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.