Senate Bill sb2676c2

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    Florida Senate - 2004                    CS for CS for SB 2676

    By the Committees on Commerce, Economic Opportunities, and
    Consumer Services; Regulated Industries; and Senator
    Haridopolos



    310-2399-04

  1                      A bill to be entitled

  2         An act relating to transportation and sale of

  3         cigarettes; amending s. 210.01, F.S.; revising

  4         and providing definitions; amending s. 210.05,

  5         F.S.; providing stamp requirements for

  6         cigarettes in transport; providing stamp

  7         exceptions for certain cigarettes; requiring

  8         transporters of certain cigarettes to submit

  9         certain reports; amending s. 210.06, F.S.;

10         revising requirements for and limitations on

11         the affixation of stamps; providing

12         requirements with respect to receipt,

13         possession, storage, and transport of unstamped

14         cigarette packages; creating s. 210.085, F.S.;

15         requiring manufacturers, importers,

16         distributing agents, dealers, and retail

17         dealers to hold a current, valid permit to

18         sell, distribute, or receive cigarettes;

19         amending s. 210.09, F.S.; providing notice and

20         filing guidelines for certain person shipping

21         unstamped cigarette packages; authorizing

22         certain law enforcement officials to inspect

23         certain shipping vehicles; amending s. 210.12,

24         F.S.; authorizing the state to claim certain

25         property and materials from certain dealers and

26         retailers who attempt to defraud the state;

27         authorizing the destruction of certain

28         cigarettes; amending s. 210.15, F.S.; providing

29         criteria for permit application; prohibiting

30         issuance, maintenance, or renewal of certain

31         permits for certain applicants; providing

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 1         guidelines for permit application denial;

 2         amending s. 210.18, F.S.; expanding the group

 3         of violators subject to criminal liability;

 4         prohibiting the sale or possession for sale of

 5         counterfeit cigarettes; providing penalties;

 6         creating s. 210.181, F.S.; providing civil

 7         penalties for failure to comply with certain

 8         duties or pay certain taxes; providing an

 9         effective date.

10  

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

12  

13         Section 1.  Subsections (6) and (7) of section 210.01,

14  Florida Statutes, are amended, and subsections (19) through

15  (23) are added to that section, to read:

16         210.01  Definitions.--When used in this part the

17  following words shall have the meaning herein indicated:

18         (6)  "Wholesale dealer" means any person located inside

19  or outside this state who sells cigarettes to retail dealers

20  or other persons for purposes of resale only, or any person

21  who operates more than one cigarette vending machine located

22  in more than one place of business. Such term shall not

23  include any cigarette manufacturer, export warehouse

24  proprietor, or importer with a valid permit under 26 U.S.C. s.

25  5712 if such person sells or distributes cigarettes in this

26  state only to dealers who are agents and who hold valid and

27  current permits under s. 210.15 or to an export warehouse

28  proprietor or another manufacturer.

29         (7)  "Retail dealer" means any person located inside or

30  outside this state other than a wholesale dealer engaged in

31  

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 1  the business of selling cigarettes, including persons licensed

 2  pursuant to s. 569.003.

 3         (19)  "Stamp" or "stamps" means the indicia required to

 4  be placed on cigarette packages that evidences payment of the

 5  tax on cigarettes under s. 210.02.

 6         (20)  "Importer" means any person with a valid permit

 7  under 26 U.S.C. s. 5712 who imports into the United States,

 8  directly or indirectly, a finished cigarette for sale or

 9  distribution.

10         (21)  "Manufacturer" means any person with a valid

11  permit under 26 U.S.C. s. 5712 who manufactures, fabricates,

12  assembles, processes, or labels a finished cigarette.

13         (22)  "Counterfeit cigarettes" means cigarettes that

14  have false manufacturing labels, tobacco product packs without

15  tax stamps or with counterfeit tax stamps, or any combination

16  thereof.

17         (23)  "Brand family" means all styles of cigarettes

18  sold under the same trademark and differentiated from one

19  another by means of additional modifiers or descriptors,

20  including, but not limited to, "menthol," "lights," "kings,"

21  and "100s," and includes any brand name used alone or in

22  conjunction with any other word, trademark, logo, symbol,

23  motto, selling message, recognizable pattern of colors, or any

24  other indicia of product identification identical or similar

25  to, or identifiable with, a previously known brand of

26  cigarettes.

27         Section 2.  Subsection (6) is added to section 210.05,

28  Florida Statutes, to read:

29         210.05  Preparation and sale of stamps; discount.--

30         (6)(a)  A person may not transport or cause to be

31  transported from this state cigarettes for sale in another

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 1  state without first affixing to the cigarettes the stamp

 2  required by the state in which the cigarettes are to be sold

 3  or paying any other excise tax on the cigarettes imposed by

 4  the state in which the cigarettes are to be sold.

 5         (b)  A person may not affix to cigarettes the stamp

 6  required by another state or pay any other excise tax on the

 7  cigarettes imposed by another state if the other state

 8  prohibits stamps from being affixed to the cigarettes,

 9  prohibits the payment of any other excise tax on the

10  cigarettes, or prohibits the sale of the cigarettes.

11         (c)  The requirements of paragraphs (a) and (b) do not

12  apply to cigarettes with respect to which the manufacturer or

13  importer either is a participating manufacturer (as defined in

14  section II(jj) of the master settlement agreement) or is in

15  full compliance with the qualifying statute (as defined in

16  section IX(d)(2)(E) of the master settlement agreement) of the

17  state in which the cigarettes are to be sold. An exemption

18  pursuant to this paragraph may only be asserted with respect

19  to cigarettes that, in the case of a participating

20  manufacturer, are deemed to be its cigarettes for purposes of

21  calculating its payments under the master settlement agreement

22  for the relevant year in the volumes and shares determined

23  pursuant to the master settlement agreement, and, in the case

24  of all other manufacturers and importers, are deemed to be its

25  cigarettes for purposes of the applicable qualifying statute.

26  For purposes of this subsection the term "master settlement

27  agreement" means the settlement agreement (and related

28  documents) entered into in 1998 by 46 states and leading

29  United States tobacco manufacturers. A person asserting an

30  exemption pursuant to this paragraph shall submit the reports

31  

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 1  required by paragraph (d) and shall certify as provided in

 2  that paragraph.

 3         (d)  On or before the 10th day of each month, a person

 4  who transports or causes to be transported from this state

 5  cigarettes for sale in another state shall submit to the

 6  division a report identifying the quantity and brand family of

 7  each brand of the cigarettes transported or caused to be

 8  transported in the preceding calendar month and the name and

 9  address of each recipient of the cigarettes. Such person shall

10  also certify under oath and subject to the penalties of

11  perjury that:

12         1.  The stamps required by paragraph (a) have been

13  affixed in accordance with that paragraph or that such stamps

14  were not affixed pursuant to paragraph (b); or

15         2.  Such person satisfies the requirements of paragraph

16  (c).

17         (e)  For purposes of this section, the term "person"

18  means an individual, partnership, committee, association,

19  corporation, or any other organization or group of persons.

20  Person does not include any common or contract carrier, or

21  public warehouse that is not owned, in whole or in part,

22  directly or indirectly, by the person transporting the

23  cigarettes or causing the transport to be made.

24         (f)  This subsection shall not be deemed to authorize

25  the possession or transportation of cigarettes by any person

26  not so authorized by another provision of this part.

27         Section 3.  Subsection (1) of section 210.06, Florida

28  Statutes, is amended, and subsection (5) is added to that

29  section, to read:

30         210.06  Affixation of stamps; presumption.--

31  

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 1         (1)  Every dealer within or without the state shall

 2  affix or cause to be affixed to such package or container of

 3  such cigarettes such, stamps as are required under this

 4  section within 10 days after receipt of such products. Dealers

 5  outside this state shall affix such stamps before the shipment

 6  of cigarettes into this state, evidencing the payment of the

 7  tax imposed by virtue of this part before such cigarettes are

 8  offered for sale or use or consumed or before they are

 9  otherwise disposed of in the state.

10         (a)  A tax stamp shall be applied to all cigarette

11  packages intended for sale or distribution to consumers

12  subject to the tax imposed under s. 210.02, except as

13  otherwise provided in this act.

14         (b)  No stamp shall be applied to any cigarette package

15  exempt from tax under 26 U.S.C. s. 5704 that is distributed by

16  a manufacturer pursuant to federal regulations.

17         (c)  Dealers may apply stamps only to cigarette

18  packages received directly from a manufacturer or importer of

19  cigarettes who possesses a valid and current permit under 26

20  U.S.C. s. 5712.

21         (5)  Except as provided in s. 210.09(1), no person,

22  other than a dealer that receives unstamped cigarette packages

23  directly from a cigarette manufacturer or importer in

24  accordance with this section and s. 210.085, shall hold or

25  possess an unstamped cigarette package. Dealers shall be

26  permitted to set aside, without application of stamps, only

27  such part of the dealer's stock that is identified for sale or

28  distribution outside this state. If a dealer maintains stocks

29  of unstamped cigarette packages, such unstamped packages shall

30  be stored separately from stamped product packages. No

31  unstamped cigarette packages shall be transferred by a dealer

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 1  to another facility of the dealer within this state or to

 2  another person within this state.

 3         Section 4.  Section 210.085, Florida Statutes, is

 4  created to read:

 5         210.085  Transactions only with permitted

 6  manufacturers, importers, distributing agents, dealers, and

 7  retail dealers.--A manufacturer, importer, or distributing

 8  agent may sell or distribute cigarettes to a person located or

 9  doing business within this state only if such person is a

10  dealer with a valid, current permit under s. 210.15. A dealer

11  may sell or distribute cigarettes to a person located or doing

12  business within this state only if such person is a dealer or

13  retail dealer with a valid, current permit under s. 569.003. A

14  dealer may obtain cigarettes only from a manufacturer or

15  importer who possesses a valid, current permit under 26 U.S.C.

16  s. 5712 or from a distributing agent or dealer with a valid,

17  current permit under s. 210.15. A retail dealer may obtain

18  cigarettes only from a manufacturer or dealer with a valid,

19  current permit under s. 210.15.

20         Section 5.  Subsection (1) of section 210.09, Florida

21  Statutes, is amended to read:

22         210.09  Records to be kept; reports to be made;

23  examination.--

24         (1)(a)  Every person who shall possess or transport any

25  unstamped cigarettes upon the public highways, roads, or

26  streets of the state, shall be required to have in his or her

27  actual possession invoices or delivery tickets for such

28  cigarettes. The absence of such invoices or delivery tickets

29  shall be prima facie evidence that such person is a dealer in

30  cigarettes in this state and subject to the provisions of this

31  part.

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 1         (b)  Any person who ships unstamped cigarette packages

 2  into this state other than to a dealer holding a valid,

 3  current permit pursuant to s. 210.15 shall first file with the

 4  division a notice of such shipment. This paragraph shall not

 5  apply to any common or contract carrier that is transporting

 6  cigarettes through this state to another location outside this

 7  state under a proper bill of lading or freight bill that

 8  states the quantity, source, and destination of such

 9  cigarettes.

10         (c)  In any case in which the division or its duly

11  authorized agent, or any law enforcement officer of this

12  state, has knowledge or reasonable grounds to believe that any

13  vehicle is transporting cigarettes in violation of this part,

14  the division, such agent, or such law enforcement officer is

15  authorized to stop such vehicle and inspect the vehicle for

16  contraband cigarettes.

17         Section 6.  Subsection (1) of section 210.12, Florida

18  Statutes, is amended, subsections (2) through (6) of that

19  section are renumbered as subsections (4) through (8),

20  respectively, and new subsections (2) and (3) are added to

21  that section, to read:

22         210.12  Seizures; forfeiture proceedings.--

23         (1)  The state, acting by and through the division,

24  shall be authorized and empowered to seize, confiscate, and

25  forfeit for the use and benefit of the state, any cigarettes

26  upon which taxes payable hereunder may be unpaid or that are

27  otherwise held in violation of the requirements of this

28  chapter, and also any vending machine or receptacle in which

29  such cigarettes upon which taxes have not been paid are held

30  for sale, or any vending machine that does not have affixed

31  thereto the identification sticker required by the provisions

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 1  of s. 210.07, or which does not display at all times at least

 2  one package of each brand of cigarettes located therein so the

 3  same is clearly visible and arranged in such a manner that the

 4  cigarette tax stamp or meter impression of the stamp affixed

 5  thereto is clearly visible. Such seizure may be made by the

 6  division, its duly authorized representative, any sheriff or

 7  deputy sheriff, or any police officer.

 8         (2)  All fixtures, equipment, and other materials and

 9  personal property on the premises of any dealer or retail

10  dealer who, with intent to defraud the state, fails to keep or

11  make any record, return, report, or inventory required by this

12  part; keeps or makes any false or fraudulent record, return,

13  report, or inventory required by this part; refuses to pay any

14  tax imposed by this part; or attempts in any manner to evade

15  or defeat the requirements of this part shall be forfeited to

16  the state.

17         (3)  All cigarettes seized, confiscated, and forfeited

18  to the state under this part shall be destroyed.

19         Section 7.  Subsection (1) of section 210.15, Florida

20  Statutes, is amended to read:

21         210.15  Permits.--

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

23  engage in business as a manufacturer, importer, exporter,

24  distributing agent, or wholesale dealer of cigarettes deal in

25  cigarettes as a distributing agent, wholesale dealer, or

26  exporter within this state shall file with the division an

27  application for a cigarette permit for each place of business

28  located within this state or, in the absence of such place of

29  business in this state, for wherever its principal place of

30  business is located with the Division of Alcoholic Beverages

31  and Tobacco. Every application for a cigarette permit shall be

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 1  made on forms furnished by the division and shall set forth

 2  the name under which the applicant transacts or intends to

 3  transact business, the location of the applicant's place of

 4  business within the state, if any, and such other information

 5  as the division may require. If the applicant has or intends

 6  to have more than one place of business dealing in cigarettes

 7  within this state, the application shall state the location of

 8  each place of business. If the applicant is an association,

 9  the application shall set forth the names and addresses of the

10  persons constituting the association, and if a corporation,

11  the names and addresses of the principal officers thereof and

12  any other information prescribed by the division for the

13  purpose of identification. The application shall be signed and

14  verified by oath or affirmation by the owner, if a natural

15  person, and in the case of an association or partnership,

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

17  by an executive officer thereof or by any person specifically

18  authorized by the corporation to sign the application, to

19  which shall be attached the written evidence of this

20  authority. The cigarette permit for a distributing agent shall

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

22  charged.

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

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

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

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

27  upon payment of this annual permit fee.

28         (c)  Permits The permit for a distributing agent,

29  wholesale dealer, or exporter shall be issued only to persons

30  of good moral character, who are not less than 18 years of

31  age. Distributing agent, wholesale dealer, or exporter Permits

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 1  to corporations shall be issued only to corporations whose

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

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

 4  fees herein provided to any persons, association of persons,

 5  or corporation, any law to the contrary notwithstanding.

 6         (d)  No distributing agent, wholesale dealer, or

 7  exporter permit shall be issued, maintained, or renewed if the

 8  applicant, its officers, or any person or persons owning

 9  directly or indirectly, in the aggregate, more than 10 percent

10  of the ownership interests in the applicant:

11         1.  Owes $500 or more in delinquent cigarette taxes;

12         2.  Had a cigarette importer, retail dealer, or dealer

13  permit revoked by the division within the previous 2 years;

14         3.  Has been convicted of selling stolen or counterfeit

15  cigarettes, receiving stolen cigarettes, or being involved in

16  the counterfeiting of cigarettes; or

17         4.  Has to any person who has been convicted within the

18  past 5 years of any offense against the cigarette laws of this

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

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

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

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

23  so convicted. The term "convicted" "conviction" shall include

24  an adjudication of guilt on a plea of guilty or a plea of nolo

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

26  crime.

27         (e)(d)  The division may refuse to issue a distributing

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

29  corporation whose permit under the cigarette law has been

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

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

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

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

 3  issued to a firm or corporation prohibited from obtaining such

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

 5         (f)(e)  Prior to an application for a distributing

 6  agent, wholesale dealer, or exporter permit being approved,

 7  the applicant shall file a set of fingerprints on forms

 8  provided by the division. The applicant shall also file a set

 9  of fingerprints for any person or persons interested directly

10  or indirectly with the applicant in the business for which the

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

12  the applicant or any person interested with the applicant,

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

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

15  definition of persons to whom a distributing agent, wholesale

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

17  application may be denied by the division. If the applicant is

18  a partnership, all members of the partnership are required to

19  file said fingerprints, or if a corporation, all principal

20  officers of the corporation are required to file said

21  fingerprints. The cigarette permit for a wholesale dealer or

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

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

24  issuing such permit.

25         (g)(f)  The cigarette permits issued under this section

26  permit for a wholesale dealer or exporter shall be renewed

27  from year to year as a matter of course, at an annual cost of

28  $100, on or before July 1, upon making application to the

29  division and upon payment of the annual renewal fee.

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

31  agree that their places of business or vehicles transporting

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 1  cigarettes shall always be subject to be inspected and

 2  searched without a search warrant for the purpose of

 3  ascertaining that all provisions of this part are complied

 4  with by authorized employees of the division and also by

 5  sheriffs, deputy sheriffs, and police officers during business

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

 7  the permittee or other persons. Retail cigarette dealers and

 8  manufacturers' representatives, by dealing in cigarettes,

 9  agree that their places of business or vehicles transporting

10  cigarettes shall always be subject to inspection and search

11  without a search warrant for the purpose of ascertaining that

12  all provisions of this part are complied with by authorized

13  employees of the division and also by sheriffs, deputy

14  sheriffs, and police officers during business hours or other

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

16  manufacturers' representatives or other persons.

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

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

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

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

21  industrial caterer, shall be paid into the General Revenue

22  Fund unallocated. Cigarettes may be purchased for retail

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

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

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

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

27  purpose of resale.

28         Section 8.  Subsections (2), (3), and (6) of section

29  210.18, Florida Statutes, are amended, and subsection (9) is

30  added to that section, to read:

31  

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 1         210.18  Penalties for tax evasion; reports by

 2  sheriffs.--

 3         (2)  Except as otherwise provided in this section, any

 4  person wholesale or retail dealer who fails, neglects, or

 5  refuses to comply with, or violates the provisions of, this

 6  part or the rules adopted and regulations promulgated by the

 7  division under this part commits is guilty of a misdemeanor of

 8  the first degree, punishable as provided in s. 775.082 or s.

 9  775.083. Any person wholesale or retail dealer who has been

10  convicted of a violation of any provision of the cigarette tax

11  law and who is thereafter convicted of a further violation of

12  the cigarette tax law is, upon conviction of such further

13  offense, guilty of a felony of the third degree, punishable as

14  provided in s. 775.082, s. 775.083, or s. 775.084.

15         (3)  Any person who falsely or fraudulently makes,

16  forges, alters, or counterfeits any stamp or impression die

17  used in meter machines prescribed by the division under the

18  provisions of this part; or, with intent to evade taxes, jams,

19  tampers with, or alters such a machine; or causes or procures

20  to be falsely or fraudulently made, forged, altered, or

21  counterfeited any such stamp or die; or knowingly and

22  willfully utters, purchases, passes or tenders as true any

23  such false, altered, or counterfeited stamp or die impression;

24  or with the intent to defraud the state, fails to comply with

25  any other requirement of this chapter commits is guilty of a

26  felony of the third degree, punishable as provided in s.

27  775.082, s. 775.083, or s. 775.084.

28         (6)(a)  Every person, firm, or corporation, other than

29  a licensee under the provisions of this part, who possesses,

30  removes, deposits, or conceals, or aids in the possessing,

31  removing, depositing, or concealing of, any unstamped

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 1  cigarettes not in excess of 50 cartons is guilty of a

 2  misdemeanor of the second degree, punishable as provided in s.

 3  775.082 or s. 775.083. In lieu of the penalties provided in

 4  those sections, however, the person, firm, or corporation may

 5  pay the tax plus a penalty equal to the amount of the tax

 6  authorized under s. 210.02 on the unstamped cigarettes.

 7         (a)(b)  Every person, firm, or corporation, other than

 8  a licensee under the provisions of this part, who possesses,

 9  removes, deposits, or conceals, or aids in the possessing,

10  removing, depositing, or concealing of, any unstamped

11  cigarettes in excess of 50 cartons is presumed to have

12  knowledge that they have not been taxed and commits is guilty

13  of a felony of the third degree, punishable as provided in s.

14  775.082, s. 775.083, or s. 775.084.

15         (b)(c)  This section does not apply to a person

16  possessing not in excess of three cartons of such cigarettes

17  purchased by such possessor outside the state in accordance

18  with the laws of the place where purchased and brought into

19  this state by such possessor. The burden of proof that such

20  cigarettes were purchased outside the state and in accordance

21  with the laws of the place where purchased shall in all cases

22  be upon the possessor of such cigarettes.

23         (9)  Notwithstanding any other provision of law, the

24  sale or possession for sale of counterfeit cigarettes by any

25  person or by a manufacturer, importer, distributing agent,

26  wholesale dealer, or retail dealer shall result in the seizure

27  of the product and related machinery by the division or any

28  law enforcement agency and shall be punishable as follows:

29         (a)1.  A first violation with a total quantity of less

30  than two cartons of cigarettes or the equivalent amount of

31  other cigarettes shall be punishable by a fine not to exceed

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 1  $1,000 or five times the retail value of the cigarettes

 2  involved, whichever is greater, or imprisonment not to exceed

 3  5 years, or both.

 4         2.  A subsequent violation with a total quantity of

 5  less than two cartons of cigarettes or the equivalent amount

 6  of other cigarettes shall be punishable by a fine not to

 7  exceed $5,000 or five times the retail value of the cigarettes

 8  involved, whichever is greater, or imprisonment not to exceed

 9  5 years, or both, and shall also result in the revocation by

10  the division of the permit of the manufacturer, importer,

11  distributing agent, wholesale dealer, or retail dealer.

12         (b)1.  A first violation with a total quantity of two

13  or more cartons of cigarettes or the equivalent amount of

14  other cigarettes shall be punishable by a fine not to exceed

15  $2,000 or five times the retail value of the cigarettes

16  involved, whichever is greater, or imprisonment not to exceed

17  5 years, or both.

18         2.  A subsequent violation with a quantity of two

19  cartons of cigarettes or more or the equivalent amount of

20  other cigarettes shall be punishable by a fine not to exceed

21  $50,000 or five times the retail value of the cigarettes

22  involved, whichever is greater, or imprisonment not to exceed

23  5 years, or both, and shall also result in the revocation by

24  the division of the permit of the manufacturer, importer,

25  distributing agent, wholesale dealer, or retail dealer.

26  

27  For purposes of this subsection, any counterfeit cigarettes

28  seized by the division shall be destroyed.

29         Section 9.  Section 210.181, Florida Statutes, is

30  created to read:

31         210.181  Civil penalties.--

                                  16

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    Florida Senate - 2004                    CS for CS for SB 2676
    310-2399-04




 1         (1)  Whoever knowingly omits, neglects, or refuses to

 2  comply with any duty imposed upon him or her by this part, or

 3  to do or cause to be done any of the things required by this

 4  part, or does anything prohibited by this part shall, in

 5  addition to any other penalty provided in this part, be liable

 6  for a fine of $1,000 or five times the retail value of the

 7  cigarettes involved, whichever is greater.

 8         (2)  Whoever fails to pay any tax imposed by this part

 9  at the time prescribed by law or rules shall, in addition to

10  any other penalty provided in this part, be liable for a

11  penalty of five times the unpaid tax due.

12         Section 10.  This act shall take effect upon becoming a

13  law.

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

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                                  17

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    Florida Senate - 2004                    CS for CS for SB 2676
    310-2399-04




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                            CS/SB 2676

 3                                 

 4  The committee substitute:

 5  1.   Exempts from requirements in the committee substitute,
         which limit the transportation of cigarettes to another
 6       state, a person's transportation of cigarettes of
         participating manufacturers under the Master Settlement
 7       Agreement and of nonparticipating manufacturers and
         importers that comply with the qualifying statute of the
 8       other state.

 9  2.   Requires a person transporting cigarettes from Florida
         into another state to certify under oath, subject to
10       penalties for perjury:

11       --   That tax stamps have been affixed to cigarettes
              being transported from Florida to another state, as
12            required by that state, and that tax stamps have not
              been affixed to the cigarettes, if prohibited by
13            that state; or

14       --   That the cigarette brands, which the person is
              transporting from Florida to another state, are
15            cigarettes of a participating manufacturer or of a
              nonparticipating manufacturer or importer in full
16            compliance with the other state's qualifying
              statute.
17  
    3.   Specifies that these transportation requirements and
18       exemptions do not authorize a person to possess or
         transport cigarettes if the person is not otherwise
19       authorized to possess or transport the cigarettes under
         any other provision of part I of ch. 210, F.S.
20  
    4.   Removes provisions from the committee substitute which,
21       "on any tribal lands located within the boarders of this
         state," prohibited:
22  
         --   A manufacturer, importer, or distributing agent from
23            selling or distributing cigarettes to a person in
              Florida unless the person is a wholesale dealer that
24            has a valid and current permit issued by the
              Division of Alcoholic Beverages and Tobacco; or
25  
         --   A wholesale dealer from selling or distributing
26            cigarettes to a person in Florida unless the person
              is a wholesale dealer or retail dealer with a valid
27            and current retail permit issued by the Division of
              Alcoholic Beverages and Tobacco.
28  

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31  

                                  18

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