Senate Bill 2248

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1999                                  SB 2248

    By Senator Horne





    6-1176-99                                           See HB 991

  1                      A bill to be entitled

  2         An act relating to tax on tobacco products;

  3         creating s. 210.155, F.S.; defining "primary

  4         source of supply"; requiring registration of

  5         entities acting as a primary source of supply;

  6         prohibiting wholesale dealers from shipping or

  7         accepting delivery of cigarettes from outside

  8         the state other than directly from a primary

  9         source of supply; providing requirements with

10         respect to affixing any stamp or other cover to

11         a cigarette package; providing for seizure and

12         forfeiture of cigarettes in violation, and for

13         revocation of a wholesale dealer's permit;

14         amending s. 210.15, F.S.; revising application

15         requirements for permits for distributing

16         agents, wholesale dealers, and exporters, and

17         provisions relating to renewal thereof;

18         requiring submission of manufacturers'

19         affirmation forms by distributing agents and

20         wholesale dealers; amending ss. 210.151 and

21         210.405, F.S., relating to temporary initial

22         cigarette and other tobacco products permits;

23         conforming language; revising provisions

24         relating to expiration of such permits;

25         specifying that manufacturers' affirmation

26         forms must be submitted prior to issuance of a

27         temporary cigarette permit; amending s. 210.16,

28         F.S.; providing for revocation and suspension

29         of registration of a primary source of supply;

30         providing limitations on renewal of

31         registration subsequent to revocation;

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1         providing for civil penalties in lieu of

  2         revocation or suspension; increasing the civil

  3         penalty that may be imposed on a wholesale

  4         dealer in lieu of suspension or revocation of a

  5         permit; providing an effective date.

  6

  7  Be It Enacted by the Legislature of the State of Florida:

  8

  9         Section 1.  Section 210.155, Florida Statutes, is

10  created to read:

11         210.155  Registration as primary source of supply.--

12         (1)  DEFINITION.--As used in this section, "primary

13  source of supply" means the cigarette manufacturer of the

14  brand, except that, for a cigarette manufacturer outside of

15  the United States, the primary source of supply may be the

16  exclusive agent of the manufacturer of the brand, who, if the

17  brand cannot be secured directly from the manufacturer by an

18  American wholesale dealer, is the source closest to the

19  manufacturer in the channel of commerce from whom the brand

20  can be secured by an American permitholder.

21         (2)  TAX CONTROL REGISTRATION REQUIRED.--For purposes

22  of tax revenue control, beginning on the effective date of

23  this act, no person, firm, corporation, or other entity that

24  is a primary source of supply may sell, offer for sale, accept

25  orders for sale, ship, or cause to be shipped into this state

26  any cigarettes to any wholesale dealer within the state

27  without having first registered as a primary source of supply

28  on forms provided by, and in such manner as prescribed by, the

29  division. The registration information shall include a listing

30  of the complete product line of the manufacturer which is

31  offered in Florida and the domestic plants from which it is

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  shipped, and shall be updated and submitted monthly, together

  2  with a report of all shipments into the state, on forms and in

  3  such manner as prescribed by the division.

  4         (3)  CERTAIN INTERSTATE AND FOREIGN SHIPMENTS

  5  PROHIBITED.--Beginning on the effective date of this act, no

  6  holder of a wholesale dealer permit may ship or cause to be

  7  shipped into this state, or accept delivery of, from another

  8  state or a foreign country, any cigarettes, except directly

  9  from a primary source of supply, registered as required by

10  subsection (2), for the brand of cigarettes being shipped.

11         (4)  AFFIXING STAMPS; LABELING REQUIREMENTS.--No stamp,

12  decal, or other cover, including a tax stamp, may be affixed

13  to or made upon any package of cigarettes that is to be sold

14  within this state unless that package complies with all

15  requirements of the Federal Cigarette Labeling and Advertising

16  Act, 15 U.S.C. ss. 1331-1341, for the placement of labels,

17  warnings, and other information. No tax stamp may be affixed

18  to any cigarette package that bears any notice or label

19  identifying the cigarettes as intended for use outside the

20  United States or exempt from federal taxes.

21         (5)  VIOLATION; SEIZURE; FORFEITURE.--Any cigarettes in

22  the possession of a wholesale or retail dealer in violation of

23  this section shall be seized by the division and subject to

24  forfeiture, and the permit of the wholesale dealer shall be

25  subject to revocation.

26         Section 2.  Paragraphs (a), (b), (e), and (f) of

27  subsection (1) and subsections (3) and (4) of section 210.15,

28  Florida Statutes, are amended to read:

29         210.15  Permits.--

30         (1)(a)  Every person, firm, or corporation desiring to

31  deal in cigarettes as a distributing agent, wholesale dealer,

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  or exporter within this state shall file an application for a

  2  cigarette permit for each place of business with the Division

  3  of Alcoholic Beverages and Tobacco.  Every application for a

  4  cigarette permit shall be made on forms furnished by the

  5  division and shall set forth the name under which the

  6  applicant transacts or intends to transact business, the

  7  location of the applicant's place of business within the

  8  state, and such other information as the division may require.

  9  If the applicant has or intends to have more than one place of

10  business dealing in cigarettes within this state, the

11  application shall state the location of each place of

12  business.  If the applicant is an association, the application

13  shall set forth the names and addresses of the persons

14  constituting the association, and if a corporation, the names

15  and addresses of the principal officers thereof and any other

16  information prescribed by the division for the purpose of

17  identification.  The application shall be signed and verified

18  by oath or affirmation by the owner, if a natural person, and

19  in the case of an association or partnership, any partner

20  members or partners thereof, and in the case of a corporation,

21  by an executive officer thereof or by any person specifically

22  authorized by the corporation to sign the application, to

23  which shall be attached the written evidence of this

24  authority.  The cigarette permit for a distributing agent

25  shall be issued annually for which an annual fee of $5 shall

26  be charged.  No permit for a distributing agent or wholesale

27  dealer shall be issued prior to receipt of an affirmation, on

28  a form approved by the division, from each manufacturer whose

29  cigarettes the distributing agent or wholesale dealer intends

30  to stamp or distribute.  This affirmation shall evidence the

31  manufacturer's intent to provide cigarettes to the applicant

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  and shall be signed and sworn to by an officer of the

  2  corporation or principal of the partnership or sole

  3  proprietorship manufacturing the cigarettes.  In the case of

  4  cigarettes manufactured outside of the United States, the

  5  affirmation form may be executed by the primary source of

  6  supply registered with the division pursuant to s. 210.155.

  7         (b)  The holder of any duly issued, annual permit for a

  8  distributing agent shall be entitled to a renewal of his or

  9  her annual permit from year to year as a matter of course, on

10  or before July 1 unless otherwise established by rule, upon

11  making application to the division, and upon payment of this

12  annual permit fee, and receipt by the division of newly

13  executed manufacturer's affirmation forms as required by

14  paragraph (a).

15         (e)  Prior to an application for a distributing agent,

16  wholesale dealer, or exporter permit being approved, the

17  applicant shall file a set of fingerprints when required by

18  the division on forms provided by the division. The applicant

19  shall also file a set of fingerprints for any person or

20  persons interested directly or indirectly with the applicant

21  in the business for which the permit is being sought, when so

22  required by the division.  If the applicant or any person

23  interested with the applicant, either directly or indirectly,

24  in the business for which the permit is sought shall be such a

25  person as is within the definition of persons to whom a

26  distributing agent, wholesale dealer, or exporter permit shall

27  be denied, then the application may be denied by the division.

28  If the applicant is a partnership, all members of the

29  partnership are required to file said fingerprints, or if a

30  corporation, all principal officers of the corporation are

31  required to file said fingerprints, when required by the

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  division.  The cigarette permit for a wholesale dealer or

  2  exporter shall be originally issued at a fee of $100, which

  3  sum is to cover the cost of the investigation required before

  4  issuing such permit.

  5         (f)  The cigarette permit for a wholesale dealer or

  6  exporter shall be renewed from year to year as a matter of

  7  course, at an annual cost of $100, on or before July 1 unless

  8  otherwise established by rule, upon making application to the

  9  division, and upon payment of the annual renewal fee, and

10  receipt by the division of newly executed manufacturer's

11  affirmation forms as required by paragraph (a).

12         (3)  Upon approval of the application, the division

13  shall grant and issue to each applicant a cigarette permit for

14  each place of business set forth in the application.

15  Cigarette permits shall not be assignable and shall be valid

16  only for the persons in whose names issued and for the

17  transaction of business at the places designated therein and

18  shall at all times be conspicuously displayed at the places

19  for which issued.

20         (4)  All permits of distributing agents, wholesale

21  dealers, or exporters shall remain in force and effect until

22  July 1 following their issuance unless otherwise established

23  by rule, or until suspended or revoked for cause by the

24  division, or surrendered by the permitholder.

25         Section 3.  Section 210.151, Florida Statutes, is

26  amended to read:

27         210.151  Initial temporary cigarette and other tobacco

28  products permits.--When a person has filed a completed

29  application which does not on its face disclose any reason for

30  denying a cigarette permit under s. 210.15, or other tobacco

31  products permit under s. 210.40, the Division of Alcoholic

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  Beverages and Tobacco of the Department of Business and

  2  Professional Regulation shall issue a temporary initial permit

  3  of the same type and series for which the application has been

  4  submitted, which is valid for all purposes under this part

  5  chapter. The application for a temporary cigarette permit must

  6  be accompanied by the manufacturer's affirmation forms

  7  required by s. 210.15(1)(a) prior to issuance of a temporary

  8  permit.

  9         (1)  A temporary initial permit shall be valid for up

10  to 90 days and may be extended by the division for up to an

11  additional 90 days for good cause. The division may at any

12  time during such period grant or deny the permit applied for,

13  notwithstanding s. 120.60.

14         (1)(2)  A temporary initial permit expires on and may

15  not be continued or extended beyond the date the division

16  denies the permit applied for; or beyond 14 days after the

17  date the division approves the permit applied for; or beyond

18  the date the applicant pays the permit fee and the division

19  issues the permit applied for; or beyond the date the

20  temporary permit otherwise expires by law, whichever date

21  occurs first.

22         (2)(3)  Each applicant seeking a temporary initial

23  cigarette permit shall pay to the division for such permit a

24  fee of $100. Each applicant seeking a temporary initial permit

25  for other tobacco products shall pay to the division for such

26  permit a fee of $25.

27         (3)(4)  Any fee or penalty collected under the

28  provisions of this act shall be deposited into the Alcoholic

29  Beverage and Tobacco Trust Fund.

30         Section 4.  Section 210.405, Florida Statutes, is

31  amended to read:

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1         210.405  Initial temporary cigarette and other tobacco

  2  products permits.--When a person has filed a completed

  3  application which does not on its face disclose any reason for

  4  denying a cigarette permit under s. 210.15, or other tobacco

  5  products permit under s. 210.40, the Division of Alcoholic

  6  Beverages and Tobacco of the Department of Business and

  7  Professional Regulation shall issue a temporary initial permit

  8  of the same type and series for which the application has been

  9  submitted, which is valid for all purposes under this chapter.

10         (1)  A temporary initial permit shall be valid for up

11  to 90 days and may be extended by the division for up to an

12  additional 90 days for good cause. The division may at any

13  time during such period grant or deny the permit applied for,

14  notwithstanding s. 120.60.

15         (1)(2)  A temporary initial permit expires on and may

16  not be continued or extended beyond the date the division

17  denies the permit applied for; or beyond 14 days after the

18  date the division approves the permit applied for; or beyond

19  the date the applicant pays the permit fee and the division

20  issues the permit applied for; or beyond the date the

21  temporary permit otherwise expires by law, whichever date

22  occurs first.

23         (2)(3)  Each applicant seeking a temporary initial

24  cigarette permit shall pay to the division for such permit a

25  fee of $100. Each applicant seeking a temporary initial permit

26  for other tobacco products shall pay to the division for such

27  permit a fee of $25.

28         (3)(4)  Any fee or penalty collected under the

29  provisions of this act shall be deposited into the Alcoholic

30  Beverage and Tobacco Trust Fund.

31

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1         Section 5.  Section 210.16, Florida Statutes, is

  2  amended to read:

  3         210.16  Revocation or suspension of permit or

  4  registration.--

  5         (1)  The Division of Alcoholic Beverages and Tobacco is

  6  given full power and authority to revoke the permit of any

  7  wholesale dealer receiving a permit to engage in business

  8  under this part or the registration of any primary source of

  9  supply for violation of any of the provisions of this part.

10         (2)  The division may suspend for a reasonable period

11  of time, in its discretion, the permit permits of any

12  wholesale dealer dealers issued under the provisions of this

13  part or the registration of any primary source of supply for

14  the same causes and under the same limitations as is

15  authorized hereunder to revoke the permit permits of such

16  wholesale dealer or the registration of such primary source of

17  supply dealers.

18         (3)  No wholesale dealer whose permit for any place of

19  business has been revoked shall engage in business under this

20  part at such place of business after such revocation until a

21  new permit is issued.  No wholesale dealer whose permit for

22  any place of business has been revoked shall be permitted to

23  have said permit renewed, or to obtain an additional cigarette

24  permit for any other place of business, for a period of 6

25  months after the date such revocation becomes final. No

26  primary source of supply whose registration has been revoked

27  shall be permitted to have said registration renewed for a

28  period of 6 months after the date such revocation becomes

29  final.

30         (4)  In lieu of the suspension or revocation of permits

31  or registrations, the division may impose civil penalties

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    Florida Senate - 1999                                  SB 2248
    6-1176-99                                           See HB 991




  1  against holders of permits or registrations for violations of

  2  this part or rules and regulations relating thereto.  No civil

  3  penalty so imposed shall exceed $100,000 $1,000 for each

  4  offense, and all amounts collected shall be deposited with the

  5  State Treasurer to the credit of the General Revenue Fund.  If

  6  the holder of the permit or registration fails to pay the

  7  civil penalty, his or her permit or registration shall be

  8  suspended for such period of time as the division may specify.

  9         Section 6.  This act shall take effect upon becoming a

10  law.

11

12            *****************************************

13                          HOUSE SUMMARY

14
      Requires entities that are the primary source of supply
15    of cigarettes for wholesale dealers to register with the
      Division of Alcoholic Beverages and Tobacco. Provides
16    that wholesale dealers may not ship or accept delivery of
      cigarettes from another state or foreign country except
17    directly from a primary source of supply. Prohibits
      affixing any stamp or other cover to a package of
18    cigarettes that does not comply with federal labeling
      requirements, or affixing any tax stamp to a package that
19    is identified as intended for use outside the United
      States or exempt from federal tax. Provides for
20    forfeiture of cigarettes in violation and for revocation
      of the wholesale dealer's permit. Provides that a primary
21    source of supply's registration may be revoked or
      suspended in the same manner as a wholesale dealer's
22    permit, and increases the civil penalty that may be
      imposed on a wholesale dealer in lieu of permit
23    suspension or revocation.

24
      Revises application requirements for permits for
25    cigarette distributing agents, wholesale dealers, and
      exporters and provisions relating to renewal thereof.
26    Requires distributing agents and wholesale dealers to
      submit manufacturers' affirmation forms prior to
27    receiving a permit. Revises provisions relating to
      expiration of temporary initial cigarette and other
28    tobacco products permits.

29

30

31

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