Regulatory Reform Subcommittee, Florida House of Representatives (2021-02-18)

Summary

A meeting packet for a Florida legislative subcommittee on regulatory reform, containing staff analyses and bill texts for the 2021 session. One analysis reviews the licensing of fire protection system contractors, including Contractor III and Contractor IV classes, fire pumps with diesel motors, disputes among local jurisdictions over who may install water and fuel tanks, and the rule that only licensed fire protection engineers or qualified architects may design systems. The packet also includes HB 137 and HB 403 on home-based businesses, which would let an adversely affected home-based business owner challenge a local government action in violation of the bill and let the prevailing party recover attorney fees, effective July 1, 2021.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

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Contractor Ill - means a person who can fabricate, install, inspect, alter, repair, and service carbon
dioxide systems, foam extinguishing systems, dry chemical systems, and Halon and other chemical

systems, excluding pre-engineered systems.

Contractor IV - means a person who can lay out, fabricate, install, inspect, alter, repair, and service
automatic fire sprinkler systems for detached one- and two- family dwellings and mobile homes.
This does not include single-family dwellings in multi-dwelling buildings such as apartments,
condominiums, assisted living facilities, or buildings connected to other dwellings.

o A Contractor IV is limited Le the scope of praciice eee. in the NP RE 13D Standard tor
Fire Protection Systems with Diesel Motors

A vital part of a fire protection system is the fire pump. A fire pump is necessary if a building or structure’s
water supply is insufficient to provide the proper water pressure for the system to function property. The fire
pump pulls water from a dedicated source, such as an underground public water supply or a water storage
tank.'? The most common driver for a fire pump is an electric motor or diesel engine. If a building power
supply is insufficient to supply an electric motor, a diesel pump will most likely be utilized. A diesel motor
requires a separate fuel tank.°

Current law provides that fire pump control panels and maintenance of electric and diesel pump drivers
require special expertise. However, it is not economically feasible for fire protection system contractors to
employ such experts full time. As a result, current law allows fire protection system contractors to
subcontract with companies providing advanced technical services for the installation, servicing and
maintenance of fire pump control panels and pump drivers, as long as a company is under contract with a
fire protection system contractor."

According to industry members, there is a question about whether fire protection system contractors can
install the tanks providing water or diesel fuel to a fire protection system. According to industry members,
some local jurisdictions interpret current law to mean that fire protection system contractors cannot install
the tanks and must have a licensed liquid petroleum gas installer? or licensed plumber install the tanks,
while other local jurisdictions interpret current law to mean that fire protection system contractors may
install the tanks.”°

Design of Fire Protection Systems

The scope of practice for certified contractors does not include designing a fire protection system. In order
to design fire protection systems, a person must be licensed as a fire protection engineer” or architect with
fire protection design experience. A fire protection engineer or architect with fire protection design may
design any type of fire protection system and is not limited by type or size of the fire protection system.”°

Architects in the state are regulated by ch. 481, pt. |, F.S., and by the Board of Architecture and Interior
Design with the Department of Business and Professional Regulation (DBPR).

The practice of engineering is regulated by ch. 471, F.S., and by the Florida Board of Professional
Engineers (FBPE).7°

'? Tom Divine and Will Semien, NFPA 20: Changes to the fire pump standard, Consulting, Specifying Engineer (Nov. 14, 2017)
https://www.csemag.com/articles/nfpa-20-changes-to-the-fire-pump-
standard/#:~:text=The%o20fire%20pump%20is%20a,the%20event%200f%20a%20fire. (last visited Feb. 5, 2017).

2° Tracey Foster, NFPA 20: Fire pump design, Consulting, Specifying Engineer (Nov. 21, 2019)
https://www.csemag.com/articles/nfpa-20-fire-pump-design/ (last visited Feb. 6, 2021).

21. 633.336, F.S.

22 Liquid petroleum gas installers are licensed and regulated by the Department of Agriculture and Consumer Services. Liquid
petroleum is any material that is composed predominantly of propane, propylene, butanes (normal butane or isobutane), butylenes, or
a mixture of such materials. Diesel fuel falls under the definition of liquid petroleum. Ch. 527, F.S.; U.S. Energy information
Administration, Diesel fuel explained, https://www.eia.gov/energyexplained/diesel-fuel/ (last visited Feb. 7, 2021).

23Email from Suzanne Saults, Owner of St. Petersburg Fire Protection, Fire Protection Systems definition (Feb. 8, 2021); Email from
Bob DiModica, General Manager of Naples Fire Protection, Inc., Fire Sprinkler FS 633.102 (Feb. 9, 2021); Email from Scott Cox,
President of Cox Fire Protection, Inc., HB 137 (Feb. 10, 2021); Chris Johnson, President of Piper Fire Protection, Inc., FS 633.102
(Feb. 10, 2021).

4 There is no fire protection engineer license provided in current law. However, in order to practice engineering in Florida including
fire protection engineering, a person must be licensed as a professional engineer. See ch. 471, F.S.

25'S, 633.102(3), F.S.

6S. 471.038(3), F.S.
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Current law provides that a Contractor |, II, or IV may:?’
e Design fire protection systems of 49 or fewer sprinklers;
e Design the alteration of an existing fire sprinkler system regardless of size as long as the alteration
consists of the relocation, addition, or deletion of no more than 49 sprinklers; and
e Design a fire protection system that complies with NFPA 13D.

Effect of the Bill

The bill provides that a Contractor V may no longer inspect, alter, repair, or service underground piping for
a fire protection system using water as the extinguishing agent beginning at the point of service and ending
no more than 1 foot above the finished floor, unless the Contractor V is under the direction of a Contractor |
or Il. A Contractor V may still fabricate and install underground piping for such fire protection system.

The bill provides that a Contractor | or Il may design the alteration of an existing fire sprinkler system if the
alteration consists of the relocation or deletion of 249 or fewer sprinklers, regardless of the size of the
sprinkler system, as long as:
e There is no change of occupancy of the affected areas, as defined in the Florida Building Code;
e There is no change in the water demand as defined in NFPA 13, "Standard 76 for the Installation of
Sprinkler Systems;” and
e The occupancy hazard classification as defined in NFPA 13 is not reduced or remains the same.”°

It also clarifies that a Contractor | - IV may install tanks supplying fuel or water to a fire protection system.

B. SECTION DIRECTORY:

Section 1. Amending 633.102, F.S., relating to licensure for design, installation, and alteration of
fire sprinklers.

Section 2. Providing for an effective date of July 1, 2021.

ll. 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.

278, 633.102(3), F.S.

28 Every building must have an occupancy classification, which is the formal designation of the primary purpose of the building.
Different classifications of occupancy represent varying levels of hazard and risk to building occupants. A change of occupancy is
when a building changes its primary purpose or occupancy classification. Ss. 202 and 302 of the Seventh Edition of the Building
Code.

2°? The occupancy hazard classification is a rating system that is used to help determine the minimum water needed to fight a structural
fire. No hazard classification is assigned when a building has an automatic sprinkler system installed in accordance with applicable
standards. NFPA, Step | How Much Water is Needed?, https://www.nfpa.org/assets/gallery/firewise/operation Water/step1_3.htm (last

visited Feb. 4, 2021).
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2. Expenditures:

None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

The bill may have a positive impact by increasing the number of people who may design the alteration
of fire sprinkler systems by allowing Contractors | and II to design the alteration of larger fire sprinkler
protection systems.

The bill may have a negative impact by decreasing the number of people who may inspect, alter,
repair, or service underground piping for certain fire protection systems, by providing that a Contractor
V may no longer inspect, alter, repair, or service underground piping for a fire protection system unless
they are under the direct supervision of a Contractor | or Il.

D. FISCAL COMMENTS:

None.

lil. COMMENTS
A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:

Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:

Currently, it is not clear if a Contractor IV may design a fire protection systems for commercial
properties or multi-family dwellings, of 49 or fewer sprinklers or the alteration of an existing fire sprinkler
system, as long as the alteration consists of the relocation, addition, or deletion of no more than 49
sprinklers.

It is not clear if the bill intends to provide that a Contractor I, Il, and IV may design the alter a fire
protection system, for one- and two- family dwellings and manufactured homes, or the bill intends to
clarify that a Contractor |, Il, and IV may alter a fire protection system for one- and two- family dwellings
and manufactured homes.

It is not clear if the bill intends to include the Contractor III in the provision that allows Contractors | - IV
to install tanks supplying fuel or water to a fire protection system.

lV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIODA H O U S E O F REP RES EN TATIV ES

HB 137 2021

il A bill to be entitled

2 An act relating to fire sprinklers; amending s.

3 633.102, F.S.; revising the definition of the term

4 "Contractor V" to authorize such fire protection

5 system contractors to design and alter certain

6 systems; revising the definition of the term "fire

7 protection system"; providing an effective date.

8

9} Be It Enacted by the Legislature of the State of Florida:

10

11 Section 1. Subsections (3) and (11) of section 633.102,

12} Florida Statutes, are amended to read:

13 633.102 Definitions.—As used in this chapter, the term:

14 (3) (a) "Contractor I" means a contractor whose business

15} includes the execution of contracts requiring the ability to lay
16 out, fabricate, install, inspect, alter, repair, and service all
17 types of fire protection systems, excluding preengineered

18 systems.

19 (b) "Contractor II" means a contractor whose business is
20) limited to the execution of contracts requiring the ability to
21) lay out, fabricate, install, inspect, alter, repair, and service
22) water sprinkler systems, water spray systems, foam-water
23| sprinkler systems, foam-water spray systems, standpipes,
24 combination standpipes and sprinkler risers, all piping that is
25| an integral part of the system beginning at the point of service

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HB 137 2021

26 as defined in this section, sprinkler tank heaters, air lines,
27| thermal systems used in connection with sprinklers, and tanks
28 and pumps connected thereto, excluding preengineered systems.
29 (c) "Contractor III" means a contractor whose business is
30)| limited to the execution of contracts requiring the ability to
31 fabricate, install, inspect, alter, repair, and service carbon
32) dioxide systems, foam extinguishing systems, dry chemical

33 systems, and Halon and other chemical systems, excluding

34| preengineered systems.

35 (d) "Contractor IV" means a contractor whose business is
36} limited to the execution of contracts requiring the ability to
37 lay out, fabricate, install, inspect, alter, repair, and service
38] automatic fire sprinkler systems for detached one-family

39} dwellings, detached two-family dwellings, and mobile homes,

40| excluding preengineered systems and excluding single-family

41 homes in cluster units, such as apartments, condominiums, and
42 assisted living facilities or any building that is connected to
43} other dwellings. A Contractor IV is limited to the scope of

44| practice specified in NFPA 13D.

45 {e) “Contractor V" means a contractor whose business is
46] limited to the execution of contracts requiring the ability to

47 fabricate and install;—imstait_imnspeect,_attes,epais;and

48| seeviee the underground piping for a fire protection system

49) using water as the extinguishing agent beginning at the point of

50} service as defined in this act and ending no more than 1 foot

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FLO RIODA H O U S E O F REP RES EN TAT IV E 8S

HB 137 2021

51} above the finished floor. A Contractor V may inspect, alter,

52] repair, and service underground piping for a water-based fire

53] protection system only under the direction of a Contractor I or

54) Contractor II.
55
56| PRe-definititerns—im This subsection may not be construed to

57} include engineers or architects within the defined terms and

S6| does de fot limit 6F prohibit a licensed fire protection

59} engineer or architect with fire protection design experience

60| from designing any type of fire protection system. A distinction
61 is made between system design concepts prepared by the design

62| professional and system layout as defined in this section and

63| typically prepared by the contractor. However, a person

64| certified under this chapter as a Contractor I or; Contractor

65| I17—-ex-Gont rector yonder this-ehaptes may design new fire

66| protection systems of 49 or fewer sprinklers;7—and may design

67| the alteration of an existing fire sprinkler system if the
68 alteration consists of the relocation, addition, or deletion of
69| net—merethan 49 or fewer sprinklers, notwithstanding the size

70| of the existing fire sprinkler system; or may design the

71| alteration of an existing fire sprinkler system if the

72 alteration consists of the relocation or deletion of 249 or

73| fewer sprinklers, notwithstanding the size of the existing fire

74] sprinkler system, if there is no change of occupancy, as defined

715 in the Florida Building Code, of the affected areas and there is

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HB 137 2021

76 no change in the water demand as defined in NFPA 13, "Standard

77| for the Installation of Sprinkler Systems," and if the occupancy

78 hazard classification as defined in NFPA 13 is reduced or

79| remains the same as a result of the alteration. A person

80 certified as a Contractor I, Contractor II, or Contractor IV may
81) design or alter a fire protection system, the scope of which

82 complies with NFPA 13D, “Standard. for the Installation of

83} Sprinkler Systems in One- and Two-Family Dwellings and

84 Manufactured Homes," as adopted by the State Fire Marshal,

85| notwithstanding the number of fire sprinklers. Contractor-

86| developed plans may not be required by any local permitting

87 authority to be sealed by a registered professional engineer.

88 (11) "Fire protection system" means a system individually
89| designed to protect the interior or exterior of a specific

90} building or buildings, structure, or other special hazard from
91 fire. Such systems include, but are not limited to, water

92 sprinkler systems, water spray systems, foam-water sprinkler

93] systems, foam-water spray systems, carbon dioxide systems, foam
94 extinguishing systems, dry chemical systems, and Halon and other
95 chemical systems used for fire protection use. Such systems also
96| include any overhead and underground fire mains, fire hydrants
97) and hydrant mains, standpipes and hoses connected to sprinkler
98] systems, sprinkler tank heaters, air lines, thermal systems used
99) in connection with fire sprinkler systems, and tanks providing

100} water supply or pump fuel piping, and pumps connected to fire

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FLORIODA HOUSE O F REP RES ENTATIV ES

HB 137 2021

101} sprinkler systems.

102 Section 2. This act shall take effect July 1, 2021.

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REGULATORY REFORM SUBCOMMITTEE

HB 137 by Rep. Harding
Fire Sprinklers

AMENDMENT SUMMARY
February 18, 2021

Amendment 1 by Rep. Harding (strike-all):
The amendment:
e Allows a Contractor V to continue altering, repairing, or servicing underground piping for
a water-based fire protection system without supervision.
o A Contractor may not inspect underground piping for such systems unless they
are under the direction of a Contractor | or Il.
e Clarifies that a Contractor |, Il, and IV may design the alteration of an existing fire
sprinkler system for one- and two- family dwellings and manufactured homes.
e Clarifies that a Contractor ill may not install tanks supplying water or fuel to a fire
sprinkler system.
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COMMITTEE/SUBCOMMITTEE AMENDMENT

Bill No. HB 137 (2021)
Amendment No. 1.

COMMITTEE/SUBCOMMITTEE ACTION

ADOPTED _ (Y/N)
ADOPTED AS AMENDED __ (Y/N)
ADOPTED W/O OBJECTION __ (Y/N)
FAILED TO ADOPT __ (Y/N)
WITHDRAWN _ (Y/N)
OTHER

Committee/Subcommittee hearing bill: Regulatory Reform
Subcommittee

Representative Harding offered the following:

Amendment (with title amendment)

Remove everything after the enacting clause and insert:

Section 1. Subsections (3) and (11) of section 633.102,
Florida Statutes, are amended to read:

633.102 Definitions.—As used in this chapter, the term:

(3) (a) "Contractor I" means a contractor whose business
includes the execution of contracts requiring the ability to lay
out, fabricate, install, inspect, alter, repair, and service all
types of fire protection systems, excluding preengineered
systems.

(b) "Contractor II" means a contractor whose business is

limited to the execution of contracts requiring the ability to

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COMMITTEE/SUBCOMMITTEE AMENDMENT

Bill No. HB 137 (2021)
Amendment No. 1.

lay out, fabricate, install, inspect, alter, repair, and service
water sprinkler systems, water spray systems, foam-water
sprinkler systems, foam-water spray systems, standpipes,
combination standpipes and sprinkler risers, all piping that is
an integral part of the system beginning at the point of service
as defined in this section, sprinkler tank heaters, air lines,
thermal systems used in connection with sprinklers, and tanks
and pumps connected thereto, excluding preengineered systems.

(c) "Contractor III" means a contractor whose business is
limited to the execution of contracts requiring the ability to
fabricate, install, inspect, alter, repair, and service carbon
dioxide systems, foam extinguishing systems, dry chemical
systems, and Halon and other chemical systems, excluding
preengineered systems.

{d) "Contractor IV" means a contractor whose business is
limited to the execution of contracts requiring the ability to
lay out, fabricate, install, inspect, alter, repair, and service
automatic fire sprinkler systems for detached one-family
dwellings, detached two-family dwellings, and mobile homes,
excluding preengineered systems and excluding single-family
homes in cluster units, such as apartments, condominiums, and
assisted living facilities or any building that is connected to
other dwellings. A Contractor IV is limited to the scope of
practice specified in NFPA 13D.

(e) "Contractor V" means a contractor whose business is

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COMMITTEE/SUBCOMMITTEE AMENDMENT

Bill No. HB 137 (2021)
Amendment No. 1.

limited to the execution of contracts requiring the ability to
fabricate, install, imspeet, alter, repair, and service the
underground piping for a fire protection system using water as
the extinguishing agent beginning at the point of service as
defined in this act and ending no more than 1 foot above the

finished floor. A Contractor V may inspect underground piping

for a water-based fire protection system under the direction of

a Contractor I or Contractor II.

Tre-definitiens—in This subsection may not be construed to

include engineers or architects within the defined terms and

does de nol limit or prohibit a Licensed fire protection
engineer or architect with fire protection design experience
from designing any type of fire protection system. A distinction
is made between system design concepts prepared by the design
professional and system layout as defined in this section and
typically prepared by the contractor. However, a person
certified under this chapter as a Contractor I or; Contractor

TI7—e+Gontsactes onder this—ehapter may design new fire

protection systems of 49 or fewer sprinklers;;7—and may design

the alteration of an existing fire sprinkler system if the
alteration consists of the relocation, addition, or deletion of
meot-mere—than 49 or fewer sprinklers, notwithstanding the size

of the existing fire sprinkler system; or may design the

alteration of an existing fire sprinkler system if the

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COMMITTEE/SUBCOMMITTEE AMENDMENT

Bill No. HB 137 (2021)
Amendment No. 1.

alteration consists of the relocation or deletion of 249 or

fewer sprinklers, notwithstanding the size of the existing fire

sprinkler system, if there is no change of occupancy of the

affected areas, as defined in the Florida Building Code and the

Florida Fire Prevention Code, and there is no change in the

water demand as defined in NFPA 13, "Standard for the

Installation of Sprinkler Systems," and if the occupancy hazard

classification as defined in NFPA 13 is reduced or remains the

same as a result of the alteration. A person certified as a

Contractor I, Contractor II, or Contractor IV may design a new

fire protection system or design the alteration of an existing

fire protection system, the scope of which complies with NFPA

13D, "Standard for the Installation of Sprinkler Systems in One-
and Two-Family Dwellings and Manufactured Homes," as adopted by
the State Fire Marshal, notwithstanding the number of fire
sprinklers. Contractor-developed plans may not be required by
any local permitting authority to be sealed by a registered
professional engineer.

(11) "Fire protection system" means a system individually
designed to protect the interior or exterior of a specific
building or buildings, structure, or other special hazard from
fire. Such systems include, but are not limited to, water
sprinkler systems, water spray systems, foam-water sprinkler
systems, foam-water spray systems, carbon dioxide systems, foam

extinguishing systems, dry chemical systems, and Halon and other

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COMMITTEE/SUBCOMMITTEE AMENDMENT

Bill No. HB 137 (2021)
Amendment No. 1.

chemical systems used for fire protection use. Such systems also
include any overhead and underground fire mains, fire hydrants
and hydrant mains, standpipes and hoses connected to sprinkler
systems, sprinkler tank heaters, air lines, thermal systems used
in connection with fire sprinkler systems, and tanks providing

water supply or pump fuel, including piping for such tanks, and

pumps connected to fire sprinkler systems.

Section 2. This act shall take effect July 1, 2021.

TITLE AMENDMENT
Remove everything before the enacting clause and insert:
An act relating to fire sprinklers; amending s. 633.102, F.S.;
revising the definition of the term “Contractor V”; authorizing
certain fire protection system contractors to design certain
systems; revising the definition of the term “fire protection

system”; providing an effective date.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #: HB 329 _ = Alcoholic Beverage Licenses
SPONSOR(S): Tomkow
TIED BILLS: IDEN./SIM. BILLS: SB 134
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Willson Mw/ Anstead fo-

2) 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.

The bill:

e Allows certain restaurants to sell or deliver alcoholic beverages in a sealed container to-go, if
accompanied by food.

e 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.”

e Allows a restaurant licensed to sell wine to sell or deliver wine bottles, individual servings of wine, and
wine-based beverages to-go in a sealed container, if accompanied by food.

e Removes the “full course” part of the meal requirement for taking home an unfinished bottle of wine.

e Allows bars to sell or deliver liquor bottles, individual servings of liquor, or liquor-based beverages to-go
in a sealed container, if accompanied by food.

The bill does not have a fiscal impact on state or local governments.

The bill provides an effective date of July 1, 2021.

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

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Beverage Law

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
(Division) within the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law.’

“Alcoholic beverages” are defined in s. 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.? “Wine” means “all beverages made from fresh fruits, berries, or grapes, either by
natural fermentation or by natural fermentation with brandy added, in the manner required by the laws
and regulations of the United States, and includes all sparkling wines, champagnes, combination of the
aforesaid beverages, sake, vermouths, and like products.*

Restaurants - Off-Premises Consumption of Wine

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:

e The patron must have purchased a full-course meal consisting of a salad or vegetable, entrée, a
beverage, and bread and consumed a portion of the bottle of wine with the meal;

e 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;

e A dated receipt for the wine and meal must be attached to the container; and

e 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.®

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.®

Special Licenses

Section 561.20(1), F.S., limits, by county, the number of alcoholic beverage licenses that may be
issued for the sale of distilled spirits, to one license per 7,500 residents within the county. These limited

* Section 561.01(6), F.S., provides that the “The Beverage Law” means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2S. 561.02, F.S.

3S. 563.01, F.S.

4S. 564.01, F.S.

5S. 564.09, F.S.

8S. 561.57(1) & (2), F.S.

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alcoholic beverage licenses are known as “quota” licenses. The quota license is the only alcoholic
beverage license that is limited in number; all other types of alcoholic beverage licenses are available
without limitation, if certain conditions are met.

A “special license” is an exception to the quota licensing scheme, which allows certain entities to serve
liquor without a quota license. One such special license is a “special restaurant license,” (SRX) which
applies to a food service establishment that has 2,500 square feet, is equipped to serve 150 persons at
one time, and derives at least 51 percent of its gross food and beverage revenue from the sale of food
and nonalcoholic beverages. Such a food service establishment must be audited by ABT for
compliance with the food and nonalcoholic beverage sales percentage requirements during the first 60-
day operating period, and each 12-month operating period thereafter.

Open Containers

Section 316.1936, F.S., prohibits possession’ of open containers of alcoholic beverages in vehicles
and provides certain exceptions, including a provision specifying that a bottle of wine that has been
resealed and is transported pursuant to s. 564.09, F.S., is not an open container.®

Executive Orders

On March 20, 2020, Governor DeSantis signed Executive Order 20-71°, which suspended vendors
licensed to sell alcohol for consumption on premises from selling alcohol for on-site consumption, while
clarifying that such licensees may continue to sell alcoholic beverages in sealed containers for off-
premises consumption. The Order also prohibited restaurants from selling food for on-site consumption.
Restaurants were permitted to continue to sell food for take-out or delivery. The Order suspended
current law prohibiting specially licensed restaurants (SRX) from selling package sales of alcohol for
delivery, take-out, or consumption off-premises so long as the alcohol is in a sealed container and the
order includes food. The Order also suspended current law prohibiting the return of undamaged alcohol
purchased for events cancelled by COVID-19.

Effect of the Bill

The bill amends s. 561.20(2)(a)4., F.S., to specify that special restaurant licensees (SRX) may sell or
deliver alcoholic beverages by the package in a sealed container for off-premises consumption,
including wine-based and liquor-based beverages prepared by the licensee and packaged ina
container sealed by the licensee. The sale or delivery of such beverages must be accompanied by the
sale of food, and the delivery of alcoholic beverages must comply with s. 561.57, F.S. Malt beverages
sold or delivered pursuant to this provision must comply with container size, labeling, and filling
requirements.

The bill amends s. 564.09, F.S., to specify that a restaurant patron need only purchase “a meal’ in
order to remove a partially consumed bottle of wine from the restaurant. The bill also authorizes
restaurants which are licensed to sell wine for consumption on the premises to sell or deliver a
manufacturer-sealed bottle of wine, or an individual serving of wine or wine-based beverage prepared
by the licensee, for off-premises consumption if the wine is delivered in a container sealed by the
licensee and the sale or delivery is accompanied by the purchase of a meal. Such deliveries must
comply with s. 561.57, F.S.

7 S. 316.1936(3), F.S. specifies that “An open container shall be considered to be in the possession of the operator of a
vehicle if the container is not in the possession of a passenger and is not located in a locked glove compartment, locked
trunk, or other locked nonpassenger area of the vehicle.”

8S. 316.1936(9), F.S.

9 Executive Order 20-71 expires upon the expiration of Executive Order 20-52, which was most recently extended

pursuant to Executive Order 20-316 on Dec. 29, 2020, for an additional 60 days..
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The bill amends s. 565.045, F.S., to specify that vendors licensed under s. 565.02(1)(b)-(f), F.S.,'°
generally non package-store quota license holders, may sell or deliver alcoholic beverages in
manufacturer-sealed containers. The bill also authorizes such licensees to sell or deliver an individual
serving of liquor or a liquor-based beverage prepared by the licensee for off-premises consumption if
the container is sealed by the licensee and accompanied by the sale of food.

The bill has an effective date of July 1, 2021.

B. SECTION DIRECTORY:

Section 1

Section 2

Section 3

Sections 4-5

Section 6

Amends s. 561.20, F.S.; authorizing certain food service establishments to sell or deliver
alcoholic beverages for off-premises consumption if specified requirements are met and
deletes a provision prohibiting certain food service establishments from operating as a
package store.

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 and authorizing certain restaurants to sell or deliver wine in specified
packages under certain circumstances.

Amends s. 565.045, F.S.; revising requirements for the sale of alcoholic beverages by
certain vendors and authorizing certain vendors to deliver specified alcoholic beverages
and liquor under certain circumstances.

Reenacts ss. 316.1936(9) and 564.05, F.S., relating to the possession of open
containers of alcoholic beverages in vehicles and the limitation of size of individual wine
containers, respectively, to incorporate the amendments made to s. 564.09, F.S., in
references thereto.

Provides for an effective date.

ll. 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.

19S. 565.02(1)(b)-(f), F.S., refers to vendors who are permitted to sell any alcoholic beverage regardless of alcoholic

content for consumption on the premises.
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C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

The bill may enable food service establishments that also hold certain alcoholic beverage licenses to
increase their sales revenue through the sale of alcoholic beverages with food delivery orders.

D. FISCAL COMMENTS:
None.

lil. 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 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

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FLORIODA HO US E O F REP RES EN TATIV ES

HB 329 2021

1 A bill to be entitled
Z An act relating to alcoholic beverage licenses;
3 amending s. 561.20, F.S.; authorizing certain food
4 service establishments to sell or deliver alcoholic
5 beverages for off-premises consumption if specified
6 requirements are met; deleting a provision prohibiting
7 certain food service establishments from operating as
8 a package store; amending s. 564.09, F.S.; revising
9 provisions that authorize a restaurant to allow
10 patrons to remove partially consumed bottles of wine
11 from a restaurant for off-premises consumption;
12 authorizing certain restaurants to sell or deliver
13 wine in specified packages under certain
14 circumstances; amending s. 565.045, F.S.; revising
15 requirements for the sale of alcoholic beverages by
16 certain vendors; authorizing certain vendors to
17 deliver specified alcoholic beverages and liquor under
18 certain circumstances; reenacting ss. 316.1936(9) and
19 564.05, F.S., relating to the possession of open
20 containers of alcoholic beverages in vehicles and the
21 limitation of size of individual wine containers,
22 respectively, to incorporate the amendments made to s.
23 564.09, F.S., in references thereto; providing an
24 effective date.
25

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26} Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Paragraph (a) of subsection (2) of section

29 561.20, Florida Statutes, is amended to read:

30 561.20 Limitation upon number of licenses issued.—

31 (2) (a) The limitation of the number of licenses as

32} provided in this section does not prohibit the issuance of a

33 special license to:

34 1. Any bona fide hotel, motel, or motor court of not fewer
35} than 80 guest rooms in any county having a population of less

36 than 50,000 residents, and of not fewer than 100 guest rooms in
37) any county having a population of 50,000 residents or greater;
38] or any bona fide hotel or motel located in a historic structure,
39| as defined in s. 561.01(21), with fewer than 100 guest rooms

40} which derives at least 51 percent of its gross revenue from the
41 rental of hotel or motel rooms, which is licensed as a public

42 lodging establishment by the Division of Hotels and Restaurants;
43) provided, however, that a bona fide hotel or motel with no fewer
44 than 10 and no more than 25 guest rooms which is a historic

A5 structure, as defined in s. 561.01(21), in a municipality that
46} on the effective date of this act has a population, according to
47| the University of Florida's Bureau of Economic and Business

48 Research Estimates of Population for 1998, of no fewer than

49 25,000 and no more than 35,000 residents and that is within a

50} constitutionally chartered county may be issued a special

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51} license. This special license shall allow the sale and

52] consumption of alcoholic beverages only on the licensed premises
53 of the hotel or motel. In addition, the hotel or motel must

54} derive at least 60 percent of its gross revenue from the rental
55} of hotel or motel rooms and the sale of food and nonalcoholic

56} beverages; provided that this subparagraph shall supersede local
57} laws requiring a greater number of hotel rooms;

58 2. Any condominium accommodation of which no fewer than

59} 100 condominium units are wholly rentable to transients and

60| which is licensed under chapter 509, except that the license

61} shall be issued only to the person or corporation that operates
62| the hotel or motel operation and not to the association of

63] condominium owners;

64 3. Any condominium accommodation of which no fewer than 50
65 condominium units are wholly rentable to transients, which is

66] licensed under chapter 509, and which is located in any county
67| having home rule under s. 10 or s. 11, Art. VIII of the State

68] Constitution of 1885, as amended, and incorporated by reference
69 in s. 6(e), Art. VIII of the State Constitution, except that the
70} license shall be issued only to the person or corporation that
71} operates the hotel or motel operation and not to the association
72) of condominium owners;

43 4. A food service establishment that has 2,500 square feet
74| of service area, is equipped to serve meals to 150 persons at

75| one time, and derives at least 51 percent of its gross food and

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76| beverage revenue from the sale of food and nonalcoholic
77| beverages during the first 60-day operating period and each 12-

78} month operating period thereafter. A licensee under this

79| subparagraph may sell or deliver alcoholic beverages by the

80] package in a sealed container for off-premises consumption if

81) the sale or delivery is accompanied by the sale of food within

82| the same order. Such authorized sale or delivery includes wine-

83] based and liquor-based beverages prepared by the licensee and

84] packaged in a container sealed by the licensee. Any sale or

85] delivery of malt beverages must comply with the container size,

86| labeling, and filling requirements imposed under s. 563.06. Any

87| delivery of an alcoholic beverage under this subparagraph must

88] comply with s. 561.57. A food service establishment granted a

89| special license on or after January 1, 1958, pursuant to general
90} or special law may not eperete—as—a_peckege—_stere—_and-mayFet

91} sell intoxicating beverages under such license after the hours
92} of serving or consumption of food have elapsed. Failure by a

93} licensee to meet the required percentage of food and

94) nonalcoholic beverage gross revenues during the covered

95| operating period shall result in revocation of the license or

96| denial of the pending license application. A licensee whose

97| license is revoked or an applicant whose pending application is
98| denied, or any person required to qualify on the special license
99| application, is ineligible to have any interest in a subsequent

100| application for such a license for a period of 120 days after

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101} the date of the final denial or revocation;

102 5. Any caterer, deriving at least 51 percent of its gross
103} food and beverage revenue from the sale of food and nonalcoholic
104| beverages at each catered event, licensed by the Division of

105} Hotels and Restaurants under chapter 509. This subparagraph does
106] not apply to a culinary education program, as defined in s.

107 381.0072(2), which is licensed as a public food service

108} establishment by the Division of Hotels and Restaurants and

109} provides catering services. Notwithstanding any law to the

110 contrary, a licensee under this subparagraph shall sell or serve
111] alcoholic beverages only for consumption on the premises of a
112] catered event at which the licensee is also providing prepared
113) food, and shall prominently display its license at any catered
114) event at which the caterer is selling or serving alcoholic

115} beverages. A licensee under this subparagraph shall purchase all
116} alcoholic beverages it sells or serves at a catered event from a
117 vendor licensed under s. 563.02(1), s. 564.02(1), or licensed
118) under s. 565.02(1) subject to the limitation imposed in

119} subsection (1), as appropriate. A licensee under this

120} subparagraph may not store any alcoholic beverages to be sold or
121] served at a catered event. Any alcoholic beverages purchased by
122} a licensee under this subparagraph for a catered event that are
123} not used at that event must remain with the customer; provided
124) that if the vendor accepts unopened alcoholic beverages, the

125 licensee may return such alcoholic beverages to the vendor for a

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126] credit or reimbursement. Regardless of the county or counties in
127| which the licensee operates, a licensee under this subparagraph
128] shall pay the annual state license tax set forth in s.

129] 565.02(1) (b). A licensee under this subparagraph must maintain
130 for a period of 3 years all records and receipts for each

131 catered event, including all contracts, customers' names, event
132 locations, event dates, food purchases and sales, alcoholic

133] beverage purchases and sales, nonalcoholic beverage purchases
134} and sales, and any other records required by the department by
135} rule to demonstrate compliance with the requirements of this

136} subparagraph. Notwithstanding any law to the contrary, any

137} vendor licensed under s. 565.02(1) subject to the limitation

138 imposed in subsection (1), may, without any additional licensure
139] under this subparagraph, serve or sell alcoholic beverages for
140] consumption on the premises of a catered event at which prepared
141} food is provided by a caterer licensed under chapter 509. If a
142} licensee under this subparagraph also possesses any other

143} license under the Beverage Law, the license issued under this
144) subparagraph may shett not authorize the holder to conduct

145] activities on the premises to which the other license or

146} licenses apply that would otherwise be prohibited by the terms
147} of that license or the Beverage Law. Nething—im This section

148] does not shatt permit the licensee to conduct activities that
149} are otherwise prohibited by the Beverage Law or local law. The

150} Division of Alcoholic Beverages and Tobacco is hereby authorized

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151] to adopt rules to administer the license created in this

152] subparagraph, to include rules governing licensure,

153 recordkeeping, and enforcement. The first $300,000 in fees

154| collected by the division each fiscal year pursuant to this

155| subparagraph shall be deposited in the Department of Children
156] and Families' Operations and Maintenance Trust Fund to be used
LS) only for alcohol and drug abuse education, treatment, and

158] prevention programs. The remainder of the fees collected shall
159| be deposited into the Hotel and Restaurant Trust Fund created
160} pursuant to s. 509.072; or

161 6. A culinary education program as defined in s.

162 381.0072(2) which is licensed as a public food service

163] establishment by the Division of Hotels and Restaurants.

164 a. This special license shall allow the sale and

165 consumption of alcoholic beverages on the licensed premises of
166] the culinary education program. The culinary education program
167 shall specify designated areas in the facility where the

168 alcoholic beverages may be consumed at the time of application.
169} Alcoholic beverages sold for consumption on the premises may be
170} consumed only in areas designated under pursuant—te s.

Vl 561.01(11) and may not be removed from the designated area. Such
172] license shall be applicable only in and for designated areas
173] used by the culinary education program.

174 b. If the culinary education program provides catering

175] services, this special license shall also allow the sale and

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176| consumption of alcoholic beverages on the premises of a catered
177) event at which the licensee is also providing prepared food. A
178] culinary education program that provides catering services is
179} not required to derive at least 51 percent of its gross revenue
180| from the sale of food and nonalcoholic beverages.

181| Notwithstanding any law to the contrary, a licensee that

182] provides catering services under this sub-subparagraph shall
183] prominently display its beverage license at any catered event at
184| which the caterer is selling or serving alcoholic beverages.
185| Regardless of the county or counties in which the licensee

186] operates, a licensee under this sub-subparagraph shall pay the
187] annual state license tax set forth in s. 565.02(1) (b). A

188] licensee under this sub-subparagraph must maintain for a period
189} of 3 years all records required by the department by rule to
190] demonstrate compliance with the requirements of this sub-

191|} subparagraph.

192 ec. If a licensee under this subparagraph also possesses
193 any other license under the Beverage Law, the license issued
194} under this subparagraph does not authorize the holder to conduct
195} activities on the premises to which the other license or

196) licenses apply that would otherwise be prohibited by the terms
197] of that license or the Beverage Law. Nething—im This

198] subparagraph does not skhelt permit the licensee to conduct

199| activities that are otherwise prohibited by the Beverage Law or

200} local law. Any culinary education program that holds a license

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201 to sell alcoholic beverages shall comply with the age

202 requirements set forth in ss. 562.11(4), 562.111(2), and 562.13.
203 d. The Division of Alcoholic Beverages and Tobacco may

204} adopt rules to administer the license created in this

205} subparagraph, to include rules governing licensure,

206 recordkeeping, and enforcement.

207 e. A license issued pursuant to this subparagraph does not
208| permit the licensee to sell alcoholic beverages by the package
209} for off-premises consumption.

210
211 However, any license heretofore issued to any such hotel, motel,
212 motor court, or restaurant or hereafter issued to any such

213 hotel, motel, or motor court, including a condominium

214| accommodation, under the general law may shalt not be moved to a
215} new location, such license being valid only on the premises of
216 such hotel, motel, motor court, or restaurant. Licenses issued
211 to hotels, motels, motor courts, or restaurants under the

218 general law and held by such hotels, motels, motor courts, or
219} restaurants on May 24, 1947, shall be counted in the quota

220) limitation contained in subsection (1). Any license issued for
221 any hotel, motel, or motor court under this law shall be issued
222 only to the owner of the hotel, motel, or motor court or, in the
223 event the hotel, motel, or motor court is leased, to the lessee
224 of the hotel, motel, or motor court; and the license shall

225 remain in the name of the owner or lessee so long as the license

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226| is in existence. Any special license now in existence heretofore
227 issued under this law cannot be renewed except in the name of
228 the owner of the hotel, motel, motor court, or restaurant or, in
229 the event the hotel, motel, motor court, or restaurant is

230 leased, in the name of the lessee of the hotel, motel, motor

231 court, or restaurant in which the license is located and must
232| remain in the name of the owner or lessee so long as the license
233} is in existence. Any license issued under this section shall be
234| marked "Special," and nothing herein provided shall limit,

235] restrict, or prevent the issuance of a special license for any
236| restaurant or motel which shall hereafter meet the requirements
237| of the law existing immediately before prier-to the effective
238 date of this act, if construction of such restaurant has

239| commenced before petiex—te the effective date of this act and is
240] completed within 30 days thereafter, or if an application is on
241| file for such special license at the time this act takes effect;
242) and any such licenses issued under this proviso may be annually
243 renewed as now provided by law. Nothing herein prevents an

244] application for transfer of a license to a bona fide purchaser
245) of any hotel, motel, motor court, or restaurant by the purchaser

246| of such facility or the transfer of such license pursuant to

247| law.

248 Section 2. Section 564.09, Florida Statutes, is amended to
249] read:

250 564.09 Restaurants; off-premises consumption of wine.-—

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201 (1) Notwithstanding any other provision of law, a

252] restaurant licensed to sell wine on the premises may permit a
253] patron to remove one unsealed bottle of wine for consumption off
254| the premises if the patron has purchased a #4141} ecervrsse meal

295 ts 7 7 7

256| S¥ead and consumed a portion of the bottle of wine witkh-sueb

257| meat on the restaurant premises. A partially consumed bottle of
258] wine that is to be removed from the premises must be securely
259| resealed by the licensee or its employees before removal from
260} the premises. The partially consumed bottle of wine shall be

261] placed in a bag or other container that is secured in such a

262|/ manner that it is visibly apparent if the container has been

263] subsequently opened or tampered with, and a dated receipt for
264] the bottle of wine and £fat}-eevsse meal shall be provided by the
265| licensee and attached to the container. If transported ina

266| motor vehicle, the container with the resealed bottle of wine
267| must be placed in a locked glove compartment, a locked trunk, or
268| the area behind the last upright seat of a motor vehicle that is
269} not equipped with a trunk.

270 (2) Notwithstanding any other provision of law, a

271| xvestaurant licensed to sell wine for consumption on the premises

Z2T2 may sell or deliver a manufacturer-sealed bottle of wine, or an

273| individual serving of wine or wine-based beverage prepared by

274) the licensee, for off-premises consumption if the wine is

275| delivered in a container sealed by the licensee and the sale or

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276| delivery is accompanied by the purchase of a meal within the

277| same order. Any delivery made under this subsection must comply

278) with s. 561.57.
279 Section 3. Subsection (1) of section 565.045, Florida

280 Statutes, is amended to read:
281 565.045 Regulations for consumption on premises; penalty;

282| exemptions.—

283 (1) Vendors licensed under s. 565.02(1) (b)-(f):
284 (a) Shall provide seats for the use of their customers;
285 (b) +~+Sueh-vendess May sell or deliver alcoholic beverages

286| by the drink or in manufacturer-sealed seated containers for

287| consumption on or off the premises where sold; and

288 (c) May sell or deliver an individual serving of liquor or

289| a liquor-based beverage prepared by the licensee for off-

290} premises consumption if the liquor or liquor-based beverage is

291] in a container sealed by the licensee.
292

293| All sales or deliveries of alcoholic beverages made under

294| paragraph (c) for off-premises consumption must be accompanied

295) by the sale of food within the same order.

296 Section 4. For the purpose of incorporating the amendment
297| made by this act to section 564.09, Florida Statutes, ina

298| reference thereto, subsection (9) of section 316.1936, Florida
299 Statutes, is reenacted and amended to read:

300 316.1936 Possession of open containers of alcoholic

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301] beverages in vehicles prohibited; penalties.—

302 (9) A bottle of wine that has been resealed and is

303} transported pursuant to s. 564.09 is not an open container under
304| ¢he—previsiens—ef this section.

305 Section 5. For the purpose of incorporating the amendment
306] made by this act to section 564.09, Florida Statutes, ina

307 reference thereto, section 564.05, Florida Statutes, is

308] reenacted to read:

309 564.05 Limitation of size of individual wine containers;
310} penalty.—It is unlawful for a person to sell within this state
311] wine in an individual container holding more than 1 gallon of
312 such wine, unless such wine is in a reusable container holding
313] 5.16 gallons. However, qualified distributors and manufacturers
314) may sell wine to other qualified distributors or manufacturers
315} in any size container. Except as provided in s. 564.09, wine
316| sold or offered for sale by a licensed vendor to be consumed off
317} the premises shall be in the unopened original container. A

318} person convicted of a violation of this section commits a

319} misdemeanor of the second degree, punishable as provided in s.
320| 775.082 or gs. 775.083.

321 Section 6. This act shall take effect July 1, 2021.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #: HB 369 Construction Contracting Regulation Exemption
SPONSOR(S): Rodriguez
TIED BILLS: IDEN./SIM. BILLS: SB 1212
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Brackett £7 B Anstead or

2) Commerce Committee

SUMMARY ANALYSIS

Construction Contractors are certified by or registered with the Construction Industry Licensing Board (CILB)
housed within the Department of Business and Professional Regulation. Certified contractors can practice
statewide and are licensed and regulated by the CILB. Registered contractors are licensed and regulated by a
local jurisdiction and may practice within that locality. Registered contractors are required to register their
license with the CILB.

In order to perform contracting in the state, a person must be certified or registered (licensed) as a contractor,
be an employee of a licensed contractor, or fall under an exemption provided in current law. For example, an
unlicensed person may perform contracting work if it is casual, minor, or inconsequential in nature, and the
total contract price for all labor and materials is less than $2,500, subject to certain requirements.

“Chickees” are open sided wooden huts constructed with cypress logs and palm thatch leaves that are woven
together by vines or thin ropes. Native Americans used chickees for housing during the Seminole wars when
Native Americans were pursued by U.S. troops. Chickees are no longer used for actual housing, but chickees
are still being built and used in the state. Members of certain Native American Tribes in Florida still build
chickees for commercial and private interests.

Current law provides that chickees built by members of the Seminole Tribe of Florida or the Miccosukee Tribe
of Indians of Florida are exempt from the requirements of the Florida Building Code. However, current law
does not provide an exemption from the contractor licensing requirements for members of the Seminole Tribe
and the Miccosukee Tribe of Indians who build chickees. Some local jurisdictions require that a person hold a
certain state certified contractor license in order to build a chickee.

The bill creates a contracting licensure exemption by providing that membérs of the Seminole Tribe of Florida
and the Miccosukee Tribe of Indians of Florida are not required to be licensed as a contractor or be an
employee of a licensed contractor when constructing chickees.

The bill does not have a fiscal impact on state and local governments.

The bill provides for an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0369.RRS.DOCX
DATE: 2/11/2021
FULL ANALYSIS
|. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Current Situation

Construction Professional Licenses

Contractors are regulated by ch. 489, F.S., which outlines the law pertaining to contractors in the state
of Florida. Part | of ch. 489, F.S., covers construction contracting regulated by the Construction Industry
Licensing Board (CILB) and pt. II of ch. 489, F.S., covers electrical/alarm system contracting regulated
by the Electrical Contractors’ Licensing Board. Both boards are housed in the Department of Business
and Professional Regulation (DBPR).

Construction contractors are either certified or registered by the CILB. The CILB consists of 18
members who are appointed by the Governor and confirmed by the Senate. The CILB meets to
approve or deny applications for licensure, review disciplinary cases, and conduct informal hearings
relating to discipline.‘

"Certified contractors" are individuals who pass the state competency examination and obtain a
certificate of competency issued by DBPR. Certified contractors are able to obtain a certificate of
competency for a specific license category and are permitted to practice in that category in any
jurisdiction in the state.”

“Certified specialty contractors” are contractors whose scope of work is limited to a particular phase of
construction, such as drywall or demolition. Certified specialty contractor licenses are created by the
CILB through rulemaking. Certified specialty contractors are permitted to practice in any jurisdiction in
the state.°

“Registered contractors” are individuals that have taken and passed a local competency examination
and can practice the specific category of contracting for which he or she is approved, only in the local
jurisdiction for which the license is issued. Registered contractors must register their license with the
CILB after obtaining a local license.*

In order to perform construction contracting in the state, a person must be certified or registered as a
contractor, be an employee® of a certified or registered contractor, or fall under an exemption provided
in current law.®

'S, 489.107, F.S.

2'§. 489.105, F.S.

4 Ss. 489.105, & 489.117, F.S.

> “Employee” means a person who receives compensation from and is under the supervision and control of an employer who regularly
deducts the F.I.C.A. and withholding tax and provides workers’ compensation, all as prescribed by law. S. 489.103(2)(b), F.S.

® Ss. 489.103(2), & 489.113, F.S.
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The CILB licenses the following types of contractors:’

Statutory Licenses Specialty Licenses
e Air Conditioning- Classes A, B, and C e Drywall
e Building e Demolition
e General e Gas Line
e Internal Pollutant Storage Tank Lining e Glass and Glazing
Applicator e !ndustrial Facilities
e Mechanical e Irrigation
e Plumbing e Marine
e Pollutant Storage Systems e Residential Pool/Spa Servicing
e Pool/Spa- Classes A, B, and C e Solar Water Heating
e Precision Tank Tester e Structure
e Residential e Swimming Pool Decking
e Roofing e Swimming Pool Excavation
e Sheet Metal e Swimming Pool Finishes
e Solar e Swimming Pool Layout
e Underground Excavation e Swimming Pool Piping
e Swimming Pool Structural
e Swimming Pool Trim
e Tower

The CILB is divided into the following two divisions with separate jurisdictions:®

e Division | is comprised of the general contractor, building contractor, and residential contractor
members of the CILB. Division | has jurisdiction over the regulation of general contractors,
building contractors, and residential contractors.

o General contractors are unlimited as to the type of work they may do, such as contracting to
build high-rise buildings, and may perform any work requiring licensure, except as otherwise
expressly provided in current law.®

o Building contractors may construct commercial buildings and single-dwelling or multiple-
dwelling residential buildings, which do not exceed three stories in height, and remodel,
repair, or improve any size building if the services do not affect the structure of the
building.'°

o Residential Contractors may construct, remodel, repair, or improve one-family, two-family, or
three-family residences not exceeding two habitable stories above no more than one
uninhabitable story."

e Division |] is comprised of the roofing contractor, sheet metal contractor, air-conditioning
contractor, mechanical contractor, pool contractor, plumbing contractor, and underground utility
and excavation contractor members of the CILB. Division I! has jurisdiction over the regulation
of roofing contractors, sheet metal contractors, class A, B, and C air-conditioning contractors,
mechanical contractors, commercial pool/spa contractors, residential pool/spa contractors,
swimming pool/spa servicing contractors, plumbing contractors, underground utility and
excavation contractors, solar contractors, and pollutant storage systems contractors.

7S. 489.105(a)-(q), F.S.; Rule 61G4-15.015-040, F.A.C.
8

9S. 489.105(3)(a), F.S.
10 §, 489.105(3)(b), F.S.

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e A specialty contractor is one whose scope of work and responsibility is limited to a particular
phase of construction as detailed in an administrative rule adopted by the CILB. Jurisdiction is
dependent on the scope of work and whether Division | or Division II has jurisdiction over such
work in accordance with the applicable administrative rule. ‘2

In order to become a construction contractor, an applicant must meet the following criteria:'°

be of good moral character;

be at least 18 years of age;

successfully pass the certification examination; and

meet eligibility requirements according to a combination of education and experience as
approved by the board, which generally includes four years of education and/or experience
depending on the license with at least one year being experience.

Exceptions to Construction Professional Licensure

An unlicensed person may perform work that falls under the scope of contracting if they fall under an
exemption provided in current law. Currently, there are 23 exemptions provided in current law,

e aperson performing contracting if it is casual, minor, or inconsequential in nature, and the
aggregate contract price for all labor and materials is less than $2,500, subject to certain
requirements. This is referred to as the handyman exemption;

e anowner building or improving one or two-family residences, farm outbuildings, or improving
commercial buildings at a cost that does not exceed $75,000, subject to certain requirements;

e anemployee of an apartment community or apartment management company who makes
minor repairs to existing electric water heaters, electric heating, ventilating, and air-conditioning
systems subject to certain requirements;

e aperson who sells or installs any finished products, materials, or articles of merchandise that
are not fabricated into and do not become a permanent part of a structure such as awnings; and

e Anemployee of the United States, the state, or any municipality, county, irrigation district,
reclamation district, or political subdivision, except school boards, state university boards of
trustees, and community college boards of trustee, subject to certain requirements.

The Florida Building Code

The Florida Building Code (Building Code) is the statewide building code for all construction in the
state. The Florida Building Commission (Commission), housed within the DBPR, implements the
Building Code. The Commission reviews the International Code Council's |-Codes and the National
Electric Code every three years to determine if it needs to update the Building Code."®

Part IV of ch. 553, F.S., is known as the “Florida Building Codes Act” (Act), which provides a
mechanism for the uniform adoption, updating, interpretation, and enforcement of a single, unified state
building code that must be applied, administered, and enforced uniformly and consistently from

'2 For example, specialty swimming pool contractors have limited scopes of work for the construction of pools, spas, hot tub, and
decorative or interactive water displays. See Fla. Admin. Code Rule 61G4-15.032.

4S. 489.103, F.S.

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DATE: 2/11/2021
jurisdiction to jurisdiction.‘* The Building Code is adopted, updated, and interpreted by the Commission,
and is enforced by local governments.'’

The main purpose of the Building Code is to regulate new construction or proposed modifications to
existing structures in order to give the occupants the highest level of safety and the least amount of

The Seminole Tribe of Florida and The Miccosukee Tribe of Indians of Florida

Seminole history begins with bands of Creek Indians from Georgia and Alabama who migrated to
Florida in the 1700s. Conflicts with Europeans and other tribes caused them to seek new lands to live
in peace.'® Based on their movement to Florida, these Native Americans collectively became known as
Seminole, a name meaning "wild people" or "runaway." In addition to Creeks, Seminoles included
Yuchis, Yamasses and other tribes that had lived and hunted all over the Florida peninsula for
thousands of years. The population also included runaway slaves who found refuge among the Native
Americans.”°

On July 21, 1957, tribal members voted in favor of a Seminole Constitution which established the
Seminole Tribe of Florida, and the U.S. government formally recognized them as a Native American
Tribe in the same year."

In order to be a member the Seminole Tribe of Fiorida, a person must meet the following three

e Have a minimum of one-quarter Florida Seminole blood (one of the person’s grandparents must
have been a full-blooded Florida Seminole);

e Be able to prove (with written documentation) that he or she is directly related to a Florida
Seminole who was listed on the 1957 Tribal Roll, which is the Base Roll of the Seminole Tribe of
Florida; and

e Be sponsored for enrollment by someone who is currently a member of the Tribe.

The Miccosukee Tribe of Indians of Florida was originally part of the same group of Native Americans
as the Seminoles. However, they separated from the Seminole Tribe and became an independent tribe.
The U.S. government formally recognized the Tribe on January 11, 1962.7

In order to a member of the Miccosukee Tribe of Indians of Florida, a person must have a Miccosukee
mother and not be enrolled in any other Tribe.”4

16 See s. 553.72(1), F.S.

"” Ss, 553.72, & 553.73, FS.

'8 Florida Building Commission, Advanced Florida Building Code Principals,

%20Course%20PDF%20version%207.0.pdf (last visited Feb. 9, 2021).

? Florida Department of State, Seminole History, https://dos.myflorida.com/florida-facts/florida-history/seminole-history/ (last visited
Feb. 9, 2021).

20 Id.; Seminole Tribe of Florida, Frequently Asked Questions, https://www.semtribe.com/stof/helpful-linksmain/helpful-links (last
visited on Feb. 8, 2021).

21 Id, Seminole Tribe of Florida, History, https://www.semtribe.com/stof/history/timeline (last visited Feb. 9, 2021).

22 Seminole Tribe of Florida, Frequently Asked Questions, https://www.semtribe.com/stof/helpful-linksmain/helpful-links (last visited
on Feb. 8, 2021).

?3 Florida Department of Transportation, Miccosukee Tribe of Indians of Florida, https://www.fdot.gov/environment/na-website-
files/miccosukee.shtm (last visited Feb. 8, 2021); Miccosukee Tribe of Indians of Florida, History, https://tribe.miccosukee.com/ (last
visited Feb. 8, 2021).

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Chickees

Current law defines chickees as “an open-sided wooden hut that has a thatched roof of palm or
palmetto or other traditional materials, and that does not incorporate any electrical, plumbing, or other
nonwood features.”2°

"Chickee" is the word Seminoles use for "house." The chickee style of architecture - palmetto thatch
over a cypress log frame - was born during the Seminole wars (1817-1858) when Native Americans,
pursued by U.S. troops, needed fast, disposable shelter while on the run.76

Currently, chickees are no longer used for actual housing. Members of the Seminole Tribe of Florida
and the Miccosukee Tribe of Indians of Florida still build chickees for commercial and private
interests.” Generally, members of the Seminole Tribe of Florida who build chickees for commercial and
private interests learn how to build chickees from their ancestors.7°

In the Miccosukee Tribe of Indians of Florida, members are taught to build chickees at a young age by
experienced Tribal elders. The Tribe maintains a list of expert builders, which is maintained by the

Miccosukee Business Council.?° Tribal elders decide when a person is ready to be on the list, and the
Miccosukee Business Council may add them to the list or determine that they need more instruction.*°

When members of the public contact the Tribe about building a chickee, they are referred to the
members on the list of expert builders.*"

Currently, chickees can be constructed in a matter of hours instead of days because of improvements
in technology and equipment. Nails, chainsaws and four wheelers are now used to haul heavy logs
replacing the old method when Native Americans would either use manpower or wait until a
thunderstorm would flood the area were logs had been cut down so they could be hauled out to the
location of the new camp.*?

Chickee Exemption from the Florida Building Code

Current law exempts chickees built by members of the Seminole Tribe of Florida or the Miccosukee
Tribe of Indians of Florida from the requirements of the Building Code. Chickees that are exempt from
these requirements may not have any electrical, plumbing, or other nonwood features. However, such
chickees may have nonwood items underneath them such as plastic or aluminum chairs, countertops,
or food and beverages.”

Contracting Licensure Requirement

Current law does not provide an exemption from the contractor licensing requirements for members of
the Seminole Tribe of Florida or the Miccosukee Tribe of Indians of Florida who construct chickees.

25 §_ 553.73(10)(i), F.S.

6 Seminole Tribe of Florida, Chickee, https://www.semtribe.com/stof/culture/chickee (last visited Feb. 8, 2021).

27 Id.

28 Id; WGCU Public Media, Chickees, (Sep. 29, 2010) https://www.youtube.com/watch?v=ipulUXK2exQ (last visited Feb. 11, 2021).
22 The Miccosukee Business Council consists of five elected members.

3° Jeanine Bennett, In-House General Counsel for the Miccosukee Tribe of Indians of Florida, Miccosukee Chickee Bill (Feb. 10,
2021).

31 Ida.

32 Ernie Tiger, Chickees Provided Early Housing, https://www.semtribe.com/stof/culture/chickee (last visited Feb. 9, 2021).

33 See The Petition for Declaratory Statement of Plaza Beach Motel, Inc., Case No. 2018-012 (Fla. Building Comission) (Apr. 20,

2018).
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DATE: 2/11/2021
In 2013, the CILB issued a declaratory statement stating that members of the Seminole Tribe of Florida
and the Miccosukee Tribe of Indians of Florida are not exempt from contractor licensure requirements
when building chickees for consumers outside the boundaries of their reservations.

Local governments in Florida require the builder of chickee to obtain a permit and comply with all
zoning and environmental regulations, local ordinances and regulations, and the Department of Health

In order to obtain a permit to build a chickee, local governments are requiring members of the Seminole
Tribe of Florida and the Miccosukee Tribe of Indians of Florida to be licensed contractors or employees

of a licensed contractor. Some local governments are requiring anyone wishing to build a chickee to be
a licensed Division | contractor or an employee of a licensed Division | contractor.*®

The Bill
The bill creates a contractor licensure exemption by providing that members of the Seminole Tribe of

Florida and the Miccosukee Tribe of Indians of Florida are not required to be licensed as a contractor or
be an employee of a licensed contractor when constructing chickees.

B. SECTION DIRECTORY:
Section 1. Amends s. 489.103, F.S., creating an exemption

Section 2. Provides an effective date of July 1, 2021.

li. 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.

34 See The Petition for Declaratory Statement of City of Port St. Lucie Building Department, Case No. 2013-091(Fla. DBPR) (Dec. 23,
2013).

35 Kathleen Croteau, Building Official, Sarasota County, Important Notice Bulletin #2017-0001 (Feb. 7, 2017)
https://www.scgov.net/Home/ShowDocument?id=33926 (last visited Feb. 8, 2021); Charlotte County, Chickee Structures,
https://www.charlottecounty fl.gov/departments/community-development/notices/chickee-structures.stml (last visited Feb. 8, 2021);
Sara Matthis, City Addresses Rash of Unpermitted Tiki Huts, Keys Weekly (Jan. 14, 2019) https://keysweekly.com/42/city-addresses-
rash-of-unpermitted-tiki-huts/; Miami-Dade, File Contractor Complaints, https://www.miamidade.gov/building/contractor-
complaints.asp (last visited Feb. 8, 2021); Miami-Dade, Permit Exemptions, https://www.miamidade.gov/permits/exemptions.asp (last
visited Feb. 8, 2021).

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DATE: 2/11/2021
2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

The bill may have a positive impact on the private sector by allowing members of the Seminole Tribe of
Florida and the Miccosukee Tribe of Indians of Florida construct chickees without having to obtain a
license or work for a licensed contractor.

D. FISCAL COMMENTS:
None.

ltl. COMMENTS
A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:

Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIODA H O US E O F REP RES EN TATIV ES

HB 369 2021

1 A bill to be entitled

2 An act relating to a construction contracting

3 regulation exemption; amending s. 489.103, F.S.;

4 exempting from licensure a member of the Miccosukee

5 Tribe of Indians of Florida or the Seminole Tribe of
6 Florida when constructing specified structures;

7 providing an effective date.

8

9} Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (24) is added to section 489.103,
12 Florida Statutes, to read:
13 489.103 Exemptions.—This part does not apply to:
14 (24) A member of the Miccosukee Tribe of Indians of
15] Florida or the Seminole Tribe of Florida when constructing
16} chickees as described in s. 553.73(10) (i).
17 Section 2. This act shall take effect July 1, 2021.

Page 1 of 1

CODING: Words stricken are deletions; words underlined are additions.
hb0369-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #: HB 403 Home-based Businesses
SPONSOR(S): Giallombardo and others
TIED BILLS: IDEN./SIM. BILLS: SB 266
REFERENCE ACTION ANALYST STAFF DIRECTOR or

BUDGET/POLICY CHIEF

1) Regulatory Reform Subcommittee Wright QO) Anstead CKO

2) Commerce Committee

SUMMARY ANALYSIS

The Florida Constitution grants local governments broad home rule authority, and county and municipal
governments may also exercise those powers of self-government that are provided by general or special law.
As such, general law and home rule authority determines whether local governments are able to regulate
businesses, and to what degree. Currently, some local governments have enacted ordinances specific to
regulating home-based businesses, or businesses which operate out of a residence. Some local governments
regulate the types of businesses that may be carried on at a residence, and others regulate the space in which
business may occur.

The bill provides that local governments may not enact or enforce any ordinance, regulation, or policy, or take
any action to license or otherwise regulate a home-based business in a manner that is different from other
businesses in a local government's jurisdiction.

In order to be considered a home-based business, the bill requires that:

e the business operates, in whole or in part, from a residential property;

e the employees of the home-based business reside in the residence, except for up to two employees
that do not reside at the residence. However, employees of the home-based business that do not
primarily work at the residential dwelling are not required to reside in the dwelling;

e parking for the business activities of the home-based business complies with local zoning requirements;

e as viewed from the street, the use of the residential property is consistent with the uses of the
residential areas that surround the property, but incidental and short term business uses and activities
are permitted; and

e the activities of the home-based business are secondary to the property’s use as a residential dwelling.

The bill provides that home-based businesses will only be subject to applicable business taxes in the county
and municipality where the home-based business is located.

The bill allows any adversely affected current or prospective home-based business owner to challenge any
local government action regulating home-based businesses. The prevailing party may recover reasonable
attorney fees and costs.

The bill has an indeterminate fiscal impact on local governments and does not appear to have a fiscal impact
on the state.

The bill has an effective date of July 1, 2021.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0403.RRS.DOCX
DATE: 2/10/2021
FULL ANALYSIS
l. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Present Situation

Local Government Authority

The Florida Constitution grants authority for broad home rule by local governments. Non-charter county
governments may exercise those powers of self-government that are provided by general or special
law.’ Those counties operating under a county charter have all powers of self-government not
inconsistent with general law or special law approved by vote of the electors.?

Likewise, municipalities? have governmental, corporate, and proprietary powers that enable them to
conduct municipal government, perform functions, provide services, and exercise any power for
municipal purposes, except as otherwise provided by law.*

Local Business Tax

The local business tax authorized in ch. 205, F.S., represents the fees charged and the method by
which a local government authority grants the privilege of engaging in or managing any business,
profession, or occupation within its jurisdiction.® Counties and municipalities may levy a business tax.®

Revenue Sources Based on Home Rule Authority

Pursuant to home rule authority, local governments may impose proprietary fees, regulatory fees, and
special assessments to pay the cost of providing a facility or service or regulating an activity. A
regulatory fee should not exceed the regulated activity’s cost and is generally required to be applied
solely to the regulated activity’s cost for which the fee is imposed.’

Businesses and Occupations

General law determines whether local governments are able to regulate occupations and businesses,
and to what degree.® If state law preempts regulation for an occupation, then, generally, local
governments may not regulate that occupation.® For example, Florida law currently preempts local
regulation with regard to the following:

e assessing local fees associated with providing proof of licensure as a contractor, or providing,

recording, or filing evidence of workers’ compensation insurance coverage by a contractor, '°
e assessing local fees and rules regarding low-voltage alarm system projects;"'
e tobacco and nicotine products;'?

‘ Art. VIIL, s. 1(f), Fla. Const.

? Art. Vill, s. 1(g), Fla. Const.

3 A municipality is a local government entity created to perform functions and provide services for the particular benefit of the population
within the municipality, in addition to those provided by the county. The term “municipality” may be used interchangeably with the terms

“town,” “city,” and “village.”

4 Art. VIII, s. 2(b), Fla. Const. See also s. 166.021(1), F.S.

® S. 205.022(5), F.S.

§ Ss. 205.033 and 205.043, F.S.

? The Florida Legislature, Office of Economic and Demographic Research, 2020 Local Government Financial Information Handbook, p.

9, http://edr.state.fl.us/Content/local-government/reports/lgfih20.pdf (Feb. 10, 2021).

8 Art. VIII, s. 1(f), Fla. Const.; Art. Vl, s. 9(a), Fla. Const.; Art. VIII, s. 2(b), Fla. Const.; s. 166.021(1), F.S.

3 Id.; Wolf and Bolinger, supra note 17.

19 §. §53.80(7)(a)5.c., F.S.

11S, 489.503(14), F.S.

12 Ch. 569, F.S., and s. 386.209, F.S.

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DATE: 2/10/2021
firearms, weapons, and ammunition;"°

employment benefits; '

polystyrene products;'®

public lodging establishments and public food service establishments; '* and
disposable plastic bags."”

Conversely, Florida law also specifically grants local jurisdictions the right to regulate businesses,
occupations and professions in certain circumstances.'® For example, Florida law specifically
authorizes regulations relating to:

zoning and land use;'®

the levy of “reasonable business, professional, and occupational regulatory fees, commensurate
with the cost of the regulatory activity, including consumer protection, on such classes of
businesses, professions, and occupations, the regulation of which has not been preempted by
the state or a county pursuant to a county charter’;?°

the levy of local business taxes;

building code inspection fees;?2

child care facilities;2°

taxis and other vehicles for hire;?° and

waste and sewage collection.’

Home-based Business Regulations

Currently, some local governments have ordinances specific to regulating home-based businesses, or
businesses which operate out of a residence. Some local governments regulate the types of
businesses that may be carried on at a residence, and others regulate the space in which business
may occur. Examples include:

In Volusia County, home-based businesses are required to occupy no more than 25 percent of
the habitable floor area of the residence,”°

In Tampa, home-based businesses may not be conducted in any accessory building;7°

In Naples, home-based businesses are not allowed to conduct retail, wholesale, or warehousing
activities at the residence;*° and

In Gainesville, a home-based business may not have more than one automobile used for the
home-based business parked on the premises within view of surrounding properties. Such
automobile may not have more than two signs, not exceeding two square feet in area, each
mounted flat against or painted along the sides.*'

13 §. 790.33(1), F.S.
4 §. 218.077, F.S.

‘8 §, 500.90, F.S.

16 § 509.032, F.S.
17 §. 403.7033, F.S.

18 Supra note 16.

19S. 125.01(1)(h), F.S.
20S. 166.221, F.S.

21 Ch. 205, F.S.

22S. 166.222, F.S.

23 §. 381.00791, F.S.

24S. 480.052, F.S.

25 S$. 402.306, F.S.

28 S_ 125.01(1)(n), F.S.

2? S, 125.01(1)(k), F.S.

28 Volusia County, FL., Ch. 72, art. Il, div. 8, s. 72-283.
29 Tampa, FL., Ch. 27, art. VI, div. 2, s. 27-282.5.

3° Naples, FL., Ch. 56, art. Ill, s. 56-92.

31 Gainesville, FL., Ch. 30, art. V, div. 2, s. 30-5.37.
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DATE: 2/10/2021
Effect of the Bill

The bill provides that local governments may not:
e prohibit, restrict, regulate, or license home-based businesses in a manner that is different from
other businesses in a local government's jurisdiction; or
e enact or enforce any ordinance, regulation, or policy, or take any action to license or otherwise
regulate a home-based business in violation of the provisions in the bill.

In order to be considered a home-based business, the bill requires that:

e the business operates, in whole or in part, from a residential property;

e the employees of the home-based business reside in the residence, except that up to two
employees that do not reside at the residence may work at the residence. However, employees
of the home-based business that do not primarily work at the residence are not required to
reside in the residence;

e parking related to the business activities of the home-based business complies with local zoning
requirements;

e as viewed from the street, the use of the residential property is consistent with the uses of the
residential areas that surround the property. However, incidental and short term business uses
may be conducted at the residence; and

e the activities of the home-based business are secondary to the property’s use as a residential
dwelling.

The bill allows a home-based business that operates from a residential property to operate in an area
zoned for residential use.

Home-based businesses will only be subject to applicable business taxes in the county and
municipality where the home-based business is located.

The bill allows any adversely affected current or prospective home-based business owner to challenge
any local government action regulating home-based businesses. The prevailing party may recover
reasonable attorney fees and costs incurred in challenging or defending the action, including
reasonable appellate attorney fees and costs.
The bill provides an effective date of July 1, 2021.
B. SECTION DIRECTORY:
Section 1 Creates s. 559.955, F.S., relating to requirements for home-based businesses.
Section 2 Provides an effective date of July 1, 2021.
ll. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:

None.

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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
Indeterminate. The bill provides that home-based businesses will only be subject to applicable
business taxes in the county and municipality where the home-based business is located.

2. Expenditures:

Indeterminate. The bill allows a party to challenge any local government action regulating home-
based businesses. The prevailing party is entitled to recover reasonable attorney fees and costs
incurred in challenging or defending the action, including reasonable appellate attorney fees and
costs.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may allow more home-based businesses to operate more freely and efficiently.

D. FISCAL COMMENTS:

None.
ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:

The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill prohibits local governments, except the county and municipality where the home-
based business is located, from collecting business taxes from home-based businesses. However,
an exemption may apply given that laws having an insignificant fiscal impact are exempt from the
requirements of Art. VII, s. 18 of the Florida Constitution.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill neither requires nor provides authority for agency rulemaking.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIODA H OU S E O F REPRESENTATIVE 8S

HB 403 2021

1 A bill to be entitled

2 An act relating to home-based businesses; creating s.
3 559.955, F.S.; specifying conditions under which a

4 business is considered a home-based business;

5 authorizing a home-based business to operate ina

6 residential zone under certain circumstances;

7 prohibiting a local government from certain actions

8 relating to the licensure and regulation of home-based
9 businesses; authorizing specified business owners to
10 challenge certain local government actions;
11 authorizing the prevailing party to recover specified
12 attorney fees and costs; providing an effective date.
13

14) Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Section 559.955, Florida Statutes, is created
17 to read:

18 559.955 Home-based businesses; local government

19 restrictions.-

20 (1) For purposes of this section, a business is considered

21} a home-based business if it operates, in whole or in part, from

22| a residential property and meets the following criteria:

23 (a) The employees of the home-based business who work at

24} the residential dwelling also reside in the residential

25) dwelling, except that up to two employees who do not reside at

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HB 403 2021

26| the residential dwelling may work at the residential dwelling.

27| However, employees of the home-based business who do not

28| primarily work at the residential dwelling are not required to

29| reside in the dwelling.

30 (bo) Parking related to the business activities of the

31) home-based business complies with local zoning requirements.

32 (c) As viewed from the street, the use of the residential

33| property is consistent with the uses of the residential areas

34} that surround the property. However, incidental and short-term

35] business uses and activities may be conducted at the residential

36 property.
37 (d) The activities of the home-based business are

38 secondary to the property's use as a residential dwelling.

39 (2) A home-based business that operates from a residential

40] property as provided in subsection (1):

4l (a) May operate in an area zoned for residential use.

42 (bo) May not be prohibited, restricted, regulated, or

43 licensed in a manner that is different from other businesses in

44) a local government's jurisdiction.

45 (c) Is only subject to applicable business taxes under

46| chapter 205 in the county and municipality in which the home-

47] based business is located.

48 (3) Local governments may not enact or enforce any

49) ordinance, regulation, or policy, or take any action to license

50|] or otherwise regulate a home-based business in violation of this

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51] section.
52 (4) Any adversely affected current or prospective home-
53] based business owner may challenge any local government action
54] in violation of this section. The prevailing party ina
55| challenge may recover reasonable attorney fees and costs
56] incurred in challenging or defending the action, including
57 reasonable appellate attorney fees and costs.
58 Section 2. This act shall take effect July 1, 2021.
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