thereof, for patrons
        to consume on their licensed premises. Examples
        include bars, restaurants and nightclubs.

    •   Off-Premises Retailers, which sell beer, wine, or
        spirits, or some combination thereof, in sealed
        containers for patrons to consume off-premises
        only. Examples include liquor stores and grocery
        stores.
                                                            8
    Exceptions to the Three-Tier System


     Wineries                  Breweries with                 Brewpubs               Craft Distilleries
     561.221(1), F.S.            Taprooms                      561.221(3), F.S.          565.03(2)(b), F.S.

A Florida winery can be            561.221(2), F.S.       A Florida brewpub may      A craft distillery may sell
licensed as a                 A Florida brewery           annually brew up to        its branded products
manufacturer and              currently licensed as a     10,000 kegs (15.5          directly to consumers by
distributor, and hold up to   distributor can act as a    gallons/keg) of beer for   the drink on premises or
three retailer licenses if    manufacturer and retailer   consumption exclusively    by the package in a
the retailer’s licensed       of their own product so     at the brewpub.            factory-sealed container
premises are situated on      long as the brewery's                                  for consumption off the
property contiguous to the    property is located on a                               premises.
manufacturing premises.       single complex.




                                                                                                                   9
Licensing Fees

TIER                   ANNUAL FEE       NUMBER OF
                       RANGE            LICENSEES
Beverage               $500 - 4,000     638
Manufacturer
Beverage Distributor   $1,000 - 4,000   1,177
Beverage Vendor        $25 - 2,500      53,792




                                                    10
Point of Contact
Derek Miller
Director of Legislative Affairs
Derek.Miller@myfloridalicense.com
PH: 850.717.1580




                                    11


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