HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #:     HB 741 Town of Hillsboro Beach, Broward County
SPONSOR(S): LaMarca
TIED BILLS:       IDEN./SIM. BILLS:
    REFERENCE                                                     ACTION               ANALYST             STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Local Administration, Federal Affairs & Special            16 Y, 0 N            Burgess             Darden
       Districts Subcommittee
    2) Regulatory Reform & Economic Development                   15 Y, 0 N            Phelps              Anstead
       Subcommittee
    3) State Affairs Committee                                    19 Y, 0 N            Burgess             Williamson
                                              SUMMARY ANALYSIS
Florida’s Beverage Law limits the number of “quota licenses” that the Department of Business and Professional
Regulation (DBPR) may issue per county. A quota license allows a business to serve any alcoholic beverage
regardless of alcoholic content, including liquor. DBPR is not limited by the Beverage Law on the number of
licenses it may issue for businesses that serve only malt beverages and wine.
The bill creates an exception to ch. 561, F.S., permitting DBPR to issue a special alcoholic beverage license to
any residential condominium in the Town of Hillsboro Beach, Broward County that meets the following
requirements:
    Has no fewer than 50 condominium units in a single building or multiple buildings under the control and
        operation of the same association of condominium owners;
    Is owned by or rented to non-transients; and
    Is licensed as a food service establishment under ch. 381, F.S., or ch. 509, F.S.
The bill provides that the special alcoholic beverage license may only be issued to the entity managing the
food and beverage operations of the condominium. The bill limits sales under the license to residents or guests
of the condominium for on-premises consumption during the hours where food is sold.
The bill provides that DBPR has the authority to regulate and supervise residential condominiums for which
special alcoholic beverage licenses have been issued. The Division of Alcoholic Beverages and Tobacco
within DBPR may revoke or suspend any license for violations of the beverage laws and rules and regulations
of this state.
According to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
on the Special Order Calendar for expedited consideration. Since this bill creates an exemption to
general law, the provisions of House Rule 5.5(b) apply.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0741e.SAC
DATE: 2/7/2024
                                                          FULL ANALYSIS
                                                    I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
         Present Situation
         The Division of Alcoholic Beverages and Tobacco (Division) within the Department of Business and
         Professional Regulation (DBPR) is responsible for regulating the conduct, management, and operation
         of the manufacturing, packaging, distribution, and sale of alcoholic beverages within the state.1
         Chapters 561-565 and 567-568, F.S., comprise Florida’s Beverage Law.
         Under the Beverage Law, DBPR is not limited on the number of licenses it issues to businesses selling
         malt beverages or wine. However, statute limits the number of licenses that may be issued under s.
         565.02(1)(a)-(f), F.S., to one license per 7,500 residents per county with a minimum of three licenses
         per county that has approved the sale of intoxicating liquors. 2 This license, often referred to as a “quota
         license,” allows a business to sell any alcoholic beverage regardless of alcoholic content, including
         liquor or distilled spirits.3
         There are several exceptions to the quota license limitation, 4 and businesses that meet the
         requirements set out in one of the exceptions may be issued a special license by DBPR allowing the
         business to serve any alcoholic beverages regardless of alcohol content. A food service establishment
         may qualify for an exemption if the building has at least 2,500 square feet of service area, is equipped
         to serve meals to 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 during the first 120-day operating
         period and the first 12-month operating period thereafter.5
         Alcoholic beverages sold for consumption on premises must be consumed inside the licensed
         premises.6 DBPR may approve a temporary expansion of the licensed premises to include a sidewalk
         or other outdoor area for special events.7 The business must pay an application fee of $100, stipulate
         the timeframe for the special event, submit a sketch outlining the expanded premises, and submit
         written approval from the county or municipality.
         Effect of Proposed Changes
         The bill creates an exception to ch. 561, F.S., permitting DBPR to issue a special alcoholic beverage
         license to any residential condominium in the Town of Hillsboro Beach, Broward County, that meets the
         following requirements:
               Has no fewer than 50 condominium units in a single building or multiple buildings under the
                 control and operation of the same association of condominium owners;
               Is owned by or rented to non-transients;8 and
               Is licensed as a food service establishment under ch. 381, F.S., or ch. 509, F.S.
         The bill provides that the special alcoholic beverage license may only be issued to the person,
         company, or corporation that manages the food and beverage operations of the condominium, is limited
         to the provision of alcoholic beverages for consumption on the premises only to residents and their
1 S. 561.02, F.S.
2 S. 561.20(1), F.S.
3 S. 565.02, F.S.
4
  S. 561.20(2), F.S.
5 S. 561.20(2)(a)4., F.S. See Rule 61A-3.0141, F.A.C.
6 See s. 561.01(11), F.S. (defining “licensed premises” and requiring written approval from the county or municipality to include a
sidewalk or any other outside area as part of the licensed premise).
7 S. 561.01(11), F.S.
8
  Nontransient occupancy means “any public lodging establishment that is rented or leased to guests by an operator whose intent ion is
that the dwelling unit occupied will be the sole residence of the guest.” S. 509.013(14), F.S. “Nontra nsients” are guests in nontransient
occupancy. S. 509.013(16), F.S. Essentially, nontransients are tenants.
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DATE: 2/7/2024
        nonresident guests, and does not authorize the condominium to sell alcoholic beverages by the
        package for off-premises consumption or to sell alcoholic beverages after the hours of serving or
        consumption of food have elapsed.
        The bill provides that DBPR has the authority to regulate and supervise residential condominiums for
        which special alcoholic beverage licenses have been issued. The division may revoke or suspend any
        license for violations of the beverage laws and rules and regulations of this state.
   B. SECTION DIRECTORY:
        Section 1:    Creates an exception to general law to a residential condominium in the Town of
                      Hillsboro Beach, Broward County.
        Section 2:    Provides an effective date of upon becoming a law.
                            II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS
   A. NOTICE PUBLISHED?           Yes [X]   No []
        IF YES, WHEN?         November 5, 2023
        WHERE?                The Sun-Sentinel, a daily newspaper of general circulation published in Broward,
                              Palm Beach, and Miami-Dade County.
   B. REFERENDUM(S) REQUIRED?               Yes []     No [X]
        IF YES, WHEN?
   C. LOCAL BILL CERTIFICATION FILED?                Yes [X]    No []
   D. ECONOMIC IMPACT STATEMENT FILED?                    Yes [X]       No []
                                                 III. COMMENTS
   A. CONSTITUTIONAL ISSUES:
        None.
   B. RULE-MAKING AUTHORITY:
        The bill does not provide rulemaking authority or require executive branch rulemaking.
   C. DRAFTING ISSUES OR OTHER COMMENTS:
        According to House Rule 5.5(b), a local bill providing an exemption from general law may not be placed
        on the Special Order Calendar for expedited consideration. Since this bill creates an exemption to
        general law, the provisions of House Rule 5.5(b) apply.
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.
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DATE: 2/7/2024