HOUSE OF REPRESENTATIVES LOCAL BILL STAFF ANALYSIS
BILL #: HB 1647 City of Orlando, Orange County
SPONSOR(S): Plasencia
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs 18 Y, 0 N Renner Miller
Subcommittee
2) Regulatory Reform Subcommittee 17 Y, 0 N Willson Anstead
3) State Affairs Committee 22 Y, 0 N Renner Williamson
SUMMARY ANALYSIS
Florida’s Beverage Law places a limit on 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.
In excess of the quota limitation, DBPR is authorized to issue a special food service license, which allows a
food service establishment to sell any alcoholic beverage, including liquor, under certain circumstances. Under
general law, a food service establishment may be issued a Special Food Service License if it has at least 2,500
square feet of service area, is equipped to serve meals to 150 customers simultaneously, and derives at least
51 percent of its gross revenue from the sale of food and non-alcoholic beverages during the first 60-day
operating period and each 12-month operating period thereafter.
The bill creates an exception to general law by requiring DBPR to issue special alcoholic beverage licenses to
bona fide restaurants in the Orlando Main Street Small Restaurant Incentive Area that are licensed by the
Division of Hotels and Restaurants, have at least 1,800 square feet of contiguous space, are equipped to serve
meals to at least 80 persons at one time, and derive at least 51 percent of their gross food and beverage
revenue from the sale of food and nonalcoholic beverages during the first 60-day operating period after
licensure, and each 12-month operating period thereafter.
The bill provides that the license will be revoked if the licensee fails to meet the 51 percent food and
nonalcoholic beverage gross revenue requirement. A licensee whose license is revoked, an applicant whose
pending application for permanent license is denied, or any person required to qualify for the license, may not
have any interest in a subsequent special food service establishment license application for a period of 120
days after the date of the final denial or revocation.
According to the Economic Impact Statement, the bill is revenue positive due to the increase in sales tax
revenue and licensing revenue.
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 document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1647e.SAC
DATE: 4/6/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Alcoholic Beverage Licensing
The Division of Alcoholic Beverages and Tobacco (DABT) 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 within the state of alcoholic beverages under
Florida’s Beverage Law.1
The Beverage Law does not limit the number of licenses DABT may issue to businesses who wish to
sell malt beverages or wine.2 However, the Beverage Law limits the number of licenses that may be
issued allowing a business to sell any alcoholic beverage regardless of alcoholic content, including
liquor or distilled spirits.3 This license, often referred to as a “quota license,” is limited 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.4
There are several exceptions to the quota license limitation, and businesses meeting the requirements
set out in statute5 may be issued a special license by DBPR allowing the business to serve any
alcoholic beverages regardless of alcoholic content.
The special food service license is one such license. DBPR may issue a special food service license to
a food service establishment having 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 60-day operating period and each 12-
month operating period thereafter.6 Before DBPR will issue a special food service license, the business
must have a valid food service establishment license issued by the state agency with proper
jurisdiction.7
Effect of the Bill
The bill creates an exception to s. 561.20(1), F.S., by requiring DBPR to issue special alcoholic
beverage licenses to bona fide restaurants in the Orlando Main Street Small Restaurant Incentive Area
that are licensed by the Division of Hotels and Restaurants, have at least 1,800 square feet of
contiguous space, are equipped to serve meals to at least 80 persons at one time, and derive at least
51 percent of their gross food and beverage revenue from the sale of food and nonalcoholic beverages
during the first 60-day operating period after licensure, and each 12-month operating period thereafter.
The bill provides that failure of a licensee who is issued a special license to meet the 51 percent food
and nonalcoholic beverage gross revenue requirement during the covered operating period will result in
revocation of the license or denial of the pending application for a permanent license of a licensee
operating with a temporary license. A licensee, applicant, or any person required to qualify on the
license application who has his or her license revoked, or pending application for permanent license
denied, may not apply for a subsequent license for a period of 120 days after the date of the final denial
or revocation.
1 Chs. 561-565 and 567-568, F.S.
2 See ss. 563.02 and 564.02, F.S.
3 S. 561.20(1), F.S. See s. 565.02(1)(a)-(f), F.S.
4 S. 561.20(1), F.S.
5 S. 561.20(2), F.S.
6 S. 561.20(2)(a)4., F.S.
7 Rule 61A-3.0141(2), F.A.C.
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According to the Economic Impact Statement, the bill is revenue positive due to the increase in sales
tax revenue and licensing revenue.
B. SECTION DIRECTORY:
Section 1. Creates the Orlando Main Street Small Restaurant Incentive Areas special zone.
Section 2. Creates an exception to general law; providing space, seating, and minimum gross
revenue requirements for special alcoholic beverage licenses for certain restaurants.
Section 3. Provides an effective date of upon becoming a law.
II. NOTICE/REFERENDUM AND OTHER REQUIREMENTS
A. NOTICE PUBLISHED? Yes [X] No []
IF YES, WHEN? January 29, 2021
WHERE? Orlando Sentinel, a daily newspaper published in Orange County, Florida.
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 neither authorizes nor requires administrative rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
None.
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DATE: 4/6/2021