Business Licenses and Permits

As a citizen of the left coast, the state of Florida is an interesting land.  Flying into most Florida cities, it appears the state is like the human body-largely comprised of water.  Like the question of whether a zebra is black with white stripes, or white with black stripes, it’s difficult to know whether Florida is mostly dry land or water.  Also, the idea of alligators roaming around without raising eyebrows defies logic to me.

The ‘interesting’ theme also applies where Florida business statutes are concerned.  One case in point is Florida’s Quota Liquor license.  Florida counties create licenses according to a population-based quota system.  The quota system doesn’t apply to businesses that strictly sell beer and wine, or restaurants who serve alcohol where at least 51% of their revenue comes from the sale of food and non-alcoholic beverages.  Each quota license in the county represents 7,500 residents.

There are two ways to secure a quota liquor license.  Proprietor’s must either purchase an existing license, or enter a lottery drawing to apply for a new license when the county’s population growth dictates that a new license is available.  Title 34, Chapter 561, section 561.19(2)(a) indicates “When beverage licenses become available by reason of an increase in the population of a county…if there are more applicants than the number of available licenses, shall provide a method of double random selection by public drawing…”

In addition to a $100 fee to enter the public drawing, quota license applicants who are granted a license must pay a fee of $10,750 (F.S. 34-561.19(5)).  This one-time fee is deposited in the Department of Children and Family Services’ Operations and Maintenance Trust Fund.  Use of funds is restricted to funding alcohol and drug abuse education, treatment, and prevention programs.

While Florida’s liquor license quota approach to liquor licensing may not be unique, Floridians should be commended for recognizing the social costs of alcohol abuse; and applauded for expecting businesses that profit from alcohol sales to be part of the solution.

Steve Elias, Team Leader-Business License Research Team, Corporation Service Company