THE BILL ITSELF
HB 1537
Beverage Law
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A bill to be entitled
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An act relating to the beverage law; amending s.
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561.221, F.S.; authorizing a craft brewery to conduct
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tastings and sales of malt beverages at certain
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events; requiring the Division of Alcoholic Beverages
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and Tobacco to issue permits for such tastings and
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sales to such craft breweries; requiring such craft
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breweries to pay all entry fees and have a
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representative present at such events; providing that
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the permit is valid only for the duration and physical
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location of the event; defining the term "craft
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brewery"; amending s. 561.37, F.S.; deleting a
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requirement that manufacturers and brewers file a
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surety bond with the division; amending s. 563.02,
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F.S.; revising a requirement for certain manufacturers
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to pay a specified license tax; creating s. 563.042,
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F.S.; defining terms; authorizing contract brewers to
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transfer malt beverages to contracting brewers'
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facilities up to a specified amount; authorizing a
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contract brewer to contract with one or more
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contracting brewers for a specified purpose; providing
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that the contract brewer is responsible for complying
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with federal and state law and for paying all federal
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and state taxes; providing that title to the malt
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beverages remains with the contract brewer until the
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malt beverages are removed from the licensed premises;
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requiring contract brewers and contracting brewers to
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maintain certain records required by the division;
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requiring licensed manufacturers that wish to engage
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in contract brewing to notify the division of its
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intention on forms provided by the division; requiring
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such licensed manufacturers to make a full and
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complete report to the division by a certain date;
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specifying what a contract brewer and a contracting
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brewer must include in such reports; requiring such
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licensed manufacturers to maintain all records
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required by the Beverage Law; requiring that an entity
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seeking to become a host brewer or a guest brewer for
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alternating proprietorship brewing first qualify as a
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brewer with the National Revenue Center; requiring
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such entities to submit a form to the division with
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specified information; requiring that a guest brewer's
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malt beverages be separate and identifiable from the
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malt beverages of all other tenants at the host
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brewer's licensed premises; requiring a guest brewer
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to make a full and complete report of specified
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information to the division by a certain day each
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month; requiring a guest brewer to comply with all
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federal and state law and to pay all federal and state
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taxes; providing that title to the malt beverages
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remains with the guest brewer; prohibiting
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manufacturers or vendors from engaging in contract
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brewing or alternating proprietorship brewing;
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authorizing the division to adopt rules; providing an
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effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (f) is added to subsection (2) of
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section 561.221, Florida Statutes, to read:
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561.221 Licensing of manufacturers and distributors as
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vendors and of vendors as manufacturers; conditions and
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limitations.—
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(2)
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(f)1. A craft brewery licensed under this subsection may
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conduct tastings and sales of malt beverages produced by the
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brewery at fairs, trade shows, farmers markets, expositions, and
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festivals in this state. The division shall issue permits to
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craft breweries for such tastings and sales. A craft brewery
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must pay all entry fees and must have a brewery representative
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present during the event. The permit is limited to the duration
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and physical location of the event.
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2. As used in this paragraph, the term "craft brewery"
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means a manufacturer, whether licensed in this state or in
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another state, which produces in total fewer than 60,000 barrels
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of malt beverages per calendar year.
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Section 2. Section 561.37, Florida Statutes, is amended to
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read:
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561.37 Bond for payment of taxes.— Each manufacturer and
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each distributor shall file with the division a surety bond
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acceptable to the division in the sum of $25,000 as surety for
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the payment of all taxes, provided, however, that when in the
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discretion of the division the amount of business done by the
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manufacturer or distributor is of such volume that a bond of
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less than $25,000 will be adequate to secure the payment of all
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taxes assessed or authorized by the Beverage Law, the division
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may accept a bond in a lesser sum than $25,000, but in no event
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shall it accept a bond of less than $10,000, and it may at any
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time in its discretion require any bond in an amount less than
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$25,000 to be increased so as not to exceed $25,000; provided,
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however, that the amount of bond required for a brewer shall be
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$20,000, except that where, in the discretion of the division,
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the amount of business done by the brewer is of such volume that
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a bond of less than $20,000 will be adequate to secure the
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payment of all taxes assessed or authorized by the Beverage Law,
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the division may accept a bond in a lesser sum than $20,000, but
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in no event shall it accept a bond of less than $10,000, and it
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may at any time in its discretion require any bond in an amount
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less than $20,000 to be increased so as not to exceed $20,000;
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provided further that the amount of the bond required for a wine
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or wine and cordial manufacturer shall be $5,000, except that,
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in the case of a manufacturer engaged solely in the experimental
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manufacture of wines and cordials from Florida products, where
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in the discretion of the division the amount of business done by
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such manufacturer is of such volume that a bond of less than
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$5,000 will be adequate to secure the payment of all taxes
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assessed or authorized by the Beverage Law, the division may
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accept a bond in a lesser sum than $5,000, but in no event shall
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it accept a bond of less than $1,000 and it may at any time in
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its discretion require a bond in an amount less than $5,000 to
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be increased so as not to exceed $5,000; provided, further, that
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the amount of bond required for a distributor who sells only
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beverages containing not more than 4.007 percent of alcohol by
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volume, in counties where the sale of intoxicating liquors,
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wines, and beers is prohibited, and to distributors who sell
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only beverages containing not more than 17.259 percent of
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alcohol by volume and wines regardless of alcoholic content, in
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counties where the sale of intoxicating liquors, wines, and
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beers is permitted, shall file with the division a surety bond
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acceptable to the division in the sum of $25,000, as surety for
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the payment of all taxes; provided, however, that where in the
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discretion of the division the amount of business done by such
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distributor is of such volume that a bond of less than $25,000
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will be adequate to secure the payment of all taxes assessed or
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authorized by the Beverage Law the division may accept a bond in
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a less sum than $25,000 but in no event shall it accept a bond
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less than $1,000 and it may at any time in its discretion
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require any bond in an amount less than $25,000 to be increased
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so as not to exceed $25,000; provided, further, that the amount
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of bond required for a distributor in a county having a
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population of 15,000 or less who procures a license by which his
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or her sales are restricted to distributors and vendors who have
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obtained licenses in the same county, shall be $5,000.
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Section 3. Subsection (2) of section 563.02, Florida
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Statutes, is amended to read:
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563.02 License fees; vendors; manufacturers and
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distributors.—
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(2) Each manufacturer engaged in the business of brewing
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only malt beverages shall pay an annual state license tax of
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$3,000 for each plant or branch he or she may operate. However,
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each manufacturer engaged in the business of brewing fewer less
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than 60,000 barrels 10,000 kegs of malt beverages annually
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pursuant to s. 561.221(2) or for consumption on the premises
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pursuant to s. 561.221(3), shall pay an annual state license tax
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of $500 for each plant or branch.
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Section 4. Section 563.042, Florida Statutes, is created
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to read:
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563.042 Contract brewing and alternating proprietorships.—
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(1) As used in this section, the term:
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(a) "Alternating proprietorship brewing" means an
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agreement between a host brewer and guest brewer wherein the
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guest brewer manufactures malt beverages on the host brewer's
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licensed premises.
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(b) "Contract brewer" means a licensed manufacturer of
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malt beverages who brews such beverages on its licensed premises
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for a contracting brewer.
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(c) "Contract brewing" means an agreement between a
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contract brewer and a contracting brewer wherein the contract
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brewer brews malt beverages on its licensed premises for a
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contracting brewer.
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(d) "Contracting brewer" means a licensed manufacturer of
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malt beverages who contracts for the services of malt beverage
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brewing with a contract brewer.
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(e) "Guest brewer" means a licensed manufacturer of malt
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beverages who brews malt beverages at a host brewer's licensed
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premises.
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(f) "Host brewer" means a licensed manufacturer of malt
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beverages who allows a guest brewer to brew malt beverages at
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the host brewer's licensed premises.
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(2) Notwithstanding any other provision of the Beverage
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Law, contract brewers are authorized to transfer malt beverages
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to contracting brewers in an amount up to the yearly production
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amount at a contracting brewer's facility pursuant to a contract
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brewing agreement entered into in accordance with this section.
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Such beverages may be transferred to the contracting brewer's
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licensed facility as provided in s. 561.221(2)(c).
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(3) A contract brewer may contract with one or more
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contracting brewers for the purpose of manufacturing malt
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beverages for such licensees. The contract brewer is responsible
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for complying with federal and state law relating to the
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manufacturing of malt beverages, including labeling laws, and
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for the payment of all federal and state taxes on any malt
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beverage manufactured pursuant to this section after removing
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the malt beverages from the manufacturer's licensed premises.
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Title to the malt beverages remains with the contract brewer
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until the malt beverages are removed from the licensed premises.
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(4) Each entity engaged in the activities described in
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this section shall maintain records, including the agreement
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authorizing the manufacturing and transfer of malt beverages,
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records of the amount of malt beverages manufactured as part of
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the agreement, and all other records required by the division to
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ensure compliance with the Beverage Law.
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(5) Licensed manufacturers of malt beverages intending to
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engage in contract brewing must do all of the following:
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(a) Notify the division of the intent to operate as a
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contract brewer or contracting brewer before engaging in
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contract brewing, and disclose the location of licensed premises
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where brewing will occur, on forms provided by the division.
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Contracting brewers may only engage in the manufacture of malt
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beverages at their duly licensed premises and at the disclosed
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licensed premises of a contract brewer.
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(b) Make a full and complete report to the division by the
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10th day of each month. Contract brewers shall report the volume
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of a label of malt beverages manufactured upon the licensed
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premises. Contracting brewers shall report the volume of a label
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of malt beverages manufactured at the licensed premises of the
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contract brewer.
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(c) Maintain all records required to be kept by
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manufacturers of malt beverages under the Beverage Law.
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(6) Before engaging in alternating proprietorship brewing,
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an entity seeking to become a host brewer or a guest brewer must
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qualify as a brewer with the National Revenue Center within the
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United States Department of the Treasury and submit the
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following information to the division on a form approved by the
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division:
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(a) The name of the host brewer.
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(b) The name of the guest brewer.
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(c) The location where the alternating proprietorship
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brewing will take place.
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(d) The location where any product brewed pursuant to the
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alternating proprietorship brewing arrangement will be stored.
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(e) The amount of malt beverages to be produced under the
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alternating proprietorship brewing arrangement.
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(f) The timeframe in which the guest brewer will be
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manufacturing malt beverages on the host brewer's licensed
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premises.
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(g) Proof of occupancy rights to the host brewer's
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licensed premises for the duration of the alternating
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proprietorship brewing arrangement.
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(h) Any other information reasonably deemed necessary by
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the division to ensure the health, safety, and welfare of the
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people in this state, and to ensure that all applicable taxes on
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the malt beverages produced pursuant to an alternating
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proprietorship brewing arrangement are remitted to the state.
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(7) Each guest brewer's malt beverages must remain
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separate and identifiable from the malt beverages of all other
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tenants at the contract brewer's licensed premises at all times.
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(8) Each guest brewer shall make a full and complete
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report to the division by the 10th day of each month. Guest
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brewers shall report the volume of each label of malt beverages
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manufactured upon each licensed premises. Host brewers shall
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report the volume of each label of malt beverages manufactured
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at the licensed premises of the host brewer.
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(9) The guest brewer is responsible for complying with all
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federal and state law dealing with the manufacturing of malt
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beverages, including labeling laws, and for the payment of all
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federal and state taxes on any malt beverages manufactured
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pursuant to this section upon removal of the malt beverages from
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the manufacturer's licensed premises. Title to the malt
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beverages remains with the guest brewer.
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(10) Manufacturers or vendors licensed pursuant to s.
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561.221(3) may not engage in contract brewing or alternating
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proprietorship brewing.
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(11) The division may adopt rules and forms pursuant to
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ss. 120.536(1) and 120.54 to implement this section.
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Section 5. This act shall take effect July 1, 2026.