CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 1 of 7 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 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 and 563.02, F.S.; revising the unit of measurement 4 used for certain licensing and fee purposes; creating 5 s. 563.042, F.S.; providing definitions; authorizing 6 certain manufacturers to enter into contract brewing 7 and alternating proprietorship brewing agreements; 8 providing responsibilities and requirements o f parties 9 under such agreements; prohibiting specified parties 10 from participating in such agreements; amending s. 11 563.045, F.S.; providing that the annual registration 12 fee is required only if labels or brands are sold to a 13 distributor; specifying that no o ther registration fee 14 is authorized; providing an effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Subsection (22) is added to section 561.01, 19 Florida Statutes, to read: 20 561.01 Definitions. —As used in the Beverage Law: 21 (22) "Barrel" means a quantity of 31 gallons. 22 Section 2. Paragraph (a) of subsection (3) of section 23 561.221, Florida Statutes, is amended to read: 24 561.221 Licensing of manufacturers and distributors as 25 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 2 of 7 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 vendors and of vendors as manufactu rers; conditions and 26 limitations.— 27 (3)(a) Notwithstanding other provisions of the Beverage 28 Law, any vendor licensed in this state may be licensed as a 29 manufacturer of malt beverages upon a finding by the division 30 that: 31 1. The vendor will be engaged in brewing malt beverages at 32 a single location and in an amount which will not exceed 5,000 33 barrels of beer 10,000 kegs per year. For purposes of this 34 subsection, the term "keg" means 15.5 gallons. 35 2. The malt beverages so brewed will be sold to consumers 36 for consumption on the vendor's licensed premises or on 37 contiguous licensed premises owned by the vendor. 38 Section 3. Subsection (2) of section 563.02, Florida 39 Statutes, is amended to read: 40 563.02 License fees; vendors; manufacturers and 41 distributors.— 42 (2) Each manufacturer engaged in the business of brewing 43 only malt beverages shall pay an annual state license tax of 44 $3,000 for each plant or branch he or she may operate. However, 45 each manufacturer engaged in the business of brewing less than 46 5,000 barrels 10,000 kegs of malt beverages annually for 47 consumption on the premises pursuant to s. 561.221(3) shall pay 48 an annual state license tax of $500 for each plant or branch. 49 Section 4. Section 563.042, Florida Statutes, is created 50 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 3 of 7 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 to read: 51 563.042 Contract and Alternating Proprietorship Brewing. — 52 (1) As used in this section the term: 53 (a) "Alternating proprietorship brewing" means an 54 agreement between a guest brewer and host brewer wherein the 55 guest brewer manufactures malt beverages on the host brewer's 56 licensed premises. 57 (b) "Contract brewer" means a licensed manufacturer of 58 malt beverages who brews malt beverages on its licensed premises 59 for a contracting brewer. 60 (c) "Contract brewing" means an agreement wherein a 61 contracting brewer pays a contract brewer to produce malt 62 beverages. 63 (d) "Contracting brewer" means a licensed manufacturer of 64 malt beverages who contracts for the services of a contract 65 brewer. 66 (e) "Guest brewer" means a licensed manufacturer of malt 67 beverages who brews malt b everages at a host brewer's licensed 68 premises. 69 (f) "Host brewer" means a licensed manufacturer of malt 70 beverages who allows a guest brewer to brew malt beverages on 71 the manufacturer's licensed premises. 72 (2) The contract brewer: 73 (a) May enter into mul tiple contract brewing agreements 74 for the purpose of manufacturing malt beverages. 75 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 4 of 7 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 (b) Shall comply with all applicable federal and state 76 laws, including labeling laws. 77 (c) Shall pay all federal and state taxes on malt 78 beverages manufactured pursuant t o this section upon removal of 79 the malt beverages from its licensed premises. 80 (d) Retains title to malt beverages produced under a 81 contract brewing agreement until such beverages are removed from 82 its licensed premises. 83 (e) Shall ensure that the contrac ting brewer's malt 84 beverages remain separate and identifiable from all other malt 85 beverages at all times. 86 (f) Notwithstanding any other provision of the Beverage 87 Law, may transfer malt beverages to the contracting brewer in an 88 amount up to the yearly pro duction amount of the contracting 89 brewer's facility. 90 (g) Shall report to the division by the 10th day of each 91 month the volume of each label of malt beverages manufactured on 92 its licensed premises under the contract brewing agreement. 93 (3) The contracting brewer: 94 (a) May only engage in the manufacture of malt beverages 95 on its duly licensed premises and on the licensed premises of a 96 contract brewer disclosed under paragraph (4)(a). 97 (b) Shall report to the division by the 10th day of each 98 month the volume of each label of malt beverages manufactured on 99 the licensed premises of the contract brewer under the contract 100 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 5 of 7 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 brewing agreement. 101 (4) The contract brewer and contracting brewer: 102 (a) Must, before engaging in contract brewing, notify the 103 division, on forms provided by the division, of their intent to 104 operate as a contract brewer or contracting brewer and disclose 105 the location of the licensed premises where brewing will occur. 106 (b) Shall maintain all records required to be kept by 107 manufacturers of malt beverages under the Beverage Law. 108 (c) Notwithstanding any other provision of the Beverage 109 Law, shall comply with s. 561.221(2)(c). 110 (5) The host brewer shall report to the division by the 111 10th day of each month the volume of each label of malt 112 beverages manufactured on its licensed premises under the 113 alternating proprietorship brewing agreement. 114 (6) The guest brewer: 115 (a) Shall comply with all applicable federal and state 116 laws, including labeling laws. 117 (b) Shall pay all federal and state taxes on malt 118 beverages manufactured pursuant to this section upon removal of 119 the malt beverages from the host brewer's licensed premises. 120 (c) Retains title to malt beverages manufactured under an 121 alternating proprietorship brewing agreement. 122 (d) Shall report to the division by the 10th day of each 123 month the volume of each label of malt beverages manufactured at 124 each licensed premises under each alternating proprietorship 125 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 6 of 7 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 brewing agreement. 126 (7) Before engaging in alternating proprietorship brewing, 127 the host brewer and guest brewer: 128 (a) Must each qualify as a brewer with the Alcohol and 129 Tobacco Tax and Trade Bureau under the U.S. Department of the 130 Treasury. 131 (b) Shall submit to the division, on forms provided by the 132 division, information identifying: 133 1. The host brewer. 134 2. The guest brewer. 135 3. The location where the alternating proprietorship 136 brewing will take place. 137 4. The location where any product brewed pursuant to the 138 alternating proprietorship brewing agreement will be stored. 139 5. The amount of malt beverages to be produced under the 140 alternating proprietorship brewing agreement. 141 6. The timeframe in which the guest brewer will be 142 manufacturing malt beverages on the host brewer's licensed 143 premises. 144 7. Proof of occupancy rights to the host br ewer's licensed 145 premises for the duration of the alternating proprietorship 146 brewing agreement. 147 8. Any other information reasonably deemed necessary by 148 the division to ensure the health, safety, and welfare of the 149 public or to ensure that all applicable t axes on the malt 150 CS/HB 1451 2022 CODING: Words stricken are deletions; words underlined are additions. hb1451-01-c1 Page 7 of 7 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 beverages produced pursuant to an alternating proprietorship 151 brewing agreement are remitted to the state. 152 (8) Each entity engaged in the activities described in 153 this section shall maintain records including: 154 (a) Any agreement authorizi ng the manufacturing and 155 transfer of malt beverages. 156 (b) Records of the total volume, in gallons, manufactured 157 as part of the agreement. 158 (c) Any other records required by the Division to ensure 159 compliance with the provisions of the Beverage Law. 160 (9) Manufacturers or vendors licensed pursuant to the s. 161 561.221(3)(a) may not engage in contract brewing or alternating 162 proprietorship brewing. 163 Section 5. Subsection (2) of section 563.045, Florida 164 Statutes, is amended to read: 165 563.045 Brands or labels to be registered; qualification 166 to do business; fee; revocation. — 167 (2) The each registrant shall pay an annual registration 168 fee for a brand or label sold to a distributor is of $30 for a 169 brand or label. No other annual registration fee for a brand or 170 label is authorized under this section . Any registration may be 171 suspended or revoked in the same manner as a beverage license 172 for any violation of the Beverage Law. 173 Section 6. This act shall take effect July 1, 2022. 174