Meeting Packet — Regulatory Reform & Economic Development Subcommittee (January 4, 2023)

Summary

Meeting packet for the Regulatory Reform & Economic Development Subcommittee of the Florida House of Representatives Commerce Committee, for a meeting on Wednesday, January 4, 2023. The agenda lists a call to order, roll call, welcome and opening remarks, introduction to members, subcommittee overview, closing remarks and adjournment. The packet states that the subcommittee oversees the state’s regulation and licensing of businesses and professionals, consumer regulatory programs, and the regulation of alcoholic beverages, tobacco, and gaming. It also describes the Department of Business and Professional Regulation and economic development, and lists major legislation passed in the 2021 - 2022 Sessions, including CS/HB 5D Condominium and Cooperative Associations and CS/HB 329 - Beverage Law.

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         Regulatory Reform & Economic
          Development Subcommittee
              Wednesday, January 4, 2023
                  1:00 PM - 2:00 PM
               Webster Hall (212 Knott)



                    Meeting Packet




Paul Renner                                Tyler Sirois
Speaker                                          Chair
                    The Florida House of Representatives
                                           Commerce Committee
               Regulatory Reform & Economic Development Subcommittee
Paul Renner                                                                                         Tyler Sirois
Speaker                                                                                                   Chair


                                         Meeting Agenda
                                        Wednesday, January 4, 2023
                                           1:00 PM – 2:00 PM
                                         Webster Hall (212 Knott)


  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Introduction to Members

 V.    Subcommittee Overview

VI.    Closing Remarks

VII.   Adjournment




                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
 R EGULATORY R EFORM & E CONOMIC D EVELOPMENT
                 S UBCOMMITTEE
                                   C OMMERCE C OMMITTEE

RRS S TAFF : 303 H OUSE O FFICE B UILDING - (850) 717-4871
Laura Anstead – Policy Chief
Laura.anstead@myfloridahouse.gov

Jason Thompson – Analyst
Jason.thompson@myfloridahouse.gov

Kelly Wright – Staff Attorney
Kelly.Wright@myfloridahouse.gov

Natalie Frandsen – Staff Attorney
Natalie.frandsen@myfloridahouse.gov

                              S UBCOMMITTEE J URISDICTION
The Regulatory Reform & Economic Development Subcommittee (RRS) oversees the state’s regulation
and licensing of businesses and professionals, consumer regulatory programs, and the regulation of
alcoholic beverages, tobacco, and gaming. It’s oversight also includes the implementation of economic
development and tourism programs.

                          F LORIDA ’ S A PPROACH TO R EGULATION
     Protect the public from significant and measurable harm.
     Avoid unnecessary restrictions to business entry.
     Must be cost effective.

Related to the regulation of professions and occupations, the Legislature intends that:
    • No profession or occupation be subject to regulation by the state unless the regulation is necessary to
        protect the public health, safety, or welfare from significant and discernible harm or damage and that
        the police power of the state be exercised only to the extent necessary for that purpose; and
    • No profession or occupation be regulated by the state in a manner that unnecessarily restricts entry into
        the practice of the profession or occupation or adversely affects the availability of the professional or
        occupational services to the public.

In determining whether to regulate a profession or occupation, s. 11.62, F.S., requires consideration of the
following:
    • Whether the unregulated practice of the profession or occupation will substantially harm or endanger
        the public health, safety, or welfare, and whether the potential for harm is recognizable and not remote;



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   •   Whether the practice of the profession or occupation requires specialized skill or training, and whether
       that skill or training is readily measurable or quantifiable so that examination or training requirements
       would reasonably assure initial and continuing professional or occupational ability;
   •   Whether the regulation will have an unreasonable effect on job creation or job retention in the state or will
       place unreasonable restrictions on the ability of individuals who seek to practice or who are practicing a
       given profession or occupation to find employment;
   •   Whether the public is or can be effectively protected by other means; and
   •   Whether the overall cost-effectiveness and economic impact of the proposed regulation, including the
       indirect costs to consumers, will be favorable.


                             PROFESSIONAL REGULATION
The Florida Department of Agriculture and Consumer Services (DACS) supports and promotes
Florida agriculture, protects the environment, safeguards consumers, and ensures the safety and
wholesomeness of food. It includes regulation of Charitable Organizations, Game Promotions, Health
Studios, Motor Vehicle Repair Shops, Intrastate Movers, Pawnshops, Sellers of Travel, Pawn Shops,
Pest Control Operators, the Do-Not-Call List, Surveyors and Mappers, and Telemarketing. In addition,
the Division of Licensing oversees the licensure and regulation of concealed firearms and the private
security, investigative, and recovery services industries.

The Division of Consumer Services is comprised of seven bureaus: Bureau of Compliance, Bureau of
Fair Rides Inspection, Bureau of Liquefied Petroleum (LP) Gas Inspection, Bureau of Mediation and
Enforcement, Bureau of Standards, Communications and Outreach Section, and Board of Professional
Surveyors and Mappers.

   •   Bureau of Compliance has regulatory responsibility for the following business entities: motor
       vehicle repair shops, charitable organizations, pawnbrokers, health studios, sellers of travel,
       intrastate movers, sweepstakes/game promotions, and telemarketing. This bureau also
       administers the Florida Do Not Call Program.
   •   Bureau of Fair Rides Inspection is assigned to carry out the inspection and investigation
       mandates of s. 616.242, F.S., and enforcement of adopted rules, regulations, and codes. The
       bureau has statewide responsibility to inspect all amusement rides in the state, except for certain
       large parks which have more than 1,000 employees and have full time inspectors on staff. All
       amusement rides are required to be permitted annually by the department, are required to
       undergo nondestructive testing for structural integrity, and must have an annual inspection by a
       professional engineer or qualified inspector.
   •   Bureau of Liquefied Petroleum (LP) Gas Inspection assigns inspectors to various regions of
       the state, and coordinates all inspectors’ activities through the Tallahassee headquarters office.
       Tallahassee staff is divided into three work units - administration, training, examinations,
       licensing, and inspections/investigations.
   •   Bureau of Mediation and Enforcement is responsible for mediating complaints filed by
       consumers regarding goods and services provided by businesses. Complaints that fall under the
       jurisdiction of another federal, state, or local governmental agency are referred to that office for
       processing. This bureau also processes administrative enforcement actions for violations by an
       entity that falls within one of the division's regulatory programs.
   •   Bureau of Standards/Weights and Measures is responsible for conducting inspections of the
       petroleum distribution system and analyzes samples of petroleum products to ensure consumers

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       are being offered quality products at a fair measure. It is also responsible for conducting
       inspections at retail facilities and inspects commercial measuring devices each year. Inspectors
       also routinely test the accuracy of retail price scanners, labels and net contents of pack food
       items, packaged goods such as dry goods, household items, building and construction materials,
       gardening products and hundreds of other products purchased daily by consumers and business.

The Department of Business and Professional Regulation (DBPR) oversees the licensing and
regulation of a variety of non-healthcare related businesses and professionals in Florida. Its stated
mission is to license efficiently and regulate fairly.

DBPR is responsible for licensing and regulating five major industries: Alcoholic Beverages and
Tobacco; Drugs, Devices, and Cosmetics; Florida Condominiums, Timeshares, and Mobile Homes;
Hotels and Restaurants, including elevator safety. DBPR is also responsible for licensing and regulating
individual professional licensees, primarily through regulatory boards administratively housed within
the department. Such professional licensees include real estate appraisers, brokers and sales associates,
certified public accountants, boxers, community association managers, construction and electrical
contractors, child and farm labor contractors, cosmetologists, geologists, and veterinarians. It also
administratively houses the Florida State Boxing Commission and the Florida Building Commission.

The Division of Alcoholic Beverages and Tobacco licenses individuals and businesses that produce,
transport, distribute, or otherwise deal in alcoholic beverages or tobacco.

The Division of Drugs, Devices and Cosmetics is responsible for the licensure and regulation of
manufacturers of drugs, drug ingredients, and cosmetics, and enforces the Florida Drug and Cosmetic
Act with an aim to safeguard the health, safety, and welfare of the public from injury due to the use of
adulterated, contaminated, misbranded drugs, drug ingredients and cosmetics.

The Division of Florida Condominiums, Timeshares, and Mobile Homes provides consumer support
for Florida residents of such communities through education, complaint resolution, mediation and
arbitration and developer disclosure. This division also licenses and regulates yacht and ship brokers.

The Division of Hotels and Restaurants licenses, inspects and regulates public lodging and food
service establishments in Florida. The mission of the division is to protect the health and safety of the
public by providing the industry with quality inspections and fair regulation. The division also licenses
and regulates elevators, escalators and similar devices.

The Division of Professions is responsible for the licensing of nearly half a million professionals. The
division administers 13 professional boards, 5 department-regulated programs, and the Regulatory
Council of Community Association Managers.

   Boards
    Board of Architecture and Interior Design
    Board of Auctioneers
    Barbers’ Board
    Building Code Administrators and Inspectors Board
    Construction Industry Licensing Board
    Board of Cosmetology

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      Electrical Contractors’ Board
      Board of Employee Leasing Companies
      Board of Professional Engineers
      Board of Professional Geologists
      Board of Landscape Architects
      Board of Pilot Commissioners
      Board of Veterinary Medicine

   Programs
    Asbestos Licensing Unit
    Athlete Agents
    Child Labor
    Farm Labor
    Home Inspectors
    Mold-related Services
    Talent Agencies
The Division of Regulation is the enforcement authority for the professional boards and programs. It
monitors the professionals and related businesses; investigates complaints of wrongdoing; enforces
compliance through notices of noncompliance and citations; and performs statutorily mandated
inspections. The division is divided into six program areas and operates 8 regional offices and 2 satellite
offices. The six program areas are: compliance; complaints/investigations; alternative dispute resolution;
unlicensed activity; farm labor; and child labor.
The Division of Certified Public Accounting is responsible for the regulation of certified public
accountants (CPAs) and accounting firms. The division processes applications to sit for the CPA
licensure examination, original Florida licensure applications, licensure by endorsement applications,
reactivation of a delinquent or inactive CPA license, temporary permit applications, accountancy firm
licensure, and continuing education reporting forms. The division also provides administrative support
to the Board of Accountancy. The division is located in Gainesville, FL, as required by statute.

The Division of Real Estate is responsible for the examination, licensing and regulation of over a
quarter of a million real estate professionals, corporations, real estate schools and instructors. Located in
Orlando, FL, as required by statute, the division administers the Florida Real Estate Commission and the
Florida Real Estate Appraisal Board.

The Florida State Boxing Commission oversees the licensing and regulation of professional boxing,
kickboxing and mixed martial arts. The Commission is also responsible for the approval of amateur
boxing, kickboxing and mixed martial arts sanctioning organizations. It is housed in DBPR for
administrative and fiscal accountability purposes.

The Florida Building Commission is responsible for adopting, updating and administering the Florida
Building Code, the unified statewide code governing all construction. It adopts administrative rules and
issues binding code interpretations every 3 years. The Commission is housed in DBPR for
administrative purposes.




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                              ECONOMIC DEVELOPMENT
Florida’s economic development system is multi-faceted and includes public agencies, non-profit
corporations, and private entities at the state, regional, and local level. The Legislature created some
of these organizations, while others are units of local government or privately formed associations or
alliances. Many of the organizations have similar missions (e.g., encouraging economic development
and enhancing the state’s business climate) and serve the same constituencies (e.g., in- and out-of state
businesses and the state’s economic and workforce development communities). The most prominent of
these organizations are Enterprise Florida, Inc. (EFI) and the Department of Economic Opportunity
(DEO).

To achieve their economic development missions, EFI and DEO perform numerous activities and
collaborate via contracts. DEO serves as the contract manager for agreements with EFI, the Institute
for the Commercialization of Public Research, the Florida Defense Support Task Force, the Florida
Sports Foundation, Space Florida, and the Florida Tourism Industry Marketing Corporation (VISIT
Florida).

Prior to the creation of EFI, the Department of Commerce and Department of Labor and Employment
Security were responsible for the state’s economic development activities. In 1996, the Legislature
created EFI as a public-private partnership to serve as the state’s principal economic development
marketing and promotion organization.

To support the ongoing evolution of the state’s economic development system, the 2011 Legislature
created the Department of Economic Opportunity, transferring functions from the Agency for
Workforce Innovation (AWI), Department of Community Affairs (DCA), and Governor’s Office of
Tourism, Trade, and Economic Development (OTTED) to the new agency.

The Department of Economic Opportunity (DEO) assists the Governor in advancing Florida’s
economy by championing the state’s economic development vision and by administering state and
federal programs and initiatives to help visitors, citizens, businesses, and communities. DEO combines
economic development initiatives, workforce support and training, and community development efforts
to fuel job creation around the state. The state and federal programs administered by DEO help
support local businesses, engage talented job seekers and enhance our state’s diverse
communities.

Local Tourism and Economic Development
To the extent authorized by state law, local governments have the authority to promote economic and
tourism development within their jurisdictions. In order to promote tourism development in the state, the
Legislature has authorized counties to levy a number of tourist development taxes, the proceeds of
which may generally be used for economic development within the county.




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            THE FLORIDA GAMING CONTROL COMMISSION
The Florida Gaming Control Commission is a five-member regulatory body that is responsible for
exercising all regulatory and executive powers of the state with respect to gambling, including pari-
mutuel wagering, cardrooms, slot machine facilities, oversight of gaming compacts, and other forms of
gambling authorized by the State Constitution or law, excluding the state lottery.




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           RRS Major Legislation Passed in the 2021 - 2022 Sessions
CS/HB 5D Condominium and Cooperative Associations
Related to condominiums and cooperatives, the bill:
       • Creates a statewide building milestone inspection requirement for condominiums and
       cooperative buildings three stories or higher 30 years after initial occupancy, or 25 years if
       within three miles of the coast.
       • Requires additional inspections every 10 years after a building’s initial milestone inspection.
       • Provides local building officials with ability to assess penalties for failing to comply with the
       inspection requirements.
       • Requires condominiums and cooperatives to conduct structural integrity reserve studies every
       10 years for buildings that are three stories or higher.
       • Prohibits waiver of funding for certain structural reserves.
       • Requires developers to complete structural integrity reserve studies for every building that is
       three stories or higher, and repeals the ability of developers to waive the collection of all types of
       reserve funds.
       • Provides that structural integrity reserve studies, and inspection reports are a part of an
       association’s official records and must be provided to a potential purchaser of a unit.

CS/HB 329 - Beverage Law
The bill authorizes certain restaurants licensed under the Beverage Law to sell or deliver alcoholic
beverages prepared by the licensee and packaged in a sealed container for off‐premises consumption if
the sale or delivery is accompanied by the sale of food within the same order. Additionally, the bill
specifies that in order for certain quota licensees to prepare and sell drinks for off premises
consumption, the licensee must be licensed as a public food service establishment, the sale of food and
nonalcoholic beverages must account for at least 40 percent of the total charge, and such sales may not
occur after the licensee stops preparing food or after midnight, whichever is earlier. Such sales must be
made in accordance with current laws relating to open containers and deliveries, and must be packaged
in a specified manner to prevent immediate consumption of the beverage.

CS/HB 403 - Home-based Businesses
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:
        • the business operates, in whole or in part, from a residential property,
        • the employees of the business must reside in the residence, except for up to two employees or
        independent contractors who work at the residence and any number of remote employees,
        • parking related to business complies with local zoning requirements and may not be greater
        than would be expected at a residence where no business is conducted,
        • the use and external modifications of the residential property are consistent with the uses,
        residential character, and architectural aesthetics of the neighborhood,
        • the business complies with local regulations for signage, noise, vibration, heat, smoke, dust,
        glare, fumes, noxious odors, hazardous or flammable materials, vehicles, and trailers, provided
        that such regulations are not more stringent than those for a residence where no business is
        conducted,
        • the business complies with local regulations for the parking and storage of heavy equipment,

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       • the home-based business may not conduct retail transactions at a structure other than the
       residential dwelling, except that incidental and short term business uses and activities may be
       conducted at the residential property, and
       • the activities of the home-based business are secondary to the use as a residential dwelling.

HB 735 - Preemption of Local Occupational Licensing
The bill expressly preempts the licensing of occupations to the state and supersedes any local
government licensing of occupations. However, any licensing of occupations adopted prior to July 1,
2021, will continue to be effective until July 1, 2023, at which time they will expire. Any local licensing
of occupations authorized by general law is exempt from the preemption. The bill prohibits local
governments from requiring a license for a person whose job scope does not substantially correspond to
that of a contractor licensed by the Construction Industry Licensing Board, and precludes local
governments from requiring a license for: painting, flooring, cabinetry, interior remodeling, handyman
services, driveway or tennis court installation, decorative stone, tile, marble, granite, or terrazzo
installation, plastering, stuccoing, caulking, canvas awning installation, and ornamental iron installation.
The bill also expressly authorizes counties and municipalities to continue to issue journeyman licenses
in the plumbing, pipe fitting, mechanical, HVAC, electrical, and alarm system trades.

CS/CS/CS/HB 577 - Lodging Standards
The bill prohibits an operator of a public lodging establishment from offering an hourly rate for an
accommodation, with an exception for late fees.

The bill is entitled "Miya's Law" and requires a landlord of an apartment to require that each employee
of the establishment undergo a background screening as a condition of employment, which must include
a search of nationwide criminal records and sexual offender registries. A landlord may disqualify a
person from employment if the person has committed:
        • Certain criminal offenses involving disregard for the safety of others
        • Certain violent criminal offenses, such as sexual battery, robbery, carjacking, and stalking

Related to regulation of apartments by DBPR, the bill requires each apartment to:
       • require that each employee of the licensee undergo the required background screening,
       • maintain a log accounting for the issuance and return of all keys for each dwelling unit,
       • establish policies and procedures for the issuance and return of dwelling unit keys, and
       • upon request during DBPR's annual inspection, provide proof of compliance with such
       requirements.

HB 267 - Swimming Pool Specialty Contracting Services
The bill creates a new exemption to licensure requirements by allowing unlicensed persons to perform
the work of specialty contractors for the construction, remodeling, repair, or improvement of
commercial or residential swimming pools, interactive water features, hot tubs, and spas without
obtaining a specialty contractor license or local license. The bill only allows the unlicensed person to
perform the work if the unlicensed person is under the supervision of a licensed commercial or
residential pool/spa contractor or swimming pool/spa servicing contractor, the work is within the scope
of the supervising contractor's license, the supervising contractor is responsible for the work, and the
work does not require licensure as a roofing, sheet metal, air-conditioning, mechanical, plumbing, solar,
underground utility and excavation contractor, or electrical contractor.


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HB 33 - Electronic Dissemination of Commercial Recordings and Audiovisual Works
The bill amends the definition of "electronic dissemination" to include commercial recordings or
audiovisual works offered for display or performance, which will require a person who owns or operates
a website dealing in substantial part in the display or performance of commercial recordings and
audiovisual works to post their identifying information on the website, unless covered by an exemption.

CS/HB 375 - Structural Engineering Recognition Program for Professional Engineers
The bill:
   • establishes the "Structural Engineering Recognition Program for Professional Engineers"
        (Program),
   • requires the Board of Professional Engineers (Board) to recognize any licensed professional
        engineer who has successfully passed the National Council of Examiners for Engineering and
        Surveying Structural Engineering 16-hour PE Structural examination or any other examination
       approved by the Board, and specializes in structural engineering based on alternative criteria
       determined by the Board,
   • provides that upon application to the Board, a professional engineer who has the minimum
       program requirements must be recognized as a professional engineer who has gone above and
       beyond in the field of structural engineering,
   • prohibits the Board from collecting a fee for the application or for recognition by the Program,
   • authorizes a professional engineer who is recognized by the Program to identify the recognition
       in her or his professional practice, including in marketing and advertising materials,
   • provides that recognition by the Program is not required for a professional engineer to practice
   structural engineering, and
   • requires the Board to adopt rules to implement these requirements.

CS/CS/HB 423 - Building Regulation
The bill:
• allows a person to sit for the building inspector or plans examiner licensure test by completing a 4-year
internship with a private provider or a private provider's firm in certain circumstances,
• prohibits the Building Code Administrators and Inspectors Board (BCAIB) from issuing a provisional
license with a requirement that such licensee be employed by a local government,
• allows a person with a provisional license from the BCAIB to be a duly authorized representative for a
private provider in certain circumstances,
• requires local governments to provide equal access to all building permitting and inspection
documents to a private provider, owner, and contractor in certain circumstances,
• defines "reasonable administrative fee," for purposes of determining the amount of a fee for a building
permit when a contractor or owner uses a private provider,
• increases the amount of time that local building officials have to issue a certificate of occupancy or a
notice of deficiencies for building permits that are not related to single- or two-family dwellings,
• provides that if a notice of deficiency is not issued within the required time-period a certificate of
occupancy is "automatically" granted, instead of "deemed" granted, and local building officials must
provide the applicant with the certificate within 10 days,
• prohibits local governments from preventing private property owners from demolishing single family
buildings that are in certain flood zones, while exempting certain historic buildings,
• limits the review process for applications for such demolition permits,
• prohibits local governments from requiring additional building requirements for new homes built on
the construction site of certain demolished single-family buildings,
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• limits the amount of times that local governments can request additional information for certain
building permit applications and requires local governments to review such information within a certain
time-period, and
• provides a cause of action for certain individuals and associations to enforce the requirement that local
governments must use excess funds generated by Building Code enforcement for lawful purposes.

CS/CS/HB 559 - Military Occupational Licensure
The bill requires DBPR to expedite all license applications submitted by a spouse of an active duty
member of the U.S. Armed Forces, and issue licenses within 7 days after receipt of such applications. It
also requires the Department of Health to issue a full professional license, rather than a temporary
license, to qualified applicants that are spouses of members of the military, and to do so within 7 days
after receipt of all required documentation, expedite all applications submitted by an active duty
member's spouse, and waive the $65 application fee.




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