Bill Text: FL S0242 | 2019 | Regular Session | Introduced
Bill Title: Beverage Law
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-05-03 - Died in Innovation, Industry, and Technology [S0242 Detail]
Download: Florida-2019-S0242-Introduced.html
Florida Senate - 2019 SB 242 By Senator Hutson 7-00479-19 2019242__ 1 A bill to be entitled 2 An act relating to the Beverage Law; amending s. 3 561.42, F.S.; prohibiting certain entities and persons 4 from directly or indirectly assisting any vendor in 5 certain ways; prohibiting a licensed vendor from 6 accepting certain items and services; authorizing the 7 Division of Alcoholic Beverages and Tobacco to impose 8 administrative sanctions for a violation of certain 9 limitations established in the Beverage Law; 10 prohibiting a vendor from displaying certain signs in 11 the window or windows of his or her licensed premises; 12 authorizing certain entities and persons to give, 13 lend, furnish, or sell certain advertising material to 14 certain vendors; defining the term “decalcomania”; 15 providing exemptions relating to tied house evil for 16 certain sales and purchases of merchandise; providing 17 conditions for the exemptions; defining the term 18 “merchandise”; prohibiting a manufacturer or importer 19 of malt beverages from soliciting or receiving any 20 portion of certain payments from its distributors; 21 defining the term “negotiated at arm’s length”; 22 specifying that a brand-naming rights agreement does 23 not obligate or place responsibility upon a 24 distributor; providing civil penalties for violations 25 by manufacturers or importers of malt beverages or 26 vendors; providing applicability; prohibiting the 27 division from imposing certain civil penalties that 28 are greater than the financial value of a brand-naming 29 rights agreement; providing an effective date. 30 31 Be It Enacted by the Legislature of the State of Florida: 32 33 Section 1. Present subsection (13) of section 561.42, 34 Florida Statutes, is redesignated as subsection (14), 35 subsections (1), (8), (11), and (12) and paragraph (b) of 36 present subsection (14) of that section are amended, and a new 37 subsection (13) and subsection (16) are added to that section, 38 to read: 39 561.42 Tied house evil; financial aid and assistance to 40 vendor by manufacturer, distributor, importer, primary American 41 source of supply, brand owner or registrant, or any broker, 42 sales agent, or sales person thereof, prohibited; procedure for 43 enforcement; exception.— 44 (1) ANomanufacturer, distributor, importer, primary 45 American source of supply, or brand owner or registrant of any 46 of the beverages herein referred to, whether licensed or 47 operating in this state or out-of-state, nor any broker, sales 48 agent, or sales person thereof, may notshallhave any financial 49 interest, directly or indirectly, in the establishment or 50 business of any vendor licensed under the Beverage Law; nor may 51shallsuch manufacturer, distributor, importer, primary American 52 source of supply, brand owner or brand registrant, or any 53 broker, sales agent, or sales person thereof, directly or 54 indirectly assist any vendor by furnishing, supplying, selling, 55 renting, lending, buying for, or giving to any vendor any 56 vehicles, equipment, furniture, fixtures, signs, supplies, 57 credit, fees, slotting fees of any kind, advertising or 58 cooperative advertising, services,anygifts or loans of money 59 or property of any description, orby the giving of anyrebates 60 of any kind whatsoever. ANolicensed vendor may notshall61 accept, directly or indirectly, any vehicles, equipment, 62 furniture, fixtures, signs, supplies, credit, fees, slotting 63 fees of any kind, advertising or cooperative advertising, 64 services, giftsanygiftor loansloanof money or property of 65 any description, oranyrebates of any kind whatsoever from any 66 such manufacturer, distributor, importer, primary American 67 source of supply, brand owner or brand registrant, or any 68 broker, sales agent, or sales person thereof; provided, however, 69 that this does not apply to any bottles, barrels, or other 70 containers necessary for the legitimate transportation of such 71 beverages or to advertising materials and does not apply to the 72 extension of credit, for liquors sold, made strictly in 73 compliance withthe provisions ofthis section. A brand owner is 74 a person who is not a manufacturer, distributor, importer, 75 primary American source of supply, brand registrant, or broker, 76 sales agent, or sales person thereof, but who directly or 77 indirectly owns or controls any brand, brand name, or label of 78 alcoholic beverage. Nothing in this section shall prohibit the 79 ownership by vendors of any brand, brand name, or label of 80 alcoholic beverage. 81 (8) The division may adopt rules and require reports to 82 enforce, and may impose administrative sanctions for any 83 violation of, the limitations established under the Beverage Law 84 on vehicles, equipment, furniture, fixtures, signs, supplies, 85 credit, fees, advertising or cooperative advertising, services, 86 gifts or loans of money or propertyinthis section oncredits, 87 coupons, and other forms of assistance. 88 (11) A vendor may display in the interior of his or her 89 licensed premises, including the window or windows thereof, 90 neon, electric, or other signs, including window painting and 91 decalcomanias applied to the surface of the interior or exterior 92 of such windows; signs that require a power source;,and 93 posters, placards, and other advertising material advertising 94 the brand or brands of alcoholic beverages sold by him or her, 95 whether visible or not from the outside of the licensed 96 premises, but anovendor may notshalldisplay in the window or 97 windows of his or her licensed premises more than one neon, 98 electric, or similar sign that requires a power source,99 advertising the product of any one brand of alcoholic beverage 100manufacturer. 101 (12) Any manufacturer, distributor, importer, primary 102 American source of supply, or brand owner or registrant, or any 103 broker, sales agent, or sales person thereof, may give, lend, 104 furnish, or sell to a vendor who sells the products of such 105 manufacturer, distributor, importer, primary American source of 106 supply, or brand owner or registrant any of the following: neon, 107orelectric, or similar signs requiring a power source;signs,108 window painting and decalcomanias applied to the surface of the 109 interior or exterior of windows; or,posters, placards, and 110 other advertising material herein authorized to be used or 111 displayed by the vendor in the interior of his or her licensed 112 premises. As used in subsection (11) and this subsection, the 113 term “decalcomania” means a picture, design, print, engraving, 114 or label made to be transferred onto a glass surface. 115 (13) Any manufacturer, distributor, importer, primary 116 American source of supply, or brand owner or registrant, or any 117 broker, sales agent, or sales person thereof, who regularly 118 sells merchandise to vendors, or any vendor who purchases 119 merchandise from such a manufacturer, distributor, importer, 120 primary American source of supply, or brand owner or registrant, 121 or any broker, sales agent, or sales person thereof, does not 122 violate subsection (1) if: 123 (a) Such sale or purchase is not less than the fair market 124 value of the merchandise; 125 (b) Such sale or purchase is not combined with any sale or 126 purchase of alcoholic beverages; 127 (c) Such sale or purchase is separately itemized from the 128 sale or purchase of alcoholic beverages; and 129 (d) Both the seller and purchaser maintain records of any 130 such sale or purchase, including the price and any conditions 131 associated with such sale or purchase of the merchandise. 132 133 For purposes of this subsection, the term “merchandise” means 134 commodities, supplies, fixtures, furniture, or equipment. The 135 term does not include alcoholic beverages or a motor vehicle or 136 trailer requiring registration under chapter 320. 137 (15)(14)The division shall adopt reasonable rules 138 governing promotional displays and advertising. Such rules may 139 not conflict with or be more stringent than the federal 140 regulations pertaining to such promotional displays and 141 advertising furnished to vendors by distributors, manufacturers, 142 importers, primary American sources of supply, or brand owners 143 or registrants, or any sales agent or sales person thereof; 144 however: 145 (b) Without limitation in total dollar value of such items 146 provided to a vendor, a manufacturer, distributor, importer, 147 brand owner, or brand registrant of malt beverage, or any sales 148 agent or sales person thereof, may rent, loan without charge for 149 an indefinite duration, or sell durable retailer advertising 150 specialties such as clocks, pool table lights, and the like, 151 which bear advertising matter. If sold, such items may not be 152 sold at a price less than the actual cost to the industry member 153 who initially purchased the items. 154 (16)(a) Notwithstanding any other provision of this 155 section, a manufacturer or importer of malt beverages and a 156 vendor may enter into a written agreement for brand-naming 157 rights and associated cooperative advertising, negotiated at 158 arm’s length for no more than fair market value if: 159 1. The vendor operates places of business where consumption 160 on the premises is permitted, the premises are located within a 161 theme park complex consisting of at least 25 contiguous acres 162 owned and controlled by the same business entity, and the 163 complex contains permanent exhibitions and a variety of 164 recreational activities and has a minimum of 1 million visitors 165 annually through a controlled entrance to and exit from the 166 theme park complex; 167 2. Such agreement does not involve, either in whole or in 168 part, the sale or distribution of malt beverages between the 169 manufacturer or importer, or the manufacturer’s or importer’s 170 distributor, and a vendor; 171 3. The vendor, as a result of such agreement, does not give 172 preferential treatment to the alcoholic beverage brand or brands 173 of the manufacturer or importer with whom the vendor has entered 174 into such agreement; 175 4. Such agreement does not limit, either directly or 176 indirectly, the sale of alcoholic beverages of another 177 manufacturer or importer, or distributor; and 178 5. Within 10 days after execution of such agreement, the 179 vendor files with the division a description of the agreement 180 which includes the location, dates, and the name of the 181 manufacturer or importer that entered into the agreement. 182 183 As used in this paragraph, the term “negotiated at arm’s length” 184 means the negotiation of a business transaction by independent 185 parties acting in each party’s own individual self-interest and 186 conducted as if the parties were strangers, so that no conflict 187 of interest may arise. 188 (b) A manufacturer or importer of malt beverages which is a 189 party to a brand-naming rights agreement may not, either 190 directly or indirectly, solicit or receive from any of its 191 distributors any portion of the payment due from the 192 manufacturer or importer of malt beverages to the vendor 193 pursuant to such agreement. Such agreement exists solely between 194 the manufacturer and the vendor and does not, directly or 195 indirectly, in any way obligate or place responsibility, 196 financial or otherwise, upon a distributor. 197 (c) Notwithstanding s. 561.29(3) and (4), a manufacturer of 198 malt beverages, an importer of malt beverages, or a vendor who 199 violates this subsection is subject to: 200 1. A civil penalty of not more than $25,000, for a first 201 violation. 202 2. A civil penalty of not more than $100,000 for a second 203 violation occurring within 36 months after the date of the first 204 violation. 205 3. At the discretion of the division, in lieu of or in 206 addition to a civil penalty imposed under subparagraph 2., 207 suspension or revocation of the alcoholic beverage license for a 208 third or subsequent violation occurring within 36 months after 209 the date of the first violation. 210 211 A violation occurring more than 36 months after a first 212 violation is deemed a first violation under this paragraph. When 213 imposing a civil penalty within the ranges provided in 214 subparagraphs 1. and 2., the division may not impose a civil 215 penalty in an amount greater than the financial value of the 216 brand-naming rights agreement. 217 Section 2. This act shall take effect July 1, 2019.