Broward beverage law exemption bill falls flat in second committee

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The bill would have allowed a Broward business to sidestep the three-tier system.

The House Industries & Professional Activities Subcommittee killed a local bill that would have exempted a private business in Broward County from following the state’s alcoholic beverage laws.

HB 4039, sponsored by Rep. Chip LaMarca, would have allowed the Florida Panthers’ contracted concessionaire to sidestep the state’s three-tier system, which separates the spirits industry into suppliers, distributors and vendors.

On paper, the legislation was a continuation of a privilege extended to a handful of publicly owned venues years ago. The initial reasoning was that it would spare local taxpayers from footing the bill for multiple business licenses, each of which commands a high price in the private market.

Now that local government doesn’t run the venues, the opposition said that the justification no longer holds water.

Further, critics emphasized that the exemption would have given one company a significant competitive advantage, jeopardizing the viability of other establishments in or near the Sunrise Entertainment District.

The reasoning: By skirting the walls separating each segment of the industry, the company would have been able to solicit or otherwise receive payments from major alcohol brands in exchange for exclusivity, a practice that is expressly forbidden under current law.

Further, such subsidies may have been used to fund renovations or improvements that would outshine what businesses subject to the law could reasonably afford.

Down the supply chain, small-volume producers without the capital to compete in a bidding war with the majors would likely have been shut out of a significant revenue source and brand exposure.

LaMarca’s bill-filing statement confirmed that the intent was indeed to allow the company to pursue sponsorship deals: “I filed this local bill for the Florida Panthers that allows the team and the associated catering entity a limited exemption that will enable them to participate in broader alcohol marketing and sponsorship activities,” the statement reads.

The bill stumbled in its committee debut in mid-March but advanced through the House Intergovernmental Affairs Committee last week with an 11-4 vote. On Tuesday, the House Industries & Professional Activities Subcommittee ended its run.

Drew Wilson

Drew Wilson covers legislative campaigns and fundraising for Florida Politics. He is a former editor at The Independent Florida Alligator and business correspondent at The Hollywood Reporter. Wilson, a University of Florida alumnus, covered the state economy and Legislature for LobbyTools and The Florida Current prior to joining Florida Politics.



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