Senate Bill sb2286

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    Florida Senate - 2001                                  SB 2286

    By Senator Clary





    41-1015B-01

  1                      A bill to be entitled

  2         An act relating to state revenues; amending s.

  3         215.5601, F.S.; defining the term

  4         "participating manufacturer"; revising

  5         legislative intent; specifying procedures by

  6         which a tobacco product manufacturer may become

  7         a participating manufacturer; providing that

  8         certain tobacco product manufacturers are

  9         participating manufacturers; providing for

10         funds received from participating manufacturers

11         to be deposited into the Department of Banking

12         and Finance Tobacco Settlement Clearing Trust

13         Fund; providing for a portion of unappropriated

14         funds to be deposited into the Lawton Chiles

15         Endowment Fund; amending s. 210.15, F.S.;

16         imposing a supplemental permit fee on wholesale

17         dealers; providing for calculating the amount

18         of the fee; amending s. 210.20, F.S.; providing

19         for the deposit of proceeds of the fee;

20         amending ss. 17.41, 20.435, and 215.5602, F.S.,

21         relating to the Department of Banking and

22         Finance Tobacco Settlement Clearing Trust Fund,

23         the Biomedical Research Trust Fund, and the

24         Florida Biomedical Research Program; conforming

25         provisions to changes made by the act;

26         providing an effective date.

27

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

29

30         Section 1.  Section 215.5601, Florida Statutes, is

31  amended to read:

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  1         215.5601  Lawton Chiles Endowment Fund.--

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

  3  "Lawton Chiles Endowment Fund."

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

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

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

  7  1885 and incorporated into s. 9(c), Art. XII of the State

  8  Constitution of 1968.

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

10  Fund.

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

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

13         (d)  "Participating manufacturer" means any

14  manufacturer of tobacco products which meets the requirements

15  of subsection (4).

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

17  Department of Health, the Department of Children and Family

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

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

20  context indicates.

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

22  Legislature to:

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

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

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

26  initiatives, elder programs, and biomedical research

27  activities.

28         (b)  Ensure that enhancement revenues will be available

29  to finance these important programs and initiatives.

30         (c)  Use funds received from the Department of Banking

31  and Finance Tobacco Settlement Clearing Trust Fund moneys to

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  1  ensure the financial security of vital health and human

  2  services programs for children and elders.

  3         (d)  Encourage the development of community-based

  4  solutions to strengthen and improve the quality of life of

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

  6         (e)  Provide funds for cancer research and

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

  8         (f)  Provide tobacco product manufacturers the

  9  opportunity to voluntarily participate in mitigating the

10  impact of the use of tobacco on the residents of this state.

11         (4)  PARTICIPATING MANUFACTURERS; QUALIFICATIONS.--

12         (a)1.  A tobacco product manufacturer may become a

13  participating manufacturer by entering into an agreement with

14  the Attorney General which provides for the following:

15         a.  Elimination of the manufacturer's outdoor

16  advertising and transit advertisements at the earlier of the

17  expiration of applicable contracts or 4 months after the date

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

19  Attorney General. The manufacturer shall provide a final list

20  of all its outdoor advertising signs and transit

21  advertisements to the Attorney General within 45 days after

22  entering the agreement.

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

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

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

26  Beverages and Tobacco of the Department of Business and

27  Professional Regulation shall calculate the payment amount,

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

29  shall be based on the number of cigarette packages delivered

30  to wholesale dealers for sale in this state by the

31  manufacturer from January 1 until December 31 of the prior

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

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

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

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

  5  number of packages delivered to wholesale dealers for sale in

  6  this state by the four settling manufacturers during the

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

  8         2.  Cigarettes produced by each manufacturer that fully

  9  complies with the agreement entered into with the Attorney

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

11  January 31 are exempt from the permit fee imposed under s.

12  210.15(1)(g) for the 12-month period beginning on the

13  subsequent July 1.

14         (b)  In lieu of paragraph (a), a tobacco product

15  manufacturer may also become a participating manufacturer by:

16         1.  Certifying to the Attorney General that the

17  manufacturer was not manufacturing and selling its cigarette

18  brands in this state before January 1, 1994;

19         2.  Certifying to the Attorney General that the

20  manufacturer is not engaging in outdoor or transit advertising

21  of its cigarettes in this state;

22         3.  Certifying to the Attorney General that the

23  manufacturer will terminate its cigarette sales in this state

24  on or before January 1, 2008;

25         4.  Undertaking to sell cigarettes in this state that

26  are manufactured to deliver less toxins through the use of

27  very low-TSNA flue-cured tobacco and activated

28  charcoal/acetate filters. To meet the requirements of this

29  subparagraph, the manufacturer shall certify to the Attorney

30  General within 90 days after the effective date of this act

31  that all of its cigarettes sold in this state have at least 20

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  1  percent very low-TSNA flue-cured tobacco, as well as activated

  2  charcoal/acetate filters with at least 30 milligrams of

  3  charcoal, and shall certify to the Attorney General within 2

  4  years after the effective date of this act that all of its

  5  cigarettes sold in this state have 100 percent very low-TSNA

  6  flue-cured tobacco, as well as activated charcoal/acetate

  7  filters with at least 30 milligrams of charcoal. For purposes

  8  of this subparagraph, "very low-TSNA flue-cured tobacco" means

  9  tobacco having less that 400 parts per billion of the

10  carcinogenic tobacco specific nitrosamines, NNN and NNK; and

11         5.  Filing a copy of its annual SEC Form 10K with the

12  Attorney General.

13

14  Failure of the tobacco product manufacturer to comply with

15  this paragraph shall result in the manufacturer becoming

16  immediately liable for payment of the permit fee imposed under

17  s. 210.15(1)(g) for all 12-month periods from inception of the

18  fee plus interest as provided in s. 210.15(1)(g)2. and a

19  penalty equal to the amount of the permit fee imposed under s.

20  210.15(1)(g).

21         (c)  Any tobacco product manufacturer that was a

22  defendant in the case of The State of Florida et al., v.

23  American Tobacco Company et al., but was dismissed from such

24  case and is not a signatory to the settlement agreement

25  entered on August 25, 1997, and that certifies to the Attorney

26  General that it will comply with the noneconomic provisions of

27  the settlement agreement is a participating manufacturer. Any

28  tobacco product manufacturer that files a certification under

29  this paragraph and subsequently fails to comply with the

30  noneconomic provisions of the settlement agreement shall

31  become immediately liable for payment of the permit fee

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  1  imposed under s. 210.15(1)(g) for all 12-month periods from

  2  inception of the fee plus interest as provided in s.

  3  210.15(1)(g)2. and a penalty equal to the amount of the permit

  4  fee imposed under s. 210.15(1)(g).

  5         (d)  All tobacco product manufacturers that are

  6  signatories to the settlement agreement entered on August 25,

  7  1997, in the case of The State of Florida et al., v. American

  8  Tobacco Company et al., and the settlement agreement entered

  9  on March 15, 1996, in the case of State of West Virginia,

10  State of Florida, State of Mississippi, Commonwealth of

11  Massachusetts, and State of Louisiana v. Brooke Group Ltd. and

12  Liggett Group, Inc., are participating manufacturers.

13  Cigarettes produced by each such manufacturer that fully

14  complies with the applicable settlement agreement and makes

15  the annual payment required under the agreement by December 31

16  are exempt from the permit fee imposed under s. 210.15(1)(g)

17  for the 12-month period beginning on the subsequent July 1.

18         (e)  Funds received from participating manufacturers

19  shall be deposited into the Department of Banking and Finance

20  Tobacco Settlement Clearing Trust Fund.

21         (5)(4)  LAWTON CHILES ENDOWMENT FUND; CREATION;

22  PURPOSES AND USES.--

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

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

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

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

27  Constitution and shall be funded by settlement moneys received

28  from the Department of Banking and Finance Tobacco Settlement

29  Clearing Trust Fund industry and by moneys received from the

30  sale of the state's right, title, and interest in and to the

31  tobacco settlement agreement, including the right to receive

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  1  payments under such agreement. The endowment fund shall be

  2  exempt from the service charges imposed by s. 215.20.

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

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

  5  be transferred by the board to the Department of Banking and

  6  Finance Tobacco Settlement Clearing Trust Fund, created in s.

  7  17.41, in the amounts provided for in this paragraph.

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

  9  distributed based on legislative appropriations.

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

11  be distributed annually as follows:

12         a.  Fifty percent shall be deposited into a separate

13  account in the Department of Children and Family Services

14  Tobacco Settlement Trust Fund to be appropriated pursuant to

15  paragraph (9)(a) (8)(a);

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

17  deposited into the Biomedical Research Trust Fund in the

18  Department of Health to be appropriated pursuant to paragraph

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

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

21  Health Tobacco Settlement Trust Fund; and

22         c.  The remaining funds shall be deposited into a

23  separate account in the Department of Elderly Affairs Tobacco

24  Settlement Trust Fund to be appropriated pursuant to paragraph

25  (9)(a) (8)(a).

26         (c)  Subject to legislative appropriations, state

27  agencies shall use distributions from the endowment fund to

28  enhance services for children and elders or to support

29  biomedical research initiatives pursuant to s. 215.5602.

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

31  Secretary of Health, the Secretary of Children and Family

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  1  Services, and the Secretary of Health Care Administration

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

  3  children's services eligible for funding from the endowment

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

  5  Affairs, and the Secretary Director of Health Care

  6  Administration shall develop a list of the top five funding

  7  priorities for elder services eligible for funding from the

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

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

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

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

12  the advisory council for elder services created in paragraph

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

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

15  evaluate the request against the mission and goals of the

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

17  consensus for priority requests and recommended endowment

18  funding levels for those priority requests.

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

20  be used to supplant existing revenues.

21         (f)  When advised by the Revenue Estimating Conference

22  that a deficit will occur with respect to the appropriations

23  from the tobacco settlement trust funds of the state agencies

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

25  action to eliminate the deficit. Before implementing the plan

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

27  216.177(2). In developing the plan of action, the Governor

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

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

30  the General Appropriations Act, any reductions in

31  appropriations from the tobacco settlement trust funds of the

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

  2  purposes for which funds were appropriated from the Department

  3  of Banking and Finance that Tobacco Settlement Clearing Trust

  4  Fund for that year.

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

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

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

  8  215.47, in accordance with the fiduciary standards set forth

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

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

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

12  deducted from the earnings accruing to the endowment.

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

14  investment objective shall be long-term preservation of the

15  real value of the principal and a specified regular annual

16  cash outflow for appropriation, as nonrecurring revenue. The

17  schedule of annual cash outflow shall be included within the

18  investment plan adopted pursuant to paragraph (a).

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

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

21  an investment portfolio that maximizes the financial return to

22  the endowment, consistent with the risks inherent in each

23  investment, and that is designed to preserve an appropriate

24  diversification of the portfolio.

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

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

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

28  Representatives, the President of the Senate, the chairs of

29  the respective appropriations and appropriate substantive

30  committees of each chamber, and the Revenue Estimating

31  Conference.

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  1         (e)  Accountability for funds from the endowment which

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

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

  4  expenditure or accountability of funds from the endowment

  5  after transfer to the Department of Banking and Finance

  6  Tobacco Settlement Clearing Trust Fund.

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

  8  endowment no greater than that charged to the Florida

  9  Retirement System.

10         (7)(6)  AVAILABILITY OF FUNDS.--

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

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

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

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

15  following, based on earnings averaged over 3 years:

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

17  spending representing earnings at a rate of 3 percent.

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

19  spending representing earnings at a rate of 4 percent.

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

21  spending representing earnings at a rate of 5 percent.

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

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

24  percent.

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

26  pursuant to s. 216.351, all unencumbered balances of

27  appropriations as of June 30 or undisbursed balances as of

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

29         (8)(7)  ENDOWMENT PRINCIPAL.--The endowment shall

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

31  interest in and to the tobacco settlement agreement and from

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  1  amounts transferred from the Department of Banking and Finance

  2  Tobacco Settlement Clearing Trust Fund.  Amounts to be

  3  transferred from the clearing trust fund shall be in the

  4  following amounts for the following fiscal years:

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

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

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

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

  9         (e)  For all subsequent fiscal years, an amount equal

10  to the greater of $40 million or 10 percent of the payments

11  deposited into the Department of Banking and Finance Tobacco

12  Settlement Clearing Trust Fund pursuant to subsection (4) and

13  s. 210.20(4).

14

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

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

17  of the amount scheduled to be transferred in that fiscal year

18  pursuant to such paragraph $200 million or the amount the

19  endowment receives in that fiscal year pursuant to the sale of

20  the state's right, title, and interest in and to the tobacco

21  settlement agreement.

22         (9)(8)  APPROPRIATIONS OF THE ENDOWMENT

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

24         (a)  Appropriations by the Legislature to the

25  Department of Children and Family Services or the Department

26  of Elderly Affairs from the endowment earnings distributed to

27  those departments shall be from a category called Lawton

28  Chiles Endowment Fund Programs. The departments shall

29  distribute such appropriations pursuant to any directions or

30  limitations provided for in the General Appropriations Act and

31  consistent with this section.

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  1         (b)  Appropriations by the Legislature to the

  2  Department of Health from the endowment earnings distributed

  3  to the department shall be from a category called Florida

  4  Biomedical Research Program. The department shall spend such

  5  funds in accordance with s. 215.5602.

  6         (10)(9)  LAWTON CHILES ENDOWMENT FUND ADVISORY

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

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

  9  and rank for legislative consideration recommendations

10  submitted to the councils by the agencies for evaluation under

11  paragraph (5)(d) (4)(d).

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

13  and Family Services the Lawton Chiles Endowment Fund Advisory

14  Council for Children.

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

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

17  designee, the director of the Florida Federation of Community

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

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

20  Florida Pediatric Association or a designee. The Governor

21  shall appoint the remaining council members, including:

22         a.  An academic expert in child health policy.

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

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

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

26  community-based care.

27         e.  A representative of a statewide child advocacy

28  organization.

29         f.  A youth representing a statewide youth

30  organization.

31

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

  2  child development.

  3         h.  Two consumer caregivers of children.

  4         2.  The council shall adopt internal organizational

  5  procedures, including procedures for the appointment of a

  6  chair, as necessary 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 children's

16  programs submitted by the agencies for evaluation under

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

18  may 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 children.

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 children's

29  advocates and community stakeholders, such as voluntary

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

31

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  1  delivery systems, business and industry, government agencies,

  2  and children's service providers.

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

  4  Affairs the Lawton Chiles Endowment Fund Advisory Council for

  5  Elders.

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

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

  8  designee, the director of the Florida Federation of Community

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

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

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

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

13  Governor shall appoint the remaining council members,

14  including:

15         a.  An academic expert in elder health policy.

16         b.  A professional who has experience with the delivery

17  of home care services.

18         c.  A physician who is certified in geriatric medical

19  care.

20         d.  A professional who has experience with the delivery

21  of services in adult congregate care facilities.

22         e.  A professional who has experience with the delivery

23  of services in a nursing home.

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

25  represent elders.

26         g.  One consumer caregiver for an elderly person.

27         2.  The council shall adopt internal organizational

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

29  for its efficient organization.

30

31

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  1         3.  The department shall provide such staff,

  2  information, and other assistance as is reasonably necessary

  3  to assist the council in carrying out its responsibilities.

  4         4.  Members of the council shall serve without

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

  6  112.061 for travel and other necessary expenses incurred in

  7  the performance of their official duties.

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

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

10  submitted by the agencies for evaluation under paragraph

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

12  include, but are not limited to:

13         a.  Developing criteria and guiding principles for the

14  ranking of programs to be recommended to the Legislature.

15         b.  Evaluating the value of programs or services

16  submitted by the agencies as they relate to overall

17  enhancement for elders.

18         c.  Providing recommendations on the funding levels to

19  be allocated for the ranked programs.

20         d.  Participating in periodic program evaluation to

21  determine the need for continued funding.

22         e.  Soliciting appropriate input from elder advocates

23  and community stakeholders, such as voluntary organizations,

24  community-based care lead agencies, health care delivery

25  systems, business and industry, government agencies, and

26  elder-service providers.

27         Section 2.  Subsection (1) of section 210.15, Florida

28  Statutes, is amended to read:

29         210.15  Permits.--

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

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

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

  2  cigarette permit for each place of business with the Division

  3  of Alcoholic Beverages and Tobacco.  Every application for a

  4  cigarette permit shall be made on forms furnished by the

  5  division and shall set forth the name under which the

  6  applicant transacts or intends to transact business, the

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

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

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

10  business dealing in cigarettes within this state, the

11  application shall state the location of each place of

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

13  shall set forth the names and addresses of the persons

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

15  and addresses of the principal officers thereof and any other

16  information prescribed by the division for the purpose of

17  identification.  The application shall be signed and verified

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

19  in the case of an association or partnership, members or

20  partners thereof, and in the case of a corporation, by an

21  executive officer thereof or by any person specifically

22  authorized by the corporation to sign the application, to

23  which shall be attached the written evidence of this

24  authority.  The cigarette permit for a distributing agent

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

26  be charged.

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

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

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

30  or before July 1, upon making application to the division and

31  upon payment of this annual permit fee.

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  1         (c)  The permit for a distributing agent, wholesale

  2  dealer, or exporter shall be issued only to persons of good

  3  moral character, who are not less than 18 years of age.

  4  Distributing agent, wholesale dealer, or exporter permits to

  5  corporations shall be issued only to corporations whose

  6  officers are of good moral character and not less than 18

  7  years of age.  There shall be no exemptions from the permit

  8  fees herein provided to any persons, association of persons or

  9  corporation, any law to the contrary notwithstanding.  No

10  distributing agent, wholesale dealer, or exporter permit shall

11  be issued to any person who has been convicted within the past

12  5 years of any offense against the cigarette laws of this

13  state or who has been convicted in this state, any other

14  state, or the United States during the past 5 years of any

15  offense designated as a felony by such state or the United

16  States, or to a corporation, any of whose officers have been

17  so convicted.  The term "conviction" shall include an

18  adjudication of guilt on a plea of guilty or a plea of nolo

19  contendere, or the forfeiture of a bond when charged with a

20  crime.

21         (d)  The division may refuse to issue a distributing

22  agent, wholesale, or exporter permit to any person, firm, or

23  corporation whose permit under the cigarette law has been

24  revoked or to any corporation, an officer of which has had his

25  or her permit under the cigarette law revoked, or to any

26  person who is or has been an officer of a corporation whose

27  permit has been revoked under the cigarette law.  Any permit

28  issued to a firm or corporation prohibited from obtaining such

29  permit under the cigarette law may be revoked by the division.

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

31  wholesale dealer, or exporter permit being approved, the

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  1  applicant shall file a set of fingerprints on forms provided

  2  by the division. The applicant shall also file a set of

  3  fingerprints for any person or persons interested directly or

  4  indirectly with the applicant in the business for which the

  5  permit is being sought, when so required by the division.  If

  6  the applicant or any person interested with the applicant,

  7  either directly or indirectly, in the business for which the

  8  permit is sought shall be such a person as is within the

  9  definition of persons to whom a distributing agent, wholesale

10  dealer, or exporter permit shall be denied, then the

11  application may be denied by the division.  If the applicant

12  is a partnership, all members of the partnership are required

13  to file said fingerprints, or if a corporation, all principal

14  officers of the corporation are required to file said

15  fingerprints.  The cigarette permit for a wholesale dealer or

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

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

18  issuing such permit.

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

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

21  course, at an annual cost of $100, on or before July 1, upon

22  making application to the division and upon payment of the

23  annual renewal fee.

24         (g)1.  In addition to the permit fee required by

25  paragraph (f), there shall be a supplemental permit fee for

26  wholesale dealers, applicable to permits granted for periods

27  beginning July 1, 2002, and thereafter. The division shall

28  calculate the supplemental permit fee on January 1 of each

29  year, and the fee shall apply on the following July 1. The fee

30  shall be on a per package basis and shall be calculated as the

31  total annual payment due to the state pursuant to the

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

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

  3  number of packages of cigarettes delivered to wholesale

  4  dealers for sale in this state by the four settling

  5  manufacturers during the previous 12 months, rounded to the

  6  nearest tenth of a cent. Cigarettes produced by participating

  7  manufacturers, as defined in s. 215.5601, shall be exempt from

  8  the supplemental permit fee.

  9         2.  The supplemental fee shall be paid by the dealer to

10  the division upon the first sale or transaction within the

11  state, whether or not such sale or transfer be to the ultimate

12  purchaser or consumer. The seller or dealer shall collect the

13  fee from the purchaser or consumer, and the purchaser or

14  consumer shall pay the fee to the seller. The seller or dealer

15  shall be responsible for the collection of the fee and the

16  payment of the fee to the division. The supplemental permit

17  fee is due not later than the 10th day of the month following

18  the calendar month in which it was incurred, and thereafter

19  shall bear interest at the rate of 1 percent per month. If the

20  amount of fee due for a given period is assessed without

21  allocating it to any particular month, the interest shall

22  begin with the date of the assessment. Whenever cigarettes are

23  shipped from outside the state to anyone other than a

24  wholesale dealer, the person receiving the cigarettes shall be

25  responsible for the supplemental fee and the payment of the

26  fee to the division.

27         (h)(g)  Permittees, by acceptance of their permits,

28  agree that their places of business or vehicles transporting

29  cigarettes shall always be subject to be inspected and

30  searched without a search warrant for the purpose of

31  ascertaining that all provisions of this part are complied

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  1  with by authorized employees of the division and also by

  2  sheriffs, deputy sheriffs, and police officers during business

  3  hours or during any other time such premises are occupied by

  4  the permittee or other persons.  Retail cigarette dealers and

  5  manufacturers' representatives, by dealing in cigarettes,

  6  agree that their places of business or vehicles transporting

  7  cigarettes shall always be subject to inspection and search

  8  without a search warrant for the purpose of ascertaining that

  9  all provisions of this part are complied with by authorized

10  employees of the division and also by sheriffs, deputy

11  sheriffs, and police officers during business hours or other

12  times when the premises are occupied by the retail dealer or

13  manufacturers' representatives or other persons.

14         (i)(h)  No retail sales of cigarettes may be made at a

15  location for which a wholesale dealer, distributing agent, or

16  exporter permit has been issued. The excise tax on sales made

17  to any traveling location, such as an itinerant store or

18  industrial caterer, shall be paid into the General Revenue

19  Fund unallocated. Cigarettes may be purchased for retail

20  purposes only from a person holding a wholesale dealer permit.

21  The invoice for the purchase of cigarettes must show the place

22  of business for which the purchase is made and the cigarettes

23  cannot be transferred to any other place of business for the

24  purpose of resale.

25         Section 3.  Subsection (4) is added to section 210.20,

26  Florida Statutes, to read:

27         210.20  Employees and assistants; distribution of

28  funds.--

29         (4)  The division shall from month to month certify to

30  the Comptroller the amount derived from the supplemental

31  permit fee imposed by s. 210.15(1)(g), and that amount shall

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  1  be transferred from the Alcoholic Beverage and Tobacco Trust

  2  Fund and credited to the Department of Banking and Finance

  3  Tobacco Settlement Clearing Trust Fund.

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

  5  Statutes, is amended to read:

  6         17.41  Department of Banking and Finance Tobacco

  7  Settlement Clearing Trust Fund.--

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

  9  agreement received by the state shall be immediately deposited

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

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

12  Clearing Trust Fund.

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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  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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  1            *****************************************

  2                          SENATE SUMMARY

  3    Revises legislative intent relating to state revenues
      derived from tobacco manufacturers. Defines the term
  4    "participating manufacturer." Specifies procedures by
      which a tobacco product manufacturer may become a
  5    participating manufacturer. Provides that certain tobacco
      product manufacturers are participating manufacturers.
  6    Provides for funds received from participating
      manufacturers to be deposited into the Department of
  7    Banking and Finance Tobacco Settlement Clearing Trust
      Fund. Provides for a portion of unappropriated funds to
  8    be deposited into the Lawton Chiles Endowment Fund.
      Imposes a supplemental permit fee on wholesale dealers.
  9    Provides for calculating the amount of the supplemental
      fee. Provides for the deposit of proceeds of the fee.
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