HB 1165 — Beverage Law

providing for rulemaking;

564.05 and 564.055, F.S., relating to limitations on the size of individual wine containers and Pageindividual 1cider ofcontainers; 11 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 1165 2020 individual cider containers;

amendingPage s.3 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 amending s.

authorizing a craft distillery to conduct spirituous beverage tastings on specified licensed premises under Pagecertain 2circumstances; of 11 CODING:

providing an effective date.

99 Be It Enacted by the Legislature of the State of Florida:

Page 4 of 29 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 certainSection circumstances;1.

providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1.

561.42, or any other provision of the Beverage Law, the division may issue up to three vendor'svendor licenses to a craft distillery licensed under s.

(c) The division shall, upon request, issue permits to a Pagecraft 3distillery to conduct tastings and sales of 11distilled CODING:spirits produced by the distillery at fairs, trade shows, expositions, and festivals in this state.

The craft distillery shall pay all entry fees for such events and shall have a Page 5 of 29 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 craftrepresentative distillerypresent toduring conducteach tastingsevent. and sales of distilled spirits produced by the distillery at fairs, trade shows, expositions, and festivals in this state.

The craft distillery shall pay all entry fees for such events and shall have a representative present during each event.

(d) Distilled spirits and other alcoholic beverages manufactured by another licensed manufacturer, including any distilled spirits that are owned in whole or in part by the craft distillery but are distilled by another manufacturer, must be obtained through a licensed distributor, a licensed broker or sales agent, or a licensed importer.

Subsections (13) and (14) of section 561.42, Florida Statutes, are renumbered as subsections (14) and (15), respectively, subsections (1), (8), (11), (12), and present subsection (14) are amended, and new subsections (13) and (16) are added to that section, to read:

561.42 Tied house evil;

financial aid and assistance to vendor by manufacturer, distributor, importer, primary American source of supply, brand owner or registrant, or any broker, sales agent, or sales person thereof, prohibited;

procedure for Page 6 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 enforcement;

exception.— (1) A No manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant of any of the beverages herein referred to, whether licensed or operating in this state or out-of-state, or nor any broker, sales agent, or sales person thereof, may not shall have any financial interest, directly or indirectly, in the establishment or business of any vendor licensed under the Beverage Law;

nor may shall such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any broker, sales agent, or sales person thereof, directly or indirectly, assist any vendor by furnishing, supplying, selling, renting, lending, buying for, or giving to any vendor any vehicles, equipment, furniture, fixtures, signs, supplies, credit, fees, slotting fees of any kind, advertising or cooperative advertising, services, any gifts or loans of money or property of any description, or by the giving of any rebates of any kind whatsoever.

A No licensed vendor may not shall accept, directly or indirectly, any vehicles, equipment, furniture, fixtures, signs, supplies, credit, fees, slotting fees of any kind, advertising or cooperative advertising, services, gifts any gift or loans loan of money or property of any description, or any rebates of any kind whatsoever from any such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any Page 7 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 broker, sales agent, or sales person thereof;

provided, however, that this does not apply to any bottles, barrels, or other containers necessary for the legitimate transportation of such beverages or to advertising materials and does not apply to the extension of credit, for liquors sold, made strictly in compliance with the provisions of this section.

A brand owner is a person who is not a manufacturer, distributor, importer, primary American source of supply, brand registrant, or broker, sales agent, or sales person thereof, but who directly or indirectly owns or controls any brand, brand name, or label of alcoholic beverage.

Nothing in This section does not shall prohibit the ownership by vendors of any brand, brand name, or label of alcoholic beverage.

(8) The division may adopt rules and require reports to enforce, and may impose administrative sanctions for any violation of, the limitations established under the Beverage Law on any vehicles, equipment, furniture, fixtures, signs, supplies, credit, fees, slotting fees of any kind, advertising or cooperative advertising, services, gifts or loans of money or property of any description, rebates of any kind whatsoever in this section on credits, coupons, and other forms of assistance.

(11) A vendor may display in the interior of his or her licensed premises, including the window or windows thereof, neon, electric, or other signs that require a power source;, including window painting and decalcomanias applied to the Page 8 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 surface of the interior or exterior of such windows;, and posters, placards, and other advertising material advertising the brand or brands of alcoholic beverages sold by him or her, whether visible or not from the outside of the licensed premises.

However, a, but no vendor may not shall display in the window or windows of his or her licensed premises more than one neon, electric, or similar sign that requires a power source, advertising the product of any one brand of alcoholic beverage manufacturer.

(12) Any manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant, or any broker, sales agent, or sales person thereof, may give, lend, furnish, or sell to a vendor who sells the products of such manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant any of the following:

neon, or electric, or other signs requiring a power source;

signs, window painting and decalcomanias applied to the surface of the interior or exterior of windows;

and, posters, placards, and other advertising material herein authorized to be used or displayed by the vendor in the interior of his or her licensed premises.

As used in this section, the term "decalcomania" means a picture, design, print, engraving, or label made to be transferred onto a glass surface.

(13) Any manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant, or any Page 9 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 broker, sales agent, or sales person thereof, who regularly sells merchandise to vendors, or any vendor who purchases merchandise from such manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant, or any broker, sales agent, or sales person thereof, does not violate subsection (1) if:

(a) Such sale or purchase is equal to or greater than the fair market value of the merchandise, not combined with any sale or purchase of alcoholic beverages separately itemized from the sale or purchase of alcoholic beverages, and (b) Both the seller and purchaser maintain records of any such sale or purchase, including the price and any conditions associated with such sale or purchase of the merchandise.

For purposes of this subsection, the term "merchandise" means commodities, supplies, fixtures, furniture, or equipment.

The term does not include alcoholic beverages or a motor vehicle or trailer requiring registration under chapter 320.

(15)(14) The division shall adopt reasonable rules governing promotional displays and advertising.

Such rules may not conflict with or be more stringent than the federal regulations pertaining to such promotional displays and advertising furnished to vendors by distributors, manufacturers, importers, primary American sources of supply, or brand owners or registrants, or any broker, sales agent, or sales person Page 10 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 thereof;

however:

(a) If a manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, provides a vendor with branded expendable retailer advertising specialties such as trays, coasters, mats, menu cards, napkins, cups, glassware, thermometers, and the like, such items may be sold only at a price not less than the actual cost to the industry member who initially purchased them, without limitation in total dollar value of such items sold to a vendor.

However, a distributor that receives glassware at no charge on a no-charge invoice from a malt beverage manufacturer or importer may give such glassware to a vendor licensed to sell malt beverages for on-premises consumption.

Each piece of glassware given to a vendor by a distributor must bear a permanent brand name intended to prominently advertise the brand.

A distributor may not give a vendor more than 10 cases of glassware per calendar year per licensed premises.

A vendor that receives a gift of glassware from a distributor may not sell the glassware or return it to a distributor for cash, credit, or replacement.

A manufacturer or importer who sells or gives glassware to a distributor, a distributor who sells or gives glassware to a vendor, and such vendor, must maintain records of such sale or gift of glassware.

1.

These records must be maintained for 3 years by the industry member.

The records may be in any format so long as Page 11 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 they are available and legible to division personnel upon request during normal business hours.

A copy of any record maintained or produced in compliance with this paragraph shall be provided to each industry member who receives such glassware.

The copy shall be in a format accessible and readable by the recipient and may not be provided in an electronic format that would require proprietary software unavailable to the recipient.

These records must show:

a.

The name and address of the recipient, the recipient's employee or agent receiving the glassware;

b.

The recipient's license number;

c.

The date furnished or given;

d.

The description and quantity of glassware furnished or given;

e.

The cost to the industry member determined by the original purchaser's invoice price;

f.

The charges to the recipient for the glassware, if any;

and g.

The name, license number, and address of the industry member providing the glassware.

2.

As used in this paragraph, the term:

a.

"Case" means a box containing up to 24 pieces of glassware.

b.

"Glassware" means a single-service glass container that can hold no more than 23 ounces of liquid volume.

Page 12 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (b) Without limitation in total dollar value of such items provided to a vendor, a manufacturer, distributor, importer, primary American source of supply, or brand owner, or brand registrant of malt beverage, or any broker, sales agent, or sales person thereof, may rent, loan without charge for an indefinite duration, or sell durable retailer advertising specialties such as clocks, pool table lights, and the like, which bear advertising matter.

If sold, such items may not be sold at a price less than the actual cost to the industry member who initially purchased the items.

(c) If a manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, provides a vendor with consumer advertising specialties such as ashtrays, T-shirts, bottle openers, shopping bags, and the like, such items may be sold only at a price not less than the actual cost to the industry member who initially purchased them, and may be sold without limitation in total value of such items sold to a vendor.

(d) A manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, may provide consumer advertising specialties described in paragraph (c) to consumers on any vendor's licensed premises.

(e) A manufacturer, distributor, importer, brand owner, or brand registrant of malt beverages, and any sales agent or sales Page 13 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 person thereof or contracted third-party, may not engage in cooperative advertising with a vendor and may not name a vendor in any advertising for a malt beverage tasting authorized under s.

563.09.

(f) A distributor of malt beverages may sell to a vendor draft equipment and tapping accessories at a price not less than the cost to the industry member who initially purchased them, except there is no required charge, and the distributor may exchange any parts that are not compatible with a competitor's system and are necessary to dispense the distributor's brands.

A distributor of malt beverages may furnish to a vendor at no charge replacement parts of nominal intrinsic value, including, but not limited to, washers, gaskets, tail pieces, hoses, hose connections, clamps, plungers, and tap markers.

(16)(a) Notwithstanding other provisions of this section, a manufacturer or importer of malt beverages and a vendor may enter into a written agreement for brand-naming rights and associated cooperative advertising, negotiated at arm's length, for no more than fair market value if all of the following conditions are met:

1.

The vendor operates places of business where consumption on the premises is permitted and the premises:

a.

Are located within a theme park complex consisting of at least 25 contiguous acres owned and controlled by the same business entity;

Page 14 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 b.

Contain permanent exhibitions and a variety of recreational activities;

and c.

Has a minimum of 1 million visitors annually with a controlled entrance to, and exit from, the enclosed area.

2.

Such agreement does not involve, either in whole or in part, the sale or distribution of malt beverages between the manufacturer or importer, or the manufacturer's or importer's distributor, and a vendor.

3.

The vendor, as a result of such agreement, does not give preferential treatment to the alcoholic beverage brand or brands of the manufacturer or importer with whom the vendor has entered into such agreement.

4.

Such agreement does not directly or indirectly limit the sale of alcoholic beverages of another manufacturer or importer, or distributor.

5.

Within 10 days after execution of such agreement, the vendor files with the division a description of the agreement which includes the location, dates, and the name of the manufacturer or importer that entered into the agreement.

As used in this paragraph, the term "negotiated at arm's length" means the negotiation of a business transaction by independent parties acting in each party's own individual self-interest and conducted as if the parties were strangers, so that no conflict of interest may arise.

Page 15 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (b) A manufacturer or importer of malt beverages who is a party to a brand-naming rights agreement may not, directly or indirectly, solicit or receive from any of its distributors any portion of the payment due from the manufacturer or importer of malt beverages to the vendor pursuant to such agreement.

Such agreement exists solely between the manufacturer and the vendor and does not, directly or indirectly, in any way obligate or place responsibility, financial or otherwise, upon a distributor.

(c) Notwithstanding s.

561.29(3) and (4), a manufacturer of malt beverages, an importer of malt beverages, or a vendor who violates this subsection is subject to:

1.

A civil penalty of not more than $25,000, for a first violation.

2.

A civil penalty of not more than $100,000 for a second violation occurring within 36 months after the date of the first violation.

3.

At the discretion of the division, in lieu of or in addition to the penalty imposed under subparagraph 2., suspension or revocation of the alcoholic beverage license for a third or subsequent violation occurring within 36 months after the date of the first violation.

A violation occurring more than 36 months after a first violation is deemed a first violation under this paragraph.

When Page 16 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 imposing a civil penalty within the ranges provided in subparagraphs 1.

and 2., the division may not impose a civil penalty in an amount greater than the financial value of the brand-naming rights agreement.

Section 4.

(c) "Licensed premises" has the same meaning as provided Pagein 4s. of 11 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 1165 2020 in s.

(b) Dogs must be kept on a leash and under control at all times.Page 17 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 times.

Section 4.

Section 564.05, Florida Statutes, is repealed.

Section 564.055,563.061, Florida Statutes, is repealed.created to read:

Section563.061 6.Return of malt beverage products.— (1) DEFINITIONS.—As used in this section, the term:

Section(a) 564.09,"Damaged Floridaproduct" Statutes,means isa amendedmalt beverage product delivered to Pagea 5vendor ofexhibiting 11product CODING:deterioration, defective seals, leaking, damaged labels, or missing or mutilated tamper-evident closures.

(b) "Keg" means a reusable container used to store and dispense a malt beverage product in draft form on tap.

(c) "Manufacturer's code date" means a coded best-by date, expiration date, or other designated date or dating system established by a manufacturer to signify freshness that is Page 18 of 29 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 read:printed on the malt beverage container or, in the case of a keg, marked on a cap, collar, tag, or label affixed directly to the keg.

(d) "Out-of-code product" means a malt beverage product that has exceeded the manufacturer's code date and, according to the manufacturer's policies, must be removed and replaced with fresh product for purchase in the retail market.

(e) "Undamaged product" means a malt beverage product that is not damaged or out of code.

(2) CONSIGNMENT SALES PROHIBITED;

AUTHORIZED RETURNS.—A distributor may not sell, offer for sale, or contract to sell malt beverages on consignment or any basis other than a bona fide sale.

A vendor may not purchase, offer to purchase, or contract to purchase malt beverages on consignment or any basis other than a bona fide sale.

Once a distributor sells malt beverages to a vendor, only bona fide returns are permitted for the ordinary and usual commercial reasons authorized in this section.

This section does not permit return of product because it is overstocked or slow-moving or because it has limited or seasonal demand, including, but not limited to, product packaged in holiday decanters or distinctive bottles.

(3) RETURNS OF UNDAMAGED PRODUCT.— (a) Except as provided in paragraph (b), undamaged product may be returned for exchange of product or credit.

Page 19 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (b) A distributor may only accept a return of undamaged product if the return is requested within 7 days after the delivery date.

However, a distributor may accept a return of undamaged product after such time in the following circumstances:

1.

If a vendor or its employees or agents are no longer permitted, due to a change in regulation or administrative procedure, to sell a particular brand or size product, such product may be returned for credit or refund.

2.

If a vendor terminates operations, the vendor's inventory of product at the time of termination may be returned for credit or refund.

This subparagraph does not apply during a vendor's temporary seasonal shutdown.

3.

Except as provided in subparagraph 6., a product that has not yet exceeded the manufacturer's code date may be returned for purposes of ensuring quality control or freshness;

however, such product may only be returned for exchange of product.

4.

If a manufacturer has issued a product recall that affects multiple vendors that are not affiliated through having common ownership, being members of the same pool buying group, or being members of the same advertising cooperative, the recalled product may be returned for exchange of product or credit.

If return of such product is requested more than 7 days after the delivery date, the distributor must keep documentation Page 20 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 of the recall with the transaction record maintained pursuant to subsection (8).

5.

If production or importation of a product is discontinued, a vendor's inventory of the discontinued product may be returned for credit or refund.

6.

If a vendor is only open for a portion of the year and has product remaining at closure which, with respect to quality control or freshness, would become unsuitable for sale during the off-season according to the manufacturer's code date, such product may be returned for credit or refund.

If undamaged product is returned under this paragraph, the distributor must keep documentation of a qualifying exception in subparagraphs 1.-6.

with the transaction record maintained pursuant to subsection (8).

(4) RETURNS OF DAMAGED PRODUCT.— (a) Damaged product may only be returned for exchange of product or credit.

A distributor must verify damaged product before accepting its return.

(b) Product damaged by a vendor, its employees or agents, or its customers may not be returned and shall be the vendor's liability.

(c) A distributor may only accept return of damaged product if requested within 7 days after the delivery date.

(5) RETURNS OF OUT-OF-CODE PRODUCT.— Page 21 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (a) Out-of-code product may only be returned for exchange of product.

A distributor must verify out-of-code product before accepting its return.

(b) A distributor may accept return of out-of-code product any time after the manufacturer's code date only in the following circumstances:

1.

The manufacturer has written policies and procedures that specify the date that out-of-code product should be removed.

2.

Such policies and procedures are readily available, verifiable, and consistently applied by the manufacturer.

3.

The manufacturer's code date is printed on the product container or, in the case of a keg, marked on a cap, collar, tag, or label affixed directly to the keg.

4.

Out-of-code product removed by the distributor does not reenter the retail market.

(6) EXCHANGES OF PRODUCT.—An exchange of product authorized under this section must be in exact quantities with a product of near or equal value, made by the same manufacturer, and in the same size container or keg unless a credit is issued at the time of the return.

(7) DISTRIBUTOR REQUIREMENTS FOR RETURNS.—This section does not require a distributor to accept returns authorized under this section;

however, if a distributor accepts return of product, the distributor must:

Page 22 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (a) Provide the exchange of product, credit, or refund to the vendor, as provided in subsections (3)-(5), at the same time the distributor picks up the product being returned.

(b) For damaged or undamaged product, pick up the product being returned within 14 days after receipt of the vendor's request.

(8) TRANSACTION RECORDS.—A distributor must keep and maintain for 3 years a transaction record of each return identifying the vendor's business name, address, and license number;

product returned for exchange of product, credit, or refund;

and any other documentation required by this section.

The distributor must provide a copy of the transaction record to the vendor in a format accessible and readable by the vendor.

Such transaction records must be maintained on the distributor's licensed premises, or may be kept at another location in this state if the distributor notifies the division in writing before keeping records in another location, and must be made available to the division upon request for inspection in a format accessible and readable by the division.

The distributor must notify the division in writing of any change in recordkeeping location.

(9) RETURNS NOT TIED HOUSE EVIL.—Bona fide returns authorized under this section for exchange of product, credit, or refund are not considered gifts, loans, or other forms of financial aid or assistance prohibited by s.

561.42.

Page 23 of 29 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 (10) CIVIL PENALTY.—In accordance with s.

561.29, the division may impose a civil penalty against a distributor or vendor for any violation of this section, or any rule adopted under this section, not to exceed $1,000 per violation.

(11) RULEMAKING AUTHORITY.—The division may adopt rules to administer and enforce this section.

Section 6.

Section 564.05, Florida Statutes, is repealed.

Section 7.

Section 564.055, Florida Statutes, is repealed.

Section 8.

Section 564.09, Florida Statutes, is amended to read:

The partially consumed bottle of wine shall be placed in a bag or other container that is secured in such a manner that it is visibly apparent if the container has been subsequently opened or tampered with, and a dated receipt for the bottle of wine and full course meal shall be provided by the licenseePage and24 attachedof to29 theCODING: container.

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 licensee and attached to the container.

Section 7.9.

manufacturers, distributors, brokers, Pagesales 6agents, and importers of 11alcoholic CODING:beverages;

Words stricken are deletions;

words underlined are additions.

hb1165-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 1165 2020 sales agents, and importers of alcoholic beverages;

(2) (b) A licensed distillery or craft distillery may Persons licensed under this section who are in the business of distillingPage spirituous25 liquors may also engage in the business of rectifying29 andCODING: blending spirituous liquors without the payment of an additional license tax.

(c) A craft distillery licensed under this section which is not licensed as a vendor under s.

561.221 may sell to consumers under its craft distillery license, at its souvenir gift shop, up to 75,000 gallons per calendar year of branded products distilled on its premises in this state in factory- sealed containers that are filled at the distillery for off- Page 7 of 11 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 premisesdistilling consumptionspirituous byliquors consumers.may also engage in the business of rectifying and blending spirituous liquors without the payment of an additional license tax.

(c) A craft distillery licensed under this section which is not licensed as a vendor under s.

561.221 may sell to consumers under its craft distillery license, at its souvenir gift shop, up to 75,000 gallons per calendar year of branded products distilled on its premises in this state in factory- sealed containers that are filled at the distillery for off- premises consumption by consumers.

Such containers must be in compliance with thePage container26 limitsof in29 s.CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 1165 2020 the container limits in s.

A craft distillery must report to the division within 5 days after it reaches the production limitations provided in Pageparagraph 8(1)(b). of 11 CODING:

Words stricken are deletions;

words underlined are additions.

hb1165-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 1165 2020 paragraph (1)(b).

4.Page 27 of 29 CODING:

A craft distillery may transfer up to 75,000 gallons per calendar year of distilled spirits that it manufactures from its federal bonded space, nonbonded space at its licensed premises, or storage areas to its souvenir gift shop.

5.

Except as provided in subparagraph 6., it is unlawful to transfer a distillery license for a distillery that produces 75,000 or fewer gallons per calendar year of distilled spirits on its premises or any ownership interest in such license to an individual or entity that has a direct or indirect ownership Page 9 of 11 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 interest4. in any distillery licensed in this state;

A craft distillery may transfer up to 75,000 gallons per calendar year of distilled spirits that it manufactures from its federal bonded space, nonbonded space at its licensed premises, or storage areas to its souvenir gift shop.

5.

Except as provided in subparagraph 6., it is unlawful to transfer a distillery license for a distillery that produces 75,000 or fewer gallons per calendar year of distilled spirits on its premises or any ownership interest in such license to an individual or entity that has a direct or indirect ownership interest in any distillery licensed in this state;

Section 8.10.

Section 565.17, Florida Statutes, is amended toPage read:28 of 29 CODING:

565.17 Beverage tastings by distributors, craft distilleries, and vendors.—A licensed distributor of spirituous beverages, a craft distillery, as defined in s.

565.03, or any vendor, is authorized to conduct spirituous beverage tastings upon any licensed premises authorized to sell spirituous beverages by package or for consumption on premises without being in violation of s.

561.42, provided that the conduct of the spirituous beverage tasting shall be limited to and directed Page 10 of 11 CODING:

hb1165-00hb1165-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HBCS/HB 1165 2020 towardto theread: general public of the age of legal consumption.

Section565.17 9.Beverage tastings by distributors, craft distilleries, and vendors.—A licensed distributor of spirituous beverages, a craft distillery, as defined in s.

565.03, or any vendor, is authorized to conduct spirituous beverage tastings upon any licensed premises authorized to sell spirituous beverages by package or for consumption on premises without being in violation of s.

561.42, provided that the conduct of the spirituous beverage tasting shall be limited to and directed toward the general public of the age of legal consumption.

Section 11.

Page 1129 of 1129 CODING:

hb1165-00hb1165-01-c1