HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 639 Issuance of Special Beverage Licenses
SPONSOR(S): Commerce Committee, Regulatory Reform & Economic Development Subcommittee,
Esposito
TIED BILLS: IDEN./SIM. BILLS: SB 1262
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 15 Y, 0 N, As CS Wright Anstead
Subcommittee
2) Commerce Committee 20 Y, 0 N, As CS Wright Hamon
SUMMARY ANALYSIS
In Florida, alcoholic beverages are regulated by the Beverage Law, which regulates the manufacture,
distribution, and sale of wine, beer, and liquor by manufacturers, distributors, and vendors. The Division of
Alcoholic Beverages and Tobacco (division) in the Department of Business and Professional Regulation
(DBPR) administers and enforces the Beverage Law.
Florida law limits, by county, the number of alcoholic beverage licenses that may be issued for the sale of
distilled spirits, to one license per 7,500 residents within the county. These limited alcoholic beverage licenses
are known as “quota” licenses.
A “special license” is an exception to the quota licensing scheme, which allows certain entities to serve liquor
without a quota license. One such special license is a “special food service license” (SFS license), which
applies to a food service establishment that:
Has 2,500 square feet,
Is equipped to serve 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.
Additionally, there is an exception to quota licensing for certain bona fide clubs, including beach or cabana
clubs. Such clubs must meet certain criteria to qualify for such a license.
The bill lowers requirements for certain food service establishments to qualify for an SFS license by reducing
the minimum:
Service area to 2,000 square feet, and
Service capacity to 120 persons.
The bill will still require a food service establishment to derive 51 percent or more gross sales from food and
nonalcoholic beverage sales in order to qualify for an SFS license.
The bill expands beach or cabana club beverage license criteria to include clubs with:
Locker room or bathroom facilities for at least 100 persons, instead of locker rooms with facilities for at
least 100 persons.
Any type of public food service establishment of any seating size, instead of a restaurant with seats
with tables for at least 100 persons.
The bill does not have a fiscal impact on local governments and has an indeterminate fiscal impact on state
government.
The bill becomes effective upon becoming law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 4/19/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Regulation of Alcoholic Beverages
In Florida, alcoholic beverages are regulated by the Beverage Law, 1 which regulates the manufacture,
distribution, and sale of wine, beer, and liquor by manufacturers, distributors, and vendors. 2 The
Division of Alcoholic Beverages and Tobacco (division) in the Department of Business and Professional
Regulation (DBPR) administers and enforces the Beverage Law. 3
Special Food Service License
Florida law limits, by county, the number of alcoholic beverage licenses that may be issued for the sale
of distilled spirits, to one license per 7,500 residents within the county. These limited alcoholic beverage
licenses are known as “quota” licenses. The quota license is the only alcoholic beverage license that is
limited in number; all other types of alcoholic beverage licenses are available without limitation, if
certain conditions are met.4
A “special license” is an exception to the quota licensing scheme, which allows certain entities to serve
liquor without a quota license. One such special license is a “special food service license” (SFS
license), which applies to a food service establishment that: 5
Has 2,500 square feet,6
Is equipped to serve 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.
The required revenue percentage is computed as the sum of gross food and nonalcoholic beverage
revenue divided by the sum of gross food, alcoholic beverage, and non-alcoholic beverage revenue.7
Records of each purchase and each sale of food, alcoholic beverages, and nonalcoholic beverages
must be maintained for a period of 3 years.8
SFS licensees must be audited by the division for compliance with the food and nonalcoholic beverage
sales percentage requirements during the first 120-day operating period, and every one to four years
thereafter, depending on beverage revenue. Failure by an SFS licensee to satisfy the requirements as
to the percentages of food and nonalcoholic beverage sales results in revocation of the SFS license. An
SFS licensee whose license is revoked is ineligible to have an interest in a subsequent application for a
license for 120 days after the revocation.9
SFS licensees may sell or deliver alcoholic beverages in a sealed container for off-premises
consumption, including liquor-based beverages prepared by the licensee and packaged in a container
sealed by the licensee. Such licensees may not sell a bottle of distilled spirits sealed by a
manufacturer. The sale or delivery of such beverages must be accompanied by the sale of food.10
1 S. 561.01(6), F.S., provides that the “The Beverage Law” means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2 See s. 561.14, F.S.
3 S. 561.02, F.S.
4 S. 561.20(1), F.S.
5 S. 561.20(2)(a)4., F.S.
6 The service area includes only the food service establishment’s buildings and other contiguous outside areas which are
under the management and control of the licensed food service establishment . Rule R. 61A-3.0141(1), F.A.C.
7 R. 61A-3.0141(4), F.A.C.
8 R. 61A-3.0141(3), F.A.C.
9 Id.
10 Id.
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There are several exceptions to the Beverage Law created by special laws, which are applicable to
specific local areas. Many reduce certain licensing requirements for special zones in local jurisdictions.
For example, ch. 2022-259, L.O.F., allows DBPR to issue an SFS license to restaurants within the
Kings Avenue Commercial Corridor in Jacksonville that:
Have 1,000 square feet,
Are equipped to serve 50 persons at one time, and
Derive at least 51 percent of its gross food and beverage revenue from the sale of food and
nonalcoholic beverages.
Beach or Cabana Club License
Beverage licenses may not be limited in number for certain bona fide chartered or incorporated clubs
which have been in operation for at least 2 years in the county where it exists.11 However, such clubs
must meet certain criteria to qualify for such a license.
Club licenses are limited to:12
Subordinate lodges or clubs of national fraternal or benevolent associations;
Golf clubs, tennis clubs, and beach or cabana clubs which are municipally or privately owned or
leased;
Nonprofit corporations or clubs devoted to promoting community, municipal, or county
development or any phase of community, municipal, or county development;
Clubs fostering and promoting the general welfare and prosperity of members of showmen and
amusement enterprises;
Clubs assisting, promoting, and developing subordinate lodges or clubs of national fraternal or
benevolent associations; and
Clubs promoting, developing, and maintaining cultural relations of people of the same
nationality.
In order to qualify for a beach or cabana club license, a corporation, partnership, or individual operating
a club must own or lease and maintain a bona fide beach or cabana club consisting of beach facilities,
swimming pool, locker rooms with facilities for at least 100 persons, and a restaurant with seats at
tables for at least 100 persons, comprising in all an area of at least 5,000 square feet located on a
contiguous tract of land of in excess of 1 acre.13
A beach or cabana club that fails to maintain the facilities may be subject to revocation of the club
beverage license.14
Public Food Service Establishments
Under DBPR, the Division of Hotels and Restaurants licenses, inspects, and regulates public lodging
and food service establishments in Florida.15
“Public food service establishments” means any building, vehicle, place, or structure, or any room or
division thereof, where food is prepared, served, or sold for immediate consumption on or in the vicinity
of the premises; called for or taken out by customers; or prepared prior to being delivered to another
location for consumption, with certain exceptions. 16
11 S. 561.20(7)(a), F.S.; s. 565.02(4), F.S.
12 S. 561.20(7)(a), F.S.
13 S. 561.20(7)(d), F.S.
14 Id.
15 S. 20.165, F.S.; Florida Department of Business and Professional Regulation, Division of Hotels and Restaurants,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/ (last visited Apr. 18, 2023).
16 S. 509.013(5), F.S.
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Classifications of public food service establishments include permanent food service restaurants,
catering services, mobile food dispensing vehicles, vending machines, theme park carts, culinary
education programs, and temporary food service events. 17
Effect of the Bill
The bill lowers requirements for a food service establishment to qualify for an SFS license by reducing
the minimum:
Service area requirement to 2,000 square feet, and
Service capacity to 120 persons.
However, a food service establishment will still need to derive 51 percent or more gross sales from food
and nonalcoholic beverage sales in order to qualify for an SFS license.
The bill expands beach or cabana club beverage license criteria to include clubs with:
Locker room or bathroom facilities for at least 100 persons, instead of locker rooms with
facilities for at least 100 persons.
Any type of public food service establishment of any seating size, instead of a restaurant
with seats with tables for at least 100 persons.
The bill provides an effective date of upon becoming law.
B. SECTION DIRECTORY:
Section 1: Amends s. 561.20, F.S., revising requirements for a special restaurant beverage license
and a beach or cabana club beverage license.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill may allow more restaurants to obtain an SFS license or beach or cabana club license,
which would increase fees to the state.
2. Expenditures:
The bill may allow more restaurants to obtain an SFS license or beach or cabana club license,
which would require more regulatory actions, such as inspections and audits, by DBPR.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may allow more restaurants to obtain an SFS license, which may make it less expensive to own
and operate a restaurant that sells alcoholic beverages and could lead to more restaurants opening. It
could also increase beverage service options for consumers.
17R. 61C-1.002, F.A.C.; Florida Department of Business and Professional Regulation, Hotels and Restaurants – Licensing Guides,
http://www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/licensing-guides/ (last visited Feb. 24, 2023).
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D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On March 28, 2023, the Regulatory Reform & Economic Development Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The committee substitute:
Reduced the service area size requirements from 2,500 square feet to 2,000 square feet, and
Reduced the seating capacity requirements from 150 persons to 120 persons.
On April 17, 2023, the Commerce Committee adopted one amendment and reported the bill favorably as a
committee substitute. The committee substitute:
Expanded the ability to obtain a club beverage license for certain beach or cabana clubs to include
those with bathroom facilities for at least 100 persons.
Replaced the requirement to have a restaurant with seats with tables for at least 100 persons to
obtain a club beverage license for certain beach or cabana clubs with the requirement to have any
type of public food service establishment of any seating size.
This analysis is drafted to the committee substitute as passed by the Commerce Committee.
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DATE: 4/19/2023
Statutes affected: H 639 Filed: 561.20
H 639 c1: 561.20