HB 1359 2003
1	A bill to be entitled
2	An act relating to the tax on tobacco products; amending
3	s. 210.01, F.S.; revising and providing additional
4	definitions; amending s. 210.05, F.S.; revising authority
5	of the Division of Alcoholic Beverages and Tobacco to
6	prescribe certain stamps to certain persons; deleting
7	references to wholesalers of cigarettes; requiring the
8	division to revoke certain licenses under certain
9	circumstances; creating s. 210.051, F.S.; regulating
10	delivery sales of cigarettes; prohibiting delivery of
11	cigarettes to certain persons under certain circumstances;
12	providing criteria and requirements; requiring notice of
13	certain information; providing required procedures for
14	delivering cigarettes in a delivery sale; requiring
15	certain statements to be filed with the division;
16	requiring collection and remittance of taxes to the
17	division; providing civil penalties for certain
18	violations; authorizing court actions to prevent or
19	restrain violations; amending s. 210.06, F.S.; revising
20	procedures, requirements, restrictions, and limitations
21	for application of stamps; providing limitations on
22	unstamped cigarette packages; creating s. 210.085, F.S.;
23	limiting sale or distribution of cigarettes to certain
24	permitted entities; providing limitations on obtaining
25	cigarettes by certain persons; amending s. 210.09, F.S.;
26	requiring division notice of certain shipments; providing
27	an exception; authorizing stopping and inspecting certain
28	vehicles for contraband cigarettes; requiring dealers to
29	submit reports to the division; providing reporting
30	requirements; providing for public access to certain
31	records and reports; amending s. 210.12, F.S.; revising
32	seizure and forfeiture provisions; providing for
33	forfeiture of certain property by certain persons under
34	certain circumstances; providing for destruction of
35	cigarettes under certain circumstances; amending s.
36	210.15, F.S.; requiring application for certain permits
37	under certain circumstances; providing limitations on
38	issuance of permits to certain persons; requiring the
39	division to refuse to issue or revoke permits under
40	certain circumstances; deleting certain premises or
41	vehicle inspections and search provisions relating to
42	retail cigarette dealers and manufacturers
43	representatives; amending s. 210.18, F.S.; revising
44	application of criminal penalties for tax evasion;
45	deleting a criminal penalty relating to unstamped
46	cigarettes; providing for seizure of certain property and
47	civil penalties for sale or possession for sale of
48	counterfeit cigarettes; creating s. 210.181, F.S.;
49	providing civil penalties for certain actions; providing
50	an effective date.
51
52	Be It Enacted by the Legislature of the State of Florida:
53
54	Section 1. Subsections (6), (7), and (14) of section
55	210.01, Florida Statutes, are amended, and subsections (19),
56	(20), (21), (22), (23), (24), and (25) are added to said
57	section, to read:
58	210.01 Definitions.--When used in this part the following
59	words shall have the meaning herein indicated:
60	(6) "Wholesale dealer" means any person located inside or
61	outside this statewho sells cigarettes to retail dealers or
62	other persons for purposes of resale only, or any person who
63	operates more than one cigarette vending machine located in more
64	than one place of business. Such term shall not include any
65	cigarette manufacturer, export warehouse proprietor, or importer
66	with a valid permit under 26 U.S.C. s. 5712 if such person
67	sells or distributes cigarettes in this state only to dealers
68	who are agents and hold valid and current permits under s.
69	210.15 or to an export warehouse proprietor or another
70	manufacturer.
71	(7) "Retail dealer" means any person located inside or
72	outside this stateother than a wholesale dealer engaged in the
73	business of selling cigarettes.
74	(14) "Distributing agent" means every person, firm,or
75	corporation in this state who acts as an agent for any
76	manufacturer or importerperson, firm or corporationoutside or
77	inside the state by receiving cigarettes in interstate or
78	intrastate commerce and storing such cigarettes subject to
79	distribution or delivery upon order from said principal to
80	wholesale dealers and other distributing agents inside or
81	outside this state.
82	(19) "Delivery sale" means any sale of cigarettes to a
83	consumer in this state if:
84	(a) The purchaser submits the order for such sale by means
85	of a telephonic or other method of voice transmission, the mail
86	or any other delivery service, or the Internet or other on-line
87	service; or
88	(b) The cigarettes are delivered by means of the mail or a
89	delivery service. A sale of cigarettes shall be a delivery sale
90	regardless of whether the seller is located inside or outside
91	this state. A sale of cigarettes not for personal consumption to
92	a person who is a wholesale dealer or a retail dealer shall not
93	be a delivery sale. For purposes of this subsection, “delivery
94	service" means any person who is engaged in the commercial
95	delivery of letters, packages, or other containers.
96	(20) “Stamp” or “stamps” means the indicia required to be
97	placed on cigarette packages that evidences payment of the tax
98	on cigarettes under s. 210.02 or the required tax-exempt stamp
99	under s. 210.06(1)(b).
100	(21) “Importer” means any person who imports into the
101	United States, directly or indirectly, a finished cigarette for
102	sale or distribution.
103	(22) “Manufacturer” means any person who manufactures,
104	fabricates, assembles, processes, or labels a finished
105	cigarette.
106	(23) “Mail" or "mailing" means the shipment of cigarettes
107	through the United States Postal Service.
108	(24) "Shipping container" means a container in which
109	cigarettes are shipped in connection with a delivery sale.
110	(25) "Shipping documents" means bills of lading, airbills,
111	or any other documents used to evidence the undertaking by a
112	delivery service to deliver letters, packages, or other
113	containers.
114	Section 2. Subsections (2), (3), and (4) of section
115	210.05, Florida Statutes, are amended to read:
116	210.05 Preparation and sale of stamps; discount.--
117	(2) The division shall prescribe, prepare, and furnish
118	stamps of such denominations and quantities as may be necessary
119	for the payment of the tax imposed by this part, and may from
120	time to time and as often as it deems advisable provide for the
121	issuance and exclusive use of stamps of a new design and forbid
122	the use of stamps of any other design. However, all stamps
123	prescribed by the division must be designed and furnished in a
124	fashion that permits identification of the agent or wholesale
125	dealerthat affixed the stamp to the particular package of
126	cigarettes by means of a serial number or other mark on the
127	stamp. The division shall make provisions for the sale of such
128	stamps at such places and at such time as it may deem necessary.
129	(3)(a) The division may onlyappoint dealers in
130	cigarettes, manufacturers of cigarettes,within or without the
131	state as agent to buy or affix stamps to be used in paying the
132	tax herein imposed, but an agent shall at all times have the
133	right to appoint a person in his or her employ who is to affix
134	the stamps to any cigarettes under the agent's control;
135	provided, however, that any wholesale dealer in the state shall
136	have the right to buy and affix such stamps. Whenever the
137	division shall sell and deliver to any such agent or wholesaler
138	any such stamps, such agent or wholesalershall be entitled to
139	receive as compensation for his or her services and expenses as
140	such agent or wholesalerin affixing and accounting for the
141	taxes represented by such stamps and to retain out of the moneys
142	to be paid by the agent or wholesalerfor such stamps a discount
143	of 2 percent of the par value of any amount of stamps purchased
144	during any fiscal year from July 1 through June 30 of the
145	following year, provided the discount shall be computed on the
146	basis of 24 cents per pack. No such discount shall be allowed to
147	an agenta dealer, vendor, or distributorwho sells or deals in
148	any form of candy which resembles drug paraphernalia. Stamping
149	locations approved by the division shall be responsible for
150	computing the discount they receive pursuant to this paragraph,
151	and said computations shall be retained by the stamping location
152	for a period of 5 years and shall be available to the division.
153	All stamps purchased from the division under this part shall be
154	paid for in cash on delivery, except as hereinafter provided.
155	(b) Each agent appointed by the division to affix stamps
156	shall be authorized to purchase stamps by furnishing an
157	irrevocable letter of credit or unconditional guaranty contract
158	or by executing bond with a solvent surety company qualified to
159	do business in this state, in an amount of 110 percent of the
160	agent's estimated tax liability for 30 days, but not less than
161	$2,000, conditioned upon said agent paying all taxes due the
162	state arising hereunder. This form of payment in lieu of cash on
163	delivery or its equivalent shall not preclude supplemental
164	purchases for cash. Payment for each month's liability shall be
165	due on or before the 10th day of the month following the month
166	in which the stamps were sold. Default in the aforesaid bonding
167	and payment provisions by any agent may result in the revocation
168	of his or her privilege to purchase stamps except for cash on
169	delivery for a period up to 12 months in the discretion of the
170	division.
171	(4) The division shallmay in its discretionrevoke the
172	authority of any agent failing to comply with the requirements
173	of this part or the rules and regulations promulgated hereunder
174	and such agent may in addition be punished in accordance with
175	the provisions of this part.
176	Section 3. Section 210.051, Florida Statutes, is created
177	to read:
178	210.051 Delivery sales; collection of taxes and other
179	verifications.--
180	(1) No person shall make a delivery sale of cigarettes to
181	any individual who is under the legal minimum purchase age in
182	this state as set forth in s. 569.11. In addition to complying
183	with all of the applicable requirements of this section, each
184	person accepting a purchase order for a delivery sale shall also
185	comply with all other laws of this state generally applicable to
186	sales of cigarettes that occur entirely within this state,
187	including, but not limited to, those laws imposing excise taxes,
188	sales taxes, license requirements, and stamping requirements.
189	(2) No person shall mail, ship, or otherwise deliver
190	cigarettes in connection with a delivery sale unless, prior to
191	the first delivery sale to such consumer, such person:
192	(a) Obtains from the prospective consumer a certification
193	that includes a reliable confirmation that the consumer is at
194	least the legal minimum purchase age together with a statement
195	signed by the prospective consumer in writing that certifies the
196	prospective consumer's address and that the consumer is at least
197	18 years of age. Such statement shall also confirm that the
198	prospective consumer understands that signing another person's
199	name to such certification is illegal, the sale of cigarettes to
200	individuals under the legal minimum purchase age is illegal, and
201	the purchase and possession of cigarettes by individuals under
202	the legal minimum purchase age is illegal under the laws of this
203	state and that the prospective consumer wants to receive
204	mailings from a tobacco company.
205	(b) Makes a good faith effort to verify the information
206	contained in the certification provided by the prospective
207	consumer pursuant to paragraph (a) against a commercially
208	available database or obtains a photocopy or other image of a
209	valid, government-issued identification stating the date of
210	birth or age of the individual placing the order.
211	(c) Provides to the prospective consumer, via electronic
212	mail or other means, a notice that meets the requirements of
213	subsection (3).
214	(d) In the case of an order for cigarettes pursuant to an
215	advertisement on the Internet, receives payment for the delivery
216	sale from the prospective consumer by a credit or debit card
217	that has been issued in such consumer's name, or by check.
218
219	Persons accepting purchase orders for delivery sales may request
220	that prospective consumers provide their electronic mail
221	addresses.
222	(3) The notice required under paragraph (2)(c) shall
223	include prominent and clearly legible statements that:
224	(a) Cigarette sales to consumers below the legal minimum
225	purchase age are illegal.
226	(b) Consist of one of the warnings set forth in section
227	4(a)(1) of the Federal Cigarette Labeling and Advertising Act,
228	15 U.S.C. s. 1333(a)(1), rotated on a quarterly basis.
229	(c) Sales of cigarettes are restricted to those consumers
230	who provide legal and verifiable proof of age.
231	(d) Cigarette sales are subject to tax under this chapter
232	and an explanation of how such tax has been, or is to be, paid
233	with respect to such delivery sale.
234	(4) Each person who mails, ships, or otherwise delivers
235	cigarettes in connection with a delivery sale shall:
236	(a) Include as part of the bill of lading or other
237	shipping documents a clear and conspicuous statement as follows:
238	"Cigarettes: Florida Law Prohibits Shipping to Individuals Under
239	18 and Requires the Payment of all Applicable Taxes."
240	(b) Use a method of mailing, shipping, or delivery that
241	obligates the delivery service to require the consumer placing
242	the purchase order for the delivery sale, or another adult of
243	legal minimum purchase age residing at the consumer's address,
244	to sign to accept delivery of the shipping container and proof,
245	in the form of a valid, government-issued identification bearing
246	a photograph of the individual who signs to accept delivery of
247	the shipping container, that he or she is the addressee or
248	another adult of legal minimum purchase age residing at the
249	consumer's address. However, proof of the legal minimum purchase
250	age shall be required only if such individual appears to be
251	under 27 years of age.
252	(c) Provide to the delivery service retained for such
253	delivery sale evidence of full compliance with subsection (6).
254
255	If the person accepting a purchase order for a delivery sale
256	delivers the cigarettes without using a delivery service, such
257	person shall comply with all requirements of this section
258	applicable to a delivery service and shall be in violation of
259	the provisions of this section if he or she fails to comply with
260	any such requirement.
261	(5)(a) Prior to making delivery sales or mailing,
262	shipping, or otherwise delivering cigarettes in connection with
263	any such sales, every person shall file with the division a
264	statement setting forth such person's name, trade name, and the
265	address of such person's principal place of business and any
266	other place of business of such person.
267	(b) Not later than the 10th day of each month, each person
268	that has made a delivery sale or mailed, shipped, or otherwise
269	delivered cigarettes in connection with any such sale during the
270	previous month shall file with the division a memorandum or a
271	copy of the invoice that provides for each such delivery sale:
272	1. The name and address of the consumer to whom such
273	delivery sale was made.
274	2. The brand or brands of the cigarettes that were sold in
275	such delivery sale.
276	3. The quantity of cigarettes that were sold in such
277	delivery sale.
278
279	However, any person who satisfies the requirements of 15 U.S.C
280	s. 376 shall be deemed to satisfy the requirements of this
281	subsection.
282	(6) Each person accepting a purchase order for a delivery
283	sale shall collect and remit to the division all taxes imposed
284	by the state with respect to such delivery sale, except that
285	such collection and remission shall not be required to the
286	extent such person has obtained proof, in the form of the
287	presence of applicable tax stamps or otherwise, that such taxes
288	already have been paid to the state.
289	(7)(a) Except as otherwise provided in this section, a
290	first violation of any provision of this section shall be
291	punishable by a fine of $1,000 or 5 times the retail value of
292	the cigarettes involved, whichever is greater. A second or
293	subsequent violation of any provision of this section shall be
294	punishable by a fine of $5,000 or 5 times the retail value of
295	the cigarettes involved, whichever is greater.
296	(b) Any person who knowingly violates any provision of
297	this section or who knowingly and falsely submits a
298	certification under subsection (2) in another person's name
299	commits a felony of the third degree, punishable as provided in
300	s. 775.082, s. 775.083, or s. 775.084, and shall, for each such
301	offense, be fined $10,000 or 5 times the retail value of the
302	cigarettes involved, whichever is greater.
303	(c) Any person failing to collect or remit to the division
304	any tax required in connection with a delivery sale shall be
305	assessed, in addition to any other penalty, a penalty of 5 times
306	the retail value of the cigarettes involved.
307	(d) Any cigarettes sold or attempted to be sold in a
308	delivery sale that do not meet the requirements of this section
309	shall be forfeited to the state and destroyed. All fixtures,
310	equipment, and other materials and personal property on the
311	premises of any person who, with the intent to defraud the
312	state, violates any of the requirements of this section shall be
313	forfeited to the state.
314	(8) In addition to or in lieu of the penalties set forth
315	in subsection (7), the Attorney General, the division, or any
316	person who holds a valid permit under 26 U.S.C. s. 5712 may
317	bring an action in the appropriate court in this state to
318	prevent or restrain violations of this section by any person or
319	any person controlling such person.
320	Section 4. Subsection (1) of section 210.06, Florida
321	Statutes, is amended, and subsection (5) is added to said
322	section, to read:
323	210.06 Affixation of stamps; presumption.--
324	(1) Every dealer within or withoutthe state shall affix
325	or cause to be affixed to such package or container of such
326	cigarettes, such stamps as are required under this section
327	within 72 hours after receipt of such products. Dealers outside
328	this state shall affix such stamps before the shipment of
329	cigarettes into this state, evidencing the payment of the tax
330	imposed by virtue of this part before such cigarettes are
331	offered for sale or use or consumed or before they are otherwise
332	disposed of in the state.
333	(a) A tax stamp shall be applied to all cigarette packages
334	that are intended for sale or distribution to consumers subject
335	to the tax imposed under s. 210.02, including to cigarettes
336	subject to reduced state tax under s. 210.04(4)(b).
337	(b) Except as provided in paragraph (c), a tax-exempt
338	stamp shall be applied to all cigarette packages intended for
339	sale or distribution to consumers not subject to state tax under
340	s. 210.04.
341	(c) No stamp shall be applied to any cigarette package
342	exempt from tax under 26 U.S.C. s. 5701 that is distributed by a
343	manufacturer pursuant to federal regulations.
344	(d) Dealers may apply stamps only to cigarette packages
345	that they have received directly from a manufacturer or importer
346	of cigarettes who possesses a valid and current permit under s.
347	210.15.
348	(5) Except as provided in s. 210.09(1), no person, other
349	than a dealer that receives unstamped cigarette packages
350	directly from a cigarette manufacturer or importer in accordance
351	with this section and s. 210.085, shall hold or possess an
352	unstamped cigarette package. Dealers shall be permitted to set
353	aside, without application of stamps, only such part of the
354	dealer’s stock that is identified for sale or distribution
355	outside this state. If a dealer maintains stocks of unstamped
356	cigarette packages, such unstamped packages shall be stored
357	separately from stamped product packages. No unstamped cigarette
358	packages shall be transferred by a dealer to another facility of
359	the dealer within this state or to another person within this
360	state.
361	Section 5. Section 210.085, Florida Statutes, is created
362	to read:
363	210.085 Transactions only with permitted manufacturers,
364	importers, dealers, and retail dealers.--A manufacturer,
365	importer, or distributing agent may sell or distribute
366	cigarettes to a person located or doing business within this
367	state, including on any tribal lands located within this state,
368	only if such person is a dealer with a valid, current permit
369	under s. 210.15. A dealer may sell or distribute cigarettes to a
370	person located or doing business within this state, including on
371	any tribal lands located within the borders of this state, only
372	if such person is a dealer or retail dealer with a valid,
373	current permit under s. 210.15. A dealer may obtain cigarettes
374	only from an importer, distributing agent, or dealer with a
375	valid, current permit under s. 210.15. A retail dealer may
376	obtain cigarettes only from a dealer with a valid, current
377	permit under s. 210.15.
378	Section 6. Subsections (1) and (2) of section 210.09,
379	Florida Statutes, are amended, and subsection (6) is added to
380	said section, to read:
381	210.09 Records to be kept; reports to be made;
382	examination.--
383	(1)(a)Every person who shall possess or transport any
384	unstamped cigarettes upon the public highways, roads, or streets
385	of the state, shall be required to have in his or her actual
386	possession invoices or delivery tickets for such cigarettes. The
387	absence of such invoices or delivery tickets shall be prima
388	facie evidence that such person is a dealer in cigarettes in
389	this state and subject to the provisions of this part.
390	(b) Any person who ships unstamped cigarette packages into
391	this state other than to a dealer holding a valid and current
392	permit pursuant to s. 210.15 shall first file with the division
393	a notice of such shipment. This paragraph shall not apply to any
394	common or contract carrier that is transporting cigarettes
395	through this state to another location outside this state under
396	a proper bill of lading or freight bill, which states the
397	quantity, source, and destination of such cigarettes.
398	(c) In any case where the division or its duly authorized
399	agent, or any law enforcement officer of this state, has
400	knowledge or reasonable grounds to believe that any vehicle is
401	transporting cigarettes in violation of this part, the division,
402	such agent, or such law enforcement officer is authorized to
403	stop such vehicle and inspect the vehicle for contraband
404	cigarettes.
405	(2)(a) Except as otherwise provided in this subsection,
406	the division is authorized to prescribe and promulgate by rules
407	and regulations, which shall have the force and effect of the
408	law, such records to be kept and reports to be made to the
409	division by any distributing agent, wholesale dealer, retail
410	dealer, common carrier, or any other person handling,
411	transporting or possessing cigarettes for sale or distribution
412	within the state as may be necessary to collect and properly
413	distribute the taxes imposed by s. 210.02. All reports shall be
414	made on or before the 10th day of the month following the month
415	for which the report is made, unless the division by rule or
416	regulation shall prescribe that reports be made more often.
417	(b) Each dealer shall submit to the division monthly
418	reports setting forth the following information, itemized or
419	submitted separately for each place of business of such dealer:
420	1. The quantities of cigarettes, by brand, on hand both at
421	the beginning and end of the reporting period.
422	2. The quantities of cigarettes, by brand and transaction,
423	that were received during the reporting period and the name and
424	address of each person from whom those products were received.
425	3. The quantities of cigarettes, by brand and transaction,
426	distributed or shipped during the reporting period, other than
427	sales directly to consumers, and the name and address of each
428	person to whom those products were distributed or shipped.
429	(c) Manufacturers and importers shipping cigarettes into
430	or within this state shall file a monthly report with the
431	division containing the information regarding such cigarettes
432	set forth in paragraph (b).
433	(d) The reports submitted pursuant to paragraphs (a), (b),
434	and (c) shall be further itemized to disclose the quantity of
435	reported cigarettes bearing tax stamps of this state, tax-exempt
436	stamps of this state, stamps of another state, and unstamped
437	cigarettes, itemized to show, if known, the portion of the
438	unstamped cigarettes that are intended for sale or distribution
439	in this state. Dealer reports shall include, if applicable, the
440	quantity of tax and tax-exempt stamps of this state that were
441	not affixed to cigarettes and that were on hand at the beginning
442	and end of the reporting period, the quantity of each type of
443	stamp of this state received during the reporting period, and
444	the quantity of each type of stamp of this state applied during
445	the reporting period.
446	(e) The division may issue regulations requiring such
447	additional information in the monthly reports as is necessary or
448	appropriate for purposes of enforcing the provisions of this
449	part.
450	(f) Public access to reports submitted by permittees shall
451	be provided under the procedures established by chapter 119. In
452	no case, however, shall information about quantities of
453	cigarettes by brand be released to anyone other than those
454	permitted access under subsection (6).
455	(6) The United States Secretary of the Treasury or his or
456	her designee shall have access to records and reports required
457	by this section. The division may share such records and reports
458	with law enforcement officials of this state, the federal
459	government, or other states.
460	Section 7. Section 210.12, Florida Statutes, is amended to
461	read:
462	210.12 Seizures; forfeiture proceedings.--
463	(1) The state, acting by and through the division, shall
464	be authorized and empowered to seize, confiscate, and forfeit
465	for the use and benefit of the state,any cigarettes upon which
466	taxes payable hereunder may be unpaid or which are otherwise
467	held in violation of the requirements of this chapter, and also
468	any vending machine or receptacle in which such cigarettes upon
469	which taxes payable under this section may be unpaidare held
470	for sale, or any vending machine that does not have affixed
471	thereto the identification sticker required by the provisions of
472	s. 210.07, or which does not display at all times at least one
473	package of each brand of cigarettes located therein so the same
474	is clearly visible and arranged in such a manner that the
475	cigarette tax stamp or meter impression of the stamp affixed
476	thereto is clearly visible. Such seizure may be made by the
477	division, its duly authorized representative, any sheriff or
478	deputy sheriff, or any police officer.
479	(2) All fixtures, equipment, and other materials and
480	personal property on the premises of any dealer or retail dealer
481	who, with intent to defraud the state, fails to keep or make any
482	record, return, report, or inventory, or keeps or makes any
483	false or fraudulent record, return, report, or inventory,
484	required by this part, refuses to pay any tax imposed by this
485	part, or attempts in any manner to evade or defeat the
486	requirements of this part shall be forfeited to the state.
487	(3) All cigarettes seized, confiscated, and forfeited to
488	the state under this part shall be destroyed.
489	(4)(2)Subject to the requirements of subsection (3),the
490	procedure for seizure, the listing, appraisal, advertisement and
491	sale of the property seized, the bond of any claimant, the court
492	proceedings, if any, including the parties, personal service of
493	citation, and other personal services, the services by
494	publication, judicial sale, and all other proceedings for the
495	confiscation and forfeiture of the property for the nonpayment
496	of the taxes shall be regulated, conducted, governed and
497	controlled in the manner provided by chapter 562, relating to
498	the seizure, confiscation and forfeiture of property under the
499	Beverage Law which is incorporated herein by reference except to
500	the extent that such sections may conflict or be inconsistent
501	herewith.
502	(5)(3)From the proceeds of any sale hereunder the
503	division shall collect the tax on the property, together with a
504	penalty of 50 percent thereof and the costs incurred in such
505	proceedings; the balance, if any, shall be payable by the
506	division to the person in whose possession the said property was
507	found or as the court may direct.
508	(6)(4)The distribution by the division of the proceeds of
509	the sale from any cigarettes or other property that may be
510	forfeited and confiscated hereunder shall, after the payment of
511	expenses of such forfeiture, be governed by the provisions of
512	this part.
513	(7)(5)No sale shall be made hereunder to any person
514	except a licensed wholesale or retail dealer authorized to
515	engage in the sale of cigarettes under the laws of Florida. All
516	sales shall be made to the highest and best bidder for cash. The
517	division shall provide for the payment of any taxes payable upon
518	any cigarettes sold hereunder before the same are delivered to
519	any purchaser.
520	(8)(6)The state attorney for the judicial circuit in
521	which such property was seized shall act as the attorney for the
522	division in such confiscation and forfeiture proceedings.
523	Section 8. Subsection (1) of section 210.15, Florida
524	Statutes, is amended to read:
525	210.15 Permits.--
526	(1)(a) Every person, firm, or corporation desiring to
527	engage in businessdeal in cigarettes as an importer, exporter,
528	a distributing agent, or wholesale dealer, or exporterwithin
529	this state shall file with the Division of Alcoholic Beverages
530	and Tobaccoan application for a cigarette permit for each place
531	of business located within this state or, in the absence of such
532	place of business in this state, for its principal place of
533	business, wherever locatedwith the Division of Alcoholic
534	Beverages and Tobacco. Every application for a cigarette permit
535	shall be made on forms furnished by the division and shall set
536	forth the name under which the applicant transacts or intends to
537	transact business, the location of the applicant's place of
538	business within the state, if any,and such other information as
539	the division may require. If the applicant has or intends to
540	have more than one place of business dealing in cigarettes
541	within this state, the application shall state the location of
542	each place of business. If the applicant is an association, the
543	application shall set forth the names and addresses of the
544	persons constituting the association, and if a corporation, the
545	names and addresses of the principal officers thereof and any
546	other information prescribed by the division for the purpose of
547	identification. The application shall be signed and verified by
548	oath or affirmation by the owner, if a natural person, and in
549	the case of an association or partnership, members or partners
550	thereof, and in the case of a corporation, by an executive
551	officer thereof or by any person specifically authorized by the
552	corporation to sign the application, to which shall be attached
553	the written evidence of this authority. The cigarette permit for
554	a distributing agent shall be issued annually for which an
555	annual fee of $5 shall be charged.
556	(b) The holder of any duly issued, annual permit for a
557	distributing agent shall be entitled to a renewal of his or her
558	annual permit from year to year as a matter of course, on or
559	before July 1, upon making application to the division and upon
560	payment of this annual permit fee.
561	(c) PermitsThe permit for a distributing agent, wholesale
562	dealer, or exportershall be issued only to persons of good
563	moral character, who are not less than 18 years of age.
564	Distributing agent, wholesale dealer, or exporterPermits to
565	corporations shall be issued only to corporations whose officers
566	are of good moral character and not less than 18 years of age.
567	There shall be no exemptions from the permit fees herein
568	provided to any persons, association of persons or corporation,
569	any law to the contrary notwithstanding.
570	(d) No distributing agent, wholesale dealer, or exporter
571	permit shall be issued, maintained, or renewed if the applicant,
572	its officers, or any person or persons owning directly or
573	indirectly, in the aggregate, more than 10 percent of the
574	ownership interests in the applicant:
575	1. Owes $500 or more in delinquent cigarette taxes;
576	2. Had a cigarette importer, retail dealer, or dealer
577	permit revoked by the Division of Alcoholic Beverages and
578	Tobacco within the last 2 years;
579	3. Has been convicted of any offense against the cigarette
580	laws of any state, including, but not limited to, selling stolen
581	or counterfeit cigarettes, receiving stolen cigarettes, or
582	involvement in the smuggling or counterfeiting of cigarettes; or
583	4. Has been convicted in this state, any other state, or
584	the United States of any offense designated as a felony by such
585	state or the United States.
586
587	For the purposes of this subsection,to any person who has been
588	convicted within the past 5 years of any offense against the
589	cigarette laws of this state or who has been convicted in this
590	state, any other state, or the United States during the past 5
591	years of any offense designated as a felony by such state or the
592	United States, or to a corporation, any of whose officers have
593	been so convicted.the term "conviction" shall include an
594	adjudication of guilt on a plea of guilty or a plea of nolo
595	contendere, or the forfeiture of a bond when charged with a
596	crime.
597	(e)(d) The division shallmay refuse to issue a
598	distributing agent, wholesale, or exporterpermit to any person,
599	firm, or corporation whose permit under the cigarette law has
600	been revoked or to any corporation, an officer of which has had
601	his or her permit under the cigarette law revoked, or to any
602	person who is or has been an officer of a corporation whose
603	permit has been revoked under the cigarette law. Any permit
604	issued to a firm or corporation prohibited from obtaining such
605	permit under the cigarette law shallmaybe revoked by the
606	division.
607	(f)(e)Prior to an application for a distributing agent,
608	wholesale dealer, or exporter permit being approved, the
609	applicant shall file a set of fingerprints on forms provided by
610	the division. The applicant shall also file a set of
611	fingerprints for any person or persons interested directly or
612	indirectly with the applicant in the business for which the
613	permit is being sought, when so required by the division. If the
614	applicant or any person interested with the applicant, either
615	directly or indirectly, in the business for which the permit is
616	sought shall be such a person as is within the definition of
617	persons to whom a distributing agent, wholesale dealer, or
618	exporterpermit shall be denied, then the application may be
619	denied by the division. If the applicant is a partnership, all
620	members of the partnership are required to file said
621	fingerprints, or if a corporation, all principal officers of the
622	corporation are required to file said fingerprints. The
623	cigarette permit for a wholesale dealer or exporter shall be
624	originally issued at a fee of $100, which sum is to cover the
625	cost of the investigation required before issuing such permit.
626	(g)(f) The cigarette permits issued under this section
627	permit for a wholesale dealer or exportershall be renewed from
628	year to year as a matter of course,at an annual cost of $100,
629	on or before July 1, upon making application to the division and
630	upon payment of the annual renewal fee.
631	(h)(g)Permittees, by acceptance of their permits, agree
632	that their places of business or vehicles transporting
633	cigarettes shall always be subject to be inspected and searched
634	without a search warrant for the purpose of ascertaining that
635	all provisions of this part are complied with by authorized
636	employees of the division and also by sheriffs, deputy sheriffs,
637	and police officers during business hours or during any other
638	time such premises are occupied by the permittee or other
639	persons. Retail cigarette dealers and manufacturers'
640	representatives, by dealing in cigarettes, agree that their
641	places of business or vehicles transporting cigarettes shall
642	always be subject to inspection and search without a search
643	warrant for the purpose of ascertaining that all provisions of
644	this part are complied with by authorized employees of the
645	division and also by sheriffs, deputy sheriffs, and police
646	officers during business hours or other times when the premises
647	are occupied by the retail dealer or manufacturers'
648	representatives or other persons.
649	(i)(h)No retail sales of cigarettes may be made at a
650	location for which a wholesale dealer, distributing agent, or
651	exporter permit has been issued. The excise tax on sales made to
652	any traveling location, such as an itinerant store or industrial
653	caterer, shall be paid into the General Revenue Fund
654	unallocated. Cigarettes may be purchased for retail purposes
655	only from a person holding a wholesale dealer permit. The
656	invoice for the purchase of cigarettes must show the place of
657	business for which the purchase is made and the cigarettes
658	cannot be transferred to any other place of business for the
659	purpose of resale.
660	Section 9. Subsections (2), (3), and (6) of section
661	210.18, Florida Statutes, are amended, and subsection (9) is
662	added to said section, to read:
663	210.18 Penalties for tax evasion; reports by sheriffs.--
664	(2) Any personwholesale or retail dealerwho fails,
665	neglects, or refuses to comply with, or violates the provisions
666	of, this part or the rules and regulations promulgated by the
667	division under this part is guilty of a misdemeanor of the first
668	degree, punishable as provided in s. 775.082 or s. 775.083. Any
669	personwholesale or retail dealerwho has been convicted of a
670	violation of any provision of the cigarette tax law and who is
671	thereafter convicted of a further violation of the cigarette tax
672	law is, upon conviction of such further offense, guilty of a
673	felony of the third degree, punishable as provided in s.
674	775.082, s. 775.083, or s. 775.084.
675	(3) Any person who falsely or fraudulently makes, forges,
676	alters, or counterfeits any stamp or impression die used in
677	meter machines prescribed by the division under the provisions
678	of this part; or, with intent to evade taxes, jams, tampers
679	with, or alters such a machine; or causes or procures to be
680	falsely or fraudulently made, forged, altered, or counterfeited
681	any such stamp or die; or knowingly and willfully utters,
682	purchases, passes,or tenders as true any such false, altered,
683	or counterfeited stamp or die impression; or, with the intent to
684	defraud the state, fails to comply with any other requirement of
685	this chapter commitsis guilty ofa felony of the third degree,
686	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
687	(6)(a) Every person, firm, or corporation, other than a
688	licensee under the provisions of this part, who possesses,
689	removes, deposits, or conceals, or aids in the possessing,
690	removing, depositing, or concealing of, any unstamped cigarettes
691	not in excess of 50 cartons is guilty of a misdemeanor of the
692	second degree, punishable as provided in s. 775.082 or s.
693	775.083. In lieu of the penalties provided in those sections,
694	however, the person, firm, or corporation may pay the tax plus a
695	penalty equal to the amount of the tax authorized under s.
696	210.02 on the unstamped cigarettes.
697	(a)(b)Every person, firm, or corporation, other than a
698	licensee under the provisions of this part, who possesses,
699	removes, deposits, or conceals, or aids in the possessing,
700	removing, depositing, or concealing of, any unstamped cigarettes
701	in excess of 50 cartons is presumed to have knowledge that they
702	have not been taxed and is guilty of a felony of the third
703	degree, punishable as provided in s. 775.082, s. 775.083, or s.
704	775.084.
705	(b)(c)This section does not apply to a person possessing
706	not in excess of three cartons of such cigarettes purchased by
707	such possessor outside the state in accordance with the laws of
708	the place where purchased and brought into this state by such
709	possessor. The burden of proof that such cigarettes were
710	purchased outside the state and in accordance with the laws of
711	the place where purchased shall in all cases be upon the
712	possessor of such cigarettes.
713	(9) Notwithstanding any other provision of law, the sale
714	or possession for sale of counterfeit cigarettes by a
715	manufacturer, importer, distributing agent, dealer, or retail
716	dealer shall result in the seizure of the product and related
717	machinery by the division or any law enforcement agency and
718	shall be punishable as follows:
719	(a)1. A first violation with a total quantity of less than
720	two cartons of cigarettes shall be punishable by a fine of
721	$1,000 or five times the retail value of the cigarettes
722	involved, whichever is greater, or imprisonment not to exceed 5
723	years, or both.
724	2. A subsequent violation with a total quantity of less
725	than two cartons of cigarettes shall be punishable by a fine of
726	$5,000 or five times the retail value of the cigarettes
727	involved, whichever is greater, or imprisonment not to exceed 5
728	years, or both, and shall also result in the revocation by the
729	division of the permit of the manufacturer, importer,
730	distributing agent, wholesale dealer, or retail dealer.
731	(b)1. A first violation with a total quantity of two or
732	more cartons of cigarettes shall be punishable by a fine of
733	$2,000 or five times the retail value of the cigarettes
734	involved, whichever is greater, or imprisonment not to exceed 5
735	years, or both.
736	2. A subsequent violation with a quantity of two cartons
737	of cigarettes or more shall be punishable by a fine of $50,000
738	or five times the retail value of the cigarettes involved,
739	whichever is greater, or imprisonment not to exceed 5 years, or
740	both, and shall also result in the revocation by the division of
741	the permit of the manufacturer, importer, distributing agent,
742	wholesale dealer, or retail dealer.
743
744	For purposes of this subsection, counterfeit cigarettes include
745	cigarettes that have false manufacturing labels or packages of
746	cigarettes bearing counterfeit tax stamps. Any counterfeit
747	cigarettes seized by the division shall be destroyed.
748	Section 10. Section 210.181, Florida Statutes, is created
749	to read:
750	210.181 Civil penalties.--
751	(1) Whoever knowingly omits, neglects, or refuses to
752	comply with any duty imposed upon him or her by this part, or to
753	do, or cause to be done, any of the things required by this
754	part, or does anything prohibited by this part shall, in
755	addition to any other penalty provided in this part, be liable
756	to a fine of $1,000 or five times the retail value of the
757	cigarettes involved, whichever is greater.
758	(2) Whoever fails to pay any tax imposed by this part at
759	the time prescribed by law or rules shall, in addition to any
760	other penalty provided in this part, be liable to a penalty of
761	five times the unpaid tax due.
762	Section 11. This act shall take effect upon becoming a
763	law.