Meeting Packet - Business & Professions Subcommittee (January 28, 2020)

Summary

A meeting packet for the Business & Professions Subcommittee of the Florida House of Representatives Commerce Committee, Tuesday, January 28, 2020, containing an agenda, a meeting notice and staff analysis material. The agenda and notice list HB 1153 and HB 1165 (Beverage Law), HB 1257 (Community Associations) and HB 1275 (Amusement Rides), with DiCeglie, Raschein, Tomkow and Pritchett named as sponsors. The staff analysis summary of HB 1153 says the bill amends the Tied House Evil Law and allows a brewer whose total production volume is less than 60,000 barrels (1,860,000 gallons) per year to sell, transport, and deliver its own beer from its licensed premises to vendors. The packet includes the text of HB 1275, which states that the act takes effect July 1, 2020.

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Business & Professions Subcommittee

Tuesday, January 28, 2020
12:00 PM - 3:00 PM
Webster Hall (212 Knott)

Meeting Packet

Jose Oliva Heather Fitzenhagen
Speaker Chair
The Florida House of Representatives
Commerce Committee
Business & Professions Subcommittee

Jose Oliva Heather Fitzenhagen
Speaker Chair

AGENDA

Tuesday, January 28, 2020
Webster Hall (212 Knott)
12:00 PM - 3:00 PM

I. Call to Order & Roll Call

II. Welcoming Remarks

III. Consideration of the following bills(s):

HB 1153 by Rep. DiCeglie
Beverage Law

HB 1165 by Rep. Raschein
Beverage Law

HB 1257 by Rep. Tomkow
Community Associations

HB 1275 by Rep. Pritchett
Amusement Rides

IV. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4873 Fax: (850) 413-0419
Committee Meeting Notice
HOUSE OF REPRESENTATIVES

Business & Professions Subcommittee

Start Date and Time: Tuesday, January 28, 2020 12:00 pm

End Date and Time: Tuesday, January 28, 2020 03:00 pm

Location: Webster Hall (212 Knott)
Duration: 3.00 hrs

Consideration of the following bill(s):

HB 1153 Beverage Law by DiCeglie
HB 1165 Beverage Law by Raschein
HB 1257 Community Associations by Tomkow
HB 1275 Amusement Rides by Pritchett

Pursuant to rule 7.11, the deadline for amendments to bills on the agenda by non-appointed members shall
be 6:00 p.m., Monday, January 27, 2020.

By request of Chair Fitzenhagen, all Business & Professions Subcommittee members are asked to have
amendments to bills on the agenda submitted to staff by 6:00 p.m., Monday, January 27, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1153 Beverage Law
SPONSOR(S): DiCeglie
TIED BILLS: IDEN./SIM. BILLS: SB 1584

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Willson f'1W Anstead

2) Government Operations & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors, as well as the business relations between beer distributors and
manufacturers. Generally, only licensed vendors are permitted to sell alcoholic beverages directly to
consumers at retail, and manufacturers, distributors, and exporters are generally prohibited from holding a
vendor's license. There are limited exceptions, subject to certain conditions, including the ability for a craft
brewery to hold a vendor's license, a restaurant to hold a manufacturer's license (brew pub), and a winery to
hold up to three vendor's licenses.

Florida's "Tied House Evil Law," s. 561.42, F.S., prohibits a manufacturer or distributor of alcoholic beverages
from having a financial interest, directly or indirectly, in the establishment or business of a licensed vendor, and
prohibits a manufacturer or distributor from giving gifts, loans, property, or rebates to retail vendors. The bill
amends the Tied House Evil Law.

The bill allows a brewer whose total production volume is less than 60,000 barrels (1,860,000 gallons) per year
to sell, transport, and deliver (distribute) its own beer from its licensed premises to vendors in a standard keg
or similar container, if the brewer does not have an existing franchise agreement with a distributor.

The bill provides for limited exemptions to the current regulations regarding agreements between beer
distributors and manufacturers, as follows:
• Exempts breweries that produce 60,000 barrels or less of malt beverages per year from the requirements
imposed under the Franchise Law.
• Allows any brewer to provide 120 days written notice and terminate their distributor franchise agreement,
but only if the beer manufacturer accounts for 5% or less of the distributors total sales.

The bill reduces certain minimum inventory, warehouse, and sales requirements that a distributor must
maintain for licensure.

The bill may have an insignificant, indeterminate fiscal impact on the Department of Business and Professional
Regulation. See the Fiscal Analysis section of this analysis for more information.

The bill provides an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Beverage Law

In Florida, the Beverage Law 1 regulates the manufacture, distribution, and sale of wine, beer, and liquor
by manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco
(Division) within the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law. 2

"Alcoholic beverages" are defined ins. 561.01, F.S., as "distilled spirits and all beverages containing
one-half of 1 percent or more alcohol by volume." "Malt beverages" are brewed alcoholic beverages
containing malt. 3 As a unit of measurement, a "barrel" means 31 gallons and a "keg" is equal to one-
half of a barrel, or 15.5 gallons. 4

Section 561.14, F.S., specifies license and registration classifications used in the Beverage Law:
• "Manufacturers" are those "licensed to manufacture alcoholic beverages and distribute the same
at wholesale to licensed distributors and to no one else within the state, unless authorized by
statute."
• "Distributors" are those "licensed to sell and distribute alcoholic beverages at wholesale to
persons who are licensed to sell alcoholic beverages."
• "Importers" are those licensed to sell, or to cause to be sold, shipped, and invoiced, alcoholic
beverages to licensed manufacturers or licensed distributors, and to no one else in this state. 5
• "Vendors" are those "licensed to sell alcoholic beverages at retail only" and may not "purchase
or acquire in any manner for the purpose of resale any alcoholic beverages from any person not
licensed as a vendor, manufacturer, bottler, or distributor under the Beverage Law."

Three-Tier System and Tied House Evil

Since the repeal of Prohibition in 1933, regulation of alcohol in the United States has traditionally been
based upon what is termed the "three-tier system." The system requires separation of the manufacture,
distribution, and sale of alcoholic beverages. The manufacturer creates the beverages, and the
distributor obtains the beverages from the manufacturer to deliver to the vendor. The vendor makes the
ultimate sale to the consumer. 6

Generally, only licensed vendors are permitted to sell alcoholic beverages directly to consumers at
retail, and manufacturers, distributors, and exporters7 are generally prohibited from holding a vendor's
license. 8 Manufacturers, distributors, and vendors are generally prohibited from being licensed or
having an interest in more than one tier. Limited exceptions exist, subject to certain conditions, such as
the ability for a craft brewery to hold a vendor's license, a restaurant to hold a manufacturer's license
(brew pub}, and a winery to hold up to three vendor's licenses. 9

1
Section 561.01(6), F.S., provides that the "The Beverage Law" means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2
S. 561.02, F.S.
3
S. 563.01, F.S.
4
See U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Conversion Tables,
https://www.ttb.gov/distilled-spirits/conversion-tables (last visited Jan. 21, 2020).
5
S. 561.0 l (5), F.S.
6
S. 561.14, F.S.
7
S. 561.01(16), F.S. "Exporter" means any person that sells alcoholic beverages to persons for use outside the state and includes a
ship's chandler and a duty-free shop
8
S. 561.22(1), F.S.; s. 561.14(3), F.S. However, see the exceptions provided in ss. 561.221 and 565.03, F.S.
9
See ss. 561.22, F.S.; 561.24, F.S.; 561.14(1 ), F.S.; and 563.022(14), F.S.
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The three-tier system is deeply rooted in the perceived evils of the "tied house" in which a bar is owned
or operated by a manufacturer or the manufacturer exercises undue influence over the retail vendor. 10

Florida's "Tied House Evil Law," s. 561.42, F.S., prohibits a manufacturer or distributor of alcoholic
beverages from having a financial interest, directly or indirectly, in the establishment or business of a
licensed vendor, and prohibits a manufacturer or distributor from giving gifts, loans, property, or rebates
to retail vendors.

Florida's Tied House Evil Law prohibits a licensed manufacturer or distributor from:
• having any direct or indirect financial interest in any vendor;
• assisting any vendor using gifts, loans, money or property of any description (except for bottles,
barrels or other containers necessary for the transportation of beverages);
• giving any rebates of any kind whatsoever;
• engaging in cooperative advertising with a vendor;
• naming a vendor in any advertisement for a malt beverage tasting; and
• paying for particular placement, signage, or other brand promotion within a vendor premises for
malt beverages produced by the manufacturer. 11

However, the Tied House Evil Law authorizes a manufacturer or distributor of malt beverage to:
• Sell, at not less than cost, branded expendable retailer advertising specialties to a vendor
(trays, coasters, mats, menu cards, napkins, cups, glassware, thermometers, etc.).
• Lend without charge, rent, or sell durable retailer advertising specialties which bear
advertising matter to a vendor (clocks, pool table lights, etc.).
• Sell, at not less than cost, consumer advertising specialties to a vendor (ashtrays, T-shirts,
bottle openers, shopping bags, etc.). 12

Additionally, a distributor of malt beverages is allowed to:
• sell, at not less than cost, draft equipment and tapping accessories to a vendor;
• exchange, or provide without charge, any parts that are not compatible with a competitor's
system and are necessary to dispense the distributor's brands;
• provide, without charge, replacement parts of nominal intrinsic value (washers, gaskets, tail
pieces, hoses, hose connections, clamps, plungers, and tap markers, etc.); and
• provide, without charge, up to ten cases of glassware to a vendor licensed to sell malt
beverages for on-premises consumption, subject to certain conditions. 13

A vendor is prohibited from displaying any sign advertising any brand of alcoholic beverages outside of
or on the outside of their establishment, and a manufacturer or distributor may not directly or indirectly
give, lend, rent, sell or furnish a vendor with any outside sign. However, a vendor is allowed to display

10
See Andrew Tamayo, What's Brewing in the Old North State: An Analysis of the Beer Distribution Laws Regulating North
Carolina's Craft Breweries, 88 N.C. L. REV. 2198 (20 l 0), http://scholarship.law.unc.edu/nclr/vol88/iss6/6.
11
S. 561.42, F.S.
12
S. 561.42(14), F.S.
13
Id. Specifically, a distributor that receives glassware at no charge on a no-charge invoice from a malt beverage manufacturer or
importer may give such glassware to a vendor licensed to sell malt beverages for on-premises consumption. Each piece of glassware
given to a vendor by a distributor must bear a permanent brand name intended to prominently advertise the brand. A distributor may
not give a vendor more than l O cases of glassware per calendar year per licensed premises. A vendor that receives a gift of glassware
from a distributor may not sell the glassware or return it to a distributor for cash, credit, or replacement. A manufacturer or importer
who sells or gives glassware to a distributor, a distributor who sells or gives glassware to a vendor, and such vendor, must maintain
records of such sale or gift of glassware.
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signs and other advertising materials for brands that are sold by the vendor on the interior of their
licensed premises. 14

The Division is authorized to adopt rules and require reports in order to enforce the limitations
established under the Tied House Evil Law relating to credits, coupons, and other forms of
assistance. 15

Craft Breweries

Section 561.221 (2), F.S., allows a brewery to receive up to eight vendor's licenses for the sale of
alcoholic beverages on property consisting of a single complex that includes a brewery, which may be
divided by no more than one public street or highway. These vendor's licenses are an exception to the
three-tier system described in ss. 561.14 and 561.22, F.S., and to the tied house evil restrictions ins.
561.42, F.S.

A craft brewery with multiple manufacturing licenses may transfer malt beverages that it produces
between its breweries, up to 100 percent of the yearly production of the receiving brewery. Alcoholic
beverages that the craft brewery does not make must be obtained through a distributor, an importer,
sales agent, or broker.

Distributor Qualifications

Section 561.411, F.S., requires that a distributor meet and maintain certain minimum qualifications with
respect to warehouse inventory and sales. A distributor's warehouse must be owned or leased by the
distributor or in public warehouse space dedicated to the distributor's use.

A distributor is required to maintain warehouse space sufficient to store an inventory of alcoholic
beverages:
• equal to at least 10% of the distributor's annual case sales, or
• for which the cost of acquisition is not less than $100,000.

A distributor is required to own and maintain an inventory of alcoholic beverages:
• equal to at least 5% of the distributor's annual sales, or
• for which the cost of acquisition is not less than $100,000.

Current law requires distributors to sell alcoholic beverages to licensed vendors generally rather than a
selected few licensed vendors. A distributor is considered to be selling to licensed vendors generally, if:
• the distributor sells to at least 25% of the licensed vendors in either the county where the
distributor's warehouse is located or in the distributor's exclusive sales territory; or
• the distributor's total volume of sales to licensed vendors within the state or within the malt
beverage distributor's exclusive sales territory during any 12-month period consists of at least
50% of individual sales which are in quantities of 1O cases or less.

Come-to-Rest Requirement

Section 561.5101, F.S., requires, for purposes of inspection and tax-revenue control, all malt
beverages to come to rest at the licensed premises of an alcoholic beverage wholesaler in this state
before being sold to a vendor by the wholesaler. The come-to-rest requirement does not apply to malt
beverages that a craft brewery manufacturers and sells to consumers as a vendor, or to malt
beverages manufactured and sold by a brew pub. It is a felony of the third degree 16 for any person in

14
S. 561.42( 10)-( 12), F.S. However, only one neon, electric, or similar sign per manufacturer may be displayed in a window.
15
S. 561.42(8), F.S.
16
Punishable as provided in ss. 775.082, 775.083, or 775.084, F.S.
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the business of selling alcoholic beverages to knowingly and intentionally sell malt beverages in a
manner inconsistent with the come-to-rest requirement.

Alcoholic Beverage Deliveries

Vendors, but not manufacturers or distributors, are allowed to make deliveries away from their place of
business for sales actually made at their licensed place of business. Telephone, electronic, and mail
orders received at a vendor's licensed place of business are construed as a sale actually made at the
vendor's licensed place of business. Deliveries may be made in vehicles that are owned or leased by
the vendor, or in a third-party vehicle pursuant to a contract with a third party with whom the vendor has
contracted to make deliveries, including, but not limited to, common carriers. 17

Manufacturers and distributors are allowed to make deliveries in vehicles that they own or lease.

For compliance purposes, all licensees' vehicles are subject to search and inspection without a search
warrant by authorized employees of the Division, sheriffs, deputy sheriffs, and police officers during
business hours or other times the vehicle is being used to transport or deliver alcoholic beverages. 18

Craft breweries that also hold a vendor's licenses are specifically prohibited from making deliveries
under this law. 19

Business Relations between Beer Distributors and Manufacturers (Franchise Law)

Section 563.022, F.S., governs the relationship between manufacturers of malt beverages and their
distributors. This relationship is highly regulated, and apart from the limited exceptions mentioned
previously, Florida brewers are required 20 to enter into a "beer distribution agreement" or "franchise
agreement" with a distributor to sell their product in this state. The agreement must be in writing, filed
with the state, and conform to statutory requirements. 21

The Franchise Law specifies that distributors, but not brewers, are prohibited from waiving any of the
rights granted to them under the Franchise Law. 22 Section 563.021, F.S., requires an exclusive sales
territory agreement for each brand that the distributor sells for a brewer, which must be filed with the
Division. A brewer may not enter into more than one distribution agreement for a given brand in a given
territory.

Under the Franchise Law, brewers:
• May provide good faith, written notice that the distributor is in default of any agreement. 23
• May terminate, cancel or refuse to renew the distribution agreement for "good cause."
• May not terminate, cancel, or fail to renew a distribution agreement without "good cause,"
regardless of the time period specified in the franchise agreement. 24
o "Good cause" exists if:
• The distributor fails to comply with a reasonable and material provision of the
agreement;
• The brewery provided written notice to the distributor within 18 months of the
failure;

17
S. 561.57(1)-(2), F.S.
1s Id.
19
Ss. 561.221 (2)(d), F.S.; 565.57(1), F.S.
20
S. 563.022(15), F.S. The Franchise Law applies to all written or oral agreements between a manufacturer and beer distributor in
existence on June 4, 1987, as well as agreements entered into or renewed after June 4, 1987.
21
See Brewer's Law, Florida Distribution Agreement Guide, http://brewerslaw.com/wp-content/uploads/2014/06/Florida-Beer-
Distribution-Guide.pdf (last visited Jan. 21, 2020).
22
S. 563.022(13), F.S.
23
S. 563.022(5)(b)3., F.S.
24
S. 563.022(5)(b)4., F.S.
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• The distributor was given a reasonable opportunity to make a good faith effort to
comply with the agreement; and
• The distributor was given 30 days to submit a corrective action plan, and an
additional 90 days to cure in accordance with the plan. 25

A brewer may terminate for cause, upon 15 days' notice, if the distributor:
• Files for bankruptcy, is insolvent, or is otherwise unable to remain in business.
• Has their state or federal license revoked for more than 60 days.
• Is convicted of a felony, but only if it has an adverse effect on the good will or interest of the
distributor or brewer.
• Commits fraudulent conduct on a matter material to the brewer.
• Intentionally sells the brewer's products outside of their exclusive sales territory.
• Fails to pay for products 15 business days after receiving a demand for immediate payment.
• Sells, transfers, or assigns their interest in the distributorship without the written consent of the
brewer. 26

The burden is on the brewery to show that it has acted in good faith, that the notice requirements have
been complied with, and that there was good cause for the termination, cancellation, nonrenewal, or
discontinuance. 27

A brewer is required to pay reasonable compensation for the diminished value of the distributor's
business if the brewer cancels, terminates or fails to renew their agreement, or refuses to consent to
the sale of a distributor's interest in the distributorship, without good cause. 28

If a brewer sells or transfers their interest in the brewery, their successor is also bound by the terms
and conditions of the distribution agreement. 29 The Franchise Law allows a brewer to get out of a
distribution agreement if they go out of business or stop making the products covered by the
agreement, upon not less than 30 days' prior written notice. 30

In the event of a dispute arising under the Franchise Law, the prevailing party is entitled to recover
costs and attorney fees. 31

Violations and Penalties

Section 562.45(1 ), F.S., provides that the false entry of any record required under the Beverage Law or
violation of the excise tax provisions, when done intentionally, is a felony of the third degree,
punishable as provided in ss. 775.082, 775.083, or 775.084, F.S. For violations of the Beverage Law
where no penalty is provided, first-time offenses are punishable as a misdemeanor of the second
degree and a felony of the third degree for any subsequent offenses thereafter.

Section 561.29, F.S., authorizes the Division to issue civil penalties for violations of the Beverage Law
and rules issued thereto. Such penalties may not exceed $1,000 per transaction. The Division is also
authorized to suspend the license of a licensee that fails to pay a civil penalty.

Effect of the Bill

Limited Self-Distribution for Certain Brewers

25
S. 563.022(7), F.S.
26
S. 563.022(10), F.S.
27
S. 563.022(8), F.S.
28
S. 563.022(17), F.S.
29
S. 563.022(16), F.S.
30
S. 563.022(11), F.S.
31
S. 563.022(18)(c), F.S.
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The bill:
• Defines the term "barrel" as 31 gallons. (A term not previously defined in the Beverage Law)
• Allows a brewery whose annual total production volume is less than 60,000 barrels (1,860,000
gallons) per year to sell, transport, and deliver (distribute) its own beer from its licensed
premises to vendors in one of the standard keg sizes or similar containers.
o However, a brewery with an existing franchise agreement with a distributor to distribute
its product anywhere in the state is not eligible for this exemption.
• Requires that the brewer comply with certain distribution-specific laws when acting as a
distributor, and exempts the craft brewer from the "come-to-rest requirement."

Distributor Qualifications

The bill:
• Reduces the inventory and warehouse space minimums that a distributor must maintain for
licensure, from not less than 10% of annual case sales and a cost of acquisition of not less than
$100,000 respectively, to not less than 5% and not less than $50,000.
• Reduces the percentage of licensed vendors to which a distributor must sell in order to be
considered "selling to licensed vendors generally", from 25% to 10%.

Franchise Law- Termination Exemption for Small Accounts

The bill allows any brewery to terminate a franchise agreement with their distributor, after 120 days
written notice, but only if the brewer accounts for 5% or less of the distributor's total sales. This
provision is available to any brewer, regardless of size or annual production volume.

Franchise Law - Brewery Exemption

The bill exempts breweries that produce 60,000 barrels or less of malt beverages a year from the
requirements imposed under the Franchise Law.

Sale or Purchase of Merchandise

The bill amends s. 561.42, F.S., to specify that a manufacturer, distributor, importer, primary American
source of supply, or brand owner or registrant, or any broker, sales agent, or sales person thereof, may
not "directly or indirectly" assist any vendor by "furnishing, supplying, selling, renting, lending, buying
for, or giving to any vendor any vehicles, equipment, furniture, fixtures, signs, supplies, credit, fees,
slotting fees of any kind, advertising or cooperative advertising, or services" unless the manufacturer,
distributor, etc., "regularly sells merchandise to vendors" and the sale or purchase is:
• equal to or greater than the fair market value of the merchandise;
• not combined with any sale or purchase of alcoholic beverages;
• separately itemized from the sale or purchase of alcoholic beverages; and
• both the seller and purchaser maintain records.

The bill defines the term "merchandise" as commodities, supplies, fixtures, furniture, or equipment. The
term does not include alcoholic beverages or a motor vehicle or trailer requiring registration under ch.
320, F.S.

Written Agreements for Brand-Naming Rights and Associated Cooperative Advertising

The bill provides that, notwithstanding any other provision of the Tied House Evil Law, a manufacturer
or importer of malt beverages and a vendor may enter into a written agreement for brand-naming rights
and associated cooperative advertising if:
• The agreement is negotiated at arm's length for no more than fair market value;

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• The vendor operates places of business where consumption on the premises is permitted,
which premises are located within a theme park complex comprised of at least 25 contiguous
acres owned and controlled by the same business entity and which contains permanent
exhibitions and a variety of recreational activities and has a minimum of 1 million visitors
annually through a controlled entrance to and exit;
• The agreement does not involve the sale or distribution of malt beverages;
• The vendor does not give preferential treatment to the alcoholic beverage brand(s) of the
manufacturer or importer;
• The agreement does not limit, directly or indirectly, the sale of alcoholic beverages of another
manufacturer, importer or distributor; and
• Within 10 days after execution of the agreement, the vendor files with the division a description
of the written agreement for brand naming rights which includes the location, dates, and the
name of the manufacturer or importer that entered into the agreement.

The bill prohibits a manufacturer or importer from soliciting or receiving, and prohibits a distributor from
paying, any portion of the brand-naming rights or cooperative advertising agreement. The bill also
specifies that such an agreement may not in any way obligate or place responsibility, financial or
otherwise, on a distributor.

The bill defines "negotiated at arm's length" as the negotiation of a business transaction by
independent parties acting in each party's own individual self-interest and conducted as if the parties
were strangers, so that no conflict of interest may arise.

The bill provides that a manufacturer, importer or vendor that violates the written agreement for brand-
naming rights and associated cooperative advertising provisions is subject to:
• First violation: A civil penalty up to $25,000 or the financial value of the brand-naming rights
agreement, whichever is greater.
• Second violation: A civil penalty up to $100,000 or the financial value of the brand-naming rights
agreement, whichever is greater.
• At the discretion of the division, in lieu of or in addition to the second civil penalty, suspension or
revocation of the alcoholic beverage license for a third or subsequent violation occurring within
36 months after the date of the first violation.

The bill provides that a violation occurring more than 36 months after a first violation is deemed a first
violation.

The bill provides an effective date of July 1, 2020.

8. SECTION DIRECTORY:
Section 1 Amends s. 561.221, F.S., authorizing a manufacturer who possesses a vendor's license
to sell, transport, and deliver to vendors under certain circumstances; providing
applicability; and revising requirements for a vendor to be licensed as a manufacturer.

Section 2 Amends s. 561.411, F.S., revising alcoholic beverage inventory requirements for
warehouse space owned or leased by certain distributors; and revising the percentage of
licensed vendors a distributor must sell to in certain locations to be presumed to be
selling to licensed vendors generally.

Section 3 Amends s. 561.42, F.S., revising terms; creating exemptions and penalties relating to
the Tied House Evil Law.

Section 4 Amends s. 561.5101, F.S., revising construction related to come-to-rest requirements.

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Section 5 Amends s. 561.57, F.S., authorizing certain manufacturers to transport malt beverages
in vehicles owned or leased by certain persons other than the manufacturer.

Section 6 Amends s. 563.022, F.S., revising the definition of the term "manufacturer"; revising
construction; authorizing a manufacturer to terminate a contract with a distributor under
certain circumstances.

Section 7 Provides for an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
The bill provides for an indeterminate positive fiscal impact through the creation of new civil
penalties as listed above.

2. Expenditures:
The bill will require DBPR to modify information technology systems to manage the new
agreements and possible violations. These modifications can be made with existing resources.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Manufacturers and importers of malt beverages and qualified vendors will no longer be prohibited from
entering into agreements for brand naming rights under certain circumstances. This relaxation of the
Tied House Evil Law may allow certain licensees to benefit financially while negatively impacting other
licensees.

D. FISCAL COMMENTS:
The bill may have a positive economic impact on new or small breweries by providing relief from certain
regulatory constraints, which will allow them to operate more freely and develop during their early
growth stages.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
None.

2. Other:

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DATE: 1/21/2020
The bill amends the Franchise Law to allow any brewery to terminate a franchise agreement with
their distributor, after 120 days written notice, but only if the brewer accounts for 5% or less of the
distributor's total sales.

Additionally, the bill exempts breweries whose production volume does not exceed 60,000 barrels of
malt beverages a year from the requirements imposed under the Franchise Law.

Article I, section 10 of the Florida Constitution prohibits the passage of any law which impairs the
obligation of contracts. Cases interpreting Florida law have held that the application of the Franchise
Law, and similar statutes, to contracts existing prior to the enactment of the statutes to be
unconstitutional. 32

However, the Florida Supreme Court has held that, relating to the interpretation of substantive
changes to statutory law, the general rule is that in the absence of clear legislative intent to the
contrary, a law affecting substantive rights, liabilities and duties is presumed to apply prospectively
but not retroactively. 33 Florida courts have also held that "Even where the Legislature has expressly
stated that a statute will have retroactive application, this Court will reject such an application if the
statute impairs a vested right, creates a new obligation, or imposes a new penalty." 34

Thus, the provisions in the bill affecting the Franchise Law may be interpreted to apply only
prospectively.

B. RULE-MAKING AUTHORITY:
DBPR has sufficient rule-making authority to modify current rules to reflect the modifications provided
for in the bill.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

32
Gulfside Distributors, Inc. v. Becca, Ltd., 985 F.2d 513, 515 (11th Cir. 1993).
33
Smiley v. State, 966 So. 2d 330, 336 (Fla. 2007). See also Eric Glazer and Louis Goetz, Florida Community Association Law:
Contracts Clause Application In An Ever-Changing Legislative Landscape, Florida Bar Journal, Vol. 89, No. 8 (Sept./Oct. 2015). "In
Florida, all laws are presumed to apply prospectively, unless they are remedial in nature, or designed to clarify law already in effect,
and the legislature clearly expresses its intention that the law is to apply retroactively."
34
Menendez v. Progressive Exp. Ins. Co., Inc., 35 So.3d 873 (Fla. 2010).
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FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 1153 2020

1 A bill to be entitled
2 An act relating to the Beverage Law; amending s.
3 561.221, F.S.; authorizing a manufacturer who
4 possesses a vendor's license to sell, transport, and
5 deliver malt beverages to vendors under certain
6 circumstances; providing applicability; revising
7 requirements for a vendor to be licensed as a
8 manufacturer; amending s. 561.411, F.S.; revising
9 alcoholic beverage inventory requirements for
10 warehouse space owned or leased by certain
11 distributors; revising the percentage of licensed
12 vendors a distributor must sell to in certain
13 locations to be presumed to be selling to licensed
14 vendors generally; amending s. 561.42, F.S.;
15 prohibiting certain entities and persons from directly
16 or indirectly assisting or providing specified items,
17 monies, or services to a licensed vendor; prohibiting
18 a licensed vendor from accepting specified items,
19 monies, or services from certain entities or persons;
20 authorizing the Division of Alcoholic Beverages and
21 Tobacco adopt rules and require reports to enforce,
22 and to impose administrative sanctions for a violation
23 of limitations established under the Beverage Law on
24 specified items, monies, or services; prohibiting a
25 vendor from displaying certain signs in the window or

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26 windows of his or her licensed premises; authorizing
27 certain entities and persons to furnish, supply, sell,
28 rent, lend, or give certain advertising material to
29 certain vendors; defining the term "decalcomania";
30 providing exemptions relating to tied house evil for
31 certain sales and purchases of merchandise; providing
32 conditions for the exemptions; defining the term
33 "merchandise"; prohibiting the sale of certain
34 advertising specialties at a price higher than the
35 actual cost to the industry member; authorizing a
36 manufacturer or importer of malt beverages and a
37 vendor to enter into a written agreement for certain
38 purposes; providing requirements for such agreement;
39 defining the term "negotiated at arm's length";
40 specifying that a brand-naming rights agreement does
41 not obligate or place responsibility upon a
42 distributor; providing civil penalties; prohibiting
43 the division from imposing certain civil penalties;
44 amending s. 561.5101, F.S.; revising construction;
45 amending s. 561.57, F.S.; authorizing certain
46 manufacturers to transport malt beverages in vehicles
47 owned or leased by certain persons other than the
48 manufacturer; amending s. 563.022, F.S.; revising the
49 definition of the term "manufacturer"; revising
50 construction; authorizing a manufacturer to terminate

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51 a contract with a distributor under certain
52 circumstances; providing an effective date.
53
54 Be It Enacted by the Legislature of the State of Florida:
55
56 Section 1. Paragraph (d) of subsection (2) and paragraph
57 (a) of subsection (3) of section 561.221, Florida Statutes, are
58 amended, and paragraph (fl is added to subsection (2) of that
59 section, to read:
60 561.221 Licensing of manufacturers and distributors as
61 vendors and of vendors as manufacturers; conditions and
62 limitations.-
63 (2)
64 (d) A manufacturer possessing a vendor's license under
65 this subsection is not permitted to make deliveries under s.
66 561.57(1), except as provided in paragraph (f).
67 (f) Notwithstanding other provisions of the Beverage Law,
68 any manufacturer possessing a vendor's license under this
69 subsection may sell, transport, and deliver to vendors, from the
70 manufacturer's licensed premises, malt beverages that have been
71 manufactured on its licensed premises if the manufacturer
72 complies with applicable requirements of ss. 561.42 and 561.423
73 to the same extent as if the manufacturer were a distributor.
74 1. The sale, transport, and delivery of malt beverages is
75 limited to kegs or similar containers that hold 5.16 gallons,

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76 7.75 gallons, or 15.5 gallons.
77 2. A delivery by a manufacturer to a vendor under this
78 paragraph is subject to s. 561.57(2).
79 3. This paragraph does not apply to a manufacturer who:
80 a. Has a franchise agreement with a distributor pursuant
81 to s. 563.022; or
82 b. Has a total production volume of more than 60,000
83 barrels of malt beverages per year.
84 (3) (a) Notwithstanding other provisions of the Beverage
85 Law, any vendor licensed in this state may be licensed as a
86 manufacturer of malt beverages upon a finding by the division
87 that:
88 1. The vendor will be engaged in brewing malt beverages at
89 a single location and in an amount which will not exceed 5,000
90 barrels of malt beverages 10,000 lcegs per year. For purposes of
91 this section subsection, the term "barrel" "keg" means 31 tt-.-§.
92 gallons.
93 2. The malt beverages so brewed will be sold to consumers
94 for consumption on the vendor's licensed premises or on
95 contiguous licensed premises owned by the vendor.
96 Section 2. Section 561.411, Florida Statutes, is amended
97 to read:
98 561.411 Qualifications for distributors.-A Ne
99 distributor's license may not shall be issued to or held by any
100 person or business that which does not meet and maintain the

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101 following qualifications with respect to its warehouse inventory
102 and sales:-.-
103 (1) The distributor must maintain warehouse space which is
104 either owned or leased by the distributor, or dedicated to the
105 distributor's use in a public warehouse, which is sufficient to
106 store at one time:
107 (a) An inventory of alcoholic beverages which is equal to
108 at least~ ±G- percent of the distributor's annual case sales to
109 licensed vendors within this state or to licensed vendors within
110 the malt beverage distributor's exclusive sales territory; or
111 (b) An inventory for which the cost of acquisition is not
112 less than $50,000 $100,000.
113 (2) The distributor must maintain at all times, in a
114 warehouse which is either owned or leased by the distributor or
115 in public warehouse space dedicated to the distributor's use, an
116 inventory of alcoholic beverages:
117 (a) Which consists of not less than 5 percent of the
118 distributor's annual sales to licensed vendors within this state
119 or within the malt beverage distributor's exclusive sales
120 territory; or
121 (b) For which the cost of acquisition is not less than
122 $50,000 $100,000. Such .!ffle inventory must required herein shall
123 be owned by the distributor, not held on consignment, and not
124 acquired pursuant to a prior agreement to sell it to a specific
125 licensee or licensees.

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126 (c) For purposes of calculating inventory or percentage of
127 annual sales as required by paragraphs (a) and (b), the
128 calculation shall not include private label inventory whose
129 label is owned by a vendor.
130 (3) The distributor must sell alcoholic beverages to
131 licensed vendors generally rather than a selected few licensed
132 vendors. For purposes of this section, a distributor shall be
133 conclusively presumed to be selling to licensed vendors
134 generally, if:
135 (a) The distributor sells to at least 10 ~ percent of the
136 licensed vendors in the county wherein the distributor's
137 warehouse is located or sells to at least lQ ~ percent of the
138 licensed vendors in the malt beverage distributor's exclusive
139 sales territory; or
140 (b) The distributor's total volume of sales to licensed
141 vendors within the state or within the malt beverage
142 distributor's exclusive sales territory during any ongoing 12-
143 month period consists of at least 50 percent of individual sales
144 which are in quantities of 10 cases or less.
145 Section 3. Subsections (13) and (14) of section 561.42,
146 Florida Statutes, are renumbered as subsections (14) and (15),
147 respectively, subsections (1), (8), (11), and (12) and paragraph
148 (b) of present subsection (14) are amended, and new subsections
149 (13) and (16) are added to that section, to read:
150 561.42 Tied house evil; financial aid and assistance to

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151 vendor by manufacturer, distributor, importer, primary American
152 source of supply, brand owner or registrant, or any broker,
153 sales agent, or sales person thereof, prohibited; procedure for
154 enforcement; exception.-
155 (1) ~ Ne manufacturer, distributor, importer, primary
156 American source of supply, or brand owner or registrant of any
157 of the beverages herein referred to, whether licensed or
158 operating in this state or out-of-state, or fie-r any broker,
159 sales agent, or sales person thereof, may not shall have any
160 financial interest, directly or indirectly, in the establishment
161 or business of any vendor licensed under the Beverage Law; nor
162 may shall such manufacturer, distributor, importer, primary
163 American source of supply, brand owner or brand registrant, or
164 any broker, sales agent, or sales person thereof, directly or
165 indirectly, assist any vendor by furnishing, supplying, selling,
166 renting, lending, buying for, or giving to any vendor any
167 vehicles, equipment, furniture, fixtures, signs, supplies,
168 credit, fees, slotting fees of any kind, advertising or
169 cooperative advertising, services, afiY gifts or loans of money
170 or property of any descriptionL or by the giving of any rebates
171 of any kind whatsoever. A Ne licensed vendor may not shall
172 accept, directly or indirectly, any vehicles, equipment,
173 furniture, fixtures, signs, supplies, credit, fees, slotting
174 fees of any kind, advertising or cooperative advertising,
175 services, gifts any gift or loans -1-o-aft of money or property of

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176 any description~ or aR-y rebates of any kind whatsoever from any
177 such manufacturer, distributor, importer, primary American
178 source of supply, brand owner or brand registrant, or any
179 broker, sales agent, or sales person thereof; provided, however,
180 that this does not apply to any bottles, barrels, or other
181 containers necessary for the legitimate transportation of such
182 beverages or to advertising materials and does not apply to the
183 extension of credit, for liquors sold, made strictly in
184 compliance with the provisions of this section. A brand owner is
185 a person who is not a manufacturer, distributor, importer,
186 primary American source of supply, brand registrant, or broker,
187 sales agent, or sales person thereof, but who directly or
188 indirectly owns or controls any brand, brand name, or label of
189 alcoholic beverage. Hothing in This section does not shall
190 prohibit the ownership by vendors of any brand, brand name, or
191 label of alcoholic beverage.
192 (8) The division may adopt rules and require reports to
193 enforce, and may impose administrative sanctions for any
194 violation of, the limitations established under the Beverage Law
195 on any vehicles, equipment, furniture, fixtures, signs,
196 supplies, credit, fees, slotting fees of any kind, advertising
197 or cooperative advertising, services, gifts or loans of money or
198 property of any description, rebates of any kind whatsoever -i-fi
199 this section on credits, coupons, and other forms of assistance.
200 (11) A vendor may display in the interior of his or her

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201 licensed premises, including the window or windows thereof,
202 neon, electric, or other signs that require a power source;7
203 including window painting and decalcomanias applied to the
204 surface of the interior or exterior of such windows~7 and
205 posters, placards, and other advertising material advertising
206 the brand or brands of alcoholic beverages sold by him or her,
207 whether visible or not from the outside of the licensed
208 premises. However, a, but no vendor may not shall display in the
209 window or windows of his or her licensed premises more than one
210 neon, electric, or similar sign that requires a power source7
211 advertising the product of any one brand of alcoholic beverage
212 FRanufacturer.
213 (12) Any manufacturer, distributor, importer, primary
214 American source of supply, or brand owner or registrant, or any
215 broker, sales agent, or sales person thereof, may give, lend,
216 furnish, or sell to a vendor who sells the products of such
217 manufacturer, distributor, importer, primary American source of
218 supply, or brand owner or registrant any of the following: neonL
219 -o-r- electric, or other signs requiring a power source; signs,
220 window painting and decalcomanias applied to the surface of the
221 interior or exterior of windows; and 7 posters, placards, and
222 other advertising material herein authorized to be used or
223 displayed by the vendor in the interior of his or her licensed
224 premises. As used in this section, the term "decalcomania" means
225 a picture, design, print, engraving, or label made to be

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226 transferred onto a glass surface.
227 (13) Any manufacturer, distributor, importer, primary
228 American source of supply, or brand owner or registrant, or any
229 broker, sales agent, or sales person thereof, who regularly
230 sells merchandise to vendors, or any vendor who purchases
231 merchandise from such manufacturer, distributor, importer,
232 primary American source of supply, or brand owner or registrant,
233 or any broker, sales agent, or sales person thereof, does not
234 violate subsection (1) if:
235 (a) Such sale or purchase is equal to or greater than the
236 fair market value of the merchandise; not combined with any sale
237 or purchase of alcoholic beverages; separately itemized from the
238 sale or purchase of alcoholic beverages; and
239 (b) Both the seller and purchaser maintain records of any
240 such sale or purchase, including the price and any conditions
241 associated with such sale or purchase of the merchandise.
242
243 For purposes of this subsection, the term "merchandise" means
244 commodities, supplies, fixtures, furniture, or equipment. The
245 term does not include alcoholic beverages or a motor vehicle or
246 trailer requiring registration under chapter 320.
247 ~-B-4+ The division shall adopt reasonable rules
248 governing promotional displays and advertising. Such rules may
249 not conflict with or be more stringent than the federal
250 regulations pertaining to such promotional displays and

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251 advertising furnished to vendors by distributors, manufacturers,
252 importers, primary American sources of supply, or brand owners
253 or registrants, or any broker, sales agentL or sales person
254 thereof; however:
255 (b) Without limitation in total dollar value of such items
256 provided to a vendor, a manufacturer, distributor, importer,
257 primary American sources of supply, or brand owner7 or brand
258 registrant of malt beverage, or any broker, sales agentL or
259 sales person thereof, may rent, loan without charge for an
260 indefinite duration, or sell durable retailer advertising
261 specialties such as clocks, pool table lights, and the like,
262 which bear advertising matter. If sold, such items may not be
263 sold at a price less than the actual cost to the industry member
264 who initially purchased the items.
265 ( 16) (a) Notwithstanding other provisions of this section,
266 a manufacturer or importer of malt beverages and a vendor may
267 enter into a written agreement for brand-naming rights and
268 associated cooperative advertising, negotiated at arm's length,
269 for no more than fair market value if all of the following
270 conditions are met:
271 1. The vendor operates places of business where
272 consumption on the premises is permitted and the premises:
273 a. Are located within a theme park complex consisting of
274 at least 25 contiguous acres owned and controlled by the same
275 business entity;

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276 b. Contain permanent exhibitions and a variety of
277 recreational activities; and
278 c. Has a minimum of 1 million visitors annually with a
279 controlled entrance to, and exit from, the enclosed area.
280 2. Such agreement does not involve, either in whole or in
281 part, the sale or distribution of malt beverages between the
282 manufacturer or importer, or the manufacturer's or importer's
283 distributor, and a vendor.
284 3. The vendor, as a result of such agreement, does not
285 give preferential treatment to the alcoholic beverage brand or
286 brands of the manufacturer or importer with whom the vendor has
287 entered into such agreement.
288 4. Such agreement does not directly or indirectly limit
289 the sale of alcoholic beverages of another manufacturer or
290 importer, or distributor.
291 5. Within 10 days after execution of such agreement, the
292 vendor files with the division a description of the agreement
293 which includes the location, dates, and the name of the
294 manufacturer or importer that entered into the agreement.
295
296 As used in this paragraph, the term "negotiated at arm's length"
297 means the negotiation of a business transaction by independent
298 parties acting in each party's own individual self-interest and
299 conducted as if the parties were strangers, so that no conflict
300 of interest may arise ..

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301 (b) A manufacturer or importer of malt beverages who is a
302 party to a brand-naming rights agreement may not, directly or
303 indirectly, solicit or receive from any of its distributors any
304 portion of the payment due from the manufacturer or importer of
305 malt beverages to the vendor pursuant to such agreement. Such
306 agreement exists solely between the manufacturer and the vendor
307 and does not, directly or indirectly, in any way obligate or
308 place responsibility, financial or otherwise, upon a
309 distributor.
310 (c) Notwithstanding s. 561.29(3) and (4), a manufacturer
311 of malt beverages, an importer of malt beverages, or a vendor
312 who violates this subsection is subject to:
313 1. A civil penalty of not more than $25,000, for a first
314 violation.
315 2. A civil penalty of not more than $100,000 for a second
316 violation occurring within 36 months after the date of the first
317 violation.
318 3. At the discretion of the division, in lieu of or in
319 addition to the penalty imposed under subparagraph 2.,
320 suspension or revocation of the alcoholic beverage license for a
321 third or subsequent violation occurring within 36 months after
322 the date of the first violation.
323
324 A violation occurring more than 36 months after a first
325 violation is deemed a first violation under this paragraph. When

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326 imposing a civil penalty within the ranges provided in
327 subparagraphs 1. and 2., the division may not impose a civil
328 penalty in an amount greater than the financial value of the
329 brand-naming rights agreement.
330 Section 4. Subsection (1) of section 561.5101, Florida
331 Statutes, is amended to read:
332 561.5101 Come-to-rest requirement; exceptions; penalties.-
333 (1) For purposes of inspection and tax-revenue control,
334 all malt beverages, except those manufactured and sold by the
335 same licensee, pursuant to s. 561.221(2) or (3), must come to
336 rest at the licensed premises of an alcoholic beverage
337 wholesaler in this state before being sold to a vendor by the
338 wholesaler. The prohibition contained in this subsection does
339 not apply to the shipment of malt beverages commonly known as
340 private labels. The prohibition contained in this subsection
341 shall not prevent a manufacturer from shipping malt beverages
342 for storage at a bonded warehouse facility, provided that such
343 malt beverages are distributed as provided in this subsection or
344 to an out-of-state entity. This subsection does not prohibit a
345 manufacturer from delivering alcoholic beverages to a licensed
346 vendor as provided ins. 561.221(2) (f).
347 Section 5. Subsection (2) of section 561.57, Florida
348 Statutes, is amended to read:
349 561.57 Deliveries by licensees.-
350 (2) Deliveries made by a manufacturer or distributor away

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351 from his or her place of business may be made only in vehicles
352 that are owned or leased by the licensee. However, a
353 manufacturer authorized to make deliveries under s.
354 561.221(2) (f) to the licensed premises of a vendor may transport
355 malt beverages in a vehicle owned or leased by the manufacturer
356 or any person who has been disclosed on a license application
357 filed by the manufacturer and approved by the division. By
358 acceptance of an alcoholic beverage license and the use of such
359 vehicles, the licensee agrees that such vehicle shall always be
360 subject to be inspected and searched without a search warrant,
361 for the purpose of ascertaining that all provisions of the
362 alcoholic beverage laws are complied with, by authorized
363 employees of the division and also by sheriffs, deputy sheriffs,
364 and police officers during business hours or other times the
365 vehicle is being used to transport or deliver alcoholic
366 beverages.
367 Section 6. Paragraph (h) of subsection (2) and paragraph
368 (d) of subsection (14) of section 563.022, Florida Statutes, are
369 amended, and subsection (22) is added to that section, to read:
370 563.022 Relations between beer distributors and
371 manufacturers.-
372 (2) DEFINITIONS.-In construing this section, unless the
373 context otherwise requires, the word, phrase, or term:
374 (h) "Manufacturer" means any person who manufactures more
375 than 60,000 barrels of malt beverage a year or imports beer for

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376 distribution to distributors licensed in Florida.
377 (14) MANUFACTURER; PROHIBITED INTERESTS.-
378 (d) Nothing in The Beverage Law does not shall be
379 construed to prohibit a manufacturer from shipping products to
380 or between its breweries, or between its breweries and the
381 licensed premises of a vendor as provided ins. 561.221(2) (f),
382 without a distributor's license.
383 (22) TERMINATION OF CONTRACTS.-Notwithstanding this
384 section, a manufacturer may terminate a contract with a
385 distributor after at least 120 days' written notice if the sale
386 of products to the distributor by the manufacturer does not
387 exceed 5 percent of the distributor's total alcoholic beverage
388 sales in the prior calendar year.
389 Section 7. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1165 Beverage Law
SPONSOR(S): Raschein
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Willson , "'1\/ Anstead .jl),.-
2) Government Operations & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco in the Department
of Business and Professional Regulation administers and enforces the Beverage Law.

Relating to alcoholic beverage container sizes, the bill:
• Repeals s. 564.05, F.S., relating to wine container size limitations.
• Repeals s. 564.055, F.S., relating to cider container size limitations.
• Amends s. 564.09, F.S., to specify that a restaurant patron may take home a partially consumed bottle of
wine with the purchase of "a meal."

Relating to craft distilleries, the bill:
• Clarifies that a craft distiller may blend their product with other distilled spirits.
• Increases the maximum production threshold for craft distilleries from 75,000 to 250,000 gallons.
• Authorizes the issuance of up to 3 vendor's licenses for the sale of alcoholic beverages on a craft
distillery's licensed premises.
• Specifies that a craft distillery that does not have a vendor's license may not ship its product to consumers
located in Florida.
• Allows a craft distillery to sell, from its souvenir gift shop, up to 75,000 gallons of branded product per year.
The craft distillery may not be licensed as a vendor, and such sales must be made in either a face-to-face
transaction from the gift shop or as a shipment to a consumer located outside the state.
• Allows a craft distillery to be licensed as a distributor or exporter if the distillery is open to the public for
tours, tastings, and sales at least 30 hours per week.
• Allows a craft distillery to receive a permit to conduct tastings and sales of its liquor products at fairs, trade
shows, exhibitions, and festivals, subject to certain conditions.
• Authorizes a craft distillery to conduct liquor tastings anywhere that liquor may be sold.

The bill also authorizes the owner of certain establishments licensed under the Beverage Law to allow dogs in
designated areas, subject to certain conditions.

The bill may have a positive fiscal impact for certain entities involved in the production or sale of wine, cider
and distilled spirits. See Fiscal Analysis & Economic Impact Statement.

The bill provides an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Beverage Law - Background

Since the repeal of Prohibition, regulation of alcohol in the United States has traditionally been based
upon what is termed the "three-tier system." The system requires separation of the manufacture,
distribution, and sale of alcoholic beverages. The manufacturer creates the beverages, and the
distributor obtains the beverages from the manufacturer to deliver to the vendor. The vendor makes the
ultimate sale to the consumer. 4

Generally, only licensed vendors are permitted to sell alcoholic beverages directly to consumers at
retail, and manufacturers, distributors, and exporters5 are generally prohibited from holding a vendor's
license. 6 Manufacturers, distributors, and vendors are generally prohibited from being lice!lsed or
having an interest in more than one tier. Limited exceptions, subject to certain conditions, include the
ability for a craft brewery to hold a vendor's license (tap room), a restaurant to hold a manufacturer's
license (brew pub), and a winery to hold up to three vendor's licenses.7

Exceptions to the three-tier regulatory system allow certain in-state wineries, 8 craft breweries,1-'1 and craft
°
distilleries to sell directly to consumers. 1 Further, certain restaurants may be granted a vendor's
license to manufacture a limited quantity of malt beverages which can be sold to consumers for
consumption on premises. 11

Wineries may receive up to 3 vendor's licenses on property contiguous to the manufacturing premises
of the winery. 12 Section 599.004, F.S., establishes the Florida Farm Winery Program within the
Department of Agriculture and Consumer Services. The requirements for certification include that a
winery produce or sell less than 250,000 gallons of wine annually of which 60% is made from state
agricultural products, maintain a minimum of 5 acres of owned or managed land in Florida which
produces commodities used in the production of wine, be open to the public for tours, tastings, and
sales at least 30 hours each week, and pay an annual application and registration fee of $100.

1
Section 561.01(6), F.S., provides that the "The Beverage Law" means chs. 561,562,563,564,565,567, and 568, F.S.
2
S. 561.02, F.S.
3
S. 563.01, F.S.
4
S. 561.14, F.S.
5
S. 561.01(16), F.S. "Exporter" means any person that sells alcoholic beverages to persons for use outside the state.
6
S. 561.22(1), F.S.; s. 561.14(3), F.S. However, see the exceptions provided in ss. 561.221 and 565.03, F.S.
7
See ss. 561.22, F.S.; 561.24, F.S.; 561.14(1), F.S.; and 563.022(14), F.S.
8
Sees. 561.221(1), F.S.
9
Sees. 561.221(2), F.S.
10
Sees. 565.03, F.S.
11
Sees. 561.221(3), F.S.
12
Sees. 561. 221(1), F.S.
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Section 565.17, F.S., provides an exemption to the Tied-House Evil Laws, authorizing vendors and
liquor distributors to conduct liquor tastings at any location that is allowed to sell liquor by the package
or for consumption on premises. The tastings must be directed toward the of-age general public.

Section 561.24, F.S., prohibits the licensing of a manufacturer as a distributor or exporter. Wineries that
qualify as a certified Florida Farm Winery are the sole exception to this prohibition. Additionally, the
Division may issue permits for a certified Florida Farm Winery to conduct tasting and sales of its wines
at Florida fairs, trade shows, expositions, and festivals. The permit is limited to the length of the event.
The certified Florida Farm Winery is required to pay all entry fees and must have a winery
representative present during the event.

A craft brewery which also holds a vendor's license is specifically prohibited from making deliveries
under this law. 14

Distilleries and Craft Distilleries - Current Situation

Section 565.01, F.S., defines the terms "liquor," "distilled spirits," "spirituous liquors," "spirituous
beverages," or "distilled spirituous liquors" to mean "that substance known as ethyl alcohol, ethanol, or
spirits of wine in any form, including all dilutions and mixtures thereof from whatever source or by
whatever process produced."

A "distillery" is a manufacturer of distilled spirits, and a "craft distillery" is a licensed distillery that
produces 75,000 or fewer gallons of distilled spirits per calendar year on its premises. A craft distillery
must notify the Division in writing of its decision to qualify as a craft distillery. 15

A distillery engaged solely in the business of manufacturing distilled spirits, or a person engaged in the
business of blending and rectifying distilled spirits must pay a state license tax of $4,000 for each plant
or branch operating in Florida. The license tax for a craft distillery is $1,000. Persons who engage in the
business of distilling spirits may also rectify and blend spirituous liquors without paying an additional
license tax. 16

According to the Division, 61 of the 64 licensed distilleries operating in Florida produce less than
75,000 gallons of distilled spirits. 17

A craft distillery is allowed to sell to consumers branded products, 18 distilled on the licensed premises,
in factory-sealed containers that are filled at the distillery and sold for off-premises consumption only.
The sales must occur at the distillery's souvenir gift shop located on private property contiguous to the
licensed distillery premises, and included on the sketch submitted with the license application. Sales
must be in face-to-face transactions with consumers who are making a purchase of no more than six

13
S. 561.57(1) & (2), F.S.
14
Ss. 561.221 (2)(d), and 565.57(1), F.S.
15
Ss. 565.03(l)(b) & (c), F.S.
16
S. 565.03(2)(b), F.S.
17
Department of Business and Professional Regulation, Agency Analysis of2020 HB 583, p. 5-6 (Dec. 6, 2019).
18
Section 565.03(l)(a), F.S., defines "branded product" to mean "any distilled spirits product manufactured on site, which requires a
federal certificate and label approval by the Federal Alcohol Administration Act or federal regulations."
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individual containers of each branded product. 19 The craft distillery is not required to obtain a vendor's
license to sell to consumers from their souvenir gift shop.

The Division must approve any subsequent revisions to a craft distillery's sketch to verify that the
souvenir gift shop location operated by the craft distillery is "owned or leased by the craft distillery and
on property contiguous to the craft distillery's production building."20

Section 565.03, F.S., imposes the following requirements and prohibitions for craft distilleries:
• A craft distillery may not ship, arrange to ship, or deliver distilled spirits to consumers, but may
ship, arrange to ship, or deliver distilled spirits to manufacturers of distilled spirits, wholesale
distributors of distilled spirits, state or federal bonded warehouses, and exporters.
• A craft distillery may not transfer its license or any ownership interest to any individual or entity
with a direct or indirect interest in another distillery licensed in any other state, territory, or
country. However, a craft distillery may be affiliated with another distillery that produces 75,000
or fewer gallons per calendar year of distilled spirits on its premises or in any other state,
territory, or country.
• A craft distillery must report to the Division within 5 business days after it has reached the
75,000-gallon production limit and cease making sales to consumers on the day after it reaches
the production limit.
• A craft distillery must submit beverage excise taxes on distilled spirits sold to consumers in its
monthly report to the Division.
• Containers must comply with the container limits in s. 565.10, F.S., which prohibits the sale and
distribution of distilled spirits in any size container in excess of 1. 75 liters or 59.18 ounces.

Distilleries and Craft Distilleries - Effect of the Bill

The bill amends s. 561.221, F.S., to:
• Authorize the issuance of up to three vendor's licenses to a craft distillery for the sale of
alcoholic beverages on the distillery's licensed premises.
• Allow a craft distillery to conduct tastings and sales of their product at fairs, trade shows, expos,
and festivals.

The bill also amends s. 565.17, F.S., to allow craft distilleries to conduct liquor tastings at any licensed
premises authorized to sell liquor.

The bill amends s. 561.24, F.S., to allow a craft distillery to be licensed as a distributor or exporter if the
craft distillery is open to the public for tours, tastings, and sales at least 30 hours a week.

The bill amends s. 565.03, F.S., to:
• Clarify the definition of "branded product" to allow craft distillers to blend their product with
distilled spirits that are not manufactured on site.
• Increase the maximum production threshold for craft distilleries from 75,000 to 250,000 gallons.
• Allow a craft distillery to sell up to 75,000 gallons of branded product per year from its souvenir
gift shop and removes the limitations on the number of bottles per brand per consumer that may
be sold per year.
o For sales made from the craft distillery's souvenir gift shop, the craft distillery may not be
licensed as a vendor under s. 561.221, F.S., and such sales must be made in either a
face-to-face transaction from the gift shop or as a shipment to a consumer located
outside the state, subject to the laws of the receiving state.
• Specify that a craft distillery can transfer up to 75,000 gallons of its product from its federal
bonded space, nonbonded space, or storage areas to its souvenir gift shop, per year.

19
S. 565.03(1)(c), F.S.
20 Id.
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• Prohibit a craft distillery that does not have a vendor's license under s. 561.221, F.S., from
shipping its distilled spirits to consumers located in the state.
• Remove restrictions relating to the sale, transfer, or ownership affiliation for craft distilleries.

Wine and Cider Container Limitations - Current Situation

Section 564.05, F.S., prohibits the sale of wine in an individual container that holds more than one
gallon of wine, unless it is in a reusable container of 5.16 gallons, which may also be sold. Distributors
and manufacturers may sell wine to other distributors and manufacturers in containers of any size. Any
person who violates the prohibition ins. 564.05, F.S., commits a second degree misdemeanor. 21

Section 564.055, F.S., prohibits the sale of cider by vendors at retail in any individual container of more
than 32 ounces. However, cider may be packaged and sold in bulk, in kegs or barrels, or in any
individual container of one gallon or more, regardless of container type. The Beverage Law does not
provide for the sale of cider in growlers.

Wine and Cider Container Limitations - Effect of the Bill

The bill repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers.

The bill repeals s. 564.055, F.S., relating to the retail sale of individual cider containers.

Merlot to Go - Current Situation

Restaurants licensed to sell wine on the premises may permit patrons to remove one bottle of wine for
consumption off the licensed premises under the following conditions:
• The patron must have purchased a full-course meal consisting of a salad or vegetable, entree, a
beverage, and bread and consumed a portion of the bottle of wine with the meal;
• Before the partially-consumed bottle of wine is removed from the premises, the bottle must be
securely resealed by the licensee, or the licensee's employee, and placed in a bag or other
container that is secured in such a manner that it is visibly apparent if the container has been
opened or tampered with after having been sealed;
• A dated receipt for the wine and meal must be attached to the container; and
• The container must be placed in a locked glove compartment, trunk, or other area behind the
last upright seat of a motor vehicle that does not have a trunk. 22

Merlot to Go - Effect of the Bill

The bill amends 564.09, F.S., simplifying the requirement that a patron's meal be a "full course meal
consisting of salad or vegetable, entree, a beverage, and bread" to just "a meal."

Dogs in Bars and Restaurants -Current Situation

The Division of Hotels and Restaurants (Division) within DBPR is authorized to administer laws and
rules relating to the inspection and regulation of food service establishments for the purpose of
safeguarding the public health, safety and welfare, in accordance with ch. 509, F.S. 23 The law

21
Section 775.082, F.S., provides the penalty for a misdemeanor of the second degree is a term of imprisonment not exceeding 60
days. Section 775.083, F.S., provides the penalty for a misdemeanor of the second degree is a fine not to exceed $500.
22
S. 564.09, F.S.
23
The Florida Department of Health is responsible for regulations related to food service protection and environmental health. Current
regulations prohibit live animals inside food service establishments, vehicles used to transport food, and any other area or facility used
to conduct food service operations. R. 64E-l l.003(6)(c), F.A.C. An exception exists for service animals, as provided under s. 413.08,
F.S. See also ss. 381.006 and 381.0072, F.S.
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expressly limits the general home rule powers of a local government as it relates to the regulation of
such businesses. 24

Pursuant to its rulemaking authority, the Division has adopted the 2017 Food Code (Code) published
by the U.S. Food and Drug Administration (FDA). 25 The Code prohibits live animals on the premises of
food service establishments. 26 "Premises" is defined to mean the physical facility, its contents, and the
contiguous land or property under the control of the permit holder. 27 There are limited exceptions to this
prohibition including those for patrol dogs accompanying police or security officers, and service animals
controlled by persons with disabilities. 28

The service animal law authorizes an individual with a disability the right to be accompanied by a
trained service animal (a dog) in all areas of public accommodations that the public is normally allowed
to occupy. 29 A public accommodation is required to modify its policies, practices, and procedures to
permit use of a service animal by an individual with a disability.

The service animal law defines a "service animal" as an animal that is trained to do work or perform
tasks for an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other
mental disability. The work done or tasks performed must be directly related to the individual's
disability. A service animal is not a pet. It is also not a comfort animal.

Generally, only service animals are permitted to be inside bars and restaurants in Florida. However,
Florida law allows local governments to establish a local exemption to the prohibition on having live
animals inside food service establishments. Specifically, local governments may authorize local food
service establishments to decide whether to designate outdoor portions of the establishment for
"patrons' dogs." Participating establishments are required to apply for and receive a permit from the
governing body of the local government. Local governments are authorized to include additional
regulations and limitations to protect the health, safety and general welfare of the public. 30

The local ordinances must include the following requirements:
• All public food service establishment employees must wash their hands promptly after touching,
petting, or otherwise handling dogs. Employees shall be prohibited from touching, petting, or
otherwise handling dogs while serving food or beverages or handling tableware or before
entering other parts of the public food service establishment.
• Patrons in a designated outdoor area must be advised that they should wash their hands before
eating. Waterless hand sanitizer shall be provided at all tables in the designated outdoor area.
• Employees and patrons must be instructed that dogs are prohibited from contact with serving
dishes, utensils, tableware, linens, paper products, or any other items involved in food service
operations;
• Patrons must keep their dogs on a leash and under reasonable control at all times;
• Dogs are prohibited on chairs, tables, or other furnishings;
• All table and chair surfaces must be cleaned and sanitized with an approved product between
seating of patrons. Spilled food and drink must be removed from the floor or ground between
seating of patrons;

24
S. 509.032(7), F.S.
25
U.S. Department of Health and Human Services, Public Health Service, Food & Drug Administration, Food Code, (2017),
https://www.fda.gov/media/l 10822/download (last visited Jan. 8, 2019). According to the FDA, "the purpose of maintaining an
updated model food code is to assist food control jurisdictions at all levels of government by providing them with a scientifically
sound technical and legal basis for regulating the retail segment of the food industry."
26
Id. at s. 6-501.115(A).
27
Id. at s. 1-201.10(8).
28
Id. at s. 6-501.115(8).
29
S. 413.08(3), F.S.
30
S. 509.233, F.S.
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• Accidents involving dog waste must be cleaned immediately and the area sanitized with an
approved product. A kit with the appropriate materials for this purpose must be kept near the
designated outdoor area;
• A sign or signs reminding employees of the applicable rules must be posted on premises in a
manner and place as determined by the local permitting authority;
• A sign or signs reminding patrons of the applicable rules must be posted on premises in a
manner and place as determined by the local permitting authority; and
• A sign or signs must be posted in a manner and place as determined by the local permitting
authority that places the public on notice that the designated outdoor area is available for the
use of patrons and patrons' dogs. 31

Regarding where dogs are allowed to travel or pass through, the local ordinances must include the
following requirements:
• Dogs are prohibited from traveling through indoor portions of the public food service
establishment;
• Dogs are prohibited from traveling through nondesignated outdoor portions of the public food
service establishment; and
• Access to the designated outdoor portions of the public food service establishment must not
require entrance into or passage through any indoor area of the food establishment. 32

Dogs in Bars and Restaurants - Effect of the Bill

The bill creates s. 562.65, F.S., authorizing the owner of a certain premises licensed under the
Beverage Law to allow dogs in designated areas, including certain indoor areas, subject to the
following conditions:
• No more than 10% of gross revenues are derived from the sale of food that is consumed on the
licensed premises. For the purpose of the bill, ice is not considered food.
• Dogs must be kept on a leash and under control at all times.
• Dogs are not allowed on tables, bar tops, or other furnishings.
• Dogs are not allowed in any area where food is stored or prepared.
• Dog waste must be cleaned immediately and the area sanitized.

An individual may be held liable for failure to comply with the dog-related conditions if such failure
results in injury or damage. The bill also authorizes the Division to adopt rules to administer this law.

The bill provides an effective date of July 1, 2020.

B. SECTION DIRECTORY:
Section 1 Amends s. 561.221, F.S.; authorizing the division to issue vendor's licenses to certain
craft distilleries for the sale of alcoholic beverages on the distillery's licensed premises;
requiring certain information be included on sketches approved by the division; requiring
the division to issue permits to craft distilleries for conducting tastings and sales at
certain events; requiring craft distilleries to pay entry fees for such events and have a
representative of the distillery present at each event.

Section 2 Amends s. 561.24, F.S.; authorizing a craft distillery to be licensed as a distributor under
certain circumstances.

Section 3 Creates s. s. 562.65, F.S.; providing definitions; authorizing certain licensed vendors of
alcoholic beverages to allow dogs in certain designated areas on licensed premises;

31
S. 509.233(3)(c), F.S.
32 [d
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providing requirements; providing for liability; authorizing the Division of Alcoholic
Beverages and Tobacco of the Department of Business and Professional Regulation to
adopt rules.

Section 4 Repeals s. 564.05, F.S., relating to limitations on the size of individual wine containers.

Section 5 Repeals s. 564.055, F.S., relating to limitations on the size of individual cider containers.

Section 6 Amends s. 564.09, F.S.; revising provisions that authorize a restaurant to allow patrons
to remove partially consumed bottles of wine from a restaurant for off-premises
consumption.

Section 7 Amends s. 565.03, F.S., redefining the terms "branded product" and "craft distillery";
revising the requirements for the sale of branded products by a licensed craft distillery to
consumers; deleting a provision that prohibits a craft distillery from selling more than six
individual containers of a branded product to a consumer; etc.

Section 8 Amends s. 565.17, F.S.; authorizing a craft distillery to conduct spirituous beverage
tastings on specified licensed premises under certain circumstances.

Section 9 Provides for an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive economic impact on certain entities in the wine and cider industry, due to
the reduction or elimination of regulatory constraints relating to container sizes.

The bill may have a positive economic impact for many craft distilleries, due to the removal of many
current regulatory constraints, resulting in enhanced brand recognition, increased sales volume,
opportunities for collaboration, and access to new markets and consumers.

D. FISCAL COMMENTS:
None.
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Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill authorizes the Division to adopt rules to administers. 562.65, F.S., relating to the discretionary
authority to allow dogs at certain licensed premises under certain conditions.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB1165 2020

1 A bill to be entitled
2 An act relating the Beverage Law; amending s. 561.221,
3 F.S.; authorizing the division to issue vendor's
4 licenses to certain craft distilleries for the sale of
5 alcoholic beverages on the distillery's licensed
6 premises; requiring that the licensed vendor premises
7 be included on certain sketches and diagrams under
8 certain circumstances; requiring that all revisions to
9 sketches or diagrams be approved by the division;
10 requiring the division to issue permits to craft
11 distilleries for conducting tastings and sales at
12 certain events; requiring craft distilleries to pay
13 entry fees for such events and have a representative
14 of the distillery present at each event; amending s.
15 561.24, F.S.; authorizing a craft distillery to be
16 licensed as a distributor under certain circumstances;
17 creating s. 562.65, F.S.; providing definitions;
18 authorizing certain licensed vendors of alcoholic
19 beverages to allow dogs in certain designated areas on
20 licensed premises; providing requirements; providing
21 for liability; authorizing the Division of Alcoholic
22 Beverages and Tobacco of the Department of Business
23 and Professional Regulation to adopt rules; repealing
24 ss. 564.05 and 564.055, F.S., relating to limitations
25 on the size of individual wine containers and

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26 individual cider containers; amending s. 564.09, F.S.;
27 revising provisions that authorize a restaurant to
28 allow patrons to remove partially consumed bottles of
29 wine from the restaurant for off-premises consumption;
30 amending s. 565.03, F.S.; redefining the terms
31 "branded product" and "craft distillery"; revising the
32 requirements for the sale of branded products by a
33 licensed craft distillery to consumers; deleting a
34 provision that prohibits a craft distillery from
35 selling more than six individual containers of a
36 branded product to a consumer; revising requirements
37 relating to the shipping of distilled spirits to
38 consumers by a craft distillery; deleting requirements
39 relating to the transfer of certain distillery
40 licenses and ownership therein; deleting a prohibition
41 against certain affiliations; authorizing a craft
42 distillery to transfer specified quantities of
43 specified distilled spirits from certain locations to
44 its souvenir gift shop; requiring a craft distillery
45 making such transfers to submit certain excise taxes
46 with its monthly report to the Division of Alcoholic
47 Beverages and Tobacco of the Department of Business
48 and Professional Regulation; amending s. 565.17, F.S.;
49 authorizing a craft distillery to conduct spirituous
50 beverage tastings on specified licensed premises under

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51 certain circumstances; providing an effective date.
52
53 Be It Enacted by the Legislature of the State of Florida:
54
55 Section 1. Subsection (4) is added to section 561.221,
56 Florida Statutes, to read:
57 561.221 Licensing of manufacturers and distributors as
58 vendors and of vendors as manufacturers; conditions and
59 limitations.-
60 (4) (a) Notwithstanding s. 561.22, s. 561.42, or any other
61 provision of the Beverage Law, the division may issue up to
62 three vendor's licenses to a craft distillery licensed under s.
63 565.03, even if such distillery is also licensed as a
64 distributor, for the sale of alcoholic beverages on a craft
65 distillery's licensed premises.
66 (b) If a vendor's license is for the sale of alcoholic
67 beverages on a craft distillery's licensed premises, the
68 licensed vendor premises must be included on the sketch or
69 diagram defining the licensed premises submitted with the
70 distillery's license application. All sketch or diagram
71 revisions by the craft distillery must be approved by the
72 division and must verify that the vendor premises operated by
73 the licensed distillery is owned or leased by the craft
74 distillery and is located on the licensed distillery premises.
75 (c) The division shall, upon request, issue permits to a

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76 craft distillery to conduct tastings and sales of distilled
77 spirits produced by the distillery at fairs, trade shows,
78 expositions, and festivals in this state. The craft distillery
79 shall pay all entry fees for such events and shall have a
80 representative present during each event. A permit is limited to
81 the length of the event for which the permit is issued.
82 Section 2. Subsection (9) is added to section 561.24,
83 Florida Statutes, to read:
84 561.24 Licensing manufacturers as distributors or
85 registered exporters prohibited; procedure for issuance and
86 renewal of distributors' licenses and exporters' registrations.-
87 (9) This section does not apply to a craft distillery, as
88 defined ins. 565.03, which is open to the public for tours,
89 tastings, and sales at least 30 hours each week.
90 Section 3. Section 562.65, Florida Statutes, is created to
91 read:
92 562.65 Licensed premises of vendors; dogs allowed in
93 designated areas.-
94 (1) As used in this section, the term:
95 (a) "Division" means the Division of Alcoholic Beverages
96 and Tobacco of the Department of Business and Professional
97 Regulation.
98 (b) "Dog" means a dog that is domesticated and kept as a
99 household pet.
100 (c) "Licensed premises" has the same meaning as provided

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101 ins.561.01(11).
102 (d) "Vendor" means a person who is licensed under the
103 Beverage Law.
104 (2) A vendor may allow dogs in designated areas, including
105 certain indoor areas, of the licensed premises under the
106 following conditions:
107 (a} No more than 10 percent of the gross revenue of the
108 vendor's business may be from the sale of food consumed on the
109 licensed premises. Ice may not be considered food.
110 (b) Dogs must be kept on a leash and under control at all
111 times.
112 (c} Dogs may not be permitted on tables, bar tops, or
113 other furnishings.
114 (d} Dogs may not be permitted in any area of the licensed
115 premises in which food is stored or prepared.
116 (e} Dog waste must be cleaned immediately and the area
117 must be sanitized.
118 (3) An individual may be held liable for failure to comply
119 with the conditions under paragraphs (2) (b)- (e) if such failure
120 causes injury or damage.
121 (4) The division may adopt rules to administer this
122 section.
123 Section 4. Section 564.05, Florida Statutes, is repealed.
124 Section 5. Section 564.055, Florida Statutes, is repealed.
125 Section 6. Section 564.09, Florida Statutes, is amended to

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126 read:
127 564.09 Restaurants; off-premises consumption of wine.-
128 Notwithstanding any other provision of law, a restaurant
129 licensed to sell wine on the premises may permit a patron to
130 remove one unsealed bottle of wine for consumption off the
131 premises if the patron has purchased a full course meal
132 consisting of a salad or vegetable, entree, a beverage, and
133 bread and consumed a portion of the bottle of wine with such
134 me-a-1- on the restaurant premises. A partially consumed bottle of
135 wine that is to be removed from the premises must be securely
136 resealed by the licensee or its employees before removal from
137 the premises. The partially consumed bottle of wine shall be
138 placed in a bag or other container that is secured in such a
139 manner that it is visibly apparent if the container has been
140 subsequently opened or tampered with, and a dated receipt for
141 the bottle of wine and full course meal shall be provided by the
142 licensee and attached to the container. If transported in a
143 motor vehicle, the container with the resealed bottle of wine
144 must be placed in a locked glove compartment, a locked trunk, or
145 the area behind the last upright seat of a motor vehicle that is
146 not equipped with a trunk.
147 Section 7. Paragraphs (a) and (b) of subsection (1),
148 paragraphs (b) and (c) of subsection (2), and subsection (5) of
149 section 565.03, Florida Statutes, are amended to read:
150 565.03 License fees; manufacturers, distributors, brokers,

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151 sales agents, and importers of alcoholic beverages; vendor
152 licenses and fees; distilleries and craft distilleries.-
153 (1) As used in this section, the term:
154 (a) "Branded product" means any distilled spirits product
155 manufactured on site, or manufactured on site and blended on
156 site with other distilled spirits, which requires a federal
157 certificate and label approval by the Federal Alcohol
158 Administration Act or federal regulations.
159 (b) "Craft distillery" means a licensed distillery that
160 produces 250,000 75,000 or fewer gallons per calendar year of
161 distilled spirits on its premises and is designated as a craft
162 distillery by has notified the division upon notification in
163 writing of its decision to qualify as a craft distillery.
164 (2)

165 (b) A licensed distillery or craft distillery may Persons
166 licensed under this section who are in the business of
167 distilling spirituous liquors may aloe engage in the business of
168 rectifying and blending spirituous liquors without the payment
169 of an additional license tax.
170 (c) A craft distillery licensed under this section which
171 is not licensed as a vendor under s. 561.221 may sell to
172 consumers under its craft distillery license, at its souvenir
173 gift shop, up to 75,000 gallons per calendar year of branded
174 products distilled on its premises in this state in factory-
175 sealed containers that are filled at the distillery for off-

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176 premises consumption by consumers. Such sales are authorized
177 only on private property owned or leased by the craft distillery
178 which is contiguous to the craft distillery's licensed
179 distillery premises approved by the division in this state and
180 included on the sketch or diagram defining the licensed premises
181 submitted with the distillery's license application. All slcetch
182 or diagram revisions by the distillery shall require the
183 division's approval verifying that the souvenir gift shop
184 location operated by the licensed distillery is o\1ned or leased
185 by the distillery and on property contiguous to the distillery's
186 production building in this state.
187 1. A craft distillery may not sell under its craft
188 distillery license any factory-sealed individual containers of
189 spirits to consumers in this state except in face-to-face sales
190 transactions with such consumers at the craft distillery's
191 licensed premises. Such containers must be in compliance with
192 the container limits ins. 565.10 who are making a purchase of
193 no more than si1c individual containers of each branded product.
194 2. Each container sold in face to face transactions with
195 consumers must coffiPlY with the container limits ins. §6§.10,
196 per calendar year for the consumer's personal use and not for
197 resale and \Jho are present at the distillery's licensed premises
198 in this state.
199 2.-3-.- A craft distillery must report to the division within
200 5 days after it reaches the production limitations provided in

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201 paragraph ( 1) (b) . Any retail sales to consumers under its craft
202 distillery license at the craft distillery's licensed premises
203 are prohibited beginning the day after it reaches the production
204 limitation.
205 3.4-.- A craft distillery that has not been issued a
206 vendor's license under s. 561.221 may not ship or arrange to
207 ship any of its distilled spirits to consumers in this state and
208 may sell and deliver only to consumers within the state in a
209 face-to-face transaction at the distillery property. However, a
210 craft distillery distiller licensed under this section may ship,
211 arrange to ship, or deliver such spirits to manufacturers of
212 distilled spirits, wholesale distributors of distilled spirits,
213 state or federal bonded warehouses, afiEi exporters, or consumers
214 located outside of this state; however, all such shipments must
215 comply with the laws where such products are scheduled to be
216 delivered for personal use.
217 4. A craft distillery may transfer up to 75,000 gallons
218 per calendar year of distilled spirits that it manufactures from
219 its federal bonded space, nonbonded space at its licensed
220 premises, or storage areas to its souvenir gift shop.
221 5. E:;,ccept as provided in subparagraph 6., it is unlawful
222 to transfer a distillery license for a distillery that produces
223 75,000 or fe\;er gallons per calendar year of distilled spirits
224 on its premises or any ownership interest in ouch license to an
225 individual or entity that has a direct or indirect mmership

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226 interest in any distillery licensed in this state; another
227 state, territory, or country; or by the United States government
228 to manufacture, blend, or rectify distilled spirits for beverage
229 purposes.
230 6. A craft distillery shall not have its ownership
231 affiliated with another distillery, unless such distillery
232 produces 75,000 or fewer gallons per calendar year of distilled
233 spirits on each of its premises in this state or in another
234 state, territory, or country.
235 (5) A craft distillery may transfer distilled spirits to
236 any of its retail areas pursuant to paragraph (2) (c) ors.
237 561.221 and making sales under paragraph (2) (c) is responsible
238 for submitting any excise taxes due to the state on distilled
239 spirits on beverages under the Beverage Law with -i-fi its monthly
240 report to the division with any taJc payments due to the state.
241 Section 8. Section 565.17, Florida Statutes, is amended to
242 read:
243 565.17 Beverage tastings by distributors, craft
244 distilleries, and vendors.-A licensed distributor of spirituous
245 beverages, a craft distillery, as defined ins. 565.03, or any
246 vendor, is authorized to conduct spirituous beverage tastings
247 upon any licensed premises authorized to sell spirituous
248 beverages by package or for consumption on premises without
249 being in violation of s. 561.42, provided that the conduct of
250 the spirituous beverage tasting shall be limited to and directed

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251 toward the general public of the age of legal consumption.
252 Section 9. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #: HB 1257 Community Associations
SPONSOR(S): Tomkow
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF

1) Business & Professions Subcommittee Wright Anstead~
2) Ways & Means Committee

3) Judiciary Committee

SUMMARY ANALYSIS
A condominium is a form of ownership of real property comprised of units which may be owned by one or more
persons along with an undivided right of access to common elements. A cooperative is real property owned by
the cooperative association, and individual units are leased to the residents, who own shares in the
cooperative association. The Division of Florida Condominiums, Timeshares, and Mobile Homes, within the
Department of Business and Professional Regulation (DBPR), investigates complaints related to financial
issues, elections, and unit owner access to official records for condominium and cooperative associations.

Related to condominium and cooperative association legal challenges to tax assessments issued by the
county property appraiser, the bill amends current law to clarify that where an association has filed a single
joint petition to challenge a tax assessment, an association may continue to represent and defend the unit
owners through any related subsequent proceeding in any tribunal on appeal. The association must provide
unit owners with notice of its intent to respond to a complaint, and advise the unit owners that they may opt out.

Related to condominium association records, the bill provides that:
• associations must maintain official records in a manner determined by DBPR, and
• when a unit owner or renter requests to inspect the official records, the association must provide the
owner or renter with a checklist of all the records that are and are not being made available for
inspection.

Related to DBPR regulations, the bill:
• defines "financial issues," and allows DBPR to further define the term; and
• allows DBPR to adopt rules to establish requirements for training programs provided by DBPR.

Related to HOA swimming pools, the bill provides that pools for HOAs that have 32 parcels or less and are not
being operated as public lodging establishments are exempt from Department of Health requirements for
public pools, except for maintaining water quality standards.

The bill has an indeterminate fiscal impact on state and local governments.

The bill has an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1257.BPS.DOCX
DATE: 1/21/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Community Associations

The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation and
arbitration, and developer disclosure. The Division has regulatory authority over the following business
entities and individuals:
• Condominium Associations;
• Cooperative Associations;
• Florida Mobile Home Parks and related associations;
• Vacation Units and Timeshares;
• Yacht and Ship Brokers and related business entities; and
• Homeowners' Associations (limited to arbitration of election and recall disputes).

Condominiums

A condominium is a form of ownership of real property created pursuant to ch. 718, F.S., comprised of
units which may be owned by one or more persons along with an undivided right of access to common
elements. 1 A condominium is created by recording a declaration of condominium in the public records
of the county where the condominium is located. 2 A declaration governs the relationships among
condominium unit owners and the condominium association. All unit owners are members of the
condominium association, an entity responsible for the operation and maintenance of the common
elements owned by the unit owners. The condominium association is overseen by an elected board of
directors, commonly referred to as a "board of administration." The board enacts bylaws which govern
the administration of the association.

Cooperatives

A cooperative is a form of property ownership created pursuant to ch. 719, F.S. The real property is
owned by the cooperative association, and individual units are leased to the residents who own shares
in the cooperative association. 3 The lease payment amount is the pro-rata share of the operational
expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
cooperatives are in many instances nearly identical to those regulating condominiums.

The building and land of a cooperative association are owned by a corporation, not the individual unit
owners. A person who purchases a cooperative unit does not receive title to the unit or any portion of
the cooperative's building or land. Instead, the purchaser receives shares of the cooperative
association and leases a unit from the association. An interest in a corporation or cooperative is
represented by the ownership of stock in the corporation.

An ownership interest in a corporation or cooperative is an interest in personal property, not real
property. 4 Generally, personal property is any object or right that is not real property, such as
automobiles, clothing, or stocks. 5

1
"Common elements" means the portions of the condominium property not included in the units. S. 718.103(11 ), F.S.
2
S. 718.104(2), F.S.
3 S. 719.103(2)(26), F.S.
4 Downey v. Surf Club Apartments, Inc., 667 So.2d 414 (Fla. 1st DCA 1996).

s Am. Jur. 2d Property§ 18.
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Real property is anything that is permanent, fixed, and immovable, such as land or a building. At
common law, a leasehold, even for as long as 99 years, was not considered an interest in real property.
However, a long-term leasehold interest is taxed in the same manner as a fee interest, so courts
generally regard long-term leaseholds to be an interest in real property for taxation purposes. 6

In Florida, a cooperative is treated as real property for some homestead purposes. Even though the
legal definition of homestead follows the common law and requires an interest in real property to qualify
for the homestead exemption, the Florida Constitution specifically extends the exemption to a
cooperative unit.7 Florida's homestead laws govern the cooperative for purposes of exemption from
forced sale by creditors 8 and for purposes of the exemption from ad valorem taxation. However, a
cooperative is not subject to Florida's homestead protections and is not considered real property for
purposes of devise and descent. Devise and descent is the transfer or conveyance of property by will or
inheritance. 9

In contrast, the Condominium Act specifically provides that "[a] condominium parcel created by the
declaration is a separate parcel of real property, even though the condominium is created on a
leasehold." Thus, an ownership interest in a condominium is expressly converted by statute into an
°
interest in real property. There is no corresponding statute in the Cooperative Act. 1 Florida courts have
recognized that there is some confusion in this area and that there is a need for clarification on whether
a cooperative ownership interest is an interest in real property or personal property. 11

Homeowners' Associations

A homeowners' association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners, membership is a mandatory condition of parcel ownership,
and is authorized to impose assessments that, if unpaid, may become a lien on the parcel. 12 Only
HOAs whose covenants and restrictions include mandatory assessments are regulated by ch. 720, F.S.
Like a condominium or cooperative, an HOA is administered by an elected board of directors. The
powers and duties of an HOA includes the powers and duties provided in ch. 720, F.S., and in the
governing documents of the association, which include the recorded covenants and restrictions,
together with the bylaws, articles of incorporation, and duly adopted amendments to those documents.
No state agency has direct oversight of HOAs. Florida law provides procedures and minimum
requirements for operating and provides for a mandatory binding arbitration program, administered by
the Division, only for certain election disputes.

Tax Assessments

Background

Condominium association unit owners and cooperative associations unit owners are assessed yearly
ad valorem 13 taxes by the county property appraiser. 14 For condominium unit owners, ad valorem taxes

6 Williams v. Jones, 326 So.2d 425, 433 (Fla. 1975); See generally, The Florida Bar, Practice Under Florida Probate Code
Chapter 19 (9th ed. 2017).
7 Art. VII, s. 6(a), Fla. Const. ("The real estate may be held by legal or equitable title, by the entireties, jointly, in common,

as a condominium, or indirectly by stock ownership or membership representing the owner's or member's proprietary
interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight years.").
6 Ss. 222.01, and 222.05, F.S.
9 Southern Walls, Inc. v. Stilwell Corp., 810 So. 2d 566, 572 (Fla. 2nd DCA 2002); Phillips v. Hirshon, 958 So. 2d 425, 430

(Fla. 3rd DCA 2007); In re Estate of Wartels, 357 So.2d 708 (Fla. 1978); Black's Law Dictionary (11th ed. 2019).
10 S. 718.106(1), F.S; See generally Ch. 719, F.S.
11 Phillips, 958 So.2d 425; Levine v. Hirshon, 980 So.2d 1053 (Fla. 2008).

12 S. 720.301 (9), F.S.
13 "Ad valorem tax" means a tax based upon the assessed value of property." Section 192.001(1), F.S.
14 S. 194.011, F.S.
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for common elements are divided and levied proportionally among individual condominium parcel
owners. 15

Current law permits condominium and cooperative associations to file a single joint petition to the Value
Adjustment Board ("VAB") contesting the tax assessment of all units within the condominium or
cooperative. 16 The association must provide each unit owner notice of the petition and their right to opt
out of the appeal, if desired. 17

A decision by the VAB may be appealed to the circuit court. 18 While current law is clear that an
association is authorized to act on behalf of all unit owners when filing a petition to the VAB and when
initiating an appeal of the VAB's decision, it is unclear whether the association may defend, on behalf of
unit owners, an appeal of the VAB's decision by the property appraiser. 19

The court in Central Carillon Beach Condominium v. Garcia took up this issue in a case of first
impression. 20 Petitioners were two condominium associations who had represented their unit owners in
a tax assessment challenge before a VAB (Associations). Respondent was the property appraiser for
Miami-Dade County (Appraiser). 21

When the Associations initially challenged their tax assessment, the VAB substantially lowered their
assessed property values. 22 As a result, the Appraiser challenged the decision in an appeal to the
Miami-Dade Circuit Court, and named the individual unit owners, instead of the Associations. 23 In
response, the Associations submitted a motion to dismiss the appeal and a motion for certification of
the unit owners as a defense class. Both motions were denied by the circuit court, and the Associations
appealed the denial of the motion to the Third District Court of Appeal. 24

In response, the Appraiser argued that defense class certification should be denied, and the appeal
should name individual unit owners, because statutes governing tax assessment challenge procedures
require that individual unit owners be named on appeal. 25

Section 194.181(2), F.S., states that in any case brought by the taxpayer or association contesting
the assessment of any property, the county property appraiser shall be party. In any case brought by
the property appraiser alleging specific legal violations in the VAB's decision or claiming a certain
monetary variance between the assessed value of the property by the property appraiser and the VAB
in the decision, 26 the taxpayer shall be party defendant. "Taxpayer" is defined as the person or other
legal entity in whose name property is assessed, including an agent of a timeshare period titleholder. 27
In Central Carillon, the individual unit owners were assessed the taxes, not the associations. 28

The Associations argued that this law conflicts with condominium association law which generally
allows associations to represent unit owners through their rights of collective representation. 29

15 S. 718.120(1 ), F.S.; Office of the Attorney General, Advisory Legal Opinion - AGO 99-12, Mar. 8, 1999.
16 S. 194.011 (3)(e), F.S.
17 S. 194.171, F.S.

1a S. 194.011 (3)(e), F.S.
19 Id.
°Central Carillon Beach Condominium Association, Inc., et al., v. Garcia, etc, et al., 245 So. 3d 869 (Fla. 3d DCA 2018).
2
21 Id. at 869.
22 Id. at 870.
23 Id. at 871.
24 Id. at 869.
25 Id. at 871.
26 S. 194.036(1)(a), (b), F.S. In cases where the property appraiser is claiming a systematic violation of legal

requirements, the VAB is the defendant.
27 S. 192.001 (13), F.S.
28 Central Carillon, supra note 20, at 871.
29 Id. at 871, 872.
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Section 718.111 (3), F.S., in pertinent part, states that:

the association may institute ... or appeal actions or hearings in its name on
behalf of all unit owners concerning matters of common interest to most or
all unit owners, including, but not limited to, the common elements; the roof
and structural components of a building or other improvements; mechanical,
electrical, and plumbing elements serving an improvement or a building;
representations of the developer pertaining to any existing or proposed
commonly used facilities; and protesting ad valorem taxes on commonly
used facilities and on units; and may defend actions in eminent domain or
bring inverse condemnation actions. If the association has the authority to
maintain a class action, the association may be joined in an action as
representative of that class with reference to litigation and disputes involving the
matters for which the association could bring a class action. (Emphasis added).

The court found that the Associations' argument was unsupported, stating that the provision only
addresses ad valorem taxes in one phrase: "protesting ad valorem taxes on commonly used facilities
and on units." The Associations protested the ad valorem taxes on behalf of all units, but the lawsuits
brought by the Appraiser against the unit owners are not "protests." Rather, they are judicial review
proceedings in which the unit owners are defendants. The specific cases in which an association may
defend on behalf of all unit owners are "actions in eminent domain." 30

The Associations argued that because they could bring a class action if they were appealing a decision
of the VAB, they "may be joined in an action as a representative of that class with reference to
litigation .... " However, the court found thats. 718.111 (3), F.S., was not as precisely applied to the
Appraiser's lawsuits against the unit owners as the ad valorem litigation provision, s. 194.181 (2), F.S.,
which states that when an appraiser is the plaintiff seeking circuit court review of the VAB decision, "the
taxpayer shall be the party defendant. .. ."31

Based on this statutory interpretation, the court in Central Carillon found that current law does not allow
such an association to act on behalf of unit owners on appeal where a VAB decision is appealed by the
property appraiser. 32

Effect of the Bill

The bill amends current law to clarify that where an association has filed a single joint petition to
challenge a tax assessment, a condominium or cooperative association may continue to represent,
prosecute, and defend the unit owners through any related subsequent proceeding in any tribunal and
any appeals. This provision would apply to cases pending on July 1, 2020.

The bill provides that in any case brought by the property appraiser concerning a value adjustment
board decision on a single joint petition filed by a condominium or cooperative association, the
association and all unit owners included in the single joint petition are the party defendants.

In order to represent unit owners in such a proceeding, the condominium or cooperative association
must provide unit owners with notice of its intent to respond to or answer the property appraiser's
complaint, and advise the unit owners that they may elect to:
• retain their own counsel to defend the appeal;
• choose not to defend the appeal; or
• be represented together with other unit owners in the response or answer filed by the
association.

30 Id. at 872.
31 Id. at 872.
32 Id. at 873.
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Such notice must be mailed, delivered, or electronically transmitted to unit owners and posted
conspicuously on the condominium or cooperative property in the same manner for notice of board
meetings. Any unit owner who does not respond to the association's notice will be represented in the
response or answer filed by the association.

Specific to the Condominium Act, the bill provides that a condominium association, in its own name or
on behalf of some or all unit owners, may institute, file, protest, maintain, or defend any administrative
challenge, lawsuit, appeal, or other challenge to ad valorem taxes assessed on units for commonly
used facilities or common elements. The affected association members are not necessary or
indispensable parties to such actions. This provision is intended to clarify existing law and would apply
to cases pending on July 1, 2020.

Condominium Association Financial Issues

Background

The Division is the agency charged with ensuring that condominium associations comply with the
requirements of the Condominium Act. The Division also handles complaints alleging violations of the
Condominium Act. The Division has complete jurisdiction to investigate complaints and enforce
compliance with the Condominium Act for associations that are controlled by a developer, a bulk buyer,
or a bulk assignee. 33 Once a developer has turned control of the condominium to the association the
Division only has jurisdiction to investigate complaints related to financial issues, elections, and unit
owner access to official records. 34

The term "financial issues" is not defined in the Condominium Act. According to DBPR, this can result
in confusion for unit owners and associations for purposes of determining what types of complaints the
Division can investigate. Defining "financial issues" will give unit owners and associations a better
understanding of the types of financial issues that the Division may investigate. 35

Effect of the Bill

The bill defines "financial issues" to mean an issue related to:
• operating budgets;
• reserve schedules;
• accounting records;
• notices of meetings;
• minutes of meetings discussing budget or financial issues;
• assessments for common expenses, fees, or fines;
• the commingling of funds; and
• any other record necessary to determine the revenues and expenses of the association.

The bill also provides that the Division may adopt rules to further define "financial issues."

33 A bulk assignee is a person who buys more than seven units in a single condominium and receives assignment of any

of the developer's rights. A bulk buyer is a person who buys more than seven units in a single condominium but does not
receive any of the developer's rights. S. 718. 703, F.S.
34 Ss. 718.117, & 718.501, F.S.
35 Email from Colton Madill, Deputy Legislative Affairs Director, Department of Business and Professional Regulation, RE:

HB 1257 Community Associations (Jan. 22, 2020).
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Condominium Association Records

Background

Condominium associations are required to maintain official records for at least 7 years. The official
records must include: 36
• a copy of the articles of incorporation, declaration, bylaws, and rules of the association;
• meeting minutes;
• a roster of all owners or members, including the electronic mailing addresses and fax numbers
of unit owners consenting to receive notice by electronic transmission;
• a copy of any contracts to which the association is a party or under which the association or the
unit owners or members have an obligation;
• accounting records for the association;
• all contracts for work to be performed, including bids for work, materials, and equipment;
o cooperatives and HOAs are only required to maintain bids for one year;
• all ballots, sign-in sheets, voting proxies, and all other papers relating to voting by unit owners;
• a copy of the plans, permits, warranties, and other items provided by the developer; and
• all other written records which are related to the operation of the association.

An association must maintain the official records within the state of Florida and make them available for
inspection within 45 miles of the association or within the county where the association is located. 37

Associations must maintain accounting records in sufficient detail to permit determination of the
revenues and expenses or receipts and disbursements attributable to separate units and operating and
reserve funds. 38

Unit owners and renters may request to inspect and make copies of an association's official records,
and the association must make the records available for inspection within 10 business days of receiving
a written inspection request. 39 Failure to provide an owner or renter the requested official records within
10 business days of receiving a written request creates a rebuttable presumption that the association
willfully failed to provide the requested records. A unit owner who is denied access to the official
records is entitled to damages and costs. 40

An association may adopt reasonable rules regarding the frequency, time, location, notice, and manner
of record inspections. An association also has the option to make the official records available
electronically via the Internet or by allowing the records to be viewed in electronic format on a computer
screen. Additionally, associations with 150 or more units must maintain a website with digital copies of
certain official records such as meeting notices, a copy of the articles of incorporation, declaration,
bylaws, and rules of the association. 41

Current law provides what records a condominium association must maintain, and where the
condominium must maintain the records, but current law does not require associations to maintain the
official records in a specific manner or format. 42

According to DBPR, not having requirements for how associations must maintain official records can be
frustrating and time consuming for unit owners. According to DBPR, this is because a unit owner may
request to inspect the official records and an association may give them access to a room full of boxes

36 S. 718.111(12)(a), F.S.
37 S. 718.111(12)(b), F.S.

38 Rule 61 B-22.002, F.A.C.
39 S. 718.111 (12)(c), F.S.
40 Id.
41 S. 718.111(12)(b),(g), F.S.

4 2 See Ch. 718, F.S.
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or filing cabinets, and the unit owner may not understand the association's organization of the
records. 43

Effect of the Bill

The bill provides that condominium associations must maintain the official records in a manner and
format determined by the Division so that the records are easily accessible for inspection. The bill
allows the Division to investigate complaints against condominiums that are related to the maintenance
of the official records.

The bill also provides that when a unit owner or renter requests to inspect the official records, the
association must provide the owner or renter with a checklist of all the records that are being made
available for inspection. The checklist must also include a list of the requested official records that are
not being made available for inspection. The association must provide a sworn affidavit by the person
responding to the unit owner or renter's request attesting to the accuracy of the checklist along with the
checklist. The association must keep a copy of the checklist and the affidavit for at least seven years.

The bill provides that delivery of the checklist and the sworn affidavit creates a rebuttable presumption
that the association complied with the unit owner or renter's request to inspect the official records.

According to DBPR, requiring a checklist ensures that unit owners and renters will receive better
access to a condominium association's official records, and it will also provide insurance for
associations to show they complied with a unit owner or renter's request to inspect the official
records. 44

Condominium Educational Material Published by DBPR

Background

The Division provides training and educational programs for condominium association board directors
and unit owners such as publishing educational brochures and holding seminars for board directors
and unit owners, and maintains a toll-free hotline to assist unit owners. The Division may also approve
board director and unit owner education and training programs offered by third party providers. The
Division must maintain a current list of all approved programs and third party providers, and make the
list available to board directors and unit owners. 45

Effect of the Bill

The bill provides that the Division may adopt rules to establish requirements for the training and
educational programs provided by the Division.

Homeowners' Association Swimming Pools

Background

The Department of Health (DOH) is responsible for the oversight and regulation of water quality and
safety of public swimming pools in Florida under ch. 514, F.S. In order to operate or continue to operate
a public swimming pool, a valid operating permit from DOH must be obtained. If DOH determines that
the public swimming pool is, or may reasonably be expected to be, operated in compliance with state
laws and rules, DOH will issue a permit. However, if it is determined that the pool is not in compliance
with state laws and rules, the application for a permit will be denied. DOH is authorized to establish a

43 DBPR, supra note 33.
44 fd.
45S. 718.501(1)0), F.S.
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schedule of fees for plan approval and permitting. 46 Operating permits must be renewed annually and
may be transferred from one name or owner to another. 47

DOH may, at any reasonable time, enter any and all parts of a public swimming pool to examine and
investigate the pool's sanitary and safety conditions. 48 County health departments are responsible for
the routine surveillance of water quality in all public swimming pools. 49

Pools that are used by condominiums or cooperatives with 32 units or less and which are not being
operated as public lodging establishments are exempt from DOH's requirements for public pools. HOA
pools are not exempt from DOH regulation, even where the HOA has 32 homes or less. 50

Effect of the Bill

The bill provides that pools for HOAs, like current law for condominium and cooperative associations,
that have 32 parcels or less and are not being operated as public lodging establishments are exempt
from DOH's requirements for public pools, except for maintaining water quality standards.

B. SECTION DIRECTORY:

Section 1 Amends s. 194.011, F.S., allowing condominium and cooperative associations to
represent unit owners in certain proceedings.

Section 2 Amends s. 194.181, F.S., allowing condominium and cooperative associations to
represent unit owners in certain proceedings.

Section 3 Amends s. 514.0115, F.S., relating to Department of Health regulations of homeowners'
association swimming pools.

Section 4 Amends s. 718.111, F.S., allowing condominium associations to represent unit owners in
certain proceedings; relating to official records maintained by the condominium
association.

Section 5 Amends s. 718.501, F.S., defining "financial issues" related to condominium
associations; allowing DBPR to establish requirements for certain educational material.

Section 6 Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
Indeterminate. DBPR may see a minor increase in expenditures due to adopting new rules to
implement the bill.

46 S. 514.033, F.S.
47 Ss. 514.031(2) and (3), F.S.
48 S. 514.04, F.S.
49 S. 514.025, F.S.

so S. 514.0115(2). F.S.
STORAGE NAME: h1257.BPS.D0CX PAGE: 9
DATE: 1/21/2020
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
Indeterminate. See Fiscal Comments.

2. Expenditures:
Indeterminate. See Fiscal Comments.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Homeowners' associations may have less costs associated with maintaining swimming pools.
Condominium unit owners may save money by being able to be represented through all phases of a tax
assessment appeal.

D. FISCAL COMMENTS:
The fiscal impact is indeterminate. Local governments may have additional expenditures because of an
increase in legal challenges to tax assessments.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
DBPR will need to adopt rules related to establishing requirements for education programs, setting
standards and definitions for financial issues, and establishing procedures for the maintenance and
sharing of condominium association records. The rulemaking authority provided in the bill is sufficient.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: h1257.BPS.D0CX PAGE: 10
DATE: 1/21/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1257 2020

1 A bill to be entitled
2 An act relating to community associations; amending s.
3 194.011, F.S.; providing that certain associations may
4 represent, prosecute, or defend owners in certain
5 proceedings; providing applicability; amending s.
6 194.181, F.S.; providing and revising the parties
7 considered as the defendant in a tax suit; requiring
8 certain notice to be provided to unit owners in a
9 specified way; providing unit owners options for
10 defending a tax suit; imposing certain actions for
11 unit owners who fail to respond to a specified notice;
12 amending s. 514.0115, F.S.; providing that certain
13 property association pools are exempt from Department
14 of Health regulations; amending s. 718.111, F.S.;
15 providing that a condominium association may take
16 certain actions relating to a challenge to ad valorem
17 taxes in its own name or on behalf of unit owners;
18 providing applicability; requiring an association to
19 provide a checklist and affidavit relating to certain
20 records to certain persons; providing a timeframe for
21 maintaining such checklist and affidavit; creating a
22 rebuttable presumption; amending s. 718.501, F.S.;
23 defining the term "financial issue"; authorizing the
24 Division of Condominiums, Timeshares, and Mobile Homes
25 to adopt rules; providing an effective date.

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26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Paragraph (e) of subsection (3) of section
30 194.011, Florida Statutes, is amended to read:
31 194.011 Assessment notice; objections to assessments.-
32 (3) A petition to the value adjustment board must be in
33 substantially the form prescribed by the department.
34 Notwithstanding s. 195.022, a county officer may not refuse to
35 accept a form provided by the department for this purpose if the
36 taxpayer chooses to use it. A petition to the value adjustment
37 board must be signed by the taxpayer or be accompanied at the
38 time of filing by the taxpayer's written authorization or power
39 of attorney, unless the person filing the petition is listed in
40 s. 194.034(1) (a). A person listed ins. 194.034(1) (a) may file a
41 petition with a value adjustment board without the taxpayer's
42 signature or written authorization by certifying under penalty
43 of perjury that he or she has authorization to file the petition
44 on behalf of the taxpayer. If a taxpayer notifies the value
45 adjustment board that a petition has been filed for the
46 taxpayer's property without his or her consent, the value
47 adjustment board may require the person filing the petition to
48 provide written authorization from the taxpayer authorizing the
49 person to proceed with the appeal before a hearing is held. If
50 the value adjustment board finds that a person listed ins.

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51 194.034(1) (a) willfully and knowingly filed a petition that was
52 not authorized by the taxpayer, the value adjustment board shall
53 require such person to provide the taxpayer's written
54 authorization for representation to the value adjustment board
55 clerk before any petition filed by that person is heard, for 1
56 year after imposition of such requirement by the value
57 adjustment board. A power of attorney or written authorization
58 is valid for 1 assessment year, and a new power of attorney or
59 written authorization by the taxpayer is required for each
60 subsequent assessment year. A petition shall also describe the
61 property by parcel number and shall be filed as follows:
62 (ell.:_ A condominium association, as defined ins. 718.103,
63 a cooperative association, as defined ins. 719.103, or any
64 homeowners' association~ as defined ins. 723.075, with approval
65 of its board of administration or directors, may file with the
66 value adjustment board a single joint petition on behalf of any
67 association members who own units or parcels of property which
68 the property appraiser determines are substantially similar with
69 respect to location, proximity to amenities, number of rooms,
70 living area, and condition. The condominium association,
71 cooperative association, or homeowners' association as defined
72 ins. 723.07§ shall provide the unit or parcel owners with
73 notice of its intent to petition the value adjustment board and
74 shall provide at least 20 days for a unit or parcel owner to
75 elect, in writing, that his or her unit or parcel not be

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76 included in the petition.
77 2. A condominium association, as defined ins. 718.103, or
78 a cooperative association, as defined ins. 719.103, that has
79 filed a single joint petition under this subsection may continue
80 to represent, prosecute, and defend the unit owners through any
81 related subsequent proceeding in any tribunal, including
82 judicial review under part II of this chapter and any appeals.
83 This subparagraph is intended to clarify existing law and
84 applies to cases pending on July 1, 2020.
85 Section 2. Subsection (2) of section 194.181, Florida
86 Statutes, is amended to read:
87 194.181 Parties to a tax suit.-
88 (2)J...§l In any case brought by~ -Hte taxpayer or a
89 condominium or cooperative association, as defined in ss.
90 718.103 and 719.103 respectively, on behalf of some or all unit
91 owners, contesting the assessment of any property, the county
92 property appraiser is the shall be party defendant.
93 J...el In any case brought by the property appraiser under
94 pursuant to s. 194. 03 6 ( 1) (a) or (b) , the taxpayer is the shall
95 b-e party defendant.

96 (c)l. In any case brought by the property appraiser under
97 s. 194.036(1) (a) or (b) concerning a value adjustment board
98 decision on a single joint petition filed by a condominium or
99 cooperative association under s. 194.011(3), the association and
100 all unit owners included in the single joint petition are the

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101 party defendants.
102 2. The condominium or cooperative association must provide
103 unit owners with notice of its intent to respond to or answer
104 the property appraiser's complaint and advise the unit owners
105 that they may elect to:
106 a. Retain their own counsel to defend the appeal;
107 b. Choose not to defend the appeal; or
108 c. Be represented together with other unit owners in the
109 response or answer filed by the association.
110 3. The notice required in subparagraph 2. must be mailed,
111 delivered, or electronically transmitted to unit owners and
112 posted conspicuously on the condominium or cooperative property
113 in the same manner for notice of board meetings under ss.
114 718.112(2) and 719.106(1). Any unit owner who does not respond
115 to the association's notice will be represented in the response
116 or answer filed by the association.
117 JsD_ In any case brought by the property appraiser under
118 pursuant to s. 194.036(1) (c), the value adjustment board is the
119 shall be party defendant.
120 Section 3. Paragraph (a) of subsection (2) of section
121 514.0115, Florida Statutes, is amended to read:
122 514.0115 Exemptions from supervision or regulation;
123 variances.-
124 (2) (a) Pools serving condominium, cooperative, and
125 homeowners' associations, as well as other property

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126 associations, which have no more than 32 condominium or
127 cooperative units or parcels and which are not operated as a
128 public lodging establishments are establishment shall be exempt
129 from supervision under this chapter, except for water quality.
130 Section 4. Paragraph (a) of subsection (1), subsection
131 (3), and paragraphs (a), (b), (c), and (f) of subsection (12) of
132 section 718.111, Florida Statutes, are amended to read:
133 718.111 The association.-
134 (1) CORPORATE ENTITY.-
135 (a) The operation of the condominium shall be by the
136 association, which must be a Florida corporation for profit or a
137 Florida corporation not for profit. However, any association
138 which was in existence on January 1, 1977, need not be
139 incorporated. The owners of units shall be shareholders or
140 members of the association. The officers and directors of the
141 association have a fiduciary relationship to the unit owners. It
142 is the intent of the Legislature that nothing in this paragraph
143 shall be construed as providing for or removing a requirement of
144 a fiduciary relationship between any manager employed by the
145 association and the unit owners. An officer, director, or
146 manager may not solicit, offer to accept, or accept any thing or
147 service of value or kickback for which consideration has not
148 been provided for his or her own benefit or that of his or her
149 immediate family, from any person providing or proposing to
150 provide goods or services to the association. Any such officer,

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151 director, or manager who knowingly so solicits, offers to
152 accept, or accepts any thing or service of value or kickback is
153 subject to a civil penalty under s. 718.501(2) (d) pursuant too.
154 718.501(1) (d) and, if applicable, a criminal penalty as provided
155 in paragraph (d). However, this paragraph does not prohibit an
156 officer, director, or manager from accepting services or items
157 received in connection with trade fairs or education programs.
158 An association may operate more than one condominium.
159 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
160 SUE, AND BE SUED; CONFLICT OF INTEREST.-
161 ~ The association may contract, sue, or be sued with
162 respect to the exercise or nonexercise of its powers. For these
163 purposes, the powers of the association include, but are not
164 limited to, the maintenance, management, and operation of the
165 condominium property.
166 l.!:21_ After control of the association is obtained by unit
167 owners other than the developer, the association may~
168 1. Institute, maintain, settle, or appeal actions or
169 hearings in its name on behalf of all unit owners concerning
170 matters of common interest to most or all unit owners,
171 including, but not limited to, the common elements; the roof and
172 structural components of a building or other improvements;
173 mechanical, electrical, and plumbing elements serving an
174 improvement or a building; representations of the developer
175 pertaining to any existing or proposed commonly used facilities;

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176 2. Protest and protesting ad valorem taxes on commonly
177 used facilities and on units; and ffiay
178 3. Defend actions pertaining to ad valorem taxation of
179 commonly used facilities or units or related to ±n: eminent
180 domain; or
181 Bring inverse condemnation actions.
182 If the association has the authority to maintain a
183 class action, the association may be joined in an action as
184 representative of that class with reference to litigation and
185 disputes involving the matters for which the association could
186 bring a class action.
187 (d) The association, in its own name or on behalf of some
188 or all unit owners, may institute, file, protest, maintain, or
189 defend any administrative challenge, lawsuit, appeal, or other
190 challenge to ad valorem taxes assessed on units for commonly
191 used facilities or common elements. The affected association
192 members are not necessary or indispensable parties to such
193 actions. This paragraph is intended to clarify existing law and
194 applies to cases pending on July 1, 2020.
195 ~ Nothing herein limits any statutory or common-law
196 right of any individual unit owner or class of unit owners to
197 bring any action without participation by the association which
198 may otherwise be available.
199 J.!l An association may not hire an attorney who represents
200 the management company of the association.

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201 (12) OFFICIAL RECORDS.-
202 (a) From the inception of the association, the association
203 shall maintain each of the following items, if applicable, which
204 constitutes the official records of the association:
205 1. A copy of the plans, permits, warranties, and other
206 items provided by the developer under pursuant to s. 718.301(4).
207 2. A photocopy of the recorded declaration of condominium
208 of each condominium operated by the association and each
209 amendment to each declaration.
210 3. A photocopy of the recorded bylaws of the association
211 and each amendment to the bylaws.
212 4. A certified copy of the articles of incorporation of
213 the association, or other documents creating the association,
214 and each amendment thereto.
215 5. A copy of the current rules of the association.
216 6. A book or books that contain the minutes of all
217 meetings of the association, the board of administration, and
218 the unit owners.
219 7. A current roster of all unit owners and their mailing
220 addresses, unit identifications, voting certifications, and, if
221 known, telephone numbers. The association shall also maintain
222 the e-mail addresses and facsimile numbers of unit owners
223 consenting to receive notice by electronic transmission. Thee-
224 mail addresses and facsimile numbers are not accessible to unit
225 owners if consent to receive notice by electronic transmission

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226 is not provided in accordance with sub-subparagraph (c}3.e.
227 However, the association is not liable for an inadvertent
228 disclosure of the e-mail address or facsimile number for
229 receiving electronic transmission of notices.
230 8. All current insurance policies of the association and
231 condominiums operated by the association.
232 9. A current copy of any management agreement, lease, or
233 other contract to which the association is a party or under
234 which the association or the unit owners have an obligation or
235 responsibility.
236 10. Bills of sale or transfer for all property owned by
237 the association.
238 11. Accounting records for the association and separate
239 accounting records for each condominium that the association
240 operates. Any person who knowingly or intentionally defaces or
241 destroys such records, or who knowingly or intentionally fails
242 to create or maintain such records, with the intent of causing
243 harm to the association or one or more of its members, is
244 personally subject to a civil penalty under s. 718.501(2) (d}
245 pursuant to s. 718.501(1) (d). The accounting records must
246 include, but are not limited to:
247 a. Accurate, itemized, and detailed records of all
248 receipts and expenditures.
249 b. A current account and a monthly, bimonthly, or
250 quarterly statement of the account for each unit designating the

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251 name of the unit owner, the due date and amount of each
252 assessment, the amount paid on the account, and the balance due.
253 c. All audits, reviews, accounting statements, and
254 financial reports of the association or condominium.
255 d. All contracts for work to be performed. Bids for work
256 to be performed are also considered official records and must be
257 maintained by the association.
258 12. Ballots, sign-in sheets, voting proxies, and all other
259 papers and electronic records relating to voting by unit owners,
260 which must be maintained for 1 year from the date of the
261 election, vote, or meeting to which the document relates,
262 notwithstanding paragraph (b).
263 13. All rental records if the association is acting as
264 agent for the rental of condominium units.
265 14. A copy of the current question and answer sheet as
266 described ins. 718.504.
267 15. All other written records of the association not
268 specifically included in the foregoing which are related to the
269 operation of the association.
270 16. A copy of the inspection report as described ins.
271 718.301(4) (p).
272 17. Bids for materials, equipment, or services.
273 (b) The official records specified in subparagraphs (a)l.-
274 6. must be permanently maintained from the inception of the
275 association. All other official records must be maintained

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276 within the state for at least 7 years, unless otherwise provided
277 by general law. All official records must be maintained in a
278 manner and format determined by the division so that the records
279 are easily accessible for inspection. The records of the
280 association shall be made available to a unit owner within 45
281 miles of the condominium property or within the county in which
282 the condominium property is located within 10 working days after
283 receipt of a written request by the board or its designee.
284 However, such distance requirement does not apply to an
285 association governing a timeshare condominium. This paragraph
286 may be complied with by having a copy of the official records of
287 the association available for inspection or copying on the
288 condominium property or association property, or the association
289 may offer the option of making the records available to a unit
290 owner electronically via the Internet or by allowing the records
291 to be viewed in electronic format on a computer screen and
292 printed upon request. The association is not responsible for the
293 use or misuse of the information provided to an association
294 member or his or her authorized representative pursuant to the
295 compliance requirements of this chapter unless the association
296 has an affirmative duty not to disclose such information
297 pursuant to this chapter.
298 (c)l. The official records of the association are open to
299 inspection by any association member or the authorized
300 representative of such member at all reasonable times. The right

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301 to inspect the records includes the right to make or obtain
302 copies, at the reasonable expense, if any, of the member or
303 authorized representative of such member. A renter of a unit has
304 a right to inspect and copy the association's bylaws and rules.
305 The association must provide a checklist to the member,
306 authorized representative of such member, or renter of all
307 records that are made available for inspection and copying in
308 response to a written request. If any or all of the
309 association's official records are not available, such records
310 must be identified on the checklist provided to the person
311 requesting the records. The association must also provide the
312 person requesting the records a sworn affidavit attesting to the
313 veracity of the checklist executed by the person responding to
314 the written request on behalf of the association. The
315 association must maintain a copy of the checklist and affidavit
316 for at least 7 years. Delivery of the checklist and sworn
317 affidavit to the person requesting the records creates a
318 rebuttable presumption that the association complied with this
319 paragraph. The association may adopt reasonable rules regarding
320 the frequency, time, location, notice, and manner of record
321 inspections and copying. The failure of an association to
322 provide the records within 10 working days after receipt of a
323 written request creates a rebuttable presumption that the
324 association willfully failed to comply with this paragraph. A
325 unit owner who is denied access to official records is entitled

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326 to the actual damages or minimum damages for the association's
327 willful failure to comply. Minimum damages are $50 per calendar
328 day for up to 10 days, beginning on the 11th working day after
329 receipt of the written request. The failure to permit inspection
330 entitles any person prevailing in an enforcement action to
331 recover reasonable attorney fees from the person in control of
332 the records who, directly or indirectly, knowingly denied access
333 to the records.
334 2. Any person who knowingly or intentionally defaces or
335 destroys accounting records that are required by this chapter to
336 be maintained during the period for which such records are
337 required to be maintained, or who knowingly or intentionally
338 fails to create or maintain accounting records that are required
339 to be created or maintained, with the intent of causing harm to
340 the association or one or more of its members, is personally
341 subject to a civil penalty under s. 718.501(2) (d) pursuant too.
342 718. 501 (1) (d).
343 3. The association shall maintain an adequate number of
344 copies of the declaration, articles of incorporation, bylaws,
345 and rules, and all amendments to each of the foregoing, as well
346 as the question and answer sheet as described ins. 718.504 and
347 year-end financial information required under this section, on
348 the condominium property to ensure their availability to unit
349 owners and prospective purchasers, and may charge its actual
350 costs for preparing and furnishing these documents to those

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351 requesting the documents. An association shall allow a member or
352 his or her authorized representative to use a portable device,
353 including a smartphone, tablet, portable scanner, or any other
354 technology capable of scanning or taking photographs, to make an
355 electronic copy of the official records in lieu of the
356 association's providing the member or his or her authorized
357 representative with a copy of such records. The association may
358 not charge a member or his or her authorized representative for
359 the use of a portable device. Notwithstanding this paragraph,
360 the following records are not accessible to unit owners:
361 a. Any record protected by the lawyer-client privilege as
362 described ins. 90.502 and any record protected by the work-
363 product privilege, including a record prepared by an association
364 attorney or prepared at the attorney's express direction, which
365 reflects a mental impression, conclusion, litigation strategy,
366 or legal theory of the attorney or the association, and which
367 was prepared exclusively for civil or criminal litigation or for
368 adversarial administrative proceedings, or which was prepared in
369 anticipation of such litigation or proceedings until the
370 conclusion of the litigation or proceedings.
371 b. Information obtained by an association in connection
372 with the approval of the lease, sale, or other transfer of a
373 unit.
374 c. Personnel records of association or management company
375 employees, including, but not limited to, disciplinary, payroll,

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376 health, and insurance records. For purposes of this sub-
377 subparagraph, the term "personnel records" does not include
378 written employment agreements with an association employee or
379 management company, or budgetary or financial records that
380 indicate the compensation paid to an association employee.
381 d. Medical records of unit owners.
382 e. Social security numbers, driver license numbers, credit
383 card numbers, e-mail addresses, telephone numbers, facsimile
384 numbers, emergency contact information, addresses of a unit
385 owner other than as provided to fulfill the association's notice
386 requirements, and other personal identifying information of any
387 person, excluding the person's name, unit designation, mailing
388 address, property address, and any address, e-mail address, or
389 facsimile number provided to the association to fulfill the
390 association's notice requirements. Notwithstanding the
391 restrictions in this sub-subparagraph, an association may print
392 and distribute to unit parcel owners a directory containing the
393 name, unit parcel address, and all telephone numbers of each
394 unit parcel owner. However, an owner may exclude his or her
395 telephone numbers from the directory by so requesting in writing
396 to the association. An owner may consent in writing to the
397 disclosure of other contact information described in this sub-
398 subparagraph. The association is not liable for the inadvertent
399 disclosure of information that is protected under this sub-
400 subparagraph if the information is included in an official

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401 record of the association and is voluntarily provided by an
402 owner and not requested by the association.
403 f. Electronic security measures that are used by the
404 association to safeguard data, including passwords.
405 g. The software and operating system used by the
406 association which allow the manipulation of data, even if the
407 owner owns a copy of the same software used by the association.
408 The data is part of the official records of the association.
409 (f) An outgoing board or committee member must relinquish
410 all official records and property of the association in his or
411 her possession or under his or her control to the incoming board
412 within 5 days after the election. The division shall impose a
413 civil penalty as set forth in s. 718.501 (2) (d) 6. -s--.-
414 718.§01 (1) (d)6. against an outgoing board or committee member
415 who willfully and knowingly fails to relinquish such records and
416 property.
417 Section 5. Subsections (1) and (2) of section 718.501,
418 Florida Statutes, are renumbered as subsections (2) and (3),
419 respectively, paragraphs (h) and (j) of present subsection (1)
420 of that section are amended, and a new subsection (1) is added
421 to that section, to read:
422 718.501 Authority, responsibility, and duties of Division
423 of Florida Condominiums, Timeshares, and Mobile Homes.-
424 (1) As used in this section, the term "financial issue"
425 means an issue related to operating budgets; reserve schedules;

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426 accounting records under s. 718.111(12) (a)ll.; notices of
427 meetings; minutes of meetings discussing budget or financial
428 issues; assessments for common expenses, fees, or fines; the
429 commingling of funds; and any other record necessary to
430 determine the revenues and expenses of the association. The
431 division may adopt rules to further define what a financial
432 issue is under this section.
433 J1.l+±+ The division may enforce and ensure compliance with
434 the provisions of this chapter and rules relating to the
435 development, construction, sale, lease, ownership, operation,
436 and management of residential condominium units. In performing
437 its duties, the division has complete jurisdiction to
438 investigate complaints and enforce compliance with respect to
439 associations that are still under developer control or the
440 control of a bulk assignee or bulk buyer pursuant to part VII of
441 this chapter and complaints against developers, bulk assignees,
442 or bulk buyers involving improper turnover or failure to
443 turnover, pursuant to s. 718.301. However, after turnover has
444 occurred, the division has jurisdiction to investigate
445 complaints related only to financial issues, elections, and the
446 maintenance of and unit owner access to association records
447 under pursuant to s. 718.111(12).
448 (h) The division shall furnish each association that pays
449 the fees required by paragraph (3) (a) paragraph (2) (a) a copy of
450 this chapter, as amended, and the rules adopted thereto on an

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1257 2020

451 annual basis.
452 (j) The division shall provide training and educational
453 programs for condominium association board members and unit
454 owners. The training may, in the division's discretion, include
455 web-based electronic media, and live training and seminars in
456 various locations throughout the state. The division may review
457 and approve education and training programs for board members
458 and unit owners offered by providers and shall maintain a
459 current list of approved programs and providers and make such
460 list available to board members and unit owners in a reasonable
461 and cost-effective manner. The division may adopt rules to
462 establish requirements for the training and educational programs
463 required in this paragraph.
464 Section 6. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1275 Amusement Rides
SPONSOR(S): Pritchett
TIED BILLS: IDEN./SIM. BILLS: SB 1228

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee

2) Agriculture & Natural Resources Appropriations
Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The Department of Agriculture and Consumer Services (DACS) is required to inspect all amusement rides in
Florida, except those at large parks with more than 1,000 employees and inspectors on staff. All temporary
amusement rides are inspected each time they are moved or set up at a new location, and permanent rides
are inspected semiannually. All amusement rides are required to be permitted annually, required to undergo
nondestructive testing for structural integrity, and must have an annual inspection by a professional engineer or
qualified inspector. DACS can investigate accidents, impose sanctions for violations, and close and impound
amusement rides that are a danger to the public.

The bill:
• Includes amusement ride managers as a responsible party for ensuring compliance with state
regulations;
• Exempts permanent rides from DACS inspection when inspected by an accredited trade organization;
• Separates the permitting process for permanent and temporary amusement rides, and streamlines the
application process;
• Authorizes DACS to revise the 6-month inspection interval at permanent facilities;
• Requires ride documents to be submitted to DACS in electronic format;
• Broadens DACS rulemaking authority related to establishing certain exemptions;
• Removes an exemption for museums and other exhibition related institutions;
• Conforms state standards for testing, materials, electric, and fire protection to national standards;
• Requires signage containing DACS contact information to be displayed at ride events;
• Requires certification to DACS before a modified ride is placed back in operation;
• Grants subpoena powers to DACS;
• Criminalizes the refusal or failure to testify pursuant to a DACS subpoena;
• Increases the limit for administrative fines from "not to exceed $2,500" to "not to exceed $10,000" per
violation; and
• Allows DACS to impose an additional $10,000 fine for violations resulting in serious injury or death.

The bill will have an insignificant fiscal impact on state government and the private sector. The bill is not
expected to have a fiscal impact on local governments. See Fiscal Analysis.

The effective date of the bill is July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1275.BPS.DOCX
DATE: 1/24/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

The Department of Agriculture and Consumer Services (DACS) is required to inspect all amusement
rides in Florida, except those at large parks with more than 1,000 employees and an inspector on staff.
The Bureau of Fair Rides Inspection within DACS is required to inspect, investigate, and enforce the
regulations related to amusement rides. 1

Amusement rides regulated in the state of Florida fall into two categories:
• Temporary rides are those that are regularly relocated with or without assembly; and
• Permanent rides are those that are not regularly relocated. 2

All temporary amusement rides are inspected each time they are moved or set up at a new location,
and permanent rides are inspected semiannually. All amusement rides are required to be permitted
annually, required to undergo nondestructive testing for structural integrity, and must have an annual
inspection by a professional engineer or qualified inspector. 3

DACS also inspects go-kart tracks, water-related amusement rides and zipline courses operating in the
state. 4

In addition, DACS investigates accidents involving amusement rides and has the authority to impose
sanctions on amusement ride owners for violation of the law. DACS can close and impound
amusement rides that pose an immediate serious danger to public health, safety and welfare. 5

Adoption of Standards

DACS is required to adopt by rule standards for amusement rides which are the same as or similar to
the following national standards:
• American Society for Testing and Materials Committee F-24 Standards on Amusement Rides
and Devices.
• National Electric Code Handbook, Article 525.
• National Fire Protection Code 101 (chapters 8-4.6 and 9-4.6).
• ASTM Standards: E543 Practice for Determining the Qualification of Nondestructive Testing
Agencies.
• ASNT Document Recommended Practice SNT-TC-1A Personnel Qualification and Certification
in Nondestructive Testing. 6

DACS is authorized to adopt rules necessary to effectuate its statutory duties in the interest of public
health, safety, and welfare and to promote patron safety in the design, construction, assembly,
disassembly, maintenance, and operation of amusement rides in this state.7

1
S. 616.242, F.S.
z Id.
3
Florida Department of Agriculture and Consumer Services, Fair Rids Inspection, https://www.fdacs.gov/Business-
Services/Fairs/Fair-Rides-Inspection (last visited Jan. 22, 2020).
4 Id.

s Id.
6
S. 616.242(4), F.S.
7 Id.
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There are no mandatory national safety standards for U.S. amusement rides, but the amusement ride
industry has developed safety standards through the ASTM F-24 committee. The ASTM F-24
committee is responsible for standards related to amusement rides and devices. This includes
waterslides, inflatables, go-karts, ziplines and challenge courses, trampoline courts, and a growing list
of commercially-operated amusement experiences. 8

Annual Permits

Amusement rides may not operate without an annual permit. To apply, an owner must submit to DACS
a written application on a form prescribed by DACS rule, and include:
• The legal name, address, and primary place of business of the owner.
• A description, manufacturer's name, serial number, model number and, if previously assigned,
the United States Amusement Identification Number of the amusement ride.
• A valid certificate of insurance for each amusement ride.
• An affidavit of compliance (AOC) that the amusement ride was inspected and in general
conformance with the law and applicable rules.
o The AOC must be executed by a professional engineer or a qualified inspector no earlier
than 60 days before, but not later than, the date of filing of the application with DACS.
o The owner is required to request inspection and permitting of the amusement ride within
60 days of the date of filing the application with DACS.
o DACS is required to inspect and permit the amusement ride within 60 days after the
filing of the application with DACS.
• If required, an affidavit of nondestructive testing dated and executed no earlier than 60 days
before, but not later than, the date of the filing of the application with DACS.
o The owner is required to request inspection and permitting of the amusement ride within
60 days of the date of filing the application with DACS.
o DACS is required to inspect and permit the amusement ride within 60 days after the
filing of the application with DACS.
• A request for inspection. 9

Upon request, the owner must, at no cost to DACS, provide DACS with a copy of the manufacturer's
current recommended operating instructions in the possession of the owner, the owner's operating fact
sheet, and any written bulletins in the possession of the owner concerning the safety, operation, or
maintenance of the amusement ride. 10

An annual permit must be issued to the owner when a completed application has been received, the
amusement ride has passed DACS inspection, and all applicable fees, as set by DACS rule, 11 have
been paid. 12

The annual permit:
• Is valid for 1 year from the date of issuance;
• Is not transferable; and
• Must be displayed on the amusement ride in a place that is visible to patrons. 13

8
ASTM International, Committee F24 on Amusement Rides and Devices, https://www.astm.org/COMMITTEE/F24.htm (last visited
Jan. 23, 2020).
9
S. 616.242(5), F.S.
10 Id.

II R. 51-18.012, F.A.C.
12
S. 616.242(5), F.S.
13 Id.
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DATE: 1/24/2020
Nondestructive Testing

In order to operate an amusement ride the owner must at all times have a current affidavit of
nondestructive testing from a professional engineer or qualified inspector. The affidavit provides that
the amusement ride has undergone nondestructive testing for metal fatigue at least annually. 14
Nondestructive testings must be performed by a technician who meets the national standards for
amusement rides provided in DACS rule. 15

Nondestructive testing for metal fatigue must include visual and nonvisual testing, and can be
conducted more often than annually, if required by any rule adopted under this section, the
manufacturer of the amusement ride, or the professional engineer or qualified inspector executing the
affidavit of nondestructive testing. 16

An affidavit of nondestructive testing must provide:
• That the amusement ride was inspected in person by the affiant.
• That all nondestructive testing requirements are current.
• That the nondestructive testing was performed by a qualified nondestructive testing technician.
• The components of the amusement ride for which the manufacturer has recommended or
required nondestructive testing.
• The type of nondestructive testing required or recommended by the manufacturer.
• The frequency of the nondestructive testing required or recommended by the manufacturer.
• The components of the amusement ride for which the affiant has recommended or required
nondestructive testing.
• The type of nondestructive testing required or recommended by the affiant.
• The frequency of the nondestructive testing as required or recommended by the affiant.
• That visual nondestructive testing is adequate for the amusement ride to be in general
conformance with the requirements of this section, and all applicable rules, if only visual
nondestructive testing is required or recommended by either the manufacturer or the affiant. 17

Nondestructive testing is not required for:
• Fun houses;
• Houses of mirrors;
• Haunted houses;
• Mazes;
• Wave pools;
• Wave-making devices;
• Kiddie pools;
• Slides that are fully supported by an earthen mound;
• Nonmotorized playground equipment that requires a manager; or
• Lazy-river-type nonmotorized floating carriers propelled by water. 18

Inspections

In order to obtain an annual permit, amusement rides must be inspected by DACS and receive an
inspection certificate. In addition, the following requirements must be met:
• Permanent amusement rides must be inspected semiannually and receive an inspection
certificate; and

14
S. 616.242(6), F.S.
15 Jd
16 Id
11 Id
is Id
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• Temporary amusement rides must be inspected and receive an inspection certificate each time
the ride is set up or moved to a new location in this state unless the ride is:
o Used at a private event;
o A simulator, the capacity of which does not exceed 16 persons; or
o A kiddie ride used at a public event, provided that there are no more than three amusement
rides at the event, none of the kiddie rides at the event exceeds a capacity of 12 persons,
and the ride has an inspection certificate that was issued within the preceding 6 months. 19

To obtain a DACS inspection, the owner must submit a written request to DACS, on a DACS
prescribed form, and provide the following information:
• The legal name, address, and primary place of business of the owner.
• A description, manufacturer's name, serial number, model number, and the United States
Amusement Identification Number, if previously assigned, of the amusement ride.
• For a temporary amusement ride, for each time the amusement ride is set up or moved to a
new location, the date of first intended use at the new location and the address or a description
of the new location. 20

For permanent amusement rides, a request for inspection must be received by DACS at least 15 days
before the:
• Owner's planned opening date; or
• Expiration of the prior inspection certificate. 21

For temporary amusement rides, the request for inspection must be received by DACS each time the
amusement ride is set up or moved to a new location at least 14 days before the date of first intended
use at the new location. 22

In both cases, if the request for inspection is received late, DACS is authorized to inspect the
amusement ride and charge a late fee. In addition, if the owner fails to timely.cancel a Request for
Inspection, requests holiday or weekend inspections, or is required to have a replacement United
States Amusement ID Program (USAID) plate issued by DACS, the owner may be charged an
appropriate fee. 23

Inspections are assigned on a first come, first served basis, and overflow requests will be scheduled on
the closest date to the date for which the inspection was requested. Upon failure of an amusement ride
to pass an inspection, the owner may request in writing a reinspection. DACS is required to reinspect
the ride as soon as practical following receipt of the:
• Written request; and
• Applicable reinspection fees. 24

Upon passage of inspection and payment of the applicable fee, DACS must issue an inspection
certificate containing the following information:
• Date of inspection;
• Site of the inspection; and
• Name of the inspector. 25

19
S. 616.242(7), F.S.
20 Jd
21Id
22 Id
23 Id
24 Id
25 Id.
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DATE: 1/24/2020
Inspection certificates are valid only for the site stated on the certificate, for a period of not more than 6
months from the date of issuance, are not transferable, and must be displayed on the amusement ride
at a place readily visible to patrons. 26

According to DACS, during fiscal year 2018-2019, it inspected 8,689 amusement rides, and identified
19,249 deficiencies. 27

Fees

DACS is required by rule to establish fees to cover the costs and expenditures associated with the fair
rides inspection program, including all direct and indirect costs. If there is not sufficient general revenue
appropriated by the Legislature, the industry is required to pay for the remaining cost of the program. 28

Fees must be deposited in the General Inspection Trust Fund. Any owner of an amusement ride who
has not paid all the fees required under this section or who has any unpaid fine outstanding under this
section are prohibited from operating any amusement ride in this state until the fees and fines have
been paid to DACS. 29

DACS has adopted the following fees: 30

Annual permit for any amusement ride $500.00
Annual permit for anv bunov iump $500.00
Inspection fee for each inspection of a kiddie amusement ride $45.00
Inspection fee for each inspection of a non-kiddie amusement ride $90.00
Inspection fee for each inspection of a super amusement ride $175.00
Inspection fee per oo kart, in addition to the track inspection fee $10.00
Reinspection fee (return to site) $500.00
Reinspection fee (return on-site) $100.00
Fee to replace a lost U.S. Amusement Identification (USAID) plate $100.00
Fee per amusement ride for late inspection request $100.00
Fee per amusement ride for failure to cancel inspection request $100.00
Additional fee per amusement ride for inspection on weekend or state holiday $75.00

Insurance

In order to obtain a permit to operate an amusement ride in Florida, the ride owner must obtain injury
liability insurance in the following amounts:
• One million dollars minimum per occurrence; and
• One million dollars in the aggregate. 31

The policies must be procured from an insurer that is:
• Licensed to transact business in this state; or
• Approved as a surplus lines insurer. 32

The insurance requirements do not apply to a governmental entity that is covered by the provisions of
s. 768.28(16), F.S., which authorizes the state and its agencies and subdivisions to be:

26 Id.
27
The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,
Inspection/Deficiency Statistics.
28
S. 616.242(8), F.S.
29 Id.
30
R. SJ-18.012, F.A.C.
31
S. 616.242(8), F.S.
32 Id.
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DATE: 1/24/2020
• Self-insured,
• Enter into risk management programs,
• Purchase liability insurance for whatever coverage they may choose, or
• Have any combination thereof. 33

Exemptions

The regulations related to amusement rides do not apply to the following:
• Permanent facilities that employ at least 1,000 full-time employees and that maintain full-time,
in-house safety inspectors;
• Any playground operated by a school, local government, or business licensed under chapter
509, F.S., if the playground is an incidental amenity and the operating entity is not primarily
engaged in providing amusement, pleasure, thrills, or excitement;
• Museums or other institutions principally devoted to the exhibition of products of agriculture,
industry, education, science, religion, or the arts;
• Conventions or trade shows for the sale or exhibit of amusement rides if there are a minimum of
15 amusement rides on display or exhibition, and if any operation of such amusement rides is
limited to the registered attendees of the convention or trade show;
• Skating rinks, arcades, laser or paint ball war games, bowling alleys, miniature golf courses,
mechanical bulls, inflatable rides, trampolines, ball crawls, exercise equipment, jet skis, paddle
boats, airboats, helicopters, airplanes, parasails, hot air or helium balloons whether tethered or
untethered, theatres, batting cages, stationary spring-mounted fixtures, rider-propelled merry-
go-rounds, games, side shows, live animal rides, or live animal shows;
• Go-karts operated in competitive sporting events if participation is not open to the public;
• Nonmotorized playground equipment that is not required to have a manager;
• Coin-actuated amusement rides designed to be operated by depositing coins, tokens, credit
cards, debit cards, bills, or other cash money and which are not required to have a manager,
and which have a capacity of six persons or less;
• Motorsports facilities described ins. 549.09(1)(a), F.S., when such facilities are operating cars,
trucks, or motorcycles only;
• Battery-powered cars or other vehicles that are designed to be operated by children seven
years of age or under and that cannot exceed a speed of four miles per hour;
• Mechanically driven vehicles that pull train cars, carts, wagons, or other similar vehicles, that
are not confined to a metal track or confined to an area but are steered by an operator and do
not exceed a speed of 4 miles per hour;
• Water-related amusement rides operated by a business licensed under chapter 509, F.S., if the
water-related amusement ride is an incidental amenity and the operating business is not
primarily engaged in providing amusement, pleasure, thrills, or excitement and does not offer
day rates;
• Amusement rides at a private, membership-only facility if the amusement ride is an incidental
amenity and the facility is not open to the general public; is not primarily engaged in providing
amusement, pleasure, thrills, or excitement; and does not offer day rates; and
• Nonprofit permanent facilities registered under chapter 496, F.S., which are not open to the
general public. 34

DACS is authorized to establish by rule exemptions from the regulations on amusement rides for
"nonmotorized or human-powered amusement rides or coin-actuated amusement rides." 35

33 Id.
34
S. 616.242(10), F.S.
35 Id.
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Inspection Standards

Amusement rides are required to adhere to the following inspection standards:
• All mechanical, structural, and electrical components that affect patron safety must be in good
working order.
• All control devices, speed-limiting devices, brakes, and safety equipment designated by the
manufacturer must be in good working order.
• Parts must be properly aligned, and not be bent, distorted, cut, or otherwise injured to force a fit.
• Parts requiring lubrication must be lubricated in the course of assembly. Fastening and locking
devices must be installed where required for safe operation.
• Before being used by the public, an amusement ride must be placed or secured with blocking,
cribbing, outriggers, guys, or other means so as to be stable under all operating conditions.
• Areas in which patrons may be endangered by the operation of an amusement ride must be
fenced, barricaded, or otherwise effectively guarded against inadvertent contact.
• Machinery used in or with an amusement ride must be enclosed, barricaded, or otherwise
effectively guarded against inadvertent contact.
• An amusement ride powered so as to be capable of exceeding its maximum safe operating
speed must be provided with a maximum-speed-limiting device.
• The interior and exterior parts of all patron-carrying amusement rides with which a patron may
come in contact must be smooth and rounded and free from sharp, rough, or splintered edges
and corners, with no projecting studs, bolts, screws, or other projections which might cause
injury.
• Signs that advise or warn patrons of age restrictions, size restrictions, health restrictions, weight
limitations, or any other special consideration or use restrictions required or recommended for
the amusement ride by the manufacturer must be prominently displayed at the patron entrance
of each amusement ride.
• All amusement rides must comply with the section of law governing amusement rides and
related rules. 36

Major Modifications

After an amusement ride has undergone a major modification, and prior to the time it is placed in
operation, a Florida Licensed professional engineer must certify that the amusement ride is in
compliance with the entire section of law governing amusement ride safety, and all related rules. 37

Entry for Inspections

Authorized DACS employees may enter unannounced and inspect amusement rides at any time in a
reasonable manner. Such employees are authorized to:
• Question any owner or manager;
• Inspect, investigate, photograph, and sample all pertinent places, areas, and devices; and
• Conduct all appropriate tests including nondestructive testing. 38

DACS is authorized to impose fees for unannounced inspections and recover the cost of related tests. 39

Reporting and Investigating Accidents and Defects

Accidents that the owner or manager have knowledge or, through the exercise of reasonable diligence
should have knowledge, and for which a patron is transported to a hospital, as defined in chapter 395,

36
S. 616.242(11), F.S.
37
S. 616.242(12), F.S.
38
S. 616.242(13), F.S.
39 Id.
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DATE: 1/24/2020
F.S., must be reported by the owner or manager to DACS. Such reporting must be conducted by
telephone within four hours after the accident, and followed up by a written report to DACS within 24
hours after the accident.

Any mechanical, structural, or electrical defects affecting patron safety for which an amusement ride is
closed to patron use for more than four hours must be reported by the owner or manager to DACS by
telephone or facsimile within eight hours after the closing of the ride. A written report of the closing
must be filed by the owner or manager with DACS within 24 hours after the ride closes.

In addition, DACS is authorized to impound amusement rides that have:
• Been involved in an accident for which a patron is transported to a hospital as defined in
chapter 395, F.S.;
• A mechanical, structural, or electrical defect affecting patron safety.

In cases of impoundment, DACS is authorized to impound any other amusement ride of a similar make
and model, and perform all necessary tests to determine the cause of the accident, defect, or safety of
the ride and any other ride of a similar make and model. The ride owners are responsible for the cost of
impoundment and relating testing. 40

According to DACS, in fiscal year 2018-2019, there were 191 amusement ride accidents reported. 41

Owner/Manager Inspections

Prior to opening each day of operation, and before any inspection by DACS, the owner or manager of
an amusement ride is required to inspect and test the ride to ensure compliance with all requirements
of the law governing amusement rides. Each inspection must be recorded on a form prescribed by
DACS rule and signed by the person who conducted the inspection. 42

In lieu of using the DACS form, an owner or manager may request approval of an alternative form,
which must include at least the information required on the DACS form. Inspection records of the last
14 daily inspections must be:
• Kept on site by the owner or manager; and
• Made immediately available to DACS upon request. 43

Employee Training

Owners or managers of amusement rides are required to:
• Maintain a record of employee training for each employee who is authorized to operate,
assemble, disassemble, transport, or conduct maintenance on an amusement ride; and
• Certify that each employee is trained on the amusement ride for which the employee is
responsible. 44

The training record must be kept on site by the owner or manager and made immediately available to
DACS upon request. In lieu of using the DACS form, the owner or manager may request approval of an
alternative form. 45

40
S. 616.242(14), F.S.
41
The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,
Inspection/Deficiency Statistics.
42
S. 616.242(15), F.S.
43 Id.
44
S. 616.242(16), F.S.
45 Id.
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Training is prohibited when an amusement ride is open to the public, unless the training is conducted
under the supervision of an employee who is trained in the operation of that ride. 46

Enforcement and Penalties

DACS has the authority to deny, suspend for up to one year, or revoke, any permit or inspection
certificate. In addition, DACS may impose an administrative fine pursuant to s. 570.971, F.S., not to
exceed $2,500 per violation, for each day the violation exists, against the owner of the amusement ride
if DACS finds that:
• An amusement ride has operated or is operating:
o With a mechanical, structural, or electrical defect that affects patron safety, of which the
owner or manager has knowledge, or, through the exercise of reasonable diligence,
should have knowledge;
o In a manner or circumstance that presents a risk of serious injury to patrons;
o At a speed in excess of its maximum safe operating speed;
o In violation of DACS rules or state law; or
o In violation of an order of DACS or any court; or
• A manager in the course of his or her duties is under the influence of drugs or alcohol. 47

DACS is required, in its order suspending a permit or inspection certificate, to specify the period during
which the suspension is effective, which may not exceed 1 year. The permit or inspection certificate
must remain suspended during the period, subject to any rescission or modification of the order by
DACS, or modification or reversal by the court, prior to expiration of the suspension period. 48

The owner of an amusement ride, whose permit or inspection certificate has been revoked by DACS,
may not apply for another permit or inspection certificate for the amusement ride within 2 years after
the date of the revocation. If judicial review is sought and a stay of the revocation is obtained, the
owner may not apply for another permit or inspection certificate within two years after the final order of
the court sustaining the revocation. 49

During the period of suspension or revocation, the owner may not engage in or attempt to engage in
any operation of the amusement ride for which a permit or inspection certificate is required. 50

When a DACS imposed suspension period has expired, the owner may reapply for a new permit or
inspection certificate by submitting a complete application to DACS. 51

In addition, and notwithstanding the existence of any adequate remedy at law, DACS is authorized to
bring an action to enjoin the violation of any provision, or rules adopted, under this section, in the circuit
court of the county in which the violation occurs or is about to occur. Upon competent and substantial
evidence presented by DACS, the court is required to immediately issue the temporary or permanent
injunction sought by DACS without bond. 52

In addition to the penalties, DACS is authorized to issue a letter of warning to the owner of the ride
specifying the violation and requiring immediate corrective action. 53

46 Id.
47
S. 616.242(19), F.S.
48 Id.
49 Id.
50 Id.
51 Id.
52 Id.
53 Id.
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DATE: 1/24/2020
Any person who knowingly violates any of the provisions of the regulations governing amusement rides
commits a misdemeanor of the second degree, punishable as provided in s. 775.082 ors. 775.083,
F.S.54

According to DACS, during fiscal year 2018-2019, it issued 169 stop operation orders, and 801 out-of-
service tags. 55

Consumer Product Safety Commission

The Consumer Product Safety Commission (Commission) is charged with protecting the public from
unreasonable risks of injury or death associated with the use of the thousands of types of consumer
products under the agency's jurisdiction. The Consumer Product Safety Act (Act) 56 authorizes the
Commission to investigate serious accidents involving portable carnival rides, inflatables, and go-karts.
Amusement rides operated at permanent parks ("permanently fixed to a site") are exempt from
compliance with the Act. 57

Ride manufacturers or owner/operators are required to notify the Commission if they obtain information
which reasonably supports the conclusion that a portable amusement ride, inflatable device, go-kart or
other non-exempt amusement device:
• Fails to comply with a consumer product safety standard or banning regulation established by
the omission or a voluntary consumer product safety standard upon which the Commission has
relied under section 9 of the CPSA;
• Contains a defect which could create a substantial product hazard described in section 15(a)(2)
of the CPSA; or
• Creates an unreasonable risk of serious injury or death. 58

The Commission does not provide for an inspection program.

Other States

According to a consumer safety organization, Safeparks.org, the research of amusement ride laws in
50 states found the following: 59

9 states
8 states
1 state

Proposed Changes

The bill makes several changes to the framework of regulations that govern the safety standards for
amusement rides in the state.

54 Id.
55 The Florida Department of Agriculture and Consumer Services, Bureau of Fair Rides Inspection Statistical Data,

Inspection/Deficiency Statistics.
56
15 U.S.C. ch. 47 § 2051 et seq.
57
Safeparks, United States Consumer Product Safety Commission, htt,ps://saferparks.org/agency/united-states-consumer-product-
safety-commission (last visited Jan. 22, 2020).
5s Id.
59
Safeparks, U.S. Federal and State Amusement Ride Regulation, htt,ps://saferparks.org/regulation/agencies (last visited Jan. 22,
2020).
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Managers

The bill includes amusement ride "managers" as a responsible party for ensuring compliance with state
law governing safety standards for amusement rides.

Inspection and Permitting Process

The bill streamlines the permitting application and issuance process, removes the requirement for an
inspection certificate, and sets deadlines for inspections by DACS prior to the issuance of a permit for
operation. Additionally, the bill adds an exemption from DACS inspection for permanent rides that
prove they were inspected and certified by an accredited trade organization.

The bill separates the permitting process for permanent amusement rides from temporary amusement
rides, and distinguishes the two by:
• Establishing that a permanent ride permit is valid for 1 year, and a temporary ride permit is valid
for 6 months, or until the temporary ride is moved; and
• Requiring permanent ride and temporary ride applications for permit to be submitted 15 and 14
days prior to their opening dates, respectively.

The bill defines an "amusement ride event" as an event where an amusement ride is operated at a
specific location and date as listed on an annual permit application or on a temporary amusement ride
permit application.

The bill defines a "temporary amusement ride permit" as the United States Amusement Identification
Number and the decal issued by DACS, which signify that the temporary amusement ride has been
permitted by DACS.

In order to align inspection dates at permanent facilities, the bill authorizes DACS to shorten or extend
the 6-month inspection interval. Fees for rides with shortened inspection intervals must be prorated,
and extensions of inspection intervals may not exceed two months.

The bill requires a ride's operating instructions, fact sheet, and any bulletins concerning the ride to be
submitted to DACS in electronic format as part of the permitting process.

Fees

The bill clarifies DACS authority to establish by rule fees to cover the costs and expenditures
associated with the fair rides inspection program, and the requirement that the industry pay the
remaining cost of the program if there is not sufficient general revenue appropriated by the Legislature.

Exemptions

The bill broadens DACS's rulemaking authority to establish exemptions for types of rides from the
amusement ride regulations by deleting the restriction that such exemptions only apply to nonmotorized
or human-powered amusement rides or coin-actuated amusement rides.

The bill removes a blanket exemption from the amusement ride regulations for museums or other
institutions principally devoted to the exhibition of products of agriculture, industry, education, science,
religion, or the arts. As a result, these institutions would be required to comply with applicable licensing
and permitting requirements, including being subject to fees and fines.

Adoption of Standards

The bill conforms state standards that DACS is required to adopt by rule for testing and materials,
electric code, and fire protection, to recently revised national standards.
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Inspection Standards

The bill clarifies inspection standards and revises the requirement that an amusement ride be inspected
by DACS in accordance with the statutory standards, and instead provides that rides presented for
inspection as ready for operation must comply with the standards.

Operating Requirements

The bill requires ride owners and operators to display DACS's contact information for ride patrons'
benefit. Specifically, a sign containing the DACS toll-free number and informing for patrons to contact
DACS with complaints or concerns regarding the operation of amusement rides must be posted in a
manner conspicuous to the public at each entrance of an amusement ride event, unless such facility or
event is exempt. The bill requires DACS to prescribe by rule specifications for such signs.

After an amusement ride has undergone a major modification and before it is placed in operation, the
bill requires upon request, the owner or manager of the amusement ride to provide to DACS a copy of
the required certification and all evidence used by the professional engineer to prepare the certification.

The bill removes the four-hour threshold after which the owner or manager must report a mechanical,
structural, or electrical defect, and includes "failures" to the types of electrical deficiencies that can
trigger a reporting requirement.

In addition, the bill requires the affected ride to remain closed until repairs are reviewed and the ride is
released for operation by DACS.

Enforcement

The bill increases the limit for administrative fines from "not to exceed $2,500" to "not to exceed
$10,000" per violation. The bill adds as a violation the presentment of a ride for inspection by DACS
that has a defect that is known, or should be known. The bill adds an additional administrative fine of
$10,000, or more, for any violation resulting in serious injury or death to a patron.

Additionally, the bill provides DACS with certain investigative and subpoena powers for application in its
investigations performed under the amusement ride law. A person's refusal or failure to testify pursuant
to such subpoena is guilty of a second-degree misdemeanor, punishable as provided ins. 775.083.

Specifically, in any examination or investigation conducted by DACS or a DACS appointed examiner,
DACS is authorized to:
• Administer oaths,
• Examine and cross-examine witnesses,
• Receive oral and documentary evidence,
• Subpoena witnesses,
• Compel witness attendance and testimony, and
• Require by subpoena the production of documents or other evidence that it deems relevant to
the inquiry.

If any person refuses to comply with the subpoena or to testify as to any relevant matter, the Circuit
Court of Leon County, or the circuit court of the county in which such examination or investigation is
being conducted or the county in which such person resides pursuant to an application filed with DACS,
is authorized to issue an order requiring such person to comply with the subpoena and to testify.
Failure to obey an order may be punished by the court as contempt.

Subpoenas must be served, and proof of such service must be made, in the same manner as if issued
by a circuit court. Witness fees and mileage, if claimed, must be allowed as they are for testimony in a
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circuit court. Any person willfully testifying falsely under oath as to any matter material to any such
examination, investigation, or hearing commits perjury will be punished accordingly.

Any person who asks to be excused from attending or testifying or from producing any documents or
other evidence in connection with any examination, hearing, or investigation on the ground that the
testimony or evidence required may tend to incriminate him or her or subject him or her to a penalty or
forfeiture and who, nevertheless, is directed by DACS and the Department of Legal Affairs to give such
testimony or produce such evidence must comply with that directive. The person may not thereafter be
prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or
thing concerning which he or she may have testified or produced evidence, and no testimony given or
evidence produced may be received against him or her in any criminal action, investigation, or
proceeding.

However, a person testifying is not exempt from prosecution or punishment for any perjury committed
by him or her in such testimony, and the testimony or evidence given or produced is admissible against
him or her in any criminal action, investigation, or proceeding concerning such perjury; and the person
is not exempt from the refusal, suspension, or revocation of any license, permission, or authority
conferred or to be conferred pursuant to this chapter.

Any such individual may execute, acknowledge, and file with DACS a statement expressly waiving
such immunity or privilege with respect to any transaction, matter, or thing specified in such statement;
and upon such filing, the testimony of such individual or such evidence in relation to such transaction,
matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or
otherwise; and, if so received or produced, such individual is not entitled to any immunity or privileges
on account of any testimony he or she may so give or evidence so produced.

B. SECTION DIRECTORY:
Section 1. Amends s. 616.242, F.S., relating to amusement rides.

Section 2. Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
According to DACS, it will receive revenue from approximately 21 facilities that will lose their
exemption for inspections in a total amount of approximately $14,280. 60

2. Expenditures:
According to DACS, it will incur expenditures based on the cost of the safety signage at each event,
including 1,622 events times three signs per event times $0.25 per sign, which would be a total cost
to DACS of approximately $1,220. 61

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

6
°Florida Department of Agriculture and Consumer Services, agency Analysis of2020 House Bill 1275, p. 2 (Jan. 17, 2020).
61 Id.
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2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
There may be a negative fiscal impact on the businesses that will no longer be exempt from the
regulations.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill revises the following provision relating to DACS rulemaking:
• Revises national standards that must be adopted by DACS;
• Creates a separate application and permitting process for permanent and temporary
amusement ride permits;
• Requires DACS to adopt rules detailing signage to be posted at each amusement ride event;
• Requires DACS to adopt rules specifying acceptable trade organizations that may inspect
certain permanent amusement rides;
• Deletes the inspection certificate process and all related rulemaking authority; and
• Broadens rulemaking authority to establish exemptions for types of rides from the amusement
ride regulation.

There is sufficient rulemaking authority in the bill and current law.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1275 2020

1 A bill to be entitled
2 An act relating to amusement rides; amending s.
3 616.242, F.S.; requiring amusement ride managers to
4 meet certain requirements; defining and redefining
5 terms; revising standards for rules adopted by the
6 Department of Agriculture and Consumer Services
7 relating to amusement rides; revising provisions for
8 permanent amusement ride annual permits; providing for
9 temporary amusement ride permits; revising provisions
10 for nondestructive testing and department testing of
11 amusement rides; removing the exemption from safety
12 standards for certain museums and institutions;
13 removing the limitation on the authority of the
14 department to establish exemptions from safety
15 standards; revising inspection standards for amusement
16 rides; directing the department to prescribe by rule
17 specified signage to be posted at amusement ride
18 events; revising requirements for compliance
19 certifications after major modifications to amusement
20 rides; revising requirements for amusement ride
21 inspections by owners and managers; providing
22 procedures for the introduction and examination of
23 witnesses and evidence in examinations and
24 investigations conducted by the department; revising
25 civil penalties; providing an effective date.

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26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Section 616.242, Florida Statutes, is amended
30 to read:
31 616.242 Safety standards for amusement rides.-
32 ( 1) OWNER AND MANAGER RESPONSIBILITIES RESPmJSIBILITY. -The
33 owner and the manager of an amusement ride, and each amusement
34 ride, must meet at all times the requirements of this section
35 and any rules adopted hereunder thereunder.
36 (2) SCOPE.-This section applies to all amusement rides
37 within this state unless exempt under subsection Jl.l.l ,t±-e+.
38 (3) DEFINITIONS.-As used in this section, the term:
39 (a) "Amusement ride" means any building, structure, or
40 mechanical device or combination thereof through which a patron
41 moves, walks, or is carried or conveyed on, along, around, over,
42 or through a fixed or restricted course or within a defined area
43 for the purpose of giving its patrons amusement, pleasure,
44 thrills, or excitement.
45 (b) "Amusement ride event" means an event where an
46 amusement ride is operated at a specific location and date as
47 listed on an annual permit application or on a temporary
48 amusement ride permit application.
49 J..S:1-+e+ "Annual permit" means the United States Amusement
50 Identification Number and the nuFA.bered and dated decal issued by

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51 the department, which signify that the permanent amusement ride
52 has been permitted by the department.
53 J..i.2_-tet "Bungy operation" means an amusement ride that uses
54 Hhich utilizes as a component a bungy cordL which is an elastic
55 rope made of rubber, latex, or other elastic-type elastic type
56 materialsL whether natural or synthetic.
57 M-f-a+ "Go-kart" means an amusement ride vehicle
58 controlled or driven by patrons and specifically designed for
59 and run on a fixed course.
60 (e) "Inspection certificate" means the document issued by
61 the department, which indicates that the amusement ride has
62 undergone a recurring inspection by the department as required
63 by this section.
64 ( f) "Kiddie ride" means an amusement ride designed
65 primarily for use by patrons up to 12 years of age.
66 (g) "Kiddie train" means a train designed as a kiddie ride
67 which is operated on a flat surface or flat track, carries no
68 more than 14 patrons, and does not exceed a speed of 3 miles per
69 hour.
70 (h) "Major modification" means any change in either the
71 structural or operational characteristics of an -H:re amusement
72 ride which will alter its performance from that specified in the
73 manufacturer's design criteria.
74 (i) "Manager" means a person having possession, custody,
75 or managerial control of an amusement ride, whether as owner,

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76 lessee, agent, operator, attendant, or otherwise.
77 (j) "Nondestructive testing" is the development and
78 application of technical methods, including, but not limited to,
79 radiographic, magnetic particle, ultrasonic, liquid penetrant,
80 electromagnetic, neutron radiographic, acoustic emission,
81 visual, and leak testingL to examine materials or components in
82 ways that do not impair their future usefulness and
83 serviceability in order to detect, locate, measure, and evaluate
84 discontinuities, defects, and other imperfections; to assess
85 integrity, properties, and composition; and to measure
86 geometrical characters.
87 (k) "Owner" means the person exercising ultimate dominion
88 and control over an amusement ride.
89 (1) "Patron" means any person who is in the immediate
90 vicinity of an amusement ride, getting on or off, or entering or
91 exiting an amusement ride, or using an amusement ride. The term
92 does not include employees, agents, or servants of the owner
93 while they are engaged in the duties of their employment.
94 (m) "Permanent amusement ride" means an amusement ride
95 that is not regularly relocated.
96 (n) "Permanent facility" means a location or place from
97 which amusement rides are not regularly relocated and at which
98 such rides operate as a lasting part of the premises.
99 (o) "Private event" means an event that is not open to the
100 general public and for which Hhere no admission is not charged.

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101 (p} "Professional engineer" means a person who holds a
102 valid license as a professional engineer issued by the
103 Department of Business and Professional Regulation or by an
104 equivalent licensing body in another state.
105 ( q) "Qualified inspector" means an employee or agent of an
106 insurance underwriter of an amusement ride who documents to the
107 department in a manner established by department rule of the
108 department the following qualifications:
109 1. A minimum of 5 years' years experience in the amusement
110 ride field, at least 2 years of which were involved in actual
111 amusement ride inspection with a manufacturer, government
112 agency, park, carnival, or insurance underwriter;
113 2. The completion of 32 hours per year of continuing
114 education at a school approved by department rule of the
115 department, which includes inservice industry or manufacturer
116 updates and seminars; and
117 3. At least 80 hours of formal education during the past 5
118 years from a school approved by department rule of the
119 department for amusement ride safety. Nondestructive-testing
120 training, as determined by department rule of the department,
121 may be substituted for up to one-half of the 80 hours of
122 education.
123 (r} "Simulator" means any amusement ride that is a self-
124 contained unit requiring little or no assembly and that uses a
125 motion picture simulation, along with a mechanical movement, to

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126 simulate activities that provide amusement or excitement for the
127 patron.
128 (s) "Temporary amusement ride" means an amusement ride
129 that is regularly relocated, with or without disassembly.
130 (t) "Temporary amusement ride permit" means the United
131 States Amusement Identification Number and the decal issued by
132 the department, which signify that the temporary amusement ride
133 has been permitted by the department.
134 M-f4:-t "Water park" means a permanent facility with one or
135 more amusement rides that totally or partially immerse a patron
136 in water.
137 (4) ADOPTION OF STANDARDS; RULES.-
138 (a) The department shall adopt by rule standards for
139 amusement rides which are the same as or similar to the
140 following national standards:
141 1. ASTM International Affierican Society for Testing and
142 Materials Committee F24 ~ Standards on Amusement Rides and
143 Devices.
144 2. The National Electric Code Handbook, Article 525.
145 3. National Fire Protection Association standards Code 101
146 (chapters 8 4. 6 and 9 4. 6).
14 7 4. ASTH Standards: 85 43 Practice for DetenRining the
148 Qualification of Nondestructive Testing Agencies.
14 9 5. ASNT Document Recoffiffiended Practice SNT TC L'\ Personnel
150 Qualification and Certification in Nondestructive Testing.

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151 (b) The department may adopt rules necessary to effectuate
152 the statutory duties of the department in the interest of the
153 public health, safety, and welfare and to promote patron safety
154 in the design, construction, assembly, disassembly, maintenance,
155 and operation of amusement rides in this state.
156 (c) The Legislature finds that go-karts, amusement rides
157 at water parks, and bungy operations are amusement rides that,
158 because of their unique nature, pose safety risks to patrons
159 distinct from other amusement rides. Therefore, the department
160 shall adopt rules regulating their safe use and operation and
161 establish safety standards and inspection requirements in
162 addition to those required by this section or other department
163 rule of the department.
164 (d) The Legislature finds that, as a result of accidents
165 or other unforeseen events, circumstances may arise requiring
166 additional safety standards for the protection of patrons of
167 amusement rides~, and Therefore~ the department may adopt rules
168 to address the circumstances that may arise following an
169 accident or unforeseen event.
170 (5) PERMANENT AMUSEMENT RIDE ANNUAL PERMIT.-
171 (a) A permanent Aft amusement ride may not be operated
172 without a current annual permit.
173 (b) To apply for an annual permit, an owner or manager
174 must submit to the department a written application on a form
175 prescribed by department rule of the department, which must

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176 include the following:
177 1. The legal name, address, and primary place of business
178 of the owner or manager, as applicable.
179 2. A description, manufacturer's name, serial number,
180 model number and, if previously assigned, the United States
181 Amusement Identification Number of the amusement ride.
182 3. A valid certificate of insurance for each amusement
183 ride.
184 4. If required under subsection (7), an annual affidavit
185 of compliance and nondestructive testing certifying that the
186 amusement ride was inspected in person by the affiant and that
187 the amusement ride is in general conformance with the
188 requirements of this section and all applicable department rules
189 adopted by the department. The affidavit must have been b-e
190 executed by a professional engineer or a qualified inspector
191 within the last calendar year no earlier than 60 days before,
192 but not later than, the date of the filing of the application
193 T.Jith the department. The owner shall request inspection and
194 permitting of the amusement ride within 60 days of the date of
195 filing the application with the department. The department shall
196 inspect and permit the amusement ride T.Jithin 60 days after
197 filing the application with the department.
198 5. If required by subsection (6), an affidavit of
199 nondestructive testing dated and e1tecuted no earlier than 60
200 days before, but not later than, the date of the filing of the

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201 application with the department. The owner shall request
202 inspection and permitting of the amusement ride Hithin 60 days
203 of the date of filing the application Hith the department. The
204 department shall inspect and permit the amusement ride within 60
205 days after filing the application with the department.
206 6. A request for inspection.
207 5.:::/--.- Upon request, The owner or manager shall, at no cost
208 to the department, provide the department an electronic a copy
209 of the manufacturer's current recommended operating instructions
210 in the possession of the o\1ner, the owner's operating fact
211 sheet, and any written bulletins in the possession of the owner
212 concerning the safety, operation, or maintenance of the
213 amusement ride.
214 (c) An annual permit application must be received by the
215 department at least 15 days before the planned opening date. If
216 an application is received less than 15 days before the planned
217 opening date or less than 15 days before the expiration of the
218 previous permit, the department may inspect the amusement ride
219 and charge a penalty as established by department rule.
220 J.s!l+e+ An annual permit must be issued by the department
221 to the owner or manager of an amusement ride when a completed
222 application has been received, the amusement ride has passed the
223 department's inspection, and all applicable fees, as set by
224 department rule of the department, have been paid.
225 J....§.1-fe-t The annual permit is valid for 1 year after .f-r-eFR

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226 the date of issue and is not transferable.
227 lfl_-te+ The annual permit must be displayed in an
228 accessible location on the amusement ride in a place visible to
229 patrons of the amusement ride.
230 J....9:l~ Each go-kart track at the same permanent facility
231 is considered a separate amusement ride.
232 ~~ Amusement rides at water parks which operate from
233 the same deck or level are considered one amusement ride.
234 (6) TEMPORARY AMUSEMENT RIDE PERMIT.-
235 (a) A temporary amusement ride may not be operated without
236 a current permit.
237 (b) To apply for a permit, an owner or manager must submit
238 to the department a written application on a form prescribed by
239 department rule, which must include the following:
240 1. The legal name, address, and primary place of business
241 of the owner or manager, as applicable.
242 2. A description, manufacturer's name, serial number,
243 model number and, if previously assigned, the United States
244 Amusement Identification Number of the amusement ride.
245 3. A valid certificate of insurance for each amusement
246 ride.
247 4. If required under subsection (7), an affidavit of
248 compliance and nondestructive testing certifying that the
249 amusement ride was inspected in person by the affiant and that
250 the amusement ride is in general conformance with the

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251 requirements of this section and all applicable department
252 rules. The affidavit must be executed by a professional engineer
253 or a qualified inspector.
254 5. The owner or manager shall, at no cost to the
255 department, provide the department an electronic copy of the
256 manufacturer's current recommended operating instructions, the
257 operating fact sheet, and any written bulletins concerning the
258 safety, operation, or maintenance of the amusement ride.
259 (c) A temporary amusement ride permit application must be
260 received by the department each time the amusement ride is
261 relocated, with or without disassembly, at least 14 days before
262 the date of the ride's first intended use at the new location.
263 If the permit application is received less than 14 days before
264 the date of the ride's first intended use at the new location,
265 the department may inspect the amusement ride and charge a
266 penalty, as set by department rule.
267 (d) The department must issue a permit to the owner or
268 manager of an amusement ride when a completed application has
269 been received, the amusement ride has passed the department's
270 inspection, and all applicable fees, as set by department rule,
271 have been paid.
272 (e) The permit is valid for 6 months after the date of
273 issue or until the ride is relocated, with or without
274 disassembly, and is not transferable.
275 (f} The permit must be displayed in an accessible location

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276 on the amusement ride.
277 J..21~ NONDESTRUCTIVE TESTING; ANNUAL AFFIDAVIT;
278 EXEMPTIONS.-
279 (a) Except as provided in paragraph (d), an owner or
280 manager may not operate an amusement ride unless the owner or
281 manager fta-S- at all times has a current affidavit of
282 nondestructive testing from a professional engineer or qualified
283 inspector that the amusement ride has undergone nondestructive
284 testing for metal fatigue at least annually. The nondestructive
285 testing for metal fatigue must be conducted more often than
286 annually7 if required by any rule adopted under this section, by
287 the manufacturer of the amusement rideL or by the professional
288 engineer or qualified inspector executing the affidavit of
289 nondestructive testing. The nondestructive testing for metal
290 fatigue must consist at least of visual nondestructive testingL
291 as well as; in addition, nonvisual nondestructive testing for
292 metal fatigue, which must be conducted on the components of the
293 amusement ride as required by any rule adopted under this
294 section, by the manufacturer of the amusement ride, or by the
295 professional engineer or qualified inspector executing the
296 affidavit of nondestructive testing.
297 (b) Nondestructive testings must be performed by a
298 technician who meets the requirements prescribed by department
299 rule of oubparagrapho (4) (a)4. and 5.
300 (c) An affidavit of nondestructive testing must state:

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301 1. That the amusement ride was inspected in person by the
302 affiant.
303 2. That all nondestructive testing requirements are
304 current.
305 3. That the nondestructive testing was performed by a
306 qualified nondestructive testing technician.
307 4. The components of the amusement ride for which the
308 manufacturer has recommended or required nondestructive testing.
309 5. The type of nondestructive testing required or
310 recommended by the manufacturer.
311 6. The frequency of the nondestructive testing required or
312 recommended by the manufacturer.
313 7. The components of the amusement ride for which the
314 affiant has recommended or required nondestructive testing.
315 8. The type of nondestructive testing required or
316 recommended by the affiant.
317 9. The frequency of the nondestructive testing as required
318 or recommended by the affiant.
319 10. That visual nondestructive testing is adequate for the
320 amusement ride to be in general conformance with the
321 requirements of this section7 and all applicable rules, only7 if
322 efH-Y visual nondestructive testing is required or recommended by
323 either the manufacturer or the affiant.
324 (d) Nondestructive testing is not required for fun houses,
325 houses of mirrors, haunted houses, mazes, wave pools, wave-

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326 making devices, kiddie pools, slides that are fully supported by
327 an earthen mound, nonmotorized playground equipment that
328 requires a manager, or lazy-river-type nonmotorized floating
329 carriers propelled by water.
330 ~-f-=7+ DEPARTMENT INSPECTIONS.-
331 (a) Except as provided in subparagraphs 1. and 2., in
332 order to obtain an annual or a temporary amusement ride permit,
333 an amusement ride must be inspected by the department~
334 1. A in accordance with subsection (11) and receive an
335 inspection certificate. In addition, each permanent amusement
336 ride must be inspected semiannually by the department in
337 accordance with subsection (11) and receive an inspection
338 certificate, and each temporary amusement ride must be inspected
339 by the department in accordance with subsection (11), and must
340 receive an inspection certificate each time the ride is set up
341 or moved to a new location in this state unless the temporary
342 amusement ride is exempt from the required inspection if it is:
343 a.±-. Used at a private event;
344 b.-2-. A simulator, the capacity of which does not exceed 16
345 persons; or
346 c.-3-.- A kiddie ride used at a public event, provided that
347 not there are no more than three amusement rides are at the
348 event, none of the kiddie rides at the event do not exceed
349 eJcceeds a capacity of 12 persons, and the kiddie ride passed a
350 department inspection and was issued a permit has an inspection

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351 certificate that was issued within the preceding 6 months. The
352 capacity of a kiddie ride shall be determined by department rule
353 of the department, unless the capacity of the ride has been
354 determined and specified by the manufacturer. Any owner or
355 manager of a kiddie ride operating under this exemption is
356 responsible for ensuring that not fie more than three amusement
357 rides are operated at the event.
358 ~-+et- The required inspection may be waived for a
359 permanent amusement ride if it was inspected and certified by an
360 accredited trade organization as defined by department rule .!I!-e
361 obtain a department inspection for an amusement ride, the owner
362 must submit to the department on a form prescribed by rule of
363 the department a written Request for Inspection. The owner must
364 provide the following information to the department:
365 1. The legal name, address, and primary place of business
366 of the owner.
367 2. A description, manufacturer's name, serial number,
368 model number, and the United States Amusement Identification
369 Humber, if previously assigned, of the amusement ride.
370 3. For a temporary amusement ride, for each time the
371 amusement ride is set up or moved to a new location, the date of
372 first intended use at the new location and the address or a
373 description of the new location.
374 (c) For permanent amusement rides, the request for
375 inspection must be received by the department at least 1§ days

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376 before the owner's planned opening date or at least 15 days
377 before the e1cpiration of the prior inspection certificate. If
378 the request for inspection is received less than 15 days before
379 the ov:ner's planned opening date or less than 15 days before the
380 expiration of the prior inspection certificate, the department
381 may nevertheless inspect the amusement ride and charge a late
382 fee, as set by rule of the department.
383 (d) For temporary amusement rides, the request for
384 inspection must be received by the department for each time the
385 amusement ride is set up or moved to a new location at least 14
386 days before the date of first intended use at the new location.
387 If the request for inspection is received less than 14 days
388 before the date of first intended use at the new location, the
389 department may nevertheless inspect the amusement ride and
390 charge a late fee, as set by rule of the department.
391 J.El+e+- Inspections must w-i-1-1- be assigned on a first-come,
392 first-served first come, first served basis, and overflow
393 requests must w-i-1-1- be scheduled on the closest date to the date
394 for which the inspection was requested.
395 J....S:1-t-f+ Upon failure of an amusement ride to pass any
396 department inspection, the owner or manager may request
397 reinspectionL which must shall be submitted in writing to the
398 department on a form prescribed by department rule of the
399 department. The department shall reinspect the amusement ride as
400 soon as practicable after practical following receipt of the

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401 written request for reinspection and any applicable reinspection
402 fees set by department rule of the departffient. Inspections must
403 w-:i:-1-± be assigned on a first-come, first-served first coffie, first
404 served basis, and the overflow requests must w-:i:-1-± be scheduled
405 on the closest date to the date for which the inspection was
406 requested.
407 (g) If the affiuseffient ride passes inspection and the owner
408 pays the applicable fee set by rule of the departffient, the
409 department shall issue an inspection eertificate on a forffi
410 prescribed by rule of the departffient.
411 (h) The inspection certificate ffiust contain the date of
412 inspection, the site of the inspection, and the naffie of the
413 inspector.
414 (i) The inspection certificate is valid only for the site
415 stated on the inspection certificate. The inspection certificate
416 is valid for a period of not ffiore than 6 ffionths froffi the date of
417 issuance, and is not transferable.
418 (j) The inspection certificate ffiust be displayed on the
419 affiuseffient ride at a place readily visible to patrons of the
420 affiUSeffient ride.
421 J..il_-f-*-)- If the owner or manager fails to timely cancel a
422 scheduled Request for inspection, requests holiday or weekend
423 inspections, or is required to have a replacement USAID plate
424 issued by the department, the owner or manager may be charged an
425 appropriate fee to be set by department rule of the department.

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426 (e) In order to align inspection dates at permanent
427 facilities, the department may shorten or extend the 6-month
428 inspection interval. Fees for rides with shortened inspection
429 intervals must be prorated. Extensions of inspection intervals
430 may not exceed 2 months.
431 fil-f-8+ FEES.-
432 (a) The department shall by rule establish by rule fees to
433 cover the costs and expenditures associated with the fair rides
434 inspection program, including all direct and indirect costs. If
435 the Legislature does not appropriate there is not suffieient
436 general revenue sufficient to cover such costs and expenditures
437 appropriated by the Legislature, the industry shall p a y ~ the
438 remainder reffiaining eost of the prograffi. The fees must be
439 deposited in the General Inspection Trust Fund.
440 (b) An Arty owner or manager of an amusement ride who has
441 not paid a-1-1- the fees required under this section or who has any
442 unpaid fine outstanding under this section may not operate any
443 amusement ride in this state until the fees or a-na fines have
444 been paid to the department.
445 llQl-t9+ INSURANCE REQUIREMENTS.-
446 (a) An owner or manager may not operate an amusement ride
447 unless the owner or manager has in effect at all times of
448 operation an insurance policy in an amount of at least $1
449 million per occurrence, $1 million in the aggregate, which
450 insures the owner or manager of the amusement ride against

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451 liability for injury to persons arising out of the use of the
452 amusement ride.
453 (b) The policy must be procured from an insurer that is
454 licensed to transact business in this state or that is approved
455 as a surplus lines insurer.
456 (c) The insurance requirements imposed under This
457 subsection does ee not apply to a governmental entity that is
458 covered under by the provisions of s. 768.28(16).
459 J..!!l-tl-G+ EXEMPTIONS.-
460 (a) This section does not apply to:
461 1. Permanent facilities that employ at least 1,000 full-
462 time employees and that maintain full-time, in-house safety
463 inspectors. However Furthermore, the permanent facilities must
464 file an affidavit of the annual inspection with the department 7
4 65 on a form prescribed by department rule of the department.
466 Additionally, The department of Agriculture and Consumer
467 Services may consult annually with the permanent facilities
468 regarding industry safety programs.
469 2. Any playground operated by a school,~ local
470 government, or~ business licensed under chapter 509, if the
471 playground is an incidental amenity and the operating entity is
472 not primarily engaged in providing amusement, pleasure, thrills,
473 or excitement.
474 3. Huseum.s or other institutions principally devoted to
475 the exhibition of products of agriculture, industry, education,

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476 science, religion, or the arts.
477 3.4-. Conventions or trade shows for the sale or exhibit of
478 amusement ridesL if there are a minimum of 15 amusement rides on
479 display or exhibition7 and if any operation of such amusement
480 rides is limited to the registered attendees of the convention
481 or trade show.
482 4 . .§... Skating rinksLT arcadesL7 laser or paint ball war
483 gamesLT bowling alleysL7 miniature golf coursesL7 mechanical
484 bullsLT inflatable ridesLT trampolinesL7 ball crawlsL7 exercise
485 equipmentLT jet skisLT paddle boatsLT airboatsLT helicoptersLT
486 airplanesLT parasailsL7 hot air or helium balloonsL whether
487 tethered or untetheredL7 theatresL7 batting cagesL7 stationary
488 spring-mounted fixturesLT rider-propelled merry-go-roundsL7
489 gamesLT side showsL7 live animal ridesL7 or live animal shows.
490 5.-6-.- Go-karts operated in competitive sporting events if
491 participation is not open to the public.
492 6.+. Nonmotorized playground equipment that is not
493 required to have a manager.
494 7.-&-. Coin-actuated amusement rides designed to be operated
495 by depositing coins, tokens, credit cards, debit cards, bills,
496 or other cash money and which are not required to have a
497 manager, and which have a capacity of six persons or less.
498 8.-9-. Facilities described ins. 549.09(1) (a)L when such
499 facilities are operating only cars, trucks, or motorcycles eftl-y.
500 9.-±-G--. Battery-powered cars or other vehicles that are

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501 designed to be operated by children 7 years of age or younger
502 under and that cannot exceed a speed of 4 miles per hour.
503 10.±-±-;- Mechanically driven vehicles that pull train cars,
504 carts, wagons, or other similar vehicles~7 that are not confined
505 to a metal track or confined to an area but are steered by an
506 operator~ and that cannot do not exceed a speed of 4 miles per
507 hour.
508 11.~ A water-related amusement ride operated by a
509 business licensed under chapter 509L if the water-related
510 amusement ride is an incidental amenity and the operating
511 business is not primarily engaged in providing amusement,
512 pleasure, thrills, or excitement and does not offer day rates.
513 12.-±-3-.- An amusement ride at a private, membership-only
514 facility if the amusement ride is an incidental amenityL and the
515 facility is not open to the general public; is not primarily
516 engaged in providing amusement, pleasure, thrills, or
517 excitement; and does not offer day rates.
518 13.±4-.- A nonprofit permanent facility registered under
519 chapter 496 which is not open to the general public.
520 (b) The department may, by rule, establish by rule
521 exemptions from this section for nonmotorited or human poHered
522 amusement rides or coin actuated amusement rides.
523 lldl_-f-±-±+- INSPECTION STANDARDS.-An amusement ride must
524 conform to and must be inspected by the department in accordance
525 W±-tfi the following standards:

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526 (a} All mechanical, structural, and electrical components
527 that affect patron safety must be in good working order.
528 (b} All control devices, speed-limiting devices, brakes,
529 and safety equipment designated by the manufacturer must be in
530 good working order.
531 (c} Parts must be properly alignedT and '&h,ey may not be
532 bent, distorted, cut, or otherwise injured to force a fit. Parts
533 requiring lubrication must be lubricated in the course of
534 assembly. Fastening and locking devices must be installed when
535 where required for safe operation.
536 (d} Before being used by the public, An amusement ride
537 must be placed or secured with blocking, cribbing, outriggers,
538 guys, or other means so as to be stable under all operating
539 conditions.
540 (e) Areas in which patrons may be endangered by the
541 operation of an amusement ride must be fenced, barricaded, or
542 otherwise effectively guarded against inadvertent contact.
543 (f) Machinery used in or with an amusement ride must be
544 enclosed, barricaded, or otherwise effectively guarded against
545 inadvertent contact.
546 (g) An amusement ride powered so as to be capable of
547 exceeding its maximum safe operating speed must be provided with
548 a maximum-speed-limiting device.
549 (h} The interior and exterior parts of all patron-carrying
550 amusement rides with which a patron may come in contact must be

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551 smooth and rounded and free from sharp, rough, or splintered
552 edges and corners, and from with no projecting studs, bolts, and
553 screws 7 or other projections that which might cause injury.
554 (i) Signs that advise or warn patrons of age restrictions,
555 size restrictions, health restrictions, weight limitations, or
556 any other special consideration or use restrictions required or
557 recommended for the amusement ride by the manufacturer must
558 shall be prominently displayed at the patron entrance of each
559 amusement ride.
560 (j) All amusement rides presented for inspection as ready
561 for operation or in operation must comply with this section and
562 department rule the rules adopted hereunder.
563 (k) A sign containing the toll-free number of the
564 department and informing patrons that they may contact the
565 department with complaints or concerns regarding the operation
566 of amusement rides must be posted in a manner conspicuous to the
567 public at each entrance of an amusement ride event, unless such
568 facility or event is exempt under subsection (11). The
569 department shall prescribe by rule specifications for such
570 signs.
571 Jl:.ll~ MAJOR MODIFICATION.-After an amusement ride has
572 undergone a major modification, and before prior to the time it
573 is placed in operation, a professional engineer licensed by the
574 state in which the certification is performed must certify that
575 the amusement ride is in compliance with this section and

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576 department rule all rules adopted pursuant thereto. Upon
577 request, the owner or manager of the amusement ride shall
578 provide to the department a copy of the required certification
579 and all evidence used by the professional engineer to prepare
580 the certification.
581 J..l!l-f-±-3+ ENTRY FOR INSPECTION OR INVESTIGATION.-Upon
582 presentation of identification, an authorized employee of the
583 department may enter unannounced and inspect amusement rides at
584 any time and in a reasonable manner and has the right to
585 question any owner or manager; to inspect, investigate,
586 photograph, and sample all pertinent places, areas, and devices;
587 and to conduct or have conducted all appropriate tests including
588 nondestructive testing. The department may impose fees for
589 unannounced inspections and recover the cost of tests authorized
590 by this subsection.
591 ~+±-4+ REPORTING AND INVESTIGATION OF ACCIDENTS AND
592 DEFECTS; IMPOUNDMENTS.-
593 (a) Any accident of which the owner or manager has
594 knowledge or, through the exercise of reasonable diligence
595 should have knowledge, and for which a patron is transported to
596 a hospital, as defined in chapter 395, must be reported by the
597 owner or manager to the department by telephone within 4 hours
598 after the occurrence of the accident and must be followed up by
599 a written report to the department within 24 hours after the
600 occurrence of the accident.

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601 (b) Any mechanical, structural, or electrical defects or
602 failures affecting patron safety for which an amusement ride is
603 closed to patron use for more than 4 hours must be reported by
604 the owner or manager to the department by telephone or facsimile
605 within 8 hours after the closing of the ride. A written report
606 of the closing of the ride, on a form prescribed by department
607 rule of the department, must be filed by the owner or manager
608 with the department within 24 hours after the closing of the
609 amusement ride. The affected ride must remain closed until
610 repairs are reviewed and the ride is released for operation by
611 the department.
612 (c) The department may impound an amusement ride involved
613 in an accident for which a patron is transported to a hospital
614 as defined in chapter 395 or which has a mechanical, structural,
615 or electrical defect affecting patron safety~, and may impound
616 any other amusement ride of a similar make and model~7 and may
617 perform all necessary tests to determine the cause of the
618 accident or the mechanical, structural, or electrical defect 7 or
619 to determine the safety of the amusement ride and any other
620 amusement ride of a similar make and model. The cost of
621 impounding the amusement ride and performing the necessary tests
622 must be borne by the owner of the amusement ride.
623 (16)+!:-§+ INSPECTION BY OWNER OR MANAGER.-Before opening on
624 each day of operation and before any inspection by the
625 department, the owner or manager of an amusement ride must

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626 inspect and test each -H:re amusement ride to ensure compliance
627 with all requirements of this section. Each inspection must be
628 recorded on a form prescribed by department rule of the
629 department and signed by the person who conducted the
630 inspection. In lieu of the form prescribed by department rule e-f.
631 the department, the owner or manager may request approval of an
632 alternative form that if the alternative form includes, at a
633 minimum, the information required on the form prescribed by
634 department rule of the department. Inspection records of the
635 last 14 daily inspections must be kept on site by the owner or
636 manager and made immediately available to the department upon
637 request.
638 J...!,lL-f-±-6+ TRAINING OF EMPLOYEES.-The owner or manager of an
639 amusement ride shall maintain a record of employee training for
640 each employee authorized to operate, assemble, disassemble,
641 transport, or conduct maintenance on an amusement ride on a form
642 prescribed by department rule of the department. In lieu of the
643 form prescribed by department rule of the department, the owner
644 or manager may request approval of an alternative form that 44-
645 the alternative form includes, at a minimum, the information
64 6 required on the form prescribed by department rule of the
647 department. The training record must be kept on site by the
648 owner or manager and made immediately available to the
649 department upon request. Training may not be conducted when an
650 amusement ride is open to the public unless the training is

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651 conducted under the supervision of an employee who is trained in
652 the operation of that ride. The owner or manager shall certify
653 that each employee is trained, as required by this section and
654 any rules adopted thereunder, on the amusement ride for which
655 the employee is responsible.
656 (18)-t±-++- PROHIBITIONS RELATED TO BUNGY OPERATIONS.-The
657 following bungy operations are prohibited:
658 (a) A bungy operation conducted with balloons, blimps,
659 helicopters, or other aircraft.
660 (b) Sand bagging, which is the practice of holding onto
661 any object, including another person, while bungy jumping, for
662 the purpose of exerting more force on the bungy cord to stretch
663 it further, and then releasing the object during the jump
664 causing the jumper to rebound with more force than could be
665 created by the jumper's weight alone.
666 (c) Tandem or multiple bungy jumping.
667 (d) Bungy jumping from any bridge, overpass, or any other
668 structure not specifically designed as an amusement ride.
669 (e) The practice of bungy catapulting or reverse bungy
670 jumping.
671 l1:.2.l_+l-&+- IMMEDIATE FINAL ORDERS.-
672 (a) An amusement ride that fails to meet the requirements
673 of this section or pass the inspections required by this
674 section~, or an amusement ride that is involved in an accident
675 for which a patron is transported to a hospital as defined in

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676 chapter 395~7 or an amusement ride that has a mechanical,
677 structural, or electrical defect that affects patron safety may
678 be considered an immediate serious danger to the public health,
679 safety, and welfare and, upon issuance of an immediate final
680 order prohibiting patron use of the ride, may not be operated
681 for patron use until it has passed a subsequent inspection by or
682 at the direction of the department.
683 (b) An amusement ride of a similar make and model to an
684 amusement ride described in paragraph (a) may be considered an
685 immediate serious danger to the public health, safety, and
686 welfare and, upon issuance of an immediate final order
687 prohibiting patron use of the ride, may not be operated for
688 patron use until it has passed a subsequent inspection by or at
689 the direction of the department.
690 (20) WITNESSES AND EVIDENCE.-
691 (a) In any examination or investigation conducted by the
692 department or by an examiner appointed by the department, the
693 department may administer oaths, examine and cross-examine
694 witnesses, receive oral and documentary evidence, subpoena
695 witnesses, compel witness attendance and testimony, and require
696 by subpoena the production of documents or other evidence that
697 it deems relevant to the inquiry.
698 (b) If any person refuses to comply with such subpoena or
699 to testify as to any relevant matter, the Circuit Court of Leon
700 County, or the circuit court of the county in which such

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701 examination or investigation is being conducted or the county in
702 which such person resides pursuant to an application filed with
703 the department, may issue an order requiring such person to
704 comply with the subpoena and to testify. Any failure to obey
705 such an order of the court may be punished by the court as a
706 contempt thereof.
707 (c) Subpoenas must be served, and proof of such service
708 must be made, in the same manner as if issued by a circuit
709 court. Witness fees and mileage, if claimed, must be allowed as
710 they are for testimony in a circuit court.
711 (d) Any person willfully testifying falsely under oath as
712 to any matter material to any such examination, investigation,
713 or hearing commits perjury and shall be punished accordingly.
714 (e) Any person who asks to be excused from attending or
715 testifying or from producing any documents or other evidence in
716 connection with any examination, hearing, or investigation on
717 the ground that the testimony or evidence required may tend to
718 incriminate him or her or subject him or her to a penalty or
719 forfeiture and who, nevertheless, is directed by the department
720 and the Department of Legal Affairs to give such testimony or
721 produce such evidence shall comply with that directive. The
722 person may not thereafter be prosecuted or subjected to any
723 penalty or forfeiture for or on account of any transaction,
724 matter, or thing conc~rning which he or she may have testified
725 or produced evidence, and no testimony given or evidence

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726 produced may be received against him or her in any criminal
727 action, investigation, or proceeding. However, a person so
728 testifying is not exempt from prosecution or punishment for any
729 perjury committed by him or her in such testimony, and the
730 testimony or evidence given or produced is admissible against
731 him or her in any criminal action, investigation, or proceeding
732 concerning such perjury; and the person is not exempt from the
733 refusal, suspension, or revocation of any license, permission,
734 or authority conferred or to be conferred pursuant to this
735 chapter.
736 (f) Any such individual may execute, acknowledge, and file
737 with the department a statement expressly waiving such immunity
738 or privilege with respect to any transaction, matter, or thing
739 specified in such statement; and upon such filing, the testimony
740 of such individual or such evidence in relation to such
741 transaction, matter, or thing may be received or produced before
742 any judge or justice, court, tribunal, grand jury, or otherwise;
743 and, if so received or produced, such individual is not entitled
744 to any immunity or privileges on account of any testimony he or
745 she may so give or evidence so produced.
746 (g) Any person who refuses or fails without lawful cause
747 to testify relative to the affairs of any person, when
748 subpoenaed and requested by the department to so testify,
749 commits a misdemeanor of the second degree, punishable as
750 provided ins. 775.083.

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751 J1.11_-f-±-9-t ENFORCEMENT AND PENALTIES.-
752 (a) The department may deny, suspend for a period not to
753 exceed 1 year, or revoke any permit or inspection certificate.
754 In addition to denial, suspension, or revocation, the department
755 may impose an administrative fine in the Class III Glass II
756 category pursuant to s. 570.971 not to exceed $10,000 $2,500 for
757 each violation, for each day the violation exists, against the
758 owner or manager of the amusement ride if it finds that:
759 1. An amusement ride has operated or is operating:
760 a. With a mechanical, structural, or electrical defect
761 that affects patron safety, of which the owner or manager has
762 knowledge, or, through the exercise of reasonable diligence,
763 should have knowledge;
764 b. In a manner or circumstance that presents a risk of
765 serious injury to patrons;
766 c. At a speed in excess of its maximum safe operating
767 speed;
768 d. In violation of this section or department a-n-y rule
769 adopted under this section; or
770 e. In violation of an order of the department or order of
771 any court; e-r
772 2. An owner, a manager, or an operator in the course of
773 his or her duties is under the influence of drugs or alcohol; or
774 3. An amusement ride was presented for inspection as ready
775 for operation with a mechanical, structural, or electrical

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776 defect that affects patron safety, of which the owner or manager
777 has knowledge or, through the exercise of reasonable diligence,
778 should have knowledge.
779 (b) In addition to the administrative fine provided in
780 paragraph (a), the department may impose an additional
781 administrative fine in the Class IV category pursuant to s.
782 570.971 of $10,000 or more against the owner or manager if a
783 violation resulted in serious injury or death to a patron.
784 J...£2_-fbt The department shall, In its order suspending a
785 permit or inspection certificate, the department shall specify
786 the period during which the suspension is effective, which, but
787 such period may not exceed 1 year. The permit must or inspection
788 certificate shall remain suspended during the period so
789 specified, subject, however, to any rescission or modification
790 of the order by the department, or modification or reversal
791 thereof by the court, before prior to expiration of the
792 suspension period.
793 J..sU_-+e+ The owner of an amusement ride, If the permit e--r
794 inspection certificate for the amusement ride has been revoked
795 by the department, the owner or manager of such ride may not
796 apply for another permit or inspection certificate for the
797 amusement ride within 2 years after the date of such revocation.
798 If judicial review is sought and a stay of the revocation is
799 obtained, the owner or manager may not apply for another permit
800 or inspection certificate within 2 years after the final order

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801 of the court sustaining the revocation.
802 J..s:1-+e+ During the period of suspension or revocation of a
803 permit or inspection certificate, the owner or manager may not
804 engage in or attempt to engage in any operation of the amusement
805 ride for which a permit or inspection certificate is required
806 under this section.
807 J.!2..-te+ When a suspension period imposed by the department
808 has expired, an owner or manager whose annual permit er
809 inspection certificate has expired may reapply for a new permit
810 or inspection certificate by submitting a complete application
811 to the department.
812 J..3:.2._+f+ In addition to the remedies provided in this
813 section, and notwithstanding the existence of any adequate
814 remedy at law, the department may bring an action to enjoin the
815 violation of any provision of this section, or rules adopted
816 under this section, in the circuit court of the county in which
817 the violation occurs or is about to occur. Upon presentation
818 competent and substantial evidence presented by the department
819 to the court of competent and substantial evidence of the
820 violation or threatened violation, the court must immediately
821 issue the temporary or permanent injunction sought by the
822 department. The injunction must be issued without bond.
823 l.!:D_~ In addition to the penalties authorized to be
824 imposed for any violation of this section or any rule adopted
825 under this section, the department may issue a letter of warning

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826 to the owner or manager of the amusement ride specifying the
827 violation and directing the owner or manager to immediately
828 correct the violation.
829 ffi+l=r+- Any person who knowingly violates any provision of
830 this section commits a misdemeanor of the second degree,
831 punishable as provided ins. 775.082 ors. 775.083.
832 Section 2. This act shall take effect July 1, 2020.

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