HB 1451 2022
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A bill to be entitled 1
An act relating to malt beverages; amending s. 561.01, 2
F.S.; defining the term "barrel"; amending s. 561.221, 3
F.S.; revising the unit of measurement used for 4
certain licensing purposes; authorizing certain 5
vendors to sell specified malt beverages on any 6
licensed premises; amending s. 561.37, F.S.; removing 7
the requirement that certain manufacturers pay a 8
surety bond for taxes; creating s. 563.042, F.S.; 9
providing definitions; authorizing certain 10
manufacturers to enter into contract brewing and 11
alternating proprietorship brewing agreements; 12
providing responsibilities and requirements of parties 13
under such agreements; prohibiting specified parties 14
from participating in such agreements; authorizing the 15
Division of Alcoholic Beverages and Tobacco to adopt 16
rules; amending s. 563.045, F.S.; providing that the 17
annual registration fee is required only if labels or 18
brands are sold to a distributor; specifying that no 19
other registration fee is authorized; amending s. 20
563.05, F.S.; revising the unit of measurement used 21
for calculating excise taxes; amending s. 563.02, 22
F.S.; revising the unit of measurement used for 23
certain fee purposes; expanding the types of 24
manufacturers that qualify to pay a lower license tax; 25
HB 1451 2022
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providing an effective date. 26
27
Be It Enacted by the Leg islature of the State of Florida: 28
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Section 1. Subsection (22) is added to section 561.01, 30
Florida Statutes, to read: 31
561.01 Definitions. —As used in the Beverage Law: 32
(22) "Barrel" means a quantity of 31 gallons. 33
Section 2. Paragraph (a) of subs ection (3) of section 34
561.221, Florida Statutes, is amended to read: 35
561.221 Licensing of manufacturers and distributors as 36
vendors and of vendors as manufacturers; conditions and 37
limitations.— 38
(3)(a) Notwithstanding other provisions of the Beverage 39
Law, any vendor licensed in this state may be licensed as a 40
manufacturer of malt beverages upon a finding by the division 41
that: 42
1. The vendor will be engaged in brewing malt beverages at 43
a single location and in an amount which will not exceed 5,000 44
barrels of beer 10,000 kegs per year. For purposes of this 45
subsection, the term "keg" means 15.5 gallons. 46
2. The malt beverages so brewed will be sold to consumers 47
for consumption on the any vendor's licensed premises or on 48
contiguous licensed premises owned by the vendor. 49
Section 3. Section 561.37, Florida Statutes, is amended to 50
HB 1451 2022
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read: 51
561.37 Bond for payment of taxes. —Each manufacturer and 52
each distributor shall file with the division a surety bond 53
acceptable to the division in the sum of $25,000 as sur ety for 54
the payment of all taxes, provided, however, that when in the 55
discretion of the division the amount of business done by the 56
manufacturer or distributor is of such volume that a bond of 57
less than $25,000 will be adequate to secure the payment of all 58
taxes assessed or authorized by the Beverage Law, the division 59
may accept a bond in a lesser sum than $25,000, but in no event 60
shall it accept a bond of less than $10,000, and it may at any 61
time in its discretion require any bond in an amount less than 62
$25,000 to be increased so as not to exceed $25,000; provided, 63
however, that the amount of bond required for a brewer shall be 64
$20,000, except that where, in the discretion of the division, 65
the amount of business done by the brewer is of such volume that 66
a bond of less than $20,000 will be adequate to secure the 67
payment of all taxes assessed or authorized by the Beverage Law, 68
the division may accept a bond in a lesser sum than $20,000, but 69
in no event shall it accept a bond of less than $10,000, and it 70
may at any time in its discretion require any bond in an amount 71
less than $20,000 to be increased so as not to exceed $20,000; 72
provided further that the amount of the bond required for a wine 73
or wine and cordial manufacturer shall be $5,000, except that, 74
in the case of a manufacturer engaged solely in the experimental 75
HB 1451 2022
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manufacture of wines and cordials from Florida products, where 76
in the discretion of the division the amount of business done by 77
such manufacturer is of such volume that a bond of less than 78
$5,000 will be adequate to secure the payment of all taxes 79
assessed or authorized by the Beverage Law, the division may 80
accept a bond in a lesser sum than $5,000, but in no event shall 81
it accept a bond of less than $1,000 and it may at any time in 82
its discretion require a bond in an amount less than $5,000 to 83
be increased so as not to exceed $5,000; provided, further, that 84
the amount of bond required for a distributor who sells only 85
beverages containing not more than 4.007 percent of alcohol by 86
volume, in counties w here the sale of intoxicating liquors, 87
wines, and beers is prohibited, and to distributors who sell 88
only beverages containing not more than 17.259 percent of 89
alcohol by volume and wines regardless of alcoholic content, in 90
counties where the sale of intoxic ating liquors, wines, and 91
beers is permitted, shall file with the division a surety bond 92
acceptable to the division in the sum of $25,000, as surety for 93
the payment of all taxes; provided, however, that where in the 94
discretion of the division the amount of business done by such 95
distributor is of such volume that a bond of less than $25,000 96
will be adequate to secure the payment of all taxes assessed or 97
authorized by the Beverage Law the division may accept a bond in 98
a less sum than $25,000 but in no event s hall it accept a bond 99
less than $1,000 and it may at any time in its discretion 100
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require any bond in an amount less than $25,000 to be increased 101
so as not to exceed $25,000; provided, further, that the amount 102
of bond required for a distributor in a county h aving a 103
population of 15,000 or less who procures a license by which his 104
or her sales are restricted to distributors and vendors who have 105
obtained licenses in the same county, shall be $5,000. 106
Section 4. Section 563.042, Florida Statutes, is created 107
to read: 108
563.042 Contract and Alternating Proprietorship Brewing. — 109
(1) As used in this section the term: 110
(a) "Alternating proprietorship brewing" means an 111
agreement between a guest brewer and host brewer wherein the 112
guest brewer manufactures malt beverages on the host brewer's 113
licensed premises. 114
(b) "Contract brewer" means a licensed manufacturer of 115
malt beverages who brews malt beverages on its licensed premises 116
for a contracting brewer. 117
(c) "Contract brewing" means an agreement wherein a 118
contracting brewer pays a contract brewer to produce malt 119
beverages. 120
(d) "Contracting brewer" means a licensed manufacturer of 121
malt beverages who contracts for the services of a contract 122
brewer. 123
(e) "Guest brewer" means a licensed manufacturer of malt 124
beverages who brews malt beverages at a host brewer's licensed 125
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premises. 126
(f) "Host brewer" means a licensed manufacturer of malt 127
beverages who allows a guest brewer to brew malt beverages on 128
the manufacturer's licensed premises. 129
(2) The contract brewer: 130
(a) May enter into multiple contract brewing agreements 131
for the purpose of manufacturing malt beverages. 132
(b) Shall comply with all applicable federal and state 133
laws, including labeling laws. 134
(c) Shall pay all federal and state taxes on malt 135
beverages manufactured pursuant to this section upon removal of 136
the malt beverages from its licensed premises. 137
(d) Retains title to malt beverages produced under a 138
contract brewing agreement until such beverages are removed from 139
its licensed premises. 140
(e) Shall ensure that the contracting brewer's malt 141
beverages remain separate and identifiable from all other malt 142
beverages at all times. 143
(f) Notwithstanding any other provision of the Beverage 144
Law, may transfer malt beverages to the contracting brewer in an 145
amount up to the yearly production amount of the contracting 146
brewer's facility. 147
(g) Shall report to the division by the 10th day of each 148
month the volume of each label of malt beverages manufactured on 149
its licensed premises under the contract brewing agreemen t. 150
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(3) The contracting brewer: 151
(a) May only engage in the manufacture of malt beverages 152
on its duly licensed premises and on the licensed premises of a 153
contract brewer disclosed under paragraph (4)(a). 154
(b) Shall report to the division by the 10th day of each 155
month the volume of each label of malt beverages manufactured on 156
the licensed premises of the contract brewer under the contract 157
brewing agreement. 158
(4) The contract brewer and contracting brewer: 159
(a) Must, before engaging in contract brewing, notify the 160
division, on forms provided by the division, of their intent to 161
operate as a contract brewer or contracting brewer and disclose 162
the location of the licensed premises where brewing will occur. 163
(b) Shall maintain all records required to be kept by 164
manufacturers of malt beverages under the Beverage Law. 165
(c) Notwithstanding any other provision of the Beverage 166
Law, shall comply with s. 561.221(2)(c). 167
(5) The host brewer shall report to the division by the 168
10th day of each month the volume of eac h label of malt 169
beverages manufactured on its licensed premises under the 170
alternating proprietorship brewing agreement. 171
(6) The guest brewer: 172
(a) Shall comply with all applicable federal and state 173
laws, including labeling laws. 174
(b) Shall pay all federal and state taxes on malt 175
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beverages manufactured pursuant to this section upon removal of 176
the malt beverages from the host brewer's licensed premises. 177
(c) Retains title to malt beverages manufactured under an 178
alternating propriet orship brewing agreement. 179
(d) Shall report to the division by the 10th day of each 180
month the volume of each label of malt beverages manufactured at 181
each licensed premises under each alternating proprietorship 182
brewing agreement. 183
(7) Before engaging in a lternating proprietorship brewing, 184
the host brewer and guest brewer: 185
(a) Must each qualify as a brewer with the Alcohol and 186
Tobacco Tax and Trade Bureau under the U.S. Department of the 187
Treasury. 188
(b) Shall submit to the division, on forms provided by the 189
division, information identifying: 190
1. The host brewer. 191
2. The guest brewer. 192
3. The location where the alternating proprietorship 193
brewing will take place. 194
4. The location where any product brewed pursuant to the 195
alternating proprietorship brewin g agreement will be stored. 196
5. The amount of malt beverages to be produced under the 197
alternating proprietorship brewing agreement. 198
6. The timeframe in which the guest brewer will be 199
manufacturing malt beverages on the host brewer's licensed 200
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premises. 201
7. Proof of occupancy rights to the host brewer's licensed 202
premises for the duration of the alternating proprietorship 203
brewing agreement. 204
8. Any other information reasonably deemed necessary by 205
the division to ensure the health, safety, and welfare of t he 206
public or to ensure that all applicable taxes on the malt 207
beverages produced pursuant to an alternating proprietorship 208
brewing agreement are remitted to the state. 209
(8) Each entity engaged in the activities described in 210
this section shall maintain reco rds including: 211
(a) Any agreement authorizing the manufacturing and 212
transfer of malt beverages. 213
(b) Records of the total volume, in gallons, manufactured 214
as part of the agreement. 215
(c) Any other records required by the Division to ensure 216
compliance with the provisions of the Beverage Law. 217
(9) Manufacturers or vendors licensed pursuant to the s. 218
561.221(3)(a) may not engage in contract brewing or alternating 219
proprietorship brewing. 220
Section 5. Subsection (2) of section 563.045, Florida 221
Statutes, is amended to read: 222
563.045 Brands or labels to be registered; qualification 223
to do business; fee; revocation. — 224
(2) The each registrant shall pay an annual registration 225
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fee for a brand or label sold to a distributor is of $30 for a 226
brand or label. No other annual registration fee for a brand or 227
label is authorized under this section . Any registration may be 228
suspended or revoked in the same manner as a beverage license 229
for any violation of the Beverage Law. 230
Section 6. Section 563.05, Florida Statutes, is amended to 231
read: 232
563.05 Excise taxes on malt beverages. —As to malt 233
beverages containing 0.5 percent or more of alcohol by volume, 234
there shall be paid by all manufacturers, distributors, and 235
vendors, as herein defined, a tax of 48 cents per gallon upon 236
all such beverages in bulk or in kegs or barrels; and, when such 237
beverages are sold in containers of less than 1 gallon, the tax 238
will be 0.375 cents per ounce 6 cents on each pint or fraction 239
thereof in the container. However, the excise taxes required to 240
be paid by this section upon malt beverages are not required to 241
be paid upon such beverages when they are sold to post 242
exchanges, ship service stores, and base exchanges located in 243
military, naval, or air force reservations within this state. 244
(10) The division may adopt rules to implement this 245
section. 246
Section 7. Subsection (2) of section 563.02, Florida 247
Statutes, is amended to read: 248
563.02 License fees; vendors; manufacturers and 249
distributors.— 250
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(2) Each manufacturer engaged in the business of brew ing 251
only malt beverages shall pay an annual state license tax of 252
$3,000 for each plant or branch he or she may operate. However, 253
each manufacturer engaged in the business of brewing less than 254
5,000 barrels 10,000 kegs of malt beverages annually for sale 255
pursuant to s. 561.221(2) or consumption on the premises 256
pursuant to s. 561.221(3) shall pay an annual state license tax 257
of $500 for each plant or branch. 258
Section 8. This act shall take effect July 1, 2022. 259