FL
Florida House Bill H0499

Florida 2025 Regular Session

Florida House Bill H0499 Compare Versions

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1010 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
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1414 A bill to be entitled 1
15-An act relating to malt beverages; amending 561.42, 2
16-F.S.; authorizing certain manufacturers to sell and 3
17-deliver malt beverages to vendors; amending s. 4
18-563.022, F.S.; authorizing a manufacturer to 5
19-terminate, cancel, nonrenew, and discontinue certain 6
20-contracts under certain conditions; providing that 7
21-such terminations, cancellations, nonrenewals, and 8
22-discontinuances are not violations of unlawful acts 9
23-and practices provisions; authorizing the Division of 10
24-Alcoholic Beverages and Tobacco to determine a 11
25-manufacturer's yearly production amount, upon the 12
26-manufacturer's request; providing that certain 13
27-information is prima facie evidence; authorizing the 14
28-division to adopt rules; providing applicability; 15
29-amending s. 561.221, F.S.; conforming a cross -16
30-reference; providing an effective date. 17
31- 18
32-Be It Enacted by the Legislature of the State of Florida: 19
33- 20
34- Section 1. Subsection (15) is added to section 561.42, 21
35-Florida Statutes, to read: 22
36- 561.42 Tied house evil; financial aid and assistance to 23
37-vendor by manufacturer, distributor, importer, primary American 24
38-source of supply, brand owner or registrant, or any broker, 25
15+An act relating to the beverage law; amending s. 2
16+561.01, F.S.; defining the terms "barrel" and "craft 3
17+brewery"; amending s. 561.221, F.S.; authorizing the 4
18+transferring of malt beverages and other alcoholic 5
19+beverages to a licensed facility in certain instan ces; 6
20+authorizing craft breweries to sell and deliver a 7
21+certain number of barrels of malt beverages to a 8
22+licensed vendor if certain requirements are met; 9
23+prohibiting certain manufacturers from delivering malt 10
24+beverages; authorizing craft breweries to conduc t 11
25+tastings and sales of malt beverages at specified 12
26+events; requiring the Division of Alcoholic Beverages 13
27+and Tobacco of the Department of Business and 14
28+Professional Regulation to issue a permit for such 15
29+events; revising the findings by the division require d 16
30+for licensing of vendors as a manufacturer of malt 17
31+beverages; amending s. 561.37, F.S.; removing 18
32+manufacturers and brewers from a requirement to file a 19
33+surety bond with the division; amending s. 561.5101, 20
34+F.S.; providing that the come -to-rest requirement does 21
35+not apply to craft breweries delivering malt 22
36+beverages; amending s. 561.57, F.S.; providing that 23
37+certain manufacturers are excluded from making 24
38+specified deliveries; authorizing craft breweries that 25
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4747 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
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51-sales agent, or sales person thereof, prohibited; procedure fo r 26
52-enforcement; exception. — 27
53- (15) Nothing in this section or any other provision of the 28
54-Beverage Law shall prohibit a malt beverage manufacturer who 29
55-produces less than 31,000 gallons of malt beverages within a 30
56-calendar year from selling and delivering the malt beverages 31
57-produced by the manufacturer directly to vendors. 32
58- Section 2. Subsections (12) through (21) of section 33
59-563.022, Florida Statutes, are renumbered as subsections (13) 34
60-through (22), respectively, and a new subsection (12) is added 35
61-to that section, to read: 36
62- 563.022 Relations between beer distributors and 37
63-manufacturers.— 38
64- (12) TERMINATION, CANCELLATION, NONRENEWAL, AND 39
65-DISCONTINUANCE OF FRANCHISE AGREEMENT. — 40
66- (a) Notwithstanding any provision of law relating to 41
67-franchise agreements or any o ther provision in this section, a 42
68-manufacturer may terminate, cancel, nonrenew, or discontinue a 43
69-franchise agreement when all of the following occur: 44
70- 1. The manufacturer produced less than 31,000 gallons of 45
71-beer in the 12 months before the effective date of the franchise 46
72-agreement. 47
73- 2. The manufacturer provides written notice of the 48
74-termination, cancellation, nonrenewal, or discontinuance of the 49
75-franchise agreement to the distributor not less than 24 months 50
51+deliver malt beverages to transport such beverages if 26
52+certain requirements are met; amending s. 563.02, 27
53+F.S.; conforming provisions to changes made by the 28
54+act; amending s. 563.022, F.S.; revising the 29
55+definition of the term "manufacturer" to exclude a 30
56+craft brewery by a specified date; creating s. 31
57+563.023, F.S.; providing for a distribution agreement 32
58+between a beer distributor and a craft brewery; 33
59+providing applicability; providing construction; 34
60+providing for agreement restrictions; providing for 35
61+termination of the agreement by a craft brewery and a 36
62+distributor; providing for prohibited actions of craft 37
63+breweries and distributors; providing for requirements 38
64+relating to sales territories; providing for territory 39
65+representation by distributors who enter into 40
66+distribution agreements; requiring a craft brewery to 41
67+repurchase its product upon termination of a 42
68+distribution agreement; providing for actual damages, 43
69+attorney fees, and costs; requiring arbitration of 44
70+specified disputes; establishing arbitration hearing 45
71+provisions; requiring all direct costs or fees of 46
72+arbitration to be equally divided; requiring all 47
73+indirect costs or fees to be paid by the party that 48
74+incurs such costs or fees; providing that failure to 49
75+participate in arbitration waives certain rights and 50
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8484 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
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88-before the effective date of the termination, c ancellation, 51
89-nonrenewal, or discontinuance. 52
90- 3. The manufacturer provides written notice of the 53
91-termination, cancellation, nonrenewal, or discontinuance to the 54
92-distributor not less than 36 months, but not more than 38 55
93-months, after the effective date of t he franchise agreement. 56
94- (b) A franchise agreement that is terminated, cancelled, 57
95-nonrenewed, or discontinued under this subsection is not a 58
96-violation of subsection (4), and a manufacturer is not required 59
97-to pay reasonable compensation to a distributor. 60
98- (c) At the request of a manufacturer, the division may 61
99-determine the manufacturer's yearly production amount. A 62
100-determination by the division, when certified in writing, is 63
101-prima facie evidence of the amount of beer produced by the 64
102-manufacturer in a 12 -month period. The division may adopt rules 65
103-for manufacturers to request written certification of the amount 66
104-of beer produced by a manufacturer in a given period. However, a 67
105-manufacturer may not make such request more than once in any 12 -68
106-month period. A deter mination by the division that a 69
107-manufacturer produces less than 31,000 gallons in a 12 -month 70
108-period is effective for 3 years. 71
109- (d) This subsection applies to all franchise agreements 72
110-entered into on or after July 1, 2025, and may not be waived by 73
111-any party in a franchise agreement. 74
112- Section 3. Paragraph (c) of subsection (2) of section 75
88+that such party is deemed to consent to the decisio n 51
89+rendered by the arbitrator; providing construction; 52
90+creating s. 563.042, F.S.; providing definitions; 53
91+authorizing the transfer of beer or malt beverages 54
92+between a contract brewer and a contracting brewer in 55
93+a specified amount pursuant to a contract brewi ng 56
94+agreement; authorizing a contract brewer to contract 57
95+with more than one contracting brewer; requiring that 58
96+a contract brewer comply with specified laws; 59
97+providing that a contract brewer is responsible for 60
98+the payment of specified taxes; providing that t itle 61
99+remains with the contract brewer until beverages are 62
100+removed from licensed premises; requiring the contract 63
101+brewer and contracting brewer to maintain specified 64
102+records; providing that a licensed manufacturer 65
103+seeking to engage in contract brewing must meet 66
104+certain requirements; requiring contracting brewers' 67
105+malt beverages to remain separate and identifiable 68
106+from other tenants' beer at the contract brewer's 69
107+licensed premises; requiring a specified qualification 70
108+and the submitting of certain information before 71
109+engaging in alternating proprietorship brewing; 72
110+requiring host brewers and guest brewers to submit to 73
111+the division a specified report by a specified date 74
112+each month; requiring guest brewers to comply with 75
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121121 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
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125-561.221, Florida Statutes, is amended to read: 76
126- 561.221 Licensing of manufacturers and distributors as 77
127-vendors and of vendors as manufacturers; conditions and 78
128-limitations.— 79
129- (2) 80
130- (c) Notwithstanding any other provision of the Beverage 81
131-Law, a manufacturer holding multiple manufacturing licenses may 82
132-transfer malt beverages to a licensed facility, as provided in 83
133-s. 563.022(15)(d) s. 563.022(14)(d), in an amount up to th e 84
134-yearly production amount at the receiving facility. Malt 85
135-beverages and other alcoholic beverages manufactured by another 86
136-licensed manufacturer, including any malt beverages that are 87
137-owned in whole or in part by the manufacturer but are brewed by 88
138-another manufacturer, must be obtained through a licensed 89
139-distributor that is not also a licensed manufacturer, a licensed 90
140-broker or sales agent, or a licensed importer. 91
141- Section 4. This act shall take effect July 1, 2025. 92
125+specified laws; providing that guest brewers are 76
126+responsible for payment of specified taxes; providing 77
127+that title of malt beverages remains with guest brewer 78
128+until such beverages are removed from the licensed 79
129+premises; prohibiting certain manufacturers and 80
130+vendors from engaging in contract brewing o r 81
131+alternating proprietorship brewing; providing for the 82
132+adoption of rules and forms; providing an effective 83
133+date. 84
134+ 85
135+Be It Enacted by the Legislature of the State of Florida: 86
136+ 87
137+ Section 1. Subsections (22) and (23) are added to section 88
138+561.01, Florida Statutes, to read: 89
139+ 561.01 Definitions. —As used in the Beverage Law: 90
140+ (22) "Barrel" means a quantity of 31 gallons. 91
141+ (23) "Craft brewery" means a manufacturer, whether 92
142+licensed within or without this state, that produces in total 93
143+less than 60,000 barrel s of malt beverages per calendar year. 94
144+ Section 2. Subsection (2) and paragraph (a) of subsection 95
145+(3) of section 561.221, Florida Statutes, are amended to read: 96
146+ 561.221 Licensing of manufacturers and distributors as 97
147+vendors and of vendors as manufactu rers; conditions and 98
148+limitations.— 99
149+ (2)(a) Notwithstanding s. 561.22, s. 561.42, or any other 100
150+
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158+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
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160+
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162+provision of the Beverage Law, the division is authorized to 101
163+issue vendor's licenses to a manufacturer of malt beverages, 102
164+even if such manufacturer is also licen sed as a distributor, for 103
165+the sale of alcoholic beverages on property consisting of a 104
166+single complex, which property shall include a brewery. However, 105
167+such property may be divided by no more than one public street 106
168+or highway. 107
169+ (b) The licensed vendor prem ises shall be included on the 108
170+sketch or diagram defining the licensed premises submitted with 109
171+the manufacturer's license application pursuant to s. 110
172+561.01(11). All sketch or diagram revisions by the manufacturer 111
173+must be approved by the division, verifying that the vendor 112
174+premises operated by the licensed manufacturer is owned or 113
175+leased by the manufacturer and is located on the licensed 114
176+manufacturing premises. 115
177+ (c) Notwithstanding any other provision of the Beverage 116
178+Law, a manufacturer holding multiple manu facturing licenses may 117
179+transfer malt beverages to a licensed facility, as provided in 118
180+ss. 563.022(14)(d) and 563.023(2) s. 563.022(14)(d), in an 119
181+amount up to the yearly production amount at the receiving 120
182+facility. Malt beverages and other alcoholic beverag es that are 121
183+manufactured under contract or by an alternating proprietorship 122
184+by another licensed manufacturer , including any malt beverages 123
185+and that are owned in whole or in part by the manufacturer, may 124
186+be transferred to the licensed facility, as provided in ss. 125
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195+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
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199+563.022(14)(d) and 563.023(2). Malt beverages and other 126
200+alcoholic beverages that are not owned by the manufacturer and 127
201+but are brewed by another manufacturer, must be obtained through 128
202+a licensed distributor that is not also a licensed manufacturer, 129
203+a licensed broker or sales agent, or a licensed importer. 130
204+ (d) A craft brewery may sell and deliver up to 5,000 131
205+barrels of malt beverages per year to a licensed vendor, 132
206+provided that: 133
207+ 1. Any malt beverages sold and delivered under this 134
208+subsection that are not otherwise registered by a licensed 135
209+distributor shall be registered with the division by the craft 136
210+brewery. 137
211+ 2. The craft brewery complies with ss. 561.42 and 561.423, 138
212+as applicable, to the same extent as if the manufacturer was a 139
213+distributor. 140
214+ 3. The craft brewery notifies the distributor of any self -141
215+distribution delivery by electronic or other means. 142
216+ (e)(d) A manufacturer possessing a vendor's license under 143
217+this subsection that produces more than 60,000 barrels of malt 144
218+beverages per year may not is not permitted to make deliveries 145
219+under s. 561.57(1). 146
220+ (f)(e) The division may is authorized to issue up to eight 147
221+vendor's licenses to a manufacturer of malt beverages pursuant 148
222+to this subsection. 149
223+ (g)1. A craft brewery licensed under this subsection may 150
224+
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232+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
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236+conduct tastings and sales of malt beverages produced by the 151
237+craft brewery at Florida fairs, trade shows, farmers markets, 152
238+expositions, and festivals. A craft brewery must pay all entry 153
239+fees and must have a brewery representative present during the 154
240+event. 155
241+ 2. The division shall issue a permit to a craft brewery 156
242+for the purposes provided in subparagraph 1. Any permit issued 157
243+pursuant to this subparagraph is limited to the place and 158
244+duration of the event. 159
245+ (3)(a) Notwithstanding other provisions of the B everage 160
246+Law, any vendor licensed in this state may be licensed as a 161
247+manufacturer of malt beverages upon a finding by the division 162
248+that: 163
249+ 1. The vendor will be engaged in brewing malt beverages at 164
250+a single location and in an amount which will not exceed 5,000 165
251+barrels of beer 10,000 kegs per year. For purposes of this 166
252+subsection, the term "keg" means 15.5 gallons. 167
253+ 2. The malt beverages so brewed will be sold to consumers 168
254+for consumption on the vendor's licensed premises or on 169
255+contiguous licensed premises o wned by the vendor. 170
256+ Section 3. Section 561.37, Florida Statutes, is amended to 171
257+read: 172
258+ 561.37 Bond for payment of taxes. —Each manufacturer and 173
259+each distributor shall file with the division a surety bond 174
260+acceptable to the division in the sum of $25,000 as surety for 175
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269+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
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273+the payment of all taxes, provided, however, that when in the 176
274+discretion of the division the amount of business done by the 177
275+manufacturer or distributor is of such volume that a bond of 178
276+less than $25,000 will be adequate to secure the payment of all 179
277+taxes assessed or authorized by the Beverage Law, the division 180
278+may accept a bond in a lesser sum than $25,000, but in no event 181
279+shall it accept a bond of less than $10,000, and it may at any 182
280+time in its discretion require any bond in an amount less t han 183
281+$25,000 to be increased so as not to exceed $25,000; provided, 184
282+however, that the amount of bond required for a brewer shall be 185
283+$20,000, except that where, in the discretion of the division, 186
284+the amount of business done by the brewer is of such volume th at 187
285+a bond of less than $20,000 will be adequate to secure the 188
286+payment of all taxes assessed or authorized by the Beverage Law, 189
287+the division may accept a bond in a lesser sum than $20,000, but 190
288+in no event shall it accept a bond of less than $10,000, and it 191
289+may at any time in its discretion require any bond in an amount 192
290+less than $20,000 to be increased so as not to exceed $20,000; 193
291+provided further that the amount of the bond required for a wine 194
292+or wine and cordial manufacturer shall be $5,000, except that, 195
293+in the case of a manufacturer engaged solely in the experimental 196
294+manufacture of wines and cordials from Florida products, where 197
295+in the discretion of the division the amount of business done by 198
296+such manufacturer is of such volume that a bond of less than 199
297+$5,000 will be adequate to secure the payment of all taxes 200
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306+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
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310+assessed or authorized by the Beverage Law, the division may 201
311+accept a bond in a lesser sum than $5,000, but in no event shall 202
312+it accept a bond of less than $1,000 and it may at any time in 203
313+its discretion require a bond in an amount less than $5,000 to 204
314+be increased so as not to exceed $5,000; provided, further, that 205
315+the amount of bond required for a distributor who sells only 206
316+beverages containing not more than 4.007 percent of alcohol by 207
317+volume, in counties where the sale of intoxicating liquors, 208
318+wines, and beers is prohibited, and to distributors who sell 209
319+only beverages containing not more than 17.259 percent of 210
320+alcohol by volume and wines regardless of alcoholic content, in 211
321+counties where the sale of i ntoxicating liquors, wines, and 212
322+beers is permitted, shall file with the division a surety bond 213
323+acceptable to the division in the sum of $25,000, as surety for 214
324+the payment of all taxes; provided, however, that where in the 215
325+discretion of the division the amo unt of business done by such 216
326+distributor is of such volume that a bond of less than $25,000 217
327+will be adequate to secure the payment of all taxes assessed or 218
328+authorized by the Beverage Law the division may accept a bond in 219
329+a less sum than $25,000 but in no e vent shall it accept a bond 220
330+less than $1,000 and it may at any time in its discretion 221
331+require any bond in an amount less than $25,000 to be increased 222
332+so as not to exceed $25,000; provided, further, that the amount 223
333+of bond required for a distributor in a co unty having a 224
334+population of 15,000 or less who procures a license by which his 225
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347+or her sales are restricted to distributors and vendors who have 226
348+obtained licenses in the same county, shall be $5,000. 227
349+ Section 4. Subsection (3) is added to section 561.510 1, 228
350+Florida Statutes, to read: 229
351+ 561.5101 Come-to-rest requirement; exceptions; penalties. — 230
352+ (3) This section does not apply to a craft brewery 231
353+delivering malt beverages as provided in s. 561.221(2)(d). 232
354+ Section 5. Subsections (1) and (2) of section 561.57, 233
355+Florida Statutes, are amended to read: 234
356+ 561.57 Deliveries by licensees. — 235
357+ (1) Vendors may shall be permitted to make deliveries away 236
358+from their places of business of sales actually made at the 237
359+licensed place of business; provided, telephone, elec tronic, or 238
360+mail orders received at a vendor's licensed place of business is 239
361+shall be construed as a sale actually made at the vendor's 240
362+licensed place of business. Deliveries made by a vendor away 241
363+from his or her place of business may be made in vehicles th at 242
364+are owned or leased by the vendor or in a third -party vehicle 243
365+pursuant to a contract with a third party with whom the vendor 244
366+has contracted to make deliveries, including, but not limited 245
367+to, common carriers. By acceptance of an alcoholic beverage 246
368+license, the vendor agrees that vehicles that are owned or 247
369+leased by the vendor shall always be subject to inspection and 248
370+search without a search warrant for the purpose of ascertaining 249
371+that all provisions of the alcoholic beverage laws are complied 250
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384+with by authorized employees of the division and also by 251
385+sheriffs, deputy sheriffs, and police officers during business 252
386+hours or other times the vehicle is being used to transport or 253
387+deliver alcoholic beverages. A manufacturer possessing a 254
388+vendor's license under s. 56 1.221(2) that produces more than 255
389+60,000 barrels of malt beverages per year may not is not 256
390+permitted to make deliveries under this subsection. 257
391+ (2) Deliveries made by a manufacturer or distributor away 258
392+from his or her place of business may be made only in vehicles 259
393+that are owned or leased by the licensee. However, a craft 260
394+brewery that delivers malt beverages, as authorized by s. 261
395+561.221(2)(d), may transport malt beverages if the vehicle used 262
396+is owned or leased by the manufacturer or any person who has 263
397+been disclosed in writing to the division. By acceptance of an 264
398+alcoholic beverage license and the use of such vehicles, the 265
399+licensee agrees that such vehicle shall always be subject to be 266
400+inspected and searched without a search warrant, for the purpose 267
401+of ascertaining that all provisions of the alcoholic beverage 268
402+laws are complied with, by authorized employees of the division 269
403+and also by sheriffs, deputy sheriffs, and police officers 270
404+during business hours or other times the vehicle is being used 271
405+to transport or deliver alcoholic beverages. 272
406+ Section 6. Subsection (2) of section 563.02, Florida 273
407+Statutes, is amended to read: 274
408+ 563.02 License fees; vendors; manufacturers and 275
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417+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
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421+distributors.— 276
422+ (2) Each manufacturer engaged in the business of brewing 277
423+only malt beverages shall pay an annual state license tax of 278
424+$3,000 for each plant or branch he or she may operate. However, 279
425+each manufacturer engaged in the business of brewing less than 280
426+60,000 barrels 10,000 kegs of malt beverages annually pursuant 281
427+to s. 561.221(2), or for consumption on the premises pursuant to 282
428+s. 561.221(3), shall pay an annual state license tax of $500 for 283
429+each plant or branch. 284
430+ Section 7. Paragraph (h) of subsection (2) of section 285
431+563.022, Florida Statutes, is amended to read: 286
432+ 563.022 Relations between beer distributors and 287
433+manufacturers.— 288
434+ (2) DEFINITIONS.—In construing this section, unless the 289
435+context otherwise requires, the word, phrase, or term: 290
436+ (h) "Manufacturer" means any person who manufactures or 291
437+imports beer for distribution to distri butors licensed in 292
438+Florida. Effective July 1, 2025, this term does not include a 293
439+craft brewery, as defined in s. 561.01. 294
440+ Section 8. Section 563.023, Florida Statutes, is created 295
441+to read: 296
442+ 563.023 Relations between beer distributors and craft 297
443+breweries.- 298
444+ (1) CRAFT BREWERY DISTRIBUTION AGREEMENTS. — 299
445+ (a) A distribution agreement between a beer distributor 300
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458+and a craft brewery providing for, and specifying the rights and 301
459+duties of, a craft brewery and distributor with and in regard to 302
460+the sale of products of the craft brewery in this state must be 303
461+in writing. The terms of the agreement shall comply with, and 304
462+conform to, this section. 305
463+ (b) This section applies to any new distribution 306
464+agreement, or the renewal of an existing distribution agreement, 307
465+between a beer distributor and a craft brewery, as defined in s. 308
466+561.01. Any existing distribution agreement between a beer 309
467+distributor and a craft brewery renews upon July 1, 2026, or the 310
468+renewal date set forth in the agreement, whichever occurs first. 311
469+ (2) TRANSFER OF PRODUCTS. —The Beverage Law does not 312
470+prohibit a craft brewery from shipping products to or between 313
471+its breweries, between its breweries and the licensed premises 314
472+of a vendor, as provided in s. 561.221(2), or products that it 315
473+owns, without a dist ributor's license. 316
474+ (3) AGREEMENT RESTRICTIONS. —A distribution agreement 317
475+between a craft brewery and a distributor may not: 318
476+ (a) Require the craft brewery or distributor to agree to 319
477+renew the distribution agreement at the expiration of a term. 320
478+ (b) Except as set forth in subsection (4) or subsection 321
479+(8) of this section, authorize a craft brewery or distributor to 322
480+terminate a distribution agreement without providing prior 323
481+written notice of any alleged deficiency and giving the other 324
482+party a reasonable opp ortunity to cure any alleged deficiency. 325
483+
484+HB 499 2025
485+
486+
487+
488+CODING: Words stricken are deletions; words underlined are additions.
489+hb499-00
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491+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
492+
493+
494+
495+For purposes of this paragraph, a reasonable opportunity to cure 326
496+is 60 days from receipt of notice of any alleged deficiency. 327
497+ (c) Authorize the assignment of the distribution 328
498+agreement, in part or in whole, withou t prior consent of the 329
499+other party, which may not be unreasonably withheld, provided 330
500+the assignee possesses the financial, technical, and operational 331
501+skills necessary to perform under the distribution agreement. 332
502+ (d) Authorize the craft brewery or distrib utor to 333
503+unilaterally amend the distribution agreement, or any document 334
504+referred to, or incorporated by reference in, the distribution 335
505+agreement. 336
506+ (e) Require a craft brewery or distributor to mediate or 337
507+arbitrate disputes; however, the parties may resolve disputes by 338
508+retaining an independent mediator or arbitrator, while equally 339
509+sharing the cost. 340
510+ (4) TERMINATION.— 341
511+ (a) BY A CRAFT BREWERY. — 342
512+ 1. A craft brewery may terminate a distribution agreement 343
513+with a distributer according to the terms of the agreem ent or in 344
514+any of the following instances: 345
515+ a. The assignment or attempted assignment by the 346
516+distributor for the benefit of creditors, the institution of 347
517+proceedings in bankruptcy by or against the distributor, the 348
518+dissolution or liquidation of the distrib utor, the insolvency of 349
519+the distributor, or the distributor's failure to pay for malt 350
520+
521+HB 499 2025
522+
523+
524+
525+CODING: Words stricken are deletions; words underlined are additions.
526+hb499-00
527+Page 15 of 26
528+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
529+
530+
531+
532+beverages in accordance with this section. 351
533+ b. The felony conviction of a distributor, or any of the 352
534+distributor's owners who participate in the distributor's 353
535+management, which, in the sole judgment of the craft brewery, 354
536+may adversely affect the goodwill or interests of the craft 355
537+brewery. 356
538+ c. Fraudulent or discriminatory conduct of the distributor 357
539+in any of its dealings with the craft brewery or the craft 358
540+brewery's products. 359
541+ d. Revocation or suspension, for more than 31 days, of the 360
542+distributor's federal basic permit or any state or local license 361
543+required of the distributor for the normal operation of its 362
544+business. 363
545+ e. Sale of malt beverages by a distributor outside it s 364
546+sales territory prescribed by the distribution agreement in 365
547+accordance with s. 563.021. 366
548+ f. A change by the distributor, without prior consent of 367
549+the craft brewery, in ownership or possession of ownership 368
550+interests, establishment of a trust or other own ership interest, 369
551+entering into a buy-sell agreement, or granting an option to 370
552+purchase an ownership interest; however, termination under this 371
553+sub-subparagraph does not apply to the transfer, creation, sale, 372
554+gift, or grant of an ownership interest, or optio n thereon, of a 373
555+total aggregate of less than 10 percent of the existing 374
556+ownership or possession of ownership interests of the 375
557+
558+HB 499 2025
559+
560+
561+
562+CODING: Words stricken are deletions; words underlined are additions.
563+hb499-00
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565+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
566+
567+
568+
569+distributor or intrafamily transfer. 376
570+ g. In the case of a craft brewery whose products represent 377
571+5 percent or less of a distribut or's gross annual sales, 45 378
572+days' written notice of termination and payment to the 379
573+distributor of reasonable compensation, which shall be 380
574+equivalent to the fair market value of the distributor's total 381
575+investment in the craft brewery's products subject to 382
576+termination. For purposes of this sub -subparagraph, fair market 383
577+value is calculated based on a multiple of the distributor's 384
578+gross profits from the sale of the craft brewery's products 12 385
579+months before written notice of termination. The fair market 386
580+value must be based on an arm's length transaction, entered into 387
581+without duress or threat of termination, and shall include all 388
582+elements of value, including goodwill and going -concern value. 389
583+If the parties are unable to agree on the fair market value, the 390
584+dispute must be resolved pursuant to subsection (10). 391
585+ 2. Termination by a craft brewery may occur no more than 392
586+once in a 36-month period and does not violate paragraph (5)(b). 393
587+ 3. This sub-subparagraph does not prohibit termination by 394
588+a craft brewery by mutual consent of the parties. 395
589+ (b) BY A DISTRIBUTOR. — 396
590+ 1. A distributor may terminate a distribution agreement 397
591+according to the terms of the agreement, or in any of the 398
592+following instances: 399
593+ a. The assignment or attempted assignment by the craft 400
594+
595+HB 499 2025
596+
597+
598+
599+CODING: Words stricken are deletions; words underlined are additions.
600+hb499-00
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602+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
603+
604+
605+
606+brewery for the benefit of creditors, the institution of 401
607+proceedings in bankruptcy by or against the craft brewery, the 402
608+dissolution or liquidation of the craft brewery, or the 403
609+insolvency of the craft brewery. 404
610+ b. The felony conviction of a craft brewery, or any of th e 405
611+craft brewery's owners who participate in the craft brewery's 406
612+management, which, in the sole judgment of the distributor, may 407
613+adversely affect the goodwill or interests of the distributor. 408
614+ c. Fraudulent or discriminatory conduct of the craft 409
615+brewery in any of its dealings with the distributor or the 410
616+distributor's brands. 411
617+ d. Revocation or suspension, for more than 31 days, of the 412
618+craft brewery's federal basic permit or any state or local 413
619+license required of the craft brewery for the normal operation 414
620+of its business. 415
621+ e. A change by the craft brewery, without prior consent of 416
622+the distributor, in ownership or possession of ownership 417
623+interests, establishment of a trust or other ownership interest, 418
624+entering into a buy-sell agreement, or granting an option to 419
625+purchase an ownership interest; however, termination under this 420
626+sub-subparagraph does not apply to the transfer, creation, sale, 421
627+gift, or grant of an ownership interest, or option thereon, of a 422
628+total aggregate of less than 10 percent of the total existi ng 423
629+ownership or possession of ownership interests of the craft 424
630+brewery or intrafamily transfer. 425
631+
632+HB 499 2025
633+
634+
635+
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637+hb499-00
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639+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
640+
641+
642+
643+ f. In the case of a craft brewery whose products represent 426
644+5 percent or less of a distributor's gross annual sales, 45 427
645+days' written notice of termination and payment to the craft 428
646+brewery of reasonable compensation, which shall be equivalent to 429
647+five times the monthly average of purchases from the craft 430
648+brewery during the 12 -month period before the termination. 431
649+ 2. This subparagraph does not prohibit termination by a 432
650+distributor by mutual consent of the parties. 433
651+ (5) PROHIBITED ACTIONS. —A craft brewery or a distributor 434
652+of malt beverages may not: 435
653+ (a) Unreasonably discriminate or retaliate against the 436
654+other party in the application or performance of the terms of a 437
655+distribution agreement; 438
656+ (b) Require or request payment, convey money or other 439
657+consideration, or accept any sum of money or other consideration 440
658+in exchange for the right to distribute the craft brewery's 441
659+product in a designated territory; however, the following 442
660+actions are not prohibited: 443
661+ 1. A request by a craft brewery to a distributor to pay or 444
662+contribute any sum of money for or toward the cost of marketing 445
663+the craft brewery's product if the money is spent by the craft 446
664+brewery in a manner and at suc h times as agreed to in writing by 447
665+the craft brewery and the distributor; and 448
666+ 2. Any payment pursuant to sub -subparagraph (4)(a)1.g.; 449
667+ (c) Unreasonably withhold timely consent to a proposed 450
668+
669+HB 499 2025
670+
671+
672+
673+CODING: Words stricken are deletions; words underlined are additions.
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676+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
677+
678+
679+
680+sale or transfer, in part or whole, of the stock or assets of 451
681+the craft brewery or distributor; and the craft brewery or 452
682+distributor shall approve or disapprove such proposal within 30 453
683+days' of receipt of written notice of the proposal and all 454
684+requested information to enable it to pass upon the purchaser's 455
685+or transferee's financial, technical, and operational skills 456
686+necessary to perform under the distribution agreement; or 457
687+ (d) Fail to give at least 30 days' written notice of a 458
688+change in ownership or possession of an ownership interest, 459
689+whether by sale, transfer, gift , or grant of an option. 460
690+ (6) SALES TERRITORIES. — 461
691+ (a) A distributor of malt beverages may not: 462
692+ 1. Refuse to enter into a distribution agreement with a 463
693+craft brewery, in whole or in part, except for good cause and in 464
694+good faith; or 465
695+ 2. Distribute a craft brewery's product 30 days' after 466
696+receipt of notice of termination of a distribution agreement; 467
697+however, any sums of money owed to the distributor, or another 468
698+distributor assuming the obligation to distribute the craft 469
699+brewery's product within the terri tory encompassed by the 470
700+distribution agreement, is still be owed. 471
701+ (b) A craft brewery may not enter into a contract with 472
702+more than one distributor to sell any of its products within the 473
703+same territory or area at the same time. This paragraph does not 474
704+apply to contracts entered into before January 1, 2012, or the 475
705+
706+HB 499 2025
707+
708+
709+
710+CODING: Words stricken are deletions; words underlined are additions.
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713+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
714+
715+
716+
717+future renewal of such contracts, to the extent the existing 476
718+contract and the future renewal authorize different distributors 477
719+to sell some, but not all, of the products. 478
720+ (7) TERRITORY REPRESENTA TION.—A distributor that enters 479
721+into a distribution agreement, or renews such an agreement, with 480
722+a craft brewery on or after July 1, 2025, must maintain a 481
723+physical business address and personnel to ensure that: 482
724+ (a) The product and brand of the craft brew ery are 483
725+reasonably represented in the territory of the distributor for 484
726+which the distribution agreement applies. 485
727+ (b) The reputation and trade name of the craft brewery are 486
728+reasonably promoted and protected. 487
729+ (c) The public is fully serviced. 488
730+ (8) REPURCHASE OF PRODUCTS.—If a distribution agreement 489
731+between a craft brewery and a distributor is terminated by 490
732+either party pursuant to subsection (4), the craft brewery shall 491
733+repurchase all of its product that remains in the distributor's 492
734+inventory upon return by the distributor, provided that the 493
735+"best by," "expiration," or other similar printed date is more 494
736+than 30 days after the date of return of the product. 495
737+ (9) DAMAGES, ATTORNEY FEES, COSTS. —A craft brewery or a 496
738+distributor that violates this section sha ll be liable to the 497
739+injured party for actual damages sustained as a result of the 498
740+violation and reasonable attorney fees and costs. 499
741+ (10) VOLUNTARY BINDING ARBITRATION. — 500
742+
743+HB 499 2025
744+
745+
746+
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750+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
751+
752+
753+
754+ (a) If a craft brewery or distributor cannot agree on the 501
755+fair market value as set forth in subsection (4), the parties 502
756+shall arbitrate the dispute pursuant to chapter 44, Laws of 503
757+Florida. 504
758+ (b)1. If the parties fail to reach an agreement within 30 505
759+days' of receipt of written notice of termination, either party 506
760+may send within 35 days a written notice to the other party, 507
761+declaring the intention to proceed with voluntary binding 508
762+arbitration pursuant to s. 44.104. A voluntary binding 509
763+arbitration hearing shall be held to determine the fair market 510
764+value of the distributor's total investment i n the craft 511
765+brewery's product pursuant to the distribution agreement that is 512
766+subject to termination. The hearing shall conclude not later 513
767+than 45 days after the date the notice of intent to arbitrate is 514
768+sent to a party. The arbitrators shall render a decis ion not 515
769+later than 30 days after the conclusion of the hearing, unless 516
770+this time period is extended by mutual agreement of the parties. 517
771+The final decision may not enjoin or compel the conduct of 518
772+either party. 519
773+ 2. For purposes of subparagraph 1., fair mark et value is 520
774+the value that would be determined in an arm's length 521
775+transaction, entered into without duress or threat of 522
776+termination of an existing right, and shall include all elements 523
777+of value, including goodwill and going -concern value. 524
778+ (c) The compensation of the arbitrators and any other 525
779+
780+HB 499 2025
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782+
783+
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787+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
788+
789+
790+
791+direct costs or fees of voluntary binding arbitration held 526
792+pursuant to this subsection shall be equally divided between the 527
793+parties. Any indirect costs or fees shall be paid by the party 528
794+that incurs such costs or fees . 529
795+ (d) A party that fails to participate in voluntary binding 530
796+arbitration pursuant to this subsection waives all rights the 531
797+party would have had in the arbitration and is deemed to have 532
798+consented to the decision rendered by the arbitrators. 533
799+ (e) This subsection does not limit or prohibit a voluntary 534
800+good-faith settlement agreement entered into by the parties. 535
801+ Section 9. Section 563.042, Florida Statutes, is created 536
802+to read: 537
803+ 563.042 Contract Brewing and Alternating Proprietorships. - 538
804+ (1) Definitions.—As used in this section, the term: 539
805+ (a) "Alternating proprietorship brewing" means an 540
806+agreement between a host brewer and guest brewer pursuant to 541
807+which the guest brewer manufactures malt beverages on the 542
808+licensed premises of the host brewer. 543
809+ (b) "Contract brewer" means a licensed manufacturer of 544
810+malt beverages that brews malt beverages on its licensed 545
811+premises for a contracting brewer. 546
812+ (c) "Contract brewing" means an agreement between a 547
813+contract brewer and a contracting brewer pursuant to which the 548
814+contract brewer brews malt beverages on its licensed premises 549
815+for a contracting brewer. 550
816+
817+HB 499 2025
818+
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820+
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824+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
825+
826+
827+
828+ (d) "Contracting brewer" means a licensed manufacturer of 551
829+malt beverages that contracts for the services of malt beverage 552
830+brewing with a contract brewer. 553
831+ (e) "Guest brewer" means a licensed manufacturer of malt 554
832+beverages that brews malt beverages on the licensed premises of 555
833+the host brewer. 556
834+ (f) "Host brewer" means a licensed manufacturer of malt 557
835+beverages that authorizes a guest brewer to brew malt beverages 558
836+on its licensed premises. 559
837+ (2) Notwithstanding any other provision of the Beverage 560
838+Law, a contract brewer may transfer beer or malt beverages to a 561
839+contracting brewer in an amount up to the yearly production 562
840+amount at a contracting brewer's facility pursuant to a contract 563
841+brewing agreement. 564
842+ (3) A contract brewer may contract with one or more 565
843+contracting brewer to manufacture beer or malt beverages for 566
844+such contracting brewers. The contract brewer must comply with 567
845+all federal and state laws related to the manufa cturing of beer, 568
846+including labeling laws, and is responsible for the payment of 569
847+all federal and state taxes on any beer manufactured pursuant to 570
848+this section upon removal of the beer from the manufacturer's 571
849+licensed premises. Title to the malt beverages re mains with the 572
850+contract brewer until such beverages are removed from the 573
851+licensed premises. 574
852+ (4) Each entity engaged in the activities described in 575
853+
854+HB 499 2025
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857+
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861+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
862+
863+
864+
865+this section must maintain records, including the agreement 576
866+authorizing the manufacturing and transfer of m alt beverages, 577
867+records of the amount manufactured as part of the agreement, and 578
868+all other records required by the division, to ensure compliance 579
869+with the Beverage Law. 580
870+ (5) A licensed manufacturer of malt beverages seeking to 581
871+engage in contract brewing sh all: 582
872+ (a) Notify the division of its intent to operate as a 583
873+contract brewer or contracting brewer, before engaging in 584
874+contract brewing, and disclose the location of the licensed 585
875+premises where the contract brewing will occur, using forms 586
876+provided by the division. A contracting brewer may only engage 587
877+in the manufacturing of malt beverages at its duly licensed 588
878+premises and at the disclosed licensed premises of a contract 589
879+brewer. 590
880+ (b) Submit a full and complete report to the division by 591
881+the 10th day of each month. Contract brewers shall report the 592
882+volume of each label of malt beverages manufactured on its 593
883+licensed premises. Contracting brewers shall report the volume 594
884+of each label of malt beverages manufactured on the licensed 595
885+premises of the contract brewer. 596
886+ (c) Maintain all records required to be kept by a 597
887+manufacturer of malt beverages pursuant to the Beverage Law. 598
888+ (6) Each contracting brewer's malt beverages shall at all 599
889+times remain separate and identifiable from the beer of all 600
890+
891+HB 499 2025
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898+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
899+
900+
901+
902+other tenants at the c ontract brewer's licensed premises. 601
903+ (7) Before engaging in alternating proprietorship brewing, 602
904+each entity seeking to become a host brewer or a guest brewer 603
905+must qualify as a brewer with the National Revenue Center of the 604
906+Alcohol and Tobacco Tax and Trad e Bureau within the United 605
907+States Department of the Treasury and submit the following 606
908+information to the division, on a form approved and provided by 607
909+the division: 608
910+ (a) The name of the host brewer. 609
911+ (b) The name of the guest brewer. 610
912+ (c) The location wh ere the alternating proprietorship 611
913+brewing will take place. 612
914+ (d) The location where any product brewed pursuant to the 613
915+alternating proprietorship brewing arrangement will be stored. 614
916+ (e) The amount of malt beverages to be produced under the 615
917+alternating proprietorship brewing arrangement. 616
918+ (f) The timeframe in which the guest brewer will be 617
919+manufacturing malt beverages on the host brewer's licensed 618
920+premises. 619
921+ (g) Proof of occupancy rights to the host brewer's 620
922+licensed premises for the duration of the alt ernating 621
923+proprietorship brewing arrangement. 622
924+ (h) Any other information deemed by the division to be 623
925+reasonably necessary to protect the health, safety, and welfare 624
926+of the public, and to ensure that all applicable taxes on the 625
927+
928+HB 499 2025
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935+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
936+
937+
938+
939+malt beverages produced purs uant to an alternating 626
940+proprietorship brewing arrangement are remitted to the state for 627
941+deposit into the State Treasury. 628
942+ (8) Host brewers and guest brewers shall submit a full and 629
943+complete report to the division by the 10th day of each month. 630
944+Guest brewers shall report the volume of each label of malt 631
945+beverages manufactured on each licensed premises. Host brewers 632
946+shall report the volume of each label of malt beverages 633
947+manufactured on the licensed premises of the host brewer. 634
948+ (9) Guest brewers must compl y with all federal and state 635
949+laws related to the manufacturing of beer, including labeling 636
950+laws, and is responsible for the payment of all federal and 637
951+state taxes on any beer manufactured pursuant to this section 638
952+upon removal of the beer from the manufactu rer's licensed 639
953+premises. Title to the malt beverages remains with the guest 640
954+brewer until such beverages are removed from the licensed 641
955+premises. 642
956+ (10) Manufacturers or vendors licensed pursuant to s. 643
957+561.221(3) may not engage in contract brewing or alterna ting 644
958+proprietorship brewing. 645
959+ (11) The division may adopt rules and forms pursuant to 646
960+ss. 380.120.536(1) and 120.54 to implement this section. 647
961+ Section 10. This act shall take effect July 1, 2025. 648