Check out the latest industry topics for 2010 session.

1. Legislative Advocacy and Industry
Information POSSIBLE LEGISLATION FOR 2010
Power through representation on the
local, state and federal level
Consistently ranked among the most Alcohol Issues alcoholic beverages and who fails to take
There are currently 1148 bills pending in reasonable steps to prevent such posses-
influential trade associations in Florida
the legislature, and the 2010 Session does sion. Finally, SB 1068 increases the pen-
Represents the single largest impact on not start until March 2, 2010. Of those bills alty for serving a minor after the second
Florida's tax base (20%) that we know about, seven directly impact offense.
Employs more than 900,000 Floridians your business. Two bills, House Bill (HB)
Has an economic impact of $57 billion 345 by Representative Kreegal and Senate Budget Woes Continue
Bill (SB) 784 by Senator Baker, modify the Three years ago Florida’s budget was
state beverage code and impact brand regis- over $72 billion. With the recent eco-
RCS-FRLA is fighting for... nomic crisis that number has been re-
Freedom from frivolous lawsuits tration and beverage tastings, allowing manu-
duces by nearly 15 percent. Everyone is
Limited taxation of restaurants and 2010 facturers of spirits to conduct tastings on
feeling the burden with many govern-
licensed premises just as distributors and
lodging establishments Government vendors. ment programs, jobs and funding being
Ballot initiative reform to prevent costly Two bills that are sure to cost your busi- reduced. Due to the disaster in the hous-
proposals Relations ness money are HB 555 by Representative ing market and the decrease in travel and
Repeal of CPI-tied automatic minimum Homan and SB446 by Senator Bennett. tourism dollars, tax revenue has needless
wage increases Forecast These bills require that a sign warning of to say dropped significantly.
fetal alcohol syndrome be posted at point of Florida’s legislature was able to utilize
Reduction in government regulation stimulus dollars when drafting the 2009-
purchase and in prominent places through-
Regulatory Compliance Services out the premises of all alcoholic beverage 2010 budget. Florida will be able to use
RCS-FRLA has... A subsidiary of FRLA the same amount of money next year but
201 West Canton Avenue, Suite 100
vendors and manufacturers. While well in-
Prevented more than $1.2 billion in tentioned, these bills only add financial bur- additional funds are not guaranteed after
taxes, fees and wages to the industry Winter Park, Florida 32789 the 2010-2011 budget year. Most econo-
Toll Free: (800) 537-9863 dens to business. However much it would
over the past 10 years like, the state cannot legislate personal re- mists do not believe the difference will
Phone: (407) 478-4555
Won FULL REPEAL of the alcohol Fax: (407) 478-4575 sponsibility and common sense. be made up from the funds needed after
beverage surcharge www.regcomplianceusa.com This year’s legislative session will bring 2011.
Reduced frivolous lawsuits through tort attempts to increase the penalties for DUI. RCS and FRLA will continue to
reform FRLA Headquarters SB 924 by Senator Wise will require ignition monitor any changes of the state’s
230 South Adams Street interlock devices to be placed on a person’s budget to make sure the hospitality in-
One of the largest Political Action Tallahassee, Florida 32301 dustry is not singled out as a funding
Committees in Florida vehicle even upon first conviction. The cost
Post Office Box 1779 mechanism via higher taxes to reduce
to be borne by the individual.
Tallahassee, Florida 32302 the current short-falls in state revenues.
Toll-Free: (888) 372-9119 SB 1066 and SB 1068 by Senator Altman
are two additional bills to watch. SB 1066 As we have all experienced, once a tax is
Phone: (850) 224-2250
deals with house parties and makes it a levied, it rarely is removed or reduced
Fax: (850) 224-9213
www.frla.org criminal offense for an adult who allows a when the need for it no longer exists.
minor on the premises to be in possession of Continue to next page...

2. Unemployment Rate Hike Crisis a 12-fold increase. The maximum rate will rise to website because the tax calculation is being figured sentative Homan has been introduced. This
Unemployment compensation taxes $459 per worker from $378 for companies that have on a lower base amount than the full booking price. bill would authorize the Department of Health
paid by Florida businesses will sky- recently laid-off workers. Recently, many jurisdictions have become aware to require certain food service establishments
rocket due to the state's high jobless Employers already are squeezed by tight credit, of this difference and have started to bring suit to display the number of calories in food items
rate that hit nearly 12 percent in January rising health care costs, wary consumers and a against OTCs for the tax revenue they contend was for sale. RCS and FRLA will continue to op-
2010, according to revenue officials. higher mini- not paid due to the OTC’s practice of calculating pose such legislation.
The Florida Senate Commerce mum wage. taxes on the wholesale rate rather than the full
Committee met on December 7 to hear Now, the booking price. Offshore Oil Drilling/Exploration and
a presentation by Lisa Echeverri, Ex- surging job- Hotels contract with Internet Third Party Inter- Energy Needs
ecutive Director of the Florida Depart- less rate is mediaries (TPIs), also known as Online Travel Oil Drilling and Everglades protection is
ment of Revenue concerning the severe imposing Companies (OTCs), such as Expedia, Orbitz, expected to top the list of environmental ques-
rate hikes expected in the unemploy- another Travelocity, and others, who arrange for the trans- tions during the political year ahead. Backers
ment compensation tax. The presenta- cost. It is fer of occupancy of accommodations. The hotel of drilling in Florida’s Gulf waters are gaining
tion by DOR is available on forcing offers the TPI/OTC rooms at a wholesale or dis- powerful advocates in the House and Senate.
www.frla.org. higher state counted rate (the “wholesale rate”), which the Some Florida lawmakers are renewing a
The increase in unemployment com- taxes on TPI/OTC marks up for sale to the consumer, push to allow oil and gas drilling within three
pensation in Florida is automatic under companies (sometimes referred to as the margin or facilitation miles of state shores. The Obama Administra-
state law. The increases were triggered to pay for unemployment insurance claims. The fee). tion has not taken a stand on offshore drilling
when the balance in the state's Unem- exact amounts for each business will be based on a RCS and FRLA support bills sponsored by off the coast of Florida.
ployment Compensation Trust Fund formula that includes benefits paid to its former Senator Don Gaetz and Representative Jimmy Pa- RCS and FRLA express concern that Off
fell below 4 percent of taxable payroll employees over the past three years. tronis regarding taxation issues involving transient Shore Oil and Gas Exploration along the Flor-
on June 30, 2009. The trust fund Several RCS and FRLA members are saying the travel and third party internet providers. ida coast could adversely affect the state’s tour-
dropped from more than $1.3 billion in extra costs make them less likely to hire. That could ism economy. Our lobbying team will con-
2008 to zero in August 2009. Since then be a worrisome sign for the economic recovery in Minimum Wage tinue to monitor any and all legislative propos-
the state has been borrowing $300 mil- Florida because small businesses create about 60 One goal of RCS and FRLA is to seek a legisla- als regarding Off Shore Oil and Gas Explora-
lion a month to pay unemployment percent of new jobs. Other employers say they will tive constitutional initiative to remove the consumer tion.
claims. cut the workforce or freeze pay. price index and the tipped wage requirements from
the current minimum wage law. Amendment 4
Florida is currently borrowing $300 Some 33 states will raise their unemployment Amendment 4 has finally gained enough
million a month from the Federal Gov- taxes this year. Most states reset their unemploy- Menu Labeling support to make it onto the November 2010
ernment to pay current unemployment ment insurance taxes at the end of each year, ac- Last year there ballot. If passed, the constitutional amendment
claims. As if businesses needed another cording to the National Association of State Work- were several pro- would require all proposed changes to a local
reason not to hire, consider their latest force Agencies. posals to force government's comprehensive plan be voted on
financial burden, the cost of rising un- additional require- by the general electorate of a government's
employment itself. Online Taxation
An Online Travel Company (OTC) calculates occu- ments on restau- jurisdiction.
Most of the tax increases are being rants and food If passed, it is expected to cause many
triggered by laws requiring higher taxes pancy taxes due for a hotel room stay based on the
wholesale cost of the room to the OTC rather than service establish- problems, confusion and lawsuits. The fear is
to make up for a decline in state funds ments. This year that cities already hurt by the economic crisis
to pay for benefits. Florida's minimum the total price the customer pays the OTC. This
practice by OTCs results in lower taxes collected by HB 783 - Relating will face even more growth problems, and the
unemployment tax, for instance, will to Prevention of proposed amendment will only hinder any pos-
skyrocket in 2010 from $8.40 annually state and local jurisdictions for a room booked
through an OTC rather than directly with a hotel Obesity by Repre- sible growth in the future.
to $100.30 per employee. This is almost