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A bill to be entitled 1
An act relating to the beverage law; amending s. 2
561.01, F.S.; defining the terms "barrel" and "craft 3
brewery"; amending s. 561.221, F.S.; authorizing the 4
transferring of malt beverages and other alcoholic 5
beverages to a licensed facility in certain instan ces; 6
authorizing craft breweries to sell and deliver a 7
certain number of barrels of malt beverages to a 8
licensed vendor if certain requirements are met; 9
prohibiting certain manufacturers from delivering malt 10
beverages; authorizing craft breweries to conduc t 11
tastings and sales of malt beverages at specified 12
events; requiring the Division of Alcoholic Beverages 13
and Tobacco of the Department of Business and 14
Professional Regulation to issue a permit for such 15
events; revising the findings by the division require d 16
for licensing of vendors as a manufacturer of malt 17
beverages; amending s. 561.37, F.S.; removing 18
manufacturers and brewers from a requirement to file a 19
surety bond with the division; amending s. 561.5101, 20
F.S.; providing that the come -to-rest requirement does 21
not apply to craft breweries delivering malt 22
beverages; amending s. 561.57, F.S.; providing that 23
certain manufacturers are excluded from making 24
specified deliveries; authorizing craft breweries that 25
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deliver malt beverages to transport such beverages if 26
certain requirements are met; amending s. 563.02, 27
F.S.; conforming provisions to changes made by the 28
act; amending s. 563.022, F.S.; revising the 29
definition of the term "manufacturer" to exclude a 30
craft brewery by a specified date; creating s. 31
563.023, F.S.; providing for a distribution agreement 32
between a beer distributor and a craft brewery; 33
providing applicability; providing construction; 34
providing for agreement restrictions; providing for 35
termination of the agreement by a craft brewery and a 36
distributor; providing for prohibited actions of craft 37
breweries and distributors; providing for requirements 38
relating to sales territories; providing for territory 39
representation by distributors who enter into 40
distribution agreements; requiring a craft brewery to 41
repurchase its product upon termination of a 42
distribution agreement; providing for actual damages, 43
attorney fees, and costs; requiring arbitration of 44
specified disputes; establishing arbitration hearing 45
provisions; requiring all direct costs or fees of 46
arbitration to be equally divided; requiring all 47
indirect costs or fees to be paid by the party that 48
incurs such costs or fees; providing that failure to 49
participate in arbitration waives certain rights and 50
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that such party is deemed to consent to the decisio n 51
rendered by the arbitrator; providing construction; 52
creating s. 563.042, F.S.; providing definitions; 53
authorizing the transfer of beer or malt beverages 54
between a contract brewer and a contracting brewer in 55
a specified amount pursuant to a contract brewi ng 56
agreement; authorizing a contract brewer to contract 57
with more than one contracting brewer; requiring that 58
a contract brewer comply with specified laws; 59
providing that a contract brewer is responsible for 60
the payment of specified taxes; providing that t itle 61
remains with the contract brewer until beverages are 62
removed from licensed premises; requiring the contract 63
brewer and contracting brewer to maintain specified 64
records; providing that a licensed manufacturer 65
seeking to engage in contract brewing must meet 66
certain requirements; requiring contracting brewers' 67
malt beverages to remain separate and identifiable 68
from other tenants' beer at the contract brewer's 69
licensed premises; requiring a specified qualification 70
and the submitting of certain information before 71
engaging in alternating proprietorship brewing; 72
requiring host brewers and guest brewers to submit to 73
the division a specified report by a specified date 74
each month; requiring guest brewers to comply with 75
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specified laws; providing that guest brewers are 76
responsible for payment of specified taxes; providing 77
that title of malt beverages remains with guest brewer 78
until such beverages are removed from the licensed 79
premises; prohibiting certain manufacturers and 80
vendors from engaging in contract brewing o r 81
alternating proprietorship brewing; providing for the 82
adoption of rules and forms; providing an effective 83
date. 84
85
Be It Enacted by the Legislature of the State of Florida: 86
87
Section 1. Subsections (22) and (23) are added to section 88
561.01, Florida Statutes, to read: 89
561.01 Definitions. —As used in the Beverage Law: 90
(22) "Barrel" means a quantity of 31 gallons. 91
(23) "Craft brewery" means a manufacturer, whether 92
licensed within or without this state, that produces in total 93
less than 60,000 barrel s of malt beverages per calendar year. 94
Section 2. Subsection (2) and paragraph (a) of subsection 95
(3) of section 561.221, Florida Statutes, are amended to read: 96
561.221 Licensing of manufacturers and distributors as 97
vendors and of vendors as manufactu rers; conditions and 98
limitations.— 99
(2)(a) Notwithstanding s. 561.22, s. 561.42, or any other 100
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provision of the Beverage Law, the division is authorized to 101
issue vendor's licenses to a manufacturer of malt beverages, 102
even if such manufacturer is also licen sed as a distributor, for 103
the sale of alcoholic beverages on property consisting of a 104
single complex, which property shall include a brewery. However, 105
such property may be divided by no more than one public street 106
or highway. 107
(b) The licensed vendor prem ises shall be included on the 108
sketch or diagram defining the licensed premises submitted with 109
the manufacturer's license application pursuant to s. 110
561.01(11). All sketch or diagram revisions by the manufacturer 111
must be approved by the division, verifying that the vendor 112
premises operated by the licensed manufacturer is owned or 113
leased by the manufacturer and is located on the licensed 114
manufacturing premises. 115
(c) Notwithstanding any other provision of the Beverage 116
Law, a manufacturer holding multiple manu facturing licenses may 117
transfer malt beverages to a licensed facility, as provided in 118
ss. 563.022(14)(d) and 563.023(2) s. 563.022(14)(d), in an 119
amount up to the yearly production amount at the receiving 120
facility. Malt beverages and other alcoholic beverag es that are 121
manufactured under contract or by an alternating proprietorship 122
by another licensed manufacturer , including any malt beverages 123
and that are owned in whole or in part by the manufacturer, may 124
be transferred to the licensed facility, as provided in ss. 125
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563.022(14)(d) and 563.023(2). Malt beverages and other 126
alcoholic beverages that are not owned by the manufacturer and 127
but are brewed by another manufacturer, must be obtained through 128
a licensed distributor that is not also a licensed manufacturer, 129
a licensed broker or sales agent, or a licensed importer. 130
(d) A craft brewery may sell and deliver up to 5,000 131
barrels of malt beverages per year to a licensed vendor, 132
provided that: 133
1. Any malt beverages sold and delivered under this 134
subsection that are not otherwise registered by a licensed 135
distributor shall be registered with the division by the craft 136
brewery. 137
2. The craft brewery complies with ss. 561.42 and 561.423, 138
as applicable, to the same extent as if the manufacturer was a 139
distributor. 140
3. The craft brewery notifies the distributor of any self -141
distribution delivery by electronic or other means. 142
(e)(d) A manufacturer possessing a vendor's license under 143
this subsection that produces more than 60,000 barrels of malt 144
beverages per year may not is not permitted to make deliveries 145
under s. 561.57(1). 146
(f)(e) The division may is authorized to issue up to eight 147
vendor's licenses to a manufacturer of malt beverages pursuant 148
to this subsection. 149
(g)1. A craft brewery licensed under this subsection may 150
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conduct tastings and sales of malt beverages produced by the 151
craft brewery at Florida fairs, trade shows, farmers markets, 152
expositions, and festivals. A craft brewery must pay all entry 153
fees and must have a brewery representative present during the 154
event. 155
2. The division shall issue a permit to a craft brewery 156
for the purposes provided in subparagraph 1. Any permit issued 157
pursuant to this subparagraph is limited to the place and 158
duration of the event. 159
(3)(a) Notwithstanding other provisions of the B everage 160
Law, any vendor licensed in this state may be licensed as a 161
manufacturer of malt beverages upon a finding by the division 162
that: 163
1. The vendor will be engaged in brewing malt beverages at 164
a single location and in an amount which will not exceed 5,000 165
barrels of beer 10,000 kegs per year. For purposes of this 166
subsection, the term "keg" means 15.5 gallons. 167
2. The malt beverages so brewed will be sold to consumers 168
for consumption on the vendor's licensed premises or on 169
contiguous licensed premises o wned by the vendor. 170
Section 3. Section 561.37, Florida Statutes, is amended to 171
read: 172
561.37 Bond for payment of taxes. —Each manufacturer and 173
each distributor shall file with the division a surety bond 174
acceptable to the division in the sum of $25,000 as surety for 175
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the payment of all taxes, provided, however, that when in the 176
discretion of the division the amount of business done by the 177
manufacturer or distributor is of such volume that a bond of 178
less than $25,000 will be adequate to secure the payment of all 179
taxes assessed or authorized by the Beverage Law, the division 180
may accept a bond in a lesser sum than $25,000, but in no event 181
shall it accept a bond of less than $10,000, and it may at any 182
time in its discretion require any bond in an amount less t han 183
$25,000 to be increased so as not to exceed $25,000; provided, 184
however, that the amount of bond required for a brewer shall be 185
$20,000, except that where, in the discretion of the division, 186
the amount of business done by the brewer is of such volume th at 187
a bond of less than $20,000 will be adequate to secure the 188
payment of all taxes assessed or authorized by the Beverage Law, 189
the division may accept a bond in a lesser sum than $20,000, but 190
in no event shall it accept a bond of less than $10,000, and it 191
may at any time in its discretion require any bond in an amount 192
less than $20,000 to be increased so as not to exceed $20,000; 193
provided further that the amount of the bond required for a wine 194
or wine and cordial manufacturer shall be $5,000, except that, 195
in the case of a manufacturer engaged solely in the experimental 196
manufacture of wines and cordials from Florida products, where 197
in the discretion of the division the amount of business done by 198
such manufacturer is of such volume that a bond of less than 199
$5,000 will be adequate to secure the payment of all taxes 200
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assessed or authorized by the Beverage Law, the division may 201
accept a bond in a lesser sum than $5,000, but in no event shall 202
it accept a bond of less than $1,000 and it may at any time in 203
its discretion require a bond in an amount less than $5,000 to 204
be increased so as not to exceed $5,000; provided, further, that 205
the amount of bond required for a distributor who sells only 206
beverages containing not more than 4.007 percent of alcohol by 207
volume, in counties where the sale of intoxicating liquors, 208
wines, and beers is prohibited, and to distributors who sell 209
only beverages containing not more than 17.259 percent of 210
alcohol by volume and wines regardless of alcoholic content, in 211
counties where the sale of i ntoxicating liquors, wines, and 212
beers is permitted, shall file with the division a surety bond 213
acceptable to the division in the sum of $25,000, as surety for 214
the payment of all taxes; provided, however, that where in the 215
discretion of the division the amo unt of business done by such 216
distributor is of such volume that a bond of less than $25,000 217
will be adequate to secure the payment of all taxes assessed or 218
authorized by the Beverage Law the division may accept a bond in 219
a less sum than $25,000 but in no e vent shall it accept a bond 220
less than $1,000 and it may at any time in its discretion 221
require any bond in an amount less than $25,000 to be increased 222
so as not to exceed $25,000; provided, further, that the amount 223
of bond required for a distributor in a co unty having a 224
population of 15,000 or less who procures a license by which his 225
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or her sales are restricted to distributors and vendors who have 226
obtained licenses in the same county, shall be $5,000. 227
Section 4. Subsection (3) is added to section 561.510 1, 228
Florida Statutes, to read: 229
561.5101 Come-to-rest requirement; exceptions; penalties. — 230
(3) This section does not apply to a craft brewery 231
delivering malt beverages as provided in s. 561.221(2)(d). 232
Section 5. Subsections (1) and (2) of section 561.57, 233
Florida Statutes, are amended to read: 234
561.57 Deliveries by licensees. — 235
(1) Vendors may shall be permitted to make deliveries away 236
from their places of business of sales actually made at the 237
licensed place of business; provided, telephone, elec tronic, or 238
mail orders received at a vendor's licensed place of business is 239
shall be construed as a sale actually made at the vendor's 240
licensed place of business. Deliveries made by a vendor away 241
from his or her place of business may be made in vehicles th at 242
are owned or leased by the vendor or in a third -party vehicle 243
pursuant to a contract with a third party with whom the vendor 244
has contracted to make deliveries, including, but not limited 245
to, common carriers. By acceptance of an alcoholic beverage 246
license, the vendor agrees that vehicles that are owned or 247
leased by the vendor shall always be subject to inspection and 248
search without a search warrant for the purpose of ascertaining 249
that all provisions of the alcoholic beverage laws are complied 250
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with by authorized employees of the division and also by 251
sheriffs, deputy sheriffs, and police officers during business 252
hours or other times the vehicle is being used to transport or 253
deliver alcoholic beverages. A manufacturer possessing a 254
vendor's license under s. 56 1.221(2) that produces more than 255
60,000 barrels of malt beverages per year may not is not 256
permitted to make deliveries under this subsection. 257
(2) Deliveries made by a manufacturer or distributor away 258
from his or her place of business may be made only in vehicles 259
that are owned or leased by the licensee. However, a craft 260
brewery that delivers malt beverages, as authorized by s. 261
561.221(2)(d), may transport malt beverages if the vehicle used 262
is owned or leased by the manufacturer or any person who has 263
been disclosed in writing to the division. By acceptance of an 264
alcoholic beverage license and the use of such vehicles, the 265
licensee agrees that such vehicle shall always be subject to be 266
inspected and searched without a search warrant, for the purpose 267
of ascertaining that all provisions of the alcoholic beverage 268
laws are complied with, by authorized employees of the division 269
and also by sheriffs, deputy sheriffs, and police officers 270
during business hours or other times the vehicle is being used 271
to transport or deliver alcoholic beverages. 272
Section 6. Subsection (2) of section 563.02, Florida 273
Statutes, is amended to read: 274
563.02 License fees; vendors; manufacturers and 275
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distributors.— 276
(2) Each manufacturer engaged in the business of brewing 277
only malt beverages shall pay an annual state license tax of 278
$3,000 for each plant or branch he or she may operate. However, 279
each manufacturer engaged in the business of brewing less than 280
60,000 barrels 10,000 kegs of malt beverages annually pursuant 281
to s. 561.221(2), or for consumption on the premises pursuant to 282
s. 561.221(3), shall pay an annual state license tax of $500 for 283
each plant or branch. 284
Section 7. Paragraph (h) of subsection (2) of section 285
563.022, Florida Statutes, is amended to read: 286
563.022 Relations between beer distributors and 287
manufacturers.— 288
(2) DEFINITIONS.—In construing this section, unless the 289
context otherwise requires, the word, phrase, or term: 290
(h) "Manufacturer" means any person who manufactures or 291
imports beer for distribution to distri butors licensed in 292
Florida. Effective July 1, 2025, this term does not include a 293
craft brewery, as defined in s. 561.01. 294
Section 8. Section 563.023, Florida Statutes, is created 295
to read: 296
563.023 Relations between beer distributors and craft 297
breweries.- 298
(1) CRAFT BREWERY DISTRIBUTION AGREEMENTS. — 299
(a) A distribution agreement between a beer distributor 300
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and a craft brewery providing for, and specifying the rights and 301
duties of, a craft brewery and distributor with and in regard to 302
the sale of products of the craft brewery in this state must be 303
in writing. The terms of the agreement shall comply with, and 304
conform to, this section. 305
(b) This section applies to any new distribution 306
agreement, or the renewal of an existing distribution agreement, 307
between a beer distributor and a craft brewery, as defined in s. 308
561.01. Any existing distribution agreement between a beer 309
distributor and a craft brewery renews upon July 1, 2026, or the 310
renewal date set forth in the agreement, whichever occurs first. 311
(2) TRANSFER OF PRODUCTS. —The Beverage Law does not 312
prohibit a craft brewery from shipping products to or between 313
its breweries, between its breweries and the licensed premises 314
of a vendor, as provided in s. 561.221(2), or products that it 315
owns, without a dist ributor's license. 316
(3) AGREEMENT RESTRICTIONS. —A distribution agreement 317
between a craft brewery and a distributor may not: 318
(a) Require the craft brewery or distributor to agree to 319
renew the distribution agreement at the expiration of a term. 320
(b) Except as set forth in subsection (4) or subsection 321
(8) of this section, authorize a craft brewery or distributor to 322
terminate a distribution agreement without providing prior 323
written notice of any alleged deficiency and giving the other 324
party a reasonable opp ortunity to cure any alleged deficiency. 325
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For purposes of this paragraph, a reasonable opportunity to cure 326
is 60 days from receipt of notice of any alleged deficiency. 327
(c) Authorize the assignment of the distribution 328
agreement, in part or in whole, withou t prior consent of the 329
other party, which may not be unreasonably withheld, provided 330
the assignee possesses the financial, technical, and operational 331
skills necessary to perform under the distribution agreement. 332
(d) Authorize the craft brewery or distrib utor to 333
unilaterally amend the distribution agreement, or any document 334
referred to, or incorporated by reference in, the distribution 335
agreement. 336
(e) Require a craft brewery or distributor to mediate or 337
arbitrate disputes; however, the parties may resolve disputes by 338
retaining an independent mediator or arbitrator, while equally 339
sharing the cost. 340
(4) TERMINATION.— 341
(a) BY A CRAFT BREWERY. — 342
1. A craft brewery may terminate a distribution agreement 343
with a distributer according to the terms of the agreem ent or in 344
any of the following instances: 345
a. The assignment or attempted assignment by the 346
distributor for the benefit of creditors, the institution of 347
proceedings in bankruptcy by or against the distributor, the 348
dissolution or liquidation of the distrib utor, the insolvency of 349
the distributor, or the distributor's failure to pay for malt 350
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beverages in accordance with this section. 351
b. The felony conviction of a distributor, or any of the 352
distributor's owners who participate in the distributor's 353
management, which, in the sole judgment of the craft brewery, 354
may adversely affect the goodwill or interests of the craft 355
brewery. 356
c. Fraudulent or discriminatory conduct of the distributor 357
in any of its dealings with the craft brewery or the craft 358
brewery's products. 359
d. Revocation or suspension, for more than 31 days, of the 360
distributor's federal basic permit or any state or local license 361
required of the distributor for the normal operation of its 362
business. 363
e. Sale of malt beverages by a distributor outside it s 364
sales territory prescribed by the distribution agreement in 365
accordance with s. 563.021. 366
f. A change by the distributor, without prior consent of 367
the craft brewery, in ownership or possession of ownership 368
interests, establishment of a trust or other own ership interest, 369
entering into a buy-sell agreement, or granting an option to 370
purchase an ownership interest; however, termination under this 371
sub-subparagraph does not apply to the transfer, creation, sale, 372
gift, or grant of an ownership interest, or optio n thereon, of a 373
total aggregate of less than 10 percent of the existing 374
ownership or possession of ownership interests of the 375
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distributor or intrafamily transfer. 376
g. In the case of a craft brewery whose products represent 377
5 percent or less of a distribut or's gross annual sales, 45 378
days' written notice of termination and payment to the 379
distributor of reasonable compensation, which shall be 380
equivalent to the fair market value of the distributor's total 381
investment in the craft brewery's products subject to 382
termination. For purposes of this sub -subparagraph, fair market 383
value is calculated based on a multiple of the distributor's 384
gross profits from the sale of the craft brewery's products 12 385
months before written notice of termination. The fair market 386
value must be based on an arm's length transaction, entered into 387
without duress or threat of termination, and shall include all 388
elements of value, including goodwill and going -concern value. 389
If the parties are unable to agree on the fair market value, the 390
dispute must be resolved pursuant to subsection (10). 391
2. Termination by a craft brewery may occur no more than 392
once in a 36-month period and does not violate paragraph (5)(b). 393
3. This sub-subparagraph does not prohibit termination by 394
a craft brewery by mutual consent of the parties. 395
(b) BY A DISTRIBUTOR. — 396
1. A distributor may terminate a distribution agreement 397
according to the terms of the agreement, or in any of the 398
following instances: 399
a. The assignment or attempted assignment by the craft 400
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brewery for the benefit of creditors, the institution of 401
proceedings in bankruptcy by or against the craft brewery, the 402
dissolution or liquidation of the craft brewery, or the 403
insolvency of the craft brewery. 404
b. The felony conviction of a craft brewery, or any of th e 405
craft brewery's owners who participate in the craft brewery's 406
management, which, in the sole judgment of the distributor, may 407
adversely affect the goodwill or interests of the distributor. 408
c. Fraudulent or discriminatory conduct of the craft 409
brewery in any of its dealings with the distributor or the 410
distributor's brands. 411
d. Revocation or suspension, for more than 31 days, of the 412
craft brewery's federal basic permit or any state or local 413
license required of the craft brewery for the normal operation 414
of its business. 415
e. A change by the craft brewery, without prior consent of 416
the distributor, in ownership or possession of ownership 417
interests, establishment of a trust or other ownership interest, 418
entering into a buy-sell agreement, or granting an option to 419
purchase an ownership interest; however, termination under this 420
sub-subparagraph does not apply to the transfer, creation, sale, 421
gift, or grant of an ownership interest, or option thereon, of a 422
total aggregate of less than 10 percent of the total existi ng 423
ownership or possession of ownership interests of the craft 424
brewery or intrafamily transfer. 425
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f. In the case of a craft brewery whose products represent 426
5 percent or less of a distributor's gross annual sales, 45 427
days' written notice of termination and payment to the craft 428
brewery of reasonable compensation, which shall be equivalent to 429
five times the monthly average of purchases from the craft 430
brewery during the 12 -month period before the termination. 431
2. This subparagraph does not prohibit termination by a 432
distributor by mutual consent of the parties. 433
(5) PROHIBITED ACTIONS. —A craft brewery or a distributor 434
of malt beverages may not: 435
(a) Unreasonably discriminate or retaliate against the 436
other party in the application or performance of the terms of a 437
distribution agreement; 438
(b) Require or request payment, convey money or other 439
consideration, or accept any sum of money or other consideration 440
in exchange for the right to distribute the craft brewery's 441
product in a designated territory; however, the following 442
actions are not prohibited: 443
1. A request by a craft brewery to a distributor to pay or 444
contribute any sum of money for or toward the cost of marketing 445
the craft brewery's product if the money is spent by the craft 446
brewery in a manner and at suc h times as agreed to in writing by 447
the craft brewery and the distributor; and 448
2. Any payment pursuant to sub -subparagraph (4)(a)1.g.; 449
(c) Unreasonably withhold timely consent to a proposed 450
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sale or transfer, in part or whole, of the stock or assets of 451
the craft brewery or distributor; and the craft brewery or 452
distributor shall approve or disapprove such proposal within 30 453
days' of receipt of written notice of the proposal and all 454
requested information to enable it to pass upon the purchaser's 455
or transferee's financial, technical, and operational skills 456
necessary to perform under the distribution agreement; or 457
(d) Fail to give at least 30 days' written notice of a 458
change in ownership or possession of an ownership interest, 459
whether by sale, transfer, gift , or grant of an option. 460
(6) SALES TERRITORIES. — 461
(a) A distributor of malt beverages may not: 462
1. Refuse to enter into a distribution agreement with a 463
craft brewery, in whole or in part, except for good cause and in 464
good faith; or 465
2. Distribute a craft brewery's product 30 days' after 466
receipt of notice of termination of a distribution agreement; 467
however, any sums of money owed to the distributor, or another 468
distributor assuming the obligation to distribute the craft 469
brewery's product within the terri tory encompassed by the 470
distribution agreement, is still be owed. 471
(b) A craft brewery may not enter into a contract with 472
more than one distributor to sell any of its products within the 473
same territory or area at the same time. This paragraph does not 474
apply to contracts entered into before January 1, 2012, or the 475
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future renewal of such contracts, to the extent the existing 476
contract and the future renewal authorize different distributors 477
to sell some, but not all, of the products. 478
(7) TERRITORY REPRESENTA TION.—A distributor that enters 479
into a distribution agreement, or renews such an agreement, with 480
a craft brewery on or after July 1, 2025, must maintain a 481
physical business address and personnel to ensure that: 482
(a) The product and brand of the craft brew ery are 483
reasonably represented in the territory of the distributor for 484
which the distribution agreement applies. 485
(b) The reputation and trade name of the craft brewery are 486
reasonably promoted and protected. 487
(c) The public is fully serviced. 488
(8) REPURCHASE OF PRODUCTS.—If a distribution agreement 489
between a craft brewery and a distributor is terminated by 490
either party pursuant to subsection (4), the craft brewery shall 491
repurchase all of its product that remains in the distributor's 492
inventory upon return by the distributor, provided that the 493
"best by," "expiration," or other similar printed date is more 494
than 30 days after the date of return of the product. 495
(9) DAMAGES, ATTORNEY FEES, COSTS. —A craft brewery or a 496
distributor that violates this section sha ll be liable to the 497
injured party for actual damages sustained as a result of the 498
violation and reasonable attorney fees and costs. 499
(10) VOLUNTARY BINDING ARBITRATION. — 500
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(a) If a craft brewery or distributor cannot agree on the 501
fair market value as set forth in subsection (4), the parties 502
shall arbitrate the dispute pursuant to chapter 44, Laws of 503
Florida. 504
(b)1. If the parties fail to reach an agreement within 30 505
days' of receipt of written notice of termination, either party 506
may send within 35 days a written notice to the other party, 507
declaring the intention to proceed with voluntary binding 508
arbitration pursuant to s. 44.104. A voluntary binding 509
arbitration hearing shall be held to determine the fair market 510
value of the distributor's total investment i n the craft 511
brewery's product pursuant to the distribution agreement that is 512
subject to termination. The hearing shall conclude not later 513
than 45 days after the date the notice of intent to arbitrate is 514
sent to a party. The arbitrators shall render a decis ion not 515
later than 30 days after the conclusion of the hearing, unless 516
this time period is extended by mutual agreement of the parties. 517
The final decision may not enjoin or compel the conduct of 518
either party. 519
2. For purposes of subparagraph 1., fair mark et value is 520
the value that would be determined in an arm's length 521
transaction, entered into without duress or threat of 522
termination of an existing right, and shall include all elements 523
of value, including goodwill and going -concern value. 524
(c) The compensation of the arbitrators and any other 525
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direct costs or fees of voluntary binding arbitration held 526
pursuant to this subsection shall be equally divided between the 527
parties. Any indirect costs or fees shall be paid by the party 528
that incurs such costs or fees . 529
(d) A party that fails to participate in voluntary binding 530
arbitration pursuant to this subsection waives all rights the 531
party would have had in the arbitration and is deemed to have 532
consented to the decision rendered by the arbitrators. 533
(e) This subsection does not limit or prohibit a voluntary 534
good-faith settlement agreement entered into by the parties. 535
Section 9. Section 563.042, Florida Statutes, is created 536
to read: 537
563.042 Contract Brewing and Alternating Proprietorships. - 538
(1) Definitions.—As used in this section, the term: 539
(a) "Alternating proprietorship brewing" means an 540
agreement between a host brewer and guest brewer pursuant to 541
which the guest brewer manufactures malt beverages on the 542
licensed premises of the host brewer. 543
(b) "Contract brewer" means a licensed manufacturer of 544
malt beverages that brews malt beverages on its licensed 545
premises for a contracting brewer. 546
(c) "Contract brewing" means an agreement between a 547
contract brewer and a contracting brewer pursuant to which the 548
contract brewer brews malt beverages on its licensed premises 549
for a contracting brewer. 550
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(d) "Contracting brewer" means a licensed manufacturer of 551
malt beverages that contracts for the services of malt beverage 552
brewing with a contract brewer. 553
(e) "Guest brewer" means a licensed manufacturer of malt 554
beverages that brews malt beverages on the licensed premises of 555
the host brewer. 556
(f) "Host brewer" means a licensed manufacturer of malt 557
beverages that authorizes a guest brewer to brew malt beverages 558
on its licensed premises. 559
(2) Notwithstanding any other provision of the Beverage 560
Law, a contract brewer may transfer beer or malt beverages to a 561
contracting brewer in an amount up to the yearly production 562
amount at a contracting brewer's facility pursuant to a contract 563
brewing agreement. 564
(3) A contract brewer may contract with one or more 565
contracting brewer to manufacture beer or malt beverages for 566
such contracting brewers. The contract brewer must comply with 567
all federal and state laws related to the manufa cturing of beer, 568
including labeling laws, and is responsible for the payment of 569
all federal and state taxes on any beer manufactured pursuant to 570
this section upon removal of the beer from the manufacturer's 571
licensed premises. Title to the malt beverages re mains with the 572
contract brewer until such beverages are removed from the 573
licensed premises. 574
(4) Each entity engaged in the activities described in 575
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this section must maintain records, including the agreement 576
authorizing the manufacturing and transfer of m alt beverages, 577
records of the amount manufactured as part of the agreement, and 578
all other records required by the division, to ensure compliance 579
with the Beverage Law. 580
(5) A licensed manufacturer of malt beverages seeking to 581
engage in contract brewing sh all: 582
(a) Notify the division of its intent to operate as a 583
contract brewer or contracting brewer, before engaging in 584
contract brewing, and disclose the location of the licensed 585
premises where the contract brewing will occur, using forms 586
provided by the division. A contracting brewer may only engage 587
in the manufacturing of malt beverages at its duly licensed 588
premises and at the disclosed licensed premises of a contract 589
brewer. 590
(b) Submit a full and complete report to the division by 591
the 10th day of each month. Contract brewers shall report the 592
volume of each label of malt beverages manufactured on its 593
licensed premises. Contracting brewers shall report the volume 594
of each label of malt beverages manufactured on the licensed 595
premises of the contract brewer. 596
(c) Maintain all records required to be kept by a 597
manufacturer of malt beverages pursuant to the Beverage Law. 598
(6) Each contracting brewer's malt beverages shall at all 599
times remain separate and identifiable from the beer of all 600
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other tenants at the c ontract brewer's licensed premises. 601
(7) Before engaging in alternating proprietorship brewing, 602
each entity seeking to become a host brewer or a guest brewer 603
must qualify as a brewer with the National Revenue Center of the 604
Alcohol and Tobacco Tax and Trad e Bureau within the United 605
States Department of the Treasury and submit the following 606
information to the division, on a form approved and provided by 607
the division: 608
(a) The name of the host brewer. 609
(b) The name of the guest brewer. 610
(c) The location wh ere the alternating proprietorship 611
brewing will take place. 612
(d) The location where any product brewed pursuant to the 613
alternating proprietorship brewing arrangement will be stored. 614
(e) The amount of malt beverages to be produced under the 615
alternating proprietorship brewing arrangement. 616
(f) The timeframe in which the guest brewer will be 617
manufacturing malt beverages on the host brewer's licensed 618
premises. 619
(g) Proof of occupancy rights to the host brewer's 620
licensed premises for the duration of the alt ernating 621
proprietorship brewing arrangement. 622
(h) Any other information deemed by the division to be 623
reasonably necessary to protect the health, safety, and welfare 624
of the public, and to ensure that all applicable taxes on the 625
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malt beverages produced purs uant to an alternating 626
proprietorship brewing arrangement are remitted to the state for 627
deposit into the State Treasury. 628
(8) Host brewers and guest brewers shall submit a full and 629
complete report to the division by the 10th day of each month. 630
Guest brewers shall report the volume of each label of malt 631
beverages manufactured on each licensed premises. Host brewers 632
shall report the volume of each label of malt beverages 633
manufactured on the licensed premises of the host brewer. 634
(9) Guest brewers must compl y with all federal and state 635
laws related to the manufacturing of beer, including labeling 636
laws, and is responsible for the payment of all federal and 637
state taxes on any beer manufactured pursuant to this section 638
upon removal of the beer from the manufactu rer's licensed 639
premises. Title to the malt beverages remains with the guest 640
brewer until such beverages are removed from the licensed 641
premises. 642
(10) Manufacturers or vendors licensed pursuant to s. 643
561.221(3) may not engage in contract brewing or alterna ting 644
proprietorship brewing. 645
(11) The division may adopt rules and forms pursuant to 646
ss. 380.120.536(1) and 120.54 to implement this section. 647
Section 10. This act shall take effect July 1, 2025. 648