CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Horne moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Section 215.5601, Florida Statutes, is
18 amended to read:
19 215.5601 Lawton Chiles Endowment Fund.--
20 (1) SHORT TITLE.--This section may be cited as the
21 "Lawton Chiles Endowment Fund."
22 (2) DEFINITIONS.--As used in this section:
23 (a) "Board" means the State Board of Administration
24 established by s. 16, Art. IX of the State Constitution of
25 1885 and incorporated into s. 9(c), Art. XII of the State
26 Constitution of 1968.
27 (b) "Endowment" means the Lawton Chiles Endowment
28 Fund.
29 (c) "Earnings" means all income generated by
30 investments and the net change in the market value of assets.
31 (d) "Participating manufacturer" means any
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 manufacturer of tobacco products which meets the requirements
2 of subsection (4).
3 (e)(d) "State agency" or "state agencies" means the
4 Department of Health, the Department of Children and Family
5 Services, the Department of Elderly Affairs, or the Agency for
6 Health Care Administration, or any combination thereof, as the
7 context indicates.
8 (3) LEGISLATIVE INTENT.--It is the intent of the
9 Legislature to:
10 (a) Provide a perpetual source of funding for the
11 future of state children's health programs, child welfare
12 programs, community-based health and human services
13 initiatives, and biomedical research activities.
14 (b) Ensure that enhancement revenues will be available
15 to finance these important initiatives.
16 (c) Use funds received from the Tobacco Settlement
17 Clearing Trust Fund moneys to ensure the financial security of
18 vital health and human services programs.
19 (d) Encourage the development of community-based
20 solutions to strengthen and improve the quality of life of
21 Florida's most vulnerable citizens.
22 (e) Provide funds for cancer research and
23 public-health research for diseases linked to tobacco use.
24 (f) Provide tobacco manufacturers the opportunity to
25 voluntarily participate in mitigating the impact of the use of
26 tobacco on the residents of this state.
27 (4) PARTICIPATING MANUFACTURERS; QUALIFICATIONS.--
28 (a)1. A tobacco manufacturer may become a
29 participating manufacturer by entering into an agreement with
30 the Attorney General which provides for the following:
31 a. Elimination of the manufacturer's outdoor
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 advertising and transit advertisements at the earlier of the
2 expiration of applicable contracts or 4 months after the date
3 the final list of outdoor advertising signs is supplied to the
4 Attorney General. The manufacturer shall provide a final list
5 of all its outdoor advertising signs and transit
6 advertisements to the Attorney General within 45 days after
7 entering the agreement.
8 b. Support of the state's efforts to mitigate the
9 impact of the use of tobacco through annual payments to the
10 state. On January 1 of each year, the Division of Alcoholic
11 Beverages and Tobacco of the Department of Business and
12 Professional Regulation shall calculate the payment amount,
13 which is due by January 31 of that year. The payment amount
14 shall be based on the number of cigarette packages delivered
15 to wholesale dealers for sale in this state by the
16 manufacturer from January 1 until December 31 of the prior
17 year. The payment amount per package shall be calculated as
18 the total annual payment due to the state pursuant to the
19 settlement agreement in the case of The State of Florida et
20 al., v. American Tobacco Company et al., divided by the total
21 number of packages delivered to wholesale dealers for sale in
22 this state by the four settling manufacturers during the
23 previous 12 months, rounded to the nearest tenth of a cent.
24 2. Cigarettes produced by each manufacturer that fully
25 complies with the agreement entered into with the Attorney
26 General under subparagraph 1. and makes the annual payment by
27 January 31 are exempt from the surtax on cigarettes imposed
28 under s. 210.02(6) for the subsequent 12-month period.
29 (b) All tobacco manufacturers that are signatories to
30 the settlement agreement entered on August 25, 1997, in the
31 case of The State of Florida et al., v. American Tobacco
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 Company et al., and the settlement agreement entered on March
2 15, 1996, in the case of State of West Virginia, State of
3 Florida, State of Mississippi, Commonwealth of Massachusetts,
4 and State of Louisiana v. Brooke Group Ltd. and Liggett Group,
5 Inc., are participating manufacturers. Cigarettes produced by
6 each such manufacturer that fully complies with the applicable
7 settlement agreement and makes the annual payment required
8 under the agreement by December 31 are exempt from the surtax
9 on cigarettes imposed under s. 210.02(6) for the subsequent
10 12-month period.
11 (c) Funds received from participating manufacturers
12 shall be deposited into the Department of Banking and Finance
13 Tobacco Settlement Clearing Trust Fund.
14 (5)(4) LAWTON CHILES ENDOWMENT FUND; CREATION;
15 PURPOSES AND USES.--
16 (a) There is created the Lawton Chiles Endowment Fund,
17 to be administered by the State Board of Administration. The
18 endowment shall serve as a clearing trust fund not subject to
19 termination pursuant to s. 19(f), Art. III of the State
20 Constitution and shall be funded by settlement moneys received
21 from the Tobacco Settlement Clearing Trust Fund industry. The
22 endowment fund shall be exempt from the service charges
23 imposed by s. 215.20.
24 (b) Funds from the endowment shall be distributed by
25 the board to trust funds of the state agencies in the amounts
26 indicated by reference to the legislative appropriations for
27 the state agencies, except as otherwise provided in this
28 section.
29 (c) The state agencies shall use the funds from the
30 endowment to enhance or support increases in clients served or
31 in program costs in health and human services program areas.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (d) The Secretary of Health, the Secretary of Children
2 and Family Services, the Secretary of Elderly Affairs, and the
3 Director of Health Care Administration shall conduct meetings
4 to discuss program priorities for endowment funding prior to
5 submitting their budget requests to the Executive Office of
6 the Governor and the Legislature. The purpose of the meetings
7 shall be to gain consensus for priority requests and
8 recommended endowment funding levels for those priority
9 requests. An agency head may not designate a proxy for these
10 meetings.
11 (e) Funds from the endowment may not be used to
12 supplant existing revenues.
13 (f) When advised by the Revenue Estimating Conference
14 that a deficit will occur with respect to the appropriations
15 from the Tobacco Settlement Clearing Trust Fund in any fiscal
16 year, the Governor shall develop a plan of action to eliminate
17 the deficit. Before implementing the plan of action, the
18 Governor must comply with the provisions of s. 216.177(2). In
19 developing the plan of action, the Governor shall, to the
20 extent possible, preserve legislative policy and intent, and,
21 absent any specific directions to the contrary in the General
22 Appropriations Act, any reductions in appropriations from the
23 Tobacco Settlement Clearing Trust Fund for a fiscal year shall
24 be prorated among the purposes for which funds were
25 appropriated from the Tobacco Settlement Clearing Trust Fund
26 for that year.
27 (6)(5) ADMINISTRATION OF THE ENDOWMENT.--
28 (a) The board is authorized to invest and reinvest
29 funds of the endowment in those securities listed in s.
30 215.47, in accordance with the fiduciary standards set forth
31 in s. 215.47(9) and consistent with an investment plan
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 developed by the executive director and approved by the board.
2 Costs and fees of the board for investment services shall be
3 deducted from the earnings accruing to the endowment.
4 (b) The endowment shall be managed as an annuity. The
5 investment objective shall be long-term preservation of the
6 real value of the principal and a specified regular annual
7 cash outflow for appropriation, as nonrecurring revenue. The
8 schedule of annual cash outflow shall be included within the
9 investment plan adopted pursuant to paragraph (a).
10 (c) The board shall establish a separate account for
11 the funds of the endowment. The board shall design and operate
12 an investment portfolio that maximizes the financial return to
13 the endowment, consistent with the risks inherent in each
14 investment, and that is designed to preserve an appropriate
15 diversification of the portfolio.
16 (d) No later than February 15, 2000, the board shall
17 report on the financial status of the endowment to the
18 Governor, the Speaker of the House of Representatives, the
19 President of the Senate, the chairs of the respective
20 appropriations and appropriate substantive committees of each
21 chamber, and the Revenue Estimating Conference. Thereafter,
22 the board shall make a status report to such persons no later
23 than August 15 and February 15 of each year.
24 (e) Accountability for funds from the endowment which
25 have been appropriated to a state agency and distributed by
26 the board shall reside with the state agency. The board is not
27 responsible for the proper expenditure or accountability of
28 funds from the endowment after distribution to a state agency.
29 (f) The board may collect a fee for service from the
30 endowment no greater than that charged to the Florida
31 Retirement System.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (7)(6) AVAILABILITY OF FUNDS.--
2 (a) Funds from the endowment shall not be available
3 for appropriation to a state agency until July 1, 2000.
4 Beginning July 1, 2000, the maximum annual amount of endowment
5 funds that may be appropriated shall be in accordance with the
6 following, based on earnings averaged over 3 years:
7 1. Beginning July 1, 2000, no more than a level of
8 spending representing earnings at a rate of 3 percent.
9 2. Beginning July 1, 2001, no more than a level of
10 spending representing earnings at a rate of 4 percent.
11 3. Beginning July 1, 2002, no more than a level of
12 spending representing earnings at a rate of 5 percent.
13 4. Beginning July 1, 2003, and thereafter, no more
14 than a level of spending representing earnings at a rate of 6
15 percent.
16 (b) The Legislature may not appropriate more than 85
17 percent of the revenue that is received from participating
18 manufacturers or pursuant to s. 210.02 in any fiscal year and
19 made available for appropriation in the subsequent fiscal
20 year. Revenue received from participating manufacturers or
21 pursuant to s. 210.02 in any fiscal year which is not
22 appropriated by the Legislature shall be deposited into the
23 Lawton Chiles Endowment Fund.
24 (c)(b) Notwithstanding the provisions of s. 216.301
25 and pursuant to s. 216.351, all unencumbered balances of
26 appropriations as of June 30 or undisbursed balances as of
27 December 31 shall revert to the endowment's principal.
28 (8)(7) ENDOWMENT PRINCIPAL; APPROPRIATION OF
29 EARNINGS.--The following amounts are appropriated from the
30 Department of Banking and Finance Tobacco Settlement Clearing
31 Trust Fund to the Lawton Chiles Endowment Fund for Health and
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 Human Services:
2 (a) For fiscal year 1999-2000, $1.1 billion;
3 (b) For fiscal year 2000-2001, $200 million;
4 (c) For fiscal year 2001-2002, $200 million; and
5 (d) For fiscal year 2002-2003, $200 million; and.
6 (e) For all subsequent fiscal years, a minimum of $25
7 million.
8 Section 2. Section 210.02, Florida Statutes, is
9 amended to read:
10 210.02 Cigarette tax imposed; collection.--
11 (1) An excise or privilege tax, in addition to all
12 other taxes of every kind imposed by law, is imposed upon the
13 sale, receipt, purchase, possession, consumption, handling,
14 distribution, and use of cigarettes in this state, in the
15 following amounts, except as hereinafter otherwise provided,
16 for cigarettes of standard dimensions:
17 (a) Upon all cigarettes weighing not more than 3
18 pounds per thousand, 16.95 mills on each cigarette.
19 (b) Upon all cigarettes weighing more than 3 pounds
20 per thousand and not more than 6 inches long, 33.9 mills on
21 each cigarette.
22 (c) Upon all cigarettes weighing more than 3 pounds
23 per thousand and more than 6 inches long, 67.8 mills on each
24 cigarette.
25 (2) The description of cigarettes contained in
26 paragraphs (a), (b), and (c) of subsection (1) are hereby
27 declared to be standard as to dimensions for taxing purposes
28 as provided in this law and should any cigarette be received,
29 purchased, possessed, sold, offered for sale, given away, or
30 used of a size other than of standard dimensions, the same
31 shall be taxed at the rate of 1.41 cents on each such
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 cigarette.
2 (3) When cigarettes as described in paragraph (1)(a)
3 are packed in varying quantities of 20 cigarettes or less,
4 except manufacturer's free samples authorized under s.
5 210.04(9), the following rate shall govern:
6 (a) Packages containing 10 cigarettes or less require
7 a 16.95-cent tax.
8 (b) Packages containing more than 10 but not more than
9 20 cigarettes require a 33.9-cent tax.
10 (4) When cigarettes as described in paragraph (1)(b)
11 are packed in varying quantities of 20 cigarettes or less,
12 except manufacturer's free samples authorized under s.
13 210.04(9), the following rates shall govern:
14 (a) Packages containing 10 cigarettes or less require
15 a 33.9-cent tax.
16 (b) Packages containing more than 10 but not more than
17 20 cigarettes require a 67.8-cent tax.
18 (5) When cigarettes as described in paragraph (1)(c)
19 are packed in varying quantities of 20 cigarettes or less,
20 except manufacturer's free samples authorized under s.
21 210.04(9), the following rates shall govern:
22 (a) Packages containing 10 cigarettes or less require
23 a 67.8-cent tax.
24 (b) Packages containing more than 10 but not more than
25 20 cigarettes require a 135.6-cent tax.
26 (6) Beginning February 1, 2001, an additional surtax
27 shall be added to the amounts otherwise provided in this
28 section. The division shall calculate the surtax on January 1
29 of each year, and the surtax shall apply on February 1. The
30 surtax per package shall be calculated as the total annual
31 payment due to the state pursuant to the settlement agreement
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 in the case of The State of Florida et al., v. American
2 Tobacco Company et al., divided by the total number of
3 packages of cigarettes delivered to wholesale dealers for sale
4 in this state by the four settling manufacturers during the
5 previous 12 months, rounded to the nearest tenth of a cent.
6 (7)(6) This tax shall be paid by the dealer to the
7 division for deposit and distribution as hereinafter provided
8 upon the first sale or transaction within the state, whether
9 or not such sale or transfer be to the ultimate purchaser or
10 consumer. The seller or dealer shall collect the tax from the
11 purchaser or consumer, and the purchaser or consumer shall pay
12 the tax to the seller. The seller or dealer shall be
13 responsible for the collection of the tax and the payment of
14 the same to the division. All taxes are due not later than the
15 10th day of the month following the calendar month in which
16 they were incurred, and thereafter shall bear interest at the
17 rate of 1 percent per month. If the amount of tax due for a
18 given period is assessed without allocating it to any
19 particular month, the interest shall begin with the date of
20 the assessment. Whenever cigarettes are shipped from outside
21 the state to anyone other than a distributing agent or
22 wholesale dealer, the person receiving the cigarettes shall be
23 responsible for the tax on said cigarettes and the payment of
24 same to the division.
25 (8)(7) It is the legislative intent that the tax on
26 cigarettes shall be uniform throughout the state.
27 Section 3. Section 210.20, Florida Statutes, is
28 amended to read:
29 210.20 Employees and assistants; distribution of
30 funds.--
31 (1) The division under the applicable rules of the
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 Department of Management Services shall have the power to
2 employ such employees and assistants and incur such other
3 expenses as may be necessary for the administration of this
4 part, within the limits of an appropriation for the operation
5 of the Department of Business and Professional Regulation as
6 may be authorized by the General Appropriations Act.
7 (2) As collections are received by the division from
8 such cigarette taxes, it shall pay the same into a trust fund
9 in the State Treasury designated "Cigarette Tax Collection
10 Trust Fund" which shall be paid and distributed as follows:
11 (a) The division shall from month to month certify to
12 the Comptroller the amount derived from the cigarette tax
13 imposed by s. 210.02(1)-(5) s. 210.02, less the service
14 charges provided for in s. 215.20 and less 0.9 percent of the
15 amount derived from the cigarette tax imposed by s. 210.02,
16 which shall be deposited into the Alcoholic Beverage and
17 Tobacco Trust Fund, specifying the amounts to be transferred
18 from the Cigarette Tax Collection Trust Fund and credited on
19 the basis of 5.8 percent of the net collections to the
20 Municipal Financial Assistance Trust Fund, 32.4 percent of the
21 net collections to the Revenue Sharing Trust Fund for
22 Municipalities, 2.9 percent of the net collections to the
23 Revenue Sharing Trust Fund for Counties, and 29.3 percent of
24 the net collections for the funding of indigent health care to
25 the Public Medical Assistance Trust Fund.
26 (b) The division shall from month to month certify to
27 the Comptroller the amount derived from the cigarette surtax
28 imposed by s. 210.02(6), and that amount shall be transferred
29 from the Cigarette Tax Collection Trust Fund and credited to
30 the Department of Banking and Finance Tobacco Settlement
31 Clearing Trust Fund.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (c)(b) The division shall from month to month certify
2 to the Comptroller the amount derived from the cigarette tax
3 imposed by s. 210.02 on all cigarettes sold at retail on any
4 property of the Inter-American Center Authority, created by
5 chapter 554, and such amount, less the service charge provided
6 for in s. 215.20, shall be paid to said Inter-American Center
7 Authority by warrant drawn by the Comptroller upon the State
8 Treasury, which amount is hereby appropriated monthly out of
9 such Cigarette Tax Collection Trust Fund.
10 (d)(c) Beginning January 1, 1999, and continuing for
11 10 years thereafter, the division shall from month to month
12 certify to the Comptroller the amount derived from the
13 cigarette tax imposed by s. 210.02, less the service charges
14 provided for in s. 215.20 and less 0.9 percent of the amount
15 derived from the cigarette tax imposed by s. 210.02 which
16 shall be deposited into the Alcoholic Beverage and Tobacco
17 Trust Fund, specifying an amount equal to 2.59 percent of the
18 net collections, and that amount shall be paid to the Board of
19 Directors of the H. Lee Moffitt Cancer Center and Research
20 Institute, established under s. 240.512, by warrant drawn by
21 the Comptroller upon the State Treasury. These funds are
22 hereby appropriated monthly out of the Cigarette Tax
23 Collection Trust Fund, to be used for the purpose of
24 constructing, furnishing, and equipping a cancer research
25 facility at the University of South Florida adjacent to the H.
26 Lee Moffitt Cancer Center and Research Institute. In fiscal
27 years 1999-2000 and thereafter with the exception of fiscal
28 year 2008-2009, the appropriation to the H. Lee Moffitt Moffit
29 Cancer Center and Research Institute authorized by this
30 paragraph shall not be less than the amount which would have
31 been paid to the H. Lee Moffitt Cancer Center and Research
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 Institute for fiscal year 1998-1999 had payments been made for
2 the entire fiscal year rather than for a 6-month period
3 thereof.
4 (3) After all distributions hereinabove provided for
5 have been made, the balance of the revenue produced from the
6 tax imposed by this part shall be deposited in the General
7 Revenue Fund.
8 Section 4. Section 215.5603, Florida Statutes, is
9 created to read:
10 215.5603 Tobacco Settlement Financing Corporation.--
11 (1) DEFINITIONS.--As used in this section, the term:
12 (a) "Bond" means any bond, debenture, note,
13 certificate, or other obligation of financial indebtedness
14 issued by the corporation under this section.
15 (b) "Corporation" means the Tobacco Settlement
16 Financing Corporation created by this section.
17 (c) "Department" means the Department of Banking and
18 Finance or its successor.
19 (d) "Insurance" means a contract whereby one
20 undertakes to indemnify another or pay or allow a specified
21 amount or a determinable benefit upon determinable
22 contingencies.
23 (e) "Purchase agreement" means a contract between the
24 corporation and the state, acting by and through the
25 department, in which the state sells to the corporation any or
26 all of the state's right, title, and interest in and to the
27 tobacco settlement agreement, including, but not limited to,
28 the moneys to be received thereunder.
29 (f) "Tobacco settlement agreement" means the
30 settlement agreement, as amended, entered into by the state
31 and participating cigarette manufacturers in settlement of
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 State of Florida et al. v. American Tobacco Co., Case No.
2 95-1466AH (Fla. 15th Cir. Ct. 1996).
3 (2) CORPORATION CREATION AND AUTHORITY.--
4 (a) The Tobacco Settlement Financing Corporation is
5 created as a special purpose, not-for-profit, public benefits
6 corporation for the purpose of:
7 1. Developing a plan which is subject to the review,
8 modification, and approval of the Legislature, by which it
9 will purchase any or all of the state's right, title, and
10 interest in and to the tobacco settlement agreement and will
11 issue bonds to pay the purchase price therefor. The sale of
12 bonds is subject to ratification by law. Funds generated by
13 the sale of the bonds shall be used to provide funding for the
14 Lawton Chiles Endowment Fund; or
15 2. Purchasing insurance, subject to the review,
16 modification, and approval of the Legislature, to insure the
17 state against the loss of proceeds from the tobacco settlement
18 agreement.
19 (b) The corporation shall be governed by a board of
20 directors consisting of the Governor, the Treasurer, the
21 Comptroller, the Attorney General, two directors appointed
22 from the membership of the Senate by the President of the
23 Senate, and two directors appointed from the membership of the
24 House of Representatives by the Speaker of the House of
25 Representatives. On January 7, 2003, the board shall include
26 the Chief Financial Officer in place of the Treasurer and the
27 Comptroller.
28 (c) The corporation shall have all the powers of a
29 corporate body under the laws of this state, including, but
30 not limited to, the powers of corporations under chapter 617,
31 to the extent not inconsistent with or restricted by the
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 provisions of this section, including, but not limited to, the
2 power to:
3 1. Adopt, amend, and repeal bylaws not inconsistent
4 with this section.
5 2. Sue and be sued.
6 3. Adopt and use a common seal.
7 4. Acquire, purchase, hold, lease, and convey real and
8 personal property, contract rights, general intangibles,
9 revenues, moneys, and accounts as is proper or expedient to
10 carry out the purposes of the corporation and this section and
11 to assign, convey, sell, transfer, lease, or otherwise dispose
12 of such property.
13 5. Elect or appoint and employ such officers, agents,
14 and employees as the corporation deems advisable to operate
15 and manage the affairs of the corporation, which officers,
16 agents, and employees may be employees of the state or of the
17 state officers and agencies represented on the board of
18 directors of the corporation.
19 6. Make and execute any and all contracts, trust
20 agreements, trust indentures, and other instruments and
21 agreements necessary or convenient to accomplish the purposes
22 of the corporation and this section, including, but not
23 limited to, investment contracts approved by the Legislature,
24 swap agreements, liquidity facilities, or the purchase, as
25 approved by the Legislature, of insurance or reinsurance.
26 7. Select, retain, and employ professionals,
27 contractors, or agents, which may include the Division of Bond
28 Finance of the State Board of Administration and the Division
29 of State Purchasing of the Department of Management Services,
30 as are necessary or convenient to enable or assist the
31 corporation in carrying out the purposes of the corporation.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 8. Do any act or thing necessary or convenient to
2 carry out the purposes of the corporation subject to the
3 review, modification, and approval of the Legislature as
4 provided herein.
5 (d) With the approval of at least six of its
6 directors, the corporation may plan to purchase insurance to
7 insure the state, for 7 years, against the loss of 50 percent
8 of the revenues to be paid to the state pursuant to the
9 tobacco settlement agreement. The total premium paid for this
10 insurance may not exceed $200 million. The plan is subject to
11 review, modification, and approval of the Legislature.
12 Purchase of insurance is subject to legislative approval.
13 (e) With the approval of at least six of its
14 directors, the corporation may develop a plan to enter into
15 one or more purchase agreements with the department pursuant
16 to which the corporation will purchase any or all of the
17 state's right, title, and interest in and to the tobacco
18 settlement agreement and will execute and deliver any other
19 documents necessary or desirable to effectuate such purchase.
20 The plan is subject to review, modification, and approval of
21 the Legislature. Sale of all or part of the state's right,
22 title, and interest in and to the tobacco settlement agreement
23 is subject to approval by the Legislature.
24 (f) Subject to the review, modification, and approval
25 by the Legislature, the corporation may issue bonds payable
26 from and secured by amounts payable to the corporation from
27 proceeds of the tobacco settlement agreement. The corporation
28 is additionally authorized to issue bonds to refund previously
29 issued bonds and to deposit the proceeds of such bonds as
30 provided in the documents authorizing the issuance of such
31 bonds. Upon legislative approval of the issuance of bonds, the
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 corporation is authorized, to do all things necessary or
2 desirable in connection with the issuance of the bonds,
3 including, but not limited to, establishing debt service
4 reserves or other additional security for the bonds, providing
5 for capitalized interest, and executing and delivering any and
6 all documents and agreements. The total principal amount of
7 bonds issued by the corporation shall not exceed $3 billion.
8 The principal amount of bonds issued in any single fiscal year
9 shall not exceed $1.5 billion, beginning with the 2000-2001
10 fiscal year. The limitation on the principal amount of bonds
11 does not apply the bonds issued to refund previously issued
12 bonds. The term of any such bonds shall not exceed 40 years,
13 and the rate of interest on such bonds may not exceed 10
14 percent. The corporation may sell bonds through competitive
15 bidding or negotiated contracts, whichever method of sale is
16 determined by the corporation to be in the best interest of
17 the corporation.
18 (g) The corporation does not have the power to pledge
19 the credit, the general revenues, or the taxing power of the
20 state or of any political subdivision of the state. The
21 obligations of the department and the corporation under the
22 purchase agreement and under any bonds shall not constitute a
23 general obligation of the state or a pledge of the faith and
24 credit or taxing power of the state. The bonds shall be
25 payable from and secured by payments received under the
26 tobacco settlement agreement, and neither the state nor any of
27 its agencies shall have any liability on such bonds. Such
28 bonds shall not be construed in any manner as an obligation of
29 the state or any of its agencies, the department, the State
30 Board of Administration or entities for which it invests
31 funds, or board members or their respective agencies.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (h) Notwithstanding any other provision of law, any
2 pledge of or other security interest in revenues, money,
3 accounts, contract rights, general intangibles, or other
4 personal property made or created by the corporation resulting
5 from the authority granted by law shall be valid, binding, and
6 perfected from the time such pledge is made or other security
7 interest attaches without any physical delivery of the
8 collateral or further act, and the lien of any such pledge or
9 other security interest shall be valid, binding, and perfected
10 against all parties having claim of any kind in tort, in
11 contract, or otherwise against the corporation irrespective of
12 whether such parties have notice of such claims. No instrument
13 by which such a pledge or security interest is created nor any
14 financing statement need be recorded or filed.
15 (i) The corporation may validate any bonds issued
16 pursuant to this section and the security for payment
17 therefor, as provided in chapter 75. The validation
18 proceedings may be brought only in the circuit court for Leon
19 County. The notice required under s. 75.06 must be published
20 in Leon County, and the petition and order of the circuit
21 court shall be served only on the State Attorney for the
22 Second Judicial Circuit. The provisions of ss. 75.04(2) and
23 75.06(2) shall not apply to validation proceedings brought
24 under this paragraph. The validation of the first bonds issued
25 pursuant to this section may be appealed to the Supreme Court,
26 and the Court shall process such appeal expeditiously.
27 (j) The state covenants with the holders of bonds of
28 the corporation that the state will not limit or alter the
29 authority or the rights under this section vested in the
30 corporation to fulfill the terms of any agreements, including
31 the terms of any purchase agreement, or in any way impair the
18
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 rights and remedies of such bondholders as long as any such
2 bonds remain outstanding unless adequate provision has been
3 made for the payment of such bonds pursuant to the documents
4 authorizing such bonds.
5 (k) The corporation shall not take any action that
6 will materially and adversely affect the rights of holders of
7 any bonds issued under this section as long as such bonds are
8 outstanding.
9 (l) As long as the corporation has any bonds
10 outstanding, the corporation may not file a voluntary petition
11 under chapter 9 of the federal Bankruptcy Code or such
12 corresponding chapter or sections as are in effect from time
13 to time, and neither any public officer nor any organization,
14 entity, or other person may authorize the corporation, while
15 bonds are outstanding, to be or become a debtor under chapter
16 9 of the federal Bankruptcy Code or such corresponding chapter
17 or sections as are in effect from time to time.
18 (m) The corporation may contract with the State Board
19 of Administration to serve as trustee with respect to bonds
20 issued by the corporation as provided by this section and to
21 hold, administer, and invest proceeds of such bonds and other
22 funds of the corporation and to perform other services
23 required by the corporation. The State Board of Administration
24 may perform such services and may contract with others to
25 provide any such services and to recover the costs and
26 expenses of providing such services.
27 (n) The corporation shall not be deemed to be a
28 special district or a unit of local government. The provisions
29 of chapter 120, part I of chapter 287, and ss. 215.57-215.83
30 do not apply to the corporation, to any purchase agreements
31 entered into under this section, or to any bonds issued by the
19
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 corporation as provided in this section, except that
2 underwriters, financial advisors, and legal counsel must be
3 selected in a manner consistent with the rules adopted
4 pursuant to the State Bond Act for the selection of service
5 providers and underwriters.
6 (o) In no event shall any of the benefits or earnings
7 of the corporation inure to the benefit of any private person.
8 (p) Unless such officer, employee, or agent acted
9 outside the course and scope of her or his employment or acted
10 in bad faith or with malicious purpose or in a manner
11 exhibiting wanton and willful disregard of human rights,
12 safety, or property, there shall be no liability on the part
13 of, and no cause of action shall arise against, any board
14 member of the corporation or any employee of the corporation
15 or the state for any action taken by them in the performance
16 of their duties under this section.
17 (q) The corporation is exempt from taxation and
18 assessments of any nature whatsoever upon its income and any
19 property, assets, or revenues acquired, received, or used in
20 the furtherance of the purposes provided in this section.
21 (r) The corporation and its corporate existence shall
22 continue until terminated by law; however, the corporation may
23 not be terminated while it has bonds outstanding unless
24 adequate provision is made for the payment of such bonds
25 pursuant to the documents authorizing the issuance of such
26 bonds. Upon termination of the corporation, all its rights and
27 assets in excess of its obligations shall pass to and be
28 vested in the Lawton Chiles Endowment Fund.
29 (s) The Auditor General may conduct a financial audit
30 of the accounts and records of the corporation.
31 (3) POWERS OF THE DEPARTMENT.--
20
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (a) The department is authorized, on behalf of the
2 state, to do all things necessary or desirable to assist the
3 corporation in the execution of its responsibilities, and may:
4 1. Enter into one or more purchase agreements, which
5 may not take effect until ratified by law, to sell to the
6 corporation any or all of the state's right, title, and
7 interest in and to the tobacco settlement agreement;
8 2. Enter any administrative agreements with the
9 corporation, which may not take effect until ratified by law,
10 to fund the administration, operation, and expenses of the
11 corporation from moneys appropriated for such purpose; and
12 3. Execute and deliver any and all other documents and
13 agreements, which may not take effect until ratified by law,
14 necessary or desirable in connection with the sale of any or
15 all of the state's right, title, and interest in and to the
16 tobacco settlement agreement to the corporation or the
17 issuance of the bonds by the corporation.
18 (b) The state covenants with the holders of bonds of
19 the corporation that the state will not limit or alter the
20 authority or the rights under this section vested in the
21 department to fulfill the terms of any agreements, including
22 the terms of any purchase agreement, or in any way impair the
23 rights and remedies of such bondholders as long as any such
24 bonds remain outstanding, unless adequate provision has been
25 made for the payment of such bonds pursuant to the documents
26 authorizing such bonds.
27 (c) Subject to the prior legislative approval set
28 forth in paragraph (2)(e), the department is authorized, on
29 behalf of the state, to make any covenant, representation, or
30 warranty necessary or desirable in connection with the sale of
31 any or all of the state's right, title, and interest in and to
21
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 the tobacco settlement agreement to the corporation or the
2 issuance of the bonds by the corporation.
3 Section 5. If any provision of this act or its
4 application to any person or circumstance is held invalid, the
5 invalidity does not affect other provisions or applications of
6 the act which can be given effect without the invalid
7 provision or application, and to this end the provisions of
8 this act are severable.
9 Section 6. Subsection (2) of section 210.05, Florida
10 Statutes, is amended to read:
11 210.05 Preparation and sale of stamps; discount.--
12 (2) The division shall prescribe, prepare, and furnish
13 stamps of such denominations and quantities as may be
14 necessary for the payment of the tax imposed by this part, and
15 may from time to time and as often as it deems advisable
16 provide for the issuance and exclusive use of stamps of a new
17 design and forbid the use of stamps of any other design.
18 However, all stamps prescribed by the division must be
19 designed and furnished in a fashion that permits
20 identification of the agent or wholesale dealer that affixed
21 the stamp to the particular package of cigarettes by means of
22 a serial number or other mark on the stamp. The division shall
23 make provisions for the sale of such stamps at such places and
24 at such time as it may deem necessary.
25 Section 7. Section 210.185, Florida Statutes, is
26 created to read:
27 210.185 Prohibition on sale or distribution of
28 cigarettes; criminal penalties; administrative sanctions;
29 applicability.--
30 (1) PROHIBITIONS.--It is unlawful for any person:
31 (a) To sell or distribute in this state; to acquire,
22
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 hold, own, possess, or transport, for sale or distribution in
2 this state; or to import, or cause to be imported, into this
3 state for sale or distribution in this state:
4 1. Any cigarettes the package of which:
5 a. Bears any statement, label, stamp, sticker, or
6 notice indicating that the manufacturer did not intend the
7 cigarettes to be sold, distributed, or used in the United
8 States, including but not limited to labels stating "For
9 Export Only," "U.S. Tax-Exempt," "For Use Outside U.S.," or
10 similar wording; or
11 b. Does not comply with:
12 (I) All requirements imposed by or under federal law
13 regarding warnings and other information on packages of
14 cigarettes manufactured, packaged, or imported for sale,
15 distribution, or use in the United States, including but not
16 limited to the precise warning labels specified in the Federal
17 Cigarette Labeling and Advertising Act, 15 U.S.C. 1333; and
18 (II) All federal trademark and copyright laws;
19 2. Any cigarettes imported into the United States in
20 violation of 26 U.S.C. 5754 or any other federal law, or
21 implementing federal regulations;
22 3. Any cigarettes that a person otherwise knows or has
23 reason to know the manufacturer did not intend to be sold,
24 distributed, or used in the United States; or
25 4. Any cigarettes for which there has not been
26 submitted to the Secretary of the U.S. Department of Health
27 and Human Services the list or lists of the ingredients added
28 to tobacco in the manufacture of those cigarettes required by
29 the Federal Cigarette Labeling and Advertising Act, 15 U.S.C.
30 1335a;
31 (b) To alter the package of any cigarettes, before
23
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 sale or distribution to the ultimate consumer, so as to
2 remove, conceal, or obscure any statement, label, stamp,
3 sticker, or notice described in sub-subparagraph (a)1.a. or
4 any health warning that is not specified in or does not
5 conform with the requirements of the Federal Cigarette
6 Labeling and Advertising Act, 15 U.S.C. 1333;
7 (c) To affix any stamp required under this part to the
8 package of any cigarettes described in paragraph (a) or
9 altered in violation of paragraph (b).
10 (2) DOCUMENTATION.--On or before the tenth day of each
11 month, each person permitted to affix the tax stamp to
12 cigarettes shall file with the division, for all cigarettes
13 imported into the United States to which the person has
14 affixed the tax stamp in the preceding month, a copy of the
15 permit issued under the Internal Revenue Code, 26 U.S.C. 5713,
16 to the person importing the cigarettes into the United States
17 which allows that person to import those cigarettes; a copy of
18 the customs form containing, with respect to the cigarettes,
19 the internal revenue tax information required by the U.S.
20 Bureau of Alcohol, Tobacco and Firearms; and a statement,
21 signed by an officer of the manufacturer or importer under
22 penalty of perjury, certifying that the manufacturer or
23 importer has complied with the package health warning and
24 ingredient reporting requirements of the Federal Cigarette
25 Labeling and Advertising Act, 15 U.S.C. 1333 and 1335a, with
26 respect to those cigarettes.
27 (3) CRIMINAL PENALTIES.--Any person who violates
28 subsection (1), either knowing or having reason to know he or
29 she is doing so, or who fails to comply with subsection (2),
30 commits a felony of the third degree, punishable as provided
31 in s. 775.082, s. 775.083, or s. 775.084.
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (4) ADMINISTRATIVE SANCTIONS.--
2 (a) The division may revoke or suspend the permit of
3 any distributing agent or wholesale dealer, or the retail
4 tobacco dealer permit of any retailer, and impose on the
5 permittee a civil penalty, in an amount not to exceed the
6 greater of 500 percent of the retail value of the cigarettes
7 involved or $5,000, upon finding a violation of this section
8 or any implementing rule adopted by the division.
9 (b) Cigarettes that are acquired, held, owned,
10 possessed, transported in, imported into, or sold or
11 distributed in this state in violation of this section are
12 considered contraband and are subject to seizure and
13 forfeiture under this part. Any cigarettes so seized and
14 forfeited shall be destroyed. The cigarettes are considered
15 contraband whether the violation of this section is knowing or
16 otherwise.
17 (5) UNFAIR TRADE PRACTICES.--A violation of subsection
18 (1) or subsection (2) constitutes an unlawful trade practice
19 under part II of chapter 501 and, in addition to any remedies
20 or penalties set forth in this section is subject to any
21 remedies or penalties available for a violation of that part.
22 (6) GENERAL PROVISIONS.--
23 (a) The division shall enforce this section. However,
24 at the request of the division, any law enforcement agency
25 shall enforce this section.
26 (b) For the purpose of enforcing this act, the
27 division and any agency to which the division has delegated
28 enforcement responsibility may request information from any
29 state or local agency, and may share information with, and
30 request information from, any federal agency or any agency of
31 any other state or any local agency thereof.
25
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (c) In addition to any other remedy provided by law,
2 including enforcement as provided in paragraph (a), any person
3 may bring an action for appropriate injunctive or other
4 equitable relief for a violation of this section; for actual
5 damages, if any, sustained by reason of the violation; and, as
6 determined by the court, for interest on the damages from the
7 date of the complaint, taxable costs, and reasonable
8 attorney's fees. If the trier of fact finds that the violation
9 is flagrant, it may increase recovery to an amount not in
10 excess of 3 times the actual damages sustained by reason of
11 the violation.
12 (7) DEFINITIONS.--As used in this section, the term:
13 (a) "Cigarette" means:
14 1. Any roll of tobacco wrapped in paper or tobacco
15 leaf or in any substance not containing tobacco, including a
16 bidi, kretek, or other similar product, which is to be burned;
17 2. Any roll of tobacco wrapped in any substance
18 containing tobacco, including a bidi, kretek, or other similar
19 product, which , because of its appearance, the type of
20 tobacco used in the filler, or its packaging or labeling is
21 likely to be offered to or purchased by consumers as a
22 cigarette described in subparagraph 1.; or
23 3. Loose rolling tobacco that, because of its
24 appearance, type, packaging, or labeling, is likely to be
25 offered to or purchased by consumers as tobacco for making
26 cigarettes.
27 (b) "Importer" means "importer" as that term is
28 defined in 26 U.S.C. 5702(l).
29 (c) "Package" means "package" as that term is defined
30 in 15 U.S.C. 1332(4).
31 (8) APPLICABILITY.--
26
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (a) This section does not apply to cigarettes allowed
2 to be imported or brought into the United States for personal
3 use and cigarettes sold or intended to be sold as duty-free
4 merchandise by a duty-free sales enterprise in accordance with
5 19 U.S.C. 1555(b) and any implementing regulations, but this
6 section does apply to any such cigarettes that are brought
7 back into the customs territory for resale within the customs
8 territory.
9 (b) The penalties provided in this section are in
10 addition to any penalties imposed under any other law.
11 Section 8. Section 210.19, Florida Statutes, is
12 amended to read:
13 210.19 Records to be kept by division.--The division
14 shall keep records showing the total amount of taxes
15 collected, which records shall be open to the public during
16 the regular office hours of the division. The division shall
17 maintain records that identify which agent or wholesale dealer
18 affixed the tax stamp to each package of cigarettes. The
19 identifying records must be made available for public
20 inspection and retained for at least 3 years.
21 Section 9. If any provision of this act or the
22 application thereof to any person or circumstance is held
23 invalid, the invalidity does not affect other provisions or
24 applications of the act which can be given effect without the
25 invalid provision or application, and to this end the
26 provisions of this act are declared severable.
27 Section 10. Section 768.733, Florida Statutes, is
28 created to read:
29 768.733 Punitive damages and bonds in class actions;
30 limitations.--
31 (1) In any civil action that is brought as a certified
27
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 class action, the court may not enter a judgment for punitive
2 damages against a defendant in an amount that, if fully
3 executed upon, would financially destroy or bankrupt the
4 defendant.
5 (2) In any civil action that is brought as a certified
6 class action, the trial court, upon the posting of a bond or
7 equivalent surety as provided in this section, shall stay the
8 execution of any judgment, or portion thereof, entered on
9 account of punitive damages pending completion of any
10 appellate review of the judgment.
11 (3) The required bond or equivalent surety acceptable
12 to the court for imposition of the stay shall be the lower of:
13 (a) The amount of the punitive-damages judgment, plus
14 twice the statutory rate of interest; or
15 (b) Ten percent of the net worth of the defendant as
16 determined by applying generally accepted accounting
17 principles to the defendant's financial status as of December
18 31 of the year prior to the judgment for punitive damages.
19
20 Provided that in no case shall the amount of the required bond
21 or equivalent surety exceed $100 million, regardless of the
22 amount of punitive damages.
23 (4) If, at any time after notice and hearing, the
24 court finds that a defendant who has posted a bond or
25 equivalent surety pursuant to subsection (3) is purposefully
26 moving assets with the intent to avoid the punitive-damages
27 judgment, the court shall increase the bond or equivalent
28 surety to the amount determined pursuant to paragraph (3)(a).
29 If the defendant does not post the additional bond required by
30 the court, the stay shall be revoked.
31 Section 11. This act applies to all cases pending on
28
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 the effective date of this act in which an award for punitive
2 damages has not been finally reduced to judgment through trial
3 and subsequent appeals and to all cases commenced on or after
4 the effective date of this act.
5 Section 12. (1) The Task Force on
6 Tobacco-Settlement-Revenue Protection is created to determine
7 the need for and evaluate methods for protecting the state's
8 tobacco settlement revenue from significant loss. The task
9 force shall, at a minimum, study and make a determination of:
10 (a) The degree of risk posed to the amount of
11 tobacco-settlement revenue as a consequence of a decline in
12 domestic tobacco sales.
13 (b) The degree of risk posed to the tobacco-settlement
14 revenue by potential dissolution or restructure of the tobacco
15 companies that were defendants in the state's suit.
16 (c) The necessity and advisability of taking action to
17 protect the asset value of the tobacco settlement.
18 (d) The options available for protecting the asset
19 value of tobacco-settlement revenues, including
20 securitization, insurance, self-insurance, or a combination of
21 these options.
22 (2) The task force shall submit a report to the
23 Legislature by February 1, 2001. The report shall include
24 findings and results of the task force's studies and
25 determinations and any specific recommendations including
26 recommendations for legislative revisions to address the
27 issues and meet the needs identified under paragraphs (a)-(d)
28 of subsection (1). The task force shall continue to serve for
29 the purpose of providing assistance to the Legislature as
30 needed to review legislative efforts to implement any of the
31 task force's recommendations.
29
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 (3) The task force is to be composed of:
2 (a) The Governor, who shall serve as chair of the task
3 force;
4 (b) The Comptroller;
5 (c) The Insurance Commissioner;
6 (d) Three members of the Senate, who shall be
7 appointed by the President of the Senate; and
8 (e) Three members of the House of Representatives, who
9 shall be appointed by the Speaker of the House of
10 Representatives.
11 (4) The task force may conduct research, hold public
12 hearings, receive testimony, employ consultants, and undertake
13 other activities determined by its members to be necessary.
14 (5) Each task force member may designate a designee as
15 an ex-officio nonvoting member.
16 (6) All official actions by the task force shall be by
17 a majority vote of the membership designated in subsection
18 (3).
19 (7) Staff support for the task force shall be provided
20 by the State Board of Administration.
21 (8) The term of the task force shall expire on July 1,
22 2001.
23 Section 13. For the 2000-2001 fiscal year, the
24 nonrecurring sum of $100,000 from tobacco-settlement revenues
25 is appropriated to the State Board of Administration to
26 support operation of the task force.
27 Section 14. (1) In order to assist Florida tobacco
28 farmers in reducing encumbered debt on stranded investment in
29 equipment, the nonrecurring sum of $5 million is appropriated
30 from the General Revenue Fund to the Department of Agriculture
31 and Consumer Services for the purchase at fair market value of
30
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 equipment associated with agricultural production of tobacco
2 from persons or entities that:
3 (a) Were using such equipment for production of
4 tobacco between April 1 and October 1, 2000, on land within
5 this state; and
6 (b) Sign a binding agreement with the department to
7 cease production of tobacco in this state within 12 months
8 after execution of the agreement.
9 The department may adopt rules that, at a minimum, define and
10 describe the equipment to be purchased under this section,
11 prescribe criteria for identifying persons and entities who
12 are eligible to have such equipment purchased by the
13 department, and prescribe procedures to be followed for
14 equipment purchases. From the funds appropriated by this
15 section, the department is authorized to expend such sums as
16 are reasonable and necessary to administer the program.
17 (2) Equipment purchased by the Department of
18 Agriculture and Consumer Services under this section may be
19 resold by the Department of Management Services. However, no
20 such equipment may be sold, leased, or conveyed to or for use
21 by a person or entity who produces tobacco in this state or
22 holds a quota for production of tobacco in this state. The
23 Department of Management Services shall deposit proceeds of
24 such sale, less reasonable administrative costs, in the
25 General Inspections Trust Fund of the Department of
26 Agriculture and Consumer Services.
27 (3) The Department of Agriculture and Consumer
28 Services may use proceeds from the resale of equipment
29 purchased under this section to continue purchasing equipment
30 and to assist tobacco producers to seek out, experiment with,
31 and develop diverse profitable enterprises and retain
31
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 ownership of their land so that their farms can remain
2 productive agricultural entities and provide ancillary
3 environmental benefits.
4 Section 15. This act shall take effect October 1,
5 2000.
6
7
8 ================ T I T L E A M E N D M E N T ===============
9 And the title is amended as follows:
10 Delete everything before the enacting clause
11
12 and insert:
13 A bill to be entitled
14 An act relating to tobacco; amending s.
15 215.5601, F.S.; defining the term
16 "participating manufacturer"; revising
17 legislative intent; specifying procedures by
18 which a tobacco manufacturer may become a
19 participating manufacturer; providing for
20 signatories to a specified settlement agreement
21 to be participating manufacturers; providing
22 for funds received from participating
23 manufacturers to be deposited into the Tobacco
24 Settlement Clearing Trust Fund; providing for a
25 portion of unappropriated funds to be deposited
26 into the Lawton Chiles Endowment Fund; amending
27 s. 210.02, F.S.; imposing a surtax on
28 cigarettes not manufactured by a participating
29 manufacturer, as defined by the act; providing
30 for calculating the amount of the surtax;
31 amending s. 210.20, F.S.; providing for the
32
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SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 deposit of proceeds of the surtax; creating s.
2 215.5603, F.S.; creating the Tobacco Settlement
3 Financing Corporation; defining terms;
4 providing membership, powers, duties, and
5 functions of the corporation; providing for the
6 purchase of insurance and for the issuance of
7 bonds; providing a limitation on liability;
8 providing powers of the Department of Banking
9 and Finance with respect to the corporation;
10 providing for severability; amending s. 210.05,
11 F.S.; requiring the Division of Alcoholic
12 Beverages and Tobacco to design cigarette tax
13 stamps that will permit identification of the
14 agent or wholesale dealer that affixes the
15 stamp; creating s. 210.185, F.S.; prohibiting
16 the sale and distribution of certain cigarettes
17 not intended for sale or distribution in this
18 country; providing for criminal penalties,
19 administrative sanctions, and unfair trade
20 practices; providing for enforcement by the
21 Division of Alcoholic Beverages and Tobacco;
22 amending s. 210.19, F.S.; requiring the
23 division to maintain specified records;
24 creating s. 768.733, F.S.; prescribing the
25 amount of bond or equivalent surety required to
26 stay the execution of punitive-damages
27 judgments in class-action suits, pending
28 appellate review; providing for application of
29 the act to certain pending cases; providing for
30 a Task Force on Tobacco-Settlement-Revenue
31 Protection; providing for membership and
33
4:39 PM 05/03/00 h1721c1c-0610a
SENATE AMENDMENT
Bill No. CS/HB 1721, 1st Eng.
Amendment No.
1 duties; providing for staff; providing for
2 expiration of the task force; providing an
3 appropriation; providing funds to purchase
4 stranded tobacco farming equipment; providing
5 for resale of purchased equipment with
6 restrictions; providing for use of proceeds
7 from resale of equipment; providing an
8 effective date.
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