Florida 2023 2023 Regular Session

Florida House Bill H1459 Analysis / Analysis

Filed 04/11/2023

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h1459e.COM 
DATE: 4/11/2023 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: HB 1459    Registration Fees for Malt Beverage Brands and Labels 
SPONSOR(S): Yeager 
TIED BILLS:   IDEN./SIM. BILLS: SB 658 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Regulatory Reform & Economic Development 
Subcommittee 
11 Y, 0 N Thompson Anstead 
2) State Administration & Technology 
Appropriations Subcommittee 
12 Y, 0 N Helpling Topp 
3) Commerce Committee 	17 Y, 0 N Thompson 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 (ABT) in the Department of Business and Professional Regulation (DBPR) 
administers and enforces the Beverage Law, which requires licenses for businesses in the industry and 
payment of various associated fees and taxes.   
 
Before doing business in Florida, manufacturers, brewers, bottlers, distributors, and importers of malt 
beverages must register with the ABT the brands or labels under which the malt beverages are to be sold or 
moved. Current law requires the ABT to charge a $30 fee per brand or label.  
 
The bill: 
 Provides that the annual registration fee of $30 for each malt beverage brand and label only applies to 
a brand or label that is sold to a distributor, not to a brand or label that is kept in-house.  
 Specifies that no other annual registration fee for a brand or label is authorized under the provision. 
 
The bill will have an indeterminate negative fiscal impact on state government, and no fiscal impact on local 
governments.  
 
The bill provides an effective date of July 1, 2023.   STORAGE NAME: h1459e.COM 	PAGE: 2 
DATE: 4/11/2023 
  
FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
Current Situation 
 
Beverage Law 
 
In Florida, alcoholic beverages are regulated by the Beverage Law,
1
 which regulates and licenses the 
manufacture, distribution, and sale of wine, beer, and liquor by manufacturers, distributors, and 
vendors.
2
 The Division of Alcoholic Beverages and Tobacco (ABT) in the Department of Business and 
Professional Regulation (DBPR) administers and enforces the Beverage Law.
3
 
 
Three-Tier System 
 
In the United States, the regulation of alcohol since the repeal of Prohibition, has traditionally been 
based upon a “three-tier system.” The system requires separation of the manufacture, distribution, and 
sale of alcoholic beverages. The manufacturer creates the beverages, and the distributor obtains the 
beverages from the manufacturer to deliver to the vendor. The vendor makes the ultimate sale to the 
consumer. A manufacturer, distributor, or exporter may not be licensed as a vendor to sell directly to 
consumers.  
 
Generally, Florida has adopted the three-tier system. Exceptions to the three-tier regulatory system 
permit in-state wineries,
4
 breweries,
5
 and craft distilleries to be licensed as a vendor and sell directly to 
consumers under certain circumstances.
6
 
 
Brand and Label Registration Fee 
 
No manufacturer, brewer, bottler, distributor, or importer of malt beverages may sell or offer for sale in 
Florida, or move or cause to be moved within or into Florida, any malt beverages, without:
7
 
 Qualifying to do business in the state and registering its name and the brands or labels under 
which the malt beverages are to be sold or moved; and  
 Furnishing any samples and information as to content, quality, and formula of such malt 
beverages as the ABT may require. 
 
Each registrant must pay an annual registration fee of $30 for a brand or label.
8
 
 
Effect of Proposed Changes 
 
The bill provides that the annual registration fee of $30 for each malt beverage brand and label only 
applies to a brand or label that is sold to a distributor, not to a brand or label that is kept in-house.  
 
The bill also specifies that no other annual registration fee for a brand or label is authorized under the 
provision. 
 
B. SECTION DIRECTORY: 
Section 1: Amends s. 563.045, F.S., revising requirements for brand and label fees. 
 
                                                
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
 See s. 561.221(1), F.S. 
5
 See s. 561.221(2), F.S. 
6
 See s. 565.03, F.S. 
7
 S. 563.045(1), F.S. 
8
 S. 563.045(2), F.S.  STORAGE NAME: h1459e.COM 	PAGE: 3 
DATE: 4/11/2023 
  
Section 2: Provides an effective date of July 1, 2023. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
The bill may cause an indeterminate decrease in brand and label fees collected by the ABT. 
 
The table below shows the last three fiscal years of revenue collected for brands/label 
registrations.
9
 
 
 	2020 2021 2022 
Initial Malt Beverages 
Licenses  
$206,280 $239,730 $255,930 
Malt Beverage License 
Renewals 
$98,580 $130,020 $131,820 
 
These revenues include brand and label fees for all beverages. The reduction in revenue will be 
determined by the number of beverages that are kept in house, which is not currently tracked. 
 
2. Expenditures: 
There will be minor adjustments to the online system for brand registration which is estimated to 
cost $16,000.
10
 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
The bill may have a positive impact on craft brewers and brewpubs, who may pay less in brand and 
label fees to the ABT. 
 
D. FISCAL COMMENTS: 
None. 
 
 
 
 
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
                                                
9
 Florida Department of Business and Professional Regulation, Agency Analysis of 2023 Senate Bill 658, p. 5 (Feb. 23, 2023). 
10
 Id.  STORAGE NAME: h1459e.COM 	PAGE: 4 
DATE: 4/11/2023 
  
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