July 21, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
Amendment
Bill No. 2676
Amendment No. 409965
CHAMBER ACTION
Senate House
.
.
.






1Representative Bucher offered the following:
2
3     Amendment (with title amendment)
4     On page 23, remove lines 1 and 2, and insert:
5     Section 13.  Section 210.0205, Florida Statutes, is created
6to read:
7     210.0205  Nonsettling-manufacturer fee.--
8     (1)  As used in this section, the term:
9     (a)  "Brand family" means all styles of cigarettes sold
10under the same trademark and differentiated from one another by
11means of additional modifiers or descriptors, including, but not
12limited to, "menthol," "lights," "kings," and "100s." The term
13includes any brand name, alone or in conjunction with any other
14word; trademark; logo; symbol; motto; selling message;
15recognizable pattern of colors; or other indicia of product
16identification identical or similar to, or identifiable with, a
17previously known brand of cigarettes.
18     (b)  "Consumer Price Index" means the Consumer Price Index
19for All Urban Consumers as published by the Bureau of Labor
20Statistics of the United States Department of Labor.
21     (c)  "Manufacturer" means a person or entity who
22manufactures, fabricates, or assembles cigarettes. The term
23includes an entity that is the first importer into the United
24States of cigarettes manufactured abroad.
25     (d)  "Nonsettling manufacturer" means any tobacco product
26manufacturer that has not entered into the tobacco settlement
27agreement defined in s. 215.56005(1)(f), or the Attorney's
28General Settlement Agreement dated March 15,1996 in the State of
29Florida, et al. v. American Tobacco Company, et al., Fifteenth
30Judicial Circuit, Case No. 95-1466.
31     (e)  "Nonsettling-manufacturer cigarettes" means cigarettes
32manufactured by a nonsettling manufacturer, except when payments
33on such cigarettes are due to be made by a settling manufacturer
34pursuant to a tobacco settlement agreement described in
35paragraph (d).
36     (2)  A fee, in addition to all other taxes or fees of every
37kind imposed by law, is imposed upon the sale, receipt,
38purchase, possession, consumption, handling, distribution, and
39use in this state of nonsettling-manufactuer cigarettes to the
40package of which an agent affixes a stamp or stamp insignia as
41required by law or which are sold or purchased in the state but
42are not required to bear a stamp or stamp insignia of this
43state.  The fee is in the amount of 10 mills per cigarette in
44Fiscal Year 2004-2005, and 20 mills per cigarette in Fiscal Year
452005-2006. Beginning January 1, 2007, and on January 1 of each
46year thereafter, the division shall adjust the tax rate by the
47greater of 3 percent or the percentage change in the average of
48the Consumer Price Index issued by the United States Department
49of Labor for the most recent 12-month period ending September 30
50compared to the 12-month period ending September 30 of the prior
51year.
52     (3)  The division shall collect the fee once each month
53from each nonsettling manufacturer based on information received
54pursuant to subsection(6). The division shall mail to each
55nonsettling manufacturer not later than the 15th day of each
56month a notice of the fee due from that manufacturer for sales
57of its cigarettes made in the preceding month. Each such
58nonsettling manufacturer shall ensure that the division has
59received payment of the fee in full no later than the last day
60of the month in which the notice was mailed. Except as otherwise
61provided in this section, proceeds from the fee shall be
62deposited into the Tobacco Settlement Clearing Trust Fund and
63the fee shall be imposed, collected, paid, administered, and
64enforced in the same manner as the tax on cigarettes imposed by
65s. 210.02.
66     (4)  A nonsettling manufacturer selling cigarettes in this
67state on the effective date of this act shall provide to the
68division the information described in subsections (7) and (8)
69and pay the fee imposed by subsection (2) within 30 days after
70the effective date of this act. If a nonsettling manufacturer is
71not selling cigarettes in this state on the effective date of
72this act, before commencing sales of cigarettes in this state,
73the nonsettling manufacturer shall prepay the fee imposed by
74subsection (2). The prepayment amount shall be a sum determined
75by multiplying by 10 mills in Fiscal Year 2004-2005 and by 20
76mills in Fiscal Year 2005-2006 the number of cigarettes the
77division reasonably projects that the nonsettling manufacturer
78will sell in this state in the first calendar month or $50,000,
79whichever is more. The division may require a nonsettling
80manufacturer to provide any information reasonably necessary to
81determine the amount of the prepayment fee and, in the case of
82prepayment, shall establish procedures for providing
83reimbursement to nonsettling manufacturers if actual sales are
84less than sales projected by the division and for additional
85payment by nonsettling manufacturers if actual sales are greater
86than sales projected by the division. As used in this
87subsection, the term "cigarettes" refers only to nonsettling-
88manufacturer cigarettes.
89     (5)  The purposes of the fee are to:
90     (a)  Prevent nonsettling manufacturers from undermining the
91state's policy of reducing underage smoking by offering
92cigarettes for sale substantially below the price of cigarettes
93of other manufacturers.
94     (b)1.  Protect the tobacco settlement agreement, as defined
95in s. 215.56005(1)(f), and funding, which is reduced as a result
96of the growth of nonsettling-manufacturer cigarette sales, for
97programs funded in whole or in part by payments to the state
98under the tobacco settlement agreement; and
99     2.  Recoup for the state settlement-payment revenue lost to
100the state as a result of nonsettling-manufacturer cigarette
101sales.
102     (c)  Fund enforcement and administration of nonsettling-
103manufacturer legislation and the fee imposed by this section,
104including reasonable administrative costs incurred by wholesale
105dealers complying with any additional reporting requirements
106necessitated by this section.
107     (d)  Fund such other purposes as the Legislature
108determines; however, $16 million of the proceeds received under
109this act shall be provided annually through quarterly
110disbursements to the Department of Health, for the purposes of
111implementing a statewide anti-smoking marketing, educational and
112advertising campaign to reduce youth tobacco use. The Department
113of Health shall conduct surveillance and evaluations to measure
114program performance and improve implementation strategies. The
115Department of Health may contract for any of the activities
116specified in this section.
117     (6)  Monthly reports shall be made to the division pursuant
118to s. 210.09(2) by each agent and wholesaler. Such reports shall
119state the number and denominations of stamps or stamp insignia
120affixed to individual packages of nonsettling-manufacturer
121cigarettes and the number of individual packages of nonsettling-
122manufacturer cigarettes otherwise sold or purchased in this
123state or otherwise handled or distributed in this state for sale
124in another state, commonwealth, or territory of the United
125States, by manufacturer and brand family, sold for each place of
126business in the month preceding the month in which the report is
127made. The division may adopt rules requiring any agent,
128wholesaler, wholesale dealer, or nonsettling manufacturer to
129provide in the monthly report any information necessary or
130appropriate to determing the fee due under subsection (2) or to
131enforcing this act.
132     (7)  Before commencing sales of cigarettes in this state
133or, if selling cigarettes in this state on the effective date of
134this act, within 30 days after the effective date of this act, a
135nonsettling manufacturer shall provide to the division, on a
136form prescribed by the division:
137     (a)  The complete name, address, and telephone number of
138the nonsettling manufacturer.
139     (b)  The date the nonsettling manufacturer began or intends
140to begin selling cigarettes in this state.
141     (c)  The names of the brand families of the cigarettes the
142nonsettling manufacturer is selling or will sell in this state.
143     (d)  A statement of the nonsettling manufacturer's
144intention to comply with the obligations imposed by this
145section.
146     (e)  The name, address, telephone number, and signature of
147an officer of the nonsettling manufacturer attesting to all of
148the information described in this subsection.
149     (8)  Each nonsettling manufacturer subject to the fee
150imposed by subsection (2) shall certify to the division on the
151first day of each month that the manufacturer is in compliance
152with this section and has paid in full the fee imposed by
153subsection (2). The division shall develop, maintain, and
154publish on its Internet website a directory listing all
155nonsettling manufacturers that have provided current, accurate,
156and complete certifications. The division shall provide a copy
157of the list to any person upon request.
158     (9)  Cigarettes of a nonsettling manufacturer that has not
159paid a fee imposed by subsection (2), or that has not complied
160with the reporting requirements of subsections (4), (6), (7),
161and (8), shall be treated as cigarettes for which the tax
162imposed by s. 210.02 has not been paid. A person shall not affix
163to any package of nonsetttling-manufacturer cigarettes the stamp
164required under s. 210.06, or otherwise purchase or sell such
165cigarettes, after such person receives notice from the division
166that the nonsettling manufacturer of such cigarettes has not
167paid in full the fee imposed by subsection (2) or if the
168nonsettling manufacturer is not listed on the division's
169directory described in subsection (8).
170     Section 14.  Subsections (6) and (7) of section 210.01,
171Florida Statutes, are amended, and subsections (19) through (23)
172are added to that section, to read:
173     210.01  Definitions.--When used in this part the following
174words shall have the meaning herein indicated:
175     (6)  "Wholesale dealer" means any person located inside or
176outside this state who sells cigarettes to retail dealers or
177other persons for purposes of resale only, or any person who
178operates more than one cigarette vending machine located in more
179than one place of business. Such term shall not include any
180cigarette manufacturer, export warehouse proprietor, or importer
181with a valid permit under 26 U.S.C. s. 5712 if such person sells
182or distributes cigarettes in this state only to dealers who are
183agents and who hold valid and current permits under s. 210.15 or
184to any cigarette manufacturer, export warehouse proprietor, or
185importer who holds a valid and current permit under 26 U.S.C. s.
1865712.
187     (7)  "Retail dealer" means any person located inside or
188outside this state other than a wholesale dealer engaged in the
189business of selling cigarettes, including persons licensed
190pursuant to s. 569.003.
191     (19)  "Stamp" or "stamps" means the indicia required to be
192placed on cigarette packages that evidences payment of the tax
193on cigarettes under s. 210.02.
194     (20)  "Importer" means any person with a valid permit under
19526 U.S.C. s. 5712 who imports into the United States, directly
196or indirectly, a finished cigarette for sale or distribution.
197     (21)  "Manufacturer" means any person with a valid permit
198under 26 U.S.C. s. 5712 who manufactures, fabricates, assembles,
199processes, or labels a finished cigarette.
200     (22)  "Counterfeit cigarettes" means cigarettes that have
201false manufacturing labels, tobacco product packs with
202counterfeit tax stamps, or any combination thereof.
203     (23)  "Brand family" means all styles of cigarettes sold
204under the same trademark and differentiated from one another by
205means of additional modifiers or descriptors, including, but not
206limited to, "menthol," "lights," "kings," and "100s," and
207includes any brand name used alone or in conjunction with any
208other word, trademark, logo, symbol, motto, selling message,
209recognizable pattern of colors, or any other indicia of product
210identification identical or similar to, or identifiable with, a
211previously known brand of cigarettes.
212     Section 15.  Subsection (6) is added to section 210.05,
213Florida Statutes, to read:
214     210.05  Preparation and sale of stamps; discount.--
215     (6)(a)  A person may not transport or cause to be
216transported from this state cigarettes for sale in another state
217without first affixing to the cigarettes the stamp required by
218the state in which the cigarettes are to be sold or paying any
219other excise tax on the cigarettes imposed by the state in which
220the cigarettes are to be sold.
221     (b)  A person may not affix to cigarettes the stamp
222required by another state or pay any other excise tax on the
223cigarettes imposed by another state if the other state prohibits
224stamps from being affixed to the cigarettes, prohibits the
225payment of any other excise tax on the cigarettes, or prohibits
226the sale of the cigarettes.
227     (c)  The requirements of paragraphs (a) and (b) do not
228apply to cigarettes with respect to which the manufacturer or
229importer either is a participating manufacturer (as defined in
230section II(jj) of the master settlement agreement) or is in full
231compliance with the qualifying statute (as defined in section
232IX(d)(2)(E) of the master settlement agreement) of the state in
233which the cigarettes are to be sold. An exemption pursuant to
234this paragraph may only be asserted with respect to cigarettes
235that, in the case of a participating manufacturer, are deemed to
236be its cigarettes for purposes of calculating its payments under
237the master settlement agreement for the relevant year in the
238volumes and shares determined pursuant to the master settlement
239agreement, and, in the case of all other manufacturers and
240importers, are deemed to be its cigarettes for purposes of the
241applicable qualifying statute. For purposes of this subsection
242the term "master settlement agreement" means the settlement
243agreement (and related documents) entered into in 1998 by 46
244states and leading United States tobacco manufacturers. A person
245asserting an exemption pursuant to this paragraph shall submit
246the reports required by paragraph (d) and shall certify as
247provided in that paragraph.
248     (d)  On or before the 10th day of each month, a person who
249transports or causes to be transported from this state
250cigarettes for sale in another state shall submit to the
251division a report identifying the quantity and brand family of
252each brand of the cigarettes transported or caused to be
253transported in the preceding calendar month and the name and
254address of each recipient of the cigarettes. Such person shall
255also certify under oath and subject to the penalties of perjury
256that:
257     1.  The stamps required by paragraph (a) have been affixed
258in accordance with that paragraph or that such stamps were not
259affixed pursuant to paragraph (b); or
260     2.  Such person satisfies the requirements of paragraph
261(c).
262     (e)  For purposes of this section, the term "person" means
263an individual, partnership, committee, association, corporation,
264or any other organization or group of persons. Person does not
265include any common or contract carrier, or public warehouse that
266is not owned, in whole or in part, directly or indirectly, by
267the person transporting the cigarettes or causing the transport
268to be made.
269     (f)  This subsection shall not be deemed to authorize the
270possession or transportation of cigarettes by any person not so
271authorized by another provision of this part.
272     Section 16.  Subsection (1) of section 210.06, Florida
273Statutes, is amended, and subsection(5) is added to that
274section, to read:
275     210.06  Affixation of stamps; presumption.--
276     (1)  Every dealer within or without the state shall affix
277or cause to be affixed to such package or container of such
278cigarettes such, stamps as are required under this section
279within 10 days after receipt of such products. Dealers outside
280this state shall affix such stamps before the shipment of
281cigarettes into this state, evidencing the payment of the tax
282imposed by virtue of this part before such cigarettes are
283offered for sale or use or consumed or before they are otherwise
284disposed of in the state.
285     (a)  A tax stamp shall be applied to all cigarette packages
286intended for sale or distribution to consumers subject to the
287tax imposed under s. 210.02, except as otherwise provided in
288this act.
289     (b)  No stamp shall be applied to any cigarette package
290exempt from tax under 26 U.S.C. s. 5704 that is distributed by a
291manufacturer pursuant to federal regulations.
292     (c)  Dealers may apply stamps only to cigarette packages
293received directly from a manufacturer or importer of cigarettes
294who possesses a valid and current permit under 26 U.S.C. s.
2955712.
296     (5)  Except as provided in s. 210.09(1), no person, other
297than a dealer that receives unstamped cigarette packages
298directly from a cigarette manufacturer or importer in accordance
299with this section and s. 210.085, shall hold or possess an
300unstamped cigarette package. Dealers shall be permitted to set
301aside, without application of stamps, only such part of the
302dealer's stock that is identified for sale or distribution
303outside this state. If a dealer maintains stocks of unstamped
304cigarette packages, such unstamped packages shall be stored
305separately from stamped product packages. No unstamped cigarette
306packages shall be transferred by a dealer to another facility of
307the dealer within this state or to another person within this
308state.
309     Section 17.  Section 210.085, Florida Statutes, is created
310to read:
311     210.085  Transactions only with permitted manufacturers,
312importers, distributing agents, dealers, and retail dealers. A
313manufacturer, importer, or distributing agent may sell or
314distribute cigarettes to a person located or doing business
315within this state only if such person is a dealer with a valid,
316current permit under s. 210.15. A dealer may sell or distribute
317cigarettes to a person located or doing business within this
318state only if such person is a dealer or retail dealer with a
319valid, current permit under s. 569.003. A dealer may obtain
320cigarettes only from a manufacturer or importer who possesses a
321valid, current permit under 26 U.S.C. s. 5712 or from a
322distributing agent or dealer with a valid, current permit under
323s. 210.15. A retail dealer may obtain cigarettes only from a
324manufacturer, importer, or dealer with a valid, current permit
325under s. 210.15.
326     Section 18.  Subsection (1) of section 210.09, Florida
327Statutes, is amended to read:
328     210.09  Records to be kept; reports to be made;
329examination.--
330     (1)(a)  Every person who shall possess or transport any
331unstamped cigarettes upon the public highways, roads, or streets
332of the state, shall be required to have in his or her actual
333possession invoices or delivery tickets for such cigarettes. The
334absence of such invoices or delivery tickets shall be prima
335facie evidence that such person is a dealer in cigarettes in
336this state and subject to the provisions of this part.
337     (b)  Any person who ships unstamped cigarette packages into
338this state other than to a manufacturer, importer, or dealer
339holding a valid, current permit pursuant to s. 210.15 shall
340first file with the division a notice of such shipment. This
341paragraph shall not apply to any common or contract carrier that
342is transporting cigarettes through this state to another
343location outside this state under a proper bill of lading or
344freight bill that states the quantity, source, and destination
345of such cigarettes.
346     (c)  In any case in which the division or its duly
347authorized agent, or any law enforcement officer of this state,
348has knowledge or reasonable grounds to believe that any vehicle
349is transporting cigarettes in violation of this part, the
350division, such agent, or such law enforcement officer is
351authorized to stop such vehicle and inspect the vehicle for
352contraband cigarettes.
353     Section 19.  Subsection (1) of section 210.12, Florida
354Statutes, is amended, subsections(2) through (6) of that section
355are renumbered as subsections (4) through (8), respectively, and
356new subsections (2) and (3) are added to that section, to read:
357     210.12  Seizures; forfeiture proceedings.--
358     (1)  The state, acting by and through the division, shall
359be authorized and empowered to seize, confiscate, and forfeit
360for the use and benefit of the state, any cigarettes upon which
361taxes payable hereunder may be unpaid or that are otherwise held
362in violation of the requirements of this chapter, and also any
363vending machine or receptacle in which such cigarettes upon
364which taxes have not been paid are held for sale, or any vending
365machine that does not have affixed thereto the identification
366sticker required by the provisions of s. 210.07, or which does
367not display at all times at least one package of each brand of
368cigarettes located therein so the same is clearly visible and
369arranged in such a manner that the cigarette tax stamp or meter
370impression of the stamp affixed thereto is clearly visible. Such
371seizure may be made by the division, its duly authorized
372representative, any sheriff or deputy sheriff, or any police
373officer.
374     (2)  All fixtures, equipment, and other materials and
375personal property on the premises of any dealer or retail dealer
376who, with intent to defraud the state, fails to keep or make any
377record, return, report, or inventory required by this part;
378keeps or makes any false or fraudulent record, return, report,
379or inventory required by this part; refuses to pay any tax
380imposed by this part; or attempts in any manner to evade or
381defeat the requirements of this part shall be forfeited to the
382state.
383     (3)  All cigarettes seized, confiscated, and forfeited to
384the state under this part shall be destroyed.
385     Section 20.  Subsection (1) of section 210.15, Florida
386Statutes, is amended to read:
387     210.15  Permits.--
388     (1)(a)  Every person, firm, or corporation desiring to
389engage in business as a manufacturer, importer, exporter,
390distributing agent, or wholesale dealer of cigarettes deal in
391cigarettes as a distributing agent, wholesale dealer, or
392exporter within this state shall file with the division an
393application for a cigarette permit for each place of business
394located within this state or, in the absence of such place of
395business in this state, for wherever its principal place of
396business is located with the Division of Alcoholic Beverages and
397Tobacco. Every application for a cigarette permit shall be made
398on forms furnished by the division and shall set forth the name
399under which the applicant transacts or intends to transact
400business, the location of the applicant's place of business
401within the state, if any, and such other information as the
402division may require. If the applicant has or intends to have
403more than one place of business dealing in cigarettes within
404this state, the application shall state the location of each
405place of business. If the applicant is an association, the
406application shall set forth the names and addresses of the
407persons constituting the association, and if a corporation, the
408names and addresses of the principal officers thereof and any
409other information prescribed by the division for the purpose of
410identification. The application shall be signed and verified by
411oath or affirmation by the owner, if a natural person, and in
412the case of an association or partnership, members or partners
413thereof, and in the case of a corporation, by an executive
414officer thereof or by any person specifically authorized by the
415corporation to sign the application, to which shall be attached
416the written evidence of this authority. The cigarette permit for
417a distributing agent shall be issued annually for which an
418annual fee of $5 shall be charged.
419     (b)  The holder of any duly issued, annual permit for a
420distributing agent shall be entitled to a renewal of his or her
421annual permit from year to year as a matter of course, on or
422before July 1, upon making application to the division and upon
423payment of this annual permit fee.
424     (c)  Permits The permit for a distributing agent, wholesale
425dealer, or exporter shall be issued only to persons of good
426moral character, who are not less than 18 years of age.
427Distributing agent, wholesale dealer, or exporter Permits to
428corporations shall be issued only to corporations whose officers
429are of good moral character and not less than 18 years of age.
430There shall be no exemptions from the permit fees herein
431provided to any persons, association of persons, or corporation,
432any law to the contrary notwithstanding.
433     (d)  No distributing agent, wholesale dealer, or exporter
434permit shall be issued, maintained, or renewed if the applicant,
435its officers, or any person or persons owning directly or
436indirectly, in the aggregate, more than 10 percent of the
437ownership interests in the applicant:
438     1.  Owes $500 or more in delinquent cigarette taxes;
439     2.  Had a cigarette importer, retail dealer, or dealer
440permit revoked by the division within the previous 2 years;
441     3.  Has been convicted of selling stolen or counterfeit
442cigarettes, receiving stolen cigarettes, or being involved in
443the counterfeiting of cigarettes; or
444     4.  Has to any person who has been convicted within the
445past 5 years of any offense against the cigarette laws of this
446state or who has been convicted in this state, any other state,
447or the United States during the past 5 years of any offense
448designated as a felony by such state or the United States, or to
449a corporation, any of whose officers have been so convicted. The
450term "convicted" "conviction" shall include an adjudication of
451guilt on a plea of guilty or a plea of nolo contendere, or the
452forfeiture of a bond when charged with a crime.
453     (e)(d)  The division may refuse to issue a distributing
454agent, wholesale, or exporter permit to any person, firm, or
455corporation whose permit under the cigarette law has been
456revoked or to any corporation, an officer of which has had his
457or her permit under the cigarette law revoked, or to any person
458who is or has been an officer of a corporation whose permit has
459been revoked under the cigarette law. Any permit issued to a
460firm or corporation prohibited from obtaining such permit under
461the cigarette law may be revoked by the division.
462     (f)(e)  Prior to an application for a distributing agent,
463wholesale dealer, or exporter permit being approved, the
464applicant shall file a set of fingerprints on forms provided by
465the division. The applicant shall also file a set of
466fingerprints for any person or persons interested directly or
467indirectly with the applicant in the business for which the
468permit is being sought, when so required by the division. If the
469applicant or any person interested with the applicant, either
470directly or indirectly, in the business for which the permit is
471sought shall be such a person as is within the definition of
472persons to whom a distributing agent, wholesale dealer, or
473exporter permit shall be denied, then the application may be
474denied by the division. If the applicant is a partnership, all
475members of the partnership are required to file said
476fingerprints, or if a corporation, all principal officers of the
477corporation are required to file said fingerprints. The
478cigarette permit for a wholesale dealer or exporter shall be
479originally issued at a fee of $100, which sum is to cover the
480cost of the investigation required before issuing such permit.
481     (g)(f)  The cigarette permits issued under this section
482permit for a wholesale dealer or exporter shall be renewed from
483year to year as a matter of course, at an annual cost of $100,
484on or before July 1, upon making application to the division and
485upon payment of the annual renewal fee.
486     (h)(g)  Permittees, by acceptance of their permits, agree
487that their places of business or vehicles transporting
488cigarettes shall always be subject to be inspected and searched
489without a search warrant for the purpose of ascertaining that
490all provisions of this part are complied with by authorized
491employees of the division and also by sheriffs, deputy sheriffs,
492and police officers during business hours or during any other
493time such premises are occupied by the permittee or other
494persons. Retail cigarette dealers and manufacturers'
495representatives, by dealing in cigarettes, agree that their
496places of business or vehicles transporting cigarettes shall
497always be subject to inspection and search without a search
498warrant for the purpose of ascertaining that all provisions of
499this part are complied with by authorized employees of the
500division and also by sheriffs, deputy sheriffs, and police
501officers during business hours or other times when the premises
502are occupied by the retail dealer or manufacturers'
503representatives or other persons.
504     (i)(h)  No retail sales of cigarettes may be made at a
505location for which a wholesale dealer, distributing agent, or
506exporter permit has been issued. The excise tax on sales made to
507any traveling location, such as an itinerant store or industrial
508caterer, shall be paid into the General Revenue Fund
509unallocated. Cigarettes may be purchased for retail purposes
510only from a person holding a wholesale dealer permit. The
511invoice for the purchase of cigarettes must show the place of
512business for which the purchase is made and the cigarettes
513cannot be transferred to any other place of business for the
514purpose of resale.
515     Section 21.  Subsections (2), (3), and (6) of section
516210.18, Florida Statutes, are amended, and subsection (9) is
517added to that section, to read:
518     210.18  Penalties for tax evasion; reports by sheriffs.--
519     (2)  Except as otherwise provided in this section, any
520person wholesale or retail dealer who fails, neglects, or
521refuses to comply with, or violates the provisions of, this part
522or the rules adopted and regulations promulgated by the division
523under this part commits is guilty of a misdemeanor of the first
524degree, punishable as provided in s. 775.082 or s. 775.083. Any
525person wholesale or retail dealer who has been convicted of a
526violation of any provision of the cigarette tax law and who is
527thereafter convicted of a further violation of the cigarette tax
528law is, upon conviction of such further offense, guilty of a
529felony of the third degree, punishable as provided in s.
530775.082, s. 775.083, or s. 775.084.
531     (3)  Any person who falsely or fraudulently makes, forges,
532alters, or counterfeits any stamp or impression die used in
533meter machines prescribed by the division under the provisions
534of this part; or, with intent to evade taxes, jams, tampers
535with, or alters such a machine; or causes or procures to be
536falsely or fraudulently made, forged, altered, or counterfeited
537any such stamp or die; or knowingly and willfully utters,
538purchases, passes or tenders as true any such false, altered, or
539counterfeited stamp or die impression; or with the intent to
540defraud the state, fails to comply with any other requirement of
541this chapter commits is guilty of a felony of the third degree,
542punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
543     (6)(a)  Every person, firm, or corporation, other than a
544licensee under the provisions of this part, who possesses,
545removes, deposits, or conceals, or aids in the possessing,
546removing, depositing, or concealing of, any unstamped cigarettes
547not in excess of 50 cartons is guilty of a misdemeanor of the
548second degree, punishable as provided in s. 775.082 or s.
549775.083. In lieu of the penalties provided in those sections,
550however, the person, firm, or corporation may pay the tax plus a
551penalty equal to the amount of the tax authorized under s.
552210.02 on the unstamped cigarettes.
553     (a)(b)  Every person, firm, or corporation, other than a
554licensee under the provisions of this part, who possesses,
555removes, deposits, or conceals, or aids in the possessing,
556removing, depositing, or concealing of, any unstamped cigarettes
557in excess of 50 cartons is presumed to have knowledge that they
558have not been taxed and commits is guilty of a felony of the
559third degree, punishable as provided in s. 775.082, s. 775.083,
560or s. 775.084.
561     (b)(c)  This section does not apply to a person possessing
562not in excess of three cartons of such cigarettes purchased by
563such possessor outside the state in accordance with the laws of
564the place where purchased and brought into this state by such
565possessor. The burden of proof that such cigarettes were
566purchased outside the state and in accordance with the laws of
567the place where purchased shall in all cases be upon the
568possessor of such cigarettes.
569     (9)  Notwithstanding any other provision of law, the sale
570or possession for sale of counterfeit cigarettes by any person
571or by a manufacturer, importer, distributing agent, wholesale
572dealer, or retail dealer shall result in the seizure of the
573product and related machinery by the division or any law
574enforcement agency and shall be punishable as follows:
575     (a)1.  A first violation with a total quantity of less than
576two cartons of cigarettes or the equivalent amount of other
577cigarettes shall be punishable by a fine not to exceed $1,000 or
578five times the retail value of the cigarettes involved,
579whichever is greater, or imprisonment not to exceed 5 years, or
580both.
581     2.  A subsequent violation with a total quantity of less
582than two cartons of cigarettes or the equivalent amount of other
583cigarettes shall be punishable by a fine not to exceed $5,000 or
584five times the retail value of the cigarettes involved,
585whichever is greater, or imprisonment not to exceed 5 years, or
586both, and shall also result in the revocation by the division of
587the permit of the manufacturer, importer, distributing agent,
588wholesale dealer, or retail dealer.
589     (b)1.  A first violation with a total quantity of two or
590more cartons of cigarettes or the equivalent amount of other
591cigarettes shall be punishable by a fine not to exceed $2,000 or
592five times the retail value of the cigarettes involved,
593whichever is greater, or imprisonment not to exceed 5 years, or
594both.
595     2.  A subsequent violation with a quantity of two cartons
596of cigarettes or more or the equivalent amount of other
597cigarettes shall be punishable by a fine not to exceed $50,000
598or five times the retail value of the cigarettes involved,
599whichever is greater, or imprisonment not to exceed 5 years, or
600both, and shall also result in the revocation by the division of
601the permit of the manufacturer, importer, distributing agent,
602wholesale dealer, or retail dealer.
603
604For purposes of this subsection, any counterfeit cigarettes
605seized by the division shall be destroyed.
606     Section 22.  Section 210.181, Florida Statutes, is created
607to read:
608     210.181  Civil penalties.--
609     (1)  Whoever knowingly omits, neglects, or refuses to
610comply with any duty imposed upon him or her by this part, or to
611do or cause to be done any of the things required by this part,
612or does anything prohibited by this part shall, in addition to
613any other penalty provided in this part, be liable for a fine of
614$1,000 or five times the retail value of the cigarettes
615involved, whichever is greater.
616     (2)  Whoever fails to pay any tax imposed by this part at
617the time prescribed by law or rules shall, in addition to any
618other penalty provided in this part, be liable for a penalty of
619five times the unpaid tax due.
620     Section 23.  For the purpose of incorporating the amendment
621made by this act to section 210.18, Florida Statutes, in a
622reference thereto, paragraph (a) of subsection(1) of section
623772.102, Florida Statutes, is reenacted to read:
624     772.102  Definitions.--As used in this chapter, the term:
625     (1)  "Criminal activity" means to commit, to attempt to
626commit, to conspire to commit, or to solicit, coerce, or
627intimidate another person to commit:
628     (a)  Any crime which is chargeable by indictment or
629information under the following provisions:
630     1.  Section 210.18, relating to evasion of payment of
631cigarette taxes.
632     2.  Section 414.39, relating to public assistance fraud.
633     3.  Section 440.105 or s. 440.106, relating to workers'
634compensation.
635     4.  Part IV of chapter 501, relating to telemarketing.
636     5.  Chapter 517, relating to securities transactions.
637     6.  Section 550.235, s. 550.3551, or s. 550.3605, relating
638to dogracing and horseracing.
639     7.  Chapter 550, relating to jai alai frontons.
640     8.  Chapter 552, relating to the manufacture, distribution,
641and use of explosives.
642     9.  Chapter 562, relating to beverage law enforcement.
643     10.  Section 624.401, relating to transacting insurance
644without a certificate of authority, s. 624.437(4)(c)1., relating
645to operating an unauthorized multiple-employer welfare
646arrangement, or s. 626.902(1)(b), relating to representing or
647aiding an unauthorized insurer.
648     11.  Chapter 687, relating to interest and usurious
649practices.
650     12.  Section 721.08, s. 721.09, or s. 721.13, relating to
651real estate timeshare plans.
652     13.  Chapter 782, relating to homicide.
653     14.  Chapter 784, relating to assault and battery.
654     15.  Chapter 787, relating to kidnapping.
655     16.  Chapter 790, relating to weapons and firearms.
656     17.  Section 796.03, s. 796.04, s. 796.05, or s. 796.07,
657relating to prostitution.
658     18.  Chapter 806, relating to arson.
659     19.  Section 810.02(2)(c), relating to specified burglary
660of a dwelling or structure.
661     20.  Chapter 812, relating to theft, robbery, and related
662crimes.
663     21.  Chapter 815, relating to computer-related crimes.
664     22.  Chapter 817, relating to fraudulent practices, false
665pretenses, fraud generally, and credit card crimes.
666     23.  Section 827.071, relating to commercial sexual
667exploitation of children.
668     24.  Chapter 831, relating to forgery and counterfeiting.
669     25.  Chapter 832, relating to issuance of worthless checks
670and drafts.
671     26.  Section 836.05, relating to extortion.
672     27.  Chapter 837, relating to perjury.
673     28.  Chapter 838, relating to bribery and misuse of public
674office.
675     29.  Chapter 843, relating to obstruction of justice.
676     30.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
677s. 847.07, relating to obscene literature and profanity.
678     31.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
679849.25, relating to gambling.
680     32.  Chapter 893, relating to drug abuse prevention and
681control.
682     33.  Section 914.22 or s. 914.23, relating to witnesses,
683victims, or informants.
684     34.  Section 918.12 or s. 918.13, relating to tampering
685with jurors and evidence.
686     Section 24.  For the purpose of incorporating the amendment
687made by this act to section 210.18, Florida Statutes, in a
688reference thereto, paragraph (a) of subsection(1) of section
689895.02, Florida Statutes, is reenacted to read:
690     895.02  Definitions.--As used in ss. 895.01-895.08, the
691term:
692     (1)  "Racketeering activity" means to commit, to attempt to
693commit, to conspire to commit, or to solicit, coerce, or
694intimidate another person to commit:
695     (a)  Any crime which is chargeable by indictment or
696information under the following provisions of the Florida
697Statutes:
698     1.  Section 210.18, relating to evasion of payment of
699cigarette taxes.
700     2.  Section 403.727(3)(b), relating to environmental
701control.
702     3.  Section 414.39, relating to public assistance fraud.
703     4.  Section 409.920, relating to Medicaid provider fraud.
704     5.  Section 440.105 or s. 440.106, relating to workers'
705compensation.
706     6.  Sections 499.0051, 499.0052, 499.0053, 499.0054, and
707499.0691, relating to crimes involving contraband and
708adulterated drugs.
709     7.  Part IV of chapter 501, relating to telemarketing.
710     8.  Chapter 517, relating to sale of securities and
711investor protection.
712     9.  Section 550.235, s. 550.3551, or s. 550.3605, relating
713to dogracing and horseracing.
714     10.  Chapter 550, relating to jai alai frontons.
715     11.  Chapter 552, relating to the manufacture,
716distribution, and use of explosives.
717     12.  Chapter 560, relating to money transmitters, if the
718violation is punishable as a felony.
719     13.  Chapter 562, relating to beverage law enforcement.
720     14.  Section 624.401, relating to transacting insurance
721without a certificate of authority, s. 624.437(4)(c)1., relating
722to operating an unauthorized multiple-employer welfare
723arrangement, or s. 626.902(1)(b), relating to representing or
724aiding an unauthorized insurer.
725     15.  Section 655.50, relating to reports of currency
726transactions, when such violation is punishable as a felony.
727     16.  Chapter 687, relating to interest and usurious
728practices.
729     17.  Section 721.08, s. 721.09, or s. 721.13, relating to
730real estate timeshare plans.
731     18.  Chapter 782, relating to homicide.
732     19.  Chapter 784, relating to assault and battery.
733     20.  Chapter 787, relating to kidnapping.
734     21.  Chapter 790, relating to weapons and firearms.
735     22.  Section 796.03, s. 796.04, s.  796.05, or s. 796.07,
736relating to prostitution.
737     23.  Chapter 806, relating to arson.
738     24.  Section 810.02(2)(c), relating to specified burglary
739of a dwelling or structure.
740     25.  Chapter 812, relating to theft, robbery, and related
741crimes.
742     26.  Chapter 815, relating to computer-related crimes.
743     27.  Chapter 817, relating to fraudulent practices, false
744pretenses, fraud generally, and credit card crimes.
745     28.  Chapter 825, relating to abuse, neglect, or
746exploitation of an elderly person or disabled adult.
747     29.  Section 827.071, relating to commercial sexual
748exploitation of children.
749     30.  Chapter 831, relating to forgery and counterfeiting.
750     31.  Chapter 832, relating to issuance of worthless checks
751and drafts.
752     32.  Section 836.05, relating to extortion.
753     33.  Chapter 837, relating to perjury.
754     34.  Chapter 838, relating to bribery and misuse of public
755office.
756     35.  Chapter 843, relating to obstruction of justice.
757     36.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
758s. 847.07, relating to obscene literature and profanity.
759     37.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
760849.25, relating to gambling.
761     38.  Chapter 874, relating to criminal street gangs.
762     39.  Chapter 893, relating to drug abuse prevention and
763control.
764     40.  Chapter 896, relating to offenses related to financial
765transactions.
766     41.  Sections 914.22 and 914.23, relating to tampering with
767a witness, victim, or informant, and retaliation against a
768witness, victim, or informant.
769     42.  Sections 918.12 and 918.13, relating to tampering with
770jurors and evidence.
771     Section 25.  For the 2004-2005 fiscal year, the sum of
772$480,028 is appropriated from the Alcoholic Beverage and Tobacco
773Trust Fund and four full-time equivalent positions are
774authorized to be established by the Department of Business and
775Professional Regulation for the purpose of conducting regulatory
776activities related to the transportation and sale of cigarettes.
777     Section 26.  From the funds generated by this act, the sum
778of $2 million is appropriated to the Department of Health to
779address health care disparities in the minority community.
780     Section 27.  Subsection (2) of section 17.41, Florida
781Statutes, is amended to read:
782     17.41  Department of Financial Services Tobacco Settlement
783Clearing Trust Fund.--
784     (2)  Funds to be credited to the Tobacco Settlement
785Clearing Trust Fund shall consist of payments received by the
786state from settlement of State of Florida v. American Tobacco
787Co., No. 95-1466AH (Fla. 15th Cir. Ct. 1996) and fees from the
788nonsettling-manufacturer fee collected pursuant to s. 210.0205.
789Moneys received from the settlement and fees and deposited into
790the trust fund are exempt from the service charges imposed under
791s. 215.20.
792
793Proceeds shall be distributed for restoring services, to
794individuals receiving residential habilitation and adult day
795training services under the Developmental Disabilities Home and
796Community Based Services Waiver whose services were reduced on
797November 1, 2004.
798     Section 28.  This act shall take effect upon becoming a
799law.
800
801================= T I T L E  A M E N D M E N T =================
802     On page 2, remove line 15, and insert:
803creating s. 210.0205, F.S.; providing definitions;
804imposing a fee on certain cigarettes; providing payment
805requirements; requiring reporting of the number and
806denominations of stamps affixed to individual packages of
807certain cigarettes by manufacturer and brand family;
808authorizing rulemaking regarding such reports; requiring
809registration with the Division of Alcoholic Beverages and
810Tobacco of the Department of Business and Professional
811Regulation of nonsettling manufacturers of cigarettes;
812requiring development, maintenance, and publication by the
813division of a list of nonsettling manufacturers of
814cigarettes which have certified their compliance with this
815act; treating cigarettes of certain manufacturers that
816have not paid the fee imposed by this act or that have not
817complied with reporting requirements as cigarettes for
818which the tax imposed by s. 210.02, F.S., has not been
819paid; prohibiting the stamping of certain cigarettes for
820which the fee imposed by this act has not been paid in
821full or the nonsettling manufacturer of which has not
822complied with reporting requirements; amending s. 210.01,
823F.S.; revising and providing definitions; amending s.
824210.05, F.S.; providing stamp requirements for cigarettes
825in transport; providing stamp exceptions for certain
826cigarettes; requiring transporters of certain cigarettes
827to submit certain reports; amending s. 210.06, F.S.;
828revising requirements for and limitations on the
829affixation of stamps; providing requirements with respect
830to receipt, possession, storage, and transport of
831unstamped cigarette packages; creating s. 210.085, F.S.;
832requiring manufacturers, importers, distributing agents,
833dealers, and retail dealers to hold a current, valid
834permit to sell, distribute, or receive cigarettes;
835amending s. 210.09, F.S.; providing notice and filing
836guidelines for certain person shipping unstamped cigarette
837packages; authorizing certain law enforcement officials to
838inspect certain shipping vehicles; amending s. 210.12,
839F.S.; authorizing the state to claim certain property and
840materials from certain dealers and retailers who attempt
841to defraud the state; authorizing the destruction of
842certain cigarettes; amending s. 210.15, F.S.; providing
843criteria for permit application; prohibiting issuance,
844maintenance, or renewal of certain permits for certain
845applicants; providing guidelines for permit application
846denial; amending s. 210.18, F.S.; expanding the group of
847violators subject to criminal liability; prohibiting the
848sale or possession for sale of counterfeit cigarettes;
849providing penalties; creating s. 210.181, F.S.; providing
850civil penalties for failure to comply with certain duties
851or pay certain taxes; reenacting ss. 772.102(1)(a) and
852895.02(1)(a), F.S., relating to crimes constituting a
853"criminal activity" and definitions as used in the Florida
854RICO Act, to incorporate the amendment to s. 210.18, F.S.,
855in references thereto; providing an appropriation and
856authorizing positions; providing an appropriation to the
857Department of Health; providing purposes; amending s.
85817.41, F.S.; providing additional source of revenue to the
859Tobacco Settlement Trust Fund; requiring proceeds to be
860distributed to certain individuals for restoration
861services; providing an effective date.
862
863     WHEREAS, it is the intent of the Legislature to prevent
864nonsettling manufacturers from undermining the state's policy of
865reducing underage smoking by offering their cigarettes for sale
866substantially below the price of cigarettes of other
867manufacturers; to protect the tobacco settlement agreement and
868funding, which is reduced as a result of the growth of
869nonsettling-manufacturer cigarette sales, for programs funded in
870whole or in part by payments to the state under the tobacco
871settlement agreement and to recoup for the state settlement-
872payment revenue lost to the state as a result of nonsettling-
873manufacturer cigarette sales; to fund enforcement and
874administration of nonsettling-manufacturer legislation and the
875fee imposed in this act, including reasonable administrative
876costs incurred by wholesale dealers complying with any
877additional reporting requirements necessitated by this act; and
878to fund such other purposes as the Legislature determines, NOW,
879THEREFORE,


CODING: Words stricken are deletions; words underlined are additions.
Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader