Senate Bill sb2214

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    Florida Senate - 2001                                  SB 2214

    By Senator Burt





    41-1291A-01

  1                      A bill to be entitled

  2         An act relating to tobacco-settlement

  3         agreements; amending s. 215.5601, F.S.;

  4         defining the term "participating manufacturer";

  5         revising legislative intent; specifying

  6         procedures by which a tobacco manufacturer may

  7         become a participating manufacturer; providing

  8         for signatories to a specified settlement

  9         agreement to be participating manufacturers;

10         providing for funds received from participating

11         manufacturers to be deposited into the Tobacco

12         Settlement Clearing Trust Fund; providing for a

13         portion of unappropriated funds to be deposited

14         into the Lawton Chiles Endowment Fund; amending

15         s. 210.02, F.S.; imposing a price-equalization

16         assessment on cigarettes not manufactured by a

17         participating manufacturer, as defined by the

18         act; providing for calculating the amount of

19         the assessment; amending s. 210.20, F.S.;

20         providing for the deposit of proceeds of the

21         assessment; amending ss. 17.41, 20.435,

22         215.5602, F.S., relating to the Tobacco

23         Settlement Clearing Trust Fund, the Biomedical

24         Research Trust Fund, and the Florida Biomedical

25         Research Program; conforming provisions to

26         changes made by the act; providing an effective

27         date.

28

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

30

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  1         Section 1.  Section 215.5601, Florida Statutes, is

  2  amended to read:

  3         215.5601  Lawton Chiles Endowment Fund.--

  4         (1)  SHORT TITLE.--This section may be cited as the

  5  "Lawton Chiles Endowment Fund."

  6         (2)  DEFINITIONS.--As used in this section:

  7         (a)  "Board" means the State Board of Administration

  8  established by s. 16, Art. IX of the State Constitution of

  9  1885 and incorporated into s. 9(c), Art. XII of the State

10  Constitution of 1968.

11         (b)  "Endowment" means the Lawton Chiles Endowment

12  Fund.

13         (c)  "Earnings" means all income generated by

14  investments and the net change in the market value of assets.

15         (d)  "Participating manufacturer" means any

16  manufacturer of tobacco products which meets the requirements

17  of subsection (4).

18         (e)(d)  "State agency" or "state agencies" means the

19  Department of Health, the Department of Children and Family

20  Services, the Department of Elderly Affairs, or the Agency for

21  Health Care Administration, or any combination thereof, as the

22  context indicates.

23         (3)  LEGISLATIVE INTENT.--It is the intent of the

24  Legislature to:

25         (a)  Provide a perpetual source of funding for the

26  future of state children's health programs, child welfare

27  programs, children's community-based health and human services

28  initiatives, elder programs, and biomedical research

29  activities.

30         (b)  Ensure that enhancement revenues will be available

31  to finance these important programs and initiatives.

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  1         (c)  Use funds received from the Tobacco Settlement

  2  Clearing Trust Fund moneys to ensure the financial security of

  3  vital health and human services programs for children and

  4  elders.

  5         (d)  Encourage the development of community-based

  6  solutions to strengthen and improve the quality of life of

  7  Florida's most vulnerable citizens, its children and elders.

  8         (e)  Provide funds for cancer research and

  9  public-health research for diseases linked to tobacco use.

10         (f)  Provide tobacco manufacturers the opportunity to

11  voluntarily participate in mitigating the impact of the use of

12  tobacco on the residents of this state.

13         (4)  PARTICIPATING MANUFACTURERS; QUALIFICATIONS.--

14         (a)1.  A tobacco manufacturer may become a

15  participating manufacturer by entering into an agreement with

16  the Attorney General which provides for the following:

17         a.  Elimination of the manufacturer's outdoor

18  advertising and transit advertisements at the earlier of the

19  expiration of applicable contracts or 4 months after the date

20  the final list of outdoor advertising signs is supplied to the

21  Attorney General. The manufacturer shall provide a final list

22  of all its outdoor advertising signs and transit

23  advertisements to the Attorney General within 45 days after

24  entering the agreement.

25         b.  Support of the state's efforts to mitigate the

26  impact of the use of tobacco through annual payments to the

27  state. On January 1 of each year, the Division of Alcoholic

28  Beverages and Tobacco of the Department of Business and

29  Professional Regulation shall calculate the payment amount,

30  which is due by January 31 of that year. The payment amount

31  shall be based on the number of cigarette packages delivered

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  1  to wholesale dealers for sale in this state by the

  2  manufacturer from January 1 until December 31 of the prior

  3  year. The payment amount per package shall be calculated as

  4  the total annual payment due to the state pursuant to the

  5  settlement agreement in the case of The State of Florida et

  6  al., v. American Tobacco Company et al., divided by the total

  7  number of packages delivered to wholesale dealers for sale in

  8  this state by the four settling manufacturers during the

  9  previous 12 months, rounded to the nearest tenth of a cent.

10         2.  Cigarettes produced by each manufacturer that fully

11  complies with the agreement entered into with the Attorney

12  General under subparagraph 1. and makes the annual payment by

13  January 31 are exempt from the assessment on cigarettes

14  imposed under s. 210.02(6) for the subsequent 12-month period.

15         (b)  All tobacco manufacturers that are signatories to

16  the settlement agreement entered on August 25, 1997, in the

17  case of The State of Florida et al., v. American Tobacco

18  Company et al., and the settlement agreement entered on March

19  15, 1996, in the case of State of West Virginia, State of

20  Florida, State of Mississippi, Commonwealth of Massachusetts,

21  and State of Louisiana v. Brooke Group Ltd. and Liggett Group,

22  Inc., are participating manufacturers. Cigarettes produced by

23  each such manufacturer that fully complies with the applicable

24  settlement agreement and makes the annual payment required

25  under the agreement by December 31 are exempt from the

26  assessment on cigarettes imposed under s. 210.02(6) for the

27  subsequent 12-month period.

28         (c)  Funds received from participating manufacturers

29  shall be deposited into the Department of Banking and Finance

30  Tobacco Settlement Clearing Trust Fund.

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  1         (5)(4)  LAWTON CHILES ENDOWMENT FUND; CREATION;

  2  PURPOSES AND USES.--

  3         (a)  There is created the Lawton Chiles Endowment Fund,

  4  to be administered by the State Board of Administration. The

  5  endowment shall serve as a clearing trust fund not subject to

  6  termination pursuant to s. 19(f), Art. III of the State

  7  Constitution and shall be funded by settlement moneys received

  8  from the Tobacco Settlement Clearing Trust Fund industry and

  9  by moneys received from the sale of the state's right, title,

10  and interest in and to the tobacco settlement agreement,

11  including the right to receive payments under such agreement.

12  The endowment fund shall be exempt from the service charges

13  imposed by s. 215.20.

14         (b)  Funds from the endowment that are available for

15  legislative appropriation pursuant to subsection (7) (6) shall

16  be transferred by the board to the Tobacco Settlement Clearing

17  Trust Fund, created in s. 17.41, in the amounts provided for

18  in this paragraph.

19         1.  For fiscal year 2000-2001, funds shall be

20  distributed based on legislative appropriations.

21         2.  For fiscal year 2001-2002 and beyond, funds shall

22  be distributed annually as follows:

23         a.  Fifty percent shall be deposited into a separate

24  account in the Department of Children and Family Services

25  Tobacco Settlement Trust Fund to be appropriated pursuant to

26  paragraph (9)(a) (8)(a);

27         b.  Thirty-three and one-half percent shall be

28  deposited into the Biomedical Research Trust Fund in the

29  Department of Health to be appropriated pursuant to paragraph

30  (9)(a) (8)(b), if such a trust fund is created by law;

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  1  otherwise, the funds shall be deposited into the Department of

  2  Health Tobacco Settlement Trust Fund; and

  3         c.  The remaining funds shall be deposited into a

  4  separate account in the Department of Elderly Affairs Tobacco

  5  Settlement Trust Fund to be appropriated pursuant to paragraph

  6  (9)(a) (8)(a).

  7         (c)  Subject to legislative appropriations, state

  8  agencies shall use distributions from the endowment fund to

  9  enhance services for children and elders or to support

10  biomedical research initiatives pursuant to s. 215.5602.

11         (d)  No later than October 1 of each year, the

12  Secretary of Health, the Secretary of Children and Family

13  Services, and the Secretary of Health Care Administration

14  shall develop a list of the top five funding priorities for

15  children's services eligible for funding from the endowment

16  funds, and the Secretary of Health, the Secretary of Elderly

17  Affairs, and the Secretary Director of Health Care

18  Administration shall develop a list of the top five funding

19  priorities for elder services eligible for funding from the

20  endowment funds. No later than November 15 of each year, the

21  list for children's services must be submitted to the advisory

22  council for children's services created in paragraph (10)(a)

23  (9)(a), and the list for elder services must be submitted to

24  the advisory council for elder services created in paragraph

25  (10)(a) (9)(b). The purposes of using the advisory councils

26  are to evaluate the funding priorities of the agencies, to

27  evaluate the request against the mission and goals of the

28  agencies, to allow for public input and advocacy, and to gain

29  consensus for priority requests and recommended endowment

30  funding levels for those priority requests.

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  1         (e)  Funds distributed from the endowment fund may not

  2  be used to supplant existing revenues.

  3         (f)  When advised by the Revenue Estimating Conference

  4  that a deficit will occur with respect to the appropriations

  5  from the tobacco settlement trust funds of the state agencies

  6  in any fiscal year, the Governor shall develop a plan of

  7  action to eliminate the deficit. Before implementing the plan

  8  of action, the Governor must comply with the provisions of s.

  9  216.177(2). In developing the plan of action, the Governor

10  shall, to the extent possible, preserve legislative policy and

11  intent, and, absent any specific directions to the contrary in

12  the General Appropriations Act, any reductions in

13  appropriations from the tobacco settlement trust funds of the

14  state agencies for a fiscal year shall be prorated among the

15  purposes for which funds were appropriated from that Tobacco

16  Settlement Clearing Trust Fund for that year.

17         (6)(5)  ADMINISTRATION OF THE ENDOWMENT.--

18         (a)  The board is authorized to invest and reinvest

19  funds of the endowment in those securities listed in s.

20  215.47, in accordance with the fiduciary standards set forth

21  in s. 215.47(9) and consistent with an investment plan

22  developed by the executive director and approved by the board.

23  Costs and fees of the board for investment services shall be

24  deducted from the earnings accruing to the endowment.

25         (b)  The endowment shall be managed as an annuity. The

26  investment objective shall be long-term preservation of the

27  real value of the principal and a specified regular annual

28  cash outflow for appropriation, as nonrecurring revenue. The

29  schedule of annual cash outflow shall be included within the

30  investment plan adopted pursuant to paragraph (a).

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  1         (c)  The board shall establish a separate account for

  2  the funds of the endowment. The board shall design and operate

  3  an investment portfolio that maximizes the financial return to

  4  the endowment, consistent with the risks inherent in each

  5  investment, and that is designed to preserve an appropriate

  6  diversification of the portfolio.

  7         (d)  No later than August 15 and February 15 of each

  8  year, the board shall report on the financial status of the

  9  endowment to the Governor, the Speaker of the House of

10  Representatives, the President of the Senate, the chairs of

11  the respective appropriations and appropriate substantive

12  committees of each chamber, and the Revenue Estimating

13  Conference.

14         (e)  Accountability for funds from the endowment which

15  have been appropriated to a state agency shall reside with the

16  state agency. The board is not responsible for the proper

17  expenditure or accountability of funds from the endowment

18  after transfer to the Tobacco Settlement Clearing Trust Fund.

19         (f)  The board may collect a fee for service from the

20  endowment no greater than that charged to the Florida

21  Retirement System.

22         (7)(6)  AVAILABILITY OF FUNDS.--

23         (a)  Funds from the endowment shall not be available

24  for appropriation to a state agency until July 1, 2000.

25  Beginning July 1, 2000, the maximum annual amount of endowment

26  funds that may be appropriated shall be in accordance with the

27  following, based on earnings averaged over 3 years:

28         1.  Beginning July 1, 2000, no more than a level of

29  spending representing earnings at a rate of 3 percent.

30         2.  Beginning July 1, 2001, no more than a level of

31  spending representing earnings at a rate of 4 percent.

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  1         3.  Beginning July 1, 2002, no more than a level of

  2  spending representing earnings at a rate of 5 percent.

  3         4.  Beginning July 1, 2003, and thereafter, no more

  4  than a level of spending representing earnings at a rate of 6

  5  percent.

  6         (b)  Notwithstanding the provisions of s. 216.301 and

  7  pursuant to s. 216.351, all unencumbered balances of

  8  appropriations as of June 30 or undisbursed balances as of

  9  December 31 shall revert to the endowment's principal.

10         (8)(7)  ENDOWMENT PRINCIPAL.--The endowment shall

11  receive moneys from the sale of the state's right, title, and

12  interest in and to the tobacco settlement agreement and from

13  amounts transferred from the Department of Banking and Finance

14  Tobacco Settlement Clearing Trust Fund.  Amounts to be

15  transferred from the clearing trust fund shall be in the

16  following amounts for the following fiscal years:

17         (a)  For fiscal year 1999-2000, $1.1 billion;

18         (b)  For fiscal year 2000-2001, $200 million;

19         (c)  For fiscal year 2001-2002, $200 million; and

20         (d)  For fiscal year 2002-2003, $200 million; and.

21         (e)  For all subsequent fiscal years, a minimum of $25

22  million.

23

24  Amounts to be transferred pursuant to paragraphs (b), (c), and

25  (d), and (e) shall be reduced by an amount equal to the lesser

26  of $200 million or the amount the endowment receives in that

27  fiscal year pursuant to the sale of the state's right, title,

28  and interest in and to the tobacco settlement agreement.

29         (9)(8)  APPROPRIATIONS OF THE ENDOWMENT

30  EARNINGS.--Beginning with fiscal year 2001-2002:

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  1         (a)  Appropriations by the Legislature to the

  2  Department of Children and Family Services or the Department

  3  of Elderly Affairs from the endowment earnings distributed to

  4  those departments shall be from a category called Lawton

  5  Chiles Endowment Fund Programs. The departments shall

  6  distribute such appropriations pursuant to any directions or

  7  limitations provided for in the General Appropriations Act and

  8  consistent with this section.

  9         (b)  Appropriations by the Legislature to the

10  Department of Health from the endowment earnings distributed

11  to the department shall be from a category called Florida

12  Biomedical Research Program. The department shall spend such

13  funds in accordance with s. 215.5602.

14         (10)(9)  LAWTON CHILES ENDOWMENT FUND ADVISORY

15  COUNCILS.--There are established the Lawton Chiles Endowment

16  Fund Advisory Councils, the purpose of which is to evaluate

17  and rank for legislative consideration recommendations

18  submitted to the councils by the agencies for evaluation under

19  paragraph (5)(d) (4)(d).

20         (a)  There is created within the Department of Children

21  and Family Services the Lawton Chiles Endowment Fund Advisory

22  Council for Children.

23         1.  The council shall consist of 13 members, including

24  the director of the United Way of Florida, Inc., or a

25  designee, the director of the Florida Federation of Community

26  Foundations or a designee, the director of the Florida Foster

27  Parents Association or a designee, and the director of the

28  Florida Pediatric Association or a designee. The Governor

29  shall appoint the remaining council members, including:

30         a.  An academic expert in child health policy.

31         b.  A representative of a children's services council.

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  1         c.  A representative of the Guardian Ad Litem Program.

  2         d.  A representative of a child welfare lead agency for

  3  community-based care.

  4         e.  A representative of a statewide child advocacy

  5  organization.

  6         f.  A youth representing a statewide youth

  7  organization.

  8         g.  A professional who has expertise in the area of

  9  child development.

10         h.  Two consumer caregivers of children.

11         2.  The council shall adopt internal organizational

12  procedures, including procedures for the appointment of a

13  chair, as necessary for its efficient organization.

14         3.  The department shall provide such staff,

15  information, and other assistance as is reasonably necessary

16  to assist the council in carrying out its responsibilities.

17         4.  Members of the council shall serve without

18  compensation, but may receive reimbursement as provided in s.

19  112.061 for travel and other necessary expenses incurred in

20  the performance of their official duties.

21         5.  Before February 1 of each year, the council shall

22  advise the Legislature as to its ranking of the children's

23  programs submitted by the agencies for evaluation under

24  paragraph (5)(d) (4)(d). The responsibilities of the council

25  may include, but are not limited to:

26         a.  Developing criteria and guiding principles for the

27  ranking of programs to be recommended to the Legislature.

28         b.  Evaluating the value of programs or services

29  submitted by the agencies as they relate to overall

30  enhancement for children.

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  1         c.  Providing recommendations on the funding levels to

  2  be allocated for the ranked programs.

  3         d.  Participating in periodic program evaluation to

  4  determine the need for continued funding.

  5         e.  Soliciting appropriate input from children's

  6  advocates and community stakeholders, such as voluntary

  7  organizations, community-based care lead agencies, health care

  8  delivery systems, business and industry, government agencies,

  9  and children's service providers.

10         (b)  There is created within the Department of Elderly

11  Affairs the Lawton Chiles Endowment Fund Advisory Council for

12  Elders.

13         1.  The council shall consist of 13 members, including

14  the director of the United Way of Florida, Inc., or a

15  designee, the director of the Florida Federation of Community

16  Foundations or a designee, the director of the Florida branch

17  of the American Association of Retired Persons or a designee,

18  the director of the Florida Council on Aging or a designee,

19  and the State Long-Term Care Ombudsman or a designee. The

20  Governor shall appoint the remaining council members,

21  including:

22         a.  An academic expert in elder health policy.

23         b.  A professional who has experience with the delivery

24  of home care services.

25         c.  A physician who is certified in geriatric medical

26  care.

27         d.  A professional who has experience with the delivery

28  of services in adult congregate care facilities.

29         e.  A professional who has experience with the delivery

30  of services in a nursing home.

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  1         f.  Two persons who are over the age of 60 years to

  2  represent elders.

  3         g.  One consumer caregiver for an elderly person.

  4         2.  The council shall adopt internal organizational

  5  procedures, including the appointment of a chair, as necessary

  6  for its efficient organization.

  7         3.  The department shall provide such staff,

  8  information, and other assistance as is reasonably necessary

  9  to assist the council in carrying out its responsibilities.

10         4.  Members of the council shall serve without

11  compensation, but may receive reimbursement as provided in s.

12  112.061 for travel and other necessary expenses incurred in

13  the performance of their official duties.

14         5.  Before February 1 of each year, the council shall

15  advise the Legislature as to its ranking of the elder programs

16  submitted by the agencies for evaluation under paragraph

17  (5)(d) (4)(d). The responsibilities of the council may

18  include, but are not limited to:

19         a.  Developing criteria and guiding principles for the

20  ranking of programs to be recommended to the Legislature.

21         b.  Evaluating the value of programs or services

22  submitted by the agencies as they relate to overall

23  enhancement for elders.

24         c.  Providing recommendations on the funding levels to

25  be allocated for the ranked programs.

26         d.  Participating in periodic program evaluation to

27  determine the need for continued funding.

28         e.  Soliciting appropriate input from elder advocates

29  and community stakeholders, such as voluntary organizations,

30  community-based care lead agencies, health care delivery

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  1  systems, business and industry, government agencies, and

  2  elder-service providers.

  3         Section 2.  Section 210.02, Florida Statutes, is

  4  amended to read:

  5         210.02  Cigarette tax imposed; collection.--

  6         (1)  An excise or privilege tax, in addition to all

  7  other taxes of every kind imposed by law, is imposed upon the

  8  sale, receipt, purchase, possession, consumption, handling,

  9  distribution, and use of cigarettes in this state, in the

10  following amounts, except as hereinafter otherwise provided,

11  for cigarettes of standard dimensions:

12         (a)  Upon all cigarettes weighing not more than 3

13  pounds per thousand, 16.95 mills on each cigarette.

14         (b)  Upon all cigarettes weighing more than 3 pounds

15  per thousand and not more than 6 inches long, 33.9 mills on

16  each cigarette.

17         (c)  Upon all cigarettes weighing more than 3 pounds

18  per thousand and more than 6 inches long, 67.8 mills on each

19  cigarette.

20         (2)  The description of cigarettes contained in

21  paragraphs (a), (b), and (c) of subsection (1) are hereby

22  declared to be standard as to dimensions for taxing purposes

23  as provided in this law and should any cigarette be received,

24  purchased, possessed, sold, offered for sale, given away, or

25  used of a size other than of standard dimensions, the same

26  shall be taxed at the rate of 1.41 cents on each such

27  cigarette.

28         (3)  When cigarettes as described in paragraph (1)(a)

29  are packed in varying quantities of 20 cigarettes or less,

30  except manufacturer's free samples authorized under s.

31  210.04(9), the following rate shall govern:

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  1         (a)  Packages containing 10 cigarettes or less require

  2  a 16.95-cent tax.

  3         (b)  Packages containing more than 10 but not more than

  4  20 cigarettes require a 33.9-cent tax.

  5         (4)  When cigarettes as described in paragraph (1)(b)

  6  are packed in varying quantities of 20 cigarettes or less,

  7  except manufacturer's free samples authorized under s.

  8  210.04(9), the following rates shall govern:

  9         (a)  Packages containing 10 cigarettes or less require

10  a 33.9-cent tax.

11         (b)  Packages containing more than 10 but not more than

12  20 cigarettes require a 67.8-cent tax.

13         (5)  When cigarettes as described in paragraph (1)(c)

14  are packed in varying quantities of 20 cigarettes or less,

15  except manufacturer's free samples authorized under s.

16  210.04(9), the following rates shall govern:

17         (a)  Packages containing 10 cigarettes or less require

18  a 67.8-cent tax.

19         (b)  Packages containing more than 10 but not more than

20  20 cigarettes require a 135.6-cent tax.

21         (6)  For cigarettes not manufactured by a participating

22  manufacturer as defined in s. 215.5601, beginning February 1,

23  2002, a price-equalization assessment shall be added to the

24  amounts otherwise provided in this section. The division shall

25  calculate the assessment on January 1 of each year, and the

26  assessment shall apply on February 1. The assessment per

27  package shall be calculated as the total annual payment due to

28  the state pursuant to the settlement agreement in the case of

29  The State of Florida et al., v. American Tobacco Company et

30  al., divided by the total number of packages of cigarettes

31  delivered to wholesale dealers for sale in this state by the

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  1  four settling manufacturers during the previous 12 months,

  2  rounded to the nearest tenth of a cent.

  3         (7)(6)  This tax and any applicable assessment shall be

  4  paid by the dealer to the division for deposit and

  5  distribution as hereinafter provided upon the first sale or

  6  transaction within the state, whether or not such sale or

  7  transfer be to the ultimate purchaser or consumer.  The seller

  8  or dealer shall collect the tax and any applicable assessment

  9  from the purchaser or consumer, and the purchaser or consumer

10  shall pay the tax and any applicable assessment to the seller.

11  The seller or dealer shall be responsible for the collection

12  of the tax and any applicable assessment and the payment of

13  the same to the division. All taxes and any applicable

14  assessment are due not later than the 10th day of the month

15  following the calendar month in which they were incurred, and

16  thereafter shall bear interest at the rate of 1 percent per

17  month. If the amount of tax and any applicable assessment due

18  for a 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 and any applicable assessment on said

24  cigarettes and the payment of 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.--

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    Florida Senate - 2001                                  SB 2214
    41-1291A-01




  1         (1)  The division under the applicable rules of the

  2  Department of Management Services shall have the power to

  3  employ such employees and assistants and incur such other

  4  expenses as may be necessary for the administration of this

  5  part, within the limits of an appropriation for the operation

  6  of the Department of Business and Professional Regulation as

  7  may be authorized by the General Appropriations Act.

  8         (2)  As collections are received by the division from

  9  such cigarette taxes, it shall pay the same into a trust fund

10  in the State Treasury designated "Cigarette Tax Collection

11  Trust Fund" which shall be paid and distributed as follows:

12         (a)  The division shall from month to month certify to

13  the Comptroller the amount derived from the cigarette tax

14  imposed by  s. 210.02(1)-(5) s. 210.02 the service charges

15  provided for in s. 215.20 and less 0.9 percent of the amount

16  derived from the cigarette tax imposed by s. 210.02, which

17  shall be deposited into the Alcoholic Beverage and Tobacco

18  Trust Fund, specifying the amounts to be transferred from the

19  Cigarette Tax Collection Trust Fund and credited on the basis

20  of 2.9 percent of the net collections to the Revenue Sharing

21  Trust Fund for Counties and 29.3 percent of the net

22  collections for the funding of indigent health care to the

23  Public Medical Assistance Trust Fund.

24         (b)  The division shall from month to month certify to

25  the Comptroller the amount derived from the assessment imposed

26  by s. 210.02(6), and that amount shall be transferred from the

27  Cigarette Tax Collection Trust Fund and credited to the Lawton

28  Chiles Endowment Fund.

29         (c)(b)  The division shall from month to month certify

30  to the Comptroller the amount derived from the cigarette tax

31  imposed by s. 210.02 on all cigarettes sold at retail on any

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    Florida Senate - 2001                                  SB 2214
    41-1291A-01




  1  property of the Inter-American Center Authority, created by

  2  chapter 554, and such amount, less the service charge provided

  3  for in s. 215.20, shall be paid to said Inter-American Center

  4  Authority by warrant drawn by the Comptroller upon the State

  5  Treasury, which amount is hereby appropriated monthly out of

  6  such Cigarette Tax Collection Trust Fund.

  7         (d)(c)  Beginning January 1, 1999, and continuing for

  8  10 years thereafter, the division shall from month to month

  9  certify to the Comptroller the amount derived from the

10  cigarette tax imposed by s. 210.02, less the service charges

11  provided for in s. 215.20 and less 0.9 percent of the amount

12  derived from the cigarette tax imposed by s. 210.02 which

13  shall be deposited into the Alcoholic Beverage and Tobacco

14  Trust Fund, specifying an amount equal to 2.59 percent of the

15  net collections, and that amount shall be paid to the Board of

16  Directors of the H. Lee Moffitt Cancer Center and Research

17  Institute, established under s. 240.512, by warrant drawn by

18  the Comptroller upon the State Treasury. These funds are

19  hereby appropriated monthly out of the Cigarette Tax

20  Collection Trust Fund, to be used for the purpose of

21  constructing, furnishing, and equipping a cancer research

22  facility at the University of South Florida adjacent to the H.

23  Lee Moffitt Cancer Center and Research Institute.  In fiscal

24  years 1999-2000 and thereafter with the exception of fiscal

25  year 2008-2009, the appropriation to the H. Lee Moffitt Moffit

26  Cancer Center and Research Institute authorized by this

27  paragraph shall not be less than the amount which would have

28  been paid to the H. Lee Moffitt Cancer Center and Research

29  Institute for fiscal year 1998-1999 had payments been made for

30  the entire fiscal year rather than for a 6-month period

31  thereof.

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    Florida Senate - 2001                                  SB 2214
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  1         (3)  After all distributions hereinabove provided for

  2  have been made, the balance of the revenue produced from the

  3  tax imposed by this part shall be deposited in the General

  4  Revenue Fund.

  5         Section 4.  Subsection (4) of section 17.41, Florida

  6  Statutes, is amended to read:

  7         17.41  Department of Banking and Finance Tobacco

  8  Settlement Clearing Trust Fund.--

  9         (4)  Net proceeds of the sale of the tobacco settlement

10  agreement received by the state shall be immediately deposited

11  into the Lawton Chiles Endowment Fund, created in s. 215.5601

12  s. 215.5601(4), without deposit to the Tobacco Settlement

13         Section 5.  Paragraph (h) of subsection (1) of section

14  20.435, Florida Statutes, is amended to read:

15         20.435  Department of Health; trust funds.--

16         (1)  The following trust funds are hereby created, to

17  be administered by the Department of Health:

18         (h)  Biomedical Research Trust Fund.

19         1.  Funds to be credited to the trust fund shall

20  consist of funds deposited pursuant to s. 215.5601(5) s.

21  215.5601(4). Funds shall be used for the purposes of the

22  Florida Biomedical Research Program as specified in s.

23  215.5602. The trust fund is exempt from the service charges

24  imposed by s. 215.20.

25         2.  Notwithstanding the provisions of s. 216.301 and

26  pursuant to s. 216.351, any balance in the trust fund at the

27  end of any fiscal year shall remain in the trust fund at the

28  end of the year and shall be available for carrying out the

29  purposes of the trust fund.

30         3.  The trust fund shall, unless terminated sooner, be

31  terminated on July 1, 2004.

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    Florida Senate - 2001                                  SB 2214
    41-1291A-01




  1         Section 6.  Subsection (1) of section 215.5602, Florida

  2  Statutes, is amended to read:

  3         215.5602  Florida Biomedical Research Program.--

  4         (1)  There is established within the Department of

  5  Health the Florida Biomedical Research Program funded by the

  6  proceeds of the Lawton Chiles Endowment Fund pursuant to s.

  7  215.5601 s. 215.5601(4). The purpose of the Florida Biomedical

  8  Research Program is to support research initiatives that

  9  address the health care problems of Floridians in the areas of

10  cancer, cardiovascular disease, stroke, and pulmonary disease.

11  The long-term goals of the program are to:

12         (a)  Improve the health of Floridians by researching

13  better prevention, diagnoses, and treatments for cancer,

14  cardiovascular disease, stroke, and pulmonary disease.

15         (b)  Expand the foundation of biomedical knowledge

16  relating to the prevention, diagnosis, and treatment of

17  diseases related to tobacco use, including cancer,

18  cardiovascular disease, stroke, and pulmonary disease.

19         (c)  Improve the quality of the state's academic health

20  centers by bringing the advances of biomedical research into

21  the training of physicians and other health care providers.

22         (d)  Increase the state's per capita funding for

23  biomedical research by undertaking new initiatives in

24  biomedical research that will attract additional funding from

25  outside the state.

26         (e)  Stimulate economic activity in the state in areas

27  related to biomedical research, such as the research and

28  production of pharmaceuticals, biotechnology, and medical

29  devices.

30         Section 7.  This act shall take effect upon becoming a

31  law.

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    Florida Senate - 2001                                  SB 2214
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  1            *****************************************

  2                          SENATE SUMMARY

  3    Imposes a price-equalization assessment on cigarettes
      that are manufactured by a manufacturer that does not
  4    participate in an agreement to support the state's
      efforts to mitigate the impact of the use of tobacco.
  5    Specifies the terms under which a manufacturer may
      participate in such an agreement and be exempt from the
  6    assessment. Provides for the use of funds received from
      manufacturers who participate in such an agreement and of
  7    funds received from assessments against manufacturers who
      do not participate in such an agreement. (See bill for
  8    details.)

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