HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1335 Department of Business and Professional Regulation
SPONSOR(S): Commerce Committee, State Administration & Technology Appropriations Subcommittee,
Maggard
TIED BILLS: IDEN./SIM. BILLS: SB 1544
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 12 Y, 2 N Wright Anstead
Subcommittee
2) State Administration & Technology 13 Y, 0 N, As CS Helpling Topp
Appropriations Subcommittee
3) Commerce Committee 15 Y, 0 N, As CS Wright Hamon
SUMMARY ANALYSIS
The Department of Business and Professional Regulation (DBPR) is responsible for licensing and regulating
various businesses and professions throughout the state, including tobacco; nicotine products ; alcohol; drugs,
devices, and cosmetics; construction contractors; asbestos abatement; pilots; elevators; employee leasing
companies; certified public accountants (CPAs); engineers, barbers; and cosmetologists.
The bill:
Requires applicants and licensees for the following to create and maintain an online account for
communication with DBPR:
o Tobacco and nicotine product industry,
o Alcohol industry,
o CPAs and firms, and
o Elevator industry.
Increases the amount of the required surety bond that a tobacco product distributor must maintain with
DBPR to $25,000, from $1,000.
Allows DBPR to determine additional surety amounts or reduce surety amounts for tobacco products
distributors based on certain factors.
Reduces the lookback period relating to a conviction for a felony that may be used to disqualify an
applicant for a license under the Beverage Law, to 10 years, from 15 years.
Dissolves the Board of Employee Leasing Companies and replaces with a DBPR-run program.
Increases caps on claims and lifetime limits for the Florida Homeowners’ Construction Recovery Fund.
Removes an obsolete provision from the barber and cosmetology practice acts.
Removes certain mentorship and eligibility requirements for pilots.
Removes certain financial responsibility proof requirements for asbestos abatement professionals.
Allows local construction contractor licensing agencies to recommend restitution as a disciplinary
action.
Allows applicants to be a designated representative for certain pharmaceutical wholesalers to prove
experience in two new ways.
Clarifies that an exclusion from engineering licensing requirements applies to all business
organizations, not just corporations.
The bill has a negative, indeterminate fiscal impact on state government and no impact on local governments.
See Fiscal Impact & Economic Impact Statement.
The bill has an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/15/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Department of Business and Professional Regulation
The Florida Department of Business and Professional Regulation (DBPR) regulates and licenses
various businesses and professionals in Florida through the following divisions:
• The Division of Administration,
• The Division of Alcoholic Beverages and Tobacco (ABT),
• The Division of Certified Public Accounting (DCPA),
• The Division of Drugs, Devices, and Cosmetics (DDC),
• The Division of Florida Condominiums, Timeshares, and Mobile Homes (FCTMH),
• The Division of Hotels and Restaurants (H&R),
• The Division of Pari-mutuel Wagering,
• The Division of Professions (Professions),
• The Division of Real Estate (DRE),
• The Division of Regulation,
• The Division of Technology, and
• The Division of Service Operations.1
Professions licenses and regulates more than 434,000 professionals through the following professional
boards and programs:
• Board of Architecture and Interior Design,
• Asbestos Licensing Unit,
• Athlete Agents,
• Board of Auctioneers,
• Barbers’ Board,
• Building Code Administrators and Inspectors Board,
• Regulatory Council of Community Association Managers,
• Construction Industry Licensing Board,
• Board of Cosmetology,
• Electrical Contractors’ Licensing Board,
• Board of Employee Leasing Companies,
• Home Inspectors,
• Board of Landscape Architecture,
• Mold-Related Services,
• Board of Pilot Commissioners,
• Board of Professional Geologists,
• Talent Agencies,
• Board of Veterinary Medicine, and
• Florida Board of Professional Engineers.2
DCPA is responsible for the regulation of certified public accountants and accounting firms in the state. 3
DRE is responsible for the regulation of real estate sales associates, brokers, and appraisers, in
conjunction with the Florida Real Estate Commission and the Florida Real Estate Appraisal Board.4
1 S. 20.165, F.S.
2 Florida Department of Business and Professional Regulation, Division of Professions, http://www.myfloridalicense.com/DBPR/division-
of-professions/ (last visited Jan. 21, 2024).
3 S. 473.3035, F.S.; Florida Department of Business and Professional Regulation, Certified Pub lic Accounting, Certified Public
Accounting – MyFloridaLicense.com (last visited Jan. 21, 2024).
4 S. 475.021, F.S.
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The Division of Regulation is the enforcement authority for the Florida Athletic Commission, Farm Labor
Program, Child Labor Program, and any professional boards and programs housed within Professions. 5
To ensure compliance with applicable laws and rules by those professions and related businesses, the
division investigates complaints, utilizes compliance mechanisms, and performs inspections. 6
DDC protects the health, safety, and welfare of Floridians from adulterated, contaminated, and
misbranded drugs, drug ingredients, and cosmetics by enforcing Part I of ch. 499, F.S., the Florida
Drug and Cosmetic Act (FDCA).7 The Act conforms to United Stated Food and Drug Administration
(FDA) drug laws and regulations and authorizes DBPR to issue permits to Florida drug manufacturers
and wholesale distributors and register drugs manufactured, packaged, repackaged, labeled, or
relabeled in Florida.8
ABT regulates the manufacture, distribution, sale, and service of alcoholic beverages and tobacco
products in Florida, including:
receipt and processing of license applications;
collection and auditing of taxes, surcharges, and fees paid by licensees; and
enforcement of the laws and regulations governing the sale of alcoholic beverages and tobacco
products.9
FCTMH provides consumer protection for Florida residents living in regulated communities through
education, complaint resolution, mediation and arbitration, and developer disclosure. 10 FCTMH has
limited regulatory authority over the following business entities and individuals:11
• Condominium Associations;
• Cooperative Associations;
• Florida Mobile Home Parks and related associations;
• Vacation Units and Timeshares;
• Yacht and Ship Brokers and related business entities; and
• Homeowners’ Associations (jurisdiction is limited to arbitration of election and recall disputes).
H&R licenses, inspects and regulates public lodging and food service establishments in Florida. The
division also licenses and regulates elevators, escalators and other vertical conveyance devices.12
Tobacco and Nicotine Products – Current Situation
ABT is responsible for the regulation of tobacco products under ch. 210, F.S., which sets out tax
requirements specific to cigarettes and tobacco products, and ch. 569, F.S., which sets out
requirements for tobacco sales.13
A person, firm, association, or corporation must obtain a permit from ABT to function as any of the
following in Florida:
Retail tobacco products dealer,14
Cigarette manufacturer,15
Cigarette wholesale dealer,16
5 Except the Board of Architecture and Interior Design, and the Florida Board of Professional Engineers.
6 Florida Department of Business and Professional Regulation, Division of Regulation, http://www.myfloridalicense.com/DBPR/division-
of-regulation/ (last visited Jan. 21, 2024).
7
Florida Department of Business and Professional Regulation, Division of Drugs, Devices, and Cosmetics, available at
http://www.myfloridalicense.com/DBPR/drugs-devices-and-cosmetics/ (last visited Mar. 19, 2021).
8 S. 499.01, F.S.
9 Florida Department of Business and Professional Regulation, Division of Alcoholic Beverages and Tobacco,
http://www.myfloridalicense.com/DBPR/alcoholic-beverages-and-tobacco/ (last visited Mar. 19, 2021).
10 Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mob ile Homes,
http://www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/, (last visited Mar. 19, 2021).
11 Id.
12 Florida Department of Business and Professional Regulation, Division of Hotels and Restaurants,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/ (last visited Mar. 19, 2021).
13 S. 561.02, F.S.
14 S. 569.003, F.S.
15 Ss. 210.01(21) and 210.15, F.S.
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Cigarette distributing agent,17
Cigarette importer,18
Cigarette exporter,19 or
Cigar wholesale dealer,20
Tobacco wholesale dealer/distributor,21 or
Retail nicotine products dealer.22
“Cigarettes” are defined in s. 210.01(1), F.S., relating to state taxes on cigarettes, as “any roll for
smoking, except one of which the tobacco is fully naturally fermented, without regard to the kind of
tobacco or other substances used in the inner roll or the nature or composition of the material in which
the roll is wrapped, which is made wholly or in part of tobacco irrespective of size or shape and whether
such tobacco is flavored, adulterated or mixed with any other ingredient.” This definition does not
include cigars.
“Tobacco products” are defined in s. 210.25(11), F.S., relating to state taxes on tobacco products other
than cigarettes or cigars, as “loose tobacco suitable for smoking; snuff; snuff flour; cavendish; plug and
twist tobacco; fine cuts and other chewing tobaccos; shorts; refuse scraps; clippings, cuttings, and
sweepings of tobacco, and other kinds and forms of tobacco prepared in such manner as to be suitable
for chewing.”
“Nicotine product” means any product that contains nicotine, including liquid nicotine, which is intended
for human consumption, whether inhaled, chewed, absorbed, dissolved, or ingested by any means.
The term also includes any nicotine dispensing device. The term does not include a:
Tobacco product.
Product regulated as a drug or device by the FDA under Chapter V of the FDCA; or
Product that contains incidental nicotine.23
There is currently no requirement that a tobacco or nicotine products licensee must apply using or
maintain an online account with ABT.
Tobacco and Nicotine Product Online Account – Effect of the Bill
The bill requires each person or entity licensed or permitted or applying for a cigarette, tobacco product,
nicotine, or cigar license or permit within Florida to:
Create and maintain an account with ABT's online system, and
Provide an e-mail address to ABT to function as the primary means of contact for all
communication by ABT to the licensee, permittee, or applicant.
maintaining accurate contact information on file with ABT.
The bill also provides that:
A person or an entity seeking such a license or permit must apply using forms furnished by ABT
which are filed through ABT's online system before commencing operations.
ABT may not process an application for a license or permit unless the application is submitted
through ABT's online system.
Surety Bond for Tobacco Product Distributor’s License – Current Situation
Each application for a tobacco product distributor’s license must be accompanied by a corporate surety
bond issued by a surety company authorized to do business in Florida, conditioned for the payment
16 Ss. 210.01(6) and 210.15(1), F.S.
17 Ss. 210.01(14) and 210.15(1), F.S.
18 Ss. 210.01(20) and 210.15(1), F.S.
19 Ss. 210.01(17) and 210.15(1), F.S.
20 S. 210.65(2), F.S.
2121 Ss. 210.25(5) and 210.40, F.S.
22 S. 569.31(6), F.S.
23 S. 569.31(4), F.S.
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when due of all taxes, penalties, and accrued interest which may be due the state. The bond must be in
the sum of $1,000 and in a form prescribed by ABT.
Whenever ABT finds that the bond given by a licensee is inadequate to fully protect the state, ABT
must require an additional bond in such amount as is deemed sufficient. A separate application for a
license must be made for each place of business at which a distributor proposes to engage in business
as a distributor, but an applicant may provide one bond in an amount determined by ABT for all
applications made by the distributor.24
Surety Bond for Tobacco Product Distributor’s License – Effect of the Bill
The bill increases the amount of the required tobacco product distributor corporate surety bond to
$25,000, from $1,000.
The bill requires ABT to review the amount of the corporate surety bond on a semiannual basis to
ensure that the bond amount is adequate to protect the state. ABT may increase the corporate surety
bond amount before renewing a distributor's license or after completing its semiannual review of the
bond amount. The corporate surety bond amount may be increased to the sum of the distributor's
highest month of final audited tax liabilities, penalties, and accrued interest which are due to the state.
The bill requires that a corporate surety bond, with the sum determined by ABT, is required for renewal
of a distributor's license.
The bill allows ABT to prescribe by rule increases in the corporate surety bond amounts required as a
condition of licensure.
The bill allows ABT to reduce the amount of a corporate surety bond upon a distributor's showing of
good cause. In determining the amount of the surety bond:
"Good cause" means a consistent pattern of responsible financial behavior by the distributor
over a period of at least the preceding 4 years, and having the sum of the distributor's final
audited tax liabilities, penalties, and interest be less than the amount of the distributor's
corporate surety bond for every month for a period of at least the preceding 4 years.
"Responsible financial behavior" includes the timely and complete reporting and payment of all
tax liabilities, penalties, and accrued interest due to the state for a period of at least the
preceding 4 years.
The bill prohibits ABT from reducing a corporate surety bond amount when a licensee:
Is in default of any tax liabilities, penalties, or interest due to the state;
Is the subject of a pending criminal prosecution in any jurisdiction until such prosecution has
been fully resolved;
Has pending administrative charges brought by an authorized regulatory body or agency which
have not been fully resolved in accordance with applicable rules and procedures; or
Is under investigation by any administrative body or agency for potential criminal violations until
any such investigation is completed and the findings of the investigation have been fully
resolved in accordance with applicable law.
The bill provides that such a matter is "fully resolved" if the criminal or administrative charges or
investigations have been definitively closed or dismissed, have resulted in an acquittal, or have
otherwise ended in such a manner that no further legal or administrative actions relating to charges or
investigations are pending against a licensee under applicable laws, rules, or regulations.
The bill requires ABT to notify a distributor in writing of any change in the distributor's corporate surety
bond requirements by the date on which the distributor's audited tax assessments become final.
24