Florida's 2000 Legislature Adjourns Changing State Alcohol And Clean Air Policies
June 1, 2000
The Florida Legislature
adjourned its 2000 Session passing four of the 30 bills filed that would have
some impact on hospitality industry members involved in the sale of alcohol
beverages and food service. The four bills that passed are awaiting the
Governor’s approval but all are expected to become law within the next
month.
A bill that was
promoted by the Department of Business and Professional Regulation passed the
last day of the Session and changes many state policies. This
bill:
- Requires all food
service employees complete a certified training program in food safety on or
before January 1, 2001, and that any food service employee hired after November
1, 2000, receive the training within 60 days after
employment.
- Redefines a licensee
and exempts persons who have contractual contracts from which they derive
revenues, but have no control over the sale of alcohol
beverages.
- Temporary licenses
will expire upon Notice of Intent to Deny if the applicant failed to disclose
any convictions of crimes specified in § 561.15 (2) and (4), which include
adjudication of guilt on a plea of guilty or nolo contendere or the forfeiture
of a bond when charged with the crimes specified.
- Effective October 1,
2000, new quota liquor licenses issued under § 561.20(1) shall be issued for
each population increase of 7,500 residents above the number of residents who
resided in the county according to the April 1, 1999, Florida Estimate of
Population (this will decrease the availability of new quota liquor licenses
since the current ratio of population increases is 1:5000).
- A new alcohol
beverage license classification was created for food caterers with specific
privileges, restrictions, and limitations. The Division of Alcoholic Beverages
and Tobacco was given the authority to adopt rules to administer the new food
caterer’s license.
- Failure of a
licensee to comply with a stipulation, consent order or final order will be
cause for additional license penalties.
- License renewal fees
will no longer be waived when the transfer of an interest in an alcohol beverage
license occurs by operation of law or other specified judicial
proceedings.
- Transfer fees for
all quota licenses issued after October 1, 2000, will be 50 times the annual
license fee (current law is 15 times the annual license fee for first transfer
within three years after issuance therefore the transfer fee will increase in
Florida’s most populated counties from $27,300 to $91,000 plus up to $5000.00 in
additional transfer fees). The new transfer fee will apply to all future
transfers of any quota liquor license issued after October 1,
2000.
- Golf clubs may
purchase and sell distilled spirits in miniatures (50 ml or 1.7 ounce
containers).
Some of the sections in this bill will be effective on July 1,
2000, and other sections will be effective October 1, 2000.
The state legislators
continued their plan to eliminate the surcharge drink tax by 2002, and passed a
bill to reduce the existing tax rates by one half the current tax rate. In
addition, the surcharge drink tax was eliminated for all organizations licensed
as a club and nonprofit organizations with a special three-day permit if they
are exempt from federal income tax under § 501(c) (3), (4), (5), (6), (7), (8),
or (19) of the IRS Code of 1986 as Amended. Since 1995, the state has exempted
nonprofit civic organizations who are issued special three day permits from the
surcharge drink tax because they are not classified as licensed vendors, and
this bill expands the exemption to licensed federal tax exempt clubs with an
11-C series license. Many 11-C license holders as well as airlines and
steamships may be entitled to refunds of surcharges they have been paying under
Florida law, due to their special license classification. Interested parties
should consult with their legal counsel to determine if they should make
application for a refund and exemption status.
Motorsports
entertainment complex operators will not be recognized as vendors of alcohol
beverages if they are not licensed to sell these products at their facilities.
This bill clearly establishes state policy regarding malt beverage and wine
manufacturers sponsoring motor races and paying advertising or promotional fees
to the track operators that meet specific qualifications.
The last bill that will
affect the industry is the revision made to Florida’s Clean Indoor Air Act which
will eliminate the square footage requirements for nonsmoking areas of
restaurants. The nonsmoking areas of all restaurants will be based on seating
in dining rooms rather than a percentage of square footage. Effective October
1, 2000, no restaurants may designate more than 50% of its seats in the
restaurant’s dining areas for smoking, and after October 1, 2001, no more than
35% of its seats. The dining room will not include other rooms, not used for
dining, such as separate rooms with bars. The Division of Hotels and
Restaurants will be developing rules to deal with this law and industry
representatives should monitor the rule development to be sure it follows the
legislative intent.
These bills will change
many aspects of doing business in Florida and starting a business in Florida.
Liquor licenses will increase in value significantly in every county due to
fewer being available and an increase of approximately $100,000 in additional
license transfer fee taxes on all licenses issued after October 1, 2000, will be
generated. The new transfer tax also will increase the value of licenses issued
before October 1, 2000, which only pay a maximum of $5,000 to $32,000 in
transfer fees.
If you have any
questions regarding these bills or the date they become law, our Beverage
Alcohol Practice Group can assist you. John Harris, Holland & Knight LLP,
Governmental Consultant in Tallahassee annually monitors all bills that might
affect the hospitality industry and keeps its clients informed of the impact
such bills could have in their current or future business
plans.
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