The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: SB 658
INTRODUCER: Senator Burgess
SUBJECT: Registration Fees for Malt Beverage Brands and Labels
DATE: April 19, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Favorable
2. Davis Betta AEG Favorable
3. Oxamendi Yeatman FP Favorable
I. Summary:
SB 658 limits the application of the annual malt beverage brand and label registration fee of $30
to brands and labels for malt beverages sold to a distributor. Current law requires manufacturers,
brewers, bottlers, distributors, and importers of malt beverages, whether licensed under Florida’s
laws or not, to register their name and the brands and labels of their malt beverages with the
Division of Alcoholic Beverages and Tobacco (division), within the Department of Business and
Professional Regulation before the malt beverages may be sold or offered for sale in Florida, or
move or cause to be moved within or into Florida.
Under the bill, the malt beverage manufactures would not be required to register a brand or label
for a malt beverage and pay the $30 registration fee if the malt beverage is not sold to a
distributor and is sold directly to the consumer at the manufacturer’s licensed premises.
The bill will have an indeterminate negative fiscal impact on state revenues related to the
decrease in brand and label fees collected by the division.
The bill takes effect July 1, 2023.
II. Present Situation:
In Florida, alcoholic beverages are regulated by the Beverage Law,
1
which regulates the
manufacture, distribution, and sale of wine, beer, and liquor by manufacturers, distributors, and
vendors.
2
The Division of Alcoholic Beverages and Tobacco (division) in the Department of
Business and Professional Regulation administers and enforces the Beverage Law.
3
1
Section 561.01(6), F.S., provides that “The Beverage Law” means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2
See s. 561.14, F.S.
3
Section 561.02, F.S.
REVISED: BILL: SB 658 Page 2
“Alcoholic beverages” are defined in s. 561.01, F.S., as “distilled spirits and all beverages
containing one-half of one percent or more alcohol by volume.” “Malt beverages” are brewed
alcoholic beverages containing malt.
4
The term “beer” means a brewed beverage that meets the
federal definition of beer in 27 C.F.R. s. 25.11, and contains less than six percent alcohol by
volume. The terms “beer” and “malt beverage” have the same meaning under the Beverage Law.
The terms “beer” and “malt beverage” do not include alcoholic beverages that require a
certificate of label approval by the federal government as wine or as distilled spirits.
Section 561.14, F.S., specifies the license and registration classifications used in the Beverage
Law:
“Manufacturers” are those “licensed to manufacture alcoholic beverages and distribute the
same at wholesale to licensed distributors and to no one else within the state, unless
authorized by statute.”
5
“Distributors” are those “licensed to sell and distribute alcoholic beverages at wholesale to
persons who are licensed to sell alcoholic beverages.”
6
“Importers” are those licensed to sell, or to cause to be sold, shipped, and invoiced, alcoholic
beverages to licensed manufacturers or licensed distributors, and to no one else in this state,
provided that ss. 564.045 and 565.095, F.S., relating to primary American source of supply
licensure, are in no way violated by such imports.
7
“Vendors” are those “licensed to sell alcoholic beverages at retail only” and who may not
“purchase or acquire in any manner for the purpose of resale any alcoholic beverages from
any person not licensed as a vendor, manufacturer, bottler, or distributor under the Beverage
Law.”
8
Three-Tier System
In the United States, the regulation of alcohol, since the repeal of Prohibition, has traditionally
been based upon a “three-tier system.” The system requires separation of the manufacture,
distribution, and retail sale of alcoholic beverages by vendors. The manufacturer creates the
beverages, and the distributor obtains the beverages from the manufacturer to deliver to the
vendor. The vendor makes the ultimate sale to the consumer.
9
A manufacturer, distributor, or
exporter may not be licensed as a vendor to sell directly to consumers.
10
Generally, in Florida, only licensed vendors are permitted to sell alcoholic beverages directly to
consumers at retail.
11
Licensed manufacturers, distributors, and registered exporters are
prohibited from also being licensed as vendors.
12
Manufacturers are also generally prohibited
from having an interest in a vendor and from distributing directly to a vendor.
13
4
Section 563.01, F.S.
5
Section 561.14(1), F.S.
6
Section 561.14(2), F.S.
7
Section 561.01(5), F.S.
8
Section 561.14(3), F.S.
9
Section 561.14, F.S.
10
Section 561.22(1), F.S.
11
Section 561.14(3), F.S. However, see the exceptions provided in ss. 561.221 and 565.03, F.S.
12
Section 561.22, F.S.
13
Sections 563.022(14) and 561.14(1), F.S. BILL: SB 658 Page 3
Three-Tier System Exceptions
Exceptions to the three-tier regulatory system permit in-state wineries,
14
breweries,
15
and craft
distilleries to sell directly to consumers.
16
Restaurants licensed as vendors (brew pubs) may
manufacture a limited quantity of malt beverages and sell directly to consumers for consumption
on the licensed premises of the restaurant.
17
A winery, even if licensed as a distributor,
18
may be licensed as a vendor for a licensed premises
situated on property contiguous to the manufacturing premises of the winery. A winery may not
be issued more than three vendor licenses.
19
Malt Beverage Brand and Label Registration
Section 563.045(1), F.S., requires manufacturers, brewers, bottlers, distributors, and importers of
malt beverages (registrants), whether licensed under Florida’s laws or not, to be qualified under
Florida’s Beverage Law and to register their name and brands or labels with the division before
they sell or offer for sale in this state, or move or cause to be moved within this state or into this
state, any malt beverage. Registrants must furnish the division with any samples and information
as to content, quality, and formula of such malt beverages as the division may require.
Section 563.045(2), F.S., requires each registrant to pay an annual registration fee of $30 for a
brand or label. The division may suspend or revoke a registration in same manner as a beverage
license for any violation of the Beverage Law.
20
The division provides an electronic form for
registering brands and labels.
21
Section 563.045(3), F.S., prohibits licensed wholesalers from purchasing any malt beverages
from any manufacturer, brewer, bottler, distributor, or importer who has not complied with the
registration requirement.
Section 563.045(4), F.S., requires the division to promulgate rules to carry out the purpose of this
section.
22
14
See s. 561.221(1), F.S.
15
See s. 561.221(2), F.S.
16
See ss. 565.02(12) and 565.03, F.S.
17
See s. 561.221(3), F.S.
18
Section 561.14(1), F.S., permits manufacturers to distribute at wholesale to licensed distributors and to no one else within
the state, unless authorized by statute.
19
See s. 561. 221(1), F.S.
20
See s. 561.29, F.S., relating to the suspension or revocation of alcoholic beverages licenses.
21
See DBPR, Brand Registrant and Brand/Label,
https://www.myfloridalicense.com/intentions2.asp?chBoard=true&SID=&boardid=400&professionid=4011 (last visited Mar.
11, 2023).
22
The division has not adopted a rule to implement s. 563.045, F.S. BILL: SB 658 Page 4
III. Effect of Proposed Changes:
The bill amends s. 563.045(2), F.S., to limit the application of the malt beverage annual brand
and label registration fee of $30 to brands and labels for malt beverages sold to a distributor.
Under the bill, the malt beverage manufacturers would not be required to register a brand or label
for a malt beverage and pay the $30 registration fee if the malt beverage is not sold to a
distributor and is sold directly to the consumer at the manufacturer’s licensed premises.
The bill takes effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Under the bill, manufacturers of malt beverages would not have to pay the $30 brand and
label registration fee for a malt beverage that is not sold to a distributor.
C. Government Sector Impact:
The division anticipates a fiscal impact of $16,000 to update its online brand registration
to conform to the requirements of this bill.
23
The division also anticipates an
23
Department of Business and Professional Regulation, 2023 Agency Legislative Bill Analysis for SB 658 (Feb. 13, 2023) (on
file with the Senate Regulated Industries Committee). BILL: SB 658 Page 5
indeterminate decrease of revenue attributable to the bill exempting brand and label
registration requirements for malt beverages that are not sold to a distributor. Currently,
there are 11,846 malt brand licenses.
24
The table below shows the last three fiscal years
of revenue collected for brand/label registrations.
25
2020 2021 2022
Initial Malt Beverage Licenses $206,280 $239,730 $255,930
Malt Beverage License Renewals $98,580 $130,020 $131,820
These revenues include brand and label fees for all beverages. The reduction in revenue
will be determined by the number of beverages that are kept in house, which is not
currently tracked.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 563.045 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
24
Id.
25
Id.