CODING: Words stricken are deletions; words underlined are additions.House Bill 1065
Florida House of Representatives - 1997 HB 1065
By Representative Andrews
1 A bill to be entitled
2 An act relating to tobacco products; creating
3 s. 210.155, F.S.; defining the term "primary
4 source of supply"; requiring registration as a
5 primary source of supply; prohibiting
6 distributing agents and wholesale dealers from
7 delivering, or accepting delivery of,
8 cigarettes other than directly from a primary
9 source of supply; amending s. 210.15, F.S.;
10 providing an additional requirement for
11 issuance of a permit for a distributing agent
12 or wholesale dealer; amending s. 210.151, F.S.,
13 relating to temporary initial cigarette and
14 other tobacco products permits, to conform;
15 revising provisions relating to the period of
16 validity of such permits; amending s. 210.16,
17 F.S.; providing for revocation and suspension
18 of registration of a primary source of supply;
19 providing for renewal of registration
20 subsequent to revocation; providing for civil
21 penalties in lieu of revocation or suspension;
22 providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Section 210.155, Florida Statutes, is
27 created to read:
28 210.155 Registration as primary source of supply.--
29 (1) DEFINITION.--As used in this chapter, the term
30 "primary source of supply" means the cigarette manufacturer of
31 the brand, except a cigarette manufacturer outside of the
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 United States for which the primary source of supply may be
2 the exclusive agent of the manufacturer of the brand, who, if
3 the brand cannot be secured directly from the manufacturer by
4 a distributing agent or wholesale dealer, is the source
5 closest to the manufacturer in the channel of commerce from
6 whom the brand can be secured by a permitholder.
7 (2) TAX CONTROL REGISTRATION REQUIRED.--For purposes
8 of tax revenue control, beginning October 1, 1997, no person,
9 firm, corporation, or other entity that is the primary source
10 of supply as defined in subsection (1) may sell, offer for
11 sale, accept orders for sale, ship, or cause to be shipped
12 into this state any cigarettes to any distributing agent or
13 wholesale dealer within the state without having first
14 registered as a primary source of supply on forms provided by,
15 and in such manner as prescribed by, the division. Such
16 registration information shall include a listing of the
17 complete product line of the manufacturer which is offered in
18 Florida and shall be updated and submitted monthly, together
19 with a report of all shipments into the state, on forms and in
20 such manner as prescribed by the division.
21 (3) CERTAIN INTERSTATE AND FOREIGN SHIPMENTS
22 PROHIBITED.--Beginning October 1, 1997, no holder of a
23 distributing agent or wholesale dealer permit as classified by
24 s. 210.15 may ship or cause to be shipped into this state, or
25 accept delivery of, from another state or a foreign country,
26 any cigarettes except directly from a primary source of
27 supply, registered as required in subsection (2), for the
28 brand of cigarettes being shipped.
29 (4) VIOLATION; SEIZURE; FORFEITURE.--Any cigarettes in
30 the possession of a distributing agent or wholesale dealer in
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 violation of this section shall be seized by the division and
2 subject to forfeiture.
3 Section 2. Paragraphs (a), (b), (e), and (f) of
4 subsection (1) and subsection (3) of section 210.15, Florida
5 Statutes, are amended to read:
6 210.15 Permits.--
7 (1)(a) Every person, firm, or corporation desiring to
8 deal in cigarettes as a distributing agent, wholesale dealer,
9 or exporter within this state shall file an application for a
10 cigarette permit for each place of business with the Division
11 of Alcoholic Beverages and Tobacco. Every application for a
12 cigarette permit shall be made on forms furnished by the
13 division and shall set forth the name under which the
14 applicant transacts or intends to transact business, the
15 location of the applicant's place of business within the
16 state, and such other information as the division may require.
17 If the applicant has or intends to have more than one place of
18 business dealing in cigarettes within this state, the
19 application shall state the location of each place of
20 business. If the applicant is an association, the application
21 shall set forth the names and addresses of the persons
22 constituting the association, and if a corporation, the names
23 and addresses of the principal officers thereof and any other
24 information prescribed by the division for the purpose of
25 identification. The application shall be signed and verified
26 by oath or affirmation by the owner, if a natural person, and
27 in the case of an association or partnership, any partner
28 members or partners thereof, and in the case of a corporation,
29 by an executive officer thereof or by any person specifically
30 authorized by the corporation to sign the application, to
31 which shall be attached the written evidence of this
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 authority. The cigarette permit for a distributing agent
2 shall be issued annually for which an annual fee of $5 shall
3 be charged. No permit for a distributing agent or wholesale
4 dealer shall be issued prior to receipt of an affirmation, on
5 a form approved by the division, from each manufacturer whose
6 cigarettes the distributing agent or wholesale dealer intends
7 to stamp or distribute. This affirmation shall evidence the
8 manufacturer's intent to provide cigarettes to the applicant
9 and shall be signed and sworn to by an officer of the
10 corporation or principal of the partnership or sole
11 proprietorship manufacturing the cigarettes. In the case of
12 cigarettes manufactured outside of the United States, the
13 affirmation form may be executed by the primary source of
14 supply registered with the division pursuant to s. 210.155.
15 (b) The holder of any duly issued, annual permit for a
16 distributing agent shall be entitled to a renewal of his or
17 her annual permit from year to year as a matter of course, on
18 or before July 1 unless otherwise established by rule, upon
19 making application to the division, and upon payment of this
20 annual permit fee, and receipt of a newly executed
21 manufacturer's affirmation form as required in paragraph (a).
22 (e) Prior to an application for a distributing agent,
23 wholesale dealer, or exporter permit being approved, the
24 applicant shall file a set of fingerprints when required by
25 the division on forms provided by the division. The applicant
26 shall also file a set of fingerprints for any person or
27 persons interested directly or indirectly with the applicant
28 in the business for which the permit is being sought, when so
29 required by the division. If the applicant or any person
30 interested with the applicant, either directly or indirectly,
31 in the business for which the permit is sought shall be such a
4
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 person as is within the definition of persons to whom a
2 distributing agent, wholesale dealer, or exporter permit shall
3 be denied, then the application may be denied by the division.
4 If the applicant is a partnership, all members of the
5 partnership are required to file said fingerprints, or if a
6 corporation, all principal officers of the corporation are
7 required to file said fingerprints when required by the
8 division. The cigarette permit for a wholesale dealer or
9 exporter shall be originally issued at a fee of $100, which
10 sum is to cover the cost of the investigation required before
11 issuing such permit.
12 (f) The cigarette permit for a wholesale dealer or
13 exporter shall be renewed from year to year as a matter of
14 course, at an annual cost of $100, on or before July 1 unless
15 otherwise established by rule, upon making application to the
16 division, and upon payment of the annual renewal fee, and
17 receipt of a newly executed manufacturer's affirmation form
18 required in paragraph (a).
19 (3) Upon approval of the application, the division
20 shall grant and issue to each applicant a cigarette permit for
21 each place of business set forth in the application.
22 Cigarette permits shall not be assignable and shall be valid
23 only for the persons in whose names issued and for the
24 transaction of business at the places designated therein and
25 shall at all times be conspicuously displayed at the places
26 for which issued.
27 Section 3. Section 210.151, Florida Statutes, is
28 amended to read:
29 210.151 Initial temporary cigarette and other tobacco
30 products permits.--When a person has filed a completed
31 application which does not on its face disclose any reason for
5
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 denying a cigarette permit under s. 210.15, or other tobacco
2 products permit under s. 210.40, the Division of Alcoholic
3 Beverages and Tobacco of the Department of Business and
4 Professional Regulation shall issue a temporary initial permit
5 of the same type and series for which the application has been
6 submitted, which is valid for all purposes under this chapter.
7 Provided, however, the application for a temporary cigarette
8 permit must be accompanied by the manufacturer's affirmation
9 required by s. 210.15(1)(a), prior to issuance of a temporary
10 permit.
11 (1) A temporary initial permit shall be valid for up
12 to 90 days and may be extended by the division for up to an
13 additional 90 days for good cause. The division may at any
14 time during such period grant or deny the permit applied for,
15 notwithstanding s. 120.60.
16 (1)(2) A temporary initial permit expires on and may
17 not be continued or extended beyond the date the division
18 denies the permit applied for; or beyond 14 days after the
19 date the division approves the permit applied for; or beyond
20 the date the applicant pays the permit fee and the division
21 issues the permit applied for; or beyond the date the
22 temporary permit otherwise expires by law, whichever date
23 occurs first.
24 (2)(3) Each applicant seeking a temporary initial
25 cigarette permit shall pay to the division for such permit a
26 fee of $100. Each applicant seeking a temporary initial permit
27 for other tobacco products shall pay to the division for such
28 permit a fee of $25.
29 (3)(4) Any fee or penalty collected under the
30 provisions of this act shall be deposited into the Alcoholic
31 Beverage and Tobacco Trust Fund.
6
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 Section 4. Section 210.16, Florida Statutes, is
2 amended to read:
3 210.16 Revocation or suspension of permit.--
4 (1) The Division of Alcoholic Beverages and Tobacco is
5 given full power and authority to revoke the permit of any
6 wholesale dealer receiving a permit to engage in business
7 under this part or the registration of any primary source of
8 supply for violation of any of the provisions of this part.
9 (2) The division may suspend for a reasonable period
10 of time, in its discretion, the permits of wholesale dealers
11 issued under the provisions of this part or the registration
12 of any primary source of supply for the same causes and under
13 the same limitations as is authorized hereunder to revoke the
14 permits of such wholesale dealers or primary source of supply.
15 (3) No wholesale dealer whose permit for any place of
16 business has been revoked shall engage in business under this
17 part at such place of business after such revocation until a
18 new permit is issued. No wholesale dealer whose permit for
19 any place of business has been revoked shall be permitted to
20 have said permit renewed, or to obtain an additional cigarette
21 permit for any other place of business, for a period of 6
22 months after the date such revocation becomes final. No
23 primary source of supply whose registration has been revoked
24 shall be permitted to have said registration renewed for a
25 period of 6 months after the date such revocation becomes
26 final.
27 (4) In lieu of the suspension or revocation of permits
28 or registrations, the division may impose civil penalties
29 against holders of permits or registrations for violations of
30 this part or rules and regulations relating thereto. No civil
31 penalty so imposed shall exceed $1,000 for each offense, and
7
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1065
571-133-97
1 all amounts collected shall be deposited with the State
2 Treasurer to the credit of the General Revenue Fund. If the
3 holder of the permit or registration fails to pay the civil
4 penalty, his or her permit or registration shall be suspended
5 for such period of time as the division may specify.
6 Section 5. This act shall take effect upon becoming a
7 law.
8
9 *****************************************
10 SENATE SUMMARY
11 Defines the term "primary source of supply" for purposes
of ch. 210, F.S., Tax on Tobacco Products. Requires
12 registration with the Division of Alcoholic Beverages and
Tobacco for tax and regulatory purposes. Revises
13 permanent and temporary permit requirements for
cigarettes and other tobacco products. Provides for
14 revocation or suspension of permits and registrations.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
8