Meeting Packet — Florida House Commerce Committee Regulatory Reform & Economic Development Subcommittee (2023-01-18)
Summary
Meeting packet for the Regulatory Reform & Economic Development Subcommittee of the Florida House of Representatives Commerce Committee, Wednesday, January 18, 2023. The agenda lists an overview of the Department of Business and Professional Regulation and a presentation by the department on the history of regulation of the alcoholic beverage industry. The department's slides state that application processing times were reduced by 68% in 2022. The Division of Alcoholic Beverages and Tobacco slides state that in 2022 more than 26,000 entries were received for quota beverage licenses, resulting in the collection of more than $2.6 million on behalf of the state.
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“Meeting Packet — Florida House Commerce Committee Regulatory Reform & Economic Development Subcommittee (2023-01-18).”
Original at www.flhouse.gov, dated 2023-01-18. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-18-2023-01-18-3236-regulatory-reform-economic-development-subcommittee-meeting-packets-fn-rrs-1-18-23/
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Regulatory Reform & Economic
Development Subcommittee
Wednesday, January 18, 2023
9:00 AM - 11:00 AM
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 18, 2023
9:00 AM – 11:00 AM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Overview of the Department of Business and Professional Regulation
V. Presentation by the Department of Business and Professional Regulation on the History
of Regulation of the Alcoholic Beverage Industry
VI. Closing Remarks
VII. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
Florida
Department of Business
& Professional Regulation
Melanie S. Griffin
Secretary, Department of Business and Professional Regulation
House Regulatory Reform & Economic Development Subcommittee
January 18, 2023
DBPR
OVERVIEW
• DBPR is responsible for ensuring that the more than 1.59 million licensees across
more than 30 fields of industry provide safe, quality services to Florida’s millions of
residents and visitors. The Department also supports nearly 220,000 licensees
from the Florida Gaming Control Commission for a total of 1.8 million licensees in
DBPR’s licensing system.
• DBPR has nearly 1,600 employees in 13 offices throughout the state.
• Our motto is “License Efficiently. Regulate Fairly.” We implement that mission by
making it our goal to help businesses open and remain open, and to create a user-
friendly experience for all our licensees.
• Responsibilities of the agency include safeguarding the health, safety and welfare
of the citizens of Florida, combatting unlicensed activity, ensuring professionalism
through education, and celebration of licensees via proclamations.
2
Agency Organization of Business & Professional
Regulation Divisions
Professional Regulation: Business Regulation:
• Florida Athletic Commission • Division of Alcoholic
• Division of Certified Public Beverages and Tobacco
Accounting • Division of Drugs, Devices,
• Division of Real Estate and Cosmetics
• Division of Regulation • Division of Florida
• Division of Professions Condominiums, Timeshares,
and Mobile Homes
• Division of Hotels and
Restaurants
3
PROFESSIONAL
REGULATION DIVISIONS
Florida’s Beverage Law is Based on a Three-Tier Licensing System
Professional Regulation is responsible for licensing over 1.2 million of the
Department's professionals and businesses.
Its regulatory activities are divided amongst 1 commission and 4 divisions:
• Florida Athletic Commission
• Division of Certified Public Accounting
• Division of Real Estate
• Division of Regulation
• Division of Professions
• Florida Building Commission
4
BUSINESS
REGULATION DIVISIONS
• Division of Alcoholic Beverages and Tobacco
• Division of Drugs, Devices, and Cosmetics
• Division of Condominiums, Timeshares, and Mobile Homes
• Division of Hotels and Restaurants
5
2022 DBPR
HIGHLIGHTS
Operational Efficiencies
Application processing times were
reduced by 68% in 2022 while at the
same time adding 300K licensees.
Implementing evening and weekend
shifts, reducing the Division of Service
Operations employment vacancy rate, 2022
reimagining internal business Successes
processes, and beginning to
additionally modernize the DBPR
customer experience have made it
easier and faster for Floridians to get
to work.
6
2022 DBPR Significant Investment in
Hospitality Industry
HIGHLIGHTS Combatted Unlicensed
Regulatory Activity The Division of Hotels and
Restaurants completed and
Record Number of Combat
Department’s enforcement released a long-awaited
Sporting Events vacation rental database
efforts, in conjunction with law
For the second year in a row, enforcement partners, has containing a digital searchable
the Florida Athletic successfully detected listing of more than 140K
Commission broke a record unlicensed contractors, division-licensed vacation
for the amount of live stopped fraudulent behavior in rentals.
professional boxing, our state, and prevented bad
kickboxing and mixed martial actors from taking advantage of The division also saw the total
arts events sanctioned in a Floridians, including our most number of division-issued
calendar year. The 123-event vulnerable populations. The lodging licenses surpass the
total for 2022 breaks the Division of Regulation is total number of division-issued
previous record of 117, set in currently working more than food service licenses for the
2021 and a 108% increase 200 cases related to Hurricanes first time. This growth is an
from the 59 events held in Ian and Nicole. indicator of Florida’s robust
2020. economy and strong tourism
industry.
7
Florida
Department of Business
& Professiona I Regulation
Contact Information
Jonas Marquez
Legislative Affairs Director
Jonas.Marquez@MyFloridaLicense.com
850-491-5705
8
Florida
Department of Business
& Professional Regulation
Division of Alcoholic Beverages & Tobacco
Sterling Whisenhunt, Director
Division of Alcoholic Beverages and Tobacco
House Regulatory Reform & Economic Development Subcommittee
January 18, 2023
DIVISION
OVERVIEW
Enforcement
The Division is compromised of three bureaus:
• 2nd oldest law
enforcement agency in
Licensing Auditing
Florida celebrating 90
• Processing license • Collecting and auditing years of service this
applications and of the excise tax due to year (2023).
renewals. the state.
• Conducts routine
• Verifying an applicant’s • Conducting compliance compliance
qualifications for audits to ensure inspections.
licensure under the compliance with
• Conducts minimum age
Beverage Law and special licensing
of purchase surveys.
chapters 210 and 569, requirements.
Florida Statutes. • Conducts criminal and
• 82 FTE Positions
administrative
• 49 FTE Positions
investigations.
• 187 FTE Positions
2
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Like the Majority of States, Florida Regulates the Sale of Alcoholic Beverages Using a
Non-Control Model
• Following the repeal of Prohibition in 1933, the 21st Amendment granted each
state the right to establish laws governing the manufacture, distribution, and sale
of alcoholic beverages within its borders.
• In governing, states operate under one of two models:
• Control: A minority of states control the sale of distilled spirits (and in some
cases, wine, and beer) through government agencies at the distribution level.
• Non-Control: In most states, including Florida, private businesses apply for
licenses to manufacture, distribute, and sell alcoholic beverages to consumers.
Licensees must comply with state laws regulating these transactions to
maintain their licensure.
3
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
“Alcoholic Beverage” as Defined by Chapter 561, Florida Statutes
Alcoholic Beverage: Section 561.01(4)(a), Florida Statutes, provides that an “alcoholic
beverage” is a distilled spirit “and all beverages containing one-half of 1 percent or
more alcohol by volume.”
Percentage of Alcohol by Volume: Section 561.01(4)(b), Florida Statutes, explains that
the percentage of alcohol by volume is “determined by measuring the volume of the
standard ethyl alcohol in the beverage and comparing it with the volume of the
remainder of the ingredients as though said remainder ingredients were distilled
water.”
Intoxicating Beverage/Liquor: Section 561.01(5), Florida Statutes, restricts alcoholic
beverages and liquors to those “containing more than 4.007 percent of alcohol by
volume.”
Florida Beverage Law: Florida’s Beverage Law is contained in Chapters 561-565 and
567-568, Florida Statutes.
4
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Florida’s Beverage Law is Based on a Three-Tier Licensing System
• Florida’s regulations generally restrict licensees to participation in one tier of its
three-tier licensing system, thereby intending to prevent over-consumption of
alcoholic beverages by consumers (also known as “tied-house” laws, discussed
later in this presentation).
• The three tiers of Florida’s licensing system include:
• Manufacturers
• Distributors
• Retailers
5
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Manufacturers: Tier One of Florida’s Three-Tier Licensing System
• Manufacturers, sometimes also referred to as “producers,” include:
(1) Breweries;
(2) Wineries; and
(3) Distilleries.
• Generally, manufacturers must both:
(1) Produce, rectify, or blend alcohol products; and
(2) Sell those products to either:
(a) Other manufacturers; or
(b) Licensed distributors.
6
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Distributors: Tier Two of Florida’s Three-Tier Licensing System
• Distributors, sometimes also referred to as “wholesalers,” generally:
(1) Purchase alcohol products from manufacturers; and
(2) Sell those products to:
(a) Licensed retailers in Florida; or
(b) Other distributors, where allowed.
7
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Retailers: Tier Three of Florida’s Three-Tier Licensing System
• Retailers, more frequently referred to as “vendors,” generally sell alcoholic
beverages at “retail only.”
• Retailers are further classified in the industry as:
(1) On-Premise Retailers: Retailers that sell beer, wine, or spirits, or some combination
thereof, for patrons to consume on their licensed premises. Examples include:
(a) Bars;
(b) Restaurants; and
(c) Nightclubs.
(2) Off-Premise Retailers: Retailers that sell beer, wine, or spirits, or some combination
thereof, in sealed containers for patrons to consume off-premise only. Examples
include:
(a) Liquor Stores; and
(b) Grocery Stores. 8
ALCOHOLIC BEVERAGE REGULATION
IN FLORIDA
Four Examples of Notable Exceptions to Florida’s Three-Tier System (Tied-House Laws)
(1) Wineries: Per section 561.221(1), Florida Statutes, a Florida winery can be licensed as a
manufacturer/producer and distributor/wholesaler and hold up to three vendor/retailer licenses if the
vendor/retailer’s licensed premises is situated on property contiguous to the manufacturing premises.
(2) Breweries with Taprooms: Per section 561.221(2), Florida Statutes, a Florida brewery can be licensed
as a manufacturer/producer, distributor/wholesaler, and vendor/retailer so long as the brewery’s
property is located on a single complex that includes the brewery and is not divided by more than one
public street or highway.
(3) Brewpubs: Per section 561.221(3), Florida Statutes, a Florida brewpub may annually brew up to
10,000 kegs (each keg being 15.5 gallons) of beer for consumption exclusively at the brewpub.
(4) Craft Distilleries: Per section 565.03(2)(b), Florida Statutes, a person or entity may share common
ownership in up to 10 craft distilleries provided that a maximum of:
(a) Four of the distilleries each annually distill, rectify, or blend 250,000 gallons or less of
distilled spirits; and
(b) Six of the distilleries each annually distill, rectify, or blend 50,000 gallons or less of distilled
spirits. 9
ALCOHOLIC BEVERAGE REGULATION IN FLORIDA
LOCAL GOVERNMENT AUTHORITY
Local Government Authority Over the Sale of “Intoxicating” Beverages
• Per chapter 567, Florida Statutes, “intoxicating” beverages are not automatically sold in
Florida counties, and rather, the Florida Constitution empowers each county’s electors
to determine whether such products can be sold within their borders.
• This statute defines an “intoxicating” beer, wine, or liquor as one that contains “more
than 6.243 percent of alcohol by volume,” a higher threshold than the “4.007 percent
of alcohol by volume” in section 561.01(5), Florida Statutes, discussed above.
• A county shall hold a special election to determine whether the sale of intoxicating
liquors, wines, or beer shall be permitted within its borders only upon the petition of 25
percent of the county’s electors and not sooner than two years after the earlier election
on the same question.
• The state laws discussed in this presentation govern the sale of intoxicating liquors,
wines and beer in the counties that permit such sales.
• After Washington County voted to permit the sale of intoxicating beverages in January
2022, only two Florida counties remain “dry” – Liberty and Lafayette. 10
ALCOHOLIC BEVERAGE REGULATION IN FLORIDA
LOCAL GOVERNMENT AUTHORITY
Local Government Authority to Enact Ordinances
• Section 562.45(2)(a-c), Florida Statutes, generally provides that Florida counties and
incorporated municipalities may enact ordinances regulating a state licensee’s:
• hours of business,
• location of place of business, and
• sanitary regulations.
11
ALCOHOLIC BEVERAGE REGULATION IN FLORIDA
LOCAL GOVERNMENT AUTHORITY
Taxation & Local Government
Section 561.342(3), Florida Statutes, provides that no county or municipality shall tax the
manufacture, distribution, exportation, transportation, importation, or sale of alcoholic
beverages defined by such law by way of license, excise, or otherwise.
In exchange, a portion of alcoholic beverage state license tax revenue is returned to the
county or municipality where collected at a rate of:
• County: 24% to county tax collector
• Municipality: 38% to appropriate municipal officer
12
ALCOHOLIC BEVERAGE REGULATION IN FLORIDA
LOCAL GOVERNMENT AUTHORITY
Florida Excise Taxes on Alcoholic Beverages
BEER Pints or less $0.06 each
§ 563.05, F.S. Quarts or less $0.12 each
Gallon $0.48 each
TOTAL: $100 million/year
WINE Less than 17.259% ABV $2.25 per gallon
§ 564.06, F.S. 17.259% ABV or more $3.00 per gallon
Natural Sparkling $3.50 per gallon
Cider $0.89 per gallon
TOTAL: $87 million/year
LIQUOR Less than 17.259% ABV $2.25 per gallon
§ 565.12, F.S. 17.259% to 55.78% ABV $6.50 per gallon
More than 55.78% ABV $9.53 per gallon
TOTAL: $119 million/year
• A monthly report and remittance of excise tax is due to the Division on or before the 10th day of
each month for all activities during the previous calendar month.
• Excise tax is remitted through the manufacturer and distributor tiers.
13
LICENSING INFORMATION
The Division categorizes licenses by Tier
Annual Fee Number of
tier and business model. Range Licensees
Beverage
$500-$4000 610
Manufacturer
Licensing fees are generally based
Beverage
on the scope of the activities Distributor
$ l 000-$4000 l, l 05
permitted and the population of the Beverage
county where the license is located. Vendor
$25-$2500 52,321
Tobacco
$100 27
(The information provided is current Manufacturer
as of January 6, 2023.) Tobacco
$0-$100 1,652
Distributor
Tobacco Retail
Dealer/
$0-$50 30,004
Nicotine Retail
Dealer
14
LICENSING INFORMATION
QUOTA LIQUOR LICENSES
Limitations on Alcoholic Beverage Liquor Licenses
Section 561.20(1), Florida Statutes, limits the number of licenses authorized for the sale of
liquor – by the package or for consumption on the premises – to:
1 License Per 7,500 Residents (by county)
The limitation by population does not apply to numerous special license types, for
example:
• Hotels/Motels • Performing Arts Centers
• Condominiums • Civic Centers/Sports Arenas
• Food Service Establishments • Golf Clubs
• Caterers • Tennis Clubs
• Culinary Education Programs • Fraternal Associations
• Public Fairs/Expos
15
LICENSING INFORMATION
QUOTA LIQUOR LICENSES
Procedures for Issuing New Quota Licenses
• Section 561.19, Florida Statutes, governs the procedures for issuing new licenses when
they are determined to be available by increases in county population:
• 1 License Per 7,500 Residents (by county)
• Based on population estimates published by the Bureau of Economic and Business Research
at the University of Florida
• Annual Entry Period - 45 days beginning on the third Monday in August
• One entry per interested party per county - $100 fee per entry
2022 Drawing Entry Period
• In 2022, more than 26,000 entries were received for 35 quota beverage licenses in 19
counties, resulting in the collection of more than $2.6 million on behalf of the state.
• The 2022 drawing will be held this year (in 2023), such date to be announced upon final
validation of the entries.
16
COMPLIANCE ACTIVITIES
In FY 21-22, the Division performed over 39,305 alcoholic beverage and tobacco
inspections, with a staff of 187 dedicated Bureau of Enforcement employees across 12
district offices.
• Routine compliance inspections resulted in an approximate 75% compliance rate at the
time of inspection.
In FY21-22, the Division performed over 4,662 alcoholic beverage compliance surveys to
determine whether licensees were complying with minimum age of purchase restrictions in
Florida law.
• Nearly 86% of the alcohol-related compliance surveys resulted in vendor compliance.
• These surveys were in addition to the 3,733 youth compliance surveys conducted to
determine compliance with tobacco laws that reflected a 86.79% compliance rate
among licensees.
17
Florida
Department of Business
& Professiona I Regulation
Contact Information
Jonas Marquez
Legislative Affairs Director
Jonas.Marquez@MyFloridaLicense.com
850-491-5705
18
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